# EDGAR Filing Document

**Accession Number:** 0001921603
**File Stem:** 0001193125-26-215605
**Filing Date:** 2026-5
**Character Count:** 6134536
**Document Hash:** e504b29ec409a903248b3549dd72aa32
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-215605.hdr.sgml**: 20260511

**ACCESSION NUMBER**: 0001193125-26-215605

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 59

**FILED AS OF DATE**: 20260511

**DATE AS OF CHANGE**: 20260511

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** WhiteHawk Income Corp
- **CENTRAL INDEX KEY:** 0001921603
- **STANDARD INDUSTRIAL CLASSIFICATION:** CRUDE PETROLEUM & NATURAL GAS [1311]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 880862160
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-295743
- **FILM NUMBER:** 26960730

**BUSINESS ADDRESS:**
- **STREET 1:** 2400 MARKET STREET
- **STREET 2:** OFFSITE SUITE 230
- **CITY:** PHILADELPHIA
- **STATE:** PA
- **ZIP:** 19103
- **BUSINESS PHONE:** 917 691-9676

**MAIL ADDRESS:**
- **STREET 1:** 2400 MARKET STREET
- **STREET 2:** OFFSITE SUITE 230
- **CITY:** PHILADELPHIA
- **STATE:** PA
- **ZIP:** 19103

##### [**Table of Contents**](#toc)
**As filed with the Securities and Exchange Commission on May 11, 2026.** 

**Registration No. 333-** 

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM S-1** 

**REGISTRATION STATEMENT** 

***UNDER***

***THE SECURITIES ACT OF 1933***

**WhiteHawk Income Corporation** 

**(Exact name of registrant as specified in its charter)\*** 

**\* WhiteHawk Income Corporation to be renamed WhiteHawk Minerals Corp. in connection with the consummation of this offering.** 

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| | | |
|:---|:---|:---|
| **Delaware** | **1311** | **88-0862160** |
| **(State or Other Jurisdiction of**<br> **Incorporation or Organization)** | **(Primary Standard Industrial**<br> **Classification Code Number)** | **(I.R.S. Employer**<br> **Identification Number)** |

---

**2000 Market Street, Suite 910** 

**Philadelphia, PA 19103** 

**(610) 484-3412** 

**(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)** 

**Daniel Herz** 

**Chief Executive Officer** 

**2000 Market Street, Suite 910** 

**Philadelphia, PA 19103** 

**(610) 484-3412** 

**(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent For Service)** 

***Copies to:***

---

| | | |
|:---|:---|:---|
| **Ryan J. Maierson<br>Christopher D. Lueking<br>Nick S. Dhesi<br>Latham & Watkins LLP<br>811 Main Street, Suite 3700<br>Houston, TX 77002<br>(713) 546-5400** | **Barrie Hananel<br>General Counsel<br>2000 Market Street, Suite 910<br>Philadelphia, PA 19103<br>(610) 484-3412** | **Douglas E. McWilliams<br>Thomas G. Zentner**<br> **Alexandra M. Lewis<br>Vinson & Elkins L.L.P.**<br> **845 Texas Avenue, Suite 4700**<br> **Houston, TX 77002<br>(713) 758-2222** |

---

**Approximate date of commencement of proposed sale to the public**: As soon as practicable after the effective date of this Registration Statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☒ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.** 

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##### [**Table of Contents**](#toc)
**The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.** 

**PRELIMINARY PROSPECTUS** 

**Subject to Completion, Dated May 11, 2026.**

![LOGO](g86452g19l27.jpg)

**WhiteHawk Income Corporation** 

**(**to be renamed **WhiteHawk Minerals Corp.)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Shares** 

**Class A Common Stock** 

This is the initial public offering of shares of our Class A common stock. We are offering shares of our Class A common stock.

Prior to this offering, there has been no public market for our common stock. The initial public offering price of our common stock is expected to be between $ and $ per share. We intend to apply to list our common stock on the New York Stock Exchange ("NYSE") under the symbol "WHK." We intend to change our corporate name to WhiteHawk Minerals Corp. in connection with the closing of this offering. See "Prospectus Summary—Summary of the Transactions" and "Our Organizational Structure."

To the extent that the underwriters sell more than shares of common stock, the underwriters have the option to purchase, exercisable within 30 days from the date of this prospectus, up to an additional shares from us at the public offering price, less underwriting discounts and commissions.

Upon consummation of this offering, we will be a holding company in an organizational structure commonly referred to as an umbrella partnership-C-corporation (or "Up-C") structure, and our principal assets will consist of (i) direct ownership of % of the common units ("OpCo Interests") of WhiteHawk Income Operating Partnership L.P. ("WhiteHawk OpCo") (or approximately % of the OpCo Interests if the underwriters exercise in full their option to purchase additional shares of Class A common stock), which entitle us to a corresponding percentage ownership of the economic interest in WhiteHawk OpCo, and (ii) all of the member interests of WhiteHawk Income OP GP LLC ("OP GP"), the sole general partner of WhiteHawk OpCo, which entitles us to control the business and affairs of WhiteHawk OpCo. See "Risk Factors—Risks Related to Our Capital Structure." We will operate and control all of the business and affairs of WhiteHawk OpCo and its direct and indirect subsidiaries, and conduct our business through WhiteHawk OpCo. In addition, we will own all of the Series B preferred units of WhiteHawk OpCo.

Following this offering, we will have two series of authorized common stock: shares of Class A common stock, having one vote per share and economic rights, and shares of Class B common stock, having one vote per share and no economic rights (collectively, the "Common Stock"). Holders of Class A and Class B common stock will vote together as a single class on all matters to be presented to our shareholders for their vote or approval, except as otherwise required by applicable law or our Bylaws (as defined herein). Our outstanding Class A common stock and Class B common stock will represent approximately % and %, respectively, of the total voting power of our outstanding Common Stock immediately following this offering, assuming no exercise of the underwriters' option to purchase additional shares of Class A common stock. See "Description of Capital Stock" and "Our Organizational Structure."

We are an "emerging growth company" as that term is used in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") and, as such, we have elected to take advantage of certain reduced public company reporting requirements for this prospectus and future filings. See "Risk Factors" and "Prospectus Summary—Emerging Growth Company."

**Investing in our Class A common stock involves risks. See "[Risk Factors](#toc86452_3)" starting on page 34.** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Price to Public** | **Underwriting<br>Discounts and<br>Commissions<sup>(1)</sup>** | **Proceeds to<br>Issuer** |
|  Per Share | $| $| $|
|  Total | $| $| $|

---

(1) See "Underwriting" for additional information regarding underwriter compensation.

Delivery of the shares of Class A common stock will be made on or about , 2026.

Neither the Securities and Exchange Commission (the "SEC") nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

***Joint Lead Bookrunners***

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| | | |
|:---|:---|:---|
| **Raymond James** | **Stifel** | **J.P. Morgan** |

---

***Bookrunning Managers***

---

| | |
|:---|:---|
| **Capital One Securities** | **Stephens Inc.** |

---

**Prospectus dated , 2026** 

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##### [**Table of Contents**](#toc)
![LOGO](g86452g22m01.jpg)

Building the Premier Natural Gas Mineral Company APPALACHIA HAYNESVILLE EQTANTE RORAN GECNX EXPAND OTHER EXPAND MITS UBIS HI COM STOCK TRINITY TOKYO GAS OTHER APPALACHIA & HAYNESVILLE MAP 8,700+ gross undeveloped locations 10,000+ producing wells ~13% exposure to all 2025 U.S. dry gas production 8 large acquisitions since inception 3.4MM+ gross DSU acre position 2025 PRODUCTION EXPOSURE BY OPERATOR 86452-044 07May26 20:02 Page 3

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##### [**Table of Contents**](#toc)
**TABLE OF CONTENTS** 

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| | |
|:---|:---|
|  | **<u>Page</u>** |
|  [ABOUT THIS PROSPECTUS](#toc86452_1) | iii |
|  [PROSPECTUS SUMMARY](#toc86452_1a) | 1 |
|  [RISK FACTORS](#toc86452_3) | 34 |
|  [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#toc86452_4) | 76 |
|  [OUR ORGANIZATIONAL STRUCTURE](#toc86452_100a) | 79 |
|  [USE OF PROCEEDS](#toc86452_5) | 83 |
|  [DIVIDEND POLICY](#toc86452_6) | 84 |
|  [CAPITALIZATION](#toc86452_7) | 85 |
|  [DILUTION](#toc86452_8) | 87 |
|  [UNAUDITED PRO FORMA CONDENSED CONSOLIDATED COMBINED FINANCIAL INFORMATION](#toc86452_9) | 89 |
|  [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#toc86452_10) | 95 |
|  [BUSINESS](#toc86452_11) | 110 |
|  [MANAGEMENT](#toc86452_12) | 141 |
|  [EXECUTIVE AND DIRECTOR COMPENSATION](#toc86452_13) | 146 |
|  [PRINCIPAL STOCKHOLDERS](#toc86452_14) | 155 |
|  [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#toc86452_15) | 157 |
|  [DESCRIPTION OF MATERIAL INDEBTEDNESS](#toc86452_16) | 167 |
|  [DESCRIPTION OF CAPITAL STOCK](#toc86452_17) | 174 |
|  [SHARES ELIGIBLE FOR FUTURE SALE](#toc86452_18) | 182 |
|  [MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS OF COMMON STOCK](#toc86452_19) | 184 |
|  [UNDERWRITING](#toc86452_20) | 188 |
|  [LEGAL MATTERS](#toc86452_21) | 196 |
|  [EXPERTS](#toc86452_22) | 196 |
|  [CHANGE IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](#toc86452_22a) | 197 |
|  [WHERE YOU CAN FIND MORE INFORMATION](#toc86452_23) | 198 |
|  [INDEX TO FINANCIAL STATEMENTS](#toc86452_24) | F-1 |
|  [ANNEX A – GLOSSARY OF NATURAL GAS AND OIL TERMS](#toc86452_25) | A-1 |

---

You should rely only on the information contained in this prospectus or in any free writing prospectus we may specifically authorize to be delivered or made available to you. Neither we nor any of the underwriters (or any of our or their respective affiliates) have authorized anyone to provide any information or to make any representations other than those contained in this prospectus, any amendment or supplement to this prospectus or in any free writing prospectus prepared by us or on our behalf or to which we have referred you. Neither we nor the underwriters (or any of our or their respective affiliates) take any responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This prospectus is an offer to sell only the shares of Class A common stock offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. You should assume that the information contained in this prospectus or any free writing prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or the time of any sale of shares of our Class A common stock. Our business, financial condition, results of operations and prospects may have changed since that date.

For investors outside the United States: Neither we nor any of the underwriters have done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside of the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the shares of our Class A common stock and the distribution of this prospectus outside of the United States.

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##### [**Table of Contents**](#toc)
**Through and including , 2026 (25 days after the date of this prospectus), all dealers effecting transactions in our Class A common stock, whether or not participating in this offering, may be required to deliver a prospectus. This requirement is in addition to the dealers' obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.** 

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##### [**Table of Contents**](#toc)
**ABOUT THIS PROSPECTUS** 

**Organizational Structure** 

In connection with the closing of this offering, we will undertake certain organizational transactions to reorganize our corporate structure. Unless otherwise stated or the context otherwise requires, all information in this prospectus reflects the consummation of the organizational transactions described in the section titled "Our Organizational Structure" and this offering, and the application of the proceeds therefrom, which we refer to collectively as the "Transactions." Additionally, unless otherwise indicated, share amounts in this prospectus reflecting the consummation of the Transactions do not give effect to OpCo Interests or shares of our Class B common stock that may be issued as a part of the Earnout Amount (as defined herein), as more fully described in the section titled "Certain Relationships and Related Party Transactions—Internalization—Earnout."

See "Our Organizational Structure" for a diagram depicting our organizational structure after giving effect to the Transactions, including this offering.

**Certain Definitions** 

As used in this prospectus, unless the context otherwise requires, references to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Contribution Agreement" refers to the contribution agreement we will enter into with WhiteHawk OpCo,
the Management Contributor, ManagementCo, WhiteHawk Energy LLC and WhiteHawk Energy Services LLC to effectuate the acquisition of ManagementCo, our current external manager, by WhiteHawk OpCo (the "Internalization").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Continuing Equity Owners" refers collectively to the Management Owners who will be holders of OpCo
Interests (together with a corresponding number of shares of Class B common stock) immediately following consummation of the Transactions, who may, following the consummation of this offering, exchange at each of their respective options, in whole
or in part from time to time, their OpCo Interests (together with a corresponding number of shares of Class B common stock), for, at our election (determined solely by our independent directors (within the meaning of the NYSE rules) who are
disinterested), cash or newly-issued shares of our Class A common stock as described in "Certain Relationships and Related Person Transactions—OpCo Agreement—Agreement in Effect Upon Consummation of the Transactions."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Exchange" or "NYSE" refers to the New York Stock Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Legacy Common Stock Investors" refers, collectively, to the holders of shares of Class A common
stock, par value $0.0001 per share, Class I common stock, par value $0.0001 per share, and Class T common stock, par value $0.0001 per share, but excludes Continuing Equity Owners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "OpCo Interests" refers to the common units of WhiteHawk Income Operating Partnership L.P., including
those that we purchase with the net proceeds from this offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Management Contributor" refers to WhiteHawk Minerals LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Management Owners" refers collectively to the direct and indirect owners of WhiteHawk Management,
LLC ("ManagementCo", "WHIC Manager" or "WhiteHawk Management") prior to the consummation of the Transactions). Management Owners may also be Continuing Equity Owners. See "Certain Relationships and Related
Person Transactions—Contribution Agreement."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "OpCo Agreement" refers, as applicable, to WhiteHawk OpCo's amended and restated limited
partnership agreement, as currently in effect, or to the amended and restated limited partnership agreement effective immediately prior to the consummation of this offering, and as such agreement may thereafter be amended and/or restated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Transactions" refers to the organizational transactions described in the section titled "Our
Organizational Structure" and this offering, and the application of the net proceeds therefrom.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "we," "us," "our," the "Company," "WhiteHawk," and
similar references refer to, prior to this offering, WhiteHawk Income Corporation, and after this offering, WhiteHawk Minerals Corp., and, unless otherwise stated, in each case, all of its direct and indirect subsidiaries, including OP GP and
WhiteHawk OpCo.

We are a holding company and the sole member of WhiteHawk Income OP GP LLC ("OP GP"), the sole general partner of WhiteHawk OpCo. As the sole member of OP GP, we control the business and affairs of WhiteHawk OpCo.

**Presentation of Financial Results** 

WhiteHawk Income Corporation ("WhiteHawk," the "Company," "we," "us" and "our") was formed in February 2022. On June 23, 2025, pursuant to that certain Agreement and Plan of Merger, dated as of May 8, 2025 (the "PHX Merger Agreement"), by and among WhiteHawk Acquisition, Inc., a Delaware corporation and wholly owned subsidiary of the Company ("WH Acquisition Corp."), WhiteHawk Merger Sub, Inc., a Delaware corporation ("Merger Sub" and, together with WH Acquisition Corp., the "Company Parties") and PHX Minerals, Inc. ("PHX"), the Company Parties fully acquired all of the issued and outstanding shares of PHX's common stock (the "PHX Acquisition"). On March 31, 2025, the Company purchased mineral and royalty interests in the Marcellus Shale (the "Three Rivers Royalty Acquisition" or the "TRR Acquisition") from Three Rivers Royalty, LLC (the "TRR Seller"). Prior to the Three Rivers Royalty Acquisition, the TRR Seller was a wholly owned subsidiary of San Jacinto Minerals I, LLC ("SJM").

This prospectus includes historical consolidated financial information of the Company and its subsidiaries as of December 31, 2025 (as restated) and 2024. This prospectus also includes historical financial information of PHX for the years ended December 31, 2024 and 2023 and the three months ended March 31, 2025 and 2024, as well as the carve-out financial statement information of the TRR Seller for the years ended December 31, 2024 and 2023. Historical financial and operating information is not indicative of the results that may be expected in any future periods. For more information, please see the historical consolidated financial statements and related notes thereto included elsewhere in this prospectus. Unless otherwise indicated, the historical financial information presented in this prospectus represents the historical data and information of WhiteHawk, without giving effect to the PHX Acquisition for periods prior to June 23, 2025, the Three Rivers Royalty Acquisition for periods prior to March 31, 2025, the Transactions or other adjustments.

This prospectus also includes certain unaudited pro forma financial information. See "Unaudited Pro Forma Condensed Consolidated Combined Financial Information." As used herein, except as noted in this prospectus, the term "pro forma" when used with respect to any financial data, refers to the historical data of WhiteHawk, as adjusted after giving effect to (i) the PHX Acquisition, (ii) the Three Rivers Royalty Acquisition and (iii) the Transactions. Pro forma financial data for the year ended December 31, 2025 gives effect to the PHX Acquisition, the Three Rivers Royalty Acquisition and the Transactions as if each had been consummated on January 1, 2025. Pro forma financial data as of December 31, 2025 gives effect to the Transactions as if they had been consummated on December 31, 2025. Pro forma financial data contains certain reclassification adjustments to conform the historical PHX financial statement presentation and the historical TRR Seller financial statement presentation to the Company's financial statement presentation. The pro forma data is presented for illustrative purposes only and should not be relied upon as an indication of the financial condition or the operating results that would have been achieved if the PHX Acquisition, the Three Rivers Royalty Acquisition and the Transactions had taken place on the specified dates. Future results may vary significantly from the results reflected in such pro forma financial data and should not be relied on as an indication of future results.

Certain monetary amounts, percentages and other figures included in this prospectus have been subject to rounding adjustments. Percentage amounts included in this prospectus have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this prospectus may vary from those obtained by performing the same calculations using the figures

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in our consolidated financial statements included elsewhere in this prospectus. Certain other amounts that appear in this prospectus may not sum due to rounding.

**Restatement** 

On April 22, 2026, we concluded that our audited consolidated financial statements for the fiscal year ended December 31, 2025 could no longer be relied upon as a result of certain material accounting errors identified by management subsequent to the issuance of our audited consolidated financial statements as of and for the fiscal year ended December 31, 2025. Accordingly, the audited consolidated financial statements as of and for the fiscal year ended December 31, 2025 included elsewhere in this prospectus were restated by the Company in order to reflect the correction of the identified errors (the "Misstatements") related to (i) the recording of management fees and (ii) the misclassification of pre-closing date and post-effective date monies received related to acquisitions (the "Restatement"). For additional information, see "Note 3, Restatement of Financial Statements" to our audited consolidated financial statements as of and for the fiscal year ended December 31, 2025 included elsewhere in this prospectus and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Internal Controls and Procedures—Material Weaknesses in Internal Control over Financial Reporting."

**Control Considerations** 

Although management did not, and was not required to, conduct a formal assessment of internal control over financial reporting as of December 31, 2025, as a result of the Misstatements and the Restatement, the Company identified certain material weaknesses in its internal control over financial reporting. As a result of these material weaknesses in internal control over financial reporting, our disclosure controls and procedures were not effective at a reasonable assurance level as of December 31, 2025. Management expects to implement changes to strengthen our internal controls and remediate the material weaknesses. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Internal Controls and Procedures—Material Weaknesses in Internal Control over Financial Reporting" for additional information related to the material weaknesses in internal control over financial reporting and our related remediation activities. See "Risk Factors—Risks Related to Our Business—We recently restated our audited consolidated financial statements as of and for the fiscal year ended December 31, 2025 to correct material accounting errors and have identified material weaknesses in our internal control over financial reporting."

**Reserves Estimates and Acreage Presentation** 

Unless otherwise indicated, operating and reserve information of the Company presented herein does not give effect to the PHX Acquisition or the Three Rivers Royalty Acquisition for the periods prior to the date of such transactions. We provide estimates of our proved reserves in this prospectus as of December 31, 2025 and 2024 based on SEC pricing, meaning the unweighted first day of the month arithmetic average price of natural gas and oil over the 12 months prior to the determination date. The estimates of our proved reserves as of December 31, 2025 were prepared by Cawley, Gillespie & Associates ("CG&A"), independent petroleum engineers. The estimates of our proved reserves as of December 31, 2024 have been prepared by Schaper Energy Consulting, LLC ("Schaper Energy"), independent petroleum engineers. We refer to Schaper Energy and CG&A as our "reserve engineers." Summaries of their reports are included as exhibits to the registration statement of which this prospectus forms a part. We refer to such reports herein as "our reserve reports." The estimates of PHX's proved reserves as of December 31, 2024 were prepared by CG&A, PHX's independent petroleum engineer. The estimates of the proved reserves of the TRR Seller as of December 31, 2024 have been prepared by Ryder Scott Company, L.P. ("Ryder Scott"), the TRR Seller's independent petroleum engineer, at the request of SJM as part of their audit process. For additional information regarding our, PHX's and TRR Seller's reserves estimates as of December 31, 2025 and 2024, see "Business—Natural Gas, NGL and Oil Data."

In this prospectus, references to gross DSU acres include both actual and theoretical DSUs. Theoretical DSUs are drilling spacing units that have not yet been formally established but are internally delineated by our engineering

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and land teams based on operator unitization practices, development patterns in the surrounding area and our reasonable assumptions regarding future well development.

**Non-GAAP Financial Measures** 

This prospectus contains certain financial measures that are not required by or prepared in accordance with generally accepted accounting principles ("GAAP"), including Adjusted EBITDA and Cash Available for Distribution (and their pro forma counterparts). We refer to these measures as "non-GAAP financial measures." See "Prospectus Summary—Summary Historical and Pro Forma Condensed Consolidated Financial and Other Data—Non-GAAP Financial Measures" for our definitions of these non-GAAP financial measures, information about how and why we use these non-GAAP financial measures and a reconciliation of each of these non-GAAP financial measures to its most directly comparable financial measure calculated in accordance with GAAP.

**Trademarks and Trade Names** 

We own or have rights to various trademarks, service marks and trade names that we use in connection with the operation of our business. This prospectus may also contain trademarks, service marks and trade names of third parties, which are the property of their respective owners. Our use or display of third parties' trademarks, service marks, trade names or products in this prospectus is not intended to, and does not imply, a relationship with us or an endorsement or sponsorship by or of us. Solely for convenience, the trademarks, service marks and trade names referred to in this prospectus may appear without the TM, SM or <sup>®</sup> symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, service marks and trade names.

**Industry and Market Data** 

The market data and certain other statistical information used throughout this prospectus are based on independent industry publications, government publications and other published independent sources. These sources include reports entitled: Electric Power Monthly, dated December 2025, (the "EIA Electric Monthly"), Short-Term Energy Outlook, dated December 2025 (the "EIA Short-Term Energy Outlook"), Natural Gas Annual, dated December 2025 (the "EIA Natural Gas Annual"), the Liquefied Natural Gas Monthly, dated December 2025 (the "EIA Natural Gas Monthly"), the Annual Report of Domestic Oil and Gas Reserves, U.S. Crude Oil and Natural Gas Proved Reserves, Year-end 2023, dated December 2025 (the "EIA Reserve Report"), Liquefied U.S. Natural Gas Exports, dated December 2025 (the "EIA Natural Gas Exports"), U.S. Liquefaction Capacity, dated December 2025 (the "EIA Liquefaction Report"), by the Energy Information Administration (the "EIA"), a report entitled 2024 Statistical Review of World Energy (the "World Energy Report") by the Energy Institute, FactSet International LNG Pricing, dated January 2025 (the "International LNG Report"), FactSet Spot Price, dated December 2025 (the "Spot Price Report") and Upstream Outlook, dated December 2025 (the "Upstream Outlook Report") by FactSet, as well as data and analytics derived from Enverus Prism<sup>®</sup>, dated December 31, 2025 (the "Enverus Data"). Although we believe these third-party sources are reliable as of their respective dates, neither we nor the underwriters have independently verified the accuracy or completeness of this information. Some data is also based on our good faith estimates. The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the section entitled "Risk Factors." These and other factors could cause results to differ materially from those expressed in these publications.

Additionally, this prospectus includes industry and market data and forecasts that we obtained from internal company surveys, publicly available information and industry publications and surveys. Our internal research and forecasts are based on management's understanding of industry conditions, and such information has not been verified by independent sources. Industry publications and surveys generally state that the information contained therein has been obtained from sources believed to be reliable.

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**PROSPECTUS SUMMARY** 

*This summary highlights certain significant aspects of our business and this offering. This is a summary of information contained elsewhere in this prospectus, is not complete and does not contain all of the information that you should consider before making your investment decision. You should carefully read the entire prospectus, including the information presented under the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" and the consolidated financial statements and related notes thereto, before making an investment decision. This summary contains forward-looking statements that involve risks and uncertainties. Unless the context requires otherwise, references to "our company," "we," "us," "our," and "WhiteHawk" refer to WhiteHawk Income Corporation and its direct and indirect subsidiaries on a consolidated basis prior to this offering, and WhiteHawk Minerals Corp. and its direct and indirect subsidiaries on a consolidated basis following this offering. This prospectus includes certain terms commonly used in the natural gas and oil industry, which are defined elsewhere in this prospectus in the "Glossary of Natural Gas and Oil Terms" contained in Annex A to this prospectus.* 

*The estimates of our proved reserves as of December 31, 2025 have been prepared by CG&A, our independent reserve engineers. CG&A's report is included as an exhibit to the registration statement of which this prospectus forms a part. The estimates of our proved reserves as of December 31, 2024 have been prepared by Schaper Energy, our independent reserve engineers. Schaper Energy's report is included as an exhibit to the registration statement of which this prospectus forms a part. The estimates of PHX's (as defined herein) proved reserves as of December 31, 2024 have been prepared by CG&A, PHX's independent reserve engineers. CG&A's report is included as an exhibit to the registration statement of which this prospectus forms a part. The estimates of the TRR Seller's proved reserves as of December 31, 2024 have been prepared by Ryder Scott Company, L.P. ("Ryder Scott"), the TRR Seller's independent reserve engineers. Ryder Scott's report is included as an exhibit to this registration statement of which this prospectus forms a part.* 

**Our Company** 

WhiteHawk is focused on being the premier natural gas mineral and royalty business in the United States. We are committed to delivering cash flow and total returns to our investors through the disciplined acquisition, active management and ownership of high-quality mineral and royalty interests. Our assets are concentrated in the Marcellus and Haynesville Shales, which are located in the Appalachian and Haynesville Basins, which are among the most productive and lowest-cost U.S. natural gas basins.<sup>1</sup> Upon completion of the offering, we will own the largest, high-quality publicly traded natural gas mineral portfolio in the United States.<sup>2</sup> As a mineral and royalty business, we do not pay any drilling-related capital expenditures and only minimal operating expenses on our properties. This results in a high-margin business and allows us to distribute a meaningful portion of our cash flow to investors, while providing them with potential for significant capital appreciation over time.

As of December 31, 2025, our portfolio spans approximately 3.4 million gross DSU acres, including 1.6 million gross DSU acres across the Appalachian and Haynesville Basins and represents an economic interest in approximately 13%<sup>3</sup> of all natural gas produced in the United States as of December 31, 2025. Further, we have more than 10,900 producing wells and more than 8,000 remaining identified undeveloped locations as of December 31, 2025. The Appalachian and Haynesville Basins form the core of U.S. natural gas production and are among the most prolific energy-producing regions globally. If measured against sovereign nations, the Appalachian Basin would rank as the world's second-largest natural gas producer, with daily production of

<sup>1</sup> EIA Short-Term Energy Outlook; Enverus Data.

<sup>2</sup> Based upon management's review of public filings with the SEC, excluding those companies which either derive a majority of their revenue from oil or are oil and NGL weighted in production.

<sup>3</sup> Enverus Data.

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approximately 33 Bcf/d, and the Haynesville Basin would rank eighth with daily production of approximately 13 Bcf/d.<sup>4</sup> In 2025, the Appalachian and Haynesville Basins together accounted for more than 50%<sup>5</sup> of total U.S. dry gas production, providing the foundation of domestic natural gas supply and export growth. Our mineral interests are concentrated in the core of these premier natural gas regions and offer long-term participation in two of the largest, most active and lowest-cost natural gas weighted basins in the United States.<sup>6</sup>

WhiteHawk's mineral interests are developed by many of the largest, most active and well-capitalized natural gas operators in the United States, including EQT (NYSE: EQT), Range Resources (NYSE: RRC), CNX Resources (NYSE: CNX), Antero Resources (NYSE: AR), Expand Energy (NASDAQ: EXE), Comstock Resources (NYSE: CRK) and Aethon Energy. In 2025, approximately 18%<sup>7</sup> of all wells drilled in the Appalachian and Haynesville Basins were located on acreage in which we hold royalty interests. Our significant footprint across both basins provides alignment and scale with these premier operators. In 2025, EQT was the largest natural gas producer in the Appalachian Basin, and Expand Energy was the largest producer in the Haynesville Basin.<sup>8</sup> In the same year, approximately 49% of EQT's Appalachian production and 57% of Expand Energy's Haynesville production were sourced from acreage in which we hold royalty interests.<sup>9</sup> Because our mineral interests are concentrated within these operators' active and planned development areas, we can benefit directly from their scale, financial strength and efficiency. Our exposure to leading operators enables us to gain from their continuous development across commodity cycles and provides a resilient base for predictable cash flow growth.

Leveraging our scale and position alongside leading operators, we believe we are well positioned to capitalize on two powerful natural gas demand catalysts: artificial intelligence ("AI") driven electricity demand growth and expanding U.S. liquefied natural gas ("LNG") exports. Natural gas remains the most reliable, scalable and cost-effective source of baseload power and accounted for approximately 41%<sup>10</sup> of total U.S. electricity generation in 2025. The rapid buildout of AI and cloud-computing infrastructure is projected to create additional demand for natural gas-fired power generation, with a management-estimated 7.8 Bcf/d of total natural gas demand associated with new power plants expected to be constructed by 2031,<sup>11</sup> largely within WhiteHawk's Appalachian Basin footprint. In addition to an increase in domestic demand, global demand for U.S. natural gas is expected to further accelerate through LNG export growth. The EIA projects the United States will nearly double its LNG export capacity from approximately 17 Bcf/d<sup>12</sup> in 2025 to nearly 34 Bcf/d by 2031<sup>13</sup> as European and Asian buyers seek to diversify supply and reduce exposure to higher regional benchmark prices. The Haynesville Basin's proximity and pipeline connectivity to the Gulf Coast LNG corridor position our mineral interests to benefit directly from this expansion in export capacity and feed-gas demand. Together, accelerating power demand from AI and the continued buildout of LNG export capacity, inclusive of announced projects, are expected to drive a structural step-change in U.S. natural gas demand—driving roughly a 36%<sup>14</sup> increase in combined demand by 2031 compared to 2025 levels. WhiteHawk believes it offers public investors direct equity exposure to the powerful tailwinds of AI-driven power demand and expanding U.S. LNG exports without drilling-related capital expenditures.

WhiteHawk is led by one of the most experienced and acquisitive management teams in the minerals and royalties sector. Collectively, our leadership has more than 125 years of industry experience and has completed

<sup>4</sup> World Energy Report.

<sup>5</sup> EIA Short-Term Energy Outlook.

<sup>6</sup> Enverus Data.

<sup>7</sup> Enverus Data.

<sup>8</sup> Enverus Data.

<sup>9</sup> Enverus Data.

<sup>10</sup> EIA Electric Monthly.

<sup>11</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand.

<sup>12</sup> EIA Natural Gas Exports.

<sup>13</sup> EIA Electric Monthly. Includes current operating and under construction projects only.

<sup>14</sup> EIA Natural Gas Monthly.

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over $31 billion of energy transactions across the upstream, midstream, and minerals and royalty value chain. Members of our team previously served as senior executives or founders of Atlas Energy (NYSE: ATLS), Atlas Pipeline Partners (NYSE: APL) and Falcon Minerals Corporation (NASDAQ: FLMN), each of which were successful public companies that generated substantial shareholder value through disciplined growth, accretive acquisitions and strategic monetizations.

Since its inception, WhiteHawk has completed eight large acquisitions, making it the most active acquirer of natural gas mineral and royalty properties in the United States.<sup>15</sup> More importantly, these acquisitions have been highly accretive to shareholders and have resulted in approximately 36%<sup>16</sup> cash-on-cash return to our initial investors through 46 months of consecutive cash dividend payments, plus an additional 41% increase in shareholder value through three share dividends through January 1, 2026. We continue to execute a focused consolidation strategy in a fragmented market, targeting accretive acquisitions to expand scale, enhance returns and extend development visibility. Our ability to consistently source, evaluate and close accretive transactions ahead of broader market consolidation underscores WhiteHawk's leadership as a focused, data-driven consolidator with a proven track record of value creation.

**Our History** 

We were founded in 2022 with a clear mission to build the premier natural gas minerals and royalty platform. Our thesis was that natural gas minerals and royalties represent one of the most efficient and resilient ways to participate in the energy value chain, combining high-margin cash yield with exposure to long-term macro tailwinds in U.S. natural gas demand.

We began executing on a strategy to consolidate high-quality, core-basin mineral and royalty assets from institutional and private equity owners. We identified an estimated $3 – $5 billion of natural gas minerals and royalties in the Appalachian and Haynesville Basins that were held by private equity funds nearing the end of their investment cycles and fund lives with few buyers of scale in the market. This imbalance created an attractive entry point to acquire premium assets at compelling valuations. WhiteHawk was created to capitalize on this opportunity, bringing technical expertise, public market experience and fresh capital to a fragmented sector.

In addition to our strategic acquisitions of larger, consolidated natural gas mineral packages, we launched a dedicated "ground game" in 2025 that has become an important component of our growth strategy. This approach builds on a meaningful track record, including at Falcon Minerals Corporation, where our team successfully executed more than 30 acquisitions through a similar strategy. Leveraging significant in-house land and engineering expertise alongside an established network of regional brokers, we seek to efficiently source and underwrite smaller-scale opportunities that we believe are highly accretive. Since December 2025, we have completed 14 such transactions totaling approximately $39.7 million. We expect the ground game to remain a component of our acquisition strategy, with the goal of adding scale consistent with our existing portfolio quality.

This opportunity may be enhanced by the fragmentation across our existing asset base. With an average net revenue interest of approximately 0.48% across our DSUs and an average royalty rate of approximately 17% as of December 31, 2025, we believe there is more than 33 times our current ownership potentially available for acquisition within our existing footprint.

<sup>15</sup> Enverus Data.

<sup>16</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 33%. 

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As of December 31, 2025, WhiteHawk has accumulated natural gas mineral and royalty assets across approximately 3.4 million gross DSU acres focused primarily on the Appalachian and Haynesville Basins. From our inception in 2022 through 2025, WhiteHawk has made seven acquisitions and has paid more than 46 consecutive monthly cash dividends, representing approximately 36%<sup>17</sup> cash-on-cash return to our initial investors, plus an additional 41% increase in shareholder value through three share dividends through January 1, 2026.

The figure below summarizes our acquisition history with respect to acquired net royalty acres on an 8/8<sup>th</sup> basis ("NRAs").

![LOGO](g86452g00a19.jpg)

Members of our management team were some of the early pioneers in the Marcellus Shale and, prior to the formation of WhiteHawk, collectively drilled some of the first horizontal wells in the Marcellus Shale. With over 20 years of Appalachian Basin-specific experience, our land and engineering teams specialize in identifying and acquiring high-quality land assets that underpin valuable, long-term mineral and royalty interests. This technical capability, combined with our extensive history of operating in Appalachia, proprietary deal sourcing, and data-driven analysis, allows WhiteHawk to efficiently negotiate and close transactions while maintaining disciplined capital allocation. In addition to utilizing technical analysis, we strive to acquire mineral and royalty interests in properties with top-tier E&P operators. We seek E&P operators that are well-capitalized, have a strong operational track record, and we believe will continue to increase production through the application of the latest drilling and completion techniques across our mineral and royalty interests, and have demonstrated resilience through commodity cycles.

The U.S. natural gas minerals and royalties market remains highly fragmented with many private owners and few scaled aggregators. This structural fragmentation presents a significant opportunity for continued consolidation. WhiteHawk is one of the few active, large mineral buyers focused exclusively on natural gas. Upon completion of this offering, WhiteHawk will be the only public natural gas mineral and royalty company with meaningful, scaled exposure to the Appalachian and Haynesville Basins, allowing WhiteHawk to capitalize on this fragmented market.<sup>18</sup> We intend to leverage our position to pursue disciplined, accretive acquisitions that enhance portfolio quality, expand our footprint in premier basins, and drive sustainable growth in cash flow and shareholder returns over time.

<sup>17</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 33%. 

<sup>18</sup> Based upon management's review of public filings with the SEC, excluding those companies which either derive a majority of their revenue from oil or are oil and NGL weighted in production.

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**Natural Gas Industry and Future Development** 

Natural gas is the largest source of U.S. electricity generation and a cornerstone of global energy supply, accounting for approximately 41%<sup>19</sup> of total domestic power output in 2025. U.S. natural gas demand has the potential to increase from 107 Bcf/d in 2025 to approximately 148 Bcf/d by 2031, supported by structural growth across LNG exports, power generation expansion, rising electricity demand from data centers and AI, and advanced manufacturing.<sup>20</sup>

U.S. LNG export capacity could expand to around 45 Bcf/d by 2031, supported by approximately 34 Bcf/d currently operating or under construction and an additional 11 Bcf/d of capacity announced but not currently under construction<sup>21</sup>. If all export capacity is active by 2031, this would represent a 28% increase in natural gas demand over 2025 levels from LNG exports alone. The continued growth in LNG exports is expected to position the United States as the world's leading supplier of natural gas to Europe and Asia as international buyers seek secure, competitively priced and transparent alternatives to oil-indexed or regional benchmarks.

The figure below illustrates estimated liquefaction capacity for existing, under construction and announced projects as of December 2025:

![LOGO](g86452g52b60.jpg)

*Note: Liquefaction Capacity reflects Peak Nameplate Capacity. Commercial Operation includes commissioned projects. Source: EIA Liquefaction Report.* 

Additionally, as of December 2025, WhiteHawk has identified 21 publicly announced new or planned natural gas power plants in close proximity to WhiteHawk's Appalachia mineral position, which are estimated to generate natural gas demand of approximately 7.8 Bcf/d by 2031.<sup>22</sup>

<sup>19</sup> EIA Electric Monthly.

<sup>20</sup> Management estimated based on EIA Short-Term Energy Outlook.

<sup>21</sup> EIA Liquefaction Report as supplemented by management's review of recently announced facilities.

<sup>22</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand.

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In addition to the growing LNG export demand, the accelerated buildout of AI and cloud-computing infrastructure is creating a new and durable source of electricity demand, much of which is expected to be met by natural gas-fired power generation due to its reliability, scalability and relatively favorable carbon intensity.

WhiteHawk's mineral position in the Appalachian Basin lies in close proximity to major data center growth corridors across Virginia, Ohio and Pennsylvania, where WhiteHawk has identified, as of December 2025, publicly announced 28 new data centers representing what management estimates will generate 3.3 Bcf/d of incremental natural gas demand, of which approximately 1.7 Bcf/d is under construction or has achieved FID and approximately 1.6 Bcf/d is in pre-FID and announced stages.<sup>23</sup>

Together, these structural demand drivers are expected to sustain drilling and development activity on WhiteHawk's mineral acreage for years to come. With concentrated exposure to some of the most productive natural gas basins in the United States, we believe our mineral and royalty portfolio is well positioned to deliver stable production growth, increase royalty income and durable cash flow, and grow dividends and net asset value per share over the long term.

**Our Focus on Key Gas Basins** 

WhiteHawk's assets are concentrated in the Appalachian Basin and Haynesville Basin, which collectively represent the core of U.S. natural gas production. Each region combines substantial resource depth, high-quality operators, and access to major infrastructure and end-markets.

***Appalachian Basin (Pennsylvania / West Virginia / Ohio)***

The Appalachian Basin, located primarily in Pennsylvania, West Virginia and Ohio, constitutes the largest and most prolific natural gas basin in the United States and a critical source of future global natural gas supply, as of December 2025.<sup>24</sup> The basin's scale, consistent reservoir quality and access to infrastructure have made it a cornerstone of U.S. natural gas production and a key driver of the nation's transition toward cleaner, lower-carbon energy. The Appalachian Basin's importance to future natural gas growth is underpinned by its vast remaining resource potential and direct connectivity to both domestic and international demand. The basin benefits from an extensive network of gathering, processing and long-haul pipeline infrastructure that links production to major population centers and growing data center markets in the Northeast, Midwest and Northern Virginia, as well as to LNG export markets along the Gulf Coast. Continued expansion of southbound takeaway capacity and LNG facilities is expected to reinforce the region's role as a primary growth engine for U.S. natural gas supply over the next decade.

In the Appalachian Basin, the Marcellus Shale has transformed the United States from a net importer to a net exporter of natural gas over the past 20 years. During 2025, it accounted for roughly one-third of total U.S. dry gas production, producing at some of the lowest breakeven costs in the United States.<sup>25</sup> Exceptional pressure regimes, thick, laterally continuous pay zones and modern completion techniques allow operators to achieve recoveries and sustained productivity that rank among the highest in the industry.<sup>26</sup> The Utica Shale provides additional stacked-pay potential that enhances the economic life and development diversity of the basin and already accounted for 8% of total U.S. natural gas production in 2025.<sup>27</sup>

As of December 31, 2025, WhiteHawk's interests cover approximately 975,000 gross DSU acres across Southwest Pennsylvania and Northern West Virginia, operated by leading Appalachian Basin producers,

<sup>23</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand.

<sup>24</sup> EIA Short-Term Energy Outlook.

<sup>25</sup> EIA Short-Term Energy Outlook.

<sup>26</sup> Enverus Data.

<sup>27</sup> EIA Short-Term Energy Outlook.

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including EQT, Range Resources, CNX Resources and Antero Resources. These operators possess deep drilling inventories, strong balance sheets and a proven track record of disciplined development. Throughout 2024 and 2025, approximately 47% of wells turned in line by these operators in the Appalachian Basin were drilled on our acreage.<sup>28</sup>

The Appalachian Basin forms the foundation of WhiteHawk's asset base and provides investors with exposure to a region positioned to remain a highly productive source of low-cost, scalable natural gas for the U.S. and global markets for decades to come.

***Haynesville Basin (East Texas / North Louisiana)***

The Haynesville Basin, located in East Texas and North Louisiana, is one of the largest and most productive natural gas plays in the United States and a cornerstone of future U.S. supply growth. The basin's combination of exceptional reservoir quality, proximity to demand centers and direct access to the Gulf Coast has positioned it as a critical source of feed gas for the rapidly expanding LNG export market.

Strategically located within 150 miles of the Gulf Coast, the Haynesville Basin provides a direct and cost-advantaged connection between prolific supply and fast-growing global demand. It is estimated that nearly all existing and planned U.S. LNG export terminals—including Sabine Pass, Cameron, Golden Pass, Port Arthur and Plaquemines—source a substantial portion of their feed gas from the Haynesville Basin. This geographic alignment ensures that the basin will remain a key driver of U.S. natural gas export growth for decades as global markets seek cheaper, reliable sources of natural gas and lower-carbon alternatives to coal and oil.

Since its renewed development in 2017, the Haynesville Basin has delivered steady volume growth supported by high-deliverability wells and low full-cycle development costs.<sup>29</sup> The basin is characterized by over pressured, laterally extensive shale formations that yield high initial production rates and long-lived reserves.<sup>30</sup> Continued advances in lateral lengths, completion designs and multi-well pad efficiencies have enhanced recoveries and reduced breakeven costs, making the Haynesville Basin one of the most economically viable sources of natural gas in the world. In addition to the Haynesville Shale, our acreage also benefits from additional resources from the Cotton Valley and Mid-Bossier formations, which together produced approximately 3.2%<sup>31</sup> of U.S. natural gas production in 2025.

As of December 31, 2025, WhiteHawk's Haynesville interests cover approximately 600,000 gross DSU acres across East Texas and North Louisiana, operated by leading producers such as Expand Energy, Comstock Resources and Aethon Energy. These operators are among the most active and technically proficient in the basin, each maintaining multi-year drilling inventories and robust infrastructure connectivity.

The Haynesville Basin represents another cornerstone of WhiteHawk's portfolio, providing exposure to one of the highest-margin, infrastructure-advantaged gas plays in the United States. Its proximity to LNG export facilities, industrial corridors and petrochemical complexes along the Gulf Coast positions the basin—and WhiteHawk's assets within it—at the center of the next phase of global natural gas demand growth.

***Mid-Con Region (Anadarko Basin, Oklahoma)***

The Mid-Con region, anchored by the Anadarko Basin in Oklahoma and extending into portions of Texas, Arkansas and Kansas, is one of the most historically productive and geologically diverse hydrocarbon basins in the United States. The region has been a major contributor to U.S. natural gas and liquids supply for nearly a century and remains a critical source of stable production, infrastructure access and development optionality.

<sup>28</sup> Enverus Data.

<sup>29</sup> EIA Short-Term Energy Outlook.

<sup>30</sup> Upstream Outlook Report.

<sup>31</sup> Enverus Data.

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With its combination of legacy production, existing infrastructure and ongoing technical innovation, the Anadarko Basin continues to play an important role in maintaining domestic supply reliability and supporting industrial and power-generation demand across the central United States. The basin's multi-zone potential and moderate development costs have led to renewed operator activity, as natural gas demand expands through LNG exports and increasing AI-driven electricity demand.<sup>32</sup>

The Anadarko Basin is characterized by multiple geological formations—including the SCOOP (South Central Oklahoma Oil Province), STACK (Sooner Trend Anadarko Basin Canadian and Kingfisher counties), Woodford Shale and Cherokee Shale, which together provide exposure to both dry gas and liquids-rich zones. These intervals offer extensive development potential through established drilling and completion techniques, allowing operators to target high-return projects across varying commodity price environments. The basin's mature gathering, processing and takeaway infrastructure ensures efficient market access to the Gulf Coast, Midwest and Mid-Con gas hubs.

As of December 31, 2025, WhiteHawk's Mid-Con position spans approximately 1.7 million gross DSU acres across the SCOOP, STACK and Arkoma plays, operated by established and well-capitalized producers such as Continental Resources and Devon Energy (NYSE: DVN). These operators maintain deep, de-risked inventories and continue to optimize recovery through longer laterals, tighter spacing and improved completion designs.

**Our Mineral and Royalty Interests** 

***Nature of Our Mineral and Royalty Interests***

WhiteHawk's portfolio consists primarily of producing and undeveloped mineral and royalty interests in the Appalachian Basin, Haynesville Basin and Mid-Con region that provide the right to receive a share of production revenue from the sale of natural gas, natural gas liquids ("NGLs") and oil produced by third-party operators. These interests include fee mineral ownership, non-participating royalty interests and overriding royalty interests.

We own two types of interests: mineral and royalty interests and non-operating working interests. Of the mineral and royalty interests, we own three types: mineral interests, non-participating royalty interests ("NPRIs") and overriding royalty interests ("ORRIs"). For the year ended December 31, 2025, our mineral and royalty interests accounted for approximately 99% of our royalty revenues and our non-operating working interests accounted for approximately 1% of our royalty revenues. Each of these interests have different rights and obligations as further described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Mineral Interests:* Mineral interests are perpetual real property interests rights of the owner to exploit,
mine and/or produce the minerals lying below the surface of the property. When we lease our mineral interests to third-party operators, we retain a royalty interest—the ongoing right to a portion of the revenue from any oil or gas later
produced—and receive a one-time payment known as a lease bonus. Typically, the resulting royalty interest is a cost-free percentage of production revenues for minerals extracted from the acreage. Holders
of royalty interests are generally not responsible for capital expenditures or lease operating expenses but may be responsible for certain post-production expenses and typically have limited environmental liability. While mineral interests are
usually perpetual, gas and oil leases have a set term. Therefore, if drilling stops or no production occurs during that term, the lease ends, and the mineral owner is free to lease the rights again to another party and receive another lease bonus.
Royalty interests expire upon the expiration of the gas and oil lease, but the mineral interests would be retained. Mineral interests represented approximately 92% of our mineral and royalty interests as of December 31, 2025.

<sup>32</sup> Enverus Data.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-Participating Royalty Interest*. A NPRI has the same
characteristics as a standard royalty interest except that the term "non-participating" indicates that the interest owner has the right to participate in the execution of gas and oil leases but
does not share in the bonus or rentals from a gas and oil lease. NPRIs represented approximately 3% of our mineral and royalty interests as of December 31, 2025.

working interest. Like royalty interests, ORRIs do not confer an obligation to make capital expenditures or pay for lease operating expenses and have limited environmental liability; however, ORRIs may be calculated net of post-production expenses,
depending on how the ORRI is structured. ORRIs that are carved out of working interests are linked to the same underlying gas and oil lease that created the working interest and, therefore, ORRIs are typically subject to expiration upon the
expiration or termination of the underlying gas and oil lease. ORRIs represented approximately 5% of our mineral and royalty interests as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-Operating Working Interest.* In addition to our mineral
and royalty interests, we own certain non-operating working interests acquired in connection with the PHX Acquisition. Non-operating working interest holders have the right to extract minerals from acreage
leased pursuant to a gas and oil lease from a mineral interest holder. Holders of working interests are responsible for their *pro rata* share of capital expenditures and lease operating expenses, but holders of working interests only receive
revenues after distributions have first been made to holders of royalty interests and ORRIs. Working interests expire upon the termination or expiration of the underlying gas and oil lease. As of December 31, 2025, our non-operating working
interest portfolio consisted of 437 gross (18.1 net) wells located exclusively in the Mid-Con region and accounted for approximately 1% of our royalty revenues. These non-operating working interests represented approximately 7% of our total proved
reserves and 3% of our total production for the year ended December 31, 2025.

The following table presents information as of December 31, 2025 about our mineral and royalty interest acreage by the resource plays we consider most material to our current and future business and accounted for approximately 99% of our royalty revenue for the year ended December 31, 2025.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Net<br>Mineral<br>Acres** | **Average<br>Royalty<br>Rate** | **NRA<br>100%<br>Basis<br>(Mineral**<br>**Interest)<sup>(2)</sup>** | **NRA<br>100%<br>Basis<br>(ORRIs)<sup>(2)</sup>** | **NRA<br>100%<br>Basis<br>(NPRIs)<sup>(2)</sup>** | **Total<br>NRAs<br>100%<br>Basis<sup>(2)</sup>** | **NRA<br>(1/8<sup>th</sup><br>Basis)** | **Gross**<br>**DSU**<br>**Acres** | **Implied<br>Average<br>Net<br>Revenue<br>Interest<br>Across<br>DSUs<sup>(1)</sup>** |
|  Appalachian Basin | 20074 | 16% | 3192 | 227 | 575 | 3994 | 31948 | 975000 | 0.41% |
|  Haynesville Basin | 5943 | 21% | 1248 | 66 |  | 1314 | 10513 | 600000 | 0.22% |
|  Mid-Continent Region | 63256 | 15% | 9691 | 487 |  | 10177 | 81419 | 1700000 | 0.60% |
|  Other | 6041 | 17% | 1018 | 0.3 |  | 1018 | 8146 | 150000 | 0.68% |
|  **Total** | **95314** | **17%** | **15149** | **780** | **575** | **16503** | **132026** | **3425000** | **0.48%** |

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(1) Calculated as total net royalty acres divided by gross DSU acres.

(2) Within the mineral and royalty industry, ownership is typically standardized to NRAs to compare portfolios on an
equivalent basis. NRAs are adjusted either to a 1/8 royalty (12.5%) standardized basis or to a 100% royalty equivalent.

As of December 31, 2025, our interest covered approximately 3.4 million gross DSU acres and more than 10,900 producing wells. As of December 31, 2025 we held an economic interest in 13% of total U.S. natural gas production and in 2025 we had an interest in 18% of new wells drilled in the Appalachian and Haynesville Basins.<sup>33</sup> As of December 31, 2025, the estimated proved natural gas, NGL and crude oil reserves attributable to our interest are

<sup>33</sup> Enverus Data.

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86% natural gas, 10% NGLs and 4% crude oil, with $293,690 thousand of PV-10. Of these proved reserves, 98% were classified as PD reserves and 2% were classified as undeveloped reserves. For the year ended December 31, 2025, the average net daily production associated with our portfolio was 50,351 Mcfe/d, consisting of 45,442 Mcf/d of natural gas, 577 Bbls/d of NGLs and 241 Bbls/d of oil and on a pro forma basis, average net daily production of 67,255 Mcfe/d, consisting of 59,621 Mcf/d of natural gas, 790 Bbls/d of NGLs and 483 Bbls/d of oil.

We earn most of our revenues through a steady stream of royalties and lease bonuses, all tied to the success of gas and oil production on our acreage. We differ from traditional upstream gas and oil companies as we, and any other royalty interest owner, do not pay for nor operate wells. All of the costs and risks involved in finding, drilling and maintaining wells are borne by the working interest owners. Royalty interest owners generally are only responsible for certain taxes tied to production, such as severance and property taxes, and fees related to transportation or marketing of gas and oil.

Because we do not pay for drilling or bear the risks of dry holes or operational setbacks, we typically enjoy much higher operating margins compared to our third-party operators. Our business model is more capital-light, focusing on management and acquisition of various mineral and royalty interests, rather than the direct, costly development capital necessary for the extraction of resources. This gives us a recurring income stream with less variability in free cash flow than the traditional exploration and production business.

As an active consolidator of mineral and royalty interests, WhiteHawk works closely with third-party operators throughout the lifecycle of each asset—from negotiating and optimizing lease terms at inception, to confirming timely in-pay status as wells are drilled and completed and continuously validating that we receive the correct revenue interest over the life of the well. This engagement has supported improved royalty terms, more favorable pricing provisions, and reduced post-production deductions, enhancing realized revenues and long-term returns.

WhiteHawk's mineral and royalty ownership model allows the Company to generate stable, capital-efficient cash flow from producing assets while maintaining organic growth potential through the continued development of its undeveloped mineral position without the need to pay for associated drilling capital expenditures. Over time, we have reinvested proceeds from lease bonuses and free cash flow from our assets to expand our footprint in the most economically attractive natural gas basins in the United States while maintaining a conservative balance sheet and disciplined capital strategy.

The following table provides information regarding our gross and net locations by region or basin based on technical parameters as of December 31, 2025. For additional information with respect to our gross and net locations, please see the section titled "Business—Natural Gas, NGL and Oil Data."

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Gross Undeveloped Location Count<sup>(1)</sup>** | **Gross Undeveloped Location Count<sup>(1)</sup>** | **Gross Undeveloped Location Count<sup>(1)</sup>** | **Net Undeveloped<br>Location Count<sup>(4)</sup>** | **Average Lateral<br>Length** |
| **Region / Basin** | **Included in Proved<br>Reserves<sup>(2)</sup>** | **Other**<br>**Locations<sup>(3)</sup>** | **Total** | **Total** | **(feet)** |
|  Appalachian Basin | 229 | 2563 | 2792 | 8.7 | 13246 |
|  Haynesville Basin | 94 | 1487 | 1581 | 3.1 | 9267 |
|  Mid-Continent Basin<sup>(5)</sup> | 86 | 3866 | 3952 | 14.1 | 9314 |
|  Other<sup>(6)</sup> | 21 | 437 | 458 | 2.1 | 9864 |

---

(1) Numbers of gross well locations may vary based on actual lateral lengths drilled by operators.

(2) Includes Proved Undeveloped locations included as part of CG&A's reserve report dated March 13,
2026 with respect to the Company's proved reserves as of December 31, 2025. Includes WIPs and permits as defined by management.

(3) Includes locations not included as part of CG&A's reserve report dated March 13, 2026 with respect to
the Company's proved reserves as of December 31, 2025; however, such locations have been audited and approved by CG&A. Includes other undeveloped locations, as defined by management.

(4) Reflects management's estimated net revenue interest multiplied by Total Gross Undeveloped Locations as
audited by CG&A.

(5) Includes locations in the SCOOP, STACK, Cherokee, Arkoma and Fayetteville.

(6) Includes locations in the Bakken.

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**Key Operators** 

We strive to acquire mineral and royalty interests in properties with top-tier E&P operators that are well capitalized, have a strong operational track record and that we believe will continue to increase production through the application of the latest drilling and completion techniques. Our royalty interests are developed and operated by many of the highest-quality natural gas producers in the United States. The graphs below highlight the portion of production from top operators captured on our position across each region in 2025:<sup>34</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ![LOGO](g86452g26a01.jpg) ![LOGO](g86452g26b02.jpg) ![LOGO](g86452g26c03.jpg)

Collectively, in 2025, these 14 operators listed above controlled more than 79% of WhiteHawk's leased acreage and represented the leading producers in the Appalachian Basin, Haynesville Basin and Mid-Con region. Their scale, balance-sheet strength and technological capabilities enhance recovery efficiency, reduce breakeven costs and provide reliable long-term development of our mineral interests—directly supporting our ability to pay sustainable dividends to our investors.

**Strengths** 

We believe that the following competitive strengths will allow us to successfully capitalize on our market opportunities, execute our business strategies, and achieve our primary business objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Premier, large-scale natural gas mineral and royalty company in America's most productive gas basins.*** We have assembled one of the largest pure-play natural gas mineral and royalty portfolios in the United States, spanning approximately 3.4 million gross DSU acres and providing exposure to more than 10,900 producing wells as of December
31, 2025. Our acreage is concentrated in the Appalachian and Haynesville Basins, two of the most productive and lowest-cost sources of natural gas in the United States, which together accounted for more than 50% of total U.S. dry gas production<sup>35</sup> and 81% of our royalty revenue in 2025. These basins feature thick, laterally continuous shale intervals, high-pressure reservoirs, and well-developed gathering and long-haul pipeline infrastructure
that enable some of the lowest breakeven development economics in the United States. The fact that 11% and 33%<sup>36</sup> of Appalachian and Haynesville Basin wells, respectively, were drilled on our
acreage in 2025, is indicative that our assets are located in the core development areas of these premier gas plays. We believe our proximity to the core development areas of these basins will provide long-term visibility into drilling activity and
sustained royalty cash flow through consistent operator investments and stacked play potential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***High-margin, capital-light business model.*** WhiteHawk's business model is designed to
generate substantial cash flow as our mineral and royalty interests have no drilling capital expenditure requirements and minimal operating costs. Our mineral and royalty interests allow us to capture the

<sup>34</sup> Enverus Data. Percentages exceed 100% due to rounding. 

<sup>35</sup> EIA Short-Term Energy Outlook.

<sup>36</sup> Enverus Data.

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economic benefits of natural gas development without bearing the capital risk or inflationary cost pressures typical of traditional E&P companies because we do not incur drilling, completion, lease operating expenses, or plugging and abandonment obligations at the end of a well's productive life. This capital-light model enables us to convert a significant portion of our revenue directly into free cash flow. Our recurring costs are limited primarily to production taxes, gathering, processing, and transportation expenses, and modest general and administrative overhead. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***High-quality assets supported by top-tier operators with visible development activity*.** Our mineral interests are operated by leading, well-capitalized E&P companies in some of the most productive and economically attractive natural gas basins in the United States. In 2025, the Appalachian Basin
accounted for approximately 38% of the total U.S. natural gas production,<sup>37</sup> with WhiteHawk's acreage operated by premier producers including EQT, Antero Resources, Range Resources and CNX
Resources. Combined, these operators accounted for approximately 96% of our royalty revenue in the Appalachian Basin in 2025. The Haynesville Basin contributed approximately 15% of total U.S. natural gas production in 2025,<sup>38</sup> with WhiteHawk's acreage operated by premier producers including Expand Energy, Comstock Resources and Aethon Energy. Combined, these operators accounted for approximately 58% of our royalty
revenue in the Haynesville Basin for 2025. As of December 31, 2025, our portfolio includes nearly 430 wells in progress ("WIPs") and permitted locations, and more than 8,000 remaining identified undeveloped locations. We
believe this embedded inventory provides a visible, multi-year growth runway that requires no additional capital investment from us. Our exposure to operators with strong balance sheets, basin-leading drilling productivity, and disciplined capital
programs is designed to enhance the stability of our production base and support long-term royalty cash flow generation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Capturing value from AI-driven electricity demand growth.*** We are positioned to benefit from the accelerating rise in electricity demand driven by AI and data center expansion, much of which is expected to be met by natural gas. Natural gas is the primary fuel for U.S. power generation accounting for
approximately 41%<sup>39</sup> of total electricity output in 2025. In line with this trend, our Appalachian Basin acreage is located near 21 publicly announced new or planned natural
gas fired power plants representing what management estimates to be approximately 7.8 Bcf/d of total natural gas demand associated with new power plants expected by 2031.<sup>40</sup> The ongoing expansion
of AI-driven and digital-infrastructure power needs is expected to support long-term natural gas consumption and price stability, encouraging sustained operator investment and development activity on our
mineral acreage and providing predictable recurring cash flows that can be distributed to investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Positioned to capitalize on LNG export growth.*** U.S. LNG export capacity is expected to nearly
double from approximately 17 Bcf/d in 2025 to nearly 34 Bcf/d by 2031<sup>41</sup>, as European and Asian buyers seek secure, competitively priced supply and diversify away from oil-indexed benchmarks or regional international benchmarks such as JKM (Asia) and TTF (Europe), where the average pricing is 3-4x Henry Hub pricing in the United States for
the year 2025.<sup>42</sup> In addition, as of December 2025, approximately 28 Bcf/d of incremental LNG capacity is in various stages of regulatory review and development, representing further upside to
long-term U.S. export potential.<sup>43</sup> The Haynesville Basin's proximity and pipeline connectivity to the Gulf Coast LNG corridor position our assets to benefit directly from this expansion.
Sustained growth in U.S. LNG exports is expected to drive long-term feed-gas demand from the basins where our mineral interests are concentrated, for years to come.

<sup>37</sup> EIA Short-Term Energy Outlook.

<sup>38</sup> EIA Short-Term Energy Outlook.

<sup>39</sup> EIA Electric Monthly.

<sup>40</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand.

<sup>41</sup> EIA Natural Gas Exports. Includes current operating and under construction projects only.

<sup>42</sup> FactSet LNG Pricing.

<sup>43</sup> EIA Liquefaction Report as supplemented by management's review of recently announced facilities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Proven management team with a track record of public company value creation and accretive growth.*** Our management team is among the most experienced and acquisitive in the minerals sector, with more than 125 years of combined industry experience and over $31 billion of completed energy transactions across the upstream, midstream, and
mineral and royalty value chain. Members of our team previously served as senior executives or founders of Atlas Energy, Atlas Pipeline Partners and Falcon Minerals, each a successful public company that created substantial shareholder value through
disciplined growth, accretive acquisitions, and strategic monetization. Since our founding, WhiteHawk has been the most active acquirer of natural gas minerals and royalties, completing eight large transactions across the most prolific gas-oriented basins in the United States.<sup>44</sup> Our ability to consistently source, evaluate, and close accretive transactions underscores WhiteHawk's
leadership as a focused, data-driven consolidator with proven expertise in capital allocation, M&A execution and public-market stewardship.

**Strategies** 

Our primary business objective is to deliver shareholder value through dividends and total return from our mineral interests in premier natural gas-weighted properties. We intend to accomplish this objective by executing the following key strategies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Provide sustained income to investors through strong Cash Available for Distribution generation and cash dividends.*** We expect initially to pay dividends from our Cash Available for Distribution with the remaining cash flow to be used for additional acquisitions that meet our investment criteria or to maintain our
conservative capital structure. As mineral and royalty owners, we benefit from the continued organic development of our acreage and are able to convert a high percentage of our revenues to Cash Available for Distribution (as defined herein). We
believe that our mineral and royalty interests are positioned for growth as E&P operators continue to concentrate on the Appalachian Basin, Haynesville Basin and Mid-Con region to meet growing global
demand for natural gas. Since our inception in 2022, we have paid 46 consecutive monthly common equity dividends, totaling approximately $30 million and representing a cash-on-cash return of approximately 36%<sup>45</sup> to our initial investors through January 1, 2026. We believe our
efficient, conservatively levered structure, with low capital intensity and disciplined financial management, provides a sustainable foundation for attractive dividend yields, balance sheet flexibility, and long-term value creation for shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Strategically source and acquire de-risked, cash-flowing natural gas mineral and royalty interests of scale from long-term partnerships.*** Our strategy focuses on acquiring high-quality mineral and royalty interests that generate immediate cash flow and offer long-term development visibility. We target
assets operated by leading, well-capitalized producers in the core of the Appalachian Basin, Haynesville Basin, and Mid-Con region, where continued drilling activity provides durable revenue growth without
direct capital risk exposure. WhiteHawk differentiates itself through a disciplined, partnership-oriented sourcing approach with private-equity sponsors and other institutional owners seeking liquidity from later-life funds. This positions WhiteHawk
as one of the few large-scale consolidators of natural gas-weighted minerals, particularly in the Appalachian Basin, which remains underrepresented in public minerals markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Pursue disciplined, accretive acquisitions in premier natural gas plays.*** We intend to grow our
portfolio through the disciplined acquisition of high-quality natural gas mineral and royalty interests in the Appalachian Basin, Haynesville Basin and Mid-Con region. By leveraging our management team's

<sup>44</sup> Enverus Data.

<sup>45</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 33%. 

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extensive industry relationships, and proprietary geologic and title data, we target assets that can provide accretive growth in shareholder value while strengthening our production and reserve base. Since inception, we have been among the most active consolidators in the natural gas minerals sector, completing seven transactions that have materially increased our scale and enhanced cash flow. These acquisitions have been highly accretive to shareholders and have resulted in approximately 36%<sup>46</sup> cash-on-cash return to our initial investors. We believe current market conditions remain highly favorable for consolidation, as fragmented ownership across numerous private sellers continues to create opportunities for accretive acquisitions that meet our investment criteria. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Optimize portfolio to maximize Cash Available for Distribution and maintain diversified exposure.*** We actively manage our portfolio to prioritize acreage with a strong cash-flow base, visible near-term development, and substantial future inventory. A core component of this strategy is maintaining a broad, diversified mineral
footprint across multiple core natural gas basins, encompassing an average NRI of 0.69% in more than 10,900 producing wells, with additional wells consistently in various stages of development across a footprint exceeding 3.4 million gross
DSU acres as of December 31, 2025. This scale and diversity provide exposure to the most prolific, lowest-cost natural gas plays in the United States while reducing reliance on any single operator or well. The result is a balanced portfolio
designed to generate resilient cash flow and mitigate volatility through commodity cycles. Through disciplined asset management, targeted reinvestment, and continued optimization, we seek to enhance portfolio productivity, strengthen cash flow
stability and grow our dividend over time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Maintain conservative and flexible capital structure to support our business and facilitate long-term operations.*** We are committed to maintaining a conservative capital structure that will afford us the financial flexibility to execute our business strategies on an ongoing basis. We expect to maintain a prudent level of debt to support our
acquisition and growth strategy while preserving balance sheet flexibility. We believe that the combination of cash flow from operations, proceeds from this offering, and selective use of other debt and equity financings will provide us with
sufficient liquidity to pursue accretive acquisitions, enhance our cash flow profile, and return capital to our shareholders. We intend to manage our leverage conservatively and finance future acquisitions through cash flow from operations or
opportunistically utilizing equity or debt to support disciplined growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Commitment to responsible natural gas development and governance excellence.*** Natural gas, the
primary driver of our royalty income, is a critical, lower-emission component of the modern energy mix and remains central to meeting global demand for reliable and affordable power. As a cleaner-burning fuel, it provides consistent and scalable
energy that complements renewable energy and supports grid stability. The operators developing our mineral acreage, including EQT, Range Resources, Antero Resources and CNX Resources, have each adopted measurable standards focused on reducing
emissions and promoting responsible development. With all of our assets located in the most economic natural gas basins in the United States, we are positioned to benefit from the growing recognition of natural gas as a reliable, cleaner source of
energy. We also intend to reinforce the durability of our business through rigorous corporate governance, transparency, and alignment with our shareholders. Our governance framework emphasizes independence, accountability, and disciplined capital
allocation. We believe our governance framework reduces our risk profile and sustains investor confidence through commodity cycles. We believe our adherence to governance best practices and partnerships with responsible operators differentiate
WhiteHawk as a transparent, sustainable, and income-oriented energy investment capable of delivering attractive returns over the long term.

<sup>46</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 33%. 

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**Recent Transactions** 

***PHX Acquisition***

Pursuant to the PHX Merger Agreement, by and among the Company Parties and PHX, the Company Parties agreed to acquire in an all-cash transaction all issued and outstanding shares of PHX's common stock for a purchase price of $4.35 per share, a total value of $194.8 million, including PHX's net debt.

Subsequently, on June 23, 2025, the Company Parties closed on the PHX Acquisition and fully acquired all of the outstanding shares of PHX's common stock. The PHX Acquisition increased the Company's mineral and royalty ownership position by acquiring additional mineral and royalty interests in the Haynesville Shale as well as the SCOOP/STACK, Bakken, Arkoma and others. The PHX Acquisition also increased the Company's exposure to some of its top third-party operators, including Expand Energy, Comstock Resources and Aethon Energy in the Haynesville Shale, while adding other top operators including Continental Resources and Devon Energy in the SCOOP/STACK region in Oklahoma. As a result of the PHX Acquisition, WhiteHawk added approximately 1.8 million gross DSU acres of premier natural gas mineral and royalty assets, significantly expanding its footprint in the core of the Haynesville Shale in East Texas/North Louisiana and diversifying its portfolio into the SCOOP/STACK region.

***Marcellus Assets***

On March 31, 2025, the Company purchased in the Three Rivers Royalty Acquisition mineral and royalty interests in the Marcellus Shale for a purchase price of $118.0 million from the TRR Seller. The Company believes these Marcellus Shale assets represent some of the highest quality natural gas reserves in the United States.

***Haynesville Assets***

On March 2, 2026, the Company and its affiliate entered into a definitive purchase and sale agreement to acquire certain natural gas mineral and royalty interests primarily located in the core of the Haynesville Shale in Louisiana and east Texas ("Haynesville Assets"). The Haynesville Assets cover approximately 150,000 gross DSU acres and will further increase the Company's exposure to high-quality development across the Haynesville and Mid-Bossier formations. The assets are concentrated in core areas of the basin and are operated by established, well-capitalized operators. The Haynesville Assets acquisition closed on April 3, 2026. We funded the purchase price of the Haynesville Assets acquisition primarily through the issuance of approximately $37.8 million of shares of Series D preferred stock. See "Description of Capital Stock—Preferred Stock—Series D Preferred Stock." The Company intends to use a portion of the proceeds from this offering to redeem any shares of Series D Preferred Stock outstanding. See "Use of Proceeds." To the extent the proceeds of this offering are insufficient to redeem the total aggregate principal amount of Series D Preferred Stock outstanding, the Company intends to use cash on hand to fully redeem the total aggregate principal amount of Series D Preferred Stock outstanding.

**Summary of the Transactions** 

In connection with the consummation of the offering, we will consummate the following organizational transactions (the "Transactions"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will amend and restate our certificate of incorporation (our "amended and restated certificate of
incorporation") to, among other things, (i) change our name to "WhiteHawk Minerals Corp."; (ii) provide for the reclassification of shares held by the Legacy Common Stock Investors issued and outstanding immediately prior to
the offering into one validly issued, fully paid and non-assessable

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share of our Class A common stock, on a one-for-one basis (such reclassification, the "Common Stock Reclassification"); (iii) provide for an adjustment to the number of authorized shares such that our authorized capital stock shall consist of 250,000,000 shares of Class A common stock, par value $0.0001 per share, 100,000,000 shares of Class B common stock, par value $0.0001 per share, and 10,000,000 shares of preferred stock, par value $0.0001 per share; (iv) authorize our board of directors to establish and issue one or more series of preferred stock from time to time and to fix the rights, preferences, privileges and restrictions thereof; (v) provide for the creation of Class B common stock in connection with our anticipated Up-C structure, with shares of Class B common stock to be issued to Continuing Equity Owners, with each share of Class B common stock entitled to one vote per share and no economic rights; and (iv) establish that Legacy Common Stock Investors are prohibited from selling their Class A common stock or related securities for 365 days following the consummation of this offering, or such shorter period as determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering; <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• WhiteHawk OpCo will enter into an amended and restated limited partnership agreement (the "OpCo
Agreement") to, among other things, (i) appoint OP GP as the sole general partner of WhiteHawk OpCo with the authority to manage and control the business and affairs of WhiteHawk OpCo, (ii) authorize the issuance of OpCo Interests to
us in exchange for the interests we own in WhiteHawk OpCo prior to this offering as well as the proceeds from this offering, (iii) provide the Continuing Equity Owners with the right to require WhiteHawk OpCo to redeem their OpCo Interests for,
at our election (determined solely by our independent directors who are disinterested), cash or newly-issued shares of our Class A common stock on a one-for-one basis (subject to customary adjustments), (iv) provide that, in connection with any
redemption or exchange of OpCo Interests, if applicable, a corresponding number of shares of Class B common stock held by the redeeming or exchanging Continuing Equity Owner will automatically be transferred to us for no consideration and canceled,
and (v) authorize the issuance to us of such number of Series B preferred units in WhiteHawk OpCo equal to the number of shares of our Series B preferred stock outstanding upon the consummation of the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will enter into a registration rights agreement with certain of our Continuing Equity Owners
(the "Registration Rights Agreement"), as further described in "Certain Relationships and Related Person Transactions;"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in connection with and in order to effectuate the Internalization, the Contribution Agreement will be entered
into by the parties thereto, pursuant to which, among other things, OpCo will acquire all of the outstanding equity interests in ManagementCo from the Management Owners in exchange for OpCo Interests and shares of Class B common stock. Prior to
the closing of this offering, ManagementCo, as our external manager, provided management, acquisition, disposition and oversight functions with respect to us and WhiteHawk OpCo. As a result of the Internalization, ManagementCo will become a wholly
owned subsidiary of WhiteHawk OpCo and we will become internally managed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will issue     shares of our Class A common stock to the purchasers in this offering
(or     shares if the underwriters exercise in full their option to purchase additional shares of Class A common stock) in exchange for net proceeds of approximately $ million
(or approximately $ million if the underwriters exercise in full their option to purchase additional shares of Class A common stock) based upon an assumed initial public offering price of $ per share
(which is the midpoint of the estimated price range set forth on the cover page of this prospectus), less the underwriting discount; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will use the net proceeds from this offering to purchase newly issued OpCo Interests for approximately
$ million directly from WhiteHawk OpCo at the initial public offering price less the underwriting discount.

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Immediately following the consummation of the Transactions (including this offering):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will be a holding company and our principal assets will consist of OpCo Interests we acquire or are otherwise
issued directly from WhiteHawk OpCo and all the membership interests in OP GP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as the sole member of OP GP, the sole general partner of WhiteHawk OpCo, we will control the business and affairs
of WhiteHawk OpCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will own, directly or indirectly,    OpCo Interests, representing
approximately   % of the economic interest in WhiteHawk OpCo (or    OpCo Interests, representing approximately     % of the economic interest in WhiteHawk OpCo if the underwriters exercise in full
their option to purchase additional shares of Class A common stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will own a number of Series B preferred units in WhiteHawk OpCo equal to the number of shares of Series B
preferred stock outstanding after the consummation of the Transactions, representing 100% of the preferred units of WhiteHawk OpCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will no longer have any shares of Series D preferred stock outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Continuing Equity Owners will own (i)     OpCo Interests, representing
approximately  % of the economic interest in WhiteHawk OpCo (or     OpCo Interests, representing approximately    % of the economic interest in WhiteHawk OpCo if the underwriters exercise in full their
option to purchase additional shares of Class A common stock) and (ii)     shares of our Class B common stock, representing approximately    % of the combined voting power of all of our common stock (or
     shares of our Class B common stock, representing approximately    % if the underwriters exercise in full their option to purchase additional shares of Class A common stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the purchasers in this offering will own (i)     shares of our Class A common stock
(or     shares of our Class A common stock if the underwriters exercise in full their option to purchase additional shares of Class A common stock), representing approximately   % of the combined voting
power of all of our common stock and   % of the economic interest in us (or approximately   % of the combined voting power and   % of the economic interest if the underwriters exercise in full their option to
purchase additional shares of Class A common stock), and (ii) through our ownership of OpCo Interests, indirectly will hold approximately   % of the economic interest in WhiteHawk OpCo (or approximately   % of the
economic interest in WhiteHawk OpCo if the underwriters exercise in full their option to purchase additional shares of Class A common stock).

The foregoing description of the Transactions does not give effect to OpCo Interests or shares of our Class B common stock that may be issued as a part of the Earnout Amount (as defined herein), as more fully described in the section titled "Certain Relationships and Related Party Transactions—Internalization—Earnout."

Following the Transactions, including this offering, we will control the management of WhiteHawk OpCo through our ownership of OP GP. As a result, we will consolidate WhiteHawk OpCo in our consolidated financial statements.

Unless otherwise indicated, this prospectus assumes the shares of Class A common stock are offered at $ per share (the midpoint of the estimated price range set forth on the cover page of this prospectus). For more information regarding the impact of the initial offering price on the share information included throughout this prospectus, see "The Offering."

Our corporate structure following this offering, as described below, is commonly referred to as an Up-C structure. The Up-C structure will allow the Continuing Equity Owners to retain their equity ownership in WhiteHawk OpCo following the Transactions and to continue to realize tax benefits associated with owning interests in an entity that is treated as a partnership, or "flow-through" entity, for U.S. federal income tax

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purposes. Investors in this offering will, by contrast, hold their equity ownership in us, a Delaware corporation that is a domestic corporation for U.S. federal income tax purposes, in the form of shares of Class A common stock. One of the tax benefits to the Continuing Equity Owners associated with this structure is that future taxable income of WhiteHawk OpCo that is allocated to the Continuing Equity Owners will be taxed on a flow-through basis and, therefore, will not be subject to corporate taxes at the entity level. Moreover, the Up-C structure permits the Continuing Equity Owners to defer the recognition of taxable gain on their OpCo Interests until they elect to exercise their redemption right (rather than recognizing such gain at the time of this offering). Additionally, because the Continuing Equity Owners may at their election have their OpCo Interests redeemed by WhiteHawk OpCo (or at our option, directly exchanged by us) for newly issued shares of our Class A common stock on a one-for-one basis (subject to customary adjustments, including for stock splits, stock dividends, and reclassifications) or, at our option, for cash, the Up-C structure also provides the Continuing Equity Owners with potential liquidity that holders of non-publicly traded limited liability companies are not typically afforded. Upon any such redemption or exchange of OpCo Interests for shares of Class A common stock, the Company may benefit from certain tax attributes, including potential increases in tax basis that may reduce the amount of tax that would otherwise be payable by us. In connection with any such redemption or exchange of OpCo Interests, a corresponding number of shares of Class B common stock held by the relevant Continuing Equity Owner will automatically be transferred to us for no consideration and be canceled.

For more information regarding the Transactions and our structure, see "Our Organizational Structure."

**Organizational Structure** 

The diagram below depicts our organizational structure after giving effect to the Transactions, including this offering and proposed use of proceeds, assuming no exercise by the underwriters of their option to purchase additional shares of Class A common stock and does not give effect to the issuance of any OpCo Interests or shares of Class B common stock in respect of the Earnout Amount.

![LOGO](g86452g06u13.jpg)

(1) Excludes any Continuing Equity Owners who hold Class A common stock as a result of the Common Stock
Reclassification (in addition to OpCo Interests and Class B common stock).

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(2) Legacy Common Stock Investors will be prohibited from selling their Class A common stock or related securities
for up to 365 days following the consummation of this offering, or such shorter period as determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering.

(3) We intend to use a portion of the proceeds from this offering to redeem any shares of Series D preferred
stock outstanding. See "Use of Proceeds." To the extent the proceeds of offering are insufficient to redeem the total aggregate principal amount of Series D preferred stock outstanding, the Company intends to use cash on hand to
fully redeem the total aggregate principal amount of Series D preferred stock outstanding. As a result, following this offering, the only outstanding preferred stock outstanding will be the Series B preferred stock.

**Corporate Information** 

WhiteHawk Income Corporation was formed on February 18, 2022 and is the issuer of the Class A common stock offered by this prospectus. We intend to change our corporate name to WhiteHawk Minerals Corp. in connection with the closing of this offering. See "—Summary of the Transactions" and "Our Organizational Structure." Our principal executive offices are located at 2000 Market Street, Suite 910, Philadelphia, PA 19103, and our telephone number is (610) 484-3412. Our corporate website address is https://www.whitehawkenergy.com/. Our website and the information contained on or that can be accessed through our website is not deemed to be incorporated by reference in, and is not considered part of, this prospectus. You should not rely on any such information in making your decision whether to purchase our Class A common stock.

**Summary of Risk Factors** 

Investing in our Class A common stock involves a number of risks. The following is a summary of the principal factors that make an investment in our Class A common stock speculative or risky, all of which are more fully described in the section titled "Risk Factors" included elsewhere in this prospectus. This summary should be read in conjunction with the "Risk Factors" section and should not be relied upon as an exhaustive summary of the material risks facing our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our revenues are primarily derived from mineral and royalty payments that are based on the price of natural gas,
NGL and oil which is subject to volatility due to factors beyond our control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lower natural gas, NGL and oil prices or negative adjustments of natural gas, NGL and oil prices may result in
significant impairment charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our derivative activities may limit the cash flows received from natural gas and oil sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The development of our properties relies exclusively on our third-party operators and these operators may fail to
develop our existing inventory of mineral and royalty acreage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Drilling for and producing natural gas, NGLs and oil are high-risk activities with many uncertainties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our third-party operators may fail to drill sufficient wells to hold acreage before lease expiration which may
result in loss of lease and prospective drilling opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may experience delays in the receipt of royalty payments and may not be able to terminate leases with
defaulting lessees if our third-party operators declare bankruptcy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may incur losses as a result of title defects or other issues in the properties we own;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A limited number of third-party operators currently generate a significant portion of our revenue and accounts
receivable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The substantial majority of our business is concentrated in the Appalachian and Haynesville Basins, making us
vulnerable to risks associated with such geographic concentration of our assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to risks related to our wells where we are a non-operating working interest owner;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our future success depends on replacing reserves through acquisitions and there may be constraints in our ability
to finance acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have experienced significant business and portfolio growth in a short time, and our significant growth rates
and financial results may not be sustainable or indicative of future financial performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any acquisition of additional mineral and royalty interests that we complete will be subject to substantial
risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our failure to retain our key personnel or attract additional qualified personnel could negatively affect our
business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our estimated proved reserves are based on many assumptions that may prove to be inaccurate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our identified drilling locations are susceptible to uncertainties that could materially alter the occurrence or
timing of their drilling and there is no guarantee that our estimates will be materially consistent with actual drilling activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We rely on our third-party operators, other third parties and government databases for information regarding our
assets and such information may be incorrect, incomplete or lost;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be subject to information technology system failures, network disruptions, cyber-attacks or other breaches
in data security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Declining general economic, business or industry conditions, which could have a material adverse effect on our
business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our industry is highly competitive, and competitive pressures could negatively affect our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exported liquified natural gas could fail to be a competitive source of energy for the United States or
international markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our growth strategy is partly dependent upon the continued expansion of electricity demand driven by AI data
center development and expectations regarding increased demand may not materialize;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The unavailability, high cost or shortages of equipment, raw materials, supplies or personnel for our third-party
operators related to developing and operating our properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The marketability of natural gas, NGLs and crude oil is dependent on the availability of equipment and
transportation facilities that is outside of our and our third-party operators' control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our third-party operators are subject to significant governmental regulations, and governmental authorities can
delay or deny permits and approvals or change legal requirements governing our business, which could restrict their operations, increase costs of conducting our business, and delay our implementation of, or cause us to change, our business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The development and enactment of climate change legislation as well as increased attention to sustainability may
impact our business or the business of our third-party operators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Future legislative or regulatory changes may have a material adverse effect on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our use of borrowings to finance our business exposes us to risks and any future indebtedness we may incur could
further increase the risks associated with our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We recently restated our audited consolidated financial statements to correct certain errors and have identified
material weaknesses in our internal control over financial reporting that caused our management to conclude that we did not maintain effective internal control over financial reporting and disclosure controls and procedures.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No market currently exists for our Class A common stock, and an active, liquid trading market for our Class A
common stock may not develop, which may cause our Class A common stock to trade at a discount from the initial offering price and make it difficult for you to sell the Class A common stock you purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We cannot predict the effect our dual class structure may have on the market price of our Class A common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our organizational structure confers certain benefits upon the Continuing Equity Owners that will not benefit
holders of our Class A common stock to the same extent that it will benefit the Continuing Equity Owners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delaware law and anti-takeover provisions in our governing documents, to be adopted upon the consummation of this
offering, may have the effect of delaying or preventing a change of control or changes in our management and may deprive our investors of the opportunity to receive a premium for their shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to pay regular dividends to our stockholders may be limited by our financial condition, results of
operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness and other factors and restrictions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The requirements of being a public company may strain our resources, divert management's attention and
affect our ability to attract and retain qualified board members and officers.

For a discussion of these and other risks you should consider before making an investment in our common stock, see the section entitled "Risk Factors."

**Emerging Growth Company** 

We are an "emerging growth company" as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"), as modified by the JOBS Act. For as long as we are an emerging growth company, unlike other public companies that do not meet those qualifications, we are not required to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide an auditor's attestation report on management's assessment of the effectiveness of our system
of internal control over financial reporting pursuant to Section 404(b) of Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide more than two years of audited financial statements and related management's discussion and
analysis of financial condition and results of operations in a registration statement on Form S-1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• comply with any new requirements adopted by the Public Company Accounting Oversight Board ("PCAOB")
requiring mandatory audit firm rotation or a supplement to the auditor's report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide certain disclosure regarding executive compensation required of larger public companies or hold
stockholder advisory votes on executive compensation required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act"); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obtain stockholder approval of any golden parachute payments not previously approved.

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can use the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. This permits an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We are choosing to take advantage of this extended transition period and, as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for private companies.

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We will cease to be an "emerging growth company" upon the earliest of: (i) the last day of the first fiscal year in which our annual gross revenues are $1.235 billion or more; (ii) the date on which we have issued more than $1.0 billion of non-convertible debt over a three-year period; (iii) the last day of the fiscal year following the fifth anniversary of our initial public offering; or (iv) the date on which we have been deemed a "large accelerated filer," which will occur as of the end of any fiscal year in which we (A) have an aggregate worldwide market value of voting and non-voting shares of common equity securities held by our non-affiliates of $700 million or more as of the last business day of our most recently completed second fiscal quarter, (B) have been subject to the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), for a period of at least 12 calendar months, (C) have filed at least one annual report pursuant to Section 13(a) or 15(d) of the Exchange Act, and (D) are no longer eligible to use the requirements for "smaller reporting companies," as defined in the Exchange Act, for our annual and quarterly reports.

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**THE OFFERING** 

Issuer WhiteHawk Income Corporation (to be changed to WhiteHawk Minerals Corp. in connection with the closing of the offering).

Class A Common stock offered by us shares (or shares, if the underwriters exercise in full their option to purchase additional shares).

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| OpCo Interests to be outstanding after this offering  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OpCo Interests, representing an approximately % economic interest in WhiteHawk OpCo (or OpCo Interests, representing an approximately % economic interest in WhiteHawk OpCo, if the underwriters exercise their option to purchase additional shares of Class A common stock in full)). |

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Option to purchase additional shares We have granted the underwriters a 30-day option to purchase up to an aggregate of additional shares of our Class A common stock to the extent the underwriters sell more than shares of Class A common stock in this offering.

Class A common stock to be outstanding after this offering shares (or shares if the underwriters exercise in full their option to purchase additional shares).

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| Shares of Class B common stock to be outstanding immediately after this offering  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares, representing approximately % of the combined voting power of all of our common stock (or shares, representing approximately % of the combined voting power of all of our common stock if the underwriters exercise in full their option to purchase additional shares of Class A common stock) and no economic interest in WhiteHawk Minerals Corp. |

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| OpCo Interests to be held by us immediately after this offering  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OpCo Interests, representing approximately % of the economic interest in WhiteHawk OpCo (or OpCo Interests, representing approximately % of the economic interest in WhiteHawk OpCo if the underwriters exercise in full their option to purchase additional shares of Class A common stock). |

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| OpCo Interests to be held directly by the Continuing Equity Owners immediately after this offering  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OpCo Interests, representing approximately % of the economic interest in WhiteHawk OpCo (or OpCo Interests, representing approximately % of the economic interest in WhiteHawk OpCo if the underwriters exercise in full their option to purchase additional shares of Class A common stock). Certain Continuing Equity Owners will also hold an aggregate of shares of Class A common stock after this offering. |

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| Ratio of shares of Class A common stock to OpCo Interests  | The OpCo Agreement will require that we and WhiteHawk OpCo at all times maintain a one-to-one ratio between the number of shares of Class A common stock issued by us and the number of OpCo Interests owned by us. |

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| Ratio of shares of Class B common stock to OpCo Interests  | Our amended and restated certificate of incorporation and the OpCo Agreement will require that we and WhiteHawk OpCo at all times maintain a one-to-one ratio between the number of shares of Class B common stock owned by the Continuing Equity Owners and their respective permitted transferees and the number of OpCo Interests owned by the Continuing Equity Owners and their respective permitted transferees. Immediately after the Transactions, the Continuing Equity Owners will together own % of the outstanding shares of our Class B common stock. |

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| Permitted holders of shares of Class B common stock  | Only the Continuing Equity Owners and the permitted transferees of Class B common stock as described in this prospectus will be permitted to hold shares of our Class B common stock. See "Certain Relationships and Related Person Transactions—OpCo Agreement—Agreement in Effect Upon Consummation of the Transactions." |

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| Voting rights  | Holders of shares of our Class A common stock and Class B common stock will vote together as a single class on all matters presented to stockholders for their vote or approval, except as otherwise required by law or our amended and restated certificate of incorporation. Each share of our Class A common stock and Class B common stock entitles its holders to one vote per share on all matters presented to our stockholders generally. See "Description of Capital Stock." |

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| Redemption rights of holders of OpCo Interests  | The Continuing Equity Owners may, subject to certain exceptions, from time to time at each of their options require WhiteHawk OpCo to redeem all or a portion of their OpCo Interests in exchange for, at our election (determined solely by our independent directors (within the meaning of the Exchange rules) who are disinterested), newly-issued shares of our Class A common stock on a one-for-one basis (subject to customary adjustments, including for stock splits, stock dividends, and reclassifications) or a cash payment equal to a volume weighted average market price of one share of our Class A common stock for each OpCo Interest so redeemed, in each case, in accordance with the terms of the OpCo Agreement; provided that, at our election (determined solely by our independent directors (within the meaning of the Exchange rules) who are disinterested), we may effect a direct exchange by us of such Class A common stock or such cash, as applicable, for such OpCo Interests. Simultaneously with the payment of cash or shares of Class A common stock, as applicable, in  |

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connection with a redemption or exchange of OpCo Interests pursuant to the terms of the OpCo Agreement, a number of shares of our Class B common stock registered in the name of the redeeming or exchanging Continuing Equity Owner and permitted transferees will automatically be transferred to us for no consideration on a one-for-one basis with the number of OpCo Interests so redeemed or exchanged and such shares of Class B common stock will be canceled. See "Certain Relationships and Related Person Transactions—OpCo Agreement—Agreement in Effect Upon Consummation of the Transactions." <br>

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|:---|:---|
| Use of proceeds  | We estimate that the net proceeds from the sale of our Class A common stock in this offering, after deducting the underwriting discount and estimated offering expenses payable by us, will be approximately $(or $ if the underwriters exercise their option to purchase additional shares of Class A common stock in full) based on an assumed initial public offering price of $ per share (the midpoint of the price range set forth on the cover of this prospectus). |

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We intend to use the net proceeds from this offering, as well as cash on hand, as follows: (i) approximately $ million to prepay, in whole or in part, the outstanding principal of our Senior Notes, (ii) approximately $ million for the redemption of all of the outstanding shares of our Series D preferred stock, (iii) approximately $ million for the redemption of a portion of our outstanding Series B preferred stock, and (iv) the remainder for other general corporate purposes, including payment of a Liquidity Incentive Fee (as defined herein).

We are a holding company and our only assets after consummation of this offering will be our ownership of OpCo Interests and membership units in OP GP. Accordingly, we intend to use the net proceeds from this offering to purchase newly issued OpCo Interests from WhiteHawk OpCo at a price per unit equal to the initial public offering price per share of Class A common stock, less estimated underwriting discounts and commissions. In the event the underwriters exercise their option to purchase additional shares of Class A common stock, we intend to use any such additional proceeds in the same manner. See "Use of Proceeds."

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| Dividend Policy  | We expect to pay quarterly dividends on our Class A common stock in amounts determined from time to time by our board of directors. However, the declaration and payment of any dividends will be at the sole discretion of our board of directors, which may change our dividend policy at any time. Holders of our Class B common stock are not entitled to participate in any dividends declared by our board of directors. Because we are a holding company, our ability to pay cash dividends on our Class A common stock depends on our receipt of cash distributions from WhiteHawk OpCo and our operating  |

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subsidiaries. Our ability to pay dividends may be restricted by the terms of any future credit agreement or any future debt or preferred equity securities of us. Our ability to pay dividends is also restricted by covenants governing our Senior Notes and Revolving Credit Facility. Our payment of dividends may vary from quarter to quarter, may be significantly reduced or may be eliminated entirely. Future dividend levels will depend on the requirements, regulatory restrictions, any restrictions in financing agreements and other factors deemed relevant by the board. See "Risk Factors—Risks Related to this Offering and Ownership of Our Class A Common Stock—We intend to pay regular dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and may be limited…" for additional discussion of factors that could impact our ability to pay dividends. Please read "Dividend Policy." <br>

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|:---|:---|
| Directed Share Program  | The underwriters have reserved for sale at the initial public offering price up to % of the Class A common stock being offered by this prospectus for sale to our employees, executive officers, directors, business associates and related persons who have expressed an interest in purchasing Class A common stock in this offering. We do not know if these persons will choose to purchase all or any portion of these reserved shares, but any purchases they do make will reduce the number of shares available to the general public. The sales of shares pursuant to the directed share program will be made by Raymond James & Associates, Inc., an underwriter of this offering. Please read "Underwriting." |

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|:---|:---|
| Registration Rights Agreement  | Pursuant to the Registration Rights Agreement, we will, subject to the terms and conditions thereof, agree to register the resale of the shares of our Class A common stock that are issuable to certain Continuing Equity Owners in connection with the Transactions. See "Certain Relationships and Related Person Transactions—Registration Rights Agreement" for a discussion of the Registration Rights Agreement. |

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Risk Factors Investing in our Class A common stock involves risks. See the "Risk Factors" section of this prospectus beginning on page 34 for a discussion of factors you should carefully consider before investing in our Class A common stock.

Listing We intend to apply to have our Class A common stock listed on the NYSE under the symbol "WHK."

The number of shares of our Class A common stock that will be outstanding upon the completion of the offering excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock issuable upon exercise of the
underwriters' option to purchase additional shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock issuable upon the vesting and settlement
of restricted stock units outstanding as of      ; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; additional shares of Class A common stock reserved for future issuance
under our Amended and Restated WhiteHawk Income Corporation 2026 Equity Incentive Plan (the "A&R 2026

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Plan") that will become effective on the date our registration statement of which this prospectus forms a part becomes effective, as well as any shares that become issuable pursuant to provisions in the A&R 2026 Plan that automatically increase the share reserve under the A&R 2026 Plan as set forth in "Executive and Director Compensation—Anticipated Changes to our Compensation Program Following This Offering —A&R 2026 Equity Incentive Plan." <br>

Except as otherwise indicated, all information in this prospectus assumes or gives effect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amendment and restatement of the OpCo Agreement that converts all existing ownership interests in WhiteHawk
OpCo into    OpCo Interests, as well as the filing of our amended and restated certificate of incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the completion of the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise of the underwriters' option to purchase up to     additional shares of
Class A common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an initial public offering price of $ per share (the midpoint of the price range set
forth on the cover of this prospectus);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that no shares are purchased under the directed share program; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our amended and restated certificate of incorporation and our amended and restated bylaws, which will become
effective prior to or upon the closing of this offering.

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**SUMMARY HISTORICAL AND PRO FORMA CONDENSED CONSOLIDATED FINANCIAL** 

**AND OTHER DATA** 

The following tables present (i) summary historical consolidated financial and other data of the Company and its consolidated subsidiaries and (ii) summary unaudited pro forma condensed consolidated combined financial data for the Company and its subsidiaries.

We derived the summary consolidated balance sheet data as of December 31, 2025 and 2024 and the summary consolidated statements of operations data for the years ended December 31, 2025 and 2024 from our audited consolidated financial statements and related notes thereto included elsewhere in this prospectus (in the case of financial data as of and for the year ended December 31, 2025 as restated in the Restatement). You should read this data together with our consolidated financial statements and related notes included elsewhere in this prospectus and the sections titled "Management's Discussion and Analysis of Financial Condition and Results of Operations." Our historical results for any prior period are not necessarily indicative of the results of future operations and should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the audited consolidated financial statements and notes thereto included elsewhere in this prospectus.

We derived the summary unaudited pro forma condensed consolidated combined balance sheet as of December 31, 2025 and the summary unaudited pro forma condensed consolidated combined statements of operations for the year ended December 31, 2025 from the unaudited pro forma consolidated financial data included elsewhere in this prospectus. The unaudited pro forma consolidated financial information gives pro forma effect to the transactions described under "Unaudited Pro Forma Condensed Consolidated Combined Financial Information." The unaudited pro forma condensed consolidated financial data includes various estimates that are subject to material change and may not be indicative of what our operations or financial position would have been had this offering and related transactions taken place on the dates indicated, or that may be expected to occur in the future. See "Unaudited Pro Forma Condensed Consolidated Combined Financial Information" for a complete description of the adjustments and assumptions underlying the summary unaudited pro forma condensed consolidated financial data.

**Condensed Consolidated Statements of Operations:** 

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|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Pro Forma<sup>(1)</sup>** |
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2025** |
|  | **(As<br>Restated)** | | |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  **Revenues:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty revenue | $50075 | $12702 | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on commodity derivative instruments | 16648 | (4418) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus revenue | 872 | 1166 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | $67595 | 9450 |  |
|  **Operating expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 16585 | 2792 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 9966 | 4681 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 24237 | 10827 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | $50788 | 18300 |  |

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| | | | |
|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Pro Forma<sup>(1)</sup>** |
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2025** |
|  | **(As<br>Restated)** | | |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  **Operating income (loss)** | $16807 | (8850) |  |
|  **Other expense:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | 3839 | 359 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sale of assets | 123 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 19070 | 3939 |  |
|  **Income (loss) before income taxes** | $(6225) | (13148) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) income taxes | (2640) | (1587) |  |
|  **Net income (loss)**  | $(3585) | $(11561) | $|

---

(1) See unaudited pro forma condensed consolidated combined statement of operations for the year ended
December 31, 2025 in "Unaudited Pro Forma Condensed Consolidated Combined Financial Information" for more information.

**Condensed Consolidated Balance Sheet Data:** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Pro<br>Forma<sup>(1)</sup>** |
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** | **2025** |
|  | **(As Restated)** | | |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  Cash and cash equivalents | $28989 | $5330 | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $507138 | $165920 | $|
|  Total liabilities | 270722 | 74128 |  |
|  Total mezzanine equity | 27662 | 21225 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity | $208754 | $70567 | $|

---

(1) See unaudited pro forma condensed consolidated combined balance sheet as of December 31, 2025 in
"Unaudited Pro Forma Condensed Consolidated Combined Financial Information" for more information.

**Non-GAAP Financial Measures** 

Adjusted EBITDA and Cash Available for Distribution (and their pro forma counterparts) are supplemental non-GAAP financial measures used by our management and by external users of our financial statements such as investors, research analysts and others that our management believes are useful to assess the financial performance of our assets and their ability to sustain dividends and/or share repurchases over the long term without regard to financing methods, capital structure or historical cost basis.

We define Adjusted EBITDA as net income (loss) before interest expense, income taxes, and depreciation, depletion and amortization adjusted for unrealized gains and losses on commodity derivative instruments, non-cash equity-based compensation, if any, accretion of asset retirement obligations, impairment of oil and natural gas properties, if any, gains and losses on sales of assets, if any, loss on extinguishment of debt, transaction costs and other non-cash or non-recurring operating expenses, if any. We reconcile Adjusted EBITDA to net income (loss), its most directly comparable GAAP measure.

We define Cash Available for Distribution as net cash provided by operating activities excluding amortization of debt issuance costs, interest expense, net, transaction costs, deferred taxes, provision for income taxes,

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management fees, and changes in operating assets and liabilities, plus or minus amounts for certain non-cash operating activities, cash interest expense, cash taxes and cash preferred dividends. We reconcile Cash Available for Distribution to net cash provided by operating activities, its most directly comparable GAAP measure.

We define Pro Forma Adjusted EBITDA as Adjusted EBITDA as adjusted for management fees and the effects of the TRR Acquisition and the PHX Acquisition. We define Pro Forma Cash Available for Distribution as Cash Available for Distribution as adjusted for management fees and the effects of the TRR Acquisition and the PHX Acquisition. While these measures do adjust for management fees that we will no longer incur after the Transactions, they do not reflect the full pro forma effects of the Transactions, which are not known as of the date of this registration statement. These measures will be updated to reflect the full pro forma effects of the Transactions in a subsequent amendment to this registration statement.

Adjusted EBITDA and Cash Available for Distribution (and their pro forma counterparts) do not represent and should not be considered alternatives to, or more meaningful than, their most directly comparable GAAP financial measures or any other measure of financial performance presented in accordance with GAAP as measures of our financial performance. Our non-GAAP financial measures have important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP financial measure. Our computations of Adjusted EBITDA and Cash Available for Distribution (and their pro forma counterparts) may differ from computations of similarly titled measures of other companies.

The following table presents a reconciliation of Adjusted EBITDA and Cash Available for Distribution (and their pro forma counterparts) to the most directly comparable GAAP financial measures for the periods indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Pro<br>Forma<sup>(1)</sup>** |
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2025** |
|  | **(As Restated)** | | |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  Net income (loss)  | $(3585) | $(11561) | $(541) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 19070 | 3939 | 19729 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 24237 | 10827 | 36451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | (2640) | (1587) | (1343) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized loss (gain) on commodity derivative instruments | (8121) | 13134 | (8121) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees |  |  | 9966<sup>(2)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | 3839 | 359 | 3839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 179 |  | 861<sup>(3)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction costs | 7396 | 300 | 11596<sup>(4)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on the sale of assets | 123 |  | (6306) |
|  Adjusted EBITDA | $40498 | $15411 | $66131 |

---

<sup>(1)</sup> See our Unaudited Pro Forma Condensed Consolidated Combined Financial Information included elsewhere in this prospectus for more information about our pro forma financial measures. Unless otherwise indicated, these measures reflect adjustments for management fees and the effects of the TRR Acquisition and the PHX Acquisition, but do not reflect the full pro forma effects of the Transactions, which are not known as of the date of this registration statement. These measures will be updated to reflect the Transactions in a subsequent amendment to this registration statement. 

<sup>(2)</sup> Reflects inclusion of $6.2 million of Base Management Fees and $3.7 million of Dividend Incentive Fees. After the completion of the Transactions, the Company will no longer incur the Base Management Fees or the Dividend Incentive Fees. 

<sup>(3)</sup> Reflects inclusion of $0.7 million of stock-based compensation expense from the historical statement of operations of PHX Minerals incurred during the period from January 1, 2025 through June 23, 2025 (date of acquisition). 

<sup>(4)</sup> Reflects inclusion of $4.2 million of non-recurring transaction expenses from the historical statement of operations of PHX Minerals incurred during the period from January 1, 2025 through June 23, 2025 (date of acquisition). 

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The following table presents a reconciliation of Cash Available for Distribution to the most directly comparable GAAP financial measure for the period indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Pro<br>Forma<sup>(1)</sup>** |
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2025<sup>(1)</sup>** |
|  | **(As Restated)** | | |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  Net cash provided by operating activities | $13577 | $9447 | 23088<sup>(2)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance costs | (744) | (316) | (744) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 19070 | 3939 | 19729 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction costs | 7396 | 300 | 11596<sup>(3)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred taxes | 3508 | 1587 | 3508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income taxes | (2640) | (1587) | (1343) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees |  |  | 9966<sup>(4)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities | 331 | 2041 | 331 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash interest expense | (19117) | (3780) | (19978)<sup>(5)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash income taxes | (745) | (877) | (1034)<sup>(6)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred dividends | (7076) | (5114) | (7076) |
|  Cash Available for Distribution | $13560 | $5640 | 38043 |

---

<sup>(1)</sup> See our Unaudited Pro Forma Condensed Consolidated Combined Financial Information included elsewhere in this prospectus for more information about our pro forma financial measures. Unless otherwise indicated, these measures reflect adjustments for management fees and the effects of the TRR Acquisition and the PHX Acquisition, but do not reflect the full pro forma effects of the Transactions, which are not known as of the date of this registration statement. These measures will be updated to reflect the Transactions in a subsequent amendment to this registration statement. 

<sup>(2)</sup> Reflects inclusion of pro forma income statements changes related to the TRR Acquisition and PHX Acquisition.

<sup>(3)</sup> Reflects inclusion of $4.2 million of non-recurring transaction expenses from the historical statement of operations of PHX Minerals incurred during the period from January 1, 2025 through June 23, 2025 (date of acquisition). 

<sup>(4)</sup> Reflects inclusion of $6.2 million of Base Management Fees and $3.7 million of Dividend Incentive Fees. After the completion of the Transactions, the Company will no longer incur the Base Management Fees or the Dividend Incentive Fees. 

<sup>(5)</sup> Reflects inclusion of $0.8 million of cash interest expense from the historical statement of operations of PHX Minerals incurred during the period from January 1, 2025 through June 23, 2025 (date of acquisition). 

<sup>(6)</sup> Reflects inclusion of $0.3 million of cash income taxes from the historical statement of operations of PHX Minerals incurred during the period from January 1, 2025 through June 23, 2025 (date of acquisition). 

**SUMMARY RESERVE DATA** 

The following table sets forth (i) estimates of our net proved natural gas, NGL and oil reserves as of December 31, 2025 based on the reserve report prepared by CG&A, (ii) estimates of our net proved natural gas, NGL and oil reserves as of December 31, 2024 based on the reserve report prepared by Schaper Energy, (iii) estimates of the PHX net proved natural gas, NGL and oil reserves as of December 31, 2024 based on the reserve report prepared by CG&A and (iv) estimates of the TRR Seller's ****net proved natural gas and oil reserves as of December 31, 2024 based on the reserve report prepared by Ryder Scott. The reserve reports were prepared in accordance with the rules and regulations of the SEC. You should refer to "Risk Factors," "Business—Our Natural Gas, NGL and Oil Data," "Business—Our Natural Gas, NGL and Oil Production Prices and Costs," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our historical consolidated financial statements and related notes thereto included elsewhere in this prospectus in evaluating the material presented below. The following table provides (a) our estimated proved reserves as of December 31, 2025 and (b) our, PHX's and the TRR Seller's ****estimated

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proved reserves, as of December 31, 2024, as applicable, using the provisions of the SEC rules regarding reserve estimation regarding a historical twelve-month pricing average applied prospectively. WhiteHawk's estimates as of December 31, 2024 do not give effect to the PHX Acquisition and the Three Rivers Royalty Acquisition.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **WhiteHawk<sup>(1)</sup>** | **PHX<sup>(2)</sup>** | **TRR Seller<sup>(3)</sup>** | **Combined<br>WhiteHawk,<br>PHX and TRR<br>Seller<sup>(4)</sup>** | **WhiteHawk<sup>(5)</sup>** |
|  | **December 31, 2024**<br>**(dollars in thousands)** | **December 31, 2024**<br>**(dollars in thousands)** | **December 31, 2024**<br>**(dollars in thousands)** | **December 31, 2024**<br>**(dollars in thousands)** | **December 31,<br>2025** |
|  **Estimated proved developed producing reserves:** |  |  |  |  |  |
|  Natural gas (MMcf) | 64783 | 41648 | 47103 | 153534 | 154137 |
|  NGLs (MBbls) | 690 | 1320 | 653 | 2663 | 2914 |
|  Oil (MBbls) | 23 | 943 | 14 | 980 | 1154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total (MMcfe)<sup>(6)</sup> | 69061 | 55227 | 51105 | 175393 | 178544 |
|  **Estimated proved developed non-producing reserves:** |  |  |  |  |  |
|  Natural gas (MMcf) | 469 | 901 | 2424 | 3794 | 19094 |
|  NGLs (MBbls) | 11 | 2 | 61 | 74 | 459 |
|  Oil (MBbls) | 0 | 5 | 4 | 9 | 203 |
|  Total (MMcfe)<sup>(6)</sup> | 535 | 944 | 2814 | 4293 | 23066 |
|  **Estimated proved undeveloped reserves:** |  |  |  |  |  |
|  Natural gas (MMcf) | 16469 | 6758 | 0 | 23227 | 4149 |
|  NGLs (MBbls) | 176 | 26 | 0 | 202 | 84 |
|  Oil (MBbls) | 16 | 99 | 0 | 115 | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total (MMcfe)<sup>(6)</sup> | 17619 | 7506 | 0 | 25125 | 4864 |
|  **Estimated proved reserves:** |  |  |  |  |  |
|  Natural gas (MMcf) | 81721 | 49307 | 49527 | 180555 | 177380 |
|  NGLs (MBbls) | 877 | 1348 | 714 | 2939 | 3457 |
|  Oil (MBbls) | 39 | 1047 | 18 | 1104 | 1392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total (MMcfe)<sup>(6)</sup> | 87213 | 63677 | 53919 | 204809 | 206473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Standardized Measure ($) | $61933 | $76255 | $45088 | $183276 | $266326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PV-10 ($)<sup>(7)</sup> | $72153 | $79642 | $45088 | $196883 | $293690 |

---

(1) Our estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry Hub
spot price calculated in accordance with SEC guidance of $2.13 per MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West Texas
Intermediate price calculated in accordance with SEC guidance of $75.48 per barrel as of December 31, 2024 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All economic
factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $1.788 per Mcf of gas, $26.32 per
barrel of NGLs and $65.26 per barrel of oil as of December 31, 2024.

(2) PHX's estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry
Hub spot price calculated in accordance with SEC guidance of $2.13 per MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West
Texas Intermediate price calculated in accordance with SEC guidance of $75.48 per barrel as of December 31, 2024 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All economic
factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $2.051 per Mcf of gas, $20.968 per
barrel of NGLs and $73.477 per barrel of oil as of December 31, 2024.

(3) The TRR Seller's estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry Hub
spot price calculated in accordance with SEC guidance of $2.13 per

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MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West Texas Intermediate price calculated in accordance with SEC guidance of $75.48 per barrel as of December 31, 2024 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All economic factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $1.44 per Mcf of gas, $23.67 per barrel of NGLs and $71.51 per barrel of oil as of December 31, 2024.

(4) Combined reserve data generally represents the arithmetic sum of the proved reserves attributable to the
Company, PHX and the TRR Seller. The proved reserves of PHX and the TRR Seller are based on their respective reserve engineers' reserve estimation methodologies. Because we will estimate proved reserves in accordance with our own
methodologies, the estimates presented herein for PHX and the TRR Seller may not be representative of our future reserve estimates with respect to these properties or the reserve estimates we would have reported if we had owned such properties as of
December 31, 2024.

(5) Our estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry
Hub spot price calculated in accordance with SEC guidance of $3.387 per MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West
Texas Intermediate price calculated in accordance with SEC guidance of $65.34 per barrel as of December 31, 2025 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All
economic factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $3.03 per Mcf of
gas, $22.03 per barrel of NGLs and $62.99 per barrel of oil as of December 31, 2025.

(6) Natural gas equivalents are calculated using a ratio of six thousand cubic feet of natural gas to one barrel of
oil, condensate or NGLs, based on approximate relative energy content. This ratio does not represent the current or historical price relationship between natural gas and oil or NGLs.

(7) PV-10 is a non-GAAP financial
measure and differs from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure. PV-10 is a computation of the standardized measure of
discounted future net cash flows on a pre-tax basis. PV-10 is equal to the standardized measure of discounted future net cash flows at the applicable date, before
deducting future income taxes, discounted at 10% using SEC rules. We believe that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows
attributable to our estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas properties. Further, investors may
utilize PV-10 as a basis for comparison of the relative size and value of our reserves to other companies without regard to the specific tax characteristics of such entities. We use PV-10 when assessing the potential return on investment related to our oil and natural gas properties; however, PV-10 is not a substitute for the standardized measure of
discounted future net cash flows. PV-10 and the standardized measure of discounted future net cash flows do not purport to represent the fair value of our oil and natural gas reserves. See
"Business—Natural Gas, NGL and Oil Data—Proved Reserves—Reconciliation of Standardized Measure to PV-10."

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**RISK FACTORS** 

*Investing in our Class A common stock involves a high degree of risk. You should carefully consider each of the following risk factors, as well as other information contained in this prospectus, including the matters addressed under "Cautionary Note Regarding Forward-Looking Statements," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our audited consolidated financial statements and related notes, before investing in our Class A common stock. The occurrence of any of the following risks could have a material adverse effect on our business, financial condition and results of operations, in which case the trading price of our Class A common stock could decline and you could lose all or part of your investment. Some statements in this prospectus, including statements in the following risk factors, constitute forward-looking statements. See the section of this prospectus captioned "Cautionary Note Regarding Forward-Looking Statements."* 

**Risks Related to Our Business** 

***Our revenues are primarily derived from mineral and royalty payments that are based on the price at which natural gas, NGLs and oil produced by our third-party operators from the acreage underlying our interests are sold. The volatility of these prices due to factors beyond our control could have a material adverse effect on our business, financial condition and results of operations.***

The supply of and demand for natural gas, NGLs and oil impact the revenues we realize and, in turn, could materially affect our financial results. Our revenues, operating results, Cash Available for Distribution and the carrying value of our natural gas, NGL and oil properties depend significantly upon the prevailing prices for natural gas, NGLs and oil. Natural gas, NGL and oil prices have historically been, and will likely continue to be, volatile. The prices for natural gas, NGLs and oil are subject to wide fluctuation in response to a number of factors beyond our control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• global economic conditions and market uncertainty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the supply of and demand for natural gas, NGLs and oil, both domestically and abroad;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the level of global natural gas and oil exploration and production;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• commodity futures trading and the level of prices and expectations about future prices of natural gas and
oil;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regional price differentials and differing quality and NGL content of natural gas produced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the price and quantity of imports and the level of U.S. exports of natural gas, NGLs and oil, including the
export of natural gas as LNG;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• availability and development of liquefication facilities to support LNG export demand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions taken by the Organization of Petroleum Exporting Countries Plus ("OPEC+") or other major
natural gas, NGL and oil producing or consuming countries and the ability of members of OPEC+ to agree to and maintain oil price and production controls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• technological advancements affecting energy consumption and energy supply, including the development of AI data
centers and related demand for natural gas power generation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of ongoing conflict and changing sanctions regimes in oil or natural gas producing regions, such as
Iran, Russia and Venezuela;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disruptions to global oil supply and transportation through critical maritime chokepoints, including the Strait
of Hormuz, through which a substantial portion of the world's oil supply transits, due to military conflict, naval blockades, mine deployment, or other hostile actions by state or non-state actors, which could cause significant and rapid
fluctuations in global oil prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with operating drilling rights;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of exploring for, developing, producing and delivering natural gas and oil;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the proximity, cost, availability and capacity of natural gas, NGLs and oil pipelines and other transportation
and processing facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• speculative trading in natural gas and crude oil derivative contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conservation and environmental protection efforts and the price and availability of, and competition from,
alternative fuels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• events outside of our control such as weather conditions and other natural disasters, the impacts and effects of
public health crises, pandemics and epidemics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in U.S. energy policy and other domestic and foreign governmental regulations, taxes, duties and tariffs;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the continued threat of terrorism, social unrest, and political instability or armed conflict in major natural
gas and oil producing regions outside the United States and the impact of military and other actions, including, but not limited to, U.S. military operations in the Middle East and Venezuela.

These factors and the volatility of the energy markets make it extremely difficult to predict future natural gas, oil and NGL price movements with any certainty. Natural gas and oil prices continued to fluctuate in fiscal year 2025, with the benchmark Henry Hub natural gas spot price increasing approximately 58% in 2025 compared to 2024, while the WTI crude oil benchmark declined approximately 15% over the same period. If the prices of natural gas, NGLs and oil decline, our operations, financial condition and level of expenditures for the development of our natural gas, NGL and oil reserves may be materially and adversely affected, and can include other material negative effects including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significantly decrease the number of wells operators drill on our acreage, or the development of pipelines to
transport production, thereby reducing our production and cash flows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cash flows would be reduced, decreasing cash available for distribution and/or acquisitions to replace reserves
and maintain or increase production;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain reserves may no longer be economic for our operators to produce, leading to lower proved reserves,
production and cash flows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future undiscounted and discounted net cash flows from producing properties would decrease, possibly resulting in
recognition of impairment expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• access to sources of capital, such as equity and debt markets, could be severely limited or unavailable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• could limit our ability to make scheduled payments on our First Lien Senior Secured Notes (our "Senior
Notes") and our Revolving Credit Facility (our "Revolving Credit Facility").

***Lower natural gas, NGL and oil prices or negative adjustments to natural gas, NGL and oil reserves may result in significant impairment charges.***

The Company follows the successful efforts method of accounting for our natural mineral operations. Under this method, costs to acquire mineral and royalty interests in natural gas mineral properties are capitalized when incurred. We review and evaluate our mineral and royalty interests in natural gas mineral properties for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Proved natural gas properties are reviewed for impairment when events and circumstances indicate a potential decline in the fair value of such properties below the carrying value, such as a downward revision of the reserve estimates or lower commodity prices. The factors used to determine fair value include, but are not limited to, estimates of proved reserves, future commodity prices, the timing of future production and a discount rate commensurate with the risk reflective of the lives remaining for the respective natural gas properties. Because of

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the uncertainty inherent in these factors, we cannot predict when or if future impairment charges will be recorded. If an impairment charge is recognized, cash flows from operating activities is not impacted, but net income and, consequently, stockholders' equity are reduced. In periods when impairment charges are incurred, it could have a material adverse effect on our results of operations.

Historically, natural gas, NGLs and oil prices have been volatile and may continue to be volatile in the future. During the past five years, the Henry Hub spot market price for natural gas has ranged from a low of $1.21 per MMBtu in November 2024 to a high of $23.86 per MMBtu in February 2021. The posted price for WTI has ranged from a low of negative $36.98 per barrel in April 2020 to a high of $123.64 per barrel in March 2022. As of December 31, 2025, the posted price for WTI was $57.26 per barrel and the Henry Hub spot market price of natural gas was $4.00 per MMBtu. Lower prices not only decrease our revenues, but also potentially impact the amount of natural gas, NGLs and oil that our operators can produce economically. This, in turn, can impact the capital budgets for our operators and their development pace of our properties. We expect commodity price volatility will continue in the future. If these pricing trends persist, our revenues and cash flows could be materially reduced, which could adversely affect our ability to pay dividends, service our debt obligations, and pursue our acquisition strategy. See "Management's Discussion and Analysis of Financial Condition and Results of Operations" for additional discussion of the impact of commodity prices on our business.

See "Note 2, Summary of Significant Accounting Policies—Mineral Interests in Natural Gas Properties" to the audited consolidated financial statements included elsewhere in this prospectus for further discussion.

***Our derivative activities may reduce the cash flows received for natural gas and oil sales.***

In order to manage exposure to price volatility on our natural gas and oil production, we currently, and may in the future, enter into natural gas and oil derivative contracts for a portion of our expected production. Natural gas and oil price derivatives may limit the cash flows we actually realize and therefore reduce our ability to fund future projects. None of our natural gas and oil price derivative contracts are designated as hedges for accounting purposes; therefore, all changes in fair value of derivative contracts are reflected in earnings. Accordingly, these fair values may vary significantly from period to period, materially affecting reported earnings. In addition, this type of derivative contract can limit the benefit we would receive from increases in the prices for natural gas and oil. The fair value of our natural gas and oil derivative instruments outstanding as of December 31, 2025 was approximately a net asset of $0.7 million.

There is risk associated with derivative contracts that involves the possibility that counterparties may be unable to satisfy contractual obligations to us. If any counterparty to our derivative instruments were to default or seek bankruptcy protection, it could subject a larger percentage of our future natural gas and oil production to commodity price changes, could adversely affect our cash flows and could have a negative effect on our ability to fund future acquisitions. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Quantitative and Qualitative Disclosures about Market Risk."

***The development of our properties in which we own mineral and royalty interests relies exclusively on our various third-party operators. Our third-party operators' failure to develop our existing inventory of mineral and royalty acreage could have a material adverse effect on our business, financial condition and results of operations.***

We depend exclusively on various unaffiliated third-party operators for all of the exploration, development and production of our mineral and royalty interests and a substantial amount of our revenue is derived from royalty payments made by these third-party operators. We are unable to determine with certainty which third-party operators will ultimately operate our properties and there is no guarantee that any particular third-party operator will become or remain the operator on the properties associated with our mineral and royalty interests, and such third-party operators may identify, and subsequently focus their efforts and development on, prospects in which we do not maintain mineral or royalty interests. A reduction in the expected number of wells to be drilled on our

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acreage by these operators or the failure of our third-party operators to adequately and efficiently develop and operate the wells on our acreage could have a material adverse effect on our business, financial conditions and results of operations. The success and timing of drilling and development activities and whether the operators elect to drill any additional wells on our acreage depends on a number of factors that are largely outside of our control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the capital costs required for drilling activities by our third-party operators, which could be significantly
more than anticipated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our third-party operators to access capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prevailing commodity prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of suitable drilling equipment, production and transportation infrastructure and qualified
operating personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of storage for hydrocarbons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the operators' expertise, operating efficiency and financial resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approval of other participants in drilling wells;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the operators' expected return on investment in wells drilled on our acreage as compared to opportunities
in other areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the selection of technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the selection of counterparties for the marketing and sale of production; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the rate of production of the reserves.

Our proved undeveloped reserves may not be developed or produced as a result of any number of these factors. Recovery of proved undeveloped reserves requires significant capital expenditures and successful drilling operations, and the decision to pursue development of a proved undeveloped drilling location will be made by our third-party operators and not by us. Our third-party operators may elect not to undertake development activities or may undertake to develop these activities in a delayed or an unanticipated fashion, which may result in significant fluctuations in the revenues generated by our mineral and royalty interests. Third-party operators will make decisions in connection with their operations, which may not be in our best interests and our third-party operators may also reduce capital expenditures devoted to exploration, development and production on our properties in the future, which could negatively impact the revenues we receive. We have limited ability to exercise influence over the operational decisions of our third-party operators, including the setting of capital expenditure budgets and drilling locations and schedules.

***Drilling for and producing natural gas, NGLs and oil are high-risk activities with many uncertainties that may materially adversely affect our business, financial condition and results of operations.***

Drilling for natural gas and oil invariably involves unprofitable efforts, not only from dry wells, but also from wells that are productive but do not produce sufficient reserves to return a profit after deducting drilling, completion, operating and other costs. In addition, wells that are profitable may not achieve a targeted rate of return. We rely on third-party operators for substantially all of the exploration, development, and production activities on our acreage. Nevertheless, prior to drilling a well, the exploration and development activities used do not allow operators to know conclusively whether natural gas, NGLs and oil are present in commercial quantities.

Cost factors can adversely affect the economics of any project, and the eventual cost of drilling, completing and operating a well is controlled by well operators and existing market conditions. Further, drilling operations may be curtailed, delayed or canceled as a result of numerous factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unexpected drilling conditions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• title problems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pressure or irregularities in formations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• equipment failures or accidents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fires, explosions, blowouts and surface cratering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lack of availability to market production via pipelines or other transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse weather conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• environmental, health or safety hazards or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lack of water disposal facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• environmental and other governmental regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cost and availability of drilling rigs, equipment, materials and services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expected sales price to be received for natural gas, NGLs and oil produced from the wells.

***Acreage must be drilled before lease expiration, generally within three to five years, in order to hold the acreage by production. Our third-party operators' failure to drill sufficient wells to hold acreage may result in loss of the lease and prospective drilling opportunities.***

Leases on natural gas and oil properties typically have a term of three to five years, after which they expire unless, prior to expiration, production is established within the spacing units covering the undeveloped acres. Any reduction in our third-party operators' drilling programs, either through a reduction in capital expenditures or the unavailability of drilling rigs, could result in the loss of acreage through lease expirations which may terminate our overriding royalty interests derived from such leases. Since our royalties are derived from mineral interests, if production or drilling ceases on the leased property, the lease is typically terminated, subject to certain exceptions, and all mineral rights revert back to us, and we will have to seek new lessees to explore and develop our acreage. There can be no assurance that we will be able to re-lease such properties following termination on favorable terms, or at all. Any such losses of our third-party operators or lessees could materially and adversely affect the growth of our business, financial condition and results of operations.

***We may experience delays in the receipt of royalty payments and be unable to replace our third-party operators that do not make required royalty payments, and we may not be able to terminate our leases with defaulting lessees if any of such operators on those leases declare bankruptcy.***

We may experience delays in receiving royalty payments from our third-party operators, including as a result of delayed division orders received from our third-party operators. Additionally, most of our operators are also dependent on the availability of external debt and equity financing sources to maintain their drilling programs. If those financing sources are not available to the operators on favorable terms or at all, or if an operator were to otherwise experience financial difficulty, the operator might not be able to make its royalty payments or continue its operations, which could have a material adverse impact on our business. A failure on the part of our third-party operators to make royalty payments typically gives us the right to terminate the lease, repossess the property and enforce payment obligations under the lease. If we repossessed any of our properties, we would seek a replacement operator. However, we might not be able to find a replacement operator and, if we did, we might not be able to enter into a new lease on favorable terms within a reasonable period of time. In addition, the outgoing operator could be subject to a proceeding under Title 11 of the United States Code (the "Bankruptcy Code"), in which case our right to enforce or terminate the lease for any defaults, including non-payment, may be substantially delayed or otherwise impaired. In general, in a proceeding under the Bankruptcy Code, the bankrupt operator would have a substantial period of time to decide whether to ultimately reject or assume the lease, which could prevent the execution of a new lease or the assignment of the existing lease to another operator. If the operator rejected the lease, our ability to collect amounts owed would be substantially delayed, and our ultimate recovery may be only a fraction of the amount owed or nothing. In addition, if we are able to enter into a new lease with a new operator, the replacement operator may not achieve the same levels of production or sell natural gas or oil at the same price as the operator we replaced.

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***We may incur losses as a result of title defects or other issues in the properties we own which could have a material adverse effect on our business, financial condition and results of operations.***

We depend in part on acquisitions to grow our reserves, production and cash generated from operations. In connection with these acquisitions, record title to mineral and royalty interests are conveyed to us or our subsidiaries by asset assignment, and we or our subsidiaries become the record owner of these interests. Upon such a change in ownership of mineral and royalty interests, and at regular intervals pursuant to routine audit procedures at each of our third-party operator's discretion, such third-party operator of the underlying property has the right to investigate and verify the title and ownership of mineral and royalty interests with respect to the properties it operates. Consistent with industry practice, we do not have current abstracts or title opinions on all of our mineral acreage and, therefore, cannot be certain that we have unencumbered title to all of these properties. The third-party operators of our properties could suspend our right to receive royalty payments due to title or other issues and we are not required to, and under certain circumstances we may elect not to, incur the expense of retaining lawyers to examine the title to our mineral and royalty interests. If any title or ownership issues are not resolved to the third-party operator's reasonable satisfaction in accordance with customary industry standards, the third-party operator may suspend payment of the related royalty. Our failure to cure any title defects that may exist may adversely impact our ability in the future to increase production and reserves. There is no assurance that we will not suffer a monetary loss from title defects or title failure. At any time that a third-party operator puts our assets in pay suspense, we would not receive the applicable mineral or royalty payment owed to us from sales of the underlying natural gas, NGLs and oil related to such mineral interest. Additionally, undeveloped acreage has greater risk of title defects than developed acreage. Leases in the Appalachian Basin, and particularly leases involving gas and oil properties, are particularly vulnerable to title deficiencies due to the nature of the history of land ownership in the area, resulting in extensive and complex chains of title. The existence of a material title deficiency can render an interest worthless and can materially adversely affect our business, financial condition and results of operations. If there are any title defects or defects in assignment of leasehold rights in properties in which we hold an interest, we may suffer a financial loss and it could have a material adverse effect on our business, financial condition and results of operations.

***A limited number of operators currently generate a significant portion of our revenue and accounts receivable.***

A large portion of our current mineral and royalty interests and lease holdings are serviced by a limited number of third-party operators and, as a result, we generate a significant portion of our revenue and accounts receivable from a limited number of third-party operators. In the year ended December 31, 2025, we received revenue from 365 third-party operators, with approximately 54% of our consolidated revenue coming from the top three third-party operators. Our revenue is generally derived from our diverse holdings of mineral and royalty interests and lease holdings and these mineral and royalty interests generate revenue from the sale of natural gas and crude oil, which is paid monthly to us by various third-party operators once any extracted natural gas and crude oil is delivered by such operators to purchasers.

While our revenue and accounts receivable relating to our mineral rights and lease holdings are derived from a significant number of different units that are subject to different leases and pooling orders from various state oil and gas commissions, the incapacity or loss of one of the operators that generate a significant portion of our revenue and accounts receivable could negatively impact our revenue and accounts receivable and could result in a reduction or delay in revenue generated from the related mineral rights and lease holdings while a replacement operator is selected and designated. Further, we do not always determine or control the rights, payments, discounts or other terms related to leases or the extraction and sale of assets from our mineral rights and lease holdings.

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***Various factors could adversely impact our third-party operators' ability to control costs, including their operating expenses and capital costs.***

Our third-party operators are dependent on various supplies and equipment, as well as qualified personnel, to carry out their extraction operations. An increase in natural gas and oil prices may cause the costs of such materials and services to rise. Furthermore, any shortage, unavailability, or increase in the cost of such supplies, personnel, equipment, and parts could have a material adverse effect on their ability to carry out operations. We cannot predict any future trends in the rate of inflation or interest rates and a significant increase in inflation or interest rates, to the extent we or our third-party operators are unable to recover higher costs through higher commodity prices and revenues or otherwise mitigate the impact of such costs on our or their business, could have a material adverse effect on our business, financial condition and results of operations.

***The substantial majority of our business is concentrated in the Appalachian and Haynesville Basins, making us vulnerable to risks associated with concentration of our assets in limited geographic areas.***

The substantial majority of our business is concentrated in the Appalachian and Haynesville Basins. As a result, we may be disproportionately exposed to various factors, including, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of regional supply and demand factors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delays or interruptions of production from wells in such areas caused by governmental regulation, including
changes to field wide rules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• gathering, processing or transportation capacity constraints;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• availability of equipment, facilities, personnel or services market limitations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse weather conditions and natural disasters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• plant closures for scheduled maintenance, resulting in reduced demand for natural gas; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interruption of the processing or transportation of natural gas, NGLs and/or oil.

This concentration in limited geographic areas also increases our exposure to changes in local laws and regulations, certain lease stipulations designed to protect wildlife, and unexpected events that may occur in the region, such as natural disasters, seismic events, industrial accidents or labor difficulties. Any one of these factors has the potential to cause producing wells to be shut-in, delay operations, decrease cash flows, increase operating and capital costs, and prevent development of leases before expirations. Any of the risks described above could have a material adverse effect on our business, financial condition and results of operations.

In addition, the effect of fluctuations on supply and demand may become more pronounced within specific geographic areas, which may cause these conditions to occur with greater frequency to our properties or magnify the effects of these conditions. Due to the concentrated nature of our properties, a number of our properties could experience any of the same conditions at the same time, resulting in a relatively greater impact on our results of operations than they might have on other companies that have a more diversified portfolio of properties. In addition, we have limited to no control over the marketability of our hydrocarbon sales and rely on third-party operators to market our hydrocarbons which limits our ability to optimize the pricing we receive, especially in instances of regional bottlenecks. As a result of our focus on the Appalachian and Haynesville Basins, we may be less competitive than other companies in bidding to acquire assets that include properties both within and outside of those areas.

***We may be subject to risks related to our wells where we are a non-operating working interest owner which could have a material adverse effect on our business, financial condition and results of operations.***

Like our mineral and royalty interests, we are dependent upon third-party operators to develop the properties in which we own non-operating working interests. In addition, financial risks are inherent in any operation where

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we have a non-operating working interest and the cost of drilling, equipping, completing and operating wells is shared by more than one party. We could be responsible for joint activity obligations of a working interest owner, such as nonpayment of expended costs, including costs of regulatory compliance. We may also be liable for damage to the environment caused by our third-party operators. Additionally, if another non-operator fails to pay its share of costs because of its insolvency or otherwise, the third-party operator could require us to pay the proportionate share of the defaulting party's share of costs. We are also responsible for our proportionate share of the costs associated with plugging, abandoning and reclaiming wells, pipelines and other facilities that we own (or own in part) for production of natural gas and oil reserves. Abandonment and reclamation of these facilities and the costs associated therewith is often referred to as "asset retirement." We accrue a liability for asset retirement costs associated with these wells, but have not established any cash reserve account for these potential costs in respect of any of our properties. It may be difficult for us to predict such asset retirement costs. If asset retirement is required before economic depletion of our properties or if our estimates of the costs of asset retirement exceed the value of the reserves remaining at any particular time to cover such asset retirement costs, we may have to draw on funds from other sources to satisfy such costs, which may be substantial. The use of other funds to satisfy such asset retirement costs could impair our ability to dedicate our capital to other areas of our business.

***Our future success depends on replacing reserves through acquisitions and the exploration and development activities of our operators.***

Producing natural gas and oil wells, and associated NGLs, are characterized by declining production rates that vary depending upon reservoir characteristics and other factors. Our natural gas, NGLs and oil reserves and our third-party operators' production thereof and our cash flows are highly dependent on the successful development and exploitation of our current reserves and our ability to successfully acquire additional reserves that are economically recoverable. We have little to no control over the exploration and development of our properties and the production decline rates of our properties may be significantly higher than currently estimated if the wells on our properties do not produce as expected. We may also not be able to find or acquire additional reserves to replace the current and future production of our properties at economically acceptable terms and we may not have sufficient resources to acquire such reserves.

There is intense competition for acquisition opportunities in our industry which may increase the cost of, or cause us to refrain from, completing acquisitions. The successful acquisition of producing properties requires an assessment of several factors, including recoverable reserves, future oil and natural gas prices and their applicable differentials, operating costs and potential environmental and other liabilities. The accuracy of these assessments is inherently uncertain and we may not be able to identify attractive acquisition opportunities. If we are not able to adequately replace or grow our natural gas, NGLs and oil reserves, our business, financial condition and results of operations would be adversely affected.

***Constraints in financing mineral and royalty asset acquisitions, and the risks associated with entering new geographic markets, may adversely affect our business, financial condition, and results of operations.***

Our ability to complete acquisitions may be dependent upon, among other things, our ability to obtain debt and equity financing and, in some cases, regulatory approvals. Furthermore, we cannot assure you that we will be able to access the capital markets after this offering or obtain other external capital on terms favorable to us or at all. Additionally, our ability to secure financing or access the capital markets could be adversely affected if financial institutions and institutional lenders elect not to provide funding for fossil fuel energy companies in connection with the adoption of sustainable lending initiatives or are required to adopt policies that have the effect of reducing the funding available to the fossil fuel sector. If we are unable to access capital, we may be unable to complete acquisitions, take advantage of business opportunities or respond to competitive pressures, any of which could have a material adverse effect on business, financial condition and results of operations.

In addition, if we determine to enter into new geographic markets, such entry into new geographic markets may result in the dilution of our resources dedicated to our current geographic focus and we may be subject to

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additional and unfamiliar legal and regulatory requirements. Compliance with added regulatory requirements may impose substantial additional obligations on us and our management, cause us to expend additional time and resources in compliance activities and increase our exposure to penalties or fines for non-compliance with such additional legal requirements. In addition, possible future acquisitions may be larger and for purchase prices significantly higher than those paid for earlier acquisitions.

No assurance can be given that we will be able to identify suitable mineral and royalty interest acquisition opportunities, negotiate acceptable terms, obtain financing for acquisitions on acceptable terms or successfully acquire identified targets.

***We have experienced significant business and portfolio growth in a short time, which may make it difficult for you to evaluate our business and prospects. Our previous growth rates and performance may not be sustainable or indicative of our future growth and financial results, and there can be no assurance that we will be able to achieve the same level of financial performance in the future. If we are unable to manage our business and growth effectively, our business could be materially and adversely affected.***

Our business has grown considerably since our founding in 2022. The significant growth in the size and diversity of our mineral and royalty interests and revenue we have experienced since our founding makes evaluation of our business and prospects difficult. There can be no assurance that our growth will continue at a similar pace, or that we will be able to manage our growth effectively. Furthermore, the growth of our business places significant demands on our key personnel, including managing increased numbers of interests, revenue streams, operator relationships, and title administration responsibilities. If we do not effectively manage the increased obligations brought by the growth of our business, we may not be able to execute on our business plan, respond to competitive pressures or take advantage of market opportunities, which could have a material adverse effect on our business, financial condition and results of operations.

Our historical results, including our historical cash-on-cash returns, may not be sustainable, and we cannot assure you that we will achieve similar cash-on-cash returns or continue to pay cash or stock dividends. The historical returns to our investors should not be considered as indicative of the future results of our operations or any returns expected on an investment in our Class A common stock. In addition, we expect our overall general and administrative expenses to continue to increase in the foreseeable future, as we may be required to hire additional personnel and incur additional expenses as a newly public company. These efforts and additional expenses may be more costly than we currently expect, and there is no assurance that we will be able to maintain sufficient operating revenue to offset our operating expenses. Any failure to increase revenue or to manage our costs would adversely impact our business and could prevent us from maintaining positive operating cash flow at all, or on a consistent basis, which would cause our business, financial condition, and results of operations to suffer.

In addition, we may encounter risks and difficulties experienced by companies whose performance is dependent upon newly acquired mineral and royalty interests, such as failing to integrate, or realizing the expected benefits of, such assets. As a result of the foregoing, we may be less successful in achieving consistent results and sustaining the growth of our business, as compared with companies that have longer histories of operations and more stable portfolios of mineral and royalty assets. In addition, we may be less equipped to identify and address risks and hazards in the conduct of our business than those companies that have longer operating histories.

***Any acquisition of additional mineral and royalty interests that we complete will be subject to substantial risks.***

Any acquisition of mineral and royalty interests involves substantial risks, all of which could have a material adverse effect on our business, financial condition and results of operations. Even if we identify attractive acquisition opportunities, we may not be able to complete such acquisitions or do so on commercially acceptable terms. We also typically bear certain transactional expenses (including professional fees, legal fees and other due diligence-related items) and the costs of investments that are not consummated (*i.e.* broken deal costs). Any

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acquisitions of additional mineral and royalty interests that we complete will be subject to substantial risks and we may acquire interests in properties that do not produce as projected. Such risks include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the validity of our assumptions about estimated reserves, future production, prices, revenues, operating expenses
and costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decrease in our liquidity by using a significant portion of our cash generated from operations or borrowing
capacity to finance acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a significant increase in our interest expense or financial leverage if we incur debt to finance acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the inability to effectively manage the integration of acquisitions could adversely impact our ability to achieve
the anticipated benefits of our acquisitions and reduce our focus on subsequent acquisitions and current operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the assumption of unknown liabilities, losses or costs for which we are not indemnified or for which any
indemnity we receive is inadequate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• mistaken assumptions about the overall cost of equity or debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to obtain satisfactory title to the assets we acquire;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an inability to hire, train or retain qualified personnel to manage and operate our growing business and assets;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the occurrence of other significant changes, such as impairment of natural gas and oil properties, goodwill or
other intangible assets, asset devaluation or restructuring charges.

In addition, the due diligence required with respect to a potential natural gas and oil royalty investment may not reveal or highlight all relevant facts that may be necessary or helpful in evaluating such an investment opportunity and its potential risks. In connection with these assessments, we perform a review of the subject properties that we believe to be generally consistent with industry practices. The accuracy of these assessments is inherently uncertain and, as a result, we may assume unknown liabilities, losses or costs for which we are not indemnified or for which any indemnity we receive is inadequate. We may base our decisions on mistaken assumptions about estimated reserves, future production, prices, revenues, the operating expenses and costs our third-party operators would incur to develop the minerals. Our review will not reveal all existing or potential problems including title defects or environmental issues, which, if material, can render an interest worthless, nor will it permit us to become sufficiently familiar with the properties to assess fully their deficiencies and capabilities. Inspections may not always be performed on every well, and environmental problems, such as groundwater contamination, are not necessarily observable even when an inspection is undertaken. Environmental or other regulatory issues may arise with respect to acquired entities or operations years after the acquisitions. Even when problems are identified, the seller may be unwilling or unable to provide effective contractual protection against all or part of such problems. Significant acquisitions and other strategic transactions may involve other risks that may cause our business to be adversely impacted, including diversion of our management's attention to evaluating and negotiating such transactions. As a result of the foregoing, any acquisition of mineral and royalty interests involves both foreseen and unforeseen risks, all of which could have a material adverse effect on our business, financial condition and results of operations.

***We expect to distribute a substantial majority of the cash we generate from operations, which could limit our ability to grow and make acquisitions.***

We expect to distribute a substantial majority of the cash we generate from operations each quarter. As a result, we will have limited cash generated from operations to reinvest in our business or to fund acquisitions, and we will rely primarily upon external financing sources, including commercial bank borrowings and the issuance of debt and equity securities, to fund our acquisitions and growth capital expenditures. If we are unable to finance growth externally, our distribution policy will significantly impair our ability to grow.

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If we issue additional shares of Class A common stock in connection with any acquisitions or growth capital expenditures, the payment of distributions on those additional shares of Class A common stock may increase the risk that we will be unable to maintain or increase our per unit distribution level. The incurrence of additional commercial borrowings or other debt to finance our growth would result in increased interest expense and required principal repayments, which, in turn, may reduce the cash that we have available to distribute to our shareholders. See "Dividend Policy" for more information.

While we expect to distribute a substantial majority of the cash we generate from operations each quarter, there can be no assurance that we will be able to pay dividends at the levels we currently anticipate, or at all. Our ability to pay dividends is subject to significant restrictions and limitations, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Covenants under our Revolving Credit Facility*. Under the Revolving Credit Facility, we may not declare or
make any restricted payment (including dividends, distributions in respect of, or redemptions of, our equity interests) except as specifically permitted. Permitted restricted payments include, among others, cash dividends and distributions to
holders of our equity interests so long as, both before and immediately after giving pro forma effect to any such restricted payment, (i) no default, event of default or borrowing base deficiency exists or would result therefrom,
(ii) Unused Availability (as defined in the Revolving Credit Facility) is at least 10% of the Loan Limit (as defined in the Revolving Credit Facility) and (iii) the Consolidated Net Leverage Ratio (as defined in the Revolving Credit
Facility), recomputed on a Pro Forma Basis (as defined in the Revolving Credit Facility), is less than or equal to 3.00 to 1.00; provided that, prior to the discharge of the obligations under the Note Purchase Agreement, such restricted payments are
also permitted under the Note Purchase Agreement, as in effect immediately following the amendment to the Note Purchase Agreement. See "Description of Material Indebtedness." The Revolving Credit Facility also permits Permitted Tax
Distributions (as defined in the Revolving Credit Facility), distributions to our parent to fund Public Company Compliance costs and ordinary-course corporate overhead in an aggregate amount not to exceed $3,000,000 per fiscal year, distributions
and repurchases pursuant to management or employee equity plans (capped at $1,000,000 per fiscal year), stock-settled dividends, cash payments in lieu of fractional shares and certain other limited exceptions. In addition, the Revolving Credit
Facility requires us to maintain, as of the last day of each fiscal quarter (commencing with the first full fiscal quarter ending after the effective date thereof), (i) a Consolidated Net Leverage Ratio for the rolling period then ending of not
greater than 3.50 to 1.00 and (ii) a Current Ratio (as defined in the Revolving Credit Facility) of not less than 1.0 to 1.0, and to satisfy minimum hedging requirements that vary based on the Consolidated Net Leverage Ratio, each of which may limit
our flexibility to make distributions or otherwise reduce cash that would otherwise be available for dividends. The Revolving Credit Facility also contains a "most favored term" provision pursuant to which any representation, warranty,
covenant (including financial covenants), event of default or other term (excluding applicable margin for determining interest rates) in the Note Purchase Agreement that is more restrictive than the corresponding term of the Revolving Credit
Facility will be automatically incorporated into the Revolving Credit Facility, with the result that the Revolving Credit Facility will at all times contain restrictions on restricted payments, negative covenants and other matters that are at least
as restrictive as those in the Note Purchase Agreement governing our Senior Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Covenants under our Senior Notes*. We are currently in negotiations with the lenders under our Note
Purchase Agreement and expect to enter into an amendment providing, among other things, more favorable restricted payment covenants in connection with the completion of this offering. However, there can be no guarantee that we will enter into such
amendment on terms satisfactory to us or at all. See "—Risks Related to Our Indebtedness—The Revolving Credit Facility and the Note Purchase Agreement restrict our ability to pay cash dividends and make other distributions to our
stockholders." Under the Note Purchase Agreement (prior to effect to the amendment to the Note Purchase Agreement (as described under "Description of Material Indebtedness")) governing our Senior Notes, we may not make restricted
payments (such as dividends or stock redemptions) except as specifically permitted thereby. See "Description of Material Indebtedness."

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Delaware law limitations*. Under the Delaware General Corporation Law, we may only pay dividends out of
surplus (the excess of net assets over capital) or, if there is no surplus, out of net profits for the current and/or immediately preceding fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Business and liquidity needs*. Our board of directors may determine to reduce or eliminate dividends to
fund acquisitions, repay debt, satisfy working capital needs, or address other business requirements.

Additionally, our ability to pay dividends may be restricted by the terms of any future credit agreement or any future debt or preferred equity securities of us. See "Risk Factors—We intend to pay regular dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and may be limited…" and "Description of Material Indebtedness" for additional information regarding restrictions on our ability to pay dividends.

***If we fail to retain our key personnel or attract additional qualified personnel, we may not be able to achieve our business strategy which could have a material adverse effect on our business, financial condition and results of operations.***

Our future success and ability to implement our business strategy depends, in part, on our ability to attract, train, compensate, motivate and retain key personnel and service providers, and on the continued contributions of members of our management team and key employees or service providers, each of whom would be difficult to replace. We are a relatively new company and rely heavily on our executives and management team for their knowledge of the natural gas and crude oil industry and experience identifying, evaluating and completing acquisitions. The departure of executives or other members of our management or key personnel or key service providers could disrupt our business, as competition for highly skilled individuals with technical expertise is extremely intense within and outside of our markets, and we face challenges identifying, hiring, training and retaining qualified personnel and service providers in many areas of our business. Integrating new key personnel into our team and identifying and coordinating with key service providers could prove disruptive to our operations, require substantial resources and management attention and ultimately prove unsuccessful. The ability to remain competitive by offering competitive compensation packages and programs for growth and development of personnel, with a view to retaining existing talent and attracting new talent, and attracting key service providers, has become increasingly important to our business and its operations in the current climate. We cannot be certain that our labor costs will not increase as a result of a shortage in the supply of skilled, unskilled and technical personnel or any related governmental regulations, or due to the need to recruit and retain key personnel and service providers. Labor shortages and/or an inability to retain our executives, other senior management, and other key personnel, service providers, and talent or to attract and train additional qualified personnel and service providers could limit or delay our ability to implement our business strategy, all of which could have a material adverse effect on our business, financial condition and results of operations.

***Our management team and board of directors may also perform similar services for other businesses and thus are not solely focused on our business.***

Our officers and directors are not required to, and may not, commit their full time to our affairs, which may result in challenges allocating their time between our operations and the other businesses at which they may serve in similar or other roles. Certain of our officers are engaged in other business endeavors for which he or she may be obligated to contribute significant time and attention. Additionally, certain of our directors may also serve as officers or board members for other entities. For example, prior to this offering, our executive officers served in similar capacities with the manager. If our officers' and directors' other business affairs require them to devote substantial amounts of time to such affairs in excess of their current commitment levels, it could limit their ability to devote time to our affairs which may have a negative impact on our business. The other business activities of our officers and directors may create potential conflicts of interest, including situations where they may be presented with investment or business opportunities that could benefit both the Company and another entity with which they are affiliated. In such cases, our officers or directors may be required to determine how to allocate such opportunities, and there can be no assurance that any such determination will be made in our favor. Additionally, our officers and directors may have fiduciary duties to other entities that could conflict with their

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duties to us. For a complete discussion of our officers' and directors' other business affairs, please see the section of this prospectus entitled "Management."

***Our estimated proved reserves are based on many assumptions that may prove to be inaccurate. Any inaccuracies in these reserve estimates or underlying assumptions may materially affect the quantities and present value of our reserves, business, financial condition and results of operations.***

It is not possible to measure underground accumulations of natural gas, NGLs and oil with precision. Natural gas, NGL and oil reserve engineering requires subjective estimates of underground accumulations of natural gas, NGLs and oil using assumptions concerning future prices of these commodities, future production levels and operating and development costs. In estimating our reserves, we and our independent petroleum engineer must make various assumptions with respect to many matters that may prove to be incorrect, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future natural gas, NGL and oil prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unexpected complications from offset well development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• production rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reservoir pressures, decline rates, drainage areas and reservoir limits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interpretation of subsurface conditions including geological and geophysical data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential for water encroachment or mechanical failures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• levels and timing of capital expenditures, lease operating expenses, production taxes and income taxes, and
availability of funds for such expenditures; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• effects of government regulation.

As a result, estimated quantities of proved reserves, projections of future production rates and the timing of development expenditures may turn out to be incorrect. If any of these assumptions prove to be incorrect, our estimates of reserves, the classifications of reserves based on risk of recovery and our estimates of the future net cash flows from our reserves could change significantly.

Our standardized measure of natural gas and oil reserves is calculated using the 12-month average price calculated as the unweighted arithmetic average of the first-day-of-the-month individual product prices for each month within the 12-month period prior to fiscal year end. These prices and the operating costs in effect as of the date of estimation are held flat over the life of the properties. Production and income tax expenses are deducted from this calculation of future estimated development, with the result discounted at 10% per annum to reflect the timing of future net revenue in accordance with the rules and regulations of the SEC. Since forward-looking prices and costs are not used to estimate discounted future net cash flows from our estimated reserves, the standardized measure of our estimated reserves is not necessarily the same as the current market value of our estimated proved natural gas, NGL and oil reserves. The timing of the development and production on our properties will affect the timing of actual future net cash flows from proved reserves, and thus their actual present value. Over time, we may make material changes to reserve estimates to take into account changes in our assumptions and the results of actual development and production. In addition, the 10% discount factor used when calculating discounted future net cash flows, in compliance with the FASB statement on natural gas and oil producing activities disclosures, may not be the most appropriate discount factor based on interest rates in effect from time to time and risks associated with the Company, or the natural gas and oil industry in general.

The reserve estimates made for fields that do not have a lengthy production history are less reliable than estimates for fields with lengthy records. A lack of production history may contribute to inaccuracy in our estimates of proved reserves, future production rates and the timing of development expenditures. Further, our lack of knowledge of all individual well information known to the well operators such as incomplete well stimulation efforts, restricted production rates for various reasons and up-to-date well production data, etc. may cause differences in our reserve estimates.

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In addition, the reserve data included in our reserve reports assume that substantial capital expenditures are required to develop the reserves. We cannot be certain that the estimated costs of the development of these reserves are accurate, that development will occur as scheduled or that the results of the development will be as estimated. Delays in the development of our reserves, increases in costs to drill and develop our reserves, or decreases in commodity prices will reduce the future net revenues of our estimated proved undeveloped reserves and may result in some projects becoming uneconomical. Because PUD reserves, under SEC reporting rules, may only be recorded if the wells they relate to are scheduled to be drilled within five years of the date of recording, the removal of PUD reserves that are not developed within this five-year period may be required.

***Our identified drilling locations are susceptible to uncertainties that could materially alter the occurrence or timing of their drilling. Further, our estimates of these locations are based on assumptions derived from the publicly available disclosure of our third-party operators and industry-wide results of operations, which may not be accurate or ultimately come to fruition. As a result, there is no guarantee that our estimates will be consistent with potential drilling locations that our third-party operators have identified or that the actual drilling activities of our third-party operators will be materially consistent with those presently identified.***

Our management team has identified and scheduled drilling locations in our operating areas over a multi-year period. The potential drilling locations we have identified are based on geologic and other data available to us and our interpretation of such data through our specialized software. Our third-party operators may have reached different conclusions about the potential drilling locations on our properties, and our third-party operators control the ultimate decision as to where and when a well is drilled. As result, such estimates may not be accurate and the ultimate number of wells drilled on our properties may be lower than expected. Whether these locations are ultimately drilled and developed depends on a number of factors, including oil and natural gas prices, assessment of risks, costs, drilling results, reservoir heterogeneities, the availability of equipment and capital, approval by regulators, lease terms, seasonal conditions and the actions of other operators. Because of these uncertainties, we do not know if the drilling locations we have identified will be drilled within our expected timeframe, or at all, or if our third-party operators will be able to economically produce hydrocarbons from these or any other potential drilling locations. The actual drilling activities on our acreage may be materially different from our current expectations, which could adversely affect our business, financial condition and results of operations.

***We rely on our third-party operators, other third parties and government databases for information regarding our assets and, to the extent that information is incorrect, incomplete or lost, our financial and operational information and projections may be incorrect.***

As an owner of mineral and royalty interests, we rely on our third-party operators to notify us of information regarding production on our properties in a timely and complete manner, as well as the accuracy of information obtained from third parties and government databases. We use this information to evaluate our operations and cash flows, as well as to predict our expected production and possible future locations. To the extent we do not timely receive this information or the information is incomplete or incorrect, our results may be incorrect and our ability to project potential growth may be materially adversely affected. Furthermore, to the extent that we have to update any publicly disclosed results or projections made in reliance on this incorrect or incomplete information, investors could lose confidence in our reported financial information, which would likely have a negative effect on the trading price of our Class A common stock. If any of such third-party or government databases or systems were to fail for any reason, including as a result of a cyber-attack, possible consequences include loss of communication links and inability to automatically process commercial transactions or engage in similar automated or computerized business activities. Any of the foregoing consequences could materially adversely affect our business, financial condition and results of operations.

***We may be subject to information technology system failures, network disruptions, cyber-attacks or other breaches in data security.***

The natural gas and oil industry has generally become increasingly dependent upon digital technologies to conduct day-to-day operations. As such reliance on technology has increased, so have the risks posed to both us

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and our third-party operators. Our third-party operators are likely dependent on digital technologies to conduct certain exploration, development, production and processing activities, including interpreting seismic data, managing drilling rigs, production activities and gathering systems, conducting reservoir modeling and estimating reserves. The U.S. government has issued public warnings that indicate that energy assets might be specific targets of cyber security threats. If our third-party operators become the target of cyber-attacks with security breaches of information, their business operations may be substantially disrupted, which could have an adverse effect on our business, financial condition and results of operations. Cyber incidents could also cause operational interruption, compromise our confidential information and damage our reputation.

We and our third-party operators also face increased risk with the growing sophistication of generative AI capabilities, which may improve or expand the existing capabilities of cybercriminals described above in a manner we cannot predict at this time. Further, as cyber-attacks continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate any vulnerability to cyber-attacks.

***We may be involved in legal proceedings that could result in substantial liabilities.***

We may from time to time be involved in various legal and other proceedings, including, without limitation, title, royalty or contractual disputes, regulatory compliance matters and personal injury or property damage matters in the ordinary course of our business. Such legal proceedings are inherently uncertain and their results cannot be predicted. Regardless of the outcome, such proceedings could have an adverse impact on us because of legal costs, diversion of management, and other personnel and other factors. In addition, it is possible that a resolution of one or more such proceedings could result in liability, penalties or sanctions, as well as judgments, consent decrees or orders requiring a change in our business practices, which could materially and adversely affect our business, operating results and financial condition. Accruals for such liability, penalties or sanctions may be insufficient. Judgments and estimates to determine accruals or range of losses related to legal and other proceedings could change from one period to the next, and such changes could be material.

***A terrorist attack or armed conflict could harm our business.***

Terrorist activities, anti-terrorist activities and other armed conflicts involving the United States or other countries (including the war in Ukraine, ongoing conflict in Iran and the Israel-Hamas conflict) may adversely affect the United States and global economies and could prevent us from meeting our financial and other obligations. If any of these events occur, the resulting political instability and societal disruption could reduce overall demand for natural gas, NGLs and oil, potentially putting downward pressure on demand for our third-party operators' services and causing a reduction in our revenues. Natural gas, NGL and oil-related facilities, including those of our third-party operators, could be direct targets of terrorist attacks, and, if infrastructure integral to our third-party operators or the purchasers of their production is destroyed or damaged, they may experience a significant disruption in their operations which, in turn, could materially adversely affect our business, financial condition and results of operations. Costs for insurance and other security may increase as a result of these threats, and some insurance coverage may become more difficult to obtain, if available at all.

***Declining general economic, business or industry conditions may have a material adverse effect on our results of operations, cash flows and financial position.***

Concerns over global economic conditions, energy costs, supply chain disruptions, increased demand, labor shortages, the imposition of new tariffs, geopolitical issues, high levels of inflation, the availability and cost of credit and the U.S. financial market and other factors have contributed to increased global economic uncertainty. The United States experienced a significant increase in inflation beginning in the second half of 2021, and, although inflation has moderated throughout 2024 and 2025, higher interest rates have generally persisted. To the extent elevated inflation and interest rates remain or increase, our third-party operators may experience further cost increases for their labor and operations, including oil field services and equipment. Our third-party operators

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may also experience supply chain constraints, due to international trade policies or otherwise, and inflationary pressure on their cost structures, which could impact the revenues we receive from them. Our third-party operators also may face shortages of equipment, raw materials, supplies, commodities, labor and services, which may prevent them from executing their development plans on or around our land. These supply chain constraints, trade policies and inflationary pressures may continue to adversely impact our third-party operators' operating costs and, if they are unable to manage their supply chain, it may impact their ability to procure materials and equipment in a timely and cost-effective manner, if at all, which could materially and adversely affect our business, financial condition and results of operations.

***We recently restated our audited consolidated financial statements as of and for the fiscal year ended December 31, 2025 to correct material accounting errors and have identified material weaknesses in our internal control over financial reporting. As a result of the material weaknesses in internal control over financial reporting, our disclosure controls and procedures were not effective at a reasonable assurance level as of December 31, 2025. A failure to maintain effective internal control over financial reporting or disclosure controls and procedures could impact our ability to accurately and timely report our financial results and other material disclosures or otherwise cause us to fail to meet our reporting obligations, which could have a material adverse effect on our operations and investor confidence in our business.***

On April 22, 2026, we concluded that our audited consolidated financial statements as of and for the fiscal year ended December 31, 2025 could no longer be relied upon as a result of material accounting errors identified by management subsequent to the issuance of our audited consolidated financial statements for the fiscal year ended December 31, 2025. Accordingly, the audited consolidated financial statements for the fiscal year ended December 31, 2025 included elsewhere in this prospectus were restated by the Company in order to reflect the correction of the identified errors related to (i) the recording of management fees and (ii) the misclassification of pre-closing date and post-effective date monies received related to acquisitions. For additional information, see "Note 3, Restatement of Financial Statements" to our audited consolidated financial statements for the fiscal year ended December 31, 2025 included elsewhere in this prospectus. As a result of the Restatement, we are subject to additional risks and uncertainties, including unanticipated legal and accounting costs, litigation, governmental proceedings or investigations and loss of investor confidence or reputational harm to our business.

Although management did not, and was not required to, conduct a formal assessment of internal control over financial reporting as of December 31, 2025, as a result of the Misstatement and the Restatement, the Company identified certain material weaknesses in its internal control over financial reporting. As a result of the material weaknesses in internal control over financial reporting, our disclosure controls and procedures were not effective at a reasonable assurance level as of December 31, 2025. Management will be implementing changes to strengthen our internal controls and remediate the material weaknesses. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Internal Controls and Procedures—Material Weaknesses in Internal Control over Financial Reporting" for additional information related to the material weaknesses in internal control over financial reporting and our related remediation activities.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of a company's consolidated interim or annual financial statements will not be prevented or detected on a timely basis. As such, if we do not remediate these material weaknesses in a timely manner, or if additional material weaknesses in our internal control over financial reporting are discovered, they may adversely affect our ability to record, process, summarize and report financial information timely and accurately and, as a result, our consolidated interim or annual financial statements may contain material misstatements or omissions. Additionally, because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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**Risks Related to Our Organizational Structure** 

***We are a holding company. Our sole material asset after completion of this offering will be our equity interests in WhiteHawk OpCo and OpCo GP, and we are accordingly dependent upon distributions from WhiteHawk OpCo and our operating subsidiaries to pay taxes and cover our corporate and other overhead expenses.***

We are a holding company and will have no material assets other than our equity interests in WhiteHawk OpCo and OpCo GP. We have no independent means of generating revenue or cash flow, and our ability to pay our taxes and operating expenses or declare and pay dividends in the future, if any, will be dependent upon the financial results and cash flows of WhiteHawk OpCo and distributions we receive from WhiteHawk OpCo and our operating subsidiaries. WhiteHawk OpCo will continue to be treated as a partnership for U.S. federal income tax purposes and, as such, generally will not be subject to any entity-level U.S. federal income tax. Instead, any taxable income of WhiteHawk OpCo will be allocated to holders of OpCo Interests, including us. Accordingly, we will incur income taxes on our allocable share of any net taxable income of WhiteHawk OpCo. Under the terms of the OpCo Agreement, WhiteHawk OpCo will be obligated, subject to various limitations and restrictions, including with respect to our debt agreements, to make tax distributions to holders of OpCo Interests, including us. To the extent WhiteHawk OpCo has available cash, we intend to cause WhiteHawk OpCo (a) to generally make pro rata distributions to its unitholders, including us, in an amount at least sufficient to allow unitholders to pay taxes imposed on their allocable share of taxable income of WhiteHawk OpCo to the extent unitholders, including us, do not otherwise receive non-tax distributions from WhiteHawk OpCo in amounts at least sufficient to allow unitholders, including us, to pay such taxes and (b) to reimburse us for our corporate and other overhead expenses through non-pro rata payments that are not treated as distributions under the OpCo Agreement. We are limited, however, in our ability to cause WhiteHawk OpCo and our operating subsidiaries to make these and other distributions to us due to the restrictions under the agreements governing our indebtedness. To the extent that we need funds and WhiteHawk OpCo or our operating subsidiaries are restricted from making such distributions under applicable law or regulation or under the terms of their financing arrangements, or are otherwise unable to provide such funds, it could materially adversely affect our liquidity and financial condition.

As mentioned above, under the OpCo Agreement, we intend to cause WhiteHawk OpCo, from time to time, to make distributions in cash to its unitholders (including us) in amounts at least sufficient to cover the taxes imposed on their allocable share of taxable income of WhiteHawk OpCo to the extent unitholders, including us, do not otherwise receive non-tax distributions from WhiteHawk OpCo in amounts at least sufficient to allow unitholders, including us, to pay such taxes. As a result of (i) potential differences in the amount of net taxable income allocable to us and to the Continuing Equity Owners, (ii) the lower tax rate under current law applicable to corporations as compared to individuals, and (iii) that tax distributions are required to be paid by WhiteHawk OpCo to its common unit holders pro rata in accordance with each common unitholder's economic interests in WhiteHawk OpCo, these tax distributions may be in amounts that exceed our tax liabilities. Our board of directors will determine the appropriate uses for any excess cash so accumulated, which may include, among other uses, the payment of distributions to our stockholders and the payment of other expenses. However, we will have no obligation to distribute such cash (or other available cash) to our stockholders. In addition, no adjustments to the exchange ratio for common units and corresponding shares of Class A common stock will be made as a result of any cash distribution by us or any retention of cash by us. To the extent we do not distribute such excess cash as distributions on our Class A common stock we may take other actions with respect to such excess cash, for example, holding such excess cash, contributing such cash to WhiteHawk OpCo in exchange for additional common units (or contributing such cash to WhiteHawk OpCo and making corresponding adjustments to the Continuing Equity Owners common units), lending it (or a portion thereof) to WhiteHawk OpCo, or repurchasing outstanding shares of our Class A common stock, some of which may result in shares of our Class A common stock increasing in value relative to the value of common units. The holders of common units may benefit from any value attributable to such cash balances if they acquire shares of Class A common stock in exchange for their common units, notwithstanding that such holders may have participated previously as holders of common units in distributions that resulted in such excess cash balances to us.

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***Changes in effective tax rates or adverse outcomes resulting from examination of our income or other tax returns could adversely affect our results of operations and financial condition.***

We are subject to taxation by U.S. federal, state, and local tax authorities. Our future effective tax rates could be subject to volatility or adversely affected by a number of factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• allocation of expenses to and among different jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes to our assessment about our ability to realize, or in the valuation of, our deferred tax assets that are
based on estimates of our future results, the prudence and feasibility of possible tax planning strategies, and the economic and political environments in which we do business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expected timing and amount of the release of any tax valuation allowances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax effects of stock-based compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs related to intercompany restructurings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in tax laws, regulations, or interpretations thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the outcome of current and future tax audits, examinations, or administrative appeals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lower than anticipated future earnings in jurisdictions where we have lower statutory tax rates and higher than
anticipated future earnings in jurisdictions where we have higher statutory tax rates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limitations or adverse findings regarding our ability to do business in some jurisdictions.

Any changes in U.S. taxation may increase our effective tax rate and harm our business, financial condition, and results of operations. In particular, new income or other tax laws or regulations could be enacted at any time, which could adversely affect our business operations and financial performance. Further, existing tax laws and regulations could be interpreted, modified, or applied adversely to us.

***If we were deemed to be an investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), including as a result of our ownership of WhiteHawk OpCo, applicable restrictions could make it impractical for us to continue our business as contemplated and could have a material adverse effect on our business.***

Under Sections 3(a)(1)(A) and (C) of the 1940 Act, a company generally will be deemed to be an "investment company" for purposes of the 1940 Act if (i) it is, or holds itself out as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities, or (ii) it engages, or proposes to engage, in the business of investing, reinvesting, owning, holding, or trading in securities and it owns or proposes to acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis. We do not believe that we are an "investment company," as such term is defined in either of those sections of the 1940 Act.

We and WhiteHawk OpCo intend to conduct our operations so that we will not be deemed an investment company. As the sole managing member of WhiteHawk OpCo, we will control and operate WhiteHawk OpCo. On that basis, we believe that our interest in WhiteHawk OpCo is not an "investment security" as that term is used in the 1940 Act. However, if we were to cease participation in the management of WhiteHawk OpCo, or if WhiteHawk OpCo itself becomes an investment company, our interest in WhiteHawk OpCo could be deemed an "investment security" for purposes of the 1940 Act.

We and WhiteHawk OpCo intend to conduct our operations so that we will not be deemed an investment company. If it were established that we were an unregistered investment company, there would be a risk that we would be subject to monetary penalties and injunctive relief in an action brought by the U.S. Securities and Exchange Commission (the "SEC"), that we would be unable to enforce contracts with third parties and that third parties could seek to obtain rescission of transactions undertaken during the period it was established that we were an unregistered investment company. If we were required to register as an investment company, restrictions

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imposed by the 1940 Act, including limitations on our capital structure and our ability to transact with affiliates, could make it impractical for us to continue our business as contemplated and could have a material adverse effect on our business.

**Risks Related to Our Industry** 

***Our industry is highly competitive, and competitive pressures could negatively affect our business.***

Competition in the natural gas, NGL and oil industry is intense, which may adversely affect our and our third-party operators' ability to succeed. Many of these companies explore for and produce natural gas, NGLs and crude oil, carry on midstream and refining operations, and market petroleum and other products on a regional, national or worldwide basis. Competition for acquisitions of mineral and royalty interests may increase the cost of, or cause us to refrain from, completing acquisitions. In addition, some of our competitors have significant financial, technical and marketing resources and may also have lower overhead cost structures, and therefore may be able operate at lower costs than us. Our third-party operators' larger competitors may also be able to absorb the burden of present and future federal, state, local and other laws and regulations more easily than our third-party operators can, which would adversely affect our third-party operators' competitive position. Our third-party operators may have fewer financial and human resources than many companies in our third-party operators' industry and may be at a disadvantage in bidding for exploratory prospects and producing oil and natural gas properties. Furthermore, the natural gas and oil industry has experienced recent consolidation amongst some operators, which has resulted in certain instances of combined companies with larger resources. Such combined companies may compete against our third-party operators or, in the case of consolidation amongst our third-party operators, may choose to focus their operations on areas outside of our properties.

Furthermore, a substantial portion of our revenues is directly or indirectly dependent upon our ability to acquire additional properties which is dependent upon our ability to evaluate and select suitable properties and to consummate transactions in a highly competitive environment. As a result of the factors described above, the competitive environment we operate in could have a material adverse effect on our business, financial condition and results of operations.

***Failure of exported liquid natural gas to be a competitive source of energy for the United States or international markets could adversely affect our third-party operators and could have a material adverse effect on our business, financial condition and results of operations.***

Operations of LNG projects are dependent upon the ability of our third-party operators to deliver LNG supplies from the United States, which is primarily dependent upon LNG being a competitive source of energy internationally. The success of our business plan is dependent, in part, on the extent to which LNG can, for significant periods and in significant volumes, be supplied from North America and delivered to international markets at a lower cost than the cost of alternative energy sources. Through the use of improved exploration technologies, additional sources of natural gas may be discovered outside the United States, which could increase the available supply of natural gas outside the United States and could result in natural gas in those markets being available at a lower cost than LNG exported to those markets. Additionally, insufficient receiving capacity, LNG tanker capacity or political instability in foreign countries that import natural gas may also impede the willingness or ability of LNG purchasers and merchants in such countries to export LNG from the United States. In the United States, due mainly to a historically abundant supply of natural gas and discoveries of substantial quantities of unconventional, or shale, natural gas, imported LNG has not developed into a significant energy source making LNG a competitive source of energy within the United States. However, in addition to natural gas, LNG also competes with other sources of energy, including coal, oil, nuclear, hydroelectric, wind and solar energy. Some of these sources of energy may be available at a lower cost than LNG in certain markets including in the United States.

As a result of these and other factors, LNG may not be a competitive source of energy in the United States or internationally. The failure of LNG to be a competitive supply alternative to local natural gas, oil and other alternative energy sources in markets accessible to our third-party operators could adversely affect the ability of

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our third-party operators to deliver LNG from the United States or to the United States on a commercial basis. Any significant impediment to the ability to deliver LNG to or from the United States generally could have a material adverse effect on our third-party operators, or the purchasers of their production, and on our business, financial condition and results of operations.

***Our growth strategy is partly dependent upon the continued expansion of electricity demand driven by AI data center development. Expectations regarding increased demand for natural gas related to data centers and AI may not materialize, and our business prospects could be harmed if demand for natural gas does not develop as expected or takes longer to develop than we anticipate.***

Our growth and success are partly dependent on continued expansion of electricity demand driven by the rapid increase in AI data center development, which has contributed to record power consumption and is expected to continue to drive increased demand for electricity. However, there is no assurance that these forecasts of load growth will be accurate or that the anticipated load growth will occur as projected. Factors such as evolving technology, improvements in energy efficiency, changes in economic conditions, shifts in government policy, regulation or consumer sentiment related to AI usage and development, or project delays or cancellations by data center developers could reduce or slow demand for electricity relative to current expectations. Further, there is no assurance that natural gas will be used to meet such demand. If the anticipated load growth and related increase in demand for natural gas fails to materialize in areas in which we maintain mineral and royalty interests, it could have a material adverse effect on our business, financial condition and results of operations.

***The unavailability, high cost or shortages of rigs, equipment, raw materials, supplies or personnel may restrict or result in increased costs for our third-party operators related to developing and operating our properties.***

The natural gas, NGL and crude oil industry is cyclical, which can result in shortages of drilling rigs, equipment, raw materials (particularly water and sand and other proppants), supplies and personnel. When shortages occur, the costs and delivery times of rigs, equipment and supplies increase and demand for, and wage rates of, qualified drilling rig crews also rise. We cannot predict whether these conditions will exist in the future and, if so, what their timing and duration will be. In accordance with customary industry practice, our third-party operators rely on independent third-party service providers to provide many of the services and equipment necessary to drill new wells. If our third-party operators are unable to secure a sufficient number of drilling rigs at reasonable costs, our financial condition and results of operations could suffer. In addition, they may not have long-term contracts securing the use of their rigs. Shortages of drilling rigs, equipment, raw materials, supplies, personnel, trucking services, tubulars, hydraulic fracturing and completion services and production equipment could delay or restrict our third-party operators' exploration and development operations, which in turn could have a material adverse effect on our business, financial condition and results of operations.

***The marketability of natural gas, NGLs and crude oil is dependent upon transportation, pipelines and refining facilities, which neither we nor many of our third-party operators control. Any limitation in the availability of those facilities or our third-party operators' inability to obtain access to such facilities on commercially reasonable terms or otherwise could interfere with our third-party operators' ability to store, process, transmit and market our third-party operators' production as well as their plans to develop and sell our reserves, and could harm our business.***

The marketability of our third-party operators' production depends in part on the availability, proximity and capacity of pipelines, tanker trucks and other transportation methods, and processing and refining facilities developed and owned by third parties. Our third-party operators rely, and expect to rely in the future, on these third-party facilities in order to store, process, transmit and sell their production. Neither we nor the majority of our third-party operators control these third-party transportation facilities and our third-party operators' access to them may be limited or denied. The inability or unwillingness of third parties to provide sufficient facilities and services to our third-party operators on commercially reasonable terms or otherwise could have a material and adverse effect on our third-party operators' plans to develop and sell our reserves. Additionally, insufficient production from the wells

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on our acreage or a significant disruption in the availability of third-party transportation facilities or other production facilities could adversely impact our third-party operators' ability to deliver, to market or produce natural gas, NGLs and crude oil and thereby cause a significant interruption in our third-party operators' operations. If these facilities are unavailable to our third-party operators on commercially reasonable terms or otherwise, our third-party operators could be forced to shut in some production or delay or discontinue drilling plans and commercial production on our properties following a discovery of hydrocarbons. If these facilities are unable, for any sustained period, to implement acceptable delivery or transportation arrangements or encounter production-related difficulties, they may also be required to shut in or curtail production. In addition, the amount of natural gas, NGLs and oil that can be produced and sold is subject to curtailment in certain other circumstances outside of our or our third-party operators' control, such as pipeline interruptions due to scheduled and unscheduled maintenance, excessive pressure, physical damage or lack of available capacity on these systems, downstream processing facilities' failure to accept unprocessed natural gas, tanker truck availability and extreme weather conditions. Also, production from our wells may be insufficient to support the construction of pipeline facilities, and the shipment of our third-party operators' natural gas, NGLs and crude oil on third-party pipelines may be curtailed or delayed if it does not meet the quality specifications of the pipeline owners. The curtailments arising from these and similar circumstances may last for an extended period of time. In many cases, we and our third-party operators are provided only with limited, if any, notice as to when these circumstances will arise and their duration. Any significant curtailment in gathering system or transportation, processing or refining-facility capacity, or an inability to obtain favorable terms for delivery of the natural gas, NGLs and crude oil produced from our acreage, could reduce our third-party operators' ability to market the production from our properties and have a material adverse effect on our financial condition, results of operations and cash flows. Our third-party operators' access to transportation options and the prices our third-party operators receive can also be affected by U.S. federal and state regulation—including regulation of natural gas, NGL and crude oil production, transportation and pipeline safety—as well by general economic conditions and changes in supply and demand. The interstate transportation and sale for resale of natural gas are subject to federal regulation, including regulation of the terms, conditions and rates for interstate transportation, storage and various other matters, primarily by the Federal Energy Regulatory Commission ("FERC"). FERC's regulations for interstate natural gas transmission in some circumstances may also affect the intrastate transportation of natural gas. Federal and state regulations also govern the price and terms for access to natural gas pipeline transportation. In addition, the third parties on whom our third-party operators rely for transportation services are subject to complex federal, state, tribal and local laws that could adversely affect the cost, manner or feasibility of conducting our business.

Finally, a decrease in access to midstream and operational infrastructure and bottlenecks in processing and transportation could result in a decline in the price of natural gas, NGLs and crude oil, which could have a material adverse effect on our business, financial condition and results of operations.

**Risks Related to Legal, Regulatory and Environmental Matters** 

***Our third-party operators are subject to significant governmental regulations, and governmental authorities can delay or deny permits and approvals or change legal requirements governing our business, which could restrict their operations, increase costs of conducting our business, and delay our implementation of, or cause us to change, our business strategy.***

The current and future operations of our business and that of the third-party operators on our land are and will be governed by complex and stringent federal, state, local, and other laws and regulations, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• laws and regulations governing mineral acquisition, development, production, transportation, marketing and sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• laws and regulations related to exports, taxes and fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• labor standards and regulations related to occupational health and safety; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• environmental, health or safety standards and regulations related to waste disposal, pollution clean-up, toxic substances, land use, and protection of the environment and natural resources.

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Federal, state and local agencies may assert overlapping authority to regulate in these areas. Under these laws and regulations, we (either directly or indirectly through our third-party operators) could be liable for personal injuries, property and natural resource damages and other damages. Failure to comply with these laws and regulations may result in the suspension or termination of our business and subject us to administrative, civil and criminal penalties. In addition, certain of these laws and regulations may apply retroactively and may impose strict or joint and several liability on us for events or conditions over which we and our predecessors had no control, without regard to fault, legality of the original activities, or ownership or control by third parties.

Companies engaged in exploration activities often experience increased costs and delays in production and other schedules as a result of the need to comply with applicable laws, regulations and permits. Costs of compliance may increase, and operational delays or restrictions may occur, as existing laws and regulations are revised or reinterpreted, or as new laws and regulations become applicable to our business and our third-party operators. Government authorities and other organizations continue to study health, safety and environmental aspects of mineral operations, including those related to air, soil and water quality, ground movement or seismicity, and natural resources. Government authorities have also adopted or proposed new or more stringent requirements for permitting well construction, and public disclosure or environmental review of, or restrictions on, mineral operations. Such requirements or associated litigation could result in potentially significant added costs to comply, delay or curtail the exploration, development, disposal or production activities of our third-party operators, which could have a material adverse effect on our business, financial condition and results of operations.

To operate in compliance with these laws and regulations, our third-party operators must obtain and maintain permits, approvals and certificates from federal, state and local government authorities for a variety of activities. These permits are generally subject to protest, appeal or litigation, which could in certain cases delay or halt projects, production of wells and other operations. Failure to comply with laws and regulations, including obtaining and maintaining permits, approvals and certificates, may result in enforcement actions, including the forfeiture of claims, or orders issued by regulatory or judicial authorities requiring operations to cease or be curtailed, the assessment of administrative, civil, and criminal fines and penalties and liability for noncompliance, costs of corrective action, cleanup or restoration, including capital expenditures, installation of additional equipment, or remedial actions, compensation for personal injury, property damage or other losses, and the imposition of injunctive or declaratory relief restricting or limiting their operations.

Our business may also be adversely affected by seasonal or permanent restrictions on drilling activities designed to protect various wildlife. The Endangered Species Act ("ESA") and analogous state laws restrict activities that may affect endangered or threatened species or their habitats. Similar protections are offered to migratory birds under the Migratory Bird Treaty Act. Certain of our properties may overlap with the habitat for species listed under the ESA or analogous state laws, and restrictions designed to protect threatened or endangered species or their habitat may limit the abilities of our third-party operators to operate in certain areas and can intensify competition for drilling rigs, oilfield equipment, services, supplies and qualified personnel, which may lead to periodic shortages when drilling is allowed. Permanent restrictions could prohibit drilling or emplacement of pipelines in certain areas or require the implementation of expensive mitigation measures. These restrictions could have a material adverse effect on our business, financial condition and results of operations to the extent they impact our properties, our third-party operators or our mineral and royalty interests.

***The development and enactment of climate change legislation and regulation regarding emissions of greenhouse gases ("GHGs") could adversely affect the mineral industry and reduce demand for the natural gas and oil that our third-party operators produce.***

The energy industry is affected from time to time in varying degrees by political developments and a wide range of federal, tribal, state and local statutes, rules, orders and regulations that may, in turn, affect the operations and costs of the companies engaged in the energy industry. While Congress has from time to time considered legislation to reduce emissions of GHGs, comprehensive legislation aimed at reducing GHG emissions has not

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yet been adopted at the federal level. Notwithstanding the U.S. Environmental Protection Agency's ("EPA") recent final rule repealing the "Endangerment Finding" that underlies the majority of its GHG-related regulations, GHG emissions have been regulated by the EPA under previous administrations pursuant to the Clean Air Act of 1970 (as amended, the "CAA"), as well as by state environmental authorities. For example, in December 2023, the EPA finalized stringent emissions control requirements for certain new and existing upstream and midstream natural gas and oil facilities, known as Subparts OOOOb and OOOOc, and failure to comply with these new rules may result in substantial fines and penalties, as well as injunctive relief. However, in March 2025, the EPA announced plans to reconsider Subparts OOOOb and OOOOc and, in November 2025, the EPA finalized an interim final rule extending certain compliance deadlines for certain provisions provided in the rules. Litigation challenging the interim final rule remains pending. In addition, the EPA has adopted rules requiring the monitoring and reporting of GHG emissions from specified onshore and offshore oil and gas production sources in the United States on an annual basis, which may include operations on our properties. In September 2025, the EPA proposed to delay the reporting of GHG emissions for the oil and gas sector until 2034. These proposals are still under consideration and are subject to a number of uncertainties and likely could face legal challenges that would further delay the implementation of any rules, and we cannot predict the ultimate outcome. Litigation challenging the rule rescinding the "Endangerment Finding" is ongoing, and as a result, there is significant uncertainty with respect to regulation of GHG emissions. To the extent new laws or regulations are adopted or issued to address GHG emissions, they could increase compliance costs for our third-party operators or restrict the ability to permit GHG emissions from new or modified sources, which in turn could result in a material adverse impact on our business. In addition, substantial limitations on GHG emissions could adversely affect demand for natural gas, NGLs and oil, which may also adversely affect our business and financial results. Further, the Infrastructure Investment and Jobs Act and the Inflation Reduction Act of 2022 (the "IRA") include billions of dollars in incentives for the development of renewable energy, clean hydrogen, clean fuels, electric vehicles, investments in advanced biofuels and supporting infrastructure, and carbon capture and sequestration. Additionally, the IRA includes a Waste Emissions Charge for methane emissions from specific types of facilities that emit 25,000 metric tons of carbon dioxide equivalent or more per year, and, although the IRA generally provides for a conditional exemption under certain circumstances, the charge applies to emissions that exceed an established emissions threshold for each type of covered facility. In November 2024, the EPA finalized the Waste Emissions Charge rule. However, in February 2025, Congress repealed the Waste Emissions Charge rule using the Congressional Review Act. In addition, the One Big Beautiful Bill Act, enacted in July 2025, delayed implementation of the charge until 2034. While the EPA cannot reissue its rule implementing the Waste Emissions Charge (either in substantially the same form or in a new rule), the underlying requirement in the IRA remains unchanged. We cannot predict if the Trump administration and/or Congress may take action to repeal or revise this requirement in the IRA. However, compliance with this and other air pollution control and permitting requirements has the potential to delay the development of natural gas and oil projects and increase our third-party operators' costs of development, with possible significant costs, and adversely affect our business.

Additional GHG regulation could also result from the agreement crafted during the United Nations climate change conference in Paris, France, in December 2015 (the "Paris Agreement"). Under the Paris Agreement, the United States committed to reducing its GHG emissions by 26-28% by the year 2025 as compared with 2005 levels. Moreover, in November 2021, at the U.N. Framework Convention on Climate Change Conference of the Parties (the "Conference of the Parties"), the United States and the European Union advanced a Global Methane Pledge to reduce global methane emissions at least 30% from 2020 levels by 2030, which over 100 countries have signed. At the 27th Conference of the Parties, the United States agreed, in conjunction with the European Union and a number of other partner countries, to develop standards for monitoring and reporting methane emissions to help create a market for low methane intensity natural gas. A decision from the 28<sup>th</sup> Conference of the Parties serving as a meeting of the Parties to the Paris Agreement calls on countries to contribute to a list of global efforts, taking into account the Paris Agreement and their different national circumstances, pathways and approaches. This list includes a tripling of renewable energy capacity and doubling the global average rate of energy efficiency improvements by 2030; phasing out inefficient fossil fuel subsidies that do not address energy poverty or just transitions, as soon as possible; and transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in the 2020s, so as to achieve net zero by 2050 in keeping

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with the science. However, in January 2025, President Trump announced the United States' withdrawal from the Paris Agreement, and in January 2026, President Trump announced the United States' withdrawal from the United Nations Framework Convention on Climate Change. In addition, the Supreme Court's decision in *Loper Bright Enterprises v. Raimondo* to overrule *Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.,* thus ending the concept of general deference to regulatory agency interpretations of laws, introduces new complexity for federal agencies and administration of climate change policy and regulatory programs. The full impact of these actions remains uncertain at this time but many of these initiatives to address climate change at the international, state and local levels are expected to continue. Consequently, legislation and regulatory programs to address climate change or reduce emissions of GHGs could have a material adverse effect on our business, financial condition and results of operations. In the absence of comprehensive federal climate legislation, a number of state and regional efforts have emerged that are aimed at tracking or reducing GHG emissions by means of cap-and-trade programs, and we cannot predict what or whether states may take further action to regulate GHG emissions following the EPA's rescission of the "Endangerment Finding.". These programs typically require major sources of GHG emissions to acquire and surrender emission allowances in return for emitting those GHGs.

Although it is not possible at this time to predict how legislation or new regulations that may be adopted to address GHG emissions would impact us and our third-party operators, any future laws and regulations imposing reporting obligations on, or limiting emissions of GHGs from, such operators' equipment and operations could require them to incur costs to reduce emissions of GHGs associated with their operations, which could adversely impact our business. In addition, substantial limitations on GHG emissions could adversely affect demand for the natural gas and oil produced from our properties. Restrictions on emissions of methane or carbon dioxide, such as restrictions on venting and flaring of natural gas, that may be imposed in various states, as well as state and local climate change initiatives, such as increased energy efficiency standards or mandates for renewable energy sources, could adversely affect the oil and gas industry. It is not possible at this time to accurately estimate how potential future laws or regulations addressing GHG emissions would impact oil and gas assets. Increasingly, natural gas and oil companies are exposed to litigation risks resulting from climate change. A number of parties have brought suits against natural gas and oil companies in state or federal court, including suits for alleged contributions to, or failure to disclose the impacts of, climate change. While we are not currently party to any such litigation, we or our third-party operators could be named in future actions making similar claims of liability. Moreover, to the extent that societal pressures or political or other factors are involved, it is possible that such liability could be imposed without regard to the company's causation of or contribution to the asserted damage. Involvement in any such litigation could have a material adverse impact on our business, financial condition and results of operations.

Finally, climate change may have significant physical effects, such as increased frequency and severity of extreme weather events (including storms, freezes, floods, drought, hurricanes and other climatic events) or changes in meteorological and hydrological patterns, that could adversely impact our third-party operators. Such effects may result from damage to our third-party operators' facilities, including through restrictions on the use of water due to drought and indirect impacts from supply chain disruption and market volatility. These effects may adversely affect our business, financial condition and results of operations.

***Increased attention to sustainability-related matters and conservation measures may impact our business or the business of our third-party operators.***

Increased attention to climate change, and sometimes conflicting societal expectations on companies to address climate change and consumer demand for alternative forms of energy, may result in increased costs, reduced demand for natural gas, NGLs and oil, reduced profits, increasing administrative, legislative and judicial scrutiny, reputational damage and negative impacts on us or our third-party operators, which may ultimately have adverse impacts on our business, such as our access to capital markets as well as the price of our Class A common stock. Increased attention to climate change and environmental conservation, for example, may result in demand shifts for natural gas and oil products and governmental investigations, private litigation or activist campaigns against us or our third-party operators.

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While we may elect to pursue certain sustainable energy-related strategies in the future, any such goals are aspirational and may not have the intended impact on our business. We may also receive pressure from investors, lenders or other groups to adopt more aggressive climate or other sustainability-related goals, and we cannot guarantee that we will be able to pursue or implement such goals because of potential costs or technical or operational obstacles. Moreover, failure or a perception (whether or not valid) of failure to pursue or implement such strategies or achieve such goals or commitments, including any GHG emission reduction or carbon intensity goals or commitments, could result in private litigation and damage our reputation, cause investors or consumers to lose confidence in us, and negatively impact our third-party operators. Additionally, to the extent sustainability-related matters negatively impact our reputation, we may not be able to compete as effectively to recruit or retain employees, which may adversely affect our business.

Some organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on their approach to sustainability concerns. Such ratings are used by some investors to inform their investment and voting decisions. While such ratings do not impact all investors' decisions, unfavorable ratings and any recent activism directed at shifting funding away from companies with energy-related assets could lead to increased negative investor sentiment toward us, our third-party operators and our industry and to the diversion of investment to other industries, which could have a negative impact on our access to and costs of capital. Additionally, certain public statements with respect to sustainability matters, such as emissions reduction claims, are becoming increasingly subject to heightened scrutiny from public and governmental authorities, as well as other parties, related to the risk of potential "greenwashing"—i.e., misleading information or false claims overstating potential benefits. Any alleged claims of greenwashing against us or others in our industry may lead to further negative sentiment and diversion of investments.

***Our third-party operators' exploration and development activities are subject to hazardous operating risks, which could expose our third-party operators to significant liability, delay, suspension or termination of their operations.***

Our third-party operators are subject to all of the hazards and operating risks associated with drilling for and production of natural gas, NGLs and crude oil, including the risk of fire, explosions, blowouts, surface cratering, uncontrollable flows of natural gas, NGLs and crude oil and formation water, pipe or pipeline failures, abnormally pressured formations, casing collapses and environmental hazards such as crude oil and NGL spills, natural gas leaks and ruptures or discharges of toxic gases. In addition, their operations will be subject to risks associated with hydraulic fracturing, including any mishandling, surface spillage or potential underground migration of fracturing fluids, including chemical additives. The occurrence of any of these events could result in substantial losses to our third-party operators due to injury or loss of life, severe damage to or destruction of property, natural resources and equipment, pollution or other environmental damage, clean-up responsibilities, regulatory investigations and penalties, suspension of operations and repairs required to resume operations, which in turn could have a material adverse effect on our business, financial condition and results of operations.

The exploration and possible future development phases of the business of the third-party operators we work with are and will be subject to federal, state and local environmental, health and safety regulations. These regulations mandate, among other things, the maintenance of air and water quality standards and land reclamation. They also set out limitations on the generation, transportation, storage and disposal of solid and hazardous waste, impose restrictions on activities to protect certain species and regulate worker health and safety. Future environmental legislation may require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments and a heightened degree of responsibility for companies and their officers, directors and employees. Future changes in environmental regulations, if any, may adversely affect our third-party operators, and, as a result, our business. If our third-party operators fail to comply with any applicable environmental laws, regulations or permit requirements, they could face regulatory or judicial sanctions. Penalties imposed by either the courts or administrative bodies could delay or stop their operations to develop our minerals or require considerable capital expenditures. Furthermore, certain groups

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opposed to exploration and mining may attempt to interfere with their operations through the legal or regulatory process or by engaging in disruptive protest activities. The occurrence of any of these risks to our third-party operators could in turn have a material adverse effect on our business, financial condition and results of operations.

Environmental hazards unknown to us, which have been caused by previous or existing owners or operators of our properties, may exist on our properties. Our properties could be located on or near the site of a federal cleanup project, and that environmental cleanup or other environmental restoration procedures could remain pending or mandated by law, which may result in unexpected liabilities, with total costs that are difficult to predict.

The Comprehensive Environmental, Response, Compensation and Liability Act ("CERCLA") and comparable state statutes impose strict, joint and several liability on current and former owners and operators of sites and on persons who disposed of or arranged for the disposal of hazardous substances found at such sites. It is not uncommon for the government to file claims requiring cleanup actions, demands for reimbursement for government-incurred cleanup costs, or natural resource damages, or for neighboring landowners and other third parties to file claims for personal injury and property damage allegedly caused by hazardous substances released into the environment. The Federal Resource Conservation and Recovery Act ("RCRA") and comparable state statutes govern the disposal of solid waste and hazardous waste and authorize the imposition of substantial fines and penalties for noncompliance, as well as requirements for corrective actions and financial assurance. CERCLA, RCRA and comparable state statutes can impose liability for clean-up of sites and disposal of substances found on exploration and processing sites long after activities on such sites have been completed.

The CAA restricts the emission of air pollutants from many sources, including drilling and production activities. The drilling and production operations conducted by third parties to develop our minerals may produce air emissions, including fugitive dust and other air pollutants from stationary equipment, storage facilities and the use of mobile sources such as trucks and heavy construction equipment, which are subject to review, monitoring and/or control requirements under the CAA and state air quality laws. In undeveloped properties, our third-party operators may be required to obtain permits before work can begin, and, in properties with existing facilities, our third-party operators may need to incur capital costs in order to remain in compliance. In addition, permitting rules may impose limitations on operators' production levels or result in additional capital expenditures in order to comply with the rules.

The National Environmental Policy Act requires federal agencies to integrate environmental considerations into their decision-making processes by evaluating the environmental impacts of their proposed actions and assessing alternatives to those actions. If a proposed federal action could significantly affect the environment, the agency must prepare a detailed statement known as an Environmental Impact Statement ("EIS"). The EPA, other federal agencies and any interested third parties will review and comment on the scoping of the EIS and the adequacy of and findings set forth in the draft and final EIS. This process can cause delays in the issuance of required permits, litigation over the adequacy of the EIS or result in changes to a project to mitigate its potential environmental impacts, which can in turn adversely impact the economic feasibility of a proposed project.

The Clean Water Act (the "CWA") and comparable state statutes impose restrictions and controls on the discharge of pollutants into waters of the United States. The discharge of pollutants into regulated waters is prohibited, except in accordance with the terms of a permit issued by the EPA or an analogous state agency. Such a permit requires the regulated facility to monitor and sample storm water run-off from its operations. The CWA and regulations implemented thereunder also prohibit the discharge of dredged and fill material in certain wetlands and other regulated waters unless authorized by an appropriately issued permit. The CWA and comparable state statutes provide for civil, criminal and administrative penalties for the unauthorized discharge of pollutants and impose liability on parties responsible for those discharges for the costs of cleaning up any environmental damage caused by the discharge and for natural resource damages resulting from the discharge.

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The Safe Drinking Water Act (the "SDWA") and the Underground Injection Control (the "UIC") program promulgated thereunder regulate the drilling and operation of subsurface injection wells. The EPA directly administers the UIC program in some states; in other states, including those in which we own property, the responsibility for the program has been delegated to the state. The UIC program requires that a permit be obtained before drilling a disposal or injection well. Violation of these regulations and/or contamination of groundwater may result in fines, penalties and remediation costs, among other sanctions and liabilities under the SDWA and state laws. In addition, third-party claims may be filed by neighboring landowners and other parties claiming damages for alternative water supplies, property damages, and bodily injury.

There can be no assurance that the defense of such claims by us or our third-party operators will be successful and a successful claim against us or any of the third parties we contract with could have an adverse effect on our business, financial condition and results of operations.

***Future legislative or regulatory changes may result in increased costs and decreased revenues, cash flows and liquidity, all of which could have a material adverse effect on our business, financial condition and results of operations.***

Companies that operate wells in which we own mineral and royalty interests are subject to extensive federal, state and local regulation. We, as a minerals and royalties interest owner, are therefore indirectly subject to these same regulations. In particular, changes in law or regulation related to hydraulic fracturing or GHGs could significantly increase capital, compliance and operating costs, as well as halt or delay the further development of gas and oil reserves on our properties.

*Federal Income Taxation* 

We are subject to U.S. federal income tax, as well as income or capital-based taxes in various states, and our operating cash flows are sensitive to the amount of income taxes we must pay. Income taxes are assessed on our net income as determined for federal income tax purposes, considering allowable deductions and credits. Changes in the types of earnings that are subject to income tax, the types of items that are considered allowable deductions or the rates assessed on our taxable earnings would all impact our income taxes and resulting operating cash flows.

Further revisions to U.S. tax law, such as any increase in corporate income tax rates, the repeal of the percentage depletion allowance, or the repeal of expensing for intangible drilling costs, could have a material adverse effect on our business. Moreover, the U.S. Department of Treasury has broad authority to issue regulations and interpretative guidance that may significantly impact how we apply U.S. tax law, with a corresponding impact on the results of our operations for the periods affected.

*Hydraulic Fracturing and Water Disposal* 

The vast majority of natural gas and oil wells drilled in recent years have been, and future wells are expected to be, hydraulically fractured as a part of the process of completing the wells and putting them on production, including the wells drilled in which we own an interest. Hydraulic fracturing is a process that involves pumping water, sand and additives at high pressure into rock formations to stimulate natural gas and oil production. In developing plays where hydraulic fracturing, which requires large volumes of water, is necessary for successful development, the demand for water may exceed the supply. Over the past several years, parts of the country have experienced extreme drought conditions. As a result of this severe drought, some local water districts have begun restricting the use of water subject to their jurisdiction for hydraulic fracturing to protect local water supply. Such conditions may be exacerbated by climate change. If our third-party operators are unable to obtain water to use in their operations from local sources, or if our third-party operators are unable to effectively utilize flowback water, they may be unable to economically drill for or produce natural gas, NGLs and crude oil from our properties, which could have a material adverse effect on our business, financial condition and results of operations.

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In addition to water, hydraulic fracturing fluid contains chemical additives designed to optimize production. Well operators are required in certain states to disclose the components of these additives. Additional states and the federal government may follow with similar requirements or may restrict the use of certain additives. This could result in more costly or less effective development of wells.

The fluid produced from the fractured formation must be either treated for reuse or disposed of by injecting the fluid into disposal wells. Injection well disposal processes have been, and continue to be, studied to determine the extent of correlation between injection well disposal and the occurrence of earthquakes. Certain studies have concluded there is a correlation, and this has resulted in the cessation of or the reduction of injection rates in certain water disposal wells, especially in northern Oklahoma.

Efforts to regulate hydraulic fracturing and fluid disposal continue at the local, state and federal level. For example, the EPA has asserted regulatory authority pursuant to the SDWA UIC program over hydraulic fracturing activities involving the use of diesel and issued guidance covering such activities. New regulations are being considered, including limiting water withdrawals and usage, limiting water disposition, restricting which additives may be used, implementing statewide hydraulic fracturing moratoriums and temporary or permanent bans in certain environmentally sensitive areas. Public sentiment against hydraulic fracturing and fluid disposal and shale production could result in more stringent permitting and compliance requirements. Consequences of any of these regulation efforts could increase capital, compliance and operating costs significantly, as well as delay or halt the further development of gas and oil reserves on our properties.

Any of the above factors could have a material adverse effect on our business, financial condition and results of operations.

*Inflation Reduction Act of 2022* 

The IRA appropriates significant federal funding for renewable energy initiatives. These incentives could accelerate the transition of the U.S. economy towards lower- or zero-carbon emissions alternatives, which could decrease demand for oil and gas. Moreover, the IRA imposes a federal fee on GHG emissions through a Waste Emissions Charge. The IRA amends the federal Clean Air Act to impose a fee on the emission of methane from sources required to report their GHG emissions to the EPA, including those sources in the onshore petroleum and natural gas production and gathering and boosting source categories. However, the One Big Beautiful Bill Act, enacted in July 2025, delays implementation of the charge until 2034. While the EPA cannot reissue its rule implementing the Waste Emissions Charge (either in substantially the same form or in a new rule), the underlying requirement in the IRA remains unchanged. Although we cannot predict if the Trump administration and/or Congress may take action to repeal or revise this requirement of the IRA, compliance with this and other air pollution control and permitting requirements has the potential to delay the development of natural gas projects and increase our third-party operators' costs of development, which costs could be significant, and in turn have a material adverse effect on our business, financial condition and results of operations.

On January 20, 2025, President Trump issued the "Unleashing American Energy" executive order (EO 14154), which directs federal agencies to suspend the disbursement of funds under the IRA, reassess existing energy policies, and streamline permitting processes for oil and gas development. If fully implemented, EO 14154 is expected to reduce compliance costs, expand development opportunities, and provide more investment certainty. However, while the executive order signals a shift in energy policy, certain provisions of the IRA were enacted through legislation that may require congressional action or judicial review before being fully repealed or modified, and agency actions taken pursuant to EO 14154 have been subject to litigation. We will continue to monitor regulatory developments, potential legal challenges, and legislative actions that may affect the implementation of EO 14154. While the administration's energy policies appear broadly supportive of the oil and gas industry, ongoing legal and political dynamics may impact the extent to which specific provisions are ultimately enforced or rescinded.

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*Seismic Activity* 

In response to concerns related to earthquakes in northern and central Oklahoma and Texas near underground disposal wells used for the injection of flowback and produced water (known as "induced seismicity"), regulators in some states, including Oklahoma and Texas, have imposed, or are considering imposing, certain limits on or requirements related to the permitting or operation of produced water disposal wells in areas with increased instances of induced seismic events. States may, from time to time, develop and implement plans directing certain wells in proximity to where seismic incidents have occurred to restrict or suspend well operations. These legislative and regulatory initiatives may result in additional levels of regulation that could lead to operational delays, litigation concerning, and greater opposition to, natural gas and oil activities using injection wells for waste disposal, and increased operating and compliance costs or otherwise adversely affect operations. Increased restrictions may also have a material adverse effect on our third-party operators and operations on our properties, which could have an indirect adverse effect on our business, financial condition and result of operations.

***The adoption of derivatives legislation by the U.S. Congress could have an adverse effect on us and our ability to hedge risks associated with our business.***

The Dodd-Frank Act required, in part, that the U.S. Commodity Futures Trading Commission ("CFTC") and the SEC promulgate rules and regulations to establish federal oversight for the over-the-counter ("OTC") derivatives markets and entities that participate in those markets. Although the CFTC and the SEC have issued final regulations in certain areas, final rules in other areas and the scope of relevant definitions and/or exemptions still remain to be finalized.

Effective March 15, 2021, the CFTC implemented its final rule concerning speculative position limits, adopting new and amended federal spot-month limits for 2025 physical commodity derivatives. Under this rule, certain types of hedging transactions are exempt from these limits on the size of positions that may be held, provided that such hedging transactions satisfy the CFTC's requirements for certain enumerated "bona fide hedging" transactions or positions.

The CFTC has also adopted final rules regarding aggregation of positions, under which a party that controls the trading of, or owns 10% or more of the equity interests in, another party will have to aggregate the positions of the controlled or owned party with its own positions for purposes of determining compliance with position limits unless an exemption applies. With the implementation of the final aggregation rules and upon the adoption and effectiveness of final CFTC position limits rules, our ability to execute our hedging strategies described above could be limited. It is uncertain at this time whether, when and in what form the CFTC's proposed new position limits rules may become final and effective.

The CFTC issued a final rule on margin requirements for uncleared swap transactions on January 6, 2016. This final rule was amended on February 24, 2021 to permit the application of a minimum transfer amount of up to $50,000 for each separately managed account of a legal entity that is a counterparty to a swap dealer or a major swap participant in an uncleared swap transaction and to permit the application of separate minimum transfer amounts for initial margin and variation margin.

In addition, the CFTC has issued a final rule authorizing an exemption from the otherwise applicable mandatory obligation to clear certain types of swap transactions through a derivatives clearing organization and to trade such swaps on a regulated exchange, which exemption applies to swap transactions entered into by commercial end-users in order to hedge commercial risks affecting their business. The mandatory clearing requirement currently applies only to certain interest rate swaps and credit default swaps, but the CFTC could act to impose mandatory clearing requirements for other types of swap transactions. The Dodd-Frank Act also imposes recordkeeping and reporting obligations on counterparties to swap transactions and other regulatory compliance obligations.

All of the above regulations could increase the costs to us of entering into financial derivative transactions to hedge or mitigate our exposure to commodity price volatility and other commercial risks affecting our business.

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The Volcker Rule provisions of Dodd-Frank may also require our current bank counterparties that engage in financial derivative transactions to spin off some of their derivatives activities to separate entities, which separate entities may not be as creditworthy as the current bank counterparties. Under such rules, other bank counterparties may cease their current business as hedge providers. These changes could reduce the liquidity of the financial derivatives markets thereby reducing the ability of entities like us, as commercial end-users, to have access to financial derivatives to hedge or mitigate our exposure to commodity price volatility.

As a result, Dodd-Frank and any new regulations issued thereunder could significantly increase the cost of derivative contracts (including through requirements to post cash collateral), which could adversely affect our capital available for other purposes, materially alter the terms of future swaps relative to the terms of our existing bilaterally negotiated financial derivative contracts and reduce the availability of derivatives to protect against commercial risks we encounter.

If we reduce our use of derivative contracts as a result of the new requirements, our results of operations may become more volatile and cash flows less predictable, which could adversely affect our ability to plan for and fund capital expenditures. Finally, the legislation was intended, in part, to reduce the volatility of natural gas, NGL and oil prices, which some legislators attributed to speculative trading in derivatives and commodity instruments related to natural gas, NGLs and oil. Our revenues could therefore be adversely affected if a consequence of the legislation and regulations is to lower commodity prices. Any of these consequences could have a material adverse effect on our business, financial condition and results of operations.

***Restrictions on the ability of our third-party operators to obtain water may have a material adverse effect on our business, financial condition and results of operations.***

Water is an essential component of natural gas, NGL and crude oil production during both the drilling and hydraulic fracturing processes. Over the past several years, parts of the country have experienced extreme drought conditions. As a result of this severe drought, some local water districts have begun restricting the use of water subject to their jurisdiction for hydraulic fracturing to protect local water supply. Such conditions may be exacerbated by climate change. If our third-party operators are unable to obtain water to use in their operations from local sources or at commercially reasonable rates, or if our third-party operators are unable to effectively utilize flowback water, they may be unable to economically drill for or produce natural gas, NGLs and crude oil from our properties, which could have a material adverse effect on our business, financial condition and results of operations.

**Risks Related to Our Indebtedness** 

***Our use of borrowings to finance our business exposes us to risks.***

We use indebtedness as a means to finance our business strategies, which exposes us to the typical risks associated with using leverage. Upon the closing of this offering, we expect our material indebtedness to consist of (i) our Note Purchase Agreement, which we anticipate assigning to WhiteHawk OpCo, paying down to approximately $75.0 million of principal, and amending to become a second lien obligation, and (ii) our new Revolving Credit Facility, providing for an initial aggregate maximum credit amount of $500 million, an initial aggregate elected commitment amount of $150 million and an initial borrowing base of $150 million. See "Description of Material Indebtedness" for further information regarding our outstanding indebtedness. We may continue to strategically utilize long-term indebtedness in connection with the acquisition of additional assets. There can be no assurance that we will have sufficient cash on hand with which to repay any outstanding borrowings. There can also be no assurance that leveraged financing will continue to be available to us on favorable terms or at all. Our stockholders may bear the burden of any increase in our expenses as a result of our use of leverage, including interest expenses. To the extent that we use leverage to finance our assets, our financing costs will reduce cash available for dividends to our stockholders.

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***Our failure to comply with the covenants contained in the Note Purchase Agreement and the Revolving Credit Facility, including as a result of events beyond our control, could result in an event of default that could cause repayment of our Senior Notes and borrowings under the Revolving Credit Facility to be accelerated.***

The Note Purchase Agreement (as defined herein) governing our Senior Notes and the Revolving Credit Facility impose, and the agreements governing our future indebtedness may impose, material restrictions on us that limit our operating flexibility, which could harm our long-term interests. These restrictions, subject in certain cases to ordinary course of business and other exceptions, may limit our ability to engage in some transactions, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• incurring or guaranteeing additional indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• paying dividends, redeeming capital stock or making other restricted payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• making payments in respect of certain second lien/senior notes or junior debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• making investments, including acquisitions, loans and advances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• entering into burdensome agreements with negative pledge clauses or restrictions on subsidiary distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• selling, transferring or otherwise disposing of assets, properties or licenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• creating liens on assets and capital stock to secure any indebtedness

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• undergoing a change in control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• merging, consolidating, liquidating, or dissolving;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• entering into new lines of business or materially altering our business and the business conducted by certain of
our subsidiaries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• entering into transactions with affiliates.

In addition to imposing restrictions on our business and operations, the Note Purchase Agreement includes covenants relating to financial ratios and tests, and the Revolving Credit Facility will require us to maintain, as of the last day of each fiscal quarter (commencing with the first full fiscal quarter ending after the closing of this offering), a consolidated net leverage ratio of no greater than 3.50 to 1.00 and a current ratio of no less than 1.00 to 1.00. Any future debt instruments may also include such covenants. The Note Purchase Agreement also requires us to prepay our Senior Notes on a quarterly basis, an amount equal to the lesser of: (A) the difference between the aggregate outstanding principal amount of our Senior Notes and the Target Debt Balance (as defined in the Note Purchase Agreement) as of the date thereof, and (B) any liquidity (calculated on a Distribution PF Basis (as defined in the Note Purchase Agreement)) in excess of the Minimum Liquidity Amount (as defined in the Note Purchase Agreement).

Any failure to comply with the restrictions of our indebtedness, and any subsequent financing agreements, including as a result of events beyond our control, may result in an event of default under these agreements, which in turn may result in defaults or acceleration of obligations under these agreements and other agreements, giving our lenders and other debt holders the right to terminate any commitments they may have made to provide us with further funds and to require us to repay all amounts then outstanding. Our assets and cash flows may not be sufficient to fully repay borrowings under our outstanding debt instruments. In addition, we may not be able to refinance or restructure the payments on the applicable debt. Even if we were able to secure additional financing, it may not be available on favorable terms.

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***Our Revolving Credit Facility and our hedging agreements are secured by substantially all of our assets and is subject to an intercreditor agreement, and our Note Purchase Agreement will be a second lien obligation, which could limit our financial and operating flexibility and expose holders of our Senior Notes to increased risk in the event of an enforcement action.***

The Revolving Credit Facility and our obligations under our hedging agreements will be secured by liens on substantially all of WhiteHawk OpCo's properties and assets, the properties and assets of its subsidiaries, and pledges of the equity interests in all of WhiteHawk OpCo's present and future subsidiaries (subject to certain exceptions), and will be guaranteed by substantially all of WhiteHawk OpCo's existing and future direct and indirect subsidiaries, with certain customary or agreed upon exceptions. Upon the closing of this offering, the Note Purchase Agreement is expected to be amended to become a second lien obligation on substantially the same collateral, subject to an intercreditor agreement governing the relative rights and priorities of the first lien secured parties under the Revolving Credit Facility and the second lien secured parties under the Note Purchase Agreement. If we are unable to repay our secured obligations when due, the first lien lenders could foreclose on or otherwise exercise remedies with respect to the collateral prior to the second lien secured parties, and the value of the collateral may not be sufficient to repay all amounts owing under the Revolving Credit Facility and the Note Purchase Agreement. The intercreditor agreement may also restrict the ability of the holders of our Senior Notes to exercise remedies, challenge the first lien liens, or otherwise protect their interests during periods of default or insolvency.

***The borrowing base under our Revolving Credit Facility is subject to periodic redetermination and other automatic reductions, which could require us to repay outstanding borrowings on short notice.***

The borrowing base under the Revolving Credit Facility is subject to semi-annual redeterminations on April 15 and October 15 of each year, commencing October 15, 2026, based on a review of our proved oil and gas reserves, commodity prices and other factors deemed relevant by the administrative agent. In addition, each of WhiteHawk OpCo and the administrative agent (at the direction of the required lenders) may elect to initiate one interim redetermination between scheduled redeterminations, and we may elect an additional interim redetermination in connection with acquisitions of oil and gas properties representing at least 5% of the then-effective borrowing base. The borrowing base will also be automatically reduced (i) by the borrowing base value of any oil and gas properties disposed of or swap agreements terminated if the aggregate value of such dispositions and terminations since the most recent redetermination exceeds 5% of the then-effective borrowing base and (ii) upon the issuance of any permitted senior notes, by 25% of the aggregate stated principal amount of such notes. A decrease in commodity prices, downward revisions to our reserve estimates, asset dispositions, swap terminations, senior note issuances or changes in the lenders' lending policies could result in a reduction of our borrowing base. If our outstanding borrowings exceed the redetermined borrowing base, we could be required to repay such excess, which we may be unable to do on a timely basis or at all, and any such mandatory repayment could materially and adversely affect our liquidity, financial condition and results of operations.

***The Revolving Credit Facility will require us to maintain specified commodity hedges, which may limit our ability to benefit from favorable commodity prices and expose us to counterparty and other hedging risks.***

The Revolving Credit Facility will require us, on the last day of each fiscal quarter, to maintain swap agreements hedging a minimum percentage of our reasonably projected production of crude oil and natural gas from proved developed producing reserves, with required percentages and tenors that vary based on our Consolidated Net Leverage Ratio. If our Consolidated Net Leverage Ratio is at least 1.50 to 1.00, we must hedge at least 50% of reasonably projected production for each of the 24 months following such date; if the ratio is at least 1.00 to 1.00 but less than 1.50 to 1.00, we must hedge at least 50% for 12 months and at least 25% for months 13 through 24; and if the ratio is less than 1.00 to 1.00, we must hedge at least 50% for 12 months; provided that if our natural gas production exceeds 90% of our aggregate production, determined on a barrel of oil equivalent basis, we will not be required to hedge our volumes of crude oil. These required hedging levels may prevent us from realizing the full benefit of increases in commodity prices, may require us to enter into or maintain hedges at unfavorable

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times or prices, and expose us to counterparty credit risk and mark-to-market volatility. A failure to maintain required hedges would result in an event of default under the Revolving Credit Facility.

***The Revolving Credit Facility and the Note Purchase Agreement restrict our ability to pay cash dividends and make other distributions to our stockholders.***

The Revolving Credit Facility will permit us to make cash restricted payments to holders of our equity interests only if, both before and immediately after giving effect to any such restricted payment, (i) no default, event of default or borrowing base deficiency exists, (ii) unused availability is at least 10% of the loan limit, (iii) our Consolidated Net Leverage Ratio is less than or equal to 3.00 to 1.00 on a pro forma basis and (iv) such dividends and distributions are permitted by the Note Purchase Agreement, as in effect immediately following the amendment to the Note Purchase Agreement. See "Description of Material Indebtedness." As a result, our ability to pay cash dividends on, or repurchase, our common stock will depend on our continued compliance with these conditions as well as the other covenants in our debt agreements. If we are unable to satisfy these conditions, we may be unable to pay cash dividends at the levels anticipated at the time of this offering, or at all, which could adversely affect the market price of our common stock.

***Despite current indebtedness levels, we may incur substantial additional indebtedness in the future. This could further increase the risks associated with our indebtedness.***

We may incur substantial additional indebtedness in the future, which would increase our debt service obligations and could further reduce cash available to invest in additional assets. The terms of our Notes do not fully prohibit us or our subsidiaries from incurring additional indebtedness, subject to limitations. As of December 31, 2025, we had $237.7 million of borrowings outstanding under our Senior Notes. Upon the closing of this offering, we will have borrowing capacity under the Revolving Credit Facility of up to an initial aggregate elected commitment amount of $150 million (with an initial aggregate maximum credit amount of $500 million), subject to borrowing base redeterminations and satisfaction of customary borrowing conditions. The Revolving Credit Facility will also allow us to request that the aggregate elected commitments be increased up to the aggregate maximum credit amount, subject to certain conditions. If new debt is added to our debt levels, or any debt is incurred by our subsidiaries, the related risks that we and our subsidiaries currently face could increase.

***Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.***

Our Notes and borrowings under the Revolving Credit Facility bear interest at variable rates and expose us to interest rate risk. See "Description of Material Indebtedness" for further information regarding our Notes and the Revolving Credit Facility. Borrowings under the Revolving Credit Facility will bear interest, at our option, at a rate equal to either (i) an alternate base rate (the greatest of the Prime Rate, the Federal Funds Rate plus 1/2 of 1.00%, or one-month Term SOFR plus 1.00%) plus an applicable margin ranging from 1.50% to 2.50%, or (ii) Term SOFR plus an applicable margin ranging from 2.50% to 3.50%, in each case based on utilization of the borrowing base, and the unused portion of the Revolving Credit Facility will be subject to a commitment fee ranging from 0.375% to 0.50%. Term SOFR will be subject to a floor of 2.50% while the Senior Notes are in effect and 0.00% thereafter. If interest rates increase, our interest payments would increase even though the amount borrowed remains the same, and our net income and cash flows, including cash available for servicing our indebtedness, would correspondingly decrease. Although we may enter into agreements limiting our exposure to higher interest rates, these agreements may not be effective.

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**Risks Related to this Offering and Ownership of Our Class A Common Stock** 

***As an emerging growth company within the meaning of the Securities Act, we may utilize certain modified disclosure requirements, and we cannot be certain if these reduced requirements will make shares of our Class A common stock less attractive to investors.***

We are an emerging growth company, and, for as long as we continue to be an emerging growth company, we may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to "emerging growth companies," including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• presenting only two years of audited financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exemption from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley
Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduced disclosure about our executive compensation arrangements in our periodic reports, proxy statements and
registration statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exemptions from the requirements of holding non-binding advisory votes on
executive compensation or golden parachute arrangements.

We have in this prospectus utilized, and we may in future filings with the SEC continue to utilize, the modified disclosure requirements available to emerging growth companies. As a result, our stockholders may not have access to certain information they may deem important.

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can utilize the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to not "opt out" of this exemption from complying with new or revised accounting standards, and, therefore, we are permitted to adopt new or revised accounting standards at the time private companies adopt the new or revised accounting standards and are permitted to do so until such time that we either (i) irrevocably elect to "opt out" of such extended transition period or (ii) no longer qualify as an emerging growth company. As a result, we will not be subject to the same new or revised accounting standards at the same time as other public companies that are not emerging growth companies or those that have opted out of using such extended transition period, which may make comparison of our financial statements with such other public companies more difficult.

Following this offering, we will remain an emerging growth company until the last day of the fiscal year following the fifth anniversary of the completion of our initial public offering unless, prior to that time, we have more than $1.235 billion in annual gross revenue, have a market value for our Class A common stock held by non-affiliates of more than $700 million as of the last day of our second fiscal quarter of the fiscal year and a determination is made that we are deemed to be a "large accelerated filer," as defined in Rule 12b-2 promulgated under the Exchange Act, or issue more than $1.0 billion of non-convertible debt over a three-year period, whether or not issued in a registered offering.

***We could be subject to claims based on the defective corporate acts ratified by us pursuant to Section 204 of the DGCL.***

In connection with our preparation for this offering, we identified that our certificate of incorporation, as filed with the Delaware Secretary of State, did not align with our historical issuances of Class A common stock. As a result, shares of our Class A common stock were issued in excess of the number of authorized shares of Class A common stock under our certificate of incorporation then in effect. We also identified that shares of our Class A common stock and preferred stock may have been issued without obtaining certain required approvals of our board of directors and stockholders, and that our initial board of directors was not properly elected. Because these actions were not authorized and effected in compliance with the DGCL, they constituted "defective corporate acts" within the meaning of Section 204 of the DGCL.

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On December 29, 2025, our board of directors adopted resolutions ratifying these defective corporate acts in accordance with Section 204 of the DGCL, including the election of our initial board of directors and all historical issuances of our Class A common stock and preferred stock. In connection with the ratification, we filed certificates of validation with the Delaware Secretary of State to reflect the intended number of authorized shares of Class A common stock in our certificate of incorporation, which have been processed and are effective. We delivered notice of the ratification to our stockholders on January 15, 2026, in accordance with the requirements of Section 204 of the DGCL.

Under Section 204 of the DGCL, any claim that any of the ratified defective corporate acts or putative stock is void or voidable due to the failures of authorization (as that term is used in Section 204), or any claim that the Delaware Court of Chancery should declare in its discretion that the ratification thereof not be effective or be effective only on certain conditions, must be brought within 120 days from the date on which notice of the ratification is given. Until such notice is given and the applicable 120-day period has expired, a stockholder or other party may seek to challenge the effectiveness of the ratification and the Delaware Court of Chancery could determine that the ratification was not effective or that additional actions are required to fully validate the defective corporate acts.

If the ratification of these defective corporate acts is successfully challenged, or if we are required to undertake additional corrective actions, we could be subject to further claims, disputes, or liabilities, including with respect to the validity, ownership, or issuance of our outstanding equity securities. Any such claims, disputes, or liabilities could result in significant costs, divert management's attention, adversely affect our business, financial condition, and results of operations, and adversely affect the rights of our stockholders.

***Delaware law and anti-takeover provisions in our governing documents, as well as our existing and future debt agreements, could make an acquisition of our company more difficult, limit attempts by our stockholders to replace or remove our current directors and may deprive our investors of the opportunity to receive a premium for their shares.***

Our amended and restated certificate of incorporation, amended and restated bylaws and Delaware law contain provisions that will have the effect of rendering more difficult, delaying or preventing a third party from, acquiring control of us without the approval of our board of directors. Among other things, these provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• have terms that have the same effect as DGCL Section 203;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide for a classified board of directors with staggered three-year terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• authorize the issuance of "blank check" preferred stock, the terms of which are established by our
board of directors without any need for action by stockholders, that could be used to implement a stockholder rights plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• do not permit stockholders to call special meetings of stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• do not permit stockholders to act by written consent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establish advance notice procedures, which apply for stockholders to nominate candidates for election to our
board of directors or for proposing matters that can be acted on by stockholders at stockholder meetings.

Further, documents governing our indebtedness impose limitations on our ability to enter into change of control transactions and we anticipate that any documents governing our future indebtedness will also impose such limitations. The occurrence of a change of control transaction could constitute an event of default thereunder and permit acceleration of the indebtedness, thereby impeding our ability to enter into certain transactions.

The foregoing factors could discourage, delay or prevent a transaction involving a change in control of the Company, which could limit the opportunity for our stockholders to receive a premium for their shares of our Class A common stock and could also affect the price that some investors are willing to pay for Class A common stock. See "Description of Capital Stock."

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***We intend to pay regular dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and may be limited by distributions and other payments from OpCo and our operating subsidiaries our financial condition, results of operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness and other factors and restrictions our board of directors deems relevant.***

After the consummation of this offering, we intend to pay our stockholders regular dividends. However, the payment of dividends and other distributions is at the discretion of our board of directors and our board of directors may, in its discretion, increase, decrease or eliminate the payment of dividends. Our ability to pay dividends depends on many factors, including, but not limited to, financial conditions, results of operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness (including those goverinng our Senior Notes and the Revolving Credit Facility), any preferred stock, general business conditions and any other factors that our board of directors may deem relevant in making such a determination. Additionally, because we have no independent means of generating revenue or cash flow and we anticipate that the only source of our earnings will be cash distributions from our operating subsidiaries, our ability to pay dividends is dependent on the ability of our operating subsidiaries to make distributions to OpCo and the ability of OpCo to make distributions to us in an amount sufficient to cover such obligations. In particular, our ability to pay dividends is limited by covenants governing our Senior Notes and Revolving Credit Facility and may be further restricted by the terms of any future debt or preferred securities. See "Description of Material Indebtedness." Furthermore, our ability to declare and pay dividends to our stockholders is likewise subject to Delaware law (which may limit the amount of funds available for dividends). While we do not currently believe that these restrictions will impair our ability to continue to pay regular cash dividends, there can be no assurance that we will not need or determine to reduce or eliminate the payment of dividends on our Class A common stock in the future. See "Dividend Policy."

***We may issue preferred stock whose terms could adversely affect the voting power or value of our Class A common stock.***

Our amended and restated certificate of incorporation will authorize our board of directors to issue, without the approval of our stockholders, one or more classes or series of preferred stock having such designations, preferences, limitations and relative rights, including preferences over our Class A common stock respecting dividends and distributions, as our board of directors may determine. In addition, following this offering, we expect to have shares of Series B preferred stock and Series D preferred stock outstanding. See "Description of Capital Stock." The terms of one or more classes or series of our preferred stock could adversely impact the voting power or value of our Class A common stock. For example, we might grant holders of a class or series of our preferred stock the right to elect some number of our directors in all events or on the happening of specified events or the right to veto specified transactions. Similarly, the repurchase or redemption rights or liquidation preferences we might assign to holders of our preferred stock could affect the residual value of our Class A common stock.

***No market currently exists for our Class A common stock and we cannot assure you that an active market will develop for such stock.***

Prior to this offering, there has been no public market for our Class A common stock. The initial public offering price for our Class A common stock has been determined through negotiations among us and the representatives of the underwriters and may not be indicative of the market price of our Class A common stock after this offering or to any other established criteria of the value of our business. If you purchase shares of our Class A common stock, you may not be able to resell those shares at or above the initial public offering price. We cannot predict the extent to which investor interest in us will lead to the development of an active trading market on the NYSE or otherwise or how liquid that market might become. An active public market for our Class A common stock may not develop or be sustained after this offering. If an active public market does not develop or is not sustained, it may be difficult for you to sell your shares of Class A common stock at a price that is attractive to you or at all.

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***We cannot assure you that our stock price will not decline or not be subject to significant volatility after this offering.***

The market price of shares of Class A common stock could be subject to significant fluctuations after this offering. The price of our stock may change in response to fluctuations in our results of operations in future periods and also may change in response to other factors, including factors specific to companies in our industry, many of which are beyond our control. As a result, our share price may experience significant volatility and may not necessarily reflect the value of our expected performance and may cause our stockholders to incur losses.

Among the factors that could affect our stock price are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in laws or regulations applicable to our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• speculation about our business or industry in the press or the investment community;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• price and volume fluctuations in the overall stock market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• volatility in the market price and trading volume of companies in our industry or companies that investors
consider comparable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• share price and volume fluctuations attributable to inconsistent trading levels of our shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales of Class A common stock by us or our significant stockholders, officers and directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the expiration or waiver of the lock-up provision contained in the lock-up agreements and our amended and restated certificate of incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the development and sustainability of an active trading market for shares of our Class A common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the public's response to press releases or other public announcements by us or others, including our
filings with the SEC, announcements relating to litigation or changes to our key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effectiveness of our internal controls over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• variations in our quarterly or annual results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in our earnings estimates (if provided) or differences between our actual results of operations and those
expected by investors and analysts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the contents of published research reports about us or our industry or the failure of securities analysts to
cover our Class A common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions by institutional stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in our capital structure, such as future issuances of debt or equity securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our entry into new markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax developments in the United States or other markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• strategic actions by us or our competitors, such as acquisitions, significant contracts, dispositions, strategic
relationships, joint ventures, capital commitments or restructurings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting principles.

Further, the stock markets have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations can be unrelated or disproportionate to the operating performance of those companies. In addition, the stock prices of many energy companies have experienced wide fluctuations that have often been unrelated to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political and market conditions such as recessions, interest rate changes or international currency fluctuations, may cause the market price of shares of our Class A common stock to decline.

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We cannot assure you that you will be able to resell any of your shares of Class A common stock at or above the initial public offering price. The initial public offering price will be determined by negotiations between us and the representatives of the underwriters and may not be indicative of prices that will prevail in the trading market, if a trading market develops, after this offering. If the market price of shares of Class A common stock after this offering does not exceed the initial public offering price, you may not realize any return on your investment and may lose some or all of your investment.

***Our amended and restated certificate of incorporation will designate the Court of Chancery of the State of Delaware and the federal district courts of the United States as the sole and exclusive forums for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or other employees.***

These choice of forum provisions may limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers, employees or other stockholders, which may discourage such lawsuits. While the Delaware courts have determined that such choice of forum provisions are facially valid, a stockholder may nevertheless seek to bring an action in a venue other than those designated in the exclusive forum provisions. In such instance, we would expect to assert the validity and enforceability of our exclusive forum provisions, which may require significant additional costs associated with resolving such action in other jurisdictions, and there can be no assurance that the provisions will be enforced by a court in those other jurisdictions. If a court were to find that the exclusive forum provision in our amended and restated certificate of incorporation to be inapplicable or unenforceable in an action, we may incur further significant additional costs associated with resolving the dispute in other jurisdictions, which could have a material adverse effect on our business, financial condition and results of operations.

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***Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.***

Our amended and restated certificate of incorporation and amended and restated bylaws will provide that we will indemnify our directors and officers, in each case, to the fullest extent permitted by Delaware law. Pursuant to our certificate of incorporation, our directors will not be liable to us or any stockholders for monetary damages for any breach of fiduciary duty, except (i) for acts that breach his or her duty of loyalty to us or our stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, (iii) pursuant to Section 174 of the DGCL, which provides for liability of directors for unlawful payments of dividends of unlawful stock purchase, or (iv) for any transaction from which the director derived an improper personal benefit. Our amended and restated bylaws will also require us, if so requested, to advance expenses that such director or officer incurred in defending or investigating a threatened or pending action, suit or proceeding, provided that such person will return any such advance if it is ultimately determined that such person is not entitled to indemnification by us. Any claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.

***As a public reporting company, we will be subject to rules and regulations established from time to time by the SEC regarding our disclosure controls and procedures and internal control over financial reporting. If we fail to establish and maintain effective disclosure controls and procedures and internal control over financial reporting, we may not be able to accurately report our financial results, or report them in a timely manner.***

As a public reporting company, we will be subject to the rules and regulations established from time to time by the SEC and the national securities exchange on which our securities are listed. These rules and regulations require, among other things, that we establish and periodically evaluate procedures with respect to our internal control over financial reporting. Reporting obligations as a public company are likely to place a considerable strain on our financial and management systems, processes and controls, as well as on our personnel.

In addition, upon becoming a public company, we will be required to comply with the Sarbanes-Oxley Act, which requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting and, pursuant to Section 404 of the Sarbanes-Oxley Act, furnish a report by management on the effectiveness of our internal control over financial reporting in our second annual report. However, as discussed above, for as long as we are an emerging growth company under the JOBS Act, our independent registered public accounting firm will not be required to attest to the effectiveness of our internal control over financial reporting pursuant to Section 404. We could be an emerging growth company for up to five years. An independent assessment of our internal control over financial reporting could detect problems that our management's assessment might not. The process of reviewing and improving our internal controls is both costly and challenging and may also require substantial attention from our management team, which could negatively impact other matters that are important to our business.

Although management did not, and was not required to, conduct a formal assessment of internal control over financial reporting as of December 31, 2025, as a result of the Misstatement and the Restatement, the Company identified certain material weaknesses in its internal control over financial reporting. As a result of the material weaknesses in internal control over financial reporting, our disclosure controls and procedures were not effective at a reasonable assurance level as of December 31, 2025. Management will be implementing changes to strengthen our internal controls and remediate the material weaknesses. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Internal Controls and Procedures—Material Weaknesses in Internal Control over Financial Reporting" for additional information related to the material weaknesses in internal control over financial reporting and our related remediation activities.

If our senior management is unable to conclude that we have effective disclosure controls and procedures and internal control over financial reporting, or to certify the effectiveness of such controls, and our independent registered public accounting firm cannot render an unqualified opinion on management's assessment and the effectiveness of our internal control over financial reporting at such time as it is required to do so and material

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weaknesses in our internal control over financial reporting are identified, we could be subject to regulatory scrutiny, a loss of public and investor confidence and litigation from investors and stockholders, which could have a material adverse effect on our business and our stock price. In addition, if we do not maintain adequate financial and management personnel, processes and controls, we may not be able to manage our business effectively or accurately report our financial performance on a timely basis, which could cause a decline in the price of shares of Class A common stock and have a material adverse effect on our business, financial condition and results of operations. Failure to comply with the Sarbanes-Oxley Act could potentially subject us to sanctions or investigations by the SEC, the exchange upon which our securities are listed or other regulatory authorities, which would require additional financial and management resources.

***If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.***

The trading market for our Class A common stock will be influenced by the research and reports that industry or securities analysts publish about us or our business. We do not currently have and may never obtain research coverage by securities and industry analysts. If no securities or industry analysts commence coverage of us, the trading price for our Class A common stock would be negatively impacted. If we obtain securities or industry analyst coverage and if one or more of these analysts cease coverage of our company or fails to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline. Moreover, if our results of operations do not meet the expectations of the investor community, or one or more of the analysts who cover our company downgrade our stock, our stock price could decline. As a result, you may not be able to sell shares of our Class A common stock at prices equal to or greater than the initial public offering price.

***Becoming a public company will significantly increase our compliance costs and require the expansion and enhancement of a variety of financial and management control systems and infrastructure and the hiring of additional qualified personnel.***

Prior to this offering, we have not been subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Act or the other rules and regulations of the SEC, or any securities exchange relating to public companies. We are working with our legal, independent accounting and financial advisors to identify those areas in which changes should be made to our financial and management control systems to manage our growth and our obligations as a public company. These areas include financial planning and analysis, tax, corporate governance, accounting policies and procedures, internal controls, internal audit, disclosure controls and procedures and financial reporting and accounting systems. We have made, and will continue to make, significant changes in these and other areas and have begun incurring expenses in preparation for becoming a public company. The expenses that will be required in order to adequately prepare for being, and those required to operate as, a public company could be material. Compliance with the various reporting and other requirements applicable to public companies will also require considerable time and attention of management and we could be required to hire additional qualified personnel into our existing finance, legal, human resources and operations departments to meet such compliance needs.

***The requirements of being a public company may strain our resources, divert management's attention and affect our ability to attract and retain qualified board members and officers, which may divert from our business operations.***

As a public company, we are subject to the reporting requirements of the Exchange Act, the listing requirements of the national securities exchange on which our securities are listed and other applicable securities rules and regulations. Compliance with these rules and regulations will increase our legal and financial compliance costs, strain our resources, make some activities more difficult, time-consuming or costly and increase demand on our systems, resources, management and employees. As a public company, we will be required to enhance our investor relations, legal, financial and tax reporting, internal audit, legal, governance, investor relations and

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corporate communications functions. The Exchange Act requires, among other things, that we file annual, quarterly and current reports with respect to our business and results of operations and maintain effective disclosure controls and procedures and internal control over financial reporting. To maintain and, if required, improve our disclosure controls and procedures and internal control over financial reporting to meet this standard, significant resources and management oversight may be required. As a result, management's attention may be diverted from other business concerns, which could have a material adverse effect on our business, financial condition and results of operations.

We also expect that being a public company will make it more expensive for us to obtain director and officer liability insurance, and we may be required to choose between reduced coverage and substantially higher costs in order to obtain coverage. These factors could make it more difficult for us to attract and retain qualified executive officers and members of our board of directors, particularly to serve on our audit committee and compensation committee.

***Future sales and issuances of our Class A common stock or rights to purchase our Class A common stock (or other equity securities or securities convertible into our Class A common stock), or the perception that future sales by us or our other existing stockholders in the public market following this offering could cause dilution of the percentage of ownership of our stockholders, could cause the market price for our Class A common stock to decline.***

After this offering, the sale of shares of our Class A common stock in the public market, or the perception that such sales could occur, could harm the prevailing market price of shares of our Class A common stock. These sales, or the possibility that these sales may occur, also might make it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate.

Upon consummation of this offering, we will have a total of shares of our Class A common stock outstanding (or shares if the underwriters exercise in full their option to purchase additional shares). Of the outstanding shares, the shares sold in this offering (or shares if the underwriters exercise in full their option to purchase additional shares) will be freely tradable without restriction or further registration under the Securities Act, other than any shares held by our affiliates. Any shares of our Class A common stock held by our affiliates will be eligible for resale pursuant to Rule 144 under the Securities Act, subject to the volume, manner of sale, holding period and other limitations of Rule 144.

We and our directors and executive officers will enter into lock-up agreements pursuant to which we and they will be subject to certain restrictions with respect to the offer, sale or disposition or hedge of any of our securities for a period of 180 days following the date of this prospectus. Additionally, our amended and restated certificate of incorporation will provide that, subject to certain exceptions, all of the shares of Class A common stock held by the Legacy Common Stock Investors may not be sold, pledged, transferred or otherwise disposed of for 365 days following the consummation of this offering, or such shorter period as determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering. Upon the expiration of the lock-up restrictions, shares held by our directors, executive officers and the Legacy Common Stock Investors will be eligible for resale in the public market subject, in the case of shares held by our affiliates, to the volume, manner of sale, holding period and other limitations of Rule 144. The representatives of the underwriters may, in their sole discretion and at any time without notice, release all or any portion of the shares or securities subject to any such lock-up restrictions. See "Underwriting" and "Shares Eligible for Future Sale" for a description of these lock-up restrictions.

In addition, in connection with this offering, we intend to enter into the Registration Rights Agreement with certain of our Continuing Equity Owners. The Registration Rights Agreement will provide such holders with certain registration rights in respect of shares of our Class A common stock held by them, subject to certain conditions. Registration of any of these outstanding shares of Class A common stock would result in such shares becoming freely tradable without compliance with Rule 144 upon effectiveness of the registration statement.

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Such Continuing Equity Owners party to the Registration Rights Agreement will, subject to the terms of the agreement, determine the timing and amount of sales of their Class A common stock, and such sales could be executed at a time or times that otherwise may not align with our interests and the interests of our other stockholders. See "Certain Relationships and Related Party Transactions" and "Shares Eligible for Future Sale" for a description of these registration rights.

In connection with this offering, we intend to file a registration statement with the SEC on Form S-8 providing for the registration of shares of our Class A common stock issued or reserved for issuance under new and existing equity incentive plans. Subject to the satisfaction of vesting conditions and the expiration of lock-up restrictions, shares issued pursuant to or registered under the registration statement on Form S-8 will be available for resale immediately in the public market without restriction.

We cannot predict the size of future issuances of our Class A common stock or the effect, if any, that future issuances and sales of shares of our Class A common stock will have on the market price of our Class A common stock. In the future, we may issue securities in connection with investments, acquisitions or capital raising activities. In particular, the number of shares of our Class A common stock issued in connection with an investment or acquisition, or to raise additional equity capital, could constitute a material portion of our then-outstanding shares of our Class A common stock. Any such issuance of additional securities in the future, or the perception that such issuances could occur, may result in additional dilution to you, or may adversely impact the price of our Class A common stock.

***If you purchase shares of our Class A common stock sold in this offering, you will incur immediate and substantial dilution.***

If you purchase Class A common stock in this offering, you will pay more for your shares than the amounts paid by existing stockholders for their shares. As a result, you will incur immediate dilution of $ per share, representing the difference between the assumed initial public offering price of $ per share (the midpoint of the estimated initial public offering price range set forth on the cover of this prospectus) and our pro forma net tangible book value (deficit) per share after giving effect to this offering. See "Dilution."

***Increases in interest rates may cause the market price of our Class A common stock to decline.***

An increase in interest rates may cause a corresponding decline in demand for equity investments in general, and in particular, for yield-based equity investments such as our Class A common stock. Any such increase in interest rates or reduction in demand for our Class A common stock resulting from other investment opportunities may cause the trading price of our Class A common stock to decline.

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**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

The information in this prospectus includes "forward-looking statements." All statements, other than statements of historical fact, included in this prospectus regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this prospectus, the words "may," "could," "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions and the negative of such words and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Such statements may be influenced by factors that could cause actual outcomes and results to differ materially from those projected. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the heading "Risk Factors" included in this prospectus.

The following important factors, in addition to those discussed elsewhere in this prospectus, could affect the future results of the energy industry in general, and our company in particular, and could cause actual results to differ materially from those expressed in such forward-looking statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our revenues are primarily derived from mineral and royalty payments that are based on the price of natural gas,
NGL and oil which is subject to volatility due to factors beyond our control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lower natural gas, NGL and oil prices or negative adjustments of natural gas, NGL and oil prices may result in
significant impairment charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our derivative activities may limit the cash flows received from natural gas and oil sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the development of our properties relies exclusively on our third-party operators and these operators may fail to
develop our existing inventory of mineral and royalty acreage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• drilling for and producing natural gas, NGLs and oil are high-risk activities with many uncertainties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our third-party operators may fail to drill sufficient wells to hold acreage before lease expiration which may
result in loss of lease and prospective drilling opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may experience delays in the receipt of royalty payments and may not be able to terminate leases with
defaulting lessees if our third-party operators declare bankruptcy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may incur losses as a result of title defects or other issues in the properties we own;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a limited number of third-party operators currently generate a significant portion of our revenue and accounts
receivable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the substantial majority of our business is concentrated in the Appalachian and Haynesville Basins, making us
vulnerable to risks associated with such geographic concentration of our assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are subject to risks related to our wells where we are a non-operating working interest owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our future success depends on replacing reserves through acquisitions and there may be constraints in our ability
to finance acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have experienced significant business and portfolio growth in a short time, and our significant growth rates
and financial results may not be sustainable or indicative of future financial performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any acquisition of additional mineral and royalty interests that we complete will be subject to substantial
risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure to retain our key personnel or attract additional qualified personnel could negatively affect our
business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our estimated proved reserves are based on many assumptions that may prove to be inaccurate;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our identified drilling locations are susceptible to uncertainties that could materially alter the occurrence or
timing of their drilling and there is no guarantee that our estimates will be materially consistent with actual drilling activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we rely on our third-party operators, other third parties and government databases for information regarding our
assets and such information may be incorrect, incomplete or lost;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be subject to information technology system failures, network disruptions, cyber-attacks or other breaches
in data security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• declining general economic, business or industry conditions, which could have a material adverse effect on our
business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our industry is highly competitive, and competitive pressures could negatively affect our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exported liquid natural gas could fail to be a competitive source of energy for the United States or
international markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our growth strategy is partly dependent upon the continued expansion of electricity demand driven by AI data
center development and expectations regarding increased demand may not materialize;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the unavailability, high cost or shortages of equipment, raw materials, supplies or personnel for our third-party
operators related to developing and operating our properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the marketability of natural gas, NGLs and crude oil is dependent on the availability of equipment and
transportation facilities that is outside of our and our third-party operators' control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our third-party operators are subject to significant governmental regulations, and governmental authorities can
delay or deny permits and approvals or change legal requirements governing our business, which could restrict their operations, increase costs of conducting our business, and delay our implementation of, or cause us to change, our business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the development and enactment of climate change legislation as well as increased attention to sustainability may
impact our business or the business of our third-party operators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future legislative or regulatory changes may have a material adverse effect on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our use of borrowings to finance our business exposes us to risks and any future indebtedness we may incur could
further increase the risks associated with our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delaware law and anti-takeover provisions in our governing documents, to be adopted upon the consummation of this
offering, may have the effect of delaying or preventing a change of control or changes in our management and may deprive our investors of the opportunity to receive a premium for their shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to pay regular dividends to our stockholders may be limited by our financial condition, results of
operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness and other factors and restrictions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirements of being a public company may strain our resources, divert management's attention and
affect our ability to attract and retain qualified board members and officers.

Should one or more of the risks or uncertainties described in this prospectus occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking

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statements we make in this report are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved or occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

Reserve engineering is a process of estimating underground accumulations of natural gas and oil that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of natural gas and oil that are ultimately recovered.

All forward-looking statements, expressed or implied, included in this prospectus are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this prospectus.

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**OUR ORGANIZATIONAL STRUCTURE** 

In connection with the consummation of the offering, we will consummate the Transactions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will amend and restate our certificate of incorporation (our "amended and restated certificate of
incorporation") to, among other things, (i) change our name to "WhiteHawk Minerals Corp."; (ii) provide for the Common Stock Reclassification; (iii) provide for an adjustment to the number of authorized shares such
that our authorized capital stock shall consist of 250,000,000 shares of Class A common stock, par value $0.0001 per share, 100,000,000 shares of Class B common stock, par value $0.0001 per share, and 10,000,000 shares of preferred stock,
par value $0.0001 per share; (iv) authorize our board of directors to establish and issue one or more series of preferred stock from time to time and to fix the rights, preferences, privileges and restrictions thereof; (v) provide for the
creation of Class B common stock in connection with our anticipated Up-C structure, with shares of Class B common stock to be issued to Continuing Equity Owners, with each share of Class B common stock entitled to one vote per share
and no economic rights; and (vi) establish that Legacy Common Stock Investors are prohibited from selling their Class A common stock or related securities for 365 days following the consummation of this offering, or such shorter period as
determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• WhiteHawk OpCo will enter into an amended and restated limited partnership agreement (the "OpCo
Agreement") to, among other things, (i) appoint OP GP as the sole general partner of WhiteHawk OpCo with the authority to manage and control the business and affairs of WhiteHawk OpCo, (ii) authorize the issuance of OpCo Interests to us
in exchange for the interests we own in WhiteHawk OpCo prior to this offering as well as the proceeds from this offering, (iii) provide the Continuing Equity Owners with the right to require WhiteHawk OpCo to redeem their OpCo Interests for, at
our election (determined solely by our independent directors who are disinterested), cash or newly-issued shares of our Class A common stock on a one-for-one basis (subject to customary adjustments), (iv) provide that, in connection with any
redemption or exchange of OpCo Interests, if applicable, a corresponding number of shares of Class B common stock held by the redeeming or exchanging Continuing Equity Owner will automatically be transferred to us for no consideration and canceled,
and (v) authorize the issuance to us of such number of Series B preferred units in WhiteHawk OpCo equal to the number of shares of our Series B preferred stock outstanding upon the consummation of the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will enter into the Registration Rights Agreement with certain Continuing Equity Owners, as further described
in "Certain Relationships and Related Person Transactions;"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in connection with and in order to effectuate the Internalization, the Contribution Agreement will be entered
into by the parties thereto, pursuant to which, among other things, OpCo will acquire all of the outstanding equity interests in ManagementCo from the Management Owners in exchange for OpCo Interests and shares of Class B common stock. Prior to
the closing of this offering, ManagementCo, as our external manager, provided certain management, acquisition, disposition and oversight functions with respect to us and WhiteHawk OpCo. As a result of the Internalization, ManagementCo will become a
wholly owned subsidiary of WhiteHawk OpCo and we will become internally managed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will issue     shares of our Class A common stock to the purchasers in this offering (or
    shares if the underwriters exercise in full their option to purchase additional shares of Class A common stock) in exchange for net proceeds of approximately $ million (or approximately
$ million if the underwriters exercise in full their option to purchase additional shares of Class A common stock) based upon an assumed initial public offering price of $ per share (which is the
midpoint of the estimated price range set forth on the cover page of this prospectus), less the underwriting discount; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will use the net proceeds from this offering to purchase newly issued OpCo Interests for approximately
$ million directly from WhiteHawk OpCo at the initial public offering price less the underwriting discount.

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Immediately following the consummation of the Transactions (including this offering):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will be a holding company and our principal asset will consist of OpCo Interests we acquire or are otherwise
issued directly from WhiteHawk OpCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as the sole member of OP GP, the sole general partner of WhiteHawk OpCo, we will control the business and affairs
of WhiteHawk OpCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will own, directly or indirectly,     OpCo Interests, representing approximately  % of
the economic interest in WhiteHawk OpCo (or     OpCo Interests, representing approximately  % of the economic interest in WhiteHawk OpCo if the underwriters exercise in full their option to purchase additional shares of
Class A common stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will own a number of Series B preferred units in WhiteHawk OpCo equal to the number of shares of
Series B Preferred Stock outstanding after the consummation of the Transactions, representing 100% of the preferred units of WhiteHawk OpCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will no longer have any shares of Series D preferred stock outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Continuing Equity Owners will own (i)     OpCo Interests, representing approximately
 % of the economic interest in WhiteHawk OpCo (or     OpCo Interests, representing approximately  % of the economic interest in WhiteHawk OpCo if the underwriters exercise in full their option to purchase additional
shares of Class A common stock) and (ii)     shares of our Class B common stock, representing approximately  % of the combined voting power of all of our common stock (or     shares of our
Class B common stock, representing approximately  % if the underwriters exercise in full their option to purchase additional shares of Class A common stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the purchasers in this offering will own (i)     shares of our Class A common stock (or
    shares of our Class A common stock if the underwriters exercise in full their option to purchase additional shares of Class A common stock), representing approximately  % of the combined voting power of all of
our common stock and  % of the economic interest in us (or approximately  % of the combined voting power and  % of the economic interest if the underwriters exercise in full their option to purchase additional shares of
Class A common stock), and (ii) through our ownership of OpCo Interests, indirectly will hold approximately  % of the economic interest in WhiteHawk OpCo (or approximately  % of the economic interest in WhiteHawk OpCo if the
underwriters exercise in full their option to purchase additional shares of Class A common stock).

The foregoing description of the Transactions does not give effect to OpCo Interests or shares of our Class B common stock that may be issued as a part of the Earnout Amount (as defined herein), as more fully described in the section titled "Certain Relationships and Related Party Transactions—Internalization—Earnout."

Following the Transactions, including this offering, we will control the management of WhiteHawk OpCo through our ownership of OP GP. As a result, we will consolidate WhiteHawk OpCo in our consolidated financial statements.

Unless otherwise indicated, this prospectus assumes the shares of Class A common stock are offered at $ per share (the midpoint of the estimated price range set forth on the cover page of this prospectus). For more information regarding the impact of the initial offering price on the share information included throughout this prospectus, see "The Offering."

Our corporate structure following this offering, as described below, is an Up-C structure. The Up-C structure will allow the Continuing Equity Owners to retain their equity ownership in WhiteHawk OpCo following the Transactions and to continue to realize tax benefits associated with owning interests in an entity that is treated as a partnership, or "flow-through" entity, for U.S. federal income tax purposes. Investors in this offering will, by contrast, hold their equity ownership in us, a Delaware corporation that is a domestic corporation for U.S. federal income tax purposes, in the form of shares of Class A common stock. One of the tax benefits to the Continuing

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Equity Owners associated with this structure is that future taxable income of WhiteHawk OpCo that is allocated to the Continuing Equity Owners will be taxed on a flow-through basis and, therefore, will not be subject to corporate taxes at the entity level. Moreover, the Up-C structure permits the Continuing Equity Owners to defer the recognition of taxable gain on their OpCo Interests until they elect to exercise their redemption right (rather than recognizing such gain at the time of this offering). Additionally, because the Continuing Equity Owners may at their election have their OpCo Interests redeemed by WhiteHawk OpCo (or at our option, directly exchanged by us) for newly issued shares of our Class A common stock on a one-for-one basis (subject to customary adjustments, including for stock splits, stock dividends, and reclassifications) or, at our option, for cash, the Up-C structure also provides the Continuing Equity Owners with potential liquidity that holders of non-publicly traded limited liability companies are not typically afforded. Upon any such redemption or exchange of OpCo Interests for shares of Class A common stock, the Company may benefit from certain tax attributes, including potential increases in tax basis that may reduce the amount of tax that would otherwise be payable by us. In connection with any such redemption or exchange of OpCo Interests, a corresponding number of shares of Class B common stock held by the relevant Continuing Equity Owner will automatically be transferred to us for no consideration and be canceled.

For more information regarding the Transactions and our structure, see "Our Organizational Structure."

**Organizational Structure**

The diagram below depicts our organizational structure after giving effect to the Transactions, including this offering and proposed use of proceeds, assuming no exercise by the underwriters of their option to purchase additional shares of Class A common stock and does not give effect to the issuance of any OpCo Interests or shares of Class B common stock in respect of the Earnout Amount.

![LOGO](g86452g06u13.jpg)

(1) Excludes any Continuing Equity Owners who hold Class A common stock as a result of the Common Stock
Reclassification (in addition to OpCo Interests and Class B common stock).

(2) Legacy Common Stock Investors will be prohibited from selling their Class A common stock or related securities
for up to 365 days following the consummation of this offering, or such shorter period as determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering.

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(3) We intend to use a portion of the proceeds from this offering to redeem any shares of Series D preferred
stock outstanding. See "Use of Proceeds." To the extent the proceeds of offering are insufficient to redeem the total aggregate principal amount of Series D preferred stock outstanding, the Company intends to use cash on hand to
fully redeem the total aggregate principal amount of Series D preferred stock outstanding. As a result, following this offering, the only outstanding preferred stock outstanding will be the Series B preferred stock.

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**USE OF PROCEEDS** 

We estimate that the net proceeds to us from our sale of shares of Class A common stock in this offering will be approximately $, after deducting underwriting discounts and commissions and estimated expenses payable by us in connection with this offering. The underwriters also have an option to purchase up to an additional shares of Class A common stock from us. We estimate that the net proceeds to us, if the underwriters exercise their right to purchase the maximum of additional shares of Class A common stock from us, will be approximately $, after deducting underwriting discounts and commissions and estimated expenses payable by us in connection with this offering. This assumes a public offering price of $ per share of Class A common stock, which is the midpoint of the price range set forth on the cover of this prospectus.

We intend to use the net proceeds from this offering, as well as cash on hand, as follows: (i) approximately $ million to prepay, in whole or in part, the outstanding principal of our Senior Notes, (ii) approximately $ million for the redemption of all of the outstanding shares of our Series D preferred stock, (iii) approximately $ million for the redemption of a portion of our outstanding Series B preferred stock, and (iv) the remainder for other general corporate purposes, including the payment of a Liquidity Incentive Fee of $ million to upon completion of this offering. See "Certain Relationships and Related Person Transactions—Investment Management Agreement."

We are a holding company and our only assets after consummation of this offering will be our ownership of OpCo Interests and membership units in OP GP. Accordingly, we intend to use the gross proceeds from this offering to purchase newly issued OpCo Interests from WhiteHawk OpCo at a price per unit equal to the initial public offering price per share of Class A common stock, less estimated underwriting discounts and commissions. In the event the underwriters exercise their option to purchase additional shares of Class A common stock, we intend to use any such additional proceeds in the same manner.

As of December 31, 2025, we had $237.7 million of principal outstanding under our Senior Notes. Our Senior Notes bear interest at the adjusted term SOFR rate plus 6.50%, which, as of December 31, 2025, resulted in an interest rate of 10.80% per annum. The Senior Notes mature on June 23, 2030.

Assuming no exercise of the underwriters' option to purchase additional shares, a $1.00 increase (decrease) in the assumed initial public offering price of $ per share (the midpoint of the price range set forth on the cover of this prospectus) would increase (decrease) the net proceeds to us from this offering by $, assuming the number of shares offered by us, as set forth on the cover of this prospectus, remains the same and after deducting underwriting discounts and commissions and estimated expenses payable by us.

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**DIVIDEND POLICY** 

We initially intend to make a significant portion of our Cash Available for Distribution available for dividends. Holders of our Class B common stock are not entitled to participate in any dividends declared by our Board. We aim to balance the return of capital to investors with the selective allocation of capital toward acquisitions that we believe will be accretive to stockholder value while preserving a strong balance sheet through varying commodity price environments. In order to effect this approach, we intend to return capital to our stockholders through quarterly dividends, after retaining cash for debt service, our working capital needs and acquisition activities.

While we expect to pay regular dividends in accordance with this financial philosophy, we have not adopted a formal written dividend policy to pay a fixed amount of cash regularly or to pay any particular amount based on the achievement of, or derivable from, any specific financial metrics, including Cash Available for Distribution. The actual amount of any dividends we pay may fluctuate depending on our cash flow needs, which may be impacted by potential acquisition opportunities and the availability of financing alternatives, the need to service any indebtedness or other liquidity needs and general industry and business conditions, including the impact of commodity prices and the pace of the development of our properties by our third-party operators. Our payment of dividends will be at the sole discretion of our board of directors, which may change our dividend philosophy at any time. Our board of directors will take into account:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic and business conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our financial condition and operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our cash flows from operations and current and anticipated cash needs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legal, tax, regulatory and contractual restrictions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• such other factors as our board of directors may deem relevant.

Additionally, our ability to pay dividends is restricted by covenants governing our Senior Notes and the Revolving Credit Facility. For a description of the covenants governing our Senior Notes and those contained in the Revolving Credit Facility that restrict our ability to pay dividends, see "Description of Material Indebtedness." Additionally, our ability to pay dividends may be restricted by the terms of any future credit agreement or any future debt or preferred equity securities of us. Therefore, there can be no assurance that we will pay any dividends to holders of our Class A common stock, or as to the amount of any such dividends. See "Risk Factors—Risks Related to this Offering and Ownership of Our Class A Common Stock—We intend to pay regular dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and may be limited by our financial condition, results of operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness and other factors and restrictions our board of directors deems relevant."

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**CAPITALIZATION** 

The following table sets forth our cash and cash equivalents and our capitalization as of December 31, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an actual basis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as adjusted to give effect to (i) the Transactions, (ii) the sale of    shares
of our Class A common stock in this offering, at an assumed public offering price of $ per share, which is the midpoint of the price range set forth on the cover of this prospectus, after deducting the underwriting
discount and estimated offering expenses payable by us, (iii) the application of the net proceeds received by us from this offering as described under "Use of Proceeds" (iv) our entry into the Revolving Credit Facility and the
amendment to the Note Purchase Agreement (each as described under "Description of Material Indebtedness"), and (v) the use, if any, of cash on hand to fully redeem the outstanding aggregate principal of the Series D Preferred Stock.

The following table should be read in conjunction with "Use of Proceeds," "Unaudited Pro Forma Condensed Consolidated Combined Financial Information," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Description of Material Indebtedness," "Description of Capital Stock" and the audited consolidated financial statements and notes thereto included elsewhere in this prospectus.

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| | | |
|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Actual** | **As<br>Adjusted<sup>(1)</sup>** |
|  | **(in thousands, except par<br>and share amounts)** | **(in thousands, except par<br>and share amounts)** |
|  Cash and cash equivalents | $28989 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |
|  Total Debt<sup>(2)</sup>: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior Notes | $237700 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revolving Credit Facility |  |  |
|  Mezzanine equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B Preferred stock, $0.0001 par value; shares authorized; issued and outstanding | 27662 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series D Preferred stock, $0.0001 par value; shares authorized; issued and outstanding<sup>(3)</sup> |  |  |
|  Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock, par value $0.0001 per share; no shares authorized, issued and outstanding, actual; shares authorized, shares issued and outstanding, WhiteHawk Income Corporation pro forma |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B common stock, par value $0.0001 per share; no shares authorized, issued and outstanding, actual; shares authorized, shares issued and outstanding, WhiteHawk Income Corporation pro forma |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock, $0.0001 par value; 6,000,000 shares authorized; 6,518,383 shares issued and outstanding<sup>(4)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class T common stock, $0.0001 par value; 6,000,000 shares authorized; 66,830 shares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class I common stock, $0.0001 par value; 6,000,000 shares authorized; 8,050,883 shares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital | 223900 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (15146) |  |
|  Total stockholders' equity | 208754 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total capitalization | $— | $— |

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(1) Each $1.00 increase or decrease in the public offering price per share would increase or decrease, as
applicable, our net proceeds, after deducting the underwriting discount and estimated offering expenses payable by us, by $ million (assuming no exercise of the

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underwriters' option to purchase additional shares). Similarly, an increase or decrease of one million shares of Class A common stock sold in this offering by us would increase or decrease, as applicable, our net proceeds, after deducting the underwriting discount and estimated offering expenses payable by us, by $ million, based on an assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover of this prospectus.

(2) For a description of our debt, see "Description of Material Indebtedness."

(3) The Company intends to use a portion of the proceeds from this offering to redeem any shares of Series D
Preferred Stock outstanding. See "Use of Proceeds." To the extent the proceeds of this offering are insufficient to redeem the total aggregate principal amount of Series D Preferred Stock outstanding, the Company intends to use cash on
hand to fully redeem the total aggregate principal amount of Series D Preferred Stock outstanding.

(4) Represents pre-Transaction Class A common stock issued and outstanding prior to this offering.

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**DILUTION** 

If you invest in our Class A common stock in this offering, your ownership interest will be immediately diluted to the extent of the difference between the initial public offering price per share of our Class A common stock and the pro forma net tangible book value per share of our Class A common stock upon the consummation of this offering. Dilution results from the fact that the per share offering price of our Class A common stock is in excess of the pro forma net tangible book value per share attributable to the Class A common stock held by the existing equity holders.

The Continuing Equity Owners will own OpCo Interests after the Transactions. Because the Continuing Equity Owners do not have any right to receive distributions or dividends from us with respect to any Class B common stock or OpCo Interests held by them, we have presented dilution in pro forma net tangible book value per share both before and after this offering assuming that all of the holders of OpCo Interests (other than us) had their OpCo Interests redeemed or exchanged for newly-issued shares of Class A common stock on a one-for-one basis (rather than for cash) and the transfer to us and cancellation for no consideration of all of their shares of Class B common stock (which are not entitled to receive distributions or dividends, whether cash or stock from us). In order to more meaningfully present the dilutive impact on the investors in this offering. We refer to the assumed redemption or exchange of all OpCo Interests for shares of Class A common stock as described in the previous sentence as the "Assumed Redemption."

Our actual net tangible book value as of , 2026 was approximately $, or $ per share of Class A common stock on a fully diluted basis. Actual net tangible book value represents the amount of total tangible assets less total liabilities, and actual net tangible book value per share represents actual net tangible book value divided by the number of shares of Class A common stock outstanding as of .

Our pro forma net tangible book value as of , 2026 was approximately $, or $ per share of Class A common stock on a fully diluted basis. Pro forma net tangible book value represents the amount of total tangible assets less total liabilities, and pro forma net tangible book value per share represents pro forma net tangible book value divided by the number of shares of Class A common stock outstanding after giving effect to the Transactions.

After giving effect to (i) the Transactions, (ii) the sale of shares of Class A common stock in this offering at the assumed initial public offering price of $ per share (the midpoint of the price range set forth on the cover of this prospectus) and (iii) the application of the net proceeds from this offering as described in "Use of Proceeds," our pro forma as adjusted net tangible book value as of , 2026 would have been $, or $ per share of Class A common stock. This amount represents an immediate increase in pro forma as adjusted net tangible book value of $ per share of Class A common stock to our existing equity holders and an immediate dilution in pro forma as adjusted net tangible book value of $ per share of Class A common stock to new investors in this offering.

The following table illustrates this dilution on a per share of Class A common stock basis given the assumptions above:

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| | |
|:---|:---|
|  Assumed initial public offering price per share | $|
|  Pro forma net tangible book value per share as of , 2026 | $|
|  Increase in pro forma net tangible book value per share attributable to new investors | $|
|  Pro forma as adjusted net tangible book value per share after this offering | $|
|  Dilution in net tangible book value per share to new investors in this offering | $|

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A $1.00 increase (decrease) in the assumed initial public offering price of $ per share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus, would increase (decrease) the pro forma net tangible book value per share after this offering by $ and dilution per share to new Class A common stock investors in this offering by $ assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the underwriting discount.

If the underwriters exercise in full their option to purchase additional shares of Class A common stock, the pro forma net tangible book value after the offering per share, the pro forma net tangible book value per share to existing stockholders and the dilution in pro forma net tangible book value to new investors would be unchanged, in each case assuming an initial public offering price of $ per share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus.

The following table summarizes, as of December 31, 2025, after giving effect to the Transactions (including this offering and proposed use of proceeds) and the Assumed Redemption, the number of shares of Class A common stock purchased from us, the total consideration paid, or to be paid, to us and the average price per share paid, or to be paid, by Continuing Equity Owners and by the new investors. The calculation below is based on an assumed initial public offering price of $ per share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus, before deducting the underwriting discount.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | **Average<br>Price**<br>**Per Share** |
|  | **Number** | **Percent** | **Percent** | **Percent** | **Average<br>Price**<br>**Per Share** |
|  Continuing Equity Owners% |  |  | $nan% |  | $|
|  Investors in this offering |  |  |  |  | $|
|  Total |  | 100.0% | $— | 100.0% |  |

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Each $1.00 increase (decrease) in the assumed initial public offering price of $ per share would increase (decrease) the total consideration paid by new investors and the total consideration paid by all stockholders by $, assuming the number of shares offered by us remains the same and after deducting the underwriting discount.

Except as otherwise indicated, the discussion and the tables above assume no exercise of the underwriters' option to purchase additional shares of Class A common stock. The number of shares of our Class A common stock outstanding after this offering as shown in the tables above is based on the number of shares outstanding as of December 31, 2025, after giving effect to the Transactions and the Assumed Redemption, and excludes shares of Class A common stock reserved for issuance under the 2026 Plan, including approximately shares of Class A common stock issuable pursuant to the settlement of restricted stock units which we will grant to certain of our directors, executive officers and other employees in connection with this offering. See "Executive Compensation."

To the extent any of these restricted stock units settle, there will be further dilution to new investors. To the extent all of such outstanding restricted stock units had vested in full and settled as of December 31, 2025, the pro forma net tangible book value per share after this offering would be $ and total dilution per share to new investors would be $.

If the underwriters exercise in full their option to purchase additional shares of Class A common stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the percentage of shares of Class A common stock held by the Continuing Equity Owners will decrease to
approximately    % of the total number of shares of our Class A common stock outstanding after this offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the number of shares of Class A common stock held by new investors in this offering will increase to
   , or approximately    % of the total number of shares of our Class A common stock outstanding after this offering.

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**UNAUDITED PRO FORMA CONDENSED CONSOLIDATED COMBINED FINANCIAL STATEMENTS** 

The following unaudited pro forma condensed consolidated combined financial statements (the "pro forma financial statements") present the historical consolidated financial statements of the Company, and the historical financial statements of PHX, adjusted to give effect to the PHX Acquisition. Additionally, the pro forma financial statements include adjustments associated with the Three Rivers Royalty Acquisition completed by WhiteHawk prior to the PHX Acquisition. On March 31, 2025, the Company purchased mineral and royalty interests in the Marcellus Shale from the TRR Seller. On June 23, 2025, WH Acquisition Corp. and Merger Sub closed on the PHX Merger Agreement and WH Acquisition Corp. fully acquired all of PHX, with PHX continuing as the surviving entity and a wholly owned indirect subsidiary of the Company.

The unaudited pro forma condensed consolidated combined balance sheet gives effect to the Transactions as if they had occurred on December 31, 2025. The PHX Acquisition and Three Rivers Royalty Acquisition are reflected in the historical consolidated balance sheet of WhiteHawk as of December 31, 2025, and, as such, no pro forma adjustments are made for such transactions in the unaudited pro forma condensed consolidated combined balance sheet. The unaudited pro forma condensed consolidated combined statement of operations for the year ended December 31, 2025 gives effect to the PHX Acquisition, the Three Rivers Royalty Acquisition and the Transactions as if each had occurred on January 1, 2025 (the "assumed date"). The pro forma financial statements contain certain reclassification adjustments to (i) conform the historical PHX financial statement presentation to the Company's financial statement presentation and (ii) conform certain of the Company's historical amounts to PHX's financial statement presentation.

The unaudited pro forma financial statements have been prepared in accordance with Article 11 of Regulation S-X as amended by the final rule, Release No. 33-10786, "Amendments to Financial Disclosures about Acquired and Disposed Businesses," using assumptions set forth in the notes to the unaudited pro forma financial statements. The pro forma financial statements have been adjusted to include transaction accounting adjustments in accordance with GAAP, linking the effects of the PHX Acquisition and the Three Rivers Royalty Acquisition and the adjustments to the PHX historical financial statements and the TRR Seller consolidated carve-out financial statement presentation to the historical consolidated financial statements of the Company. The Company has finalized purchase accounting for the PHX and TRR Seller acquisitions and conformed their accounting policies to those of the Company, and the accompanying unaudited pro forma condensed combined financial information reflects the final purchase price allocations recorded in the Company's audited consolidated financial statements for the year ended December 31, 2025, with only transaction accounting adjustments presented. The pro forma financial statements and related notes are presented for illustrative purposes only and should not be relied upon as an indication of the financial condition or the operating results that the Company would have achieved if the PHX Acquisition and the Three Rivers Royalty Acquisition had taken place on the assumed date.

The pro forma financial statements do not reflect future events that may have occurred after the consummation of the PHX Acquisition and the Three Rivers Royalty Acquisition, including, but not limited to, the anticipated realization of ongoing savings from potential operating efficiencies, asset dispositions, cost savings or economies of scale that may be achieved with respect to the combined operations. As a result, future results may vary significantly from the results reflected in the pro forma financial statements and should not be relied on as an indication of the Company's post-combination future results.

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**Unaudited Pro Forma Condensed Consolidated Combined Balance Sheet** 

**As of December 31, 2025** 

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| | | | |
|:---|:---|:---|:---|
|  | **Historical** | | |
|  | **WhiteHawk**<br>**Income**<br>**Corporation** |<br>**Transaction**<br>**Adjustments** |<br>**Pro Forma**<br>**Combined** |
|  | **(As Restated)** | | |
|  | **(in thousands, except par value and share<br>amounts)** | **(in thousands, except par value and share<br>amounts)** | **(in thousands, except par value and share<br>amounts)** |
|  **Assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $28989 |  | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 10176 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term derivative receivable | 5349 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 1410 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 45924 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas and oil mineral interests, net | 460586 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other property and equipment, net | 275 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 353 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $507138 |  | $|
|  **Liabilities, mezzanine equity and shareholders' equity:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $1177 |  | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 1158 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued dividends | 7516 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liability, current portion | 176 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior notes, current portion | 6275 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 16302 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt, net of unamortized debt issuance costs and current portion | 227985 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability | 21329 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligation | 316 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liability, net of current portion | 121 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term derivative liability | 4669 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 270722 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mezzanine equity: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B Preferred stock, $0.0001 par value; 400,000 shares authorized; 35,524 shares issued and outstanding on a historical and pro forma basis, respectively | 27662 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholders' equity: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock, $0.0001 par value; 7,000,000 shares authorized; 6,518,383 shares issued and outstanding on a historical basis and 250,000,000 shares authorized: shares issued and outstanding on a pro forma basis |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class T common stock, $0.0001 par value; 100,000 shares authorized; 66,830 and shares issued and outstanding on a historical and pro forma basis, respectively |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class I common stock, $0.0001 par value; 9,100,000 shares authorized; 8,050,883 and shares issued and outstanding on a historical and pro forma basis, respectively |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B common stock, $0.0001 par value, 100,000,000 shares authorized; shares issued and outstanding on a pro forma basis |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital | 223900 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings (accumulated deficit) | (15146) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity | 208754 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities, mezzanine equity and shareholders' equity | $507138 |  | $|

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**Unaudited Pro Forma Condensed Consolidated Combined Statement of Operations** 

**For the Year Ended December 31, 2025** 

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical** | | | **Historical** | | | | |
|  | **WhiteHawk<br>Income<br>Corporation** |<br>**Three Rivers<br>Royalty<br>Adjustments** |<br>**As Adjusted for<br>TRR<br>Acquisition** | **PHX Minerals** |<br>**PHX<br>Adjustments** |<br>**As Adjusted<br>for TRR<br>Acquisition<br>and PHX<br>Acquisition** |<br>**Transaction<br>Adjustments** |<br>**Pro Forma<br>Combined** |
|  | **(As Restated)** | | | | | | | |
|  **Revenues:** |  | **A** |  | **B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty revenue | $50075 | $5616 | $55691 | $19569 | $(3421) | $71839 |  | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on commodity derivative instruments | 16648 |  | 16648 | (596) |  | 16052 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus revenue | 872 |  | 872 | 471 |  | 1343 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 67595 | 5616 | 73211 | 19444 | (3421) | 89234 |  |  |
|  **Operating expenses:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease operating expenses |  |  |  | 560 **C** | (560) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transportation, gathering and marketing |  |  |  | 2138 **C** | (2138) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Production and ad valorem taxes |  |  |  | 723 **C** | (723) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 16585 |  | 16585 | 10854 |  | 27439 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 9966 |  | 9966 **E** |  |  | 9966 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 24237 |  | 24237 | 4907 **D** | 7307 | 36451 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 50788 |  | 50788 | 19182 | 3886 | 73856 |  |  |
|  **Operating income (loss)** | 16807 | 5616 | 22423 | 262 | (7307) | 15378 |  |  |
|  **Other expense:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | 3839 |  | 3839 |  |  | 3839 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on sale of assets | 123 |  | 123 | (6429) |  | (6306) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 19070 |  | 19070 | 659 |  | 19729 |  |  |
|  **Income (loss) before income taxes** | (6225) | 5616 | (609) | 6032 | (7307) | (1884) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) income taxes | (2640) |  | (2640) | 1297 |  | (1343) |  |  |
|  **Net income (loss)** | (3585) | 5616 | 2031 | 4735 | (7307) | (541) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) attributable to non-controlling interests |  |  |  |  |  |  |  |  |
|  **Net income (loss) attributable to common shareholders** | $(3585) | $5616 | $2031 | $4735 | $(7307) | $(541) |  | $|
|  **Earnings (loss) per common share:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares—basic and diluted | $(1.30) |  |  |  |  |  |  | $|
|  **Weighted average number of shares outstanding:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares—basic and diluted | 8378 |  |  |  |  |  |  |  |

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**Notes to unaudited pro forma condensed consolidated combined financial statements** 

**1. Basis of Presentation, the Offering and Reorganization** 

The pro forma financial statements have been derived from the historical financial statements of WhiteHawk (in the case of financial information as of and for the year ended December 31, 2025 as restated in the Restatement). The unaudited pro forma condensed consolidated combined balance sheet gives effect to the Transactions as if they had occurred on December 31, 2025. The PHX Acquisition and Three Rivers Royalty Acquisition are reflected in the historical consolidated balance sheet of WhiteHawk as of December 31, 2025, and, as such no pro forma adjustments are made for such transactions in the unaudited pro forma condensed combined balance sheet. The unaudited pro forma condensed consolidated combined statement of operations for the year ended December 31, 2025 gives effect to the PHX Acquisition, the Three Rivers Royalty Acquisition and the Transactions as if each had occurred on January 1, 2025.

The pro forma financial statements reflect pro forma adjustments that are based on available information and certain assumptions that management believes are reasonable. However, actual results may differ from those reflected in these statements. In management's opinion, all adjustments known to date that are necessary to present fairly the pro forma information have been made. The pro forma financial statements do not purport to represent what WhiteHawk's post-combination financial position or results of operations would have been if the transactions had actually occurred on the dates indicated above, nor are they indicative of the Company's post-combination future financial position or results of operations.

These pro forma financial statements should be read in conjunction with the historical financial statements, and related notes thereto, of WhiteHawk, PHX and TRR for the periods presented, which are included or incorporated by reference in this Registration Statement.

*Corporate Reorganization & Offering* 

In connection with the consummation of the offering, we will consummate the Transactions. We will amend and restate our certificate of incorporation to, among other things, change our name to "WhiteHawk Minerals Corp."; effect the Common Stock Reclassification; adjust our authorized capital stock to 250,000,000 shares of Class A common stock, 100,000,000 shares of Class B common stock and 10,000,000 shares of preferred stock, each par value $0.0001 per share; authorize our board of directors to establish and fix the terms of one or more series of preferred stock; and create Class B common stock in connection with our anticipated Up-C structure, to be issued to holders of OpCo Interests, with each share entitled to one vote and no economic rights.

WhiteHawk OpCo will enter into the OpCo Agreement to, among other things, appoint OP GP as sole general partner with authority to manage WhiteHawk OpCo's business and affairs; authorize the issuance of OpCo Interests to us in exchange for the offering proceeds; provide the Continuing Equity Owners with the right to redeem their OpCo Interests for, at our election (determined solely by our disinterested independent directors), cash or newly-issued shares of Class A common stock on a one-for-one basis (subject to customary adjustments), with a corresponding number of shares of Class B common stock automatically transferred to us and canceled; and provide for tax distributions and allocations of income, gain, loss, deduction and credit among holders of OpCo Interests. We will enter into the Registration Rights Agreement with certain of our Continuing Equity Owners, as further described in "Certain Relationships and Related Person Transactions."

To effectuate the Internalization, the Contribution Agreement will be entered into by the parties thereto, pursuant to which WhiteHawk OpCo will acquire all outstanding equity interests in ManagementCo from the Management Owners in exchange for OpCo Interests and shares of Class B common stock; as a result, ManagementCo will become a wholly owned subsidiary of WhiteHawk OpCo and we will become internally managed.

We will issue shares of our Class A common stock to the purchasers in this offering (or shares if the underwriters exercise in full their option to purchase additional shares) at an assumed initial public offering price of

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$ per share (the midpoint of the estimated price range set forth on the cover page of this prospectus), less the underwriting discount, for net proceeds of approximately $ million (or approximately $ million if the underwriters exercise in full their option to purchase additional shares), which we will use to purchase newly issued OpCo Interests for approximately $ million directly from WhiteHawk OpCo. Immediately following the consummation of the Transactions (including this offering), we will be a holding company whose principal asset will consist of OpCo Interests acquired directly from WhiteHawk OpCo. As the sole member of OP GP, we will control the business and affairs of WhiteHawk OpCo. We will own, directly or indirectly, OpCo Interests representing approximately % of the economic interest in WhiteHawk OpCo (or OpCo Interests representing approximately % if the underwriters exercise in full their option to purchase additional shares). The Continuing Equity Owners will own OpCo Interests representing approximately % of the economic interest in WhiteHawk OpCo (or approximately % if the underwriters exercise in full their option to purchase additional shares), and shares of our Class B common stock representing approximately % of the combined voting power of all of our common stock (or shares representing approximately % if the underwriters exercise in full their option to purchase additional shares).

The purchasers in this offering will own shares of our Class A common stock (or shares if the underwriters exercise in full their option to purchase additional shares), representing approximately % of the combined voting power and % of the economic interest in us (or approximately % if the underwriters exercise in full their option to purchase additional shares), and through our ownership of OpCo Interests, indirectly approximately % of the economic interest in WhiteHawk OpCo (or approximately % if the underwriters exercise in full their option to purchase additional shares).

**2. Unaudited Pro Forma Condensed Consolidated Combined Balance Sheet** 

*Transaction Adjustments* 

The unaudited pro forma condensed consolidated combined balance sheet as of December 31, 2025 reflects the historical consolidated balance sheet of WhiteHawk, which already includes the effects of the PHX Acquisition and Three Rivers Royalty Acquisition. Accordingly, no pro forma adjustments are presented for these transactions in the balance sheet. Transaction accounting adjustments related to the Transactions will be included in a subsequent amendment to this registration statement.

**3. Unaudited Pro Forma Condensed Consolidated Combined Statement of Operations** 

*Three Rivers Royalty Acquisition Adjustments* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Reflects natural gas and oil operations of properties acquired in the Three Rivers Royalty Transaction prior to
the effective date of the transaction.

*PHX Adjustments* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Reflects combination of the historical statement of operations of PHX for the period January 1, 2025
through March 31, 2025 and the PHX Minerals Stub Period results of operations for the stub period between April 1, 2025 through June 23, 2025 (date of acquisition). A reconciliation of the adjustments is below (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **PHX<br>Minerals<br>Historical** | **PHX<br>Minerals<br>Stub<br>Period** | **Adjusted<br>PHX<br>Minerals** |
|  **Revenues:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas, oil and NGL sales | $10433 | $9135 | $19569 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on commodity derivative instruments | (3163) | 2568 | (596) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus revenue | 328 | 143 | 471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 7598 | 11846 | 19444 |

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| | | | |
|:---|:---|:---|:---|
|  | **PHX<br>Minerals<br>Historical** | **PHX<br>Minerals<br>Stub<br>Period** | **Adjusted<br>PHX<br>Minerals** |
|  **Operating expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease operating expenses | 274 | 286 | 560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transportation, gathering and marketing | 1104 | 1034 | 2138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Production and ad valorem taxes | 423 | 301 | 723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion and amortization | 2430 | 2477 | 4907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 452 | 207 | 659 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 3754 | 7100 | 10854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses (gain) on asset sales and other | (6520) | 90 | (6429) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 1917 | 11495 | 13412 |
|  **Income (loss) before provision for income taxes** | 5681 | 351 | 6032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income taxes | 1297 |  | 1297 |
|  **Net income** | $4384 | $351 | $4735 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Reflects a pro forma adjustment to reclassify lease operating expenses, transportation, gathering and
marketing, and production and ad valorem taxes to conform to WhiteHawk's presentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Reflects the pro forma impact to depletion expense associated with the change in fair value adjustment to oil
and gas properties as a result of the PHX Acquisition. Pro forma depletion expense was calculated on a consolidated basis as though all such properties were owned for the entire period. This number was then offset by the historical depletion expense
related to PHX Minerals. The adjustment under Transaction Adjustments was calculated using the units-of-production method under the successful efforts method of
accounting (in thousands):

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| | |
|:---|:---|
|  For the year ended December 31, 2025 |  |
|  Depletion expense related to the fair value of oil and gas properties of PHX | $12214.0 |
|  Less PHX historical depletion expense | 4907.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction Adjustments to depletion expense | $7307.0 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Reflects the management fees expense of WhiteHawk that were paid as compensation for services rendered in the
management of the Company. The management fee expenses represent the charge for managing the Company and did not include general and administrative expenses related to operating the business. While a pro forma adjustment has not been made to
eliminate the management fees, the Company will no longer incur any management fees after completion of the Transaction.

*Transaction adjustments* 

Transaction accounting adjustments related to the Transactions will be included in a subsequent amendment to this registration statement.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

*The following discussion and analysis should be read in conjunction with the "Summary—Summary Historical and Pro Forma Financial Data" and the accompanying financial statements and related notes included elsewhere in this prospectus. The following discussion contains forward-looking statements that reflect our future plans, estimates, beliefs and expected performance. The forward-looking statements are dependent upon events, risks and uncertainties that may be outside our control. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, market prices for natural gas, NGLs and oil, production volumes, estimates of proved reserves, capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed below and elsewhere in this prospectus, particularly in "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements," all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. We do not undertake any obligation to publicly update any forward-looking statements except as otherwise required by applicable law.* 

*Unless otherwise indicated, the historical financial information in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" does not give effect to the transactions described in "Corporate Reorganization, the PHX Acquisition or the Three Rivers Royalty Acquisition."* 

**Overview** 

We are focused on being the premier natural gas mineral and royalty business in the United States. We are committed to delivering cash flow and total returns to our investors through the disciplined acquisition, active management and ownership of high-quality mineral and royalty interests. Our assets are concentrated in the Marcellus and Haynesville Shales, which are located in the Appalachian and Haynesville Basins, among the most productive and lowest-cost natural gas basins in the United States. Upon completion of the offering, we will own the largest, high-quality publicly traded natural gas mineral portfolio in the United States.<sup>47</sup> As a mineral and royalty business, we do not pay any drilling-related capital expenditures and only minimal operating expenses on our properties. This results in a high-margin business and allows us to distribute a meaningful portion of our cash flow to investors, while providing them with potential for significant capital appreciation over time.

**Market Conditions and Operational Trends** 

Historically, natural gas, NGLs and oil prices have been volatile and may continue to be volatile in the future. During the past five years, the Henry Hub spot market price for natural gas has ranged from a low of $1.21 per MMBtu in November 2024 to a high of $23.86 per MMBtu in February 2021. The posted price for WTI has ranged from a low of negative $36.98 per barrel in April 2020 to a high of $123.64 per barrel in March 2022. As of December 31, 2025, the posted price for WTI was $57.26 per barrel and the Henry Hub spot market price of natural gas was $4.00 per MMBtu. Lower prices not only decrease our revenues, but also potentially impact the amount of natural gas, NGLs and oil that our operators can produce economically. This, in turn, can impact the capital budgets for our operators and their development pace of our properties. We expect commodity price volatility will continue in the future.

**How We Evaluate Our Operations** 

We use a variety of operational and financial measures to assess our operations. Among the measures considered by management are the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• volumes of natural gas, NGLs and oil produced;

<sup>47</sup> Based upon management's review of public filings with the SEC, excluding those companies which either derive a majority of their revenue from oil or are oil and NGL weighted in production.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• current activity trends including (rigs, producing wells, WIPs, permits and other locations); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• commodity prices and hedging.

***Volumes of Natural Gas, NGLs and Oil Produced***

In order to track and assess the performance of our assets, we monitor and analyze our production volumes from the various resource plays that comprise our portfolio of properties. We also regularly compare projected volumes to actual reported volumes and investigate unexpected variances.

***Current Activity Trends (Rigs, Producing Wells, WIPs, Permits and Other Locations)***

In order to track and assess the performance of our assets, we monitor and analyze the number of rigs currently drilling and in close proximity to our properties. We also constantly monitor the number of producing wells, WIPs, permits and other locations that are applicable to our mineral and royalty interests. This analysis provides us with line of sight to near-, medium- and long-term potential production from the various resource plays that comprise our asset base. Our engineering and land teams employ a rigorous, data-driven technical process to track each well through its full lifecycle—from other locations, to permit, to drilling, to production—ensuring that every well is properly classified, accurately paid and fully captured in our forecasting.

***Commodity Prices and Hedging***

Commodity prices have historically been volatile and may continue to be volatile in the future. Lower prices not only decrease our revenues, but also potentially the amount of natural gas, NGLs and oil that our operators can produce economically. The prices we receive for natural gas, NGLs and oil are determined by factors affecting global and regional supply and demand dynamics, such as economic and geopolitical conditions, production levels, availability of transportation, weather cycles and other factors. In addition, realized prices are influenced by product quality and proximity to consuming and refining markets. Any differences between realized prices and NYMEX prices are referred to as differentials.

*Natural Gas*. The NYMEX price quoted at Henry Hub is a widely used benchmark for the pricing of natural gas in the United States. The actual volumetric prices realized from the sale of natural gas differ from the quoted NYMEX price as a result of quality and location differentials.

Quality differentials result from the heating value of natural gas measured in Btus and the presence of impurities, such as hydrogen sulfide, carbon dioxide and nitrogen. Natural gas containing ethane and heavier hydrocarbons has a higher Btu value and will realize a higher volumetric price than natural gas that is predominantly methane, which has a lower Btu value. Natural gas with a higher concentration of impurities will realize a lower volumetric price due to the presence of the impurities in the natural gas when sold or the cost of treating the natural gas to meet pipeline quality specifications.

Natural gas, which currently has a limited global transportation system, is subject to price variances based on local supply and demand conditions and the cost to transport natural gas to end-user markets.

*NGLs*. NGLs pricing is generally tied to the price of oil, but varies based on differences in liquid components and location.

*Oil*. The majority of our oil production is sold at prevailing market prices, which fluctuate in response to many factors that are outside of our control. NYMEX light sweet crude oil, commonly referred to as WTI, is the prevailing domestic oil-pricing index. The majority of our oil production is priced at the prevailing market price with the final realized price affected by both quality and location differentials.

The chemical composition of crude oil plays an important role in its refining and subsequent sale as petroleum products. As a result, variations in chemical composition relative to the benchmark crude oil, usually WTI, will

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result in price adjustments, which are often referred to as quality differentials. The characteristics that most significantly affect quality differentials include the density of the oil, as characterized by its API gravity, and the presence and concentration of impurities, such as sulfur.

Location differentials generally result from transportation costs based on the produced oil's proximity to consuming and refining markets and major trading points.

*Hedging* 

Our ongoing operations expose us to changes in the market price for natural gas assets. To mitigate the inherent commodity price risk associated with its operations, we use natural gas commodity derivative instruments for a substantial portion of our expected natural gas volumes. The vast majority of our hedge contracts are fixed price swaps, though from time to time, such instruments may also include costless collars and other contractual arrangements. In addition, we hedge basis exposure through basis swaps and similar instruments to manage the differential between the indices and locations at which we price our physical sales and those underlying our financial hedges. We enter into natural gas derivative contracts that contain netting arrangements with each counterparty, and we do not enter into derivative instruments for speculative purposes. For further discussion, see "Note 4—Commodity Derivative Financial Instruments" to our consolidated financial statements included elsewhere in this prospectus.

As of December 31, 2025, our open derivative contracts primarily consisted of fixed-price swap natural gas and oil contracts as well as natural gas costless collar contracts. A fixed-price swap contract between the Company and a counterparty specifies a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume. A costless collar contract between the Company and the counterparty specifies a floor and a ceiling commodity price over a specified period for a contracted volume. We have not designated any of our contracts as fair value or cash flow derivatives; accordingly, the changes in fair value of the contracts are included in the consolidated statements of operations in the period of the change. All derivative gains and losses from our derivative contracts have been recognized in revenue in our accompanying consolidated statements of operations. Derivative instruments that have not yet been settled in cash are reflected as either derivative assets or liabilities in our consolidated balance sheets as of December 31, 2025.

Our natural gas fixed price swap transactions and costless collar transactions are settled based upon the first of the month pricing, which settles three business days prior to the first day of the calendar month of the contract period. Payment for natural gas fixed price swap contracts occurs in the month of the contract period.

We also have oil fixed price swap transactions which are settled based upon the average daily prices of the calendar month of the contract period. Payment for oil fixed price swap contracts occurs in the succeeding month.

Our derivative contracts expose us to credit risk in the event of nonperformance by counterparties that may adversely impact the fair value of our commodity derivative assets. While we do not require contract counterparties to post collateral, we do evaluate the credit standing on each counterparty as deemed appropriate. The evaluation includes reviewing a counterparty's credit rating and latest financial information. As of December 31, 2025, we had one counterparty, which is rated Baa2 or better by Moody's. For additional information, see "Note 4—Commodity Derivative Financial Instruments*"* to our consolidated financial statements included elsewhere in this prospectus.

**Sources of Our Revenue** 

A significant portion of our revenues are derived from the mineral royalty payments we receive from our operators based on the sale of natural gas, NGLs and oil produced from our mineral interests. Royalty revenues may vary significantly from period to period as a result of changes in volumes of production sold by our

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operators, production mix and commodity prices. A portion of our revenue also comes from other royalty and lease bonus payments. Other royalty revenue is comprised of flat rate, shut-in and gas storage payments. Lease bonus revenue includes cash payments received at the beginning of a new lease and extension payments on current leases.

The following table presents the breakdown of our revenues for the following periods:

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| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
|  | **2025** | **2024** |
|  **Royalty revenue:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas sales | 82% | 81% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas liquids sales | 8% | 11% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil | 9% | 1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus | 1% | 7% |
|  Total  | 100% | 100% |

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**Principal Components of Our Cost Structure** 

The following is a description of the principal components of our cost structure. Importantly, as an owner of mineral interests, we are not obligated to fund drilling and completion capital expenditures to bring a well on line, lease operating expenses to produce our natural gas, NGLs and oil or the plugging and abandonment costs at the end of a well's economic life. All of the aforementioned costs are borne entirely by the E&P operator that has leased our mineral interests.

***Depletion***

Depletion is the systematic expensing of the capitalized costs incurred to acquire oil and natural gas mineral and royalty properties. We use the successful efforts cost method of accounting, and, as such, all costs associated with successful acquisitions are capitalized and reasonably aggregated and depleted based on a common geological structural feature. Costs associated with unsuccessful acquisitions are expensed. Depletion is the expense recorded based on the cost basis of our properties and the volume of hydrocarbons extracted during each respective period, calculated on a units-of-production basis. Estimates of proved reserves are a major component of our calculation of depletion. We adjust our depletion rates in the fourth quarter of each year based upon the year-end reserve report prepared by Cawley, Gillespie & Associates, Inc., our independent petroleum engineers, unless circumstances indicate that there has been a significant change in reserves or costs.

***General and Administrative***

General and administrative ("G&A") expenses are costs incurred for overhead, including payroll and benefits for our personnel costs of maintaining our office locations, costs of managing our properties, audit and other fees for professional services and legal compliance. As a result of becoming a public company, we anticipate incurring incremental G&A expenses as a result of operating as a publicly traded company. These incremental public company G&A expenses include expenses associated with SEC reporting requirements, including annual and quarterly reports, Sarbanes-Oxley Act compliance expenses, expenses associated with listing our Class A common stock on the NYSE, increased independent auditor fees, increased independent reserve engineer fees, increased legal fees, investor relations expenses, registrar and transfer agent fees, director and officer insurance expenses and director and officer compensation. These incremental G&A expenses are not reflected in our historical financial statements included elsewhere in this prospectus.

***Interest Expense***

We have financed a portion of our working capital requirements and acquisitions with borrowings under our Senior Notes. As a result, we incur interest expense that is affected by both fluctuations in interest rates and our

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financing decisions. We reflect interest paid to the lenders under our Senior Notes and amortization of debt issuance costs in interest expense in our consolidated statements of operations.

***Income Tax Expense***

As a corporation, we are subject to U.S. federal income taxes. We are also subject to the Texas margin tax and certain other state income taxes.

**Factors Affecting the Comparability of Our Financial Results** 

Our future results of operations may not be comparable to the historical results of operations of our predecessor for the periods presented, primarily for the reasons described below.

***Corporate Reorganization***

In connection with the consummation of the offering, we will consummate the Transactions. We will amend and restate our certificate of incorporation to, among other things, change our name to "WhiteHawk Minerals Corp."; effect the Common Stock Reclassification; adjust our authorized capital stock to 250,000,000 shares of Class A common stock, 100,000,000 shares of Class B common stock and 10,000,000 shares of preferred stock, each par value $0.0001 per share; authorize our board of directors to establish and fix the terms of one or more series of preferred stock; and create Class B common stock in connection with our anticipated Up-C structure, to be issued to holders of OpCo Interests, with each share entitled to one vote and no economic rights.

WhiteHawk OpCo will enter into the OpCo Agreement to, among other things, appoint OP GP as sole general partner with authority to manage WhiteHawk OpCo's business and affairs; authorize the issuance of OpCo Interests to us in exchange for the offering proceeds; provide the Continuing Equity Owners with the right to redeem their OpCo Interests for, at our election (determined solely by our disinterested independent directors), cash or newly-issued shares of Class A common stock on a one-for-one basis (subject to customary adjustments), with a corresponding number of shares of Class B common stock automatically transferred to us and canceled; and provide for tax distributions and allocations of income, gain, loss, deduction and credit among holders of OpCo Interests. We will enter into the Registration Rights Agreement with certain of our Continuing Equity Owners, as further described in "Certain Relationships and Related Person Transactions."

To effectuate the Internalization, the Contribution Agreement will be entered into by the parties thereto, pursuant to which WhiteHawk OpCo will acquire all outstanding equity interests in ManagementCo from the Management Owners in exchange for OpCo Interests and shares of Class B common stock; as a result, ManagementCo will become a wholly owned subsidiary of WhiteHawk OpCo and we will become internally managed. We will issue shares of our Class A common stock to the purchasers in this offering (or shares if the underwriters exercise in full their option to purchase additional shares) at an assumed initial public offering price of $ per share (the midpoint of the estimated price range set forth on the cover page of this prospectus), less the underwriting discount, for net proceeds of approximately $ million (or approximately $ million if the underwriters exercise in full their option to purchase additional shares), which we will use to purchase newly issued OpCo Interests for approximately $ million directly from WhiteHawk OpCo.

Immediately following the consummation of the Transactions (including this offering), we will be a holding company whose principal asset will consist of OpCo Interests acquired directly from WhiteHawk OpCo. As the sole member of OP GP, we will control the business and affairs of WhiteHawk OpCo. We will own, directly or indirectly, OpCo Interests representing approximately % of the economic interest in WhiteHawk OpCo (or OpCo Interests representing approximately % if the underwriters exercise in full their option to purchase additional shares). The Continuing Equity Owners will own OpCo Interests representing approximately % of the economic interest in WhiteHawk OpCo (or approximately % if the underwriters exercise in full their option to purchase additional shares), and shares of our Class B common stock representing

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approximately % of the combined voting power of all of our common stock (or shares representing approximately % if the underwriters exercise in full their option to purchase additional shares). The purchasers in this offering will own shares of our Class A common stock (or shares if the underwriters exercise in full their option to purchase additional shares), representing approximately % of the combined voting power and % of the economic interest in us (or approximately % if the underwriters exercise in full their option to purchase additional shares), and through our ownership of OpCo Interests, indirectly approximately % of the economic interest in WhiteHawk OpCo (or approximately % if the underwriters exercise in full their option to purchase additional shares).

As a result of the Internalization, we expect a meaningful reduction in our operating expenses due to the elimination of management fees and other costs paid to ManagementCo.

***Acquisitions***

Our financial statements for the year ended December 31, 2025 and 2024 do not include the results of operations for the Three Rivers Royalty Acquisition or the PHX Acquisition prior to the respective dates of acquisition and our financial statements for the year ended December 31, 2024 do not include the assets acquired in the Three Rivers Royalty Acquisition and the PHX Acquisition. As a result, our financial results do not give an accurate indication of what the actual results would have been if such acquisitions had been completed at the beginning of the periods presented or of what our future results are likely to be. For additional discussion of the Three Rivers Royalty Acquisition and the PHX Acquisition, please refer to "Unaudited Pro Forma Condensed Consolidated Combined Financial Information." Prior to the Three Rivers Royalty Acquisition in which we acquired the remaining 50% undivided interest in the natural gas mineral assets of the TRR Seller, we previously acquired an aggregate 50% undivided interest in the natural gas mineral assets of the TRR Seller which are reflected in our financial statements for the years ended December 31, 2025 and 2024. See "Business—Our Acquisition History."

Acquisitions are an important part of our growth strategy, and we plan to pursue potential accretive acquisitions of additional natural gas-weighted mineral and royalty interests. We believe we will be well positioned to acquire such assets and, should such opportunities arise, identifying and executing acquisitions will be a key part of our strategy. However, if we are unable to make acquisitions on economically accretive terms, our future growth may be limited, and any acquisitions we may make may reduce, rather than increase, our cash flows and ability to pay dividends to stockholders in the short term.

***Public Company Expenses***

Following the closing of this offering, we anticipate incurring incremental G&A expenses as a result of operating as a publicly traded company, such as expenses associated with SEC reporting requirements, including annual and quarterly reports, Sarbanes-Oxley Act compliance expenses, expenses associated with listing our Class A common stock on the NYSE, increased independent auditor fees, increased independent reserve engineer fees, increased legal fees, investor relations expenses, registrar and transfer agent fees, director and officer insurance expenses and director and officer compensation expenses. These incremental G&A expenses are not reflected in our historical financial statements. Additionally, we may hire additional employees, including accounting, engineering, land and legal personnel, in order to comply with requirements of being a publicly traded company.

***Management Fees***

The Company incurred and paid fees under the amended and restated investment management agreement, dated as of October 3, 2025 (the "Investment Management Agreement"), with WhiteHawk Management , an affiliate of WhiteHawk Energy, LLC, of which Daniel Herz is a managing member. Fees incurred under the Investment Management Agreement for the years ended December 31, 2025 and 2024 totaled approximately $10.0 million and $4.7 million, respectively. As noted above, as a result of the Internalization, we expect a meaningful reduction in our operating expenses due to the elimination of management fees and other costs paid to ManagementCo.

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**Restatement of Prior Period Financial Statements** 

As discussed under the heading "Restatement," we recently restated our previously issued consolidated financial statements and related notes for the year ended December 31, 2025, which restated financial statements are included elsewhere in this prospectus. Refer to Note 3 in the notes to the audited consolidated financial statements in this prospectus for additional information. The impact of the restatement is reflected in the "Results of Operations" section within this "Management's Discussion and Analysis of Financial Condition and Results of Operations."

**Results of Operations** 

***Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024***

*Consolidated Results* 

The following tables summarize our consolidated revenue and expenses and production data for the years ended December 31, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Variance** | **Variance** |
|  | **2025** | **2024** | **Variance** | **Variance** |
|  | **(As Restated)** | | | |
|  | (**dollars in thousands, except for realized prices**) | (**dollars in thousands, except for realized prices**) | (**dollars in thousands, except for realized prices**) | (**dollars in thousands, except for realized prices**) |
|  **Production:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas (Mcf) | 16586178 | 7370198 | 9215980 | 125% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGLs (Bls) | 210677 | 74350 | 136327 | 183% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil (Bbls) | 87970 | 3750 | 84220 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equivalents (Mcfe)<sup>(1)</sup> | 18378060 | 7838798 | 10539262 | 134% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equivalents per day (Mcfe / d)<sup>(1)</sup> | 50351 | 21417 | 28934 | 135% |
|  **Realized prices:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas (per Mcf) | $2.94 | $1.85 | $1.09 | 59% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGLs (per Bbl) | $21.94 | $25.50 | $(3.56) | -14% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil (per Bbl) | $60.93 | $54.67 | $6.26 | 11% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equivalents (per Mcfe) | $3.20 | $2.01 | $1.19 | 59% |
|  **Average Realized Price After Effects of Derivative Settlements:** |  |  |  |  |
|  Natural gas (per Mcf) | $3.45 | $3.04 | $0.41 | 13% |
|  **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty revenue | $50075 | $12702 | $37373 | 294% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on commodity derivative instruments | 16648 | (4418) | 21066 | 477% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus revenue | 872 | 1166 | (294) | -25% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 67595 | 9450 | 58145 | 615% |
|  **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 16585 | 2792 | 13793 | 494% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 9966 | 4681 | 5285 | 113% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 24237 | 10827 | 13410 | 124% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 50788 | 18300 | 32488 | 178% |
|  **Operating income (loss)** | 16807 | (8850) | 25627 | -290% |
|  **Other expense:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | 3839 | 359 | 3480 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sale of assets | 123 |  | 123 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 19070 | 3939 | 15131 | 384% |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** | **Variance** | **Variance** |
|  | **2025** | **2024** | **Variance** | **Variance** |
|  | **(As<br>Restated)** | | | |
|  | (**dollars in thousands, except for realized<br>prices**) | (**dollars in thousands, except for realized<br>prices**) | (**dollars in thousands, except for realized<br>prices**) | (**dollars in thousands, except for realized<br>prices**) |
|  Total other expense | 23032 | 4298 | 18734 | 436% |
|  Income (loss) before income taxes | (6225) | (13148) | 6923 | -53% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) income taxes | (2640) | (1587) | (1053) | 66% |
|  **Net income (loss)** | $(3585) | $(11561) | $7976 | -69% |

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<sup>(1)</sup> Natural gas equivalents are calculated using a ratio of six thousand cubic feet of natural gas to one barrel of oil, condensate or NGLs, based on approximate relative energy content. This ratio does not represent the current or historical price relationship between natural gas and oil or NGLs. 

***Revenue***

Our consolidated revenues for the year ended December 31, 2025, increased $58.1 million or 615%, as compared to the year ended December 31, 2024. The increase in revenues was primarily due to an increase in natural gas, NGL and oil royalty revenue and an increase in revenue from our commodity derivatives, partially offset by a decrease in lease bonus revenue. The increase in royalty revenues was primarily due to an increase in our production volumes of 134% from the acquisitions of additional mineral and royalty interests.

Natural gas revenues for the year ended December 31, 2025, increased $35.1 million or 258%, compared to the year ended December 31, 2024. Natural gas production volumes increased 125% to 45,442 Mcf/day resulting in a $27.1 million increase in natural gas sales primarily due to acquisitions of additional mineral and royalty interests. Realized natural gas prices increased 59% to $2.94 per Mcf resulting in an increase in revenue of $10.0 million. The increase in revenue was partially offset by an increase in gathering, transportation and marketing expenses of $4.5 million.

NGLs revenues for the year ended December 31, 2025, increased $2.7 million, or 144%, compared to the year ended December 31, 2024. NGLs production volumes increased 183% to 577 BBls/day resulting in an approximately $3.0 million increase in NGLs sales. Realized NGLs prices decreased 14% to $21.94 per Bbl resulting in a decrease in revenue of approximately $0.5 million. The increase in NGL revenue was partially offset by an increase in gathering, transportation and marketing expenses of $0.3 million.

Oil revenues for the year ended December 31, 2025, increased $5.2 million, compared to the year ended December 31, 2024. Oil production volumes increased to 241 Bbl/day resulting in a $5.1 million increase in oil sales. Realized oil prices increased 11% to $60.93 per Bbl resulting in a increase in revenue of approximately $0.5 million. The increase in oil revenue was partially offset by an increase in gathering, transportation and marketing expenses of $0.7 million.

Commodity derivatives gains totaled $16.6 million for the year ended December 31, 2025, as compared to losses of $4.4 million for the year ended December 31, 2024. The increase of $21.1 million for the year ended December 31, 2025 as compared to the year ended December 31, 2024 is due to changes in commodity prices.

Lease bonus revenue decreased, $0.3 million, or 25%, for the year ended December 31, 2025, as compared to the year ended December 31, 2024. When we lease our acreage to an E&P operator, we generally receive a lease bonus payment at the time a lease is executed. These bonus payments are subject to significant variability from period to period based on the particular tracts of land that become available for releasing.

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***Operating expenses***

General and administrative expenses for the year ended December 31, 2025, increased $13.8 million, or 494%, as compared to the year ended December 31, 2024. The increase was primarily attributable to an $8.2 million increase in legal and professional expenses related to acquisitions, a $4.5 million increase in employee and director expenses related to the growth of the Company including certain non-recurring acquisition related payments during 2025, $0.2 million increase in franchise taxes, a $0.3 million increase in travel related expenses, a $0.2 million increase in software expense and a $0.1 million increase in rent related expenses.

Management fees for the year ended December 31, 2025, increased $5.3 million, or 113%, compared to the year ended December 31, 2024. Management fees paid to WHIC Manager are calculated as a percentage of assets under management and a percentage of all distributions paid to the Company shareholders and each continue to increase as the Company continues to issue equity and make additional acquisitions.

Depletion, depreciation and accretion for the year ended December 31, 2025, increased $13.4 million, or 124%, compared to the year ended December 31, 2024. The increase was due to a 134% increase in year-over-year production volumes partially offset by a lower depletion rate, which decreased to $1.31 per Mcfe for the year ended December 31, 2025 from $1.38 per Mcfe for the year ended December 31, 2024.

***Other Income and Expenses***

Interest expense relates to interest incurred on borrowings under our various credit facilities. The increase for the year ended December 31, 2025, of $15.1 million, or 384%, compared to the year ended December 31, 2024 was primarily due to a higher average amount outstanding under our Senior Notes.

For the year ended December 31, 2025, losses on extinguishment of debt totaled $3.8 million. For the year ended December 31, 2024, losses on the extinguishment of debt totaled $0.4 million. During the year ended December 31, 2025, $3.8 million of previously capitalized deferred financing costs were written off when the Company amended and restated the Senior Notes. During the year ended December 31, 2024, $0.4 million of previously capitalized deferred financing costs were written off when the Company extinguished the Term Loan in September 2024 with proceeds received from the Senior Notes.

**Liquidity and Capital Resources** 

Historically, our primary sources of liquidity have been from capital raised from third-party investors, cash flows from operations and proceeds from the issuance of our Senior Notes. Following the completion of this offering, we expect our primary sources of liquidity to be the proceeds retained from this offering, cash flows from operations, and proceeds from any future issuances of debt or equity securities. Future sources of liquidity may also include other credit facilities we may enter into in the future and/or additional issuances of debt or equity securities. Historically, our primary uses of cash have been for the acquisition of mineral and royalty interests, the reduction of outstanding debt balances and the payment of dividends, and we expect our primary uses of cash going forward to be for the acquisition of mineral and royalty interests, the reduction of outstanding debt balances and the payment of dividends. Our ability to generate cash is subject to several factors, some of which are beyond our control, including commodity prices and general economic, financial, legislative, regulatory and other factors. In addition, there can be no assurance that we will pay any dividends to holders of our Class A common stock, or as to the amount of any such dividends. See "Risk Factors—Risks Related to this Offering and Ownership of Our Class A Common Stock—We intend to pay regular dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and may be limited by our financial condition, results of operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness and other factors and restrictions our board of directors deems relevant."

We believe internally generated cash flows from operations and access to capital markets will provide us with sufficient liquidity and financial flexibility to meet our cash requirements, including normal operating needs, debt

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service obligations, our return of capital program, and capital expenditures, for at least the next 12 months and allow us to continue to execute our strategy of acquiring attractive mineral and royalty interests that will position us to grow our cash flows and return capital to our stockholders. As an owner of mineral and royalty interests, we incur the initial cost to acquire our interests but thereafter do not incur any drilling or completion capital expenditures, which are entirely borne by the E&P operators and the other working interest owners. As a result, our only capital expenditures are related to our acquisition of additional mineral and royalty interests, and we have no subsequent capital expenditure requirements related to acquired properties. The amount and allocation of future acquisition-related capital expenditures will depend upon a number of factors, including the number and size of acquisition opportunities, our cash flows from operating, investing and financing activities and our ability to integrate acquisitions. We periodically assess changes in current and projected cash flows, acquisition and divestiture activities, and other factors to determine the effects on our liquidity. Our ability to generate cash flow is subject to a number of factors, many of which are beyond our control, including commodity prices, weather and general economic, financial and competitive, legislative, regulatory and other factors. We believe our cash flows from operations will be sufficient to fund our operating expenses, debt service obligations, and dividend payments for the next 12 months without accessing the capital markets. However, if we require additional capital for acquisitions or other reasons, we may raise such capital through additional borrowings, asset sales, offerings of equity and debt securities or other means. If we are unable to obtain funds needed or on acceptable terms, we may not be able to complete acquisitions that are favorable to us. There can be no assurance that capital markets financing will be available on favorable terms, or at all.

As of December 31, 2025, our cash and cash equivalents was $29.0 million.

**Cash Flows for the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 (in thousands):** 

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| | | |
|:---|:---|:---|
|  | **For the Year Ended<br>December 31,** | **For the Year Ended<br>December 31,** |
|  | **2025** | **2024** |
|  | **(As Restated)** | |
|  Net cash flows provided by (used in): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating activities | $13577 | $9447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investing activities | (309958) | (30392) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing activities | 320040 | 22061 |

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***Operating Activities***

Our operating cash flows are impacted by the variability in our revenues and operating expenses, as well as the timing of the related cash receipts and disbursements. Royalty payments may vary significantly from period to period as a result of changes in commodity prices, production mix and volumes of production sold by our E&P operators, as well as the timeliness and accuracy of payments from our E&P operators. These factors are beyond our control and are difficult to predict. Cash flows provided by operating activities for the year ended December 31, 2025 were $13.6 million as compared to $9.4 million for the year ended December 31, 2024. The increase was primarily a result of the increase in our production of 134% to acquisitions and an increase of 59% in our realized prices.

***Investing Activities***

Cash flows used in investing activities totaled $310.0 million for the year ended December 31, 2025 as compared to $30.4 million for the year ended December 31, 2024, an increase of $279.6 million due to the variance in our acquisitions of oil and gas properties, net of purchase price adjustments.

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***Financing activities***

Cash flows provided by financing activities for the year ended December 31, 2025 totaled $320.0 million as compared to cash flows provided by financing activities of $22.1 million for the year ended December 31, 2024.

During the year ended December 31, 2025, cash flows provided by financing activities was primarily related to $172.7 million of proceeds from our Senior Notes, net of repayments and $248.1 million of proceeds raised from the issuance of common and preferred stock. This was partially offset by dividends of $19.5 million paid to common and preferred stockholders during the year ended December 31, 2025, $75.4 million of common and preferred stock redemptions and $5.8 million of deferred financing costs.

During the year ended December 31, 2024, cash flows provided by financing activities was primarily related $45.0 million of additional proceeds from our Senior Notes, net of repayments, and $18.1 million of proceeds raised from the issuance of common and preferred stock. This was partially offset by common and preferred stock redemptions of $25.5 million and dividends of $13.2 million paid to common and preferred stockholders during the year ended December 31, 2024.

**Quantitative and Qualitative Disclosure About Market Risk** 

We are exposed to market risk, including the effects of adverse changes in commodity prices and interest rates and operator credit risk as described below. The primary objective of the following information is to provide quantitative and qualitative information about our potential exposure to market risks. The term "market risk" refers to the risk of loss arising from adverse changes in natural gas and oil prices and interest rates and operator credit risk. The disclosures are not meant to be precise indicators of expected future losses, but rather indicators of reasonably possible losses. This forward-looking information provides indicators of how we view and manage our ongoing market risk exposures.

***Commodity Price Risk***

Our major market risk exposure is in the pricing applicable to the crude oil, natural gas and NGLs production of our E&P operators, which affects the royalty payments we receive from our E&P operators. Realized pricing is primarily driven by the prevailing worldwide price for crude oil and spot market prices applicable to our natural gas production. Pricing for crude oil, natural gas and NGL production has been volatile historically and we expect this volatility to continue in the future. The prices that our E&P operators receive for production depend on many factors outside of our or their control.

A $0.10 per Mcf change in our realized natural gas price would have resulted in a $1.7 million change in our natural gas revenues for the year ended December 31, 2025. A $1.00 per Bbl change in NGLs and oil prices would have resulted in a $0.3 million change in our NGLs and oil revenues for the year ended December 31, 2025. Royalties on natural gas sales, NGL sales and oil contributed 83%, 8% and 9%, respectively, of our total royalty revenues for the year ended December 31, 2025.

We may enter into derivative instruments from time to time, such as collars, swaps and basis swaps, to partially mitigate the impact of commodity price volatility. These hedging instruments allow us to reduce, but not eliminate, the potential effects of the variability in cash flow from operations due to fluctuations in oil, natural gas and NGL prices and provide increased certainty of cash flows related to certain of our acquisitions. However, these instruments provide only partial price protection against declines in oil, natural gas and NGL prices and may partially limit our potential gains from future increases in prices. Refer to "Note 4—Commodity Derivative Financial Instruments for further information.

***Operator Credit Risk***

Our principal exposures to credit risk are through receivables generated by the production activities of our operators. The inability or failure of our significant operators to meet their obligations to us or their insolvency or

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liquidation may adversely affect our financial results. However, we believe the credit risk associated with our operators is acceptable.

***Interest Rate Risk***

Our primary exposure to interest rate risk results from outstanding borrowings under the Senior Notes which bears interest at a floating rate. The average annual interest rate incurred on our borrowings under the Senior Notes during the year ended December 31, 2025 was 10.8%. We estimate that an increase of 1.0% in the average interest rate during the year ended December 31, 2025 would have resulted in an approximately $1.8 million increase in interest expense.

**Critical Accounting Policies and Related Estimates** 

The discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP. Our critical accounting policies are described below to provide a better understanding of how we develop our assumptions and judgments about future events and related estimates and how they can impact our financial statements. A critical accounting estimate is one that requires our most difficult, subjective or complex estimates and assessments and is fundamental to our results of operations.

We base our estimates on historical experience and on various other assumptions we believe to be reasonable according to the facts and circumstances at the time the estimates are made. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements. There can be no assurance that actual results will not differ from those estimates and assumptions. This discussion and analysis should be read in conjunction with our consolidated financial statements and related notes.

***Use of Estimates***

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Changes in estimates are accounted for prospectively.

Our estimates and classification of natural gas and oil reserves are, by necessity, projections based on geologic and engineering data, and there are uncertainties inherent in the interpretation of such data as well as the projection of future rates of production. Reserve engineering is a subjective process of estimating underground accumulations of natural gas and oil that are difficult to measure. The accuracy of any reserve estimate is a function of the quality of available data, engineering, and geological interpretation and judgment. Estimates of economically recoverable natural gas and oil reserves and future net cash flows necessarily depend upon a number of variable factors and assumptions. These factors and assumptions include historical production from the area compared with production from other producing areas, the assumed effect of regulations by governmental agencies, and assumptions governing future natural gas and oil prices. For these reasons, estimates of the economically recoverable quantities of expected natural gas and oil and estimates of the future net cash flows may vary substantially.

Any significant variance in the assumptions could materially affect the estimated quantity of reserves, which could affect the carrying value of our natural gas and oil properties and/or the rate of depletion related to natural gas and oil properties.

***Gas and Oil Properties***

We use the successful efforts method of accounting for natural gas and oil producing properties, as further defined under Accounting Standards Codification 932, *Extractive Activities—Oil and Natural Gas*. Under this

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method, costs to acquire mineral interests in natural gas and oil properties are capitalized. The costs of non-producing mineral interests and associated acquisition costs are capitalized as unproved properties pending the results of leasing efforts and drilling activities of E&P operators on our interests. As unproved properties are determined to have proved reserves, the related costs are transferred to proved gas and oil properties. Capitalized costs for proved natural gas and oil mineral interests are depleted on a unit-of-production basis over total proved reserves. For depletion of proved gas and oil properties, interests are grouped in a reasonable aggregation of properties with common geological structural features or stratigraphic conditions.

***Impairment of Gas and Oil Properties***

We evaluate our proved properties for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When assessing proved properties for impairment, we compare the expected undiscounted future cash flows of the proved properties to the carrying amount of the proved properties to determine recoverability. If the carrying amount of proved properties exceeds the expected undiscounted future net cash flows, the carrying amount is written down to the properties' estimated fair value, which is measured as the present value of the expected future net cash flows of such properties. The factors used to determine fair value include estimates of proved reserves, future commodity prices, timing of future production, and a risk-adjusted discount rate. The proved property impairment test is primarily impacted by future commodity prices, changes in estimated reserve quantities, estimates of future production, overall proved property balances, and depletion expense. If pricing conditions decline or are depressed, or if there is a negative impact on one or more of the other components of the calculation, we may incur proved property impairments in future periods.

Unproved gas and oil properties are assessed periodically for impairment of value, and a loss is recognized at the time of impairment by charging capitalized costs to expense. Impairment is assessed based on when facts and circumstances indicate that the carrying value may not be recoverable, at which point an impairment loss is recognized to the extent the carrying value exceeds the estimated recoverable value. Factors used in the assessment include, but are not limited to, commodity price outlooks, current and future operator activity, and analysis of recent mineral transactions in the surrounding area.

***Crude Oil, Natural Gas and NGLs Reserve Quantities and Standardized Measure of Gas and Oil***

Our estimates of natural gas, crude oil and NGLs reserves and associated future net cash flows are prepared or audited by our independent reservoir engineers. The SEC has defined proved reserves as the estimated quantities of gas and oil which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. The process of estimating crude oil, natural gas and NGLs reserves is complex, requiring significant decisions in the evaluation of available geological, geophysical, engineering and economic data. The data for a given property may also change substantially over time as a result of numerous factors, including additional development activity, evolving production history and a continual reassessment of the viability of production under changing economic conditions. As a result, material revisions to existing reserve estimates occur from time to time. Although every reasonable effort is made to ensure that reserve estimates reported represent the most accurate assessments possible, the decisions and variances in available data for various properties increase the likelihood of significant changes in these estimates. If such changes are material, they could significantly affect future amortization of capitalized costs and result in impairment of assets that may be material.

There are numerous uncertainties inherent in estimating quantities of proved crude oil, natural gas and NGLs reserves. Crude oil, natural gas and NGLs reserve engineering is a process of estimating underground accumulations of crude oil, natural gas and NGLs that cannot be precisely measured and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of drilling, testing and production subsequent to the date of the estimate may justify positive or negative revisions of reserve estimates.

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***Revenue Recognition***

We record revenue in the month production is delivered to the purchaser. However, settlement statements for certain natural gas, oil, and natural gas liquids sales from third-party operators may not be received for 30 to 120 days after the date production is delivered. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the royalties related to expected sales volumes and prices for those properties are estimated and recorded based upon our royalty interest. Where available, historical actual data is used to calculate volume estimates for wells operated by third parties. If historical actual data is not available for these wells, engineering estimates are used to calculate expected volumes. As such, estimated volumes utilized in period end royalty income accruals are subject to revision as additional actual data becomes available and such revisions may have a material impact on our results of operations and our royalty income receivables. Pricing estimates are based upon actual prices realized in an area by adjusting the market price for the average basis differential from market on a basin-by-basin basis. We record the differences between our estimates and the actual amounts received for royalties from third parties in the month that payment is received from the operator. We have existing internal controls for our royalty income estimation process and related accruals, but actual third-party royalty income in future periods could differ materially from estimated amounts. Identified differences between our accrued revenue estimates and actual revenue received historically have not been significant.

Natural gas, NGLs and oil revenues from our mineral and royalty interests are recognized when control transfers at the wellhead.

We also earn revenue related to lease bonuses by leasing our mineral interests to E&P operators. We recognize lease bonus revenue when the lease agreement has been executed and payment is determined to be collectible.

**Internal Controls and Procedures** 

We are not currently required to comply with the SEC's rules implementing Section 404 of Sarbanes-Oxley, and are therefore not required to make a formal assessment of the effectiveness of our internal control over financial reporting for that purpose. Upon becoming a public company, we will be required to comply with the SEC's rules implementing Section 302 of Sarbanes-Oxley, which will require our management to certify financial and other information in our quarterly and annual reports and provide an annual management report on the effectiveness of our internal control over financial reporting. We will not be required to have our independent registered public accounting firm attest to the effectiveness of our internal control over financial reporting under Section 404 until our first annual report subsequent to our ceasing to be an "emerging growth company" within the meaning of Section 2(a)(19) of the Securities Act. Notwithstanding that we are not currently required to make such a formal assessment, in the course of preparing our financial statements and building out our internal controls infrastructure, we have in the past identified, and may in the future identify, deficiencies in our internal control over financial reporting, including material weaknesses.

To comply with the requirements of being a public company, we will need to implement additional financial and management controls, reporting systems and procedures and hire additional accounting, finance and legal staff.

***Material Weaknesses in Internal Control over Financial Reporting***

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected in a timely basis.

In connection with the preparation of our unaudited consolidated financial statements for the three months ended March 31, 2026 and 2025, we identified material weaknesses in our internal control over financial reporting. The identified material weaknesses include (i) controls over the quarterly close and account reconciliations process

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related to the reconciliation of related party balances were not designed at a sufficient level of precision to prevent or detect material misstatements in a timely manner and (ii) controls over business combinations did not contain a control specific to the recording of post combination adjustments related to the business combination effective date.

Remediation steps are being taken to improve our internal control over financial reporting to address the underlying causes of the material weaknesses described above, including designing and implementing increased controls along with increasing oversight and review of controls. Specifically, we plan to institute new and enhanced controls to improve and formalize the level of precision applied to the review of our financial statements, including the development and documentation of detailed review procedures. As part of these planned control enhancements, we intend to establish documented protocols specifying the steps that our review process will entail, including the purpose of each schedule, the complexity of the underlying account(s), the specific items under review (e.g., footing errors, unexpected account balance fluctuations), the degree of judgment involved, and the source of reports and other data points used in the analysis. We also plan to introduce new documentation controls designed to ensure that sufficient supporting evidence exists to substantiate the amounts and balances included in our financial statements and to confirm that management review procedures were performed. We intend to continue evaluating and instituting additional controls and safeguards as necessary to fully remediate the identified material weaknesses.

While we believe that these efforts will improve our internal control over financial reporting, the implementation of these measures is ongoing and will require validation and testing of the design and operating effectiveness of internal controls over a sustained period of financial reporting cycles. If the steps we take do not remediate the material weaknesses in a timely manner, there could continue to be a reasonable possibility that these control deficiencies or others could result in a material misstatement of our annual or interim financial statements that would not be prevented or detected on a timely basis. If we are unable to successfully remediate our existing or any future material weaknesses, the accuracy of our financial reporting may be adversely affected, which could cause investors to lose confidence in our financial reporting and our share price may decline as a result.

Notwithstanding the identified material weaknesses, management believes that the financial statements and related financial information included in this prospectus fairly present, in all material respects, our balance sheets, statements of operations, statements of stockholders' equity (deficit) and statements of cash flows as of and for the periods presented. We will continue to assess the effectiveness of our internal control over financial reporting and take steps to remediate the known material weaknesses expeditiously.

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**BUSINESS** 

**Our Company** 

WhiteHawk is focused on being the premier natural gas mineral and royalty business in the United States. We are committed to delivering cash flow and total returns to our investors through the disciplined acquisition, active management and ownership of high-quality mineral and royalty interests. Our assets are concentrated in the Marcellus and Haynesville Shales, which are located in the Appalachian and Haynesville Basins, which are among the most productive and lowest-cost U.S. natural gas basins.<sup>48</sup> Upon completion of the offering, we will own the largest, high-quality publicly traded natural gas mineral portfolio in the United States.<sup>49</sup> As a mineral and royalty business, we do not pay any drilling-related capital expenditures and only minimal operating expenses on our properties. This results in a high-margin business and allows us to distribute a meaningful portion of our cash flow to investors, while providing them with potential for significant capital appreciation over time.

As of December 31, 2025, our portfolio spans approximately 3.4 million gross DSU acres, including 1.6 million gross DSU acres across the Appalachian and Haynesville Basins and represents an economic interest in approximately 13%<sup>50</sup> of all natural gas produced in the United States as of December 31, 2025. Further, we have more than 10,900 producing wells and more than 8,000 remaining identified undeveloped locations as of December 31, 2025. The Appalachian and Haynesville Basins form the core of U.S. natural gas production and are among the most prolific energy-producing regions globally. If measured against sovereign nations, the Appalachian Basin would rank as the world's second-largest natural gas producer, with daily production of approximately 33 Bcf/d, and the Haynesville Basin would rank eighth with daily production of approximately 13 Bcf/d.<sup>51</sup> In 2025, the Appalachian and Haynesville Basins together accounted for more than 50%<sup>52</sup> of total U.S. dry gas production, providing the foundation of domestic natural gas supply and export growth. Our mineral interests are concentrated in the core of these premier natural gas regions and offer long-term participation in two of the largest, most active and lowest-cost natural gas weighted basins in the United States.<sup>53</sup>

WhiteHawk's mineral interests are developed by many of the largest, most active and well-capitalized natural gas operators in the United States, including EQT (NYSE: EQT), Range Resources (NYSE: RRC), CNX Resources (NYSE: CNX), Antero Resources (NYSE: AR), Expand Energy (NASDAQ: EXE), Comstock Resources (NYSE: CRK) and Aethon Energy. In 2025, approximately 18%<sup>54</sup> of all wells drilled in the Appalachian and Haynesville Basins were located on acreage in which we hold royalty interests. Our significant footprint across both basins provides alignment and scale with these premier operators. In 2025, EQT was the largest natural gas producer in the Appalachian Basin, and Expand Energy was the largest producer in the Haynesville Basin.<sup>55</sup> In the same year, approximately 49% of EQT's Appalachian production and 57% of Expand Energy's Haynesville production were sourced from acreage in which we hold royalty interests.<sup>56</sup> Because our mineral interests are concentrated within these operators' active and planned development areas, we can benefit directly from their scale, financial strength and efficiency. Our exposure to leading operators enables us to gain from their continuous development across commodity cycles and provides a resilient base for predictable cash flow growth.

Leveraging our scale and position alongside leading operators, we believe we are well positioned to capitalize on two powerful natural gas demand catalysts: AI driven electricity demand growth and expanding U.S. LNG exports. Natural gas remains the most reliable, scalable and cost-effective source of baseload power and

<sup>48</sup> EIA Short-Term Energy Outlook; Enverus Data.

<sup>49</sup> Based upon management's review of public filings with the SEC, excluding those companies which either derive a majority of their revenue from oil or are oil and NGL weighted in production.

<sup>50</sup> Enverus Data.

<sup>51</sup> World Energy Report.

<sup>52</sup> EIA Short-Term Energy Outlook.

<sup>53</sup> Enverus Data.

<sup>54</sup> Enverus Data.

<sup>55</sup> Enverus Data.

<sup>56</sup> Enverus Data.

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accounted for approximately 41%<sup>57</sup> of total U.S. electricity generation in 2025. The rapid buildout of AI and cloud-computing infrastructure is projected to create additional demand for natural gas-fired power generation, with a management-estimated 7.8 Bcf/d of total natural gas demand associated with new power plants expected to be constructed by 2031,<sup>58</sup> largely within WhiteHawk's Appalachian Basin footprint. In addition to an increase in domestic demand, global demand for U.S. natural gas is expected to further accelerate through LNG export growth. The United States will nearly double its LNG export capacity from approximately 17 Bcf/d<sup>59</sup> in 2025 to nearly 34 Bcf/d by 2031<sup>60</sup> as European and Asian buyers seek to diversify supply and reduce exposure to higher regional benchmark prices. The Haynesville Basin's proximity and pipeline connectivity to the Gulf Coast LNG corridor position our mineral interests to benefit directly from this expansion in export capacity and feed-gas demand. Together, accelerating power demand from AI and the continued buildout of LNG export capacity, inclusive of announced projects, are expected to drive a structural step-change in U.S. natural gas demand—driving roughly a 36%<sup>61</sup> increase in combined demand by 2031 compared to 2025 levels. WhiteHawk believes it offers public investors direct equity exposure to the powerful tailwinds of AI-driven power demand and expanding U.S. LNG exports without drilling-related capital expenditures.

WhiteHawk is led by one of the most experienced and acquisitive management teams in the minerals and royalties sector. Collectively, our leadership has more than 125 years of industry experience and has completed over $31 billion of energy transactions across the upstream, midstream, and minerals and royalty value chain. Members of our team previously served as senior executives or founders of Atlas Energy (NYSE: ATLS), Atlas Pipeline Partners (NYSE: APL) and Falcon Minerals Corporation (NASDAQ: FLMN), each of which were successful public companies that generated substantial shareholder value through disciplined growth, accretive acquisitions and strategic monetizations.

Since its inception, WhiteHawk has completed eight large acquisitions, making it the most active acquirer of natural gas mineral and royalty properties in the United States.<sup>62</sup> More importantly, these acquisitions have been highly accretive to shareholders and have resulted in approximately 36%<sup>63</sup> cash-on-cash return to our initial investors through 46 months of consecutive cash dividend payments, plus an additional 41% increase in shareholder value through three share dividends through January 1, 2026. We continue to execute a focused consolidation strategy in a fragmented market, targeting accretive acquisitions to expand scale, enhance returns and extend development visibility. Our ability to consistently source, evaluate and close accretive transactions ahead of broader market consolidation underscores WhiteHawk's leadership as a focused, data-driven consolidator with a proven track record of value creation.

**Our History** 

We were founded in 2022 with a clear mission to build the premier natural gas minerals and royalty platform. Our thesis was that natural gas minerals and royalties represent one of the most efficient and resilient ways to participate in the energy value chain, combining high-margin cash yield with exposure to long-term macro tailwinds in U.S. natural gas demand.

We began executing on a strategy to consolidate high-quality, core-basin mineral and royalty assets from institutional and private equity owners. We identified an estimated $3 – $5 billion of natural gas minerals and royalties in the Appalachian and Haynesville Basins that were held by private equity funds nearing the end of their investment cycles and fund lives with few buyers of scale in the market. This imbalance created an attractive entry

<sup>57</sup> EIA Electric Monthly.

<sup>58</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand.

<sup>59</sup> EIA Natural Gas Exports. Includes current operating and under construction projects only.

<sup>60</sup> EIA Electric Monthly.

<sup>61</sup> EIA Natural Gas Monthly.

<sup>62</sup> Enverus Data.

<sup>63</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 33%. 

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point to acquire premium assets at compelling valuations. WhiteHawk was created to capitalize on this opportunity, bringing technical expertise, public market experience and fresh capital to a fragmented sector.

In addition to our strategic acquisitions of larger, consolidated natural gas mineral packages, we launched a dedicated "ground game" in 2025 that has become an important component of our growth strategy. This approach builds on a meaningful track record, including at Falcon Minerals Corporation, where our team successfully executed more than 30 acquisitions through a similar strategy. Leveraging significant in-house land and engineering expertise alongside an established network of regional brokers, we seek to efficiently source and underwrite smaller-scale opportunities that we believe are highly accretive. Since December 2025, we have completed 14 such transactions totaling approximately $39.7 million. We expect the ground game to remain a component of our acquisition strategy, with the goal of adding scale consistent with our existing portfolio quality.

This opportunity may be enhanced by the fragmentation across our existing asset base. With an average net revenue interest of approximately 0.48% across our DSUs and an average royalty rate of approximately 17% as of December 31, 2025, we believe there is more than 33 times our current ownership potentially available for acquisition within our existing footprint.

As of December 31, 2025, WhiteHawk has accumulated natural gas mineral and royalty assets across approximately 3.4 million gross DSU acres focused primarily on the Appalachian and Haynesville Basins. From our inception in 2022 through 2025, WhiteHawk has made seven acquisitions and has paid more than 46 consecutive monthly cash dividends, representing approximately 36%<sup>64</sup> cash-on-cash return to our initial investors, plus an additional 41% increase in shareholder value through three share dividends through January 1, 2026.

The figure below summarizes our acquisition history with respect to acquired NRAs on an 8/8<sup>th</sup> basis.

![LOGO](g86452g00a19.jpg)

Members of our management team were some of the early pioneers in the Marcellus Shale and, prior to the formation of WhiteHawk, collectively drilled some of the first horizontal wells in the Marcellus Shale. With over 20 years of Appalachian Basin-specific experience, our land and engineering teams specialize in identifying and acquiring high-quality land assets that underpin valuable, long-term mineral and royalty interests. This technical capability, combined with our extensive history of operating in Appalachia, proprietary deal sourcing, and data-

<sup>64</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 33%. 

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driven analysis, allows WhiteHawk to efficiently negotiate and close transactions while maintaining disciplined capital allocation. In addition to utilizing technical analysis, we strive to acquire mineral and royalty interests in properties with top-tier E&P operators. We seek E&P operators that are well-capitalized, have a strong operational track record, and we believe will continue to increase production through the application of the latest drilling and completion techniques across our mineral and royalty interests, and have demonstrated resilience through commodity cycles.

The U.S. natural gas minerals and royalties market remains highly fragmented with many private owners and few scaled aggregators. This structural fragmentation presents a significant opportunity for continued consolidation. WhiteHawk is one of the few active, large mineral buyers focused exclusively on natural gas. Upon completion of this offering, WhiteHawk will be the only public natural gas mineral and royalty company with meaningful, scaled exposure to the Appalachian and Haynesville Basins, allowing WhiteHawk to capitalize on this fragmented market.<sup>65</sup> We intend to leverage our position to pursue disciplined, accretive acquisitions that enhance portfolio quality, expand our footprint in premier basins, and drive sustainable growth in cash flow and shareholder returns over time.

**Natural Gas Industry and Future Development** 

Natural gas is the largest source of U.S. electricity generation and a cornerstone of global energy supply, accounting for approximately 41%<sup>66</sup> of total domestic power output in 2025. U.S. natural gas demand has the potential to increase from 107 Bcf/d in 2025 to approximately 148 Bcf/d by 2031, supported by structural growth across LNG exports, power generation expansion, rising electricity demand from data centers and AI, and advanced manufacturing.<sup>67</sup>

U.S. LNG export capacity could expand to around 45 Bcf/d by 2031, supported by approximately 34 Bcf/d currently operating or under construction and an additional 11 Bcf/d of capacity announced but not currently under construction<sup>68</sup>. If all export capacity is active by 2031, this would represent a 28% increase in natural gas demand over 2025 levels from LNG exports alone. The continued growth in LNG exports is expected to position the United States as the world's leading supplier of natural gas to Europe and Asia as international buyers seek secure, competitively priced and transparent alternatives to oil-indexed or regional benchmarks.

<sup>65</sup> Based upon management's review of public filings with the SEC, excluding those companies which either derive a majority of their revenue from oil or are oil and NGL weighted in production.

<sup>66</sup> EIA Electric Monthly.

<sup>67</sup> Management estimate based on EIA Short-Term Energy Outlook.

<sup>68</sup> EIA Liquefaction Report as supplemented by management's review of recently announced facilities.

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The figure below illustrates estimated liquefaction capacity for existing, under construction and announced projects as of December 2025:

![LOGO](g86452g52b60.jpg)

*Note: Liquefaction Capacity reflects Peak Nameplate Capacity. Commercial Operation includes commissioned projects. Source: EIA Liquefaction Report.* 

Additionally, as of December 2025, WhiteHawk has identified 21 publicly announced new or planned natural gas power plants in close proximity to WhiteHawk's Appalachia mineral position, which are estimated to generate natural gas demand of approximately 7.8 Bcf/d by 2031.<sup>69</sup>

In addition to the growing LNG export demand, the accelerated buildout of AI and cloud-computing infrastructure is creating a new and durable source of electricity demand, much of which is expected to be met by natural gas-fired power generation due to its reliability, scalability and relatively favorable carbon intensity. WhiteHawk's mineral position in the Appalachian Basin lies in close proximity to major data center growth corridors across Virginia, Ohio and Pennsylvania, where WhiteHawk has identified, as of December 2025, publicly announced 28 new data centers representing what management estimates will generate 3.3 Bcf/d of incremental natural gas demand, of which approximately 1.7 Bcf/d is under construction or has achieved FID and approximately 1.6 Bcf/d is in pre-FID and announced stages.<sup>70</sup>

Together, these structural demand drivers are expected to sustain drilling and development activity on WhiteHawk's mineral acreage for years to come. With concentrated exposure to some of the most productive natural gas basins in the United States, we believe our mineral and royalty portfolio is well positioned to deliver stable production growth, increase royalty income and durable cash flow, and grow dividends and net asset value per share over the long term.

<sup>69</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand .

<sup>70</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand .

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**Our Focus on Key Gas Basins** 

WhiteHawk's assets are concentrated in the Appalachian Basin, Haynesville Basin and Mid-Continent ("Mid-Con") region, which collectively represent the core of U.S. natural gas production. Each region combines substantial resource depth, high-quality operators, and access to major infrastructure and end-markets.

***Appalachian Basin (Pennsylvania / West Virginia / Ohio)***

The Appalachian Basin, located primarily in Pennsylvania, West Virginia and Ohio, constitutes the largest and most prolific natural gas basin in the United States and a critical source of future global natural gas supply, as of December 2025.<sup>71</sup> The basin's scale, consistent reservoir quality and access to infrastructure have made it a cornerstone of U.S. natural gas production and a key driver of the nation's transition toward cleaner, lower-carbon energy. The Appalachian Basin's importance to future natural gas growth is underpinned by its vast remaining resource potential and direct connectivity to both domestic and international demand. The basin benefits from an extensive network of gathering, processing and long-haul pipeline infrastructure that links production to major population centers and growing data center markets in the Northeast, Midwest and Northern Virginia, as well as to LNG export markets along the Gulf Coast. Continued expansion of southbound takeaway capacity and LNG facilities is expected to reinforce the region's role as a primary growth engine for U.S. natural gas supply over the next decade.

In the Appalachian Basin, the Marcellus Shale has transformed the United States from a net importer to a net exporter of natural gas over the past 20 years. During 2025, it accounted for roughly one-third of total U.S. dry gas production, producing at some of the lowest breakeven costs in the United States.<sup>72</sup> Exceptional pressure regimes, thick, laterally continuous pay zones and modern completion techniques allow operators to achieve recoveries and sustained productivity that rank among the highest in the industry.<sup>73</sup> The Utica Shale provides additional stacked-pay potential that enhances the economic life and development diversity of the basin and already accounted for 8% of total U.S. natural gas production in 2025.<sup>74</sup>

As of December 31, 2025, WhiteHawk's interests cover approximately 975,000 gross DSU acres across Southwest Pennsylvania and Northern West Virginia, operated by leading Appalachian Basin producers, including EQT, Range Resources, CNX Resources and Antero Resources. These operators possess deep drilling inventories, strong balance sheets and a proven track record of disciplined development. Throughout 2024 and 2025, approximately 47% of wells turned in line by these operators in the Appalachian Basin were drilled on our acreage.<sup>75</sup>

The Appalachian Basin forms the foundation of WhiteHawk's asset base and provides investors with exposure to a region positioned to remain a highly productive source of low-cost, scalable natural gas for the U.S. and global markets for decades to come.

***Haynesville Basin (East Texas / North Louisiana)***

The Haynesville Basin, located in East Texas and North Louisiana, is one of the largest and most productive natural gas plays in the United States and a cornerstone of future U.S. supply growth. The basin's combination of exceptional reservoir quality, proximity to demand centers and direct access to the Gulf Coast has positioned it as a critical source of feed gas for the rapidly expanding LNG export market.

Strategically located within 150 miles of the Gulf Coast, the Haynesville Basin provides a direct and cost-advantaged connection between prolific supply and fast-growing global demand. It is estimated that nearly all

<sup>71</sup> EIA Short-Term Energy Outlook.

<sup>72</sup> EIA Short-Term Energy Outlook.

<sup>73</sup> Enverus Data.

<sup>74</sup> EIA Short-Term Energy Outlook.

<sup>75</sup> Enverus Data.

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existing and planned U.S. LNG export terminals—including Sabine Pass, Cameron, Golden Pass, Port Arthur and Plaquemines—source a substantial portion of their feed gas from the Haynesville Basin. This geographic alignment ensures that the basin will remain a key driver of U.S. natural gas export growth for decades as global markets seek cheaper, reliable sources of natural gas and lower-carbon alternatives to coal and oil.

Since its renewed development in 2017, the Haynesville Basin has delivered steady volume growth supported by high-deliverability wells and low full-cycle development costs.<sup>76</sup> The basin is characterized by over pressured, laterally extensive shale formations that yield high initial production rates and long-lived reserves.<sup>77</sup> Continued advances in lateral lengths, completion designs and multi-well pad efficiencies have enhanced recoveries and reduced breakeven costs, making the Haynesville Basin one of the most economically viable sources of natural gas in the world. In addition to the Haynesville Shale, our acreage also benefits from additional resources from the Cotton Valley and Mid-Bossier formations, which together produced approximately 3.2%<sup>78</sup> of U.S. natural gas production in 2025.

As of December 31, 2025, WhiteHawk's Haynesville interests cover approximately 600,000 gross DSU acres across East Texas and North Louisiana, operated by leading producers such as Expand Energy, Comstock Resources and Aethon Energy. These operators are among the most active and technically proficient in the basin, each maintaining multi-year drilling inventories and robust infrastructure connectivity.

The Haynesville Basin represents another cornerstone of WhiteHawk's portfolio, providing exposure to one of the highest-margin, infrastructure-advantaged gas plays in the United States. Its proximity to LNG export facilities, industrial corridors and petrochemical complexes along the Gulf Coast positions the basin—and WhiteHawk's assets within it—at the center of the next phase of global natural gas demand growth.

***Mid-Con Region (Anadarko Basin, Oklahoma)***

The Mid-Con region, anchored by the Anadarko Basin in Oklahoma and extending into portions of Texas, Arkansas and Kansas, is one of the most historically productive and geologically diverse hydrocarbon basins in the United States. The region has been a major contributor to U.S. natural gas and liquids supply for nearly a century and remains a critical source of stable production, infrastructure access and development optionality.

With its combination of legacy production, existing infrastructure and ongoing technical innovation, the Anadarko Basin continues to play an important role in maintaining domestic supply reliability and supporting industrial and power-generation demand across the central United States. The basin's multi-zone potential and moderate development costs have led to renewed operator activity, as natural gas demand expands through LNG exports and increasing AI-driven electricity demand.<sup>79</sup>

The Anadarko Basin is characterized by multiple geological formations—including the SCOOP (South Central Oklahoma Oil Province), STACK (Sooner Trend Anadarko Basin Canadian and Kingfisher counties), Woodford Shale and Cherokee Shale, which together provide exposure to both dry gas and liquids-rich zones. These intervals offer extensive development potential through established drilling and completion techniques, allowing operators to target high-return projects across varying commodity price environments. The basin's mature gathering, processing and takeaway infrastructure ensures efficient market access to the Gulf Coast, Midwest and Mid-Con gas hubs.

As of December 31, 2025, WhiteHawk's Mid-Con position spans approximately 1.7 million gross DSU acres across the SCOOP, STACK and Arkoma plays, operated by established and well-capitalized producers such as Continental Resources, Devon Energy and Ovintiv. These operators maintain deep, de-risked inventories and continue to optimize recovery through longer laterals, tighter spacing and improved completion designs.

<sup>76</sup> EIA Short-Term Energy Outlook.

<sup>77</sup> Upstream Outlook Report.

<sup>78</sup> Enverus Data.

<sup>79</sup> Enverus Data.

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**Our Mineral and Royalty Interests** 

***Nature of Our Mineral and Royalty Interests***

WhiteHawk's portfolio consists primarily of producing and undeveloped mineral and royalty interests in the Appalachian Basin, Haynesville Basin and Mid-Con region that provide the right to receive a share of production revenue from the sale of natural gas, NGLs and oil produced by third-party operators. These interests include fee mineral ownership, non-participating royalty interests and overriding royalty interests.

We own two types of interests: mineral and royalty interests and non-operating working interests. Of the mineral and royalty interests, we own three types: mineral interests, NPRIs and ORRIs. For the year ended December 31, 2025, our mineral and royalty interests accounted for approximately 99% of our royalty revenues and our non-operating working interests accounted for approximately 1% of our royalty revenues. Each of these interests have different rights and obligations as further described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Mineral Interests:* Mineral interests are perpetual real property interests rights of the owner to exploit,
mine and/or produce the minerals lying below the surface of the property. When we lease our mineral interests to third-party operators, we retain a royalty interest—the ongoing right to a portion of the revenue from any oil or gas later
produced—and receive a one-time payment known as a lease bonus. Typically, the resulting royalty interest is a cost-free percentage of production revenues for minerals extracted from the acreage. Holders
of royalty interests are generally not responsible for capital expenditures or lease operating expenses but may be responsible for certain post-production expenses and typically have limited environmental liability. While mineral interests are
usually perpetual, gas and oil leases have a set term. Therefore, if drilling stops or no production occurs during that term, the lease ends, and the mineral owner is free to lease the rights again to another party and receive another lease bonus.
Royalty interests expire upon the expiration of the gas and oil lease, but the mineral interests would be retained. Mineral interests represented approximately 92% of our mineral and royalty interests as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-Participating Royalty Interest.* A **  NPRI has the same
characteristics as a standard royalty interest except that the term "non-participating" indicates that the interest owner has the right to participate in the execution of gas and oil leases but
does not share in the bonus or rentals from a gas and oil lease. NPRIs represented approximately 3% of our mineral and royalty interests as of December 31, 2025.

working interest. Like royalty interests, ORRIs do not confer an obligation to make capital expenditures or pay for lease operating expenses and have limited environmental liability; however, ORRIs may be calculated net of post-production expenses,
depending on how the ORRI is structured. ORRIs that are carved out of working interests are linked to the same underlying gas and oil lease that created the working interest and, therefore, ORRIs are typically subject to expiration upon the
expiration or termination of the underlying gas and oil lease. ORRIs represented approximately 5% of our mineral and royalty interests as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-Operating Working Interest.* In addition to our mineral
and royalty interests, we own certain non-operating working interests acquired in connection with the PHX Acquisition. Non-operating working interest holders have the right to extract minerals from acreage leased pursuant to a gas and oil lease from
a mineral interest holder. Holders of working interests are responsible for their pro rata share of capital expenditures and lease operating expenses, but holders of working interests only receive revenues after distributions have first been made to
holders of royalty interests and ORRIs. Working interests expire upon the termination or expiration of the underlying gas and oil lease. As of December 31, 2025, our non-operating working interest portfolio consisted of 437 gross (18.1 net)
wells located exclusively in the Mid-Con region and accounted for approximately 1% of our royalty revenues. These non-operating working interests represented approximately 7% of our total proved reserves and 3% of our total production for the year
ended December 31, 2025.

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As of December 31, 2025, our interest covered approximately 3.4 million gross DSU acres and more than 10,900 producing wells. As of December 31, 2025 we held an economic interest in 13% of total U.S. natural gas production and in 2025 we had an interest in 18% of new wells drilled in the Appalachian and Haynesville Basins.<sup>80</sup> As of December 31, 2025, the estimated proved natural gas, NGL and crude oil reserves attributable to our interest are 86% natural gas, 10% NGLs and 4% crude oil, with $293,690 thousand of PV-10. Of these proved reserves, 98% were classified as PD reserves and 2% were classified as undeveloped reserves. For the year ended December 31, 2025, the average net daily production associated with our portfolio was 50,351 Mcfe/d, consisting of 45,442 Mcf/d of natural gas, 577 Bbls/d of NGLs and 241 Bbls/d of oil and on a pro forma basis, average net daily production of 67,255 Mcfe/d, consisting of 59,621 Mcf/d of natural gas, 790 Bbls/d of NGLs and 483 Bbls/d of oil.

We earn most of our revenues through a steady stream of royalties and lease bonuses, all tied to the success of gas and oil production on our acreage. We differ from traditional upstream gas and oil companies as we, and any other royalty interest owner, do not pay for nor operate wells. All of the costs and risks involved in finding, drilling and maintaining wells are borne by the working interest owners. Royalty interest owners generally are only responsible for certain taxes tied to production, such as severance and property taxes, and fees related to transportation or marketing of gas and oil.

Because we do not pay for drilling or bear the risks of dry holes or operational setbacks, we typically enjoy much higher operating margins compared to our third-party operators. Our business model is more capital-light, focusing on management and acquisition of various mineral and royalty interests, rather than the direct, costly development capital necessary for the extraction of resources. This gives us a recurring income stream with less variability in free cash flow than the traditional exploration and production business.

As an active consolidator of mineral and royalty interests, WhiteHawk works closely with third-party operators throughout the lifecycle of each asset—from negotiating and optimizing lease terms at inception, to confirming timely in-pay status as wells are drilled and completed and continuously validating that we receive the correct revenue interest over the life of the well. This engagement has supported improved royalty terms, more favorable pricing provisions, and reduced post-production deductions, enhancing realized revenues and long-term returns.

WhiteHawk's mineral and royalty ownership model allows the Company to generate stable, capital-efficient cash flow from producing assets while maintaining organic growth potential through the continued development of its undeveloped mineral position without the need to pay for associated drilling capital expenditures. Over time, we have reinvested proceeds from lease bonuses and free cash flow from our assets to expand our footprint in the most economically attractive natural gas basins in the United States while maintaining a conservative balance sheet and disciplined capital strategy.

<sup>80</sup> Enverus Data.

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**Key Operators** 

We strive to acquire mineral and royalty interests in properties with top-tier E&P operators that are well capitalized, have a strong operational track record and that we believe will continue to increase production through the application of the latest drilling and completion techniques. Our royalty interests are developed and operated by many of the highest-quality natural gas producers in the United States. The graphs below highlight the portion of production from top operators captured on our position across each region in 2025:<sup>81</sup>

![LOGO](g86452g26a01.jpg) ![LOGO](g86452g26b02.jpg) ![LOGO](g86452g26c03.jpg)

Collectively, in 2025, these 14 operators listed above controlled more than 79% of WhiteHawk's leased acreage and represented the leading producers in the Appalachian Basin, Haynesville Basin and Mid-Con region. Their scale, balance-sheet strength and technological capabilities enhance recovery efficiency, reduce breakeven costs and provide reliable long-term development of our mineral interests—directly supporting our ability to pay sustainable dividends to our investors, although there can be no assurance that we will pay any dividends to holders of our Class A common stock, or as to the amount of any such dividends. See "Risk Factors—Risks Related to this Offering and Ownership of Our Class A Common Stock—We intend to pay regular dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and may be limited by our financial condition, results of operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness and other factors and restrictions our board of directors deems relevant."

**Strengths** 

We believe that the following competitive strengths will allow us to successfully capitalize on our market opportunities, execute our business strategies, and achieve our primary business objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Premier, large-scale natural gas mineral and royalty company in America's most productive gas basins.*** We have assembled one of the largest pure-play natural gas mineral and royalty portfolios in the United States, spanning approximately 3.4 million gross DSU acres and providing exposure to more than 10,900 producing wells as of
December 31, 2025. Our acreage is concentrated in the Appalachian and Haynesville Basins, two of the most productive and lowest-cost sources of natural gas in the United States, which together accounted for more than 50% of total U.S. dry gas
production<sup>82</sup> and 81% of our royalty revenue in 2025. These basins feature thick, laterally continuous shale intervals, high-pressure reservoirs, and well-developed gathering and long-haul pipeline
infrastructure that enable some of the lowest breakeven development economics in the United States. The fact that 11% and 33%<sup>83</sup> of Appalachian and Haynesville Basin wells, respectively, were
drilled on our acreage in 2025, is indicative that our assets are located in the core development areas of these premier gas plays. We believe our proximity to the core development areas of these basins will provide long-term visibility into
drilling activity and sustained royalty cash flow through consistent operator investments and stacked play potential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***High-margin, capital-light business model.*** WhiteHawk's business model is designed to
generate substantial cash flow as our mineral and royalty interests have no drilling capital expenditure requirements

<sup>81</sup> Enverus Data. Percentages exceed 100% due to rounding. 

<sup>82</sup> EIA Short-Term Energy Outlook.

<sup>83</sup> Enverus Data.

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and minimal operating costs. Our mineral and royalty interests allow us to capture the economic benefits of natural gas development without bearing the capital risk or inflationary cost pressures typical of traditional E&P companies because we do not incur drilling, completion, lease operating expenses, or plugging and abandonment obligations at the end of a well's productive life. This capital-light model enables us to convert a significant portion of our revenue directly into free cash flow. Our recurring costs are limited primarily to production taxes, gathering, processing, and transportation expenses, and modest general and administrative overhead. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***High-quality assets supported by top-tier operators with visible development activity*.** Our mineral interests are operated by leading, well-capitalized E&P companies in some of the most productive and economically attractive natural gas basins in the United States. In 2025, the Appalachian Basin
accounted for approximately 38% of the total U.S. natural gas production,<sup>84</sup> with WhiteHawk's acreage operated by premier producers including EQT, Antero Resources, Range Resources and CNX
Resources. Combined, these operators accounted for approximately 96% of our royalty revenue in the Appalachian Basin in 2025. The Haynesville Basin contributed approximately 14% of total U.S. natural gas production in 2025,<sup>85</sup> with WhiteHawk's acreage operated by premier producers including Expand Energy, Comstock Resources and Aethon Energy. Combined, these operators accounted for approximately 58% of our royalty
revenue in the Haynesville Basin for 2025. As of December 31, 2025, our portfolio includes nearly 430 WIPs and permitted locations, and more than 8,000 remaining identified undeveloped locations. We believe this embedded inventory provides a
visible, multi-year growth runway that requires no additional capital investment from us. Our exposure to operators with strong balance sheets, basin-leading drilling productivity, and disciplined capital programs is designed to enhance the
stability of our production base and support long-term royalty cash flow generation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Capturing value from AI-driven electricity demand growth.*** We are positioned to benefit from the accelerating rise in electricity demand driven by AI and data center expansion, much of which is expected to be met by natural gas. Natural gas is the primary fuel for U.S. power generation accounting for
approximately 41%<sup>86</sup> of total electricity output in 2025. In line with this trend, our Appalachian Basin acreage is located near 21 publicly announced new or planned natural gas fired power
plants representing what management estimates to be approximately 7.8 Bcf/d of total natural gas demand associated with new power plants expected by 2031.<sup>87</sup> The ongoing expansion of AI-driven and digital-infrastructure power needs is expected to support long-term natural gas consumption and price stability, encouraging sustained operator investment and development activity on our mineral
acreage and providing predictable recurring cash flows that can be distributed to investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Positioned to capitalize on LNG export growth.*** The EIA estimates U.S. LNG export capacity will
nearly double from approximately 17 Bcf/d in 2025 to nearly 34 Bcf/d by 2031<sup>88</sup>, as European and Asian buyers seek secure, competitively priced supply and diversify away from oil-indexed benchmarks or regional international benchmarks such as JKM (Asia) and TTF (Europe), where the average pricing is 3-4x Henry Hub pricing in the United States for
the year 2025.<sup>89</sup> In addition, as of December 2025, approximately 28 Bcf/d of incremental LNG capacity is in various stages of regulatory review and development, representing further upside to
long-term U.S. export potential.<sup>90</sup> The Haynesville Basin's proximity and pipeline connectivity to the Gulf Coast LNG corridor position our assets to benefit directly from this expansion.
Sustained growth in U.S. LNG exports is expected to drive long-term feed-gas demand from the basins where our mineral interests are concentrated, for years to come.

<sup>84</sup> EIA Short-Term Energy Outlook.

<sup>85</sup> EIA Short-Term Energy Outlook.

<sup>86</sup> EIA Electric Monthly.

<sup>87</sup> Assumes 1 gigawatt of capacity equates to 154 mmcf/d of natural gas demand.

<sup>88</sup> EIA Natural Gas Exports. Excludes announced projects.

<sup>89</sup> FactSet LNG Pricing.

<sup>90</sup> EIA Liquefaction Report as supplemented by management's review of recently announced facilities

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Proven management team with a track record of public company value creation and accretive growth.*** Our management team is among the most experienced and acquisitive in the minerals sector, with more than 125 years of combined industry experience and over $31 billion of completed energy transactions across the upstream, midstream, and
mineral and royalty value chain. Members of our team previously served as senior executives or founders of Atlas Energy, Atlas Pipeline Partners and Falcon Minerals, each a successful public company that created substantial shareholder value through
disciplined growth, accretive acquisitions, and strategic monetization. Since our founding, WhiteHawk has been the most active acquirer of natural gas minerals and royalties, completing eight large transactions across the most prolific gas-oriented basins in the United States.<sup>91</sup> Our ability to consistently source, evaluate, and close accretive transactions underscores WhiteHawk's
leadership as a focused, data-driven consolidator with proven expertise in capital allocation, M&A execution and public-market stewardship.

**Strategies** 

Our primary business objective is to deliver shareholder value through dividends and total return from our mineral interests in premier natural gas-weighted properties. We intend to accomplish this objective by executing the following key strategies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Provide sustained income to investors through strong Cash Available for Distribution generation and cash dividends.*** We expect initially to pay dividends from our Cash Available for Distribution with the remaining cash flow to be used for additional acquisitions that meet our investment criteria or to maintain our conservative capital structure.
As mineral and royalty owners, we benefit from the continued organic development of our acreage and are able to convert a high percentage of our revenues to Cash Available for Distribution. We believe that our mineral and royalty interests are
positioned for growth as E&P operators continue to concentrate on the Appalachian Basin, Haynesville Basin and Mid-Con region to meet growing global demand for natural gas. Since our inception in 2022, we
have paid 46 consecutive monthly common equity dividends, totaling approximately $30 million and representing a cash-on-cash return of approximately 36%<sup>92</sup> to our initial investors through January 1, 2026. We believe our efficient, conservatively levered structure, with low capital intensity and disciplined financial management, provides a
sustainable foundation for attractive dividend yields, balance sheet flexibility, and long-term value creation for shareholders; however, there can be no assurance that we will pay any dividends to holders of our Class A common stock, or as to the
amount of any such dividends. See "Risk Factors—Risks Related to this Offering and Ownership of Our Class A common stock—We intend to pay regular dividends to our stockholders, but our ability to do so is subject to the discretion
of our board of directors and may be limited by our financial condition, results of operations, cash flows, prospects, industry conditions, capital requirements, instruments governing our indebtedness and other factors and restrictions our board of
directors deems relevant."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Strategically source and acquire de-risked, cash-flowing natural gas mineral and royalty interests of scale from long-term partnerships.*** Our strategy focuses on acquiring high-quality mineral and royalty interests that generate immediate cash flow and offer long-term development visibility. We target
assets operated by leading, well-capitalized producers in the core of the Appalachian Basin, Haynesville Basin, and Mid-Con region, where continued drilling activity provides durable revenue growth without
direct capital risk exposure. WhiteHawk differentiates itself through a disciplined, partnership-oriented sourcing approach with private-equity sponsors and other institutional owners seeking liquidity from later-life funds. This positions WhiteHawk
as one of the few large-scale consolidators of natural gas-weighted minerals, particularly in the Appalachian Basin, which remains underrepresented in public minerals markets.

<sup>91</sup> Enverus Data.

<sup>92</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 33%. 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Pursue disciplined, accretive acquisitions in premier natural gas plays.*** We intend to grow our
portfolio through the disciplined acquisition of high-quality natural gas mineral and royalty interests in the Appalachian Basin, Haynesville Basin and Mid-Con region. By leveraging our management team's
extensive industry relationships, and proprietary geologic and title data, we target assets that can provide accretive growth in shareholder value while strengthening our production and reserve base. Since inception, we have been among the most
active consolidators in the natural gas minerals sector, completing seven transactions that have materially increased our scale and enhanced cash flow. These acquisitions have been highly accretive to shareholders and have resulted in approximately
36%<sup>93</sup> cash-on-cash return to our initial investors. We believe current market conditions remain highly favorable for
consolidation, as fragmented ownership across numerous private sellers continues to create opportunities for accretive acquisitions that meet our investment criteria.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Optimize portfolio to maximize Cash Available for Distribution and maintain diversified exposure.*** We actively manage our portfolio to prioritize acreage with a strong cash-flow base, visible near-term development, and substantial future inventory. A core component of this strategy is maintaining a broad, diversified mineral footprint
across multiple core natural gas basins, encompassing an average NRI of 0.69% in more than 10,900 producing wells, with additional wells consistently in various stages of development across a footprint exceeding 3.4 million gross DSU acres as
of December 31, 2025. This scale and diversity provide exposure to the most prolific, lowest-cost natural gas plays in the United States while reducing reliance on any single operator or well. The result is a balanced portfolio designed to
generate resilient cash flow and mitigate volatility through commodity cycles. Through disciplined asset management, targeted reinvestment, and continued optimization, we seek to enhance portfolio productivity, strengthen cash flow stability and
grow our dividend over time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Maintain conservative and flexible capital structure to support our business and facilitate long-term operations.*** We are committed to maintaining a conservative capital structure that will afford us the financial flexibility to execute our business strategies on an ongoing basis. We expect to maintain a prudent level of debt to support our
acquisition and growth strategy while preserving balance sheet flexibility. We believe that the combination of cash flow from operations, proceeds from this offering, and selective use of other debt and equity financings will provide us with
sufficient liquidity to pursue accretive acquisitions, enhance our cash flow profile, and return capital to our shareholders. We intend to manage our leverage conservatively and finance future acquisitions through cash flow from operations or
opportunistically utilizing equity or debt to support disciplined growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Commitment to responsible natural gas development and governance excellence.*** Natural gas, the
primary driver of our royalty income, is a critical, lower-emission component of the modern energy mix and remains central to meeting global demand for reliable and affordable power. As a cleaner-burning fuel, it provides consistent and scalable
energy that complements renewable energy and supports grid stability. The operators developing our mineral acreage, including EQT, Range Resources, Antero Resources and CNX Resources, have each adopted measurable standards focused on reducing
emissions and promoting responsible development. With all of our assets located in the most economic natural gas basins in the United States, we are positioned to benefit from the growing recognition of natural gas as a reliable, cleaner source of
energy. We also intend to reinforce the durability of our business through rigorous corporate governance, transparency, and alignment with our shareholders. Our governance framework emphasizes independence, accountability, and disciplined capital
allocation. We believe our governance framework reduces our risk profile and sustains investor confidence through commodity cycles. We believe our adherence to governance best practices and partnerships with responsible operators differentiate
WhiteHawk as a transparent, sustainable, and income-oriented energy investment capable of delivering attractive returns over the long term.

<sup>93</sup> Reflects a cash-on-cash return to our initial investors whose share price did not include any selling commissions on investment. Returns to our initial investors whose share price included selling commissions on investment resulted in cash-on-cash returns of approximately 33%. 

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**Our Acquisition History** 

We completed our first acquisition in 2022 when we acquired an aggregate 25% undivided interest in the natural gas-weighted mineral and royalty assets of the TRR Seller located in the Appalachian Basin of southwestern Pennsylvania. The assets are primarily located in Washington and Greene counties in Pennsylvania, which WhiteHawk believes represent some of the highest quality natural gas reserves in the United States. This initial position was anchored by best-in-class natural gas operators EQT, Range Resources and CNX Resources. This initial position established our footprint in the Marcellus Shale.

In 2023, we expanded into the Haynesville Shale, acquiring minerals in two separate transactions from Mesa Minerals Partners II, LLC and affiliated entities across northwestern Louisiana and East Texas operated by best-in-class producers including Expand Energy, Aethon Energy and Comstock Resources. This transaction marked a pivotal step in building a diversified, multi-basin platform, pairing Appalachia's predictable base with Haynesville's price-responsive growth and direct exposure to Gulf Coast LNG demand. The Mesa acquisitions were completed through two separately negotiated transactions, closing in the first and third quarters of 2023. Later that year, we doubled our Marcellus position through an acquisition of an additional 25% interest in our existing footprint of natural gas mineral and royalty assets from the TRR Seller.

In 2024, we deepened our Appalachian presence with a 20% undivided interest in other natural gas mineral and royalty assets of an affiliate of the TRR Seller, adding acreage in Pennsylvania and West Virginia, and increasing WhiteHawk's Appalachian footprint to approximately 975,000 gross DSU acres. This acquisition also added more significant exposure to Antero Resources, along with increased exposure to EQT, Range Resources and CNX Resources. The assets are primarily located in Washington and Greene counties in Pennsylvania, and Wetzel and Marshall counties in West Virginia.

In the first quarter of 2025, we acquired additional Marcellus Shale mineral and royalty interests in the acquisition of the remaining 50% interest in natural gas mineral and royalty assets of the TRR Seller. In June 2025, we acquired PHX. The PHX Acquisition increased our mineral and royalty ownership position by acquiring additional mineral and royalty interests in the Haynesville Shale, as well as the SCOOP/STACK, Bakken, Arkoma and others. The PHX Acquisition also increased our exposure to some of its top third-party operators, including Expand Energy, Comstock Resources and Aethon Energy in the Haynesville Shale, while adding other top operators, including Continental Resources and Devon Energy in the SCOOP/STACK region in Oklahoma. As a result of the PHX Acquisition, WhiteHawk added approximately 1.8 million gross DSU acres of premier natural gas mineral and royalty assets, significantly expanding its footprint in the core of the Haynesville Shale in East Texas/North Louisiana and diversifying its portfolio into the SCOOP/STACK region.

***Haynesville Assets***

On March 2, 2026, the Company and its affiliate entered into a definitive purchase and sale agreement to acquire the Haynesville Assets. The Haynesville Assets cover approximately 150,000 gross DSU acres and will further increase the Company's exposure to high-quality development across the Haynesville and Mid-Bossier formations. The assets are concentrated in core areas of the basin and are operated by established, well-capitalized operators. The Haynesville Assets acquisition closed on April 3, 2026. We funded the purchase price of the Haynesville Assets acquisition primarily through the issuance of approximately $37.8 million of shares of Series D preferred stock. See "Description of Capital Stock—Preferred Stock—Series D Preferred Stock."

**Natural Gas, NGL and Oil Data** 

***Proved Reserves***

*Evaluation of Proved Reserves*. Our proved reserve estimates as of December 31, 2025 and 2024 are based on reserve reports prepared by CG&A and Schaper Energy, respectively, our independent petroleum engineers. The reports of CG&A and Schaper Energy contain further discussion of the reserves estimates and their preparation procedures.

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With respect to our 2025 reserve report, the technical person primarily responsible for supervising the preparation of the reserves estimates set forth in the CG&A report is Mr. W. Todd Brooker, P.E., President of Cawley, Gillespie & Associates, Inc. Prior to joining CG&A in 1992, Mr. Brooker worked in Gulf of Mexico drilling and production engineering at Chevron U.S.A. His experience includes extensive projects in conventional and unconventional reservoirs across all major U.S. basins, including oil and gas shales, coalbed methane, waterfloods and complex, faulted structures. His current responsibilities include reserve and economic evaluations, fair market valuations, expert reporting and testimony, field studies, pipeline resource assessments, development planning and acquisition/divestiture analysis. Mr. Brooker graduated with honors from The University of Texas at Austin with a Bachelor of Science in Petroleum Engineering. He is a licensed Professional Engineer in the State of Texas, a member of the Society of Petroleum Engineers (SPE) and serves on the board of the Society of Petroleum Evaluation Engineers (SPEE).

CG&A meets or exceeds the requirements relating to professional qualifications, independence, objectivity and confidentiality set forth in the standards pertaining to estimating and auditing oil and gas reserves information. CG&A does not own an interest in any of our properties and is not employed by us on a contingent basis.

With respect to our 2024 reserve report, the technical person primarily responsible for preparing the reserve estimates set forth in the reserve reports incorporated herein is Mr. Andrew Schaper, P.E., President of Schaper Energy. Prior to joining Schaper Energy, Mr. Schaper acted as the Head of Americas A&D Origination at Bank of America Merrill Lynch in Houston, Texas. Prior to his time at Bank of America Merrill Lynch, Mr. Schaper held positions with Citigroup, Quantum Resources Management LLC and Newfield Exploration Company. He spent the first several years of his career acting as a reservoir engineer in both development and exploratory capacities focused on domestic basins. His experience includes significant projects in both conventional and unconventional resources in every major U.S. producing basin, including gas and oil shale plays, conventional fields, and secondary recovery operations. His current responsibilities include reserve and economic evaluations, fair market valuations, field studies, acquisition/divestiture analysis and expert witness support for the foregoing topics.

Mr. Schaper graduated Summa Cum Laude from Texas A&M University with a Bachelor of Science degree in Electrical Engineering specializing in Power Systems, and holds a Master of Engineering degree in Petroleum Engineering from Texas A&M University, a Master in Business Administration degree from The University of Texas at Austin and a Doctor of Engineering degree in Engineering from Texas A&M University with a focus in Nuclear, Energy & Environmental Engineering. Mr. Schaper is a licensed Professional Engineer in the State of Texas and is a Certified Petroleum Engineer (SPEC<sup>®</sup>) with the Society of Petroleum Engineers ("SPE") and a member of the Society of Petroleum Evaluation Engineers ("SPEE").

Mr. Schaper meets or exceeds the requirements with regard to qualifications, independence, objectivity and confidentiality set forth in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers. Schaper Energy does not own an interest in any of our properties, nor is it employed by us on a contingent basis.

The summary of our 2024 report with respect to our proved reserve estimates as of December 2024 is included as an exhibit to the registration statement of which this prospectus forms a part.

We maintain a staff of petroleum engineers who work closely with our management team and our independent petroleum engineers to ensure the integrity, accuracy and timeliness of the data used to calculate our proved reserves relating to our properties. Our management team meets with our independent reserve engineers periodically during the period covered by the proved reserve report to discuss the assumptions and methods used in the proved reserve estimation process. We provide historical information to our independent petroleum engineers for our properties, such as ownership interest, natural gas and oil production, commodity prices and our estimates of our operators' operating and development costs. John Picton, our Vice President of Engineering, is primarily responsible for overseeing the review of our reserve estimates. Mr. Picton has substantial reservoir and operations experience with more than 15 years of experience. Prior to joining our Company full-time in April

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2025 and as a consultant since April 2023, Mr. Picton previously held roles at Quantum Energy Partners, Teton Range LLC, Jefferies Financial Group, Inc., LINN Energy, LLC, Occidental Petroleum Corp. and Citation Oil & Gas Corp.

The preparation of our proved reserve estimates were reviewed in accordance with our internal control procedures. These procedures, which are intended to ensure reliability of reserve estimations, include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review and verification of historical production data, which data is based on actual production as reported by
our operators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review by Mr. Picton of all of our reported proved reserves, including the review of all significant reserve
changes and all new PUDs additions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review of reserve estimates by Mr. Picton or under his direct supervision; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• direct reporting responsibilities by Mr. Picton to our Chief Operating Officer.

*Estimation of Proved Reserves*. In accordance with rules and regulations of the SEC applicable to companies involved in oil and natural gas producing activities, proved reserves are those quantities of oil and natural gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations. The term "reasonable certainty" means deterministically, the quantities of oil and/or natural gas are much more likely to be achieved than not, and probabilistically, there should be at least a 90% probability of recovering volumes equal to or exceeding the estimate. All of our proved reserves as of December 31, 2025 and 2024 were estimated using a deterministic method. The estimation of reserves involves two distinct determinations. The first determination results in the estimation of the quantities of recoverable oil and natural gas and the second determination results in the estimation of the uncertainty associated with those estimated quantities in accordance with the definitions established under SEC rules. The process of estimating the quantities of recoverable reserves relies on the use of certain generally accepted analytical procedures. These analytical procedures fall into four broad categories or methods: (i) production performance-based methods; (ii) material balance-based methods; (iii) volumetric-based methods; and (iv) analogy. These methods may be used singularly or in combination by the reserve evaluator in the process of estimating the quantities of reserves. Reserves for proved developed producing wells were estimated using production performance methods for the vast majority of properties. Certain new producing properties with very little production history were forecast using a combination of production performance and analogy to similar production, both of which are considered to provide a reasonably high degree of accuracy. Non-producing reserve estimates, for developed and undeveloped properties, were forecast using analogy methods. This method provides a reasonably high degree of accuracy for predicting proved developed non-producing and PUDs for our properties, due to the abundance of analog data.

To estimate economically recoverable proved reserves and related future net cash flows, we considered many factors and assumptions, including the use of reservoir parameters derived from geological and engineering data that cannot be measured directly, economic criteria based on current costs and the SEC pricing requirements and forecasts of future production rates.

Under SEC rules, reasonable certainty can be established using techniques that have been proven effective by actual production from projects in the same reservoir or an analogous reservoir or by other evidence using reliable technology that establishes reasonable certainty. Reliable technology is a grouping of one or more technologies (including computational methods) that have been field-tested and have been demonstrated to provide reasonably certain results with consistency and repeatability in the formation being evaluated or in an analogous formation. To establish reasonable certainty with respect to our estimated proved reserves, the technologies and economic data used in the estimation of our proved reserves have been demonstrated to yield results with consistency and repeatability, and include production and well test data, downhole completion information, geologic data, electrical logs, radioactivity logs, core data, and historical well cost and operating expense data.

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*Summary of Reserves*.*** The following tables present our estimated net proved reserves as of December 31, 2025 and 2024, based on our proved reserve estimates as of such dates, which have been prepared by CG&A and

Schaper Energy, respectively, our independent petroleum engineering firms, in accordance with the rules and regulations of the SEC. All of our proved reserves are located in the United States. The increase in our estimated net proved reserves over this period was primarily the result of an increase in commodity prices.

The table below summarizes our present value and reserves as of December 31, 2025:

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|:---|:---|
|  | **WhiteHawk<sup>(1)</sup>** |
|  | (dollars in thousands) |
|  **Estimated proved developed producing reserves:** |  |
|  Natural gas (MMcf) | 154137 |
|  NGLs (MBbls) | 2914 |
|  Oil (MBbls) | 1154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(2)</sup>** | **178544** |
|  **Estimated proved developed non-producing reserves:** |  |
|  Natural gas (MMcf) | 19094 |
|  NGLs (MBbls) | 459 |
|  Oil (MBbls) | 203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(2)</sup>** | **23066** |
|  **Estimated proved undeveloped reserves:** |  |
|  Natural gas (MMcf) | 4149 |
|  NGLs (MBbls) | 84 |
|  Oil (MBbls) | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(2)</sup>** | **4864** |
|  **Estimated proved reserves:** |  |
|  Natural gas (MMcf) | 177380 |
|  NGLs (MBbls) | 3457 |
|  Oil (MBbls) | 1392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(2)</sup>** | **206473** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Standardized Measure($)** | $**266326** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **PV-10 ($)<sup>(3)</sup>** | $**293690** |

---

(1) Our estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry Hub
spot price calculated in accordance with SEC guidance of $3.387 per MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West Texas
Intermediate price calculated in accordance with SEC guidance of $65.34 per barrel as of December 31, 2025 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All economic
factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $3.03 per Mcf of gas, $22.03 per
barrel of NGLs and $62.99 per barrel of oil as of December 31, 2025.

(2) Natural gas equivalents are calculated using a ratio of six thousand cubic feet of natural gas to one barrel of
oil, condensate or NGLs, based on approximate relative energy content. This ratio does not represent the current or historical price relationship between natural gas and oil or NGLs.

(3) PV-10 is a non-GAAP financial
measure and differs from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure. PV-10 is a computation of the standardized measure of
discounted future net cash flows on a pre-tax basis. PV-10 is equal to the standardized measure of discounted future net cash flows at the applicable date, before
deducting future income taxes, discounted at 10% using SEC rules. We believe that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows
attributable to our estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas properties. Further, investors may
utilize PV-10 as a basis for comparison of the relative size and value of our reserves to other companies without regard to the specific tax characteristics of such entities. We use PV-10 when assessing the potential return on investment related to our oil and natural gas properties; however, PV-10 is not a substitute for the standardized measure of
discounted future net cash flows. PV-10 and the standardized measure of discounted future net cash flows do not purport to represent the fair value of our oil and natural gas reserves. See
"—Reconciliation of Standardized Measure to PV-10."

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##### [**Table of Contents**](#toc)
The table below summarizes our, PHX and the TRR Seller's present value and reserves as of December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **WhiteHawk<sup>(1)</sup>** | **PHX<sup>(2)</sup>** | **TRR<br>Seller<sup>(3)</sup>** |
|  | (dollars in thousands) | (dollars in thousands) | (dollars in thousands) |
|  **Estimated proved developed producing reserves:** |  |  |  |
|  Natural gas (MMcf) | 64783 | 41648 | 47103 |
|  NGLs (MBbls) | 690 | 1320 | 653 |
|  Oil (MBbls) | 23 | 943 | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(4)</sup>** | **69061** | **55227** | **51105** |
|  **Estimated proved developed non-producing reserves:** |  |  |  |
|  Natural gas (MMcf) | 469 | 901 | 2424 |
|  NGLs (MBbls) | 11 | 2 | 61 |
|  Oil (MBbls) | 0 | 5 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(4)</sup>** | **535** | **944** | **2814** |
|  **Estimated proved undeveloped reserves:** |  |  |  |
|  Natural gas (MMcf) | 16469 | 6758 | 0 |
|  NGLs (MBbls) | 176 | 26 | 0 |
|  Oil (MBbls) | 16 | 99 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(4)</sup>** | **17619** | **7506** | **0** |
|  **Estimated proved reserves:** |  |  |  |
|  Natural gas (MMcf) | 81721 | 49307 | 49527 |
|  NGLs (MBbls) | 877 | 1348 | 714 |
|  Oil (MBbls) | 39 | 1047 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total (MMcfe)<sup>(4)</sup>** | **87213** | **63677** | **53919** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Standardized Measure($)<sup>(5)</sup>** | $**61933** | $**76255** | $**45088** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **PV-10($)<sup>(5)</sup>** | $**72153** | $**79642** | $**45088** |

---

(1) Our estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry Hub
spot price calculated in accordance with SEC guidance of $2.13 per MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West Texas
Intermediate price calculated in accordance with SEC guidance of $75.48 per barrel as of December 31, 2024 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All economic
factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $1.788 per Mcf of gas, $26.32 per
barrel of NGLs and $65.26 per barrel of oil as of December 31, 2024. Estimates of our reserves were based upon the reserve report prepared by our independent petroleum engineer, Schaper Energy Consulting, LLC.

(2) PHX's estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry
Hub spot price calculated in accordance with SEC guidance of $2.13 per MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West
Texas Intermediate price calculated in accordance with SEC guidance of $75.48 per barrel as of December 31, 2024 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All economic
factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $2.051 per Mcf of gas, $20.968 per
barrel of NGLs and $73.477 per barrel of oil as of December 31, 2024. Estimates of PHX's reserves were based upon the reserve report prepared by PHX's independent petroleum engineer, Cawley, Gillespie & Associates, Inc.

(3) The TRR Seller's estimated reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC guidance. For gas volumes, the average Henry Hub
spot price calculated in accordance with SEC guidance of $2.13 per MMBtu was adjusted for local basis differential, treating cost, transportation, gas shrinkage and gas heating value (BTU content). For NGLs and oil volumes, the average West Texas
Intermediate price calculated in accordance with SEC guidance of $75.48 per barrel as of December 31, 2024 was adjusted for local basis differential, treating cost, transportation and/or crude quality and gravity corrections. All economic
factors were held constant throughout the lives of the properties in accordance with SEC guidelines. The average adjusted product prices weighted by production over the remaining lives of the proved properties were $1.44 per Mcf of gas,
$23.67 per barrel of NGLs and $71.51 per barrel of oil as of December 31, 2024. Estimates of TRR Seller's reserves were based upon the reserve report prepared by TRR Seller's independent petroleum engineer, Ryder Scott Company,
LP.

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##### [**Table of Contents**](#toc)
(4) Natural gas equivalents are calculated using a ratio of six thousand cubic feet of natural gas to one barrel of
oil, condensate or NGLs, based on approximate relative energy content. This ratio does not represent the current or historical price relationship between natural gas and oil or NGLs.

(5) PV-10 is a non-GAAP financial
measure and differs from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure. PV-10 is a computation of the standardized measure of
discounted future net cash flows on a pre-tax basis. PV-10 is equal to the standardized measure of discounted future net cash flows at the applicable date, before
deducting future income taxes, discounted at 10% using SEC rules. We believe that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows
attributable to our estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas properties. Further, investors may
utilize PV-10 as a basis for comparison of the relative size and value of our reserves to other companies without regard to the specific tax characteristics of such entities. We use PV-10 when assessing the potential return on investment related to our oil and natural gas properties; however, PV-10 is not a substitute for the standardized measure of
discounted future net cash flows. PV-10 and the standardized measure of discounted future net cash flows do not purport to represent the fair value of our oil and natural gas reserves. See
"—Reconciliation of Standardized Measure to PV-10."

The following table provides information regarding our gross and net drilling locations by basin and reserve category as of December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **PDP** | **WIPs** | **Permits** | **Other<br>Locations** | **Total** |
|  **Basin / Region** |  |  |  |  |  |
|  Appalachia | 2322 | 150 | 79 | 2563 | 5114 |
|  Haynesville | 2203 | 64 | 30 | 1487 | 3784 |
|  Mid-Continent | 5492 | 65 | 21 | 3866 | 9444 |
|  Other | 930 | 15 | 6 | 437 | 1388 |
|  **Total Gross Location Count** | **10947** | **294** | **136** | **8352** | **19729** |
|  **Total Net Location Count** | **75.2** | **1.2** | **0.3** | **26.46** | **103.22** |

---

*Summary of Undeveloped Locations*. The following table presents our estimated undeveloped inventory as of December 31, 2025, which have been audited by our independent petroleum engineering firm, CG&A. CG&A's review considered only technical criteria in reviewing undeveloped locations and did not attempt to determine commerciality of any location or intent by operators to develop such locations identified by the Company. Further, no reserves (except for those presented as part of CG&A's reserve report dated March 13, 2026, with respect to the Company's proved reserves as of December 31, 2025) have been quantified beyond identifying numbers of viable undeveloped locations based on their technical review.

We identify drilling locations based on our assessment of current geologic, engineering and land data. This includes DSU formation, current well spacing and typical lateral length information derived from state agencies and operations of the E&P companies drilling our mineral interests. Our extensive inventory includes locations in the Appalachian Basin, Haynesville Basin, Mid-Continent Region and other basins and regions.

The following table provides information regarding our gross and net locations by region or basin based on technical parameters as of December 31, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Gross Undeveloped Location Count<sup>(1)</sup>** | **Gross Undeveloped Location Count<sup>(1)</sup>** | **Gross Undeveloped Location Count<sup>(1)</sup>** | **Net Undeveloped<br>Location Count<sup>(4)</sup>** | **Average Lateral<br>Length** |
| **Region / Basin** | **Included in Proved<br>Reserves<sup>(2)</sup>** | **Other**<br>**Locations<sup>(3)</sup>** | **Total** | **Total** | **(feet)** |
|  Appalachian Basin | 229 | 2563 | 2792 | 8.7 | 13246 |
|  Haynesville Basin | 94 | 1487 | 1581 | 3.1 | 9267 |
|  Mid-Continent Basin<sup>(5)</sup> | 86 | 3866 | 3952 | 14.1 | 9314 |
|  Other<sup>(6)</sup> | 21 | 437 | 458 | 2.1 | 9864 |

---

(1) Numbers of gross well locations may vary based on actual lateral lengths drilled by operators.

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##### [**Table of Contents**](#toc)
(2) Includes Proved Undeveloped locations included as part of CG&A's reserve report dated March 13,
2026 with respect to the Company's proved reserves as of December 31, 2025. Includes WIPs and permits as defined by management.

(3) Includes locations not included as part of CG&A's reserve report dated March 13, 2026 with respect to
the Company's proved reserves as of December 31, 2025; however, such locations have been audited and approved by CG&A. Includes other undeveloped locations, as defined by management.

(4) Reflects management's estimated net revenue interest multiplied by Total Gross Undeveloped Locations as
audited by CG&A.

(5) Includes locations in the SCOOP, STACK, Cherokee, Arkoma and Fayetteville.

(6) Includes locations in the Bakken.

*Reconciliation of Standardized Measure to PV-10*. PV-10 is a non-GAAP financial measure and differs from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure. PV-10 is a computation of the standardized measure of discounted future net cash flows on a pre-tax basis. PV-10 is equal to the standardized measure of discounted future net cash flows at the applicable date, before deducting future income taxes, discounted at 10% using SEC rules. We believe that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows attributable to our estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas properties. Further, investors may utilize PV-10 as a basis for comparison of the relative size and value of our reserves to other companies without regard to the specific tax characteristics of such entities. We use PV-10 when assessing the potential return on investment related to our oil and natural gas properties; however, PV-10 is not a substitute for the standardized measure of discounted future net cash flows. PV-10 and the standardized measure of discounted future net cash flows do not purport to represent the fair value of our oil and natural gas reserves.

The following table presents a reconciliation of PV-10 to the most directly comparable GAAP financial measure for the period indicated (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
|  | **2024** | **2025** |
|  Standardized measure | $61933 | $266326 |
|  Present value of future income tax discounted 10% | 10220 | 27364 |
|  PV-10 of proved reserves | 72153 | 293690 |

---

**PUDs** 

As of December 31, 2025, we estimated our PUD reserves to be 4,149 MMcf of natural gas, 84 MBbls of NGLs and 35 MBbls of oil, for a total of 4,864 MMcfe. As of December 31, 2024, we estimated our PUD reserves to be 16,469 MMcf of natural gas, 176 MBbls of NGLs and 16 MBbls of oil, for a total of 17,619 MMcfe. PUDs will be converted from undeveloped to developed as the applicable wells begin production.

The following table summarize our changes in PUDs during the year ended December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Natural**<br>**Gas**<br>**(Mmcf)** | **Crude**<br>**Oil**<br>**(Mbbl)** | **NGL**<br>**(Mbbl)** | **Proved<br>Undeveloped<br>Reserves<br>(MMcfe)<sup>(1)</sup>** |
|  | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  **Balance, December 31, 2024** | 16469 | 16 | 176 | 17619 |
|  Acquisitions of reserves |  |  |  |  |
|  Extensions and discoveries | 2255 | 20 | 69 | 2785 |
|  Divestiture of minerals in place |  |  |  |  |
|  Revisions of previous estimates | (5256) | 9 | (68) | (5602) |
|  Transfers to estimated proved developed | (9319) | (10) | (93) | (9939) |
|  **Balance, December 31, 2025** | 4149 | 35 | 84 | 4864 |

---

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##### [**Table of Contents**](#toc)
(1) Natural gas equivalents are calculated using a ratio of six thousand cubic feet of natural gas to one barrel of
oil, condensate or NGLs, based on approximate relative energy content. This ratio does not represent the current or historical price relationship between natural gas and oil or NGLs.

Changes in PUDs that occurred during 2025 were primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• well additions, extensions and discoveries of approximately 2.8 Bcfe. 2.8 Bcfe was added as proved undeveloped
over 232 gross locations due to increased operator activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• negative revisions of approximately 7.5 Bcfe. 5.3 Bcfe decrease over 228 gross locations being reclassified to
non-proved due to changes in operator development. 2.2 Bcfe decrease over 23 locations being reclassified to non-proved due to changes in operator unit configuration; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• positive revisions of approximately 1.1 Bcfe. 1.1 Bcfe increase over 531 gross locations due to wells that were
identified as having a WhiteHawk ownership.

As a mineral and royalty interests owner, we do not incur any capital expenditures or lease operating expenses in connection with the development of our PUDs, which costs are borne entirely by the operator. As a result, during the twelve months ended December 31, 2025, we did not have any expenditures to convert PUDs to proved developed reserves.

We identify drilling locations based on our assessment of current geologic, engineering and land data. This includes DSU formation and current well spacing information derived from state agencies and the operations of the E&P companies drilling our mineral interests. We generally do not have evidence of approval of our operators' development plans, however we do rely on publicly available information from our third-party operators. As a mineral and royalty company, our PUDs are limited exclusively to locations for which we have public confirmation that the third-party operator has initiated the drilling process for a specific well location. For our purposes, this includes WIPs, where third-party operators have publicly reported a spud date or otherwise confirmed that drilling has commenced, as well as wells that have been drilled but are not yet producing, including those undergoing completion activities. We also include locations covered by approved, publicly available drilling permits where the operator has received regulatory authorization but has not yet commenced drilling. Accordingly, all of our PUDs consist solely of WIPs or permitted locations supported by public operator disclosures, and we do not include speculative or unpermitted future development locations in our PUD inventory. As of December 31, 2025 and 2024, approximately 2% and 20%, respectively, of our total proved reserves were classified as PUDs.

**Natural Gas, NGL and Production Prices and Costs** 

***Production and Price History***

The following table sets forth information regarding net production of natural gas, NGLs and oil, and certain price and cost information for each of the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2024** | **Year Ended<br>December 31, 2024** | **Year Ended<br>December 31, 2024** | **Year Ended<br>December 31, 2025** |
|  | **PHX** | **TRR Seller** | **WhiteHawk** | **WhiteHawk** |
|  **Production:** |  |  |  |  |
|  Natural gas (Mcf) | 7969948 | 5826061 | 7370198 | 16586178 |
|  NGLs (Bbls) | 133609 | 67883 | 74350 | 210677 |
|  Oil (Bbls) | 178357 | 2513 | 3750 | 87970 |
|  Equivalents (Mcfe) | 9841746 | 6248432 | 7838798 | 18378060 |
|  Equivalents per day (Mcfe) | 26964 | 18209 | 21417 | 50351 |
|  **Realized Prices** |  |  |  |  |
|  Natural gas (Mcf) | $2.19 | $1.78 | $1.85 | $2.94 |
|  NGLs (Bbls) | $21.95 | $25.08 | $25.50 | $21.94 |
|  Oil (Bbls) | $74.59 | $63.82 | $54.67 | $60.93 |

---

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##### [**Table of Contents**](#toc)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2024** | **Year Ended<br>December 31, 2024** | **Year Ended<br>December 31, 2024** | **Year Ended<br>December 31, 2025** |
|  | **PHX** | **TRR Seller** | **WhiteHawk** | **WhiteHawk** |
|  Equivalents (Mcfe)<sup>(1)</sup> | $3.42 | $1.96 | $2.01 | $3.19 |
|  **Average Realized Price After Effects of Derivative Settlements:** |  |  |  |  |
|  Natural gas (per Mcf) | $2.75 | $3.26 | $3.04 | $3.45 |
|  **Average costs (per Mcfe):** |  |  |  |  |
|  Transportation, gathering, and marketing | $0.46 | $0.39 |  |  |
|  Depletion, depreciation and accretion | $0.98 | $0.54 | $1.38 | $1.32 |
|  Interest expense, net | $0.26 | $0.31 | $0.50 | $1.04 |
|  General and administrative | $1.19 | $0.16 | $0.36 | $0.90 |
|  **Total** | $3.19 | $1.40 | $2.24 | $3.26 |

---

(1) Natural gas equivalents are calculated using a ratio of six thousand cubic feet of natural gas to one barrel of
oil, condensate or NGLs, based on approximate relative energy content. This ratio does not represent the current or historical price relationship between natural gas and oil or NGLs.

**Productive Wells** 

Productive wells consist of producing horizontal and vertical wells, wells capable of production and exploratory, development or extension wells that are not dry wells. As of December 31, 2025, we owned mineral and royalty interests in 10,947 gross productive wells and 75.2 net productive wells.

The majority of our mineral and royalty interests are leased to our operators with 94% of our 90,729 leased net mineral acres being held by production as of December 31, 2025. In addition, we had 4,585 net mineral acres that were not leased as of December 31, 2025.

***Drilling Results***

For the year ended December 31, 2025, 411 gross and 1.4 net wells turned to production. As of December 31, 2025, we owned interests in a total of 10,947 gross productive wells (75.2 net wells), which represents our cumulative producing well count across all of our mineral and royalty interests as of such date, rather than wells turned to production during the year, and our third-party operators turned to production 411 gross and 1.4 net wells on acreage in which we own mineral and royalty interests. As a holder of mineral and royalty interests, we generally are not provided information as to whether any wells drilled on the properties underlying our acreage are classified as exploratory or as developmental wells. We are not aware of any dry holes drilled on the acreage underlying our mineral interests during the relevant periods.

---

| | | |
|:---|:---|:---|
|  | **For the Year<br>Ended<br>December 31,** | **For the Year<br>Ended<br>December 31,** |
|  | **2025** | **2024** |
|  **Productive Gross** | 411 | 257 |
|  **Dry** | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** | 411 | 257 |
|  **Productive Net** | 1.4 | 0.59 |

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##### [**Table of Contents**](#toc)
***Acreage***

The following table sets forth historical information about our developed and undeveloped net mineral acres as of December 31, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Net<br>Mineral<br>Acres** | **Weighted<br>Avg. Net<br>Revenue<br>Interest** | **NRA<br>(1/8<sup>th</sup><br>Basis)<sup>(1)</sup>** | **Total<br>NRAs<br>(100%<br>Basis)** |
|  Developed | 52887 | 0.69% | 73257 | 9157 |
|  Undeveloped | 42427 | 0.32% | 58769 | 7346 |
|  Total | **95314** | **0.48%** | **132026** | **16503** |

---

(1) Standardized to a 1/8th royalty: The hypothetical number of acres in which an owner owns a standardized 12.5%
royalty interest, calculated by multiplying the actual net mineral acres by the average royalty rate and dividing by 12.5%. For example, an owner who has a 25% royalty interest in 100 acres would own 200 NRAs on a 1/8th basis.

**Regulation of Environmental and Occupational Safety and Health Matters** 

Natural gas, NGL and oil exploration, development and production operations are subject to stringent laws and regulations governing the discharge of materials into the environment or otherwise relating to protection of the environment, natural resources, and occupational health and safety. These laws and regulations have the potential to impact production by our third-party operators on our properties, including requirements to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obtain permits to conduct regulated activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit or prohibit drilling activities on certain lands lying within wilderness, wetlands, habitats of listed or
protected species and other protected areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrict the types, quantities and concentration of materials that can be released into the environment in the
performance of drilling and production activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• initiate investigatory and remedial measures to mitigate pollution from former or current operations, such as
restoration of drilling pits and plugging of abandoned wells;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• apply specific health and safety criteria addressing worker protection; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impose substantial liabilities for pollution resulting from operations.

Failure to comply with environmental laws and regulations may result in the assessment of administrative, civil and criminal sanctions, including monetary penalties, the imposition of strict, joint and several liability, investigatory and remedial obligations and the issuance of injunctions limiting or prohibiting some or all of the operations on our properties. Moreover, these laws, rules and regulations may restrict the rate of natural gas, NGL and oil production below the rate that would otherwise be possible. The regulatory burden on the natural gas and oil industry increases the cost of doing business in the industry and consequently affects profitability. The trend in environmental regulation has been to place more restrictions and limitations on activities that may affect the environment or natural resources and thus, any changes in environmental laws and regulations or re-interpretation of enforcement policies that result in more stringent and costly construction, drilling, water management, completion, emission or discharge limits or waste handling, disposal or remediation obligations could increase the cost to our third-party operators of developing our properties. Moreover, accidental releases or spills may occur in the course of operations on our properties, potentially causing our third-party operators to incur significant costs and liabilities as a result of such releases or spills, including any third-party claims for damage to property, natural resources or persons.

Increased costs or operating restrictions on our properties as a result of compliance with environmental laws could result in reduced exploratory and production activities by our third-party operators on our properties and,

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##### [**Table of Contents**](#toc)
as a result, our revenues and results of operations. The following is a summary of certain existing environmental, health and safety laws and regulations, each as amended from time to time, to which operations on our properties by our third-party operators are subject.

***Regulation of Transportation***

The sale and transportation of our natural gas, NGLs and crude oil is generally undertaken by our third-party operators (or by third parties at the direction of such operators) of our properties. Sales of crude oil, condensate and NGL are not currently regulated and are made at negotiated prices; however, Congress has enacted price controls in the past and could reenact price controls in the future. Sales of crude oil are affected by the availability, terms and cost of transportation. The transportation of oil in common carrier pipelines is also subject to rate regulation. The Federal Energy Regulatory Commission ("FERC") regulates interstate oil pipeline transportation rates under the Interstate Commerce Act. Intrastate oil pipeline transportation rates are subject to regulation by state regulatory commissions. The basis for intrastate oil pipeline regulation, and the degree of regulatory oversight and scrutiny given to intrastate oil pipeline rates, varies from state to state. Interstate and intrastate common carrier oil pipelines must provide service on a non-discriminatory basis. Under this open access standard, common carriers must offer service to all shippers requesting service on the same terms and under the same rates. When oil pipelines operate at full capacity, access is governed by pro-rationing provisions set forth in the pipelines' published tariffs.

FERC has endeavored to make natural gas transportation more accessible to natural gas buyers and sellers on an open and non-discriminatory basis. FERC has stated that open access policies are necessary to improve the competitive structure of the interstate natural gas pipeline industry and to create a regulatory framework that will put natural gas sellers into more direct contractual relations with natural gas buyers by, among other things, unbundling the sale of natural gas from the sale of transportation and storage services. Although FERC's orders do not directly regulate natural gas producers, they are intended to foster increased competition within all phases of the natural gas industry.

***Hazardous Substances and Waste Handling***

The Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), also known as the "Superfund" law, and comparable state laws impose strict, joint and several liability without regard to fault or the legality of the original conduct on certain classes of persons who are considered to be responsible for the release of a "hazardous substance" into the environment. Under CERCLA, these "responsible persons" may include the current or former owner or operator of the site where the release occurred, and entities that transport, dispose of or arrange for the transport or disposal of hazardous substances released at the site. These responsible persons may be subject to joint and several strict liability for the costs of cleaning up the hazardous substances that have been released into the environment, for damages to natural resources and for the costs of certain health studies. CERCLA also authorizes the EPA and, in some instances, third parties to act in response to threats to the public health or the environment and to seek to recover from the responsible classes of persons the costs they incur. It is not uncommon for neighboring landowners and other third-parties to file claims for personal injury and property damage allegedly caused by the hazardous substances released into the environment.

The Resource Conservation and Recovery Act ("RCRA") and comparable state laws regulate the management, generation, treatment, storage and disposal of hazardous and non-hazardous waste. With federal approval, individual states administer some or all of the provisions of RCRA, sometimes in conjunction with their own, more stringent requirements. Drilling fluids, produced waters and most of the other wastes associated with the exploration, development and production of natural gas, NGLs and oil, if properly handled, are currently exempt from regulation as hazardous waste under RCRA and, instead, are regulated under RCRA's less stringent non-hazardous waste provisions, state laws or other federal laws. However, it is possible that certain natural gas, NGLs and oil drilling and production wastes now classified as non-hazardous could be classified as hazardous wastes in the future. Any such change could result in an increase in the costs to manage and dispose of such wastes, which could increase the costs of our third-party operators' operations.

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Certain of our properties have been used for natural gas and oil exploration and production for many years. Although former third-party operators may have utilized operating and disposal practices that were standard in the industry at the time, petroleum hydrocarbons and wastes may have been disposed of or released on or under our properties, or on or under other offsite locations where these petroleum hydrocarbons and wastes have been taken for recycling or disposal. Our properties and the petroleum hydrocarbons and wastes disposed or released thereon may be subject to CERCLA, RCRA and analogous state laws. Under such laws, the owner or operator could be required to remove or remediate previously disposed wastes, to clean up contaminated property and to perform remedial operations such as restoration of pits and plugging of abandoned wells to prevent future contamination or to pay some or all of the costs of any such action.

***Water Discharges and NORM***

The Federal Water Pollution Control Act (the "Clean Water Act" or the "CWA") and analogous state laws impose restrictions and strict controls with respect to the discharge of dredged or fill material and the discharge of pollutants, including spills and leaks of oil, into waters of the United States ("WOTUS") and state waters, including certain wetlands. The discharge of pollutants into regulated waters is prohibited, except in accordance with the terms of a permit issued by the EPA or an analogous state agency. The discharge of dredged or fill material typically requires a permit issued by the U.S. Army Corps of Engineers ("Corps").

Federal and state regulatory agencies can impose administrative, civil and criminal penalties for non-compliance with discharge permits or other requirements of the Clean Water Act and analogous state laws and regulations. Spill prevention, control and countermeasure ("SPCC") plan requirements imposed under the Clean Water Act require appropriate containment berms and similar structures to help prevent the contamination of navigable waters in the event of a hydrocarbon tank spill, rupture or leak and require certain facility operators to develop, implement, and maintain SPCC plans. The Clean Water Act and analogous state laws also require individual permits or coverage under general permits for discharges of storm water runoff from certain types of facilities and requires those facilities to develop and implement stormwater pollution prevention plans. The Oil Pollution Act of 1990, as amended (the "OPA"), amends the Clean Water Act and establishes strict liability and natural resource damages liability for unauthorized discharges of oil into waters of the United States. OPA requires owners or operators of certain onshore facilities to prepare facility response plans for responding to a worst-case discharge of oil into waters of the United States. Uncertainty with respect to water discharges and changes in water regulations, including under the Clean Water Act and the OPA, have the potential to delay or materially modify the issuance of permits which may be required for certain of our third-party operators' activities.

The scope of federal jurisdictional reach over WOTUS under the CWA has been subject to significant uncertainty and litigation. In September 2023, the EPA and the Corps issued a final rule conforming the regulatory definition of WOTUS to the U.S. Supreme Court's 2023 decision in *Sackett v. EPA*, which narrowed the scope of federally jurisdictional waters to "relatively permanent, standing, or continuously flowing bodies of water" and wetlands with a "continuous surface connection" to such waters. However, the rule is currently subject to litigation. As a result, the September 2023 rule is currently in effect in only 24 states, and the EPA and the Corps are using the pre-2015 definition of WOTUS in the other 26 states. In November 2025, the EPA and the Corps issued a proposed rule to further update and narrow the definition of WOTUS. In addition, the U.S. Supreme Court's 2020 decision in *County of Maui v. Hawaii Wildlife Fund* held that, in certain cases, certain discharges from a point source to groundwater could fall within the scope of the CWA and require a permit.

Also, in January 2026, the EPA released a proposed rule to revise its CWA Section 401 Certification Rule following a May 2025 memorandum raising concerns with the existing rule implementing Section 401 promulgated in November 2023. Under CWA Section 401, a federal agency may not issue a license or permit to conduct an activity that may result in a discharge into a WOTUS unless a state or authorized Tribe issues or waives Section 401 water quality certification. The January 2026 proposed rule seeks to limit the scope of Section 401 reviews and clarify the regulations to ensure such reviews are completed within the one-year statutory deadline. Eleven states sued the EPA challenging the 2023 CWA Section 401 Certification Rule, alleging that the

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rule exceeds the EPA's statutory authority under the CWA, including in *State of Louisiana, et al., v. EPA, et al.*, which has been held in abeyance pending the administration's review of the rule and litigation. The final rule revising the CWA Section 401 Certification Rule is expected in Spring 2026. However, opponents of the January 2026 proposal are pushing back on these efforts, including EPA efforts to narrow the scope of state authority.

In addition, wastes containing naturally occurring radioactive material ("NORM") may be generated in connection with our third-party operators' natural gas and oil production. Certain processes used to produce natural gas and oil may enhance the radioactivity of NORM, which may be present in oilfield wastes. Comprehensive federal regulation does not currently exist for NORM. However, the EPA has studied the impacts of technologically enhanced NORM. NORM is subject primarily to individual state radiation control regulations. In addition, NORM handling and management activities are governed by regulations promulgated by OSHA. These state and OSHA regulations impose certain requirements concerning worker protection, the treatment, storage and disposal of NORM waste and the management of waste piles, containers and tanks containing NORM, as well as restrictions on the uses of land with NORM contamination. Concerns have arisen over traditional NORM disposal practices (including discharge through publicly owned treatment works into surface waters), which may increase the costs associated with management of NORM. To the extent that federal or state regulation increases the compliance costs for NORM disposal, our third-party operators may incur additional costs that may make some properties unprofitable to operate.

***Air Emissions***

The CAA and comparable state laws restrict the emission of air pollutants from many sources through air emissions permitting programs and impose various monitoring and reporting requirements. CAA regulations include, among others, New Source Performance Standards for the oil and natural gas source category to address emissions of sulfur dioxide, methane and volatile organic compounds and a separate set of emissions standards to address hazardous air pollutants frequently associated with oil and natural gas production and processing activities. These laws and regulations may require our third-party operators to obtain pre-approval for the construction or modification of certain projects or facilities expected to produce or significantly increase air emissions, obtain and strictly comply with stringent air permit requirements or incur development expenses to install and utilize specific equipment or technologies to control emissions. For example, in December 2023, the EPA finalized new rules intended to reduce methane emissions from gas and oil sources. The rules strengthened the existing emissions reduction requirements in regulations known as Subpart OOOOa, expanded reduction requirements for new, modified and reconstructed natural gas and oil sources in Subpart OOOOb, and imposed methane emissions limitations on existing natural gas and oil sources nationwide for the first time in Subpart OOOOc. In Subpart OOOOc, the rules established "Emissions Guidelines," which required states to develop plans to reduce methane emissions from existing sources that must be at least as effective as presumptive standards set by the EPA. The rules also created a new third-party monitoring program to flag large emissions events, referred to as "super emitters." Under Subparts OOOOb and OOOOc, the rules established more stringent requirements for new, modified and reconstructed natural gas and oil sources constructed after December 6, 2022, meaning that sources constructed prior to that date will be considered existing sources with later compliance dates. The rules gave states, along with federal tribes that wish to regulate existing sources, until March 2026 to develop and submit their plans for reducing methane emissions from existing sources. The final emissions guidelines under Subpart OOOOc provided until 2029 for existing sources to comply. However, in March 2025, the EPA announced plans to reconsider Subparts OOOOb and OOOOc and, in November 2025, the EPA finalized an interim final rule extending certain compliance deadlines for certain provisions provided in the 2023 rules. Litigation challenging the final interim final rule remains pending.

Additionally, in May 2024, the EPA finalized amendments to the Greenhouse Gas Reporting Program for petroleum and natural gas facilities in accordance with the Inflation Reduction Act. Among other things, the rule expands the emissions events that are subject to reporting requirements to include "other large release events." The emissions reported under the Greenhouse Gas Reporting Program were intended to be the basis for any Waste Emissions Charges assessed under the Methane Emissions Reduction Program of the Inflation Reduction

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Act. However, in February 2026, the EPA finalized a rule rescinding the GHG "Endangerment Finding" that underlies these regulations on the basis that the finding, among other reasons, exceeds the EPA's statutory authority. Litigation challenging the final rule is pending, and as a result there is significant uncertainty with respect to regulation of GHG emissions. Further, in September 2025, the EPA proposed to delay the reporting of GHG emissions under the Greenhouse Gas Reporting Program for the oil and gas sector until 2034. This proposal is still under consideration and is subject to a number of uncertainties and will likely face legal challenges that would further delay the implementation of any rules, and we cannot predict the ultimate outcome.

In November 2024, the EPA finalized a regulation to implement the Inflation Reduction Act's Waste Emissions Charge. The rule required the EPA to impose and collect a Waste Emissions Charge annually from oil and gas facilities that exceed statutory methane emissions thresholds. However, in February 2025, Congress repealed the Waste Emissions Charge rule using the Congressional Review Act. In addition, the One Big Beautiful Bill Act, enacted in July 2025, delayed implementation of the charge until 2034. While the EPA cannot reissue its rule implementing the Waste Emissions Charge (either in substantially the same form or in a new rule), the underlying requirement in the Inflation Reduction Act remains unchanged. We cannot predict if the Trump Administration and/or Congress may take action to repeal or revise this requirement of the Inflation Reduction Act; however, compliance with this and other air pollution control and permitting requirements has the potential to delay the development of natural gas projects and increase our third-party operators' costs of development, which costs could be significant. In addition, various states have adopted or are considering adopting new rules to reduce emissions from oil and gas operations in the state, including requirements for more extensive emissions monitoring and reporting. Any such requirements could increase the costs for our third-party operators of development and production on our properties, potentially impairing the economic development of our properties. Obtaining permits has the potential to delay the development of natural gas and oil projects. Federal and state regulatory agencies may impose administrative, civil and criminal penalties for non-compliance with air permits or other requirements of the CAA and associated state laws and regulations.

***Climate Change***

The threat of climate change continues to attract considerable attention in the United States and around the world, and numerous proposals have been made and could continue to be made at the international, national, regional and state levels of government, and among trade organizations and industry groups to monitor and limit existing emissions of GHGs as well as to restrict or eliminate such future emissions. While Congress has from time to time considered legislation to reduce emissions of GHGs, comprehensive legislation aimed at reducing GHG emissions has not yet been adopted at the federal level, and in February 2026, the EPA issued a final rule rescinding the "Endangerment Finding" that provides the underlying basis for the majority of its GHG regulations. A number of state and regional efforts have emerged that are aimed at tracking or reducing GHG emissions by means of cap-and-trade programs, which typically require major sources of GHG emissions to acquire and surrender emission allowances in return for emitting those GHGs, or by means of emissions reporting or climate risk disclosure requirements. Litigation risks are also increasing, as a number of parties have sought to bring suit against oil and natural gas companies in state or federal court, alleging, among other things, that such companies created public nuisances by producing fuels that contributed to climate change or that companies have been aware of the adverse effects of climate change for some time but defrauded their investors or customers by failing to adequately disclose those impacts. For further discussion regarding these international, federal, and state regulatory and policy initiatives as well as climate change transition and physical risks affecting our and our third-party operators' businesses see "Risk Factors—Risks Related to Legal, Regulatory and Environmental Matters—The development and enactment of climate change legislation and regulation regarding emissions of GHGs could adversely affect the mineral industry and reduce demand for the natural gas and oil that our third-party operators produce."

***Hydraulic Fracturing Activities***

A substantial portion of the production on our properties by our third-party operators involve the use of hydraulic fracturing techniques. Hydraulic fracturing is an important and common practice that is used to stimulate

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production of natural gas, NGLs and oil from dense subsurface rock formations. The hydraulic fracturing process involves the injection of water, sand and chemical additives under pressure into targeted geological formations to fracture the surrounding rock and stimulate production. Most hydraulic fracturing is currently exempt from the definition of "underground injection" under the SDWA; however, legislation to repeal this exemption and require federal permitting and regulatory control of hydraulic fracturing activities, and to require disclosure of the chemical constituents of the fluids used in the fracturing process, has been proposed in Congress from time to time. This legislation has not been enacted.

Hydraulic fracturing typically is regulated by state natural gas and oil commissions or similar agencies, but the EPA has asserted federal regulatory authority pursuant to the SDWA over certain hydraulic fracturing activities involving the use of diesel fuel in fracturing fluids and issued permitting guidance that applies to such activities. While our third-party operators engaged in hydraulic fracturing do not currently use diesel fuels in their hydraulic fracturing fluids, they may become subject to federal permitting under the SDWA if their fracturing formula changes and may incur significant costs to comply with disposal requirements for hydraulic fracturing fluids and produced water. However, several federal agencies have asserted regulatory authority over certain aspects of the process. For example, the EPA has published an effluent limit guideline final rule prohibiting the discharge of wastewater from onshore unconventional oil and gas extraction facilities to publicly owned wastewater treatment plants. For more information, see "Risk Factors—Risks Related to Legal, Regulatory and Environmental Matters—Future legislative or regulatory changes may result in increased costs and decreased revenues, cash flows and liquidity, all of which could have a material adverse effect on our business, financial condition and results of operations—Hydraulic Fracturing and Water Disposal."

***Endangered Species Act***

The Endangered Species Act of 1973, as amended (the "ESA") and analogous state laws restrict activities that may affect endangered and threatened species or their habitats. Similar protections are offered to migratory birds under the Migratory Bird Treaty Act of 1918, as amended (the "MBTA") and to eagles under the Bald and Golden Eagle Protection Act. The ESA, MBTA, and similar laws provide for significant penalties for willful or even unintentional violations. The designation of previously unidentified endangered or threatened species could cause our third-party operators to incur additional costs or become subject to operating delays, restrictions or bans in the affected areas. To the extent species are listed under the ESA or similar state laws, or are protected under the MBTA, or previously unprotected species are designated as threatened or endangered in areas where our properties are located, operations on those properties could incur increased costs arising from species protection measures and face delays or limitations with respect to production activities thereon.

***National Environmental Policy Act***

The National Environmental Policy Act ("NEPA") is a procedural statute that requires federal agencies to evaluate the environmental impacts of major federal actions that may significantly affect the quality of the environment, which generally includes the granting of a permit or similar authorization by a federal agency. Some states have analogous laws that provide for similar environmental reviews. As part of such reviews, agencies are generally required to consider a broad array of environmental impacts, such as impacts of the proposed action on air quality, water quality, wildlife, cultural resources, geology, socioeconomics, and aesthetics, as well as practicable alternatives to the project. Procedures for implementing NEPA vary at the agency level. In May 2025, the U.S. Department of Interior issued a new "alternative arrangements" policy for NEPA reviews of proposed fossil fuel projects, significantly expediting environmental review. Also in May 2025, the U.S. Supreme Court held in *Seven County Infrastructure Coalition v. Eagle County, Colorado* that courts must grant agencies "substantial judicial deference" with respect to the scope and content of their NEPA reviews when considering NEPA challenges, and that an agency may decline to evaluate environmental effects from separate projects upstream or downstream from the project at issue. Further, in September 2025, the White House Council on Environmental Quality issued new guidance to federal agencies implementing NEPA, encouraging agencies to limit their NEPA reviews, rely more heavily on sponsor-prepared documents, and

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streamline the NEPA process. Certain of our third-party operators' operations may be subject to environmental reviews under NEPA or analogous state laws, which can cause significant delays in approval of permits. As a result of NEPA reviews, agencies may decide to deny permits or other support for a project or to condition permits or approvals on modifications or mitigation measures. Further, authorizations under NEPA are often subject to protest, appeal, or litigation, which may lead to further delays.

***Occupational Health and Safety***

Nearly all employers, including us and the third-party operators that conduct activities on our properties, are subject to the federal Occupational Safety and Health Act ("OSH Act") and comparable state statutes, which are intended to protect the health and safety of workers. As a minerals and royalties interest owner, we generally do not conduct field operations or employ on-site personnel; accordingly, our direct OSH Act obligations primarily relate to our corporate and administrative office locations. By contrast, our third-party operators are responsible for day-to-day field activities on our properties and are subject to more comprehensive and stringent requirements under the OSH Act and other federal and state laws applicable to natural gas and oil operations. For example, the Occupational Safety and Health Administration's hazard communication standard, the EPA's Risk Management Program, community right-to-know regulations under Title III of the federal Superfund Amendment and Reauthorization Act (also known as the Emergency Planning and Community Right-to-Know Act of 1986), and comparable state statutes require that information be organized and maintained concerning hazardous materials used or produced in operations and that this information be provided to employees, state and local government authorities and citizens. Other OSH Act standards regulate worker safety aspects of operations and workplaces. Failures to comply with OSH Act requirements, including those applicable to our third-party operators, can lead to the imposition of citations and penalties and could have a material adverse effect on our third-party operators' business, and, in turn, our financial condition and results of operations.

**Title to Properties** 

We are not required to, and under certain circumstances we may elect not to, incur the expense of retaining lawyers to examine the title to our mineral and royalty interests. Our title review is meant to confirm the quantum of mineral and royalty interest owned by a prospective seller, the property's lease status and royalty amount as well as encumbrances or other related burdens.

In addition to our initial title work, operators often will conduct a thorough title examination prior to leasing and/or drilling a well. Should a third-party operator's title work uncover any further title defects, either we or such third-party operator will perform curative work with respect to such defects. A third-party operator generally will not commence drilling operations on a property until any material title defects on such property have been cured.

We believe that the title to our assets is satisfactory in all material respects. Although title to these properties is in some cases subject to encumbrances, such as customary interests generally retained in connection with the acquisition of gas and oil interests, non-participating royalty interests and other burdens, easements, restrictions or minor encumbrances customary in the natural gas and oil industry, we believe that none of these encumbrances will materially detract from the value of these properties or from our interest in these properties. See "Risk Factors—Risks Related to Our Business—We may incur losses as a result of title defects or other issues in the properties we own which could have a material adverse effect on our business, financial condition and results of operations."

**Competition** 

The natural gas and oil business is highly competitive in the exploration for and acquisition of reserves, the acquisition of minerals and natural gas and oil leases and personnel required to find and produce reserves. Many factors beyond our control affect our competitive position. Some of these factors include: the quantity and price of foreign oil imports; domestic supply and deliverability of natural gas, NGL and oil; changes in prices received

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for natural gas, NGL and oil production; business and consumer demand for refined natural gas, NGL and oil products; and the effects of federal, state and local regulation of the exploration for, production of and sales of natural gas, NGL and oil.

Some of our competitors not only own and acquire mineral and royalty interests but also explore for and produce natural gas and oil and, in some cases, carry on midstream and refining operations and market petroleum and other products on a regional, national or worldwide basis. By engaging in such other activities, our competitors may be able to develop or obtain information that is superior to the information that is available to us. In addition, certain of our competitors may possess financial or other resources substantially larger than we possess. Our ability to acquire additional minerals and properties and to discover reserves in the future will be dependent upon our ability to evaluate and select suitable properties and to consummate transactions in a highly competitive environment.

In addition, natural gas and oil products compete with other forms of energy available to customers, primarily based on price. These alternate forms of energy include wind and solar, electricity, coal, and fuel oils. Changes in the availability or price of natural gas and oil or other forms of energy, as well as business conditions, conservation, legislation, regulations, and the ability to convert to alternate fuels and other forms of energy may affect the demand for natural gas and oil. See "Risk Factors—Risks Related to Our Industry—Our industry is highly competitive, and competitive pressures could negatively affect our business."

**Seasonality of Business** 

Weather conditions affect the demand for, and prices of, natural gas and can also delay drilling activities, disrupting our overall business plans. Additionally, some of the areas in which our properties are located are adversely affected by seasonal weather conditions, primarily in the winter and spring. During periods of heavy snow, ice or rain, our operators may be unable to move their equipment between locations, thereby reducing their ability to operate our wells, reducing the amount of natural gas and oil produced from the wells on our properties during such times. Furthermore, demand for natural gas is typically higher during the winter, resulting in higher natural gas prices for our natural gas production during our first and fourth quarters. Certain natural gas users utilize natural gas storage facilities and purchase some of their anticipated winter requirements during the summer, which can lessen seasonal demand fluctuations. Seasonal weather conditions can limit drilling and producing activities and other natural gas and oil operations in a portion of our operating areas. Due to these seasonal fluctuations, our results of operations for individual quarterly periods may not be indicative of the results that we may realize on an annual basis.

**Human Capital** 

***Overview and Structure***

We consider our people to be our most important asset, and seek to structure our hiring practices, compensation and benefits programs, and employee practices and policies to attract, retain, develop and support high-quality personnel. We invest in our employees by providing career growth opportunities and maintaining a focus on corporate ethics.

***Headcount***

Our workforce consists of full-time employees and consultants. As of December 31, 2025, we had 13 full-time employees and six individuals engaged as consultants. None of our employees are represented by labor unions or covered by any collective bargaining agreements.

***Compensation***

As part of our efforts to hire and retain highly qualified employees and service providers, we have structured compensation and benefits programs that, we believe, are competitive and sufficiently reward our high

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performers. In addition to the incentive programs in place for our named executive officers, we have structured a cash bonus program for non-officer employees that is dependent on an employee's individual performance and our performance as a company.

***Healthcare and Other Benefits***

We provide a suite of benefits to our employees, including a 401(k) plan with employer matching contributions and medical and dental insurance.

**Legal Proceedings** 

We are party to lawsuits arising in the ordinary course of our business. We cannot predict the outcome of any such lawsuits with certainty, but management believes it is remote that pending or threatened legal matters will have a material adverse impact on our financial condition.

Due to the nature of our business, we are, from time to time, involved in other routine litigation or subject to disputes or claims related to our business activities, including the non-payment of royalties. In the opinion of our management, none of these other pending litigations, disputes or claims against us, if decided adversely, will have a material adverse effect on our business, financial condition and results of operations.

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**MANAGEMENT** 

**Directors and Executive Officers** 

The following table sets forth the names, ages and titles, as of December 31, 2025, of the individuals who will serve as our executive officers and members of our board of directors at the time of the offering.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
|  Daniel Herz | 49 | Chief Executive Officer and Chairman |
|  Jeffery Smith | 51 | President and Director |
|  Jeffrey Slotterback | 44 | Chief Financial Officer, Treasurer, Secretary and Director |
|  Michael Downs | 48 | Chief Operating Officer and Director |
|  Matthew Heinlein | 31 | Vice President, Head of Corporate Development & Strategy and Director |
|  Alan Bigman | 58 | Director |
|  Andrew Ceitlin | 52 | Director |
|  Peggy Gold | 69 | Director |

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***Daniel Herz***

Daniel Herz has served as Chairman of our board of directors and as our Chief Executive Officer since our inception and has also served as Chief Executive Officer of WhiteHawk Management since June 2021. Mr. Herz has previously served as founder, president and chief executive officer of Falcon Minerals Corporation, a formerly publicly traded company, from August 2018 to June 2021 and served as a director from May 2020 to June 2021. Mr. Herz also served in various positions at the Atlas companies, a publicly traded enterprise, including as president of Atlas Energy Group, LLC from 2015 to 2018, and as chief executive officer of Atlas Resources Partners L.P. and its successor, Titan Energy, LLC from 2015 to 2018. Additionally, Mr. Herz served as vice president and senior vice president of corporate development and strategy from 2004 to 2011 of Atlas Energy, Inc., prior to its $4.3 billion sale to Chevron Corporation, the general partner of Atlas Pipeline Partners, L.P. from 2004 to 2015, until its sale to Targa Resources for $7.7 billion, and the general partner of Atlas Energy, L.P. from 2011 to 2015. From April 2015 to April 2021, Mr. Herz served as a director of Titan Energy and its predecessor. In July 2016, Atlas Resource Partners and certain of its affiliates filed for Chapter 11 prepackaged bankruptcy protection and successfully emerged from bankruptcy in September 2016 with the new name of Titan Energy. Mr. Herz has also served as a director, including as chair of the compensation committee and member of the audit committee, of Presidio Production Company (NYSE: FTW) since March 2026. We believe Mr. Herz's leadership experience and industry knowledge make him well qualified to serve as a director

***Jeffery Smith***

Jeffery Smith has served on our board of directors and as our President since our inception and has also served as President of WhiteHawk Management since March 2022. Mr. Smith is co-owner of Badger Creek Holdings, a holding company that owns several companies, including Preferred Capital Securities, LLC, where he has served as its Chief Executive Officer since 2018 after joining the firm in 2016. Mr. Smith previously held several leadership positions at Atlas Energy, L.P. from 2013 to 2016 and at Wells Real Estate from 2002 to 2009. We believe Mr. Smith's experience in managing businesses and capital markets for over 20 years makes him well qualified to serve as a director.

***Jeffrey Slotterback***

Jeffrey Slotterback has served on our board of directors and as our Chief Financial Officer, Treasurer and Secretary since our inception and has also served as an executive officer of WhiteHawk Management, LLC, our external manager since March 31, 2022. He has also served as founder and partner of PhiCap Advisors, LLC, a financial and capital advisory firm specializing in clean energy and energy transition capital raises, since its

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founding in September 2019. From 2016 to 2018, Mr. Slotterback served as a director and chief financial officer of Titan Energy. From August 2015 to December 2021, Mr. Slotterback served as the principal executive officer and chief financial officer for certain Atlas companies, a publicly traded enterprise, including for Atlas Energy Group and Atlas Resource Partners L.P. In July 2016, Atlas Resource Partners, L.P. and certain of its affiliates filed for Chapter 11 prepackaged bankruptcy protection and successfully emerged from bankruptcy in September 2016 with the new name of Titan Energy. Prior to joining Atlas, Mr. Slotterback was also a senior auditor with Deloitte & Touche, LLP from 2004 to 2007. We believe Mr. Slotterback's financial expertise and experience in the energy sector make him well qualified to serve as a director.

***Michael Downs***

Michael Downs has served on our board of directors since August 2023 and as our Chief Operating Officer since November 2022. He has also served as a partner of PhiCap Advisors, LLC since its founding in September 2019 and as interim chief financial officer of Zefiro Methane Corp., a publicly traded company, from June 2025 to present. Mr. Downs has previously served as chief operating officer for Falcon Minerals Corporation, a formerly publicly traded company, from October 2018 to June 2022. Prior to joining Falcon, Mr. Downs served as vice president of operations from July 2011 to October 2018 at certain Atlas companies, a publicly traded enterprise, including Atlas Energy Group and Atlas Resource Partners. In July 2016, Atlas Resource Partners and certain of its affiliates filed for Chapter 11 prepackaged bankruptcy protection and successfully emerged from bankruptcy in September 2016 with the new name of Titan Energy. We believe Mr. Downs's operational experience in energy companies makes him well qualified to serve as a director.

***Matthew Heinlein***

Matthew Heinlein has served on our board of directors since August 2023 and as our Vice President & Head of Corporate Development & Strategy since our inception. From July 2019 to July 2021, Mr. Heinlein worked at The Blackstone Group where he was involved with several of Blackstone's investments across the energy industry. Mr. Heinlein also worked at Falcon Minerals Corporation, a formerly publicly traded company, from 2018 to 2019, where he focused on corporate development, financial analyses and acquisition underwriting. He also worked in investment banking at Jefferies from 2016 to 2018, where he focused on mergers and acquisitions and financial advisement to gas and oil companies. We believe Mr. Heinlein's background in corporate development and finance makes him well qualified to serve as a director.

***Alan Bigman***

Alan Bigman has served on our board of directors since November 2025. Mr. Bigman has held board positions at numerous public and private companies, including Evolve Transition Infrastructure, a publicly traded oil and gas master limited partnership, from June 2014 to March 2021, Aquadrill LLC, an offshore drilling company later acquired by Seadrill Limited, from May 2021 to April 2023, Arclin USA LLC, a large specialty chemicals and materials company, from May 2017 to September 2021, and JKX Oil and Gas, a foreign publicly traded oil and gas producer, from 2016 to 2017. He also co-founded VistaTex LLC, an independent oil and gas company, in 2010, where he served on the board of directors until its sale to a strategic acquirer in 2014. Mr. Bigman began his career in investment and corporate finance roles at Access Industries and later served as chief financial officer of Basell from 2006 to 2007 and LyondellBasell Industries from 2007 to 2009, one of the largest chemical companies in the world. We believe Mr. Bigman's experience in finance and corporate governance makes him well qualified to serve as a director.

***Andrew Ceitlin***

Andrew Ceitlin has served on our board of directors since December 2024. Since October 2022, he has served as senior vice president and general counsel of the Construction Management division of AECOM, a publicly traded company, where he manages the legal departments of Tishman Construction Corporation, Hunt

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Construction Group, Inc., and Leeding Builders Group and their various subsidiaries. From June 2017 to October 2022, Mr. Ceitlin held various positions at AECOM including vice president, assistant general counsel and senior corporate counsel. We believe Mr. Ceitlin's legal and compliance experience makes him well qualified to serve as a director.

***Peggy Gold***

Peggy Gold has served on our board of directors since April 2023. Ms. Gold previously served as vice president and head of investor services for Resource REIT, Inc. from January 2020 until May 2022. From April 2004 to May 2022, Ms. Gold served as executive vice president for Resource Real Estate, Resource REIT's sponsor, where she focused on capital raising, which included the key accounts, marketing and investor services departments. Ms. Gold's team was dedicated to supporting the broker-dealer relationships, due diligence process, conferences and seminars. Ms. Gold was also responsible for revenue generation for multiple business lines by building company brand awareness and playing an integral role in product development. We believe Ms. Gold's experience in investor services and capital raising makes her well qualified to serve as a director.

**Board of Directors** 

Our business and affairs are managed under the direction of our board of directors. Our directors will hold office until the earlier of their death, resignation, retirement, disqualification or removal, or until their successors have been duly elected and qualified.

Our directors will be divided into three classes serving staggered three-year terms. Class I, Class II and Class III directors will serve until our first, second and third annual meetings of stockholders, respectively, following the filing of the amended and restated certificate of incorporation. and will be assigned to Class I, and will be assigned to Class II, and and will be assigned to Class III. At each annual meeting of stockholders held after the initial classification, directors will be elected to succeed the class of directors whose terms have expired.

Any increase or decrease in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the directors. This classification of our board of directors may have the effect of delaying or preventing changes in control of the Company. See "Description of Capital Stock—Anti-Takeover Provisions."

**Director Independence** 

Our board of directors is expected to affirmatively determine that Mr. Bigman, Mr. Ceitlin, Ms. Gold, and are each an "independent director," as defined under the NYSE rules. In making these determinations, our board of directors will consider the current and prior relationships that each director has with the Company and all other facts and circumstances our board of directors deemed relevant in determining his or her independence, including the beneficial ownership of our capital stock by each director, and the transactions involving them described in the section titled "Certain Relationships and Related Party Transactions."

**Board Committees** 

Our board of directors will have an audit committee, a compensation committee and a nominating and corporate governance committee. Each committee will have a charter that has been approved by our board of directors and that will be available on our website. Each committee will have the composition and responsibilities described below. Committee members will serve on such committees until their resignations or until otherwise determined by our board of directors.

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**Audit Committee** 

The primary purposes of our audit committee under the committee's charter will be to assist our board of directors with oversight of audits of our financial statements, the integrity of our financial statements, our process relating to risk management and the conduct and systems of internal control over financial reporting and disclosure controls and procedures, the qualifications, engagement, compensation, independence and performance of our independent auditor, and the performance of our internal audit function.

Upon the consummation of this offering, the members of our audit committee will be Mr. Bigman, and . Mr. Bigman will serve as the chair of the audit committee. Mr. Bigman qualifies as an "audit committee financial expert" as such term has been defined by the SEC in Item 407(d) of Regulation S-K. Our board of directors is expected to affirmatively determine that Mr. Bigman, and meet the definition of an "independent director" for the purposes of serving on the audit committee under Rule 10A-3 under the Exchange Act and the applicable rules. We intend to comply with these independence requirements for all members of the audit committee within the time periods specified under such rules. The audit committee will be governed by a charter that complies with the rules of the NYSE.

**Compensation Committee** 

The primary purposes of our compensation committee under the committee's charter will be to assist our board of directors in overseeing our management compensation policies and practices, including determining and approving from time to time the compensation of our independent directors; reviewing, approving and administering compensation and equity compensation policies and programs; and preparing the report of the compensation committee that the rules of the SEC require to be included in our annual meeting proxy statement. See "Executive and Director Compensation" for more information.

Upon the consummation of this offering, the members of our compensation committee will be Ms. Gold, and . Ms. Gold will serve as the chair of the committee. Our board of directors is expected to determine that each of Ms. Gold, and are independent under the applicable NYSE rules, including rules specific to membership on the compensation committee.

**Nominating and Corporate Governance Committee** 

The primary purposes of our nominating and corporate governance committee under the committee's charter will be to assist our board of directors with oversight of, among other things, identifying and screening individuals qualified to serve as directors and director succession planning; developing, recommending to the board of directors and reviewing the Company's corporate governance guidelines; coordinating and overseeing the periodic self-evaluation of the board of directors and its committees; and reviewing on a regular basis the overall corporate governance of the Company and recommending improvements to the board of directors where appropriate.

The members of our nominating and corporate governance committee will be Mr. Ceitlin, and . Mr. Ceitlin will serve as the chairperson of the committee. Our board of directors is expected to determine that each of Mr. Ceitlin, and are independent under the applicable NYSE rules.

**Risk Oversight** 

Risk assessment and oversight are an integral part of our governance and management processes. Our board of directors encourages management to promote a culture that incorporates risk management into our corporate strategy and day-to-day business operations. Our board of directors as a whole oversees our risk management function directly, and the standing committees of our board of directors address risks inherent in their respective areas of oversight.

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**Compensation Committee Interlocks and Insider Participation** 

None of the expected members of our compensation committee is or has been an officer or employee of the Company. None of our executive officers currently serves, or has served during the last year, as a member of the board of directors or compensation committee of any entity that has one or more executive officers serving as the expected member(s) of our board of directors or compensation committee. See the section titled "Certain Relationships and Related Party Transactions" for information about related party transactions involving members of our compensation committee or their affiliates.

**Indemnification of Directors and Executive Officers** 

Our amended and restated certificate of incorporation will provide that we will indemnify our executive officers and directors to the fullest extent permitted by the DGCL. We intend to enter into indemnification agreements with each of our executive officers and directors prior to the completion of this offering. The indemnification agreements will provide the executive officers and directors with contractual rights to indemnification and expense advancement, to the fullest extent permitted under the DGCL. The agreements supplement and further the indemnification provisions set forth in our certificate of incorporation, bylaws and applicable law. We will be the indemnitor of first resort and will advance expenses to indemnified persons within thirty days of receiving a written request, subject to an undertaking to repay if it is ultimately determined that such person is not entitled to indemnification.

**Code of Business Conduct and Ethics** 

Prior to the completion of this offering, we will adopt a code of conduct and ethics that applies to all of our directors, employees and officers. A copy of the code will be available on our website located at www.whitehawkenergy.com. Any amendments or waivers to our code for our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, will be disclosed on our website promptly following the date of such amendment or waiver, as and if required by applicable law.

**Corporate Governance Guidelines** 

We will adopt corporate governance guidelines in accordance with the corporate governance rules of . These guidelines will cover a number of areas including director responsibilities and duties, director elections and re-elections, composition of the board of directors, including director qualifications and board committees, executive sessions, director access to management and, as necessary and appropriate, independent advisors, director orientation and continuing education, board materials, management succession and evaluations of the board of directors and the board's committees. A copy of our corporate governance guidelines will be posted on our website.

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**EXECUTIVE AND DIRECTOR COMPENSATION** 

As an emerging growth company as defined under the Securities Act, we are providing this executive compensation disclosure in accordance with the scaled requirements of Item 402 of Regulation S-K, which permit reduced compensation information compared to that required of other registrants. Our reporting obligations extend only to each individual who served in the role of our principal executive officer during the last completed fiscal year, our next two most highly compensated executive officers who were serving as executive officers as of December 31, 2025, and up to two additional individuals, each of whom would have been one of our two most highly compensated executive officers but for the fact that the individual was not serving as an executive officer as of December 31, 2025 (together, our "named executive officers" or "NEOs"). For the year ended December 31, 2025, our NEOs were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Daniel Herz, Chief Executive Officer and Director

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Jeffrey Slotterback, Chief Financial Officer, Treasurer, Secretary and Director

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Matthew Heinlein, Vice President & Head of Corporate Development & Strategy and Director

The Company is currently externally managed by WhiteHawk Management LLC, which we refer to in this section as our "Manager" for purposes of this discussion. The Manager is a separate legal entity from us, operating pursuant to its own management agreements. Our Manager is controlled indirectly by WhiteHawk Energy LLC, which is owned and controlled by Mr. Herz (87.5%), Mr. Heinlein (2.5%) and PhiCap Advisors LLC ("PhiCap Advisors") (10%), a financial and capital advisory firm specializing in clean energy and energy transition capital raises, where Mr. Slotterback is a partner. All of our NEOs also serve as executive officers of the Manager.

During the year ended December 31, 2025, the Company's day-to-day operations were externally managed by the Manager pursuant to the Investment Management Agreement and the Administrative Services Agreement. As described further below under "Certain Relationships and Related Party Transactions," we pay the Manager a Base Management Fee and Dividend Incentive Fee, as well as certain management and administrative fees pursuant to the Administrative Services Agreement.

Generally, the purpose of the fees paid by us to the Manager pursuant to the Investment Management Agreement and the Administrative Services Agreement is not to provide compensation to our NEOs, but rather to compensate the Manager for the services and expertise it provides to us. Pursuant to the Administrative Services Agreement, the Company reimburses the Manager for the actual costs and expenses paid for administrative services, which also includes certain compensation paid by the Manager to certain of our executive officers. Specifically, with respect to Mr. Herz, compensation amounts relating to employer 401(k) contributions and certain health benefits are reimbursed by the Company to the Manager as well as salary attributed to Mr. Herz for purposes of his 401(k) plan participation. With respect to Mr. Slotterback, the Company does not reimburse the Manager for any amounts paid by the Manager that are related to compensation or benefits. With respect to Mr. Heinlein, the Company reimburses the Manager for Mr. Heinlein's annual salary, annual bonus, and 401(k) employer contributions and certain health benefits. All amounts reimbursed by the Company are reflected in the *Summary Compensation Table* below.

In addition, Messrs. Herz, Slotterback and Heinlein each have an interest in the fees we pay to the Manager as indirect equity holders in the Manager. Messrs. Herz and Heinlein also receive profit distributions through their interests in WhiteHawk Energy LLC. Mr. Slotterback also receives profit distributions as a partner of PhiCap Advisors.

We do not provide any direct compensation or benefits to our NEOs. Any compensation paid to our NEOs for the fiscal year ended December 31, 2025, was paid by and solely in the discretion of the Manager. Any amounts reimbursed by the Company to the Manager for the fiscal year ended December 31, 2025, with respect to compensation and benefits paid to our NEOs are reflected in the table below.

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***Summary Compensation Table***

The following table provides summary information concerning the compensation amounts reimbursed by the Company to the Manager with respect to our named executive officers for 2025. As noted above, none of our executive officers are our employees and we did not directly pay any cash compensation to the executive officers for service in 2025. Our named executive officers also did not receive any equity awards or other forms of compensation directly from us in 2025.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary ($)** | **Bonus ($)** | **All Other<br>Compensation ($)<sup>(1)</sup>** | **Total ($)<sup>(2)</sup>** |
|  Daniel Herz<br> *Chief Executive Officer and Director* | 2025 | 23500 |  | $51938 | $75438 |
|  Jeffrey Slotterback<br> *Chief Financial Officer, Treasurer, Secretary and Director* | 2025 |  |  |  | $— |
|  Matthew Heinlein<br> *Vice President & Head of Corporate Development & Strategy and Director* | 2025 | 300000 | 760000 | $56250 | 1116250 |

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(1) Amounts reflect (i) for Mr. Herz, Company reimbursement of $14,000 for employer matching contributions
to his 401(k) account and Company reimbursement of $37,938 in respect of certain health benefits and (ii) for Mr. Heinlein, Company reimbursement of $11,500 for employer matching contributions to his 401(k) account and Company
reimbursement of $44,750 in respect of certain health benefits.

(2) The Company reimburses only limited benefits for Mr. Herz as well as attributes a nominal salary to him for
purposes of 401(k) plan participation, reimburses no compensation for Mr. Slotterback, and reimburses Mr. Heinlein's full salary, bonus, and benefits.

**Additional Narrative Disclosure Regarding Executive Compensation Matters** 

***Incentive Plan***

In order to attract, retain and motivate qualified persons as employees, directors and consultants, we adopted the 2026 Equity Incentive Plan (the "Existing 2026 Plan"), which became effective on January 23, 2026. Through the Existing 2026 Plan, we can facilitate the grant of equity incentives to eligible service providers of our company and affiliates to obtain and retain services of these individuals, which is essential to our long-term success.

We have not previously granted equity awards to our NEOs.

In connection with this offering, we intend to adopt the A&R 2026 Plan, an amendment and restatement of the Existing 2026 Plan that will govern equity-based compensation for directors, officers, employees, consultants and advisors of the Company and its subsidiaries upon the consummation of this offering. The material terms of the A&R 2026 Plan, as it is currently contemplated, are summarized below, which is qualified in its entirety by the text of the A&R 2026 Plan.

***Employment Agreements***

In connection with the Internalization and the consummation of this offering, we intend to enter into employment agreements with Messrs. Herz and Slotterback.

***Employment Agreement of Mr. Herz***

The employment agreement of Mr. Herz will provide for the terms of his employment as Chief Executive Officer (the "Herz Employment Agreement"). The Herz Employment Agreement will be effective as of the consummation of this offering (the "Effective Date"), and have an initial term ending on the fifth anniversary of

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the Effective Date (the "Initial Term"), which will automatically renew for successive one-year periods unless either party provides at least 60 days' prior written notice of non-renewal. The Herz Employment Agreement is expected to provide for (i) an annual base salary of $, (ii) a target annual bonus equal to of his annual base salary (the "Target Annual Bonus") consisting of a combination of cash and/or equity awards as determined by the Board or the Company's Compensation Committee and (iii) eligibility to participate in the employee benefits programs offered by us to our employees generally.

Pursuant to the Herz Employment Agreement, in the event Mr. Herz's employment is terminated (i) by us without "cause," (ii) by Mr. Herz for "good reason" (each as defined in the Herz Employment Agreement) or (iii) as a result of our non-extension of the Herz Employment Agreement, where the notice of such non-extension provided by us pursuant to the Herz Employment Agreement does not include notice that we are waiving enforcement of the noncompetition provision of the Herz Employment Agreement (together with (i) and (ii), a "Qualifying Termination"), he would be entitled to . In the event Mr. Herz is terminated by reason of death or "disability" (as such term is defined in the Herz Employment Agreement), Mr. Herz would be entitled to .

Additionally, in the event Mr. Herz experiences a Qualifying Termination on or within the twenty-four months following a Change in Control (as defined in the A&R 2026 Plan), provided that he has executed and delivered a general release and any period for rescission of such general release has expired without his having rescinded such general release, in addition to the severance benefits described above, he will be entitled to receive .

The Herz Employment Agreement also contains certain restrictive covenants, which require Mr. Herz to preserve and protect certain confidential information and, for a -year period following his termination of employment, to refrain from competing with the company group, soliciting its customers and employees and interfering with its vendors, joint venturers and licensors. Additionally, the Herz Employment Agreement includes a non-disparagement covenant, and requires the execution of a release and continued compliance with the restrictive covenants to receive the severance benefits described above.

The Herz Employment Agreement further provides that if any payments or benefits Mr. Herz would be subject to the excise tax imposed under Section 4999 of the Internal Revenue Code, such payments will be reduced to the extent necessary so that no portion is subject to the excise tax, but only if the after-tax amount of the reduced payments would be greater than or equal to the after-tax amount of the unreduced payments (after accounting for the excise tax).

***Employment Agreement of Mr. Slotterback***

The employment agreement of Mr. Slotterback will provide for the terms of his employment as Chief Financial Officer, Treasurer, and Secretary (the "Slotterback Employment Agreement"). The Slotterback Employment Agreement will be effective as of the consummation of this offering (the "Effective Date"), and have an initial term ending on the third anniversary of the Effective Date (the "Initial Term"), that will automatically renew for successive one-year periods unless either party provides at least 60 days' prior written notice of non-renewal. The Slotterback Employment Agreement is expected to provide for (i) an annual base salary of $, (ii) a target annual bonus equal to of the his annual base salary (the "Target Annual Bonus") consisting of a combination of cash and/or equity awards as determined by the Board or the Company's Compensation Committee and (iii) eligibility to participate in the employee benefits programs offered by us to our employees generally.

Pursuant to the Slotterback Employment Agreement, in the event Mr. Slotterback's employment is terminated (i) by us without "cause," (ii) by Mr. Slotterback for "good reason" (each as defined in Slotterback Employment Agreement) or (iii) as a result of our non-extension of the Slotterback Employment Agreement, where the notice of such non-extension provided by us pursuant to the Slotterback Employment Agreement does not include

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notice that we are waiving enforcement of the noncompetition provision of the Slotterback Employment Agreement (together with (i) and (ii), a "Qualifying Termination"), he would be entitled to . In the event Mr. Slotterback is terminated by reason of death or "disability" (as such term is defined in the Slotterback Employment Agreement), Mr. Slotterback would be entitled to .

Additionally, in the event Mr. Slotterback experiences a Qualifying Termination on or within the twenty-four months following a Change in Control, provided that he has executed and delivered a general release and any period for rescission of such general release has expired without his having rescinded such general release, in addition to the severance benefits described above, he will be entitled to receive .

The Slotterback Employment Agreement also contains certain restrictive covenants, which require Mr. Slotterback to preserve and protect certain confidential information and, for a -year period following his termination of employment, to refrain from competing with the company group, soliciting its customers and employees and interfering with its vendors, joint venturers and licensors. Additionally, the Slotterback Employment Agreement includes a non-disparagement covenant, and requires the execution of a release and continued compliance with the restrictive covenants to receive the severance benefits described above.

The Slotterback Employment Agreement further provides that if any payments or benefits Mr. Slotterback would be subject to the excise tax imposed under Section 4999 of the Internal Revenue Code, such payments will be reduced to the extent necessary so that no portion is subject to the excise tax, but only if the after-tax amount of the reduced payments would be greater than or equal to the after-tax amount of the unreduced payments (after accounting for the excise tax).

***Outstanding Equity Awards at Fiscal Year-End***

As of December 31, 2025, none of our NEOs held outstanding equity awards granted by us.

***Retirement Plan***

Our named executive officers other than Mr. Slotterback currently participate in a defined contribution 401(k) plan maintained for employees of the Company (the "401(k) Plan"). The Internal Revenue Code allows eligible employees to defer a portion of their compensation, within prescribed limits, on a pre-tax basis through contributions to the 401(k) plan**.** We believe that providing a vehicle for tax-deferred retirement savings through a 401(k) plan adds to the overall desirability of our compensation package and further incentivizes our employees, including our named executive officers.

***Health and Welfare Plans; Perquisites***

Our named executive officers are currently eligible to participate in a standard suite of health and welfare plans offered to the Company's employees, including medical, dental and vision plans.

We did not provide any perquisites or special personal benefits to our named executive officers in fiscal year 2025, but our Compensation Committee may from time to time approve them in the future when our Compensation Committee determines that such perquisites are necessary or advisable to fairly compensate or incentivize our employees.

***Potential Payments upon Termination or Change-in-Control***

As of December 31, 2025, none of our NEOs were subject to any arrangements that provide for payments or vesting upon a termination of employment or change in control. However, we expect that in connection with this offering, certain of our NEOs may become subject to employment agreements or may be granted equity awards

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pursuant to the A&R 2026 Plan that will provide for potential payments upon certain terminations of employment or upon a change in control. In addition, as described below under "Certain Relationships and Related Party Transactions—Investment Management Agreement," our Manager earns a Liquidity Incentive Fee upon a liquidity event for our assets, and a portion of this Liquidity Incentive Fee may be paid to our NEOs by the Manager.

***Policies and Practices Related to the Timing of Grants of Certain Equity-Based Awards***

The Company does not currently grant awards of stock options, stock appreciation rights or similar option-like instruments and, therefore, does not have a policy or practice relating to the timing of such awards in relation to the disclosure of material non-public information by the Company.

***Director Compensation***

The following table sets forth information concerning the compensation of the Company's non-employee directors for 2025. Any director who is an employee receives no additional compensation for services as a director or as a member of a committee of the Company's board of directors. Non-employee directors were originally eligible to receive an annual retainer of $80,000, with $40,000 paid in cash on a quarterly basis and $40,000 paid in common stock on an annual basis. However, in the third quarter of 2025 we revised our non-employee director compensation program to provide an annual retainer of $100,000, with $50,000 paid in cash on a quarterly basis and $50,000 paid in common stock on an annual basis (which commenced following the adoption of the Existing 2026 Plan). No director equity awards were outstanding at December 31, 2025.

In addition, non-employee directors who serve on the Manager Internalization Committee receive up to $10,000 on a monthly basis not to exceed an annual total of $60,000 (in the aggregate for all directors). We also reimburse our non-employee directors for their travel and other reasonable expenses incurred in attending meetings of our board of directors and committees of the board of directors.

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| | | |
|:---|:---|:---|
| **Name** | **Fees Earned or<br>Paid in Cash ($)<sup>(1)</sup>** | **Total ($)** |
|  Alan Bigman<sup>(2)</sup> | $26250 | $26250 |
|  Peggy Gold | $72808 | $72808 |
|  Andrew Ceitlin  | $68331 | $68331 |

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(1) Represents fees paid to our directors for 2025.

(2) Mr. Bigman commenced service on our board of directors in November 2025.

In January 2026, we granted awards of restricted stock units to non-employee directors which will vest upon the earlier of (i) the non-employee director's removal as an independent director by the Company after the one year anniversary of the applicable vesting commencement date of the award or (ii) a "liquidity event" (as defined in the Existing 2026 Plan), including, but not limited to, the listing of the Company's common stock on a national securities exchange or a quotation through a national quotation system. In addition, such awards will fully accelerate and vest in the event of a director's termination of service due to such director's death or disability.

In connection with this offering, we intend to approve and implement a compensation program for our non-employee directors that consists of annual cash retainer fees and equity awards. The program is expected to provide non-employee directors with an annual equity award in years following the completion of this offering, which will vest on the earlier to occur of the first anniversary of the grant date and the date immediately preceding the date of the next annual meeting following the grant date, subject to continued service on our board of directors. Each is expected to be denominated as a restricted stock unit award with an aggregate value of $. Each non-employee director is also expected to receive an annual cash retainer for his or her services in an amount equal to $. In addition, certain positions on the board of directors or committees of the board of directors are expected to receive additional retainers, including the chairperson of the

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audit committee who is expected to receive an additional retainer of $, the chairperson of the compensation committee who is expected to receive an additional retainer of $ and the chairperson of the governance committee who is expected to receive an additional retainer of $. Compensation under the program will be subject to annual limits on non-employee director compensation set forth in the A&R 2026 Plan.

In connection with this offering, we intend to grant restricted stock unit awards to directors serving on the Board on the date of this offering, which grants will become effective in connection with the completion of this offering and are expected to have a value of $. These restricted stock unit awards will vest in full on the first anniversary of the closing of this offering, subject to the director's continued service through such date.

***Equity Plans***

***Existing 2026 Plan.*** We currently maintain the Existing 2026 Plan, which provides for certain designated employees, officers, directors, consultants and advisors to be eligible for equity ownership opportunities that are intended to align the interest of such persons with those of our stockholders. We believe that such awards attract, retain and motivate persons who are expected to make important contributions to us. The Existing 2026 Plan is generally administered by our Board and provides for the grant of options, cash-based incentive awards, restricted stock, restricted stock units and other stock-based awards, including stock appreciation rights. As of , 2026 there were shares of our common stock available for issuance under the Existing 2026 Plan and shares subject to outstanding restricted stock units which have been granted under the Existing 2026 Plan. On and after the closing of this offering, the Existing 2026 Plan will be superseded in its entirety by the A&R 2026 Plan.

The restricted stock units granted to certain employees under the Existing 2026 Plan in January 2026 are generally subject to graded, time-based vesting over either three or four years; provided that such award will remain outstanding and eligible to vest for 90 days if the employee is terminated by the Company other than for cause and a change of control (as defined in the Existing 2026 Plan) occurs within such 90 day period, and will accelerate and vest in full in the event of the holder's termination of service due to death or disability, or in the event the holder's service is terminated by the Company other than for cause within 90 days of a change of control.

This summary is not a complete description of all provisions of the Existing 2026 Plan and is qualified in its entirety by reference to the Existing 2026 Plan, which is filed as an exhibit to the registration statement of which this prospectus is part.

***A&R 2026 Plan.*** In connection with this offering, we intend to adopt the A&R 2026 Plan, under which we may grant cash and equity-based incentive awards to eligible service providers in order to attract, motivate and retain the talent for which we compete. The material terms of the A&R 2026 Plan that we anticipate adopting are summarized below. This summary is not a complete description of all provisions of the A&R 2026 Plan and is qualified in its entirety by reference to the A&R 2026 Plan, which will be filed as an exhibit to the registration statement of which this prospectus is a part.

***Eligibility***. Participation in the A&R 2026 Plan will be limited to any (i) individuals employed by the Company (or any successor) or its subsidiaries (collectively, the "Company Group"); provided, that no such employee covered by a collective bargaining agreement will be eligible to participate in the A&R 2026 Plan unless and to the extent that such eligibility is set forth in such collective bargaining agreement or in an agreement or instrument relating thereto; (ii) directors and officers of the Company Group; and (iii) consultants or advisors to the Company Group who may be offered securities registrable pursuant to a registration statement on Form S-8 under the Securities Act, who, in the case of each of clauses (i) through (iii) above has entered into an award agreement or who has received written notification from the Committee or its designee that they have been selected to participate in the A&R 2026 Plan.

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***Administration***. The A&R 2026 Plan will be administered by the Compensation Committee of the Board or any properly delegated subcommittee thereof or, if no such committee exists, the Board itself (the "Committee"). The Committee will have broad authority to designate participants, determine the type and terms of awards, interpret the plan, and make all other determinations necessary for administration of the plan.

***Share Reserve***. The maximum number of shares of Class A common stock that will be available for awards under the A&R 2026 Plan is equal to the sum of (a) a number of shares of Class A common stock equal to 10% of the number of shares of the classes of common stock outstanding on an as-converted basis as of immediately following the offering; and (b) an annual increase on the first day of each calendar year beginning on the January 1<sup>st</sup> of the first calendar year following the calendar year in which the offering occurs and ending on and including the ninth anniversary of such January 1st, equal to the lesser of (i) 5% of the aggregate number of shares of the classes of common stock outstanding on an as-converted basis on the last day of the immediately preceding calendar year and (ii) such smaller number of shares of Class A common stock as is determined by the Board (the "Overall Share Limit"). No more than a number of shares equal to the initial share reserve pursuant to the foregoing clause (a) may be issued pursuant to the exercise of "incentive stock options" granted under the A&R 2026 Plan.

Shares of common stock subject to awards that are forfeited, repurchased, surrendered, expire or otherwise terminate without issuance in full, or are settled in cash, in each case, in a manner that results in the Company acquiring shares of common stock covered by the award at a price not greater than the price paid by the participant for such shares of common stock or otherwise does not result in the issuance of all or a portion of the shares of common stock subject to such award (including on payment in shares of common stock on exercise of a stock appreciation right), such shares of common stock will, to the extent of such forfeiture, repurchase, surrender, expiration, termination, cash settlement or non-issuance, be added back to the shares available for grant under the A&R 2026 Plan. Awards granted under the A&R 2026 Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted by an entity in connection with a corporate acquisition or combination with the Company will not reduce the shares authorized for grant under the A&R 2026 Plan.

In the event that (i) any option or other award granted under the A&R 2026 Plan is exercised through the tendering of shares of Class A common stock or by the withholding of shares of Class A common stock by the Company, or (ii) withholding tax liabilities arising from such option or other award are satisfied by the tendering of shares of Class A common stock or by the withholding of shares by the Company, then in each such case the shares of Class A common stock so tendered or withheld will be added to the shares of Class A common stock available for grant under the A&R 2026 Plan. The payment of dividend equivalents in cash in conjunction with any outstanding awards will not count against the Overall Share Limit. The following shares of Class A common stock will not be added to the shares of Class A common stock authorized for grant and will not be available for future grants of awards: (i) shares of Class A common stock subject to a stock appreciation right that are not issued in connection with the stock settlement of the stock appreciation right on exercise thereof; and (ii) shares of Class A common stock purchased on the open market by the Company with the cash proceeds from the exercise of options.

***Types of Awards***. The A&R 2026 Plan will authorize the grant of incentive stock options ("ISOs"), nonqualified stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), and other equity-based awards and cash-based incentive awards. Each award must be evidenced by a written award agreement.

***Stock Options and SARs.*** The A&R 2026 Plan will allow for the grant of stock options, which may be ISOs within the meaning of Section 422 of the Internal Revenue Code (the "Code") or non-qualified stock options. Stock options must have an exercise price of no less than 100% of the fair market value of a share of Class A common stock on the date of grant (110% in the case of an ISO granted to an employee who, at the time the ISO is granted, owns stock representing more than 10% of the voting power of all classes of stock of the Company

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Group). The option exercise price is payable in cash, check, cash equivalent and/or shares of common stock valued at the fair market value at the time the option is exercised (provided, that such shares of Class A common stock are not subject to any pledge or other security interest and have been held by the participant for at least six (6) months) or by such other method as the Committee may permit, in its sole discretion. Options typically expire ten years after grant (five years after grant in the case of an ISO granted to a participant who, at the time the ISO is granted, owns stock representing more than 10% of the voting power of all classes of stock of the Company Group) or earlier as may be provided in an award agreement.

The A&R 2026 Plan will also allow for the grant of SARs, which represent the right to receive any appreciation in a share of Class A common stock over a particular time period. These awards may be granted alone or in tandem with options under the A&R 2026 Plan. The strike price of a SAR may not be less than 100% of the fair market value of the underlying share on the date of grant (except with respect to certain substitute SARs granted in connection with a corporate transaction); provided that a SAR granted in tandem with (or in substitution for) an option previously granted shall have a strike price equal to the exercise price of the corresponding option. The term of a SAR may not be longer than ten years.

***Restricted Stock*.** The A&R 2026 Plan will allow for the grant of shares of restricted stock. An award of restricted stock is a grant of shares of Class A common stock which are subject to vesting conditions and transfer restrictions.

***RSUs*.** The A&R 2026 Plan will allow for the grant of RSUs. RSUs represent a right to receive, upon satisfaction of applicable vesting conditions, either a specified number of shares of Class A common stock or a cash payment equal to the fair market value (as of the date on which the applicable restricted period lapses) of a specified number of shares of Class A common stock, at the discretion of the Committee.

***Other Equity-Based Awards*.** The A&R 2026 Plan will allow for the grant of other equity-based awards, including awards that may be settled in shares of Class A common stock, in other property based on the value of a share of common stock, or as dividends on Class A common stock or dividend equivalents in respect of dividends paid on common stock. Any dividend or dividend equivalent otherwise payable in respect of any award under the A&R 2026 Plan that remains subject to vesting conditions at the time of payment of such dividend or dividend equivalent may be retained by the Company and remain subject to the same vesting conditions and risks of forfeiture as the underlying award to which the dividend or dividend equivalent relates.

***Cash-Based Incentive Awards.*** The A&R 2026 Plan will allow for the grant of cash-based incentive awards, which are awards denominated in cash.

***Vesting***. Awards granted under the A&R 2026 Plan will vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee, including, without limitation, attainment of performance criteria. The Committee may at any time provide that any award will become immediately vested and fully or partially exercisable, free of some or all restrictions or conditions, or otherwise fully or partially realizable.

***Non-Employee Director Compensation Limits***. The maximum value of awards granted during a single fiscal year to any non-employee director, for services rendered as a non-employee director, taken together with any cash fees paid to such non-employee director during the fiscal year, may not exceed $750,000 in total value in respect of any fiscal year of the non-employee director's service on the Board. The Committee may make exceptions to such annual non-employee director compensation limit in extraordinary circumstances, as the Committee may determine in its discretion, provided that the non-employee director receiving such additional compensation may not participate in the decision to award such compensation or in other contemporaneous compensation decisions involving non-employee directors.

***Change in Control and Adjustment Event***. The A&R 2026 Plan will include provisions addressing the treatment of awards in connection with a Change in Control or other Adjustment Event (each as defined in the A&R 2026

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Plan). The Committee is authorized to take various actions with respect to outstanding awards whenever the Committee determines that such action is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the A&R 2026 Plan or with respect to any award under the A&R 2026 Plan, to facilitate transactions or events or to give effect to changes in applicable laws or accounting principles. Such actions may include substituting or assuming awards, accelerating vesting, canceling awards and making cash payments in settlement, adjusting the number and type of shares subject to awards as well as the exercise price or any applicable performance measures, replacing awards with other rights or property, and providing that awards will terminate following an applicable event.

***No Repricing***. Except as otherwise permitted under the A&R 2026 Plan in the context of an Adjustment Event, the Committee may not, without stockholder approval (i) reduce the exercise price of any option or the strike price of any SAR; (ii) cancel any outstanding option or SAR and replace it with a new option or SAR (with a lower exercise price or strike price, as the case may be) or other award or cash payment that is greater than the intrinsic value (if any) of the cancelled option or SAR; and (iii) take any other action which is considered a "repricing" for purposes of the stockholder approval rules of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or quoted.

***Transferability***. Awards granted under the A&R 2026 Plan are generally not transferable other than by will or the laws of descent and distribution. The Committee may, in its discretion, permit transfers to certain family members, trusts, partnerships or limited liability companies for the benefit of the participant and immediate family members, and charitable organizations.

***Clawback***. All awards granted under the A&R 2026 Plan are subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with any clawback, forfeiture or similar policy adopted by the Board or the Committee and applicable law.

***Amendment and Termination***. The Board or Committee may amend, alter, suspend, discontinue or terminate the A&R 2026 Plan at any time, provided that stockholder approval is required for amendments where necessary to comply with applicable regulatory requirements or changes in accounting standards. No amendment that would materially and adversely affect the rights of any participant will be effective without the affected participant's consent. The A&R 2026 Plan will remain in effect until terminated by the Committee; provided, that an Incentive Stock Option may not be granted under A&R 2026 Plan after ten years from the date the Board adopted the A&R 2026 Plan.

***Grant of Awards to Certain Eligible Persons***. The Company may provide through the establishment of a formal written policy (which will be deemed a part of the A&R 2026 Plan) or otherwise for the method by which shares of common stock or other securities of the Company may be issued and by which such shares of common stock or other securities and/or payment therefor may be exchanged or contributed among the Company, its subsidiaries, or any of its affiliates, or may be returned to the Company upon any forfeiture of shares of common stock or other securities by the eligible person.

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**PRINCIPAL STOCKHOLDERS** 

The following table shows information as of , 2026 regarding the beneficial ownership of our Class A common stock as adjusted to give effect to this offering by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person known by us to beneficially own more than 5% of our Class A common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our directors and named executive officers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of our directors and executive officers as a group.

Beneficial ownership of shares is determined under rules of the SEC and generally includes any shares over which a person exercises sole or shared voting or investment power. Except as noted by footnote, and subject to community property laws where applicable, we believe based on the information provided to us that the persons and entities named in the table below have sole voting and investment power with respect to all shares of our Class A common stock shown as beneficially owned by them.

Percentage of beneficial ownership is based on shares of Class A common stock outstanding as of , 2026 and shares of Class A common stock outstanding after giving effect to this offering, assuming no exercise of the underwriters' option to purchase additional shares, or shares of Class A common stock, assuming the underwriters exercise their option to purchase additional shares in full, and gives effect to the Transactions. The table below does not reflect any shares of Class A common stock that executive officers and directors may purchase in this offering through the directed share program described under "Underwriting—Directed Share Program." Unvested time-based shares of restricted Class A common stock subject to forfeiture are deemed to be beneficially owned by the holders thereof. Shares of Class A common stock subject to options currently exercisable or exercisable within 60 days of the date of this prospectus are deemed to be outstanding and beneficially owned by the person holding the options for the purposes of computing the percentage of beneficial ownership of that person and any group of which that person is a member, but are not deemed outstanding for the purpose of computing the percentage of beneficial ownership for any other person. Unless otherwise indicated, the address of all listed stockholders is 2000 Market Street, Suite 910, Philadelphia, PA 19103.

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A Common Stock**<br>**Beneficially Owned<sup>(1)</sup>** | **Class A Common Stock**<br>**Beneficially Owned<sup>(1)</sup>** | **Class A Common Stock**<br>**Beneficially Owned<sup>(1)</sup>** | **Class A Common Stock**<br>**Beneficially Owned<sup>(1)</sup>** | **Class A Common Stock**<br>**Beneficially Owned<sup>(1)</sup>** | **Class A Common Stock**<br>**Beneficially Owned<sup>(1)</sup>** | **Class B Common Stock**<br>**Beneficially Owned** | **Class B Common Stock**<br>**Beneficially Owned** | **Class B Common Stock**<br>**Beneficially Owned** | **Class B Common Stock**<br>**Beneficially Owned** | **Class B Common Stock**<br>**Beneficially Owned** | **Class B Common Stock**<br>**Beneficially Owned** | **Combined Voting**<br>**Power<sup>(2)</sup>** | **Combined Voting**<br>**Power<sup>(2)</sup>** |
|  | **Before**<br>**this<br>offering** | **Before**<br>**this<br>offering** | **After this<br>offering<br>(no<br>exercise**<br>**of over-<br>allotment<br>option)** | **After this<br>offering<br>(no<br>exercise**<br>**of over-<br>allotment<br>option)** | **After this<br>offering<br>(with full<br>exercise**<br>**or over-<br>allotment<br>option)** | **After this<br>offering<br>(with full<br>exercise**<br>**or over-<br>allotment<br>option)** | **Before**<br>**this<br>offering** | **Before**<br>**this<br>offering** | **After this<br>offering<br>(no<br>exercise**<br>**of over-<br>allotment<br>option)** | **After this<br>offering<br>(no<br>exercise**<br>**of over-<br>allotment<br>option)** | **After this<br>offering<br>(with full<br>exercise**<br>**or over-<br>allotment<br>option)** | **After this<br>offering<br>(with full<br>exercise**<br>**or over-<br>allotment<br>option)** | **After this<br>offering<br>(No<br>exercise<br>of over-<br>allotment<br>option)** | **After this<br>offering<br>(with full<br>exercise<br>of over-<br>allotment<br>option)** |
| **Name of beneficial owner** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **Number** | **%** | **%** | **%** |
|  **5% Stockholders** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Omega Capital Partners, LP<sup>(3)</sup> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  **Named Executive Officers and Directors** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Daniel Herz |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jeffery Smith |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jeffrey Slotterback |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Michael Downs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Matthew Heinlein |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Peggy Gold |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Andrew Ceitlin |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Alan Bigman |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **All directors, director designees and executive officers as a group (8 persons)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

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\* Represents beneficial ownership of less than 1% of our outstanding Class A common stock. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Reflects Class A common stock (i) owned as a result of the Common Stock Reclassification and (ii) issuable upon
exchange of OpCo Interests. Each Continuing Equity Owner will be entitled to redeem their OpCo Interests from time to time at each holder's option, for shares of Class A common stock on a one-for-one basis. OpCo Interests may also be
redeemed in the event that the majority of the holders of OpCo Interests, in connection with an initial public offering, deliver redemption notices, provided that such redemption is pro rata from all members, each at our election (determined solely
by our independent directors (within the meaning of the Exchange rules) who are disinterested), for shares of Class A common stock, on a one-for-one basis or, to the extent there is cash available from a secondary offering, a cash payment equal
to a volume weighted average market price of one share of Class A common stock, for each OpCo Interest so redeemed, in each case, in accordance with the terms of the OpCo Agreement; provided that, at our election (determined solely by our
independent directors (within the meaning of the Exchange rules) who are disinterested), we may effect a direct exchange of such Class A common stock, or such cash, as applicable, for such OpCo Interests. The Continuing Equity Owners may,
subject to certain exceptions, exercise such redemption right for as long as their OpCo Interests remain outstanding. See "Certain Relationships and Related Person Transactions—OpCo Agreement." In this table, beneficial ownership
of OpCo Interests has been reflected as beneficial ownership of shares of our Class A common stock for which such OpCo Interests may be exchanged. When an OpCo is exchanged by a Continuing Equity Holder, a corresponding share of Class B
common stock automatically be transferred to us for no consideration and canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Represents the percentage of voting power of our Class A common stock and Class B common stock, voting
as a single class. Each share of Class A common stock entitles the registered holder thereof to one vote per share, and each share of Class B common stock entitles the registered holder thereof to one vote per share, in each case, on all
matters presented to stockholders for a vote generally, including the election of directors. The Class A common stock and Class B common stock will vote as a single class on all matters except as required by law or our amended and restated
certificate of incorporation. Our Class B common stock does not have any of the economic rights (including rights to dividends and distributions upon dissolution or liquidation) associated with our Class A common stock. See
"Description of Capital Stock."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Reflects beneficial ownership of shares of Class A common stock held by Omega Capital Partners, LP
("Omega"). By virtue of his position as managing member of the general partner of Omega, Leon Cooperman may be deemed to have sole voting and dispositive power over the shares held by Omega. The business address of Omega is 7118 Melrose
Castle Lane, Boca Raton, Florida 33496.

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**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS** 

The following are summaries of certain provisions of our related party agreements and are qualified in their entirety by reference to all of the provisions of such agreements. Because these descriptions are only summaries of the applicable agreements, they do not necessarily contain all of the information that you may find useful. Therefore, we urge you to review the agreements in their entirety. Copies of the forms of the agreements have been filed as exhibits to the registration statement of which this prospectus is a part, and are available electronically on the website of the SEC at www.sec.gov.

We believe the terms obtained or consideration that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or the amounts that we would pay or receive, as applicable, in arm's-length transactions.

**OpCo Agreement** 

***Agreement in Effect Before Consummation of the Transactions***

We and OP GP are currently parties to the OpCo Agreement, which governs the business operations of WhiteHawk OpCo and defines the relative rights and privileges associated with the existing units of WhiteHawk OpCo. Under the existing OpCo Agreement, the OP GP has full, exclusive discretion to manage and control the business and affairs of WhiteHawk OpCo, and the day-to-day business operations of WhiteHawk OpCo are overseen and implemented by the OP GP and its Board of Managers. Each Continuing Equity Owner's rights under the existing OpCo Agreement continue until the effective time of the new OpCo Agreement to be adopted in connection with the Transactions, as described below, at which time the Continuing Equity Owners will continue as limited partners that hold OpCo Interests with the respective rights thereunder.

***Agreement in Effect Upon Consummation of the Transactions***

In connection with the consummation of the Transactions, WhiteHawk OpCo will amend and restate the OpCo Agreement.

*Appointment of General Partner*. Under the OpCo Agreement, OP GP will serve as the sole general partner of WhiteHawk OpCo. As the sole member of OP GP, we will control OP GP and, through OP GP, control all of the day-to-day business affairs and decision-making of WhiteHawk OpCo without the approval of any limited partner. As such, we, through our officers and directors, will be responsible for all operational and administrative decisions of WhiteHawk OpCo and daily management of WhiteHawk OpCo's business. Pursuant to the terms of the OpCo Agreement, OP GP cannot be removed as the sole general partner of WhiteHawk OpCo, and OP GP may not transfer or assign its general partner interest or withdraw from WhiteHawk OpCo, except in connection with a General Partner Change of Control (as defined in the OpCo Agreement) or a reconstitution, conversion or transfer of such interest to one of our wholly-owned subsidiaries. Any vacancy in the position of general partner of WhiteHawk OpCo will be filled by us.

*Compensation, Fees and Expenses*. OP GP will not be entitled to compensation for its services as the general partner of WhiteHawk OpCo. We will be entitled to reimbursement by WhiteHawk OpCo for reasonable fees and expenses incurred on behalf of WhiteHawk OpCo, including all expenses associated with the Transactions, any subsequent offering of our Class A common stock, being a public company, and maintaining our corporate existence.

*Capitalization*. The OpCo Agreement authorizes three classes of units: common units, Series B preferred units and Series D preferred units. Common units share pro rata in profits, losses and distributions and (other than those held by us) are subject to the Redemption Right. The Series B and Series D preferred units are issued solely to us, accrue cumulative distributions, carry liquidation preferences, are non-voting and non-convertible (except

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for an automatic conversion into common units in connection with certain IPO- or Qualifying Offering-funded redemptions). OP GP may cause WhiteHawk OpCo to issue additional units or other equity securities substantially equivalent to a corresponding class or series of our stock.

*Distributions*. Except to the extent such distributions would render WhiteHawk OpCo insolvent or are otherwise prohibited by law or any of our debt agreements, the OpCo Agreement will require "tax distributions" to be made by WhiteHawk OpCo to its unitholders, pro rata in accordance with economic interests, in an amount at least sufficient to allow its unitholders, including us, to pay taxes imposed on their allocable share of taxable income of WhiteHawk OpCo to the extent its unitholders, including us, do not otherwise receive non-tax distributions from WhiteHawk OpCo in amounts at least sufficient to allow such unitholders, including us, to pay such taxes. The assumed tax rate for purposes of determining tax distributions will be the highest combined U.S. federal, state, and local tax rate that may potentially apply to any one of WhiteHawk OpCo's unitholders, regardless of the actual, final tax liability of any such partner. The OpCo Agreement will also allow for cash distributions of "Available Cash" (as defined in the OpCo Agreement) to be made by WhiteHawk OpCo (subject to the sole discretion of OP GP) to its unitholders on a pro rata basis. We expect WhiteHawk OpCo may make such distributions periodically and as necessary to enable us to cover our operating expenses and other obligations, including any tax liability, except to the extent such distributions would render WhiteHawk OpCo insolvent or are otherwise prohibited by law or any of our future debt agreements.

*Transfer Restrictions*. The OpCo Agreement generally does not permit transfers of OpCo Interests by limited unitholders, except for transfers to permitted transferees, transfers pursuant to the Redemption Right (as described below) and transfers approved in writing by OP GP, and other limited exceptions. The OpCo Agreement may impose additional restrictions on transfers that are necessary or advisable so that WhiteHawk OpCo is not treated as a "publicly traded unitholdership" taxable as a corporation for U.S. federal income tax purposes. In the event of a permitted transfer under the OpCo Agreement, such limited partner will be required to simultaneously transfer to such transferee a number of shares of Class B common stock equal to the number of OpCo Interests that were transferred to such transferee. Notwithstanding the foregoing, Continuing Equity Owners will be prohibited from transferring or redeeming their OpCo Interests and corresponding Class B common stock or related securities for 365 days following the consummation of this offering, or such shorter period as determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering (the "OpCo Lockup").

*Redemption Right*. Subject to certain limitations, including the expiration of the OpCo Lockup, each Continuing Equity Owner will have the right (the "Redemption Right") to cause WhiteHawk OpCo to redeem all or a portion of their OpCo Interests for, at our election (determined solely by our independent directors who are disinterested), newly-issued shares of our Class A common stock on a one-for-one basis or a cash payment equal to a volume weighted average market price of one share of Class A common stock for each OpCo Interest so redeemed. The Redemption Right may be exercised by a Continuing Equity Owner only three times per calendar quarter and is subject to a minimum redemption number specified in the OpCo Agreement. In connection with any such redemption, a corresponding number of shares of Class B common stock held by the redeeming Continuing Equity Owner will automatically be transferred to us for no consideration and canceled. We may, at our option, effect a direct exchange of cash or Class A common stock for such OpCo Interests in lieu of such a redemption by WhiteHawk OpCo. Whether by redemption or exchange, we are obligated to ensure that at all times the number of OpCo Interests we own equals the number of shares of Class A common stock issued and outstanding (subject to certain exceptions for treasury shares and equity compensation).

Each Continuing Equity Owner's Redemption Right will be subject to certain customary limitations, including the expiration of any contractual lock-up period relating to the shares of our Class A common stock that may be applicable to such Continuing Equity Owner and the absence of any liens or encumbrances on such OpCo Interests redeemed. We may elect to settle a redemption in cash only to the extent we have consummated a substantially contemporaneous private or public offering of shares of Class A common stock sufficient to fund such cash payment, and if such offering is not consummated by the redemption date, the redemption will instead

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be settled in shares of our Class A common stock. Additionally, in the case we elect a cash settlement, such Continuing Equity Owner may rescind its redemption request within a specified period of time. Moreover, in the case of a settlement in Class A common stock, such redemption may be conditioned on the closing of an underwritten distribution of the shares of Class A common stock to be issued in connection with such proposed redemption. In the case of a settlement in Class A common stock, such Continuing Equity Owner may also revoke or delay its redemption request if the following conditions exist: (1) any registration statement pursuant to which the resale of the Class A common stock to be registered for such Continuing Equity Owner at or immediately following the consummation of the redemption shall have ceased to be effective; (2) we failed to cause any related prospectus to be supplemented by any required prospectus supplement necessary to effect such redemption; (3) we exercised our right to defer, delay or suspend the filing or effectiveness of a registration statement and such deferral, delay or suspension shall affect the ability of such Continuing Equity Owner to have its Class A common stock registered at or immediately following the consummation of the redemption; (4) such Continuing Equity Owner is in possession of any material non-public information concerning us, the receipt of which results in such Continuing Equity Owner being prohibited or restricted from selling Class A common stock at or immediately following the redemption without disclosure of such information (and we do not permit disclosure); (5) any stop order relating to the registration statement pursuant to which the Class A common stock was to be registered by such Continuing Equity Owner at or immediately following the redemption shall have been issued by the SEC; (6) there shall have occurred a material disruption in the securities markets generally or in the market or markets in which the Class A common stock is then traded; (7) there shall be in effect an injunction, a restraining order or a decree of any nature of any governmental entity that restrains or prohibits the redemption; (8) we shall have failed to comply in all material respects with our obligations under the Registration Rights Agreement, and such failure shall have affected the ability of such Continuing Equity Owner to consummate the resale of the Class A common stock to be received upon such redemption pursuant to an effective registration statement; (9) the redemption date would occur during a black-out period; or (10) such Continuing Equity Owner so elects by written notice to WhiteHawk OpCo no later than three business days prior to the scheduled redemption date.

The OpCo Agreement will require that in the case of a redemption by a Continuing Equity Owner, we contribute cash or shares of our Class A common stock to WhiteHawk OpCo in exchange for an amount of newly-issued OpCo Interests equal to the number of OpCo Interests redeemed from the Continuing Equity Owner. WhiteHawk OpCo will then distribute the cash or shares of our Class A common stock, as applicable, to such Continuing Equity Owner to complete the redemption. In the event of a redemption election by a Continuing Equity Owner, we may, at our option, effect a direct exchange of cash or our Class A common stock for such OpCo Interests in lieu of such a redemption by WhiteHawk OpCo. Whether by redemption or exchange, we are obligated to ensure that at all times the number of OpCo Interests that we own equals the number of our outstanding shares of Class A common stock (subject to certain exceptions for treasury shares and shares underlying certain convertible or exchangeable securities).

Except for certain exceptions, any transferee of OpCo Interests must execute a joinder to the OpCo Agreement and assume all of the obligations of the transferring limited partner with respect to the transferred OpCo Interests, and such transferee shall be bound by any limitations and obligations under the OpCo Agreement. A limited partner shall remain as a limited partner with all rights and obligations until the transferee is admitted as a substitute limited partner in accordance with the OpCo Agreement.

*Issuance of OpCo Interests*. The OpCo Agreement will authorize the issuance of OpCo Interests to us in exchange for the net proceeds from this offering and any future offerings of our Class A common stock. Each OpCo Interest generally will entitle the holder to a pro rata share of the net profits and net losses and distributions of WhiteHawk OpCo based on the holder's Percentage Interest.

*Maintenance of One-to-One Ratios*. The OpCo Agreement requires WhiteHawk OpCo to take all actions with respect to its OpCo Interests, including issuances, reclassifications, distributions, divisions or recapitalizations, such that (1) we at all times maintain a ratio of one OpCo Interest owned by us, directly or indirectly, for each

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share of Class A common stock issued and outstanding (subject to certain exceptions for treasury stock and equity compensation), and (2) unless otherwise determined by the general partner, WhiteHawk OpCo at all times maintains a one-to-one ratio between the number of shares of Class B common stock issued to and owned by the Continuing Equity Owners and their permitted transferees and the number of OpCo Interests owned by the Continuing Equity Owners and their permitted transferees. WhiteHawk OpCo is prohibited from undertaking any subdivision or combination of the OpCo Interests that is not accompanied by an identical subdivision or combination of our Class A common stock and Class B common stock to maintain such one-to-one ratios.

*Issuance of OpCo Interests Upon Exercise of Equity Awards*. Upon the exercise of options or other equity awards issued by us, or the issuance of other types of equity compensation by us (such as the issuance of restricted or non-restricted stock, payment of bonuses in stock, or settlement of stock appreciation rights in stock), we will have the right to acquire from WhiteHawk OpCo a number of OpCo Interests equal to the number of shares of our Class A common stock being issued in connection with the exercise of such options or issuance of other types of equity compensation.

*Dissolution*. The OpCo Agreement will provide that the voluntary dissolution of WhiteHawk OpCo will require the unanimous consent of OP GP and all of the unitholders. In addition to a voluntary dissolution, WhiteHawk OpCo will be dissolved upon a Change of Control Transaction (as defined in the OpCo Agreement) that is not approved by the Majority Unitholders (as defined in the OpCo Agreement), the entry of a decree of judicial dissolution or other circumstances in accordance with Delaware law. Upon a dissolution event, the proceeds of a liquidation will be applied in the following order: (1) first, to pay all of the debts, liabilities and obligations of WhiteHawk OpCo owed to creditors other than the unitholders, including all expenses incurred in connection with the liquidation and winding up of WhiteHawk OpCo; (2) second, to pay all of the debts, liabilities and obligations of WhiteHawk OpCo owed to the unitholders (other than any payments or distributions owed to such unitholders in their capacity as unitholders pursuant to the OpCo Agreement); (3) third, to us in respect of the Series D Preferred Units, in an amount equal to the aggregate liquidation preference for all then-outstanding Series D Preferred Units; (4) fourth, to us in respect of the Series B Preferred Units, in an amount equal to the aggregate liquidation preference for all then-outstanding Series B Preferred Units; and (5) fifth, to the unitholders in respect of their common units pro rata in accordance with their respective Percentage Interests.

*Confidentiality*. OP GP and each partner agree to maintain the confidentiality of WhiteHawk OpCo's confidential information. This obligation excludes information independently obtained or developed by the unitholders, information that is in the public domain or otherwise disclosed to a partner, in either such case not in violation of a confidentiality obligation under the OpCo Agreement, or approved for release by written authorization of our Chief Executive Officer, Chief Financial Officer, or General Counsel, or any other officer designated by us.

*Indemnification*. The OpCo Agreement will provide for indemnification of OP GP, the limited unitholders, and officers of WhiteHawk OpCo or their respective affiliates, to the fullest extent permitted by Delaware law.

*Amendments*. The OpCo Agreement may generally be amended or modified solely by OP GP. However, certain amendments require additional approvals, including: amendments that modify any partner's limited liability or increase any partner's liabilities or obligations, which require the consent of each affected partner; amendments that materially alter or change the rights, preferences or privileges of any class of OpCo Interests in a manner that is different or prejudicial relative to other holders of the same class, which require the approval of the affected holders; and amendments that materially and adversely alter or change the rights, preferences or privileges of OP GP or us, which require the approval of a majority of our independent directors.

**Contribution Agreement** 

In connection with the closing of this offering, we and certain of our subsidiaries expect to enter into the Contribution Agreement with the other parties thereto providing for the contribution of ManagementCo to WhiteHawk OpCo in exchange for OpCo Interests and shares of our Class B common stock. The description of

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the terms of the Internalization and the Contribution Agreement described herein are subject to the execution of definitive documentation among the parties thereto.

***Internalization***

Under the terms of the Internalization, we will acquire all of the outstanding interests in ManagementCo from the Management Contributor, and WhiteHawk Energy Services LLC ("WhiteHawk Services"), the company that currently employs the personnel that manages our business on behalf of ManagementCo, will become a wholly-owned subsidiary of ManagementCo. After the closing of the Internalization and the consummation of this offering, we will be internally managed and operated by our executive officers and other employees. We will pay compensation and related employee expenses directly to our employees. In addition, upon the closing of the Transactions, (i) certain Management Owners will enter into employment agreements, as further described in the section titled "Executive and Director Compensation," and (ii) our obligations under the Investment Management Agreement and Administrative Services Agreement, including the payment of the various management fees under the Investment Management Agreement, will be terminated; provided, that (x) the Liquidity Incentive Fee payable to ManagementCo under the Investment Management Agreement upon the consummation of this offering will be paid in accordance with its terms using the proceeds from this offering and (y) the shares of restricted stock previously issued to ManagementCo under the Investment Management Agreement will remain outstanding in accordance with their terms, in each case without amendment in connection with the Internalization.

***Terms of the Contribution Agreement***

***Purchase Price***. Pursuant to the Contribution Agreement, we will acquire ManagementCo from the Management Contributor for a total purchase price of $125.0 million, subject to an adjustment up or down, in each case by a maximum of $15.0 million, depending on the initial public offering price (as adjusted, the "Internalization Price"). We expect that the Management Contributor will distribute the OpCo Interests and Class B common stock received pursuant to the Contribution Agreement to the Management Owners. The number of OpCo Interests to be received by the Management Owners pursuant to the Contribution Agreement will be determined by dividing the Internalization Price by the initial public offering price in this offering. As a result of the foregoing, we will not know the final Internalization Price until we determine the initial offering price per share of this offering. In addition, the Management Owners will receive one share of Class B common stock for each OpCo Interest received. The Class B common stock has the same voting rights as our Class A common stock, but no economic value. The holders of the Class B common stock will not receive distributions from us. Upon any redemption or exchange of the OpCo Interests issued in connection with the Internalization for shares of our Class A common stock, the Company may benefit from certain tax attributes, including potential increases in tax basis that may reduce the amount of tax that would otherwise be payable by us. In connection with any such redemption or exchange of OpCo Interests, a corresponding number of shares of Class B common stock held by the relevant Management Owner will automatically be transferred to us for no consideration and be canceled. See "Our Organizational Structure."

***Earnout***. Pursuant to the Contribution Agreement, the Management Owners have agreed that 25% of the Internalization Price (the "Earnout Amount") is conditioned on us achieving certain Adjusted EBITDA targets (each an "EBITDA Target") in each of the three 12-month periods from July 1, 2026 to June 30, 2029 (each such 12-month period, an "Earnout Year") as follows:

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| | | |
|:---|:---|:---|
| <u>Earnout Year ending:</u> | <u>EBITDA Target:</u> | <u>Earnout Amount received:</u> |
| June 30, 2027 | $105.6 million | One-third |
| June 30, 2028 | $128.0 million | Up to two-thirds (less any Earnout Amount received in the prior Earnout Year) |
| June 30, 2029 | $125.0 million | Up to the entire Earnout Amount (less any Earnout Amount received in the prior two Earnout Years) |

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In addition, if we fail to achieve the EBITDA Target in any Earnout Year, the Management Owners may become entitled to receive a proportionate share of the Earnout Amount if we achieve or surpass the following lower Adjusted EBITDA thresholds (each a "Minimum EBITDA"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $79.2 million for the Earnout Year ending June 30, 2027;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $96.0 million for the Earnout Year ending June 30, 2028; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $93.8 million for the Earnout Year ending June 30, 2029.

In this case, the proportion of the Earnout Amount that the Management Owners will be entitled to receive will be based on a percentage based on our actual Adjusted EBITDA for the relevant Earnout Year relative to the difference between the EBITDA Target and the Minimum EBITDA for such Earnout Year.

In addition, if we undergo a change of control (as defined in the Contribution Agreement), the Management Owners will become entitled to receive the full Earnout Amount (to the extent not previously received), regardless of whether the change of control occurs during an Earnout Year or whether any EBITDA Target has been achieved.

If we fail to achieve the Minimum EBITDA for each of the three Earnout Years, the Management Owners will not be entitled to receive any of the Earnout Amount.

***Dividend Equivalent Rights***. From and after the closing of the Internalization, the Management Owners will be entitled to receive, in respect of the Earnout Amount, dividend and distribution equivalent payments in an amount equal to the dividends and distributions that would have been paid on the OpCo Interests issuable in respect of the Earnout Amount had such OpCo Interests been outstanding from the closing of the Internalization. Any such dividend and distribution equivalent payments not already paid that are attributable to any portion of the Earnout Amount that is ultimately not earned will be forfeited.

***Representations, Warranties and Covenants***. The Contribution Agreement will contain customary representations, warranties and covenants by the parties and also provide for indemnification, to be paid, if applicable, in the form of OpCo Interests, subject to certain limits, for inaccuracies or breaches of representations and warranties and breaches or failure to perform covenants. Under the terms of the Contribution Agreement, the consummation of the Internalization is subject to certain closing conditions, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the prior or contemporaneous consummation of the other elements of the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• execution of employment agreements with certain Management Owners, as further described in the section titled
"Executive and Director Compensation";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the termination of the Investment Management Agreement and Administrative Services Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the absence of any legal, regulatory or judicial action prohibiting the consummation of the Internalization or
the other Transactions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consummation of this offering.

The representations and warranties set forth in the Contribution Agreement will be made solely for the benefit of the parties to the Contribution Agreement. In addition, those representations and warranties (i) will be made only for the purpose of the Contribution Agreement, (ii) will be qualified by the disclosures made to the other party in connection with the Contribution Agreement, (iii) will be subject to certain materiality qualifications contained in the Contribution Agreement that may differ from what may be viewed as material by investors and (iv) will be included in the Contribution Agreement for the purpose of allocating risk between the contracting parties rather than establishing matters as facts and should not be relied upon by persons who are not parties to the Contribution Agreement as statements of factual information.

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In connection with the Internalization, the Company and the Continuing Equity Owners will enter into the Registration Rights Agreement, which will include customary demand and piggyback registration rights, as further described in "Certain Relationships and Related Person Transactions."

***Lock-Up***. The Management Owners will be subject to lock-up restrictions on the OpCo Interests and shares of Class B common stock received in connection with the Internalization. The lock-up applicable to Daniel Herz, Jeff Slotterback and Stephen Pilatzke will be set forth in their respective employment agreements, and the lock-up applicable to all other Management Owners will be on the same terms as the lock-up applicable to other parties in connection with this offering, as further described in the section titled "—OpCo Agreement" and "Underwriting."

***Special Committee***

As part of the process of considering an internalization transaction, our board of directors approved the formation of a special committee comprised entirely of independent directors (the "Special Committee"). The Special Committee was represented by its own independent legal and financial advisors. None of the members of the Special Committee are or have been affiliated with ManagementCo. The Special Committee negotiated the terms of the transactions contemplated by the Contribution Agreement and underlying Internalization in an arm's length transaction.

The foregoing description of the Contribution Agreement and the Registration Rights Agreement, and the transactions contemplated thereby, are summaries and are subject to, and qualified in their entirety by, the full text of the Contribution Agreement and the Registration Rights Agreement, copies of which will be filed as exhibits to this registration statement and will be incorporated by reference herein.

**Investment Management Agreement** 

We entered into the Investment Management Agreement, amended and restated as of October 3, 2025, with WhiteHawk Management. Certain of our directors and officers also serve as officers of WhiteHawk Management including Mr. Herz as chief executive officer, Mr. Smith as president and Mr. Slotterback as chief financial officer. WhiteHawk Management is indirectly controlled by WhiteHawk Energy, which is owned and controlled by Mr. Herz, Mr. Heinlein and PhiCap Advisors, where Mr. Slotterback is a partner. See "Executive and Director Compensation" for more information.

Pursuant to the Investment Management Agreement, WhiteHawk Management has agreed to avail itself to the Company of its experience, source of information, advice, assistance and certain facilities to aid the Company in generating cash flow from its operations with the potential for capital appreciation. WhiteHawk Management's responsibilities pursuant to the Investment Management Agreement include, but are not limited to: (i) providing necessary investment advisory and management services, (ii) investigating, selecting and, on behalf of the Company, engaging and conducting business with such persons as WhiteHawk Management deems necessary to the proper performance of its obligations thereunder, (iii) locating, analyzing and performing due diligence on and selecting potential assets, (iv) structuring and negotiating terms and conditions of transactions pursuant to which asset acquisitions and dispositions will be made, (v) making asset acquisitions and dispositions on behalf of the Company in compliance with the business strategy and policies of the Company, (vi) arranging for financing and refinancing and making other changes in the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with asset acquisitions, (vii) determining the composition of the Company's assets, the nature and timing of the changes therein and the manner of implementing such changes, (viii) assisting the Company with asset valuations, (ix) servicing and monitoring the Company's assets and (x) arranging for the payment of Company expenses. Under the Investment Management Agreement, WhiteHawk Management earns a monthly asset management fee (the "Base Management Fee"), a dividend incentive fee (the "Dividend Incentive Fee") and an incentive fee upon a liquidity event for our assets (the "Liquidity Incentive Fee"). The listing of our Class A common stock on the in connection with the

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consummation of this offering will constitute a liquidity event entitling WhiteHawk Management to a Liquidity Incentive Fee pursuant to the Investment Management Agreement, which is equal to 12.5% of the excess proceeds from the liquidity event, calculated after the initial and continuing investors holding shares of WhiteHawk's Class A common stock or preferred stock, or any combination thereof, receive 100% of their initial invested capital plus a 7.5% annualized non-compounded return.

For the years ended December 31, 2025, 2024 and 2023, we paid WhiteHawk Management $10.0 million, $4.7 million and $2.3 million, respectively, related to WhiteHawk Management's Base Management Fee and Dividend Incentive Fee. Upon the sale of shares of our Class A common stock in this offering, at an assumed public offering price of $ per share, which is the midpoint of the price range set forth on the cover of this prospectus, WhiteHawk Management will be entitled to receive a Liquidity Incentive Fee of approximately $.

**Administrative Services Agreement** 

We entered into an administrative services agreement, dated as of March 1, 2022 (the "Administrative Services Agreement"), with WhiteHawk Management. Pursuant to the Administrative Services Agreement, WhiteHawk Management performs and oversees on our behalf the performance of various administrative services that we require. Such administrative services include, but are not limited to, the provision of office facilities and equipment; the provision of clerical, bookkeeping, general ledger accounting, and recordkeeping services; investor services, assistance with tax preparation; regulatory filings; procurement of operational services including agreements with custodians, escrow agents, depositories, transfer agents, accountants, auditors, engineers, environmental experts, tax consultants, advisers, escrow agents, attorneys, marketing contractors, public relations firms, investor communication agents, printers, insurers, banks, independent valuation agents, and any other services, except investment advisory services, as WhiteHawk Management from time to time determines to be necessary or useful to perform its obligations under the Administrative Services Agreement. The Administrative Services Agreement provides for the reimbursement of WhiteHawk Management's costs and expenses paid for such administrative services. For the years ended December 31, 2025, 2024 and 2023, we paid WhiteHawk Management $6.8 million, $2.1 million and $1.9 million, respectively, for reimbursement for the administrative costs and expenses paid pursuant to the Administrative Services Agreement.

**Other Related Party Transactions** 

Jeffery Smith, our President and director, is the chief executive officer and co-owner of Preferred Capital Securities, LLC ("PCS"). We entered into a dealer manager agreement, dated as of March 18, 2022 (the "Common Stock DMA"), with PCS. Pursuant to the Common Stock DMA, PCS agreed to act as our agent and exclusive distributor in connection with our continuing offer (the "Private Offering") to accredited investors of our Class A common stock, $0.0001 par value (the "Class A Shares"), Class I common stock, $0.0001 par value (the "Class I Shares"), and Class T common stock, $0.0001 par value (the "Class T Shares"), pursuant to a confidential private placement memorandum (the "Memorandum"). Under the agreement, PCS has agreed to find, on a best efforts basis, purchasers for our Class A Shares, Class I Shares and Class T Shares for cash through broker-dealers or registered investment advisors, all of which are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"), or registered as investment advisors with the SEC or state regulatory authorities, as appropriate.

Under the Common Stock DMA, PCS is entitled to a dealer manager fee of 2.5% of the price of Class A Shares and Class T Shares sold in the Private Offering. In addition, we agreed to pay PCS a selling commission equal to 6.0% of the price of Class A Shares, and 4.0% of Class T Shares sold in the Private Offering. Additionally, a trail commission equal to 0.7% annually will be paid on Class T Shares subject to the restrictions and provisions as described in the Memorandum. For the years ended December 31, 2025, 2024 and 2023, we paid PCS $5.2 million, $0.7 million and $0.9 million, respectively, in compensation for its services under the Dealer Manager Agreement.

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We also entered into a dealer manager agreement, dated as of February 2, 2024 (the "Preferred Stock DMA" and, together with the Common Stock DMA, the "DMAs"), with PCS. Pursuant to the Preferred Stock DMA, PCS agreed to act as our agent and exclusive distributor in connection with the continuing Private Offering to accredited investors of shares of our Series B preferred common stock, $0.0001 par value (our "Series B Preferred Shares") pursuant to the Memorandum. Under the Preferred Stock DMA, PCS has agreed to find, on a best efforts basis, purchasers for our Series B Preferred Shares for cash through broker-dealers or registered investment advisors, all of which are members of FINRA or registered as investment advisors with the SEC or state regulatory authorities, as appropriate.

Under the Preferred Stock DMA, PCS is entitled to a dealer manager fee of up to 3.0% of the price per Series B Preferred Share sold in the Private Offering. In addition, we agreed to pay PCS a selling commission of up to 7.0% of the price per Series B Preferred Share sold in the Private Offering. For the years ended December 31, 2025 and 2024, we paid PCS $1.6 million and $0.8 million, respectively, in compensation for its services under the Preferred Stock DMA.

Pursuant to each DMA, no selling commissions or dealer manager fees will be paid in connection with the common stock or preferred stock, as applicable, sold to WhiteHawk Management, its management and their family members, employees and their family members and WhiteHawk Management's other affiliates. As president of WhiteHawk Management, Mr. Smith is not entitled to any selling commissions or dealer management fees under each DMA.

PhiCap Advisors LLC ("PhiCap") provides leadership and capital solutions support to the Company through a consulting agreement. In addition, PhiCap owns approximately 10% of WhiteHawk Energy LLC (and receives approximately 20% of the economics of WhiteHawk Energy, LLC), which in turns owns 75% of WhiteHawk Minerals LLC. For the year ended December 31, 2025, the Company paid PhiCap $1.3 million and $0.3 million in consulting fees and reimbursements, respectively. During the year ended December 31, 2024, the Company paid $0.5 million and $0.1 million in consulting fees and reimbursements, respectively.

**Employment Agreements** 

Prior to the consummation of this offering, we intend to enter into employment agreements with certain of our named executive officers. See "Executive and Director Compensation—Additional Narrative Disclosure Regarding Executive Compensation Matters—Employment Agreements" for a description of the employment agreements.

**Registration Rights Agreement** 

In connection with this offering, we intend to enter into the Registration Rights Agreement with the Continuing Equity Owners. Pursuant to the Registration Rights Agreement, we will be required, as soon as practicable after, and in any event within days after, the closing of this offering, to file with the SEC a registration statement registering the resale of all shares of our Class A common stock issuable to the Continuing Equity Owners upon redemption or exchange of their OpCo Interests pursuant to the OpCo Agreement, and to use commercially reasonable efforts to cause such registration statement to be declared effective no later than the earlier of (i) days after the closing of this offering and (ii) the business day after the SEC notifies us that such registration statement will not be reviewed or will not be subject to further review. The Continuing Equity Owners will also have the right, subject to certain conditions (including the expiration of any applicable contractual lock-up), to demand that we effect underwritten offerings of their registrable shares with anticipated aggregate gross proceeds of at least $ million (subject to a limit of two underwritten offerings in any twelve-month period) and to request resale registrations on Form S-3 (subject to the same minimum gross proceeds threshold) when we are eligible to use Form S-3. The Registration Rights Agreement will also provide for customary "piggyback" registration rights for all Continuing Equity Owners, customary cutback provisions on overallotted offerings, customary suspension and blackout rights for the Company (subject to a -day

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aggregate cap in any 365-day period), customary mutual indemnification and contribution provisions and a covenant that we will pay the Continuing Equity Owners' registration expenses (including reasonable fees of one counsel for the Demanding Holders, but excluding underwriting discounts and brokerage fees, which the selling Holders will bear). The registration rights will be freely transferable to permitted transferees of the registrable shares.

**Director and Officer Indemnification and Insurance** 

Prior to the consummation of this offering, we intend to enter into separate indemnification agreements with each of our directors and executive officers. The indemnification agreements will provide the executive officers and directors with contractual rights to indemnification, expense advancement and reimbursement, to the fullest extent permitted under the DGCL, subject to certain exceptions contained in those agreements. We have also purchased directors' and officers' liability insurance. See "Description of Capital Stock—Limitations on Liability and Indemnification of Officers and Directors."

**Our Policy Regarding Related Party Transactions** 

In connection with this offering, our board of directors will adopt a written related party transaction policy setting forth the policies and procedures for the review and approval or ratification by the audit committee of related party transactions. This policy will cover, with certain exceptions set forth in Item 404 of Regulation S-K under the Securities Act, any transaction, arrangement or series of transactions or arrangements in which we participate (whether or not we are a party) and a related party has or will have a direct or indirect material interest in such transaction. A related party includes (i) our directors, director nominees or executive officers, (ii) any 5% record or beneficial owner of our Class A common stock or (iii) any immediate family member of the foregoing. In reviewing and approving any related party transaction, the audit committee is tasked to consider all of the relevant facts and circumstances, and consideration of various factors enumerated in the policy.

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**DESCRIPTION OF MATERIAL INDEBTEDNESS** 

*The following is a summary of the material provisions relating to our material indebtedness. The following summary does not purport to be complete and is subject to, and qualified in its entirety by reference to the provisions of the corresponding agreement or instrument, including the definitions of certain terms therein that are not otherwise defined in this prospectus. You should refer to the relevant agreement or instrument for additional information, copies of which are filed as exhibits to the registration statement of which this prospectus is a part.* 

**Senior Notes** 

On September 17, 2024 we entered into a Note Purchase Agreement with U.S. Bank Trust Company, National Association, as agent, along with the other holders party thereto (as amended, restated, and amended and restated, the "Note Purchase Agreement") initially evidencing the issuance and purchase of Senior Secured First Lien Notes due 2030 by the certain holders party thereto in an aggregate principal amount of $65.0 million.

As used herein, "Note Purchase Agreement" refers, as applicable, to the Note Purchase Agreement as in effect prior to the consummation of the Transactions, or to the Note Purchase Agreement to be effective after the consummation of the Transactions, and as such agreement may thereafter be amended and/or restated.

***Note Purchase Agreement in Effect Upon Consummation of the Transactions***

As the final terms of the amendment to the Note Purchase Agreement have not been agreed upon, the final terms may differ from those set forth herein and any such differences may be significant. This summary is not a complete description of all of the terms of the amendment to the Note Purchase Agreement.

Upon the closing of this offering, we anticipate assigning our existing note purchase agreement to WhiteHawk OpCo, paying down the principal on the existing Note Purchase Agreement to approximately $75.0 million and amending the existing Note Purchase Agreement to, among other things, become a second lien obligation to the Revolving Credit Facility and to otherwise amend the terms of the existing Note Purchase Agreement. We expect that the applicable margin under the Note Purchase Agreement will be significantly improved. We expect that the Note Purchase Agreement in effect upon consummation of the Transactions will mature five years after the closing of this offering.

We do not expect the Note Purchase Agreement to include any required prepayments to achieve a Target Debt Balance.

We expect the obligations under the Note Purchase Agreement will be guaranteed by substantially all of WhiteHawk OpCo's existing and future direct and indirect subsidiaries, with certain customary or agreed upon exceptions. We expect WhiteHawk OpCo and the guarantors to pledge and grant a security interest in substantially all or certain of their assets as collateral for the Note Purchase Agreement.

We expect that the closing of the amendment of the Note Purchase Agreement will be subject to the satisfaction of certain customary conditions, including the absence of any default or event of default and the accuracy of representations and warranties.

We expect that the Note Purchase Agreement will provide for customary representations, warranties and covenants, including, among other things, hedging requirements, limitations on our ability to make investments and acquisitions, indebtedness, liens, dividends and distributions, and certain fundamental transactions. We expect that the Note Purchase Agreement will also require us to maintain certain financial covenants.

We expect that the restricted payments covenants under the amended Note Purchase Agreement to be significantly loosened.

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We also expect that the Note Purchase Agreement will contain events of default customary for facilities of this nature. Upon the occurrence and during the continuation of an event of default, subject to the terms and conditions of our Note Purchase Agreement, we expect that the holders will be able to declare any outstanding principal balance of our Note Purchase Agreement, together with accrued and unpaid interest, to be immediately due and payable and exercise other remedies.

***Note Purchase Agreement in Effect Before Consummation of the Transactions***

On September 17, 2024 we entered into the Note Purchase Agreement. On March 31, 2025, we entered into that certain First Amendment to Note Purchase Agreement with certain holders setting forth various amendments to the Note Purchase Agreement including the issuance and purchase of incremental Senior Notes in an aggregate principal amount of $86.0 million. On June 23, 2025, we entered into that certain Second Amendment to Note Purchase Agreement with certain holders setting forth various amendments to the Note Purchase Agreement including the issuance and purchase of incremental Senior Notes in an aggregate principal amount of $100.0 million. On January 27, 2026, we entered into that certain Third Amendment to Note Purchase Agreement with certain holders setting forth various amendments to the Note Purchase Agreement including permitting a like-kind exchange program with respect to certain acquired mineral interests and adding new subsidiaries as guarantors under the Note Purchase Agreement. On March 26, 2026, we entered into that certain Fourth Amendment to Note Purchase Agreement with certain holders setting forth various amendments to the Note Purchase Agreement including increasing the annual general and administrative cost that may be paid. On March 30, 2026, we entered into that certain Fifth Amendment to Note Purchase Agreement with certain holders setting forth various amendments to the Note Purchase Agreement including permitting the issuance of a new series of preferred stock and updating certain ratio tests for permitted distributions. As of December 31, 2025, we had $237.7 million of borrowings outstanding under our Senior Notes. As of December 31, 2025, the adjusted term SOFR rate plus 6.50% on our Senior Notes bore an interest rate of 10.80%.

Under the Note Purchase Agreement, we may not make restricted payments (such as dividends or stock redemptions) except as specifically permitted. Permitted restricted payments include dividends and distributions that satisfy the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No Default or Event of Default (as defined in the Note Purchase Agreement) has occurred and is continuing or
would result from such payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• After giving pro forma effect to such payment, we are in compliance with the affirmative and negative covenants
set forth in the Note Purchase Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• After giving pro forma effect to such payment, we maintain liquidity (calculated on a Distribution PF Basis) of
greater than Minimum Liquidity Amount (as defined in the Note Purchase Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• After giving pro forma effect to such payment, we maintain a Consolidated Total Net Leverage Ratio less than
(a) from March 31, 2025 through March 31, 2026, 3.75 to 1.00 for Primary Distributions (as defined in the Note Purchase Agreement) and 3.00 to 1.00 for additional common share dividends, (b) from April 1, 2026 through
September 30, 2027, 3.25 to 1.00 for Primary Distributions and 3.00 to 1.00 for additional common share dividends, and (c) from October 1, 2027 and thereafter, 2.75 to 1.00 for Primary Distributions and 2.00 to 1.00 for additional common
share dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• After giving pro forma effect to such payment, we maintain an Asset Coverage Ratio greater than (a) from
March 31, 2025 through March 31, 2026, 1.05 to 1.00 for Primary Distributions and 1.20 to 1.00 for additional common share dividends, (b) from April 1, 2026 through September 30, 2027, 1.10 to 1.00 for Primary Distributions and
1.20 to 1.00 for additional common share dividends, and (c) from October 1, 2027 and thereafter, 1.15 to 1.00 for Primary Distributions and 1.35 to 1.00 for additional common share dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the distribution period beginning October 1, 2027 and thereafter, the aggregate principal amount of Notes
outstanding as of such date of distribution is equal to or less than the Target Debt Balance (as defined in the Note Purchase Agreement) as of such date of distribution;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Such payment, together with all other restricted payments during the applicable distribution period, does not
exceed the Distributable Free Cash Flow (as defined in the Note Purchase Agreement) for such period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Such payment is made prior to the applicable CF Sweep Date (as defined in the Note Purchase Agreement) for the
relevant distribution period.

See "—Financial Covenants" for a description of the financial ratios and tests applicable to our Senior Notes.

The proceeds from the various issuances of Senior Notes were used to help fund certain acquisitions, repay existing debt, redeem preferred shares, and for general corporate purposes, including covering related transaction costs.

*Interest Rates and Fees* 

Borrowings under the Note Purchase Agreement bear interest at a rate per annum equal to (a) before June 20, 2025, (i) for any Senior Note other than an ABR Note (as defined in the Note Purchase Agreement), an adjusted term SOFR rate plus 6.25%, or (ii) for an ABR Note, ABR (as defined in the Note Purchase Agreement) plus 5.25%, and (b) on and after June 20, 2025, (i) for any Senior Note other than an ABR Note, an adjusted term SOFR rate plus 6.50%, or (ii) for an ABR Note, ABR plus 5.50%. Interest payments are due on the last day of each fiscal quarter and on the maturity date of our Senior Notes.

*Voluntary Prepayments* 

We may voluntarily prepay, in whole or in part, our Senior Notes on any business day, subject to certain minimum amounts, notice requirements, and the payment of any applicable make-whole amount or prepayment fee as specified in the Note Purchase Agreement.

In connection with the closing of this offering, we intend to use a portion of the net proceeds received to prepay, in whole or in part, the outstanding principal of our Senior Notes.

*Mandatory Prepayments* 

The Note Purchase Agreement requires us to prepay our Senior Notes (i) on a quarterly basis, an amount equal to the lesser of: (A) the difference between the aggregate outstanding principal amount of our Senior Notes and the Target Debt Balance (as defined in the Note Purchase Agreement) as of the date thereof, and (B) any liquidity (calculated on a Distribution PF Basis (as defined in the Note Purchase Agreement)) in excess of the Minimum Liquidity Amount (as defined in the Note Purchase Agreement), (ii) with 100% of the net cash proceeds from certain asset sales and casualty events, subject to reinvestment rights and thresholds, and (iii) with 100% of the proceeds from certain debt issuances and specified equity contributions for any Cure Amount (as defined in the Note Purchase Agreement), in each case subject to notice requirements and certain exceptions. Furthermore, upon the occurrence of a sale of all or substantially all the properties of the Note Parties or a Change in Control (each as defined in the Note Purchase Agreement), we are required to offer to repurchase all outstanding Senior Notes at the applicable redemption price.

*Affirmative and Negative Covenants* 

The Note Purchase Agreement contains a number of customary affirmative and negative covenants. Specifically, we are required to (subject to qualifiers and exceptions) (i) provide annual and quarterly financial statements, compliance certificates, reserve reports, and other requested information to the agent and holders, (ii) maintain our legal existence, rights, and licenses necessary for business operations, (iii) pay all taxes when due (except those contested in good faith), (iv) maintain adequate insurance, (v) comply with all applicable laws (including environmental, sanctions, and anti-corruption regulations), (vi) promptly notify the agent of material events such as defaults or litigation, (vii) maintain proper books and records, (viii) allow inspections of our properties,

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(ix) ensure collateral coverage, (x) enter into and maintain certain hedging agreements, (xi) use note proceeds only for specified purposes, and (xii) adhere to certain administrative, legal, and operational standards, such as ensuring that new material subsidiaries become guarantors.

Conversely, we may not (i) incur additional debt except as specifically permitted, (ii) create, incur, assume or permit to exist liens except for those securing obligations under the Note Purchase Agreement and other permitted liens, (iii) make restricted payments (such as dividends or redemptions) except as specifically permitted and subject to certain financial tests, (iv) make any investments outside of permitted categories, (v) materially change the nature of the business or operate outside the United States, (vi) engage in mergers, consolidations, or asset sales except as specifically permitted, (vii) engage in certain prohibited transactions with affiliates, (viii) amend our organizational documents in a way materially adverse to the holders, (ix) amend certain material agreements in a way materially adverse to the holders, (x) change our fiscal year-end, (xi) exceed specified leverage ratios or fall below asset coverage ratios, and (xii) comply with other customary restrictive covenants, including limitations on subsidiary formation, hedging activities, negative pledge agreements, and general and administrative costs. We are also required to maintain a passive holding company structure, limiting activities to those directly related to holding equity interests in subsidiaries and fulfilling our obligations under the Note Purchase Agreement.

*Final Maturity and Amortization* 

Our Senior Notes will mature on the earlier of (i) June 23, 2030 and (ii) the date on which all Senior Notes become due and payable in full, whether by acceleration or otherwise. Our Senior Notes are not subject to mandatory amortization, however, they are subject to a quarterly excess cash sweep as set forth therein.

*Guarantors* 

All obligations under the Note Purchase Agreement are guaranteed by WhiteHawk Income Marcellus LLC, WhiteHawk Income Haynesville LLC, WhiteHawk Income OP GP LLC, WhiteHawk Income Operating Partnership L.P., WhiteHawk VF LLC, PHX Minerals LLC, WhiteHawk Acquisition LLC, and our future material subsidiaries.

*Security* 

All obligations under the Note Purchase Agreement are secured, subject to permitted liens and other customary exceptions set forth in the Note Purchase Agreement and related security documents, by a first priority perfected security interest in substantially all of the personal property of us and the guarantors.

*Financial Covenants* 

We are required to maintain a Consolidated Total Net Leverage Ratio (as defined in the Note Purchase Agreement) not greater than (a) 3.50 to 1.00 for the fiscal quarters ending December 31, 2024 and March 31, 2025, (b) 4.00 to 1.00 for the fiscal quarters ending June 30, 2025 through December 31, 2025, (c) 3.50 to 1.00 for the fiscal quarter ending March 31, 2026, June 30, 2026, September 30, 2026, and December 31, 2026, and (d) 3.25 to 1.00 for the fiscal quarter ending March 31, 2027 and each fiscal quarter thereafter, and an Asset Coverage Ratio (as defined in the Note Purchase Agreement) not less than (a) 1.00 to 1.00 beginning with the fiscal quarter ending December 31, 2024 and (b) 1.10 to 1.00 beginning with the fiscal quarter ending March 31, 2027 and each fiscal quarter thereafter.

**Events of Default** 

The holders under the Note Purchase Agreement are permitted to accelerate our Senior Notes, terminate commitments, or exercise other remedies upon the occurrence of certain customary events of default, subject to specified grace periods and exceptions. These events of default include, among others, payment defaults, cross-defaults to material indebtedness, breaches of covenants, material inaccuracies in representations and warranties,

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bankruptcy or insolvency events, material judgments, defects in the perfection or priority of collateral, events that could reasonably be expected to have a material adverse effect, and changes of control.

**Revolving Credit Facility** 

WhiteHawk OpCo entered into a reserve-based revolving credit facility on May 10, 2026 among WhiteHawk OpCo, as borrower, us, as the parent, OP GP, as the general partner, Capital One, National Association, as administrative agent and a lender, and the other lenders party thereto (the "Revolving Credit Facility"), with the restrictions, covenants and funding obligations under such Revolving Credit Facility to be effective upon the closing of this offering (the "Effective Date"). The Revolving Credit Facility will provide for an initial aggregate maximum credit amount of $500 million, an initial aggregate elected commitment amount of $150 million and an initial borrowing base of $150 million, with a sublimit for the issuance of letters of credit of up to $10 million. The Revolving Credit Facility will mature four years after the Effective Date.

The Revolving Credit Facility will be available (i) to provide working capital and for acquisitions of oil and gas properties permitted under the Revolving Credit Facility, (ii) for general corporate purposes and (iii) to pay fees and expenses related to the loan documents and the offering.

The borrowing base under the Revolving Credit Facility is subject to semi-annual redeterminations on April 15 and October 15 of each year, commencing October 15, 2026. Each redetermination is based on a review of our proved oil and gas reserves, commodity prices and other factors deemed relevant by the administrative agent. In addition, each of WhiteHawk OpCo and the administrative agent (at the direction of the required lenders) may elect to initiate one interim redetermination of the borrowing base between scheduled redeterminations, and WhiteHawk OpCo may elect an additional interim redetermination in connection with acquisitions of oil and gas properties representing at least 5% of the then-effective borrowing base. There can be no assurance that the borrowing base will remain at its initial level, and any reduction in the borrowing base could require us to repay indebtedness in excess of the revised borrowing base.

In addition to scheduled and interim redeterminations, the borrowing base will be automatically reduced (i) by the borrowing base value of any oil and gas properties disposed of or swap agreements terminated if the aggregate value of such dispositions and terminations since the most recent redetermination date exceeds 5% of the then-effective borrowing base and (ii) upon the issuance of any permitted senior notes, by an amount equal to 25% of the aggregate stated principal amount of such notes.

The Revolving Credit Facility will allow us to request that the aggregate elected commitments be increased to up to the aggregate maximum credit amount, subject to certain conditions, by obtaining additional commitments from the existing lenders or by causing a person acceptable to the administrative agent to become a lender, subject to the borrowing base in effect at such time and the terms and conditions set forth in the Revolving Credit Facility.

The incurrence of borrowings and letter of credit issuances under the Revolving Credit Facility will be subject to the satisfaction of certain customary conditions, including the absence of any default or event of default, the accuracy of representations and warranties and the requirement that the Consolidated Cash Balance (as defined in the Revolving Credit Facility) does not exceed the greater of $25,000,000 and 10% of the borrowing base then in effect after giving pro forma effect to such borrowing and the use of proceeds thereof. Further, the effectiveness of the Revolving Credit Facility is conditioned on, among other things, consummation of this offering with minimum gross proceeds of $150 million contributed to WhiteHawk OpCo. The commitments under the Revolving Credit Facility will terminate if the conditions to effectiveness are not satisfied by August 8, 2026.

Borrowings under the Revolving Credit Facility will bear, at our option, interest at (i) a rate per annum equal to the margin plus the greatest of (1) the Prime Rate in effect on such day, (2) the Federal Funds Rate in effect on such day plus 1/2 of 1.00% or (3) Term SOFR for a one month interest period on such day plus 1.00% (provided

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that in no event shall the Alternate Base Rate be less than 1.00%) or (ii) the margin plus Term SOFR. Term SOFR will be subject to a floor of 2.50% while the Senior Notes are in effect and 0.00% thereafter. The margin will be based on the utilization of the borrowing base and will range from 1.50% to 2.50% for ABR loans and 2.50% to 3.50% for Term SOFR loans. The unused portion of the Revolving Credit Facility is subject to a commitment fee ranging from 0.375% to 0.50%. We will also pay certain ongoing customary fees and expenses under the Revolving Credit Facility. The interest rate amount under the Revolving Credit Facility must at no point exceed the highest lawful rate.

The Revolving Credit Facility will be secured by collateral including (i) substantially all of WhiteHawk OpCo's properties and assets, and the properties and assets of WhiteHawk OpCo's subsidiaries and (ii) pledges of the equity interests in all of WhiteHawk OpCo's present and future subsidiaries (subject to certain exceptions as provided for under the loan documents).

The obligations under the Revolving Credit Facility will be subject to an intercreditor agreement between the administrative agent for the Revolving Credit Facility and the agent for the holders of the notes issued under the Note Purchase Agreement, which governs the relative rights and priorities of the first lien secured parties and the second lien secured parties with respect to the collateral. The intercreditor agreement will also apply to our existing hedge counterparties.

The Revolving Credit Facility will provide for customary representations, warranties and covenants, including, among other things, covenants relating to financial reporting, notices of material events, maintenance of the existence of the business, payment of obligations, hedging requirements, limitations on our ability to make investments and acquisitions, indebtedness, liens, dividends and distributions, and certain fundamental transactions.

The Revolving Credit Facility will also require us to maintain a consolidated net leverage ratio for the rolling period then ending, as of the last day of any fiscal quarter (commencing with the first full fiscal quarter ending after the Effective Date), of no greater than 3.50 to 1.00 and a current ratio as of the last day of any fiscal quarter (commencing with the first full fiscal quarter ending after the Effective Date) of no less than 1.0 to 1.0.

With respect to dividends and distributions, the Revolving Credit Facility will permit us to make cash restricted payments to holders of our equity interests so long as, both before and immediately after giving effect to any such restricted payment, (A) no default, event of default or borrowing base deficiency exists, (B) unused availability is at least 10% of the loan limit and (C) the Consolidated Net Leverage Ratio is less than or equal to 3.00 to 1.00 on a pro forma basis; provided that such dividends and distributions are permitted by the Note Purchase Agreement, as in effect immediately following the amendment to the Note Purchase Agreement. See "Description of Material Indebtedness.". The Revolving Credit Facility will also permit distributions for tax purposes and other purposes, subject to certain exceptions.

With respect to hedging, the Revolving Credit Facility will require us, on the last day of each fiscal quarter, to maintain swap agreements hedging a minimum percentage of our reasonably projected production of crude oil and natural gas from proved developed producing reserves. The required hedging percentage and tenor varies based on the Consolidated Net Leverage Ratio: if the ratio is at least 1.50 to 1.00, we must hedge at least 50% of reasonably projected production for each of the 24 months following such date; if the ratio is at least 1.00 to 1.00 but less than 1.50 to 1.00, we must hedge at least 50% for 12 months and at least 25% for months 13 through 24; and if the ratio is less than 1.00 to 1.00, we must hedge at least 50% for 12 months ; provided that if our natural gas production exceeds 90% of our aggregate production, determined on a barrel of oil equivalent basis, we will not be required to hedge our volumes of crude oil.

The Revolving Credit Facility will contain events of default customary for facilities of this nature, including, but not limited, to: (i) events of default resulting from our failure or the failure of any credit party to comply with covenants and financial ratios; (ii) the occurrence of a change of control; (iii) the institution of insolvency or similar proceedings against us or any credit party; and (iv) the occurrence of a default under any other material

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indebtedness we or any guarantor may have. Upon the occurrence and during the continuation of an event of default, subject to the terms and conditions of the Revolving Credit Facility, the lenders will be able to declare any outstanding principal balance of our credit facility, together with accrued and unpaid interest, to be immediately due and payable and exercise other remedies.

The Revolving Credit Facility contains a "most favored terms" provision pursuant to which, if at any time any documentation governing the Note Purchase Agreement includes any representation, warranty, covenant (including financial covenants), event of default or other term excluding applicable margin for determining interest rates that is more restrictive as to the Company, OP GP, WhiteHawk OpCo or any restricted subsidiary than the corresponding terms of the Revolving Credit Facility and the other loan documents thereunder (each, a "More Restrictive Term"), the terms of the Revolving Credit Facility will, without any further action on the part of WhiteHawk OpCo, the administrative agent or any lender, be deemed to be automatically amended to incorporate each such More Restrictive Term, mutatis mutandis, effective as of the date when such More Restrictive Term became effective under the Note Purchase Agreement. As a result, the Revolving Credit Facility will at all times contain restrictions that are at least as restrictive as those set forth in the Note Purchase Agreement, and investors should be aware that the imposition of additional or more restrictive terms in the Note Purchase Agreement will automatically result in corresponding additional or more restrictive terms under the Revolving Credit Facility. Additionally, the Revolving Credit Facility will require that the Senior Notes be paid down to $75 million on the effective date and that they have a maturity date no earlier than 180 days after the maturity date in the Revolving Credit Facility.

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**DESCRIPTION OF CAPITAL STOCK** 

*The following summary describes the material terms of our capital stock as set forth in the amended and restated certificate of incorporation and amended and restated bylaws as they will be in effect upon the consummation of this offering, the certificates of designations of our Series B preferred stock and our Series D preferred stock remaining outstanding following this offering and certain applicable provisions of Delaware law. Because this is only a summary, it does not contain all the information that may be important to you. We urge you to read our amended and restated certificate of incorporation and our amended and restated bylaws, which are included as exhibits to the registration statement of which this prospectus forms a part.* 

**General** 

Prior to the consummation of this offering, we will file an amended and restated certificate of incorporation and we will adopt our amended and restated bylaws. Our amended and restated certificate of incorporation will authorize capital stock consisting of three classes as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of Class A common stock, par value $0.0001 per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of Class B common stock, par value $0.0001 per share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of preferred stock, par value $0.0001 per share.

We are selling shares of Class A common stock in this offering (shares if the underwriters exercise in full their option to purchase additional shares of our Class A common stock). All shares of our Class A common stock outstanding upon consummation of this offering will be fully paid and non-assessable. We are issuing shares of Class B common stock to the Continuing Equity Owners in connection with the Transactions (including this offering and the proposed use of proceeds) for nominal consideration.

The following summary describes the material provisions of our capital stock and certain provisions of our amended and restated certificate of incorporation and our amended and restated bylaws, each of which will become effective prior to the completion of this offering, and of the General Corporation Law of the State of Delaware (the "DGCL"), and is qualified by reference to the amended and restated certificate of incorporation, the amended and restated bylaws and the DGCL. We urge you to read our amended and restated certificate of incorporation and our amended and restated bylaws, which are included as exhibits to the registration statement of which this prospectus forms a part.

Certain provisions of our amended and restated certificate of incorporation and our amended and restated bylaws summarized below may be deemed to have an anti-takeover effect and may delay or prevent a tender offer or takeover attempt that a stockholder might consider in its best interest, including those attempts that might result in a premium over the market price for the shares of common stock.

**Common Stock** 

**Class A Common Stock** 

Holders of shares of our Class A common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders and on which the holders of the Class A common stock are entitled to vote.

Holders of shares of our Class A common stock are entitled to receive dividends when and if declared by our board of directors out of funds legally available therefor, subject to any statutory or contractual restrictions on the payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any outstanding preferred stock.

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Upon our dissolution or liquidation, after payment in full of all amounts required to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the holders of shares of our Class A common stock will be entitled to receive pro rata our remaining assets available for distribution.

Holders of shares of our Class A common stock do not have preemptive, subscription, redemption, or conversion rights. There will be no redemption or sinking fund provisions applicable to the Class A common stock.

Holders of shares of our Class A common stock will vote together with holders of our Class B common stock, as a single class on all matters presented to our stockholders for their vote or approval, except for certain amendments to the amended and restated certificate of incorporation or as otherwise required by applicable law or our amended and restated certificate of incorporation. Any amendment to our amended and restated certificate of incorporation that gives holders of the Class B common stock (i) any rights to receive dividends (subject to certain exceptions) or any other kind of distribution, (ii) any right to convert into or be exchanged for shares of Class A common stock, or (iii) any other economic rights (except for payments in cash in lieu of receipt of fractional stock) shall, in addition to the vote of the holders of shares of any class or series of our capital stock required by law, also require the affirmative vote of the holders of a majority of the voting power of the outstanding shares of Class A common stock voting separately as a class.

**Class B Common Stock** 

Each share of our Class B common stock entitles its holders to one vote per share on all matters presented to our stockholders and on which the holders of the Class B common stock are entitled to vote.

Shares of Class B common stock will be issued in the future only to the extent necessary to maintain a one-to-one ratio between the number of OpCo Interests held by the Continuing Equity Owners and the number of shares of Class B common stock issued to the Continuing Equity Owners. Shares of Class B common stock are transferable only together with an equal number of OpCo Interests. Only permitted transferees of OpCo Interests held by the Continuing Equity Owners will be permitted transferees of Class B common stock. See "Certain Relationships and Related Person Transactions—OpCo Agreement." Shares of Class B common stock automatically transferred to us upon the redemption or exchange of their OpCo Interests pursuant to the terms of the OpCo Agreement and will be canceled and may not be reissued.

Holders of shares of our Class B common stock will vote together with holders of our Class A common stock, as a single class on all matters presented to our stockholders for their vote or approval, except for certain amendments to our amended and restated certificate of incorporation described below or as otherwise required by applicable law or our amended and restated certificate of incorporation.

Except in certain limited circumstances, holders of our Class B common stock do not have any right to receive dividends or to receive a distribution upon dissolution or liquidation. Additionally, holders of shares of our Class B common stock do not have preemptive, subscription or redemption rights. There will be no redemption or sinking fund provisions applicable to the Class B common stock. Upon the redemption or exchange of an OpCo Interest (together with a share of Class B common stock) for Class A common stock, the shares of Class B common stock will be automatically transferred to us for no consideration and will be canceled and no longer outstanding. Such shares of Class B common stock may not be reissued. Any amendment of our amended and restated certificate of incorporation that gives holders of our Class B common stock (1) any rights to receive dividends or any other kind of distribution, (2) any right to convert into or be exchanged for shares of Class A common stock, or (3) any other economic rights (except for payments in cash in lieu of receipt of fractional stock) will require, in addition to any stockholder approval required by applicable law, the affirmative vote of holders of a majority of the voting power of the outstanding shares of our Class A common stock voting separately as a class.

Upon the consummation of the Transactions (including this offering and the proposed use of proceeds), the Continuing Equity Owners will own, in the aggregate, shares of our Class B common stock.

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**Preferred Stock** 

Our amended and restated certificate of incorporation that we will file in connection with the consummation of this offering will (i) authorize our board of directors to issue "blank check" preferred stock and (ii) include designations detailing the terms of our existing Series B preferred stock and Series D preferred stock.

Immediately prior to the consummation of this offering, we had shares of Series B preferred stock outstanding and shares of Series D preferred stock outstanding. In connection with this offering, we expect to redeem a portion of our outstanding Series B preferred stock and all of our outstanding Series D preferred stock. See "Use of Proceeds."

*Series B Preferred Stock.* Certain key terms of the Series B preferred stock are described below. We refer you to the Series B certificate of designations for a complete description of such terms.

*Voting Rights.* Series B preferred stock has no voting rights.

*Dividends.* The Series B preferred stockholders are entitled to a monthly preferred cumulative dividend at an annualized rate of ten percent (10%) until it is redeemed. Payment of such dividends on the Company's Series B preferred stock is subject to a dividend declaration by our board of directors. Unpaid dividends accrue monthly on a cumulative basis from the most recent date through which dividends have been paid or, if no dividends have been paid, from the date of issuance for each share of Series B preferred stock.

*Liquidation and Dissolution.* Series B preferred stock will be entitled to be paid out of the funds and assets available for distribution, an amount per share equal to the Stated Value (as defined herein), plus an amount per share that is issuable as the result of accrued or unpaid dividends. After payment to the holders of preferred stock, the remaining funds and assets available for distribution to stockholders shall be distributed among the holders of shares of common stock, *pro rata* based on the number of shares of common stock held by each such stockholder. The liquidation preference for our Series B preferred stock is as follows: (i) prior or senior to all classes or series of our common stock and any other class or series of common equity securities, if the holders of Series B preferred stock are entitled to the receipt of dividends or of amounts distributable upon liquidation, dissolution or winding up in preference or priority to the holders of shares of such class or series; (ii) on parity with our other classes or series of our preferred equity securities issued in the future if, pursuant to the specific terms of such class or series of equity securities, of which the holders of such preferred stock and the holders of Series B preferred stock are entitled to the receipt of dividends and of amounts distributable upon liquidation, dissolution or winding up in proportion to their respective amounts of accrued and unpaid dividends per share or liquidation preferences, without preference or priority one over the other; and (iii) junior to all our existing and future indebtedness and any other classes or series of preferred stock if, pursuant to the specific terms of such class or series of preferred stock, the holders of such preferred stock are entitled to the receipt of dividends or of amounts distributable upon liquidation, dissolution or winding up in preference or priority to the holders of Series B preferred stock.

*Maturity.* Shares of the Series B preferred stock have no stated maturity. Shares of the Series B preferred stock will remain outstanding indefinitely unless they are redeemed or repurchased by the Company. The Company is not required to set apart for payment funds to redeem the Series B preferred stock.

*Redemption:* Holders of Series B preferred stock may redeem such shares at any time subject to a monthly limit of 2% of the number of outstanding Series B preferred shares as of the end of the immediately prior month and a quarterly limit of 5% of the number of outstanding Series B preferred shares as of the end of the prior calendar quarter, subject to redemption fees if redeemed earlier than three years following the issuance date of 10% discount to Stated Value if redeemed in the first year following the date of issuance, 8% discount to Stated Value if redeemed in the second year following the date of issuance and 6% discount to Stated Value if redeemed in the third year following the date of issuance. Following the first anniversary of the date on which a share of Series B preferred stock was issued, the Company may also redeem the Series B preferred stock upon written notice to some or all of the holders for $1,000 per share (the "Stated

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Value") plus accrued but unpaid cumulative dividends. Additionally, the redemption of Series B preferred stock will be triggered by: (i) the sale, transfer or other disposition, in a single transaction or series of related transactions of all or substantially all of the Company's assets; (ii) a merger or consolidation transaction into another entity where immediately following the consummation of such transaction, the Company's common stockholders will receive the interests of another entity; or (iii) the closing of the transfer (whether by merger, consolidation or otherwise) of the Company's capital stock if, after such closing, the beneficial owner (as defined under the Exchange Act) would acquire more than 50% of the Company's outstanding voting securities (or those of a successor entity).

*Series D Preferred Stock*. Certain key terms of the Series D preferred stock are described below. We refer you to the Series D certificate of designations for a complete description of such terms.

*Voting and Consent Rights*. Series D preferred stock has no voting rights. However, at any time when any shares of Series D preferred stock are outstanding, the Company shall not do any of the following without the consent of the then-holders of Series D preferred stock: (i) other than pursuant to the Note Purchase Agreement, guarantee, directly or indirectly, or permit any subsidiary to guarantee, directly or indirectly, any indebtedness except for trade accounts of the Company or any subsidiary arising in the ordinary course of business; (ii) incur any indebtedness, other than trade credit incurred in the ordinary course of business or pursuant to the Note Purchase Agreement; and (iii) other than the Series D preferred stock, create or issue or obligate itself to issue shares of, or reclassify, any capital stock unless the same ranks junior to the Series D preferred stock with respect to its special rights, powers and preferences.

*Dividends*. The Series D preferred stockholders are entitled to a monthly preferred cumulative dividend at an annualized rate of fourteen percent (14%) until December 31, 2027, after which the Series D preferred stockholders are entitled to a monthly preferred cumulative dividend at an annualized rate of eighteen percent (18%), in each case, until the Series D preferred stock is redeemed. Payment of such dividends on the Company's Series D preferred stock is subject to a dividend declaration by our board of directors. Unpaid dividends accrue monthly on a cumulative basis from the most recent date through which dividends have been paid or, if no dividends have been paid, from the date of issuance for each share of Series D preferred stock.

*Liquidation and Dissolution*. Series D preferred stock will be entitled to be paid out of the funds and assets available for distribution, an amount per share sufficient to provide for a total return of 8% per share of Series D preferred stock, after giving effect to the payment of all dividends thereon (the "Minimum Return"). After payment to the holders of Series D preferred stock of the Minimum Return, the Series B preferred stock will be entitled to be paid out of the remaining funds and assets available for distribution, an amount per share equal to the Stated Value, plus an amount per share that is issuable as the result of the accrued or unpaid dividends. After payment to the holders of preferred stock, the remaining funds and assets available for distribution to stockholders shall be distributed among the holders of shares of common stock, pro rata based on the number of shares of common stock held by each such stockholder. The liquidation preference for our Series D preferred stock is as follows: (i) prior or senior to all classes or series of our common stock, Series B preferred stock and any other class or series of common equity securities, if the holders of Series D preferred stock are entitled to the receipt of dividends or of amounts distributable upon liquidation, dissolution or winding up in preference or priority to the holders of shares of such class or series; and (ii) junior to all our existing and future indebtedness and any other classes or series of preferred stock if, pursuant to the specific terms of such class or series of preferred stock, the holders of such preferred stock are entitled to the receipt of dividends or of amounts distributable upon liquidation, dissolution or winding up in preference or priority to the holders of Series D preferred stock.

*Maturity*. Shares of the Series D preferred stock have no stated maturity. Shares of the Series D preferred stock will remain outstanding indefinitely unless they are redeemed or repurchased by the Company. The Company is not required to set apart for payment funds to redeem the Series D preferred stock. However, if the Company does not redeem all of the shares of Series D preferred stock prior to December 31, 2028, the Company shall not be allowed to declare, pay or set aside any distributions or dividends with respect to any

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class or series of capital stock of the Company until all of the shares of Series D preferred stock have been redeemed and the holders thereof have received the Minimum Return.

*Redemption*: The Company shall have the right, but not the obligation, to redeem the shares of Series D preferred stock at any time and from time to time for $1,000 per share, plus all accrued but unpaid cumulative dividends thereon, if any (such aggregate amount, the "Redemption Price"). Upon the exercise of the Company's optional redemption right with respect to any share of Series D preferred stock that is the last share of Series D preferred stock held by a Holder of Series D preferred stock, in addition to the Redemption Price, if applicable, the Company shall pay an additional dividend, if required, such that, together with the payment of the Redemption Price and all dividends paid with respect to such holder in the aggregate, such holder shall have received the Minimum Return (such additional dividend, the "Minimum Return Payment"). Additionally, the redemption of Series D preferred stock will be triggered by: (i) a Deemed Liquidation Event (as defined in our amended and restated certificate of incorporation); (ii) the cessation, or deemed cessation, of business by the Company; (iii) the commencement of any legal proceeding by any judgment creditor against the Company to attach or levy upon any material property of the Company which is not dismissed within forty-five (45) days; (iv) any bankruptcy, insolvency, receivership, liquidation, or dissolution under applicable law or statute; or (v) a general assignment by the Company for the benefit of its creditors.

*Authorized but unissued preferred stock.* Our board of directors will be authorized to provide for the issuance of additional preferred stock in one or more series and to fix the preferences, powers and relative, participating, optional or other special rights and qualifications, limitations or restrictions thereof, including the dividend rate, conversion rights, voting rights, redemption rights and liquidation preference and to fix the number of shares to be included in any such series without any further vote or action by our stockholders. Any preferred stock so issued may rank senior to our common stock with respect to the payment of dividends or amounts upon liquidation, dissolution or winding up, or both. In addition, any such shares of preferred stock may have class or series voting rights. Unless required by law or by any stock exchange on which our common stock may be listed, the authorized shares of preferred stock will be available for issuance without further action by our stockholders. Delaware law does not require stockholder approval for any issuance of authorized shares. However, the listing requirements of the NYSE which would apply as long as our common stock is listed on the NYSE, require stockholder approval of certain issuances equal to or exceeding 20% of the combined voting power of our common stock. These additional shares of preferred stock may be used for a variety of corporate purposes, including future public offerings to raise additional capital, acquisitions and employee benefit plans. The issuance of preferred stock may enable our board of directors to issue shares to persons friendly to current management, which could render more difficult or discourage an attempt to obtain control of the Company by means of a merger, tender offer, proxy contest or otherwise, and could thereby protect the continuity of our management and possibly deprive stockholders of opportunities to sell their shares of common stock at prices higher than prevailing market prices.

In connection with the completion of this offering, we intend to use a portion of the net proceeds to redeem, in whole or in part, shares of one or more series of our outstanding preferred stock.

**Indemnification and Limitations on Directors' Liability** 

Our amended and restated certificate of incorporation and amended and restated bylaws provide indemnification for our directors and officers to the fullest extent permitted by the DGCL. Prior to the closing of this offering, we intend to enter into indemnification agreements with each of our directors and officers that may, in some cases, be broader than the specific indemnification provisions contained under Delaware law. In addition, as permitted by Delaware law, our amended and restated certificate of incorporation will include provisions that eliminate the personal liability of our directors and officers for monetary damages for any breach of fiduciary duty as a director or officer, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL. The effect of this provision is to restrict our rights and the rights of our stockholders in derivative suits to

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recover monetary damages against a director or officer for breach of fiduciary duties as a director or officer. Our amended and restated certificate of incorporation also provides that the Corporation shall have the power to provide rights to indemnification and advancement of expenses to its current and former officers, directors, employees and agents and to any person who is or was serving at our request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise.

In connection with this offering, we expect to enter into a directors' and officers' insurance policy. The policy is expected to insure our directors and officers against unindemnified losses arising from certain wrongful acts in their capacities as directors and officers and reimburse us for those losses for which we have lawfully indemnified the directors and officers. The policy is expected to contain various exclusions that are normal and customary for policies of this type.

**Anti-Takeover Provisions** 

Our amended and restated certificate of incorporation and amended and restated bylaws will contain provisions that may delay, defer or discourage transactions involving an actual or potential change in control of us or change in our management. We expect that these provisions, which are summarized below, will discourage coercive takeover practices or inadequate takeover bids. These provisions will be designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors, which we believe may result in an improvement of the terms of any such acquisition in favor of our stockholders. However, they will also give our board of directors the power to discourage transactions that some stockholders may favor, including transactions in which stockholders might otherwise receive a premium for their shares or transactions that our stockholders might otherwise deem to be in their best interests. Accordingly, these provisions could adversely affect the price of our Class A common stock.

*Classified Board of Directors.* Our amended and restated certificate of incorporation will provide that our board of directors will be divided into three classes, and with the directors serving three-year terms. Approximately one third of our directors will be elected each year. See "Management—Board of Directors." The classification of directors will have the effect of making it more difficult for stockholders to change the composition of our board of directors and may prevent a third party who acquires control of a majority of our outstanding voting stock from obtaining control of our board of directors.

*Removal of Directors.* The number of directors constituting our board of directors is determined from time to time by our board of directors. Our amended and restated certificate of incorporation will also provide that, subject to any rights of any preferred stock then outstanding, any director may be removed from office at any time but only for cause by the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of the shares entitled to vote for the election of directors. In addition, our amended and restated certificate of incorporation will provide that, so long as our board of directors remains classified, any vacancy on the board of directors, including a vacancy that results from an increase in the number of directors, may be filled only by a majority of the directors then in office, even if less than a quorum, or by a sole remaining director. This provision will prevent stockholders from removing incumbent directors without cause and filling the resulting vacancies with their own nominees.

*Stockholder Action by Written Consent.* Our amended and restated certificate of incorporation will provide that, subject to the rights of any holders of preferred stock to act by written consent instead of a meeting, stockholder

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action may be taken only at an annual meeting or special meeting of stockholders and may not be taken by written consent instead of a meeting. Failure to satisfy any of the requirements for a stockholder meeting could delay, prevent or invalidate stockholder action.

*Special Meetings of Stockholders.* Our amended and restated certificate of incorporation and amended and restated bylaws will provide that special meetings of the stockholders may be called only by or at the direction the board of directors, the chairperson of the board of directors, the chief executive officer or president. Our amended and restated bylaws will prohibit the conduct of any business at a special meeting other than as specified in the notice for such meeting. These provisions may have the effect of deferring, delaying or discouraging hostile takeovers or changes in control or management of our company.

*Advance Notice of Nominations and Other Business.* Our amended and restated bylaws will establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of our board of directors or a committee of our board of directors. In order for any matter to be "properly brought" before a meeting, a stockholder will have to comply with the advance notice requirements. Our amended and restated bylaws will allow the presiding officer at a meeting of the stockholders to adopt rules and regulations for the conduct of meetings, which may have the effect of precluding the conduct of certain business at a meeting if the rules and regulations are not followed. These provisions may also defer, delay or discourage a potential acquiror from conducting a solicitation of proxies to elect the acquiror's own slate of directors or otherwise attempting to obtain control of our company.

*Section 203 of the DGCL.* Our amended and restated certificate of incorporation will provide that the Company expressly elects not to be governed by Section 203 of the DGCL. However, our certificate of incorporation will contain provisions that are similar to Section 203 of the DGCL. Specifically, these provisions will prohibit us from engaging in any business combination with any interested stockholder (a stockholder who owns more than 15% of our Class A common stock) for a period of three years after the interested stockholder became such unless: (i) prior to such time the board of directors approved either the business combination or the transaction which resulted in such stockholder becoming an interested stockholder, (ii) upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the outstanding voting stock, excluding shares held by directors who are also officers and certain employee stock plans, or (iii) at or subsequent to such time the business combination is approved by the board of directors and by the affirmative vote of at least 66 2/3% of the outstanding voting stock not owned by the interested stockholder.

*Amendment of Bylaws and Certificate of Incorporation.* Any amendment to our amended and restated certificate of incorporation must first be approved by stockholders. Our amended and restated certificate of incorporation will provide that the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of all of the then-outstanding shares of capital stock entitled to vote is required to amend or repeal certain provisions of our certificate of incorporation. Our amended and restated bylaws may be amended by the board of directors. Our stockholders may also adopt, amend or repeal the bylaws, but only by the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of all the then-outstanding shares of voting stock.

**Exclusive Forum** 

Our amended and restated certificate of incorporation will provide that, unless we consent in writing to an alternative forum, the Court of Chancery of the State of Delaware shall, to the fullest extent permitted by law, be the sole and exclusive forum for any (i) derivative action or proceeding brought on our behalf, (ii) action asserting a claim of breach of a fiduciary duty or other wrongdoing by any current or former director, officer, employee, agent or stockholder to us or our stockholders, (iii) action asserting a claim arising pursuant to any provision of the DGCL, our amended and restated certificate of incorporation or our amended and restated bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware, or (iv) action asserting a claim governed by the internal affairs doctrine of the law of the State of Delaware. Our

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**Listing** 

We intend to apply to have our Class A common stock listed on NYSE under the symbol "WHK."

**Transfer Agent and Registrar** 

The transfer agent and registrar for our Class A common stock is .

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**SHARES ELIGIBLE FOR FUTURE SALE** 

Immediately prior to this offering, there was no public market for our Class A common stock. Future sales of substantial amounts of Class A common stock in the public market (including shares of Class A common stock issuable upon redemption or exchange of OpCo Interests of our Continuing Equity Owners), or the perception that such sales may occur, could adversely affect the market price of our Class A common stock. Although we intend to apply to have our Class A common stock listed on the Exchange, we cannot assure you that there will be an active public market for our Class A common stock.

Upon the closing of this offering, we will have an aggregate of shares of Class A common stock outstanding, assuming the issuance of shares of Class A common stock offered by us in this offering. Of these shares, all shares sold in this offering will be freely tradable without restriction or further registration under the Securities Act, except for any shares purchased by our affiliates, as that term is defined in Rule 144 under the Securities Act, whose sales would be subject to the Rule 144 resale restrictions described below, other than the holding period requirement.

None of the shares of Class A common stock will be restricted securities, as that term is defined in Rule 144 under the Securities Act. Restricted securities are eligible for public sale only if they are registered under the Securities Act or if they qualify for an exemption from registration under the Securities Act, including Rules 144 or 701 under the Securities Act, which are summarized below.

In addition, each OpCo Interest held by our Continuing Equity Owners will be redeemable, at the election of each Continuing Equity Owner, for, at our election (determined solely by our independent directors (within the meaning of the Exchange rules) who are disinterested), newly-issued shares of our Class A common stock on a one-for-one basis or a cash payment equal to a volume weighted average market price of one share of Class A common stock for each OpCo Interest so redeemed, in each case, in accordance with the terms of the OpCo Agreement; provided that, at our election (determined solely by our independent directors (within the meaning of the Exchange rules) who are disinterested), we may effect a direct exchange by WhiteHawk Income Corporation of such Class A common stock or such cash, as applicable, for such OpCo Interests. The Continuing Equity Owners may, subject to certain exceptions, exercise such redemption right for as long as their OpCo Interests remain outstanding. See "Certain Relationships and Related Person Transactions—OpCo Agreement." Upon consummation of the Transactions, our Continuing Equity Owners will hold OpCo Interests, all of which will be exchangeable for shares of our Class A common stock. The shares of Class A common stock we issue upon such exchanges would be "restricted securities" as defined in Rule 144 unless we register such issuances. However, we will enter into the Registration Rights Agreement with certain of the Continuing Equity Owners that will require us, subject to customary conditions, to register under the Securities Act these shares of Class A common stock. See "Certain Relationships and Related Person Transactions—Registration Rights Agreement."

**Lock-up Arrangements and Registration Rights** 

We and our directors and executive officers will enter into lock-up agreements pursuant to which we and they will be subject to certain restrictions with respect to the offer, sale or disposition or hedge of our securities for a period of 180 days following the date of this prospectus. Additionally, our amended and restated certificate of incorporation will provide that, subject to certain exceptions, all of the shares of Class A common stock held by the Legacy Common Stock Investors may not be sold, pledged, transferred or otherwise disposed of for 365 days following the consummation of this offering, or such shorter period as determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering.

In addition, following the expiration of the lock-up period, certain of the Continuing Equity Owners will have the right under the Registration Rights Agreement, subject to certain conditions, to require us to register the sale of their shares of our Class A common stock under federal securities laws. Registration of these shares under the Securities Act will result in these shares becoming freely tradable immediately upon the effectiveness of such registration, subject to the restrictions of Rule 144. See "Certain Relationships and Related Party Transactions—Registration Rights Agreement."

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Following the lock-up periods described above, all of the shares of our Class A common stock that are restricted securities or are held by our affiliates as of the date of this prospectus will be eligible for sale in the public market in compliance with Rule 144 under the Securities Act.

**Rule 144** 

The shares of our Class A common stock sold in this offering will generally be freely transferable without restriction or further registration under the Securities Act, except that any shares of our Class A common stock held by an "affiliate" of ours may not be resold publicly except in compliance with the registration requirements of the Securities Act or under an exemption under Rule 144 or otherwise. Rule 144 permits our Class A common stock that has been acquired by a person who is an affiliate of ours, or has been an affiliate of ours within the past three months, to be sold into the market in an amount that does not exceed, during any three-month period, the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• one percent of the total number of shares of our Class A common stock outstanding; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average weekly reported trading volume of our Class A common stock for the four calendar weeks prior to the
sale.

Such sales are also subject to specific manner of sale provisions, a six-month holding period requirement, notice requirements and the availability of current public information about us.

Approximately shares of our Class A common stock that are not subject to lock-up arrangements described above will be eligible for sale under Rule 144 immediately upon the closing.

Rule 144 also provides that a person who is not deemed to have been an affiliate of ours at any time during the three months preceding a sale, and who has for at least six months beneficially owned shares of our Class A common stock that are restricted securities, will be entitled to freely sell such shares of our Class A common stock subject only to the availability of current public information regarding us. A person who is not deemed to have been an affiliate of ours at any time during the three months preceding a sale, and who has beneficially owned for at least one year shares of our Class A common stock that are restricted securities, will be entitled to freely sell such shares of our Class A common stock under Rule 144 without regard to the current public information requirements of Rule 144.

**Rule 701** 

Rule 701 generally allows a stockholder who purchased shares of our capital stock pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate of our company during the immediately preceding 90 days to sell these shares in reliance upon Rule 144, but without being required to comply with the public information, holding period, volume limitation or notice provisions of Rule 144. Rule 701 also permits affiliates of our company to sell their Rule 701 shares under Rule 144 without complying with the holding period requirements of Rule 144. All holders of Rule 701 shares, however, are required to wait until 90 days after the date of this prospectus before selling those shares pursuant to Rule 701, subject to the expiration of the lock-up restrictions described above.

**Additional Registration Statements** 

We intend to file one or more registration statements on Form S-8 under the Securities Act to register shares of our Class A common stock subject to issuance under our equity incentive plans. Such registration statement is expected to be filed soon after the date of this prospectus and will automatically become effective upon filing with the SEC. Accordingly, shares of our Class A common stock registered under such registration statements will be available for sale in the open market, unless such shares are subject to the Rule 144 limitations, vesting restrictions with us or the lock-up restrictions described above.

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**MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS TO NON-U.S. HOLDERS OF CLASS A COMMON STOCK** 

The following discussion is a summary of the material U.S. federal income tax consequences to Non-U.S. Holders (as defined below) of the ownership and disposition of our Class A common stock issued pursuant to this offering but does not purport to be a complete analysis of all potential tax effects. The effects of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state, local, or non-U.S. tax laws are not discussed. This discussion is based on the Code, Treasury Regulations promulgated thereunder, judicial decisions, and published rulings and administrative pronouncements of the IRS, in each case in effect as of the date hereof. These authorities may change or be subject to differing interpretations. Any such change or differing interpretation may be applied retroactively in a manner that could adversely affect a Non-U.S. Holder. We have not sought and will not seek any rulings from the IRS regarding the matters discussed below. There can be no assurance the IRS or a court will not take a contrary position to that discussed below regarding the tax consequences of the ownership and disposition of our Class A common stock.

This discussion is limited to Non-U.S. Holders that hold our Class A common stock as a "capital asset" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S. federal income tax consequences relevant to a Non-U.S. Holder's particular circumstances, including the impact of the Medicare contribution tax on net investment income and the alternative minimum tax. In addition, it does not address consequences relevant to Non-U.S. Holders subject to special rules, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. expatriates and former citizens or long-term residents of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons holding our Class A common stock as part of a straddle or other risk reduction strategy or as part
of a conversion transaction or other integrated investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• banks, insurance companies, and other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• brokers, dealers, or certain electing traders in securities that are subject to a mark-to-market method of tax accounting for their securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "controlled foreign corporations," "passive foreign investment companies," and
corporations that accumulate earnings to avoid U.S. federal income tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and
investors therein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-exempt organizations or governmental organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons deemed to sell our Class A common stock under the constructive sale provisions of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons required for U.S. federal income tax purposes to conform the timing of income accruals with respect to
our Class A common stock to their financial statements under Section 451(b) of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons who hold or receive our Class A common stock pursuant to the exercise of any employee stock option
or otherwise as compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-qualified retirement plans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "qualified foreign pension funds" as defined in Section 897(l)(2) of the Code and entities all
of the interests of which are held by qualified foreign pension funds.

If an entity treated as a partnership for U.S. federal income tax purposes holds our Class A common stock, the tax treatment of an owner of such an entity will depend on the status of the owner, the activities of such entity and certain determinations made at the owner level. Accordingly, entities treated as partnerships for U.S. federal income tax purposes holding our Class A common stock and the owners of such entities should consult their tax advisors regarding the U.S. federal income tax consequences to them.

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**THIS DISCUSSION IS NOT TAX ADVICE. PROSPECTIVE INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE OWNERSHIP AND DISPOSITION OF OUR CLASS A COMMON STOCK ARISING UNDER THE U.S. FEDERAL ESTATE OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE, LOCAL, OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE INCOME TAX TREATY.** 

**Definition of a Non-U.S. Holder** 

For purposes of this discussion, a "Non-U.S. Holder" is any beneficial owner of our Class A common stock that is an individual, corporation, estate or trust that is not a "U.S. person." A U.S. person is any person that, for U.S. federal income tax purposes, is or is treated as any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an individual \who is a citizen or resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or
organized under the laws of the United States, any state thereof, or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more
"United States persons" (within the meaning of Section 7701(a)(30) of the Code), or (2) has a valid election in effect to be treated as a United States person for U.S. federal income tax purposes.

**Distributions** 

As described in the section entitled "Dividend policy," we do not anticipate declaring or paying any dividends on our Class A common stock in the foreseeable future. However, if we do make distributions of cash or property on our Class A common stock, such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts not treated as dividends for U.S. federal income tax purposes will constitute returns of capital and first be applied against and reduce a Non-U.S. Holder's adjusted tax basis in its Class A common stock, but not below zero. Any excess will be treated as capital gain and will be treated as described below under "—Sale or other taxable disposition."

Subject to the discussion below on effectively connected income, dividends paid to a Non-U.S. Holder will be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax treaty, provided the Non-U.S. Holder furnishes a valid IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying qualification for the lower treaty rate). A Non-U.S. Holder that does not timely furnish the required documentation, but that qualifies for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. Non-U.S. Holders should consult their tax advisors regarding their entitlement to benefits under any applicable income tax treaty.

If dividends paid to a Non-U.S. Holder are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such dividends are attributable), the Non-U.S. Holder will be exempt from the U.S. federal withholding tax described above. To claim the exemption, the Non-U.S. Holder must furnish to the applicable withholding agent a valid IRS Form W-8ECI, certifying that the dividends are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States. Any such effectively connected dividends will be subject to U.S. federal income tax on a net income basis at the rates and in the manner generally applicable to United States persons (as defined by the Code) unless an applicable income tax treaty provides otherwise. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such

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effectively connected dividends, as adjusted for certain items. Non-U.S. Holders should consult their tax advisors regarding any applicable tax treaties that may provide for different rules.

**Sale or other taxable disposition** 

A Non-U.S. Holder will not be subject to U.S. federal income tax on any gain realized upon the sale or other taxable disposition of our Class A common stock unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the gain is effectively connected with the Non-U.S. Holder's
conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such gain is
attributable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Non-U.S. Holder is a nonresident alien individual present in the
United States for 183 days or more during the taxable year of the disposition and certain other requirements are met; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Class A common stock constitutes a U.S. real property interest ("USRPI") by reason of our
status as a U.S. real property holding corporation ("USRPHC") for U.S. federal income tax purposes.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis at the rates and in the manner generally applicable to United States persons (as defined by the Code) unless an applicable income tax treaty provides otherwise. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected gain, as adjusted for certain items.

A Non-U.S. Holder described in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on gain realized upon the sale or other taxable disposition of our Class A common stock, which may be offset by certain U.S.-source capital losses of the Non-U.S. Holder (even though the individual is not considered a resident of the United States), provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with respect to such losses.

With respect to the third bullet point above, we believe that we currently are, and expect to remain for the foreseeable future, a USRPHC for U.S. federal income tax purposes. However, as long as our Class A common stock continues to be regularly traded on an established securities market, only a non-U.S. holder that actually or constructively owns, or owned at any time during the shorter of the five-year period ending on the date of the disposition and the Non-U.S. Holder's holding period for the Class A common stock, more than 5% of our Class A common stock will be subject to tax with respect to gain realized on the disposition of our Class A common stock as a result of our status as a USRPHC. We anticipate that our Class A common stock will be regularly traded on an established securities market following this offering. However, no assurance can be given in this regard, and no assurance can be given that our Class A common stock will remain regularly traded in the future. If our Class A common stock were not considered to be regularly traded on an established securities market during the calendar year in which the relevant disposition by a Non-U.S. Holder occurred, such holder (regardless of the percentage of our Class A common stock owned) would be subject to U.S. federal income tax on the taxable disposition of our Class A common stock (as described in the preceding paragraph), and a 15% withholding tax would apply to the gross proceeds from such disposition.

Non-U.S. Holders should consult their tax advisors regarding potentially applicable income tax treaties that may provide for different rules.

**Information reporting and backup withholding** 

Payments of dividends on our Class A common stock will not be subject to backup withholding, provided the applicable payor does not have actual knowledge or reason to know the Non-U.S. Holder is a United States person and the Non-U.S. Holder either certifies its non-U.S. status, such as by furnishing a valid IRS Form W-8BEN, W-8BEN-E or W-8ECI, or otherwise establishes an exemption.

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However, information returns are required to be filed with the IRS in connection with any distributions on our Class A common stock paid to the Non-U.S. Holder, regardless of whether any tax was actually withheld. In addition, proceeds of the sale or other taxable disposition of our Class A common stock within the United States or conducted through certain U.S.-related brokers generally will not be subject to backup withholding or information reporting if the applicable payor receives the certification described above and does not have actual knowledge or reason to know that such Non-U.S. Holder is a United States person or the Non-U.S. Holder otherwise establishes an exemption. Proceeds of a disposition of our Class A common stock conducted through a non-U.S. office of a non-U.S. broker that does not have certain enumerated relationships with the United States generally will not be subject to backup withholding or information reporting.

Copies of information returns that are filed with the IRS may also be made available under the provisions of an applicable treaty or agreement to the tax authorities of the country in which the Non-U.S. Holder resides or is established.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a Non-U.S. Holder's U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

**Additional withholding tax on payments made to foreign accounts** 

Withholding may be imposed under Sections 1471 to 1474 of the Code (such Sections commonly referred to as the Foreign Account Tax Compliance Act ("FATCA") on certain types of payments made to non-U.S. financial institutions and certain other non-U.S. entities. Specifically, a 30% withholding may be imposed on dividends on, or (subject to the proposed Treasury Regulations discussed below) gross proceeds from the sale or other disposition of, our Class A common stock paid to a "foreign financial institution" or a "non-financial foreign entity" (each as defined in the Code), unless (1) the foreign financial institution undertakes certain diligence and reporting obligations, (2) the non-financial foreign entity either certifies it does not have any "substantial United States owners" (as defined in the Code) or furnishes identifying information regarding each substantial United States owner, or (3) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. If the payee is a foreign financial institution and is subject to the diligence and reporting requirements in (1) above, it must enter into an agreement with the U.S. Department of the Treasury requiring, among other things, that it undertake to identify accounts held by certain "specified United States persons" or "United States owned foreign entities" (each as defined in the Code), annually report certain information about such accounts, and withhold 30% on certain payments to non-compliant foreign financial institutions and certain other account holders. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules.

Under the applicable Treasury Regulations and administrative guidance, withholding under FATCA generally applies to payments of dividends on our Class A common stock. While withholding under FATCA would have applied also to payments of gross proceeds from the sale or other disposition of stock, proposed Treasury Regulations eliminate FATCA withholding on payments of gross proceeds entirely. Taxpayers generally may rely on these proposed Treasury Regulations until final Treasury Regulations are issued.

If withholding under FATCA is imposed, a beneficial owner that is not a foreign financial institution generally may obtain a refund of any amounts withheld by filing a U.S. federal income tax return (which may entail significant administrative burden). Prospective investors should consult their tax advisors regarding the potential application of withholding under FATCA to their investment in our Class A common stock.

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**UNDERWRITING** 

Raymond James & Associates, Inc. and Stifel, Nicolaus & Company, Incorporated are acting as representatives of the underwriters of this offering. Under the terms of an underwriting agreement, which will be filed as an exhibit to the registration statement of which this prospectus forms a part, each of the underwriters named below has severally agreed to purchase from us the respective number of shares of Class A common stock shown opposite its name below:

---

| | |
|:---|:---|
| **Underwriter** | **Number of<br>Shares** |
|  Raymond James & Associates, Inc. |  |
|  Stifel, Nicolaus & Company, Incorporated |  |
|  J.P. Morgan Securities LLC |  |
|  Capital One Securities, Inc. |  |
|  Stephens Inc. |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  |

---

The underwriting agreement provides that the obligation of the underwriters to purchase and accept delivery of the shares of Class A common stock offered by this prospectus are subject to approval by their counsel of certain legal matters and to certain other customary conditions set forth in the underwriting agreement.

The underwriters are obligated to purchase and accept delivery of all of the shares of Class A common stock offered by this prospectus, if any of the shares of Class A common stock are purchased, other than those covered by the underwriters' option to purchase additional shares described below.

The underwriters initially propose to offer the shares of Class A common stock directly to the public at the public offering price listed on the cover page of this prospectus and to various dealers at that price less a concession not in excess of $ per share of Class A common stock. After the public offering of the shares of Class A common stock, the underwriters may change the public offering price and other selling terms. The shares of Class A common stock are offered by the underwriters as stated in this prospectus, subject to receipt and acceptance by them. The underwriters reserve the right to reject an order for the purchase of the shares of Class A common stock in whole or in part.

**Option to Purchase Additional Shares** 

We have granted the underwriters an option exercisable for 30 days after the date of this prospectus to purchase, from time to time, in whole or in part, up to an aggregate of shares of our Class A common stock from us at the offering price less underwriting discounts and commissions, solely for the purpose of covering overallotments. To the extent that this option is exercised, each underwriter will be obligated, subject to certain conditions, to purchase its pro rata portion of these additional shares based on the underwriter's percentage underwriting commitment in this offering as indicated in the above table.

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**Discounts and Expenses** 

The following table summarizes the underwriting discounts and commissions we will pay to the underwriters. These amounts are shown assuming both no exercise and full exercise of the underwriters' option to purchase additional shares. The underwriting fee is the difference between the initial price to the public and the amount the underwriters pay to us for the shares.

---

| | | |
|:---|:---|:---|
|  | **Paid by the<br>Company** | **Paid by the<br>Company** |
|  | **No Exercise** | **Full Exercise** |
|  Per Share | $| $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $| $|

---

If all the shares are not sold at the initial public offering price following the initial public offering, the representatives may change the offering price and other selling terms.

The expenses of the offering that are payable by us are estimated to be approximately $(excluding underwriting discounts and commissions). We have agreed to reimburse the underwriters for certain of their expenses in an amount up to $.

**Indemnification** 

We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act, and to contribute to payments that the underwriters may be required to make for these liabilities.

**Lock-Up Restrictions** 

We and our directors and executive officers will enter into lock-up agreements pursuant to which we and they will be subject to certain restrictions with respect to the offer, sale or disposition or hedge of any of our securities for a period of 180 days following the date of this prospectus. Additionally, our amended and restated certificate of incorporation will provide that, subject to certain exceptions, all of the shares of Class A common stock held by the Legacy Common Stock Investors may not be sold, pledged, transferred or otherwise disposed of for 365 days following the consummation of this offering, or such shorter period as determined by the board of directors, but in no event less than 180 days without the prior written consent of the managing underwriter of this offering. Following the expiration of such lock-up restrictions, such stockholders, subject to compliance with the Securities Act or exceptions therefrom, will be able to freely trade their Class A common stock. These restrictions also preclude any hedging collar or other transaction designed or reasonably expected to result in a disposition of shares of Class A common stock or securities convertible into or exercisable or exchangeable for shares of Class A common stock. The representatives may, in their sole discretion and at any time without notice, release all or any portion of the securities subject to these restrictions.

**Offering Price Determination** 

Prior to this offering, there has been no public market for our Class A common stock. The initial public offering price was negotiated between the representatives and us. In determining the initial public offering price of our Class A common stock, the representatives considered:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the history and prospects for the industry in which we compete;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our financial information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our management and our business potential and earning prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the prevailing securities markets at the time of this offering; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the recent market prices of, and the demand for, publicly traded shares of generally comparable companies.

**Stabilization, Short Positions and Penalty Bids** 

Until the distribution of the securities offered by this prospectus is completed, rules of the SEC may limit the ability of the underwriters to bid for and to purchase shares of our Class A common stock. As an exception to these rules, the underwriters may engage in transactions effected in accordance with Regulation M under the Exchange Act ("Regulation M") that are intended to stabilize, maintain or otherwise affect the price of the shares of our Class A common stock. The underwriters may engage in stabilizing transactions, short sales, syndicate covering transactions and penalty bids in accordance with Regulation M.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stabilizing transactions permit bids to purchase the underlying security so long as the stabilizing bids do not
exceed a specified maximum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A short position involves a sale by the underwriters of shares in excess of the number of shares the underwriters
are obligated to purchase in the offering, which creates the syndicate short position. This short position may be either a covered short position or a naked short position. In a covered short position, the number of shares involved in the sales made
by the underwriters in excess of the number of shares they are obligated to purchase is not greater than the number of shares that they may purchase by exercising their option to purchase additional shares. In a naked short position, the number of
shares involved is greater than the number of shares in their option to purchase additional shares. The underwriters may close out any short position by either exercising their option to purchase additional shares and/or purchasing shares in the
open market. In determining the source of shares to close out the short position, the underwriters will consider, among other things, the price of shares available for purchase in the open market as compared to the price at which they may purchase
shares through their option to purchase additional shares. A naked short position is more likely to be created if the underwriters are concerned that there could be downward pressure on the price of the shares in the open market after pricing that
could adversely affect investors who purchase in the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Syndicate covering transactions involve purchases of the Class A common stock in the open market after the
distribution has been completed in order to cover syndicate short positions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Penalty bids permit the representatives to reclaim a selling concession from a syndicate member when the Class A
common stock originally sold by the syndicate member is purchased in a stabilizing or syndicate covering transaction to cover syndicate short positions.

These stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of our Class A common stock or preventing or retarding a decline in the market price of the Class A common stock. As a result, the price of the Class A common stock may be higher than the price that might otherwise exist in the open market. These transactions may be effected on the or otherwise and, if commenced, may be discontinued at any time.

Neither we nor any of the underwriters make any representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of the Class A common stock. In addition, neither we nor any of the underwriters make any representation that the representatives will engage in these stabilizing transactions or that any transaction, once commenced, will not be discontinued without notice.

**Electronic Distribution** 

A prospectus in electronic format may be made available on the Internet sites or through other online services maintained by one or more of the underwriters and/or selling group members participating in this offering, or by their affiliates. In those cases, prospective investors may view offering terms online and, depending upon the particular underwriter or selling group member, prospective investors may be allowed to place orders online. The

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underwriters may agree with us to allocate a specific number of shares for sale to online brokerage account holders. Any such allocation for online distributions will be made by the representatives on the same basis as other allocations.

Other than the prospectus in electronic format, the information on any underwriter's or selling group member's web site and any information contained in any other web site maintained by an underwriter or selling group member is not part of the prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or any underwriter or selling group member in its capacity as underwriter or selling group member and should not be relied upon by investors.

**Listing** 

We intend to apply to list our shares of Class A common stock on the NYSE under the symbol "WHK."

**Stamp Taxes** 

If you purchase shares of Class A common stock offered in this prospectus, you may be required to pay stamp taxes and other charges under the laws and practices of the country of purchase, in addition to the offering price listed on the cover page of this prospectus.

**Other Relationships** 

The underwriters and certain of their affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage activities. The underwriters and certain of their affiliates have, from time to time, performed, and may in the future perform, various commercial and investment banking and financial advisory services for the issuer and its affiliates, for which they received or may in the future receive customary fees and expenses.

In the ordinary course of their various business activities, the underwriters and certain of their affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers, and such investment and securities activities may involve securities and/or instruments of the issuer or its affiliates. If the underwriters or their affiliates have a lending relationship with us, certain of those underwriters or their affiliates may hedge their credit exposure to us consistent with their customary risk management policies. Typically, the underwriters and their affiliates would hedge such exposure by entering into transactions that consist of either the purchase of credit default swaps or the creation of short positions in our securities or the securities of our affiliates, including potentially the shares of Class A common stock offered hereby. Any such credit default swaps or short positions could adversely affect future trading prices of the shares of Class A common stock offered hereby. The underwriters and certain of their affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

**Directed Share Program** 

At our request, the underwriters have reserved up to % of the Class A common stock being offered by this prospectus for sale at the initial public offering price to our directors, officers, employees and other individuals associated with us and members of their families. The sales will be made by Raymond James & Associates, Inc., an underwriter of this offering, through a directed share program. We do not know if these persons will choose to purchase all or any portion of these reserved shares, but any purchases they do make will reduce the number of shares available to the general public. Any reserved shares not so purchased will be offered

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by the underwriters to the general public on the same terms as the other shares of Class A common stock. Participants in the directed share program shall be subject to a three month lock-up with respect to any shares sold to them pursuant to that program. This lock-up will have similar restrictions and an identical extension provision to the lock-up restrictions described above. Any shares sold in the directed share program to our directors or executive officers shall be subject to the lock-up restrictions described above. We have agreed to indemnify the underwriters against certain liabilities and expenses, including liabilities under the Securities Act, in connection with the sales of the shares reserved for the directed share program.

**Selling Restrictions** 

Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

**European Economic Area and United Kingdom** 

In relation to each Member State of the European Economic Area and the United Kingdom (each, a "Relevant Member State"), no Class A common stock has been offered or will be offered pursuant to the offering to a public in that Relevant Member State prior to the publication of a prospectus in relation to the Class A common stock that has been approved by the competent authority in that Relevant Member State or, where appropriate, approved in another Relevant Member State and notified to the competent authority in that Relevant Member State, all in accordance with the Prospectus Regulation (as defined below), except that offers of shares may be made to the public in that Relevant Member State at any time under the following exemptions under the Prospectus Regulation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to legal entities that are qualified investors as defined under the Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• by the underwriters to fewer than 150 natural or legal persons (other than qualified investors as defined in the
Prospectus Regulation), subject to obtaining prior consent of each of the representatives of the underwriters for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in any other circumstances falling within Article 1(4) of the Prospectus Regulation,

provided that no such offer of Class A common stock shall result in a requirement for us or any underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation.

For the purposes of this provision, the expression "offer to the public" in relation to any shares in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares, and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129.

**United Kingdom** 

This prospectus has only been communicated or caused to have been communicated and will only be communicated or caused to be communicated as an invitation or inducement to engage in investment activity

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(within the meaning of Section 21 of the Financial Services and Markets Act of 2000 (the "FSMA")) as received in connection with the issue or sale of the Class A common stock in circumstances in which Section 21(1) of the FSMA does not apply to us. All applicable provisions of the FSMA will be complied with in respect to anything done in relation to the Class A common stock in, from or otherwise involving the United Kingdom.

**Canada** 

The securities may be sold only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the securities must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts ("NI 33-105"), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

**Notice to Prospective Investors in Switzerland** 

This prospectus does not constitute an issue prospectus pursuant to Article 652a or Article 1156 of the Swiss Code of Obligations and the securities will not be listed on the SIX Swiss Exchange. Therefore, this prospectus may not comply with the disclosure standards of the listing rules (including any additional listing rules or prospectus schemes) of the SIX Swiss Exchange. Accordingly, the securities may not be offered to the public in or from Switzerland, but only to a selected and limited circle of investors who do not subscribe to the securities with a view to distribution. Any such investors will be individually approached by the underwriters from time to time.

**Dubai International Financial Centre** 

This prospectus relates to an Exempt Offer in accordance with the Offered Securities Rules of the Dubai Financial Services Authority ("DFSA"). This prospectus is intended for distribution only to persons of a type specified in the Offered Securities Rules of the DFSA. It must not be delivered to, or relied on by, any other person. The DFSA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The DFSA has not approved this prospectus nor taken steps to verify the information set forth herein and has no responsibility for this prospectus. The securities to which this offering memorandum relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the securities offered should conduct their own due diligence on the securities. If you do not understand the contents of this prospectus, you should consult an authorized financial advisor.

**Hong Kong** 

The shares may not be offered or sold in Hong Kong by means of any document other than (i) in circumstances which do not constitute an offer to the public within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong) ("Companies (Winding Up and

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Miscellaneous Provisions) Ordinance") or which do not constitute an invitation to the public within the meaning of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) ("Securities and Futures Ordinance"), or (ii) to "professional investors" as defined in the Securities and Futures Ordinance and any rules made thereunder, or (iii) in other circumstances that do not result in the document being a "prospectus" as defined in the Companies (Winding Up and Miscellaneous Provisions) Ordinance, and no advertisement, invitation or document relating to the shares may be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to shares that are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" in Hong Kong as defined in the Securities and Futures Ordinance and any rules made thereunder.

**Singapore** 

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the shares may not be circulated or distributed, nor may the shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor (as defined under Section 4A of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA")) under Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA, in each case subject to conditions set forth in the SFA.

Where the shares are subscribed or purchased under Section 275 of the SFA by a relevant person that is a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor, the securities (as defined in Section 239(1) of the SFA) of that corporation shall not be transferable for six months after that corporation has acquired the shares under Section 275 of the SFA except: (i) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (ii) where such transfer arises from an offer in that corporation's securities pursuant to Section 275(1A) of the SFA, (iii) where no consideration is or will be given for the transfer, (iv) where the transfer is by operation of law, (v) as specified in Section 276(7) of the SFA, or (vi) as specified in Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and Debentures) Regulations 2005 of Singapore ("Regulation 32").

Where the shares are subscribed or purchased under Section 275 of the SFA by a relevant person that is a trust (where the trustee is not an accredited investor (as defined in Section 4A of the SFA)) whose sole purpose is to hold investments and each beneficiary of the trust is an accredited investor, the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferable for six months after that trust has acquired the shares under Section 275 of the SFA except: (i) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (ii) where such transfer arises from an offer that is made on terms that such rights or interest are acquired at a consideration of not less than $200,000 (or its equivalent in a foreign currency) for each transaction (whether such amount is to be paid for in cash or by exchange of securities or other assets), (iii) where no consideration is or will be given for the transfer, (iv) where the transfer is by operation of law, (v) as specified in Section 276(7) of the SFA, or (vi) as specified in Regulation 32.

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**Japan** 

The securities have not been and will not be registered under the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended) (the "FIEA"). The securities may not be offered or sold, directly or indirectly, in Japan or to or for the benefit of any resident of Japan (including any person resident in Japan or any corporation or other entity organized under the laws of Japan) or to others for reoffering or resale, directly or indirectly, in Japan or to or for the benefit of any resident of Japan, except pursuant to an exemption from the registration requirements of the FIEA and otherwise in compliance with any relevant laws and regulations of Japan.

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**LEGAL MATTERS** 

Latham & Watkins LLP has passed upon the validity of the Class A common stock offered hereby on behalf of us. Certain legal matters related to this offering will be passed upon for the underwriters by Vinson & Elkins L.L.P., Houston, Texas.

**EXPERTS** 

The consolidated financial statements of WhiteHawk Income Corporation as of December 31, 2025 and for the year then ended included in this prospectus have been audited by Baker Tilly US, LLP, an independent registered public accounting firm, as stated in their report, which is included herein. Such consolidated financial statements are included in reliance upon the report of such firm given their authority as experts in accounting and auditing.

The consolidated financial statements of WhiteHawk Income Corporation as of December 31, 2024 and for the year then ended included in this prospectus have been audited by Whitley Penn LLP, independent registered public accounting firm, as set forth in their report thereon appearing elsewhere herein, and are included in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

The financial statements of PHX Minerals Inc. at December 31, 2024 and 2023, and for each of the two years in the period ended December 31, 2024, appearing in this Prospectus and Registration Statement have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their report thereon appearing elsewhere herein, and are included in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

The carve-out financial statements of Three Rivers Royalty, LLC at December 31, 2024 and 2023, and for each of the two years ended December 31, 2024, appearing in this Prospectus and Registration Statement have been audited by Plante & Moran, PLLC, an independent auditor, as stated in their report, which report includes an emphasis of matter paragraph related to the carve-out basis of accounting. We have included the financials statements of Three Rivers Royalty, LLC in this prospectus and elsewhere in the registration statement in reliance on the report of Plante & Moran, PLLC, given on their authority as experts in accounting and auditing.

Estimates of our reserves and related future net cash flows related to our properties as of December 31, 2024 included herein and elsewhere in the registration statement were based upon the reserve report prepared by our independent petroleum engineer, Schaper Energy Consulting, LLC. We have included these estimates in reliance on the authority of such firm as an expert in such matters.

Estimates of PHX Minerals, Inc.'s reserves and related future net cash flows related to its properties as of December 31, 2024 included herein and elsewhere in the registration statement were based upon the reserve report prepared by PHX Minerals, Inc.'s independent petroleum engineer, Cawley, Gillespie and Associates, Inc. We have included these estimates in reliance on the authority of such firm as an expert in such matters.

Estimates of Three River Royalty, LLC's reserves and related future net cash flows related to its properties as of December 31, 2024 included herein and elsewhere in the registration statement were based upon the reserve report prepared by Three River Royalty, LLC's independent petroleum engineer, Ryder Scott Company, L.P. We have included these estimates in reliance on the authority of such firm as an expert in such matters.

Estimates of our reserves and related future net cash flows related to our properties as of December 31, 2025 included herein and elsewhere in the registration statement were based upon the reserve report prepared by our independent petroleum engineer, Cawley, Gillespie and Associates, Inc. We have included these estimates in reliance on the authority of such firm as an expert in such matters.

Information related to undeveloped locations as of December 31, 2025, included in this prospectus has been audited by Cawley, Gillespie and Associates, Inc. We have included this information in reliance on the authority of such firm as an expert in such matter.

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**CHANGE IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

On June 30, 2025, we notified Whitley Penn LLP ("WP"), which had served as our prior independent registered public accounting firm, of our intention to obtain proposals from other accounting firms to perform the audit of our consolidated financial statements as of and for the year ending December 31, 2025 (our "2025 Audit"). On July 1, 2025, we engaged Baker Tilly US, LLP ("BT") as our independent registered public accounting firm for our 2025 Audit, effective immediately. The decision to dismiss WP and engage BT was approved by our management but has not yet been approved by our board of directors. In connection with this offering, our board of directors will ratify the appointment of BT as our independent registered public accounting firm.

The reports of WP on our consolidated financial statements as of December 31, 2024, and for the years then ended, did not contain adverse opinions or disclaimers of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles.

During the year ended December 31, 2024 and the subsequent interim period through June 30, 2025, there were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no "disagreements" (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions
thereto) with WP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of WP, would have caused WP to make reference to the
subject matter of the disagreements in its report on our financial statements as of December 31, 2024 and 2023, and for the years then ended, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no "reportable events" (as defined in Item 304(a)(1)(v) of Regulation S-K and the related
instructions thereto).

We provided WP with a copy of the disclosure set forth in this section and requested that WP furnish us with a letter addressed to the SEC stating whether WP agrees with the statements made herein, each as required by applicable SEC rules. A copy of the letter, dated May 11, 2026, furnished by WP in response to that request, is filed as Exhibit 16.1 to the registration statement of which this prospectus is a part.

During the year ended December 31, 2024 and the subsequent interim period through June 30, 2025, when we engaged BT, we did not consult with BT with respect to (i) the application of accounting principles to a specified transaction, either completed or proposed, the type of audit opinion that might be rendered on our financial statements, and neither a written report nor oral advice was provided to us that BT concluded was an important factor considered by us in reaching a decision as to any accounting, auditing, or financial reporting issue, or (ii) any matter that was the subject of a "disagreement" or a "reportable event" (each as defined above).

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**WHERE YOU CAN FIND MORE INFORMATION** 

We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of our Class A common stock offered by this prospectus. For purposes of this section, the term registration statement means the original registration statement and any and all amendments including the schedules and exhibits to the original registration statement or any amendment. This prospectus, filed as part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules thereto as permitted by the rules and regulations of the SEC. For further information about us and our Class A common stock, you should refer to the registration statement, including its exhibits and schedules. This prospectus summarizes provisions that we consider material of certain contracts and other documents to which we refer you. Because the summaries may not contain all of the information that you may find important, you should review the full text of those documents.

This registration statement, including its exhibits and schedules, will be filed with the SEC. The SEC maintains a website at (http://www.sec.gov) from which interested persons can electronically access the registration statement, including the exhibits and schedules to the registration statement. We intend to furnish our stockholders with annual reports containing financial statements audited by our independent auditors.

Upon the closing of this offering, we will be required to file periodic reports, proxy statements, and other information with the SEC pursuant to the Exchange Act. These reports, proxy statements, and other information will be available on the website of the SEC referred to above. We also maintain a website at www.whitehawkenergy.com, through which you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. Information contained on, or that can be accessed through, our website or any subsection thereof is not a part of this prospectus and the inclusion of our website address in this prospectus is an inactive textual reference only.

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##### [**Table of Contents**](#toc)
**INDEX TO FINANCIAL STATEMENTS** 

---

| | |
|:---|:---|
|  | **Page** |
|  **WhiteHawk Income Corporation** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Audited Consolidated Financial Statements |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (PCAOB ID Number 23)](#fin86452_1) | F-3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (PCAOB ID Number 726)](#fin86452_1a) | F-4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Balance Sheets as of December 31, 2025 (restated) and 2024](#fin86452_2) | F-5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Operations for the years ended December 31, 2025 (restated) and 2024](#fin86452_3) | F-6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Mezzanine Equity and Shareholders' Equity as of December 31, 2025 (restated) and 2024](#fin86452_4) | F-7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Cash Flows for the years ended December 31, 2025 (restated) and 2024](#fin86452_5) | F-8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Consolidated Financial Statements](#fin86452_6) | F-9 |
|  **PHX Minerals, Inc.** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Audited Consolidated Financial Statements |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (PCAOB ID Number 42)](#fin86452_7) | F-39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Balance Sheets as of December 31, 2024 and 2023](#fin86452_8) | F-41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statements of Income for the years ended December 31, 2024 and 2023](#fin86452_9) | F-42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statements of Stockholders' Equity as of December 31, 2024 and 2023](#fin86452_10) | F-43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statements of Cash Flows for the years ended December 31, 2024 and 2023](#fin86452_11) | F-44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Financial Statements](#fin86452_12) | F-45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaudited Interim Condensed Financial Statements |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Balance Sheets as of March 31, 2025 and 2024](#fin86452_12a) | F-71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Statements of Income for the three months ended March 31, 2025 and 2024](#fin86452_12b) | F-72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Statements of Stockholders' Equity as of March 31, 2025 and 2024](#fin86452_12c) | F-73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Statements of Cash Flows for the three months ended March 31, 2025 and 2024](#fin86452_12d) | F-74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Financial Statements](#fin86452_12e) | F-75 |
|  **Three Rivers Royalty, LLC** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Audited Carve-Out Financial Statements |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (PCAOB ID Number 166)](#fin86452_13) | F-88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Balance Sheet as of December 31, 2024 and 2023](#fin86452_14) | F-90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statement of Operations for the years ended December 31, 2024 and 2023](#fin86452_15) | F-91 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statement of Changes in Member's Equity for the years ended December 31, 2024 and 2023](#fin86452_16) | F-92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statement of Cash Flows for the years ended December 31, 2024 and 2023](#fin86452_17) | F-93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Financial Statements](#fin86452_18) | F-94 |

---

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**WHITEHAWK INCOME CORPORATION** 

**CONSOLIDATED FINANCIAL STATEMENTS** 

**YEARS ENDED DECEMBER 31, 2025 AND 2024** 

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##### [**Table of Contents**](#toc)
**WHITEHAWK INCOME CORPORATION** 

**TABLE OF CONTENTS** 

**WHITEHAWK INCOME CORPORATION** 

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (Baker Tilly US, LLP, Dallas, Texas PCAOB ID:23)](#fin86452_1) | F-3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Report of Independent Registered Public Accounting Firm (Whitley Penn LLP, Houston, Texas, PCAOB ID:726)](#fin86452_1a) | F-4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Balance Sheets (as restated)](#fin86452_2) | F-5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Operations (as restated)](#fin86452_3) | F-6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Mezzanine Equity and Shareholders' Equity (as restated)](#fin86452_4) | F-7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Cash Flows (as restated)](#fin86452_5) | F-8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Consolidated Financial Statements](#fin86452_6) | F-9 |

---

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**Report of Independent Registered Public Accounting Firm** 

To the Shareholders and the Board of Directors of

WhiteHawk Income Corporation

**Opinion on the Financial Statements** 

We have audited the accompanying consolidated balance sheet of WhiteHawk Income Corporation (and subsidiaries) (the "Company") as of December 31, 2025, the related consolidated statements of operations, mezzanine equity and shareholders' equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2025, and the consolidated results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

**Restatement of Previously Issued Financial Statements** 

As discussed in Note 3, the Company has restated its 2025 consolidated financial statements for the correction of errors.

**Basis for Opinion** 

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ Baker Tilly US, LLP

Dallas, Texas

March 31, 2026, except for Note 3, as to which the date is May 6, 2026

We have served as the Company's auditor since 2025

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

To the Shareholders of

WhiteHawk Income Corporation and its subsidiaries:

**Opinion on the Financial Statements** 

We have audited the accompanying consolidated balance sheets of WhiteHawk Income Corporation and subsidiaries (the "Company") as of December 31, 2024, and the related consolidated statement of operations, statement of mezzanine equity and shareholders' equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of their operations and their cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provide a reasonable basis for our opinion.

**Critical Audit Matters** 

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

We have served as the Company's auditor since 2022.

/s/ Whitley Penn LLP

Houston, Texas 

March 31, 2025

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**WHITEHAWK INCOME CORPORATION** 

**CONSOLIDATED BALANCE SHEETS** 

**(In thousands, except par value and share amounts)** 

---

| | | |
|:---|:---|:---|
|  | **December 31,<br>2025** | **December 31,<br>2024** |
|  | **(As restated)** | |
|  **Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $28989 | $5330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 10176 | 4036 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term derivative asset | 5349 | 153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 1410 | 185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 45924 | 9704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas and oil mineral interests, net - successful efforts method | 460586 | 155084 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other property and equipment, net | 275 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 353 | 1132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $507138 | $165920 |
|  **Liabilities, mezzanine equity and shareholders' equity:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $1177 | $1274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 1158 | 1232 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued dividends | 7516 | 2399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior notes, current portion | 6275 | 6500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, current portion | 176 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 16302 | 11405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior notes, net of unamortized debt issuance costs | 227985 | 56284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability | 21329 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, net of current portion | 121 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term derivative liability | 4669 | 6439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligation | 316 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 270722 | 74128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and contingencies (See Note 14) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mezzanine equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series A Preferred stock, $0.0001 par value; 400,000 shares authorized; 0 and 19,000 issued and outstanding as of December 31, 2025 and December 31, 2024, respectively |  | 13308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B Preferred stock, $0.0001 par value; 400,000 shares authorized; 35,524 and 9,823 issued and outstanding as of December 31, 2025 and December 31, 2024, respectively | 27662 | 7917 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock, $0.0001 par value; 7,000,000 shares authorized; 6,518,383 and 2,635,050 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class T common stock, $0.0001 par value; 100,000 shares authorized; 66,830 and 38,094 issued and outstanding as of December 31, 2025 and December 31, 2024, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class I common stock, $0.0001 par value; 9,100,000 shares authorized; 8,050,883 and 1,917,690 issued and outstanding as of December 31, 2025 and December 31, 2024, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital | 223900 | 82128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (15146) | (11561) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity | 208754 | 70567 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities, mezzanine equity and shareholders' equity | $507138 | $165920 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**WHITEHAWK INCOME CORPORATION** 

**CONSOLIDATED STATEMENTS OF OPERATIONS** 

**(In thousands, except per share data)** 

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
|  | **(As restated)** | |
|  **Revenues:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty revenue | $50075 | $12702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on commodity derivative instruments | 16648 | (4418) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonus revenue | 872 | 1166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 67595 | 9450 |
|  **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 16585 | 2792 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 9966 | 4681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 24237 | 10827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 50788 | 18300 |
|  **Operating income (loss)** | 16807 | (8850) |
|  **Other expense:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | 3839 | 359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sale of assets | 123 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 19070 | 3939 |
|  **Income (loss) before income taxes** | (6225) | (13148) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) income taxes | (2640) | (1587) |
|  **Net income (loss)** | $(3585) | $(11561) |
|  **Earnings(loss) per common share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares - basic and diluted | $(1.30) | $(3.88) |
|  **Weighted average number of shares outstanding:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares - basic and diluted | 8378 | 4340 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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##### [**Table of Contents**](#toc)
**WHITEHAWK INCOME CORPORATION** 

**CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY** 

**(In thousands)** 

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Mezzanine Equity** | **Mezzanine Equity** | **Mezzanine Equity** | **Mezzanine Equity** | **Mezzanine Equity** | **Mezzanine Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** |
|  | **Series A<br>Preferred Stock** | **Series A<br>Preferred Stock** | **Series B<br>Preferred Stock** | **Series B<br>Preferred Stock** | **Series C<br>Preferred Stock** | **Series C<br>Preferred Stock** | **Class A<br>Common Stock** | **Class A<br>Common Stock** | **Class T<br>Common Stock** | **Class T<br>Common Stock** | **Class I<br>Common Stock** | **Class I<br>Common Stock** | **Additional<br>Paid In<br>Capital** | **Retained<br>Earnings<br>(Accumulated<br>Deficit) (As<br>restated)** | **Total<br>Shareholders'<br>Equity (As<br>restated)** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br>Paid In<br>Capital** | **Retained<br>Earnings<br>(Accumulated<br>Deficit) (As<br>restated)** | **Total<br>Shareholders'<br>Equity (As<br>restated)** |
|  **Balance at December 31, 2023** | 44 | $43217 |  | $— |  | $— | 2279 | $— | 38 | $— | 1836 | $— | $81193 | $— | $81193 |
|  Issuance of common stock |  |  |  |  |  |  | 375 |  |  |  | 82 |  | 11041 |  | 11041 |
|  Common stock redemption |  |  |  |  |  |  | (19) |  |  |  |  |  | (436) |  | (436) |
|  Issuance of Series B Preferred Stock |  |  | 10 | 9654 |  |  |  |  |  |  |  |  |  |  |  |
|  Redemption of Series A Preferred Stock | (25) | (25100) |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Equity issuance costs |  |  |  | (1182) |  |  |  |  |  |  |  |  | (1428) |  | (1428) |
|  Common stock dividends |  |  |  |  |  |  |  |  |  |  |  |  | (8242) |  | (8242) |
|  Preferred stock dividends |  | (4809) |  | (555) |  |  |  |  |  |  |  |  |  |  |  |
|  Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  | (11561) | (11561) |
|  **Balance at December 31, 2024** | 19 | $13308 | 10 | $7917 |  | $— | 2635 | $— | 38 | $— | 1918 | $— | $82128 | $(11561) | $70567 |
|  Issuance of common stock |  |  |  |  |  |  | 3894 |  | 29 |  | 6133 |  | 178162 |  | 178162 |
|  Common stock redemption |  |  |  |  |  |  | (11) |  |  |  |  |  | (267) |  | (267) |
|  Issuance of Preferred Stock |  |  | 25 | 24920 | 56 | 56000 |  |  |  |  |  |  |  |  |  |
|  Redemption of Preferred Stock | (19) | (12514) |  | (138) | (56) | (51520) |  |  |  |  |  |  | (10966) |  | (10966) |
|  Equity issuance costs |  |  |  | (2566) |  |  |  |  |  |  |  |  | (6968) |  | (6968) |
|  Common stock dividends |  |  |  |  |  |  |  |  |  |  |  |  | (18368) |  | (18368) |
|  Preferred stock dividends |  | (794) |  | (2471) |  | (4480) |  |  |  |  |  |  |  |  |  |
|  Stock based compensation |  |  |  |  |  |  |  |  |  |  |  |  | 179 |  | 179 |
|  Net loss (as restated) |  |  |  |  |  |  |  |  |  |  |  |  |  | (3585) | (3585) |
|  **Balance at December 31, 2025 (As restated)** |  | $— | 35 | $27662 |  | $— | 6518 | $— | 67 | $— | 8051 | $— | $223900 | $(15146) | $208754 |

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The accompanying notes are an integral part of these consolidated financial statements.

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**WHITEHAWK INCOME CORPORATION** 

**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**(In thousands)** 

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| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **December 31,<br>2025** | **December 31,<br>2024** |
|  | **(As restated)** | |
|  Cash flow from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $(3585) | $(11561) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (gain) loss on commodity derivative instruments | (8122) | 13134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 24237 | 10827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 179 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance costs | 744 | 316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | 3839 | 359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on the sale of assets | 123 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (3508) | (1587) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities (net of assets and liabilities acquired) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (562) | (1534) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 149 | (126) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 1319 | (1097) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | (836) | 327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities and other liabilities | (400) | 389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | 13577 | 9447 |
|  Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of oil and gas properties, net of post-close adjustments | (115342) | (30392) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of PHX, net of cash | (194616) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | (309958) | (30392) |
|  Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from Senior Notes | 186000 | 65000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of Senior Notes | (13300) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of Term Loan |  | (20000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred financing costs | (5807) | (2333) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the issuance of common stock, net | 169737 | 9613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the issuance of Series B preferred stock, net | 22354 | 8472 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the issuance of Series C preferred stock, net | 56000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock redemptions | (267) | (436) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series A Preferred Stock redemptions | (19000) | (25100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B Preferred Stock redemptions | (138) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series C Preferred Stock redemptions | (56000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to Series A Preferred Stock | (794) | (4809) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to Series B Preferred Stock | (1797) | (305) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to Series C Preferred Stock | (4480) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to common stock | (12468) | (8041) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | 320040 | 22061 |
|  Net increase (decrease) in cash and cash equivalents | 23659 | 1116 |
|  Cash and cash equivalents, beginning of period | 5330 | 4214 |
|  Cash and cash equivalents, end of period | $28989 | $5330 |
|  **Supplemental disclosure of cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest | $19117 | $3780 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for income taxes | $745 | $877 |
|  **Non-cash investing and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to common stock holders through common stock issuances pursuant to dividend reimbursement plan | $1457 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock dividend | $57100 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in dividends declared but not yet paid | $5148 | $451 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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##### [**Table of Contents**](#toc)
**WHITEHAWK INCOME CORPORATION** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**Note 1—Organization and Presentation** 

***Organization and Description of Business***

WhiteHawk was formed in February 2022 to acquire, own and manage mineral interests with the objective of generating cash flow from operations that can be distributed to shareholders as dividends and reinvested to expand our base of cash flow generating assets. WhiteHawk is governed by a board of directors (the "Board"). The Company's primary investment objective is to provide shareholders with current income with the potential for capital appreciation. The Company's primary business objective is to provide a return to investors by owning and acquiring mineral interests in natural gas resources across the U.S. and distributing a meaningful portion of our cash flow to investors as dividends.

In March 2025, the Company doubled its ownership interests in the natural gas mineral assets of Three Rivers Royalty, LLC (the "Seller") located in southwestern Pennsylvania by purchasing the remaining 50% undivided interest in the natural gas mineral assets of the Seller for $118.0 million ("Three Rivers Acquisition").

During 2024, the Company announced the acquisition of additional Marcellus Shale natural gas and royalty assets covering 435,000 gross unit acres across southwestern Pennsylvania and northern West Virginia ("Marcellus Acquisition") for $30.0 million.

*PHX Acquisition*

On June 23, 2025, following the completion of the previously announced tender offer, the Company completed the acquisition of PHX Minerals Inc. ("PHX") through a merger pursuant to the Agreement and Plan of Merger ("Merger Agreement"), dated May 8, 2025, by and among WhiteHawk Merger Sub, Inc., Whitehawk Acquisition, Inc. (" Merger Parent") and PHX ("PHX Merger"). Upon completion of the merger, PHX became a wholly owned subsidiary of Merger Parent, a wholly owned subsidiary of the Company. The Company acquired PHX in an all-cash transaction that valued PHX at $4.35 per share, or a total value of approximately $194.8 million, including PHX's net debt. Refer to "Note 4—PHX Merger" for further information.

**Note 2—Summary of Significant Accounting Policies** 

***Basis of Presentation***

The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles ("GAAP") in the U.S. and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). All intercompany balances and transactions are eliminated in consolidation.

***Principles of Consolidations***

These consolidated financial statements reflect the financial condition, results of operations, cash flows and changes in shareholders' equity of the Company and its consolidated subsidiaries, WhiteHawk Income Marcellus, LLC, WhiteHawk Income Haynesville, LLC, WhiteHawk Acquisition, Inc. and PHX Minerals Inc. for the periods presented. All intercompany balances and transactions are eliminated in consolidation.

***Cash and Cash Equivalents***

Cash and cash equivalents represent unrestricted cash on hand and include all highly liquid investments purchased with a maturity of three months or less and money market funds. The Company maintains cash and cash equivalents in bank deposit accounts which, at times, may exceed the federally insured limits. The Company has not experienced any significant losses from such investments.

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***Use of Estimates***

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities; disclosure of contingent assets and liabilities at the date of the financial statements; the reported amounts of revenues and expenses during the reporting periods; and the quantities and values of proved oil, natural gas and natural gas liquids ("NGL") reserves used in calculating depletion and assessing impairment of natural gas mineral properties. Actual results could differ significantly from these estimates. Significant estimates made by management include the quantities of proved oil, natural gas and NGLs reserves, related present value estimates of future net cash flows therefrom, the carrying value of natural gas mineral properties, and estimates of current and deferred income taxes. Other areas requiring estimation include valuation of commodity derivatives and our revenue accrual. While management believes these estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates and it is reasonably possible these estimates could be revised in the near term, and these revisions could be material.

***Accounts Receivable***

Accounts receivable represents amounts due to the Company, and are uncollateralized, consisting primarily of royalty revenue receivable. Royalty revenue receivable consists of royalties due from operators for oil, natural gas and NGL volumes sold to purchasers. Those purchasers remit payment for production to the operator of the properties and the operator, in turn, remits payment to the Company. Receivables from third parties for which we did not receive actual production information, either due to timing delays or due to the unavailability of data at the time when revenues are recognized, are estimated. The Company routinely reviews outstanding balances, assesses the financial strength of its operators and records a reserve for amounts not expected to be fully recovered, using a current expected credit loss model. The Company write off receivables when there is information that indicates the debtor is facing significant financial difficulty and there is no possibility of recovery. If any recoveries are made from any accounts previously written off, it will be recognized in income in the year of recovery, in accordance with the Company's accounting policy election. The Company did not record any credit losses for the years ended December 31, 2025, and 2024.

***Commodity Derivative Financial Instruments***

The Company's ongoing operations expose it to changes in the market price for natural gas minerals. To mitigate the price risk associated with its operations, the Company uses commodity derivative financial instruments. From time to time, such instruments may include variable-to-fixed-price swaps, costless collars, fixed-price contracts, and other contractual arrangements. The Company does not enter into derivative instruments for speculative purposes.

Derivative instruments are recognized at fair value. If a right of offset exists under master netting arrangements and certain other criteria are met, derivative assets and liabilities with the same counterparty are netted on the consolidated balance sheets. The Company does not specifically designate derivative instruments as fair value or cash flow derivatives, even though they reduce its exposure to changes in natural gas mineral prices; therefore, gains and losses arising from changes in the fair value of the derivative instruments are recognized in revenue on a net basis in the accompanying consolidated statements of operations within gain (loss) on commodity derivative instruments.

***Mineral Interests in Natural Gas Properties***

The Company follows the successful efforts method of accounting for natural gas mineral operations. Under this method, costs to acquire minerals and interests in natural gas mineral properties are capitalized when incurred. Acquisitions of interests of natural gas mineral properties are considered asset acquisitions and are recorded at cost.

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Acquisition costs of proven mineral interests are amortized using the units of production method over the life of the property, which is estimated using proven reserves. Acquisition costs of mineral interests on unproved properties, where there are no proven reserves, are not amortized. When the associated exploration stage interests are converted to proven reserves, the cost basis is amortized using the units of production methodology over the life of the property, using proven reserves. For purposes of amortization, interests in natural gas mineral properties are grouped in a reasonable aggregation of properties with common geological structural features or stratigraphic condition.

We review and evaluate our mineral interests in natural gas mineral properties for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Proved natural gas properties are reviewed for impairment when events and circumstances indicate a potential decline in the fair value of such properties below the carrying value, such as a downward revision of the reserve estimates or lower commodity prices. When such events or changes in circumstances occur, we estimate the undiscounted future cash flows expected in connection with the properties and compare such future cash flows to the carrying amounts of the properties to determine if the carrying amounts are recoverable. If the carrying value of the properties is determined to not be recoverable based on the undiscounted cash flows, an impairment charge is recognized by comparing the carrying value to the estimated fair value of the properties. The factors used to determine fair value include, but are not limited to, estimates of proved, probable and possible reserves, future commodity prices, the timing of future production and a discount rate commensurate with the risk reflective of the lives remaining for the respective natural gas properties. There was no such impairment of proved natural gas mineral properties for the years ended December 31, 2025, or 2024.

Unproved properties are also assessed for impairment periodically on a depletable unit basis when facts and circumstances indicate that the carrying value may not be recoverable, at which point an impairment loss is recognized to the extent the carrying value exceeds the estimated recoverable value. The carrying value of unproved properties, including unleased mineral rights, is determined based on management's assessment of fair value using factors similar to those previously noted for proved properties, as well as geographic and geologic data. There was no impairment of unproved properties for the years ended December 31, 2025, and 2024.

Upon the sale of a complete depletable unit, the book value thereof, less proceeds or salvage value, is charged to income. Upon the sale or retirement of an individual well, or an aggregation of interests which make up less than a complete depletable unit, the proceeds are credited to accumulated depletion, unless doing so would significantly alter the depletion rate of the depletable unit, in which case a gain or loss would be recorded.

***Fair Value of Financial Instruments***

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. Fair value measurements are derived using inputs and assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. GAAP establishes a valuation hierarchy for disclosure of the inputs used to measure fair value. This three-tier hierarchy classifies fair value amounts recognized or disclosed in the consolidated financial statements based on the observability of inputs used to estimate such fair values. The classification within the hierarchy of an asset or liability is determined based on the lowest level input that is significant to the fair value measurement. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). At each balance sheet reporting date, the Company categorizes its assets and liabilities recorded at fair value using this hierarchy.

The amounts reported in the balance sheet for cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate their fair value because of the short-term maturities of these instruments. The Company's commodity derivative instruments are classified within Level 2. The fair values of the Company's commodity derivative instruments are based upon inputs that are either readily available in the public market, such as natural gas futures prices, volatility factors and discount rates, or can be corroborated from active markets.

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Assets and liabilities accounted for at fair value on a non-recurring basis in accordance with Level 3 of the fair value hierarchy include the estimated impairment of oil and natural gas properties, if any, asset retirement obligations and the fair value of royalty interests acquired during each of the years ended December 31, 2025 and 2024.

***Debt Issuance Costs***

The Company accounts for the costs incurred in connection with borrowings under financing facilities as deferred and amortized over the life of the related financing on a straight-line basis which approximates the effective interest method. As of December 31, 2025 and 2024, the Company has deferred and capitalized costs associated with the Company's credit agreements of $3.4 million and $2.3 million, respectively. These deferred issuance costs will be amortized on a straight-line basis over the duration of the credit agreements. Debt issuance costs include origination, legal and other fees to obtain or issue debt. Debt issuance costs which are related to a debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability.

For the years ended December 31, 2025 and 2024, the Company amortized $0.7 million and $0.3 million, respectively, of deferred debt issuance costs in the accompanying consolidated statements of operations (see Note 8 – Debt).

***Leases***

The Company determines if an arrangement is a lease at inception by considering whether (1) explicitly or implicitly identified assets have been deployed in the agreement and (2) the Company obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the agreement. Operating leases are included in Other assets, and Operating lease liabilities in the consolidated balance sheets. As of December 31, 2025, and December 31, 2024, none of the Company's leases were classified as financing leases.

Right-of-use ("ROU") assets represent the Company's right to use an underlying asset for the lease term and operating lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets are recognized at commencement date and consist of the present value of remaining lease payments over the lease term, initial direct costs, prepaid lease payments less any lease incentives. Operating lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company uses the implicit rate, when readily determinable, or its incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments.

The lease terms may include periods covered by options to extend the lease when it is reasonably certain that the Company will exercise that option and periods covered by options to terminate the lease when it is not reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company made an accounting policy election to not recognize leases with terms of less than twelve months on the consolidated balance sheets and recognize those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. In the event that the Company's assumptions and expectations change, it may have to revise its ROU assets and operating lease liabilities.

***Revenue from Contracts with Customers***

The Company has the right to receive revenues from natural gas, oil and NGL sales obtained by the operator of the wells in which the Company owns a mineral or royalty interest. Revenue is recognized at the point control of the product is transferred to the purchaser. Virtually all of the pricing provisions in the Company's contracts are tied to a market index.

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The Company earns lease bonus income by leasing its mineral interests to exploration, development and production companies. The Company recognizes lease bonus income when a lease agreement has been executed and payment is determined to be collectible.

*Royalty Income from Oil, Natural Gas and Natural Gas Liquids Sales* 

The Company's oil, natural gas and NGL sales contracts are generally structured whereby the producer of the properties in which the Company owns a mineral or royalty interest sells the Partnership's proportionate share of oil, natural gas and NGL production to the purchaser and the Company collects its percentage royalty based on the revenue generated by the sale of the oil, natural gas and NGL. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the wellhead or at the gas processing facility based on the Company's percentage ownership share of the revenue, net of any deductions for gathering and transportation.

*Transaction Price Allocated to Remaining Performance Obligations* 

The Company's right to royalty income does not originate until production occurs and, therefore, is not considered to exist beyond each day's production. Therefore, there are no remaining performance obligations under any of the Company's royalty income contracts.

*Contract Balances* 

Under the Company's royalty income contracts, it generally has the right to receive its interest in the gross proceeds collected by the operator from third-party purchasers of the Company's production once production has occurred, at which point payment is unconditional. Accordingly, the Company's royalty income contracts do not give rise to contract assets or liabilities under Accounting Standards Codification 606.

*Prior-Period Performance Obligations* 

The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for certain oil, natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered. As a result, the Company is required to estimate the amount of royalty income to be received based upon the Company's royalty interest. The Company records the differences between its estimates and the actual amounts received for royalties in the month that payment is received from the operator. Any identified differences between its revenue estimates and actual revenue received historically have not been significant. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the royalties related to expected sales volumes and prices for those properties are estimated and recorded.

The disaggregated revenues from sales of natural gas, oil and NGLs for the years ended December 31, 2025 and 2024 were as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
|  | **2025** | **2024** |
|  Natural gas sales | $48720 | $13656 |
|  Oil sales | 5359 | 205 |
|  NGL sales | 4622 | 1896 |
|  Less deductions for gathering, transportation and other | (8626) | (3055) |
|  Total royalty revenues | $50075 | $12702 |

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Revenues from lease bonus payments are recorded upon receipt. The lease bonus is separate from the lease itself and is recognized as revenue to the Company upon receipt of payment. The Company generates lease bonus revenue by leasing its mineral interests to exploration and production companies and includes proceeds from assignments of leasehold interests where the Company retains an interest. A lease agreement represents the Company's contract with a lessee and generally transfers the rights to develop oil or natural gas, grants the Company a right to a specified royalty interest, and requires that drilling and completion operations commence within a specified time period. Upon signing a lease agreement, no further performance obligation exists for the Company, and therefore, no contract assets or contract liabilities are generated.

***Concentration of Revenue***

Collectability of the Company's royalty revenues is dependent upon the financial condition of the Company's operators, the entities they sell their products to, as well as general economic conditions of the industry. During the years ended December 31, 2025 and 2024, the following operators represented 10% or more of total revenues:

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
|  EQT Production Company | 33% | 50% |
|  Range Resources | 11% | 19% |
|  CNX Gas Company | 10% | 13% |
|  Total | 54% | 82% |

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Although the Company is exposed to a concentration of credit risk, the Company does not believe the loss of any single operator or entity would materially impact the Company's operating results as natural gas, crude oil and NGLs are fungible products with well-established markets and numerous purchasers. If multiple entities were to cease making purchases at or around the same time, we believe there would be challenges initially, but there would be ample markets to handle disruption.

***Income Taxes***

The Company under ASC 740 uses the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and (ii) operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized.

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at December 31, 2025. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

***Recent Accounting Pronouncements***

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures,* which requires disaggregated information related to the effective tax rate reconciliation as well

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as information on income taxes paid. This ASU is effective for annual periods beginning after December 15, 2025, and requires prospective application with the option to apply the standard retrospectively. We are currently evaluating the impact of the ASU on our disclosures.

In November 2024, the FASB issued ASU 2024-03, *Income Statement (Subtopic 220-40): Reporting Comprehensive Income - Expense Disaggregation Disclosures,* which requires disclosure of additional information about specific expense categories underlying certain income statement expense line items. This ASU is effective for annual periods beginning after December 15, 2026, and requires either prospective or retrospective application. We are currently evaluating the impact of the ASU on our disclosures.

**Note 3—Restatement of Financial Statements** 

Subsequent to the issuance of the WhiteHawk Income Corporation's (the "Company" or "WhiteHawk") consolidated financial statements as of December 31, 2025 and 2024 and for the years ended December 31, 2025 and 2024 originally dated March 31, 2026 ("Original Report"), the Company identified errors in the financial statements. The first error is related to the reconciliation of the intercompany and related party balances that occurred during the consolidation process (the "Management Fee Misstatement) which resulted in the erroneous recording of a portion of the Base Management Fee (defined below) in accounts receivable instead of management fees. The second error is related to pre-closing and post-effective date monies received related to the Three Rivers Acquisition (defined below) was erroneously recorded as revenue instead of a reduction in the purchase price (the "Three Rivers Acquisition Misstatement" and together the "Misstatements"). The Misstatements impacted the previously issued audited consolidated financial statements as of December 31, 2025 and for the year then ended (the "Restatement Period"). In accordance with ASC 250 – *Accounting Changes and Error Corrections*, and SEC Staff Accounting Bulletin ("SAB") No. 99 – *Materiality*, management concluded the error was material to Company's consolidated financial statements and required restatement of the consolidated financial statements for the Restatement Period (the "Restatement").

***Restatement Background***

While performing closing procedures for the first quarter of 2026, the Company identified the Misstatements. The correction of the Misstatements impacts the previously reported amounts of accounts receivable, other current assets, natural gas and oil mineral interests, royalty revenue, depletion, management fees, provision for income taxes, net loss, net loss per common share, and all related financial statement subtotals and totals.

***Impact of Restatement***

The following tables present the impact of the Restatement to the specific line items presented in the previously reported audited consolidated financial statements. The amounts labeled "As Previously Reported" were derived from the Original Report. The amounts labeled "Adjustments" represents the impact of correcting the Misstatements identified by the Company. The effects of the Restatement have been corrected in all impacted tables and footnotes throughout the Consolidated Financial Statements herein.

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**WhiteHawk Income Corporation** 

**Restated Consolidated Balance Sheet** 

(amounts in thousands, except for par value and share amounts)

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **As Previously Reported** | **Adjustments** | **As Restated** |
|  **Assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 12848 | (2672) | 10176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 1148 | 262 | 1410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 48334 | (2410) | 45924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas and oil mineral interests, net - successful efforts method | 461511 | (925) | 460586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $510473 | $(3335) | $507138 |
|  **Liabilities, mezzanine equity and shareholders' equity:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability | 22109 | (780) | 21329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 271502 | (780) | 270722 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (12591) | (2555) | (15146) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity | 211309 | (2555) | 208754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities, mezzanine equity and shareholders' equity | $510473 | $(3335) | $507138 |

---

**WhiteHawk Income Corporation** 

**Restated Consolidated Statements of Operations** 

(amounts in thousands, except per share amounts)

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
|  | **As Previously Reported** | **Adjustments** | **As Restated** |
|  **Revenues:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty revenue | $55691 | $(5616) | $50075 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 73211 | (5616) | 67595 |
|  **Operating expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 9274 | 692 | 9966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 26948 | (2711) | 24237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 52807 | (2019) | 50788 |
|  **Operating income (loss)** | 20404 | (3597) | 16807 |
|  **Income (loss) before income taxes** | (2628) | (3597) | (6225) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) income taxes | (1598) | (1042) | (2640) |
|  **Net income (loss)** | $(1030) | $(2555) | $(3585) |
|  **Earnings(loss) per common share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares - basic and diluted | $(1.00) | $(0.30) | $(1.30) |
|  **Weighted average number of shares outstanding:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares - basic and diluted | 8378 |  | 8378 |

---

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##### [**Table of Contents**](#toc)
**WhiteHawk Income Corporation** 

**Restated Consolidated Statement of Cash Flows** 

(amounts in thousands)

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **As Previously Reported** | **Adjustments** | **As Restated** |
|  Cash flow from operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $(1030) | $(2555) | $(3585) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depletion, depreciation and accretion | 26948 | (2711) | 24237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (2728) | (780) | (3508) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities (net of assets and liabilities acquired) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (3235) | 2673 | (562) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 411 | (262) | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | 17212 | (3635) | 13577 |
|  Cash flows from investing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of oil and gas properties, net of post-close adjustments | (118977) | 3635 | (115342) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | (313593) | 3635 | (309958) |
|  Cash flows from financing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | 320040 |  | 320040 |
|  Net increase (decrease) in cash and cash equivalents | 23659 |  | 23659 |
|  Cash and cash equivalents, beginning of period | 5330 |  | 5330 |
|  Cash and cash equivalents, end of period | $28989 | $— | $28989 |

---

**Note 4—PHX Merger** 

In June 2025, the Company completed the acquisition of certain natural gas and oil mineral interests in the Haynesville, SCOOP/STACK and other basins from PHX pursuant to the Merger Agreement. At closing, Merger Parent completed the acquisition of PHX in an all-cash transaction of approximately $194.8 million plus assumed liabilities whereby PHX became a wholly owned subsidiary of Merger Parent, a wholly owned subsidiary of WhiteHawk.

Under the terms of the Merger Agreement, at closing PHX stockholders received $4.35 in cash, net to the holder thereof, without interest thereon and subject to any applicable tax withholding, for each share of PHX common stock owned.

The PHX Merger was accounted for as a business combination using the acquisition method, and therefore, the acquired interests were recorded based on the fair value of the total assets acquired and liabilities assumed on the acquisition date. The Company completed the determination of the fair value attributable to the identifiable assets acquired and liabilities assumed based on the fair value at the acquisition date. The purchase price allocation was finalized during the year ended December 31, 2025.

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##### [**Table of Contents**](#toc)
The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed on June 23, 2025, including any measurement period adjustments (in thousands):

---

| | |
|:---|:---|
|  | **December 31,<br>2025** |
|  Assets acquired: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 5577 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 1374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas mineral interests, net | 214307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other property and equipment, net | 475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets acquired | $222420 |
|  Liabilities acquired: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $739 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, current portion | 257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term derivative liability | 598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, net of current portion | 317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligation | 302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability | 24837 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term derivative liability | 558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities assumed | $27657 |
|  Net assets acquired | $194763 |

---

Transaction costs associated with the PHX Merger incurred for the year ended December 31, 2025 was $7.4 million. These costs, which are comprised primarily of advisory, legal and other professional and consulting fees, are included in general and administrative expense on our consolidated statement of operations.

The results of PHX's operations have been included in our consolidated financial statements since the June 23, 2025 acquisition date. The amount of revenue and direct operating expense resulting from the acquisition included in our consolidated statement of operations from June 23, 2025 through December 31, 2025 was approximately $14.7 million and $1.2 million, respectively.

***Pro Forma Financial Information (unaudited)***

The unaudited pro forma information for the years ended December 31, 2025 and 2024, gives effect to the PHX Merger as if it had occurred on January 1, 2024 (in thousands, except per share amounts):

---

| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **December 31, 2025** | **December 31, 2024** |
|  Total revenues | $84153 | $44021 |
|  Pro forma net income (loss) | $2753 | $(9239) |
|  Net income (loss) per share: |  |  |
|  Basic and diluted | $(0.27) | $(3.34) |

---

The unaudited pro forma financial information is for informational purposes only and is not intended to represent or to be indicative of the combined results of operations that the Company would have reported had the PHX Merger been completed as of January 1, 2024 and should not be taken as indicative of the Company's future combined results of income. The actual results may differ significantly from that reflected in the unaudited pro forma financial information for a number of reasons, including, but not limited to, differences in assumptions used to prepare the unaudited pro forma financial information and actual results.

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##### [**Table of Contents**](#toc)
**Note 5—Commodity Derivative Financial Instruments** 

The Company's ongoing operations expose it to changes in the market price for natural gas assets. To mitigate the inherent commodity price risk associated with its operations, the Company periodically uses natural gas commodity derivative instruments. From time to time, such instruments may include variable-to-fixed-price swaps, costless collars, fixed-price contracts, and other contractual arrangements. The Company enters into natural gas derivative contracts that contain netting arrangements with each counterparty. The Company does not enter into derivative instruments for speculative purposes.

As of December 31, 2025, the Company's open derivative contracts consisted of fixed-price swap natural gas contracts and oil contracts as well as natural gas costless collar contracts. A fixed-price swap contract between the Company and a counterparty specifies a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume. A costless collar contract between the Company and the counterparty specifies a floor and a ceiling commodity price over a specified period for a contracted volume. The Company has not designated any of its contracts as fair value or cash flow derivatives. Accordingly, the changes in fair value of the contracts are included in the consolidated statements of operations in the period of the change. All derivative gains and losses from the Company's derivative contracts have been recognized in revenue in the Company's accompanying consolidated statements of operations. Derivative instruments that have not yet been settled in cash are reflected as either derivative assets or liabilities in the Company's accompanying consolidated balance sheets as of December 31, 2025 and 2024.

The Company's oil transactions are settled based upon the average daily prices for the calendar month of the contract period and its natural gas contracts are settled based upon the last day settlement of the first nearby month futures contract of the contract period. Settlement for oil derivative contracts occurs in the succeeding month and natural gas derivative contracts are settled in the production month.

The Company's derivative contracts expose it to credit risk in the event of nonperformance by counterparties that may adversely impact the fair value of the Company's commodity derivative assets. While the Company does not require contract counterparties to post collateral, the Company does evaluate the credit standing on each counterparty as deemed appropriate. The evaluation includes reviewing a counterparty's credit rating and latest financial information.

The Company utilizes the market approach in determining the fair value of its derivative positions by using either Henry Hub, Texas Eastern Transmission Company Market Zone 2 ("TETCO M2") or West Texas Intermediate ("WTI") published market prices, independent broker pricing data or broker/dealer valuations. Over-the-counter derivatives with Henry Hub, TETCO M2 or WTI based prices are considered Level 2 due to the impact of counterparty credit risk. The Company's derivatives are classified within Level 2.

The table below summarizes the fair values and classifications of the Company's derivative instruments as of December 31, 2025, and 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| <br>**Classification** | <br>**Balance Sheet Location** | **Gross Fair<br>Value** | **Effect of<br>Netting** | **Net Carrying<br>Value** |
|  **Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current asset | Other current assets | $9557 | $(4208) | $5349 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term asset | Other assets | 5990 | (5990) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets |  | $15547 | $(10198) | $5349 |
|  **Liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Current liability | Other current liabilities | $4208 | $(4208) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term liability | Other non-current liabilities | 10659 | (5990) | 4669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities |  | $14867 | $(10198) | $4669 |

---

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##### [**Table of Contents**](#toc)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| <br>**Classification** | <br>**Balance Sheet Location** | **Gross Fair<br>Value** | **Effect of<br>Netting** | **Net Carrying<br>Value** |
|  **Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current asset | Other current assets | $2080 | $(1927) | $153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term asset | Other assets | 1882 | (1882) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets |  | $3962 | $(3809) | $153 |
|  **Liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current liability | Other current liabilities | $1927 | $(1927) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term liability | Other non-current liabilities | 8321 | (1882) | 6439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities |  | $10248 | $(3809) | $6439 |

---

Changes in the fair values of the Company's derivative instruments are presented on a net basis in the accompanying consolidated statements of operations and consolidated statements of cash flows and consist of the following for the years ended December 31, 2025, and 2024 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended<br>December 31,** | **For the Year Ended<br>December 31,** |
|  | **2025** | **2024** |
|  Unrealized gain (loss) of open non-hedge derivative instruments | $8121 | $(13134) |
|  Realized gain (loss) on settlement of non-hedge derivative instruments | 8527 | 8716 |
|  Gain (loss) on commodity derivative instruments | $16648 | $(4418) |

---

The Company had the following open derivative contracts for as of December 31, 2025:

---

| | | |
|:---|:---|:---|
| **Period and Type of Contract** | **Volume<br>(MMBtu)** | **Weighted Average<br>Price<br>(Per MMBtu)** |
|  **Natural Gas Fixed Price Swaps:** |  |  |
| 2026 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 4428000 | $4.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 4920000 | $4.04 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 4896000 | $4.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 5379000 | $4.07 |
| 2027 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 5092000 | $3.99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 4938000 | $3.86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 4990000 | $3.86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 5025000 | $3.85 |
| 2028 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 4374000 | $3.76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 3157000 | $3.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 3164000 | $3.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 3149000 | $3.66 |
| 2029 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 2273000 | $3.64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 533000 | $3.38 |

---

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##### [**Table of Contents**](#toc)

---

| | | |
|:---|:---|:---|
| **Period and Type of Contract** | **Volume<br>(MMBtu)** |  |
|  **Natural Gas TETCO M2 Fixed Price Swaps:** |  |  |
| 2026 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 1959000 | $(0.45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 1958000 | $(0.81) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 1962000 | $(1.02) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 1979000 | $(1.04) |
| 2027 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 2035000 | $(0.48) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 1857000 | $(0.75) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 1872000 | $(0.99) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 1886000 | $(1.04) |
| 2028 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 1551000 | $(0.46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 667000 | $(0.70) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 667000 | $(0.98) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 675000 | $(0.94) |
| 2029 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 547000 | $(0.43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 291000 | $(0.61) |

---

---

| | | |
|:---|:---|:---|
| **Period and Type of Contract** | **Volume<br>(Bbls)** | **Weighted Average<br>Price<br>(Per MMBtu)** |
|  **WTI Fixed Price Swaps:** |  |  |
| 2026 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 21000 | $64.25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 20000 | $62.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 19000 | $60.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 17000 | $59.50 |
| 2027 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 16000 | $59.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 16000 | $59.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 15000 | $59.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fourth Quarter | 14000 | $59.50 |
| 2028 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 14000 | $59.50 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Period and Type of Contract** | **Volume (MMBtu)** | **Weighted Average<br>Floor Price (Per MMBtu)** | **Weighted Average<br>Ceiling Price (Per MMBtu)** |
|  **Natural Gas Collar Contracts:** |  |  |  |
| 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First Quarter | 720000 | $3.50 | $4.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Second Quarter | 225000 | $3.00 | $3.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Quarter | 300000 | $3.00 | $3.60 |

---

**Note 6—Fair Value Measurements** 

The Company's ongoing operations expose it to changes in the market price for natural gas minerals. To mitigate the price risk associated with its operations, the Company uses commodity derivative financial instruments. From time to time, such instruments may include variable-to-fixed-price swaps, costless collars, fixed-price contracts, and other contractual arrangements. The Company does not enter into derivative instruments for speculative purposes.

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##### [**Table of Contents**](#toc)
Derivative instruments are recognized at fair value. If a right of offset exists under master netting arrangements and certain other criteria are met, derivative assets and liabilities with the same counterparty are netted on the consolidated balance sheets. The Company does not specifically designate derivative instruments as fair value or cash flow derivatives, even though they reduce its exposure to changes in natural gas mineral prices; therefore, gains and losses arising from changes in the fair value of the derivative instruments are recognized on a net basis in the accompanying consolidated statements of operations within gain (loss) on commodity derivative instruments.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. Fair value measurements are derived using inputs and assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. GAAP establishes a valuation hierarchy for disclosure of the inputs used to measure fair value. This three-tier hierarchy classifies fair value amounts recognized or disclosed in the consolidated financial statements based on the observability of inputs used to estimate such fair values. The classification within the hierarchy of an asset or liability is determined based on the lowest level input that is significant to the fair value measurement. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). At each balance sheet reporting date, the Company categorizes its assets and liabilities recorded at fair value using this hierarchy.

The amounts reported in the balance sheet for cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate their fair value because of the short-term maturities of these instruments. The Company's commodity derivative instruments are classified within Level 2. The fair values of the Company's commodity derivative instruments are based upon inputs that are either readily available in the public market, such as natural gas futures prices, volatility factors and discount rates, or can be corroborated from active markets. The Company's asset retirement obligations are based upon significant unobservable, entity-specific data, such as the Company's own forecasts of future cash outflows for asset retirement and therefore are classified within Level 3.

Certain nonfinancial assets and liabilities, such as assets and liabilities acquired in a business combination, are measured at fair value on a nonrecurring basis on the acquisition date and are subject to fair value adjustments under certain circumstances. Inputs used to determine such fair values are primarily based upon internally developed engineering and geology models, publicly available drilling disclosures, a risk-adjusted discount rate, and publicly available data regarding mineral transactions consummated by other buyers and sellers (Level 3).

Mineral assets not acquired through a business combination are measured at fair value on a nonrecurring basis on the acquisition date. The original purchase price of mineral assets is allocated between proved and unproved properties based on the estimated relative fair values. Inputs used to determine such fair values are primarily based upon internally developed engineering and geology models, publicly available drilling disclosures, a risk-adjusted discount rate, and publicly available data regarding mineral transactions consummated by other buyers and sellers (Level 3).

The following table presents information about the Company's assets that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value as of December 31, 2025 and 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2025** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Derivative assets (liabilities) – current | $– $| 5349 | $– $| 5349 |
|  Derivative assets (liabilities) – long-term | – | (4669) | – | (4669) |
|  Total | $– $| 680 | $– $| 680 |

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##### [**Table of Contents**](#toc)

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| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2024** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Derivative assets (liabilities) – current | $– $| 153 | $– $| 153 |
|  Derivative assets (liabilities) – long-term | – | (6439) | – | (6439) |
|  Total | $– $| (6286) | $– $| (6286) |

---

**Note 7—Natural Gas Mineral Interests** 

The Company owns mineral rights across multiple on-shore basins in the United States. The following is a summary of natural gas and oil properties as of December 31, 2025, and 2024 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,<br>2025** | **December 31,<br>2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proved properties | $327342 | $110001 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unproved properties | 176240 | 63932 |
|  Natural gas and oil mineral interests, gross | $503582 | $173933 |
|  Accumulated depletion | (42996) | (18849) |
|  Natural gas and oil mineral interests, net | $460586 | $155084 |

---

**Note 8 – Debt** 

The Company's outstanding debt instruments as of December 31, 2025, and 2024, are as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Senior notes | $237700 | $65000 |
|  Less: current portion | 6275 | 6500 |
|  Less unamortized debt issuance costs | 3440 | 2216 |
|  Total long-term debt, net of unamortized debt issuance costs and current portion | $227985 | $56284 |

---

*Term Loan* 

On August 3, 2023, the Company entered into a term loan agreement that provides for a senior secured term acquisition facility with a maximum amount of $100 million (the "Term Loan"). The Term Loan bore interest on the total outstanding balance at 12% per annum payable quarterly in arrears and is secured by all of the existing and future assets of the Company. The Term Loan was set to mature on December 31, 2025, at which time the full outstanding amount would be payable.

During September 2024, the Company fully repaid the outstanding loan balance. Upon redemption of the Term Loan, the Company recognized a loss on extinguishment of debt of $0.4 million associated with unamortized discount and debt issuance costs.

*Senior Notes* 

On September 17, 2024, the Company issued and sold $65.0 million in senior secured first lien notes ("Senior Notes"). The Senior Notes bears interest on the total outstanding balance at Adjusted Term SOFR plus 6% per annum payable quarterly in arrears and is secured by all of the existing and future assets of the Company.

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The Senior Notes mature on September 17, 2029, at which time the remaining outstanding amount shall be payable. On March 31, 2025, the Company amended the Senior Notes to increase the amount outstanding to $151 million and extended the maturity date to March 31, 2030 ("First Amendment"). On June 23, 2025, the Company amended the Senior Notes to increase the amount outstanding to $251.0 million and extended the maturity date to June 23, 2030 ("Second Amendment"). For the year ended December 31, 2025, the Company recognized a loss on extinguishment of debt of $3.8 million associated with unamortized discount and debt issuance costs related to the original Senior Notes and First Amendment. For the year ended December 31, 2025, the weighted average interest rate related to our borrowings under the Senior Notes was 10.8%. The Senior Notes contain mandatory prepayments of $1.6 million paid in quarterly installments beginning in January 2025. The repayment amount was increased to $6.3 million as a part of the Second Amendment. The mandatory prepayments are subject to a Minimum Liquidity Amount restriction which requires quarterly analysis to determine if prepayment is required. The Senior Notes contain certain covenants pertaining to reporting and financial requirements, as well as negative and affirmative covenants. Proceeds from the Senior Notes were used to extinguish the Term Loan, reduce amounts due to the holders of our Series A Preferred Stock and fund the Marcellus Acquisition. Proceeds from the First Amendment were used to extinguish our Series A Preferred Stock and partially fund the Three Rivers Acquisition. Proceeds from the Second Amendment were used to partially fund the PHX Merger.

Obligations under the Senior Notes are guaranteed by the Company and each of its existing and future, direct and indirect domestic subsidiaries (the "Credit Parties") and are secured by all the present and future assets of the Credit Parties, subject to customary carve-outs.

The Senior Notes contains various affirmative, negative, and financial maintenance covenants. The Senior Notes also contains a minimum hedging covenant. These covenants, among other things, include restrictions on the Company's ability to incur additional indebtedness, acquire and sell assets, create liens, enter into certain lease agreements, make investments, make distributions, and require the maintenance of the financial ratios described below through the Fiscal Quarter ending December 31, 2025. The Company was in compliance with the terms and covenants of the Senior Notes at December 31, 2025.

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| | |
|:---|:---|
| **Financial Covenant** | **Required Ratio** |
| Ratio of Consolidated Total Net Leverage, as defined in the Senior Notes | Not greater than 4.0 to 1 |
| Ratio of Asset Coverage, as defined in the Senior Notes | Not less than 1.00 to 1.00 |

---

Commencing with the Fiscal Quarter ending March 31, 2026, the financial ratios are updated to the following:

---

| | |
|:---|:---|
| **Financial Covenant** | **Required Ratio** |
| Ratio of Consolidated Total Net Leverage, as defined in the Senior Notes | Not greater than 3.5 to 1 |
| Ratio of Asset Coverage, as defined in the Senior Notes | Not less than 1.00 to 1.00 |

---

Commencing with the Fiscal Quarter ending March 31, 2027, the financial ratios are updated to the following:

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| | |
|:---|:---|
| **Financial Covenant** | **Required Ratio** |
| Ratio of Consolidated Total Net Leverage, as defined in the Senior Notes | Not greater than 3.25 to 1 |
| Ratio of Asset Coverage, as defined in the Senior Notes | Not less than 1.10 to 1.00 |

---

For the years ended December 31, 2025 and 2024, the Company recognized $0.7 million and $0.1 million, respectively, of interest expense attributable to the amortization of debt issuance costs and debt discounts related to the Senior Notes.

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**Note 9—Preferred Stock** 

As of December 31, 2025 and 2024, there were 0 shares and 19,000 shares, respectively, of Series A preferred stock issued and outstanding. As of December 31, 2025 and 2024, there were 35,524 shares and 9,823 shares, respectively, of Series B Preferred Stock issued and outstanding. As of December 31, 2025 and 2024, there were 0 and 0 shares, respectively, of Series C preferred stock issued and outstanding. The Company is authorized to issue 400,000 shares of preferred stock with a par value of $0.0001 per share with such designation, rights and preferences described below.

*Series A Preferred Stock* 

In November 2023, the Company sold 44,100 shares of Series A Preferred Stock (the "Series A Preferred Stock") at a price of $1,000.00 per share, resulting in gross proceeds of $44.1 million. The Series A Preferred Stock shall, as to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, rank senior to each class or series of the Company's common stock. The holders of the Series A Preferred Stock shall have no voting rights on any matters which the Company's stockholders are entitled to vote except for consent for the Company to incur any new indebtedness or for the Company to create or issue any capital stock that ranks senior to the Series A Preferred Stock. Dividends on each share of Series A Preferred Stock shall accrue on a daily basis and be payable monthly in arrears at rate of 14% per year through November 13, 2024, and a rate of 18% per year subsequently. The Company has the right, but not the obligation, to redeem the Series A Preferred Stock, in whole or in part, from time to time, at a redemption price of $1,000 per share plus all accrued and unpaid dividends ("Redemption Price"). At the time of redemption, if the Redemption Price does not exceed a return of not less than 8% per Series A Preferred Share ("Minimum Return Payment"), the Company shall be required to pay an additional dividend to satisfy Minimum Return Payment. In the event that the Company has not redeemed all of the Series A Preferred Shares by November 13, 2025, the Company shall not declare, pay or set aside any dividends on shares of common stock. The Company incurred $0.1 million in expenses related to sale of Series A Preferred Stock which were deducted from the carrying value of the Series A Preferred Stock in the Consolidated Statements of Shareholders' Equity. The proceeds from the sale of the Series A Preferred Stock were used to purchase an additional 25% of the Marcellus Assets from the Seller. Since the Series A Preferred Stock agreement features certain redemption rights that are considered to be outside the Company's control and subject to the occurrence of uncertain future events, the Series A Preferred Stock will be presented as mezzanine equity outside of the shareholders' equity section of the Company's consolidated balance sheet. The Series A Preferred Stock meets the criteria of a participating security for purposes of calculating earnings per share (See Note 11—Earnings Per Share).

The table below summarizes the monthly dividends related to the Company's Series A Preferred Stock (in thousands, except annual dividend rate):

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| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock<br>Annual<br>Dividend<br>Rate** | **Total Cash<br>Dividend** |
|  March 31, 2025 | 18% | $249 |
|  February 28, 2025 | 18% | $255 |
|  January 31, 2025 | 18% | $290 |
|  December 31, 2024 | 18% | $290 |
|  November 30, 2024 | 18% | $269 |
|  October 31, 2024 | 14% | $237 |
|  September 30, 2024 | 14% | $316 |
|  August 31, 2024 | 14% | $403 |
|  July 31, 2024 | 14% | $434 |

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| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock<br>Annual<br>Dividend<br>Rate** | **Total Cash<br>Dividend** |
|  June 30, 2024 | 14% | $431 |
|  May 31, 2024 | 14% | $458 |
|  April 30, 2024 | 14% | $460 |
|  March 31, 2024 | 14% | $500 |
|  February 29, 2024 | 14% | $489 |
|  January 31, 2024 | 14% | $523 |

---

In March 2025, the Company's Series A Preferred Stock was extinguished with proceeds raised from the Company's Series C Preferred Stock (as defined below).

*Series B Preferred Stock* 

In February 2024, the Company authorized $50.0 million of its Series B 10% Redeemable Preferred Share class ("Series B Preferred Stock"). Through December 31, 2025, the Company has closed on approximately $22.3 million of net proceeds from the issuance of the Series B Preferred Stock. The Series B Preferred Stock shall, as to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, rank senior to each class or series of the Company's common stock. The holders of the Series B Preferred Stock shall have no voting rights. Dividends on each share of Series B Preferred Stock shall accrue on a daily basis and be payable monthly in arrears at rate of 10% per year. The Company has the right, but not the obligation, to redeem the Series B Preferred Stock, in whole or in part, from time to time, at a redemption price of $1,000 per share plus all accrued and unpaid dividends ("Redemption Price"). Through December 31, 2025, Company incurred $2.6 million in expenses related to sale of Series B Preferred Stock which were deducted from the carrying value of the Series B Preferred Stock in the Consolidated Statements of Shareholders' Equity. The net proceeds from issuance of the Series B Preferred Stock will be utilized to redeem the Company's Series A Preferred Stock. Since the Series B Preferred Stock agreement features certain redemption rights that are considered to be outside the Company's control and subject to the occurrence of uncertain future events, the Series B Preferred Stock will be presented as mezzanine equity outside of the shareholders' equity section of the Company's consolidated balance sheet. The Series B Preferred Stock meets the criteria of a participating security for purposes of calculating earnings per share (See Note 11—Earnings Per Share).

The table below summarizes the monthly dividends related to the Company's Series B Preferred Stock (in thousands, except annual dividend rate):

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| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock<br>Annual<br>Dividend<br>Rate** | **Total Cash<br>Dividend** |
|  December 31, 2025 | 10% | $282 |
|  November 30, 2025 | 10% | $256 |
|  October 31, 2025 | 10% | $231 |
|  September 30, 2025 | 10% | $201 |
|  August 31, 2025 | 10% | $179 |
|  July 31, 2025 | 10% | $159 |
|  June 30, 2025 | 10% | $150 |
|  May 31, 2025 | 10% | $138 |
|  April 30, 2025 | 10% | $125 |
|  March 31, 2025 | 10% | $111 |

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| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock<br>Annual<br>Dividend<br>Rate** | **Total Cash<br>Dividend** |
|  February 28, 2025 | 10% | $95 |
|  January 31, 2025 | 10% | $85 |
|  December 31, 2024 | 10% | $69 |
|  November 30, 2024 | 10% | $64 |
|  October 31, 2024 | 10% | $58 |
|  September 30, 2024 | 10% | $49 |
|  August 31, 2024 | 10% | $40 |
|  July 31, 2024 | 10% | $31 |
|  June 30, 2024 | 10% | $24 |
|  May 31, 2024 | 10% | $19 |
|  April 30, 2024 | 10% | $13 |
|  March 31, 2024 | 10% | $2 |

---

*Series C Preferred Stock* 

In March 2025, the Company sold 56,000 shares of Series C Preferred Stock (the "Series C Preferred Stock") at a price of $1,000.00 per share, resulting in gross proceeds of $56 million. The Series C Preferred Stock shall, as to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, rank senior to each class or series of the Company's common stock. The holders of the Series C Preferred Stock shall have no voting rights on any matters which the Company's stockholders are entitled to vote except for consent for the Company to incur any new indebtedness or for the Company to create or issue any capital stock that ranks senior to the Series C Preferred Stock. Dividends on each share of Series C Preferred Stock shall accrue on a daily basis and be payable monthly in arrears at rate of 14% per year through December 31, 2026, and a rate of 18% per year subsequently. The Company has the right, but not the obligation, to redeem the Series C Preferred Stock, in whole or in part, from time to time, at a redemption price of $1,000 per share plus all accrued and unpaid dividends ("Redemption Price – Series C"). At the time of redemption, if the Redemption Price – Series C does not exceed a return of not less than 8% per Series C Preferred Share ("Minimum Return Payment – Series C"), the Company shall be required to pay an additional dividend to satisfy Minimum Return Payment – Series C. In the event that the Company has not redeemed all of the Series C Preferred Shares by December 31, 2027, the Company shall not declare, pay or set aside any dividends on shares of common stock. The proceeds from the sale of the Series C Preferred Stock were used to purchase an additional 50% of the Marcellus Assets from the Seller. Since the Series C Preferred Stock agreement features certain redemption rights that are considered to be outside the Company's control and subject to the occurrence of uncertain future events, the Series C Preferred Stock will be presented as mezzanine equity outside of the shareholders' equity section of the Company's consolidated statement of changes in mezzanine equity and shareholders' equity. The Series C Preferred Stock meets the criteria of participating security for purposes of calculating earnings per share (See Note 11—Earnings Per Share).

The table below summarizes the monthly dividends related to the Company's Series C Preferred Stock (in thousands):

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| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock<br>Annual<br>Dividend<br>Rate** | **Total Cash<br>Dividend** |
|  December 31, 2025 | 14% | $526 |
|  November 30, 2025 | 14% | $193 |
|  October 31, 2025 | 14% | $200 |

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| | | |
|:---|:---|:---|
| **Month Ended** | **Preferred<br>Stock<br>Annual<br>Dividend<br>Rate** | **Total Cash<br>Dividend** |
|  September 30, 2025 | 14% | $322 |
|  August 31, 2025 | 14% | $533 |
|  July 31, 2025 | 14% | $666 |
|  June 30, 2025 | 14% | $644 |
|  May 31, 2025 | 14% | $666 |
|  April 30, 2025 | 14% | $644 |
|  March 31, 2025 | 14% | $86 |

---

In December 2025, the Company's Series C Preferred Stock was extinguished with proceeds raised from the Company's common stock.

**Note 10—Shareholders' Equity and Dividends** 

*Class A, T, and I Common Stock* – As of December 31, 2025, there were 6,518,383 shares of Class A Common Stock issued and outstanding, 66,830 shares of Class T Common Stock issued and outstanding, and 8,050,883 shares of Class I Common Stock issued and outstanding. Holders of the Company's Class A, T and I Common Stock are entitled to one vote for each share. The Company is authorized to issue 7,000,000 shares, 100,000 shares and 9,100,000 shares of Class A, T and I Common Stock, respectively, each with a par value of $0.0001 per share. The rights and privileges of the Class A,T and I Common Stock are the same, the primary difference between each class of common stock is selling commissions and placement agent fees.

***Cash Dividends***

The table below summarizes the monthly dividends related to the Company's common stock through December 31, 2025 (in thousands, except per share data):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Month Ended** | **Total<br>Monthly<br>Dividend<br>Per Common<br>Share** | **Total<br>Cash<br>Dividend** | **Payment Date** | **Stockholders<br>Record Date** |
|  December 31, 2025 | $0.1562 | $2286 | February 16, 2025 | January 1, 2026 |
|  November 30, 2025 | $0.1562 | $2034 | January 15, 2025 | December 1, 2025 |
|  October 31, 2025 | $0.1562 | $2019 | December 15, 2025 | November 3, 2025 |
|  September 30, 2025 | $0.1562 | $2004 | November 14, 2025 | October 2, 2025 |
|  August 31, 2025 | $0.1562 | $1670 | October 15, 2025 | September 2, 2025 |
|  July 31, 2025 | $0.1562 | $1557 | September 15, 2025 | August 1, 2025 |
|  June 30, 2025 | $0.1562 | $1447 | August 15, 2025 | July 1, 2025 |
|  May 31, 2025 | $0.1562 | $804 | July 15, 2025 | June 1, 2025 |
|  April 30, 2025 | $0.1562 | $766 | June 15, 2025 | May 1, 2025 |
|  March 31, 2025 | $0.1562 | $750 | May 15, 2025 | April 1, 2025 |
|  February 28, 2025 | $0.1562 | $731 | April 15, 2025 | March 1, 2025 |
|  January 31, 2025 | $0.1562 | $721 | March 15, 2025 | February 1, 2025 |
|  December 31, 2024 | $0.1562 | $717 | February 14, 2025 | January 1, 2025 |
|  November 30, 2024 | $0.1562 | $706 | January 15, 2025 | December 2, 2024 |
|  October 31, 2024 | $0.1562 | $699 | December 16, 2024 | November 1, 2024 |
|  September 30, 2024 | $0.1562 | $695 | November 15, 2024 | October 1, 2024 |
|  August 31, 2024 | $0.1562 | $691 | October 15, 2024 | September 2, 2024 |
|  July 31, 2024 | $0.1562 | $685 | September 16, 2024 | August 1, 2024 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Month Ended** | **Total<br>Monthly<br>Dividend<br>Per Common<br>Share** | **Total<br>Cash<br>Dividend** | **Payment Date** | **Stockholders<br>Record Date** |
|  June 30, 2024 | $0.1562 | $675 | August 15, 2024 | July 1, 2024 |
|  May 31, 2024 | $0.1562 | $670 | July 15, 2024 | June 3, 2024 |
|  April 30, 2024 | $0.1562 | $666 | June 14, 2024 | May 1, 2024 |
|  March 31, 2024 | $0.1562 | $660 | May 15, 2024 | April 1, 2024 |
|  February 29, 2024 | $0.1562 | $657 | April 15, 2024 | March 4, 2024 |
|  January 31, 2024 | $0.1562 | $653 | March 15, 2024 | February 2, 2024 |

---

On October 1, 2025, all record holders of WhiteHawk common stock as of September 30, 2025, received a stock dividend equivalent to one additional share for each ten shares currently held, calculated to the number of whole shares. On January 1, 2026, all record holders of WhiteHawk common stock as of December 31, 2025, received a stock dividend equivalent to one additional share for each ten shares currently held, calculated to the number of whole shares.

In connection with the 2025 stock dividends discussed above, the WHIC Manager (defined below) received 358,893 restricted shares related to its dividend incentive fee with a total value of $8.2 million. Fair value was determined using the offering price of the Series I Common Stock. The restricted shares issued to the WHIC Manager shall vest and cease to be restricted on the earlier of (i) the occurrence of a Company Liquidity Event and (ii) January 1, 2031. The dividend incentive fee will be accounted for as stock compensation expense on the Company's consolidated statement of operating income and cash flows over the vesting period. All share amounts shown in the Company's financial statements are presented pro forma for the stock dividend.

**Note 11—Earnings Per Share** 

Earnings per share is computed using the two-class method. The two-class method determines earnings per share of common stock and participating securities according to dividends or dividend equivalents and their respective participation rights in undistributed earnings. Participating securities represent preferred stock in which the holders have non-forfeitable rights to receive dividends.

The following table sets forth the calculation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data):

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| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
|  | **(As restated)** | |
|  **Numerator:** |  |  |
|  Net income (loss) - basic and diluted | $(3585) | $(11561) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Earnings allocated to participating securities | (7341) | (5266) |
|  Net income (loss) attributable to common stockholders - basic and diluted | $(10926) | $(16827) |
|  **Denominator:** |  |  |
|  Weighted average shares outstanding - basic and diluted | 8378 | 4340 |
|  Net income (loss) per common share - basic and diluted | $(1.30) | $(3.88) |

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The Company had the following shares that were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive for the periods presented but could potentially dilute basic earnings per share in future periods:

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| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
|  Series A Preferred Stock |  | 19000 |
|  Series B Preferred Stock | 35524 | 9823 |
|  Restricted stock | 358893 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 394417 | 28823 |

---

**Note 12—Income Taxes** 

The Company under ASC 740 uses the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and (ii) operating loss and other carryforwards. Deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized.

For the years ended December 31, 2025 and 2024, the Company recorded an income tax benefit of $2.6 million and $1.6 million, respectively.

As of December 31, 2025 and 2024, the Company had $21.3 million and $0.0 million, respectively, of net deferred tax liabilities net of valuation allowances. The Company acquired $24.8 million of net deferred tax liabilities as a part of the PHX Merger. These net deferred tax liabilities relate to natural gas assets and other temporary items where the tax basis differs from the GAAP carrying amounts.

As of December 31, 2025, the Company had $11.9 million in federal net operating loss carryforwards and $6.3 million in state net operating loss carryforwards for income tax purposes. The Company acquired all of the federal and state net operating loss carryforwards as part of the acquisition of PHX Minerals Inc. in 2025. As of the date of the financial statements, no limitations were identified that would limit the Company's ability to utilize the net operating losses in future years. In the event that the Company experiences another ownership change within the meaning of Section 382 of the Internal Revenue Code, our ability to utilize net operating losses and other tax attributes may be limited.

As of December 31, 2025, the Company determined it is more likely than not that it will realize our deferred tax assets, with the exception of a small valuation allowance on state net operating loss carryforwards that are expected to expire before utilization.

At December 31, 2025 and 2024, the Company had prepaid income taxes of $0.4 million and $0.1 million, respectively. The prepaid income taxes are included in other current assets on the consolidated balance sheets.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of December 31, 2025 and 2024. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

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The components of the provision for income taxes for the years ended December 31, 2025 and 2024 is as follows:

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| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,**  | **For the Year Ended December 31,**  |
|  | **2025** | **2024** |
|  | **(As restated)** | |
|  | **(in thousands)** | **(in thousands)** |
|  Current income tax provision: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | $470 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 398 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current income tax provision | 868 |  |
|  Deferred income tax provision: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | (3042) | (1069) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | (466) | (518) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred income tax provision (benefit) | (3508) | (1587) |
|  Total provision (benefit) for income taxes | $(2640) | $(1587) |

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| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2025** | **2024** |
|  | **(As restated)** | |
|  | **(in thousands, except effective tax rate)** | **(in thousands, except effective tax rate)** |
|  Income (loss) before income taxes | $(6225) | $(13148) |
|  Income taxes at U.S. statutory rate | (1307) | (2761) |
|  State taxes, net of federal benefit | 72 | (525) |
|  Federal and state valuation allowance | (1842) | 1853 |
|  Federal and state true-ups | 160 |  |
|  Non-deductible acquisition costs | 445 |  |
|  Percentage depletion | (144) |  |
|  Other | (24) | (154) |
|  Income tax provision expense (benefit) | (2640) | (1587) |
|  Effective tax rate | 42.4% | 12.1% |

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| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2025** | **2024** |
|  | **(As restated)** | |
|  | **(in thousands)** | **(in thousands)** |
|  Deferred tax assets: |  |  |
|  Unrealized (gain) loss on unrealized commodity derivatives | $— | $1539 |
|  Cost depletion |  | 312 |
|  Statutory depletion carryover | 606 |  |
|  Federal net operating loss carryforward | 2513 |  |
|  State net operating loss carryforward | 251 |  |
|  Interest expense limitation/carryover | 3357 |  |
|  Other | 197 | 2 |
|  Total deferred tax assets | 6924 | 1853 |

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| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2025** | **2024** |
|  | **(As restated)** | |
|  | **(in thousands)** | **(in thousands)** |
|  Deferred tax liabilities: |  |  |
|  Financial basis of natural gas and oil mineral interests in excess of tax basis | $27922 | $— |
|  Unrealized (gain) loss on commodity derivatives | 169 |  |
|  Other | 152 |  |
|  Total deferred tax liabilities | 28243 |  |
|  Valuation allowance | (10) | (1853) |
|  Net deferred tax assets (liabilities) | $(21329) | $— |

---

**Note 13—Related Party Transactions** 

*WhiteHawk Management* 

The Company is managed by WhiteHawk Minerals, LLC, a Delaware limited liability company (the "WHM"), along with its wholly-owned subsidiary, WhiteHawk Management, LLC (collectively, "WHIC Manager")

With the oversight of the Board, the WHIC Manager is responsible for the investment management function on behalf of WhiteHawk pursuant to the management agreement ("WHIC Management Agreement"). The WHIC Manager is responsible for managing the day-to-day operations of WhiteHawk, including investigating, analyzing, structuring, and negotiating potential investments, monitoring the performance of the assets, and making determinations.

The WHIC Management Agreement may be terminated at any time, without the payment of any penalty by either the Company or the WHIC Manager for "Cause" (as defined in the WHIC Management Agreement) upon thirty (30) days' prior written notice of the incident giving rise to the Cause and an opportunity to cure the Cause referenced in such notice prior to termination. The WHIC Management Agreement may be terminated at any time, without Cause and without the payment of any penalty: (i) by WhiteHawk upon sixty (60) days' prior written notice to the WHIC Manager; or (ii) by the WHIC Manager upon not less than one hundred and twenty (120) days' prior written notice to WhiteHawk.

Under the WHIC Management Agreement, WHIC Manager will earn a monthly asset management fee (the "Base Management Fee"), a dividend incentive fee (the "Dividend Incentive Fee"), and an incentive fee upon a Liquidity Event for the Company's assets (the "Liquidity Incentive Fee").

The Base Management Fee is calculated at an annual rate of one and one-half percent (1.5%) of WhiteHawk's total assets, which will initially be based on the total cost of all WhiteHawk's assets. The Base Management Fee is payable monthly in arrears and is calculated based on the arithmetic average value of our total assets as of the last day of (1) a calendar month and (2) the immediately preceding calendar month.

The Dividend Incentive Fee entitles the WHIC Manager to earn a fee of 12.5% of all distributions, including all dividends and dividend incentive fees, earned and/or paid out during a calendar month. If in any calendar month the WHIC Manager elects to defer receipt of its Dividend Incentive Fee to a future month (the "Manager Fee Deferral"), then the WHIC Manager will still earn its fee in any calendar month where dividends are paid to the shareholders. Any remaining cash flow of the Company after all base dividends, bonus dividends, and Dividend Incentive Fees have been paid in any given calendar month shall first be used to reimburse the WHIC Manager for any prior period cash flow needs that it has funded or Dividend Incentive Fees that it has earned but not yet been paid, and then shall be retained by WhiteHawk, to be used at the Company's discretion for additional investment purposes.

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The Liquidity Incentive Fee entitles the WHIC Manager to receive a portion of the proceeds from a WhiteHawk liquidity event after shareholders have received 100% of their initial invested capital plus a 7.5% annualized non-compounded return (the "Hurdle"). The WHIC Manager will receive 12.5% of all amounts above the Hurdle.

During the years ended December 31, 2025, and 2024, the Company paid $10.0 million and $4.7 million, respectively, to the WHIC Manager related to its Base Management Fee and Dividend Incentive Fee, respectively. This is recorded in the management fee expense on the consolidated statements of operations. In addition, the WHIC Manager received restricted stock with a fair value of $8.2 million during the year ended December 31, 2025. The restricted stock issued to the WHIC Manager shall vest and cease to be restricted on the earlier of (i) the occurrence of a Company Liquidity Event and (ii) January 1, 2031.

*Preferred Capital Securities* 

Jeff Smith, our President and director, is the chief executive officer and co-owner of Preferred Capital Securities, LLC ("PCS"). We entered into a dealer manager agreement, dated as of March 18, 2022 (the "Common Stock DMA"), with PCS. Pursuant to the Common Stock DMA, PCS agreed to act as our agent and exclusive distributor in connection with our continuing offer (the "Private Offering") to accredited investors of our Class A Common Stock, Class I Common Stock, and Class T Common Stock, pursuant to a confidential private placement memorandum (the "Memorandum"). Under the agreement, PCS has agreed to find, on a best efforts basis, purchasers for our Class A, Class I and Class T Common Stock for cash through broker-dealers or registered investment advisors, all of which are members of the Financial Industry Regulatory Authority, Inc. ("FINRA"), or registered as investment advisors with the SEC or state regulatory authorities, as appropriate.

Under the Common Stock DMA, PCS is entitled to a dealer manager fee of 2.5% of the price of Class A and Class T Common Stock sold in the Private Offering. In addition, we agreed to pay PCS a selling commission equal to 6.0% of the price of Class A Common Stock, and 4.0% of Class T Common Stock sold in the Private Offering. Additionally, a trail commission equal to 0.7% annually will be paid on Class T Common Stock subject to the restrictions and provisions as described in the Memorandum. For the years ended December 31, 2025 and 2024 we paid PCS $5.2 million and $0.7 million, respectively, in compensation for its services under the Dealer Manager Agreement.

We also entered into a dealer manager agreement, dated as of February 2, 2024 (the "Preferred Stock DMA" and, together with the Common Stock DMA, the "DMAs"), with PCS. Pursuant to the Preferred Stock DMA, PCS agreed to act as our agent and exclusive distributor in connection with the continuing Private Offering to accredited investors of shares of our Series B preferred common stock, $0.0001 par value (our "Series B Preferred Shares") pursuant to the Memorandum. Under the Preferred Stock DMA, PCS has agreed to find, on a best efforts basis, purchasers for our Series B Preferred Shares for cash through broker-dealers or registered investment advisors, all of which are members of FINRA or registered as investment advisors with the SEC or state regulatory authorities, as appropriate.

Under the Preferred Stock DMA, PCS is entitled to a dealer manager fee of up to 3.0% of the price per Series B Preferred Share sold in the Private Offering. In addition, we agreed to pay PCS a selling commission of up to 7.0% of the price per Series B Preferred Share sold in the Private Offering. For the years ended December 31, 2025 and 2024, we paid PCS $1.6 million and $0.8 million, respectively, in compensation for its services under the Preferred Stock DMA.

Pursuant to each DMA, no selling commissions or dealer manager fees will be paid in connection with the common stock or preferred stock, as applicable, sold to WhiteHawk Management, its management and their family members, employees and their family members and WhiteHawk Management's other affiliates. As president of WhiteHawk Management, Mr. Smith is not entitled to any selling commissions or dealer management fees under each DMA.

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*PhiCap Advisors LLC* 

PhiCap Advisors LLC ("PhiCap") provides leadership and capital solutions support to the Company through a consulting agreement. In addition, PhiCap owns approximately 20% of WhiteHawk Energy LLC ("WhiteHawk Energy"), which in turns owns 75% of WhiteHawk Minerals. For the year ended December 31, 2025, the Company paid PhiCap $1.3 million and $0.3 million, respectively, in consulting fees and reimbursements. During the year ended December 31, 2024, the Company paid $0.5 million and $0.1million, respectively in consulting fees and reimbursements. Approximately $0.1 million of the consulting fees paid to PhiCap are recorded in Additional Paid In Capital due to PhiCap's fund raising support and the remainder is recorded in general and administrative expense on the consolidated statement of operations.

*WhiteHawk Related Party Equity Transactions* 

Members and employees of the WHIC Manager contributed $2.6 million of the $44.1 million of the proceeds raised through the sale of the Series A Preferred Stock. Members of the WHIC Manager received dividends of less than $0.1 million and $0.3 million, respectively, during the years ended December 31, 2025, and 2024 from the Series A Preferred Stock.

Members and employees of the WHIC Manager contributed $2.6 million of the $56.0 million of the proceeds raised through the sale of the Series C Preferred Stock. Members of the WHIC Manager received dividends of $0.8 million and $0.0 million during the years ended December 31, 2025, and 2024 from the Series C Preferred Stock.

**Note 14—Commitments and Contingencies** 

From time to time, the Company may be involved in various legal proceedings, lawsuits, and other claims in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Management does not believe that the resolution of these matters will have a material adverse impact on our financial condition, cash flows or results of operations.

**Note 15—Segment** 

WhiteHawk's chief operating decision maker ("CODM") is the Chief Executive Officer ("CEO"). The CEO manages the business as a whole and assesses financial performance as a single enterprise and not on an area-by-area basis. Therefore, the Company identified one reportable segment: natural gas & oil minerals. The natural gas and oil minerals segment acquires, owns and manages high-quality mineral and royalty interests across premium basins in the United States and leases its mineral interests to E&P operators. These leases permit E&P operators to explore for and produce oil, natural gas and natural gas liquids from WhiteHawk's properties and entitle the Company to receive a percentage of the proceeds from the sales of these commodities. The accounting policies of the oil & natural gas minerals segment are the same as those described in the summary of significant accounting policies. The CODM uses net income from operations generated from segment assets in deciding whether to reinvest profits into the oil & natural gas minerals segment or into other parts of the entity, pay dividends to holders of our common and preferred stock, or make payments on our outstanding debt. The CODM assesses performance of the oil & natural gas minerals segment and decides how to allocate resources based on net income and net income from operations that is reported on the consolidated statements of operations. The measure of segment assets is reported on the consolidated balance sheets as total assets. The CODM evaluates significant expenses and assets based off the consolidated financial statements and does not further disaggregate expenses or assets in deciding how to allocate resources and assess performance. Since the Company operates as a single reporting segment, all required segment reporting disclosures can be found in the consolidated financial statements.

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**Note 16—Subsequent Events** 

The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the consolidated financial statements were issued.

*Dividends Declared* 

On August 13, 2025, the Company approved the following cash dividends:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Base Dividend of $0.1354 per share and Bonus dividend of $0.0208 per share for all I, A, & T-Shares outstanding as of December 1, 2025, payable on January 15, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Base Dividend of $0.1354 per share and Bonus dividend of $0.0208 per share for all I, A, & T-Shares outstanding as of January 2, 2026, payable on February 13, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Base Dividend of $0.1354 per share and Bonus dividend of $0.0208 per share for all I, A, & T-Shares outstanding as of February 2, 2026, payable on March 13, 2026;

On February 10, 2026, the Company approved the following cash dividends:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Base Dividend of $0.1354 per share and Bonus dividend of $0.0208 per share for all I, A, & T-Shares outstanding as of March 2, 2026, payable on April 15, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Base Dividend of $0.1354 per share and Bonus dividend of $0.0208 per share for all I, A, & T-Shares outstanding as of April 1, 2026, payable on May 15, 2026;

*Haynesville acquisition* 

In March 2026, the Company entered into a definitive purchase and sale agreement to acquire natural gas mineral and royalty interests primarily located in the Haynesville Shale in Louisiana and East Texas ("Haynesville Assets") for approximately $33.0 million. The transaction is expected to close in April 2026.

In March 2026, the Company authorized 37,780 shares of its Series D Preferred Stock (the "Series D Preferred Stock") at a price of $1,000.00 per share. Through the date the financial statements are available to be issued, the Company has closed on $36.3 million of gross proceeds from the issuance of the Series D Preferred Stock. The Company plans to use the proceeds raised with the Series D Preferred Stock to purchase the Haynesville Assets.

**Note 17—Supplemental Information on Natural gas mineral Operations (Unaudited)** 

The Company's natural gas mineral reserves are attributable solely to properties within the United States.

***Capitalized natural gas mineral costs***

Aggregate capitalized costs related to natural gas mineral production activities with applicable accumulated depreciation, depletion and amortization are as follows:

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| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** |
|  Proved royalty interest | $327342 | $110001 |
|  Unproved royalty interests | 176240 | 63932 |
|  Accumulated amortization | (42996) | (18849) |
|  Net royalty interests in oil and natural gas properties | $460586 | $155084 |

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***Costs incurred in natural gas mineral activities***

Costs incurred in natural gas mineral property acquisitions, exploration and development activities are as follows:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** |
|  Acquisition costs: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proved properties | $205108 | $17402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unproved properties | 124542 | 12990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $329650 | $30392 |

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***Results of operations from natural gas mineral producing activities***

The following table sets forth the revenues and expenses related to the production and sale of natural gas mineral. It does not include any interest costs or general and administrative costs and, therefore, is not necessarily indicative of the contribution to the net operating results of the Company's natural gas operations.

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| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** |
|  Royalty income | $50075 | $12702 |
|  Depletion | (24237) | (10827) |
|  Income tax (expense) benefit | 2640 | 1587 |
|  Results of operations from natural gas | $28478 | $3462 |

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***Natural gas mineral Reserves***

Proved natural gas reserve estimates as of December 31, 2025 were prepared by Cawley, Gillespie & Associates, Inc., independent petroleum engineers. Proved natural gas reserve estimates as of December 31, 2024, were prepared by Schaper Energy Consultants, independent petroleum engineers. Proved reserves were estimated in accordance with guidelines established by the SEC, which require that reserve estimates be prepared under existing economic and operating conditions based upon the 12-month unweighted average of the first-day-of-the-month prices.

There are numerous uncertainties inherent in estimating quantities of proved natural gas mineral reserves. Natural gas mineral reserve engineering is a subjective process of estimating underground accumulations of natural gas mineral that cannot be precisely measured and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of drilling, testing and production subsequent to the date of the estimate may justify revision of such estimate. Accordingly, reserve estimates are often different from the quantities of natural gas mineral that are ultimately recovered.

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The changes in estimated proved reserves are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Oil<br>(MBbls)** | **Natural Gas<br>(MMcf)** | **Natural Gas<br>Liquids<br>(MBbls)** | **Total<br>(MMcfe)** |
|  **Proved Developed and Undeveloped Reserves:** |  |  |  |  |
|  **As of December 31, 2023** | 18 | 62421 | 582 | 66013 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of reserves in place | 12 | 12023 | 416 | 14588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Extensions and discoveries | 11 | 5655 | 43 | 5975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revisions of previous estimates | 3 | 8991 | (89) | 8475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Production | (5) | (7371) | (75) | (7838) |
|  **As of December 31, 2024** | 39 | 81719 | 877 | 87213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of reserves in place | 1210 | 101193 | 2338 | 122484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Extensions and discoveries | 196 | 15454 | 286 | 18345 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revisions of previous estimates | 34 | (4400) | 167 | (3191) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Production | (88) | (16586) | (210) | (18378) |
|  **As of December 31, 2025** | 1391 | 177380 | 3458 | 206473 |
|  **Proved Developed Reserves** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2024 | 23 | 65252 | 701 | 69594 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2025 | 1356 | 173231 | 3373 | 201609 |
|  **Proved Undeveloped Reserves:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2024 | 16 | 16469 | 176 | 17619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2025 | 35 | 4149 | 84 | 4864 |

---

Revisions of previous estimates represent changes, either increases or decreases, to prior reserve estimates resulting from new information, which is typically obtained through development drilling and production performance, or from changes in economic factors, including commodity prices, operating expenses, and development costs.

For the year ended December 31, 2025, the Company recognized negative revisions of previous estimates of 3,191 Mmcfe, primarily attributable to changes in development timing. Total extensions of 18,345 Mmcfe during the year were primarily attributable to the drilling of 221 wells and the permitting of 95 wells. Purchases of reserves in place of 122,484 Mmcfe were primarily attributable to the PHX Merger and an additional acquisition in the Marcellus Shale.

During the year ended December 31, 2024, the Company's positive revisions of previous estimates of 8,475 Mmcfe resulted primarily from a change in development timing. The company's total extensions of 5,975 Mmcfe resulted primarily from the drilling of 183 wells. The purchase of reserves in place of 14,588 Mmcfe was due to an acquisition in the Marcellus Shale.

***Standardized Measure of Discounted Cash Flows***

The standardized measure of discounted future net cash flows are based on the unweighted average, first-day-of-the-month price. The projections should not be viewed as realistic estimates of future cash flows, nor should the "standardized measure" be interpreted as representing current value to the Company. Material revisions to estimates of proved reserves may occur in the future; development and production of the reserves may not occur in the periods assumed; actual prices realized are expected to vary significantly from those used; and actual costs may vary.

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The following table sets forth the standardized measure of discounted future net cash flows attributable to the Company's proved natural gas mineral reserves as of December 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** |
|  Future cash inflows | $700567 | $171733 |
|  Future production costs | (109293) | (22608) |
|  Future development costs (capital costs) | (1271) |  |
|  Future income tax expense | (56289) | (24246) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Future net cash flows | 533714 | 124879 |
|  10% discount to reflect timing of cash flows | (267388) | (62946) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Standardized measure of discounted cash flows | $266326 | $61933 |

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In the table below the average first-day-of–the-month price for oil, natural gas and natural gas liquids is presented, all utilized in the computation of future cash inflows:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | Unweighted Arithmetic Average<br>First-Day-of-the-Month Prices | Unweighted Arithmetic Average<br>First-Day-of-the-Month Prices |
|  Oil (per Bbl) | $65.34 | $75.48 |
|  Natural gas (per Mcf) | $3.39 | $2.13 |
|  Natural gas liquids (per Bbl) | $25.48 | $29.44 |

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Principal changes in the standardized measure of discounted future net cash flows attributable to the Company's proved reserves are as follows:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** |
|  Standardized measure of discounted future net cash flows at the beginning of the period | $61933 | $50663 |
|  Net changes in prices and production costs | 44893 | (2491) |
|  Purchase of minerals in place | 195062 | 12081 |
|  Extension and discoveries | 34223 | 4951 |
|  Revisions of previous quantity estimates | (2640) | 7017 |
|  Natural gas and oil produced during the period | (50075) | (12702) |
|  Accretion of discount | 7215 | 5684 |
|  Net changes in income taxes | (17143) | (3301) |
|  Net changes in timing of production and other | (7142) | 31 |
|  Standardized measure of discounted future net cash flows at the end of the period | $266326 | $61933 |

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**Report of Independent Registered Public Accounting Firm** 

To the Stockholders and the Board of Directors of PHX Minerals Inc.

**Opinion on the Financial Statements** 

We have audited the accompanying balance sheets of PHX Minerals Inc. (the Company) as of December 31, 2024 and 2023, the related statements of income, stockholders' equity and cash flows for each of the two years in the period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matter** 

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

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| | |
|:---|:---|
|  | ***Depreciation, Depletion and Amortization of Producing Natural Gas and Oil Working Interest and Overriding Royalty Interest Properties*** |
| *Description of the Matter* | At December 31, 2024, the cost basis of the Company's natural gas and oil properties was $274.9 million, and depreciation, depletion and amortization ("DD&A") expense was $9.6 million for the year then ended. As discussed in Note 1, the Company follows the successful efforts method of accounting for its natural gas and oil producing activities. Depreciation, depletion and amortization of natural gas and oil properties is generally computed using the unit-of-production method primarily on an individual property basis using proved or proved developed reserves, as applicable, as estimated by the Company's Independent Consulting Petroleum Engineer. The |

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| | |
|:---|:---|
|  | Company's Independent Consulting Petroleum Engineer, with assistance from the Company, prepares estimates of natural gas, crude oil and NGL reserves using standard geological and engineering methods generally recognized in the petroleum industry based on evaluations of in-place hydrocarbon volumes using financial and non-financial inputs.<br> Subjective judgment is required by the Independent Consulting Petroleum Engineer in evaluating data used to estimate natural gas, oil and NGL reserves. Estimating reserves requires the selection of inputs, including historical production, price assumptions, and future operating costs, among others. Auditing the Company's working interest and overriding royalty interest properties unit-of-production DD&A calculations is subjective because of the use of the work of the Independent Consulting Petroleum Engineer and the determination of the inputs described above used by the engineers in estimating proved natural gas, oil and NGL reserves. |
| *How We Addressed the Matter in Our Audit* | Our audit procedures included, among others, evaluating the professional qualifications and objectivity of the Independent Consulting Petroleum Engineer used to prepare the proved natural gas, oil and NGL reserve estimates. In assessing whether we can use the work of the Independent Consulting Petroleum Engineers, we evaluated the completeness and accuracy of the financial and non-financial data described above used by the engineers in estimating proved natural gas, oil and NGL reserves by agreeing them to source documentation. In addition, we assessed the inputs for reasonableness based on our review of corroborative evidence and consideration of any contrary evidence. We also tested the mathematical accuracy of the DD&A calculations, including comparing the proved natural gas, oil and NGL reserve amounts used in the calculations to the Company's reserve report. |

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/s/ Ernst & Young LLP

We have served as the Company's auditor since 1989.

Oklahoma City, Oklahoma

March 12, 2025

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PHX Minerals Inc.

Balance Sheets

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
|  **Assets** |  |  |
|  Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $2242102 | $806254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas, oil and NGL sales receivables (net of $0 allowance for uncollectable accounts) | 6128954 | 4900126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refundable income taxes | 328560 | 455931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative contracts, net |  | 3120607 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 857317 | 878659 |
|  Total current assets | 9556933 | 10161577 |
|  Properties and equipment at cost, based on successful efforts accounting: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Producing natural gas and oil properties | 223043942 | 209082847 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-producing natural gas and oil properties | 51806911 | 58820445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 1361064 | 1360614 |
|  | 276211917 | 269263906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less accumulated depreciation, depletion and amortization | (122835668) | (114139423) |
|  Net properties and equipment | 153376249 | 155124483 |
|  Derivative contracts, net |  | 162980 |
|  Operating lease right-of-use assets | 429494 | 572610 |
|  Other, net | 553090 | 486630 |
|  Total assets | $163915766 | $166508280 |
|  **Liabilities and Stockholders' Equity** |  |  |
|  Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $804693 | $562607 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative contracts, net | 316336 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of operating lease liability | 247786 | 233390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities and other | 1866930 | 1215275 |
|  Total current liabilities | 3235745 | 2011272 |
|  Long-term debt | 29500000 | 32750000 |
|  Deferred income taxes | 7286315 | 6757637 |
|  Asset retirement obligations | 1097750 | 1062139 |
|  Derivative contracts, net | 398072 |  |
|  Operating lease liability, net of current portion | 448031 | 695818 |
|  Total liabilities | 41965913 | 43276866 |
|  Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Voting common stock, par value $0.01666 per share: 75,000,000 shares authorized and 36,796,496 shares issued and outstanding at December 31, 2024; 54,000,500 shares authorized and 36,121,723 shares issued and outstanding at December 31, 2023 | 613030 | 601788 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital in excess of par value | 44029492 | 41676417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred directors' compensation | 1323760 | 1487590 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 77073332 | 80022839 |
|  | 123039614 | 123788634 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury stock, at cost: 279,594 shares at December 31, 2024; 131,477 shares at December 31, 2023 | (1089761) | (557220) |
|  Total stockholders' equity | 121949853 | 123231414 |
|  Total liabilities and stockholders' equity | $163915766 | $166508280 |

---

*See accompanying notes.* 

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PHX Minerals Inc.

Statements of Income

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Revenues: |  |  |
|  Natural gas, oil and NGL sales | $33690652 | $36536285 |
|  Lease bonuses and rental income | 580804 | 1068022 |
|  Gains (losses) on derivative contracts (Note 12) | 299608 | 6859589 |
|  | 34571064 | 44463896 |
|  Costs and expenses: |  |  |
|  Lease operating expenses | 1228813 | 1598944 |
|  Transportation, gathering and marketing | 4513381 | 3674832 |
|  Production and ad valorem taxes | 1703305 | 1881737 |
|  Depreciation, depletion and amortization | 9606444 | 8566185 |
|  Provision for impairment | 52673 | 38533 |
|  Interest expense | 2563268 | 2362393 |
|  General and administrative | 11670328 | 11970182 |
|  Losses (gains) on asset sales and other | 83799 | (4285170) |
|  | 31422011 | 25807636 |
|  Income before provision for income taxes | 3149053 | 18656260 |
|  Provision for income taxes | 827187 | 4735460 |
|  Net income | $2321866 | $13920800 |
|  Basic and diluted earnings (loss) per common share (Note 7) | $0.06 | $0.39 |
|  Weighted average shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 36329735 | 35980309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 36412270 | 35980309 |
|  Dividends per share of common stock paid in period | $0.1400 | $0.0975 |

---

*See accompanying notes.* 

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PHX Minerals Inc.

Statements of Stockholders' Equity

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Voting<br>Common Stock | Voting<br>Common Stock | Capital in<br>Excess of Par<br>Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  | Shares | Amount | Capital in<br>Excess of Par<br>Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  Balances at December 31, 2022 | 35938206 | $598731 | $43344916 | $1541070 | $68925774 | (300272) | $(4307365) | $110103126 |
|  Net income (loss) |  |  |  |  | 13920800 |  |  | 13920800 |
|  Purchase of treasury stock |  |  |  |  |  | (120939) | (402704) | (402704) |
|  Restricted stock awards expense |  |  | 2205910 |  |  |  |  | 2205910 |
|  Dividends declared |  |  |  |  | (2823735) |  |  | (2823735) |
|  Distribution of restricted stock to officers and directors | 183517 | 3057 | (3850079) |  |  | 268422 | 3847022 |  |
|  Distribution of deferred directors' compensation |  |  | (24330) | (281497) |  | 21312 | 305827 |  |
|  Increase in deferred directors' compensation charged to expense |  |  |  | 228017 |  |  |  | 228017 |
|  Balances at December 31, 2023 | 36121723 | $601788 | $41676417 | $1487590 | $80022839 | (131477) | $(557220) | $123231414 |
|  Net income (loss) |  |  |  |  | 2321866 |  |  | 2321866 |
|  Purchase of treasury stock |  |  |  |  |  | (212391) | (805063) | (805063) |
|  Restricted stock awards expense |  |  | 2287927 |  |  |  |  | 2287927 |
|  Dividends declared |  |  |  |  | (5271373) |  |  | (5271373) |
|  Distribution of restricted stock to officers and directors | 674773 | 11242 | (11242) |  |  |  |  |  |
|  Distribution of deferred directors' compensation |  |  | 76390 | (348912) |  | 64274 | 272522 |  |
|  Increase in deferred directors' compensation charged to expense |  |  |  | 185082 |  |  |  | 185082 |
|  Balances at December 31, 2024 | 36796496 | $613030 | $44029492 | $1323760 | $77073332 | (279594) | $(1089761) | $121949853 |

---

*See accompanying notes.* 

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PHX Minerals Inc.

Statements of Cash Flows

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  **Operating Activities** |  |  |
|  Net income | $2321866 | $13920800 |
|  Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion and amortization | 9606444 | 8566185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment of producing properties | 52673 | 38533 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for deferred income taxes | 528678 | 4303731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain from leasing fee mineral acreage | (580805) | (1067992) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from leasing fee mineral acreage | 597389 | 1213913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (gain) loss on sales of assets | (518816) | (4728758) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Directors' deferred compensation expense | 185082 | 228017 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total (gain) loss on derivative contracts | (299608) | (6859589) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash receipts (payments) on settled derivative contracts | 4297603 | 2743475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stock award expense | 2287927 | 2205910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 98104 | 136412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash provided (used) by changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas, oil and NGL sales receivables | (1228828) | 4883870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes receivable | 127371 | (455931) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | (3064) | (45869) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 252386 | 69228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-current assets | (22985) | 206292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes payable |  | (576427) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 376436 | (610661) |
|  Total adjustments | 15755987 | 10250339 |
|  Net cash provided by operating activities | 18077853 | 24171139 |
|  **Investing Activities** |  |  |
|  Capital expenditures | $(87579) | $(325983) |
|  Acquisition of minerals and overriding royalty interests | (7796983) | (29735516) |
|  Net proceeds from sales of assets | 527167 | 9614194 |
|  Net cash provided by (used in) investing activities | (7357395) | (20447305) |
|  **Financing Activities** |  |  |
|  Borrowings under Credit Facility | 3000000 | 19500000 |
|  Payments of loan principal | (6250000) | (20050000) |
|  Payments on off-market derivative contracts |  | (560162) |
|  Purchases of treasury stock | (805063) | (402704) |
|  Payments of dividends | (5229547) | (3520366) |
|  Net cash provided by (used in) financing activities | (9284610) | (5033232) |
|  Increase (decrease) in cash and cash equivalents | 1435848 | (1309398) |
|  Cash and cash equivalents at beginning of period | 806254 | 2115652 |
|  Cash and cash equivalents at end of period | $2242102 | $806254 |
|  **Supplemental Disclosures of Cash Flow Information** |  |  |
|  Interest paid (net of capitalized interest) | $2611089 | $2405361 |
|  Income taxes paid (net of refunds received) | $318789 | $1464087 |
|  **Supplemental schedule of noncash investing and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends declared and unpaid | $155271 | $113443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross additions to properties and equipment | $7893036 | $30761578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (increase) decrease in accounts receivable for properties and equipment additions | (8474) | (700079) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures and acquisitions | $7884562 | $30061499 |

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PHX Minerals Inc.

Notes to Financial Statements

<u>1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</u> 

**Nature of Business** 

The Company's principal line of business is maximizing the value of its existing mineral and royalty assets through active management and expanding its asset base through acquisitions of additional mineral and royalty interests. The Company owns mineral and leasehold properties and other natural gas and oil interests, which are all located in the contiguous United States, primarily in Oklahoma, Texas, Louisiana, North Dakota and Arkansas, with properties located in several other states. The Company's natural gas, oil and NGL production is from interests in 6,958 wells located principally in Oklahoma, Louisiana, Texas, Arkansas and North Dakota. The Company does not operate any wells. Approximately 52%, 39% and 9% of natural gas, oil and NGL revenues were derived from the sale of natural gas, oil and NGL, respectively, in the year ended December 31, 2024. Approximately 81%, 11% and 8% of the Company's total sales volumes in the year ended December 31, 2024 were derived from natural gas, oil and NGL, respectively. Substantially all the Company's natural gas, oil and NGL production is sold through the operators of the wells.

Effective April 1, 2022, the Company changed its state of incorporation from Oklahoma to Delaware through a merger with a wholly owned subsidiary, which was conducted for such purpose (the "Reincorporation"). Other than the change in the state of incorporation, the Reincorporation did not result in any change in the business, physical location, management, or any change in the fair value of the assets and liabilities of PHX Minerals Inc. and its subsidiaries and no gain or loss was recognized in our consolidated financial statements (since the merger was between entities under common control both before and after the merger).

**Use of Estimates** 

Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Of these estimates and assumptions, management considers the estimation of natural gas, crude oil and NGL reserves to be the most significant. These estimates affect the unaudited standardized measure disclosures, as well as DD&A and impairment calculations. The Company's Independent Consulting Petroleum Engineer, with assistance from the Company, prepares estimates of natural gas, crude oil and NGL reserves on an annual basis. These estimates are based on available geologic and seismic data, reservoir pressure data, core analysis reports, well logs, analogous reservoir performance history, production data and other available sources of engineering, geological and geophysical information. For DD&A purposes, and as required by the guidelines and definitions established by the SEC, the reserve estimates were based on average individual product prices during the 12-month period prior to December 31, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices were defined by contractual arrangements, excluding escalations based upon future conditions. For impairment purposes, projected future natural gas, crude oil and NGL prices as estimated by management are used. Natural gas, crude oil and NGL prices are volatile and largely affected by worldwide production and consumption and are outside the control of management. Management uses projected future natural gas, crude oil and NGL pricing assumptions to prepare estimates of natural gas, crude oil and NGL reserves used in formulating management's overall operating decisions.

As a non-operator of working, royalty and mineral interests, the Company receives actual natural gas, oil and NGL sales volumes and prices more than a month after the information is available to the operators of the wells. Because of the delay in information, the most current available production data is gathered from the

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appropriate operators, as well as public and private sources, and natural gas, oil and NGL index prices are used to estimate the accrual of revenue on these wells. If information is not available from an outside source, the Company utilizes past production receipts, production type curves, and estimated sales price information to estimate its accrual of revenue on all other wells each quarter. The natural gas, oil and NGL sales revenue accrual can be impacted by many variables including rapid production decline rates, production curtailments by operators, the shut-in of wells with mechanical problems and rapidly changing market prices for natural gas, oil and NGL. These variables could lead to an over or under accrual of natural gas, oil and NGL at the end of any particular quarter. Based on past history, the Company's estimated accrual has been materially accurate.

**Basis of Presentation** 

Certain reclassifications have been made to prior period financials to conform to the current year presentation. These reclassifications have no impact on previous reported total assets, total liabilities, net income (loss), stockholders' equity, or operating cash flows.

**Cash and Cash Equivalents** 

Cash and cash equivalents consist of all demand deposits and funds invested in short-term investments with original maturities of three months or less.

**Natural Gas, Oil and NGL Sales** 

The Company sells natural gas, oil and NGL to various customers, recognizing revenues as natural gas, oil and NGL is produced and sold.

**Accounts Receivable and Concentration of Credit Risk** 

Substantially all of the Company's accounts receivable are due from purchasers (operators) of natural gas, oil and NGL. Natural gas, oil and NGL sales receivables are generally unsecured. This industry concentration has the potential to impact our overall exposure to credit risk, in that the purchasers of our natural gas, oil and NGL and the operators of the properties in which we have an interest may be similarly affected by changes in economic, industry or other conditions. During the years ended December 31, 2024, and 2023, the Company did not have any bad debt expense. The Company's allowance for uncollectible accounts as of the balance sheet dates was not material.

**Natural Gas and Oil Producing Activities** 

The Company follows the successful efforts method of accounting for natural gas and oil producing activities. For working interest properties, intangible drilling and other costs of successful wells and development dry holes are capitalized and amortized. The costs of exploratory wells are initially capitalized, but charged against income, if and when the well does not reach commercial production levels. Natural gas and oil mineral and leasehold costs are capitalized when incurred.

**Leasing of Mineral Rights** 

The Company generates lease bonuses by leasing its mineral interests to exploration and production companies. A lease agreement represents the Company's contract with a third party and generally conveys the rights to any natural gas, oil or NGL discovered, grants the Company a right to a specified royalty interest and requires that drilling and completion operations commence within a specified time period. Control is transferred to the lessee and the Company has satisfied its performance obligation when the lease agreement is executed, such that revenue is recognized when the lease bonus payment is received. The Company accounts for its lease bonuses as conveyances in accordance with the guidance set forth in ASC 932, and it recognizes the lease bonus

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as a cost recovery with any excess above its cost basis in the mineral being treated as income. The excess of lease bonus above the mineral basis is shown in the lease bonuses and rentals line item on the Company's Statements of Income.

**Derivatives** 

The Company utilizes derivative contracts to reduce its exposure to fluctuations in the price of natural gas and oil. These derivatives are recorded at fair value on the balance sheet. The Company has elected not to complete the documentation requirements necessary to permit these derivative contracts to be accounted for as cash flow hedges.

**Properties and Equipment** 

*Depreciation, Depletion and Amortization* 

Depreciation, depletion and amortization of the costs of producing natural gas and oil properties are generally computed using the unit-of-production method primarily on an individual property basis using proved or proved developed reserves, as applicable, as estimated by the Company's Independent Consulting Petroleum Engineer. The Company's capitalized costs of drilling and equipping all development wells, and those exploratory wells that have found proved reserves, are amortized on a unit-of-production basis over the remaining life of associated proved developed reserves. Leasehold costs for working interest and overriding royalty interest properties are amortized on a unit-of-production basis over the remaining life of associated total proved reserves. Depreciation of furniture and fixtures is computed using the straight-line method over estimated productive lives of five to eight years.

Non-producing natural gas and oil properties include non-producing minerals, which had a net book value of $41,870,046 and $49,226,889 at December 31, 2024 and December 31, 2023, respectively, consisting of perpetual ownership of mineral interests in several states, with 57% of the acreage in Oklahoma, Texas, Louisiana, North Dakota and Arkansas. As mentioned, these mineral rights are perpetual and have been accumulated over the 98-year life of the Company. There are approximately 170,773 net acres of non-producing minerals in more than 5,603 tracts owned by the Company. An average tract contains approximately 30 acres. Since inception, the Company has continually generated an interest in several thousand natural gas and oil wells using its ownership of the fee mineral acres as an ownership basis. There continues to be drilling and leasing activity on these mineral interests each year. Non-producing minerals are considered a long-term investment by the Company, as they do not expire (unlike natural gas and oil leases) and based on past history and experience, management has concluded that a long-term straight-line amortization over 33 years is appropriate. Due to the fact that the Company's mineral ownership consists of a large number of properties, whose costs are not individually significant, and because virtually all are in the Company's core operating areas, the minerals are being amortized on an aggregate basis (by mineral deed).

When a new well is drilled on the Company's mineral acreage, all of the non-producing mineral costs for the associated mineral tract are transferred to producing minerals and are amortized straight-line over a 20-year period (insignificant fields are amortized over a 10-year period). Management has historically chosen to move non-producing mineral costs in this manner, as it is very difficult for the Company, as a non-operator, to predict well spacing and timing of drilling on the Company's minerals, and future development will deplete these assets over a long period. The straight-line amortization over a 20-year period is appropriate for producing minerals, because current and future development will deplete these assets over a lengthy period that represents the estimated economic life.

**Capitalized Interest** 

During the years ended December 31, 2024 and 2023, no interest was capitalized. Interest of $2,563,268 and $2,362,393, respectively, was charged to expense during those periods.

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**Accrued Liabilities** 

The following table shows the balances for the years ended December 31, 2024 and December 31, 2023, relating to the Company's accrued liabilities:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
|  Accrued compensation | $853963 | $210379 |
|  Revenues payable | 624837 | 529025 |
|  Accrued ad valorem | 81422 | 39591 |
|  Dividends | 155271 | 113443 |
|  Other | 151437 | 322837 |
|  Total accrued liabilities | $1866930 | $1215275 |

---

The increase in accrued compensation in 2024 is due to timing of payment related to the short-term incentive compensation.

**Asset Retirement Obligations** 

The Company owns interests in natural gas and oil properties, which may require expenditures to plug and abandon the wells upon the end of their economic lives. The fair value of legal obligations to retire and remove long-lived assets is recorded in the period in which the obligation is incurred (typically when the asset is installed at the production location). When the liability is initially recorded, this cost is capitalized by increasing the carrying amount of the related properties and equipment. Over time the liability is increased for the change in its present value, and the capitalized cost in properties and equipment is depreciated over the useful life of the remaining asset. The Company does not have any assets restricted for the purpose of settling asset retirement obligations.

**Environmental Costs** 

As the Company is directly involved in the extraction and use of natural resources, it is subject to various federal, state and local provisions regarding environmental and ecological matters. Compliance with these laws may necessitate significant capital outlays. The Company does not believe the existence of current environmental laws, or interpretations thereof, will materially hinder or adversely affect the Company's business operations; however, there can be no assurances of future effects on the Company of new laws or interpretations thereof. Since the Company does not operate any wells where it owns an interest, actual compliance with environmental laws is controlled by the well operators, with the Company being responsible for its proportionate share of the costs involved (on working interest wells only). The Company carries liability and pollution control insurance. However, all risks are not insured due to the availability and cost of insurance.

Environmental liabilities, which historically have not been material, are recognized when it is probable that a loss has been incurred and the amount of that loss is reasonably estimable. Environmental liabilities, when accrued, are based upon estimates of expected future costs. At December 31, 2024 and December 31, 2023, there were no such costs accrued and expenses were immaterial for both years.

**Earnings (Loss) Per Share of Common Stock** 

Earnings (loss) per share is calculated using net income (loss) divided by the weighted average number of common shares outstanding, plus unissued, vested directors' deferred compensation shares during the period.

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**Share-based Compensation** 

The Company recognizes current compensation costs for its Deferred Compensation Plan for Non-Employee Directors (the "Plan"). Compensation cost is recognized for the requisite directors' fees as earned and unissued stock is recorded to each director's account based on the fair market value of the stock at the date earned. The Plan provides that only upon retirement, termination or death of the director or upon a change in control of the Company, the shares accrued under the Plan may be issued to the director.

Restricted stock awards to officers and employees provide for either cliff vesting at the end of three years from the date of the awards or time vesting ratably over a three-year period. These restricted stock awards can be granted based on service time only (time-based), subject to certain share price performance standards (market-based) or subject to company performance standards (performance-based). Restricted stock awards to the non-employee directors provide for annual vesting during the calendar year of the award. The fair value of the awards on the grant date is ratably expensed over the vesting period in accordance with accounting guidance.

**Income Taxes** 

The estimation of amounts of income tax to be recorded by the Company involves interpretation of complex tax laws and regulations, as well as the completion of complex calculations, including the determination of the Company's percentage depletion deduction. Although the Company's management believes its tax accruals are adequate, differences may occur in the future depending on the resolution of pending and new tax regulations. Deferred income taxes are computed using the liability method and are provided on all temporary differences between the financial basis and the tax basis of the Company's assets and liabilities.

The Company's provision for income taxes differs from the statutory rate primarily due to estimated federal and state benefits generated from estimated excess federal and Oklahoma percentage depletion, which are permanent tax benefits. Excess percentage depletion, both federal and Oklahoma, can only be taken in the amount that it exceeds cost depletion which is calculated on a unit-of-production basis.

Both excess federal percentage depletion, which is limited to certain production volumes and by certain income levels, and excess Oklahoma percentage depletion, which has no limitation on production volume, reduce estimated taxable income or add to estimated taxable loss projected for any year. Federal and Oklahoma excess percentage depletion, when a provision for income taxes is expected for the year, decreases the effective tax rate, while the effect is to increase the effective tax rate when a benefit for income taxes is expected for the year. The benefits of federal and Oklahoma excess percentage depletion and excess tax benefits and deficiencies of stock-based compensation are not directly related to the amount of pre-tax income (loss) recorded in a period. Accordingly, in periods where a recorded pre-tax income or loss is relatively small, the proportional effect of these items on the effective tax rate may be significant. The effective tax rate for the year ended December 31, 2024 was 26% as compared to 25% for the year ended December 31, 2023.

The threshold for recognizing the financial statement effect of a tax position is when it is more likely than not, based on the technical merits, that the position will be sustained by a taxing authority. Recognized tax positions are initially and subsequently measured as the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with a taxing authority. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Subject to statutory exceptions that allow for a possible extension of the assessment period, the Company is no longer subject to U.S. federal, state, and local income tax examinations for fiscal years prior to 2021.

The Company includes interest assessed by the taxing authorities in interest expense and penalties related to income taxes in general and administrative expense on its Statements of Income. For the fiscal years ended December 31, 2024 and 2023, the Company's interest and penalties were not material. The Company does not believe it has any material uncertain tax positions.

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**Recent Accounting Pronouncements** 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which requires public entities with a single reportable segment to provide all existing segment disclosures required by ASC 280 on an interim and annual basis, including the title and position of the Chief Operating Decision Maker ("CODM"), and primarily requires disclosing of significant segment expenses that are regularly provided to the CODM. ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. We have adopted ASU 2023-07 for the fiscal year 2024 annual financial statements and interim condensed financial statements thereafter and have applied this standard retrospectively for all prior periods presented. Refer to Note 15 — Operating Segment of these financial statements.

**Accounting Pronouncements Not Yet Adopted** 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures. The guidance increases transparency in the income tax disclosure, primarily related to the rate reconciliation and income taxes paid information. The guidance is effective for fiscal years beginning after December 15, 2024, and early adoption is permitted. The Company is currently evaluating the impact this guidance will have on the income tax disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"), which requires public entities to disclose additional information about certain expenses included in relevant expense captions on the income statement. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and for interim periods beginning after December 15, 2027. Management is evaluating the impact of adoption of ASU 2024-03 on the Company's financial statements and disclosures.

<u>2. LEASES AND COMMITMENTS</u> 

*Assessment of Leases* 

The Company determines if an arrangement is a lease at inception by considering whether (i) explicitly or implicitly identified assets have been deployed in the agreement and (ii) the Company obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the agreement. As of December 31, 2024, none of the Company's leases were classified as financing leases. Operating lease liabilities represent the Company's obligation to make lease payments arising from the lease. The Company entered into a seven-year lease for office space during the quarter ended March 31, 2020, with a commencement date in August 2020. The associated lease liability and ROU asset at December 31, 2024, were $459,654 and $300,816, respectively. The Company has a lease incentive asset of $132,476, which is included in Other, net on the Company's balance sheets. Additionally, the Company entered into a new five-year lease for office space during the quarter ended March 31, 2022, with a commencement date in July 2022. The associated lease liability and ROU asset at December 31, 2024, were $236,163 and $128,678, respectively. The Company has a lease incentive asset of $95,397, which is included in Other, net on the Company's balance sheets. Lease costs for the years ended December 31, 2024 and 2023 were $287,763 and $304,163, respectively.

ROU assets represent the Company's right to use an underlying asset for the lease term, and operating lease liabilities represent the Company's obligation to make payments arising from the lease. ROU assets are recognized at commencement date and consist of the present value of remaining lease payments over the lease term, initial direct costs and prepaid lease payments less any lease incentives. Operating lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company uses the implicit rate, when readily determinable, or its incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments.

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The lease terms may include periods covered by options to extend the lease when it is reasonably certain that the Company will exercise that option and periods covered by options to terminate the lease when it is not reasonably certain that the Company will exercise that option. Lease expense for lease payments will be recognized on a straight-line basis over the lease term. The Company made an accounting policy election to not recognize leases with terms, including applicable options, of less than twelve months on the Company's balance sheets and recognize those lease payments in the Company's Statements of Income on a straight-line basis over the lease term. In the event that the Company's assumptions and expectations change, it may have to revise its ROU assets and operating lease liabilities.

The following table represents the maturities of the operating lease liabilities as of December 31, 2024:

---

| | |
|:---|:---|
| 2025 | 270845 |
| 2026 | 277723 |
| 2027 | 186004 |
|  Thereafter |  |
|  Total lease payments | $734572 |
|  Less: Imputed interest | (38755) |
|  Total | $695817 |

---

<u>3. REVENUES</u> 

*Natural gas and oil derivative contracts* 

See Note 12 for discussion of the Company's accounting for derivative contracts.

***Revenues from Contracts with Customers***

*Natural gas, oil and NGL sales* 

Sales of natural gas, oil and NGL are recognized when production is sold to a purchaser and control has transferred. Oil is priced on the delivery date based upon prevailing prices published by purchasers with certain adjustments related to oil quality and physical location. The price the Company receives for natural gas and NGL is tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality and heat content of natural gas, and prevailing supply and demand conditions, so that the price of natural gas fluctuates to remain competitive with other available natural gas supplies. These market indices are determined on a monthly basis. Each unit of commodity is considered a separate performance obligation; however, as consideration is variable, the Company utilizes the variable consideration allocation exception permitted under the standard to allocate the variable consideration to the specific units of commodity to which they relate.

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***Disaggregation of natural gas, oil and NGL revenues***

The following tables present the disaggregation of the Company's natural gas, oil and NGL revenues for the years ended December 31, 2024 and 2023.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
|  | **Royalty Interest** | **Working Interest** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas revenue | $15958989 | $1494732 | $17453721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil revenue | 12011909 | 1292015 | 13303924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGL revenue | 1880830 | 1052177 | 2933007 |
|  Natural gas, oil and NGL sales | $29851728 | $3838924 | $33690652 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
|  | **Royalty Interest** | **Working Interest** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas revenue | $17420360 | $2025900 | $19446260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil revenue | 12306987 | 1733213 | 14040200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGL revenue | 1866004 | 1183821 | 3049825 |
|  Natural gas, oil and NGL sales | $31593351 | $4942934 | $36536285 |

---

***Performance obligations***

The Company satisfies the performance obligations under its natural gas, oil and NGL sales contracts upon delivery of its production and related transfer of title to purchasers. Upon delivery of production, the Company has a right to receive consideration from its purchasers in amounts that correspond with the value of the production transferred.

***Allocation of transaction price to remaining performance obligations***

*Natural gas, oil and NGL sales* 

As the Company has determined that each unit of product generally represents a separate performance obligation, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. The Company has utilized the practical expedient in ASC 606, which permits the Company to allocate variable consideration to one or more but not all performance obligations in the contract if the terms of the variable payment relate specifically to the Company's efforts to satisfy that performance obligation and allocating the variable amount to the performance obligation is consistent with the allocation objective under ASC 606. Additionally, the Company will not disclose variable consideration subject to this practical expedient.

***Prior-period performance obligations and contract balances***

The Company records revenue in the month production is delivered to the purchaser. As a non-operator, the Company has limited visibility into the timing of when new wells start producing, and production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The expected sales volumes and prices for these properties are estimated and recorded within the natural gas, oil and NGL sales receivables line item on the Company's balance sheets. The difference between the Company's estimates and the actual amounts received for natural gas, oil and NGL sales is recorded in the quarter that payment is received from the third party. For the years ended December 31, 2024 and 2023, revenue recognized in these reporting periods related to performance obligations satisfied in prior reporting periods for existing wells was considered a change in estimate.

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As noted above, as a non-operator, there are instances when the Company is limited by the information operators provide. Through cash received on new wells, in the years ended December 31, 2024 and 2023, the Company identified several producing properties on its minerals that had production dates prior to the years ended December 31, 2024 and 2023. Estimates of the natural gas and oil sales related to those properties were made and are reflected in the natural gas, oil and NGL sales on the Company's Statements of Income and on the Company's Balance Sheets in natural gas, oil and NGL sales receivables. In connection with obtaining more relevant information on new wells on Company acreage during the years ended December 31, 2024 and 2023, the Company recorded a change in estimate for new wells to natural gas, oil and NGL sales totaling approximately $0.5 million for the year ended December 31, 2024 related to the production periods before January 1, 2024 and approximately $0.9 million for the year ended December 31, 2023 related to the production periods before January 1, 2023.

<u>4. INCOME TAXES</u> 

The Company's provision for income taxes is detailed as follows:

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Current: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | $99719 | $190914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 198790 | 240815 |
|  | 298509 | 431729 |
|  Deferred: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | 525511 | 3538031 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 3167 | 765700 |
|  | 528678 | 4303731 |
|  | $827187 | $4735460 |

---

The difference between the provision for income taxes and the amount which would result from the application of the federal statutory rate to income before provision for income taxes is analyzed below:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Provision for income taxes at statutory rate | $661301 | $3917815 |
|  Change in valuation allowance | 3394 | (8067) |
|  Percentage depletion | (375145) | (408729) |
|  State income taxes, net of federal provision | 156818 | 963063 |
|  Restricted stock tax benefit | (59943) | 10664 |
|  Deferred directors' compensation benefit | 28230 | 42018 |
|  Nondeductible compensation | 359545 | 122204 |
|  Law change |  |  |
|  Provision to return adjustments | 40670 | 190914 |
|  Other | 12317 | (94422) |
|  | $827187 | $4735460 |

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Deferred tax assets and liabilities, resulting from differences between the financial statement carrying amounts and the tax basis of assets and liabilities, consist of the following at December 31, 2024 and 2023:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
|  Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial basis in excess of tax basis, principally intangible drilling costs capitalized for financial purposes and expensed for tax purposes | $12099584 | $10825555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative contracts |  | 802712 |
|  Total deferred tax liabilities | 12099584 | 11628267 |
|  Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State net operating loss carry forwards | 221690 | 293701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal net operating loss carry forwards | 1998323 | 2234275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Statutory depletion carryover | 239294 | 417090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | 220560 | 210447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred directors' compensation | 288962 | 331879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stock expense | 482607 | 653959 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative contracts | 172930 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense limitation/carryover | 1101150 | 643067 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 96809 | 91874 |
|  Total deferred tax assets | 4822325 | 4876292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State NOL valuation allowance | 9056 | 5662 |
|  Net deferred tax liabilities | $7286315 | $6757637 |

---

The federal net operating loss carry forwards can be carried forward indefinitely. Included in state net operating loss carry forwards at December 31, 2024, the Company had a deferred tax asset of $20,946 related to various state income tax net operating loss ("state NOL") carry-forwards, which begin to expire as of December 31, 2024. The Company has a valuation allowance of $9,056 for the state NOLs, as it is more likely than not that it will not be fully utilized before expiration.

<u>5. DEBT</u> 

On September 1, 2021, the Company entered into a $100,000,000 credit facility (the "Credit Facility") with a group of banks headed by Independent Bank. The Credit Facility has a current borrowing base of $50,000,000 as of December 31, 2024, and a maturity date of September 1, 2028. The Credit Facility is secured by the Company's personal property and at least 75% of the total value of the proved, developed and producing oil and gas properties. The interest rate is based on either (a) SOFR plus an applicable margin ranging from 2.750% to 3.750% per annum based on the Company's Borrowing Base Utilization or (b) the greater of (1) the Prime Rate in effect for such day, or (2) the overnight cost of federal funds as announced by the US Federal Reserve System in effect on such day plus one-half of one percent (0.50%), plus, in each case, an applicable margin ranging from 1.750% to 2.750% per annum based on the Company's Borrowing Base Utilization. The election of Independent Bank prime or SOFR is at the Company's discretion. The interest rate spread from Independent Bank prime or SOFR will be charged based on the ratio of the loan balance to the borrowing base. The interest rate spread from SOFR or the prime rate increases as a larger percent of the borrowing base is advanced. At December 31, 2024, the effective interest rate was 7.88%.

The Company's debt is recorded at the carrying amount on its balance sheets. The carrying amount of the Credit Facility approximates fair value because the interest rates are reflective of market rates. Debt issuance costs associated with the Credit Facility are presented in Other, net on the Company's balance sheets. Total debt

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issuance cost net of amortization as of December 31, 2024, was $325,218. The debt issuance cost is amortized over the life of the Credit Facility.

Determinations of the borrowing base are made semi-annually (usually June and December) or whenever the banks, in their sole discretion, believe that there has been a material change in the value of the Company's natural gas and oil properties. The Credit Facility contains customary covenants which, among other things, require periodic financial and reserve reporting and place certain limits on the Company's incurrence of indebtedness, liens, make fundamental changes, and engage in certain transactions with affiliates. The Credit Agreement also restricts the Company's ability to make certain restricted payments if before or after the Restricted Payment (i) the Available Commitment is less than ten percent (10%) of the Borrowing Base or (ii) the Leverage Ratio on a pro forma basis is greater than 2.50 to 1.00. In addition, the Company is required to maintain certain financial ratios, a current ratio (as described in the Credit Agreement) of no less than 1.0 to 1.0 and a funded debt to EBITDAX (as defined in the Credit Agreement) of no more than 3.5 to 1.0 based on the trailing twelve months. At December 31, 2024, the Company was in compliance with the covenants of the Credit Facility, had $29,500,000 outstanding, and had $20,500,000 of borrowing base availability under the Credit Facility. All capitalized terms in this description of the Credit Facility that are not otherwise defined in this Annual Report have the meaning assigned to them in the Credit Agreement.

<u>6. STOCKHOLDERS' EQUITY</u> 

In May 2014, the Board adopted stock repurchase resolutions (the "Repurchase Program") to allow management, at its discretion, to purchase the Company's Common Stock as treasury shares up to an amount equal to the aggregate number of shares of Common Stock awarded pursuant to the 2010 Restricted Stock Plan ("2010 Stock Plan"), as amended, contributed by the Company to its ESOP and credited to the accounts of directors pursuant to the Deferred Compensation Plan for Non-Employee Directors.

Effective in May 2018, the Board approved an amendment to the Company's existing stock Repurchase Program. As amended, the Repurchase Program continues to allow the Company to repurchase up to $1.5 million of the Company's Common Stock at management's discretion. The Board added language to clarify that this is intended to be an evergreen program as the repurchase of an additional $1.5 million of the Company's Common Stock is authorized and approved whenever the previous amount is utilized. In addition, the number of shares allowed to be purchased by the Company under the Repurchase Program is no longer capped at an amount equal to the aggregate number of shares of Common Stock (i) awarded pursuant to the 2010 Stock Plan, as amended, (ii) contributed by the Company to its ESOP, and (iii) credited to the accounts of directors pursuant to the Deferred Compensation Plan for Non-Employee Directors.

<u>7. EARNINGS PER SHARE ("EPS")</u> 

Basic and diluted earnings per common share is calculated using net income divided by the weighted average number of shares of Common Stock outstanding, including unissued, vested directors' deferred compensation shares of 288,262 and 261,320, respectively, during the years ended December 31, 2024 and 2023. As of December 31, 2024, there were no participating securities.

For the years ended December 31, 2024 and 2023, the Company excluded restricted stock in the diluted EPS calculation that would have been antidilutive. The average shares outstanding of restricted stock excluded from the diluted EPS was 1,088,269 and 753,336, respectively, for the years ended December 31, 2024 and 2023.

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The following table sets forth the computation of earnings (loss) per share.

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Basic EPS |  |  |
|  Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic net income (loss) | $2321866 | $13920800 |
|  Denominator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares | 36041473 | 35718989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unissued, directors' deferred compensation shares | 288262 | 261320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic weighted average shares outstanding | 36329735 | 35980309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic EPS | $0.06 | $0.39 |
|  Diluted EPS |  |  |
|  Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic net income (loss) | $2321866 | $13920800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted net income (loss) | 2321866 | 13920800 |
|  Denominator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic weighted average shares outstanding | 36329735 | 35980309 |
|  Effects of dilutive securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unvested restricted stock | 82535 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted weighted average shares outstanding | 36412270 | 35980309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted EPS | $0.06 | $0.39 |

---

<u>8. 401K PLAN</u> 

Effective January 1, 2021, the Company established a defined contribution 401K plan. The Company began matching up to 5% of 401K contributions in cash starting January 1, 2021.

Contributions to the plan consisted of:

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| | |
|:---|:---|
| Year | Amount |
| 2024 | $166954 |
| 2023 | $150843 |

---

<u>9. DEFERRED COMPENSATION PLAN FOR DIRECTORS</u> 

Annually, independent directors may elect to be included in the Company's Deferred Directors' Compensation Plan for Non-Employee Directors (the "Plan"). The Plan provides that each independent director may individually elect to be credited with future unissued shares of Company Common Stock rather than cash for all or a portion of the annual retainers, and may elect to receive shares, when issued, over annual time periods up to ten years. These unissued shares are recorded to each director's deferred compensation account at the closing market price of the shares at each quarter end. Only upon a director's retirement, termination, death or a change-in-control of the Company will the shares recorded for such director under the Plan be issued to the director. The promise to issue such shares in the future is an unsecured obligation of the Company. As of December 31, 2024, there were 292,320 shares recorded under the Plan. The deferred balance outstanding at December 31, 2024, under the Plan was $1,323,760. Expenses totaling $185,082 and $228,017 were charged to the Company's results of operations for the years ended December 31, 2024 and 2023, respectively, and are included in general and administrative expense in the accompanying Statements of Income.

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<u>10. LONG-TERM INCENTIVE PLAN</u> 

In March of 2021, stockholders approved the PHX Minerals Inc. 2021 Long-Term Incentive Plan (the "LTIP"). The LTIP expressly prohibits the payment of dividends or dividend equivalents on any award before the date on which the award vests. Awards under the LTIP will be subject to any clawback or recapture policy that the Company may adopt from time to time or any clawback or recapture provisions set forth in an award agreement.

The fair value of the restricted stock (time-based) was based on the closing price of the shares on their grant date and will be recognized as compensation expense ratably over the vesting period. The fair value of the performance shares (market-based) was estimated on the grant date using a Monte Carlo valuation model that factors in information, including the historical volatility, risk-free interest rate and the probable outcome of the market condition, over the expected life of the performance shares. Vesting of these performance shares is based on the performance of the market price of the Common Stock over the vesting period. Compensation expense for the performance shares is a fixed amount determined at the grant date and is recognized over the vesting period regardless of whether performance shares are awarded at the end of the vesting period. Upon vesting, shares are expected to be issued out of shares held in treasury or the Company's authorized but unissued shares. Compensation expense for the restricted stock awards is recognized in G&A. Forfeitures of awards are recognized when they occur.

On January 31, 2023, the Company granted shares of Common Stock in the form of time-based and market-based restricted stock to the employees and officers of the Company. Officers were awarded 299,900 market-based shares with a fair value on their award date of $1,541,893. Upon vesting, the market-based shares that do not meet certain performance criteria are forfeited. Both employees and certain officers were also awarded 97,053 time-based shares with a fair value on the award date of $350,362. The shares issued to employees time-vest ratably over a three-year period ending in December of 2025, and the shares awarded to the officers cliff vest at the end of a three-year period ending in December of 2025. All shares granted on January 31, 2023 have voting rights during the vesting period.

On April 20, 2023, the Company granted 92,544 shares of Common Stock in the form of time-based restricted stock to the non-employee directors of the Company, which had a fair value of $243,390. The shares of restricted stock fully vested in December 2023 and had voting rights during the vesting period.

On December 21, 2023, the Company granted 482,339 shares of Common Stock in the form of time-based and market-based restricted stock to the employees and officers of the Company. Officers were awarded 369,114 market-based shares with a fair value on their award date of $1,678,599. Upon vesting, the market-based shares that do not meet certain performance criteria are forfeited. Both employees and certain officers were also awarded 113,225 time-based shares with a fair value on the award date of $381,571. The shares issued to employees time-vest ratably over a three-year period ending in December of 2026, and the shares awarded to the officers cliff vest at the end of a three-year period ending in December of 2026. All shares granted on December 21, 2023 have voting rights during the vesting period.

On December 21, 2023, the Company granted 116,904 shares of Common Stock in the form of time-based restricted stock to the non-employee directors of the Company, which had a fair value of $393,967. The shares of restricted stock fully vested in December 2024 and had voting rights during the vesting period.

On December 16, 2024, the Company granted 465,649 shares of Common Stock in the form of time-based and market-based restricted stock to the employees and officers of the Company. Officers were awarded 347,818 market-based shares with a fair value on their award date of $1,786,802. Upon vesting, the market-based shares that do not meet certain performance criteria are forfeited. Both employees and certain officers were also awarded 117,831 time-based shares with a fair value on the award date of $467,790. The shares issued to employees time-vest ratably over a three-year period ending in December of 2027, and the shares awarded to the

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officers cliff vest at the end of a three-year period ending in December of 2027. All shares granted on December 16, 2024 have voting rights during the vesting period.

On December 16, 2024, the Company granted 82,695 shares of Common Stock in the form of time-based restricted stock to the non-employee directors of the Company, which had a fair value of $328,300. The shares of restricted stock fully vest in December 2025 and have voting rights during the vesting period.

The following table summarizes the Company's pre-tax compensation expense for the years ended December 31, 2024 and 2023 related to the Company's market-based, time-based and performance-based restricted stock:

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Market-based, restricted stock | $1624134 | $1722814 |
|  Time-based, restricted stock | 663793 | 483096 |
|  Total compensation expense | $2287927 | $2205910 |

---

A summary of the Company's unrecognized compensation cost for its unvested market-based and time-based restricted stock and the weighted-average periods over which the compensation cost is expected to be recognized are shown in the following table:

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| | | |
|:---|:---|:---|
|  | Unrecognized<br>Compensation<br>Cost | Weighted<br>Average Period<br>(in years) |
|  Market-based, restricted stock | $2605320 | 1.75 |
|  Time-based, restricted stock | 1080882 | 2.02 |
|  Total | $3686202 |  |

---

Upon vesting, shares are expected to be issued out of shares held in treasury or authorized but unissued shares.

A summary of the status of, and changes in, unvested shares of restricted stock awards is presented below:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Market-Based<br>Unvested<br>Restricted<br>Awards | Weighted<br>Average<br>Grant-Date<br>Fair Value | Time-Based<br>Unvested<br>Restricted<br>Awards | Weighted<br>Average<br>Grant-Date<br>Fair Value |
|  Unvested shares as of December 31, 2022 | 705835 | $3.55 | 153224 | $5.09 |
|  Granted | 669014 | 4.81 | 419726 | 3.26 |
|  Vested | (303750) | 2.72 | (147495) | 5.17 |
|  Forfeited |  |  | (7919) | 3.41 |
|  Unvested shares as of December 31, 2023 | 1071099 | $4.57 | 417536 | $3.26 |
|  Granted | 458465 | 4.89 | 210651 | 3.92 |
|  Vested | (502608) | 4.18 | (172165) | 3.15 |
|  Forfeited | (21962) | 4.81 | (60658) | 3.36 |
|  Unvested shares as of December 31, 2024 | 1004994 | $4.91 | 395364 | $3.64 |

---

The fair value of the vested shares for the years ended December 31, 2024 and 2023 was $2,558,348 and $1,539,424, respectively.

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<u>11. PROPERTIES AND EQUIPMENT</u> 

*Impairment* 

During the year ended December 31, 2024, the Company recorded impairment of $24,061 related to one field. These assets were written down to their fair market value. The remaining $28,612 of impairment expense was related to leasehold that expired.

During the year ended December 31, 2023, the Company recorded no impairment provisions on producing properties and $38,533 on wells that were assigned back to the operator and the Company wrote off.

A further reduction in natural gas, oil and NGL prices or a decline in reserve volumes may lead to additional impairment in future periods that may be material to the Company.

*Acquisitions* 

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| | | | | |
|:---|:---|:---|:---|:---|
| Quarter Ended | Net royalty acres <sup>(1)(2)</sup> | Total Purchase<br> Price <sup>(1)(3)</sup> | % Proved / %<br> Unproved | Area of Interest |
| December 31, 2024 |  |  |  |  |
|  | 363 | $2.5 million | 85% / 15% | Haynesville |
| September 30, 2024 |  |  |  |  |
|  | 325 | $3.0 million | 78% / 22% | Haynesville / SCOOP |
| June 30, 2024 |  |  |  |  |
|  | 96 | $0.9 million | 59% / 41% | Haynesville / SCOOP |
| March 31, 2024 |  |  |  |  |
|  | 146 | $1.4 million | 5% / 95% | SCOOP |
| December 31, 2023 |  |  |  |  |
|  | 325 | $4.3 million | 72% / 28% | Haynesville / SCOOP |
| September 30, 2023 |  |  |  |  |
|  | 974 | $13.4 million | 81% / 19% | Haynesville / SCOOP |
| June 30, 2023 |  |  |  |  |
|  | 151 | $1.8 million | 29% / 71% | Haynesville / SCOOP |
| March 31, 2023 |  |  |  |  |
|  | 912 | $10.8 million | 44% / 56% | Haynesville / SCOOP |

---

(1) Excludes subsequent closing adjustments and insignificant acquisitions.

(2) An estimated net royalty equivalent was used for the unleased minerals included in the net royalty acres.

(3) Table excludes transaction costs of $0.1 million and $0.3 million, respectively, that were
capitalized during the years ended December 31, 2024 and 2023.

All purchases made in fiscal years 2023 and 2024 were of mineral and royalty acreage and were accounted for as asset acquisitions.

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*Divestitures* 

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| | | | | |
|:---|:---|:---|:---|:---|
| Quarter Ended | Net mineral acres<sup>(1)</sup>/Wellbores<sup>(2)</sup> | Sale Price <sup>(3)</sup> | Gain/(Loss) <sup>(3)</sup> | Location |
| December 31, 2024 |  |  |  |  |
|  | No significant divestitures |  |  |  |
| September 30, 2024 |  |  |  |  |
|  | No significant divestitures |  |  |  |
| June 30, 2024 |  |  |  |  |
|  | 1,005 acres | $0.5 million | $0.4 million | TX |
| March 31, 2024 |  |  |  |  |
|  | No significant divestitures |  |  |  |
| December 31, 2023 |  |  |  |  |
|  | No significant divestitures |  |  |  |
| September 30, 2023 |  |  |  |  |
|  | 729 acres | $0.3 million | $0.2 million | OK |
| June 30, 2023 |  |  |  |  |
|  | No significant divestitures |  |  |  |
| March 31, 2023 |  |  |  |  |
|  | 755 acres | $0.3 million | $0.3 million | OK / TX |
|  | 267 wellbores | $10.7 million | $4.1 million | OK / TX |

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(1) Number of net mineral acres sold.

(2) Number of gross wellbores associated with working interests sold.

(3) Excludes subsequent closing adjustments and immaterial divestitures.

*Asset Retirement Obligations* 

The following table shows the activity for the years ended December 31, 2024 and 2023, relating to the Company's asset retirement obligations:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Asset retirement obligations as of beginning of the period | $1062139 | $1916932 |
|  Wells acquired or drilled |  |  |
|  Wells sold or plugged | (8214) | (898231) |
|  Accretion of discount | 43825 | 43438 |
|  Asset retirement obligations as of end of the period | $1097750 | $1062139 |

---

As a non-operator, the Company does not control the plugging of wells in which it has a working interest and is not involved in the negotiation of the terms of the plugging contracts. This estimate relies on information gathered from outside sources as well as relevant information received directly from operators.

<u>12. DERIVATIVES</u> 

The Company has entered into fixed swap contracts and costless collar contracts. These instruments are intended to reduce the Company's exposure to fluctuations in the price of natural gas and oil. Collar contracts set a fixed floor price and a fixed ceiling price and provide payments to the Company if the index price falls below the floor or require payments by the Company if the index price rises above the ceiling. Fixed swap contracts set a fixed price and provide payments to the Company if the index price is below the fixed price or require payments by the Company if the index price is above the fixed price. These contracts cover only a portion of the Company's natural gas and oil production, provide only partial price protection against declines in natural gas and oil prices and may limit the benefit of future increases in prices.

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On September 2, 2021, the Company settled all of its derivative contracts consisting of both swaps and costless collars with BOKF, NA dba Bank of Oklahoma ("BOKF") by paying $8.8 million. On September 3, 2021, the Company entered into new derivative contracts with BP Energy Company ("BP") that had similar terms to the contracts settled with BOKF and received a payment of $8.8 million from BP. The new derivative contracts consisted of all fixed swap contracts and are secured under the Company's Credit Facility with Independent Bank. Management concluded that the financing element of the new derivative contracts with BP was other than insignificant due to the off-market terms of the fixed swap price. Due to the financing element, the Company is required to report all cash flows associated with these derivative contracts as "cash flows from financing activities" in the statement of cash flows. This requirement relates to all cash flows from these derivatives and not just the portion of the cash flows relating to the financing element of the derivative. All of these derivatives with a financing element settled in 2023. The Company's derivative contracts that were in place and unsettled as of December 31, 2024 will settle based on the terms below.

**Derivative contracts in place as of December 31, 2024** 

---

| | | | |
|:---|:---|:---|:---|
| Fiscal period | Contract total volume | Index | Contract average price |
|  Natural gas costless collars |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 | 1,540,000 Mmbtu | NYMEX Henry Hub | $3.27floor/$4.54ceiling |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | 1,245,000 Mmbtu | NYMEX Henry Hub | $3.29floor/$4.19ceiling |
|  Natural gas fixed price swaps |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 | 2,200,000 Mmbtu | NYMEX Henry Hub | $3.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | 215,000 Mmbtu | NYMEX Henry Hub | $3.44 |
|  Oil Costless Collars |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remaining unsettled from 2024 | 500 Bbls | NYMEX WTI | $67.00floor/$77.00ceiling |
|  Oil fixed price swaps |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remaining unsettled from 2024 | 5,100 Bbls | NYMEX WTI | $68.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 | 57,800 Bbls | NYMEX WTI | $69.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | 15,000 Bbls | NYMEX WTI | $68.78 |

---

The Company's fair value of derivative contracts was a net liability of $714,408 as of December 31, 2024, and a net asset of $3,283,587 as of December 31, 2023. Realized and unrealized gains and (losses) are recorded in gains (losses) on derivative contracts on the Company's Statement of Income. Cash receipts in the following table reflect the gain or loss on derivative contracts which settled during the respective periods, and the non-cash gain or loss reflect the change in fair value of derivative contracts as of the end of the respective periods.

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended**<br>**December 31,** | **For the Year Ended**<br>**December 31,** |
|  | **2024** | **2023** |
|  Cash received (paid) on settled derivative contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas costless collars | $1877875 | $1516535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas fixed price swaps<sup>(1)</sup> | 2616497 | 1344580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil costless collars | (52530) | 24330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil fixed price swaps<sup>(1)</sup> | (144239) | (328387) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash received (paid) on settled derivative contracts, net | $4297603 | $2557058 |
|  Non-cash gain (loss) on derivative contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas costless collars | $(1940316) | $857675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas fixed price swaps | (2138259) | 3119388 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil costless collars | 14577 | (702) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil fixed price swaps | 66003 | 326170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash gain (loss) on derivative contracts, net | $(3997995) | $4302531 |
|  Gains (losses) on derivative contracts, net | $299608 | $6859589 |

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(1) For the year ended December 31, 2023, excludes $373,745 of cash paid to settle off-market derivative contracts that are not reflected on the Statements of Income. Total cash paid related to off-market derivatives was $560,162 for the year ended
December 31, 2023 and is reflected in the Financing Activities section of the Statements of Cash Flows. Cash (paid) or received not related to off-market derivatives is reflected in the Operating
Activities section of the Statements of Cash Flows.

The fair value amounts recognized for the Company's derivative contracts executed with the same counterparty under a master netting arrangement may be offset. The Company has the choice to offset or not, but that choice must be applied consistently. A master netting arrangement exists if the reporting entity has multiple contracts with a single counterparty that are subject to a contractual agreement that provides for the net settlement of all contracts through a single payment in a single currency in the event of default on, or termination of, any one contract. Offsetting the fair values recognized for the derivative contracts outstanding with a single counterparty results in the net fair value of the transactions being reported as an asset or a liability on the balance sheets. The following table summarizes and reconciles the Company's derivative contracts' fair values at a gross level back to net fair value presentation on the Company's balance sheets at December 31, 2024, and December 31, 2023. The Company has offset all amounts subject to master netting agreements on the Company's balance sheets at December 31, 2024 and December 31, 2023.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2023** | **12/31/2023** | **12/31/2023** | **12/31/2023** |
|  | Fair Value<br>Commodity Contracts | Fair Value<br>Commodity Contracts | Fair Value<br>Commodity Contracts | Fair Value<br>Commodity Contracts | Fair Value<br>Commodity Contracts | Fair Value<br>Commodity Contracts | Fair Value<br>Commodity Contracts | Fair Value<br>Commodity Contracts |
|  | Current<br>Assets | Current<br>Liabilities | Non-Current<br>Assets | Non-Current<br>Liabilities | Current<br>Assets | Current<br>Liabilities | Non-Current<br>Assets | Non-Current<br>Liabilities |
|  Gross amounts recognized | $596514 | $912850 | $398894 | $796966 | $3318046 | $197439 | $344614 | $181634 |
|  Offsetting adjustments | (596514) | (596514) | (398894) | (398894) | (197439) | (197439) | (181634) | (181634) |
|  Net presentation on Balance Sheets | $— | $316336 | $— | $398072 | $3120607 | $— | $162980 | $— |

---

The fair value of derivative assets and derivative liabilities is adjusted for credit risk. The impact of credit risk was immaterial for all periods presented.

<u>13. FAIR VALUE MEASUREMENTS</u> 

Fair value is defined as the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants, i.e., an exit price. To estimate an exit price, a three-level hierarchy is used. The fair value hierarchy prioritizes the inputs, which refer broadly to assumptions market participants would use in pricing an asset or a liability, into three levels.

---

| | |
|:---|:---|
| Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
| Level 2: | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that the Company values using observable market data. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category include non-exchange traded derivatives such as over-the-counter commodity fixed-price swaps and commodity options (i.e. price collars). |

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| | |
|:---|:---|
|  | <br> The Company uses an option pricing valuation model for option derivative contracts that considers various inputs including: future prices, time value, volatility factors, counterparty credit risk and current market and contractual prices for the underlying instruments. The values calculated are then compared to the values given by counterparties for reasonableness. |
| Level 3: | Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and unobservable (or less observable) from objective sources (supported by little or no market activity). |

---

The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurement at December 31, 2024** | **Fair Value Measurement at December 31, 2024** | **Fair Value Measurement at December 31, 2024** | **Fair Value Measurement at December 31, 2024** |
|  | Quoted<br>Prices in<br>Active<br>Markets<br>(Level 1) | Significant<br>Other<br>Observable<br>Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br>(Level 3) | Total Fair<br>Value |
|  Financial Assets (Liabilities): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Contracts - Swaps | $— | $(366215) | $— | $(366215) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Contracts - Collars | $— | $(348193) | $— | $(348193) |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurement at December 31, 2023** | **Fair Value Measurement at December 31, 2023** | **Fair Value Measurement at December 31, 2023** | **Fair Value Measurement at December 31, 2023** |
|  | Quoted<br>Prices in<br>Active<br>Markets<br>(Level 1) | Significant<br>Other<br>Observable<br>Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br>(Level 3) | Total Fair<br>Value |
|  Financial Assets (Liabilities): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Contracts - Swaps | $— | $1706042 | $— | $1706042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Contracts - Collars | $— | $1577545 | $— | $1577545 |

---

The following table presents impairments associated with certain assets that have been measured at fair value on a nonrecurring basis within Level 3 of the fair value hierarchy.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2024** | **2023** | **2023** |
|  | Fair Value | Impairment | Fair Value | Impairment |
|  Producing Properties <sup>(a)</sup> | $— | $24061 | $— | $— |

---

<sup>(a)</sup> At the end of each quarter, the Company assessed the carrying value of its producing properties for impairment if indicators of impairment existed at such time. If indicators of impairment exist, the Company utilizes estimates of future cash flows of proved properties or fair value (selling price) less cost to sell if the property is held for sale. Significant judgments and assumptions in these assessments include estimates of future natural gas, oil and NGL prices using a forward NYMEX curve adjusted for projected inflation, locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values. This table excludes impairments on properties that were written off in the amount of $28,612 and $38,533 for the years ended December 31, 2024 and 2023, respectively. 

At December 31, 2024 and December 31, 2023, the carrying values of cash and cash equivalents, receivables, and payables are considered to be representative of their respective fair values due to the short-term maturities of those instruments. Financial instruments include debt, which the valuation is classified as Level 2 as the carrying amount of the Company's revolving credit facility approximates fair value because the interest rates

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are reflective of market rates. The estimated current market interest rates are based primarily on interest rates currently being offered on borrowings of similar amounts and terms. In addition, no valuation input adjustments were considered necessary relating to nonperformance risk for the debt agreements.

<u>14. INFORMATION ON NATURAL GAS AND OIL PRODUCING ACTIVITIES</u> 

The natural gas and oil producing activities of the Company are conducted within the contiguous United States (principally in Oklahoma, Texas, Louisiana, Arkansas and North Dakota) and represent substantially all of the business activities of the Company.

The following table shows sales to major purchasers, by percentage, through various operators/purchasers during the years ended December 31, 2024 and 2023.

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Company A | 17% | 14% |
|  Company B | 9% | 13% |
|  Company C | 8% | 3% |

---

The loss of any of these major purchasers of natural gas, oil and NGL production could have a material adverse effect on the ability of the Company to produce and sell its natural gas, oil and NGL production.

<u>15. OPERATING SEGMENT</u> 

An operating segment is defined as a component of a public entity that engages in business activities and for which discrete financial information and operating results are available and regularly reviewed by the CODM in deciding how to allocate resources and assess performance. The Company's Chief Executive Officer has been determined to be its CODM. The CODM manages the Company's business activities in a single operating and reportable segment focused on managing the Company's mineral portfolio and growing its mineral positions in its core focus areas. The financial information and operating results, including net income and total assets, used by the CODM to allocate resources, assess performance, and make key operating decisions are the same as that which is reported by the Company on the Income Statement and Balance Sheet, and the CODM does not use further disaggregated expenses or assets in deciding how to allocate resources and assess performance.

<u>16. SUBSEQUENT EVENTS</u> 

Subsequent to December 31, 2024, the Company closed on the divestiture of 165,326 net mineral acres for approximately $8.0 million and paid down an additional $9.8 million in debt. Additionally, the Company announced a $0.04 per share quarterly dividend, payable on March 28, 2025, to stockholders of record on March 17, 2025.

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PHX Minerals Inc.

Supplementary Information

<u>SUPPLEMENTARY INFORMATION ON NATURAL GAS, OIL AND NGL RESERVES (UNAUDITED)</u>

**Aggregate Capitalized Costs** 

The aggregate amount of capitalized costs of natural gas and oil properties and related accumulated depreciation, depletion and amortization as of December 31, 2024 and December 31, 2023 is as follows:

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| | | |
|:---|:---|:---|
|  | **December 31,<br>2024** | **December 31,<br>2023** |
|  Producing properties | $223043942 | $209082847 |
|  Non-producing minerals | 50156199 | 56670341 |
|  Non-producing leasehold | 1650712 | 2150104 |
|  | 274850853 | 267903292 |
|  Accumulated depreciation, depletion and amortization | (122030459) | (113506928) |
|  Net capitalized costs | $152820394 | $154396364 |

---

**Costs Incurred** 

For the years ended December 31, 2024 and 2023, the Company incurred the following costs in natural gas and oil producing activities:

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Property acquisition costs | $7834849 | $30435595 |
|  Development costs | 94022 | 113967 |
|  | $7928871 | $30549562 |

---

**Estimated Quantities of Proved Natural Gas, Oil and NGL Reserves** 

The following unaudited information regarding the Company's natural gas, oil and NGL reserves is presented pursuant to the disclosure requirements promulgated by the SEC and the FASB*.*

Proved natural gas and oil reserves are those quantities of natural gas and oil which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible – from a given date forward, from known reservoirs, and under existing economic conditions, operating methods and government regulations – prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions. The project to extract the hydrocarbons must have commenced, or the operator must be reasonably certain that it will commence the project within a reasonable time. The area of the reservoir considered as proved includes: (i) the area identified by drilling and limited by fluid contacts, if any, and (ii) adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible natural gas or oil

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on the basis of available geoscience and engineering data. In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons as seen in a well penetration unless geoscience, engineering or performance data and reliable technology establishes a lower contact with reasonable certainty. Where direct observation from well penetrations has defined a highest known oil elevation and the potential exists for an associated natural gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering or performance data and reliable technology establish the higher contact with reasonable certainty. Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when: (i) successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based; and (ii) the project has been approved for development by all necessary parties and entities, including governmental entities.

The independent consulting petroleum engineering firm of Cawley, Gillespie and Associates, Inc. (CG&A) of Fort Worth, Texas, prepared the Company's natural gas, oil and NGL reserves estimates as of December 31, 2024 and December 31, 2023.

The Company's net proved natural gas, oil and NGL reserves, which are located in the contiguous United States, as of December 31, 2024 and December 31, 2023, have been estimated by the Company's Independent Consulting Petroleum Engineering Firm. Estimates of reserves were prepared by the use of appropriate geologic, petroleum engineering and evaluation principles and techniques that are in accordance with practices generally recognized by the petroleum industry as presented in the publication of the Society of Petroleum Engineers entitled "Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information (Revision as of February 19, 2007)." The method or combination of methods used in the analysis of each reservoir was tempered by experience with similar reservoirs, stage of development, quality and completeness of basic data and production history.

All of the reserve estimates are reviewed and approved by the Company's Vice President of Engineering. The Vice President of Engineering, and internal staff work closely with the Independent Consulting Petroleum Engineers to ensure the integrity, accuracy and timeliness of data furnished to them for their reserves estimation process. The Company provides historical information (such as ownership interest, gas and oil production, well test data, commodity prices, operating costs, handling fees and development costs) for all properties to the Independent Consulting Petroleum Engineers. Throughout the year, the Vice President of Engineering and internal staff meet regularly with representatives of the Independent Consulting Petroleum Engineers to review properties and discuss methods and assumptions.

Estimates of reserves were prepared by the use of appropriate geologic, petroleum engineering and evaluation principles and techniques that are in accordance with the reserves definitions of Rules 4–10(a) (1)–(32) of Regulation S–X of the SEC and with practices generally recognized by the petroleum industry as presented in the publication of the Society of Petroleum Engineers (SPE) entitled "Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information (revised June 2019) Approved by the SPE Board on 25 June 2019" and in Monograph 3 and Monograph 4 published by the Society of Petroleum Evaluation Engineers. The method or combination of methods used in the analysis of each reservoir was tempered by experience with similar reservoirs, stage of development, quality and completeness of basic data, and production history. Based on the current stage of field development, production performance, development plans and analyses of areas offsetting existing wells with test or production data, reserves were classified as proved. The proved undeveloped reserves were estimated for locations that have been permitted, are currently drilling, are drilled but not yet completed, or locations where the operator has indicated to the Company its intention to drill.

For the evaluation of unconventional reservoirs, a performance-based methodology integrating the appropriate geology and petroleum engineering data was utilized. Performance-based methodology primarily

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includes (1) production diagnostics, (2) decline-curve analysis, and (3) model-based analysis (if necessary, based on availability of data). Production diagnostics include data quality control, identification of flow regimes and characteristic well performance behavior. These analyses were performed for all well groupings (or type-curve areas). Characteristic rate-decline profiles from diagnostic interpretation were translated to modified hyperbolic rate profiles, including one or multiple b-exponent values followed by an exponential decline. Based on the availability of data, model-based analysis may be integrated to evaluate long-term decline behavior, the effect of dynamic reservoir and fracture parameters on well performance, and complex situations sourced by the nature of unconventional reservoirs. In the evaluation of undeveloped reserves, type-well analysis was performed using well data from analogous reservoirs for which more complete historical performance data were available.

Accordingly, these estimates should be expected to change, and such changes could be material and occur in the near term as future information becomes available.

Net quantities of proved, developed and undeveloped natural gas, oil and NGL reserves are summarized as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Proved Reserves | Proved Reserves | Proved Reserves | Proved Reserves |
|  | Natural<br>Gas<br>(MMcf) | Oil<br>(MBbls) | NGL<br>(MBbls) | Total<br>MMcfe |
|  December 31, 2022 | 61205 | 1372 | 1709 | 79689 |
|  Revisions of previous estimates | (4997) | 30 | (86) | (5335) |
|  Acquisitions | 7323 | 35 | 20 | 7653 |
|  Divestitures | (7296) | (340) | (145) | (10209) |
|  Extensions, discoveries and other additions | 7211 | 158 | 102 | 8778 |
|  Production | (7457) | (183) | (137) | (9379) |
|  December 31, 2023 | 55989 | 1072 | 1463 | 71197 |
|  Revisions of previous estimates | (4947) | 10 | (46) | (5209) |
|  Acquisitions | 2367 | 13 | 9 | 2499 |
|  Divestitures | (5) | (2) |  | (18) |
|  Extensions, discoveries and other additions | 3873 | 132 | 56 | 5049 |
|  Production | (7970) | (178) | (134) | (9841) |
|  December 31, 2024 | 49307 | 1047 | 1348 | 63677 |

---

The prices used to calculate reserves and future cash flows from reserves for natural gas, oil and NGL, respectively, were as follows: December 31, 2024 - $2.05/Mcf, $73.48/Bbl, $20.97/Bbl; December 31, 2023 - $2.67/Mcf, $76.85/Bbl, $21.98/Bbl; December 31, 2022 - $6.52/Mcf, $92.74/Bbl, $39.18/Bbl.

The changes in reserves at December 31, 2023, as compared to December 31, 2022, are attributable to:

Revisions of previous estimates from December 31, 2022 to December 31, 2023 that were primarily the result of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Negative pricing revisions of 4.8 Bcfe due to natural gas and oil wells reaching their economic limits earlier
than was projected in 2022 due to lower commodity prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Negative performance revisions of 0.5 Bcfe principally due to steeper decline and lower than expected volumes in
wells located in an area with gas takeaway constraints located in the Haynesville Shale.

Acquisitions and divestitures were the result of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The sale of 10.2 Bcfe proved developed, consisting predominately of working interest properties in the Eagle Ford
Shale play in Texas and the Arkoma Stack play and Western Anadarko Basin in Oklahoma.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The acquisition of 7.7 Bcfe, predominately of royalty interest properties in the active drilling programs of the
Haynesville Shale play in east Texas and western Louisiana and the Mississippi and Woodford Shale intervals in the SCOOP play in the Ardmore basin of Oklahoma, of which 3.4 Bcfe were proved developed and 4.3 Bcfe were proved undeveloped.

Extensions, discoveries and other additions from December 31, 2022 to December 31, 2023 that are principally attributable to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reserve extensions, discoveries and other additions of 8.8 Bcfe (comprised of 1.0 Bcfe proved developed and 7.8
Bcfe proved undeveloped reserves) principally resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The Company's royalty interest ownership in the ongoing development of unconventional natural gas,
utilizing horizontal drilling, in the Haynesville Shale play of East Texas and Western Louisiana.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The Company's royalty interest ownership in the ongoing development of unconventional natural gas, oil
and NGL utilizing horizontal drilling in the Mississippi and Woodford Shale intervals in the SCOOP play in the Ardmore basin of Oklahoma.

And production of 9.4 Bcfe from the Company's natural gas and oil properties.

The changes in reserves at December 31, 2024, as compared to December 31, 2023, are attributable to:

Revisions of previous estimates from December 31, 2023 to December 31, 2024 that were primarily the result of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Negative pricing revisions of 4.9 Bcfe primarily due to natural gas and oil wells reaching their economic limits
earlier than was projected in 2023 due to lower commodity prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Negative performance revisions of 0.3 Bcfe principally due to a pad of working interest wells where production
did not return to prior rates post workover.

Acquisitions and divestitures were the result of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The acquisition of 2.5 Bcfe, predominately of royalty interest properties in the active drilling programs of the
Haynesville Shale play in east Texas and western Louisiana and the Mississippi and Woodford Shale intervals in the SCOOP play in the Ardmore basin of Oklahoma, of which 1.2 Bcfe were proved developed and 1.3 Bcfe were proved undeveloped.

Extensions, discoveries and other additions from December 31, 2023 to December 31, 2024 that are principally attributable to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reserve extensions, discoveries and other additions of 5.0 Bcfe (comprised of 2.0 Bcfe proved developed and 3.0
Bcfe proved undeveloped reserves) principally resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The Company's royalty interest ownership in the ongoing development of unconventional natural gas,
utilizing horizontal drilling, in the Haynesville Shale play of East Texas and Western Louisiana.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The Company's royalty interest ownership in the ongoing development of unconventional natural gas, oil
and NGL utilizing horizontal drilling in the Mississippi and Woodford Shale intervals in the SCOOP play in the Ardmore basin of Oklahoma.

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And production of 9.8 Bcfe from the Company's natural gas and oil properties.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Proved Developed Reserves | Proved Developed Reserves | Proved Developed Reserves | Proved Undeveloped Reserves | Proved Undeveloped Reserves | Proved Undeveloped Reserves |
|  | Natural Gas<br>(MMcf) | Oil<br>(MBbls) | NGL<br>(MBbls) | Natural Gas<br>(MMcf) | Oil<br>(MBbls) | NGL<br>(MBbls) |
|  December 31, 2023 | 44480 | 937 | 1363 | 11509 | 134 | 100 |
|  December 31, 2024 | 42549 | 948 | 1322 | 6758 | 99 | 26 |

---

The following details the changes in proved undeveloped reserves for 2024 (MMcfe):

---

| | |
|:---|:---|
|  Beginning proved undeveloped reserves | 12914 |
|  Proved undeveloped reserves transferred to proved developed | (8502) |
|  Revisions | (1152) |
|  Extensions and discoveries | 2985 |
|  Sales |  |
|  Purchases | 1261 |
|  Ending proved undeveloped reserves | 7506 |

---

During fiscal year 2024, total net PUD reserves decreased by 5.4 Bcfe. In fiscal year 2024, a total of 8.5 Bcfe (66% of the beginning balance) was transferred to proved developed. This decrease was partially offset by 3.1 Bcfe (24% of the beginning balance) of positive changes to PUD reserves consisting of acquisitions of 1.3 Bcfe in the Haynesville Shale in Texas and Louisiana and Meramec and Woodford SCOOP play in Oklahoma, additions and extensions of 3.0 Bcfe within the active drilling program areas of (i) the Haynesville Shale in Texas and Louisiana, (ii) the SCOOP Mississippi and Woodford in Oklahoma, (iii) the STACK Meramec and Woodford in Oklahoma, (iv) the Arkoma Woodford in Oklahoma and (v) the Bakken in North Dakota, and negative revisions of 1.2 Bcfe primarily due to permit expirations, as our PUD reserves consist only of wells that are permitted, drilling, or waiting on completion.

The Company anticipates that all current PUD locations will be drilled and converted to PDP within five years of the date they were added. However, PUD locations and associated reserves, which are no longer projected to be drilled within five years from the date they were added to PUD reserves, will be removed as revisions at the time that determination is made. In the event that there are undrilled PUD locations at the end of the five-year period, the Company will remove the reserves associated with those locations from proved reserves as revisions.

**Standardized Measure of Discounted Future Net Cash Flows** 

Accounting Standards prescribe guidelines for computing a standardized measure of future net cash flows and changes therein relating to estimated proved reserves. The Company has followed these guidelines, which are briefly discussed below.

Future cash inflows and future production and development costs are determined by applying the trailing unweighted 12-month arithmetic average of the first-day-of-the-month individual product prices and year-end costs to the estimated quantities of natural gas, oil and NGL to be produced. Actual future prices and costs may be materially higher or lower than the unweighted 12-month arithmetic average of the first-day-of-the-month individual product prices and year-end costs used. For each year, estimates are made of quantities of proved reserves and the future periods during which they are expected to be produced, based on continuation of the economic conditions applied for such year.

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Estimated future income taxes are computed using current statutory income tax rates, including consideration for the current tax basis of the properties and related carry forwards, giving effect to permanent differences and tax credits. The resulting future net cash flows are reduced to present value amounts by applying a 10% annual discount factor. The assumptions used to compute the standardized measure are those prescribed by the FASB and, as such, do not necessarily reflect the Company's expectations of actual revenue to be derived from those reserves nor their present worth. The limitations inherent in the reserve quantity estimation process, as discussed previously, are equally applicable to the standardized measure computations since these estimates affect the valuation process.

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Future cash inflows | $206317618 | $264083714 |
|  Future production costs | (60622892) | (67959181) |
|  Future development and asset retirement costs | (1307480) | (1224333) |
|  Future income tax expense | (7979227) | (18437730) |
|  Future net cash flows | 136408019 | 176462470 |
|  10% annual discount | (60153131) | (76071084) |
|  Standardized measure of discounted future net cash flows | $76254888 | $100391386 |

---

Changes in the standardized measure of discounted future net cash flows are as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Beginning of year | $100391386 | $197489635 |
|  Changes resulting from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales of natural gas, oil and NGL, net of production costs | (26245153) | (29380772) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in sales prices and production costs | (16835611) | (112688455) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in future development and asset retirement costs | (41631) | 171076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Extensions and discoveries | 9694126 | 13586306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revisions of quantity estimates | (8661885) | (16554366) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions (divestitures) of reserves-in-place | 2540234 | (19144486) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion of discount | 11001794 | 24132484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in income taxes | 6239421 | 34208654 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in timing and other, net | (1827793) | 8571310 |
|  Net change | (24136498) | (97098249) |
|  End of year | $76254888 | $100391386 |

---

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PHX MINERALS INC.

CONDENSED BALANCE SHEETS

---

| | | |
|:---|:---|:---|
|  | March 31, 2025 | December 31, 2024 |
| **Assets** | (unaudited) |  |
|  Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $2536133 | $2242102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas, oil, and NGL sales receivables (net of $0 allowance for uncollectable accounts) | 6577696 | 6128954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refundable income taxes | 80621 | 328560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 721062 | 857317 |
|  Total current assets | 9915512 | 9556933 |
|  Properties and equipment at cost, based on successful efforts accounting: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Producing natural gas and oil properties | 223655459 | 223043942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-producing natural gas and oil properties | 45544346 | 51806911 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 1361064 | 1361064 |
|  | 270560869 | 276211917 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less accumulated depreciation, depletion and amortization | (120293049) | (122835668) |
|  Net properties and equipment | 150267820 | 153376249 |
|  Operating lease right-of-use assets | 392263 | 429494 |
|  Other, net | 509837 | 553090 |
|  Total assets | $161085432 | $163915766 |
|  **Liabilities and Stockholders' Equity** |  |  |
|  Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $656711 | $804693 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative contracts, net | 3178706 | 316336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of operating lease liability | 252436 | 247786 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities and other | 1420856 | 1866930 |
|  Total current liabilities | 5508709 | 3235745 |
|  Long-term debt | 19750000 | 29500000 |
|  Deferred income taxes, net | 8318416 | 7286315 |
|  Asset retirement obligations | 1098536 | 1097750 |
|  Derivative contracts, net | 480401 | 398072 |
|  Operating lease liability, net of current portion | 383070 | 448031 |
|  Total liabilities | 35539132 | 41965913 |
|  Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Stock, $0.01666 par value; 75,000,000 shares authorized and 36,796,496 issued at March 31, 2025; 75,000,000 shares authorized and 36,796,496 issued at December 31, 2024 | 613030 | 613030 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital in excess of par value | 44749269 | 44029492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred directors' compensation | 1313492 | 1323760 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 79940318 | 77073332 |
|  | 126616109 | 123039614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less treasury stock, at cost; 274,478 shares at March 31, 2025, and 279,594 shares at December 31, 2024 | (1069809) | (1089761) |
|  Total stockholders' equity | 125546300 | 121949853 |
|  Total liabilities and stockholders' equity | $161085432 | $163915766 |

---

(The accompanying notes are an integral part of these condensed financial statements.)

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PHX MINERALS INC.

CONDENSED STATEMENTS OF INCOME

---

| | | |
|:---|:---|:---|
|  | Three Months Ended March 31, | Three Months Ended March 31, |
|  | 2025 | 2024 |
| Revenues: | (unaudited) | (unaudited) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas, oil and NGL sales | $10433287 | $7090208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease bonuses and rental income | 328203 | 151718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains (losses) on derivative contracts | (3163178) | 627492 |
|  | $7598312 | $7869418 |
|  Costs and expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease operating expenses | 273713 | 332409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transportation, gathering and marketing | 1103966 | 843504 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Production and ad valorem taxes | 422787 | 392327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion and amortization | 2430207 | 2356326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 452051 | 714886 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 3754248 | 3347037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses (gains) on asset sales and other | (6519747) | 24212 |
|  Total costs and expenses | 1917225 | 8010701 |
|  Income (loss) before provision for income taxes | 5681087 | (141283) |
|  Provision for income taxes | 1297205 | 42332 |
|  Net income (loss) | $4383882 | $(183615) |
|  Basic earnings (loss) per common share (Note 4) | $0.12 | $(0.01) |
|  Diluted earnings (loss) per common share (Note 4) | $0.12 | $(0.01) |
|  Weighted average shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 36808766 | 36303392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 38009410 | 36303392 |
|  Dividends per share of common stock paid in period | $0.0400 | $0.0300 |

---

(The accompanying notes are an integral part of these condensed financial statements.)

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PHX MINERALS INC.

STATEMENTS OF STOCKHOLDERS' EQUITY

Three Months Ended March 31, 2025

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | Capital in<br>Excess of<br>Par Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  | Common Stock | Common Stock | Capital in<br>Excess of<br>Par Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  | Shares | Amount | Capital in<br>Excess of<br>Par Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  Balances at December 31, 2024 | 36796496 | $613030 | $44029492 | $1323760 | $77073332 | (279594) | $(1089761) | $121949853 |
|  Net income (loss) |  |  |  |  | 4383882 |  |  | 4383882 |
|  Restricted stock award expense |  |  | 681723 |  |  |  |  | 681723 |
|  Dividends declared |  |  |  |  | (1516896) |  |  | (1516896) |
|  Distribution of deferred directors' compensation |  |  | 38054 | (58006) |  | 5116 | 19952 |  |
|  Increase in deferred directors' compensation charged to expense |  |  |  | 47738 |  |  |  | 47738 |
|  Balances at March 31, 2025 | 36796496 | $613030 | $44749269 | $1313492 | $79940318 | (274478) | $(1069809) | $125546300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(unaudited) |  |  |  |  |  |  |  |  |

---

Three Months Ended March 31, 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | Capital in<br>Excess of<br>Par Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  | Common Stock | Common Stock | Capital in<br>Excess of<br>Par Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  | Shares | Amount | Capital in<br>Excess of<br>Par Value | Deferred<br>Directors'<br>Compensation | Retained<br>Earnings | Treasury<br>Shares | Treasury<br>Stock | Total |
|  Balances at December 31, 2023 | 36121723 | $601788 | $41676417 | $1487590 | $80022839 | (131477) | $(557220) | $123231414 |
|  Net income (loss) |  |  |  |  | (183615) |  |  | (183615) |
|  Restricted stock award expense |  |  | 656656 |  |  |  |  | 656656 |
|  Dividends declared |  |  |  |  | (1121314) |  |  | (1121314) |
|  Distribution of deferred directors' compensation |  |  | 70344 | (107199) |  | 8692 | 36855 |  |
|  Increase in deferred directors' compensation charged to expense |  |  |  | 45132 |  |  |  | 45132 |
|  Balances at March 31, 2024 | 36121723 | $601788 | $42403417 | $1425523 | $78717910 | (122785) | $(520365) | $122628273 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(unaudited) |  |  |  |  |  |  |  |  |

---

(The accompanying notes are an integral part of these condensed financial statements.)

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PHX MINERALS INC.

CONDENSED STATEMENTS OF CASH FLOWS

---

| | | |
|:---|:---|:---|
|  | Three Months Ended March 31, | Three Months Ended March 31, |
|  | 2025 | 2024 |
| **Operating Activities** | (unaudited) | (unaudited) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $4383882 | $(183615) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion and amortization | 2430207 | 2356326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for deferred income taxes | 1032101 | 25332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain from leasing fee mineral acreage | (328203) | (151718) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from leasing fee mineral acreage | 332331 | 151718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (gain) loss on sales of assets | (6625686) | (66500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Directors' deferred compensation expense | 47738 | 45132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total (gain) loss on derivative contracts | 3163178 | (627492) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash receipts (payments) on settled derivative contracts | (218479) | 1669309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stock award expense | 681723 | 656656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 25333 | 35731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash provided (used) by changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas, oil and NGL sales receivables | (448742) | 1216455 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 202745 | 207497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | (145867) | 67986 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes receivable | 247939 | 378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-current assets | 58642 | 56338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | (562402) | (212882) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total adjustments | (107442) | 5430266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 4276440 | 5246651 |
|  **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures | (6336) | (7440) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of minerals and overriding royalty interests | (630296) | (1406248) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net proceeds from sales of assets | 7865103 | 66500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | 7228471 | (1347188) |
|  **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings under Credit Facility |  | 1000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments of loan principal | (9750000) | (3000000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments of dividends | (1460880) | (1079968) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | (11210880) | (3079968) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in cash and cash equivalents | 294031 | 819495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents at beginning of period | 2242102 | 806254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents at end of period | $2536133 | $1625749 |
|  **Supplemental Disclosures of Cash Flow Information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest paid (net of capitalized interest) | $503184 | $733799 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid (net of refunds received) | $17165 | $16623 |
|  **Supplemental Schedule of Noncash Investing and Financing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends declared and unpaid | $56016 | $41346 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross additions to properties and equipment | $568026 | $1406743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in accounts receivable for properties and equipment additions | 68606 | 6945 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures and acquisitions | $636632 | $1413688 |

---

(The accompanying notes are an integral part of these condensed financial statements.)

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PHX MINERALS INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1: Basis of Presentation and Accounting Principles

*Basis of Presentation* 

The accompanying unaudited condensed financial statements of PHX Minerals Inc. have been prepared in accordance with the instructions to Form 10-Q as prescribed by the SEC. Management believes that all adjustments necessary for a fair presentation of the financial position and results of operations and cash flows for the periods have been included. All such adjustments are of a normal recurring nature. The results are not necessarily indicative of those to be expected for a full fiscal year.

Certain amounts and disclosures have been condensed or omitted from these financial statements pursuant to the rules and regulations of the SEC. Therefore, these condensed financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Unless indicated otherwise or the context requires, the terms "we," "our," "us," "PHX" or the "Company" refer to PHX Minerals Inc.

Accounting standards that have been issued or proposed by the FASB, or other standards-setting bodies, that do not require adoption until a future date are not expected to have a material impact on the Company's financial statements upon adoption.

NOTE 2: Revenues

***Revenues from contracts with customers***

*Natural gas, oil and NGL sales* 

Sales of natural gas, oil and NGL are recognized when production is sold to a purchaser and control of the product has been transferred. Oil is priced on the delivery date based upon prevailing prices published by purchasers with certain adjustments related to oil quality and physical location. The price the Company receives for natural gas and NGL is tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality and heat content of natural gas, and prevailing supply and demand conditions, so that the price of natural gas fluctuates to remain competitive with other available natural gas supplies. These market indices are determined on a monthly basis. Each unit of commodity is considered a separate performance obligation; however, as consideration is variable, the Company utilizes the variable consideration allocation exception permitted under the standard to allocate the variable consideration to the specific units of commodity to which they relate.

***Disaggregation of natural gas, oil and NGL revenues***

The following table presents the disaggregation of the Company's natural gas, oil and NGL revenues for the three months ended March 31, 2025 and 2024:

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| | | | |
|:---|:---|:---|:---|
|  | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2025 |
|  | Royalty Interest | Working Interest | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas revenue | $6038625 | $611235 | $6649860 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil revenue | 2711565 | 275141 | 2986706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGL revenue | 538234 | 258487 | 796721 |
|  Natural gas, oil and NGL sales | $9288424 | $1144863 | $10433287 |

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| | | | |
|:---|:---|:---|:---|
|  | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2024 |
|  | Royalty Interest | Working Interest | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas revenue | $3201897 | $363777 | $3565674 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil revenue | 2518321 | 313875 | 2832196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGL revenue | 456056 | 236282 | 692338 |
|  Natural gas, oil and NGL sales | $6176274 | $913934 | $7090208 |

---

***Prior-period performance obligations and contract balances***

The Company records revenue in the month production is delivered to the purchaser. As a non-operator, the Company has limited visibility into the timing of when new wells start producing, and production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The expected sales volumes and prices for these properties are estimated and recorded within the natural gas, oil and NGL sales receivables line item on the Company's balance sheets. The difference between the Company's estimates and the actual amounts received for natural gas, oil and NGL sales is recorded in the quarter that payment is received from the third party. For the quarters ended March 31, 2025 and 2024, revenue recognized during the reporting period related to performance obligations satisfied in prior reporting periods for existing wells was considered a change in estimate.

As noted above, as a non-operator, there are instances when the Company is limited by the information operators provide. Through cash received on new wells, in the quarters ended March 31, 2025 and 2024, the Company identified several producing properties on its minerals that had production dates prior to the quarters ended March 31, 2025 and 2024. Estimates of the natural gas and oil sales related to those properties were made and are reflected in the natural gas, oil and NGL sales on the Company's Statements of Income and on the Company's Balance Sheets in natural gas, oil and NGL sales receivables.

In connection with obtaining more relevant information on new wells on Company acreage during the quarters ended March 31, 2025 and 2024, the Company recorded a change in estimate for new wells to natural gas, oil and NGL sales totaling $204,141 for the quarter ended March 31, 2025, all of which related to the production periods during the fiscal year ended December 31, 2024, and the Company recorded a change in estimate for new wells to natural gas, oil and NGL sales totaling $447,284 for the quarter ended March 31, 2024, of which $23,159 related to the production periods before January 1, 2023 and $424,125 related to the fiscal year ended December 31, 2023.

***Lease bonus revenue***

The Company generates lease bonus revenue by leasing its mineral interests to exploration and production companies. A lease agreement represents the Company's contract with a third party and generally conveys the rights to any natural gas, oil or NGL discovered, grants the Company a right to a specified royalty interest and requires that drilling and completion operations commence within a specified time period. Control is transferred to the lessee and the Company has satisfied its performance obligation when the lease agreement is executed, such that revenue is recognized when the lease bonus payment is received. The Company accounts for its lease bonuses as conveyances in accordance with the guidance set forth in ASC 932 (Extractive Activities—Oil and Gas), and upon leasing, it recognizes the lease bonus as a cost recovery with any excess above its cost basis in the mineral interests being treated as a gain. The excess of lease bonus above the mineral interests basis is shown in the lease bonuses and rental income line item on the Company's Statements of Income.

***Natural gas and oil derivative contracts***

See Note 9 for discussion of the Company's accounting for derivative contracts.

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NOTE 3: Income Taxes

The Company's provision for income taxes differs from the statutory rate primarily due to estimated federal and state benefits generated from excess federal and Oklahoma percentage depletion, which are permanent tax benefits. Excess percentage depletion, both federal and Oklahoma, can only be taken in the amount that exceeds cost depletion, which is calculated on a unit-of-production basis. The Company completes an evaluation of the expected realization of the Company's gross deferred tax assets each quarter. Excess tax benefits and deficiencies of stock-based compensation are recognized as provision (benefit) for income taxes in the Company's Statements of Income.

Both excess federal percentage depletion, which is limited to certain production volumes and by certain income levels, and excess Oklahoma percentage depletion, which has no limitation on production volume, reduce estimated taxable income or add to estimated taxable loss projected for any year. The federal and Oklahoma excess percentage depletion estimates will be updated throughout the year until finalized with detailed well-by-well calculations at fiscal year-end. Depending upon whether a provision for income taxes or a benefit for income taxes is expected for a year, federal and Oklahoma excess percentage depletion will either decrease or increase the effective tax rate, respectively. The benefits of federal and Oklahoma excess percentage depletion and excess tax benefits and deficiencies of stock-based compensation are not directly related to the amount of pre-tax income (loss) recorded in a period. Accordingly, in periods where a recorded pre-tax income or loss is relatively small, the proportional effect of these items on the effective tax rate may be significant.

As of March 31, 2025, the Company completed an evaluation of the expected realization of its gross deferred tax assets. As a result of its evaluation, the Company concluded a valuation allowance was required for certain state deferred tax assets, and for the quarter ended March 31, 2025, there was no change in the Company's valuation allowance of $9,056 from December 31, 2024. The Company's effective tax rate for the three months ended March 31, 2025 was a 23% provision as compared to a (30%) provision for the three months ended March 31, 2024. The change in effective tax rate resulted primarily from the increase in net income in the quarter ended March 31, 2025.

NOTE 4: Basic and Diluted Earnings (Loss) Per Common Share ("EPS")

Basic earnings (loss) per share of Common Stock is calculated using net income (loss) divided by the weighted average number of voting shares of Common Stock outstanding, including unissued, vested directors' deferred compensation shares, during the period. Diluted earnings (loss) per share of Common Stock is calculated using net income (loss) divided by the weighted average number of voting shares of Common Stock outstanding, including unissued, vested directors' deferred compensation shares and any other potentially dilutive shares of Common Stock, during the period. There were no participating securities at March 31, 2025.

For the three months ended March 31, 2025 and 2024, the Company excluded restricted stock in the diluted EPS calculation that would have been antidilutive. The average number of restricted stock excluded from the diluted EPS was 849,439 and 946,350 for the three months ended March 31, 2025 and 2024, respectively.

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The following table presents a reconciliation of the components of basic and diluted EPS.

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| | | |
|:---|:---|:---|
|  | Three Months Ended March 31, | Three Months Ended March 31, |
|  | 2025 | 2024 |
|  Basic EPS |  |  |
|  Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic net income (loss) | $4383882 | $(183615) |
|  Denominator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares | 36521563 | 35998651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unissued, directors' deferred compensation shares | 287203 | 304741 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic weighted average shares outstanding | 36808766 | 36303392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic EPS | $0.12 | $(0.01) |
|  Diluted EPS |  |  |
|  Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic net income (loss) | $4383882 | $(183615) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted net income (loss) | 4383882 | (183615) |
|  Denominator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic weighted average shares outstanding | 36808766 | 36303392 |
|  Effects of dilutive securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unvested restricted stock | 1200644 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted weighted average shares outstanding | 38009410 | 36303392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted EPS | $0.12 | $(0.01) |

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NOTE 5: Long-Term Debt

The Company has a $100,000,000 credit facility (the "Credit Facility") with a syndicate of banks led by Independent Bank pursuant to a credit agreement entered into in September 2021 (as amended, the "Credit Agreement"). The Credit Facility had a borrowing base of $50,000,000 and a maturity date of September 1, 2028 as of March 31, 2025. The Credit Facility is secured by the Company's personal property and at least 75% of the total value of the proved, developed and producing oil and gas properties. The interest rate is based on either (a) SOFR plus an applicable margin ranging from 2.750% to 3.750% per annum based on the Company's Borrowing Base Utilization or (b) the greater of (1) the Prime Rate in effect for such day, or (2) the overnight cost of federal funds as announced by the U.S. Federal Reserve System in effect on such day plus one-half of one percent (0.50%), plus, in each case, an applicable margin ranging from 1.750% to 2.750% per annum based on the Company's Borrowing Base Utilization. The election of Independent Bank prime or SOFR is at the Company's discretion. The interest rate spread from Independent Bank prime or SOFR will be charged based on the ratio of the loan balance to the borrowing base. The interest rate spread from SOFR or the prime rate increases as a larger percent of the borrowing base is advanced. At March 31, 2025, the effective interest rate was 7.54%.

The Company's debt is recorded at the carrying amount on its balance sheets. The carrying amount of the debt under the Credit Facility approximates fair value because the interest rates are reflective of market rates. Debt issuance costs associated with the Credit Facility are presented in "Other, net" on the Company's balance sheets. Total debt issuance cost, net of amortization, as of March 31, 2025 was $303,373. The debt issuance cost is amortized over the life of the Credit Facility.

Determinations of the borrowing base under the Credit Facility are made semi-annually (usually in June and December) or whenever the lending banks, in their sole discretion, believe that there has been a material change

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in the value of the Company's natural gas and oil properties. The Credit Facility contains customary covenants which, among other things, require periodic financial and reserve reporting and place certain restrictions on the Company's ability to incur debt, grant liens, make fundamental changes and engage in certain transactions with affiliates. The Credit Facility also restricts the Company's ability to make certain restricted payments if before or after the Restricted Payment (i) the Available Commitment is less than ten percent (10%) of the Borrowing Base or (ii) the Leverage Ratio on a pro forma basis is greater than 2.50 to 1.00. In addition, the Company is required to maintain certain financial ratios, a current ratio (as described in the Credit Facility) of no less than 1.0 to 1.0 and a funded debt to EBITDAX of no more than 3.5 to 1.0 based on the trailing twelve months. At March 31, 2025, the Company was in compliance with the covenants of the Credit Facility, had $19,750,000 in outstanding borrowings and had $30,250,000 available for borrowing under the Credit Facility. All capitalized terms in this description of the Credit Facility that are not otherwise defined in this Form 10-Q have the meaning assigned to them in the Credit Agreement.

NOTE 6: Deferred Compensation Plan for Non-Employee Directors

Annually, non-employee directors may elect to be included in the Deferred Compensation Plan for Non-Employee Directors. This plan provides that each outside director may individually elect to be credited with future unissued shares of Company Common Stock (each such share, a "Deferred Stock Unit") rather than cash for all or a portion of their annual retainers and Board and committee meeting fees. Directors receive dividends on Deferred Stock Units in the form of additional Deferred Stock Units. These unissued shares are recorded to each director's deferred compensation account at the closing market price of the shares on the payment dates of the annual retainers and on the dividend payment date, as applicable. Only upon a director's retirement, termination or death or a change-in-control of the Company will the shares representing Deferred Stock Units recorded for such director be issued under this plan. Directors may elect to receive shares, when issued, over annual time periods of up to ten years. The promise to issue such shares in the future is an unsecured obligation of the Company.

NOTE 7: Long Term Incentive Plan

Compensation expense for restricted stock awards is recognized in G&A. Forfeitures of awards are recognized at the time of forfeiture. The following table summarizes the Company's pre-tax compensation expense for the three months ended March 31, 2025 and 2024 related to the Company's market-based and time-based restricted stock:

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
|  | 2025 | 2024 |
|  Market-based, restricted stock | $511350 | $480676 |
|  Time-based, restricted stock | 170373 | 175980 |
|  Total compensation expense | $681723 | $656656 |

---

A summary of the Company's unrecognized compensation cost for its unvested market-based and time-based restricted stock and the weighted-average periods over which the compensation cost is expected to be recognized is shown in the following table:

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| | | |
|:---|:---|:---|
|  | As of March 31, 2025 | As of March 31, 2025 |
|  | Unrecognized<br>Compensation Cost | Weighted Average<br>Period (in years) |
|  Market-based, restricted stock | $2093970 | 1.87 |
|  Time-based, restricted stock | 910509 | 1.85 |
|  Total | $3004479 |  |

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NOTE 8: Properties and Equipment

*Acquisitions* 

The Company made the following property acquisitions during the three-month periods ended March 31, 2025 and 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| Quarter Ended | Net royalty<br>acres <sup>(1)(2)</sup> | Total Purchase<br>Price <sup>(1)</sup> | % Proved / %<br>Unproved | Area of Interest |
|  March 31, 2025 | 50 | $0.6 million | 90% /10% | SCOOP |
|  March 31, 2024 | 146 | $1.4 million | 5% /95% | SCOOP |

---

(1) Excludes subsequent closing adjustments and insignificant acquisitions.

(2) An estimated net royalty equivalent was used for the unleased minerals included in the net royalty acres.

All purchases made in the 2025 and 2024 quarters were for mineral and royalty acreage and were accounted for as asset acquisitions.

*Divestitures* 

The Company made the following property divestitures during the three-month periods ended March 31, 2025 and 2024. Revenue and expenses recognized between the effective date and closing date of divestitures are recorded in the Operating Activities section in the Statements of Cash Flows.

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| | | | | |
|:---|:---|:---|:---|:---|
| Quarter Ended | Net mineral acres<sup>(1)</sup>/<br> Wellbores<sup>(2)</sup> | Sale Price <sup>(3)</sup> | Gain/(Loss) <sup>(3)</sup> | Location |
|  March 31, 2025 |  |  |  |  |
|  | 165,326 acres | $7.9 million | $6.7 million | OK, AR, CO, FL, IN, KS, MT,<br>ND, NM, SD, TX |
|  March 31, 2024 |  |  |  |  |
|  | No significant divestitures |  |  |  |

---

(1) Number of net mineral acres sold.

(2) Number of gross wellbores associated with working interests sold.

(3) Excludes subsequent closing adjustments and insignificant divestitures.

*Natural Gas, Oil and NGL Reserves* 

Management considers the estimation of the Company's natural gas, oil and NGL reserves to be the most significant of its judgments and estimates. Changes in natural gas, oil and NGL reserve estimates affect the Company's calculation of DD&A, provision for retirement of assets and assessment of the need for asset impairments. On an annual basis, the Company's Independent Consulting Petroleum Engineer, with assistance from Company staff, prepares estimates of natural gas, oil and NGL reserves based on available geologic and seismic data, reservoir pressure data, core analysis reports, well logs, analogous reservoir performance history, production data and other available sources of engineering, geologic and geophysical information. Between periods in which reserves would normally be calculated, the Company updates the reserve calculations utilizing appropriate prices for the current period. The estimated natural gas, oil and NGL reserves were computed using the 12-month average price calculated as the unweighted arithmetic average of the first-day-of-the-month natural gas, oil and NGL price for each month within the 12-month period prior to the balance sheet date, held flat over the life of the properties. However, projected future natural gas, oil and NGL pricing assumptions are used by management to prepare estimates of natural gas, oil and NGL reserves and future net cash flows used in asset impairment assessments and in formulating management's overall operating decisions. Natural gas, oil and NGL prices are volatile, affected by worldwide production and consumption, and are outside the control of management.

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*Impairment* 

Company management monitors all long-lived assets, principally natural gas and oil properties, for potential impairment when circumstances indicate that the carrying value of the asset may be greater than its estimated future net cash flows. The evaluations involve significant judgment since the results are based on estimated future events, such as inflation rates; future drilling and completion costs; future sales prices for natural gas, oil and NGL; future production costs; estimates of future natural gas, oil and NGL reserves to be recovered and the timing thereof; the economic and regulatory climates; and other factors. The need to test a property for impairment may result from significant declines in sales prices or unfavorable adjustments to natural gas, oil and NGL reserves. Between periods in which reserves would normally be calculated, the Company updates the reserve calculations to reflect any material changes since the prior report was issued and then utilizes updated projected future price decks current with the period. For the three months ended March 31, 2025 and 2024, management's assessment resulted in no impairment provisions on producing properties.

NOTE 9: Derivatives

The Company has entered into commodity price derivative agreements, including fixed swap contracts and costless collar contracts. These instruments are intended to reduce the Company's exposure to short-term fluctuations in the price of natural gas and oil. Fixed swap contracts set a fixed price and provide payments to the Company if the index price is below the fixed price, or require payments by the Company if the index price is above the fixed price. Collar contracts set a fixed floor price and a fixed ceiling price and provide payments to the Company if the index price falls below the floor or require payments by the Company if the index price rises above the ceiling. These contracts cover only a portion of the Company's natural gas and oil production and provide only partial price protection against declines in natural gas and oil prices. The Company's derivative contracts are currently with BP Energy Company ("BP"). The derivative contracts with BP are secured under the Credit Facility with Independent Bank (see Note 5: Long-Term Debt). The derivative instruments have settled or will settle based on the prices below:

<u>Derivative Contracts in Place as of March 31, 2025</u> 

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| | | | |
|:---|:---|:---|:---|
| Calendar Period | Contract total volume | Index | Contract average price |
|  Natural gas costless collars |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 | 815,000 Mmbtu | NYMEX Henry Hub | $3.29 floor / $4.36 ceiling |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | 1,245,000 Mmbtu | NYMEX Henry Hub | $3.29 floor / $4.19 ceiling |
|  Natural gas fixed price swaps |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 | 1,620,000 Mmbtu | NYMEX Henry Hub | $3.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | 215,000 Mmbtu | NYMEX Henry Hub | $3.44 |
|  Oil fixed price swaps |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 | 46,600 Bbls | NYMEX WTI | $69.55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | 15,000 Bbls | NYMEX WTI | $68.78 |

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<u>Derivative Settlements during the Three Months Ended March 31, 2025</u> 

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| | | | | |
|:---|:---|:---|:---|:---|
| Contract period <sup>(2)</sup> | Monthly<br>Production volume | Index | Contract price | Settlement<br>(paid) received |
|  Natural gas costless collars |  |  |  |  |
|  January - March 2025 | 90,000 Mmbtu | NYMEX Henry Hub | $3.25 floor / $5.25 ceiling | $— |
|  January - April 2025 | 30,000 Mmbtu | NYMEX Henry Hub | $3.00 floor / $5.00 ceiling | $— |
|  January - March 2025 | 30,000 Mmbtu | NYMEX Henry Hub | $3.50 floor / $5.15 ceiling | $— |
|  January - March 2025 | 25,000 Mmbtu | NYMEX Henry Hub | $3.00 floor / $3.37 ceiling | $(21125) |
|  January 2025 | 55,000 Mmbtu | NYMEX Henry Hub | $3.50 floor / $4.40 ceiling | $— |
|  February 2025 | 25,000 Mmbtu | NYMEX Henry Hub | $3.50 floor / $4.40 ceiling | $— |
|  March 2025 | 35,000 Mmbtu | NYMEX Henry Hub | $3.50 floor / $4.40 ceiling | $— |
|  April 2025 | 55,000 Mmbtu | NYMEX Henry Hub | $3.00 floor / $3.75 ceiling | $(11000) |
|  Natural gas fixed price swaps |  |  |  |  |
|  January - March 2025 | 60,000 Mmbtu | NYMEX Henry Hub | $4.16 | $91500 |
|  January - March 2025 | 50,000 Mmbtu | NYMEX Henry Hub | $3.51 | $(21250) |
|  April 2025 | 100,000 Mmbtu | NYMEX Henry Hub | $3.28 | $(67000) |
|  April 2025 | 125,000 Mmbtu | NYMEX Henry Hub | $3.00 | $(118125) |
|  April 2025 | 25,000 Mmbtu | NYMEX Henry Hub | $3.23 | $(18000) |
|  Oil costless collars |  |  |  |  |
|  December 2024 | 500 Bbls | NYMEX WTI | $67.00 floor / $77.00 ceiling | $— |
|  Oil fixed price swaps |  |  |  |  |
|  December 2024 | 2,000 Bbls | NYMEX WTI | $69.50 | $(396) |
|  January - February 2025 | 500 Bbls | NYMEX WTI | $69.50 | $(3653) |
|  December 2024 | 500 Bbls | NYMEX WTI | $74.94 | $2621 |
|  January 2025 | 500 Bbls | NYMEX WTI | $74.48 | $(309) |
|  February 2025 | 500 Bbls | NYMEX WTI | $74.10 | $1445 |
|  December 2024 - February 2025 | 1,000 Bbls | NYMEX WTI | $68.80 | $(9605) |
|  December 2024 - February 2025 | 1,600 Bbls | NYMEX WTI | $64.80 | $(34568) |
|  January - February 2025 | 2,000 Bbls | NYMEX WTI | $70.90 | $(9014) |
|  |  |  | Total (paid) received | $(218479) |

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(1) Natural gas derivatives settle at first of the month pricing and oil derivatives settle at a monthly daily
average.

(2) Certain April 2025 contracts were settled on March 31, which did not result in additional gains (losses)
on derivative contracts on the Statements of Income.

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The Company has elected not to complete all of the documentation requirements necessary to permit these derivative contracts to be accounted for as cash flow hedges. The Company's fair value of derivative contracts was a net liability of $3,659,107 as of March 31, 2025, and a net liability of $714,408 as of December 31, 2024. Cash receipts or payments in the following table reflect the gain or loss on derivative contracts which settled during the respective periods, and the non-cash gain or loss reflect the change in fair value of derivative contracts as of the end of the respective periods.

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br> March 31, | Three Months Ended<br> March 31, |
|  | 2025 | 2024 |
|  Cash received (paid) on derivative contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas costless collars | $(32125) | $1107575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas fixed price swaps | (132875) | 555248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil costless collars |  | (1219) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil fixed price swaps | (53479) | 7705 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash received (paid) on derivative contracts, net | $(218479) | $1669309 |
|  Non-cash gain (loss) on derivative contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas costless collars | $(1210667) | $(759269) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas fixed price swaps | (1798121) | 198016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil costless collars |  | (94898) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil fixed price swaps | 64089 | (385666) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash gain (loss) on derivative contracts, net | $(2944699) | $(1041817) |
|  Gains (losses) on derivative contracts, net | $(3163178) | $627492 |

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The fair value amounts recognized for the Company's derivative contracts executed with the same counterparty under a master netting arrangement may be offset. The Company has the choice of whether or not to offset, but that choice must be applied consistently. A master netting arrangement exists if the reporting entity has multiple contracts with a single counterparty that are subject to a contractual agreement that provides for the net settlement of all contracts through a single payment in a single currency in the event of default on or termination of any one contract. Offsetting the fair values recognized for the derivative contracts outstanding with a single counterparty results in the net fair value of the transactions being reported as an asset or a liability in the Company's balance sheets.

The following table summarizes and reconciles the Company's derivative contracts' fair values at a gross level back to net fair value presentation on the Company's balance sheets at March 31, 2025 and December 31, 2024. The Company has offset all amounts subject to master netting agreements in the Company's balance sheets at March 31, 2025 and December 31, 2024.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | March 31, 2025<br>Fair Value (a)<br>Commodity Contracts | March 31, 2025<br>Fair Value (a)<br>Commodity Contracts | March 31, 2025<br>Fair Value (a)<br>Commodity Contracts | March 31, 2025<br>Fair Value (a)<br>Commodity Contracts | December 31, 2024<br>Fair Value (a)<br>Commodity Contracts | December 31, 2024<br>Fair Value (a)<br>Commodity Contracts | December 31, 2024<br>Fair Value (a)<br>Commodity Contracts | December 31, 2024<br>Fair Value (a)<br>Commodity Contracts |
|  | Current<br>Assets | Current<br>Liabilities | Non-Current<br>Assets | Non-Current<br>Liabilities | Current<br>Assets | Current<br>Liabilities | Non-Current<br>Assets | Non-Current<br>Liabilities |
|  Gross amounts recognized | $310102 | $3488808 | $94636 | $575037 | $596514 | $912850 | $398894 | $796966 |
|  Offsetting adjustments | (310102) | (310102) | (94636) | (94636) | (596514) | (596514) | (398894) | (398894) |
|  Net presentation on condensed balance sheets | $— | $3178706 | $— | $480401 | $— | $316336 | $— | $398072 |

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(a) See Note 10: Fair Value Measurements for further disclosures regarding fair value of financial instruments.

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The fair value of derivative assets and derivative liabilities is adjusted for credit risk. The impact of credit risk was immaterial for all periods presented.

NOTE 10: Fair Value Measurements

Fair value is defined as the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants, i.e., an exit price. To estimate an exit price, a three-level hierarchy is used. The fair value hierarchy prioritizes the inputs, which refer broadly to assumptions market participants would use in pricing an asset or a liability, into three levels. Level 1 inputs are unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: (i) quoted prices for similar assets or liabilities in active markets; (ii) quoted prices for identical or similar assets or liabilities in markets that are not active; (iii) inputs other than quoted prices that are observable for the asset or liability; or (iv) inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 inputs are unobservable inputs for the financial asset or liability.

The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis at March 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair Value Measurement at March 31, 2025 | Fair Value Measurement at March 31, 2025 | Fair Value Measurement at March 31, 2025 | Fair Value Measurement at March 31, 2025 |
|  | Quoted<br>Prices in<br>Active<br>Markets<br>(Level 1) | Significant<br>Other<br>Observable<br>Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br>(Level 3) | Total Fair<br>Value |
|  Financial Assets (Liabilities): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Contracts - Swaps | $— | $(2100247) | $— | $(2100247) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Contracts - Collars | $— | $(1558860) | $— | $(1558860) |

---

Level 2 – Market Approach - The fair values of the Company's swaps and collars are based on a third-party pricing model, which utilizes inputs that are either readily available in the public market, such as natural gas curves and volatility curves, or can be corroborated from active markets. These values are based upon future prices, time to maturity and other factors. These values are then compared to the values given by our counterparties for reasonableness.

At March 31, 2025 and December 31, 2024, the carrying values of cash and cash equivalents, receivables, and payables are considered to be representative of their respective fair values due to the short-term maturities of those instruments. Financial instruments include long-term debt, the valuation of which is classified as Level 2 as the carrying amount of the Company's debt under the Credit Facility approximates fair value because the interest rates are reflective of market rates. The estimated current market interest rates are based primarily on interest rates currently being offered on borrowings of similar amounts and terms. In addition, no valuation input adjustments were considered necessary relating to nonperformance risk for the debt agreements.

NOTE 11: Commitments and Contingencies

*Litigation* 

The Company may be the subject of threatened or pending legal actions and contingencies in the normal course of conducting our business. The Company provides for costs related to these matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of these matters on the Company's future results of operations and liquidity cannot be predicted because any such effect depends on

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future results of operations and the amount or timing of the resolution of such matters. For certain types of claims, the Company maintains insurance coverage for personal injury and property damage, product liability and other liability coverages in amounts and with deductibles that it believes are prudent, but there can be no assurance that these coverages will be applicable or adequate to cover adverse outcomes of claims or legal proceedings against the Company.

NOTE 12: Operating Segment

An operating segment is defined as a component of a public entity that engages in business activities and for which discrete financial information and operating results are available and regularly reviewed by the "Chief Operating Decision Maker" or "CODM", in deciding how to allocate resources and assess performance. The Company's Chief Executive Officer has been determined to be its CODM. The CODM manages the Company's business activities in a single operating and reportable segment focused on managing the Company's mineral portfolio and growing its mineral positions in its core focus areas. The financial information and operating results, including net income and total assets, used by the CODM to allocate resources, assess performance, and make key operating decisions are the same as that which is reported by the Company on the Income Statement and Balance Sheet, and the CODM does not use further disaggregated expenses or assets in deciding how to allocate resources and assess performance.

NOTE 13: Subsequent Event

On May 8, 2025, the Company entered into a definitive agreement to be acquired in an all-cash transaction that values the Company at $4.35 per share.

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Three Rivers Royalty, LLC

**Financial Report** 

**with Supplemental Information** 

**December 31, 2024** 

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##### [**Table of Contents**](#toc)
**Three Rivers Royalty, LLC** 

Contents

---

| | |
|:---|:---|
|  **[Independent Auditor's Report](#fin86452_62)** | F-88-89 |
|  **Financial Statements** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Balance Sheet](#fin86452_63) | F-90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statement of Operations](#fin86452_64) | F-91 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statement of Changes in Member's Equity](#fin86452_65) | F-92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statement of Cash Flows](#fin86452_66) | F-93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to Financial Statements](#fin86452_67) | F-94-103 |
|  **[Supplemental Information (Unaudited)](#fin86452_69)** | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Supplemental Oil and Gas Information (Unaudited)](#fin86452_68) | F-105-107 |

---

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**Independent Auditor's Report** 

To the Member

Three Rivers Royalty, LLC

***Opinion***

We have audited the financial statements of Three Rivers Royalty, LLC (the "Company"), which comprise the balance sheet as of December 31, 2024 and 2023 and the related statements of operations, changes in member's equity, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023 and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the *Auditor's Responsibilities for the Audits of the Financial Statements* section of our report. We are required to be independent of the Company and to meet our ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

***Emphasis of Matters***

As described in Note 10 to the financial statements, subsequent to December 31, 2024, the Company completed the sale of substantially all of the Company's oil and gas properties. Our opinion is not modified with respect to this matter.

We draw attention to Note 2, which describes the basis of presentation of the accompanying carve-out financial statements. These carve-out financial statements have been derived from the historical accounting records of San Jacinto Minerals, LLC and its consolidated subsidiary and reflect the assets, liabilities, revenue, and expenses as they would have been recorded had the carve-out entity operated as a separate legal entity. Our opinion is not modified with respect to this matter.

***Responsibilities of Management for the Financial Statements***

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued.

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To the Member

Three Rivers Royalty, LLC

***Auditor's Responsibilities for the Audits of the Financial Statements***

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that audits conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing audits in accordance with GAAS, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exercise professional judgment and maintain professional skepticism throughout the audits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Obtain an understanding of internal control relevant to the audits in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits, significant audit findings, and certain internal control-related matters that we identified during the audits.

/s/ Plante & Moran, PLLC

Denver, Colorado

January 20, 2026

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**Three Rivers Royalty, LLC** 

Balance Sheet

**December 31, 2024 and 2023** 

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| **Assets** | **Assets** | **Assets** |
|  **Current Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash | $489722 | $298918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty receivable | 2873470 | 2159839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related parties (Note 9) | 119881 | 109999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 187 | 7872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity derivative instruments | 1877511 | 5293373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 5360771 | 7870001 |
|  **Oil and Gas Properties** - Using the successful efforts method of accounting |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proved oil and gas properties | 51674858 | 48334046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unproved oil and gas properties | 12048527 | 15367698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less accumulated depreciation, depletion, and amortization | 22404879 | 19015831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total oil and gas properties - Net | 41318506 | 44685913 |
|  **Other Assets** | 79167 | 70000 |
|  **Commodity Derivative Instruments** |  | 2248448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $**46758444** | $**54874362** |
| **Liabilities and Member's Equity** | **Liabilities and Member's Equity** | **Liabilities and Member's Equity** |
|  **Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade accounts payable | $152947 | $522400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued and other current liabilities |  | 149711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 152947 | 672111 |
|  **Guarantee Obligation to Member** (Note 5) | 19540000 | 20800000 |
|  **Other Long-term Liabilities** |  | 10607 |
|  **Commodity Derivative Instruments** | 429306 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 20122253 | 21482718 |
|  **Commitments and Contingencies** (Note 7) |  |  |
|  **Member's Equity** | 26636191 | 33391644 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and member's equity | $**46758444** | $**54874362** |

---

See notes to financial statements.

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**Three Rivers Royalty, LLC** 

Statement of Operations

**Years Ended December 31, 2024 and 2023** 

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
|  **Revenue** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas royalty revenue | $10356647 | $16172114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas liquids and oil royalty revenue | 1866153 | 2452325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mineral lease bonuses | 1614695 | 2863516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of oil and gas properties |  | 16998752 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue and gain on sale | 13837495 | 38486707 |
|  **Operating Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gathering, processing, and transportation | 2415621 | 2900412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion, and amortization | 3389048 | 5312943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 506751 | 241268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses - Related party (Note 9) | 485168 | 744573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 6796588 | 9199196 |
|  **Operating Income** | 7040907 | 29287511 |
|  **Nonoperating (Expense) Income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) gain on commodity derivatives | (158541) | 20859494 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income | 93903 | 4679 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (2001697) | (3243013) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total nonoperating (expense) income | (2066335) | 17621160 |
|  **Net Income** | $**4974572** | $**46908671** |

---

See notes to financial statements.

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**Three Rivers Royalty, LLC** 

Statement of Changes in Member's Equity

**Years Ended December 31, 2024 and 2023** 

---

| | | | |
|:---|:---|:---|:---|
|  | Net Member<br>Investment | Retained<br>Earnings | Total Member's<br>Equity |
|  **Balance** - January 1, 2023 | $(50985294) | $97637343 | $46652049 |
|  Net income |  | 46908671 | 46908671 |
|  Distributions to member | (60169076) |  | (60169076) |
|  **Balance** - December 31, 2023 | (111154370) | 144546014 | 33391644 |
|  Net income |  | 4974572 | 4974572 |
|  Distributions to member | (11730025) |  | (11730025) |
|  **Balance** - December 31, 2024 | $**(122884395)** | $**149520586** | $**26636191** |

---

See notes to financial statements.

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**Three Rivers Royalty, LLC** 

Statement of Cash Flows

**Years Ended December 31, 2024 and 2023** 

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
|  **Cash Flows from Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $4974572 | $46908671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion, and amortization | 3389048 | 5312943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred financing costs | 90833 | 56000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized loss (gain) on commodity derivatives | 6093616 | (16863722) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of oil and gas properties |  | (16998752) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities that (used) provided cash: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Royalty receivable | (713631) | 5784469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to/from related parties | (9882) | 8864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 7686 | 1849576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued and other liabilities | (529772) | 681808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 13302470 | 26739857 |
|  **Cash Flows from Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions of oil and natural gas mineral rights - Unproved properties | (21641) | (1630224) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of oil and natural gas properties - Net |  | 52325588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash (used in) provided by investing activities | (21641) | 50695364 |
|  **Cash Flows from Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments on guarantee obligation to member | (1260000) | (17000000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt issuance costs | (100000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to member | (11730025) | (60169076) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing activities | (13090025) | (77169076) |
|  **Net Increase in Cash** | 190804 | 266145 |
|  **Cash** - Beginning of year | 298918 | 32773 |
|  **Cash** - End of year | $**489722** | $**298918** |
|  **Supplemental Cash Flow Information** - Cash paid for interest | $2096058 | $3222946 |

---

See notes to financial statements.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 1 - Nature of Business** 

Three Rivers Royalty, LLC (the "Company"), a Texas limited liability company, was formed on September 13, 2015 for the purpose of managing and acquiring mineral and royalty assets for lease and royalty revenue. The Company owns oil and natural gas mineral and royalty interests in the Marcellus shale play in Pennsylvania and West Virginia.

The Company is a wholly owned subsidiary of San Jacinto Minerals, LLC (SJM). The Company sold its oil and gas properties to WhiteHawk Income Marcellus LLC (WhiteHawk) in 2025 (see Note 10).

SJM and its affiliated entities, San Jacinto Minerals II, LLC (SJM II); San Jacinto Minerals III, LLC (SJM III); and San Jacinto Minerals IV, LLC (SJM IV) (collectively, the "SJM Entities"), share common ownership and common management. Under a management services agreement between SJM II and the other SJM Entities (the "MSA"), SJM II is the named employer of those individuals providing services to the SJM Entities. Labor and other shared expenses are allocated amongst the SJM Entities based on the hours spent of such personnel (see Note 9). Direct costs of each of the individual SJM Entities are recorded based on the actual amounts incurred and recorded to the specific entity for which it relates.

In addition, the Company is the guarantor under SJM's Credit Agreement (see Note 5).

**Note 2 - Significant Accounting Policies** 

***Basis of Presentation***

The accompanying carve-out financial statements of the Company are presented in accordance with accounting principles generally accepted in the United States of America (GAAP).

These carve-out financial statements of the Company reflect the assets, liabilities, revenue, and expenses directly attributable to the Company, as well as allocations deemed reasonable by management, to present the Company's financial position, results of operations, changes in member's equity, and cash flows of the Company on a stand-alone basis. The allocation methodologies have been described within the notes to the financial statements where appropriate, and management considers the allocations to be reasonable.

***Use of Estimates***

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results could differ from those estimates.

Depreciation, depletion, and amortization (DD&A) and impairment of proved oil and gas properties are determined using estimates of oil and gas reserves. There are numerous uncertainties in estimating the quantity of reserves and in projecting the future rates of production and timing of development expenditures. Oil and gas reserve engineering must be recognized as a subjective process of estimating underground accumulations of oil and gas that cannot be measured in an exact way. The recoverability of unproved oil and gas properties and the allocation of certain expenses not specifically identifiable to the Company's revenue producing activities are also subject to estimation.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 2 - Significant Accounting Policies (Continued)** 

***Cash***

The Company continually monitors its positions with, and the credit quality of, the financial institutions with which it invests. As of and during the years ended December 31, 2024 and 2023, cash balances were primarily held by one financial institution.

***Commodity Derivative Instruments***

SJM and the Company use commodity derivative instruments to provide a measure of stability to their cash flows in an environment of volatile oil and gas prices and to manage their exposure to oil and gas price volatility. All commodity derivative instruments are initially, and subsequently, measured at estimated fair value and recorded as assets or liabilities on the balance sheet.

SJM is the named counterparty to the commodity derivative contracts pertaining to the Company's natural gas production and natural gas volumes. As these commodity derivative instruments relate specifically to the Company's natural gas volumes, the fair values, and the related realized and unrealized gains/losses attributable thereto, have been pushed down to these financial statements for each of the years presented.

SJM and the Company have elected not to designate commodity derivative instruments as cash flow hedges. For commodity derivative instruments that do not qualify as cash flow hedges, changes in the estimated fair value of the contracts are recorded as gains and losses in the statement of operations. When commodity derivative instruments are settled, SJM and the Company recognize realized gains and losses in the statement of operations. Derivative cash flows are reported as cash flows from operating activities in the statement of cash flows (see Note 4).

***Deferred Financing Costs***

Costs associated with SJM's revolving line of credit (the "Credit Agreement") (see Note 5), for which the Company is the named guarantor, have been deferred and amortized to interest expense using the straight-line method over the term of the related financing and are included in other assets on the balance sheet.

***Revenue Recognition***

The Company's revenue is primarily derived from the sale of its produced oil and natural gas from wells in which the Company has nonoperated royalty interests.

The Company's produced oil and natural gas is produced and sold in the Pennsylvania and West Virginia geographic areas. Oil sales for the years ended December 31, 2024 and 2023 were $160,370 and $222,692, respectively. Natural gas sales for the years ended December 31, 2024 and 2023 were $10,356,647 and $16,172,114, respectively. Natural gas liquids sales for the years ended December 31, 2024 and 2023 were $1,705,783 and $2,229,633, respectively. Accounts receivable from royalty revenue were $8,163,666 as of January 1, 2023.

The sales of produced oil and natural gas are made under contracts that the operators of the wells have negotiated with customers, which typically include variable consideration based on monthly pricing tied to

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##### [**Table of Contents**](#toc)
**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 2 - Significant Accounting Policies (Continued)** 

local indices and volumes delivered. While revenue is typically recorded at the point in time when control of the produced oil and natural gas transfers to the customer, statements and payment may not be received via the operator of the wells for one to three months after the date the produced oil and natural gas are delivered, and, as a result, the amount of production delivered to the customer and the price that will be received for the sale of the product are estimated utilizing production reports, market indices, and estimated differentials. Estimated revenue due to the Company is recorded within accounts receivable in the accompanying balance sheet until payment is received. Differences between the estimated amounts and the actual amounts received from the sale of the produced oil and natural gas are recorded when known, which is generally when statements and payment are received.

The Company utilizes the practical expedient in ASC 606, which states the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. As the Company has determined that each unit of product generally represents a separate performance obligation, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to the remaining performance obligations is not required.

The Company also derives revenue from mineral lease bonuses. The Company generates lease bonus revenue by leasing its mineral interests to exploration and production companies. The lease agreements generally transfer the rights to any oil or natural gas discovered, grant the Company a right to a specified royalty interest, and require that drilling and completion operations commence within a specified time period or the lease will expire. The Company recognizes such lease bonus revenue once the lease agreement has been executed, payment is received, and the Company has no further obligation to refund the payment.

Given that the Company does not recognize lease bonus income until a lease agreement has been executed, at which point its performance obligation has been satisfied, and payment is received, the Company does not record revenue for unsatisfied or partially unsatisfied performance obligations as of the end of the reporting period.

***Unit-based Compensation***

The Company follows authoritative guidance that applies to unit-based awards, which requires entities to recognize compensation expense for awards issued to employees and others. Authoritative guidance also requires unit-based awards to employees and others by a related party or other holder of an economic interest in the entity to be accounted for as unit-based transactions if awards are for services provided by such employee and others (see Note 8).

***Concentrations of Credit Risk***

The Company's producing properties are all located in Pennsylvania and West Virginia, and the oil, condensate, natural gas, and natural gas liquids production is sold by various operators based on market index prices. For the years ended December 31, 2024 and 2023, three operators accounted for 99 percent of revenue. As of December 31, 2024 and 2023, three operators accounted for 99 percent of oil and gas revenue receivables. The risk of nonpayment by these purchasers is considered minimal, and the Company does not generally obtain collateral for sales. The Company continually monitors the credit standing of the

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 2 - Significant Accounting Policies (Continued)** 

primary purchasers and assesses the recoverability of the receivables to determine their collectibility. As the receivables are primarily with other entities within the oil and gas industry, such concentration may impact the Company's credit risk, as these entities may be similarly impacted by economic or other changes within the oil and gas industry.

The Company accrues a reserve for the allowance for credit losses based on management's current estimate of expected credit losses that includes historical credit loss experience of financial assets with similar risk characteristics, adjusted for management's current expectation of current conditions and reasonable and supportable forecasts. The risk of nonpayment is considered minimal; therefore, an allowance for doubtful accounts has not been recorded as of December 31, 2024 and 2023.

***Oil and Gas Properties***

The Company uses the successful efforts method of accounting for its oil and gas producing activities. Under this method of accounting, costs associated with the acquisition, drilling, and equipping of successful exploratory wells and costs of successful and unsuccessful development wells are capitalized and depleted, net of estimated salvage value, using the units of production on a field-by-field basis based upon proved oil and gas reserves. The Company's proved oil and gas reserve information was computed by applying the average first day of the month oil and gas price during each of the 12-month periods ended December 31, 2024 and 2023. Depletion expense associated with proved oil and gas properties for the years ended December 31, 2024 and 2023 was approximately $3,390,000 and $5,310,000, respectively. Exploration, geological costs, delay rentals, and drilling costs of unsuccessful exploratory wells are charged to expense as incurred.

Costs associated with unevaluated exploratory wells are excluded from the depletable basis until the determination of proved reserves, at which time those costs are reclassified to proved oil and gas properties and are subject to depletion. If it is determined that the exploratory well costs were not successful in establishing proved reserves, such costs are expensed at the time of such determination.

The Company reviews its oil and gas properties for impairment at least annually and whenever events and circumstances indicate a decline in the recoverability of their carrying value. The Company estimates the expected future cash flows of its proved oil and gas properties and compares such cash flows to the carrying amount of the proved oil and gas properties to determine if the amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will adjust its proved oil and gas properties to estimated fair value. The factors used to estimate fair value include estimates of proved reserves, future commodity prices adjusted for basis differentials, future production estimates, anticipated capital expenditures, and a discount rate commensurate with the risk associated with realizing the projected cash flows. The discount rate is a rate that management believes is representative of current market conditions and includes estimates for a risk premium and other operational risks. There were no proved oil and gas property impairments during the years ended December 31, 2024 and 2023.

Unproved oil and gas properties are assessed at least annually to determine whether they have been impaired by the drilling of dry holes on or near the related acreage or other circumstances that may indicate a decline in value. When unproved property is determined to be impaired, a loss equal to the portion impaired is recognized. If and when leases for unproved properties expire, the costs thereof are removed from the accounts and charged to expense. There were no unproved property impairments during the years ended December 31, 2024 and 2023.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 2 - Significant Accounting Policies (Continued)** 

Upon the drilling of successful wells on unproved properties, the Company reclassifies cost basis from unproved to proved properties, at which time that cost basis is subject to depletion.

From time to time, the Company may sell its oil and gas properties. The partial sale of proved properties within an existing field is accounted for as a recovery of basis, and no gain or loss on divestiture is recognized as long as this treatment does not significantly affect the units-of-production depletion rate. The partial sale of unproved property is accounted for as a recovery of cost when substantial uncertainty exists as to the ultimate recovery of the cost applicable to the interest retained. A gain on divestiture activity is recognized to the extent that the sale price exceeds the carrying amount of the unproved property. A gain or loss is recognized for all other sales of proved and unproved properties. The Company had material sales of proved and unproved oil and gas properties during the years ended December 31, 2025 and 2023 (see Note 6).

***Income Taxes***

The Company is treated as a limited liability company for federal income tax purposes. Consequently, federal income taxes are not payable or provided for by the Company. The members of SJM are taxed individually on their pro rata ownership share of the Company's earnings. The Company's net income or loss is allocated among the members in accordance with the Company's operating agreement.

Beginning on January 1, 2018, new rules apply to Internal Revenue Service (IRS) audits of partnerships. Under these rules, adjustments resulting from an IRS audit may be assessed at the partnership level on behalf of the members. As of December 31, 2024, the Company has no tax years under audit.

**Note 3 - Fair Value Measurements** 

Accounting standards require certain assets and liabilities be reported at fair value in the financial statements and provide a framework for establishing that fair value. The framework for determining fair value is based on a hierarchy that prioritizes the inputs and valuation techniques used to measure fair value.

Fair values determined by Level 1 inputs use quoted prices in active markets for identical assets and liabilities that the Company has the ability to access.

Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets and other inputs, such as interest rates and yield curves, that are observable at commonly quoted intervals.

Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. These Level 3 fair value measurements are based primarily on management's own estimates using pricing models, discounted cash flow methodologies, or similar techniques taking into account the characteristics of the asset or liability.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Company's assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 3 - Fair Value Measurements (Continued)** 

The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis at December 31, 2024 and 2023 and the valuation techniques used by the Company to determine those fair values:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Assets and Liabilities Measured at Fair Value on a Recurring Basis at<br>December 31, 2024 | Assets and Liabilities Measured at Fair Value on a Recurring Basis at<br>December 31, 2024 | Assets and Liabilities Measured at Fair Value on a Recurring Basis at<br>December 31, 2024 | Assets and Liabilities Measured at Fair Value on a Recurring Basis at<br>December 31, 2024 |
|  | Quoted Prices<br>in Active<br>Markets for<br>Identical Assets<br>(Level 1) | Significant Other<br>Observable<br>Inputs<br>(Level 2) | Significant Unobservable<br>Inputs<br>(Level 3) | Balance at<br>December 31,<br>2024 |
|  Commodity derivative instruments asset | $— | $1877511 | $— | $1877511 |
|  Commodity derivative instruments liability | $— | $(429306) | $— | $(429306) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Assets Measured at Fair Value on a Recurring Basis at<br>December 31, 2023 | Assets Measured at Fair Value on a Recurring Basis at<br>December 31, 2023 | Assets Measured at Fair Value on a Recurring Basis at<br>December 31, 2023 | Assets Measured at Fair Value on a Recurring Basis at<br>December 31, 2023 |
|  | Quoted Prices<br>in Active<br>Markets for<br>Identical Assets<br>(Level 1) | Significant Other<br>Observable<br>Inputs<br>(Level 2) | Significant Unobservable<br>Inputs<br>(Level 3) | Balance at<br>December 31,<br>2023 |
|  Commodity derivative instruments asset | $— | $7541821 | $— | $7541821 |

---

The Company's derivative instruments consist of commodity swaps. The Company estimates the fair values of its commodity swaps under the income valuation technique using a discounted cash flow model. The valuation models require a variety of inputs, including contractual terms, published forward prices, and discount rates, as appropriate. The Company's estimates of the fair value of commodity derivative instruments include consideration of the counterparty's creditworthiness, the Company's creditworthiness, and the time value of money. The consideration of these factors results in an estimated exit price for each derivative asset or liability under a marketplace participant's view. The Company believes that the valuation methods utilized are appropriate and consistent with the fair value standards and with other market participants. All of the significant inputs are observable, either directly or indirectly; therefore, the Company's commodity swap instruments are included within the Level 2 fair value hierarchy.

The financial and nonfinancial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company's policy is to recognize transfers in and/or out of the fair value hierarchy as of the beginning of the reporting period in which the event or change in circumstances caused the transfer.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 4 - Derivative Instruments** 

As discussed in Note 2, SJM and the Company periodically enter into various commodity derivative instruments to mitigate a portion of the effect of natural gas price fluctuations. SJM and the Company classify the fair value amounts of derivative assets and liabilities as net current or noncurrent derivative assets or net current or noncurrent derivative liabilities, whichever the case may be, by commodity and counterparty.

At December 31, 2024 and 2023, the fair values attributable to commodity derivative instruments in which SJM was the named party to the derivative agreements have been allocated to the Company because such commodity derivatives relate specifically to the Company's natural gas volumes and are as follows. Subsequent to December 31, 2024, in connection with the sale to WhiteHawk, all outstanding derivatives were extinguished (see Note 10). The fair values as of December 31, 2024 are as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Product and Type of<br>Hedging Contract | Total Mcf<br>(Natural Gas) | Settlement<br>Price | Index | Settlement<br>Period | Estimated Fair<br>Value |
|  Swaps: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 61000 | $2.3 | Platts IFERC Tetco M2 | 2025 | $(14291) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 322000 | 2.64 | Platts IFERC Tetco M2 | 2025 | (9446) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 1810000 | 3.85 | Platts IFERC Tetco M2 | 2025 | 1825946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 370000 | 3.87 | NYMEX 1st H Hub | 2025 | 118972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 230000 | 3.74 | NYMEX 1st H Hub | 2025 | (49472) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 598000 | -1.00 | Platts IFERC Tetco M2 | 2025 | 5802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 255500 | 2.3 | Platts IFERC Tetco M2 | 2026 | (126293) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 255000 | 4.12 | NYMEX 1st H Hub | 2026 | (29848) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 225000 | -1.00 | Platts IFERC Tetco M2 | 2026 | (102474) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 641000 | 2.4 | Platts IFERC Tetco M2 | 2026 | (170691) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  |  |  |  | $1448205 |

---

The fair values as of December 31, 2023 are as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Product and Type of<br>Hedging Contract | Total Mcf<br>(Natural Gas) | Settlement<br>Price | Index | Settlement<br>Period | Estimated<br>Fair Value |
|  Swaps: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 1830000 | $3.76 | Platts IFERC Tetco M2 | 2024 | $3541909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 1830000 | 2.76 | Platts IFERC Tetco M2 | 2024 | 1751464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 1810000 | 3.85 | Platts IFERC Tetco M2 | 2025 | 2084716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 370000 | 3.87 | NYMEX 1st H Hub | 2025 | 163732 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  |  |  |  | $7541821 |

---

As of December 31, 2024, the Company had $1,950,720 of gross current commodity instrument assets offset by $73,209 of current liabilities, resulting in a net current commodity derivative asset of $1,877,511. The Company had $429,306 of gross noncurrent commodity derivative liabilities, with no assets offsetting the balance.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 4 - Derivative Instruments (Continued)** 

As of December 31, 2023, the Company had $5,293,373 of gross current commodity instrument assets, with no liabilities offsetting the balance. The Company had $2,248,448 of gross noncurrent commodity instrument assets, with no liabilities offsetting the balance.

Due to the volatility of natural gas prices, the estimated fair values of SJM's and the Company's commodity derivative instruments are subject to large fluctuations from period to period.

The counterparty to SJM and the Company's derivative instruments is East West Bank. The Company and SJM are not required to post collateral with East West Bank since the Credit Agreement (see Note 5) is collateralized by the Company's oil and gas assets.

For the years ended December 31, 2024 and 2023, the gains and losses recognized in the statement of operations attributable to derivative instruments are as follows:

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| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
|  Realized gain on commodity derivative instruments | $5935075 | $3995772 |
|  Unrealized (loss) gain on commodity derivative instruments | (6093616) | 16863722 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $(158541) | $20859494 |

---

**Note 5 - Guarantee Obligation to Member** 

In December 2016, SJM entered into a credit agreement with East West Bank with a maximum commitment of $75,000,000. The Credit Agreement, as subsequently amended, requires monthly interest payments that bear interest at rates ranging from SOFR plus 2.75 to SOFR plus 3.75 percent, depending on utilization (8.24 percent at December 31, 2024). The borrowing base is redetermined semiannually, and repayment of borrowings is required in the event the redetermined borrowing base is less than outstanding borrowings or on the maturity date.

The Credit Agreement also has an excess cash threshold, where cash balances held by SJM in excess of $4,000,000 on each available cash measurement date are to be used to pay down outstanding amounts under the Credit Agreement. The Credit Agreement contains financial covenants requiring minimum current, maximum leverage, and interest coverage ratios. As of December 31, 2024, SJM was in compliance with these financial covenants. The Credit Agreement contains restrictive covenants, including the limitation of paying distributions, certain transfers of the equity interests in SJM, and incurring additional indebtedness. Additionally, SJM is required to enter into and maintain commodity derivative transactions covering 50 to 90 percent of the anticipated oil and natural gas production, or anticipated receipt of royalties, from its proved developed producing properties. The Credit Agreement is collateralized by all mineral interests of Three Rivers Royalty, LLC. As of December 31, 2024, the outstanding amount borrowed under the Credit Agreement was $19,540,000.

The named borrower on the Credit Agreement is SJM, and the Company is the named guarantor. As the Company's oil and gas properties are the primary collateral under the Credit Agreement, and the Company's operations provide substantially all of the cash flows required for debt service, all amounts outstanding under the Credit Agreement as of December 31, 2024 and 2023, and all related interest expense for the years then ended, have been pushed down to the Company's accompanying balance sheet as an obligation attributable to the Company's guarantee of amounts outstanding.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 5 - Guarantee Obligation to Member (Continued)** 

As of December 31, 2024, the borrowing base was $25,000,000 and the maturity date of the Credit Agreement was July 2027. In connection with the 2025 sale of properties to WhiteHawk (see Note 10), all outstanding amounts under the Credit Agreement were repaid and the Credit Agreement was terminated.

**Note 6 - Oil and Gas Property Sales** 

In 2023, the Company sold approximately 33 percent of its interests in its oil and gas properties to WhiteHawk Income Marcellus LLC for net proceeds of approximately $52,300,000. The transaction closed on November 13, 2023. As a part of the sale, the Company sold $20,464,381 of unproved property, which was accounted for as a recovery of basis, and no gain was recognized. Additionally, the Company sold $14,862,456 of proved properties, which resulted in a net gain of $16,998,752.

The results of the oil and gas properties sold in 2023 have not been disclosed separately from continued operations within these financial statements because the sale did not represent a strategic shift in operations for the Company.

Subsequent to December 31, 2024, the remaining oil and gas properties of the Company were sold to WhiteHawk (see Note 10). The Company's proved and unproved oil and gas properties have not been presented as assets held for sale, as the criteria pertaining to such within the authoritative guidance were not met as of December 31, 2024.

**Note 7 - Commitments and Contingencies** 

The Company is occasionally named a party to lawsuits in the normal course of business. In the opinion of management, the resolution of these lawsuits will not have a material adverse effect on the Company's financial position or results of operations.

**Note 8 - Member's Equity** 

The Company was formed in 2015, pursuant to a limited liability company agreement, as amended (the "Agreement"). The Agreement provides for the authorization of one class of common interests, in which SJM is the sole member.

Certain employees of SJM and SJM II (see Note 9) that provide management and administrative services to the Company were granted management incentive units of SJM (the "MIUs"). The MIUs entitle the holders to the right to receive distributions from SJM upon the attainment of specific payout thresholds. MIUs vest upon service conditions or performance conditions related to monetization events. All granted MIUs had *de minimis* grant-date fair value, and, as such, no compensation expense was required to be recognized by the Company.

**Note 9 - Related Party Transactions** 

As discussed in Note 1, during 2017, SJM entered into the MSA with SJM II, an entity with common ownership and common management, whereby shared management services and general overhead of the SJM Entities are allocated based on time incurred. SJM III and SJM IV subsequently became parties to the MSA. The MSA is subject to automatic annual renewals.

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**Three Rivers Royalty, LLC** 

Notes to Financial Statements

**December 31, 2024 and 2023** 

**Note 9 - Related Party Transactions (Continued)** 

For the years ended December 31, 2024 and 2023, the Company incurred services and shared general overhead from SJM II of approximately $485,000 and $745,000, respectively, all of which has been included in general and administrative expenses on the accompanying statement of operations of the Company. As of December 31, 2024 and 2023, the Company had a receivable due from SJM II totaling approximately $92,000 and $110,000, respectively, which has also been recorded on the Company's accompanying balance sheet.

Additionally, the Company had a receivable due from SJM III totaling approximately $28,000 as of December 31, 2024, which is included within related party receivables on the accompanying balance sheet. There were no amounts due from SJM III as of December 31, 2023.

During 2017, SJM and SJM II entered into an agreement whereby SJM and the Company's prospective mineral acquisitions shall be restricted to (1) certain counties within Pennsylvania or within two miles of existing Company mineral interests and (2) amounts less than $2.0 million. Furthermore, SJM and the Company may offer SJM II the right to participate in mineral interest acquisitions.

**Note 10 - Subsequent Events** 

On March 31, 2025, the Company entered into a definitive purchase and sale agreement (the "PSA") with WhiteHawk. Under the PSA, substantially all of the remaining oil and gas properties of the Company were sold at a base purchase price of $118,000,000.

Subsequent to year end, SJM and the Company terminated all outstanding commodity derivative instrument contracts. The termination resulted in net cash settlement payments of approximately $2,091,000.

Subsequent to year end, SJM and the Company paid off all amounts outstanding on the Credit Agreement, including all unpaid interest, resulting in payments of approximately $21,600,000.

The Company has evaluated all subsequent events up through and including January 20, 2026, which is the date these financial statements were available to be issued.

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Supplemental Information (Unaudited)

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**Three Rivers Royalty, LLC** 

Supplemental Information (Unaudited)

**December 31, 2024 and 2023** 

**Supplemental Oil and Gas Information (Unaudited)** 

***Oil and Natural Gas Reserve Quantities***

The estimates of proved oil and natural gas reserves and discounted future net cash flows for the Company's oil and gas properties as of December 31, 2024 and 2023 were prepared using historical data and other information by qualified petroleum engineers engaged by the Company. Users of this information should be aware that the process of estimating quantities of proved oil and natural gas reserves is complex, requiring significant subjective decisions to be made in the evaluation of geologic, engineering, and economic data for each reservoir. The data for any given reservoir may also change substantially over time as a result of numerous factors, including, but not limited to, additional development activity, production history, and continual reassessment of the viability of production under varying economic conditions. As a result, revisions to existing reserve estimates may occur from time to time.

The estimated proved net recoverable reserves presented below include only those quantities of oil and natural gas that geologic and engineering data demonstrate with reasonable certainty to be recoverable in future periods from known reservoirs under existing economic, operating, and regulatory practices. In accordance with SEC's guidelines, estimates of proved reserves from which present values are derived were based on the unweighted 12-month average price of the first day of the month price for the period and held constant. Proved developed reserves represent only those reserves estimated to be recovered through existing wells. When and if the Company has insight into the development plans for each of the operators in which the Company holds royalty interests, the Company will recognize proved undeveloped reserves. All of the oil and gas reserves set forth herein are in the United States and are proved reserves.

The estimated rounded quantities of proved oil and natural gas reserves and changes in net proved reserves are summarized below for the year ended December 31, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Oil (MBbl) | Gas (MMcf) | Liquids (Mbbl) | Total (MMcfe) |
|  Balance - December 31, 2023 | 13 | 43250 | 520 | 46448 |
|  Revisions | (3) | (2840) | 29 | (2684) |
|  Extensions | 11 | 14943 | 233 | 16407 |
|  Production | (3) | (5826) | (68) | (6252) |
|  Balance - December 31, 2024 | 18 | 49527 | 714 | 53919 |
|  Proved developed reserves at December 31, 2023 | 13 | 43250 | 520 | 46448 |
|  Proved developed reserves at December 31, 2024 | 18 | 49527 | 714 | 53919 |

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**Three Rivers Royalty, LLC** 

Supplemental Information (Unaudited)

**December 31, 2024 and 2023** 

**Supplemental Oil and Gas Information (Unaudited) (Continued)** 

The estimated rounded quantities of proved oil and natural gas reserves and changes in net proved reserves are summarized below for the year ended December 31, 2023:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Oil (MBbl) | Gas (MMcf) | Liquids (MBbl) | Total (MMcfe) |
|  Balance - December 31, 2022 | 25 | 61879 | 810 | 66889 |
|  Revisions | (3) | 519 | 14 | 585 |
|  Extensions | 4 | 13388 | 78 | 13880 |
|  Divestitures of reserves | (10) | (24131) | (289) | (25925) |
|  Production | (3) | (8405) | (93) | (8981) |
|  Balance - December 31, 2023 | 13 | 43250 | 520 | 46448 |
|  Proved developed reserves at December 31, 2022 | 25 | 61879 | 810 | 66889 |
|  Proved developed reserves at December 31, 2023 | 13 | 43250 | 520 | 46448 |

---

During the year ended December 31, 2024, the Company's total extensions of 16,407 MMcfe resulted primarily from the drilling of 120 new gross wells (0.532 net wells). The Company's downward revisions of previous estimated quantities of 2,684 were primarily attributable to lower commodity prices and were not significant.

During the year ended December 31, 2023, the Company divested of 25,925 MMcfe from 33 percent of the Company's interest across 1,324 wells. The Company's total extensions of 13,880 MMcfe resulted from the drilling of 271 new gross wells (0.345 net wells). The Company's total downward revisions of previous estimated quantities of 0.585 MMcfe were primarily attributable to lower commodity prices and were not significant.

***Standardized Measure***

A standardized measure of future net cash flows and changes therein relating to estimated proved reserves is computed in accordance with authoritative accounting guidance. The assumptions used to compute the standardized measure are those prescribed by the Financial Accounting Standards Board and the SEC. These assumptions do not necessarily reflect expectations of actual revenue to be derived from those reserves nor their present value amount. The limitations inherent in the reserve quantity estimation process, as discussed previously, are equally applicable to the standardized measure computations since these reserve quantity estimates are the basis for the valuation process.

Future cash inflows and production and development costs are determined by applying prices and costs, including transportation, quantity, and basis differentials, to the year-end estimated future reserve quantities. The following prices, as adjusted for transportation, quality, and basis differentials, were used in the calculation of the standardized measure:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2023** | **2023** |
|  Oil (per Bbl) |  | 71.95 |  | 74.95 |
|  Gas (per Mcf) |  | 1.44 |  | 1.75 |
|  Liquids (per Bbl) |  | 23.93 |  | 25.00 |

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**Three Rivers Royalty, LLC** 

Supplemental Information (Unaudited)

**December 31, 2024 and 2023** 

**Supplemental Oil and Gas Information (Unaudited) (Continued)** 

Future operating costs are determined based on estimates of expenditures to be incurred in developing and producing the proved reserves in place at the end of the period using year-end costs and assuming continuation of existing economic conditions. The standardized measure presented here does not include the effects of federal income taxes, as the Company is taxed as a partnership and not subject to federal income taxes. The resulting future net cash flows are reduced to present value amounts by applying a 10 percent annual discount factor.

The standardized measure of discounted net cash flows related to the Company's proved oil and natural gas reserves as of December 31, 2024 and 2023 is as follows:

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| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
|  Future cash inflows | $89726000 | $88555000 |
|  Future production costs | (72000) | (44000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Future net cash flows | 89654000 | 88511000 |
|  10 percent annual discount for estimated timing of cash flows | (44566000) | (44193000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Standardized measure of discounted future net cash flows | $45088000 | $44318000 |

---

The changes in the standardized measure of the future net cash flows related to proved oil and natural gas reserves for the years ended December 31, 2024 and 2023 are as follows:

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| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
|  Balance - Beginning of the year | $44318000 | $190478885 |
|  Net change in prices and production costs | (5458830) | (99042825) |
|  Sales of oil and gas produced - Net of production costs | (9807179) | (15724027) |
|  Extensions | 15441863 | 13520166 |
|  Divestiture of reserves |  | (66193699) |
|  Revisions of previous quantity estimates | (2579131) | 569946 |
|  Accretion of discount | 4431800 | 19047889 |
|  Changes in timing and other | (1258523) | 1661665 |
|  Standardized measure of future net cash flows - End of year | $45088000 | $44318000 |

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**ANNEX A** 

**GLOSSARY OF NATURAL GAS AND OIL TERMS** 

The following are abbreviations and definitions of certain terms used in this document, which are commonly used in the natural gas and oil industry:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Basin*. A geographic area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Bbl*. One stock tank barrel of 42 U.S. gallons liquid volume used herein in reference to crude oil,
condensate or NGLs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Bcf/d*. Billion cubic feet per day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *British thermal unit or Btu*. The quantity of heat required to raise the temperature of a one-pound mass of water from 58.5 to 59.5 degrees Fahrenheit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Completion*. Installation of permanent equipment for hydraulic fracturing for production of natural gas,
NGLs or oil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Condensate*. A mixture of hydrocarbons that exists in the gaseous phase at original reservoir
temperature and pressure, but that, when produced, is in the liquid phase at surface pressure and temperature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Developed acreage*. The number of acres allocated or assignable to producing wells or wells capable of
production.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Development costs*. Costs incurred to obtain access to proved reserves and to provide facilities for
extracting, treating, gathering and storing natural gas, NGLs and oil. For a complete definition of development costs, refer to the SEC's Regulation S-X, Rule 4-10(a)(7).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Development project*. The means by which petroleum resources are brought to the status of economically
producible. As examples, the development of a single reservoir or field, an incremental development in a producing field or the integrated development of a group of several fields and associated facilities with a common ownership may constitute a
development project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Differential*. An adjustment to the price of oil or natural gas from an established spot market price to
reflect differences in the quality and/or location of oil or natural gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Drilling spacing unit or DSU*. Areas designated in a spacing order or unit designation as a unit and within
which operators drill wellbores to develop our oil and natural gas rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Dry gas*. Natural gas that occurs in the absence of condensate or liquid hydrocarbons, or gas that has had
condensable hydrocarbons removed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Dry hole* or *dry well*. A well found to be incapable of producing
hydrocarbons in sufficient quantities such that proceeds from the sale of such production exceed production expenses and taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *E&P*. Exploration and production.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Economically producible*. The term economically producible, as it relates to a resource, means a resource
that generates revenue that exceeds, or is reasonably expected to exceed, the costs of the operation. For a complete definition of economically producible, refer to the SEC's Regulation S-X, Rule 4-10(a)(10).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *EIA*. U.S. Energy Information Administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Estimated ultimate recovery.* The sum of reserves remaining as of a given date and cumulative
production as of that date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Exploratory well.* A well drilled to find a new field or to find a new reservoir in a field previously
found to be productive of natural gas or crude oil in another reservoir.

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *FERC*. Federal Energy Regulatory Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *FID*. Final investment decision by a sponsor whereby such sponsor awards to a qualified contractor an
engineering, procurement and construction contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Field*. An area consisting of a single reservoir or multiple reservoirs all grouped on, or related to, the
same individual geological structural feature or stratigraphic condition. The field name refers to the surface area, although it may refer to both the surface and the underground productive formations. For a complete definition of field, refer to
the SEC's Regulation S-X, Rule 4-10(a)(15).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Formation*. A layer of rock that has distinct characteristics that differs from nearby rock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Gross DSU acres*. The total acres within a drilling spacing unit, as the case may be, in which a mineral or
royalty interest is owned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Gross well.* A well in which a mineral interest is owned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Held by production*. Acreage covered by a mineral lease that perpetuates a company's right to operate
a property as long as the property produces a minimum paying quantity of natural gas, NGLs or oil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Horizontal drilling*. A drilling technique used in certain formations where a well is drilled vertically to
a certain depth and then drilled at a right angle within a specified interval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Henry Hub*. Widely used benchmark for the pricing of natural gas in the United States and a distribution
hub.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Horizontal well*. An oil or gas well that has sections that have been drilled to a horizontal or roughly
horizontal inclination from vertical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Hydraulic fracturing*. Process involving the high-pressure injection of water, sand and additives into rock
formations to stimulate natural gas and crude oil production.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *LNG*. Liquefied natural gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *MBbl*. One thousand barrels of crude oil, condensate or NGLs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Mcf*. One thousand cubic feet of natural gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Mcfe*. One thousand cubic feet of natural gas equivalent, determined by using the ratio of six Mcf of
natural gas to one Bbl of crude oil, condensate of natural gas liquids.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Mcf/d*. One Mcf per day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Mcfe/d*. One Mcfe per day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *MMBbl*. One million barrels of crude oil, condensate or NGLs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *MMBtu*. One million British thermal units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *MMcf*. One million cubic feet of natural gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Net mineral acres*. Calculated by multiplying the total gross acres by an owner's mineral or royalty
interest. For example, an owner who owns a 25%, or 1/4<sup>th</sup>, royalty interest in 100 acres has 25 net mineral acres.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Net production*. Production on our properties calculated net to our royalty interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Net well.* Calculated by multiplying the number of gross wells in which a mineral interest is owned by
the net revenue interest in such wells. An owner with a 1.0% net revenue interest in 100 wells would own one gross well (100 multiplied by 1.0% = 1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *NGLs*. Natural gas liquids. Hydrocarbons found in natural gas that may be extracted as liquefied petroleum
gas and natural gasoline.

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *NRAs (1/8 Basis) or net royalty acres (1/8 Basis).* The hypothetical number of acres in which an owner
owns a standardized 12.5%, or 1/8<sup>th</sup>, royalty interest based on the actual number of net mineral acres in which such owner has an interest and the average royalty interest such owner has in such
net mineral acres. For example, an owner who has a 25%, or 1/4<sup>th</sup>, royalty interest in 100 net mineral acres would hypothetically own 200 NRAs on a
1/8<sup>th</sup> basis (100 multiplied by 25% divided by 12.5%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *NRAs (Actual 100% Basis) or net royalty acres (Actual or 100% Basis)*. The actual number of
acres in which an owner owns a standardized 100% royalty interest based on the actual number of net mineral acres in which such owner has an interest and the average royalty interest such owner has in such net mineral acres. For example, an owner
who has a 25%, or 1/4<sup>th</sup>, royalty interest in 100 net mineral acres would own 25 NRAs on an actual or a 100% basis (100 multiplied by 25%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *NRI*. Net revenue interest. The net royalty, overriding royalty, production payment and net profits
interests in a particular tract or well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *NYMEX*. The New York Mercantile Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Operators*. The individual, company or third-party natural gas operators responsible for the development
and/or production of an oil or natural gas well or lease. Some of our operators include EQT Corporation (NYSE: EQT), Range Resources Corporation (NYSE: RRC), CNX Resources Corporation (NYSE: CNX), Antero Resources Corporation (NYSE: AR), Expand
Energy Corporation (NASDAQ: EXE), Comstock Resources, Inc. (NYSE: CRK) and Aethon Energy Management LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Overriding royalty interest*. Interest in the natural gas and oil produced under a lease, or the proceeds
from the sale thereof, apportioned out of the working interest, to be received free and clear of all costs of development, operation or maintenance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *PDP*. Proved developed producing reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Play*. A geographic area with hydrocarbon potential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Possible reserves*. Reserves that are less certain to be recovered than probable reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Probable reserves*. Reserves that are less certain to be recovered than proved reserves but that, together
with proved reserves, are as likely as not to be recovered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Production or produced*. Volumes of natural gas, NGL and oil that have been both produced and sold.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Productive well*. A well that is found to be capable of producing hydrocarbons in sufficient quantities
such that proceeds from the sale of the production exceed production expenses and taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Prospect.* A specific geographic area that, based on supporting geological, geophysical or other data and
also preliminary economic analysis using reasonably anticipated prices and costs, is deemed to have potential for the discovery of commercial hydrocarbons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Proved developed reserves*. Reserves that can be expected to be recovered through (i) existing wells
with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared with the cost of a new well or (ii) through installed extraction equipment and infrastructure operational at the time of
the reserves estimate if the extraction is by means not involving a well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Proved reserves*. Those quantities of natural gas, NGLs and crude oil, which, by analysis of geoscience and
engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs and under existing economic conditions, operating methods and government regulations prior to the time at
which contracts providing the right to operate expire, unless evidence indicates renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must
have commenced or the operator must be reasonably certain that it will commence the project within a

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reasonable time. For a complete definition of proved oil and natural gas reserves, refer to the SEC's Regulation S-X, Rule 4-10(a)(22).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Proved undeveloped reserves or PUDs*. Proved reserves expected to be recovered from new wells on undrilled
acreage or from existing wells where a relatively major expenditure is required for recompletion. Undrilled locations can be classified as having proved undeveloped reserves only if a development plan has been adopted indicating that such locations
are scheduled to be drilled within five years, unless specific circumstances justify a longer time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Realized price*. The cash market price less all expected quality, transportation and demand adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Reasonable certainty*. A high degree of confidence that quantities will be recovered. For a complete
definition of reasonable certainty, refer to the SEC's Regulation S-X, Rule 4-10(a)(24).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Recompletion*. The completion for production of an existing wellbore in another formation from that which
the well has been previously completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Reliable technology*. Reliable technology is a grouping of one or more technologies (including
computational methods) that has been field tested and has been demonstrated to provide reasonably certain results with consistency and repeatability in the formation being evaluated or in an analogous formation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Reserves*. Estimated remaining quantities of oil and natural gas and related substances anticipated to be
economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue
interest in the production, installed means of delivering oil and natural gas or related substances to market and all permits and financing required to implement the project. Reserves should not be assigned to adjacent reservoirs isolated by major,
potentially sealing, faults until those reservoirs are penetrated and evaluated as economically producible. Reserves should not be assigned to areas that are clearly separated from a known accumulation by a non-productive reservoir (i.e., absence of reservoir, structurally low reservoir or negative test results). Such areas may contain prospective resources (i.e., potentially recoverable resources
from undiscovered accumulations).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Reservoir*. A porous and permeable underground formation containing a natural accumulation of producible
oil and/or natural gas that is confined by impermeable rock or water barriers and is individual and separate from other reservoirs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Resources*. Quantities of natural gas, NGLs and oil estimated to exist in naturally occurring
accumulations. A portion of the resources may be estimated to be recoverable and another portion may be considered to be unrecoverable. Resources include both discovered and undiscovered accumulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Royalty*. An interest in an oil and natural gas lease that gives the owner the right to receive a portion
of the production from the leased acreage (or of the proceeds from the sale thereof), but does not require the owner to pay any portion of the production or development costs on the leased acreage. Royalties may be either landowner's
royalties, which are reserved by the owner of the leased acreage at the time the lease is granted, or overriding royalties, which are usually reserved by an owner of the leasehold in connection with a transfer to a subsequent owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Spacing*. The distance between wells producing from the same reservoir. Spacing is often expressed in terms
of acres, e.g., 40-acre spacing, and is often established by regulatory agencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Unconventional.* An area believed to be capable of producing natural gas and crude oil occurring in
accumulations that are regionally extensive, but may lack readily apparent traps, seals and discrete hydrocarbon water boundaries that typically define conventional reservoirs. These areas tend to have low permeability and may be closely associated
with source rock, as is the case with gas and oil shale,

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tight gas and oil sands, and coalbed methane, and generally require horizontal drilling, fracture stimulation treatments or other special recovery processes in order to achieve economic production.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Undeveloped acreage*. Lease acreage on which wells have not been drilled or completed to a point that would
permit the production of commercial quantities of natural gas, NGLs or oil regardless of whether such acreage contains proved reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Unit*. The joining of all or substantially all interests in a reservoir or field, rather than a single
tract, to provide for development and operation without regard to separate property interests. Also, the area covered by a unitization agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Weighted Average Royalty.* The weighted average of our royalty interests is used to approximate the average
net royalty acres for our mineral interests. Calculated as the sum of the products of net mineral acres and royalty percentage, divided by the total royalty percentage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Wellbore*. The hole drilled by the bit that is equipped for natural gas production on a completed well.
Also called well or borehole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Working interest*. The right granted to the lessee of a property to develop, produce and own natural gas,
NGLs, oil or other minerals. The working interest owners bear the exploration, development and operating costs on either a cash, penalty or carried basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *WIP*. Wells-in-progress.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *WTI*. West Texas Intermediate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Shares**![LOGO](g86452g96m82.jpg)

**Class A Common Stock** 

**Preliminary Prospectus** 

***Joint Lead Bookrunners***

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| | | |
|:---|:---|:---|
| **Raymond James** | **Stifel** | **J.P. Morgan** |

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***Bookrunning Managers***

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| | |
|:---|:---|
| **Capital One Securities** | **Stephens Inc.** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**, 2026** 

Until , 2026 (25 days after the date of this prospectus), all dealers that buy, sell or trade in shares of these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

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**PART II — INFORMATION NOT REQUIRED IN PROSPECTUS** 

**Item 13. Other Expenses of Issuance and Distribution.** 

The following table sets forth all costs and expenses, other than the underwriting discount, paid or payable by us in connection with the sale of the common stock being registered. All amounts shown are estimates except for the SEC registration fee, FINRA filing fee and the listing fee for .

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| | |
|:---|:---|
|  | **Amount to be<br>Paid** |
|  SEC Registration Fee | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\* |
|  FINRA filing fee | \* |
|  Stock exchange listing fee | \* |
|  Printing | \* |
|  Legal fees and expenses | \* |
|  Accounting fees and expenses | \* |
|  Transfer agent and registrar fees | \* |
|  Miscellaneous expenses | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total: | $\* |

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\* To be filed by amendment.

**Item 14. Indemnification of Officers and Directors.** 

Section 102 of the DGCL allows a corporation to provide in its certificate of incorporation that a director or officer of the corporation will not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except where the director or officer breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law, obtained an improper personal benefit or, with respect to an officer only, in any action by or in the right of the corporation. Our amended and restated certificate of incorporation, which will become effective upon the closing of this offering, will provide that no director or officer of WhiteHawk Income Corporation shall be personally liable to it or its stockholders for monetary damages for any breach of fiduciary duty as a director or officer, as applicable, to the fullest extent permitted by applicable law as it may be amended.

Section 145 of the DGCL provides that a corporation has the power to indemnify a director, officer, employee, or agent of the corporation, or a person serving at the request of the corporation for another corporation, partnership, joint venture, trust or other enterprise in related capacities (collectively, "Covered Persons"), against expenses (including attorneys' fees) (and, with respect to actions other than actions brought by or in the right of the corporation, judgments, fines and amounts paid in settlement) actually and reasonably incurred by the person in connection with an action, suit or proceeding to which he or she was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding by reason of such position, if such person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the corporation, and, in any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful, except that, in the case of actions brought by or in the right of the corporation, no indemnification shall be made with respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Delaware Court of Chancery or other adjudicating court determines that, despite the adjudication of liability but in view of all of the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Delaware Court of Chancery or such other court shall deem proper.

Our amended and restated bylaws will authorize the indemnification of our officers and directors, to the fullest extent permitted by applicable law, or a Covered Person, including an officer or director, who was or is made or

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is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was a director or officer of the Company or, while a director or officer of the Company, is or was serving at the request of the Company as a director, officer, employee or agent of another corporation or of a partnership, limited liability company, joint venture, trust, enterprise or nonprofit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including attorneys' fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) reasonably incurred by such Covered Person. Notwithstanding the preceding sentence, except as otherwise provided in our amended and restated bylaws, the Company shall be required to indemnify a Covered Person in connection with a proceeding (or part thereof) commenced by such Covered Person only if the commencement of such proceeding (or part thereof) by the Covered Person was authorized in the specific case by the board of directors.

We intend to enter into indemnification agreements with each of our executive officers and directors. These agreements, among other things, will require the Company to indemnify each executive officer and director to the fullest extent permitted by Delaware law, including indemnification of expenses, such as attorneys' fees, judgments, fines and settlement amounts incurred by the director or executive officer in any action or proceeding, including any action or proceeding by or in right of the Company, arising out of the person's services as a director or executive officer.

Our amended and restated certificate of incorporation also provides that the Corporation shall have the power to provide rights to indemnification and advancement of expenses to its current and former officers, directors, employees and agents and to any person who is or was serving at our request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise.

We expect to maintain standard policies of insurance that provide coverage (i) to our directors and officers against loss rising from claims made by reason of breach of duty or other wrongful act and (ii) to the Company with respect to indemnification payments that it may make to such directors and officers.

In any underwriting agreement we enter into in connection with the sale of common stock being registered hereby, the underwriters will agree to indemnify, under certain conditions, us, our directors, our officers and persons who control us within the meaning of the Securities Act against certain liabilities.

**Item 15. Recent Sales of Unregistered Securities.** 

From January 1, 2023 to May 11, 2026, we made sales or issuances to certain accredited investors of unregistered shares of Class A common stock listed in the table below:

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| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  2/7/2023 | 14625 | $358235.00 | $23499.78 |
|  2/24/2023 | 49628 | $1232721.50 | $97281.54 |
|  3/7/2023 | 8898 | $222450.00 | $18908.25 |
|  3/22/2023 | 40524 | $982305.00 | $54377.33 |
|  4/7/2023 | 7480 | $187000.00 | $15895.00 |
|  4/21/2023 | 20313 | $500003.31 | $35825.08 |
|  4/28/2023 | 11600 | $290000.00 | $24650.00 |
|  5/5/2023 | 6377 | $157191.50 | $11261.79 |
|  5/22/2023 | 10653 | $259945.50 | $16098.64 |
|  6/5/2023 | 10168 | $254200.00 | $21607.00 |
|  6/23/2023 | 28012 | $688492.00 | $47422.30 |
|  6/30/2023 | 11938 | $293983.00 | $20789.58 |
|  7/21/2023 | 13895 | $340932.87 | $22920.10 |
|  8/7/2023 | 16993 | $419975.88 | $31136.17 |

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| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  8/22/2023 | 19730 | $493125.00 | $41790.94 |
|  8/28/2023 | 13823 | $343980.50 | $27739.51 |
|  9/6/2023 | 3463 | $84980.50 | $5724.51 |
|  9/21/2023 | 23070 | $576625.00 | $49013.13 |
|  9/29/2023 | 32947 | $823675.00 | $70012.38 |
|  10/5/2023 | 10040 | $251000.00 | $21335.00 |
|  10/23/2023 | 38260 | $956375.00 | $81167.20 |
|  11/7/2023 | 26289 | $654991.50 | $53574.79 |
|  11/21/2023 | 22228 | $549958.00 | $41348.95 |
|  12/6/2023 | 5800 | $145000.00 | $12325.00 |
|  12/21/2023 | 24766 | $615466.06 | $48841.63 |
|  12/27/2023 | 3120 | $78000.00 | $6630.00 |
|  1/11/2024 | 8005 | $199999.68 | $16874.97 |
|  1/26/2024 | 11400 | $285000.00 | $24225.00 |
|  2/8/2024 | 4128 | $100008.00 | $5500.20 |
|  2/22/2024 | 24727 | $614984.50 | $49274.61 |
|  3/8/2024 | 7950 | $198499.38 | $16622.45 |
|  3/22/2024 | 6188 | $149918.00 | $8247.95 |
|  3/28/2024 | 5306 | $130091.00 | $8652.28 |
|  4/4/2024 | 1000 | $25000.00 | $2125.00 |
|  4/25/2024 | 10752 | $268800.00 | $22848.00 |
|  4/30/2024 | 2110 | $49585.00 | $1239.63 |
|  5/8/2024 | 2400 | $60000.00 | $5100.00 |
|  5/22/2024 | 12520 | $313000.00 | $26605.00 |
|  6/5/2024 | 6824 | $164864.00 | $8621.36 |
|  6/19/2024 | 25270 | $631750.00 | $53698.75 |
|  7/2/2024 | 6320 | $158000.00 | $13430.00 |
|  7/10/2024 | 39943 | $991858.32 | $77974.99 |
|  7/24/2024 | 18600 | $465000.00 | $39525.00 |
|  8/7/2024 | 13089 | $324991.50 | $25524.79 |
|  8/21/2024 | 11029 | $269981.50 | $17549.54 |
|  9/4/2024 | 1600 | $40000.00 | $3400.00 |
|  9/16/2024 | 14740 | $368500.00 | $31322.50 |
|  9/25/2024 | 13722 | $342967.38 | $29069.80 |
|  10/9/2024 | 10372 | $259256.25 | $21993.14 |
|  10/23/2024 | 12382 | $303493.00 | $20103.33 |
|  11/6/2024 | 8384 | $209600.00 | $17816.00 |
|  11/21/2024 | 21370 | $534250.00 | $45411.25 |
|  12/6/2024 | 13423 | $333980.50 | $26889.51 |
|  12/18/2024 | 38988 | $942468.00 | $49811.70 |
|  12/30/2024 | 17315 | $427452.50 | $31236.31 |
|  12/31/2024 | 4000 | $102500.00 | $10625.00 |
|  1/9/2025 | 7600 | $190000.00 | $16150.00 |
|  1/23/2025 | 7368 | $184200.00 | $15657.00 |
|  2/7/2025 | 24258 | $601665.00 | $46643.63 |
|  2/21/2025 | 17253 | $423985.50 | $29139.64 |
|  2/28/2025 | 7255 | $174992.50 | $8874.81 |
|  3/7/2025 | 16790 | $414965.00 | $30774.13 |
|  3/14/2025 | 120 | $2756.62 |  |
|  3/25/2025 | 25899 | $642688.50 | $50129.21 |
|  3/28/2025 | 6000 | $150000.00 | $12750.00 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  4/9/2025 | 16807 | $409004.50 | $24265.11 |
|  4/15/2025 | 257 | $5875.78 |  |
|  4/24/2025 | 32238 | $789993.00 | $52149.83 |
|  4/30/2025 | 40508 | $1006958.00 | $80193.95 |
|  5/8/2025 | 38486 | $962150.00 | $81782.75 |
|  5/15/2025 | 800 | $18296.44 |  |
|  5/22/2025 | 93132 | $2313939.00 | $183185.48 |
|  5/30/2025 | 64876 | $1612327.00 | $128049.18 |
|  6/10/2025 | 120983 | $3003455.00 | $235440.88 |
|  6/12/2025 | 51288 | $1271988.00 | $98519.70 |
|  6/16/2025 | 1975 | $45192.62 |  |
|  6/20/2025 | 225805 | $5575001.50 | $407959.04 |
|  6/27/2025 | 153126 | $3749716.50 | $244998.41 |
|  7/2/2025 | 30877 | $740009.50 | $32900.24 |
|  7/10/2025 | 54840 | $1359831.00 | $105086.78 |
|  7/15/2025 | 2610 | $59725.84 |  |
|  7/16/2025 | 50260 | $1239461.50 | $89338.04 |
|  7/25/2025 | 81885 | $2014543.50 | $140609.59 |
|  7/31/2025 | 93594 | $2323770.00 | $182405.25 |
|  8/5/2025 | 116315 | $2862276.50 | $200430.91 |
|  8/15/2025 | 3421 | $78276.50 |  |
|  8/25/2025 | 109557 | $2727748.50 | $221352.71 |
|  8/28/2025 | 210429 | $5254981.50 | $441274.54 |
|  9/10/2025 | 207563 | $5170998.50 | $422542.96 |
|  9/15/2025 | 4004 | $91607.62 |  |
|  9/19/2025 | 128795 | $3170688.50 | $223273.21 |
|  9/25/2025 | 169169 | $4169814.50 | $298588.36 |
|  9/30/2025 | 705572 | $16474713.00 | $329817.63 |
|  10/10/2025 | 31191 | $760306.50 | $46325.66 |
|  10/15/2025 | 4684 | $107176.43 |  |
|  10/24/2025 | 25298 | $627665.00 | $48853.63 |
|  10/30/2025 | 13875 | $346953.37 | $29525.10 |
|  11/10/2025 | 29963 | $747480.50 | $62037.01 |
|  11/14/2025 | 6490 | $148493.73 |  |
|  11/25/2025 | 44123 | $1092522.50 | $82945.06 |
|  11/30/2025 | (136) | $(3104.43) |  |
|  12/10/2025 | 64314 | $1595079.00 | $123576.98 |
|  12/15/2025 | 6761 | $154687.78 |  |
|  12/18/2025 | 33666 | $839097.00 | $68923.43 |
|  12/30/2025 | 122229 | $3024577.50 | $227810.44 |
|  1/15/2026 | 26337 | $643709.12 | $41225.00 |
|  1/30/2026 | 9338 | $2 33450.00 | $19843.25 |
|  2/12/2026 | 12000 | $3 00000.00 | $25500.00 |
|  2/13/2026 | 8005 | $1 83158.44 |  |
|  2/27/2026 | 35564 | $8 85842.00 | $72234.05 |
|  3/12/2026 | 8678 | $2 10567.50 | $11898.69 |
|  3/13/2026 | 8475 | $1 93897.98 |  |
|  3/31/2026 | 37601 | $933645.50 | $73363.14 |
|  4/15/2026 | 8794 | $201208.49 |  |
|  4/16/2026 | 13560 | $339000.00 | $28815.00 |
|  4/30/2026 | 65437 | $1626994.00 | $129899.35 |
|  5/7/2026 | 161021 | $3983019.50 | $298601.49 |

---

------

##### [**Table of Contents**](#toc)
From January 1, 2023 to May 11, 2026, we made sales or issuances to certain accredited investors of unregistered shares of Class I common stock listed in the table below:

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  2/7/2023 | 21853 | $499996.64 |  |
|  2/24/2023 | 50261 | $1149971.68 |  |
|  4/21/2023 | 10927 | $250009.76 |  |
|  4/28/2023 | 4370 | $99985.60 |  |
|  5/22/2023 | 656 | $15009.28 |  |
|  6/5/2023 | 12457 | $285016.16 |  |
|  6/30/2023 | 109266 | $2500006.08 |  |
|  8/7/2023 | 1003 | $22948.64 |  |
|  8/28/2023 | 93968 | $2149987.84 |  |
|  9/21/2023 | 10927 | $250009.76 |  |
|  10/23/2023 | 87413 | $2000009.40 |  |
|  12/21/2023 | 12018 | $274971.84 |  |
|  1/26/2024 | 4371 | $100008.48 |  |
|  4/4/2024 | 4371 | $100008.48 |  |
|  4/25/2024 | 16385 | $374888.80 |  |
|  4/30/2024 | 2840 | $64979.20 |  |
|  5/8/2024 | 13111 | $299979.68 |  |
|  6/5/2024 | 1192 | $27283.50 |  |
|  8/7/2024 | 10927 | $250009.76 |  |
|  11/21/2024 | 28408 | $649975.04 |  |
|  1/9/2025 | 10926 | $249986.88 |  |
|  2/7/2025 | 4371 | $100008.48 |  |
|  2/28/2025 | 10926 | $249986.88 |  |
|  3/25/2025 | 4370 | $99985.60 |  |
|  3/28/2025 | 58740 | $1343971.20 |  |
|  4/9/2025 | 15298 | $350018.24 |  |
|  4/15/2025 | 104 | $2389.39 |  |
|  4/24/2025 | 1092 | $24984.96 |  |
|  5/8/2025 | 21855 | $500042.40 |  |
|  5/15/2025 | 323 | $7381.71 |  |
|  5/22/2025 | 9561 | $218755.68 |  |
|  5/30/2025 | 14641 | $334986.08 |  |
|  6/10/2025 | 585822 | $13403607.36 |  |
|  6/12/2025 | 11579 | $264927.52 |  |
|  6/16/2025 | 432 | $9878.63 |  |
|  6/20/2025 | 114923 | $2629444.36 |  |
|  6/23/2025 | 2788466 | $63800102.08 |  |
|  6/27/2025 | 62216 | $1423502.08 |  |
|  7/2/2025 | 15145 | $346517.60 |  |
|  7/10/2025 | 43705 | $999970.40 |  |
|  7/15/2025 | 720 | $16480.98 |  |
|  7/16/2025 | 93966 | $2149942.08 |  |
|  7/25/2025 | 177271 | $4055960.48 |  |
|  7/31/2025 | 52273 | $1196006.24 |  |
|  8/5/2025 | 227959 | $5215701.92 |  |
|  8/15/2025 | 4824 | $110365.01 |  |
|  8/25/2025 | 51355 | $1175002.40 |  |
|  9/10/2025 | 29753 | $680748.64 |  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  9/15/2025 | 5959 | $136335.65 |  |
|  9/19/2025 | 33622 | $769271.36 |  |
|  9/25/2025 | 80221 | $1835456.48 |  |
|  9/30/2025 | 772041 | $17664298.08 |  |
|  10/15/2025 | 6886 | $157543.62 |  |
|  10/24/2025 | 10926 | $249986.88 |  |
|  10/30/2025 | 2668 | $61051.38 |  |
|  11/10/2025 | 4370 | $99985.60 |  |
|  11/14/2025 | 7612 | $174167.73 |  |
|  11/30/2025 | 2016 | $46133.24 |  |
|  12/10/2025 | 32780 | $750006.40 |  |
|  12/15/2025 | 6640 | $151929.59 |  |
|  12/18/2025 | 9614 | $219968.32 |  |
|  12/30/2025 | 10919 | $249826.72 |  |
|  1/15/2026 | 18615 | $425903.75 |  |
|  1/30/2026 | 22943 | $524935.84 |  |
|  2/12/2026 | 5462 | $124970.56 |  |
|  2/13/2026 | 8656 | $198040.10 |  |
|  2/27/2026 | 5465 | $125039.20 |  |
|  3/12/2026 | 10926 | $249986.88 |  |
|  3/13/2026 | 8709 | $199254.31 |  |
|  3/31/2026 | 29524 | $675509.12 |  |
|  4/15/2026 | 8689 | $198810.06 |  |
|  4/16/2026 | 16453 | $376444.64 |  |
|  4/30/2026 | 28408 | $649975.04 |  |
|  5/7/2026 | 140575 | $3216356.00 |  |

---

From January 1, 2023 to May 11, 2026, we made sales or issuances to certain accredited investors of unregistered shares of Class T common stock listed in the table below:

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  2/7/2023 | 1000 | $25000.00 | $1625.00 |
|  3/25/2025 | 6000 | $150000.00 | $9750.00 |
|  5/15/2025 | 32 | $728.83 |  |
|  5/30/2025 | 2000 | $50000.00 | $3250.00 |
|  6/12/2025 | 2000 | $50000.00 | $3250.00 |
|  6/16/2025 | 32 | $728.83 |  |
|  6/27/2025 | 2000 | $50000.00 | $3250.00 |
|  7/10/2025 | 2000 | $50000.00 | $3250.00 |
|  7/15/2025 | 46 | $1046.21 |  |
|  7/25/2025 | 600 | $15000.00 | $975.00 |
|  8/5/2025 | 1200 | $30000.00 | $1950.00 |
|  8/15/2025 | 46 | $1051.18 |  |
|  9/10/2025 | 1000 | $25000.00 | $1625.00 |
|  9/15/2025 | 60 | $1370.73 |  |
|  9/30/2025 | 5505 | $125954.40 |  |
|  10/15/2025 | 68 | $1560.04 |  |
|  10/30/2025 | (55) | $(1256.00) |  |
|  11/14/2025 | 83 | $1897.88 |  |
|  11/30/2025 | (19) | $(442.20) |  |
|  12/15/2025 | 68 | $1555.68 |  |
|  1/15/2026 | 68 | $1566.24 |  |

---

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  2/13/2026 | 76 | $1734.31 |  |
|  3/13/2026 | 76 | $1745.01 |  |
|  4/15/2026 | 77 | $1756.84 |  |

---

From January 1, 2023 to May 11, 2026, we made sales or issuances to certain accredited investors of unregistered shares of our Series B preferred stock listed in the table below:

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  3/20/2024 | 255 | $255000.00 | $25500.00 |
|  3/27/2024 | 1186 | $1182600.00 | $115200.00 |
|  4/25/2024 | 699 | $692910.00 | $63627.30 |
|  5/8/2024 | 100 | $100000.00 | $10000.00 |
|  5/22/2024 | 406 | $401520.00 | $35985.60 |
|  6/5/2024 | 135 | $135000.00 | $13500.00 |
|  6/18/2024 | 150 | $150000.00 | $15000.00 |
|  7/2/2024 | 445 | $445000.00 | $44500.00 |
|  7/10/2024 | 434 | $434000.00 | $43400.00 |
|  7/24/2024 | 280 | $280000.00 | $24500.00 |
|  8/7/2024 | 639 | $611420.00 | $35492.60 |
|  8/9/2024 | 20 | $20000.00 | $2000.00 |
|  8/21/2024 | 545 | $524630.00 | $33518.90 |
|  9/4/2024 | 257 | $245310.00 | $13659.30 |
|  9/16/2024 | 356 | $345080.00 | $24352.40 |
|  9/25/2024 | 533 | $525860.00 | $45945.80 |
|  10/9/2024 | 678 | $670090.00 | $59652.70 |
|  10/23/2024 | 185 | $185000.00 | $18500.00 |
|  11/6/2024 | 311 | $299240.00 | $18987.20 |
|  11/21/2024 | 433 | $428100.00 | $38253.00 |
|  12/6/2024 | 55 | $55000.00 | $5500.00 |
|  12/18/2024 | 359 | $340240.00 | $16577.20 |
|  12/30/2024 | 1362 | $1326300.00 | $99429.00 |
|  1/9/2025 | 403 | $394530.00 | $31575.90 |
|  1/23/2025 | 568 | $564640.00 | $53339.20 |
|  2/7/2025 | 581 | $572530.00 | $49375.90 |
|  2/21/2025 | 571 | $554130.00 | $39723.90 |
|  3/7/2025 | 1557 | $1486510.00 | $83095.30 |
|  3/25/2025 | 726 | $714380.00 | $60631.40 |
|  4/9/2025 | 628 | $594540.00 | $28336.20 |
|  4/24/2025 | 1047 | $1011160.00 | $67784.80 |
|  4/30/2025 | 294 | $290920.00 | $26227.60 |
|  5/8/2025 | 338 | $319940.00 | $15198.20 |
|  5/22/2025 | 290 | $285100.00 | $23953.00 |
|  5/29/2025 | 41 | $41000.00 | $4100.00 |
|  5/30/2025 | 339 | $337530.00 | $32385.90 |
|  6/11/2025 | 1068 | $1012840.00 | $49985.20 |
|  6/20/2025 | 243 | $236490.00 | $17594.70 |
|  7/10/2025 | 673 | $647240.00 | $40767.20 |
|  7/25/2025 | 690 | $677820.00 | $56454.60 |
|  8/8/2025 | 1485 | $1448950.00 | $111368.50 |
|  8/25/2025 | 1415 | $1363550.00 | $88506.50 |
|  9/10/2025 | 1046 | $1016460.00 | $74173.80 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Total Shares** | **Aggregate Offering Price** | **Aggregate Commissions** |
|  9/25/2025 | 2426 | $2314420.00 | $127672.60 |
|  10/10/2025 | 1182 | $1132510.00 | $67225.30 |
|  10/24/2025 | 1853 | $1791190.00 | $121635.70 |
|  11/10/2025 | 1837 | $1737810.00 | $81534.30 |
|  11/25/2025 | 588 | $566790.00 | $36953.70 |
|  12/10/2025 | 2370 | $2253800.00 | $117314.00 |
|  12/18/2025 | 1026 | $999680.00 | $75490.40 |
|  12/30/2025 | 566 | $552910.00 | $43117.30 |
|  1/15/2026 | 1376 | $1325130.00 | $85143.90 |
|  1/30/2026 | 2309 | $2241540.00 | $161108.40 |
|  2/12/2026 | 1321 | $1244710.00 | $53457.70 |
|  2/27/2026 | 3202 | $3107780.00 | $223153.40 |
|  3/12/2026 | 1981 | $1881460.00 | $98560.00 |
|  3/19/2026 | 1285 | $1285000.00 | $128500.00 |
|  3/31/2026 | 811 | $793780.00 | $63880.00 |
|  4/16/2026 | 567 | $543200.00 | $32900.00 |
|  4/27/2026 | 700 | $700000.00 | $70000.00 |
|  4/30/2026 | 1676 | $1652900.00 | $144500.00 |
|  5/7/2026 | 4684 | $4616540.00 | $400940.00 |

---

On November 12, 2023, we made sales or issuances to certain accredited investors of 44,100.00 unregistered shares of our Series A preferred stock for an aggregate offering price of $44,100,000.00 without any selling commissions. On March 27, 2025, we made sales or issuances to certain accredited investors of 56,000.00 unregistered shares of our Series C preferred stock for an aggregate offering price of $56,000,000.00 without any selling commissions.

From March 30, 2026 through May 11, 2026, we made sales or issuances to certain accredited investors of 37,780 unregistered shares of our Series D preferred stock for an aggregate offering price of $37.8 million without any selling commissions.

On December 29, 2025, our board of directors ratified the sales and issuances of the unregistered securities described above in accordance with section 204 of the DGCL. In connection with the ratification, we filed certificates of validation with the Delaware Secretary of State to reflect the intended number of authorized shares of common stock and preferred stock in our certificate of incorporation, which have been processed and are effective. We delivered notice of the ratification to our stockholders on January 15, 2026, in accordance with the requirements of Section 204 of the DGCL.

The transactions described above were made pursuant to Section 4(a)(2) of the Securities Act and/or Rule 506(b) under Regulation D of the Securities Act in that such sales and issuances did not involve a public offering.

**Item 16. Exhibits and Financial Statement Schedules.** 

(a) Exhibits:

---

| | |
|:---|:---|
| **Exhibit<br>No.** | **Description** |
| 1.1\* | Form of Underwriting Agreement. |
| 3.1 | [Amended and Restated Certificate of Incorporation of the Registrant (in effect prior to the offering).](d86452dex31.htm) |
| 3.2 | [Amendment to Amended and Restated Certificate of Incorporation of the Registrant (in effect prior to the offering).](d86452dex32.htm) |

---

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Exhibit<br>No.** | **Description** |
| 3.3 | [Form of Amended and Restated Certificate of Incorporation of the Registrant (to be in effect after the offering).](d86452dex33.htm) |
| 3.4 | [Certificate of Designations of Series B Preferred Stock of the Registrant.](d86452dex34.htm) |
| 3.5 | [Certificate of Designations of Series D Preferred Stock of the Registrant.](d86452dex35.htm) |
| 3.6 | [Bylaws of the Registrant (in effect prior to the offering).](d86452dex36.htm) |
| 3.7 | [Form of Amended and Restated Bylaws of the Registrant (to be in effect after the offering).](d86452dex37.htm) |
| 4.1\* | Form of Specimen Stock Certificate evidencing the shares of Class A common stock. |
| 4.2 | [Note Purchase Agreement, dated as of September 18, 2024, by and among WhiteHawk Income Corporation, U.S. Bank Trust Company, National Association, as agent and collateral agent, and the note holders party thereto.](d86452dex42.htm) |
| 4.3 | [First Amendment to Note Purchase Agreement, dated as of March 31, 2025, by and among WhiteHawk Income Corporation, U.S. Bank Trust Company, National Association, as agent and collateral agent, and the note holders party thereto.](d86452dex43.htm) |
| 4.4 | [Second Amendment to Note Purchase Agreement, dated as of June 23, 2025, by and among WhiteHawk Income Corporation, U.S. Bank Trust Company, National Association, as agent and collateral agent, and the note holders party thereto.](d86452dex44.htm) |
| 4.5 | [Third Amendment to Note Purchase Agreement, dated as of January 27, 2026, by and among WhiteHawk Income Corporation, U.S. Bank Trust Company, National Association, as agent and collateral agent, and the note holders party thereto.](d86452dex45.htm) |
| 4.6 | [Fourth Amendment to Note Purchase Agreement, dated as of March 26, 2026, by and among WhiteHawk Income Corporation, U.S. Bank Trust Company, National Association, as agent and collateral agent, and the note holders party thereto.](d86452dex46.htm) |
| 4.7 | [Fifth Amendment to Note Purchase Agreement, dated as of March 30, 2026, by and among WhiteHawk Income Corporation, U.S. Bank Trust Company, National Association, as agent and collateral agent, and the note holders party thereto.](d86452dex47.htm) |
| 4.8\* | Amended and Restated Note Purchase Agreement. |
| 5.1\* | Opinion of Latham & Watkins LLP. |
| 10.1 | [Administrative Services Agreement, dated as of March 1, 2022, by and between WhiteHawk Income Corporation and WhiteHawk Management, LLC.](d86452dex101.htm) |
| 10.2 | [Amended and Restated Investment Management Agreement, dated as of October 3, 2025, by and between WhiteHawk Income Corporation and WhiteHawk Management, LLC.](d86452dex102.htm) |
| 10.3 | [Purchase and Sale Agreement, dated as of March 31, 2025, by and between Three Rivers Royalty, LLC and WhiteHawk Income Marcellus LLC.](d86452dex103.htm) |
| 10.4 | [Agreement and Plan of Merger, dated as of May 8, 2025, by and among PHX Minerals Inc., WhiteHawk Acquisition, Inc. and WhiteHawk Merger Sub, Inc.](d86452dex104.htm) |
| 10.5\* | Form of Registration Rights Agreement (to be in effect after the offering). |
| 10.6 | [Form of Indemnification Agreement.](d86452dex106.htm) |
| 10.7 | [WhiteHawk Income Corporation 2026 Equity Incentive Plan, dated January 23, 2026.](d86452dex107.htm) |
| 10.8\* | Form of Amended and Restated Limited Partnership Agreement of WhiteHawk OpCo (to be in effect after the offering). |

---

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Exhibit<br>No.** | **Description** |
| 10.9\* | Contribution Agreement, dated as of , 2026, by and between , and . |
| 10.10 | [Legacy Form of Restricted Stock Unit Grant Agreement for Employees.](d86452dex1010.htm) |
| 10.11 | [Legacy Form of Restricted Stock Unit Grant Agreement for Directors.](d86452dex1011.htm) |
| 10.12 | [Credit Agreement, dated as of May 10, 2026, among WhiteHawk Income Corporation, as Parent, WhiteHawk Income Operating Partnership L.P., as Borrower, Capital One, National Association, as Administrative Agent and Issuing Bank, and the lenders party thereto.](d86452dex1012.htm) |
| 10.13\* | Amended and Restated WhiteHawk Income Corporation 2026 Equity Incentive Plan, to be effective upon the consummation of this offering. |
| 10.14\* | WhiteHawk Minerals Corp. Non-Employee Director Compensation Policy, to be effective upon the consummation of this offering. |
| 10.15\* | Employment Agreement, dated as of , 2026, by and between Daniel Herz, WhiteHawk Minerals Corp., WhiteHawk Income Operating Partnership L.P. and any subsidiaries or affiliates as may employ Mr. Herz from time to time. |
| 10.16\* | Employment Agreement, dated as of , 2026, by and between Jeffrey Slotterback, WhiteHawk Minerals Corp., WhiteHawk Income Operating Partnership L.P. and any subsidiaries or affiliates as may employ Mr. Slotterback from time to time. |
| 16.1 | [Letter from Whitley Penn LLP to the Securities and Exchange Commission.](d86452dex161.htm) |
| 21.1\* | List of subsidiaries of the Registrant. |
| 23.1 | [Consent of Baker Tilly US, LLP.](d86452dex231.htm) |
| 23.2 | [Consent of Whitley Penn LLP.](d86452dex232.htm) |
| 23.3 | [Consent of Plante & Moran, PLLC.](d86452dex233.htm) |
| 23.4 | [Consent of Ernst & Young LLP.](d86452dex234.htm) |
| 23.5 | [Consent of Schaper Energy Consulting, LLC, regarding the report of Schaper Energy Consulting, LLC, Independent Petroleum Engineering Consultants, dated December 12, 2025, for WhiteHawk Income Corporation.](d86452dex235.htm) |
| 23.6 | [Consent of Cawley, Gillespie and Associates, Inc. regarding the Report of Cawley, Gillespie and Associates, Inc., Independent Petroleum Engineering Consultants, dated January 13, 2025, for PHX Minerals, Inc.](d86452dex236.htm) |
| 23.7 | [Consent of Ryder Scott Company, L.P. regarding the Report of Ryder Scott Company, L.P., Independent Petroleum Engineering Consultants, dated March 31, 2026, for Three Rivers Royalty, LLC.](d86452dex237.htm) |
| 23.8 | [Consent of Cawley, Gillespie and Associates, Inc. regarding the Report of Cawley, Gillespie and Associates, Inc., Independent Petroleum Engineering Consultants, for WhiteHawk Income Corporation and with respect to WhiteHawk Income Corporation's estimated reserves and related future net cash flows related to its properties as of December 31, 2025.](d86452dex238.htm) |
| 23.9\* | Consent of Latham & Watkins LLP (included in Exhibit 5.1). |
| 24.1 | [Power of Attorney (included on signature page).](#sig) |
| 99.1 | [Report of Schaper Energy Consulting, LLC, Independent Petroleum Engineering Consultants, dated February 4, 2025 for WhiteHawk Income Corporation.](d86452dex991.htm) |
| 99.2 | [Report of Cawley, Gillespie and Associates, Inc., Independent Petroleum Engineering Consultants, dated January 13, 2025 for PHX Minerals, Inc.](d86452dex992.htm) |

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##### [**Table of Contents**](#toc)

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| | |
|:---|:---|
| **Exhibit<br>No.** | **Description** |
| 99.3 | [Report of Ryder Scott Company, L.P., Independent Petroleum Engineering Consultants, dated March 31, 2026 for Three Rivers Royalty, LLC.](d86452dex993.htm) |
| 99.4 | [Report of Cawley, Gillespie and Associates, Inc., Independent Petroleum Engineering Consultants for WhiteHawk Income Corporation.](d86452dex994.htm) |
| 99.5\* | Consent of Director Nominee. |
| 107 | [Filing Fee Table.](d86452dexfilingfees.htm) |

---

\* To be filed by amendment.

(b) Financial Statement Schedules:

All financial statement schedules are omitted because the information required to be set forth therein is not applicable or is shown in the consolidated financial statements or the notes thereto.

**Item 17. Undertakings.** 

The undersigned registrant hereby undertakes to provide to the underwriters, at the closing specified in the underwriting agreement, certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer, or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act, the information omitted from the form of
prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of
this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities Act, each post-effective amendment that
contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

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##### [**Table of Contents**](#toc)
**SIGNATURES** 

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Philadelphia, State of Pennsylvania, on May 11, 2026.

---

| | |
|:---|:---|
| WhiteHawk Income Corporation | WhiteHawk Income Corporation |
| By: | /s/ Daniel Herz |
|  | Name: Daniel Herz |
|  | Title: Chief Executive Officer |

---

**POWER OF ATTORNEY** 

KNOW ALL PERSONS BY THESE PRESENTS, that each of the undersigned constitutes and appoints each of Daniel Herz and Jeffrey Slotterback, or any of them, each acting alone, their true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for such person and in his name, place and stead, in any and all capacities, to sign this registration statement on Form S-1 (including all pre-effective and post-effective amendments and registration statements filed pursuant to Rule 462(b) under the Securities Act of 1933), and to file the same, with all exhibits thereto, and other documents in connection therewith, with the SEC, granting unto said attorneys-in-fact and agents, each acting alone, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming that any such attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities indicated on May 11, 2026.

---

| | |
|:---|:---|
| **Signature** | **Title** |
| /s/ Daniel Herz<br> Daniel Herz | Chief Executive Officer and Director<br>(Principal Executive Officer) |
| /s/ Jeffrey Slotterback<br> Jeffrey Slotterback | Chief Financial Officer, Treasurer, Secretary and Director<br> (Principal Financial and Accounting Officer) |
| /s/ Jeffery Smith<br> Jeffery Smith | President and Director |
| /s/ Michael Downs<br> Michael Downs | Chief Operating Officer and Director |
| /s/ Matthew Heinlein<br> Matthew Heinlein | Vice President, Head of Corporate Development & Strategy and Director |
| /s/ Alan Bigman<br> Alan Bigman | Director |

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##### [**Table of Contents**](#toc)

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| | |
|:---|:---|
| **Signature** | **Title** |
| /s/ Andrew Ceitlin<br> Andrew Ceitlin | Director |
| /s/ Peggy Gold<br> Peggy Gold | Director |

---

## Exhibit 3.1

**Exhibit 3.1** 

**AMENDED AND RESTATED CERTIFICATE OF INCORPORATION** 

**OF** 

**WHITEHAWK INCOME CORPORATION** 

(originally incorporated on February 18, 2022)

Whitehawk Income Corporation, a Delaware corporation, certifies as follows:

**First:** The corporation has not received payment for any of its stock.

**Second:** The certificate of incorporation of the corporation is amended and restated to read in its entirety as follows:

**I.** 

The name of this corporation is Whitehawk Income Corporation (the **"Corporation").**

**II.** 

The address of the registered office of the Corporation in the State of Delaware 16192 Coastal Highway, in the City of Lewes, County of Sussex, 19958. The name of the registered agent of the Corporation at such address is Harvard Business Services, Inc.

**III.** 

The purpose of the Corporation is to engage in any lawful activity for which corporations may be organized under the Delaware General Corporation Law **("DGCL").**

**IV.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The total number of shares of all classes of stock which the Corporation shall have authority to issue is 6,400,000, consisting of 6,000,000 shares of Common Stock, par value $0.0001 per share **("Common Stock")** and 400,000 shares of Preferred Stock, par value $0.0001 per share **("Preferred Stock").** The class of Common Stock shall be divided into three series: 3,000,000 shares of Common Stock are designated as Class A Common Stock **("Class A Common Stock"),** 2,850,000 shares of Common Stock are designated as Class I Common Stock **("Class I Common Stock")** and 150,000 shares of Common Stock are designated as Class T Common Stock **("Class T Common Stock").**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Board of Directors of the Corporation (the **"Board")** is expressly authorized to provide, out of the unissued shares of Preferred Stock, for one or more series of Preferred Stock and, with respect to each such series, to fix the number of shares constituting such series and the designation of such series, the voting powers, if any, of the shares of such series, and the preferences and relative, participating, optional, or other special rights, if any, and any qualifications, limitations, or restrictions thereof, of the shares of such series. The powers, preferences and relative, participating, optional and other special rights of each series of Preferred Stock, and the qualifications, limitations or restrictions thereof, if any, may differ from those of any and all other series at any time outstanding.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. A share of Class T Common Stock (or fraction thereof) shall automatically convert into a share (or equal fraction) of Class I Common Stock on such date and time, as determined by the Corporation or its designee, on or after the date on which the total amount of selling commissions, placement agent fees and trail commissions in respect of such share of Class T Common Stock paid to the placement agent in the offering in which such share of Class T Common Stock was sold equals 9.6% of the gross proceeds of such offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. A stockholder of the Corporation may not sell, assign or transfer all or a portion of its shares without the prior written consent of the Corporation, which consent may be withheld in the Corporation's sole and absolute discretion; provided that a stockholder may, without such consent, transfer all or a portion of such stockholder's shares by succession or testamentary disposition upon the death of such stockholder.

**V.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The business and affairs of the Corporation shall be managed by or under the direction of the Board, and the directors comprising the Board need not be elected by written ballot.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. In furtherance and not in limitation of the powers conferred by the laws of the State of Delaware, the Board is authorized to amend or repeal the Bylaws of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Corporation shall not be governed by or subject to Section 203 of the DGCL

**VI.** 

To the fullest extent permitted by the DGCL, a director of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director. No amendment to, modification of, or repeal of this paragraph shall apply to or have any effect on the liability of a director for or with respect to any acts or omissions of such director occurring prior to such amendment. If the DGCL is amended to authorize corporate action further eliminating or limiting the personal liability of directors, then this paragraph should be read to eliminate or limit the liability of a director of the Corporation to the fullest extent permitted by the DGCL, as so amended.

**VII.** 

The Corporation reserves the right to amend, alter, or repeal any provision contained in this Certificate oflncorporation, in the manner now or hereafter prescribed by the laws of the State of Delaware, and all rights conferred herein are granted subject to this reservation.

## Exhibit 3.2

**Exhibit 3.2** 

**CERTIFICATE OF AMENDMENT** 

**OF** 

**AMENDED AND RESTATED CERTIFICATE OF INCORPORATION** 

**OF** 

**WHITEHAWK INCOME CORPORATION** 

Whitehawk Income Corporation, a Delaware corporation (the "**Corporation**"), certifies as follows:

**First:** Paragraph A of Article IV of the Amended and Restated Certificate of Incorporation of the Corporation is amended to read in its entirety as follows:

The total number of shares of all classes of stock which the Corporation shall have authority to issue is 51,000,000, consisting of 50,000,000 shares of Common Stock, par value $0.0001 per share ("**Common Stock**") and 1,000,000 shares of Preferred Stock, par value $0.0001 per share ("**Preferred Stock**"). The class of Common Stock shall be divided into three series: 13,800,000 shares of Common Stock are designated as Class A Common Stock ("**Class A Common Stock**"), 36,000,000 shares of Common Stock are designated as Class I Common Stock ("**Class I Common Stock**") and 200,000 shares of Common Stock are designated as Class T Common Stock ("**Class T Common Stock**").

**Second**: The foregoing amendment was adopted in accordance with Sections 242 and 228 of the Delaware General Corporation Law.

------

**IN WITNESS WHEREOF**, the undersigned has caused this Certificate of Amendment to be signed by its duly authorized officer on the date set forth below.

---

| | |
|:---|:---|
| **WHITEHAWK INCOME CORPORATION** | **WHITEHAWK INCOME CORPORATION** |
| By: | /s/ Jeffrey Slotterback |
|  | Jeffrey Slotterback |
|  | Chief Financial Officer |
| Date: May 5, 2026 | Date: May 5, 2026 |

---

## Exhibit 3.3

**Exhibit 3.3** 

**FORM OF AMENDED AND RESTATED CERTIFICATE OF INCORPORATION** 

**OF** 

**WHITEHAWK INCOME CORPORATION** 

WhiteHawk Income Corporation, a corporation organized and existing under the laws of the State of Delaware (the "***Corporation***"), hereby certifies as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The original Certificate of Incorporation of the Corporation was filed with the Office of the Secretary of State of the State of Delaware on February 18, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. This Amended and Restated Certificate of Incorporation of the Corporation, which restates, integrates and further amends the Amended and Restated Certificate of Incorporation as heretofore amended and supplemented, was duly adopted by all necessary action of the Board of Directors of the Corporation and the stockholders of the Corporation in accordance with the provisions of Sections 242, 245 and 228 of the General Corporation Law of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The text of the Amended and Restated Certificate of Incorporation of the Corporation as heretofore amended and supplemented is hereby amended, integrated and restated in its entirety to read in full as follows:

**ARTICLE I.** 

The name of the corporation is WhiteHawk Minerals Corp. (the "***Corporation***").

**ARTICLE II.** 

The address of the Corporation's registered office in the State of Delaware is 16192 Coastal Highway, in the City of Lewes, County of Sussex, 19958. The name of its registered agent at such address is Harvard Business Services, Inc.

**ARTICLE III.** 

The nature of the business of the Corporation and the objects or purposes to be transacted, promoted or carried on by the Corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware (the "***DGCL***"), including, without limitation, (i) investing in securities of WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership, or any successor entities thereto ("***WhiteHawk OpCo***") and any of its subsidiaries, (ii) exercising all rights, powers, privileges and other incidents of ownership or possession with respect to the Corporation's assets, including managing, holding, selling and disposing of such assets and (iii) engaging in any other activities incidental or ancillary thereto.

------

**ARTICLE IV.** 

Section 4.1 <u>Authorized Stock</u>. The total number of shares of all classes of stock that the Corporation is authorized to issue is three hundred sixty million (360,000,000), consisting of the following three classes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Two hundred fifty million (250,000,000) shares of Class A common stock, with a par value of $0.0001 per share (the "***Class A Common Stock***");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) One hundred million (100,000,000) shares of Class B common stock, with a par value of $0.0001 per share (the "***Class B Common Stock***"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Ten million (10,000,000) shares of preferred stock, with a par value of $0.0001 per share (the "***Preferred Stock***").

Section 4.2 <u>Preferred Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Blank Check Preferred Stock</u>. The Board of Directors is authorized to provide, out of the unissued shares of Preferred Stock, for the issuance of shares of Preferred Stock in one or more series, and by filing a certificate pursuant to the applicable law of the State of Delaware (such certificate being hereinafter referred to as a "***Preferred Stock Designation***"), to establish from time to time the number of shares to be included in each such series and to fix the powers, designations, preferences and relative, participating, optional or other special rights, and qualifications, limitations or restrictions thereof, including, without limitation, the authority to fix or alter the dividend rights, dividend rates, conversion rights, exchange rights, voting powers, rights and terms of redemption (including sinking and purchase fund provisions), the redemption price or prices, restrictions on the issuance of shares of such series, the dissolution preferences and the rights in respect of any distribution of assets of any wholly unissued series of Preferred Stock and the number of shares constituting any such series, and the designation thereof, or any of them and to increase (but not above the total number of authorized shares of Preferred Stock) or decrease (but not below the number of shares of such series then outstanding) the number of shares of any series so created (except where otherwise provided in a Preferred Stock Designation), subsequent to the issue of that series. In case the authorized number of shares of any series shall be so decreased, the shares constituting such decrease shall, unless otherwise provided in the Preferred Stock Designation, resume the status as authorized, but undesignated Preferred Stock. Without limiting the generality of the foregoing, the resolution or resolutions providing for the creation and issuance of any series of Preferred Stock may provide that such series shall be superior or rank equally or be junior to any other series of Preferred Stock to the extent permitted by law and this Certificate of Incorporation (including any Preferred Stock Designation). Except as otherwise required by law, holders of any series of Preferred Stock shall be entitled only to such voting rights, if any, as shall expressly be granted thereto by this Certificate of Incorporation (including any Preferred Stock Designation). There shall be no limitation or restriction on any variation between any of the different series of Preferred Stock as to the designations, powers, preferences and relative, participating, optional or other special rights, and the qualifications, limitations or restrictions thereof; and the several series of Preferred Stock may vary in any and all respects as fixed and determined by the resolution or resolutions of the Board of Directors or by a duly authorized committee of the Board of Directors, providing for the issuance of the various series of Preferred Stock.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Existing Preferred Stock</u>. The number of shares, terms, rights, powers, preferences, privileges, qualifications, limitations and restrictions of each series of Preferred Stock outstanding immediately prior to the Effective Time (as defined below), each as previously adopted by the Board of Directors, shall continue to be governed by and subject to the terms and conditions set forth in their respective Preferred Stock Designations, as amended and in effect immediately prior the Effective Time, attached hereto. In the event of any conflict between the provisions of this Section 4.2 and the terms of any such Preferred Stock Designation, the terms of such Preferred Stock Designation shall control with respect to the applicable series of Preferred Stock. The Board of Directors is authorized to amend, modify, or supplement the terms of any Preferred Stock Designation, including those attached hereto, to the maximum extent permitted by this Certificate of Incorporation and the General Corporation Law of the State of Delaware.

Section 4.3 <u>Reclassification of Common Stock</u>. Upon effectiveness of the filing of this Certificate of Incorporation with the Secretary of the State of Delaware (the "***Effective Time***"), and without any further action required by the Corporation or its stockholders: (i) each share of then existing Class A Common Stock, par value $0.0001 per share ("***Old Class A Common Stock***"), issued and outstanding or held in treasury immediately prior to the Effective Time shall be reclassified into one (1) validly issued, fully paid and non-assessable share of Class A Common Stock, (ii) each share of Class I Common Stock, par value $0.0001 per share ("***Class I Common Stock***"), issued and outstanding or held in treasury immediately prior to the Effective Time shall be reclassified into one (1) validly issued, fully paid and non-assessable share of Class A Common Stock, and (iii) each share of Class T Common Stock, par value $0.0001 per share ("***Class T Common Stock***" and, together with Old Class A Common Stock and Class I Common Stock, the "***Old Common Stock***"), issued and outstanding or held in treasury immediately prior to the Effective Time shall be reclassified into one (1) validly issued, fully paid and non-assessable share of Class A Common Stock (clauses (i), (ii) and (iii), collectively, the "<u>Common Stock</u> <u>Reclassification</u>"). Each stock certificate that, immediately prior to the Effective Time, represented shares of Old Common Stock shall, from and after the Effective Time, automatically and without any action on the part of the respective holder thereof, represent the same number of whole shares of Class A Common Stock into which the shares of Old Common Stock represented by such certificate have been reclassified pursuant to the Common Stock Reclassification, until the same shall be surrendered to the Corporation. No fractional shares of Class A Common Stock shall be issued in connection with the Common Stock Reclassification. In lieu of any fractional share of Class A Common Stock to which a holder would otherwise be entitled as a result of the Common Stock Reclassification, such fractional share shall be rounded up to the nearest whole share of Class A Common Stock. Whether or not fractional shares would be issuable upon the Common Stock Reclassification shall be determined on the basis of the total number of shares of Old Common Stock held by such holder immediately prior to the Effective Time and the aggregate number of shares of Class A Common Stock issuable to such holder upon such Common Stock Reclassification. All share numbers, dollar amounts and other provisions set forth herein give effect to the Common Stock Reclassification.

------

Section 4.4 <u>Number of Authorized Shares</u>. The number of authorized shares of any of the Class A Common Stock, Class B Common Stock, or Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) without a separate vote of any holders of shares of Class A Common Stock, Class B Common Stock or Preferred Stock, unless a separate vote of any such holders is required pursuant to the terms of any Preferred Stock Designation, irrespective of the provisions of Section 242(b)(2) of the DGCL (or any successor provision thereto).

Section 4.5 <u>Class</u> <u>A Common Stock and Class</u> <u>B Common Stock</u>. The powers, preferences and rights of the Class A Common Stock and the Class B Common Stock, and the qualifications, limitations or restrictions thereof are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voting Rights</u>. Except as otherwise required by law,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each share of Class A Common Stock shall entitle the record holder thereof as of the applicable record date to one (1) vote per share in person or by proxy on all matters submitted to a vote of the holders of Class A Common Stock, whether voting separately as a class or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each share of Class B Common Stock shall entitle the record holder thereof as of the applicable record date to one (1) vote per share in person or by proxy on all matters submitted to a vote of the holders of Class B Common Stock, whether voting separately as a class or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Except as otherwise required by applicable law or this Certificate of Incorporation, the holders of shares of Class A Common Stock and Class B Common Stock shall vote together as a single class (or, if any holders of shares of Preferred Stock are entitled to vote together with the holders of Class A Common Stock and Class B Common Stock, as a single class with such holders of Preferred Stock) on all matters submitted to a vote of stockholders of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Dividends</u>. Subject to applicable law and the rights, if any, of the holders of any outstanding series of Preferred Stock or any class or series of stock having a preference over or the right to participate with the Class A Common Stock with respect to the payment of dividends, dividends may be declared and paid on the Class A Common Stock out of the assets or funds of the Corporation that are by law available therefor, at such times and in such amounts as the Board of Directors in its discretion shall determine. Other than in connection with a dividend declared by the Board of Directors in connection with a "poison pill" or similar stockholder rights plan, dividends shall not be declared or paid on the Class B Common Stock and the holders of shares of Class B Common Stock shall have no right to receive dividends in respect of such shares of Class B Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Liquidation Rights</u>. In the event of liquidation, dissolution or winding up of the affairs of the Corporation, whether voluntary or involuntary, after payment or provision for payment of the debts and other liabilities of the Corporation and after making provisions for preferential and other amounts, if any, to which the holders of any outstanding series of Preferred Stock or any class or series of stock having a preference over or the right to participate with the

------

Class A Common Stock with respect to the distribution of assets of the Corporation upon such dissolution, liquidation or winding up shall be entitled, the remaining assets and funds of the Corporation available for distribution shall be divided among and paid ratably to the holders of all outstanding shares of Class A Common Stock in proportion to the number of shares held by each such stockholder. The holders of shares of Class B Common Stock, as such, shall not be entitled to receive any assets of the Corporation in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation. A consolidation, reorganization or merger of the Corporation with any other Person or Persons (as defined below), a conversion of the Corporation, or a sale of all or substantially all of the assets of the Corporation, shall not be considered to be a dissolution, liquidation or winding up of the Corporation within the meaning of this <u>Section</u> <u>4.5(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Class</u> <u>B Common Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (x) shares of Class B Common Stock may be issued only to, and registered only in the name of, the Continuing Equity Owners (as defined below) and their respective Permitted Transferees (as defined below) in accordance with <u>Section</u> <u>4.6</u> (including all subsequent Permitted Transferees) (the Continuing Equity Owners together with such Persons, collectively, the "***Permitted Class B Owners***") or in the name of the Corporation and (y) the aggregate number of shares of Class B Common Stock at any time registered in the name of each such Permitted Class B Owner must be equal to the aggregate number of Common Units (as defined below) held of record at such time by such Permitted Class B Owner under the LP Agreement (as defined below). As used in this Certificate of Incorporation, (A) "***Continuing Equity Owner***" means certain holders of Common Units (other than the Corporation) of WhiteHawk OpCo, as from time to time set forth on <u>Exhibit A</u> of the LP Agreement, (B) "***Common Unit***" has the meaning set forth in the Amended and Restated Limited Partnership Agreement of WhiteHawk OpCo, dated as of the date hereof, as such agreement may be further amended, restated, amended and restated, supplemented or otherwise modified from time to time (the "***LP Agreement***"), and (C) "***Permitted Transfer***" means a transfer or assignment of Class B Common Stock (or any legal or beneficial interest in such shares) by the holder thereof to any transferee or assignee only to the extent permitted by the LP Agreement (and a holder of Class B Common Stock, as applicable pursuant to a Permitted Transfer, a "***Permitted Transferee***") and only if such holder also simultaneously Transfers an equal number of such holder's Common Units to such Permitted Transferee, if applicable, in compliance with the LP Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Corporation shall, to the fullest extent permitted by law, undertake all necessary and appropriate action within its control to ensure that the number of shares of Class B Common Stock issued by the Corporation at any time to, or otherwise held of record by, any Permitted Class B Owner shall be equal to the aggregate number of Common Units held of record by such Permitted Class B Owner in accordance with the terms of the LP Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event that there is a merger, consolidation, conversion, transfer or Change of Control (as defined below) of the Corporation that was approved by the Board of Directors prior to such merger, consolidation, conversion, transfer or Change of Control, without limiting the rights of the holders of Class B Common Stock to have their Common Units redeemed or exchanged in accordance with the LP Agreement, the holders of shares of Class B

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Common Stock shall be entitled to receive securities in any such surviving entity that has substantially similar terms, including with respect to economics and structural protections, as the Class B Common Stock (each, a "***Substantially Equivalent Security***") or, to the extent a Substantially Equivalent Security is not available in the event of such merger, consolidation, conversion, transfer or Change of Control of the Corporation, the holders of shares of Class B Common Stock shall otherwise not be entitled to receive more than $0.0001 per share of Class B Common Stock, whether in the form of consideration for such shares or in the form of a distribution of the proceeds of a sale of all or substantially all of the assets of the Corporation with respect to such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Upon the redemption or exchange of any Common Units held by a Permitted Class B Owner pursuant to the terms of the LP Agreement, a number of shares of Class B Common Stock registered in the name of such Permitted Class B Owner equal to the number of Common Units so redeemed or exchanged shall automatically and without further action on the part of the Corporation or such Permitted Class B Owner be cancelled for no consideration and retired by the Corporation and shall not be reissued by the Corporation. The Corporation shall take all actions necessary to cause such cancellation and retirement of shares of Class B Common Stock, including, without limitation, updating its books and records and those of the Transfer Agent to reflect that such shares of Class B Common Stock are no longer outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) All shares of Class A Common Stock issued upon any redemption of shares of Class B Common Stock and Common Units will, upon issuance in accordance with the LP Agreement, be validly issued, fully paid and non-assessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Adjustments for Subdivisions, Combinations or Reclassifications of Class</u> <u>A Common Stock and Class</u> <u>B Common Stock.</u> If the Corporation in any manner subdivides, combines or reclassifies the outstanding shares of Class A Common Stock or Class B Common Stock, the outstanding shares of the other such class shall, concurrently therewith, be subdivided, combined, or reclassified in the same proportion and manner such that the same proportionate equity ownership between the holders of outstanding Class A Common Stock and Class B Common Stock on the record date for such subdivision, combination or reclassification is preserved, unless different treatment of the shares of each such class is approved by (i) the holders of a majority of the outstanding Class A Common Stock and (ii) the holders of a majority of the outstanding Class B Common Stock, each of (i) and (ii) voting as separate classes. In the event of any such subdivision, combination or reclassification, the Corporation shall cause WhiteHawk OpCo to make corresponding changes to the Common Units to give effect to such subdivision, combination or reclassification, as applicable.

Section 4.6 <u>Transfer of Class</u> <u>B Common Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A holder of Class B Common Stock may surrender and transfer shares of such Class B Common Stock to the Corporation for cancellation for no consideration at any time. Following the surrender and transfer, or other acquisition, of any shares of Class B Common Stock to or by the Corporation, the Corporation will take all actions necessary to cancel and retire such shares and such shares shall not be re-issued by the Corporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as set forth in <u>Section</u> <u>4.6(a)</u>, a holder of Class B Common Stock may Transfer shares of Class B Common Stock only to a Permitted Transferee of such holder, and only if such holder also simultaneously Transfers an equal number of such holder's Common Units to such Permitted Transferee in compliance with the LP Agreement. The Transfer restrictions described in this <u>Section</u> <u>4.6(b)</u> are referred to as the "***Restrictions***".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any purported Transfer of shares of Class B Common Stock in violation of the Restrictions shall be null and void *ab initio*. If, notwithstanding the Restrictions, a Person, voluntarily or involuntarily (including by way of a foreclosure), purportedly becomes or attempts to become, the purported owner (the "***Purported Owner***") of shares of Class B Common Stock, in violation of the Restrictions, then the Purported Owner shall not obtain any rights in, to or with respect to such shares of (i) Class B Common Stock, and the purported Transfer of the Class B Common Stock to the Purported Owner shall not be recognized by the Corporation, the Corporation's transfer agent (the "***Transfer Agent***") or the Secretary of the Corporation and (ii) each holder of such Class B Common Stock shall, to the fullest extent permitted by law, automatically, without any further action on the part of the Corporation, the holder thereof, the Purported Owner or any other party, not be entitled to any voting rights with respect to those shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon a determination by the Board of Directors that a Person has attempted or may attempt to Transfer or to acquire Class B Common Stock in violation of the Restrictions, the Corporation may take such action as it deems necessary or advisable to refuse to give effect to such Transfer or acquisition on the books and records of the Corporation, including without limitation to cause the Transfer Agent or the Secretary of the Corporation, as applicable, to not record the Purported Owner as the record owner of the Class B Common Stock on the books and records of the Corporation and to institute proceedings to enjoin or rescind any such Transfer or acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Board of Directors may, to the extent permitted by law, from time to time establish, modify, amend or rescind, by bylaw or otherwise, regulations and procedures not inconsistent with the provisions of this <u>Section</u> <u>4.6</u> for determining whether any Transfer or acquisition of shares of Class B Common Stock would violate the Restrictions, and for the orderly application, administration and implementation of the provisions of this <u>Section</u> <u>4.6</u>. Any such procedures and regulations shall be kept on file with the Secretary of the Corporation and with the Transfer Agent and shall be made available for inspection by and, upon written request shall be mailed to, any requesting holders of shares of stock of the Corporation.

Section 4.7 <u>Certificates</u>. All certificates or book entries representing shares of Class B Common Stock shall bear a legend substantially in the following form (or in such other form as the Board of Directors may determine):

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THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE RESTRICTIONS (INCLUDING RESTRICTIONS ON TRANSFER) SET FORTH IN THE CERTIFICATE OF INCORPORATION OF THE CORPORATION AS IT MAY BE AMENDED AND/OR RESTATED AND THE LIMITED PARTNERSHIP AGREEMENT OF WHITEHAWK INCOME OPERATING PARTNERSHIP L.P. AS IT MAY BE AMENDED AND/OR RESTATED (COPIES OF WHICH ARE ON FILE WITH THE SECRETARY OF THE CORPORATION AND SHALL BE PROVIDED FREE OF CHARGE TO ANY STOCKHOLDER MAKING A REQUEST THEREFOR).

Section 4.8 <u>Amendment to Preferred Stock Terms</u>.

Except as otherwise required by law, neither the holders of Class A Common Stock nor Class B Common Stock shall be entitled to vote on any amendment to this Certificate of Incorporation (including any Preferred Stock Designation) that relates solely to the terms of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to this Certificate of Incorporation (including any Preferred Stock Designation) or the DGCL.

Section 4.9 <u>Restrictions on Transfer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No holder of any capital stock of the Corporation that acquired its shares thereof prior to the consummation of an underwritten initial public offering of Class A Common Stock (an "***IPO***," and each such holder an "***Initial Stockholder***") shall be permitted to, directly or indirectly, offer, sell, contract to sell, pledge, grant any option to purchase or otherwise dispose of (collectively, a "***Disposition***") any Class A Common Stock, or any securities convertible into or exercisable or exchangeable for, or any rights to purchase or otherwise acquire, which includes engaging in any hedging, collar (whether or not for any consideration) or other transaction that is designed to or reasonably expected to lead or result in a Disposition, held by such Initial Stockholder or acquired by such Initial Stockholder immediately after the consummation of an IPO, or that may be deemed to be beneficially owned by such Initial Stockholder (collectively, the "***<u>Lock-Up</u>***"), pursuant to the Securities Act and the Exchange Act, for a period of 365 days following the consummation of the IPO, or such shorter period as determined by the Board of Directors with respect to all Initial Stockholders or any Initial Stockholder, and with respect to all or any portion of the shares held by any such Initial Stockholder (the "***<u>Lock-Up Period</u>***"); *provided that* the Lock-Up Period shall not be less than 180 days without the prior written consent of the managing underwriter of such IPO. Each Initial Stockholder agrees to execute such agreement as may be reasonably requested by the managing underwriter of such IPO that is necessary to give further effect hereto; provided that in the event of any conflict or inconsistency between the terms of such separate agreement and this <u>Section</u> <u>4.9</u>, the terms of such separate agreement shall control; provided further that no such agreement shall be required for the Lock-Up to take effect upon consummation of an IPO. Following the expiration of the Lock-Up Period, the Initial Stockholders may effect a Disposition of all or any portion of their Class A Common Stock, subject to compliance with applicable securities laws, policies of the Corporation, this Certificate of Incorporation, the bylaws of the Corporation (as amended and/or restated, the "***<u>Bylaws</u>***") and any other requirements imposed by the Corporation or the transfer agent and registrar with respect to the Class A Common Stock.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding <u>Section</u> <u>4.9(a)</u>, the Lock-Up shall not apply to (i) bona fide gifts, sales or other dispositions of shares of any class of the Corporation's capital stock, in each case, that are made exclusively between and among an Initial Stockholder and members of the Initial Stockholder's family, or affiliates of the Initial Stockholder, including its partners (if a partnership) or members (if a limited liability company); provided that it shall be a condition to any transfer pursuant to this clause (i) that (A) the transferee/donee, through its subsequent ownership of such transferred shares of Class A Common Stock, is bound by the restrictions set forth in <u>Section</u> <u>4.9(a)</u> to the same extent as the transferor/donor, (B) each party (donor, donee, transferor or transferee) shall not be required by law (including without limitation the disclosure requirements of the Securities Act and the Exchange Act) to make, and shall agree to not voluntarily make, any filing or public announcement of the transfer or disposition prior to the expiration of the Lock-Up Period, and (C) the Initial Stockholder notifies the managing underwriter of such IPO at least two business days prior to the proposed transfer or disposition, (ii) any exercise of options or vesting or exercise of any other equity-based award, in each case, under the Corporation's equity incentive plan or any other plan or agreement described in the prospectus included in the registration statement on Form S-1 filed in connection with an IPO, including any Class A Common Stock withheld by the Corporation for the payment of taxes due upon such exercise or vesting; provided that (A) no filing or public announcement by any party under the Exchange Act or otherwise shall be required or shall be voluntarily made in connection with such exercise or vesting and (B) any Class A Common Stock received upon such exercise or vesting, following any applicable net settlement or net withholding, will also be subject to the Lock-Up; (iii) the establishment of any contract, instruction or plan that satisfies all of the requirements of Rule 10b5-1 (a "***<u>Rule 10b5-1 Plan</u>***") under the Exchange Act; provided, however, that no sales of Class A Common Stock or securities convertible into, or exchangeable or exercisable for, Class A Common Stock, shall be made pursuant to a Rule 10b5-1 Plan prior to the expiration of the Lock-Up Period; provided further, that the Corporation is not required to report the establishment of such Rule 10b5-1 Plan in any public report or filing with the U.S. Securities and Exchange Commission under the Exchange Act during the Lock-Up Period and does not otherwise voluntarily effect any such public filing or report regarding such Rule 10b5-1 Plan; and (iv) redemptions of shares of Class B Common Stock and Common Units in accordance with the LP Agreement for shares of Class A Common Stock; provided, however, that no sales of Class A Common Stock received as a result therefrom shall be made prior to the expiration of the Lock-Up Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Unless the written approval of (i) the managing underwriter of such IPO is obtained with respect to a Disposition prior to the date that is 180 days following the consummation of an IPO and/or (ii) the Board of Directors is obtained with respect to a Disposition following the date that is prior to the date that is 365 days following the consummation of an IPO, such purported Disposition shall not be effective to transfer record, beneficial, legal or any other ownership of such Class A Common Stock, and the transferee shall not be entitled to any rights as a stockholder of the Corporation with respect to the Class A Common Stock purported to be purchased, acquired or transferred in the Disposition (including, without limitation, the right to vote or to receive dividends with respect thereto). Each such share of Class A Common Stock subject to the Lock-Up Period shall bear the following legend (or any substantially similar legend):

THE SHARES REPRESENTED HEREBY ARE SUBJECT TO A LOCK-UP PERIOD AS SET FORTH IN THE CERTIFICATE OF INCORPORATION, AS IT MAY BE AMENDED AND/OR RESTATED, OF WHITEHAWK MINERALS CORP.

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**ARTICLE V.** 

Section 5.1 <u>Shares Reserved for Issuance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall at all times reserve and keep available out of its authorized but unissued shares of Class A Common Stock, such number of shares of Class A Common Stock that shall from time to time be sufficient to effect the exchange of all outstanding Common Units held by the holders of the Class B Common Stock (together with Class B Common Stock) for shares of Class A Common Stock; provided that nothing contained herein shall be construed to preclude the Corporation from satisfying its obligations in respect of the exchange of the Common Units (together with Class B Common Stock) by delivery of shares of Class A Common Stock that are held in the treasury of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation shall use its best efforts to cause to be reserved and kept available for issuance at all times a sufficient number of authorized but unissued shares of Class B Common Stock, such number of shares of Class B Common Stock that shall from time to time be sufficient to effect the issuance of shares of Class B Common Stock to holders of newly issued Common Units for such consideration and for such corporate purposes as the Board of Directors may from time to time determine.

**ARTICLE VI.** 

In furtherance and not in limitation of the powers conferred upon it by the DGCL, the Board of Directors shall have the power to adopt, amend, alter or repeal the Bylaws of the Corporation. The stockholders may not adopt, amend, alter or repeal the Bylaws of the Corporation unless such action is approved by the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of all of the then-outstanding shares of capital stock of the Corporation entitled to vote thereon, voting together as a single class.

**ARTICLE VII.** 

Section 7.1 <u>Ballot</u>. Elections of directors (each such director, in such capacity, a "***Director***" and collectively the "***Directors***") need not be by written ballot unless the Bylaws shall so provide.

Section 7.2 <u>Number of Directors</u>. Except as otherwise provided by the DGCL or this Certificate of Incorporation, the business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors. Subject to the rights of the holders of any series of Preferred Stock to elect Directors under specified circumstances, the number of Directors shall be fixed from time to time exclusively by one or more resolutions adopted from time to time by the Board of Directors.

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Section 7.3 <u>Terms of Office</u>. Subject to the special rights of the holders of one or more outstanding series of Preferred Stock to elect directors, the directors of the Corporation shall be classified with respect to the time for which they severally hold office into three classes, designated as Class I, Class II and Class III. The initial Class I directors shall serve for a term expiring at the first annual meeting of stockholders following the initial registration of the Corporation's Class A Common Stock pursuant to the Exchange Act; the initial Class II directors shall serve for a term expiring at the second annual meeting of stockholders following such registration; and the initial Class III directors shall serve for a term expiring at the third annual meeting of stockholders following such registration. At each annual meeting of stockholders of the Corporation beginning with the first annual meeting of stockholders following the Effective Time, subject to any special rights of the holders of one or more outstanding series of Preferred Stock to elect directors, the successors of the class of directors whose term expires at that meeting shall be elected to hold office for a term expiring at the annual meeting of stockholders held in the third year following the year of their election. Each director shall hold office until his or her successor is duly elected and qualified or until his or her earlier death, resignation, disqualification or removal. No decrease in the number of directors shall shorten the term of any incumbent director. The Board of Directors is authorized to designate members of the Board of Directors already in office as Class I, Class II and Class III.

Section 7.4 <u>Newly Created Directorships and Vacancies</u>. Subject to the special rights of the holders of one or more outstanding series of Preferred Stock to elect Directors, except as otherwise provided by law, any vacancies on the Board of Directors resulting from death, resignation, disqualification, retirement, removal or other causes and any newly created directorships resulting from any increase in the number of Directors shall be filled exclusively by the affirmative vote of a majority of the Directors then in office, even if less than a quorum, or by a sole remaining Director, and shall not be filled by the stockholders. Any Director appointed in accordance with the preceding sentence shall hold office until the expiration of the term to which such Director shall have been appointed or until his or her earlier death, resignation, retirement, disqualification, or removal.

Section 7.5 <u>Removal</u>. Subject to the special rights of the holders of one or more outstanding series of Preferred Stock to elect Directors, the Board of Directors or any individual Director may be removed from office at any time but only for cause and only by the affirmative vote of the holders of capital stock representing at least sixty-six and two-thirds percent (66 2/3%) of the voting power of all of the then outstanding shares of capital stock of the Corporation entitled to vote thereon, voting together as a single class.

Section 7.6 <u>Notice</u>. Advance notice of stockholder nominations for election of Directors and other business to be brought by stockholders before a meeting of stockholders shall be given in the manner provided by the Bylaws.

Section 7.7 <u>Preferred Directors</u>. Whenever the holders of any one or more series of Preferred Stock issued by the Corporation shall have the right, voting separately as a series or separately as a class with one or more such other series, to elect Directors at an annual or special meeting of stockholders, the election, term of office, removal and other features of such directorships shall be governed by the terms of this Certificate of Incorporation (including any

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Preferred Stock Designation) applicable thereto. The number of Directors that may be elected by the holders of any such series of Preferred Stock shall be in addition to the number fixed pursuant to Section 7.2 hereof, and the total number of Directors constituting the whole Board of Directors shall be automatically adjusted accordingly. Except as otherwise provided by the Board of Directors in the resolution or resolutions establishing such series, whenever the holders of any series of Preferred Stock having such right to elect additional Directors are divested of such right pursuant to the provisions of this Certificate of Incorporation (including any Preferred Stock Designation), the terms of office of all such additional Directors elected by the holders of such stock, or elected to fill any vacancies resulting from the death, resignation, disqualification or removal of such additional Directors, shall forthwith terminate (in which case each such Director thereupon shall cease to be qualified as, and shall cease to be, a Director) and the total authorized number of Directors of the Corporation shall automatically be reduced accordingly.

**ARTICLE VIII.** 

Section 8.1 <u>Consent of Stockholders In Lieu of Meeting</u>. Any action required or permitted to be taken by the stockholders of the Corporation must be effected at an annual or special meeting of the stockholders of the Corporation, and shall not be taken by consent in lieu of a meeting. Notwithstanding the foregoing, any action required or permitted to be taken by the holders of any series of Preferred Stock, voting separately as a series or separately as a class with one or more other such series, may be taken without a meeting, without prior notice and without a vote, to the extent expressly so provided by the applicable Preferred Stock Designation relating to such series of Preferred Stock, if a consent or consents in writing, setting forth the action so taken, shall be signed by the holders of outstanding shares of the relevant series of Preferred Stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted and shall be delivered to the Corporation in accordance with the applicable provisions of the DGCL.

Section 8.2 <u>Special Meetings of Stockholders</u>. Subject to the special rights of the holders of one or more series of Preferred Stock, special meetings of stockholders of the Corporation may be called, for any purpose or purposes, at any time only by or at the direction of the Board of Directors, the Chairperson of the Board of Directors, the Chief Executive Officer or President, and shall not be called by any other person or persons.

**ARTICLE IX.** 

The Corporation reserves the right to amend, alter, change, adopt or repeal any provision contained in this Certificate of Incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are granted subject to this reservation; <u>provided,</u> <u>however</u>, that the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of all of the then-outstanding shares of capital stock of the Corporation entitled to vote thereon, voting together as a single class, shall be required to amend or repeal, or adopt any provision of this Certificate of Incorporation inconsistent with Sections 4.3, 4.4, 4.5, 4.6, 4.7, 4.8 and 4.9 of Article IV or with Articles V, VI, VII, VIII, IX, X, XII and XIII; <u>provided</u> <u>further</u>, that any amendment (including by merger, consolidation conversion, transfer or otherwise) to this Certificate of Incorporation that gives holders of the Class B Common Stock (i) any rights

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to receive dividends (other than as set forth in the last sentence of Section 4.5(b) of Article IV) or any other kind of distribution, (ii) any right to convert into or be exchanged for shares of Class A Common Stock or (iii) any other economic rights (except for payments in cash in lieu of receipt of fractional stock) shall, in addition to the vote of the holders of shares of any class or series of capital stock of the Corporation required by law or by this Certificate of Incorporation, also require the affirmative vote of the holders of a majority of the voting power of the outstanding shares of Class A Common Stock voting separately as a class. Notwithstanding the foregoing, any amendment to this Certificate of Incorporation effecting changes set forth in (i) Section 242(d)(1) of the DGCL can be effected without a stockholder vote and (ii) Section 242(d)(2) of the DGCL shall only require the vote of stockholders set forth in Section 242(d)(2) of the DGCL.

**ARTICLE X.** 

Section 10.1 <u>Exculpation</u>. No director or officer of the Corporation shall have any personal liability to the Corporation or its stockholders for monetary damages for any breach of fiduciary duty as a director or officer, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL as the same exists or hereafter may be amended. Any amendment, repeal or modification of this <u>Article X</u>, or the adoption of any provision of this Certificate of Incorporation inconsistent with this <u>Article X</u>, shall not adversely affect any right or protection of a director or officer of the Corporation with respect to any act or omission occurring prior to such amendment, repeal, modification or adoption. If the DGCL is amended after approval by the stockholders of this <u>Article X</u> to authorize corporate action further eliminating or limiting the personal liability of directors or officers, then the liability of a director or officer of the Corporation shall be eliminated or limited to the fullest extent permitted by the DGCL as so amended.

Section 10.2 <u>Indemnification</u>. The Corporation shall have the power to provide rights to indemnification and advancement of expenses to its current and former officers, directors, employees and agents and to any person who is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise.

**ARTICLE XI.** 

Unless the Corporation consents in writing to the selection of an alternative forum, (a) the Court of Chancery (the "***Chancery Court***") of the State of Delaware (or, in the event that the Chancery Court does not have jurisdiction, the federal district court for the District of Delaware or other state courts of the State of Delaware) shall, to the fullest extent permitted by law, be the sole and exclusive forum for (i) any derivative action, suit or proceeding brought on behalf of the Corporation, (ii) any action, suit or proceeding asserting a claim that is based upon a breach of a fiduciary duty owed by any current or former director, officer or stockholder of the Corporation to the Corporation or to the Corporation's stockholders, (iii) any action, suit or proceeding arising pursuant to any provision of the DGCL or the Bylaws or this Certificate of Incorporation (as either may be amended from time to time) or (iv) any action, suit or proceeding asserting a claim against the Corporation governed by the internal affairs doctrine; and (b) subject to the preceding provisions of this <u>Article XI</u>, the federal district courts of the United States of America shall be the

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exclusive forum for the resolution of any complaint asserting a cause or causes of action arising under the Securities Act, as amended, including all causes of action asserted against any defendant to such complaint. If any action the subject matter of which is within the scope of clause (a) of the immediately preceding sentence is filed in a court other than the courts in the State of Delaware (a "***Foreign Action***") in the name of any stockholder, such stockholder shall be deemed to have consented to (x) the personal jurisdiction of the state and federal courts in the State of Delaware in connection with any action brought in any such court to enforce the provisions of clause (a) of the immediately preceding sentence and (y) having service of process made upon such stockholder in any such action by service upon such stockholder's counsel in the Foreign Action as agent for such stockholder.

If any provision or provisions of this <u>Article XI</u> shall be held to be invalid, illegal or unenforceable as applied to any circumstance for any reason whatsoever, (a) the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this <u>Article XI</u> (including, without limitation, each portion of any paragraph of this <u>Article XI</u> containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and (b) the application of such provision to other persons or entities and circumstances shall not in any way be affected or impaired thereby.

**ARTICLE XII.** 

Section 12.1 <u>Section 203 of the DGCL</u>. The Corporation expressly elects not to be governed by Section 203 of the DGCL and the restrictions and limitations set forth therein.

Section 12.2 <u>Interested Stockholder Transactions</u>. Notwithstanding anything to the contrary set forth in this Certificate of Incorporation, the Corporation shall not engage in any Business Combination (as defined below) at any point in time at which the Corporation's Class A Common Stock or Class B Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act with any Interested Stockholder (as defined below) for a period of three (3) years following the time that such stockholder became an Interested Stockholder, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prior to such time that such stockholder became an Interested Stockholder, the Board of Directors approved either the Business Combination or the transaction which resulted in such stockholder becoming an Interested Stockholder;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) upon consummation of the transaction which resulted in the stockholder becoming an Interested Stockholder, the Interested Stockholder owned at least eighty-five percent (85%) of the voting stock (as defined below) of the Corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the Interested Stockholder) those shares owned by (A) Persons who are Directors and also officers and (B) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) at or subsequent to such time that such stockholder became an Interested Stockholder, the Business Combination is approved by the Board of Directors and authorized at an annual or special meeting of stockholders by the affirmative vote of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of the outstanding shares of capital stock of the Corporation which is not owned by such Interested Stockholder.

Section 12.3 <u>Definitions</u>. As used in this Certificate of Incorporation, the following terms shall have the following meaning:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "***Affiliate***" means a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, another Person and, for purposes of the definition of Affiliate "control," (including the terms "controlling," "controlled by" and "under common control with,") means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting stock, by contract, or otherwise. A Person who is the owner, of twenty percent (20%) or more of the outstanding voting stock of a corporation, partnership, unincorporated association or other entity shall be presumed to have control of such entity, in the absence of proof by a preponderance of the evidence to the contrary. Notwithstanding the foregoing, a presumption of control shall not apply where such Person holds voting stock, in good faith and not for the purpose of circumventing this Article XII, as an agent, bank, broker, nominee, custodian or trustee for one or more owners who do not individually or as a group have control of such entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "***Associate***", when used to indicate a relationship with any Person, means: (i) any corporation, partnership, unincorporated association or other entity of which such Person is a Director, officer or partner or is, directly or indirectly, the owner of twenty percent (20%) or more of any class of shares of voting stock of the Corporation; (ii) any trust or other estate in which such Person has at least a twenty percent (20%) beneficial interest or as to which such Person serves as trustee or in a similar fiduciary capacity; and (iii) any relative or spouse of such Person, or any relative of such spouse, who has the same residence as such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "***Business Combination***" means (i) any merger or consolidation of the Corporation or any direct or indirect majority-owned subsidiary of the Corporation (A) with the Interested Stockholder, or (B) with any other corporation, partnership, unincorporated association or other entity if the merger or consolidation is caused by the Interested Stockholder and as a result of such merger or consolidation this <u>Article XII</u> is not applicable to the surviving entity; (ii) any sale, lease, exchange, mortgage, pledge, Transfer or other disposition (in one transaction or a series of transactions), except proportionately as a stockholder of the Corporation, to or with the

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Interested Stockholder, whether as part of a dissolution or otherwise, of assets of the Corporation or of any direct or indirect majority-owned subsidiary of the Corporation which assets have an aggregate market value equal to ten percent (10%) or more of either the aggregate market value of all the assets of the Corporation determined on a consolidated basis or the aggregate market value of all the outstanding shares of capital stock of the Corporation; (iii) any transaction which results in the issuance or Transfer by the Corporation or by any direct or indirect majority-owned subsidiary of the Corporation of any stock of the Corporation or of such subsidiary to the Interested Stockholder, except: (A) pursuant to the exercise, exchange or conversion of securities exercisable for, exchangeable for or convertible into stock of the Corporation or any such subsidiary which securities were outstanding prior to the time that the Interested Stockholder became such; (B) pursuant to a merger under Section 251(g) of the DGCL (or any successor provision thereto); (C) pursuant to a dividend or distribution paid or made, or the exercise, exchange or conversion of securities exercisable for, exchangeable for or convertible into stock of the Corporation or any such subsidiary which security is distributed, pro rata to all holders of a class or series of stock of the Corporation subsequent to the time the Interested Stockholder became such; (D) pursuant to an exchange offer by the Corporation to purchase stock made on the same terms to all holders of said stock; or (E) any issuance or Transfer of stock by the Corporation; *provided*, *however*, that in no case under items (C) through (E) of this subsection shall there be an increase in the Interested Stockholder's proportionate share of the stock of any class or series of the Corporation or of the voting stock of the Corporation (except as a result of immaterial changes due to fractional share adjustments); (iv) any transaction involving the Corporation or any direct or indirect majority-owned subsidiary of the Corporation which has the effect, directly or indirectly, of increasing the proportionate share of the stock of any class or series, or securities convertible into the stock of any class or series, of the Corporation or of any such subsidiary which is owned by the Interested Stockholder, except as a result of immaterial changes due to fractional share adjustments or as a result of any purchase or redemption of any shares of stock not caused, directly or indirectly, by the Interested Stockholder; or (v) any receipt by the Interested Stockholder of the benefit, directly or indirectly (except proportionately as a stockholder of the Corporation), of any loans, advances, guarantees, pledges, or other financial benefits (other than those expressly permitted in subsections (i) through (iv) above) provided by or through the Corporation or any direct or indirect majority-owned subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "***Change of Control***" means the occurrence of any of the following events: (1) any "Person" or "group" (within the meaning of Sections 13(d) and 14(d) of the Exchange Act, but excluding any employee benefit plan of such Person and its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the "beneficial owner" (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of shares of Class A Common Stock, Class B Common Stock, Preferred Stock and/or any other class or classes of capital stock of the Corporation (if any) representing in the aggregate more than fifty percent (50%) of the voting power of all of the outstanding shares of capital stock of the Corporation entitled to vote; (2) the stockholders of the Corporation approve a plan of complete liquidation or dissolution of the Corporation or there is consummated a transaction or series of related transactions for the sale, lease, exchange or other disposition, directly or indirectly, by the Corporation of all or substantially all of the Corporation's assets (including a sale of all or substantially all of the assets of WhiteHawk OpCo); (3) there is consummated a merger or consolidation of the Corporation with any other corporation or entity,

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and, immediately after the consummation of such merger or consolidation, the voting securities of the Corporation immediately prior to such merger or consolidation do not continue to represent, or are not converted into, voting securities representing more than fifty percent (50%) of the combined voting power of the outstanding voting securities of the Person resulting from such merger or consolidation or, if the surviving company is a subsidiary, the ultimate parent thereof; or (4) the Corporation or one of its subsidiaries ceases to be the sole general partner or otherwise no longer has voting control over WhiteHawk OpCo; provided, however, that a "Change of Control" shall not be deemed to have occurred by virtue of the consummation of any transaction or series of related transactions immediately following which (a) the beneficial owners of the Class A Common Stock, Class B Common Stock, Preferred Stock and/or any other class or classes of capital stock of the Corporation immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in and voting control over, and own substantially all of the shares of, an entity which owns all or substantially all of the assets of the Corporation immediately following such transaction or series of transactions or (b) in the case of the foregoing clauses (1) or (3), the Continuing Equity Owners are the "beneficial owner" (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of shares of Class A Common Stock, Class B Common Stock, Preferred Stock and/or any other class or classes of capital stock of the Corporation (if any) representing in the aggregate more than fifty percent (50%) of the voting power of all of the outstanding shares of capital stock of the Corporation entitled to vote (or, in the case of a transaction described in the foregoing clause (3), more than fifty percent (50%) of the combined voting power of the then outstanding voting securities of the Person resulting from such merger or consolidation or, if the surviving company is a subsidiary, the ultimate parent thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "***Exchange Act***" means the U.S. Securities Exchange Act of 1934, as amended, and any applicable rules and regulations promulgated thereunder, and any successor to such statute, rules or regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "***Interested Stockholder***" means any Person (other than the Corporation and any direct or indirect majority-owned subsidiary of the Corporation) that (i) is the owner of fifteen percent (15%) or more of the outstanding voting stock of the Corporation, or (ii) is an Affiliate of the Corporation and was the owner of fifteen percent (15%) or more of the outstanding voting stock of the Corporation at any time within the three-year period immediately prior to the date on which it is sought to be determined whether such Person is an Interested Stockholder, and the Affiliates and Associates of such Person. Notwithstanding anything in this <u>Article XII</u> to the contrary, the term "Interested Stockholder" shall not include the Continuing Equity Owners. For the purpose of determining whether a Person is an Interested Stockholder, the voting stock of the Corporation deemed to be outstanding shall include stock deemed to be owned by the Person through application of the definition of "owner" below but shall not include any other unissued stock of the Corporation which may be issuable pursuant to any agreement, arrangement or understanding, or upon exercise of conversion rights, warrants or options, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "***owner***," including the terms "own" and "owned," when used with respect to any stock, means, for purposes of this <u>Article XII</u>, a Person that individually or with or through any of its Affiliates or Associates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) beneficially owns such stock, directly or indirectly;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has (A) the right to acquire such stock (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding, or upon the exercise of conversion rights, exchange rights, warrants or options, or otherwise; provided, however, that a Person shall not be deemed the owner of stock tendered pursuant to a tender or exchange offer made by such Person or any of such Person's Affiliates or Associates until such tendered stock is accepted for purchase or exchange; or (B) the right to vote such stock pursuant to any agreement, arrangement or understanding; provided, however, that a Person shall not be deemed the owner of any stock because of such Person's right to vote such stock if the agreement, arrangement or understanding to vote such stock arises solely from a revocable proxy or consent given in response to a proxy or consent solicitation made to ten (10) or more Persons; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting (except voting pursuant to a revocable proxy or consent as described in clause (B) of subsection (ii) above), or disposing of such stock with any other person that beneficially owns, or whose Affiliates or Associates beneficially own, directly or indirectly, such stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "***Person***" means any individual, corporation, partnership, limited liability company, unincorporated association or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "***Securities Act***" means the U.S. Securities Act of 1933, as amended, and applicable rules and regulations promulgated thereunder, and any successor to such statute, rules or regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "***stock***" means, for purposes of this <u>Article XII</u>, with respect to any corporation, capital stock and, with respect to any other entity, any equity interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "***Transfer***" (and, with a correlative meaning, "***Transferring***") means any sale, transfer, assignment, redemption or other disposition of (whether directly or indirectly, whether with or without consideration and whether voluntarily or involuntarily or by operation of law) (a) any interest (legal or beneficial) in any shares of capital of stock of the Corporation or (b) any equity or other interest (legal or beneficial) in any stockholder if substantially all of the assets of such stockholder consist solely of shares of capital stock of the Corporation; provided, however, that the following shall not be considered a Transfer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the granting of a revocable proxy to officers or directors of the Corporation at the request of the Board of Directors in connection with (i) actions to be taken at an annual or special meeting of stockholders, or (ii) any other action of the stockholders permitted by this Certificate of Incorporation;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the pledge of shares of Class B Common Stock by a stockholder that creates a mere security interest in such shares pursuant to a bona fide loan or indebtedness transaction for so long as such stockholder continues to exercise voting control over such pledged shares; provided, however, that a foreclosure on such shares or other similar action by the pledgee shall constitute a Transfer unless such foreclosure or similar action qualifies as a Permitted Transfer at such time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) entering into a support, voting, tender or similar agreement or arrangement (with or without granting a proxy) or tendering any shares in any tender or exchange offer for all of the outstanding shares of Class A Common Stock and Class B Common Stock, in each case, in connection with a Change of Control transaction, sale of all or substantially all assets, or any merger, consolidation or other business combination involving the Corporation, whether effectuated through one transaction or series of related transactions, that, in each case, has been approved by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "***voting stock***" means stock of any class or series entitled to vote generally in the election of Directors and, with respect to any entity that is not a corporation, any equity interest entitled to vote generally in the election of the governing body of such entity. Every reference in this <u>Article XII</u> to a percentage or proportion of voting stock shall refer to such percentage or other proportion of the votes of such voting stock.

**ARTICLE XIII.** 

If any provision or provisions of this Certificate of Incorporation shall be held to be invalid, illegal or unenforceable as applied to any Person or circumstance for any reason whatsoever, then, to the fullest extent permitted by law, the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this Certificate of Incorporation (including, without limitation, each portion of any sentence of this Certificate of Incorporation containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) and the application of such provision to other Persons and circumstances shall not in any way be affected or impaired thereby. When the terms of this Certificate of Incorporation refer to a specific agreement or other document or a decision by any body, person or entity to determine the meaning or operation of a provision hereof, the Secretary of the Corporation shall maintain a copy of such agreement, document or decision at the principal executive offices of the Corporation, which shall be publicly available with the Corporation's public filings or, to the extent not publicly available, a copy thereof shall be provided free of charge to any stockholder who makes a request therefor. Unless otherwise provided in this Certificate of Incorporation, a reference to any specific agreement or other document shall be deemed a reference to such agreement or document as amended from time to time in accordance with the terms of such agreement or document.

[*Signature Page Follows*]

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IN WITNESS WHEREOF, the Corporation has caused this Amended and Restated Certificate of Incorporation to be signed on this<u> </u> day of<u> </u>, 20 .

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| |
|:---|
| **WHITEHAWK INCOME CORPORATION** |
| By: |
| Name: |
| Title: |

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**<u>Exhibit I</u>**

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**CERTIFICATE OF DESIGNATIONS OF** 

**SERIES B PREFERRED STOCK OF** 

**WHITEHAWK INCOME CORPORATION** 

WhiteHawk Income Corporation, a Delaware corporation (the ***"Company"),*** hereby certifies that, pursuant to the provisions of Sections 103, 141 and 151 of the General Corporation Law of the State of Delaware, on February 1, 2024, the board of directors of the Company (the ***"Board")*** ooopted the resolution shown immediately below, which resolution is now, and at all times since its date of adoption has been in full force and effect:

RESOLVED, that pursuant to the provisions of the Amended and Restated Certificate of Incorporation of the Company (as such may be amended, modified or restated from time to time, the ***"Amended and Restated Charter'),*** which authorizes 400,000 shares of preferred stock, par value $0.0001 per share (the ***"Preferred Stock''),*** and the authority thereby vested in the Board, a series of Preferred Stock be, and it is hereby, created, and that the designation and number of shares of such series, and the voting and other powers, preferences and relative, participating, optional or other rights, and the qualifications, limitations and restrictions thereof are as set forth in the Amended and Restated Charter and this Certificate of Designations, as it may be amended from time to time (the ***"Certificate of Designations")*** as follows:

SECTION 1. *Designation and Number of Shares*. Pursuant to the Amended and Restated Charter, there is hereby created out of the authorized and unissued shares of Preferred Stock a series of Preferred Stock consisting of 50,000 shares of Preferred Stock designated as "Series B Preferred Stock'' (the ***"Series B Preferred Stock").*** To the extent not prohibited by the Amended and Restated Charter, the provisions hereof or other provisions of applicable law, such number of shares may be increased or decreased by resolution of the Board; ***provided, however,*** that no decrease shall reduce the number of shares of Series B Preferred Stock to less than the number of shares of Series B Preferred Stock then outstanding. Shares of the Series B Preferred Stock that are redeemed, purchased or otherwise acquired by the Company shall be cancelled, and shall revert to authorized but unissued shares of Preferred Stock undesignated as to series and subject to later issuance.

SECTION 2. *Rank* The Series B Preferred Stock shall, as to the payment of dividends and the distribution of assets upon the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, rank (i) pari passu with the Company's Series A Preferred Stock and any other classes or series of Preferred Stock if, pursuant to the specific terms of such class or series of Preferred Stock, holders of such Preferred Stock and the h olders of Series B Preferred Stock are entitled to receipt of dividends and of amounts distributable upon dissolution, liquidation or winding up without preference or priority one over the other (such other classes or series of Preferred Stock, the ***"Pari Securities")*** (ii) senior to each class or series of the Company's Common Stock, par value $0.0001 per share (the ***"Common Stock'')*** and any other capital stock of the Company if the holders of Series B Preferred Stock are entitled to the receipt of dividends or of amounts distributable upon liquidation, dissolution or winding up in preference or priority to the holders of shares of such other capital stock (such securities collectively referred to herein as the ***"Junior Securities")*** and (iii) junior to all existing or future indebtedness and any other classes or series of Preferred Stock if, pursuant to the specific terms of such class or series of Preferred Stock, the holders of such Preferred Stock are entitled to the receipt of dividends or of amounts distributable upon liquidation, dissolution or winding up in preference or priority to the holders of Series B Preferred Stock.

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SECTION 3. *Certification.* The shares of Series B Preferred Stock may be issued as certificated stock or in uncertificated, book-entry form as permitted by the bylaws of the Company and the Delaware General Corporation Law.

SECTION 4. *Voting.* The holders of the Series B Preferred Stock shall have no voting rights, and shall not be entitled to any vote with respect to shares of Series B Preferred Stock held of record by a Holder on any matters on which any of the Company's stockholders are entitled to vote, except as required by law; *provided,* the Board shall not amend the terms of the Series B Preferred Stock or this Certificate of Designations without the consent of the holders of Series B Preferred Stock.

SECTION 5. *Dividends.* Holders are entitled to a monthly preferred cumulative dividend at an annualized rate of ten percent (10%), subject to a dividend declaration by the Board. Dividends on each share of Series B Preferred Stock shall accrue on a monthly basis from and including the date of issuance, whether or not the Company has assets legally available to make payment thereof. Dividends shall accumulate from the most recent date through which dividends shall have been paid, or, if no dividends have been paid, from the date of issuance.

SECTION 6. *Redemption.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>WhiteHawk Redemption.</u> Following the first anniversary of the date on which a share of Series B Preferred Stock was issued, subject to the restrictions described herein and the provisions of applicable law, the Company shall have the right, but not the obligation, upon not less than ten (10) and not more than ninety (90) calendar days' notice, to redeem such Series B Preferred Stock at a redemption price of the Stated Value, plus all accrued and unpaid dividends thereon (the ***"Settlement Amount''*** and such a redemption, a ***"WhiteHawk Redemption").*** For the avoidance of doubt, the Holder Optional Redemption Fee shall not be charged upon a WhiteHawk Redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Holder Optional Redemption.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** Subject to the restrictions described herein and the provisions of applicable law, each holder of Series
B Preferred Stock is entitled to request that the Company redeem the shares of Series B Preferred Stock held by such Holder (a  ***"Holder Optional Redemption")*** at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. The Holder Optional Redemption is subject to a redemption limit of two percent (2%) of the number of
outstanding shares of Series B Preferred Stock per month (measured using the number of outstanding Series B Preferred Stock as of the end of the immediately preceding month) and no more than five (5%) of the number of outstanding shares of Series B
Preferred Stock per calendar quarter (measured using the number of outstanding Series B Preferred Stock as of the end of the prior calendar quarter) (collectively, the  ***"Holder Optional Redemption Limit").*** If requested
redemptions exceed the Holder Optional Redemption Limit in any month or quarter, such redemptions will be made on a pro rata basis among the shares of Series B Preferred Stock submitted for redemption.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The Company shall settle the Holder Optional Redemption in cash by paying the Holder the Settlement Amount
minus the Holder Optional Redemption Fee.

1v. Holders of Series B Preferred Stock must exercise the Holder Optional Redemption by delivering a notice of redemption, effective as of the last Business Day of the month, at least five (5) days prior to the last Business Day of the month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Upon the exercise of the Holder Optional Redemption, a  ***"Holder Optional Redemption Fee"*** shall be charged as follows: (a) prior to the first anniversary of issuance, ten percent (10%) of the Stated Value, (b) on or after the first anniversary of issuance but prior to the second anniversary of issuance, eight percent
(8%) of the Stated Value, (c) on or after the second anniversary of issuance but prior to the third anniversary of issuance, six percent (6%) of the Stated Value and (d) on or after the third anniversary of issuance, zero percent (0%) of
the Stated Value. WhiteHawk may waive the Holder Optional Redemption Fee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Redemption Due to Death or Disability.</u> Subject to certain restrictions, beginning on the date of original issuance and ending on the third anniversary of the date of issuance, the Company may redeem shares of Series B Preferred Stock from a beneficial owner who is a natural person (including a natural person who holds shares of Series B Preferred Stock through an fudividual Retirement Account or in a personal or estate planning trust) upon his or her disability or death at the written request of the beneficial owner or the beneficial owner's estate at a redemption price equal to the Settlement Amount (for the avoidance of doubt, without application of the Holder Optional Redemption Fee). If been requested due to disability, the disability must meet the definition of Section 72(m)(7) of the futemal Revenue Code and the condition causing the qualifying disability must not have been pre-existing on the date that the holder of Series B Preferred Stock became a Holder. In the case of death or disability, such a written request must be supported by verifiable documentation which is acceptable in the sole discretion of WhiteHawk. Redemption due to death or disability will not be included in the Holder Optional Redemption Limit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Triggered Redemption.</u> In the event of a Series B Triggered Redemption Event, the Company shall redeem all of the outstanding Series B Preferred Stock no later than sixty (60) days after the completion of such Series B Triggered Redemption Event, at a redemption price of the Settlement Amount.

SECTION 7. *Shares to be Retired*. All shares of Series B Preferred Stock redeemed by the Company in accordance with <u>Section 6</u> shall be retired and cancelled and shall be restored to the status of authorized but unissued shares of Preferred Stock, without designation as to series.

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SECTION 8. *Liquidation, Dissolution or Winding Up of the Company.* In the event of a voluntary or involuntary liquidation, dissolution or winding up of the Company, subject to (i) the rights of the holders of the Company's debt and (ii) the proportionate rights of the holders of the Series A Preferred Stock and any other Pari Securities, the holders of Series B Preferred Stock will first be entitled to receive the Stated Value, plus an amount equal to any accrued but unpaid cumulative dividends to, but not including, the date of payment, before any distribution of assets is made to holders of any Junior Securities. After the payment or provision for the Company's debts and other liabilities and payment to the holders of the Company's Preferred Stock, the remaining funds and assets available for distribution shall be distributed among the holders of Common Stock.

SECTION 9. *Severability.* In the event any provision of these terms for the Series B Preferred Stock is for any reason held by a court of competent jurisdiction to be invalid, illegal or unenforceable, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and these terms for the Series B Preferred Stock shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

SECTION 10. *Miscellaneous.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Transfers of Series B Preferred Stock held in uncertificated, book-entry form shall be made only upon the transfer books of the Company kept at an office of the transfer agent upon receipt of proper transfer instructions from the registered owner of such uncertificated shares, or from a duly authorized attorney or from an individual presenting proper evidence of succession, assignment or authority to transfer the stock. The Company may refuse any requested transfer until furnished evidence satisfactory to it that such transfer is proper.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The shares of Series B Preferred Stock shall not be subject to the operation of any retirement or sinking fund. The shares of Series B Preferred Stock shall not be convertible into, or exchangeable for, shares of stock of any other class or classes, or of any other series of the same class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. All notices and other communications given or made hereunder shall be in writing and shall be deemed effectively given upon the earlier of actual receipt, or (i) personal delivery to the party to be notified, (ii) when sent, if sent by electronic mail during normal business hours of the recipient, and if not sent during normal business hours, then on the next Business Day, (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one Business Day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. Notice to any Holder shall be given to the registered address set forth in the Company's records for such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. With respect to any notice to a Holder required to be provided hereunder, neither failure to send such notice, nor any defect therein or in the sending thereof, to any particular Holder shall affect the sufficiency of the notice or the validity of the proceedings referred to in such notice with respect to the other Holders or affect the legality or validity of any vote upon any such action (assuming due and proper notice to such other Holders). Any notice which was sent in the manner herein provided shall be conclusively presumed to have been duly given whether or not the Holder actually receives the notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. The shares of Series B Preferred Stock shall be issuable only in whole shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Any payments required to be made hereunder on any day that is not a Business Day shall be made on the next succeeding Business Day without interest or additional payment for such delay. All payments required hereunder shall be made by wire transfer of immediately available funds in United States Dollars to the Holders in accordance with the payment instructions as such Holders may deliver by written notice to the Company from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. The shares of Series B Preferred Stock shall have no preemptive or subscription rights, except those that may be expressly provided by contract.

SECTION 11. *Definitions.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. ***"Business Day"*** means any weekday that is not a day on which banking institutions in New York, New York are authorized or required by law, regulation or executive order to be closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. ***"Holder"*** means, unless the context otherwise indicates or requires, a holder of record of a share of Series B Preferred Stock, as reflected in the transfer books of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. ***"Series B Triggered Redemption Event"*** means: (i) the sale, transfer or other disposition, in a single transaction or series of related transactions of all or substantially all of the Company's assets, (ii) a merger or consolidation transaction into another entity where immediately following the consummation of such transaction, the holders of Common Stock will receive the interests of another entity, or (iii) the closing of the transfer (whether by merger, consolidation or otherwise) of the Company's capital stock if, after such closing, the beneficial owner (as defined under the Securities Exchange Act of 1934, as amended) would acquire more than fifty percent (50%) of the outstanding voting securities of the Company (or the surviving or acquiring entity).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. ***"Stated Value"*** means $1,000 per share of Series B Preferred Stock.

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**<u>Exhibit II</u>**

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**CERTIFICATE OF DESIGNATIONS OF PREFERRED STOCK OF** 

**WHITEHAWK INCOME CORPORATION** 

WhiteHawk Income Corporation, a Delaware corporation (the "***Company***"), hereby certifies that, pursuant to the provisions of Sections 103, 141 and 151 of the General Corporation Law of the State of Delaware, on March 30, 2026, the board of directors of the Company (the "***Board***") adopted the resolution shown immediately below, which resolution is now, and at all times since its date of adoption has been in full force and effect:

RESOLVED, that pursuant to the provisions of the Amended and Restated Certificate of Incorporation of the Company (as such may be amended, modified or restated from time to time, the "***Amended and Restated Charter***"), which authorizes 1,000,000 shares of preferred stock, par value $0.0001 per share (the "***Preferred Stock***"), and the authority thereby vested in the Board, a series of Preferred Stock be, and it is hereby, created, and that the designation and number of shares of such series, and the voting and other powers, preferences and relative, participating, optional or other rights, and the qualifications, limitations and restrictions thereof are as set forth in the Amended and Restated Charter and this Certificate of Designations, as it may be amended from time to time (the "***Certificate of Designations***") as follows:

**SECTION 1. *Designation and Number of Shares***. Pursuant to the Amended and Restated Charter, there is hereby created out of the authorized and unissued shares of Preferred Stock a series of Preferred Stock consisting of 37,780 shares of Preferred Stock designated as "Series D Preferred Stock" (the "***Series D Preferred Stock***"). To the extent not prohibited by the Amended and Restated Charter, the provisions hereof or other provisions of applicable law, such number of shares may be increased or decreased by resolution of the Board; *provided, however*, that no decrease shall reduce the number of shares of Series D Preferred Stock to less than the number of shares of Series D Preferred Stock then outstanding. Shares of the Series D Preferred Stock that are redeemed, purchased or otherwise acquired by the Company shall be cancelled, and shall revert to authorized but unissued shares of Preferred Stock undesignated as to series and subject to later issuance.

**SECTION 2. *Rank****.* The Series D Preferred Stock shall, as to the payment of dividends and the distribution of assets upon the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, rank senior to each class or series of the Company's Common Stock par value $0.0001 per share (the "***Common Stock***") and any other class or series of capital stock of the Company, including but not limited to the Company's Series B Preferred Stock (such securities collectively referred to herein as the "***Junior Securities***").

**SECTION 3. *Uncertificated Shares***. The shares of Series D Preferred Stock shall be in uncertificated, book-entry form as permitted by the bylaws of the Company and the Delaware General Corporation Law.

**SECTION 4. *Voting****.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth in this Certificate of Designations, the holders of the Series D Preferred Stock shall have no voting rights, and shall not be entitled to any vote with respect to shares of Series D Preferred Stock held of record by a Holder on any matters on which any of the Company's stockholders are entitled to vote, except as set forth in this Certificate of Designations or as required by law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, at any time when any shares of Series D Preferred Stock are outstanding the Company shall not, either directly or indirectly by amendment, merger, consolidation or otherwise, do any of the following without the consent of the then-holders of Series D Preferred Stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) other than pursuant to that certain Note Purchase Agreement, dated as of September 17, 2024, by and among the Company, Pacific Indemnity Company, EIG River Energy Partners, L.P., EIG Upstream Partners, L.P., EIG Blandelier Partners, L.P., U.S. Bank Trust Company, National Association and each of the guarantors thereunder (as may be amended, supplemented or otherwise modified from time to time, the "***EIG Note Purchase Agreement***"), guarantee, directly or indirectly, or permit any subsidiary to guarantee, directly or indirectly, any indebtedness except for trade accounts of the Company or any subsidiary arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) incur any indebtedness, other than trade credit incurred in the ordinary course of business or pursuant to the EIG Note Purchase Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) other than the Series D Preferred Stock, create or issue or obligate itself to issue shares of, or reclassify, any capital stock unless the same ranks junior to the Series D Preferred Stock with respect to its special rights, powers and preferences.

**SECTION 5. *Dividends***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Dividends on each share of Series D Preferred Stock shall (i) accrue on a daily basis at the Dividend Rate from and including the date of issuance, whether or not the Company has assets legally available to make payment thereof and (ii) be payable monthly in arrears on each Dividend Payment Date. Dividends shall accumulate from the most recent date through which dividends shall have been paid, or, if no dividends have been paid, from the date of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No dividend or distribution shall be declared and paid on any class or series of capital stock of the Company unless all dividends are declared and paid with respect to the Series D Preferred Stock pursuant to <u>Section</u> <u>5(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Company does not redeem all of the shares of Series D Preferred Stock prior to the Dividend Cutoff Date, the Company shall not declare, pay or set aside any distributions or dividends with respect to any class or series of capital stock of the Company until all of the shares of Series D Preferred Stock have been redeemed and the Holders have received the Minimum Return.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Prior to declaring any dividend with respect to shares of any class or series of capital stock of the Company in accordance with this Section 5, the Company shall take any and all prior corporate action necessary to authorize any corporate action in respect of the Series D Preferred Stock required under this Certificate of Designations.

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**SECTION 6. *Optional Redemption; Mandatory Redemption***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to compliance with the provisions of applicable law, the Company shall have the right, but not the obligation, to redeem the Series D Preferred Stock, in whole or in part, at any time and from time to time, at a redemption price of $1,000 per share of Series D Preferred Stock, plus all accrued and unpaid dividends thereon, if any (such agreement amount, the "***Redemption Price***"), by delivering written notice thereof (a "***Notice of Optional Redemption***") to each Holder and the Company's transfer agent (if any) at least three (3) Business Days prior to the date designated therein for such redemption. Upon the exercise of the optional redemption right set forth in this <u>Section</u> <u>6(a)</u> with respect to any share of Series D Preferred Stock that is the last share of Series D Preferred Stock held by a Holder, in addition to the Redemption Price, if applicable, the Company shall pay an additional dividend, if required, such that, together with the payment of the Redemption Price and all dividends paid with respect to such Holder in the aggregate, such Holder shall have received the Minimum Return (such additional dividend, the "***Minimum Return Payment***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that (i) there is a Deemed Liquidation Event, (ii) the Company ceases, or is deemed to have ceased, to conduct business, (iii) any legal proceeding by any judgment creditor is commenced against the Company to attach or levy upon any material property of the Company, which is not dismissed within 45 days, (iv) the Company shall become the subject of any bankruptcy (including, without limitation, any reorganization under Chapter 11 of Title 11 of the United States Code and /or its foreign equivalent), insolvency, receivership, liquidation (including, without limitation, any liquidation under Chapter 7 of Title 11 of the United States Code and/or its foreign equivalent), or dissolution under applicable law or statute, or (v) the Company shall make a general assignment for the benefit of its creditors (each, a "***Mandatory Redemption Trigger***"), then, in the case of each of the foregoing, the Company shall be required to redeem all of the issued and outstanding Series D Preferred Stock at the Redemption Price, accompanied by the Minimum Return Payment, if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As promptly as possible following the delivery of a Notice of Optional Redemption (but no earlier than three (3) days thereafter) or upon a Mandatory Redemption Trigger, each Holder specified, as applicable, to be redeemed by the Company shall have such Holder's shares of Series D Preferred Stock to be redeemed by the Company exchanged for the Redemption Price, accompanied by the Minimum Return Payment, if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If, on the date of any redemption pursuant to this <u>Section</u> <u>6</u>, Delaware law governing distributions to stockholders prevents the Company from redeeming all shares of Series D Preferred Stock to be redeemed pursuant to this <u>Section</u> <u>6</u>, the Company shall ratably redeem the maximum number of shares of Series D Preferred Stock that it may redeem consistent with such law, and shall use best efforts to ameliorate such condition and redeem the remaining shares of Series D Preferred Stock as soon as it may lawfully do so under such law. For the avoidance of doubt, (i) all rights with respect to the shares of Series D Preferred Stock redeemed pursuant to this <u>Section</u> <u>6</u> and (ii) the Company's obligation to pay dividends with respect to such shares of Series D Preferred Stock if, as and when declared by the Board of Directors will terminate only upon the Redemption Price, accompanied by the Minimum Return Payment, if applicable, being paid in full and in cash in respect of such shares of Series D Preferred Stock.

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**SECTION 7. *Shares to be Retired***. All shares of Series D Preferred Stock redeemed by the Company in accordance with <u>Section</u> <u>6</u> shall be retired and cancelled and shall be restored to the status of authorized but unissued shares of Preferred Stock, without designation as to series.

**SECTION 8. *Liquidation, Dissolution or Winding Up of the Company***. In the event of a voluntary or involuntary liquidation, dissolution or winding up of the Company (a "***Liquidation Event***"), holders of the Series D Preferred Stock will first be entitled to receive the Minimum Return before any distribution of assets is made to holders of any Junior Securities. After the payment of the Minimum Return to the holders of the Series D Preferred Stock, the remaining assets of the Company shall be distributed ratably to the holders of the Common Stock and any other Junior Securities in accordance with their rights and preferences.

**SECTION 9. *Severability***. In the event any provision of these terms for the Series D Preferred Stock is for any reason held by a court of competent jurisdiction to be invalid, illegal or unenforceable, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and these terms for the Series D Preferred Stock shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

**SECTION 10. *Miscellaneous***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Transfers of Series D Preferred Stock held in uncertificated, book-entry form shall be made only upon the transfer books of the Company kept at an office of the transfer agent upon receipt of proper transfer instructions from the registered owner of such uncertificated shares, or from a duly authorized attorney or from an individual presenting proper evidence of succession, assignment or authority to transfer the stock. The Company may refuse any requested transfer until furnished evidence satisfactory to it that such transfer is proper.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The shares of Series D Preferred Stock shall not be subject to the operation of any retirement or sinking fund. The shares of Series D Preferred Stock shall not be convertible into, or exchangeable for, shares of stock of any other class or classes, or of any other series of the same class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All notices and other communications given or made hereunder shall be in writing and shall be deemed effectively given upon the earlier of actual receipt, or (i) personal delivery to the party to be notified, (ii) when sent, if sent by electronic mail during normal business hours of the recipient, and if not sent during normal business hours, then on the next Business Day, (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one Business Day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. Notice to any Holder shall be given to the registered address set forth in the Company's records for such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With respect to any notice to a Holder required to be provided hereunder, neither failure to send such notice, nor any defect therein or in the sending thereof, to any particular Holder shall affect the sufficiency of the notice or the validity of the proceedings referred to in such notice with respect to the other Holders or affect the legality or validity of any vote upon any such action (assuming due and proper notice to such other Holders). Any notice which was sent in the manner herein provided shall be conclusively presumed to have been duly given whether or not the Holder actually receives the notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any payments required to be made hereunder on any day that is not a Business Day shall be made on the next succeeding Business Day without interest or additional payment for such delay. All payments required hereunder shall be made by wire transfer of immediately available funds in United States Dollars to the Holders in accordance with the payment instructions as such Holders may deliver by written notice to the Company from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The shares of Series D Preferred Stock shall have no preemptive or subscription rights, except those that may be expressly provided by contract.

**SECTION 11. *Definitions***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "***Business Day***" means any weekday that is not a day on which banking institutions in New York, New York are authorized or required by law, regulation or executive order to be closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "***Dividend Cutoff Date***" means December 31, 2028.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "***Dividend Payment Date***" means the first day of each month; provided, that, if any such Dividend Payment Date is not a Business Day, then the applicable dividend shall be payable on the next Business Day immediately following such Dividend Payment Date, without any interest or additional accrual (other than any such accrual that is payable on the subsequent Dividend Payment Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "***Dividend Rate***" means (i) from and including the Closing to December 31, 2027, 14% per annum and (ii) after December 31, 2027, 18% per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "***Deemed Liquidation Event***" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a merger, consolidation, statutory conversion, transfer, domestication, or continuance in which (A) the Company is a constituent party; or (B) a subsidiary of Company is a constituent party and the Company issues shares of its capital stock pursuant to such merger or consolidation, except any such merger, consolidation, statutory conversion, transfer, domestication, or continuance involving the Company or a subsidiary in which the shares of capital stock of the Company outstanding immediately prior to such merger, consolidation, statutory conversion, transfer, domestication, or continuance continue to represent, or are converted into or exchanged for shares of capital stock or other equity interests that represent, immediately following such merger, consolidation, statutory conversion, transfer, domestication, or continuance, a majority, by voting power, of the capital stock or other equity interests of (1) the surviving or resulting corporation or entity; or (2) if the surviving or resulting corporation or entity is a wholly owned subsidiary of another corporation or entity immediately following such merger, consolidation, statutory conversion, transfer, domestication, or continuance, the parent corporation or entity of such surviving or resulting corporation or entity; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the Company or any subsidiary of the Company of all or substantially all the assets of the Company and its subsidiaries taken as a whole or (B) the sale, lease, transfer, exclusive license or other disposition (whether by merger, consolidation, statutory conversion, domestication, continuance or otherwise, and whether in a single transaction or a series of related transactions) of one or more subsidiaries of the Company if substantially all of the assets of the Company and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or other disposition is to a wholly owned subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "***Minimum Return***" means a return of 8% per share of Series D Preferred Stock upon the payment of all dividends thereon and all liquidation, redemption and other cash payments, as applicable, made by the Company to the holder of such share of Series D Preferred Stock with respect to such share of Series D Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "***Holder***" means, unless the context otherwise indicates or requires, a holder of record of a share of Series D Preferred Stock, as reflected in the transfer books of the Company.

## Exhibit 3.4

**Exhibit 3.4** 

**CERTIFICATE OF DESIGNATIONS OF** 

**SERIES B PREFERRED STOCK OF** 

**WHITEHAWK INCOME CORPORATION** 

WhiteHawk Income Corporation, a Delaware corporation (the ***"Company"),*** hereby certifies that, pursuant to the provisions of Sections 103, 141 and 151 of the General Corporation Law of the State of Delaware, on February I, 2024, the board of directors of the Company (the ***"Board'')*** adopted the resolution shown immediately below, which resolution is now, and at all times since its date of adoption has been in full force and effect:

RESOLVED, that pursuant to the provisions of the Amended and Restated Certificate of Incorporation of the Company (as such may be amended, modified or restated from time to time, the ***"Amended and Restated Charter"),*** which authorizes 400,000 shares of preferred stock, par value $0.0001 per share (the ***"Preferred Stock"),*** and the authority thereby vested in the Board, a series of Preferred Stock be, and it is hereby, created, and that the designation and number of shares of such series, and the voting and other powers, preferences and relative, participating, optional or other rights, and the qualifications, limitations and restrictions thereof are as set forth in the Amended and Restated Charter and this Certificate of Designations, as it may be amended from time to time (the ***"Certificate of Designations")*** as follows:

SECTION 1. *Designation and Number of Shares.* Pursuant to the Amended and Restated Charter, there is hereby created out of the authorized and unissued shares of Preferred Stock a series of Preferred Stock consisting of 50,000 shares of Preferred Stock designated as "Series B Preferred Stock" (the ***"Series B Preferred Stock'').*** To the extent not prohibited by the Amended and Restated Charter, the provisions hereof or other provisions of applicable law, such number of shares may be increased or decreased by resolution of the Board; *provided, however,* that no decrease shall reduce the number of shares of Series B Preferred Stock to less than the number of shares of Series B Preferred Stock then outstanding. Shares of the Series B Preferred Stock that are redeemed, purchased or otherwise acquired by the Company shall be cancelled, and shall revert to authorized but unissued shares of Preferred Stock undesignated as to series and subject to later issuance.

SECTION 2. *Rank.* The Series B Preferred Stock shall, as to the payment of dividends and the distribution of assets upon the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, rank (i) pari passu with the Company's Series A Preferred Stock and any other classes or series of Preferred Stock if, pursuant to the specific terms of such class or series of Preferred Stock, holders of such Preferred Stock and the holders of Series B Preferred Stock are entitled to receipt of dividends and of amounts distributable upon dissolution, liquidation or winding up without preference or priority one over the other (such other classes or series of Preferred Stock, the ***"Pari Securities")*** (ii) senior to each class or series of the Company's Common Stock, par value $0.0001 per share (the ***"Common Stock")*** and any other capital stock of the Company if the holders of Series B Preferred Stock are entitled to the receipt of dividends or of amounts distributable upon liquidation, dissolution or winding up in preference or priority to the holders of shares of such other capital stock (such securities collectively referred to herein as the ***"Junior Securities")*** and (iii) junior to all existing or future indebtedness and any other classes or series of Preferred Stock if, pursuant to the specific terms of such class or series of Preferred Stock, the holders of such Preferred Stock are entitled to the receipt of dividends or of amounts distributable upon liquidation, dissolution or winding up in preference or priority to the holders of Series B Preferred Stock.

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SECTION 3. *Certification.* The shares of Series B Preferred Stock may be issued as certificated stock or in uncertificated, book-entry form as permitted by the bylaws of the Company and the Delaware General Corporation Law.

SECTION 4. *Voting.* The holders of the Series B Preferred Stock shall have no voting rights, and shall not be entitled to any vote with respect to shares of Series B Preferred Stock held of record by a Holder on any matters on which any of the Company's stockholders are entitled to vote, except as required by law; *provided,* the Board shall not amend the terms of the Series B Preferred Stock or this Certificate of Designations without the consent of the holders of Series B Preferred Stock.

SECTION 5. *Dividends.* Holders are entitled to a monthly preferred cumulative dividend at an annualized rate of ten percent (10%), subject to a dividend declaration by the Board. Dividends on each share of Series B Preferred Stock shall accrue on a monthly basis from and including the date of issuance, whether or not the Company has assets legally available to make payment thereof. Dividends shall accumulate from the most recent date through which dividends shall have been paid, or, if no dividends have been paid, from the date of issuance.

SECTION 6. *Redemption.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>WhiteHawk Redemption.</u> Following the first anniversary of the date on which a share of Series B Preferred Stock was issued, subject to the restrictions described herein and the provisions of applicable law, the Company shall have the right, but not the obligation, upon not less than ten (10) and not more than ninety (90) calendar days' notice, to redeem such Series B Preferred Stock at a redemption price of the Stated Value, plus all accrued and unpaid dividends thereon (the ***"Settlement Amount''*** and such a redemption, a ***"WhiteHawk Redemption").*** For the avoidance of doubt, the Holder Optional Redemption Fee shall not be charged upon a WhiteHawk Redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Holder Optional Redemption.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Subject to the restrictions described herein and the provisions of applicable law, each holder of Series B
Preferred Stock is entitled to request that the Company redeem the shares of Series B Preferred Stock held by such Holder (a  ***"Holder Optional Redemption")*** at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Holder Optional Redemption is subject to a redemption limit of two percent (2%) of the number of
outstanding shares of Series B Preferred Stock per month (measured using the number of outstanding Series B Preferred Stock as of the end of the immediately preceding month) and no more than five (5%) of the number of outstanding shares of Series B
Preferred Stock per calendar quarter (measured using the number of outstanding Series B Preferred Stock as of the end of the prior calendar quarter) (collectively, the  ***"Holder Optional Redemption Limit").*** If requested
redemptions exceed the Holder Optional Redemption Limit in any month or quarter, such redemptions will be made on a pro rata basis among the shares of Series B Preferred Stock submitted for redemption.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The Company shall settle the Holder Optional Redemption in cash by paying the Holder the Settlement Amount
minus the Holder Optional Redemption Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Holders of Series B Preferred Stock must exercise the Holder Optional Redemption by delivering a notice of
redemption, effective as of the last Business Day of the month, at least five (5) days prior to the last Business Day of the month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Upon the exercise of the Holder Optional Redemption, a  ***"Holder Optional Redemption Fee"*** shall be charged as follows: (a) prior to the first anniversary of issuance, ten percent (10%) of the Stated Value, (b) on or after the first anniversary of issuance but prior to the second anniversary of issuance, eight percent
(8%) of the Stated Value, (c) on or after the second anniversary of issuance but prior to the third anniversary of issuance, six percent (6%) of the Stated Value and (d) on or after the third anniversary of issuance, zero percent (0%) of
the Stated Value. WhiteHawk may waive the Holder Optional Redemption Fee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Redemption Due to Death or Disability. Subject to certain restrictions, beginning on the date of original issuance and ending on the third anniversary of the date of issuance, the Company may redeem shares of Series B Preferred Stock from a beneficial owner who is a natural person (including a natural person who holds shares of Series B Preferred Stock through an individual Retirement Account or in a personal or estate planning trust) upon his or her disability or death at the written request of the beneficial owner or the beneficial owner's estate at a redemption price equal to the Settlement Amount (for the avoidance of doubt, without application of the Holder Optional Redemption Fee). If been requested due to disability, the disability must meet the definition of Section 72(m)(7) of the Internal Revenue Code and the condition causing the qualifying disability must not have been pre-existing on the date that the holder of Series B Preferred Stock became a Holder. In the case of death or disability, such a written request must be supported by verifiable documentation which is acceptable in the sole discretion of WhiteHawk. Redemption due to death or disability will not be included in the Holder Optional Redemption Limit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Triggered Redemption. In the event of a Series B Triggered Redemption Event, the Company shall redeem all of the outstanding Series B Preferred Stock no later than sixty (60) days after the completion of such Series B Triggered Redemption Event, at a redemption price of the Settlement Amount.

SECTION 7. Shares to be Retired. All shares of Series B Preferred Stock redeemed by the Company in accordance with Section 6 shall be retired and cancelled and shall be restored to the status of authorized but unissued shares of Preferred Stock, without designation as to series.

------

SECTION 8. *Liquidation, Dissolution or Winding Up of the Company.* In the event of a voluntary or involuntary liquidation, dissolution or winding up of the Company, subject to (i) the rights of the holders of the Company's debt and (ii) the proportionate rights of the holders of the Series A Preferred Stock and any other Pari Securities, the holders of Series B Preferred Stock will first be entitled to receive the Stated Value, plus an amount equal to any accrued but unpaid cumulative dividends to, but not including, the date of payment, before any distribution of assets is made to holders of any Junior Securities. After the payment or provision for the Company's debts and other liabilities and payment to the holders of the Company's Preferred Stock, the remaining funds and assets available for distribution shall be distributed among the holders of Common Stock.

SECTION 9. *Severability.* In the event any provision of these terms for the Series B Preferred Stock is for any reason held by a court of competent jurisdiction to be invalid, illegal or unenforceable, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and these terms for the Series B Preferred Stock shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

SECTION 10. *Miscellaneous.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Transfers of Series B Preferred Stock held in uncertificated, book-entry form shall be made only upon the transfer books of the Company kept at an office of the transfer agent upon receipt of proper transfer instructions from the registered owner of such uncertificated shares, or from a duly authorized attorney or from an individual presenting proper evidence of succession, assignment or authority to transfer the stock. The Company may refuse any requested transfer until furnished evidence satisfactory to it that such transfer is proper.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The shares of Series B Preferred Stock shall not be subject to the operation of any retirement or sinking fund. The shares of Series B Preferred Stock shall not be convertible into, or exchangeable for, shares of stock of any other class or classes, or of any other series of the same class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. All notices and other communications given or made hereunder shall be in writing and shall be deemed effectively given upon the earlier of actual receipt, or (i) personal delivery to the party to be notified, (ii) when sent, if sent by electronic mail during normal business hours of the recipient, and if not sent during normal business hours, then on the next Business Day, (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one Business Day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. Notice to any Holder shall be given to the registered address set forth in the Company's records for such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. With respect to any notice to a Holder required to be provided hereunder, neither failure to send such notice, nor any defect therein or in the sending thereof, to any particular Holder shall affect the sufficiency of the notice or the validity of the proceedings referred to in such notice with respect to the other Holders or affect the legality or validity of any vote upon any such action (assuming due and proper notice to such other Holders). Any notice which was sent in the manner herein provided shall be conclusively presumed to have been duly given whether or not the Holder actually receives the notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. The shares of Series B Preferred Stock shall be issuable only in whole shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Any payments required to be made hereunder on any day that is not a Business Day shall be made on the next succeeding Business Day without interest or additional payment for such delay. All payments required hereunder shall be made by wire transfer of immediately available funds in United States Dollars to the Holders in accordance with the payment instructions as such Holders may deliver by written notice to the Company from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. The shares of Series B Preferred Stock shall have no preemptive or subscription rights, except those that may be expressly provided by contract.

SECTION 11. *Definitions.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. ***"Business Day"*** means any weekday that is not a day on which banking institutions in New York, New York are authorized or required by law, regulation or executive order to be closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. ***"Holder"*** means, unless the context otherwise indicates or requires, a holder of record of a share of Series B Preferred Stock, as reflected in the transfer books of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. ***"Series B Triggered Redemption Event"*** means: (i) the sale, transfer or other disposition, in a single transaction or series of related transactions of all or substantially all of the Company's assets, (ii) a merger or consolidation transaction into another entity where immediately following the consummation of such transaction, the holders of Common Stock will receive the interests of another entity, or (iii) the closing of the transfer (whether by merger, consolidation or otherwise) of the Company's capital stock if, after such closing, the beneficial owner (as defined under the Securities Exchange Act of 1934, as amended) would acquire more than fifty percent (50%) of the outstanding voting securities of the Company (or the surviving or acquiring entity).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. ***"Stated Value"*** means $1,000 per share of Series B Preferred Stock.

*[Signature page follows]* 

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IN WITNESS WHEREOF, the Company has caused this Certificate of Designations to be signed by its undersigned duly authorized officer.

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| | |
|:---|:---|
| WHITEHAWK INCOME CORPORATION | WHITEHAWK INCOME CORPORATION |
| By: | /s/ Daniel C. Herz |
|  | Name: Daniel C. Herz |
|  | Title: ChiefExecutive Officer |

---

*[Signature Page to Series B Certificate of Designations]*

## Exhibit 3.5

**Exhibit 3.5** 

**CERTIFICATE OF DESIGNATIONS OF PREFERRED STOCK OF** 

**WHITEHAWK INCOME CORPORATION** 

WhiteHawk Income Corporation, a Delaware corporation (the "***Company***"), hereby certifies that, pursuant to the provisions of Sections 103, 141 and 151 of the General Corporation Law of the State of Delaware, on March 30, 2026, the board of directors of the Company (the "***Board***") adopted the resolution shown immediately below, which resolution is now, and at all times since its date of adoption has been in full force and effect:

RESOLVED, that pursuant to the provisions of the Amended and Restated Certificate of Incorporation of the Company (as such may be amended, modified or restated from time to time, the "***Amended and Restated Charter***"), which authorizes 400,000 shares of preferred stock, par value $0.0001 per share (the "***Preferred Stock***"), and the authority thereby vested in the Board, a series of Preferred Stock be, and it is hereby, created, and that the designation and number of shares of such series, and the voting and other powers, preferences and relative, participating, optional or other rights, and the qualifications, limitations and restrictions thereof are as set forth in the Amended and Restated Charter and this Certificate of Designations, as it may be amended from time to time (the "***Certificate of Designations***") as follows:

**SECTION 1. *Designation and Number of Shares***. Pursuant to the Amended and Restated Charter, there is hereby created out of the authorized and unissued shares of Preferred Stock a series of Preferred Stock consisting of 37,780 shares of Preferred Stock designated as "Series D Preferred Stock" (the "***Series D Preferred Stock***"). To the extent not prohibited by the Amended and Restated Charter, the provisions hereof or other provisions of applicable law, such number of shares may be increased or decreased by resolution of the Board; *provided, however*, that no decrease shall reduce the number of shares of Series D Preferred Stock to less than the number of shares of Series D Preferred Stock then outstanding. Shares of the Series D Preferred Stock that are redeemed, purchased or otherwise acquired by the Company shall be cancelled, and shall revert to authorized but unissued shares of Preferred Stock undesignated as to series and subject to later issuance.

**SECTION 2. *Rank****.* The Series D Preferred Stock shall, as to the payment of dividends and the distribution of assets upon the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, rank senior to each class or series of the Company's Common Stock par value $0.0001 per share (the "***Common Stock***") and any other class or series of capital stock of the Company, including but not limited to the Company's Series B Preferred Stock (such securities collectively referred to herein as the "***Junior Securities***").

**SECTION 3. *Uncertificated Shares***. The shares of Series D Preferred Stock shall be in uncertificated, book-entry form as permitted by the bylaws of the Company and the Delaware General Corporation Law.

**SECTION 4. *Voting****.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth in this Certificate of Designations, the holders of the Series D Preferred Stock shall have no voting rights, and shall not be entitled to any vote with respect to shares of Series D Preferred Stock held of record by a Holder on any matters on which any of the Company's stockholders are entitled to vote, except as set forth in this Certificate of Designations or as required by law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, at any time when any shares of Series D Preferred Stock are outstanding the Company shall not, either directly or indirectly by amendment, merger, consolidation or otherwise, do any of the following without the consent of the then-holders of Series D Preferred Stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) other than pursuant to that certain Note Purchase Agreement, dated as of September 17, 2024, by and among the Company, Pacific Indemnity Company, EIG River Energy Partners, L.P., EIG Upstream Partners, L.P., EIG Blandelier Partners, L.P., U.S. Bank Trust Company, National Association and each of the guarantors thereunder (as may be amended, supplemented or otherwise modified from time to time, the "***EIG Note Purchase Agreement***"), guarantee, directly or indirectly, or permit any subsidiary to guarantee, directly or indirectly, any indebtedness except for trade accounts of the Company or any subsidiary arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) incur any indebtedness, other than trade credit incurred in the ordinary course of business or pursuant to the EIG Note Purchase Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) other than the Series D Preferred Stock, create or issue or obligate itself to issue shares of, or reclassify, any capital stock unless the same ranks junior to the Series D Preferred Stock with respect to its special rights, powers and preferences.

**SECTION 5. *Dividends***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Dividends on each share of Series D Preferred Stock shall (i) accrue on a daily basis at the Dividend Rate from and including the date of issuance, whether or not the Company has assets legally available to make payment thereof and (ii) be payable monthly in arrears on each Dividend Payment Date. Dividends shall accumulate from the most recent date through which dividends shall have been paid, or, if no dividends have been paid, from the date of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No dividend or distribution shall be declared and paid on any class or series of capital stock of the Company unless all dividends are declared and paid with respect to the Series D Preferred Stock pursuant to <u>Section</u> <u>5(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Company does not redeem all of the shares of Series D Preferred Stock prior to the Dividend Cutoff Date, the Company shall not declare, pay or set aside any distributions or dividends with respect to any class or series of capital stock of the Company until all of the shares of Series D Preferred Stock have been redeemed and the Holders have received the Minimum Return.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Prior to declaring any dividend with respect to shares of any class or series of capital stock of the Company in accordance with this Section 5, the Company shall take any and all prior corporate action necessary to authorize any corporate action in respect of the Series D Preferred Stock required under this Certificate of Designations.

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**SECTION 6. *Optional Redemption; Mandatory Redemption***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to compliance with the provisions of applicable law, the Company shall have the right, but not the obligation, to redeem the Series D Preferred Stock, in whole or in part, at any time and from time to time, at a redemption price of $1,000 per share of Series D Preferred Stock, plus all accrued and unpaid dividends thereon, if any (such agreement amount, the "***Redemption Price***"), by delivering written notice thereof (a "***Notice of Optional Redemption***") to each Holder and the Company's transfer agent (if any) at least three (3) Business Days prior to the date designated therein for such redemption. Upon the exercise of the optional redemption right set forth in this <u>Section</u> <u>6(a)</u> with respect to any share of Series D Preferred Stock that is the last share of Series D Preferred Stock held by a Holder, in addition to the Redemption Price, if applicable, the Company shall pay an additional dividend, if required, such that, together with the payment of the Redemption Price and all dividends paid with respect to such Holder in the aggregate, such Holder shall have received the Minimum Return (such additional dividend, the "***Minimum Return Payment***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that (i) there is a Deemed Liquidation Event, (ii) the Company ceases, or is deemed to have ceased, to conduct business, (iii) any legal proceeding by any judgment creditor is commenced against the Company to attach or levy upon any material property of the Company, which is not dismissed within 45 days, (iv) the Company shall become the subject of any bankruptcy (including, without limitation, any reorganization under Chapter 11 of Title 11 of the United States Code and /or its foreign equivalent), insolvency, receivership, liquidation (including, without limitation, any liquidation under Chapter 7 of Title 11 of the United States Code and/or its foreign equivalent), or dissolution under applicable law or statute, or (v) the Company shall make a general assignment for the benefit of its creditors (each, a "***Mandatory Redemption Trigger***"), then, in the case of each of the foregoing, the Company shall be required to redeem all of the issued and outstanding Series D Preferred Stock at the Redemption Price, accompanied by the Minimum Return Payment, if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As promptly as possible following the delivery of a Notice of Optional Redemption (but no earlier than three (3) days thereafter) or upon a Mandatory Redemption Trigger, each Holder specified, as applicable, to be redeemed by the Company shall have such Holder's shares of Series D Preferred Stock to be redeemed by the Company exchanged for the Redemption Price, accompanied by the Minimum Return Payment, if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If, on the date of any redemption pursuant to this <u>Section</u> <u>6</u>, Delaware law governing distributions to stockholders prevents the Company from redeeming all shares of Series D Preferred Stock to be redeemed pursuant to this <u>Section</u> <u>6</u>, the Company shall ratably redeem the maximum number of shares of Series D Preferred Stock that it may redeem consistent with such law, and shall use best efforts to ameliorate such condition and redeem the remaining shares of Series D Preferred Stock as soon as it may lawfully do so under such law. For the avoidance of doubt, (i) all rights with respect to the shares of Series D Preferred Stock redeemed pursuant to this <u>Section</u> <u>6</u> and (ii) the Company's obligation to pay dividends with respect to such shares of Series D Preferred Stock if, as and when declared by the Board of Directors will terminate only upon the Redemption Price, accompanied by the Minimum Return Payment, if applicable, being paid in full and in cash in respect of such shares of Series D Preferred Stock.

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**SECTION 7. *Shares to be Retired***. All shares of Series D Preferred Stock redeemed by the Company in accordance with <u>Section</u> <u>6</u> shall be retired and cancelled and shall be restored to the status of authorized but unissued shares of Preferred Stock, without designation as to series.

**SECTION 8. *Liquidation, Dissolution or Winding Up of the Company***. In the event of a voluntary or involuntary liquidation, dissolution or winding up of the Company (a "***Liquidation Event***"), holders of the Series D Preferred Stock will first be entitled to receive the Minimum Return before any distribution of assets is made to holders of any Junior Securities. After the payment of the Minimum Return to the holders of the Series D Preferred Stock, the remaining assets of the Company shall be distributed ratably to the holders of the Common Stock and any other Junior Securities in accordance with their rights and preferences.

**SECTION 9. *Severability***. In the event any provision of these terms for the Series D Preferred Stock is for any reason held by a court of competent jurisdiction to be invalid, illegal or unenforceable, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and these terms for the Series D Preferred Stock shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

**SECTION 10. *Miscellaneous***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Transfers of Series D Preferred Stock held in uncertificated, book-entry form shall be made only upon the transfer books of the Company kept at an office of the transfer agent upon receipt of proper transfer instructions from the registered owner of such uncertificated shares, or from a duly authorized attorney or from an individual presenting proper evidence of succession, assignment or authority to transfer the stock. The Company may refuse any requested transfer until furnished evidence satisfactory to it that such transfer is proper.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The shares of Series D Preferred Stock shall not be subject to the operation of any retirement or sinking fund. The shares of Series D Preferred Stock shall not be convertible into, or exchangeable for, shares of stock of any other class or classes, or of any other series of the same class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All notices and other communications given or made hereunder shall be in writing and shall be deemed effectively given upon the earlier of actual receipt, or (i) personal delivery to the party to be notified, (ii) when sent, if sent by electronic mail during normal business hours of the recipient, and if not sent during normal business hours, then on the next Business Day, (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one Business Day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. Notice to any Holder shall be given to the registered address set forth in the Company's records for such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With respect to any notice to a Holder required to be provided hereunder, neither failure to send such notice, nor any defect therein or in the sending thereof, to any particular Holder shall affect the sufficiency of the notice or the validity of the proceedings referred to in such notice with respect to the other Holders or affect the legality or validity of any vote upon any such action (assuming due and proper notice to such other Holders). Any notice which was sent in the manner herein provided shall be conclusively presumed to have been duly given whether or not the Holder actually receives the notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any payments required to be made hereunder on any day that is not a Business Day shall be made on the next succeeding Business Day without interest or additional payment for such delay. All payments required hereunder shall be made by wire transfer of immediately available funds in United States Dollars to the Holders in accordance with the payment instructions as such Holders may deliver by written notice to the Company from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The shares of Series D Preferred Stock shall have no preemptive or subscription rights, except those that may be expressly provided by contract.

**SECTION 11. *Definitions***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "***Business Day***" means any weekday that is not a day on which banking institutions in New York, New York are authorized or required by law, regulation or executive order to be closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "***Dividend Cutoff Date***" means December 31, 2028.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "***Dividend Payment Date***" means the first day of each month; provided, that, if any such Dividend Payment Date is not a Business Day, then the applicable dividend shall be payable on the next Business Day immediately following such Dividend Payment Date, without any interest or additional accrual (other than any such accrual that is payable on the subsequent Dividend Payment Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "***Dividend Rate***" means (i) from and including the Closing to December 31, 2027, 14% per annum and (ii) after December 31, 2027, 18% per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "***Deemed Liquidation Event***" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a merger, consolidation, statutory conversion, transfer, domestication, or continuance in which (A) the Company is a constituent party; or (B) a subsidiary of Company is a constituent party and the Company issues shares of its capital stock pursuant to such merger or consolidation, except any such merger, consolidation, statutory conversion, transfer, domestication, or continuance involving the Company or a subsidiary in which the shares of capital stock of the Company outstanding immediately prior to such merger, consolidation, statutory conversion, transfer, domestication, or continuance continue to represent, or are converted into or exchanged for shares of capital stock or other equity interests that represent, immediately following such merger, consolidation, statutory conversion, transfer, domestication, or continuance, a majority, by voting power, of the capital stock or other equity interests of (1) the surviving or resulting corporation or entity; or (2) if the surviving or resulting corporation or entity is a wholly owned subsidiary of another corporation or entity immediately following such merger, consolidation, statutory conversion, transfer, domestication, or continuance, the parent corporation or entity of such surviving or resulting corporation or entity; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the Company or any subsidiary of the Company of all or substantially all the assets of the Company and its subsidiaries taken as a whole or (B) the sale, lease, transfer, exclusive license or other disposition (whether by merger, consolidation, statutory conversion, domestication, continuance or otherwise, and whether in a single transaction or a series of related transactions) of one or more subsidiaries of the Company if substantially all of the assets of the Company and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or other disposition is to a wholly owned subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "***Minimum Return***" means a return of 8% per share of Series D Preferred Stock upon the payment of all dividends thereon and all liquidation, redemption and other cash payments, as applicable, made by the Company to the holder of such share of Series D Preferred Stock with respect to such share of Series D Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "***Holder***" means, unless the context otherwise indicates or requires, a holder of record of a share of Series D Preferred Stock, as reflected in the transfer books of the Company.

*[Signature page follows]* 

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**IN WITNESS WHEREOF**, the Company has caused this Certificate of Designations to be signed by its undersigned duly authorized officer.

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| | |
|:---|:---|
| **WHITEHAWK INCOME CORPORATION** | **WHITEHAWK INCOME CORPORATION** |
| By: | /s/ Daniel C. Herz |
| Name: Daniel C. Herz | Name: Daniel C. Herz |
| Title: Chief Executive Officer | Title: Chief Executive Officer |

---

*Signature Page to Certificate of Designations*

## Exhibit 3.6

**Exhibit 3.6** 

**BY-LAWS OF WHITEHAWK INCOME CORPORATION** 

**ARTICLE I** 

**OFFICES** 

**Section 1.01 Offices.** The address of the registered office of WhiteHawk Income Corporation, (hereinafter called the "**Corporation**") in the State of Delaware shall be at 16192 Coastal Highway, in the city of Lewes, County of Sussex, Delaware. The Corporation may have other offices, both within and without the State of Delaware, as the board of directors of the Corporation (the "**Board of Directors**") from time to time shall determine or the business of the Corporation may require in its discretion. The initial registered agent of the Corporation shall be Harvard Business Services, Inc. until such agent resigns or is removed by the Board of Directors.

**Section 1.02 Books and Records.** Any records administered by or on behalf of the Corporation in the regular course of its business, including its stock ledger, books of account, and minute books, may be maintained on any information storage device, method, or one or more electronic networks or databases (including one or more distributed electronic networks or databases); *provided that* the records so kept can be converted into clearly legible paper form within a reasonable time, and, with respect to the stock ledger, the records so kept comply with Section 224 of the Delaware General Corporation Law (the "DGCL"). The Corporation shall so convert any records so kept upon the request of any person entitled to inspect such records pursuant to applicable law.

**ARTICLE II** 

**MEETINGS OF THE STOCKHOLDERS** 

**Section 2.01 Place of Meetings.** All meetings of the stockholders shall be held at such place, if any, either within or without the State of Delaware, or by means of remote communication, as shall be designated from time to time by resolution of the Board of Directors and stated in the notice of meeting.

**Section 2.02 Annual Meeting.** The annual meeting of the stockholders for the election of directors and for the transaction of such other business as may properly come before the meeting shall be held at such date, time and place, if any, as shall be determined by the Board of Directors and stated in the notice of the meeting.

**Section 2.03 Special Meetings.** Special meetings of stockholders for any purpose or purposes may be called by the Chief Executive Officer (the "CEO"), a resolution of the Board of Directors, or by stockholders entitled to cast at least one-fifth (1/5) of the votes which all stockholders are entitled to cast. The only business which may be conducted at a special meeting shall be the matter or matters set forth in the notice of such meeting.

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**Section 2.04 Adjournments.** Any meeting of the stockholders, annual or special, may be adjourned from time to time to reconvene at the same or some other place, if any, and notice need not be given of any such adjourned meeting if the time, place, if any, thereof, and the means of remote communication, if any, are announced at the meeting at which the adjournment is

taken. At the adjourned meeting, the Corporation may transact any business which might have been transacted at the original meeting. If the adjournment is for more than 30 days, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting. If after the adjournment a new record date is fixed for stockholders entitled to vote at the adjourned meeting, the Board of Directors shall fix a new record date for notice of the adjourned meeting and shall give notice of the adjourned meeting to each stockholder of record entitled to vote at the adjourned meeting as of the record date fixed for notice of the adjourned meeting.

**Section 2.05 Notice of Meetings.** Notice of the place, if any, date, hour, the record date for determining the stockholders entitled to vote at the meeting (if such date is different from the record date for stockholders entitled to notice of the meeting) and means of remote communication, if any, of every meeting of stockholders shall be given by the Corporation not less than 10 days nor more than 60 days before the meeting (unless a different time is specified by law) to every stockholder entitled to vote at the meeting as of the record date for determining the stockholders entitled to notice of the meeting. Notices of special meetings shall also specify the purpose or purposes for which the meeting has been called. Notices of meetings to stockholders may be given by mailing the same, addressed to the stockholder entitled thereto, at such stockholder's mailing address as it appears on the records of the corporation and such notice shall be deemed to be given when deposited in the U.S. mail, postage prepaid. Without limiting the manner by which notices of meetings otherwise may be given effectively to stockholders, any such notice may be given by electronic transmission in accordance with applicable law. Notice of any meeting need not be given to any stockholder who shall, either before or after the meeting, submit a waiver of notice or who shall attend such meeting, except when the stockholder attends for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Any stockholder so waiving notice of the meeting shall be bound by the proceedings of the meeting in all respects as if due notice thereof had been given.

**Section 2.06 List of Stockholders.** The Corporation shall prepare a complete list of the stockholders entitled to vote at any meeting of stockholders (provided, however, if the record date for determining the stockholders entitled to vote is less than ten days before the date of the meeting, the list shall reflect the stockholders entitled to vote as of the tenth day before the meeting date), arranged in alphabetical order, and showing the address of each stockholder and the number of shares of each class of capital stock of the Corporation registered in the name of each stockholder at least ten days before any meeting of the stockholders. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting, on a reasonably accessible electronic network if the information required to gain access to such list was provided with the notice of the meeting or during ordinary business hours, at the principal place of business of the Corporation for a period of at least ten days before the meeting. If the meeting is to be held at a place, the list shall also be produced and kept at the time and place of the meeting the whole time thereof and may be inspected by any stockholder who is present. If the meeting is held solely by means of remote communication, the list shall also be open for inspection by any stockholder during the whole time of the meeting as provided by applicable law. Except as provided by applicable law, the stock ledger of the Corporation shall be the only evidence as to who are the stockholders entitled to examine the stock ledger and the list of stockholders or to vote in person or by proxy at any meeting of stockholders.

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**Section 2.07 Quorum.** Unless otherwise required by law, the Corporation's Certificate of Incorporation (the "**Certificate of Incorporation**") or these by-laws, at each meeting of the stockholders, a majority in voting power of the shares of the Corporation entitled to vote at the meeting, present in person or represented by proxy, shall constitute a quorum. If, however, such quorum shall not be present or represented at any meeting of the stockholders, the stockholders entitled to vote, present in person or represented by proxy, shall have power, by the affirmative vote of a majority in voting power thereof, to adjourn the meeting from time to time, in the manner provided in Section 2.04, until a quorum shall be present or represented. A quorum, once established, shall not be broken by the subsequent withdrawal of enough votes to leave less than a quorum. At any such adjourned meeting at which there is a quorum, any business may be transacted that might have been transacted at the meeting originally called.

**Section 2.08 Conduct of Meetings.** The Board of Directors may adopt by resolution such rules and regulations for the conduct of the meeting of the stockholders as it shall deem appropriate. At every meeting of the stockholders, the Chair of the Board, or in his or her absence or inability to act, the CEO, or, in his or her absence or inability to act, the person whom the Chair of the Board shall appoint, shall act as chair of, and preside at, the meeting. The secretary or, in his or her absence or inability to act, the person whom the chair of the meeting shall appoint secretary of the meeting, shall act as secretary of the meeting and keep the minutes thereof. Except to the extent inconsistent with such rules and regulations as adopted by the Board of Directors, the chair of any meeting of the stockholders shall have the right and authority to prescribe such rules, regulations, and procedures and to do all such acts as, in the judgment of such chair, are appropriate for the proper conduct of the meeting. Such rules, regulations, or procedures, whether adopted by the Board of Directors or prescribed by the chair of the meeting, may include, without limitation, the following: (a) the establishment of an agenda or order of business for the meeting; (b) the determination of when the polls shall open and close for any given matter to be voted on at the meeting; (c) rules and procedures for maintaining order at the meeting and the safety of those present; (d) limitations on attendance at or participation in the meeting to stockholders of record of the corporation, their duly authorized and constituted proxies or such other persons as the chair of the meeting shall determine; (e) restrictions on entry to the meeting after the time fixed for the commencement thereof; and (f) limitations on the time allotted to questions or comments by participants.

**Section 2.09 Voting; Proxies.** Unless otherwise required by law or the Certificate of Incorporation, the election of directors shall be decided by a plurality of the votes cast at a meeting of the stockholders, at which a quorum is present, by the holders of stock entitled to vote in the election. Unless otherwise required by law, the Certificate of Incorporation, or these by-laws, any matter, other than the election of directors, brought before any meeting of stockholders, at which a quorum is present, shall be decided by the affirmative vote of the majority of shares present in person or represented by proxy at the meeting and entitled to vote on the matter. Each stockholder entitled to vote at a meeting of stockholders or to express consent to corporate action without a meeting may authorize another person or persons to act for such stockholder by proxy, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. The authorization of a person to act as proxy may be documented, signed, and delivered in accordance with Section 116 of the DGCL provided that such authorization shall set forth, or be delivered with, information enabling the Corporation to determine the identity of the stockholder granting such authorization. A proxy

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shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. A stockholder may revoke any proxy which is not irrevocable by attending the meeting and voting in person or by delivering to the secretary of the Corporation a revocation of the proxy or a new proxy bearing a later date. Voting at meetings of stockholders need not be by written ballot.

**Section 2.10 Inspectors at Meetings of Stockholders.** The Board of Directors, in advance of any meeting of stockholders, may, and shall if required by law, appoint one or more inspectors, who may be employees of the Corporation, to act at the meeting or any adjournment thereof and make a written report thereof. The Board of Directors may designate one or more persons as alternate inspectors to replace any inspector who fails to act. If no inspector or alternate is able to act at a meeting, the person presiding at the meeting shall appoint one or more inspectors to act at the meeting. Each inspector, before entering upon the discharge of his or her duties, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best of his or her ability. The inspectors shall (a) ascertain the number of shares outstanding and the voting power of each, (b) determine the shares represented at the meeting, the existence of a quorum and the validity of proxies and ballots, (c) count all votes and ballots, (d) determine and retain for a reasonable period a record of the disposition of any challenges made to any determination by the inspectors, and (e) certify their determination of the number of shares represented at the meeting and their count of all votes and ballots. The inspectors may appoint or retain other persons or entities to assist the inspectors in the performance of their duties. Unless otherwise provided by the Board of Directors, the date and time of the opening and the closing of the polls for each matter upon which the stockholders will vote at a meeting shall be announced at the meeting. No ballot, proxies, votes, or any revocation thereof or change thereto, shall be accepted by the inspectors after the closing of the polls unless the Court of Chancery of the State of Delaware upon application by a stockholder shall determine otherwise. In determining the validity and counting of proxies and ballots cast at any meeting of stockholders, the inspectors may consider such information as is permitted by applicable law. No person who is a candidate for office at an election may serve as an inspector at such election.

**Section 2.11 Consent of Stockholders Without a Meeting.** Any action to be taken at any annual or special meeting of stockholders may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing or by electronic transmission, setting forth the action to be so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted and shall be delivered to the Corporation by delivery to its registered office in the State of Delaware (by hand or by certified or registered mail, return receipt requested), its principal place of business, an officer or agent of the Corporation having custody of the book in which proceedings of meetings of stockholders are recorded, or to an information processing system designated by the Corporation for receiving such consents in accordance with applicable law. Every consent shall bear the date of signature of each stockholder who signs the consent, and no consent shall be effective to take the corporate action referred to therein unless, within 60 days of the earliest dated consent delivered in the manner required by this Section 2.11, consents signed by a sufficient number of holders to take action are delivered to the Corporation as aforesaid. Prompt notice of the taking of the corporate action without a meeting by less than unanimous consent shall, to the extent required by applicable law, be given to those stockholders who have not consented in writing, and who, if the action had been taken at a meeting, would have been entitled to notice of the meeting if the record date for notice of such meeting had been the date that consents signed by a sufficient number of holders to take the action were delivered to the Corporation.

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**Section 2.12 Fixing the Record Date.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In order that the Corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board of Directors, and which record date shall not be more than 60 nor less than ten days before the date of such meeting. If the Board of Directors so fixes a date, such date shall also be the record date for determining the stockholders entitled to vote at such meeting unless the Board of Directors determines, at the time it fixes such record date, that a later date on or before the date of the meeting shall be the date for making such determination. If no record date is fixed by the Board of Directors, the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; *provided, however,* that the Board of Directors may fix a new record date for the determination of stockholders entitled to vote at the adjourned meeting and in such case shall also fix as the record date for stockholders entitled to notice of such adjourned meeting the same or an earlier date as that fixed for the determination of stockholders entitled to vote therewith at the adjourned meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In order that the Corporation may determine the stockholders entitled to consent to corporate action without a meeting, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board of Directors, and which record date shall not be more than ten days after the date upon which the resolution fixing the record date is adopted by the Board of Directors. If no record date has been fixed by the Board of Directors, the record date for determining stockholders entitled to consent to corporate action without a meeting: (i) when no prior action by the Board of Directors is required by law, the record date for such purpose shall be the first date on which a signed consent setting forth the action taken or proposed to be taken is delivered to the Corporation by delivery (by hand, or by certified or registered mail, return receipt requested) to its registered office in the State of Delaware, its principal place of business, or an officer or agent of the Corporation having custody of the book in which proceedings of meetings of stockholders are recorded and (ii) if prior action by the Board of Directors is required by law, the record date for such purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution taking such prior action.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In order that the Corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion, or exchange of stock, or for the purpose of any other lawful action, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted, and which record date shall be not more than 60 days prior to such action. If no record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto.

**ARTICLE III** 

**BOARD OF DIRECTORS** 

**Section 3.01 General Powers.** The business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors. The Board of Directors may adopt such rules and procedures, not inconsistent with the Certificate of Incorporation, these by-laws, or applicable law, as it may deem proper for the conduct of its meetings and the management of the Corporation.

**Section 3.02 Number; Term of Office.** The Board of Directors shall consist of one or more members, the number thereof to be determined from time to time by resolution of the Board of Directors. Each director shall hold office until a successor is duly elected and qualified or until the director's earlier death, resignation, disqualification, or removal.

**Section 3.03 Newly Created Directorships and Vacancies.** Any newly created directorships resulting from an increase in the authorized number of directors and any vacancies occurring in the Board of Directors, may be filled by the affirmative votes of a majority of the remaining members of the Board of Directors, although less than a quorum, or by a sole remaining director. A director so elected shall be elected to hold office until the earlier of the expiration of the term of office of the director whom he or she has replaced, a successor is duly elected and qualified, or the earlier of such director's death, resignation or removal.

**Section 3.04 Resignation.** Any director may resign at any time by notice given either in writing or by electronic transmission to the Corporation. Such resignation shall take effect at the date of receipt of such notice by the Corporation or at such later time as is therein specified.

**Section 3.05 Removal.** Except as prohibited by applicable law or the Certificate of Incorporation, the stockholders entitled to vote in an election of directors may remove any director from office at any time, with or without cause, by the affirmative vote of a majority in voting power thereof.

**Section 3.06 Fees and Expenses.** Directors shall receive such fees and expenses as the Board of Directors shall from time to time prescribe.

**Section 3.07 Regular Meetings.** Regular meetings of the Board of Directors may be held without notice at such times and at such places as may be determined from time to time by the Board of Directors or the Chair of the Board.

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**Section 3.08 Special Meetings.** Special meetings of the Board of Directors may be held at such times and at such places as may be determined by the Chair of the Board or the CEO on at least 24 hours' notice to each director given by one of the means specified in Section 3.11 hereof other than by mail or on at least three days' notice if given by mail. Special meetings shall be called by the chairman or the CEO in like manner and on like notice on the written request of any two or more directors.

**Section 3.09 Telephone Meetings.** Board of Directors or Board of Directors committee meetings may be held by means of telephone conference or other communications equipment by means of which all persons participating in the meeting can hear each other and be heard. Participation by a director in a meeting pursuant to this Section 3.09 shall constitute presence in person at such meeting.

**Section 3.10 Adjourned Meetings.** A majority of the directors present at any meeting of the Board of Directors, including an adjourned meeting, whether or not a quorum is present, may adjourn and reconvene such meeting to another time and place. At least 24 hours' notice of any adjourned meeting of the Board of Directors shall be given to each director whether or not present at the time of the adjournment, if such notice shall be given by one of the means specified in Section 3.11 hereof other than by mail, or at least three days' notice if by mail. Any business may be transacted at an adjourned meeting that might have been transacted at the meeting as originally called.

**Section 3.11 Notices.** Subject to Section 3.08, Section 3.10, and Section 3.12 hereof, whenever notice is required to be given to any director by applicable law, the Certificate of Incorporation, or these by-laws, such notice shall be deemed given effectively if given in person or by telephone, mail addressed to such director at such director's address as it appears on the records of the Corporation, facsimile, email, or by other means of electronic transmission.

**Section 3.12 Waiver of Notice.** Whenever notice to directors is required by applicable law, the Certificate of Incorporation, or these by-laws, a waiver thereof, in writing signed by, or by electronic transmission by, the director entitled to the notice, whether before or after such notice is required, shall be deemed equivalent to notice. Attendance by a director at a meeting shall constitute a waiver of notice of such meeting except when the director attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business on the ground that the meeting was not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special Board of Directors or committee meeting need be specified in any waiver of notice.

**Section 3.13 Organization.** At each meeting of the Board of Directors, the chairman or, in his or her absence, another director selected by the Board of Directors shall preside. The secretary shall act as secretary at each meeting of the Board of Directors. If the secretary is absent from any meeting of the Board of Directors, an assistant secretary shall perform the duties of secretary at such meeting; and in the absence from any such meeting of the secretary and all assistant secretaries, the person presiding at the meeting may appoint any person to act as secretary of the meeting.

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**Section 3.14 Quorum of Directors.** Except as otherwise permitted by the Certificate of Incorporation, these by-laws, or applicable law, the presence of a majority of the Board of Directors shall be necessary and sufficient to constitute a quorum for the transaction of business at any meeting of the Board of Directors.

**Section 3.15 Action by Majority Vote.** Except as otherwise expressly required by these by-laws, the Certificate of Incorporation, or by applicable law, the vote of a majority of the directors present at a meeting at which a quorum is present shall be the act of the Board of Directors.

**Section 3.16 Action Without Meeting.** Unless otherwise restricted by the Certificate of Incorporation or these by-laws, any action required or permitted to be taken at any meeting of the Board of Directors or of any committee thereof may be taken without a meeting if all directors or members of such committee, as the case may be, consent thereto in writing or by electronic transmission and any consent may be documented, signed, and delivered in any manner permitted by Section 116 of the DGCL. After an action is taken, the consent or consents relating thereto shall be filed with the minutes of proceedings of the Board of Directors or committee in accordance with applicable law.

**Section 3.17 Committees of the Board of Directors.** The Board of Directors may designate one or more committees, each committee to consist of one or more of the directors of the Corporation. The Board of Directors may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. If a member of a committee shall be absent from any meeting, or disqualified from voting thereat, the remaining member or members present at the meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent permitted by applicable law, shall have and may exercise all the powers and authority of the Board of Directors in the management of the business and affairs of the Corporation and may authorize the seal of the Corporation to be affixed to all papers that may require it to the extent so authorized by the Board of Directors. Unless the Board of Directors provides otherwise, at all meetings of such committee, a majority of the then authorized members of the committee shall constitute a quorum for the transaction of business, and the vote of a majority of the members of the committee present at any meeting at which there is a quorum shall be the act of the committee. Each committee shall keep regular minutes of its meetings. Unless the Board of Directors provides otherwise, each committee designated by the Board of Directors may make, alter, and repeal rules and procedures for the conduct of its business. In the absence of such rules and procedures each committee shall conduct its business in the same manner as the Board of Directors conducts its business pursuant to this Article III.

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**ARTICLE IV** 

**OFFICERS** 

**Section 4.01 Positions and Election.** The officers of the Corporation shall be elected annually by the Board of Directors and shall include a Chair of the Board of Directors (who must be a director), a CEO, president, a chief financial officer and treasurer, and a secretary. The Board of Directors, in its discretion, may also elect one or more vice chairs (who must be directors), and one or more vice presidents, assistant treasurers, assistant secretaries, and other officers. Any two or more offices may be held by the same person. Except as otherwise provided in these by-laws, the Chair of the Board shall preside at all meetings of the Board of Directors and of stockholders. The Chair of the Board shall perform such other duties and services as shall be assigned to or required of the Chair of the Board by the Board of Directors.

**Section 4.02 Term.** Each officer of the Corporation shall hold office until such officer's successor is elected and qualified or until such officer's earlier death, resignation, or removal. Any officer elected or appointed by the Board of Directors may be removed by the Board of Directors at any time, with or without cause, by the majority vote of the members of the Board of Directors then in office. The removal of an officer shall be without prejudice to his or her contract rights, if any. The election or appointment of an officer shall not of itself create contract rights. Any officer of the Corporation may resign at any time by giving written notice of his or her resignation to the president or the secretary. Any such resignation shall take effect at the time specified therein or, if the time when it shall become effective shall not be specified therein, immediately upon its receipt. Unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. Should any vacancy occur among the officers, the position shall be filled for the unexpired portion of the term by appointment made by the Board of Directors.

**Section 4.03 The Chief Executive Officer.** The CEO shall have general supervision over the business of the Corporation and other duties incident to that office, and any other duties as may be from time to time assigned to the CEO by the Board of Directors and subject to the control of the Board of Directors in each case.

**Section 4.04 The President and Vice Presidents.** The President and each vice president shall have such powers and perform such duties as may be assigned to him or her from time to time by the Chair of the Board of Directors or the CEO.

**Section 4.05 The Secretary.** The secretary shall attend all sessions of the Board of Directors and all meetings of the stockholders and record all votes and the minutes of all proceedings, and shall perform like duties for committees when required. He or she shall give, or cause to be given, notice of all meetings of the stockholders and meetings of the Board of Directors, and shall perform such other duties as may be prescribed by the Board of Directors or the CEO. The secretary shall keep in safe custody the seal of the Corporation and have authority to affix the seal to all documents requiring it and attest to the same.

**Section 4.06 The Chief Financial Officer and Treasurer.** The chief financial officer and treasurer shall have the custody of the corporate funds and securities, except as otherwise provided by the Board of Directors, and shall keep full and accurate accounts of receipts and disbursements in books belonging to the Corporation and shall deposit all moneys and other valuable effects in the name and to the credit of the Corporation in such depositories as may be designated by the Board of Directors. The treasurer shall disburse the funds of the Corporation as may be ordered by the Board of Directors, taking proper vouchers for such disbursements, and shall render to the CEO and the directors, at the regular meetings of the Board of Directors, or whenever they may require it, an account of all his or her transactions as chief financial officer and treasurer and of the financial condition of the Corporation.

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**Section 4.07 Duties of Officers May Be Delegated.** In case any officer is absent, or for any other reason that the Board of Directors may deem sufficient, the CEO or the Board of Directors may delegate for the time being the powers or duties of such officer to any other officer or to any director.

**ARTICLE V** 

**STOCK CERTIFICATES AND THEIR TRANSFER** 

**Section 5.01 Certificates Representing Shares.** The shares of stock of the Corporation shall be represented by certificates; provided that the Board of Directors may provide by resolution or resolutions that some or all of any class or series shall be uncertificated shares that may be evidenced by a book-entry system maintained by the registrar of such stock. If shares are represented by certificates, such certificates shall be in the form, other than bearer form, approved by the Board of Directors. The certificates representing shares of stock of each class shall be signed by, or in the name of, the Corporation by any two authorized officers of the Corporation. Any or all such signatures may be facsimiles. Although any officer, transfer agent, or registrar whose manual or facsimile signature is affixed to such a certificate ceases to be such officer, transfer agent, or registrar before such certificate has been issued, it may nevertheless be issued by the Corporation with the same effect as if such officer, transfer agent, or registrar were still such at the date of its issue.

**Section 5.02 Transfers of Stock.** Stock of the Corporation shall be transferable in the manner prescribed in compliance with the Securities Act of 1933, as amended, as well as similar state securities laws, and in these by-laws. Transfers of stock shall be made on the books of the Corporation only by the holder of record thereof, by such person's attorney lawfully constituted in writing and, in the case of certificated shares, upon the surrender of the certificate thereof, which shall be cancelled before a new certificate or uncertificated shares shall be issued. No transfer of stock shall be valid as against the Corporation for any purpose until it shall have been entered in the stock records of the Corporation by an entry showing from and to whom transferred. To the extent designated by the CEO, the president, chief financial officer and treasurer, or any vice president of the Corporation, the Corporation may recognize the transfer of fractional uncertificated shares, but shall not otherwise be required to recognize the transfer of fractional shares.

**Section 5.03 Transfer Agents and Registrars.** The Board of Directors may appoint, or authorize any officer or officers to appoint, one or more transfer agents and one or more registrars.

**Section 5.04 Lost, Stolen, or Destroyed Certificates.** The Board of Directors may direct a new certificate or uncertificated shares to be issued in place of any certificate theretofore issued by the Corporation alleged to have been lost, stolen, or destroyed upon the making of an affidavit of that fact by the owner of the allegedly lost, stolen, or destroyed certificate. When authorizing such issue of a new certificate or uncertificated shares, the Board of Directors may, in its discretion and as a condition precedent to the issuance thereof, require the owner of the lost, stolen, or destroyed certificate, or the owner's legal representative to give the Corporation a bond sufficient to indemnify it against any claim that may be made against the Corporation with respect to the certificate alleged to have been lost, stolen, or destroyed or the issuance of such new certificate or uncertificated shares.

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**ARTICLE VI** 

**GENERAL PROVISIONS** 

**Section 6.01 Seal.** The seal of the Corporation shall be in such form as shall be approved by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed or affixed or reproduced or otherwise, as may be prescribed by law or custom or by the Board of Directors.

**Section 6.02 Fiscal Year.** The fiscal year of the Corporation shall be determined by the Board of Directors.

**Section 6.03 Checks, Notes, Drafts, Etc.** All checks, notes, drafts, or other orders for the payment of money of the Corporation shall be signed, endorsed, or accepted in the name of the Corporation by such officer, officers, person, or persons as from time to time may be designated by the Board of Directors or by an officer or officers authorized by the Board of Directors to make such designation.

**Section 6.04 Dividends.** Subject to applicable law and the Certificate of Incorporation, dividends upon the shares of capital stock of the Corporation may be declared by the Board of Directors at any regular or special meeting of the Board of Directors. Dividends may be paid in cash, in property, or in shares of the Corporation's capital stock, unless otherwise provided by applicable law or the Certificate of Incorporation.

**Section 6.05 Conflict with Applicable Law or Certificate of Incorporation.** These by-laws are adopted subject to any applicable law and the Certificate of Incorporation. Whenever these by-laws may conflict with any applicable law or the Certificate of Incorporation, such conflict shall be resolved in favor of such law or the Certificate of Incorporation.

**Section 6.06 Jurisdiction Selection** Unless the Corporation consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have subject matter jurisdiction, the federal district court for the State of Delaware) shall, to the fullest extent permitted by law, be the sole and exclusive forum for: (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim for breach of a fiduciary duty owed by any director, officer, employee, or stockholder of the Corporation to the Corporation or the Corporation's stockholders, (iii) any action asserting a claim arising pursuant to any provision of the DGCL, the Certificate of Incorporation, or the By-Laws (as either may be amended or restated) or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware, or (iv) any action asserting a claim governed by the internal affairs doctrine. To the fullest extent permitted by law, any person or entity purchasing or otherwise acquiring or holding any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this Section.

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**ARTICLE VII** 

**AMENDMENTS** 

**Section 7.01 Amendments.** These by-laws may be adopted, amended, or repealed or new by-laws adopted by the Board of Directors. The stockholders may make additional by-laws and may adopt, amend, or repeal any by-laws whether such by-laws were originally adopted by them or otherwise.

## Exhibit 3.7

**Exhibit 3.7** 

**Form of Amended and Restated Bylaws of** 

**WhiteHawk Minerals Corp.** 

**(a Delaware corporation)** 

**as of ___________, 20____** 

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**Table of Contents** 

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| | | |
|:---|:---|:---|
|  |  | **Page** |
|  Article I - Corporate Offices | Article I - Corporate Offices | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 | Registered Office | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 | Other Offices | 1 |
|  Article II - Meetings of Stockholders | Article II - Meetings of Stockholders | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 | Place of Meetings | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 | Annual Meeting | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 | Special Meeting | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 | Advance Notice of Business to be Brought before a Meeting | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 | Advance Notice of Nominations for Election to the Board of Directors at a Meeting | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 | Additional Requirements for Valid Nomination of Candidates to Serve as Director and, if Elected, to be Seated as Directors | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 | Notice of Stockholders' Meetings | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 | Quorum | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 | Adjourned Meeting; Notice | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 | Conduct of Business | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 | Voting | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 | Record Date for Stockholder Meetings and Other Purposes | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 | Proxies | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 | List of Stockholders Entitled to Vote | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 | Inspectors of Election | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 | Delivery to the Corporation | 15 |
|  Article III - Directors | Article III - Directors | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 | Powers | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 | Number of Directors | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 | Election, Qualification and Term of Office of Directors | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 | Resignation and Vacancies | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 | Place of Meetings; Meetings by Telephone | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 | Regular Meetings | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 | Special Meetings; Notice | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 | Quorum | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 | Board Action without a Meeting | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 | Fees and Compensation of Directors | 17 |
|  Article IV - Committees | Article IV - Committees | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 | Committees of Directors | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 | Committee Minutes | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 | Meetings and Actions of Committees | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 | Subcommittees. | 18 |
|  Article V - Officers | Article V - Officers | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 | Officers | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 | Appointment of Officers | 19 |

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i

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**TABLE OF CONTENTS** 

**(continued)** 

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 | Subordinate Officers | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 | Removal and Resignation of Officers | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 | Vacancies in Offices | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 | Representation of Shares of Other Corporations | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 | Authority and Duties of Officers | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 | Compensation. | 20 |
|  Article VI - Records | Article VI - Records | 20 |
|  Article VII - General Matters | Article VII - General Matters | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 | Execution of Corporate Contracts and Instruments | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 | Stock Certificates | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 | Special Designation of Certificates | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 | Lost Certificates | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 | Shares Without Certificates | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 | Construction; Definitions | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 | Dividends | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 | Fiscal Year | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 | Seal | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10 | Transfer of Stock | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11 | Stock Transfer Agreements | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.12 | Registered Stockholders | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.13 | Waiver of Notice | 22 |
|  Article VIII - Notice | Article VIII - Notice | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 | Delivery of Notice; Notice by Electronic Transmission | 23 |
|  Article IX - Indemnification | Article IX - Indemnification | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 | Indemnification of Directors and Officers | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 | Indemnification of Others | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 | Prepayment of Expenses | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 | Determination; Claim | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 | Non-Exclusivity of Rights | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 | Insurance | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 | Other Indemnification | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 | Continuation of Indemnification | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 | Amendment or Repeal; Interpretation | 25 |
|  Article X - Amendments | Article X - Amendments | 26 |
|  Article XI - Definitions | Article XI - Definitions | 26 |

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**Amended and Restated Bylaws of** 

**WhiteHawk Minerals Corp.** 

**Article I - Corporate Offices** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Registered Office</u>.

The address of the registered office of WhiteHawk Minerals Corp. (the "<u>Corporation</u>") in the State of Delaware, and the name of its registered agent at such address, shall be as set forth in the Corporation's certificate of incorporation, as the same may be amended and/or restated from time to time (the "<u>Certificate of Incorporation</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Other Offices</u>.

The Corporation may have additional offices at any place or places, within or outside the State of Delaware, as the Corporation's board of directors (the "<u>Board</u>") may from time to time establish or as the business of the Corporation may require.

**Article II - Meetings of Stockholders** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Place of Meetings</u>.

Meetings of stockholders shall be held at any place within or outside the State of Delaware, designated by the Board. The Board may, in its sole discretion, determine that a meeting of stockholders shall not be held at any place, but may instead be held solely by means of remote communication as authorized by Section 211(a)(2) of the General Corporation Law of the State of Delaware (the "<u>DGCL</u>"). In the absence of any such designation or determination, stockholders' meetings shall be held at the Corporation's principal executive office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Annual Meeting</u>.

The Board shall designate the date and time of the annual meeting of stockholders. At the annual meeting of stockholders, directors shall be elected and other proper business properly brought before the meeting in accordance with Section 2.4 may be transacted. The Board may postpone, reschedule or cancel any previously scheduled annual meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Special Meeting</u>.

Special meetings of stockholders may be called only by such persons and only in such manner as set forth in the Certificate of Incorporation.

No business may be transacted at any special meeting of stockholders other than the business specified in the notice of such meeting. The Board may postpone, reschedule or cancel any previously scheduled special meeting of stockholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Advance Notice</u> <u>of Business to be Brought before a Meeting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At an annual meeting of the stockholders, only such business shall be conducted as shall have been properly brought before the meeting. To be properly brought before an annual meeting, business must be (i) specified in a notice of meeting given by or at the direction of the Board, (ii) if not specified in a notice of meeting, otherwise brought before the meeting by or at the direction of the Board or the Chairman of the Board or (iii) otherwise properly brought before the meeting by a stockholder present in person who (A)(1) was a record owner of shares of capital stock of the Corporation both at the time of giving the notice provided for in this Section 2.4 and at the time of the meeting, (2) is entitled to vote at the meeting, and (3) has complied with this Section 2.4 in all applicable respects or (B) properly made such proposal in accordance with Rule 14a-8 under the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (as so amended and inclusive of such rules and regulations, the "<u>Exchange Act</u>"). The foregoing clause (iii) shall be the exclusive means for a stockholder to propose business to be brought before an annual meeting of the stockholders. For purposes of this Section 2.4 and Section 2.5, "<u>present in person</u>" shall mean that the stockholder proposing that the business be brought before the annual meeting of the Corporation, or a qualified representative of such proposing stockholder, appear at such annual meeting, either in person or by means of remote communication. A "<u>qualified representative</u>" of such proposing stockholder shall be a duly authorized officer, manager or partner of such stockholder or any other person authorized by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as proxy at the meeting of stockholders and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at or before the meeting of stockholders in writing or by electronic transmission. Stockholders seeking to nominate persons for election to the Board must comply with Section 2.5 and Section 2.6 and this Section 2.4 shall not be applicable to nominations for election to the Board except as expressly provided in Section 2.5 and Section 2.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without qualification, for business to be properly brought before an annual meeting by a stockholder, the stockholder must (i) provide Timely Notice (as defined below) thereof in writing and in proper form to the Secretary of the Corporation and (ii) provide any updates or supplements to such notice at the times and in the forms required by this Section 2.4. To be timely, a stockholder's notice must be delivered to, or mailed and received at, the principal executive offices of the Corporation not less than ninety (90) days nor more than one hundred twenty (120) days prior to the one-year anniversary of the preceding year's annual meeting which, in the case of the first annual meeting of stockholders following the closing of the Corporation's initial underwritten public offering of common stock, the date of the preceding year's annual meeting shall be deemed to be [*month, day*]; *provided, however*, that if the date of the annual meeting is more than thirty (30) days before or more than sixty (60) days after such anniversary date, notice by the stockholder to be timely must be so delivered, or mailed and received, not more than the hundred twentieth (120<sup>th</sup>) day prior to such annual meeting and not later than (i) the ninetieth (90<sup>th</sup>) day prior to such annual meeting or, (ii) if later, the tenth (10<sup>th</sup>) day following the day on which public disclosure of the date of such annual meeting was first made by the Corporation (such notice within such time periods, "<u>Timely Notice</u>"). In no event shall any adjournment or postponement of an annual meeting or the announcement thereof commence a new time period (or extend any time period) for the giving of Timely Notice as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To be in proper form for purposes of this Section 2.4, a stockholder's notice to the Secretary of the Corporation shall set forth:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As to each Proposing Person (as defined below), (A) the name and address of such Proposing Person (including, if applicable, the name and address that appear on the Corporation's books and records), (B) the class or series and number of shares of capital stock of the Corporation that are, directly or indirectly, owned of record or beneficially owned (within the meaning of Rule 13d-3 under the Exchange Act) by such Proposing Person, except that such Proposing Person shall in all events be deemed to beneficially own any shares of any class or series of capital stock of the Corporation as to which such Proposing Person has a right to acquire beneficial ownership at any time in the future, (C) the date or dates such shares were acquired, (D) the investment intent of such acquisition and (E) any pledge by such Proposing Person with respect to any of such shares (the disclosures to be made pursuant to the foregoing clauses (A) through (E) are referred to as "<u>Stockholder Information</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) As to each Proposing Person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the material terms and conditions of any "derivative security" (as such term is defined in Rule 16a-1(c) under the Exchange Act) that constitutes a "call equivalent position" (as such term is defined in Rule 16a-1(b) under the Exchange Act) or a "put equivalent position" (as such term is defined in Rule 16a-1(h) under the Exchange Act) or other derivative or synthetic arrangement in respect of any class or series of shares of capital stock of the Corporation ("<u>Synthetic Equity Position</u>") that is, directly or indirectly, held or maintained by, held for the benefit of, or involving such Proposing Person, including, without limitation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any option, warrant, convertible security, stock appreciation right, future or similar right with an exercise or conversion privilege or a settlement payment or mechanism at a price related to any class or series of shares of capital stock of the Corporation or with a value derived in whole or in part from the value of any shares of any class or series of shares of capital stock of the Corporation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any derivative or synthetic arrangement having the characteristics of a long position or a short position in any class or series of shares of capital stock of the Corporation, including, without limitation, a stock loan transaction, a stock borrow transaction, or a share repurchase transaction or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any contract, derivative, swap or other transaction or series of transactions designed to: (x) produce economic benefits and risks that correspond substantially to the ownership of any class or series of shares of capital stock of the Corporation, (y) mitigate any loss relating to, reduce the economic risk (of ownership or otherwise) of, or manage the risk of share price decrease in, any class or series of shares of capital stock of the Corporation, or (z) increase or decrease the voting power in respect of any class or series of shares of capital stock of the Corporation held or maintained by, held for the benefit of, or involving such Proposing Person,

including, without limitation, due to the fact that the value of such contract, derivative, swap or other transaction or series of transactions is determined by reference to the price, value or volatility of any class or series of shares of capital stock of the Corporation, whether or not such instrument, contract or right shall be subject to settlement in the underlying class or series of shares of capital stock of the Corporation, through the delivery of cash or other property, or otherwise, and without regard to

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whether the holder thereof may have entered into transactions that hedge or mitigate the economic effect of such instrument, contract or right, or any other direct or indirect opportunity to profit or share in any profit derived from any increase or decrease in the price or value of any shares of any class or series of shares of capital stock of the Corporation;

*provided that*, for the purposes of the definition of "Synthetic Equity Position," the term "derivative security" shall also include any security or instrument that would not otherwise constitute a "derivative security" as a result of any feature that would make any conversion, exercise or similar right or privilege of such security or instrument becoming determinable only at some future date or upon the happening of a future occurrence, in which case the determination of the amount of securities into which such security or instrument would be convertible or exercisable shall be made assuming that such security or instrument is immediately convertible or exercisable at the time of such determination; *and, provided, further, that* any Proposing Person satisfying the requirements of Rule 13d-1(b)(1) under the Exchange Act (other than a Proposing Person that so satisfies Rule 13d-1(b)(1) under the Exchange Act solely by reason of Rule 13d-1(b)(1)(ii)(E)) shall not be deemed to hold or maintain the notional amount of any securities that underly any Synthetic Equity Position that is, directly or indirectly, held or maintained by, held for the benefit of, or involving such Proposing Person as a hedge with respect to a bona fide derivatives trade or position of such Proposing Person arising in the ordinary course of such Proposing Person's business as a derivatives dealer,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a description of any agreement, arrangement or understanding with respect to any rights to dividends on the shares of any class or series of shares of capital stock of the Corporation owned beneficially by such Proposing Person that are separated or separable pursuant to such agreement, arrangement or understanding from the underlying shares of capital stock of the Corporation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any material pending or threatened legal proceeding in which such Proposing Person is a party or material participant involving the Corporation or any of its officers or directors, or any affiliate of the Corporation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any other material relationship between such Proposing Person, on the one hand, and the Corporation or any affiliate of the Corporation, on the other hand,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any direct or indirect material interest in any material contract or agreement of such Proposing Person with the Corporation or any affiliate of the Corporation (including, in any such case, any employment agreement, collective bargaining agreement or consulting agreement),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) any proportionate interest in shares of capital stock of the Corporation or a Synthetic Equity Position held, directly or indirectly, by a general or limited partnership, limited liability company or similar entity in which any such Proposing Person (1) is a general partner or, directly or indirectly, beneficially owns an interest in a general partner of such general or limited partnership or (2) is the manager, managing member or, directly or indirectly, beneficially owns an interest in the manager or managing member of such limited liability company or similar entity,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) a representation that such Proposing Person intends or is part of a group that intends to deliver a proxy statement and/or form of proxy to holders of at least the percentage of the Corporation's outstanding capital stock required to approve or adopt the proposal or otherwise solicit proxies or votes from stockholders in support of such proposal, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) any other information relating to such Proposing Person that would be required to be disclosed in a proxy statement or other filing required to be made in connection with solicitations of proxies or consents by such Proposing Person in support of the business proposed to be brought before the meeting pursuant to Section 14(a) of the Exchange Act,

(the disclosures to be made pursuant to the foregoing clauses (A) through (H) are referred to as "<u>Disclosable Interests</u>"); *provided*, *however*, that Disclosable Interests shall not include any such disclosures with respect to the ordinary course business activities of any broker, dealer, commercial bank, trust company or other nominee who is a Proposing Person solely as a result of being the stockholder directed to prepare and submit the notice required by these Bylaws on behalf of a beneficial owner; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) As to each item of business that the stockholder proposes to bring before the annual meeting, (A) a brief description of the business desired to be brought before the annual meeting, the reasons for conducting such business at the annual meeting and any material interest in such business of each Proposing Person, (B) the text of the proposal or business (including the text of any resolutions proposed for consideration and in the event that such business includes a proposal to amend the Bylaws or the Certificate of Incorporation, the language of the proposed amendment), (C) a reasonably detailed description of all agreements, arrangements and understandings (x) between or among any of the Proposing Persons or (y) between or among any Proposing Person and any other record or beneficial holder(s) or persons(s) who have a right to acquire beneficial ownership at any time in the future of the shares of any class or series of capital stock of the Corporation <u>or</u> any other person or entity (including their names) in connection with the proposal of such business by such stockholder, and (D) any other information relating to such item of business that would be required to be disclosed in a proxy statement or other filing required to be made in connection with solicitations of proxies in support of the business proposed to be brought before the meeting pursuant to Section 14(a) of the Exchange Act; *provided*, *however*, that the disclosures required by this paragraph (iii) shall not include any disclosures with respect to any broker, dealer, commercial bank, trust company or other nominee who is a Proposing Person solely as a result of being the stockholder directed to prepare and submit the notice required by these Bylaws on behalf of a beneficial owner.

For purposes of this Section 2.4, the term "<u>Proposing Person</u>*"* shall mean (i) the stockholder providing the notice of business proposed to be brought before an annual meeting, (ii) the beneficial owner or beneficial owners, if different, on whose behalf the notice of the business proposed to be brought before the annual meeting is made, and (iii) any participant (as defined in paragraphs (a)(ii)-(vi) of Instruction 3 to Item 4 of Schedule 14A) with such stockholder in such solicitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Board may request that any Proposing Person furnish such additional information as may be reasonably required by the Board. Such Proposing Person shall provide such additional information within ten (10) days after it has been requested by the Board.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) A Proposing Person shall update and supplement its notice to the Corporation of its intent to propose business at an annual meeting, if necessary, so that the information provided or required to be provided in such notice pursuant to this Section 2.4 shall be true and correct as of the record date for stockholders entitled to vote at the meeting and as of the date that is ten (10) business days prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to, or mailed and received by, the Secretary of the Corporation at the principal executive offices of the Corporation (A) not later than five (5) business days after the record date for stockholders entitled to vote at the meeting (in the case of the update and supplement required to be made as of such record date), and (B) not later than eight (8) business days prior to the date for the meeting or, if practicable, any adjournment or postponement thereof (and, if not practicable, on the first practicable date prior to the date to which the meeting has been adjourned or postponed) (in the case of the update and supplement required to be made as of ten (10) business days prior to the meeting or any adjournment or postponement thereof). For the avoidance of doubt, the obligation to update and supplement as set forth in this paragraph or any other Section of these Bylaws shall not limit the Corporation's rights with respect to any deficiencies in any notice provided by a stockholder, extend any applicable deadlines hereunder or enable or be deemed to permit a stockholder who has previously submitted notice hereunder to amend or update any proposal or to submit any new proposal, including by changing or adding matters, business or resolutions proposed to be brought before a meeting of the stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything in these Bylaws to the contrary, no business shall be conducted at an annual meeting that is not properly brought before the meeting in accordance with this Section 2.4. The presiding person of the meeting (or, in advance of any meeting of stockholders, the Board or an authorized committee thereof) shall, if the facts warrant, determine that the business was not properly brought before the meeting in accordance with this Section 2.4, and if such presiding person should so determine, such presiding person shall so declare to the meeting and any such business not properly brought before the meeting shall not be transacted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) This Section 2.4 is expressly intended to apply to any business proposed to be brought before an annual meeting of stockholders other than any proposal made in accordance with Rule 14a-8 under the Exchange Act and included in the Corporation's proxy statement. In addition to the requirements of this Section 2.4 with respect to any business proposed to be brought before an annual meeting, each Proposing Person shall comply with all applicable requirements of the Exchange Act with respect to any such business. Nothing in this Section 2.4 shall be deemed to affect the rights of stockholders to request inclusion of proposals in the Corporation's proxy statement pursuant to Rule 14a-8 under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) For purposes of these Bylaws, "<u>public disclosure</u>" shall mean disclosure in a press release reported by a national news service or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Sections 13, 14 or 15(d) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Advance Notice of Nominations for Election to the Board</u> <u>at a Meeting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Nominations of any person for election to the Board at an annual meeting or at a special meeting (but only if the election of directors is a matter specified in the notice of meeting given by or at the direction of the person calling such special meeting) may be made at such meeting only (i) by or at the direction of the Board, including by any committee or persons authorized to do so by the Board or these bylaws, or (ii) by a stockholder present in person who (A) was a record owner of shares of capital stock of the Corporation both at the time of giving the notice provided for in this Section 2.5 and at the time of the meeting, (B) is entitled to vote at the meeting, and (C) has complied with this Section 2.5 and Section 2.6 as to such notice and nomination. The foregoing clause (ii) shall be the exclusive means for a stockholder to make any nomination of a person or persons for election to the Board at an annual meeting or special meeting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Without qualification, for a stockholder to make any nomination of a person or persons for election to the Board at an annual meeting, the stockholder must (1) provide Timely Notice (as defined in Section 2.4) thereof in writing and in proper form to the Secretary of the Corporation, (2) provide the information, agreements and questionnaires with respect to each Nominating Person (as defined below) and its candidate for nomination as required to be set forth by this Section 2.5 and Section 2.6 and (3) provide any updates or supplements to such notice at the times and in the forms required by this Section 2.5 and Section 2.6 *.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without qualification, if the election of directors is a matter specified in the notice of meeting given by or at the direction of the person calling a special meeting, then for a stockholder to make any nomination of a person or persons for election to the Board at a special meeting, the stockholder must (A) provide timely notice thereof in writing and in proper form to the Secretary of the Corporation at the principal executive offices of the Corporation, (B) provide the information with respect to each Nominating Person and its candidate for nomination as required by this Section 2.5 and Section 2.6 and (C) provide any updates or supplements to such notice at the times and in the forms required by this Section 2.5. To be timely, a stockholder's notice for nominations to be made at a special meeting must be delivered to, or mailed and received at, the principal executive offices of the Corporation not earlier than the one hundred twentieth (120<sup>th</sup>) day prior to such special meeting and not later than the ninetieth (90<sup>th</sup>) day prior to such special meeting or, if later, the tenth (10<sup>th</sup>) day following the day on which public disclosure (as defined in Section **2.4**) of the date of such special meeting was first made (such notice within such time periods, "<u>Special Meeting Timely Notice</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In no event shall any adjournment or postponement of an annual meeting or special meeting or the announcement thereof commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In no event may a Nominating Person deliver a notice of nomination, as applicable, with respect to a greater number of director candidates than are subject to election by stockholders at the applicable meeting. If the Corporation shall, subsequent to such notice, increase the number of directors subject to election at the meeting, such notice as to any additional nominees shall be due on the later of (i) the conclusion of the time period for Timely Notice or Special Meeting Timely Notice, as applicable, or (ii) the tenth day following the date of public disclosure (as defined in Section 2.4) of such increase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To be in proper form for purposes of this Section 2.5, a stockholder's notice to the Secretary of the Corporation shall set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As to each Nominating Person, the Stockholder Information (as defined in Section 2.4(c)(i), except that for purposes of this Section 2.5 the term "Nominating Person" shall be substituted for the term "Proposing Person" in all places it appears in Section 2.4(c)(i));

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) As to each Nominating Person, any Disclosable Interests (as defined in Section 2.4(c)(ii), except that for purposes of this Section 2.5 the term "Nominating Person" shall be substituted for the term "Proposing Person" in all places it appears in Section 2.4(c)(ii) and the disclosure with respect to the business to be brought before the meeting in Section 2.4(c)(ii) shall be made with respect to the nomination proposed to be made at the meeting); and provided that, in lieu of including the information set forth in Section 2.4(c)(ii)(G), the Nominating Person's notice for purposes of this Section 2.5 shall include a representation as to whether the Nominating Person intends or is part of a group that intends to deliver a proxy statement and solicit the holders of shares representing at least 67% of the voting power of shares entitled to vote on the election of directors in support of director nominees other than the Corporation's nominees in accordance with Rule 14a-19 promulgated under the Exchange Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) As to each candidate whom a Nominating Person proposes to nominate for election as a director, (A) all information with respect to such candidate for nomination that would be required to be set forth in a stockholder's notice pursuant to this Section 2.5 and Section 2.6 if such candidate for nomination were a Nominating Person, (B) relating to such candidate for nomination that is required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of directors in a contested election pursuant to Section 14(a) under the Exchange Act (including such candidate's written consent to being named in a proxy statement and accompanying proxy card relating to the Corporation's next meeting of stockholders at which directors are to be elected and to serving as a director for a full term if elected), (C) a description of any direct or indirect material interest in any material contract or agreement between or among any Nominating Person, on the one hand, and each candidate for nomination or their respective associates (as defined in Rule 14a-1(a) promulgated under the Exchange Act) or any other participants (as defined in paragraphs (a)(ii)-(vi) of Instruction 3 to Item 4 of Schedule 14A) in such solicitation, on the other hand, including, without limitation, all information that would be required to be disclosed pursuant to Item 404 under Regulation S-K if such Nominating Person were the "registrant" for purposes of such rule and the candidate for nomination were a director or executive officer of such registrant, and (D) a completed and signed questionnaire, representation and agreement as provided in Section 2.6(a).

For purposes of this Section 2.5, the term "<u>Nominating Person</u>" shall mean (i) the stockholder providing the notice of the nomination proposed to be made at the meeting, (ii) the beneficial owner or beneficial owners, if different, on whose behalf the notice of the nomination proposed to be made at the meeting is made, and (iii) any participant (as defined in paragraphs (a)(ii)-(vi) of Instruction 3 to Item 4 of Schedule 14A) with such stockholder in such solicitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Board may request that any Nominating Person furnish such additional information as may be reasonably required by the Board. Such Nominating Person shall provide such additional information within ten (10) days after it has been requested by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) A stockholder providing notice of any nomination proposed to be made at a meeting shall further update and supplement such notice or the materials delivered pursuant to this Section 2.5, as applicable, if necessary, so that the information provided or required to be provided in such notice pursuant to this Section 2.5 shall be true and correct as of the record date for stockholders entitled to vote at the meeting and as of the date that is ten (10) business days prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to, or mailed and received by, the Secretary of the Corporation at the

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principal executive offices of the Corporation not later than five (5) business days after the record date for stockholders entitled to vote at the meeting (in the case of the update and supplement required to be made as of such record date), and not later than eight (8) business days prior to the date for the meeting or, if practicable, any adjournment or postponement thereof (and, if not practicable, on the first practicable date prior to the date to which the meeting has been adjourned or postponed) (in the case of the update and supplement required to be made as of ten (10) business days prior to the meeting or any adjournment or postponement thereof). For the avoidance of doubt, the obligation to update and supplement as set forth in this paragraph or any other Section of these Bylaws shall not limit the Corporation's rights with respect to any deficiencies in any notice provided by a stockholder, extend any applicable deadlines hereunder or enable or be deemed to permit a stockholder who has previously submitted notice hereunder to amend or update any nomination, including by changing or adding nominees, or to submit any new nomination, or submit any new proposal, matters, business or resolutions proposed to be brought before a meeting of the stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In addition to the requirements of this Section 2.5 with respect to any nomination proposed to be made at a meeting, each Nominating Person shall comply with all applicable requirements of the Exchange Act with respect to any such nominations. Notwithstanding the foregoing provisions of this Section 2.5, unless otherwise required by law, (i) no Nominating Person shall solicit proxies in support of director nominees other than the Corporation's nominees unless such Nominating Person has, or is part of a group that has, complied with Rule 14a-19 promulgated under the Exchange Act in connection with the solicitation of such proxies, including the provision to the Corporation of notices required thereunder, in accordance with the time frames required in this Section 2.5 or by Rule 14a-19 promulgated under the Exchange Act, as applicable, and (ii) if (1) any Nominating Person provides notice in accordance with Rule 14a-19(b) promulgated under the Exchange Act and (2) (x) such notice in accordance with Rule 14a-19(b) is not provided within the time period for Timely Notice or Special Meeting Timely Notice, as applicable, (y) such Nominating Person subsequently fails to comply with the requirements of Rule 14a-19(a)(2) or Rule 14a-19(a)(3) promulgated under the Exchange Act or (z) such Nominating Person fails to timely provide reasonable evidence sufficient to satisfy the Corporation that such Nominating Person has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act in accordance with the following sentence, then the nomination of such Nominating Person's proposed nominees shall be disregarded, notwithstanding that each such nominee is included as a nominee in the Corporation's proxy statement, notice of meeting or other proxy materials for any meeting of stockholders (or any supplement thereto) and notwithstanding that proxies or votes in respect of the election of such proposed nominees may have been received by the Corporation (which proxies and votes shall be disregarded). If any Nominating Person provides notice in accordance with Rule 14a-19(b) promulgated under the Exchange Act, such Nominating Person shall deliver to the Corporation, no later than seven (7) business days prior to the applicable meeting, reasonable evidence that it has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Additional Requirements for Valid Nomination of Candidates to Serve as Director and, if Elected, to be Seated as Directors</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To be eligible to be a candidate for election as a director of the Corporation at an annual or special meeting, a candidate must be nominated in the manner prescribed in Section 2.5 and the candidate for nomination, whether nominated by the Board or by a stockholder of record, must have previously delivered, to the Secretary at the principal executive offices of the Corporation, (i) a completed written questionnaire (in the form provided by the Corporation within ten (10) days upon written request of any stockholder of record therefor) with respect to the background, qualifications, stock ownership and independence of such proposed nominee and (ii) a written representation and agreement (in the form provided by the Corporation within ten (10) days upon written request of any stockholder of record therefor) that such candidate for nomination (A) is

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not and, if elected as a director during their term of office, will not become a party to (1) any agreement, arrangement or understanding with, and has not given and will not give any commitment or assurance to, any person or entity as to how such proposed nominee, if elected as a director of the Corporation, will act or vote on any issue or question (a "<u>Voting Commitment</u>") or (2) any Voting Commitment that could limit or interfere with such proposed nominee's ability to comply, if elected as a director of the Corporation, with such proposed nominee's fiduciary duties under applicable law, (B) is not, and will not become a party to, any agreement, arrangement or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation or reimbursement for service as a director of the Corporation that has not been disclosed therein, (C) if elected as a director of the Corporation, will comply with all applicable corporate governance, conflict of interest, confidentiality, stock ownership and trading and other policies and guidelines of the Corporation applicable to directors and in effect during such person's term in office as a director (and, if requested by any candidate for nomination, the Secretary of the Corporation shall provide to such candidate for nomination all such policies and guidelines then in effect), and (D) if elected as a director of the Corporation, intends to serve the entire term until the next meeting at which such candidate would face re-election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board may also require any proposed candidate for nomination as a director to furnish such other information related to such candidate's eligibility or qualification to serve as a director as may reasonably be requested by the Board in writing prior to the meeting of stockholders at which such candidate's nomination is to be acted upon. Without limiting the generality of the foregoing, the Board may request such other information in order for the Board to determine the eligibility of such candidate for nomination to be an independent director of the Corporation or to comply with the director qualification standards and additional selection criteria in accordance with the Corporation's Corporate Governance Guidelines. Such other information shall be delivered to, or mailed and received by, the Secretary at the principal executive offices of the Corporation not later than five (5) business days after the request by the Board has been delivered to, or mailed and received by, the Nominating Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A candidate for nomination as a director shall further update and supplement the materials delivered pursuant to this Section 2.6, if necessary, so that the information provided or required to be provided pursuant to this Section 2.6 shall be true and correct as of the record date for stockholders entitled to vote at the meeting and as of the date that is ten (10) business days prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to, or mailed and received by, the Secretary of the Corporation at the principal executive offices of the Corporation not later than five (5) business days after the record date for stockholders entitled to vote at the meeting (in the case of the update and supplement required to be made as of such record date), and not later than eight (8) business days prior to the date for the meeting or, if practicable, any adjournment or postponement thereof (and, if not practicable, on the first practicable date prior to the date to which the meeting has been adjourned or postponed) (in the case of the update and supplement required to be made as of ten (10) business days prior to the meeting or any adjournment or postponement thereof). For the avoidance of doubt, the obligation to update and supplement as set forth in this paragraph or any other Section of these Bylaws shall not limit the Corporation's rights with respect to any deficiencies in any notice provided by a stockholder, extend any applicable deadlines hereunder or enable or be deemed to permit a stockholder who has previously submitted notice hereunder to amend or update any nomination or to submit any new proposal, including by changing or adding nominees, matters, business or resolutions proposed to be brought before a meeting of the stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No candidate shall be eligible for nomination as a director of the Corporation unless such candidate for nomination and the Nominating Person seeking to place such candidate's name in nomination has complied with Section 2.5 and this Section 2.6**,** as applicable. The presiding officer at the meeting shall, if the facts warrant, determine that a nomination was not properly made in accordance with Section 2.5 and this Section 2.6, and if he or she should so determine, he or she shall so declare such determination to the meeting, the defective nomination shall be disregarded and any ballots cast for the candidate in question (but in the case of any form of ballot listing other qualified nominees, only the ballots cast for the nominee in question) shall be void and of no force or effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything in these Bylaws to the contrary, no candidate for nomination shall be eligible to be seated as a director of the Corporation unless nominated in accordance with Section 2.5 and this Section 2.6 and elected as a director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Notice of Stockholders</u><u>'</u> <u>Meetings</u>.

Unless otherwise provided by law, the Certificate of Incorporation or these bylaws, the notice of any meeting of stockholders shall be sent or otherwise given in accordance with Section 8.1 not less than ten (10) nor more than sixty (60) days before the date of the meeting to each stockholder entitled to vote at such meeting. The notice shall specify the place, if any, date and time of the meeting, the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting, and, in the case of a special meeting of stockholders, the purpose or purposes for which such meeting is called.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Quorum</u>.

Unless otherwise provided by law, the rules of any stock exchange upon which the Corporation's securities are listed, the Certificate of Incorporation or these bylaws, the holders of a majority in voting power of the stock issued and outstanding and entitled to vote, present in person, or by remote communication, if applicable, or represented by proxy, shall constitute a quorum for the transaction of business at all meetings of stockholders. Notwithstanding the foregoing, where a separate vote by a class or series or classes or series is required, the holders of a majority in voting power of the outstanding shares of such class or series or classes or series, present in person, or by remote communication, if applicable, or represented by proxy, shall constitute a quorum entitled to take action with respect to the vote on that matter. A quorum, once established at a meeting, shall not be broken by the withdrawal of enough votes to leave less than a quorum. If, however, a quorum is not present or represented at any meeting of stockholders, then either (i) the person presiding over the meeting or (ii) a majority in voting power of the stockholders, present in person, or by remote communication, if applicable, or represented by proxy, and entitled to vote thereon shall have power to recess the meeting or adjourn the meeting from time to time in the manner provided in Section 2.9 until a quorum is present or represented. At any recessed or adjourned meeting at which a quorum is present or represented, any business may be transacted that might have been transacted at the meeting as originally noticed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>Adjourned Meeting; Notice</u>.

When a meeting is adjourned to another time or place, unless these bylaws otherwise require, notice need not be given of the adjourned meeting if the time, place, if any, thereof, and the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such adjourned meeting are announced at the meeting at which the adjournment is taken or are provided in any other manner permitted by the DGCL. At any adjourned meeting, the Corporation may transact any business which might have been transacted at the original meeting. If the adjournment is for more than thirty (30) days, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting. If after the adjournment a new record date for determination of stockholders entitled to vote is fixed for the adjourned meeting, the Board shall fix as the record date for determining stockholders entitled to notice of such adjourned meeting the same or an earlier date as that fixed for determination of stockholders entitled to vote at the adjourned meeting, and shall give notice of the adjourned meeting to each stockholder of record entitled to vote at such meeting as of the record date so fixed for notice of such adjourned meeting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <u>Conduct of Business</u>.

The date and time of the opening and the closing of the polls for each matter upon which the stockholders will vote at a meeting shall be announced at the meeting by the person presiding over the meeting. The Board may adopt by resolution such rules and regulations for the conduct of the meeting of stockholders as it shall deem appropriate. Except to the extent inconsistent with such rules and regulations as adopted by the Board, the person presiding over any meeting of stockholders shall have the right and authority to convene and (for any or no reason) to recess and/or adjourn the meeting, to prescribe such rules, regulations and procedures (which need not be in writing) and to do all such acts as, in the judgment of such presiding person, are appropriate for the proper conduct of the meeting. Such rules, regulations or procedures, whether adopted by the Board or prescribed by the person presiding over the meeting, may include, without limitation, the following: (i) the establishment of an agenda or order of business for the meeting; (ii) rules and procedures for maintaining order at the meeting and the safety of those present (including, without limitation, rules and procedures for removal of disruptive persons from the meeting); (iii) limitations on attendance at or participation in the meeting to stockholders entitled to vote at the meeting, their duly authorized and constituted proxies or such other persons as the person presiding over the meeting shall determine; (iv) restrictions on entry to the meeting after the time fixed for the commencement thereof; and (v) limitations on the time allotted to questions or comments by participants. The presiding person at any meeting of stockholders, in addition to making any other determinations that may be appropriate to the conduct of the meeting (including, without limitation, determinations with respect to the administration and/or interpretation of any of the rules, regulations or procedures of the meeting, whether adopted by the Board or prescribed by the person presiding over the meeting), shall, if the facts warrant, determine and declare to the meeting that a matter of business was not properly brought before the meeting and if such presiding person should so determine, such presiding person shall so declare to the meeting and any such matter or business not properly brought before the meeting shall not be transacted or considered. Unless and to the extent determined by the Board or the person presiding over the meeting, meetings of stockholders shall not be required to be held in accordance with the rules of parliamentary procedure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <u>Voting</u>.

Except as may be otherwise provided in the Certificate of Incorporation, these bylaws or the DGCL, each stockholder entitled to vote at any meeting of stockholders shall be entitled to one (1) vote for each share of capital stock held by such stockholder that has voting power upon the matter in question.

Except as otherwise provided by the Certificate of Incorporation, at all duly called or convened meetings of stockholders at which a quorum is present, for the election of directors, a plurality of the votes cast shall be sufficient to elect a director. Unless a different or minimum vote is required by the Certificate of Incorporation, these bylaws, the rules or regulations of any stock exchange applicable to the Corporation, or applicable law or pursuant to any regulation applicable to the Corporation or its securities, in which case such different or minimum vote shall be the applicable vote on the matter, each other matter presented to the stockholders at a duly called or convened meeting at which a quorum is present shall be decided by a majority of the votes cast (excluding abstentions and broker non-votes) on such matter.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 <u>Record Date for Stockholder Meetings and Other Purposes</u>.

In order that the Corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board, and which record date shall, unless otherwise required by law, not be more than sixty (60) days nor less than ten (10) days before the date of such meeting. If the Board so fixes a date, such date shall also be the record date for determining the stockholders entitled to vote at such meeting unless the Board determines, at the time it fixes such record date, that a later date on or before the date of the meeting shall be the date for making such determination. If no record date is fixed by the Board, the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be the close of business on the next day preceding the day on which notice is first given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board may fix a new record date for determination of stockholders entitled to vote at the adjourned meeting; and in such case shall also fix as the record date for stockholders entitled to notice of such adjourned meeting the same or an earlier date as that fixed for determination of stockholders entitled to vote in accordance herewith at the adjourned meeting.

In order that the Corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment or any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of capital stock, or for the purposes of any other lawful action, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted, and which record date shall be not more than sixty (60) days prior to such action. If no record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board adopts the resolution relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 <u>Proxies</u>.

Each stockholder entitled to vote at a meeting of stockholders may authorize another person or persons to act for such stockholder, in any manner provided under applicable law, by proxy authorized by an instrument in writing or by a transmission permitted by law, including Rule 14a-19 promulgated under the Securities Exchange Act of 1934, as amended, filed in accordance with the procedure established for the meeting, but no such proxy shall be voted or acted upon after three (3) years from its date, unless the proxy provides for a longer period. The revocability of a proxy that is coupled with an interest sufficient in law to support an irrevocable power and states on its face that it is irrevocable shall be governed by the provisions of Section 212 of the DGCL. A stockholder may revoke any proxy that is not irrevocable by attending the meeting and voting in person or by delivering to the Secretary of the Corporation a revocation of the proxy or a new proxy bearing a later date. A proxy may be in the form of an electronic transmission which sets forth or is submitted with information from which it can be determined that the transmission was authorized by the stockholder.

Any stockholder directly or indirectly soliciting proxies from other stockholders must use a proxy card color other than white, which shall be reserved for the exclusive use by the Board.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 <u>List of Stockholders Entitled to Vote</u>.

The Corporation shall prepare, no later than the tenth (10<sup>th</sup>) day before each meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting (provided, however, that if the record date for determining the stockholders entitled to vote is less than ten (10) days before the date of the meeting, the list shall reflect the stockholders entitled to vote as of the tenth day before the meeting date), arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. The Corporation shall not be required to include electronic mail addresses or other electronic contact information on such list. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting for a period of ten (10) days ending on the day before the meeting date: (i) on a reasonably accessible electronic network, provided that the information required to gain access to such list is provided with the notice of the meeting, or (ii) during ordinary business hours, at the Corporation's principal executive office. In the event that the Corporation determines to make the list available on an electronic network, the Corporation may take reasonable steps to ensure that such information is available only to stockholders of the Corporation. Such list shall presumptively determine the identity of the stockholders entitled to vote at the meeting and the number of shares held by each of them. Except as otherwise provided by law, the stock ledger shall be the only evidence as to who are the stockholders entitled to examine the list of stockholders required by this Section 2.14 or to vote in person or by proxy at any meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 <u>Inspectors of Election</u>.

Before any meeting of stockholders, the Corporation shall appoint an inspector or inspectors of election to act at the meeting or its adjournment and make a written report thereof. The Corporation may designate one or more persons as alternate inspectors to replace any inspector who fails to act. If any person appointed as inspector or any alternate fails to appear or fails or refuses to act, then the person presiding over the meeting shall appoint a person to fill that vacancy.

Such inspectors shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) determine the number of shares outstanding and the voting power of each, the number of shares represented at the meeting and the validity of any proxies and ballots;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) count all votes or ballots;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) count and tabulate all votes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) determine and retain for a reasonable period a record of the disposition of any challenges made to any determination by the inspector(s); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) certify its or their determination of the number of shares represented at the meeting and its or their count of all votes and ballots.

Each inspector, before entering upon the discharge of the duties of inspector, shall take and sign an oath faithfully to execute the duties of inspection with strict impartiality and according to the best of such inspector's ability. Any report or certificate made by the inspectors of election is prima facie evidence of the facts stated therein. The inspectors of election may appoint such persons to assist them in performing their duties as they determine.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 <u>Delivery to the Corporation.</u>

Whenever this Article II requires one or more persons (including a record or beneficial owner of stock) to deliver a document or information to the Corporation or any officer, employee or agent thereof (including any notice, request, questionnaire, revocation, representation or other document or agreement) except as otherwise requested or consented to by the Corporation, such document or information shall be in writing exclusively (and not in an electronic transmission) and shall be delivered exclusively by hand (including, without limitation, overnight courier service) or by certified or registered mail, return receipt requested, and the Corporation shall not be required to accept delivery of any document not in such written form or so delivered. For the avoidance of doubt, the Corporation expressly opts out of Section 116 of the DGCL with respect to the delivery of information and documents (other than a document authorizing another person to act for a stockholder by proxy at a meeting of stockholders pursuant to Section 212 of the DGCL) to the Corporation required by this Article II.

**Article III - Directors** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Powers</u>.

Except as otherwise provided by the Certificate of Incorporation or the DGCL, the business and affairs of the Corporation shall be managed by or under the direction of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Number of Directors</u>.

Subject to the Certificate of Incorporation, the total number of directors constituting the Board shall be determined from time to time by resolution of the Board. No reduction of the authorized number of directors shall have the effect of removing any director before that director's term of office expires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Election, Qualification and Term of Office of Directors</u>.

Except as provided in Section 3.4, and subject to the Certificate of Incorporation, each director, including a director elected to fill a vacancy or newly created directorship, shall hold office until the expiration of the term of the class, if any, for which elected and until such director's successor is elected and qualified or until such director's earlier death, resignation, disqualification or removal. Directors need not be stockholders. The Certificate of Incorporation or these bylaws may prescribe qualifications for directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Resignation and Vacancies</u>.

Any director may resign at any time upon notice given in writing or by electronic transmission to the Corporation. The resignation shall take effect at the time specified therein or upon the happening of an event specified therein, and if no time or event is specified, at the time of its receipt. The acceptance of a resignation shall not be necessary to make it effective unless otherwise expressly provided in the resignation.When one or more directors so resigns and the resignation is effective at a future date or upon the happening of an event to occur on a future date, a majority of the directors then in office, including those who have so resigned, shall have power to fill such vacancy or vacancies, the vote thereon to take effect when such resignation or resignations shall become effective, and each director so chosen shall hold office as provided in Section 3.3.

Unless otherwise provided in the Certificate of Incorporation or these bylaws, vacancies resulting from the death, resignation, disqualification or removal of any director, and newly created directorships resulting from any increase in the authorized number of directors shall be filled only by a majority of the directors then in office, although less than a quorum, or by a sole remaining director.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Place of Meetings; Meetings by</u> <u>Remote Communication</u>.

The Board may hold meetings, both regular and special, either within or outside the State of Delaware.

Unless otherwise restricted by the Certificate of Incorporation or these bylaws, members of the Board, or any committee designated by the Board, may participate in a meeting of the Board, or any committee, by means of telephone, video, or other remote communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting pursuant to this bylaw shall constitute presence in person at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Regular Meetings</u>.

Regular meetings of the Board may be held within or outside the State of Delaware and at such time and at such place as which has been designated by the Board and publicized among all directors, either orally or in writing, by telephone, including a voice-messaging system or other system designed to record and communicate messages, facsimile, telegraph or telex, or by electronic mail or other means of electronic transmission. No further notice shall be required for regular meetings of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <u>Special Meetings; Notice</u>.

Special meetings of the Board for any purpose or purposes may be called at any time by the chairperson of the Board, the Chief Executive Officer, the President, the Secretary of the Corporation or a majority of the total number of directors constituting the Board.

Notice of the time and place, if any, of special meetings shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) delivered personally by hand, by courier or by telephone;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) sent by United States first-class mail, postage prepaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) sent by facsimile or electronic mail; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) sent by other means of electronic transmission,

directed to each director at that director's address, telephone number, facsimile number or electronic mail address, or other address for electronic transmission, as the case may be, as shown on the Corporation's records.

If the notice is (i) delivered personally by hand, by courier or by telephone, (ii) sent by facsimile or electronic mail, or (iii) sent by other means of electronic transmission, it shall be delivered or sent at least twenty-four (24) hours before the time of the holding of the meeting. If the notice is sent by U.S. mail, it shall be deposited in the U.S. mail at least four (4) days before the time of the holding of the meeting. The notice need not specify the place, if any, of the meeting (if the meeting is to be held at the Corporation's principal executive office) nor the purpose of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <u>Quorum</u>.

At all meetings of the Board, unless otherwise provided by the Certificate of Incorporation, a majority of the total number of directors shall constitute a quorum for the transaction of business. The vote of a majority of the directors present at any meeting at which a quorum is present shall be the act of the Board, except as may be otherwise specifically provided by statute, the Certificate of Incorporation or these bylaws. If a quorum is not present at any meeting of the Board, then the directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <u>Board Action without a Meeting</u>.

Unless otherwise restricted by the Certificate of Incorporation or these bylaws, any action required or permitted to be taken at any meeting of the Board, or of any committee thereof, may be taken without a meeting if all members of the Board or committee, as the case may be, consent thereto in writing or by electronic transmission. After an action is taken, the consent or consents relating thereto shall be filed with the minutes of the proceedings of the Board, or the committee thereof, in the same paper or electronic form as the minutes are maintained. Such action by written consent or consent by electronic transmission shall have the same force and effect as a unanimous vote of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <u>Fees and Compensation of Directors</u>.

Unless otherwise restricted by the Certificate of Incorporation or these bylaws, the Board shall have the authority to fix the compensation, including fees and reimbursement of expenses, of directors for services to the Corporation in any capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 <u>Reliance on Books and Records.</u>

A member of the Board, or a member of any committee designated by the Board shall, in the performance of such person's duties, be fully protected in relying in good faith upon records of the Corporation and upon such information, opinions, reports or statements presented to the Corporation by any of the Corporation's officers or employees, or committees of the Board, or by any other person as to matters the member reasonably believes are within such other person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Corporation.

**Article IV - Committees** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Committees of Directors</u>.

The Board may designate one (1) or more committees, each committee to consist, of one (1) or more of the directors of the Corporation. The Board may designate one (1) or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent provided in the resolution of the Board or in these bylaws, shall have and may exercise all the powers and authority of the Board in the management of the business and affairs of the Corporation, and may authorize the seal of the Corporation to be affixed to all papers that may require it; but no such committee shall have the power or authority to (i) approve or adopt, or recommend to the stockholders, any action or matter expressly required by the DGCL to be submitted to stockholders for approval, or (ii) adopt, amend or repeal any bylaw of the Corporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Committee Minutes</u>.

Each committee shall keep regular minutes of its meetings and report the same to the Board when required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Meetings and Actions of Committees</u>.

Meetings and actions of committees shall be governed by, and held and taken in accordance with, the provisions of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Section 3.5 (place of meetings; meetings by remote communications);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Section 3.6 (regular meetings);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Section 3.7 (special meetings; notice);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Section 3.9 (board action without a meeting);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Section 3.11 (reliance on books and records); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Section 7.13 (waiver of notice),

with such changes in the context of those bylaws as are necessary to substitute the committee and its members for the Board and its members. *However*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the time of regular meetings of committees may be determined either by resolution of the Board or by resolution of the committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) special meetings of committees may also be called by resolution of the Board or the chairperson of the applicable committee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Board may adopt rules for the governance of any committee to override the provisions that would otherwise apply to the committee pursuant to this Section 4.3, provided that such rules do not violate the provisions of the Certificate of Incorporation or applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Subcommittees.</u>

Unless otherwise provided in the Certificate of Incorporation, these bylaws or the resolutions of the Board designating the committee, a committee may create one (1) or more subcommittees, each subcommittee to consist of one (1) or more members of the committee, and delegate to a subcommittee any or all of the powers and authority of the committee. Except as otherwise expressly provided in these bylaws or by resolution of the Board designating such committee, every reference to a committee or to a member of a committee in these bylaws shall apply to any subcommittee or member of a subcommittee *mutatis mutandis*.

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**Article V - Officers** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Officers</u>.

The officers of the Corporation shall include a Chief Executive Officer, a President and a Secretary. The Corporation may also have, at the discretion of the Board, a Chairperson of the Board, a Vice Chairperson of the Board, a Chief Financial Officer, a Treasurer, one (1) or more Vice Presidents, one (1) or more Assistant Vice Presidents, one (1) or more Assistant Treasurers, one (1) or more Assistant Secretaries, and any such other officers as may be appointed in accordance with the provisions of these bylaws. Any number of offices may be held by the same person. No officer need be a stockholder or director of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Appointment of Officers</u>.

The Board shall appoint the officers of the Corporation, except such officers as may be appointed in accordance with the provisions of Section 5.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Subordinate Officers</u>.

The Board may appoint, or empower the Chief Executive Officer or, in the absence of a Chief Executive Officer, the President, to appoint, such other officers and agents as the business of the Corporation may require. Each of such officers and agents shall hold office for such period, have such authority, and perform such duties as are provided in these bylaws or as the Board may from time to time determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Removal and Resignation of Officers</u>.

Subject to the rights, if any, of an officer under any contract of employment, any officer may be removed, either with or without cause, by the Board or, except in the case of an officer chosen by the Board, by any officer upon whom such power of removal may be conferred by the Board.

Any officer may resign at any time by giving written notice to the Corporation. Any resignation shall take effect at the date of the receipt of that notice or at any later time specified in that notice. Unless otherwise specified in the notice of resignation, the acceptance of the resignation shall not be necessary to make it effective. Any resignation is without prejudice to the rights, if any, of the Corporation under any contract to which the officer is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Vacancies in Offices</u>.

Any vacancy occurring in any office of the Corporation shall be filled by the Board or as provided in Section 5.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Representation of Shares of Other Corporations</u>.

The Chairperson of the Board, the Chief Executive Officer, or the President of this Corporation, or any other person authorized by the Board, the Chief Executive Officer or the President, is authorized to vote, represent and exercise on behalf of this Corporation all rights incident to any and all shares or voting securities of any other corporation or other person standing in the name of this Corporation. The authority granted herein may be exercised either by such person directly or by any other person authorized to do so by proxy or power of attorney duly executed by such person having the authority.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Authority and Duties of Officers</u>.

All officers of the Corporation shall respectively have such authority and perform such duties in the management of the business of the Corporation as may be provided herein or designated from time to time by the Board and, to the extent not so provided, as generally pertain to their respective offices, subject to the control of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Compensation.</u>

The compensation of the officers of the Corporation for their services as such shall be fixed from time to time by or at the direction of the Board. An officer of the Corporation shall not be prevented from receiving compensation by reason of the fact that he or she is also a director of the Corporation.

**Article VI - Records** 

A stock ledger consisting of one or more records in which the names of all of the Corporation's stockholders of record, the address and number of shares registered in the name of each such stockholder, and all issuances and transfers of stock of the corporation are recorded in accordance with Section 224 of the DGCL shall be administered by or on behalf of the Corporation. Any records administered by or on behalf of the Corporation in the regular course of its business, including its stock ledger, books of account, and minute books, may be kept on, or by means of, or be in the form of, any information storage device, or method, or one or more electronic networks or databases (including one or more distributed electronic networks or databases), provided that the records so kept can be converted into clearly legible paper form within a reasonable time and, with respect to the stock ledger, that the records so kept (i) can be used to prepare the list of stockholders specified in Sections 219 and 220 of the DGCL, (ii) record the information specified in Sections 156, 159, 217(a) and 218 of the DGCL, and (iii) record transfers of stock as governed by Article 8 of the Uniform Commercial Code as adopted in the State of Delaware.

**Article VII - General Matters** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Execution of Corporate Contracts and Instruments</u>.

The Board, except as otherwise provided in these bylaws, may authorize any officer or officers, or agent or agents, to enter into any contract or execute any instrument in the name of and on behalf of the Corporation; such authority may be general or confined to specific instances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Stock Certificates</u>.

The shares of the Corporation shall be represented by certificates, provided that the Board by resolution may provide that some or all of the shares of any class or series of stock of the Corporation shall be uncertificated. Certificates for the shares of stock, if any, shall be in such form as is consistent with the Certificate of Incorporation and applicable law. Every holder of stock represented by a certificate shall be entitled to have a certificate signed by, or in the name of the Corporation by, any two officers authorized to sign stock certificates representing the number of shares registered in certificate form. The Chairperson or Vice Chairperson of the Board, Chief Executive Officer, the President, Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Corporation shall be specifically authorized to sign stock certificates. Any or all of the signatures on the certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate has ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if he or she were such officer, transfer agent or registrar at the date of issue.

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The Corporation may issue the whole or any part of its shares as partly paid and subject to call for the remainder of the consideration to be paid therefor. Upon the face or back of each stock certificate issued to represent any such partly paid shares, or upon the books and records of the Corporation in the case of uncertificated partly paid shares, the total amount of the consideration to be paid therefor and the amount paid thereon shall be stated. Upon the declaration of any dividend on fully paid shares, the Corporation shall declare a dividend upon partly paid shares of the same class, but only upon the basis of the percentage of the consideration actually paid thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Special Designation of Certificates.</u>

If the Corporation is authorized to issue more than one class of stock or more than one series of any class, then the powers, the designations, the preferences and the relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights shall be set forth in full or summarized on the face or on the back of the certificate that the Corporation shall issue to represent such class or series of stock (or, in the case of uncertificated shares, set forth in a notice provided pursuant to Section 151 of the DGCL); provided, however, that except as otherwise provided in Section 202 of the DGCL, in lieu of the foregoing requirements, there may be set forth on the face or back of the certificate that the Corporation shall issue to represent such class or series of stock (or, in the case of any uncertificated shares, included in the aforementioned notice) a statement that the Corporation will furnish without charge to each stockholder who so requests the powers, the designations, the preferences and the relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Lost Certificates</u>.

Except as provided in this Section 7.4, no new certificates for shares shall be issued to replace a previously issued certificate unless the latter is surrendered to the Corporation and cancelled at the same time. The Corporation may issue a new certificate of stock or uncertificated shares in the place of any certificate theretofore issued by it, alleged to have been lost, stolen or destroyed, and the Corporation may require the owner of the lost, stolen or destroyed certificate, or such owner's legal representative, to give the Corporation a bond sufficient to indemnify it against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of such new certificate or uncertificated shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Shares Without Certificates</u>

The Corporation may adopt a system of issuance, recordation and transfer of its shares of stock by electronic or other means not involving the issuance of certificates, provided the use of such system by the Corporation is permitted in accordance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Construction; Definitions</u>.

Unless the context requires otherwise, the general provisions, rules of construction and definitions in the DGCL shall govern the construction of these bylaws. Without limiting the generality of this provision, the singular number includes the plural and the plural number includes the singular.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <u>Dividends</u>.

The Board, subject to any restrictions contained in either (i) the DGCL or (ii) the Certificate of Incorporation, may declare and pay dividends upon the shares of its capital stock. Dividends may be paid in cash, in property or in shares of the Corporation's capital stock.

The Board may set apart out of any of the funds of the Corporation available for dividends a reserve or reserves for any proper purpose and may abolish any such reserve. Such purposes shall include but not be limited to equalizing dividends, repairing or maintaining any property of the Corporation, and meeting contingencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <u>Fiscal Year</u>.

The fiscal year of the Corporation shall be fixed by resolution of the Board and may be changed by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 <u>Seal</u>.

The Corporation may adopt a corporate seal, which shall be adopted and which may be altered by the Board. The Corporation may use the corporate seal by causing it or a facsimile thereof to be impressed or affixed or in any other manner reproduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10 <u>Transfer of Stock</u>.

Shares of the Corporation shall be transferable in the manner prescribed by law and in these bylaws and subject to any transfer restrictions contained in the Certificate of Incorporation. Shares of stock of the Corporation shall be transferred on the books of the Corporation only by the holder of record thereof or by such holder's attorney duly authorized in writing, upon surrender to the Corporation of the certificate or certificates representing such shares endorsed by the appropriate person or persons (or by delivery of duly executed instructions with respect to uncertificated shares), with such evidence of the authenticity of such endorsement or execution, transfer, authorization and other matters as the Corporation may reasonably require, and accompanied by all necessary stock transfer stamps. No transfer of stock shall be valid as against the Corporation for any purpose until it shall have been entered in the stock records of the Corporation by an entry showing the names of the persons from and to whom it was transferred. The Corporation shall have power and authority to make such rules and regulations as it may deem necessary or proper concerning the issuance, transfer and registration of certificates for shares of stock of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11 <u>Stock Transfer Agreements</u>.

The Corporation shall have power to enter into and perform any agreement with any number of stockholders of any one or more classes or series of stock of the Corporation to restrict the transfer of shares of stock of the Corporation of any one or more classes owned by such stockholders in any manner not prohibited by the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.12 <u>Registered Stockholders</u>.

The Corporation:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall be entitled to recognize the exclusive right of a person registered on its books as the owner of shares to receive dividends and to vote as such owner; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of another person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.13 <u>Waiver of Notice</u>.

Whenever notice is required to be given under any provision of the DGCL, the Certificate of Incorporation or these bylaws, a written waiver, signed by the person entitled to notice, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time of the event for which notice is to be given, shall be deemed equivalent to notice. Attendance of a person at a meeting (in person or by remote communication) shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the stockholders need be specified in any written waiver of notice or any waiver by electronic transmission unless so required by the Certificate of Incorporation or these bylaws.

**Article VIII - Notice** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Delivery of Notice; Notice by Electronic Transmission</u>.

Without limiting the manner by which notice otherwise may be given effectively to stockholders, any notice to stockholders given by the Corporation under any provisions of the DGCL, the Certificate of Incorporation, or these bylaws may be given in writing directed to the stockholder's mailing address (or by electronic transmission directed to the stockholder's electronic mail address, as applicable) as it appears on the records of the Corporation and shall be given (1) if mailed, when the notice is deposited in the U.S. mail, postage prepaid, (2) if delivered by courier service, the earlier of when the notice is received or left at such stockholder's address or (3) if given by electronic mail, when directed to such stockholder's electronic mail address unless the stockholder has notified the Corporation in writing or by electronic transmission of an objection to receiving notice by electronic mail. A notice by electronic mail must include a prominent legend that the communication is an important notice regarding the Corporation.

Without limiting the manner by which notice otherwise may be given effectively to stockholders, any notice to stockholders given by the Corporation under any provision of the DGCL, the Certificate of Incorporation or these bylaws shall be effective if given by a form of electronic transmission consented to by the stockholder to whom the notice is given. Any such consent shall be revocable by the stockholder by written notice or electronic transmission to the Corporation. Notwithstanding the provisions of this paragraph, the Corporation may give a notice by electronic mail in accordance with the first paragraph of this section without obtaining the consent required by this paragraph.

Any notice given pursuant to the preceding paragraph shall be deemed given:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if by facsimile telecommunication, when directed to a number at which the stockholder has consented to receive
notice;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if by a posting on an electronic network together with separate notice to the stockholder of such specific
posting, upon the later of (A) such posting and (B) the giving of such separate notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if by any other form of electronic transmission, when directed to the stockholder.

Notwithstanding the foregoing, a notice may not be given by an electronic transmission from and after the time that (1) the Corporation is unable to deliver by such electronic transmission two (2) consecutive notices given by the Corporation and (2) such inability becomes known to the Secretary or an Assistant Secretary of the Corporation or to the transfer agent, or other person responsible for the giving of notice, provided, however, the inadvertent failure to discover such inability shall not invalidate any meeting or other action.

An affidavit of the Secretary or an Assistant Secretary of the Corporation or of the transfer agent or other agent of the Corporation that the notice has been given shall, in the absence of fraud, be prima facie evidence of the facts stated therein.

**Article IX - Indemnification** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Indemnification of Directors and Officers</u>.

The Corporation shall indemnify and hold harmless, to the fullest extent permitted by the DGCL as it presently exists or may hereafter be amended, any director or officer of the Corporation who was or is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (a "<u>Proceeding</u>") by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was a director or officer of the Corporation or, while serving as a director or officer of the Corporation, is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation or of a partnership (a "covered person"), joint venture, trust, enterprise or non-profit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including attorneys' fees, judgments, fines ERISA excise taxes or penalties and amounts paid in settlement) reasonably incurred by such person in connection with any such Proceeding. Notwithstanding the preceding sentence, except as otherwise provided in Section 9.4, the Corporation shall be required to indemnify a person in connection with a Proceeding initiated by such person only if the Proceeding was authorized in the specific case by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Indemnification of Others</u>.

The Corporation shall have the power to indemnify and hold harmless, to the fullest extent permitted by applicable law as it presently exists or may hereafter be amended, any employee or agent of the Corporation who was or is made or is threatened to be made a party or is otherwise involved in any Proceeding by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was an employee or agent of the Corporation or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, enterprise or non-profit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses reasonably incurred by such person in connection with any such Proceeding.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Prepayment of Expenses</u>.

The Corporation shall to the fullest extent not prohibited by applicable law pay the expenses (including attorneys' fees) incurred by any covered person, and may pay the expenses incurred by any employee or agent of the Corporation, in defending any Proceeding in advance of its final disposition; provided, however, that such payment of expenses in advance of the final disposition of the Proceeding shall be made only upon receipt of an undertaking by the person to repay all amounts advanced if it should be ultimately determined that the person is not entitled to be indemnified under this Article IX or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Determination; Claim</u>.

If a claim for indemnification (following the final disposition of such Proceeding) under this Article IX is not paid in full within sixty (60) days, or a claim for advancement of expenses under this Article IX is not paid in full within thirty (30) days, after a written claim therefor has been received by the Corporation the claimant may thereafter (but not before) file suit to recover the unpaid amount of such claim and, if successful in whole or in part, shall be entitled to be paid the expense of prosecuting such claim to the fullest extent permitted by law. In any such action the Corporation shall have the burden of proving that the claimant was not entitled to the requested indemnification or payment of expenses under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>Non-Exclusivity of Rights</u>.

The rights conferred on any person by this Article IX shall not be exclusive of any other rights which such person may have or hereafter acquire under any statute, provision of the Certificate of Incorporation, these bylaws, agreement, vote of stockholders or disinterested directors or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>Insurance</u>.

The Corporation may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust enterprise or non-profit entity against any liability asserted against him or her and incurred by him or her in any such capacity, or arising out of his or her status as such, whether or not the Corporation would have the power to indemnify him or her against such liability under the provisions of the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 <u>Other Indemnificatio</u><u>n</u>.

The Corporation's obligation, if any, to indemnify or advance expenses to any person who was or is serving at its request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, enterprise or non-profit entity shall be reduced by any amount such person may collect as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, enterprise or non-profit enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 <u>Continuation of Indemnification</u>.

The rights to indemnification and to prepayment of expenses provided by, or granted pursuant to, this Article IX shall continue notwithstanding that the person has ceased to be a director or officer of the Corporation and shall inure to the benefit of the estate, heirs, executors, administrators, legatees and distributees of such person.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 <u>Amendment or Repeal</u><u>; Interpretation</u>.

The provisions of this Article IX shall constitute a contract between the Corporation, on the one hand, and, on the other hand, each individual who serves or has served as a director or officer of the Corporation (whether before or after the adoption of these bylaws), in consideration of such person's performance of such services, and pursuant to this Article IX the Corporation intends to be legally bound to each such current or former director or officer of the Corporation. With respect to current and former directors and officers of the Corporation, the rights conferred under this Article IX are present contractual rights and such rights are fully vested, and shall be deemed to have vested fully, immediately upon adoption of these bylaws. With respect to any directors or officers of the Corporation who commence service following adoption of these bylaws, the rights conferred under this provision shall be present contractual rights and such rights shall fully vest, and be deemed to have vested fully, immediately upon such director or officer commencing service as a director or officer of the Corporation. Any repeal or modification of the foregoing provisions of this Article IX shall not adversely affect any right or protection (i) hereunder of any person in respect of any act or omission occurring prior to the time of such repeal or modification or (ii) under any agreement providing for indemnification or advancement of expenses to an officer or director of the Corporation in effect prior to the time of such repeal or modification.

Any reference to an officer of the Corporation in this Article IX shall be deemed to refer exclusively to the Chief Executive Officer, President, and Secretary, or other officer of the Corporation appointed by (x) the Board pursuant to Article V of these bylaws or (y) an officer to whom the Board has delegated the power to appoint officers pursuant to Article V of these bylaws, and any reference to an officer of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be deemed to refer exclusively to an officer appointed by the board of directors (or equivalent governing body) of such other entity pursuant to the certificate of incorporation and bylaws (or equivalent organizational documents) of such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise. The fact that any person who is or was an employee of the Corporation or an employee of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise has been given or has used the title of "Vice President" or any other title that could be construed to suggest or imply that such person is or may be an officer of the Corporation or of such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall not result in such person being constituted as, or being deemed to be, an officer of the Corporation or of such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise for purposes of this Article IX.

**Article X - Amendments** 

The Board is expressly empowered to adopt, amend or repeal the bylaws of the Corporation. The stockholders also shall have power to adopt, amend or repeal the bylaws of the Corporation; provided, however, that such action by stockholders shall require, in addition to any other vote required by the Certificate of Incorporation or applicable law, the affirmative vote of the holders of at least two-thirds of the voting power of all the then-outstanding shares of voting stock of the Corporation with the power to vote generally in an election of directors, voting together as a single class.

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**Article XI - Definitions** 

As used in these bylaws, unless the context otherwise requires, the following terms shall have the following meanings:

An "<u>electronic transmission</u>" means any form of communication, not directly involving the physical transmission of paper, including the use of, or participation in, one or more electronic networks or databases (including one or more distributed electronic networks or databases), that creates a record that may be retained, retrieved and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process.

An "<u>electronic mail</u>" means an electronic transmission directed to a unique electronic mail address (which electronic mail shall be deemed to include any files attached thereto and any information hyperlinked to a website if such electronic mail includes the contact information of an officer or agent of the Corporation who is available to assist with accessing such files and information).

An "<u>electronic mail address</u>" means a destination, commonly expressed as a string of characters, consisting of a unique user name or mailbox (commonly referred to as the "local part" of the address) and a reference to an internet domain (commonly referred to as the "domain part" of the address), whether or not displayed, to which electronic mail can be sent or delivered.

The term "<u>person</u>" means any individual, general partnership, limited partnership, limited liability company, corporation, trust, business trust, joint stock company, joint venture, unincorporated association, cooperative or association or any other legal entity or organization of whatever nature, and shall include any successor (by merger or otherwise) of such entity.

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**WHITEHAWK MINERALS CORP.** 

**Certificate of Amendment and Restatement of Bylaws** 

The undersigned hereby certifies that he is the duly elected, qualified, and acting Secretary of WhiteHawk Minerals Corp., a Delaware corporation (the "Corporation"), and that the foregoing bylaws were adopted by the Board of the Corporation on ______, 20______ to be effective as of ______, 20______.

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| |
|:---|
| Name: |
| Title: |

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## Exhibit 4.2

**Exhibit 4.2** 

***EXECUTION VERSION***

**WHITEHAWK INCOME CORPORATION** 

SENIOR SECURED FIRST LIEN NOTES DUE 2029

**$65,000,000 NOTE PURCHASE AGREEMENT** 

**DATED AS OF SEPTEMBER 17, 2024** 

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**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
| Article I | Article I | Article I |
| DEFINITIONS AND INTERPRETATION | DEFINITIONS AND INTERPRETATION | DEFINITIONS AND INTERPRETATION |
|  **Section 1.01.** | Terms Defined Above | 1 |
|  **Section 1.02.** | Definitions | 1 |
|  **Section 1.03.** | Accounting Terms | 37 |
|  **Section 1.04.** | Interpretation, etc | 37 |
|  **Section 1.05.** | Calculations of Total PDP PV-10 Value | 38 |
|  **Section 1.06.** | Free Cash Flow Distributions and Prepayments Spreadsheet | 40 |
| Article II | Article II | Article II |
| PURCHASE AND SALE OF NOTES | PURCHASE AND SALE OF NOTES | PURCHASE AND SALE OF NOTES |
|  **Section 2.01.** | Note Purchase | 41 |
|  **Section 2.02.** | The Notes; Purchases, Conversions and Continuations of Notes | 41 |
|  **Section 2.03.** | Requests for Notes | 41 |
|  **Section 2.04.** | Use of Proceeds | 42 |
|  **Section 2.05.** | Evidence of Debt; Register; Holders' Books and Records; Notes | 42 |
|  **Section 2.06.** | Interest; Fees | 42 |
|  **Section 2.07.** | Repayment of Notes | 43 |
|  **Section 2.08.** | Voluntary Prepayments | 43 |
|  **Section 2.09.** | Mandatory Prepayments | 43 |
|  **Section 2.10.** | Application of Payments | 47 |
|  **Section 2.11.** | General Provisions Regarding Payments | 47 |
|  **Section 2.12.** | Ratable Sharing | 49 |
|  **Section 2.13.** | Increased Costs | 49 |
|  **Section 2.14.** | Taxes; Withholding, etc. | 50 |
|  **Section 2.15.** | Alternate Rate of Interest | 53 |
|  **Section 2.16.** | Incremental Notes | 55 |
| Article III | Article III | Article III |
| CONDITIONS PRECEDENT | CONDITIONS PRECEDENT | CONDITIONS PRECEDENT |
|  **Section 3.01.** | Closing Date | 56 |
| Article IV | Article IV | Article IV |
| REPRESENTATIONS AND WARRANTIES | REPRESENTATIONS AND WARRANTIES | REPRESENTATIONS AND WARRANTIES |
|  **Section 4.01.** | Organization; Powers | 60 |
|  **Section 4.02.** | Authority; Enforceability | 60 |
|  **Section 4.03.** | Approvals; No Conflicts | 60 |
|  **Section 4.04.** | Financial Condition; No Material Adverse Effect | 61 |
|  **Section 4.05.** | Litigation | 61 |
|  **Section 4.06.** | Environmental Matters | 61 |
|  **Section 4.07.** | Compliance with Laws and Agreements; No Defaults, Event of Default | 62 |
|  **Section 4.08.** | Investment Company Act | 63 |
|  **Section 4.09.** | Taxes | 63 |
|  **Section 4.10.** | ERISA | 63 |
|  **Section 4.11.** | Disclosure; No Material Misstatements | 64 |
|  **Section 4.12.** | Insurance | 64 |

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| | | |
|:---|:---|:---|
|  **Section 4.13.** | Subsidiaries; Foreign Operations | 65 |
|  **Section 4.14.** | Properties; Titles, Etc. | 65 |
|  **Section 4.15.** | [Reserved] | 66 |
|  **Section 4.16.** | No Operations. | 66 |
|  **Section 4.17.** | [Reserved] | 66 |
|  **Section 4.18.** | Swap Agreements and Qualified ECP Guarantor | 66 |
|  **Section 4.19.** | Use of Proceeds | 66 |
|  **Section 4.20.** | Solvency | 66 |
|  **Section 4.21.** | Anti-Corruption Laws, Sanctions and USA PATRIOT Act | 66 |
|  **Section 4.22.** | Affected Financial Institutions | 66 |
|  **Section 4.23.** | Collateral Documents | 67 |
|  **Section 4.24.** | Senior Debt | 67 |
|  **Section 4.25.** | Private Offering | 67 |
| Article V | Article V | Article V |
| REPRESENTATIONS OF HOLDERS | REPRESENTATIONS OF HOLDERS | REPRESENTATIONS OF HOLDERS |
|  **Section 5.01.** | Organization and Standing | 67 |
|  **Section 5.02.** | Authorization; Enforceability | 67 |
|  **Section 5.03.** | Investment | 67 |
|  **Section 5.04.** | Accredited Investor | 68 |
|  **Section 5.05.** | No Resale or Repurchase | 68 |
|  **Section 5.06.** | Private Placement | 68 |
|  **Section 5.07.** | Knowledge and Experience | 68 |
|  **Section 5.08.** | No Materials | 68 |
|  **Section 5.09.** | Transfer Restrictions | 68 |
|  **Section 5.10.** | Offers and Sales Only in Certain Circumstances | 69 |
|  **Section 5.11.** | Subsequent Purchaser Notification | 69 |
| Article VI | Article VI | Article VI |
| AFFIRMATIVE COVENANTS | AFFIRMATIVE COVENANTS | AFFIRMATIVE COVENANTS |
|  **Section 6.01.** | Financial Statements; Other Information | 69 |
|  **Section 6.02.** | Notices of Material Events | 74 |
|  **Section 6.03.** | Existence; Conduct of Business | 74 |
|  **Section 6.04.** | Payment of Taxes | 74 |
|  **Section 6.05.** | [Reserved] | 75 |
|  **Section 6.06.** | Insurance | 75 |
|  **Section 6.07.** | Books and Records; Inspection Rights | 75 |
|  **Section 6.08.** | Compliance with Laws | 75 |
|  **Section 6.09.** | Environmental Matters | 75 |
|  **Section 6.10.** | Further Assurances | 76 |
|  **Section 6.11.** | Reserve Reports | 77 |
|  **Section 6.12.** | Title Information | 78 |
|  **Section 6.13.** | Collateral and Guaranty Agreements | 78 |
|  **Section 6.14.** | ERISA Compliance | 80 |
|  **Section 6.15.** | Commodity Exchange Act Keepwell Provisions | 80 |
|  **Section 6.16.** | Deposit Accounts and Securities Accounts | 80 |
|  **Section 6.17.** | Use of Proceeds | 80 |
|  **Section 6.18.** | Swap Agreements | 81 |
|  **Section 6.19.** | Post-Closing Covenant | 82 |

---

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| | | |
|:---|:---|:---|
| Article VII | Article VII | Article VII |
| NEGATIVE COVENANTS | NEGATIVE COVENANTS | NEGATIVE COVENANTS |
|  **Section 7.01.** | Financial Covenants | 82 |
|  **Section 7.02.** | Debt | 84 |
|  **Section 7.03.** | Liens | 84 |
|  **Section 7.04.** | Dividends and Distributions | 85 |
|  **Section 7.05.** | Investments and Advances | 86 |
|  **Section 7.06.** | Nature of Business; Wholly-Owned Subsidiaries; No International Operations | 87 |
|  **Section 7.07.** | ERISA Compliance | 88 |
|  **Section 7.08.** | Mergers, Etc. | 88 |
|  **Section 7.09.** | Sale of Properties and Termination of Swap Agreements | 88 |
|  **Section 7.10.** | Transactions with Affiliates | 90 |
|  **Section 7.11.** | Subsidiaries | 90 |
|  **Section 7.12.** | Negative Pledge Agreements; Dividend Restrictions | 90 |
|  **Section 7.13.** | Swap Agreements | 91 |
|  **Section 7.14.** | Designation and Conversion of Restricted and Unrestricted Subsidiaries | 92 |
|  **Section 7.15.** | Organizational Documents | 92 |
|  **Section 7.16.** | Changes in Fiscal Year | 92 |
|  **Section 7.17.** | Amendments to Material Agreements | 92 |
|  **Section 7.18.** | General and Administrative Costs | 92 |
| **Article VIII** | **Article VIII** | **Article VIII** |
| **PASSIVE HOLDING COMPANY STATUS OF THE ISSUER** | **PASSIVE HOLDING COMPANY STATUS OF THE ISSUER** | **PASSIVE HOLDING COMPANY STATUS OF THE ISSUER** |
| Article IX | Article IX | Article IX |
| EVENTS OF DEFAULT; REMEDIES | EVENTS OF DEFAULT; REMEDIES | EVENTS OF DEFAULT; REMEDIES |
|  **Section 9.01.** | Events of Default | 93 |
|  **Section 9.02.** | Treatment of Make-Whole Amount and Prepayment Fee | 96 |
|  **Section 9.03.** | Application of Funds | 97 |
|  **Section 9.04.** | Credit Bidding | 97 |
| Article X | Article X | Article X |
| AGENTs | AGENTs | AGENTs |
|  **Section 10.01.** | Appointment of Agents | 99 |
|  **Section 10.02.** | Powers and Duties | 99 |
|  **Section 10.03.** | General Immunity | 99 |
|  **Section 10.04.** | Holders' Representations, Warranties and Acknowledgment | 102 |
|  **Section 10.05.** | Successor Agents | 103 |
|  **Section 10.06.** | Delegation of Duties | 104 |
|  **Section 10.07.** | Collateral Documents | 104 |
|  **Section 10.08.** | Posting of Approved Electronic Communications | 105 |
|  **Section 10.09.** | Proofs of Claim | 106 |
|  **Section 10.10.** | Hedge Intercreditor Agreement | 106 |
|  **Section 10.11.** | Indemnification | 106 |
| Article XI | Article XI | Article XI |
| MISCELLANEOUS | MISCELLANEOUS | MISCELLANEOUS |
|  **Section 11.01.** | Notices | 107 |

---

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| | | |
|:---|:---|:---|
|  **Section 11.02.** | Expenses | 107.0 |
|  **Section 11.03.** | Indemnity; Limitation of Liability | 108.0 |
|  **Section 11.04.** | Set Off | 109.0 |
|  **Section 11.05.** | [Reserved] | 109.0 |
|  **Section 11.06.** | Amendments and Waivers | 109.0 |
|  **Section 11.07.** | Successors and Assigns; Assignments | 111.0 |
|  **Section 11.08.** | Survival of Representations, Warranties and Agreements | 113.0 |
|  **Section 11.09.** | No Waiver; Remedies Cumulative | 114.0 |
|  **Section 11.10.** | Marshalling; Payments Set Aside | 114.0 |
|  **Section 11.11.** | Severability | 114.0 |
|  **Section 11.12.** | Obligations Several; Independent Nature of Holders' Rights | 114.0 |
|  **Section 11.13.** | Tax Treatment | 114.0 |
|  **Section 11.14.** | Headings | 114.0 |
|  **Section 11.15.** | APPLICABLE LAW | 114.0 |
|  **Section 11.16.** | CONSENT TO JURISDICTION | 115.0 |
|  **Section 11.17.** | WAIVER OF JURY TRIAL | 115.0 |
|  **Section 11.18.** | Confidentiality | 115.0 |
|  **Section 11.19.** | Usury Savings Clause | 116.0 |
|  **Section 11.20.** | Counterparts | 117.0 |
|  **Section 11.21.** | USA PATRIOT Act | 117.0 |
|  **Section 11.22.** | Disclosure | 117.0 |
|  **Section 11.23.** | Appointment for Perfection | 117.0 |
|  **Section 11.24.** | Advertising and Publicity | 117.0 |
|  **Section 11.25.** | Acknowledgments and Admissions | 117.0 |
|  **Section 11.26.** | Third Party Beneficiaries | 118.0 |
|  **Section 11.27.** | Entire Agreement | 118.0 |
|  **Section 11.28.** | Transferability of Securities; Restrictive Legend | 119.0 |
|  **Section 11.29.** | Replacement of Notes | 119.0 |
|  **Section 11.30.** | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 119.0 |
|  **Section 11.31.** | Hedge Intercreditor Agreement | 120.0 |

---

------

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| | | |
|:---|:---|:---|
| **APPENDICES:** | A | Commitments |
|  | B | Notice Addresses |
|  | C | Free Cash Flow Distributions and Prepayments |
|  | D | Free Cash Flow Distributions and Prepayments Spreadsheet |
| **SCHEDULES:** | 1.02(a) | Guarantors |
|  | 1.02(b) | Material Contracts |
|  | 4.13 | Subsidiaries |
|  | 4.18 | Swap Agreements |
|  | 7.04 | Permitted Restricted Payments |
|  | 7.05 | Existing Investments |
|  | 11.18 | Compliance Personnel |
| **EXHIBITS:** | A | Form of Note Purchase Notice |
|  | B-1 | Form of Note |
|  | B-2 | Form of Incremental Note |
|  | C | Form of Closing Date Certificate |
|  | D | Form of Compliance Certificate |
|  | E | Form of Solvency Certificate |
|  | F | Form of Guaranty Agreement |
|  | G | Form of Pledge and Security Agreement |
|  | H | Form of Assignment Agreement |
|  | I-1-4 | Form of U.S. Tax Compliance Certificate |
|  | J | Form of Reserve Report Certificate |
|  | K | Form of Free Cash Flow Utilization Certificate |
|  | L | Form of Mortgage |

---

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**WHITEHAWK INCOME CORPORATION** 

This **NOTE PURCHASE AGREEMENT**, dated as of September 17, 2024 (together with any amendments, restatements, amendments and restatements, supplements or other modifications hereto, the "**Agreement**"), is entered into by and among **WHITEHAWK INCOME CORPORATION**, a Delaware corporation (the "**Issuer**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pacific Indemnity Company, as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG River Energy Partners, L.P., as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG Upstream Partners, L.P., as Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG Bandelier Partners, L.P., as a Holder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. Bank Trust Company, National Association, as agent (in such capacity, the "**Agent**") and
collateral agent for the Holders and the Secured Hedge Providers (in such capacity, the "**Collateral Agent** ").

**W I T N E S E T H:** 

In consideration of the mutual covenants and agreements contained herein and the Notes to be purchased by Holders, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**ARTICLE I** 

**DEFINITIONS AND INTERPRETATION** 

**Section 1.01.** <u>Terms Defined Above</u>. As used in this Agreement, each term defined above has the meaning indicated above.

**Section 1.02.** <u>Definitions</u>. The following terms used herein, including in the preamble, recitals, exhibits and schedules hereto, shall have the following meanings:

"**ABR**" means, for any day, a rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day <u>plus</u> <sup>1</sup>⁄<sub>2</sub> of 1% (or if such day is not a Business Day, the immediately preceding Business Day) and (c) if available, the Adjusted Term SOFR Rate as determined two (2) U.S. Government Securities Business Days prior to such day (or if such day is not a Business Day, the immediately preceding Business Day); <u>provided</u> that for the purpose of this definition, the Adjusted Term SOFR Rate for any day shall be based on the Term SOFR Reference Rate at approximately 12:00 p.m., New York time on such day (or any amended publication time for the Term SOFR Reference Rate, as specified by the CME Term SOFR Administrator in the Term SOFR Reference Rate methodology). Any change in the ABR due to a change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR Rate shall be effective as of the opening of business on the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR Rate, respectively. For the avoidance of doubt, if the ABR shall be less than 3.50%, such rate shall be deemed to be 3.50% for purposes of this Agreement. In the event the Agent on any interest determination date is required, but unable, to determine a benchmark rate in accordance with at least of the procedures described above, ABR will be the Adjusted Term SOFR Rate as determined on the previous interest determination date.

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"**ABR Note**" means Notes the rate of interest applicable to which is based upon the ABR. For the avoidance of doubt, Notes shall constitute ABR Notes only as set forth in <u>Section</u> <u>2.15(a)</u> or as otherwise expressly set forth herein.

"**Accepting Holder**" as defined in <u>Section</u> <u>2.09(g)</u>.

"**Acquired Assets**" means the Assets acquired pursuant to the Specified Acquisition Agreement.

"**Acquired Assets Reserve Report**" means that certain reserve report prepared by Encore Analytics, LLC in respect of the Acquired Assets of the Issuer, with an as of date of August 1, 2024.

**"Adjusted Cash Flow from Operating Activities"** means, for any period, (a) Cash Flow from Operating Activities <u>minus</u> (b) to the extent included in Cash Flow From Operating Activities, any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries for such period, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments.

"**Administrative Services Agreement**" means that certain Administrative Services Agreement, dated as of March 1, 2022, between, the Issuer and WhiteHawk Management, LLC.

"**Adjusted Term SOFR Rate**" means an interest rate *per annum* equal to the Term SOFR Rate; <u>provided</u> that if the Adjusted Term SOFR Rate as so determined would be less than 2.50%, such rate shall be deemed to be 2.50% for the purposes of this Agreement.

"**Affected Financial Institution**" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"**Affiliate**" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified; <u>provided</u> that any Person that directly owns or holds twenty percent (20%) or more of any class of Equity Interests with voting power in such specified Person shall be deemed to be an Affiliate.

"**Affiliated Investor**" means any Person to the extent it owns or holds, directly or indirectly, or its Affiliate (other than the Issuer or any of its Subsidiaries) owns or holds, directly or indirectly, any Equity Interests of the Issuer or any of its Subsidiaries.

"**Agent**" as defined in the preamble hereto.

"**Agents**" means the Agent and the Collateral Agent.

"**Agent Fee Letter**" means that certain Fee Letter dated as of the Closing Date between the Issuer and the Agent.

"**Agent's Account**" means an account designated by Agent from time to time as the account into which Note Parties shall make all payments to Agent for the benefit of the Agent and the Holders under this Agreement and the other Note Documents.

"**Agent's Office**" means the "Agent's Office" as set forth on <u>Appendix B</u> or such other office as Agent may from time to time designate in writing to the Issuer and each Holder.

"**Aggregate Amounts Due**" as defined in <u>Section</u> <u>2.12</u>.

------

"**Agreement**" as defined in the preamble.

"**Alternate Offer**" as defined in <u>Section</u> <u>2.09(h)(iii)</u>.

"**Anti-Corruption Laws**" means all laws, rules, and regulations of any jurisdiction applicable to the Issuer or any of its Restricted Subsidiaries from time to time concerning or relating to bribery or corruption, including the FCPA.

"**Appalachia Gas**" means the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves of gas located within the States of Pennsylvania, Ohio and West Virginia.

"**Applicable Margin**" means, (a) with respect to any Note (other than an ABR Note), a rate per annum equal to the Adjusted Term SOFR Rate <u>plus</u> 6.00% and (b) with respect to any ABR Note, a rate per annum equal to ABR <u>plus</u> 5.00%.

"**Applicable Office**" means the office through which a Holder's investment in any Note is made.

"**Approved Counterparty**" means (a) Citadel Energy Marketing LLC or (b) any other Person who, at the time of entering into a Swap Agreement, has a long term senior unsecured debt rating (or whose guaranteeing credit support provider has a long term senior unsecured debt rating) of A-/A3 by S&P or Moody's (or their equivalent) or higher.

"**Approved Petroleum Engineers**" means (a) Netherland, Sewell & Associates, Inc., (b) Ryder Scott Company, L.P., (c) Schaper Energy Consulting LLC and (d) any other nationally recognized independent petroleum engineering firms selected by the Issuer and reasonably acceptable to the Requisite Holders.

"**Asset Coverage Ratio**" means, with respect to any date of determination, the ratio of (a) the Total PDP PV-10 Value as of such date of determination to (b) the Total Net Debt as of such date of determination.

"**Asset Sale**" means a sale, lease or sublease (as lessor or sublessor), sale and leaseback, assignment, conveyance, license, transfer or other disposition to, or any exchange of property with, any Person, in one transaction or a series of related transactions, of all or any part of any Person's businesses, assets or properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, including the Equity Interest owned by such Person (in each case of the foregoing, excluding any Casualty Event).

"**Assignment Agreement**" means an Assignment and Assumption Agreement substantially in form of <u>Exhibit H</u> or such other form reasonably acceptable to the Agent (at the direction of the Requisite Holders).

"**AUM Fee**" means the monthly asset management fee in an amount equal to 1.50% of the Issuer's total assets, payable by the Issuer to WhiteHawk Management, LLC, pursuant to Section 4(a) of the Investment Management Agreement.

"**Bail-In Action**" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

------

"**Bail-In Legislation**" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"**Beneficial Ownership Certification**" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

"**Beneficial Ownership Regulation**" means 31 C.F.R. § 1010.230.

"**Bloomberg**" has the meaning set forth in the definition of "**Reinvestment Yield**".

"**Board**" means the Board of Governors of the Federal Reserve System of the United States of America or any successor Governmental Authority.

"**Board of Directors**" means (a) with respect to a corporation, the board of directors of the corporation or any committee thereof duly authorized to act on behalf of such board; (b) with respect to a partnership, the board of directors of the general partner of the partnership; (c) with respect to a limited liability company, the manager, managers, managing member or members or any controlling committee of managing members thereof; and (d) with respect to any other Person, the board or committee of such Person serving a similar function.

"**Business Day**" means any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the States of New York or Texas or is a day on which banking institutions located in either of such states are authorized or required by law or other governmental action to close.

"**Called Principal**" means, with respect to any Note, the amount of principal of such Note that is to be prepaid pursuant to <u>Section</u> <u>2.08</u>, <u>Section</u> <u>2.09(c)</u>, or <u>Section</u> <u>2.09(d)</u> or has become or is declared to be immediately due and payable pursuant to <u>Section</u> <u>9.01</u>, as the context requires.

"**Cash Equivalents**" means (a) securities issued or fully guaranteed or insured by the United States Government or any agency thereof and backed by the full faith and credit of the United States having maturities of not more than twelve (12) months from the date of acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits, or bankers' acceptances having in each case a tenor of not more than twelve (12) months from the date of acquisition issued by any Holder or any U.S. commercial bank or any branch or agency of a non-U.S. commercial bank licensed to conduct business in the U.S. having combined capital and surplus of not less than $500,000,000 and having a short term deposit rating of no lower than A2 or P2, as such rating is set forth from time to time by S&P or Moody's, respectively; (c) commercial paper of an issuer rated at least A-1 by S&P or P-1 by Moody's at the time of acquisition, and in either case having a tenor of not more than twelve (12) months; (d) repurchase obligations with a term of not more than one-hundred eighty (180) days for underlying securities of the types described in <u>clauses (a)</u> and <u>(b)</u> entered into with any financial institution or recognized securities dealer meeting the qualifications specified in <u>clause</u><u> </u><u>(b)</u> above; and <u>(e)</u> deposits in money market funds and investments investing exclusively in investments described in <u>clauses (a)</u>, <u>(b)</u>, <u>(c)</u> and <u>(d)</u> above.

"**Cash Flow From Operating Activities**" means, for any period, the cash generated from the normal business operations of the Issuer and its Restricted Subsidiaries for such period, determined in a manner consistent with (a) the Issuer's past practice and (b)(i) the line item "Net Cash Flow, Total" contained in the Issuer's precedent lease operating statements (file name "WhiteHawk LOS through May

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2024 (August 2024).xlsx") delivered by the Issuer to EIG on or prior to the Closing Date, incorporating the revenue and expenses from ongoing operations of the Issuer and its Restricted Subsidiaries including from Oil and Gas Properties and Swap Agreements, <u>minus</u> (ii) General and Administrative Costs of the Issuer and its Restricted Subsidiaries for such period, and <u>minus</u> (iii) Consolidated Interest Expense of the Issuer and its Restricted Subsidiaries for such period.

"**Casualty Event**" means any loss, casualty or other insured damage to, or any nationalization, taking under power of eminent domain or by condemnation or similar proceeding of, any Property of the Issuer or any of its Restricted Subsidiaries.

"**CERCLA**" has the meaning set forth in the definition of "Environmental Laws".

"**Change in Control**" means the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any "person" or "group" (within the meaning of Section 13(d) or 14(d) of the Exchange Act), shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of a percentage of the total voting or economic power of all classes of capital stock of the Issuer entitled to vote generally in the election of directors, of fifty percent (50%) or more on a fully diluted basis,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the occupation of a majority of the seats (other than vacant seats) on the board of directors of the Issuer by Persons who were neither (i) directors of Issuer on the Closing Date, (ii) nominated nor approved by the board of directors of Issuer nor (iii) appointed by WhiteHawk Management LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) WhiteHawk Management LLC shall cease to be one hundred percent (100%) owned and controlled, of record and beneficially, by WhiteHawk Minerals LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) WhiteHawk Minerals LLC shall cease to be owned and controlled, of record and beneficially, fifty-one percent (51%) or more by WhiteHawk Energy LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) WhiteHawk Management LLC shall cease to Control the Issuer, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a "Change in Control" (or equivalent term as defined in any other instrument governing Material Debt) or any functionally equivalent concept under any other instrument governing Material Debt shall have occurred.

"**Closing Date**" means the date on which all of the conditions precedent set forth in <u>Section</u> <u>3.01</u> have been satisfied or waived.

"**Closing Date Certificate**" means a Closing Date Certificate substantially in the form of <u>Exhibit</u><u> </u><u>C</u>.

"**CME Term SOFR Administrator**" means CME Group Benchmark Administration Limited as administrator of the forward-looking term Secured Overnight Financing Rate (SOFR) (or a successor administrator).

"**Code**" means Title 11 of the United States Code entitled "Bankruptcy," as now and hereafter in effect, or any successor statute.

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"**Collateral Agent**" as defined in the preamble hereto.

"**Collateral Coverage Minimum**" as defined in <u>Section</u> <u>6.13(a)</u>.

"**Collateral Documents**" means Guaranty Agreement, the Pledge and Security Agreement, the Mortgages, the Control Agreements, the Hedge Intercreditor Agreement and all other instruments, documents and agreements executed by any Note Party in connection with this Agreement or any of the other Note Documents that are intended to create, perfect or evidence Liens to secure the Obligations, including, without limitation, all other security agreements, account control agreements, pledge agreements, mortgages, deeds of trust, guarantees, subordination agreements, pledges, powers of attorney and assignments now, or hereafter executed by any Note Party and delivered to the Collateral Agent to secure the Obligations, as such agreements may be amended, restated, amended and restated, modified, supplemented or restated from time to time.

"**Commitment**" means, as to each Holder, its obligation to purchase a Note from the Issuer pursuant to <u>Section</u> <u>2.01(a)</u> in an aggregate amount not to exceed the amount set forth opposite such Holder's name in <u>Appendix A</u> under the caption "Commitment." The aggregate amount of the Commitments is $65,000,000.

"**Commitments**" means such commitments of all Holders in the aggregate.

"**Commodity Account**" means any "commodity account" as defined in the UCC.

"**Commodity Exchange Act**" means the Commodity Exchange Act (7 U.S.C. § 1 *et seq.*), as amended from time to time, and any successor statute, and any regulations promulgated thereunder.

"**Communications**" as defined in <u>Section</u> <u>10.08(a)</u>.

"**Compliance Certificate**" means a Compliance Certificate substantially in the form of <u>Exhibit</u><u> </u><u>D</u>.

"**Confidential Information**" as defined in <u>Section</u> <u>11.18</u>.

"**Connection Income Tax**" means Taxes described in (b) of the definition of Tax on the Overall Net Income that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"**Consolidated Interest Expense**" means, for any period, the sum (determined without duplication) of the aggregate gross interest expense of the Note Parties and their Consolidated Restricted Subsidiaries for such period. For purposes of the foregoing, gross interest expense shall be determined after giving effect to any net payments made or received by the Note Parties with respect to interest rate Swap Agreements.

"**Consolidated Net Income**" means with respect to the Issuer and the Consolidated Restricted Subsidiaries, for any period, the aggregate of the net income (or loss) of the Issuer and the Consolidated Restricted Subsidiaries for such period determined on a consolidated basis in accordance with GAAP; <u>provided</u> that there shall be excluded, without duplication, from such net income (to the extent otherwise included therein) the following: (a) the net income of (i) any Unrestricted Subsidiary and (ii) any Person in which the Issuer or any Consolidated Restricted Subsidiary has an interest (which interest does not cause the net income of such other Person to be consolidated with the net income of the Issuer and the Consolidated Restricted Subsidiaries in accordance with GAAP), except in the case of the foregoing clauses <u>(i)</u> and <u>(ii)</u> to the extent of the amount of dividends or distributions actually paid in cash during such period

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by such Unrestricted Subsidiary or other Person, as the case may be, to the Issuer or to a Consolidated Restricted Subsidiary, as the case may be, from cash generated by such Person; (b) the net income (but not loss) during such period of any Consolidated Restricted Subsidiary to the extent that the declaration or payment of dividends or similar distributions or transfers or loans by that Consolidated Restricted Subsidiary is not at the time permitted by operation of the terms of its charter or any agreement, instrument or Governmental Requirement applicable to such Consolidated Restricted Subsidiary or is otherwise restricted or prohibited, in each case determined in accordance with GAAP; (c) the net income (or loss) of any Person accrued prior to the date it becomes a Consolidated Restricted Subsidiary or is merged into or consolidated with the Issuer or any of its Consolidated Restricted Subsidiaries; (d) the cumulative effect of a change in accounting principles during such period to the extent included in Consolidated Net Income; (e) any net after tax effect on income (or loss) for such period attributable to the early extinguishment, cancellation, termination or unwinding of any Debt or Swap Agreement; (f) any unrealized income (or loss) for such period attributable to hedging obligations or other derivative instruments; (g) accruals and reserves established or adjusted, or other charges required as a result of, the adoption or modification of accounting policies during such period; (h) any gains or losses attributable to writeups or writedowns of assets; and (i) any non-cash gains or losses (including any positive or negative adjustments under FASB ASC 815 as a result of changes in the fair market value of derivatives).

"**Consolidated Restricted Subsidiaries**" means any Restricted Subsidiaries that are Consolidated Subsidiaries.

"**Consolidated Subsidiaries**" means each Subsidiary of the Issuer (whether now existing or hereafter created or acquired) the financial statements of which shall be (or should have been) consolidated with the financial statements of the Issuer in accordance with GAAP.

"**Consolidated Total Net Leverage Ratio**" means, as of the last day of any fiscal quarter or "Applicable Distribution Period", as applicable, the ratio of Total Net Debt as of such date of determination to EBITDA for the Rolling Period or "Applicable Distribution Period", as applicable, then ending.

"**Consolidation**" as defined in <u>Section</u> <u>7.08</u>.

"**Control**" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and "Controlled" have meanings correlative thereto.

"**Control Agreement**" means a control agreement, in form and substance reasonably satisfactory to the Collateral Agent and the Requisite Holders, entered into with the Collateral Agent and the bank or securities intermediary at which any Deposit Account, Commodity Account or Securities Account is maintained by any Note Party in accordance with <u>Section</u> <u>6.16</u>.

"**Cure Amount**" as defined in <u>Section</u> <u>7.01(c)</u>.

"**Cure Period**" as defined in <u>Section</u> <u>7.01(c)</u>.

"**Debt**" means, for any Person, the sum of the following (without duplication): (a) all obligations of such Person for borrowed money or evidenced by bonds, bankers' acceptances, debentures, notes or other similar instruments; (b) all obligations of such Person (whether contingent or otherwise) in respect of letters of credit, surety or other performance bonds and similar instruments; (c) all accounts payable and all accrued expenses, liabilities or other obligations of such Person to pay the deferred purchase price of Property or services (excluding accounts payable and accrued expenses, liabilities or other obligations to pay the deferred purchase price of Property or services, from time to time incurred in the ordinary course

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"**Declining Holder**" as defined in <u>Section</u> <u>2.09(g)</u>.

"**Default**" means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

"**Default Rate**" means any interest payable pursuant to <u>Section</u> <u>2.06(c)</u>.

"**Deposit Account**" means any "deposit account" as defined in the UCC.

"**Discounted Value**" means, with respect to the Called Principal of any Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

"**Disqualified Capital Stock**" means any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event, matures or is mandatorily redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock), pursuant to a sinking fund obligation or otherwise, or is convertible or exchangeable for Debt or redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock) at the option of the holder thereof, in whole or in part, on or prior to the date that is ninety-one (91) days (or, if issued to an insider, three hundred sixty-six (366) days) after the Maturity Date.

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"**Distributable Free Cash Flow**" means, as of any time of determination for a calendar month set forth under the heading "Distribution Month" in <u>Appendix</u><u> </u><u>C</u>, (a) an amount equal to Free Cash Flow (Forward) for such "Applicable CF Period", <u>minus</u> (b) the aggregate amount of Restricted Payments made during the then current period set forth under the heading "Applicable Distribution Period" in <u>Appendix C</u> prior to and at such time of determination under <u>Section</u> <u>7.04(c)</u>, <u>minus</u> (c) the aggregate amount of Investments made during the then current Applicable Distribution Period prior to and at such time of determination pursuant to <u>Section</u> <u>7.05(h)</u> (each such use under <u>clause (b)</u> and/or <u>clause (c)</u>, a "**Free Cash Flow Utilization**").

"**Distribution Period A**" means the period commencing on the Closing Date and ending on March 31, 2025.

"**Distribution Period B**" means the period commencing on April 1, 2025 and ending on March 31, 2026.

"**Distribution Period C**" means the period commencing on April 1, 2026 and continuing thereafter. "**Distribution PF Basis**" means, (a) as to the calculation of the Consolidated Total Net Leverage Ratio, the Asset Coverage Ratio and Liquidity in connection with a Restricted Payment made pursuant to <u>Section</u> <u>7.04(c)</u> and/or Investment made pursuant to <u>Section</u> <u>7.05(h)</u>, such calculation will be made (i) on a pro forma basis, including giving pro forma effect (A) to the Restricted Payment and/or Distribution as if such Restricted Payment and/or Distribution occurred immediately prior to such date of determination and (B) to the extent a "CF Sweep Date" occurs during "Applicable CF Period", any prepayment of the Notes pursuant to <u>Section</u> <u>2.09(a)</u> and (ii) as of (including utilizing Total Net Debt as of) the last Business Day prior to the date of such calculation and (b) as to the calculation of Liquidity in connection with <u>Section</u> <u>2.09(a)</u>, such calculation will be made (i) on a pro forma basis, including giving pro forma effect to any prepayment of the Notes pursuant to <u>Section</u> <u>2.09(a)</u> and (ii) as of the last Business Day prior to the date of such calculation. Pro forma calculations made pursuant to the definition of the term "Distribution PF Basis" shall be determined in good faith by a Responsible Officer of the Issuer and with supporting documentation reasonably acceptable to the Requisite Holders and with respect to the Asset Coverage Ratio, made in accordance with <u>Section</u> <u>1.05</u> and <u>Section</u> <u>6.01(u)</u>.

"**Dividend Incentive Fee**" means (a) the 12.50% fee of all distributions, including all Dividends (as defined in the Offering Memorandum (as defined in the Investment Management Agreement)) and Dividend Incentive Fees, earned and/or paid out by the Issuer to WhiteHawk Management, LLC during a calendar month pursuant to <u>Section</u> <u>4(b)</u> of the Investment Management Agreement and (b) the Manager Fee Deferrals (as defined in the Investment Management Agreement) payable by the Issuer to WhiteHawk Management, LLC pursuant to <u>Section</u> <u>4(c)</u> of the Investment Management Agreement.

"**Dollars**" and the sign "**$**" mean the lawful money of the United States of America.

"**Domestic Subsidiary**" means any Restricted Subsidiary that is organized under the laws of the United States of America or any state or territory thereof or the District of Columbia.

"**EBITDA**" means, for any period, Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increased (without duplication) by the following, in each case (other than in the case of <u>clause</u> <u>(a)(v)</u> below) to the extent deducted from or otherwise not included (and not added back) in the determination of Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provision for taxes based on income or profits or capital, <u>plus</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Consolidated Interest Expense for such period (net of interest income of the Issuer and the Consolidated Subsidiaries for such period), <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) depreciation, depletion and amortization expense, including the amortization of intangible assets established through purchase accounting and the, amortization of deferred financing fees for such period, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other non-cash charges reducing Consolidated Net Income for such period (<u>provided</u> that if any such non-cash charges represent an accrual or reserve for potential cash items in any future period, the cash payment in respect thereof in such future period shall be subtracted from EBITDA on a dollar-for-dollar basis to such extent, and excluding amortization of a prepaid cash item that was paid in a prior period), <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) reasonable (A) Transaction Expenses incurred on, prior to or within three (3) months of the Closing Date and (B) costs and expenses incurred in connection with any Investments, acquisitions (or purchases of assets (including those relating to Oil and Gas Properties)), asset dispositions (including those relating to Oil and Gas Properties), recapitalizations, mergers, amalgamations, repayment, refinancing amendment or modification of Debt or similar transactions after the Closing Date permitted hereunder up to an aggregate amount pursuant to this <u>clause (B)</u> not to exceed $3,000,000 in any period, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the amount of AUM Fees and Dividend Incentive Fees for such period, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any net loss from disposed, abandoned or discontinued operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) decreased (without duplication) by the following, in each case to the extent included in determining Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) non-cash items increasing Consolidated Net Income for such period, excluding any non-cash items that represent the reversal of an accrual or cash reserve for any anticipated cash charges in any prior period where such accrual or cash reserve is no longer required (other than any such accrual or cash reserve that has been added back to Consolidated Net Income in calculating EBITDA in accordance with this definition), <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any net income from disposed, abandoned or discontinued operations, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any non-cash items with respect to cash actually received in a prior period unless such cash did not increase EBITDA in such prior period.

For the purposes of calculating EBITDA for any Rolling Period or for any "Application Distribution Period" as set forth on Appendix C, (i) if during such Rolling Period or "Application Distribution Period", as applicable, the Issuer or any Consolidated Restricted Subsidiary shall have made a Material Disposition, EBITDA for such Rolling Period or "Application Distribution Period", as applicable, shall be calculated on a Pro Forma Basis, and (ii) if during such Rolling Period or "Application Distribution Period", as applicable, the Issuer or any Consolidated Restricted Subsidiary shall have made a Material Acquisition, EBITDA for such Rolling Period or "Application Distribution Period", as applicable, shall be calculated on a Pro Forma Basis.

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Notwithstanding anything to the contrary, (x) for purposes of calculating EBITDA for any Rolling Period or "Application Distribution Period", as applicable, that includes any of the fiscal quarters or calendar months, as applicable, ending October 31, 2024, November 30, 2024, December 31, 2024, January 31, 2025, February 28, 2025, March 31, 2025, April 30, 2025, May 31, 2025, June 30, 2025, July 31, 2025 or August 31, 2025, EBITDA for such fiscal quarters or calendar months, as applicable, shall be (I) for October 31, 2024, EBITDA for the calendar month ending October 31, 2024 multiplied by twelve (12); (II) for November 30, 2024, EBITDA for the two consecutive calendar months ending November 30, 2024 multiplied by six (6); (III) for December 31, 2024, EBITDA for the three consecutive calendar months ending December 31, 2024 multiplied by four (4); (IV) for January 31, 2025, EBITDA for the four consecutive calendar months ending January 31, 2025 multiplied by three (3); (V) for February 28, 2025, EBITDA for the five consecutive calendar months ending February 28, 2025 multiplied by twelve-fifths (12/5); (VI) for March 31, 2025, EBITDA for the six consecutive calendar months ending March 31, 2025 multiplied by two (2); (VII) for April 30, 2025, EBITDA for the seven consecutive calendar months ending April 30, 2025 multiplied by twelve-sevenths (12/7); (VIII) for May 31, 2025, EBITDA for the eight consecutive calendar months ending May 31, 2025 multiplied by three-halves (3/2); (IX) for June 30, 2025, EBITDA for the nine consecutive calendar months ending June 30, 2025 multiplied by four-thirds (4/3); (X) for July 31, 2025, EBITDA for the ten consecutive calendar months ending July 31, 2025 multiplied by six-fifths (6/5) and (XI) for August 30, 2025, EBITDA for the eleven consecutive calendar months ending August 30, 2025 multiplied by twelve-elevenths (12/11) and (y) for purposes of the Initial LOS/CF Certificate EBITDA only, EBITDA for the trailing twelve months shall be deemed to be $20,000,000.

"**EEA Financial Institution**" means (a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country that is a parent of an institution described in <u>clause</u><u> </u><u>(a)</u> of this definition, or (c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in <u>clauses</u><u> </u><u>(a)</u> or <u>(b)</u> of this definition and is subject to consolidated supervision with its parent.

"**EEA Member Country**" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"**EEA Resolution Authority**" means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"**EIG**" means EIG Credit Management Company, LLC.

"**Eligible Assignee**" means (a) any Holder, (b) any Subsidiary, Related Fund or Affiliate of a Holder and (c) other than a natural Person, any Note Party or any of their respective Affiliates or any Holder or any Subsidiary, Related Fund or Affiliate thereof, any Institutional Investor or other Person, in each such case for such Institutional Investor or other Person in this <u>clause (c)</u> with the consent of the Issuer, such consent not to be unreasonably withheld, conditioned or delayed; <u>provided</u> that, (i) if an Event of Default has occurred and is continuing, the consent of the Issuer will not be required and (ii) the Issuer shall be deemed to have consented to any such Person unless it shall object thereto by written notice to the Agent within ten (10) Business Days after having received notice thereof; <u>provided</u> <u>further</u> that in any event "Eligible Assignee" shall not include any Affiliated Investor.

"**Environmental Claim**" means any notice, notice of noncompliance, violation or potential responsibility, legally binding directive, claim, action, suit, arbitration, complaint, proceeding, demand, abatement order or other order by any Governmental Authority or any other Person, arising (a) pursuant to or in connection with any actual or alleged violation of any Environmental Law; (b) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or (c) in connection with any actual or alleged damage, injury, threat or harm to human health or safety (to the extent relating to exposure to Hazardous Materials), natural resources or the environment.

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"**Environmental Laws**" means any and all Governmental Requirements pertaining in any way to the environment, the preservation or reclamation of natural resources (including flora and fauna), induced seismicity, or the management, Release or threatened Release of any Hazardous Materials, including, to the extent applicable, the Oil Pollution Act of 1990, as amended, the Outer Continental Shelf Lands Act, the Clean Air Act, as amended, the Comprehensive Environmental, Response, Compensation, and Liability Act of 1980 ("**CERCLA**"), as amended, the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act of 1970, as amended, the Resource Conservation and Recovery Act of 1976 ("**RCRA**"), as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Endangered Species Act, as amended, the Migratory Bird Treaty Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, and the Hazardous Materials Transportation Act, as amended.

"**Environmental Liability**" means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), directly or indirectly resulting from or based upon (a) any violation of any applicable Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) any exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement to the extent liability is assumed or imposed with respect to any of the foregoing.

"**Environmental Permit**" means any permit, registration, license, notice, approval, consent, exemption, variance, or other authorization required under or issued pursuant to applicable Environmental Laws.

"**Equity Interests**" means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest.

"**ERISA**" means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute.

"**ERISA Affiliate**" means each trade or business (whether or not incorporated) which together with the Issuer or a Restricted Subsidiary would be deemed to be a "single employer" within the meaning of Section 4001(b)(1) of ERISA or Sections 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, under Sections 414(m) or (o) of the Code.

"**ERISA Event**" means (a) the occurrence of a "Reportable Event" described in Section 4043 of ERISA with respect to a Plan subject to Title IV of ERISA (other than a Multiemployer Plan) other than a Reportable Event as to which the provision of thirty (30) days' notice to the PBGC is expressly waived under applicable regulations, (b) the withdrawal of the Issuer, a Restricted Subsidiary or any ERISA Affiliate from a Plan subject to Section 4063 of ERISA during a plan year in which it was a "substantial employer" as defined in Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA, (c) the filing of a notice of intent to terminate a Plan subject to Title IV of ERISA (other than a Multiemployer Plan) or the treatment of a Plan amendment as a termination under Section 4041 of ERISA, (d) the institution of proceedings to terminate a Plan by the PBGC, (e) receipt of a notice of withdrawal liability pursuant to Section 4202 of ERISA, or (f) the occurrence of any other event or condition which would reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan.

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"**ESG Survey**" as defined in <u>Section</u> <u>6.01(q)</u>.

"**EU Bail-In Legislation Schedule**" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"**Event of Default**" as defined in <u>Section</u> <u>9.01</u>.

"**Excepted Liens**" means (a) Liens for Taxes, assessments or other governmental charges or levies which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (b) Liens in connection with workers' compensation, unemployment insurance or other social security, old age pension or public liability obligations, which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (c) statutory landlord's liens, operators', vendors', carriers', warehousemen's, repairmen's, mechanics', suppliers', workers', materialmen's, construction or other like Liens, in each case, arising by operation of law in the ordinary course of business each of which is in respect of obligations that are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (d) contractual Liens which arise in the ordinary course of business under operating agreements, joint venture agreements, oil and gas partnership agreements, oil and gas leases, farm-out agreements, farm-in agreements, division orders, contracts for the sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual interest agreements, overriding royalty agreements, marketing agreements, processing agreements, development agreements, gas balancing or deferred production agreements, injection, repressuring and recycling agreements, which are limited to the assets that are subject to the relevant agreement, and seismic or other geophysical permits or agreements, and other agreements, in each case which are usual and customary in the Oil and Gas Business and are for claims which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; <u>provided</u> that any such Lien referred to in this clause does not materially impair the use of any material Property covered by such Lien for the purposes for which such Property is held by the Issuer or any Restricted Subsidiary or materially impair the value of any material Property subject thereto; (e) Liens arising solely by virtue of any statutory or common law provision relating to banker's liens, rights of set-off or similar rights and remedies and burdening only deposit accounts or other funds maintained with a creditor depository institution; <u>provided</u> that no such deposit account is a dedicated cash collateral account or is subject to restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Board and no such deposit account is intended by the Note Parties or any of their Restricted Subsidiaries to provide collateral to the depository institution; (f) easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations in any Property of the Issuer or any Restricted Subsidiary for the purpose of roads, pipelines, transmission lines, transportation lines, distribution lines for the removal of gas, minerals or oil and other like purposes, or for the joint or common use of real estate, rights of way, facilities and equipment, that do not secure any Debt or monetary obligations and which in the aggregate do not materially impair the use of such Property for the purposes of which such Property is held by the Issuer or any Restricted Subsidiary or materially impair the value of such Property subject thereto; (g) Liens on cash or securities pledged to secure performance of tenders, surety and appeal bonds, government contracts, performance and return of money bonds, bids, trade contracts, leases, statutory obligations, regulatory obligations and other obligations of a like nature incurred in the ordinary course of business; (h) judgment and attachment Liens not giving rise to an Event of Default; <u>provided</u> that any appropriate legal proceedings which may have been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated

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shall not have expired and no action to enforce such Lien has been commenced; (i) encumbrances consisting of deed restrictions, zoning restrictions, and other similar restrictions on the use of Oil and Gas Properties, none of which, in the aggregate, materially impairs the use of such property by the Issuer or any Restricted Subsidiary in the operation of its business or materially detracts from the value of such properties; (j) purported Liens evidenced by the filing of UCC financing statements solely as a precautionary measure in connection with operating leases of personal property; <u>provided</u>, <u>further</u>, that no intention to subordinate the first priority status afforded by the Liens granted in favor of the Collateral Agent (for the benefit of the Secured Parties, as provided in the Collateral Documents) is to be hereby implied or expressed by the permitted existence of such Excepted Liens. The parties acknowledge and agree that the term "Excepted Liens" shall not include any Lien securing Debt of the type described in clause (a) of the definition of Debt.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated thereunder.

"**Excluded Accounts**" means (a) each account for which all of the deposits consist of amounts utilized to fund payroll, employee benefit or tax obligations of the Note Parties and their Subsidiaries, (b) escrow, pre-funding, trust and fiduciary accounts, in each case, solely holding amounts held for the benefit of third parties in the ordinary course of business (including, without limitation, escrow accounts in respect of Investments permitted under this Agreement, including under <u>Section</u> <u>7.05</u>), (c) "zero balance" accounts, and (d) other accounts; <u>provided</u> that the aggregate daily maximum balance for all such bank accounts excluded pursuant to this <u>clause (d)</u> on any day shall not exceed $500,000.

"**Excluded Property**" has the meaning assigned to such term in the Pledge and Security Agreement.

"**Excluded Subsidiaries**" means (a) any Immaterial Subsidiary and (b) each Unrestricted Subsidiary; <u>provided</u> that no Subsidiary that owns or holds mineral interests, royalty interests or Proved Reserves shall be an "Excluded Subsidiary".

"**Excluded Taxes**" as defined in <u>Section</u> <u>2.14(b)</u>.

"**Existing Credit Facility**" means that certain credit facility, established pursuant to that certain Credit Agreement (as amended, restated, amended and restated, supplemented and as otherwise modified from time to time), dated as of August 3, 2023, by and among, *inter alios*, the Issuer, as borrower, the guarantors from time to time party thereto and Citadel Energy Marketing LLC.

"**Exposure**" means, with respect to any Holder, as of any date of determination, the outstanding principal amount of the Notes held by such Holder.

"**Fair Market Value**" means, with respect to any asset or group of assets on any date of determination, the value of the consideration obtainable in a disposition of such asset or group of assets at such date of determination assuming a disposition by a willing seller to a willing purchaser dealing at arm's length and arranged in an orderly manner over a reasonable period of time having regard to the nature and characteristics of such asset or group of assets, as reasonably determined in good faith by the Issuer; <u>provided</u>, <u>however</u>, that to the extent the Requisite Holders disagree with such Fair Market Value as determined in good faith by the Issuer, the Requisite Holders and the Issuer shall determine Fair Market Value pursuant to a dispute resolution process substantially similar to that provided for in <u>Section</u> <u>1.05</u>.

"**FATCA**" means Sections 1471 through 1474 of the Internal Revenue Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities entered into in connection with the implementation of the foregoing.

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"**FCA**" means the U.K. Financial Conduct Authority.

"**FCPA**" means the Foreign Corrupt Practices Act of 1977, as amended. "**FDIC**" means the Federal Deposit Insurance Corporation.

"**Federal Funds Effective Rate**" means for any day, the rate calculated by the NYFRB based on such day's federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the federal funds effective rate; <u>provided</u> that, if the foregoing rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

"**Fee Letter**" means that certain Fee Letter dated as of the Closing Date between the Issuer, EIG and the other parties named therein.

"**Finance Leases**" means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, recorded as finance leases on the balance sheet of the Person liable (whether contingent or otherwise) for the payment of rent thereunder; <u>provided</u> that for all purposes hereunder the amount of obligations under any Finance Lease shall be the amount thereof accounted for as a liability on the balance sheet of such Person in accordance with GAAP; <u>provided</u>, <u>further</u>, that for purposes of calculations made pursuant to the terms of this Agreement, GAAP will be deemed to treat leases in a manner consistent with its treatment under GAAP applicable to private companies for fiscal years beginning prior to December 15, 2019, notwithstanding any modifications or interpretative changes thereto that may occur. For the avoidance of doubt, (i) any lease that would be characterized as an operating lease in accordance with GAAP applicable to private companies for fiscal years beginning prior to December 15, 2019 (whether or not such operating lease was in effect on such date) shall continue to be accounted for as an operating lease (and not as a Finance Lease) for purposes of this Agreement regardless of any change in GAAP applicable to private companies for fiscal years beginning after December 15, 2019 that would otherwise require such lease to be re-characterized (on a prospective or retroactive basis or otherwise) as a Finance Lease and (ii) GAAP will be deemed to not take into account ASU 2016-02.

"**Financial Officer**" means, for any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person or authorized signatory of such Person that has similar responsibilities; <u>provided</u> that, if such Person is a limited partnership or limited liability company, any reference to a Financial Officer of such Person shall be a reference to a Financial Officer of such Person or of the general partner or sole member, as applicable, of such Person. Unless otherwise specified, all references herein to a Financial Officer means a Financial Officer of the Issuer.

"**First Offer**" as defined in <u>Section</u> <u>2.09(g)</u>.

"**Fiscal Quarter**" means a Fiscal Quarter of any Fiscal Year.

"**Fiscal Year**" means the Fiscal Year of the Note Parties ending on December 31 of each calendar year.

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"**Flood Insurance Regulations**" means (a) the National Flood Insurance Act of 1968 as now or hereafter in effect or any successor statute thereto, (b) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statute thereto, (c) the National Flood Insurance Reform Act of 1994 (amending 42 USC § 4001, et seq.), as the same may be amended or recodified from time to time, (d) the Flood Insurance Reform Act of 2004 and (e) the Biggert-Waters Flood Insurance Reform Act of 2012, in each case as now or hereafter in effect or any successor statute thereto and including any regulations promulgated thereunder.

"**Flow of Funds**" means the flow of funds instruction letter delivered to the Agent at least one (1) Business Day prior to the Closing Date, directing the Agent to make certain specified disbursements on the Closing Date.

"**Foreign Subsidiary**" means any Restricted Subsidiary that is not a Domestic Subsidiary.

"**Free Cash Flow (Back)**" means as of any date of determination, for a calendar month set forth under the heading "Distribution Month" in <u>Appendix</u> C, (a) Adjusted Cash Flow From Operating Activities for the corresponding "Applicable CF Period" in <u>Appendix C</u> <u>plus</u> (b) the amount of net cash proceeds received by the Issuer from the issuance of (i) common equity or (ii) Series B Preferred Shares, in either case issued by the Issuer during such "Applicable Distribution Period", <u>minus</u> (c) any Specified Issuance Proceeds received during such "Applicable Distribution Period" <u>minus</u> (d) to the extent included in Cash Flow From Operating Activities, voluntary cash repayments of the Notes pursuant to <u>Section</u> <u>2.08</u> during such "Applicable Distribution Period".

"**Free Cash Flow (Forward)**" means, as of any date of determination for a calendar month set forth under the heading "Distribution Month" in <u>Appendix</u> C, (a)(i)(A) Projected Cash Flow From Operating Activities for the corresponding "Applicable CF Period" in <u>Appendix</u> <u>C</u><u> </u><u>plus</u> (B) the Prior Period Adjustment from the immediately preceding Applicable CF Period<u> </u><u>multiplied</u> by (ii) the "Quarterly Factor" in Appendix C for such Distribution Month <u>plus</u> (b) the amount of net cash proceeds received by the Issuer from the issuance of (i) common equity or (ii) Series B Preferred Shares, in either case issued by the Issuer during such "Applicable Distribution Period", <u>minus</u> (c) any Specified Issuance Proceeds received during such "Applicable Distribution Period" <u>minus</u> (d) to the extent included in Cash Flow From Operating Activities, voluntary cash repayments of the Notes pursuant to <u>Section</u> <u>2.08</u> during such "Applicable Distribution Period".

"**Free Cash Flow Utilization**" has the meaning set forth in the definition of "Distributable Free Cash Flow".

"**GAAP**" means, subject to the limitations on the application thereof set forth in <u>Section</u> <u>1.03</u>, United States generally accepted accounting principles in effect as of the date of determination thereof.

"**General and Administrative Costs**" means the general and administrative costs of the Issuer, the other Note Parties and their Restricted Subsidiaries, including utilities, communications, consulting fees, salary, rent, supplies, travel, insurance, accounting, legal, engineering and broker related fees required to manage its affairs and, for the avoidance of doubt, (a) any costs and expenses of an Affiliate of the Issuer, the other Note Parties and their Restricted Subsidiaries that are reimbursed by the Issuer, the other Note Parties and their Restricted Subsidiaries and which are fairly allocable to the Issuer, the other Note Parties and their Restricted Subsidiaries and (b) any management fees, advisory fees or similar fees to any holder of its Equity Interests or any Affiliates thereof (other than a Note Party). Notwithstanding the foregoing, for purposes of this Agreement, AUM Fees and Dividend Incentive Fees shall constitute Restricted Payments and not General and Administrative Costs.

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"**Governing Body**" means the Board of Directors or other body having the power to direct or cause the direction of the management and policies of a Person that is a corporation, partnership, trust or limited liability company or other applicable entity.

"**Governmental Authority**" means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

"**Governmental Requirement**" means any law, statute, code, ordinance, order, determination, rule, regulation, judgment, decree, injunction, franchise, permit, certificate, license, rules of common law, authorization or other directive or requirement, whether now or hereinafter in effect, of any Governmental Authority.

"**guarantee**" means, with respect to any Person, any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Debt or other obligation of any other Person in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, that is (a) an obligation of such Person the primary purpose or intent of which is to provide assurance to an obligee that the obligation of the obligor thereof will be paid or discharged, or any agreement relating thereto will be complied with, or the holders thereof will be protected (in whole or in part) against loss in respect thereof; or (b) a liability of such Person for an obligation of another through any agreement (contingent or otherwise) (i) to purchase, repurchase or otherwise acquire such obligation or any security therefor, or to provide funds for the payment or discharge of such obligation (whether in the form of loans, advances, stock purchases, capital contributions or otherwise) or (ii) to maintain the solvency or any balance sheet item, level of income or financial condition of another if, in the case of any agreement described under <u>subclauses</u><u> </u><u>(i)</u> or <u>(ii)</u> of this <u>clause</u><u> </u><u>(b)</u>, the primary purpose or intent thereof is as described in <u>clause (a)</u> above. "**Guarantee**", unless the context otherwise requires, means the guarantee of each Guarantor set forth in the Guaranty Agreement.

"**Guarantors**" means (a) WhiteHawk Income Marcellus LLC, a Delaware limited liability company, (b) WhiteHawk Income Haynesville LLC, a Delaware limited liability company, (c) those Persons identified on <u>Schedule 1.02(a)</u> hereto and (d) each other Material Subsidiary and other Subsidiary of a Note Party that guarantees the Obligations pursuant to the Guaranty Agreement or as otherwise required by <u>Section</u> <u>6.13(b)</u>.

"**Guaranty Agreement**" means an agreement executed by the Guarantors in substantially the form of <u>Exhibit F</u>, absolutely and unconditionally guarantying, on a joint and several basis, payment of the Obligations, as the same may be amended, restated, amended and restated, modified or supplemented from time to time.

"**Hazardous Material**" means any substance regulated or as to which liability might arise under any applicable Environmental Law including: (a) any chemical, compound, material, product, byproduct, substance or waste defined as or included in the definition or meaning of "hazardous substance," "hazardous material," "hazardous waste," "solid waste," "toxic waste," "extremely hazardous substance," "toxic substance," "contaminant," "pollutant" or words of similar meaning or import found in any applicable Environmental Law; (b) Hydrocarbons, petroleum products, petroleum substances, natural gas, oil, oil and gas waste, crude oil, and any components, factions or derivatives thereof; and (c) radioactive materials, explosives, brine, asbestos or asbestos containing materials, polychlorinated biphenyls, per- or polyfluoroalkyl substances, radon, or infectious or medical wastes.

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"**Hazardous Materials Activity**" means any past or current activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, Release, threatened Release, discharge, placement, generation, transportation, processing, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.

"**Hedge Intercreditor Agreement**" means that certain Hedge Intercreditor Agreement, dated as of the Closing Date, by and among the Issuer, each other Note Party, Citadel Energy Marketing LLC as Initial Swap Counterparty (as defined therein) and the Collateral Agent, as such agreement may be amended, restated, amended and restated, supplemented or otherwise modified from time to time; <u>provided</u> that the Hedge Intercreditor Agreement shall be in form and substance satisfactory to the Requisite Holders and otherwise on terms customary for financing arrangements of this type, it being understood that the form and terms of the Hedge Intercreditor Agreement on the Closing Date satisfy this proviso.

"**Highest Lawful Rate**" means the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under the laws applicable to any Holder which are presently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than applicable laws now allow.

"**Holder-Related Party**" as defined in <u>Section</u> <u>11.03(b)</u>.

"**Holders**" means each Person listed on the signature pages hereto as a Holder, and any other Person that becomes a party hereto as a Holder pursuant to an Assignment Agreement, other than any such Person that ceases to be a party hereto as a Holder pursuant to an Assignment Agreement.

"**Hydrocarbon Interests**" means all rights, titles, interests and estates now or hereafter acquired by the Issuer or any Guarantor in and to oil and gas leases, oil, gas and mineral leases, and/or other liquid or gaseous hydrocarbon leases, mineral fee interests, mineral interests, mineral royalty interests, overriding royalty and royalty interests, net profit interests and production payment interests, and other interests and estates including any reserved or residual interests of whatever nature, in each case, including those that are described on the exhibit(s) attached to any Mortgage.

"**Hydrocarbons**" means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all constituents, elements or compounds thereof and all products refined or separated therefrom and all other minerals which may be produced and saved from or attributable to the Oil and Gas Properties, now or hereafter acquired by the Issuer or any Guarantor, including all oil in tanks, and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests or other properties constituting Oil and Gas Properties to the extent allocated to the royalty interest or overriding royalty interests of the Issuer or any Guarantor.

"**Immaterial Subsidiary**" means any Restricted Subsidiary that is not a Material Subsidiary.

"**Improved Mortgaged Property**" means all improved real property acquired by the Issuer or any Guarantor that contains Buildings or Manufactured (Mobile) Homes (as those terms are defined in applicable Flood Insurance Regulations) constituting Collateral, if any.

"**Incremental Commitments**" means the commitments of the Holders to purchase Incremental Notes contemplated by <u>Section</u> <u>2.16</u>.

"**Incremental Indebtedness**" has the meaning set forth in <u>Section</u> <u>2.16(b)(i)</u>.

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"**Incremental Note**" means any Note purchased by any Holder pursuant to the Incremental Commitments, as evidenced by a promissory note in the form of <u>Exhibit B-2</u>.

"**Incremental Notes Notice**" has the meaning set forth in <u>Section</u> <u>2.16(a)(i)</u>.

"**Incremental Notes Offer**" has the meaning set forth in <u>Section</u> <u>2.16(a)(ii)</u>.

"**Incremental Target Amount**" has the meaning set forth in <u>Section</u> <u>2.16(a)(i)</u>.

"**Indemnified Liabilities**" means, collectively, any and all fees, liabilities, obligations, losses, damages, penalties, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable fees, disbursements and settlement costs and other charges of counsel for Indemnitees) and of consultants in connection with any proceeding (whether investigative, administrative, judicial or otherwise) commenced or threatened by any Person, whether or not any such Indemnitee shall be designated as a party or a potential party thereto, and any reasonable fees or expenses incurred by Indemnitees in administering and enforcing this Agreement and the other Note Documents and enforcing the indemnity under <u>Section</u> <u>11.03(a)</u>, whether direct, indirect or consequential and whether based on any federal, state or foreign laws, statutes, rules or regulations (including securities and commercial laws, statutes, rules or regulations and Environmental Laws), on common law or equitable cause or on contract or otherwise, that may be imposed on, incurred by, or asserted against any such Indemnitee, in any manner relating to or arising out of (a) this Agreement or the other Note Documents, the Transactions or any other transactions contemplated hereby or thereby (including the Holders' agreement to make Note Purchases or the use or intended use of the proceeds thereof, or any enforcement of any of the Note Documents (including any sale of, collection from, or other realization upon any of the Collateral or the enforcement of the Guarantee)); or (b) any Environmental Claim relating to or against, or any past or present activity (including any Hazardous Materials Activity), operation, land ownership, or practice of, the Issuer or any of its Subsidiaries or on any of their respective properties. Notwithstanding the foregoing, Indemnified Liabilities shall not include Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

**"Indemnified Taxes"** means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any Obligation of any Note Party under any Note Document and (b) to the extent not otherwise described in (a), Other Taxes.

"**Indemnitee**" as defined in <u>Section</u> <u>11.03(a)</u>.

"**Indemnitee Agent Party**" means each Agent, its Affiliates and its officers, partners, directors, trustees, employees, representatives and agents of the Agents.

"**Initial Financial Statements**" means the financial statements described in <u>Section</u> <u>3.01(u)</u>.

"**Initial Reserve Report**" means that certain reserve report prepared by Schaper Energy Consulting LLC in respect of Oil and Gas Properties of the Issuer and its Restricted Subsidiaries with an "as of" date of March 14, 2024.

"**Institutional Investor**" means (a) any Holder of a Note on the Closing Date, (b) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, (c) any Related Fund or Affiliate of any Holder of any Note and (d) any other Person that is a Qualified Institutional Buyer to the extent such Person would not reasonably be considered a competitor of the Issuer.

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"**Interest**" as defined in <u>Section</u> <u>2.06(a)</u>.

"**Interest Payment Date**" means (a) the last day of each Fiscal Quarter, commencing with the Fiscal Quarter ended December 31, 2024, and (b) the Maturity Date.

"**Interest Period**" means (a) from and including the Closing Date to the next Interest Payment Date, and (b) thereafter, from and including each Interest Payment Date to but excluding the next Interest Payment Date.

"**Internal Revenue Code**" means the Internal Revenue Code of 1986, as amended to the date hereof and from time to time hereafter, and any successor statute (except as otherwise provided herein).

"**Investment**" means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of Equity Interests of any other Person or any agreement to make any such acquisition (including, without limitation, any "short sale" or any sale of any securities at a time when such securities are not owned by the Person entering into such short sale); (b) the making of any deposit with, or advance, loan or capital contribution to, guarantee or assumption of Debt of, purchase or other acquisition of any other Debt or equity participation or interest in, or other extension of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such Property to such Person, but excluding any such advance, loan or extension of credit having a term not exceeding one hundred twenty (120) days representing the purchase price of inventory or supplies sold by such Person in the ordinary course of business) or (c) the purchase or acquisition (in one or a series of transactions) of Property (other than Equity Interests) of another Person that constitutes a business unit, line of business or a discrete set of Properties. For purposes of covenant compliance, the amount of any Investment at any time shall be the amount actually invested (measured at the time made), without adjustment for subsequent increases or decreases in the value of such Investment.

"**Investment Management Agreement**" means that certain Investment Management Agreement, dated as of March 1, 2022, between, the Issuer and WhiteHawk Management, LLC

"**IRS**" as defined in <u>Section</u> <u>2.14(e)</u>.

"**Issuer**" as defined in the preamble hereto.

"**Lien**" means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to (a) the lien or security interest arising from a deed of trust, mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes or (b) royalty interest payments and the like payable out of Oil and Gas Properties.

"**Liquidity**" means, at any time, Unrestricted Cash at such time.

"**LOS/CF Certificate**" means a certificate of a Responsible Officer pursuant to <u>Section</u> <u>6.01(o)</u>.

"**Make-Whole Amount**" means, with respect to the Called Principal of any Note, an amount equal to the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note, <u>provided</u> that the Make-Whole Amount shall in no event be less than zero.

"**Make-Whole Expiry Date**" as defined in <u>Section</u> <u>2.11(g)</u>.

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"**Material Acquisition**" means any acquisition of Property or series of related acquisitions of Property that involves the payment of consideration by the Note Parties and their Consolidated Restricted Subsidiaries in excess of $2,000,000.

"**Material Adverse Effect**" means a material adverse change in, or material adverse effect on (a) the business, operations, Property or financial condition of the Note Parties and their Restricted Subsidiaries taken as a whole, (b) the ability of the Issuer, any Restricted Subsidiary or any Guarantor to perform any of its material obligations under any Note Document, (c) the validity or enforceability of any Note Document, or (d) the rights and remedies of or benefits available to the Agent or any Holder under any Note Document.

"**Material Contracts**" means (a) the contracts set forth on <u>Schedule 1.02(b)</u> and (b) any other contract and agreement of any Note Party or its Subsidiaries resulting (or projected to result) in such Person being reasonably expected to receive revenue or other consideration or incur liabilities in excess of $2,000,000 during any Fiscal Year.

"**Material Debt**" means Debt (other than the Notes), or obligations in respect of one or more Swap Agreements, of any one or more of the Note Parties and their Restricted Subsidiaries in an aggregate principal amount exceeding $2,000,000. For purposes of determining Material Debt, the "principal amount" of the obligations of the Issuer or any Restricted Subsidiary in respect of any Swap Agreement at any time shall be the Swap Termination Value of such Swap Agreement.

"**Material Disposition**" means any disposition of Property or series of related dispositions of Property that involves the payment of consideration to the Note Parties and their Consolidated Restricted Subsidiaries in excess of $2,000,000.

"**Material Environmental and Social Incident**" means (a) any incident or accident formally elevated to the Board of Directors (or other similar Governing Body) of the Issuer, (b) an accident relating to the Note Parties, their Subsidiaries, or their respective properties resulting in death or serious or multiple injury or (c) a significant and material community or worker related grievance or protest directed at the Note Parties, their Subsidiaries, or their respective properties, in each of the foregoing cases, which has or could reasonably be expected to have (in the good faith determination of the Issuer) a material and adverse impact on health, safety or the environment (including, in each case, as the result of the Release of any Hazardous Material).

"**Material Subsidiary**" means, as of any date, (a) any Subsidiary that, together with its Restricted Subsidiaries, as of the last day of the Fiscal Quarter of the Issuer most recently ended, had net revenues or total assets for such quarter in excess of 0.50% of the consolidated net revenues or total assets, as applicable, of the Issuer and its Restricted Subsidiaries for such quarter and (b) any Subsidiary that owns any Oil and Gas Properties evaluated in the Reserve Report most recently delivered to pursuant to <u>Section</u> <u>6.11</u>, <u>provided</u> that in the event that the Immaterial Subsidiaries, taken together, had as of the last day of the Fiscal Quarter of the Issuer most recently ended net revenues or total assets in excess of 1.00% of the consolidated revenues or total assets, as applicable, of the Issuer and its Restricted Subsidiaries for such quarter, the Issuer shall designate one or more Immaterial Subsidiaries to be a Material Subsidiary as may be necessary such that the foregoing one percent 1.00% limit shall not be exceeded, and any such Subsidiary shall thereafter be deemed to be a Material Subsidiary hereunder, and the Issuer shall cause such designated Material Subsidiaries to comply with <u>Section</u> <u>6.13(b)</u>.

"**Maturity Date**" means the earlier of (a) September 17, 2029 and (b) the date that all Notes shall become due and payable in full hereunder, whether by acceleration or otherwise or, in either case, if such day is not a Business Day, the immediately preceding Business Day.

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"**Minimum Liquidity Amount**" means (a) $3,000,000 <u>plus</u> (b) as of any date of determination (i) Interest accrued through the date of determination <u>plus</u> (ii) any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments <u>plus</u> (iii) losses (or <u>minus</u> gains) from Swap Agreements which, as of the date of determination, have settled but for which cash proceeds have not been received by the Issuer or its Restricted Subsidiaries.

"**Minimum Return**" as defined in the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**MIRE Event**" means, if there are any Mortgaged Properties at such time, any increase, extension or renewal of any of the Commitments or Notes (including any other incremental credit facilities hereunder, but excluding (a) any continuation or conversion of Notes or (b) the issuance of any Notes).

"**Monthly Common Equity Dividends**" means dividends made by the Issuer to the holders of its Equity Interests on the account of its common Equity Interests in accordance with the Issuer's Organizational Documents in effect as of the date hereof, in an amount not to exceed $0.1562 per Equity Interest unit (provided that to the extent (a) the outstanding common Equity Interest of the Issuer shall have been increased, decreased, changed into or exchanged for a different number of shares or different class, in each case, by reason of any reclassification, recapitalization, stock split, split-up, combination or exchange of shares, (b) a stock dividend or dividend payable in any other Equity Interests securities of the Issuer shall have been declared or (c) any similar event shall have occurred, such $0.1562 per Equity Interest unit limit shall be adjusted in a manner to maintain the same economic effect as contemplated by this Agreement prior to such event).

"**Monthly Equity Redemptions**" means redemptions by the Issuer of its Series A Preferred Shares in accordance with the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 and in effect as of the date hereof.

"**Monthly Preferred Equity Dividends**" means dividends made by the Issuer to the holders of its Equity Interests on the account of its (a) Series A Preferred Shares in an amount not to exceed eighteen percent (18%) per annum, in accordance with the Amended and Restated Investment Agreement, by and among WhiteHawk Income Corporation and the investors party thereto, dated as of February 1, 2024 and/or (b) Series B Preferred Shares, payable on a monthly basis at an annualized rate of ten percent (10%), in accordance with Section 5 of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**Moody's**" means Moody's Investors Service, Inc. and any successor thereto that is a nationally recognized rating agency.

"**Mortgage**" means all mortgages, deeds of trust and similar documents, instruments and agreements (including amendments and restatements of existing deeds of trust and similar documents, instruments and agreements) creating, evidencing, perfecting or otherwise establishing the Liens on Mortgaged Property to secure payment of the Obligations or any part thereof in substantially the form of <u>Exhibit L</u> (or otherwise in form and substance reasonably acceptable to the Agent (at the direction of the Requisite Holders)).

"**Mortgaged Property**" means any Property owned by the Issuer or any Guarantor which is subject to the Liens existing and to exist under the terms of the Collateral Documents.

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"**Multiemployer Plan**" mean a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

"**Net Asset Sale Proceeds**" means, with respect to any Asset Sale (other than pursuant to <u>Section</u> <u>7.09(a)</u>, <u>Section</u> <u>7.09(b)</u>, <u>Section</u> <u>7.09(e),</u> <u>Section</u> <u>7.09(f)</u>, <u>Section</u> <u>7.09(h),</u> <u>Section</u> <u>7.09(i)</u> or <u>Section</u> <u>7.09(j)</u>), an amount equal to: (a) the sum of cash payments and Cash Equivalents received by the Issuer or any of its Affiliates from such Asset Sale (including any cash or Cash Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received), <u>minus</u> (b) any bona fide costs and expenses (including, without limitation, legal, accounting and investment banking fees, and sales commissions) incurred in connection with such Asset Sale, including income or gains taxes paid or payable as a result of such Asset Sale (after taking into account any available tax credits or deductions and any tax-sharing arrangements) or reserves taken in respect of taxes and (c) a reasonable reserve for any indemnification payments (fixed or contingent) attributable to seller's indemnities and representations and warranties to purchaser in respect of such Asset Sale undertaken by the Issuer or any other Note Party in connection with such Asset Sale; <u>provided</u> that upon release of any such reserve, the amount released shall be considered Net Asset Sale Proceeds.

"**Net Casualty Event Proceeds**" means, with respect to any Casualty Event, an amount equal to: (a) the sum of cash payments and Cash Equivalents received by the Issuer or any of its Affiliates from such Casualty Event <u>minus</u> (b) (i) any bona fide costs and expenses incurred in connection with the adjustment or settlement of any claims of the Issuer or any of its Restricted Subsidiaries in respect thereof and (ii) amounts expended to repair and/or replace property subject to such Casualty Event.

"**Non-U.S. Holder**" as defined in <u>Section</u> <u>2.14(e)</u>.

"**Note**" means the notes purchased by the Holders on the Closing Date pursuant to <u>Section</u> <u>2.01(a)</u>, as may be evidenced by a promissory note in the form of <u>Exhibit</u><u> </u><u>B-1</u> (such term shall also include any such notes in substitution therefor pursuant to <u>Section</u> <u>11.30</u> of this Agreement).

"**Note Document**" means any of this Agreement, the Notes, the Incremental Notes (if any), the Agent Fee Letter, the Fee Letter, the Collateral Documents, the Flow of Funds and all other certificates, documents, instruments or agreements executed and delivered by a Note Party for the benefit of Agents or any Holder in connection herewith or pursuant to any of the foregoing. Any reference in this Agreement or any other Note Document to a Note Document shall include all appendices, exhibits and schedules thereto.

"**Note Party**" means the Issuer and the Guarantors.

"**Note Purchase**" means a purchase by the Holders of Notes pursuant to <u>Section</u> <u>2.01</u>.

"**Note Purchase Notice**" means a written notice by the Issuer that it intends to issue Notes hereunder, which Note Purchase Notice (a) sets forth the principal amount of Notes to be issued, (b) contains the information required by <u>Section</u> <u>2.03</u> and (c) is substantially in the form of <u>Exhibit A</u> or such other form reasonably satisfactory to the Requisite Holders.

"**Not for Speculative Purposes**" in the case of Swap Agreements permitted under this Agreement, means the following Swap Agreements: (a) any commodity Swap Agreement intended, at inception of execution, to hedge or manage any of the risks related to existing and or forecasted Hydrocarbon production of the Issuer or its Restricted Subsidiaries (whether or not contracted) and (b) any Swap Agreement intended, at inception of execution, to hedge or manage the interest rate exposure associated with any debt securities, debt facilities or leases (existing or reasonably forecasted) of the Issuer or its Restricted Subsidiaries. It is understood that commodity Agreements that, taken as a whole, "hedge" the same volumes of commodity risk, including those under which one or more such Swap Agreements partially offset one or more other such Swap Agreements, shall not be aggregated together when calculating the foregoing limitations on notional volumes and shall be deemed, both individually and in the aggregate, not to be speculative.

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"**NYFRB**" means the Federal Reserve Bank of New York.

"**NYFRB Rate**" means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); <u>provided</u> that, if none of such rates are published for any day that is a Business Day, the term "NYFRB Rate" means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received by the Agent from a federal funds broker of recognized standing selected by the Requisite Holders; <u>provided</u>, <u>further</u>, that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

"**NYMEX Pricing**" means, as of any date of determination with respect to any month, (a) for crude oil, the closing settlement price for the Light, Sweet Crude Oil futures contract for such month and (b) for natural gas, the closing settlement price for the Henry Hub Natural Gas futures contract for such month, in each case as published by CME Group / NYMEX on its website currently located at www.cmegroup.com, or any successor thereto (as such price may be corrected or revised from time to time by CME Group / NYMEX in accordance with its rules and regulations).

"**Obligations**" means (a) all liabilities and obligations of every nature of each Note Party from time to time owed to the Agents (including any former Agents), the Holders, any Indemnitee or any of them, in each case, under any Note Document, in each case, to which it is a party, whether for principal, interest (including, without limitation, interest accruing at any post-default rate and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), fees (including, without limitation, any Make-Whole Amount or any Prepayment Fee), expenses, penalties, premiums, reimbursements, indemnification or otherwise and whether primary, secondary, direct, indirect, contingent, fixed or otherwise (including obligations of performance) and all renewals, extensions and/or rearrangements of any of the above and (b) all Secured Hedge Obligations of each Note Party.

"**Oil and Gas Business**" means: (a) the business of acquiring, exploring, exploiting, developing, producing, operating and disposing of interests in oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and mineral properties or products produced in association with any of the foregoing; (b) the business of gathering, marketing, distributing, treating, processing, storing, refining, selling and transporting of any production from interests in oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and mineral properties or products produced in association therewith; and the marketing of oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and minerals obtained from unrelated Persons; and (c) any business or activity relating to, arising from, or necessary, appropriate, incidental or ancillary to the activities described in the foregoing <u>clauses</u><u> </u><u>(a)</u> and <u>(b)</u> of this definition.

"**Oil and Gas Properties**" means: (a) the Hydrocarbon Interests; (b) all of the Issuer's or any Guarantor's interest in the Properties now or hereafter pooled or unitized with Hydrocarbon Interests; (c) all of the Issuer's or any Guarantor's interest in all presently existing or future unitization agreements, pooling agreements and declarations of pooled or unitized units and the units created thereby (including without limitation all units created under orders, regulations and rules of any Governmental Authority) which may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements, including production sharing contracts and agreements, which relate to any of the

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Hydrocarbon Interests or the production, sale, purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests, to the extent the Issuer or any Guarantor is a party to any such agreement or contract; (e) all Hydrocarbons in and under and which may be produced and saved or attributable to the Hydrocarbon Interests; (f) all tenements, hereditaments, appurtenances and Properties in any manner appertaining, belonging, affixed or incidental to the interest of the Issuer or any Guarantor in the Hydrocarbon Interests and (g) all properties, rights, titles, interests and estates described or referred to above, which are now owned or which are hereafter acquired by the Issuer or any Guarantor, including, without limitation, any and all Property, real or personal, immoveable or moveable, now owned or hereinafter acquired <u>,</u> including without limitation, rights-of-way, easements, servitudes, licenses and other surface and subsurface rights, together with all additions, substitutions, replacements, accessions and attachments to any and all of the foregoing.

"**Organizational Documents**" means (a) with respect to any corporation, its certificate or articles of incorporation, amalgamation, formation or organization, as amended, and its bylaws, as amended, (b) with respect to any limited partnership, its certificate of limited partnership or certificate of formation, as amended, and its partnership agreement, as amended, (c) with respect to any general partnership, its partnership agreement, as amended, (d) with respect to any limited liability company, its articles of organization or certificate of formation, as amended, and its operating agreement, as amended and (e) in any other case, the functional equivalent of the foregoing. In the event any term or condition of this Agreement or any other Note Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such "Organizational Document" shall only be to a document of a type customarily certified by such governmental official.

"**Other Taxes**" means any and all present or future stamp, recording, filing, court or documentary, intangible, or similar Taxes arising from any payment made hereunder or from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Note Document, except any such Taxes described in <u>clause (b)</u> of the definition of Tax on the Overall Net Income imposed with respect to any assignment (other than an assignment pursuant to a request by the Issuer).

"**Overnight Bank Funding Rate**" means, for any day, the rate comprised of both overnight federal funds and overnight Adjusted Term SOFR Rate borrowings by U.S.-managed banking offices of depository institutions, (as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time) and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate (from and after such date as the NYFRB shall commence to publish such composite rate).

"**Participant**" as defined in <u>Section</u> <u>11.07(g)</u>.

"**Participant Register**" as defined in <u>Section</u> <u>11.07(g)</u>.

"**Payment**" as defined in <u>Section</u> <u>10.04(c)</u>.

"**Payment in Full**" means (a) the irrevocable payment in full in cash of all principal, interest (including interest accruing during the pendency of an insolvency or liquidation proceeding, regardless of whether allowed or allowable in such insolvency or liquidation proceeding), premium and make-whole, if any, on all Notes outstanding under this Agreement, (b) the irrevocable payment in full in cash in respect of all other Obligations or amounts that are outstanding under this Agreement (other than (i) indemnity obligations for which notice of potential claim has not been given and (ii) amounts due under a Secured Hedge Agreement to the extent such Secured Hedge Obligations are cash collateralized or otherwise subject to arrangements satisfactory to the applicable Secured Hedge Provider) and (c) the termination of all Commitments under this Agreement and all Secured Hedge Agreements (other than Secured Hedge Agreements that are cash collateralized or otherwise subject to arrangements satisfactory to the applicable Secured Hedge Provider).

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"**Payment Notice**" as defined in <u>Section</u> <u>10.04(d)</u>.

"**PBGC**" means the Pension Benefit Guaranty Corporation or any successor thereto.

"**Permitted Recipients**" as defined in <u>Section</u> <u>11.18</u>.

"**Person**" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"**Plan**" means any employee pension benefit plan, as defined in Section 3(2) of ERISA, which (a) is sponsored, maintained or contributed to by the Issuer, a Restricted Subsidiary or, solely with respect to a plan subject to Title IV of ERISA, an ERISA Affiliate or (b) if the Issuer or a Restricted Subsidiary has liability thereunder, was at any time during the six (6) calendar years preceding the Closing Date, sponsored, maintained or contributed to by the Issuer or a Subsidiary or, to which Issuer or a Subsidiary has any liability, including any liability with respect to a plan subject to Title IV of ERISA on account of an ERISA Affiliate.

"**Pledge and Security Agreement**" means a Pledge and Security Agreement among each Note Party and the Collateral Agent in substantially the form of <u>Exhibit</u><u> </u><u>G-2</u> (or otherwise in form and substance reasonably acceptable to the Agent (at the direction of the Requisite Holders)) granting Liens and security interests in the Equity Interests of the Subsidiaries directly owned by such Note Parties and the Note Parties' other personal property constituting Collateral (as defined therein) in favor of the Collateral Agent for the benefit of the Secured Parties to secure the Obligations, as the same may be amended, restated, amended and restated, modified, supplemented or restated from time to time.

"**Primary Distributions**" as defined in Section <u>7.04(c)(i)(A)</u>.

"**Prime Rate**" means the rate of interest per annum publicly quoted from time to time by *The Wall Street Journal* (or, if no longer quoted by *The Wall Street Journal*, such other national publication selected by the Requisite Holders in consultation with the Issuer) as the United States "prime rate".

**"Prior Period Adjustment"** means, for any Applicable CF Period, (a) the total Free Cash Flow (Back) from September 30, 2024 through the immediately preceding Applicable Cash Flow Period <u>minus</u> (b) the total Free Cash Flow Utilizations and the total Specified RPs declared, made or distributed from September 30, 2024 (or, in the event any Specified RPs are declared, made or distributed, from the date of declaring, making or distributing the first Specified RP) through the immediately preceding Applicable Cash Flow Period <u>minus</u> (c) any prepayment of the Notes pursuant to <u>Section</u> <u>2.09(a)</u> from September 30, 2024 through the immediately preceding Applicable Cash Flow Period.

"**Pro Forma Basis**" means, as to the calculation of the Consolidated Total Net Leverage Ratio, Liquidity and the Asset Coverage Ratio, such calculation will be made on a pro forma basis, including giving pro forma effect to the following events as if such events occurred, for purposes of the Consolidated Total Net Leverage Ratio, on the first date of the then most recently ended period for which financial statements (including monthly financial statements and lease operating statements) are available and, for purposes of the Asset Coverage Ratio, immediately prior to such date of determination: any Asset Sale, any Casualty Event, any Material Acquisition, any Material Disposition, any Restricted Payment or any incurrence of Debt that occurred during such period (or thereafter and through and including the date of such determination, in the case of determinations made with respect to any action the taking of which

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hereunder is subject to compliance with the Consolidated Total Net Leverage Ratio or the Asset Coverage Ratio). Any cash or Cash Equivalents to be received by the Issuer or any Restricted Subsidiary in connection with the incurrence of Debt shall not be considered Unrestricted Cash in determining compliance on a "Pro Forma Basis" with the Consolidated Total Net Leverage Ratio for the incurrence of such Debt or any transaction substantially contemporaneously therewith. Pro forma calculations made pursuant to the definition of the term "Pro Forma Basis" shall be, with respect to the Consolidated Total Net Leverage Ratio, determined in good faith by a Responsible Officer of the Issuer and with supporting documentation reasonably acceptable to the Agent (at the direction of the Requisite Holders) and, with respect to the Asset Coverage Ratio, made in accordance with <u>Section</u> <u>1.05</u> and <u>Section</u> <u>6.01(u)</u>.

"**Pro Rata Share**" means, as to any Holder, with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section</u><u> </u><u>2.01(a)</u>, the percentage obtained by <u>dividing</u> (i) the Commitments of that Holder, by (ii) the aggregate Commitments of all Holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all payments, computations and other matters relating to the Notes of any Holder (other than the issuance of the Notes contemplated by <u>Section</u> <u>2.01(a)</u>), the percentage obtained by <u>dividing</u> (i) the Exposure of that Holder by (ii) the aggregate Exposure of all Holders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) after Payment in Full, then the percentage obtained by <u>dividing</u> (i) the Exposure of that Holder by (ii) the aggregate Exposure of all Holders, in each case, shall be calculated on the last day prior to the Payment in Full that any Holder had an Exposure.

"**Probable Reserves**" means "probable oil and gas reserves" as such term is defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"**Projected Cash Flow From Operating Activities**" means (a) the projected Cash Flow From Operating Activities for the Applicable CF Period prepared by the Issuer in good faith and incorporating the expected revenue and expenses from ongoing operations of the Issuer and its Restricted Subsidiaries, including from Oil and Gas Properties, Swap Agreements, General and Administrative Costs, and interest expenses <u>plus</u> (b) to the extent constituting a General and Administrative Cost and included in Cash Flow From Operating Activities, any AUM Fees and/or Dividend Incentive Fees paid in cash during such period <u>minus</u> (c) to the extent included in Cash Flow From Operating Activities, any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries for such period, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments. Projected Cash Flow from Operating Activities shall be calculated using the Strip Price as of the date of determination.

"**Projections**" as defined in <u>Section</u> <u>6.01(f)</u>.

"**Property**" means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights.

"**Proved Developed Producing Reserves**" means "proved developed producing oil and gas reserves" as such term is defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"**Proved Reserves**" means collectively, "proved oil and gas reserves," "proved developed producing oil and gas reserves," "proved developed non-producing oil and gas reserves" (consisting of proved developed shut-in oil and gas reserves and proved developed behind pipe oil and gas reserves), and "proved undeveloped oil and gas reserves," as such terms are defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

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"**Public Company**" as defined in Section 11.18.

"**Public Company Information**" as defined in Section 11.18.

"**Purchase Money Debt**" means Debt, the proceeds of which are used to finance the acquisition, construction, or improvement of inventory, equipment or other property in the ordinary course of business.

"**Qualified ECP Guarantor**" means, in respect of any Swap Agreement, each Note Party that (a) has total assets exceeding $10,000,000 at the time any guaranty of obligations under such Swap Agreement or grant of the relevant security interest becomes effective or (b) otherwise constitutes an "eligible contract participant" under the Commodity Exchange Act and can cause another Person to qualify as an "eligible contract participant" at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

"**Qualified Institutional Buyer**" as defined in <u>Section</u> <u>5.11</u>.

"**RCRA**" has the meaning set forth in the definition of "**Environmental Laws**".

"**Recipient**" as defined in <u>Section</u> <u>11.18</u>.

"**Redemption**" means with respect to any Debt, the repurchase, redemption, prepayment, repayment, defeasance or any other acquisition or retirement for value (or the segregation of funds with respect to any of the foregoing) of such Debt. "**Redeem**" has the correlative meaning thereto.

"**Redemption Offer**" as defined in <u>Section</u> <u>2.09(h)(i)</u>.

"**Redemption Payment**" as defined in <u>Section</u> <u>2.09(h)(i)</u>.

"**Redemption Purchase Date**" as defined in <u>Section</u> <u>2.09(h)(i)</u>.

"**Refinancing**" as defined in <u>Section</u> <u>2.04</u>.

"**Register**" as defined in <u>Section</u> <u>2.05(b)</u>.

"**Regulation T**" means Regulation T of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

"**Regulation U**" means Regulation U of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

"**Regulation X**" means Regulation X of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

"**Reinvestment Yield**" means, with respect to the Called Principal of any Note, 50 basis points (one-half of one percent) over the yield to maturity implied by (a) the yields reported as of 10:00 a.m. (New York, New York time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1" (or such other display as may replace Page PX1 on Bloomberg Financial Markets ("**Bloomberg**")) or, if Page PX1 (or its successor screen on Bloomberg)

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is unavailable, the Telerate Access Service screen which corresponds most closely to Page PX1 for the most recently issued actively traded U.S. Treasury securities having a maturity equal to the Remaining Life of such Called Principal as of such Settlement Date or (b) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (519) (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Life of such Called Principal as of such Settlement Date. Such implied yield will be determined, if necessary, by (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (ii) interpolating linearly between (A) the actively traded U.S. Treasury security with the maturity closest to and greater than such Remaining Life and (B) the actively traded U.S. Treasury security with the maturity closest to and less than such Remaining Life. The Reinvestment Yield shall be rounded to two decimal places.

"**Related Fund**" means, with respect to any Holder that is an investment fund, any other investment fund that is engaged in making, purchasing, holding or otherwise investing in bank loans, commercial loans, private placements and similar extensions of credit in the ordinary course and that is managed, advised or sub-advised by the Holder, an Affiliate of such Holder, or an entity that administers, advises, sub-advises or manages such Holder. Related Fund shall, with respect to any Holder, also include any swap, special purpose vehicles purchasing or acquiring security interests in collateralized loan obligations of such Holder or any other vehicle through which such Holder's investment advisors may leverage its investments from time to time.

"**Release**" means any depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping, or disposing.

"**Remaining Life**" means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the Make-Whole Expiry Date.

"**Remaining Scheduled Payments**" means, with respect to the Called Principal of any Note, all payments of Interest in respect of such Called Principal that would be due on or after the Settlement Date through the Make-Whole Expiry Date with respect to such Called Principal if no payment of such Called Principal (or other payment of principal on the Notes) were made (to be calculated assuming the Adjusted Term SOFR Rate at the time the applicable notice of payment is delivered applies through the applicable period or, if no such notice is given, assuming the Adjusted Term SOFR Rate at the time of such payment applies through the applicable period).

"**Remedial Work**" as defined in <u>Section</u> <u>6.09(a)</u>.

"**Requisite Holders**" means two or more Holders having or holding Exposure representing more than fifty percent (50%) of the sum of the aggregate Exposure of all Holders.

"**Reserve Report**" means (a) the Initial Reserve Report, (b) the Acquired Assets Reserve Report and (c)(i) any other subsequent report, in the form of the Initial Reserve Report (including an Aries database) and/or (ii) any other engineering data acceptable to the Agent (at the direction of the Requisite Holders), setting forth, as of the dates set forth in <u>Section</u> <u>6.11(a)</u>, the Proved Reserves and Probable Reserves attributable to the Oil and Gas Properties of the Issuer and the other Note Parties, together with a projection of the rate of production and future net revenues, operating expenses (including production taxes and ad valorem expenses, if applicable) and capital expenditures with respect thereto as of such date, based upon pricing assumptions consistent with SEC reporting requirements at the time and reflecting Swap Agreements in place with respect to such production.

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"**Reserve Report Certificate**" means a certificate of a Responsible Officer in substantially the form of <u>Exhibit J</u> certifying as to the matters in <u>Section</u> <u>6.11(b)</u>.

"**Resolution Authority**" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"**Responsible Officer**" means, as to any Person, the chief executive officer, the president, any Financial Officer or any vice president or authorized signatory of such Person; <u>provided</u> that if such person is a limited partnership or limited liability company, any reference to a Responsible Officer of such Person shall be a reference to a Responsible Officer of such limited liability company or of the general partner or sole member, as applicable, of such Person. Unless otherwise specified, all references to a Responsible Officer herein shall mean a Responsible Officer of the Issuer.

"**Restricted Payment**" means (a) any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in the Issuer or any of its Subsidiaries, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Issuer or any of its Subsidiaries or any option, warrant or other right to acquire any such Equity Interests in the Issuer or any of its Subsidiaries and (b) any payment of management fees, advisory fees, consulting fees or similar fees by the Issuer or any Restricted Subsidiary to any holders of their Equity Interests or any Affiliates thereof. Notwithstanding the foregoing, for purposes of this Agreement, AUM Fees and Dividend Incentive Fees shall constitute Restricted Payments and not General and Administrative Costs.

"**Restricted Subsidiary"** means any Subsidiary of the Issuer that is not an Unrestricted Subsidiary.

"**Rolling Period**" means, as of any date of determination, the most recently ended period of four (4) consecutive Fiscal Quarters for which financial statements have been delivered, or were required to be delivered, pursuant to <u>Section</u> <u>6.01(a)</u> or <u>Section</u> <u>6.01(b)</u>, as applicable; <u>provided</u> that, for purposes of <u>Section</u> <u>7.01</u>, "Rolling Period" means, as of the last day of any Fiscal Quarter, the period of four (4) consecutive Fiscal Quarters ending on such date.

"**S&P**" means Standard & Poor's Ratings Group, a division of The McGraw-Hill Companies, Inc., and any successor thereto that is a nationally recognized rating agency.

"**Sanctioned Country**" means, at any time, a country, region or territory which is itself, or whose government is, the subject or target of any Sanctions broadly restricting or prohibiting dealings with such country, territory or government (at the time of this Agreement, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, the non-government-controlled areas of the Kherson and Zaporizhzhia Regions of Ukraine, the Crimea Region of Ukraine, Cuba, Iran, North Korea and Syria).

"**Sanctioned Person**" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State or by the United Nations Security Council, the European Union, any European Union member state or His Majesty's Treasury of the United Kingdom, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any government that is itself the subject or target of sanctions or (d) any Person 50% or more owned or controlled by any such Person or Persons described in the foregoing <u>clauses (a)</u>, <u>(b)</u> or <u>(c)</u>.

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"**Sanctions**" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, the United Nations Security Council, the European Union, any European Union member state, or His Majesty's Treasury.

"**SEC**" means the United States Securities and Exchange Commission or any Governmental Authority succeeding to any of its principal functions.

"**Second Engineer**" as defined in <u>Section</u> <u>1.05(d)</u>.

"**Second Offer**" as defined in <u>Section</u> <u>2.09(g)</u>.

"**Secondary Distributions**" as defined in<u> </u><u>Section</u> <u>7.04(c)(i)(A)</u>.

"**Secured Hedge Agreement**" means any Swap Agreement between a Note Party and a Secured Hedge Provider entered into (a) substantially concurrently with such Secured Hedge Provider becoming, or after such Secured Hedge Provider has become, party to the Hedge Intercreditor Agreement or (b) prior to the Closing Date, to the extent such Secured Hedge Provider was a Secured Hedge Provider on the Closing Date.

"**Secured Hedge Obligations**" means all debts, liabilities, obligations, covenants and duties of any Note Party to any Secured Hedge Provider under any Secured Hedge Agreement, so long as such Secured Hedge Provider is party to, and remains subject to, the Hedge Intercreditor Agreement.

"**Secured Hedge Provider**" means, any Approved Counterparty that is party to, and remains subject to, the Hedge Intercreditor Agreement, either by signing the Hedge Intercreditor Agreement directly or by entry into a Joinder Supplement (as defined in the Hedge Intercreditor Agreement) pursuant to the terms and conditions of the Hedge Intercreditor Agreement.

"**Secured Parties**" means, collectively, the Agents, the Holders, the Secured Hedge Providers and any other Person owed Obligations, and "Secured Party" means any of them individually.

"**Securities Account**" means any "securities account" as defined in the UCC.

"**Securities Act**" means the Securities Act of 1933, as amended from time to time, the rules and regulations promulgated thereunder and any successor statute.

"**Seller**" means Three Rivers Royalty II, LLC.

"**Series A Preferred Shares**" means the 44,100 shares of preferred stock designated as "Series A Preferred Stock" pursuant to Section 1 of the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**Series B Preferred Shares**" means the 50,000 shares of preferred stock designated as "Series B Preferred Stock" pursuant to Section 1 of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**Settlement Date**" means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be prepaid pursuant to <u>Section</u> <u>2.08</u> or <u>Section</u> <u>2.09</u> as the context requires.

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"**SOFR**" means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website.

"**SOFR Administrator**" means the NYFRB (or a successor administrator of the secured overnight financing rate).

"**SOFR Administrator's Website**" means the NYFRB's website, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"**Solvency Certificate**" means a Solvency Certificate of a Financial Officer substantially in the form of <u>Exhibit E</u>.

"**Solvent**" means, with respect to any Person on any date of determination, that on such date (a) the present fair saleable value of the property of such Person and its Subsidiaries on a consolidated basis will be greater than the amount that will be required to pay the probable liability of such Person and its Subsidiaries on a consolidated basis on their debts and other liabilities, as such debts and other liabilities become absolute and matured; (b) such Person and its Subsidiaries on a consolidated basis will be able to pay their debts and liabilities, direct, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (c) such Person and its Subsidiaries on a consolidated basis will not have unreasonably small capital with which to conduct the businesses in which they are engaged as such businesses are conducted as of such date and are proposed to be conducted following such date.

"**Specified Acquisition**" means the acquisition by WhiteHawk Income Marcellus LLC of the Acquired Assets on the Closing Date pursuant to and in accordance with the terms and conditions of the Specified Acquisition Agreement.

"**Specified Acquisition Agreement**" means that certain Purchase and Sale Agreement between Three Rivers Royalty II, LLC, a Colorado limited liability company, as seller (the "**Seller**") and WhiteHawk Income Marcellus LLC, a Delaware limited liability company, as buyer, dated as of and as in effect on September 17, 2024, together with all exhibits, annexes, schedules and other disclosure or other letters thereto, collectively.

"**Specified Equity Contribution**" means, at any time, without duplication, (a) the amount of cash proceeds received by the Issuer as cash capital contributions from one or more holders of the Equity Interests of the Issuer during the Cure Period or (b) the amount of proceeds received from the issuance of common Equity Interests issued by the Issuer (or, on terms reasonably satisfactory to the Requisite Holders, other forms of Equity Interests (it being understood that preferred Equity Interests in form and substance substantially the same as the Series A Preferred Shares or Series B Preferred Shares as of the Closing Date shall be deemed to be on terms reasonably satisfactory to the Requisite Holders)) to one or more of the holders of the Equity Interests of the Issuer during the Cure Period (in each case, other than in connection with an issuance by the Issuer of Disqualified Capital Stock), which is made for the purpose of curing a failure to comply with <u>Sections 7.01(a)</u> or <u>7.01(b)</u> that would otherwise occur, pursuant to the exercise of a cure right pursuant to <u>Section</u> <u>7.01(c)</u>.

"**Specified Equity Redemptions**" means redemptions by the Issuer of (a) its common Equity Interests in accordance with the Issuer's Organizational Documents in effect as of the date hereof and/or (b) its Series B Preferred Shares in accordance with the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024, in each case as in effect as of the date hereof.

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"**Specified Event**" as defined in <u>Section</u> <u>9.02</u>.

"**Specified Issuance Proceeds**" as defined in <u>Section</u> <u>7.04(e)</u>.

"**Specified RPs**" as defined in <u>Section</u> <u>7.04(d)</u>.

"**Strip Price**" means, at any time, (a) for each remaining month of the current calendar year, the monthly NYMEX Pricing for the remaining contracts in the current calendar year, (b) for each of the succeeding five complete calendar years, the monthly NYMEX Pricing, in each case, for each of the twelve months in each such calendar year, and (c) for the succeeding sixth complete calendar year, and for each calendar year thereafter, the annual monthly average of the NYMEX Pricing of the preceding fifth calendar year.

"**Subsidiary**" means, with respect to any Person (the "**Parent**") at any date, any other Person the accounts of which would be consolidated with those of the Parent in the Parent's consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other Person (a) of which Equity Interests representing more than 50% of the equity or more than 50% of the ordinary voting power (irrespective of whether or not at the time Equity Interests of any other class or classes of such Person shall have or might have voting power by reason of the happening of any contingency) or, in the case of a partnership, any general partnership interests are, as of such date, owned, controlled or held, or (b) the management decisions of which, as of such date, are otherwise controlled, in each case, directly, indirectly through one or more intermediaries, or both, by the Parent. Unless otherwise specified, each reference to "Subsidiary" means a Subsidiary of the Issuer.

"**Swap Agreement**" means any swap, forward, collar, future or derivative transaction or option or similar agreement, whether exchange traded, "over-the-counter" or otherwise (and for the avoidance of doubt, including on a prepaid or physically settled basis), involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions (including, but not limited to, as the context dictates, any agreement, contract or transaction that constitutes a "swap" within the meaning of Section 1a(47) of the Commodity Exchange Act); <u>provided</u> that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Issuer or its Restricted Subsidiaries shall be a Swap Agreement.

"**Swap Termination Value**" means, in respect of any one or more Swap Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Agreements, (a) for any date on or after the date such Swap Agreements have been closed out and termination value(s) determined in accordance therewith, such close-out and termination value(s) (including any unpaid amounts) and (b) for any date prior to the date referenced in <u>clause (a)</u>, the amount(s) determined as the mark-to-market value(s) for such Swap Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Agreements.

"**Synthetic Leases**" means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, treated as operating leases on the financial statements of the Person liable (whether contingently or otherwise) for the payment of rent thereunder and which were properly treated as indebtedness for borrowed money for purposes of United States federal income taxes, if the lessee in respect thereof is obligated to either purchase for an amount in excess of, or pay upon early termination an amount in excess of, 80% of the residual value of the Property subject to such operating lease upon expiration or early termination of such lease.

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"**Target Debt Balance**" means the aggregate principal amount of Notes as set forth in the following

table:

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| | |
|:---|:---|
|  Closing Date | $65000000.0 |
|  January 31, 2025 | $63375000.0 |
|  April 30, 2025 | $61750000.0 |
|  July 31, 2025 | $60125000.0 |
|  October 31, 2025 | $58500000.0 |
|  January 31, 2026 | $56875000.0 |
|  April 30, 2026 | $55250000.0 |
|  July 31, 2026 | $53625000.0 |
|  October 31, 2026 | $52000000.0 |
|  January 31, 2027 | $50375000.0 |
|  April 30, 2027 | $48750000.0 |
|  July 31, 2027 | $47125000.0 |
|  October 31, 2027 | $45500000.0 |
|  January 31, 2028 | $43875000.0 |
|  April 30, 2028 | $42250000.0 |
|  July 31, 2028 | $40625000.0 |
|  October 31, 2028 | $39000000.0 |
|  January 31, 2029 | $37375000.0 |
|  April 30, 2029 | $35750000.0 |
|  July 31, 2029 | $34125000.0 |

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"**Tax**" or "**Taxes**" means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

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"**Tax on the Overall Net Income**" of a Person means (a) Taxes imposed on or measured by net income (however denominated), franchise Tax and branch profits Tax, in each case, imposed on a Person by the jurisdiction (or any political subdivision thereof) in which a Person is organized or in which that Person's applicable principal office (and/or, in the case of a Holder, its Applicable Office) is located or in which that Person (and/or, in the case of a Holder, its Applicable Office) is deemed to be doing business, and (b) any Tax imposed as a result of a present or former connection between such Person and the jurisdiction imposing such Tax (other than connections arising from such Person having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Note Document, or sold or assigned an interest in any Note or Note Document).

"**Tax Related Person**" means, with respect to a pass-through entity, any Person who is a beneficial owner of an interest in such pass-through entity who is required to include in income amounts realized (whether or not distributed) by such pass-through entity. The foregoing shall be determined under United States federal income tax principles.

"**Term SOFR Determination Day**" has the meaning assigned to it under the definition of Term SOFR Reference Rate.

"**Term SOFR Rate**" means the three-month Term SOFR Reference Rate at approximately 12:00 p.m., New York time, two (2) U.S. Government Securities Business Days prior to the commencement of the applicable Interest Period, as such rate is published by the CME Term SOFR Administrator.

"**Term SOFR Reference Rate**" means, for any day and time (such day, the "**Term SOFR Determination Day**"), with respect to any Interest Period, the rate per annum determined by the Agent as the three-month forward-looking term rate based on SOFR. If by 5:00 p.m. (New York City time) on such Term SOFR Determination Day, the "Term SOFR Reference Rate" has not been published by the CME Term SOFR Administrator, then the Term SOFR Reference Rate for such Term SOFR Determination Day will be the Term SOFR Reference Rate as published in respect of the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate was published by the CME Term SOFR Administrator, so long as such first preceding Business Day is not more than three (3) Business Days prior to such Term SOFR Determination Day.

"**Total Net Debt**" means, as of any date of determination, (a) the aggregate amount of Debt of the Issuer and its Consolidated Restricted Subsidiaries outstanding on such date, determined on a consolidated basis in accordance with GAAP consisting only of Debt of the Issuer and its Restricted Subsidiaries for borrowed money, drawn but unreimbursed obligations under letters of credit, obligations in respect of Finance Leases and other obligations for borrowed money evidenced by bonds, bankers' acceptances, debentures, notes or other similar instruments (excluding, for the avoidance of doubt, Debt under surety or other performance bonds and similar instruments), <u>minus</u> (b) the aggregate amount of the Note Parties' Unrestricted Cash on hand as of such date in an aggregate amount not to exceed $10,000,000.

"**Total PDP PV-10 Value**" means, as of any date of determination, with respect to the Proved Developed Producing Reserves constituting Oil and Gas Properties of the Note Parties, the net present value of future cash flows (discounted at ten percent (10%) *per annum*) calculated in accordance with <u>Section</u> <u>1.05</u>.

"**Transaction Expenses**" means any fees or expenses incurred or paid by the Issuer or any of its Restricted Subsidiaries in connection with the Transactions, this Agreement and the other Note Documents and the transactions contemplated hereby.

"**Transactions**" means the transactions contemplated by the Note Documents to occur on or prior to the Closing Date, including (a) the execution, delivery and performance by the Note Parties of the Note Documents to which they are a party and the issuance of the Notes hereunder, (b) the consummation of the Specified Acquisition and the Refinancing and (c) the payment of related fees and expenses.

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"**U.S. Tax Compliance Certificate**" as defined in <u>Section</u> <u>2.14(e)(iii)</u>.

"**UCC**" means the Uniform Commercial Code as in effect in any applicable jurisdiction.

"**UK Financial Institution**" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"**UK Resolution Authority**" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"**United States Person**" has the meaning in Section 7701(a)(30) of the Internal Revenue Code.

"**Unrestricted Cash**" means cash or Cash Equivalents of the Issuer or any of its Restricted Subsidiaries that would not appear as "restricted" on a consolidated balance sheet of the Issuer or any of its Restricted Subsidiaries; <u>provided</u> that (a) cash or Cash Equivalents that would appear as "restricted" on a consolidated balance sheet of the Issuer or any of its Restricted Subsidiaries solely because such cash or Cash Equivalents are subject to a Control Agreement in favor of the Collateral Agent shall constitute Unrestricted Cash hereunder and (b) cash and Cash Equivalents shall be included in the determination of Unrestricted Cash only to the extent that such cash and Cash Equivalents are maintained in accounts subject to a Control Agreement as required hereunder.

"**Unrestricted Subsidiary**" means any Subsidiary of the Issuer designated as such on <u>Schedule</u><u> </u><u>4.13</u>. Notwithstanding anything to the contrary, there shall be no Unrestricted Subsidiaries under the Note Purchase Agreement or any other Note Document and the Issuer shall not be permitted to designate any Subsidiary as an Unrestricted Subsidiary.

"**U.S. Government Securities Business Day**" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"**USA PATRIOT Act**" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. 107-56), as amended.

"**Wholly-Owned Subsidiary**" means any Restricted Subsidiary of which all of the outstanding Equity Interests (other than any directors' qualifying shares mandated by applicable law), on a fully-diluted basis, are owned by the Issuer or one or more of the Wholly-Owned Subsidiaries or are owned by the Issuer and one or more of the Wholly-Owned Subsidiaries.

"**Withholding Agent**" means each of the Note Parties or the Agent.

"**Write-Down and Conversion Powers**" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers

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of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

**Section 1.03.** <u>Accounting</u><u> </u><u>Terms</u>. Except as otherwise expressly provided herein, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Note Document, and the Issuer or the Requisite Holders shall so request, the Requisite Holders and the Issuer shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; <u>provided</u> that, until so amended, such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and the Issuer shall provide to Agent and Holders reconciliation statements requested by Agent, acting at the written direction of the Requisite Holders, (reconciling the computations of such financial ratios and requirements from then-current GAAP computations to the computations under GAAP prior to such change) in connection therewith. Financial statements and other information required to be delivered by the Issuer to Holders pursuant to <u>Sections</u><u> </u><u>6.01(a)</u> and <u>6.01(b)</u> shall be prepared in accordance with GAAP as in effect at the time of such preparation. Subject to the foregoing, calculations in connection with the definitions, covenants and other provisions hereof shall utilize accounting principles and policies in conformity with those used to prepare the historical financial statements of the Issuer.

**Section 1.04.** <u>Interpretation, etc</u>. Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference. References herein to any Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an Exhibit, as the case may be, hereof unless otherwise specifically provided. References herein to a Schedule shall be considered a reference to such Schedule as of the Closing Date. The use herein of the word "include" or "including," when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not no limiting language (such as "without limitation" or "but not limited to" or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter. The use of the words "repay" and "prepay" and the words "repayment" and "prepayment" herein shall each have identical meanings hereunder. Unless otherwise indicated, any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein (it is understood that the phrase "any functionally equivalent term", when used with respect to another term, means a term with substantially the same meaning as such other term)). The use herein of the phrase "to the knowledge of" with respect to a Note Party shall be a reference to the knowledge of the Responsible Officers of the applicable Note Party. Unless otherwise specified, whenever any obligation required hereunder shall be stated to be due or performed on a day that is not a Business Day, such obligation shall be required on the immediately succeeding Business Day and such extension of time shall be included in the satisfaction of the obligation required hereunder (except as set forth in the definition of "Maturity Date"). The use of the phrase "subject to" or words of like import as used in connection with Liens permitted under <u>Section</u> <u>7.03</u> or otherwise and the permitted existence of any Liens permitted under <u>Section</u> <u>7.03</u> or any other Liens shall not be interpreted to expressly or impliedly subordinate any Liens granted in favor of the Collateral Agent or any other Secured Party as there is no intention to subordinate the Liens granted in favor of the Collateral Agent and the other Secured Parties. The words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any interest in any kind

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of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights. No provision of this Agreement or any other Note Document shall be interpreted or construed against any Person solely because such Person or its legal representative drafted such provision. The words "execution," "signed," "signature," and words of like import in any Note Document or any amendment or other modification thereof shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; <u>provided</u> that, notwithstanding anything herein to the contrary, the Agents are under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Agents pursuant to reasonable procedures approved by the Agents. All notices, approvals, consents, requests and any communications hereunder must be in writing, in English (<u>provided</u> that any such communication sent to an Agent hereunder must be delivered by electronic mail (if in such Agent's discretion), or in the form of a document that is signed manually or by way of a digital signature provided by DocuSign or AdobeSign (or such other digital signature provider as specified in writing to the Agents by the Issuer)). The Note Parties agree to assume all risks arising out of the use of using digital signatures and electronic methods to submit communications to an Agent, including without limitation the risk of the Agents acting on unauthorized instructions, and the risk of interception and misuse by third parties. Any reference in the Note Documents to the Agent or Collateral Agent exercising discretion or making determinations shall refer to the Agent or Collateral Agent exercising such discretion or making such determination at the direction of the Requisite Holders. Neither the Agent nor the Collateral Agent shall have any obligation to act in the absence of such direction.

**Section 1.05.** <u>Calculations</u><u> </u><u>of</u><u> </u><u>Total</u><u> </u><u>PDP</u><u> </u><u>PV-10</u><u> </u><u>Value</u>. Notwithstanding anything to the contrary contained herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for all calculations of Total PDP PV-10 Value hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) appropriate deductions shall be made for severance and ad valorem taxes, obligations and anticipated payments in respect of minimum volume commitments, capital expenditures and for operating, gathering, transportation and marketing costs required for the development, operation, production and sale of such oil and gas properties (including any contractually specified cost increases or escalators), plugging and abandonment (and other asset retirement obligations) or any other expenses in respect of such Oil and Gas properties (including expense incurred after the end of the expected economic lives of such Oil and Gas properties or contractually required increases in or escalators for expenses) in respect of such oil and gas properties,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without prejudice to <u>Section</u> <u>6.12(c)(ii)</u>, appropriate deductions shall be made for the benefits associated with Proved Developed Producing Reserves constituting Oil and Gas Properties of the Note Parties for which reasonably satisfactory title information as determined by the Requisite Holders has not been provided to the Requisite Holders on at least 90% of the cash flows attributable to such Proved Developed Producing Reserves,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the pricing assumptions used in determining Total PDP PV-10 Value for any Oil and Gas properties shall be based upon the Strip Price as described in <u>clause (c)</u> below, to reflect the Note Parties' commodity Swap Agreements with Approved Counterparties then in effect so that the expected cash flows with respect to such Swap Agreements are included in the determination of Total PDP PV-10 Value, without duplication with the cash flows from the production subject to such Swap Agreements (it being understood that deferred premiums in respect of such Swap Agreements shall be deducted from such expected cash flows),

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the cash flows derived from the pricing assumptions set forth in <u>clause (ii)</u> above shall be further adjusted for basis, quality and gravity differentials based on historical differentials and go-forward expectations,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the methodology applied towards any such calculation shall be consistent with, as reasonably determined by the Requisite Holders, the methodology applied in the Acquired Assets Reserve Report and the Initial Reserve Report, including without limitation the methodology applied to allocate fixed platform expenses to various reserve categories, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) notwithstanding the foregoing, wells shall only be included in the determination of Total PDP PV-10 Value to the extent that the Issuer receives revenue in the form of cash or Cash Equivalents pursuant to its ownership interest in such wells;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any such calculation, other than any calculation made as of the last day of any Fiscal Quarter with respect to <u>clause</u> <u>(i)</u> and <u>clause</u><u> </u><u>(iii)</u> below, shall be calculated on a pro forma basis for (i) the roll-off of production since the date of the most recently delivered Reserve Report, (ii) any change in the category of any Oil and Gas Property to another category of Oil and Gas Property (e.g., any "proved undeveloped reserves" becoming "proved developed reserves") and (iii) any disposition or acquisition of Oil and Gas Properties of the Note Parties constituting Proved Developed Producing Reserves, in each case, occurring or consummated by the Note Parties following the "as of" date of the Reserve Report most recently delivered by the Issuer pursuant to <u>Section</u> <u>6.11</u> (<u>provided</u> that, in the case of <u>clause (ii)</u> and dispositions or acquisitions under <u>clause (iii)</u> above, the Requisite Holders shall have received, and such update shall be based on, updated reserve engineering projections, reasonably acceptable to the Requisite Holders, evaluating the Proved Developed Producing Reserves attributable to the Oil and Gas Properties subject thereto ("**Specified Reserve Updates**")) but prior to the date on which Total PDP PV-10 Value is being calculated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any calculation of Total PDP PV-10 Value (i) on any date other than the last day of any Fiscal Quarter shall be made using (x) the information set forth in the Reserve Report most recently delivered by the Issuer pursuant to <u>Section</u> <u>6.11</u> (as supplemented by any Specified Reserve Updates) and with an "as of" date that is such date of determination and (y) a Strip Price determined as the Strip Price for the date that is five (5) Business Days prior to such date of determination and (ii) on the last day of any Fiscal Quarter shall be made using (x) the information set forth in the Reserve Report with an "as of" date that is the same as such date and shall be based on reserve categories of the Oil and Gas properties on such date, and (y) a Strip Price determined as of the date that is forty (40) days after the end of the Fiscal Quarter to which the applicable corresponding certificate delivered pursuant to <u>Section</u> <u>6.01(c)</u> pertains; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) within ten (10) Business Days of receiving an Asset Coverage Ratio certificate provided pursuant to <u>Section</u> <u>6.01(c)</u> or <u>Section</u> <u>6.01(u)</u>, the Requisite Holders may, in their sole discretion, (x) request additional information with respect to such Asset Coverage Ratio certificate, its related Reserve Report and/or (y) deliver written notice to the Issuer that the Requisite Holders do not agree with the information set forth in such Reserve Report, Specified Reserve Updates and/or the Issuer's calculation of the Asset Coverage Ratio (including any component thereof). Upon delivery of such written notice by the Requisite Holders, the Issuer and the Requisite Holders shall promptly engage in good faith discussions to come to an agreement with respect to such Reserve Report, Specified Reserve Updates and/or such calculation of the Asset Coverage Ratio (including any component thereof). If the Issuer and the Requisite Holders have not resolved any such disagreements within five (5) Business Days (or such longer period as is mutually agreeable to the Issuer and the Requisite Holders),

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Requisite Holders shall have the right to elect within ten (10) Business Days (or such longer period as is mutually agreeable to the Issuer and the Requisite Holders) following the initial five (5) Business Day period to have an Approved Petroleum Engineer selected by the Requisite Holders (a "**Second Engineer**") audit the Reserve Report, Specified Reserve Updates and related calculations delivered by the Issuer; <u>provided</u> that such Second Engineer's audit and preparation of a revised Reserve Report and updated calculations of the Asset Coverage Ratio shall be completed within thirty (30) days of delivery of the Requisite Holder's notice of dispute (or such later date as is mutually agreeable to the Issuer and the Requisite Holders). The Issuer and the Requisite Holders will endeavor that such determination be provided as soon as possible (and agree to promptly provide such information as may be requested by the Second Engineer in connection with such determination). The Second Engineer's determination of fact as to such matters and as to the Total PDP PV-10 Value that will be used in the calculation of Asset Coverage Ratio shall be binding, absent manifest error. If the Second Engineer's calculation of Total PDP PV-10 Value is (x)(1) higher than or (2) lower by less than ten percent (10%) of, the disputed Reserve Report's calculation of Total PDP PV-10 Value, then the fees and expenses of the Second Engineer with respect to such applicable dispute shall be paid by the Requisite Holders and (y) lower by ten percent (10%) or greater of the disputed Reserve Report's calculation of Total PDP PV-10 Value, the fees and expenses of the Second Engineer with respect to such applicable dispute shall be paid by the Issuer, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event the Requisite Holders have not elected to have a Second Engineer audit the Reserve Report, Specified Reserve Updates and related calculations delivered by the Issuer in accordance with <u>clause (i)</u> above, the Issuer and the Requisite Holders shall refer such matters to the Approved Petroleum Engineer that most recently prepared a Reserve Report to make a determination (which shall be binding, absent manifest error) of fact as to such matters and as to the Total PDP PV-10 Value that will be used in the calculation of Asset Coverage Ratio. The Issuer and the Requisite Holders will endeavor that such determination be provided as soon as possible (and agree to promptly provide such information as may be requested by such Approved Petroleum Engineer in connection with such determination), and in any event within thirty (30) days of submission of such request to such Approved Petroleum Engineer (or such later date as is mutually agreeable to the Issuer and the Requisite Holders).

During any such period of determination by the applicable Second Engineer or Approved Petroleum Engineer, as applicable (x) there shall be no Default or Event of Default arising from any non-compliance with <u>Section</u> <u>7.01(b)</u> for the applicable test date and (y) no event or transaction that requires the calculation of, and compliance with, an Asset Coverage Ratio on a Pro Forma Basis, Distribution PF Basis or otherwise shall be entered into or consummated by the Issuer and its Restricted Subsidiaries. For the avoidance of doubt, if the final determination by such Second Engineer or Approved Petroleum Engineer, as applicable, would result in a finding that would cause the Issuer to fail to be in compliance with <u>Section</u> <u>7.01(b)</u>, all rights of the Issuer under <u>Section</u> <u>7.01(c)</u> shall apply.

**Section 1.06.** <u>Free</u><u> </u><u>Cash</u> <u>Flow Distributions</u><u> </u><u>and Prepayments</u><u> </u><u>Spreadsheet</u>. For clarity, <u>Appendix</u><u> </u><u>D</u> contains an illustrative example of the calculations set forth in <u>Section</u> <u>2.09(a)</u>, <u>Section</u> <u>7.04(e)</u> and <u>Section</u> <u>7.05(h)</u> and the definitions of "Adjusted Cash Flow from Operating Activities", "Cash Flow From Operating Activities", "Distributable Free Cash Flow", "Distribution PF Basis", "Free Cash Flow (Back)", "Free Cash Flow (Forward)", "Free Cash Flow Utilization", and "Prior Period Adjustment" and the parties hereto agree that the principles and methodologies with respect to the calculations set forth in <u>Appendix D</u> shall, absent manifest error, govern with respect thereto.

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**ARTICLE II** 

**PURCHASE AND SALE OF NOTES** 

**Section 2.01.** <u>Note</u> <u>Purchase</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>The Notes</u>. Subject to the terms and conditions hereof, on the Closing Date, Issuer shall issue to each Holder, and each Holder shall purchase from Issuer (so long as all conditions precedent required hereby shall have then been satisfied or waived), a Note denominated in Dollars in an aggregate principal amount equal to such Holder's Pro Rata Share of $65,000,000 (the "**Notes**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notes purchased under this <u>Section</u> <u>2.01</u> and repaid or prepaid may not be resold, repurchased or reborrowed. In addition, each Holder's Commitment shall be reduced in full and immediately terminated upon giving effect to the purchases of the Notes on the Closing Date.

**Section 2.02.** <u>The Notes; Purchases, Conversions and Continuations of Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the absence of manifest error, the obligation of Issuer to repay to each Holder the aggregate amount of all Notes held by such Holder, together with interest accruing in connection therewith, shall be evidenced by the Notes made by Issuer payable to such Holder or its registered assigns with appropriate insertions. Interest on each Note shall accrue and be due and payable as provided herein or in the applicable Note. Each Note shall be due and payable as provided herein and shall be due and payable in full on the Maturity Date. Issuer may not issue, repay, and reissue Notes hereunder or under the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The failure of any Holder to purchase any Note to be purchased by it as part of any purchase of Notes pursuant to <u>Section</u> <u>2.01</u> shall not relieve any other Holder of its obligation, if any, hereunder to purchase its Notes on the date of such Note Purchase, but no Holder shall be responsible for the failure of any other Holder to purchase the Notes to be purchased by such other Holder on the date of any Purchase.

**Section 2.03.** <u>Requests for Notes</u>. Issuer must give to Agent written or electronic notice of any requested Note Purchase of Notes to be issued to, and purchased by, Holders. Each such notice constitutes a "**Note Purchase Notice**" hereunder and must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) specify the aggregate amount of any such Note Purchase and the date on which such Notes are to be purchased; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be received by Agent no later than 12:00 p.m., New York, New York time, ten (10) Business Days prior to the date on which any such Notes are to be purchased (or such earlier date as the Holders may agree (and have notified Agent) in their sole discretion), which Note Purchase Notice shall (i) be sent by the Agent to the Holders no later than 12:00 p.m., New York, New York time one Business Day following receipt by the Agent thereof and (ii) specify the accounts in to which the funds received by Agent on the Closing Date shall be disbursed (which may be in the form of the Flow of Funds).

Each such written request must be made in the form and substance of the Note Purchase Notice, duly completed. Upon receipt of any such Note Purchase Notice, Agent shall give each Holder prompt notice of the terms thereof. If all conditions precedent to such new Notes have been met (or waived), each Holder will on the date requested promptly remit to Agent, at Agent's Account, the amount of such Holder's new Note in immediately available funds, and upon receipt of all such funds, the Agent shall promptly make such funds available to the Issuer and the Issuer will deliver such Notes to the counsel for the Holders who shall promptly make such Notes available to each Holder. The failure of any Holder to purchase any Note hereunder shall not relieve any other Holder of its obligation hereunder, if any, to purchase its Note, but no Holder shall be responsible for the failure of any other Holder to purchase any Note hereunder.

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**Section 2.04.** <u>Use of Proceeds</u>. The proceeds of the Notes shall be used (a) to pay a portion of the purchase price for the Specified Acquisition and (b)(i) the repayment in full of the Existing Credit Facility (the "<u>Refinancing</u>") and (ii) the redemption of Series A Preferred Shares and (c) for general corporate purposes, including to pay the Transaction Expenses.

**Section 2.05.** <u>Evidence of Debt; Register; Holders' Books and Records; Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Holders</u><u>'</u> <u>Evidence of Debt</u>. Each Holder shall maintain in its internal records an account or accounts evidencing the Obligations of the Issuer to such Holder, including the amounts of the Notes held by such Holder and each repayment and prepayment in respect thereof. The failure to make any such recordation, or any error in such recordation, shall not affect any Obligations in respect of any applicable Notes. In the event of any inconsistency between the Register and any Holder's records, the recordations in the Register shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Register</u>. Agent shall maintain at Agent's Office a register for the recordation of the names and addresses of the Holders and principal amounts (and stated interest) of the Notes owing to, each Holder pursuant to the terms hereof from time to time (the "**Register**"). The Register shall be available for inspection by the Issuer and any Holder at any reasonable time and from time to time upon reasonable prior notice. The entries in the Register shall be conclusive and binding on the Note Parties, the Agent and each Holder, absent manifest error; <u>provided</u> that, failure to make any such recordation, or any error in such recordation, shall not affect the Note Parties' Obligations in respect of any Note. The Issuer, the Agent and the Holders shall treat each Person in whose name any Note shall be registered as the owner and the Holder thereof for all purposes hereof. The Issuer hereby designates the entity serving as Agent to serve as the Issuer's non-fiduciary agent solely for purposes of maintaining the Register as provided in this <u>Section</u> <u>2.05</u>, and the Agent shall be entitled to all of the rights, privileges and immunities afforded to it hereunder in the performance of such duties. Notwithstanding the foregoing, the Agent shall not, or be deemed to, act hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

**Section 2.06.** <u>Interest;</u><u> </u><u>Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Interest</u>. Each Note shall at all times bear interest at a rate equal to the Applicable Margin then in effect (as such amount may be increased pursuant to <u>Section</u> <u>2.06(c)</u>), paid in cash ("**Interest**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Interest Payment Dates</u>. Interest on each Note shall be due and payable on each Interest Payment Date to Holders of record in the Register on such Interest Payment Date; <u>provided</u> that, if Interest on any Note is required to be paid on any Settlement Date pursuant to <u>Section</u> <u>2.08</u> or <u>Section</u> <u>2.09</u>, and such Settlement Date is not an Interest Payment Date, then the amount of Interest due and payable on the next succeeding Interest Payment Date will be reduced by the amount of interest accrued to such Settlement Date and required to be paid (and is actually paid) on such Settlement Date pursuant to such <u>Section</u> <u>2.08</u> or <u>Section</u> <u>2.09</u>. All interest payable hereunder shall be computed on the basis of a year of three hundred sixty (360) days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of three hundred sixty-five (365) days (or three hundred sixty-six (366) days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Default</u><u> </u><u>Interest</u>. Notwithstanding the foregoing, (1) automatically upon the occurrence and during the continuance of an Event of Default arising under <u>Section</u> <u>9.01(a)</u>, <u>Section</u> <u>9.01(b)</u>, <u>Section</u> <u>9.01(h)</u> or <u>Section</u> <u>9.01(i)</u> and (2) if any other Event of Default has occurred and is continuing, then if the Requisite Holders so elect by written notice to the Issuer (with a copy to the Agent), the principal amount of all Notes outstanding and, to the extent permitted by applicable law, any due and unpaid interest

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payments on the Notes or any unpaid fees or other unpaid amounts owed hereunder (other than default interest occurring under this <u>Section</u> <u>2.06(c)</u>), shall, commencing on the date of occurrence of the applicable Event of Default, bear interest (including post-petition interest in any proceeding under the Code or other applicable bankruptcy laws, whether or not allowed in such a proceeding) payable in cash on demand at a rate that is two percent (2.0%) per annum in excess of the interest rate otherwise payable hereunder with respect to the Notes to the date of payment to the Agent. Payment or acceptance of the increased rates of interest provided for in this <u>Section</u> <u>2.06(c)</u> is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Agents or any Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Fees</u>. Issuer will pay to each of the Agents and EIG for their own respective accounts, the fees as set forth in the Agent Fee Letter and the Fee Letter, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Calculations</u>. The Agent shall promptly (but in any event no later than three (3) Business Days to the Issuer and two (2) Business Days to the Holders prior to any Interest Payment Date or the date of any other amount payable under this <u>Section</u> <u>2.06</u>) notify the Issuer and the Holders of the effective date and the amount of each Interest, fee or other payment under this <u>Section</u> <u>2.06</u>. Each determination of an interest rate, interest payment amount or fee payment amount by the Agent pursuant to any provision of this Agreement shall be conclusive and binding on the Issuer and the Holders in the absence of manifest error.

**Section 2.07.** <u>Repayment of</u><u> </u><u>Notes</u>. If any principal or interest amount payable under the Notes remains outstanding on the Maturity Date, such amount will be paid in full by the Issuer to the Agent on behalf of the Holders in immediately available funds on the Maturity Date, together with any amounts required to be paid hereunder, including pursuant to <u>Section</u> <u>2.06</u>.

**Section 2.08.** <u>Voluntary Prepayments</u>. The Issuer may prepay the Notes on any Business Day in whole or in part (together with any amounts due pursuant to <u>Section</u> <u>2.06</u> and <u>Section</u> <u>2.11(g)</u>) in an aggregate minimum principal amount equal to (a) if being paid in whole, the Obligations and (b) if being paid in part, (A) $1,000,000 and integral multiples of $500,000 in excess of that amount or (B) in an amount equal to the difference of the aggregate outstanding principal amount of the Notes on the date of such prepayment and the immediately subsequent Target Debt Balance. All such prepayments shall be made upon not less than three (3) Business Days' prior written notice, in each case given to Agent by 12:00 p.m. (New York, New York time) on the date required, which, upon receipt by the Agent, shall be promptly delivered to the Holders. Upon the giving of any such notice, the principal amount of the Notes specified in such notice shall become due and payable on the prepayment date specified therein. Any notice of prepayment described above may provide that such prepayment is conditioned upon the satisfaction of one of more conditions precedent. Any such voluntary prepayment shall be applied as specified in <u>Section</u> <u>2.10</u>.

**Section 2.09.** <u>Mandatory</u><u> </u><u>Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>CF</u><u> </u><u>Sweep</u><u> </u><u>Dates</u>. On each "CF Sweep Date" as set forth in <u>Appendix</u><u> </u><u>C</u>, commencing with January 31, 2025, the Issuer shall prepay the Notes in an aggregate principal amount equal to the lesser of (i) the difference between (A) the aggregate outstanding principal amount of Notes and (B) the then current Target Debt Balance, in each case as of the date of such prepayment and (ii) Liquidity, calculated on a Distribution PF Basis, in excess of the Minimum Liquidity Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Casualty Events</u>. Upon receipt by the Issuer or any of its Affiliates of any Net Casualty Event Proceeds in excess of $500,000 for any individual Casualty Event or series of related Casualty Events or $1,000,000 in the aggregate, the Issuer shall within three (3) Business Days after the date of receipt of such Net Casualty Event Proceeds prepay the Notes in an aggregate principal amount equal to one hundred

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percent (100%) of the Net Casualty Event Proceeds and/or, so (A) long as no Default or Event of Default has occurred and is continuing and (B) both (I) as of the date of delivery of the certificate of the Responsible Officer of the Issuer described in the proviso below and (II) as of the date of reinvestment of Net Casualty Event Proceeds (as evidenced with a certificate of the Responsible Officer as of the date of such reinvestment delivered by the Issuer to the Agent), the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00, in each case on a Pro Forma Basis, reinvest such Net Casualty Event Proceeds in make Investments in Oil & Gas Properties or Equity Interests of any entity with no material assets other than Oil and Gas Properties; <u>provided</u> <u>further</u> that promptly following any determination by the Issuer of an election to invest Net Casualty Event Proceeds pursuant to this <u>Section</u> <u>2.09(b)</u>, the Issuer shall, within thirty (30) days after the receipt of such Net Casualty Event Proceeds, deliver to the Agent a certificate of a Responsible Officer of the Issuer specifying that the Issuer intends to reinvest such Net Casualty Event Proceeds; <u>provided</u> that, if any such Net Casualty Event Proceeds are not reinvested within three-hundred sixty (360) days, the Issuer shall prepay the Notes in an amount equal to the amount of any Net Casualty Event Proceeds from Casualty Event(s) that are not applied or (re-)invested as set forth in this <u>Section</u> <u>2.09(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Issuance of Debt</u>. Upon receipt by or on behalf of any Note Party or any of their Subsidiaries of any cash proceeds from the incurrence of any Debt (other than Debt that is permitted hereunder) by such Person, the Issuer shall prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of such proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Asset Sales</u>. Upon receipt by the Issuer or any of its Affiliates of any Net Asset Sale Proceeds in excess of $1,000,000 for any non-ordinary course individual Asset Sale or series of related Asset Sales or $2,000,000 in the aggregate, the Issuer shall (i) within three (3) Business Days after the date of receipt of such Net Asset Sale Proceeds prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of the Net Asset Sale Proceeds and/or, so (A) long as no Default or Event of Default has occurred and is continuing and (B) both (I) as of the date of delivery of the certificate of the Responsible Officer of the Issuer described in the proviso below and (II) as of the date of reinvestment of Net Asset Sale Proceeds (as evidenced with a certificate of the Responsible Officer as of the date of such reinvestment delivered by the Issuer to the Agent), the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00, in each case on a Pro Forma Basis, reinvest such Net Asset Sale Proceeds in make Investments in Oil & Gas Properties or Equity Interests of any entity with no material assets other than Oil and Gas Properties; <u>provided</u><u> </u><u>further</u> that promptly following any determination by the Issuer of an election to invest Net Asset Sale Proceeds pursuant to this <u>Section</u> <u>2.09(d)</u>, the Issuer shall, within thirty (30) days after the receipt of such Net Asset Sale Proceeds, deliver to the Agent a certificate of a Responsible Officer of the Issuer specifying that the Issuer intends to reinvest such Net Asset Sale Proceeds; <u>provided</u> that, if any such Net Asset Sale Proceeds are not reinvested within three-hundred sixty (360) days, the Issuer shall prepay the Notes in an amount equal to the amount of any Net Asset Sale Proceeds from Asset Sale(s) that are not applied or (re-)invested as set forth in this <u>Section</u> <u>2.09(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Specified Equity Contribution</u>. Not later than five (5) Business Days following receipt by the Issuer of any Cure Amount in accordance with <u>Section</u> <u>7.01(c)</u>, the Issuer shall prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of any such Cure Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Prepayment Notice</u>. All prepayments made in accordance with <u>Section</u> <u>2.09(b)</u> through <u>Section</u> <u>2.09(e)</u> shall be made upon not less than eight (8) Business Days' prior written notice (or such shorter period as may be consented to by the Requisite Holders, <u>provided</u>, that the time period for any right for the Holders to waive such prepayment pursuant to <u>Section</u> <u>2.09(g)</u> shall be reduced accordingly), which notice shall be sent by the Agent to the Holders one (1) Business Day following receipt by the Agent thereof. Each such notice shall include the calculation of the amount of the applicable proceeds giving rise to the

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prepayment, as applicable, and refer to the section under this Agreement relating to such prepayment. In connection with any prepayment required under <u>Section</u> <u>2.09(b)</u> through <u>Section</u> <u>2.09(e)</u>, in the event that the Issuer shall subsequently determine that the actual amount received exceeded the amount set forth in such notice, the Issuer shall promptly make an additional prepayment of the Notes in an amount equal to such excess, and the Issuer shall concurrently therewith deliver to Agent a notice of prepayment demonstrating the calculation of such excess. Any notice of prepayment may provide that such prepayment is conditioned upon the satisfaction of one or more conditions precedent. Subject to <u>Section</u> <u>2.09(g)</u>, the Issuer shall prepay the Notes on the date set forth in the applicable prepayment notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Holder</u><u> </u><u>Right</u><u> </u><u>to Waive</u>. Notwithstanding anything in this Agreement to the contrary, each Holder, in its sole discretion, may, but is not obligated to, waive the Issuer's requirements to make any prepayments pursuant to <u>Section</u> <u>2.09(b)</u> through <u>Section</u> <u>2.09(e)</u> with respect to such Holder's Pro Rata Share of such prepayment. Upon the dates set forth in <u>Section</u> <u>2.09</u> for the delivery of any such prepayment notice, Issuer shall promptly notify the Agent of the amount that is available to prepay the Notes. Promptly after the date of receipt of such notice, the Agent shall provide written notice (the "**First Offer**") to the Holders of the amount available to prepay the Notes. Any Holder declining such prepayment (a "**Declining Holder**") shall give written notice thereof to the Agent by 10:00 a.m. New York, New York time no later than three (3) Business Days prior to such prepayment date. The Agent shall promptly provide written notice (the "**Second Offer**") to the Holders other than the Declining Holders (such Holders being the "**Accepting Holders**") of the additional amount available (due to such Declining Holders' declining such prepayment) to prepay Notes owing to such Accepting Holders, such available amount to be allocated on a *pro rata* basis among the Accepting Holders that accept the Second Offer. Any Holders declining prepayment pursuant to such Second Offer shall give written notice thereof to the Agent by 10:00 a.m. New York, New York time one (1) Business Day prior to such prepayment date, and Agent shall promptly notify Issuer of the aggregate amount of the prepayment. Amounts remaining after the allocation of accepted amounts with respect to the First Offer and the Second Offer to Accepting Holders shall be retained by Issuer or the relevant Subsidiary for working capital and general corporate purposes, subject to the other covenants contained in this Agreement. For the avoidance of doubt, any Holder or Accepting Holder that does not deliver a notice declining the applicable payment by the dates and times set forth above shall be deemed to have accepted such prepayment offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Redemption</u><u> </u><u>Offer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon the occurrence of the sale of all or substantially all the properties of the Note Parties and their Restricted Subsidiaries, taken as a whole, or a Change in Control, the Issuer shall make an offer to repurchase all the Holders' Notes pursuant to an irrevocable offer ("**Redemption Offer**") on the terms set forth in this <u>Section</u> <u>2.09(h)</u>; <u>provided</u> that such notice may be conditioned on the consummation of the transactions described in such notice. In the Redemption Offer, Issuer will (A) offer to make a cash payment (a "**Redemption Payment**") equal to the amount that would have been payable with respect to such repurchased Notes had the Issuer prepaid such Notes pursuant to <u>Section</u> <u>2.08</u> <u>plus</u>, for the avoidance of doubt, the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or the Prepayment Fee, as applicable, in each case pursuant to <u>Section</u> <u>2.11(g)</u> and (B) set forth the date for such purchase, which shall be the date when such transaction is consummated, in which case it shall be the next Business Day thereafter (the "**Redemption Purchase Date**"). No less than three (3) Business Days prior to the Redemption Purchase Date, the Issuer will send an irrevocable written notice to each Holder (<u>provided</u> that such notice may be conditioned on the consummation of the transactions described in such notice), with a copy to the Agent, describing the transaction or transactions that constitute the sale of all or substantially all the properties of the Note Parties and their Restricted Subsidiaries, taken as a whole, or a Change of Control (as applicable) and stating:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) that the Redemption Offer is being made pursuant to this <u>Section</u> <u>2.09(h)</u> and that the Issuer is repurchasing all outstanding Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the purchase price and the Redemption Purchase Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) that, unless the Issuer defaults in the payment of the Redemption Payment, all Notes will cease to accrue interest after the Redemption Purchase Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Issuer will, no later than 12:00 p.m. (New York, New York time) on the Redemption Purchase Date deposit with the Agent an amount equal to the Redemption Payment in respect of all Notes outstanding.

Upon the giving of any such notice, the principal amount of all of the Holders' Notes shall become due and payable on the Redemption Purchase Date (<u>provided</u> that any notice described above may provide that such Redemption Payment is conditioned upon the satisfaction of one or more conditions precedent). Upon receipt of the Redemption Payment from Issuer, the Agent will promptly wire transfer (based on each Holder's wire transfer instructions, which each Holder shall have provided to the Agent (along with completion of Agent's funds transfer requirements) at least five (5) Business Days prior to the Redemption Purchase Date) to each Holder of Notes the Redemption Payment for such Notes. Any Note paid in full will cease to accrue interest on and after the Redemption Purchase Date, unless the Issuer defaults in making the Redemption Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding any provision to the contrary, in lieu of the Issuer making a Redemption Offer (A) a third party may make the Redemption Offer in the manner, at the time and otherwise in compliance with the requirements set forth in <u>Section</u> <u>2.09(f)</u> hereof applicable to a Redemption Offer made by the Issuer and purchases all Notes outstanding, or (B) in connection with or in contemplation of the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, the Issuer may make an irrevocable offer to purchase (an "**Alternate Offer**") all Notes outstanding at a cash price equal to or higher than the Redemption Payment and purchase all Notes outstanding in accordance with the terms of the Alternate Offer prior to the time when the payment by the Issuer would be required pursuant to a Redemption Offer. Notwithstanding anything to the contrary contained herein, a Redemption Offer or Alternate Offer may be made in advance of the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, conditioned upon the consummation of such sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, if a definitive agreement is in place for the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control at the time the Redemption Offer or Alternate Offer is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Agreement, the Issuer will comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations described in this Agreement by virtue thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) For the avoidance of doubt, the Issuer may, at its option, prepay all of the Notes pursuant to the provisions of <u>Section</u> <u>2.08</u> (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or the Prepayment Fee, as applicable, due thereunder) in lieu of making a Redemption Offer pursuant to this <u>Section</u> <u>2.09(h)</u>.

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**Section 2.10.** <u>Application of Payments</u>. Any payment of any Note made pursuant to <u>Sections</u> <u>2.07</u>, <u>2.08</u>, or <u>2.09</u> shall be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to each of the Agent and Collateral Agent in their capacities as such and Agent-related Indemnitees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations, constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section</u> <u>11.03</u> or the other Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes being repaid or prepaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section</u> <u>2.11(g)</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section</u> <u>2.11(g)</u> resulting from the prepayment of principal under <u>clause (e)</u> below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>fifth</u>, *pro rata* to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Issuer at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>sixth</u>, pro rata to any other Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Issuer or as otherwise required by any Governmental Requirement.

**Section 2.11.** <u>General</u><u> </u><u>Provisions</u> <u>Regarding</u><u> </u><u>Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments by the Issuer of principal, interest, fees and other Obligations shall be made in Dollars in same day funds without recoupment, setoff, counterclaim or other defense, and delivered to Agent not later than 1:00 p.m. (New York, New York time) on the date due to Agent's Account for the account of the Holders; the Agent shall give the Holders prompt written notice of amounts due, but not received by the Agent, on such due date and at such time. Funds received by Agent after that time on such due date may be deemed by the Requisite Holders to have been paid by the Issuer on the next Business Day for the purposes of calculating interest thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All prepayments in respect of the principal amount of any Note shall be accompanied by payment of accrued interest on the principal amount being repaid or prepaid and other amounts due and payable thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Agent shall promptly distribute by wire transfer to each Holder to the account indicated in writing to Agent by each applicable Holder, such Holder's applicable Pro Rata Share of all payments and prepayments of principal and interest due hereunder, together with all other amounts due thereto, including all fees payable with respect thereto, to the extent received by Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Whenever any payment to be made hereunder shall be stated to be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Agent may, at the direction of the Requisite Holders, deem any payment by or on behalf of the Issuer hereunder that is not made in same day funds prior to 1:00 p.m. (New York, New York time) to be a non-conforming payment. Any such payment may be deemed by the Requisite Holders to have been received by Agent on the later of (i) the time such funds become available funds and (ii) the applicable next Business Day. Interest and fees shall continue to accrue on any principal as to which a non-conforming payment is made until such funds become available funds (but in no event less than the period from the date of such payment to the next succeeding applicable Business Day) at the applicable rate determined pursuant to <u>Section</u> <u>2.06(a)</u> from the date such amount was due and payable until the date such amount is paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If an Event of Default shall have occurred and not otherwise been waived, all payments or proceeds received by Agent hereunder in respect of any of the Obligations shall be applied <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Agent, the Collateral Agent and Agent-related Indemnitees (including any costs and expenses related to foreclosure or realization upon, or protecting, Collateral) in its capacity as such, <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section</u> <u>11.03</u> or the other Note Documents, <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes, <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section</u> <u>2.11(g)</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section</u> <u>2.11(g)</u> resulting from the prepayment of principal under clause fifth below), <u>fifth</u>, pro rata to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Issuer at such time, <u>sixth</u>, pro rata to any other Obligations, and <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Issuer or as otherwise required by any Governmental Requirement*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Make-Whole Amount; Prepayment Fee</u>. Upon any prepayment of the Notes (except for any prepayment made pursuant to <u>Section</u> <u>2.07</u> or <u>Section</u> <u>2.09(a)</u> or <u>Section</u> <u>2.09(b)</u> or <u>Section</u> <u>2.09(e)</u>), whether such prepayment occurs as a result of an acceleration of the Notes pursuant to <u>Section</u> <u>9.01</u> (whether automatic or optional acceleration) following an Event of Default, at the Issuer's option or otherwise), the Issuer shall make an additional payment to the Agent for the account of the Holders in an aggregate amount equal to (i) if such prepayment or acceleration occurs on or prior to September 17, 2026 (the "**Make-Whole Expiry Date**"), the Make-Whole Amount determined for the Settlement Date with respect to such principal amount <u>plus</u> 2.0% of the principal of such prepaid or accelerated amount <u>plus</u> any accrued and unpaid interest and other amounts due and payable thereon or (ii) if such prepayment or acceleration occurs thereafter, a fee (the "**Prepayment Fee**"), in an amount equal to the product of (A) if such prepayment or acceleration occurs following the Make-Whole Expiry Date and on or prior to September 17, 2027, 2.00% of the principal of such prepaid or accelerated amount and (B) if such prepayment occurs after September 17, 2027, 0.00% of such prepaid or accelerated amount, <u>plus</u>, in each case for clause (ii), any accrued and unpaid interest and other amounts due and payable thereon. The Agent shall have no obligation to calculate or verify the calculations of the Make-Whole Amount or Prepayment Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Presentment of the Notes by the Holder is not a condition to receipt of payment on the Maturity Date or any earlier redemption.

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**Section 2.12.** <u>Ratable</u><u> </u><u>Sharing</u>. The Holders hereby agree among themselves that if any of them shall, whether by voluntary payment (other than a voluntary prepayment of Notes purchased and applied in accordance with the terms hereof), through the exercise of any right of set off or banker's lien, by counterclaim or cross action or by the enforcement of any right under the Note Documents or otherwise, or as adequate protection of a deposit treated as cash collateral under the Code, receive payment or reduction of a proportion of the aggregate amount of principal, interest, fees and other amounts then due and owing to such Holder hereunder or under the other Note Documents (collectively, the "**Aggregate Amounts Due**" to such Holder) which is greater than the proportion received by any other Holder in respect of the Aggregate Amounts Due to such other Holder, then the Holder receiving such proportionately greater payment shall (a) notify Agent and each other Holder of the receipt of such payment and (b) apply a portion of such payment to purchase Notes (which it shall be deemed to have purchased from each seller of a Note simultaneously upon the receipt by such seller of its portion of such payment) in the ratable Aggregate Amounts Due to the other Holders so that all such recoveries of Aggregate Amounts Due shall be shared by all Holders in proportion to the Aggregate Amounts Due to them; <u>provided</u> that, if all or part of such proportionately greater payment received by such purchasing Holder is thereafter recovered from such Holder upon the bankruptcy or reorganization of the Issuer or otherwise, those purchases to that extent shall be rescinded and the purchase prices paid for such Notes shall be returned to such purchasing Holder ratably to the extent of such recovery, but without interest. The Issuer expressly consents to the foregoing arrangement and agrees (i) that any Holder of a Note so purchased may exercise any and all rights of banker's lien, set off or counterclaim with respect to any and all monies owing by the Issuer to that Holder with respect thereto as fully as if that Holder were owed the amount of the Note held by that Holder and (ii) to the extent it may effectively do so under applicable law, that any Holder acquiring a participation pursuant to the foregoing arrangements may exercise against the Issuer rights of setoff and counterclaim with respect to such participation as fully as if such Holder were a direct creditor of the Issuer in the amount of such participation. The provisions of this <u>Section</u> <u>2.12</u> shall not be construed to apply to (A) any payment made by the Issuer pursuant to and in accordance with the express terms of this Agreement, or (B) any payment obtained by a Holder as consideration for the assignment of or sale of a participation in any of its Notes or Obligations to any assignee or participant, other than to the Issuer or any Subsidiary thereof (as to which the provisions of this <u>Section</u> <u>2.12</u> shall apply).

**Section 2.13.** <u>Increased Costs</u>. Subject to the provisions of <u>Section</u> <u>2.14</u> (which shall be controlling with respect to the matters covered thereby), in the event that any Holder or the Agent shall determine (which determination shall, absent manifest error, be final and conclusive and binding upon all parties hereto) that any Governmental Requirement, or any change therein or in the interpretation, administration or application thereof (including the introduction of any new law, treaty or governmental rule, regulation or order), or any determination of a court or Governmental Authority, in each case that becomes effective after the date hereof, or compliance by such Holder or the Agent with any guideline, request or directive issued or made after the date hereof by any central bank or other Governmental Authority or quasi-Governmental Authority (whether or not having the force of law): (a) subjects such Holder (or its Applicable Office) or the Agent to any additional Tax (excluding any Indemnified Tax, any Connection Income Tax and any Excluded Tax (other than a tax described in clause (a) of Tax on the Overall Net Income)) with respect to this Agreement or any of the other Note Documents or any of its obligations hereunder or thereunder or any payments to such Holder (or its Applicable Office) or the Agent of principal, interest, fees or any other amount payable hereunder or its deposits, reserves or capital attributable thereto; (b) imposes, modifies or holds applicable any reserve (including any marginal, emergency, supplemental, special or other reserve), special deposit, compulsory loan, FDIC insurance or similar requirement against assets held by, or deposits or other liabilities in or for the account of, or advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of such Holder or (c) imposes any other condition (other than with respect to a Tax matter) on or affecting such Holder (or its Applicable Office) or its obligations hereunder; and the result of any of the foregoing is to increase the cost to such Holder or the Agent of agreeing to purchase, purchasing or maintaining Notes hereunder or to reduce any amount received or receivable by such Holder (or its Applicable Office) or the Agent with respect thereto; then, in any such case, Issuer shall promptly pay to such Holder or the Agent, upon receipt of the statement referred to in the next sentence, such additional amount or amounts (in the form of an

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increased rate of, or a different method of calculating, interest or otherwise as such Holder shall reasonably determine) as may be necessary to compensate such Holder or the Agent for any such increased cost or reduction in amounts received or receivable hereunder. Such Holder or the Agent shall deliver to Issuer (and in the case of such Holder, with a copy to Agent) a written statement, setting forth in reasonable detail the basis for calculating the additional amounts owed to such Holder or the Agent under this <u>Section</u> <u>2.13</u>, which statement shall be conclusive and binding upon all parties hereto absent manifest error; <u>provided</u> that the Issuer shall not be required to compensate such Holder pursuant to this <u>Section</u> <u>2.13</u> for any increased costs or reductions incurred more than three hundred sixty-five (365) days prior to the date that such Holder delivers written notice to the Issuer pursuant to this <u>Section</u> <u>2.13</u> setting forth such Holder's intention to claim compensation therefor; <u>provided</u>, <u>further</u>, that if the circumstances giving rise to such increased costs or reductions is retroactive, then the 365-day period referred to above shall be extended to include the period of retroactive effect thereof.

**Section 2.14.** <u>Taxes;</u><u> </u><u>Withholding,</u><u> </u><u>etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payments to Be Free and Clear</u>. All sums payable by or on account of any Note Party hereunder and under the other Note Documents shall (except to the extent otherwise required by law) be paid free and clear of, and without any deduction or withholding on account of, any Tax imposed, levied, collected, withheld or assessed by any Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Withholding of Taxes</u>. If any Withholding Agent is required by law (as determined in the good faith discretion of the applicable Withholding Agent) to make any deduction or withholding for or on account of any Tax from any sum paid or payable under any of the Note Documents: (i) the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay (or cause to be paid) any such Tax to the relevant Governmental Authority and (ii) if such Tax is an Indemnified Tax, the sum payable by such Note Party in respect of which the relevant deduction or withholding is required shall be increased to the extent necessary to ensure that after any such deduction or withholding of Indemnified Taxes (including such deductions and withholdings applicable to additional sums payable under this Section), the Agent or such Holder, as the case may be, and each of their Tax Related Persons, receives on the due date a net sum equal to what it would have received had no such deduction or withholding of Indemnified Taxes been required; <u>provided</u> that, for the avoidance of doubt, no such additional amount shall be required to be paid to any Holder or the Agent (including any of their Tax Related Persons) under <u>clause</u><u> </u><u>(ii)</u> above for, and Indemnified Taxes shall not include, any of the following Taxes, (A) in the case of the Agent or Holder (including any of their Tax Related Persons), any U.S. federal withholding Tax in effect and applicable (x) as of the date on which Agent or Holder becomes a party to this Agreement (except to the extent that such amounts were, pursuant to this <u>Section</u> <u>2.14(b)</u>, payable to such Holder's assignor (including to the extent that such amounts were, pursuant to this <u>Section</u> <u>2.14(b)</u>, payable to such Holder's assignor's Tax Related Persons) immediately before such Holder became a party to this Agreement), and (y) in the case of a new Tax Related Person that becomes a Tax Related Person of an existing Holder after the relevant date described in <u>(x)</u>, above, the date on which such new Tax Related Person becomes a Tax Related Person (except to the extent that such amounts were, pursuant to this <u>Section</u> <u>2.14(b)</u>, payable to such existing Holder described in (x), above, (including to the extent that such amounts were, pursuant to this <u>Section</u> <u>2.14(b)</u>, payable to such existing Holder's existing Tax Related Persons but only to the extent that such new Tax Related Person acquires the interests of such existing Tax Related Person) immediately before such new Tax Related Person became a Tax Related Person of such existing Holder), or (z) the date on which such Holder changes its Applicable Office (except to the extent that such amounts were, pursuant to this <u>Section</u> <u>2.14(b)</u>, payable to such Holder (including to the extent that such amounts were, pursuant to this <u>Section</u> <u>2.14(b)</u>, payable to such Holder's Tax Related Persons) immediately before it changed its Applicable Office), (B) any Tax on the Overall Net Income of the Holder or Agent (or any of their Tax Related Persons), (C) any U.S. Tax imposed under FATCA or (D) any Tax attributable to the Holder's or the Agent's failure to comply with <u>Section</u> <u>2.14(e)</u> (all such amounts described in this proviso, "**Excluded Taxes**"). The Note Parties shall deliver to Agent official receipts (or certified copies of the receipts) or other evidence of such payment reasonably satisfactory to the Requisite Holders in respect of any Taxes payable hereunder within thirty (30) days after payment of such Taxes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Taxes</u>. In addition, and without duplication, the Note Parties shall pay all Other Taxes to the relevant Governmental Authorities in accordance with applicable law. The Note Parties shall deliver to Agent official receipts (or certified copies of the receipts) or other evidence of such payment reasonably satisfactory to the Requisite Holders in respect of Other Taxes payable hereunder as soon as practicable after payment of such Taxes or Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification</u>. Without duplication of any Taxes covered by <u>Sections</u><u> </u><u>2.14(b)</u> or <u>(c)</u>, the Note Parties shall indemnify the Agent and each Holder, within ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this <u>Section</u> <u>2.14</u>) paid or incurred by the Agent or such Holder or their respective Tax Related Persons, as the case may be, relating to, arising out of, or in connection with any Note Document or any payment or transaction contemplated hereby or thereby, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority and all reasonable expenses and costs arising therefrom or with respect thereto. A certificate as to the amount of such payment or liability delivered to the Issuer by a Holder (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Holder, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Administrative</u> <u>Requirements;</u><u> </u><u>Forms</u><u> </u><u>Provision</u>. Each Holder that is a United States Person for U.S. federal income tax purposes shall deliver to the Issuer and the Agent, on or prior to the Closing Date (in the case of each Holder listed on the signature pages hereof on the Closing Date) or on or prior to the date of the Assignment Agreement pursuant to which it becomes a Holder (in the case of each other Holder), and at such other times as may be necessary in the determination of the Issuer or Agent (each in the reasonable exercise of its discretion), two executed copies of Internal Revenue Service ("**IRS**") Form W-9 certifying that such Holder is exempt from U.S. federal backup withholding Tax. Each Holder that is not a United States Person for U.S. federal income tax purposes (a "**Non-U.S. Holder**") shall, to the extent it is legally entitled to do so, deliver to the Issuer and the Agent (in such number of copies as shall be requested by the recipient), on or prior to the Closing Date (in the case of each Holder listed on the signature pages hereof on the Closing Date) or on or prior to the date of the Assignment Agreement pursuant to which it becomes a Holder (in the case of each other Holder), and at such other times as may be reasonably requested by the Issuer or Agent (each in the reasonable exercise of its discretion), whichever of the following described in <u>clauses (i)</u> through <u>(v)</u> below is applicable, accurately completed and in a manner reasonably acceptable to the Issuer and the Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Non-U.S. Holder claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Note Document, two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty, and (y) with respect to any other applicable payments under any Note Document, two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) two executed copies of IRS Form W-8ECI;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of a Non-U.S. Holder claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Internal Revenue Code, (A) a certificate substantially in the form of <u>Exhibit</u><u> </u><u>I-1</u> to the effect that such Non-U.S. Holder is not a "bank" within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, a "10 percent shareholder" of the Issuer within the meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Internal Revenue Code (a "**U.S. Tax Compliance Certificate**") and (B) two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to the extent a Non-U.S. Holder is not the beneficial owner of a Note, two executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit I-2</u> or <u>Exhibit</u> <u>I-3</u>, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u> that if the Non-U.S. Holder is a partnership and one or more direct or indirect partners of such Non-U.S. Holder are eligible to claim the portfolio interest exemption, such Non-U.S. Holder shall provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit I-4</u> on behalf of each such direct and indirect partner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Non-U.S. Holder shall deliver to the Issuer and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Non-U.S. Holder becomes a Holder under this Agreement (and from time to time thereafter upon the reasonable request of the Issuer or the Agent), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Issuer or the Agent to determine the withholding or deduction required to be made; <u>provided</u>, <u>however</u>, notwithstanding anything to the contrary in this <u>Section</u> <u>2.14(e)</u>, the completion, execution and submission of the documentation described in this <u>clause (v)</u> shall not be required if in the Holder's reasonable judgment such completion, execution of submission would subject such Holder to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Holder.

Each Holder required to deliver any forms, certificates or other evidence with respect to U.S. federal income tax withholding matters pursuant to this <u>Section</u> <u>2.14(e)</u> and <u>Section</u> <u>2.14(f)</u> hereby agrees, from time to time after the initial delivery by such Holder of such forms, certificates or other evidence, whenever a lapse in time or change in circumstances renders such forms certificates or other evidence obsolete or inaccurate in any respect, that such Holder shall promptly deliver to Agent and the Issuer two new executed copies of IRS Form W-8BEN, IRS Form W-8BEN-E, IRS Form W-8IMY or IRS Form W-8ECI (or any successor form(s) of any of the foregoing), and as applicable, a U.S. Tax Compliance Certificate properly completed and duly executed by such Holder, and such other documentation required under the Internal Revenue Code and reasonably requested by Agent or the Issuer to confirm or establish that such Holder is not subject to deduction or withholding of U.S. federal income Tax with respect to payments to such Holder under the Note Documents or is subject to deduction or withholding at a reduced rate, or notify Agent and the Issuer of its inability to deliver any such forms, certificates or other evidence. Notwithstanding anything to the contrary in this <u>Section</u> <u>2.14(e)</u>, the completion, execution and submission of such documentation (other than such documentation set forth in clauses (i)-(iv) of this <u>Section</u> <u>2.14(e)</u>) shall not be required if in the Holder's reasonable judgment such completion, execution or submission would subject such Holder to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Holder. On or before the Closing Date, (or in the case of a successor or replacement Agent, on or before the date on which such successor or replacement Agent becomes a party to this Agreement), U.S. Bank Trust Company, National Association (or such successor or replacement Agent), shall deliver to the Issuer two executed copies of IRS Form W-9 establishing that the Issuer can make payments to the Agents without deduction or withholding of any Taxes imposed by the United States, including Taxes imposed under FATCA. Each Holder and Agent agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Issuer and the Agent in writing of its legal inability to do so.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If a payment made to a Holder under any Note Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Holder were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Holder shall deliver to the Issuer and the Agent at the time or times prescribed by law and at such time or times reasonably requested by the Issuer or the Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Issuer or the Agent as may be necessary for the Issuer and the Agent to comply with their obligations under FATCA and to determine that such Holder has complied with such Holder's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this <u>Section</u> <u>2.14(f)</u>, "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

Each Holder agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Issuer and the Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Defined</u><u> </u><u>Term</u>. For purposes of this Section, the term "applicable law" includes FATCA.

**Section 2.15.** <u>Alternate</u><u> </u><u>Rate</u><u> </u><u>of</u> <u>Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If prior to the commencement of any Interest Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Term SOFR Reference Rate for such Interest Period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Agent is advised by the Requisite Holders that Term SOFR Reference Rate for such Interest Period will not adequately and fairly reflect the cost to such Holders (or Holder) of its purchasing or maintaining their Notes (or its Note) for such Interest Period;

then the Agent shall give notice thereof to the Issuer and the Holders by written or electronic notice as promptly as practicable thereafter and, until the Agent notifies the Issuer and the Holders that the circumstances giving rise to such notice no longer exist, (A) any Notes requested to be issued and purchased on the first day of such Interest Period shall be issued and purchased as ABR Notes and (B) any outstanding Notes shall be converted, on the last day of the then-current Interest Period, to ABR Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any time (i) the Requisite Holders determine (which determination shall be conclusive and binding absent manifest error) that the circumstances set forth in <u>clause</u><u> </u><u>(a)</u> have arisen and such circumstances are unlikely to be temporary or (ii) the Requisite Holders determine (which determination shall be conclusive and binding absent manifest error) that the circumstances set forth in <u>clause (a)</u> have not arisen but either (w) the CME Term SOFR Administrator has made a public statement or published information that the CME Term SOFR Administrator has ceased or is insolvent (and there is no successor administrator that will continue publication of the Term SOFR Reference Rate), (x) the CME Term SOFR Administrator has made a public statement or has published information (or a public statement or information is published on its behalf) which states that Term SOFR Reference Rate will permanently or indefinitely cease to be published by it (and there is no successor administrator that will continue publication of the Term SOFR Reference Rate), (y) the supervisor for the CME Term SOFR Administrator, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the CME Term SOFR Administrator,

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a resolution authority with jurisdiction over the CME Term SOFR Administrator or a court or an entity with similar insolvency or resolution authority over the CME Term SOFR Administrator has made a public statement or has published information which states that the CME Term SOFR Administrator has ceased or is insolvent or the Term SOFR Reference Rate will permanently or indefinitely cease to be published or (z) the supervisor for CME Term SOFR Administrator or a Governmental Authority has made a public statement identifying or has published information which states that the Term SOFR Reference Rate is no longer representative or the Term SOFR Reference Rate may no longer be used for determining interest rates for notes or other comparable debt instruments, then the Requisite Holders and the Issuer (in consultation with the Agent) shall endeavor to establish an alternate rate of interest as a replacement to the Term SOFR Reference Rate that gives due consideration to the then prevailing or evolving market convention for determining a rate of interest for notes or other comparable debt instruments in the United States at such time and ensuring that Agent will be able to administer such alternate rate of interest, and the Requisite Holders, the Issuer and the Agent shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable; <u>provided</u> that the Requisite Holders and the Issuer shall use commercially reasonable efforts to ensure that such replacement meets the standards set forth under Section 1.1001-6 of the Proposed United States Treasury Regulations (or any successor Untied States Treasury Regulations or other official IRS guidance promulgated that supersedes such Proposed United States Treasury Regulations) so as not to be treated as a "modification" (and therefore an exchange) of any Notes for purposes of Section 1.1001-3 of the United States Treasury Regulations. For the avoidance of doubt, any minimum rate of interest applicable to the Term SOFR Reference Rate hereunder shall also apply to such alternate rate of interest unless otherwise agreed by the Requisite Holders. The Agent and Requisite Holders do not warrant or accept responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the rates in the definition of "Term SOFR Reference Rate" or with respect to any rate that is an alternative or replacement for or successor to any such rate (including, without limitation, any such alternate rate of interest established under this <u>Section</u> <u>2.15(b)</u>, whether the composition or characteristics of any such alternative, successor or replacement interest rate will be similar to, or produce the same value or economic equivalence of, the existing interest rate being replaced or have the same volume or liquidity as did any existing interest rate prior to its discontinuance or unavailability) or the effect of any of the foregoing, or of any other related conforming changes to this Agreement. The Agent and Requisite Holders may select information sources or services in their reasonable discretion to ascertain any interest rate used in this Agreement, any component thereof, or rates referenced in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to the Issuer (and, in the case of Agent, any Holder) or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for selection of such source or service or for any error or calculation of any such rate (or component thereof) provided by any such information source or service. Until an alternate rate of interest shall be determined in accordance with this <u>clause (b)</u>, (x) any Notes requested to be issued and purchased shall be issued and purchased as ABR Notes and (y) any outstanding Notes shall be converted, on the last day of the then-current Interest Period, to ABR Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither Agent shall be under any obligation (i) to monitor, determine or verify the unavailability or cessation of the Term SOFR Rate (or other applicable benchmark rate), or whether or when there has occurred, or to give notice to any other transaction party of the occurrence of, any event or date on which the benchmark shall have transitioned or may no longer be available, (ii) to select, determine or designate any alternative, successor or replacement benchmark index, or whether any conditions to the designation of such a rate have been satisfied, (iii) to select, determine or designate any adjustment to the benchmark or the adjustment spread, or other modifier to any replacement or successor index or (iv) to determine whether or what changes are necessary or advisable, if any, in connection with any of the foregoing. Neither Agent shall be liable for any inability, failure or delay on its part to perform any of its duties set forth in this Agreement as a result of the unavailability of the Term SOFR Rate (or other

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applicable benchmark rate) and absence of a designated replacement benchmark rate, including as a result of any inability, delay, error or inaccuracy on the part of any other transaction party, including without limitation the Requisite Holders, in providing any direction, instruction, notice or information required or contemplated by the terms of this Agreement and reasonably required for the performance of such duties.

**Section 2.16.** <u>Incremental Notes.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms of <u>Section 2.16(b)</u>, the Issuer may from time to time request Incremental Commitments, <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Prior to implementing any new Incremental Commitments, the Issuer shall have provided a written notice to the Agent and the then-existing Holders (such notice, the "<u>Incremental</u> <u>Notes Notice</u>"), specifying the amount of Incremental Commitments being requested (the "<u>Incremental Target Amount</u>"), such amount not to exceed $35,000,000 in aggregate outstanding principal amount during the term of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) following receipt of the Incremental Notes Notice, then-existing Holders at such time may, within thirty (30) days of receipt by the Agent and such Holders of the Incremental Notes Notice (the "<u>Offer Deadline</u>"), deliver to the Issuer a written offer to provide the Incremental Commitments (the "<u>Incremental</u><u> </u><u>Notes</u><u> </u><u>Offer</u>"; the Holders providing the Incremental Notes Offer, "<u>Electing Holders</u>"), subject to <u>Section</u> <u>2.16(a)(vi)</u> and <u>Section</u> <u>2.16(b)</u>, in accordance with the terms and procedures set forth in this <u>Section</u> <u>2.16</u>, which Incremental Notes Offer shall detail the economic and other material terms of the proposed Incremental Notes, including principal amount, amortization, call protection, maturity date, pricing and any other such term deemed material by such then-existing Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) following receipt of the Incremental Notes Offer, the Issuer may, within five (5) Business Days of receipt of such Incremental Notes Offer, accept or decline such Incremental Notes Offer, subject to the terms and conditions contained herein (<u>provided</u>, that, if the Issuer does not respond to such Incremental Notes Offer within such five (5) Business Day period, the Issuer shall be deemed to have declined such Incremental Notes Offer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if the Issuer accepts such Incremental Notes Offer, then the Issuer and the Electing Holders shall use commercially reasonable efforts to consummate the transaction set forth in the Incremental Notes Offer in accordance with the terms thereof and this <u>Section</u> <u>2.16</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any then-existing Holder at such time not responding to the Incremental Notes Notice prior to the Offer Deadline shall be deemed to have declined to provide Incremental Commitments and if any then-existing Holder declines to provide Incremental Commitments by an amount equal to such Holder's Pro Rata Share of such requested amount, any Holder electing to provide Incremental Commitments may elect to increase its Incremental Commitment by an amount equal to such then-existing Holder's Pro Rata Share of the aggregate declined portion of such requested increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) for the avoidance of doubt, the Issuer shall not be obligated to accept any Incremental Notes Offer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Incremental Commitments and Incremental Notes shall be subject to the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate stated principal amount of such Incremental Notes ("<u>Incremental</u> <u>Indebtedness</u>") shall not exceed $35,000,000 and shall be in a minimum amount of $5,000,000 (<u>provided</u> that such amount may be less than $5,000,000 if such amount represents all remaining availability under the limit set forth in this <u>clause (i)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any such Incremental Indebtedness (A) shall rank pari passu in right of payment and security with, and have the benefit of the same or equivalent guarantees as, the Note Obligations in respect of the other Notes then outstanding, (B) for purposes of prepayments, shall be treated the same as the Initial Notes then outstanding, and (C) shall have the same terms as the Initial Notes then outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no Incremental Indebtedness shall have a final maturity date earlier than the then Maturity Date or a Weighted Average Life to Maturity shorter than the latest Weighted Average Life to Maturity of the Initial Notes then outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) as of the date of incurring such Incremental Indebtedness, after giving effect to the application of the proceeds thereof, the Note Parties and their respective Subsidiaries (on a consolidated basis) shall be Solvent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the satisfaction or waiver by the Holders providing such Incremental Indebtedness on or prior to the date of the incurrence of such Incremental Indebtedness of each of the conditions precedent set forth in <u>Section</u> <u>3.02</u>.

**ARTICLE III** 

**CONDITIONS PRECEDENT** 

**Section 3.01.** <u>Closing Date</u>. The obligation of each Holder to purchase Notes on the Closing Date is subject to the satisfaction, or waiver in accordance with <u>Section</u> <u>11.06</u>, of the following conditions on or before the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Note</u><u> </u><u>Documents</u>. Subject to <u>Section</u> <u>6.19</u>, each Holder and the Agents shall have received sufficient copies of each Note Document executed and delivered by each Note Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organizational</u><u> </u><u>Documents;</u> <u>Incumbency</u>. Each Holder and Agent shall have received (i) sufficient copies of each Organizational Document of the Issuer, and of each other Note Party, certified as of a recent date by the appropriate Governmental Authority, for each Holder, each dated the Closing Date or a recent date prior thereto; (ii) signature and incumbency certificates of the officers of the Issuer and of each other Note Party executing the Note Documents; (iii) resolutions of the Board of Directors, the manager(s) or member(s) or similar Governing Body of the Issuer and of each other Note Party approving and authorizing the execution, delivery and performance of this Agreement, the other Note Documents to which it is a party, certified as of the Closing Date by a Responsible Officer as being in full force and effect without modification or amendment; and (iv) a good standing certificate for the Issuer and each other Note Party from the applicable Governmental Authority in such Person's jurisdiction of incorporation, organization or formation and in each jurisdiction in which such Person is qualified as a foreign corporation or other entity to do business, each dated a recent date prior to the Closing Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Consents</u>. Each of the Issuer, each other Note Party and their Subsidiaries shall have obtained all authorizations, consents and permits from any Governmental Authority and all consents of other Persons, in each case that are necessary or reasonably deemed by Agent and the Requisite Holders to be advisable in connection with the Transactions and each of the foregoing shall be in full force and effect and in form and substance reasonably satisfactory to Agent and the Requisite Holders. All applicable waiting periods shall have expired without any action being taken or threatened by any competent authority that would restrain, prevent or otherwise impose adverse conditions on the Transactions and no action, request for stay, petition for review or rehearing, reconsideration, or appeal with respect to any of the foregoing shall be pending, and the time for any applicable agency to take action to set aside its consent on its own motion shall have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Purchase</u><u> </u><u>Date</u>. The date of purchase of the Notes shall be a Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Initial Reserve Report; Acquired Assets Reserve Report; Title to Oil and Gas Properties</u>. The Agent and the Requisite Holders shall have received (i) the Initial Reserve Report, (ii) the Acquired Assets Reserve Report and (iii) title information (including usual and customary title opinions, title reports and landman certificates in the Issuer's possession or generated by the Issuer for the Agent and Requisite Holders) setting forth the status of title to at least 90% of PV-10 of the Oil and Gas Properties in the Acquired Assets Reserve Report and the Initial Reserve Report, on a consolidated basis, consistent with usual and customary standards for the geographic regions in which such Oil and Gas Properties are located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Real Property Collateral</u>. Subject to <u>Section</u> <u>6.19</u>, the Agents and the Requisite Holders shall have received a Mortgage encumbering each Mortgaged Property in favor of the Collateral Agent, duly executed and acknowledged by each Note Party that is the owner of or holder of any interest in such Mortgaged Property, and otherwise in form for recording in the recording office of each applicable jurisdiction where each such Mortgaged Property is deemed located and that will, when properly recorded (or when the applicable financing statements related thereto are properly filed or such other actions needed to perfect are taken) create a valid, perfected first priority security interest (after giving effect to Excepted Liens identified in <u>clauses</u><u> </u><u>(a)</u> through <u>(d)</u> and <u>(f)</u> of the definition thereof, but subject to the provisos at the end of such definition) on at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the Acquired Assets Reserve Report and the Initial Reserve Report, on a consolidated basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Personal Property Collateral</u>. In order to create in favor of the Collateral Agent, for the benefit of the Holders a valid, perfected first priority security interest in all personal property Collateral of the Note Parties, the Agents shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) evidence reasonably satisfactory to Agents and the Requisite Holders of the compliance by each Note Party with its respective obligations under the Collateral Documents to which it is party (including its obligation to deliver UCC financing statements, originals of securities, instruments and chattel paper); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) the results of a recent search, by a Person satisfactory to the Requisite Holders, of all effective UCC financing statements made with respect to any personal or mixed property of the Issuer and each Note Party in the applicable jurisdictions, together with copies of all such filings disclosed by such search that will not be terminated on the Closing Date and (B) UCC termination statements for filing in all applicable jurisdictions as may be necessary to terminate any effective UCC financing statements disclosed in such search that do not constitute Liens permitted under <u>Section</u> <u>7.03</u> or Excepted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>[Reserved]</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Evidence of Insurance</u>. The Holders shall have received evidence satisfactory to them in their reasonable discretion that all insurance required to be maintained pursuant to <u>Section</u> <u>6.06</u> is in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Evidence of Swap Agreements</u>. The Holders shall have received evidence satisfactory to them in their reasonable discretion that all Swap Agreements required to be maintained pursuant to <u>Section 6.20</u> are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Opinions</u> <u>of</u><u> </u><u>Counsel</u><u> </u><u>to</u><u> </u><u>Note</u><u> </u><u>Parties</u>. Agents and the Holders shall have received executed copies of the favorable written opinions of (i) Weil Gotshal & Manges LLP, counsel for the Issuer and the Note Parties and (ii) to the extent any Mortgages are delivered on the Closing Date, Steptoe & Johnson PLLC and Liskow & Lewis, APLC, as applicable, each as local counsel for the Issuer and the Note Parties, in each case dated as of the Closing Date and in form and substance reasonably satisfactory to the Agent and Requisite Holders (and the Issuer and each Note Party hereby instructs such counsel to deliver such opinions to Agents on behalf of the Holders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Expenses</u>. The Issuer shall have paid to Agents and the Holders all amounts (invoiced at least two (2) Business Days prior to the Closing Date (or such shorter time reasonably acceptable to the Issuer) with reasonable detail) required to be paid pursuant to <u>Section</u> <u>11.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Solvency</u><u> </u><u>Certificate</u>. On the Closing Date, Agent shall have received a Solvency Certificate from a Financial Officer substantially in the form of <u>Exhibit E</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Closing</u><u> </u><u>Date</u><u> </u><u>Certificate</u>. The Issuer shall have delivered to Agent and the Holders an executed Closing Date Certificate, together with all attachments thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>[Reserved].</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>[Reserved].</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>No</u><u> </u><u>Material</u><u> </u><u>Adverse</u><u> </u><u>Effect</u>. Since December 31, 2023, no event, change or condition shall have occurred that has caused or could reasonably be expected to result in, either individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Funds Flow</u>. Agent shall have received at least one (1) Business Day prior to the Closing Date the Flow of Funds, in form and substance reasonably satisfactory to the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Initial Note Purchase Notice</u>. Agent shall have received a fully-executed Note Purchase Notice at least seven (7) Business Days prior to the Closing Date (or such earlier date as the Holders may agree in their sole discretion (by notice to the Agent)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Other</u><u> </u><u>Debt;</u><u> </u><u>Payoff</u><u> </u><u>of</u><u> </u><u>Existing</u><u> </u><u>Credit</u><u> </u><u>Facility</u>. (i) The Requisite Holders shall be satisfied that the Note Parties and their Subsidiaries have no outstanding Debt except for Debt permitted pursuant to <u>Section</u> <u>7.02(b)</u> and the Note Parties shall not be in default with respect to such Debt and (ii) the Holders shall have received (A) a duly executed payoff letter, in form and substance reasonably satisfactory to Holders, with respect to the Existing Credit Facility which shall set forth the amount necessary to repay all Indebtedness and discharge all obligations, in each case, under the Existing Credit Facility and (B) evidence reasonably acceptable to the Holders that all Liens and guarantees under the Existing Credit Facility shall have been released (including, without limitation, the Holder's receipt of lien release documents and UCC termination statements in connection therewith) (or substantially concurrently with the funding of the Notes on the Closing Date shall be released).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Financial</u><u> </u><u>Statements</u>. The Holders shall have received an unaudited consolidated pro forma balance sheet of the Issuer and its Consolidated Subsidiaries as of the Closing Date (giving effect to the Transactions on the Closing Date) (collectively, the "**Initial Financial Statements**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Lease Operating Statements</u>. The Holders shall have received monthly production and accounting lease operating statements for each calendar month for each of the Fiscal Quarters ended after June 30, 2024 and at least forty-five (45) days prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Fees</u>. The Issuer shall have paid any other amounts owed under and as set forth in the Fee Letter and the Agent Fee Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>No</u><u> </u><u>Default</u><u> </u><u>or</u><u> </u><u>Event</u><u> </u><u>of</u><u> </u><u>Default;</u> <u>Representations</u><u> </u><u>and</u><u> </u><u>Warranties</u>. On the Closing Date after giving effect to the Transactions, (i) no Default or Event of Default shall have occurred and be continuing, and (ii) all representations and warranties made by the Note Parties contained herein or in the other Note Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the Closing Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Know Your Customer</u>. Agents and the Holders shall have received, at least five (5) Business Days (or such shorter period as the Agents may agree) prior to the Closing Date, all documentation and other information required by regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including, without limitation, the USA PATRIOT Act and, to the extent the Issuer qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to the Issuer, that has been reasonably requested by Holders in writing to the Issuer at least ten (10) Business Days prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Specified Acquisition Agreement</u>. The Agent and the Holders shall have received a certificate from a Financial Officer of the Issuer dated as of the Closing Date certifying (i) that attached thereto is a true and correct fully-executed copy of the Specified Acquisition Agreement (including all amendments, exhibits and schedules thereto) and (ii) the Specified Acquisition has been consummated in accordance with its terms substantially concurrently with the purchase of the Notes under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Unrestricted</u><u> </u><u>Cash</u>. As of the Closing Date, the Issuer and its Restricted Subsidiaries shall have Unrestricted Cash in an amount equal to or greater than $3,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Officer</u><u>'</u><u>s</u><u> </u><u>Certificate</u>. The Issuer shall have delivered to Agent and the Holders a certificate of a Financial Officer of the Issuer certifying as to matters set forth in <u>Section</u> <u>3.01(c)</u>, <u>Section</u> <u>3.01(o)</u>, <u>Section</u> <u>3.01(p)</u>, <u>Section</u> <u>3.01(q)</u>, <u>Section</u> <u>3.01(x)</u> and <u>Section</u> <u>3.01(aa)</u>.

Agent (at the direction of the Requisite Holders) shall notify the Issuer and the Holders of the Closing Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Holders to purchase Notes hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to <u>Section</u> <u>11.06</u>) at or prior to 5:00 p.m., New York, New York time, on September 17, 2024 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

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Without limiting the generality of the provisions of <u>Section</u> <u>10.03</u>, for purposes of determining compliance with the conditions specified in this <u>Section</u> <u>3.01</u>, each Holder as of the Closing Date shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required hereunder to be consented to or approved by or acceptable or satisfactory to a Holder unless the Agent shall have received written notice from such Holder prior to the Closing Date specifying its objection thereto.

**ARTICLE IV** 

**REPRESENTATIONS AND WARRANTIES** 

In order to induce the Agents and Holders to enter into this Agreement and induce the Holders to purchase their respective Notes, the Note Parties represent and warrant to the Agents and each Holder the following:

**Section 4.01.** <u>Organization; Powers</u>. Each of the Note Parties and their Restricted Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority, and has all material governmental licenses, authorizations, consents and approvals necessary, to own its assets and to carry on its business as now conducted, and is qualified to do business in, and is in good standing (if applicable) in, every jurisdiction where such qualification is required by Governmental Requirement, except where failure to have such licenses, authorizations, consents, approvals or qualifications could not reasonably be expected to have a Material Adverse Effect.

**Section 4.02.** <u>Authority; Enforceability</u>. The Transactions are within the Note Party's and each Restricted Subsidiary's corporate, limited liability company or partnership powers and have been duly authorized by all necessary corporate, limited liability company or partnership action, as applicable, and, if required, stockholder, member or manager action (including, without limitation, any action required to be taken by any class of directors or managers of the Note Parties or any other Person, whether interested or disinterested, in order to ensure the due authorization of the Transactions). Each Note Document to which each Note Party and each Restricted Subsidiary is a party has been duly executed and delivered by the Note Party and such Restricted Subsidiary and constitutes a legal, valid and binding obligation of the Note Party and such Restricted Subsidiary, as applicable, each enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

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**Section 4.04.** <u>Financial</u><u> </u><u>Condition;</u> <u>No</u><u> </u><u>Material</u><u> </u><u>Adverse</u><u> </u><u>Effect</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Since the December 31, 2023, there has been no event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the Note Parties nor any Restricted Subsidiary has on the Closing Date any Material Debt (including Disqualified Capital Stock) or any contingent liabilities, off-balance sheet liabilities or partnerships, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments.

**Section 4.05.** <u>Litigation</u>. There are no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Issuer, threatened in writing against the Note Parties or any Restricted Subsidiary which are not fully covered by insurance (except for customary deductibles) (i) which individually or in the aggregate, if adversely determined, could reasonably be expected to result in liability exceeding $2,500,000, or (ii) that involve any Note Document or the Transactions. None of the Note Parties or any of their Restricted Subsidiaries is in violation of any order, writ, injunction or any decree of any Governmental Authority which individually or in the aggregate, if adversely determined, could reasonably be expected to result in liability exceeding $2,500,000.

**Section 4.06.** <u>Environmental Matters</u>. Except for such matters that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties and their Restricted Subsidiaries and each of their respective Properties and respective operations thereon are and have been in compliance with all applicable Environmental Laws; and none of the Note Parties and their Restricted Subsidiaries has received notice of, any conditions, events, or incidents in connection with any such Properties that would reasonably be expected to interfere with or prevent such compliance or continued compliance with Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties and their Restricted Subsidiaries have obtained all Environmental Permits required for their respective operations and respective ownership of their Properties, with all such Environmental Permits being currently in full force and effect, and none of Note Parties or their Restricted Subsidiaries has received any written notice or otherwise has knowledge that any such existing Environmental Permit will be revoked or that any application for any new Environmental Permit or renewal of any existing Environmental Permit will be protested or denied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no Environmental Claims or other claims, demands, suits, orders, inquiries or proceedings concerning any violation of, or liability (including as a potentially responsible party) under, any applicable Environmental Laws pending or, to the Issuer's knowledge, threatened against the Note Parties or any Subsidiary or, to the Issuer's knowledge, any of their respective Properties or as a result of any operations at such Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) None of the Properties of the Note Parties or any Restricted Subsidiary contain or have contained any: (i) underground storage tanks requiring permits under Environmental Law; (ii) asbestos-containing or radioactive materials requiring removal pursuant to Environmental Law; (iii) landfills or dumps requiring an Environmental Permit pursuant to Environmental Law; (iv) hazardous waste management units as defined pursuant to RCRA or any comparable state law or (v) sites on or nominated

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for the National Priority List promulgated pursuant to CERCLA or any state remedial priority list promulgated or published pursuant to any comparable state law and Note Parties any Restricted Subsidiary is in substantial compliance with all applicable financial responsibility requirements of all Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There has been no Release or, to the Issuer's knowledge, threatened Release of Hazardous Materials at, on, under or from the Note Parties' or any Restricted Subsidiary's Properties in violation of, or as could reasonably be expected to result in liability under, Environmental Law, there are no investigations, remediations, abatements, removals, or monitorings of Hazardous Materials required under applicable Environmental Laws at such Properties and, to the knowledge of the Issuer, none of such Properties are adversely affected by any Release or threatened Release of a Hazardous Material originating or emanating from any other real property, and no Issuer or Restricted Subsidiary has filed or failed to file, any notice required of such Persons under applicable Environmental Law related to a reportable Release of Hazardous Materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Neither the Issuer nor any Restricted Subsidiary has received any written notice asserting an alleged liability or obligation of the Note Parties or any Restricted Subsidiary under any applicable Environmental Laws with respect to the investigation, remediation, abatement, removal, or monitoring of any Hazardous Materials at, under, or Released or threatened to be Released from the Note Parties' or any Restricted Subsidiary's Properties or any real properties offsite the Issuer's or any Restricted Subsidiary's Properties, including a letter or request for information under Section 104(e) of CERCLA (42 U.S.C. § 9604) or any comparable state law, and, to the Issuer's knowledge, there are no conditions or circumstances that could reasonably be expected to result in the receipt of such written notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) There has been no exposure of any Person or Property to any Hazardous Materials as a result of or in connection with the operations and businesses of Note Parties or any Restricted Subsidiary, including at any of the Note Parties' or its Restricted Subsidiaries' Properties that could reasonably be expected to form the basis for a claim for damages or compensation for which the Note Parties or any Restricted Subsidiary would be liable under Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the Issuer's knowledge, there are no conditions or circumstances associated with any of the Note Parties' or any Restricted Subsidiary's currently or previously owned or leased real properties that could reasonably be expected to give rise to the imposition of any material liabilities under any Environmental Laws against any Note Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Note Parties and their Restricted Subsidiaries have made available to the Holders complete and correct copies of all environmental site assessment reports, investigations, studies, analyses, and correspondence on environmental matters (including matters relating to any alleged non-compliance with or liability under Environmental Laws) requested by the Agent that are in any of the Note Parties' or the Restricted Subsidiaries' possession or control and relating to their respective Properties or operations.

**Section 4.07.** <u>Compliance</u><u> </u><u>with</u><u> </u><u>Laws</u><u> </u><u>and</u><u> </u><u>Agreements;</u> <u>No</u><u> </u><u>Defaults,</u><u> </u><u>Event</u><u> </u><u>of</u> <u>Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of Note Parties and each Restricted Subsidiary is in compliance with all Governmental Requirements applicable to it and its Property and all agreements and other instruments binding upon it or its Property, and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business as presently conducted in each case, except where such non-compliance would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Default or Event of Default has occurred and is continuing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Material Contract is in full force and effect, and is valid, binding and enforceable upon any Note Party party thereto and, to the knowledge of the Note Parties, upon each of the other parties thereto in accordance with their respective terms, in each case subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. Each Note Party party thereto is in compliance in all material respects with such agreements. The Issuer has delivered or made available to the Agent true, correct and complete copies of each Material Contract (including all amendments, supplements or other modifications thereto) in effect and not previously delivered or made available to the Agent.

**Section 4.08.** <u>Investment</u><u> </u><u>Company</u> <u>Act</u>. None of the Note Parties nor any Restricted Subsidiary is required to be registered as an "investment company" under the Investment Company Act of 1940, as amended.

**Section 4.09.** <u>Taxes</u>. Each of the Note Parties and their Restricted Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which the Note Parties or such Restricted Subsidiary, as applicable, has set aside on its books adequate reserves in accordance with GAAP or (b) to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Effect. No Tax Lien (other than Tax Liens that constitute Excepted Liens or Tax Liens whose existence would not reasonably be expected to result in a Material Adverse Effect) has been filed.

**Section 4.10.** <u>ERISA</u>. Except for such matters that, individually or in the aggregate, could not reasonably be expected to have Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The applicable Note Parties, Restricted Subsidiaries and ERISA Affiliates have complied in all material respects with ERISA and, where applicable, the Internal Revenue Code regarding each Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Plan is, and has been, established and maintained in substantial compliance with its terms, ERISA and, where applicable, the Internal Revenue Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No act, omission or transaction has occurred with respect to a Plan which could reasonably be expected to result in imposition on the Note Parties, any Restricted Subsidiary or any ERISA Affiliate (whether directly or indirectly) of (i) either a civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502 of ERISA or a tax imposed pursuant to Chapter 43 of Subtitle D of the Internal Revenue Code or (ii) breach of fiduciary duty liability damages under Section 409 of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Full payment when due has been made of all amounts which the applicable Note Parties, Restricted Subsidiaries or ERISA Affiliates is required under the terms of each Plan or applicable law to have paid as contributions to such Plan as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Neither the Note Parties, the Restricted Subsidiaries nor any ERISA Affiliate sponsors, maintains, or contributes to an employee welfare benefit plan, as defined in Section 3(1) of ERISA that provides benefits to former employees of such entities and that may not be terminated by the Note Parties, a Restricted Subsidiary or any ERISA Affiliate in its sole discretion at any time without any material liability.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither the Note Parties, the Restricted Subsidiaries nor any ERISA Affiliate sponsors, maintains or contributes to, or has at any time in the six (6) year period preceding the Closing Date sponsored, maintained or contributed to, any employee pension benefit plan, as defined in Section 3(2) of ERISA, that is subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Internal Revenue Code.

**Section 4.11.** <u>Disclosure;</u><u> </u><u>No</u><u> </u><u>Material</u><u> </u><u>Misstatements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the other reports, financial statements, certificates or other information furnished by or on behalf of the Issuer or any Restricted Subsidiary to the Agent or any Holder or any of their Affiliates in connection with the negotiation of this Agreement or any other Note Document or delivered hereunder or under any other Note Document (as modified or supplemented by other information so furnished), taken as a whole, contains any untrue statement of material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading; <u>provided</u> that, with respect to projected financial information, the Issuer represents only that such information was prepared in good faith based upon assumptions believed by the Issuer to be reasonable at the time it being understood that (i) any such projected financial information is merely a prediction as to future events and its not to be viewed as fact, (ii) such projected financial information is subject to significant uncertainties and contingencies, many of which are beyond the control of the Issuer or any of its Subsidiaries and (iii) no assurance can be given that any particular projections will be realized and that actual results during the period or periods covered by any such projections may differ significantly from the projected results and such differences may be material. There are no statements or conclusions in any Reserve Report which are based upon or include materially misleading information or fail to take into account material information regarding the matters reported therein, it being understood that projections concerning volumes attributable to the Oil and Gas Properties of the Note Parties and their Restricted Subsidiaries and production and cost estimates contained in each Reserve Report are necessarily based upon professional opinions, estimates and projections and that the Note Parties and their Restricted Subsidiaries do not warrant that such opinions, estimates and projections will ultimately prove to have been accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the Closing Date, the information included in the Beneficial Ownership Certification is true and correct in all respects.

**Section 4.12.** <u>Insurance</u>. The Note Parties have, and have caused all of their Restricted Subsidiaries to have (a) all insurance policies sufficient for the compliance by each of them with all material Governmental Requirements and all material agreements and (b) insurance coverage in at least amounts and against such risk (including, without limitation, public liability) that are customarily insured against by business entities similarly situated and engaged in the same or a similar business for the assets and operations of the Note Parties and their Restricted Subsidiaries. Such policies provide adequate coverage from reputable and financially sound insurance companies in amounts sufficient to insure the assets and risks of each of the Note Parties and their Restricted Subsidiaries in accordance with prudent business practice in the industry of the Note Parties and their Restricted Subsidiaries. No Note Party has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers at a comparable rate. The Collateral Agent has been named as additional insureds in respect of such liability insurance policies and the Collateral Agent has been named as lender loss payee and mortgagee with respect to property loss insurance. None of the Note Parties or their Restricted Subsidiaries owns or holds any Building (as defined in the applicable Flood Insurance Regulation) or Manufactured (Mobile) Home (as defined in the applicable Flood Insurance Regulation) constituting Collateral for which such Person has not delivered to the Agents evidence reasonably satisfactory to the Requisite Holders that (x) such Person maintains flood insurance for such Building or Manufactured (Mobile) Home or (y) such Building or Manufactured (Mobile) Home is not located in a Special Flood Hazard Area (it being understood that Agent will promptly provide any such information received by it to the Holders).

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**Section 4.13.** <u>Subsidiaries; Foreign Operations</u>. Except as set forth on <u>Schedule</u><u> </u><u>4.13</u> or as disclosed in writing to the Agent (which shall promptly furnish a copy to the Holders), which shall be a supplement to <u>Schedule</u><u> </u><u>4.13</u>, the Issuer has no Subsidiaries or Foreign Subsidiaries. <u>Schedule</u><u> </u><u>4.13</u> identifies each Subsidiary as either a Restricted Subsidiary or Unrestricted Subsidiary. Each Subsidiary listed on <u>Schedule</u><u> </u><u>4.13</u> is a Wholly-Owned Subsidiary. The Note Parties have no Foreign Subsidiaries and no Restricted Subsidiary owns any Oil and Gas Properties not located within the geographic boundaries of the United States of America and subject to the jurisdiction of the United States of America.

**Section 4.14.** <u>Properties;</u><u> </u><u>Titles,</u><u> </u><u>Etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Note Parties and their Restricted Subsidiaries has good and defensible title (as used herein, such term has the meaning commonly ascribed thereto in the Oil and Gas Business) to the Oil and Gas Properties evaluated in the most recently delivered Reserve Report (except for those Oil and Gas Properties that have been disposed of since the date of such Reserve Report in accordance with this Agreement or leases which have expired in accordance with their terms) and valid title to all its material personal Properties, in each case, free and clear of all Liens except Liens permitted by <u>Section</u> <u>7.03</u>. After giving full effect to the Excepted Liens, the Note Party or the Restricted Subsidiary specified as the owner owns the net interests in production attributable to the Hydrocarbon Interests as reflected in the most recently delivered Reserve Report (except for those Oil and Gas Properties that have been disposed of since the date of such Reserve Report in accordance with this Agreement or leases which have expired in accordance with their terms).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to any real Properties or personal Properties not subject of the preceding <u>clause (a)</u>, each of the Note Parties and their Restricted Subsidiaries have in all material respects (i) good and defensible title to, or valid leasehold or other interests in, its respective real Properties and (ii) good title to all of their personal Properties, in each case, free and clear of all Liens except Liens permitted by <u>Section</u> <u>7.03</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as could not reasonably be expected to have a Material Adverse Effect, all leases and agreements necessary for the conduct of the business of the Note Parties and their Restricted Subsidiaries are valid and subsisting, in full force and effect, and there exists no default or event or circumstance which with the giving of notice or the passage of time or both would give rise to a default under any such lease or leases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The rights and Properties presently owned, leased or licensed by the Note Parties and their Restricted Subsidiaries including, without limitation, all easements and rights of way, if any, include all rights and Properties necessary to permit the Note Parties and their Restricted Subsidiaries to conduct their business in all material respects in the same manner as its business has been conducted prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All of the Properties of the Note Parties and their Restricted Subsidiaries which are reasonably necessary for the operation of their businesses are in good working condition and are maintained in accordance with prudent business standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Note Parties and each Restricted Subsidiary owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by the Note Parties and such Restricted Subsidiary does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected

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to result in a Material Adverse Effect. The Note Parties and their Restricted Subsidiaries either own or have valid licenses or other rights to use all databases, geological data, geophysical data, engineering data, seismic data, maps, interpretations and other technical information used in their businesses as presently conducted, subject to the limitations contained in the agreements governing the use of the same, with such exceptions as could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No eminent domain proceeding or taking has been commenced or, to the knowledge of any of the Issuer or any of its Subsidiaries, is contemplated with respect to all or any portion of the Property, except to the extent that such proceeding or taking has been previously disclosed by the Issuer in writing to the Agent pursuant to <u>Section</u> <u>6.02(b).</u>

**Section 4.15.** <u>[Reserved]</u>.

**Section 4.16.** <u>No</u><u> </u><u>Operations.</u> The Note Parties and their Restricted Subsidiaries (a) do not take Hydrocarbons attributable or allocable to their Oil and Gas Properties, in kind, and (b) do not engage in any material operating activities with respect to their Oil and Gas Properties

**Section 4.17.** <u>[Reserved]</u>

**Section 4.18.** <u>Swap</u><u> </u><u>Agreements</u><u> </u><u>and</u><u> </u><u>Qualified</u> <u>ECP</u><u> </u><u>Guarantor</u>. <u>Schedule</u><u> </u><u>4.18</u>, as of the Closing Date, and thereafter included in the most recently delivered report required to be delivered by the Issuer pursuant to <u>Section</u> <u>6.01(e)</u>, as of the date thereof, sets forth, a true and complete list of all Swap Agreements of the Note Parties and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark to market value thereof, all credit support agreements relating thereto (including any margin required or supplied) and the counterparty to each such agreement. The Note Parties are each a Qualified ECP Guarantor.

**Section 4.19.** <u>Use</u><u> </u><u>of</u><u> </u><u>Proceeds</u>. The proceeds of the Notes shall be used for the purposes set forth in <u>Section</u> <u>2.04</u>. The Note Parties and their Restricted Subsidiaries are not engaged principally, or as one of its or their important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). No part of the proceeds of any Note will be used for any purpose which violates the provisions of Regulations T, U or X of the Board.

**Section 4.20.** <u>Solvency</u>. Immediately after giving effect to the Transactions, the Note Parties and their Subsidiaries (on a consolidated basis) are Solvent.

**Section 4.21.** <u>Anti-Corruption Laws, Sanctions and USA PATRIOT Act</u>. Each Note Party has implemented and maintains in effect policies and procedures reasonably designed to promote compliance by the Note Parties and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Note Parties and, to the knowledge of the Note Parties, their respective officers, directors, employees and agents are in compliance with the USA PATRIOT Act, Anti-Corruption Laws and applicable Sanctions. None of (a) the Note Parties or any of their respective directors, officers or employees, or (b) to the Issuer's knowledge, any agent of the Note Parties that will act in any capacity in connection with or benefit from the proceeds of the Notes, is (i) a Sanctioned Person, or (ii) engaged in any activity that would reasonably be expected to result in any Note Party being designated a Sanctioned Person. No direct use of proceeds of the Notes or other transaction by the Note Parties contemplated by this Agreement will unlawfully violate any Anti-Corruption Law or applicable Sanctions.

**Section 4.22.** <u>Affected</u> <u>Financial</u><u> </u><u>Institutions</u>. No Note Party is an Affected Financial Institution.

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**Section 4.23.** <u>Collateral Documents</u>. The Collateral Documents are effective to create in favor of the Collateral Agent, for the benefit of the Secured Parties, a legal, valid and enforceable security interest in the Collateral and proceeds thereof, subject, in the case of enforceability, to applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally and to general principles of equity and principles of good faith and fair dealing. The Obligations are and shall be at all times secured by legal, valid and enforceable, and upon recordation shall be, perfected first priority Liens in favor of the Collateral Agent, covering and encumbering the Collateral (subject only to permitted Liens under <u>Section</u> <u>7.03</u>).

**Section 4.24.** <u>Senior Debt</u>. The Obligations shall constitute senior indebtedness of the Note Parties under and as defined in any documentation documenting any junior indebtedness of the Note Parties.

**Section 4.25.** <u>Private Offering</u>. Neither the Note Parties nor anyone acting on their behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other than the Holders, each of which has been offered the Notes at a private sale for investment. Neither the Note Parties nor anyone acting on their behalf has (a) solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Notes by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D of the Securities Act, or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act, or (b) taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.

**ARTICLE V** 

**REPRESENTATIONS OF HOLDERS** 

In order to induce Issuer to issue and sell the Notes to the Holders, each Holder hereby represents and warrants to Issuer, on the Closing Date and acknowledges as follows:

**Section 5.01.** <u>Organization and Standing</u>. Such Holder is a corporation or other entity duly incorporated or formed and validly existing under the laws of the jurisdiction of its incorporation or formation.

**Section 5.02.** <u>Authorization; Enforceability</u>. Such Holder has the full power and authority to enter into this Agreement, and (assuming due execution by the other parties hereto) this Agreement constitutes its valid and legally binding obligation, enforceable against it in accordance with its terms, except to the extent the enforceability thereof may be limited by (a) the effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other similar laws affecting creditors' rights generally, (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (c) implied covenants of good faith and fair dealing.

**Section 5.03.** <u>Investment</u>. Such Holder is acquiring each such Note solely for its own account, for investment purposes, with no intention of distributing or reselling such Note in any public offering or in any transaction that would be in violation of applicable securities laws of the United States or any other applicable jurisdiction or any state or province thereof, without prejudice, however, to such Holder's right at all times to sell or otherwise dispose of all or any part of the Notes under an effective registration statement under the Securities Act and applicable state securities or "blue sky" laws (it being understood that Issuer has no obligation or intention to undertake any such registration), or an exemption from such registration requirements and in compliance with applicable securities laws. Such Holder has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Notes by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D of the Securities Act, or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act.

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**Section 5.04.** <u>Accredited Investor</u>. Such Holder, at the time that it committed to enter into this Agreement was, and now is, an "accredited investor" as that term is defined in Rule 501 of Regulation D under the Securities Act.

**Section 5.05.** <u>No</u><u> </u><u>Resale</u><u> </u><u>or</u><u> </u><u>Repurchase</u>. No person has made to such Holder any written or oral representations (a) that any person will resell or repurchase the Notes (except in accordance with the Organizational Documents of Issuer), (b) that any person will refund the purchase price of the Notes, or (c) as to the future price or value of the Notes.

**Section 5.06.** <u>Private Placement</u>. Such Holder understands that the Notes are being offered for sale only on a "private placement" basis and that the sale and delivery of the Notes is conditional upon such sale being exempt from the requirements as to the filing of a prospectus or registration statement or delivery of an offering memorandum or upon the issuance of such orders, consents or approvals as may be required to permit such sale without the requirement of filing a prospectus or delivering an offering memorandum and, as a consequence, (a) such Holder is restricted from using most of the civil remedies available under applicable securities legislation, (b) such Holder may not receive information that would otherwise be required to be provided to it under applicable securities legislation, and (c) Issuer is relieved from certain obligations that would otherwise apply under applicable securities legislation.

**Section 5.07.** <u>Knowledge and Experience</u>. Without limiting the force and effect of the representations and warranties of any party to a Note Document, such Holder (a) has such knowledge and experience in financial and business matters, as to enable it to evaluate the merits and risks of entering into this Agreement and receiving the Notes, (b) is able to bear the economic risk of the transaction, (c) is able to hold its interest indefinitely unless a subsequent disposition thereof is registered under the Securities Act or is exempt from registration and is completed in compliance with applicable securities laws, (d) has been independently advised as to restrictions with respect to trading in the Notes imposed by applicable securities laws, (e) confirms that no representation (written or oral) has been made to it (with respect to trading restrictions imposed by applicable securities laws) by or on behalf of Issuer or Agent with respect thereto, (f) has conducted its own investigation of the Issuer and the terms of the Note, (g) (i) confirms it has had access to information as it deemed necessary to make its decision to purchase the Notes, and (ii) has been offered the opportunity to ask questions of the Issuer and receive answers thereto, as it deemed necessary in connection with the decision to purchase the Notes and (h) acknowledges that it is aware of the characteristics of the Notes, and the risks relating to an investment therein.

**Section 5.08.** <u>No Materials</u>. Without limiting the representations and warranties set forth in the Note Documents, such Holder has not received or been provided with, nor has it requested, nor does it have any need to receive, any offering memorandum, any prospectus, sales or advertising literature describing or purporting to describe the business and affairs of Issuer which has been prepared for delivery to, and review by, prospective purchasers in order to assist them in making an investment decision in respect of the Notes.

**Section 5.09.** <u>Transfer Restrictions</u>. Such Holder acknowledges and agrees that none of the Notes has been registered under the Securities Act or the securities laws of any country or state, and none of them may be sold or otherwise transferred in the absence of an effective registration thereunder unless an exemption from registration is available. Such Holder also acknowledges and agrees that the Notes are subject to resale restrictions in the United States, may be subject to resale restrictions in jurisdictions other than the United States under applicable securities laws, and that any sale or transfer will be completed in compliance with applicable securities laws.

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**Section 5.10.** <u>Offers and Sales Only in Certain Circumstances</u>. If such Holder decides to offer, sell, pledge or otherwise transfer any of the Notes, it will not offer, sell, pledge or otherwise transfer any of such Notes, directly or indirectly, unless: (a) the sale is made pursuant to registration of the Notes under the Securities Act; (b) the sale is made to the Issuer in accordance with <u>Section</u> <u>2.09(g)</u>; (c) the sale is made outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S under the Securities Act and in compliance with applicable local securities laws and regulations; (d) the sale is made pursuant to the exemption from the registration requirements of the Securities Act provided by Rule 144 or Rule 144A thereunder, if available, and, in either case, in accordance with any applicable state securities or "blue sky" laws; or (e) the Notes are sold in any other transaction that does not require registration under the Securities Act or any applicable state securities or "blue sky" laws.

**Section 5.11.** <u>Subsequent Purchaser Notification</u>. Such Holder will take reasonable steps to inform, and cause each of its Affiliates and Related Funds that is a U.S. person (as defined in Section 902 of Regulation S under the Securities Act) to take reasonable steps to inform, any person acquiring Notes from such Holder, Affiliate or Related Fund, as the case may be, in the United States that the Notes (a) have not been and will not be registered under the Securities Act, (b) are being sold to them without registration under the Securities Act in reliance on Rule 144A or in accordance with another exemption from registration under the Securities Act and (c) may not be offered, sold or otherwise transferred except (i) to the Issuer in accordance with <u>Section</u> <u>2.09(g)</u>, (ii) outside the United States in accordance with Regulation S and in compliance with applicable local securities laws and regulations or (iii) inside the United States in accordance with (A) Rule 144A to a person whom the seller reasonably believes is a qualified institutional buyer, as defined in Rule 144A ("**Qualified Institutional Buyer**") that is purchasing such Notes for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that the offer, sale or transfer is being made in reliance on Rule 144A or (B) pursuant to another available exemption from registration under the Securities Act.

**ARTICLE VI** 

**AFFIRMATIVE COVENANTS** 

Commencing on the Closing Date and until Payment in Full, each of the Note Parties covenants and agrees with the Holders and Agents that:

**Section 6.01.** <u>Financial</u><u> </u><u>Statements;</u><u> </u><u>Other</u><u> </u><u>Information</u>. The Issuer will furnish to the Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Annual Financial Statements</u>. Not later than ninety–five (95) days after the end of each Fiscal Year of the Issuer, its audited consolidated balance sheet and related statements of operations, members' equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all reported on by independent public accountants of recognized national standing (without a "going concern" or like qualification or exception and without any qualification, exception or explanatory paragraph as to the scope of such audit other than (x) a "going concern" or other qualification that results solely from the Maturity Date being scheduled to occur within one year from the time such opinion is delivered or (y) from any potential inability to satisfy any covenant in <u>Section</u> <u>7.01</u> on a future date or in a future period), without qualification as to scope of audit to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Issuer and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Quarterly</u><u> </u><u>Financial</u><u> </u><u>Statements</u>. Not later than sixty-five (65) days after the end of each of the first three (3) Fiscal Quarters of each Fiscal Year (commencing with September 30, 2024) of the Issuer for each Fiscal Quarter ending thereafter, its consolidated balance sheet and related statements of operations, members' equity and cash flows as of the end of and for such Fiscal Quarter and the then elapsed

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portion of the Fiscal Year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous Fiscal Year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Issuer and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificate</u><u> </u><u>of</u><u> </u><u>Financial</u><u> </u><u>Officer</u><u> </u><u>–</u><u> </u><u>Compliance</u>. Concurrently with any delivery of financial statements under <u>Sections</u><u> </u><u>6.01(a)</u> or <u>6.01(b)</u>, a certificate of a Financial Officer in substantially the form of <u>Exhibit D</u> hereto (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with <u>Section</u> <u>7.01</u> (including setting forth the Issuer's reasonably detailed and certified calculations of the Consolidated Total Net Leverage Ratio and the Asset Coverage Ratio and demonstrating compliance with the applicable financial covenant requirement), (iii) setting forth any change in the legal name of the Note Parties that occurred (if any) during the applicable fiscal period, and (iv) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in <u>Section</u> <u>4.04</u> and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certificate of Financial Officer – Swap Agreements</u>. Concurrently with any delivery of financial statements under <u>Sections</u><u> </u><u>6.01(a)</u> and <u>6.01(b)</u>, a certificate of a Financial Officer, in form satisfactory to the Agent and the Requisite Holders, setting forth as of a recent date, a true and complete list of all Swap Agreements of the Issuer and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark-to-market value therefor (to the extent available), any new credit support agreements relating thereto not listed on <u>Schedule</u><u> </u><u>4.18</u>, any margin required or supplied under any credit support document, and the counterparty to each such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Projections</u>. Concurrently with any delivery of financial statements under <u>Sections</u><u> </u><u>6.01(a)</u>, a reasonably detailed consolidated budget for the then-current fiscal year (including a projected consolidated balance sheet of the Issuer and its Subsidiaries as of the end of such fiscal year, the related quarterly consolidated statements of projected cash flow, capital expenditures and income and a summary of the material underlying assumptions applicable thereto) (collectively, the "**Projections**"), which Projections shall have been prepared in good faith on the basis of the assumptions stated therein, which assumptions were believed to be reasonable at the time of preparation of such Projections, it being recognized by the Agent and the Holders that such Projections are as to future events and are not to be viewed as facts, the Projections are subject to significant uncertainties and contingencies, many of which are beyond the control of the Issuer and the Subsidiaries, that no assurance can be given that any particular Projections will be realized and that actual results during the period or periods covered by any such Projections may differ from the projected results and such differences may be material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Certificate of Insurer – Insurance Coverage</u>. Concurrently with any delivery of financial statements under <u>Section</u> <u>6.01(a)</u>, a certificate of a Responsible Officer of the Issuer, certifying that (i) the insurance requirements of <u>Section</u> <u>6.06</u> have been implemented and are being complied with, (ii) the Note Parties have paid or caused to be paid all insurance premiums then due and payable and (iii) the Note Parties are in compliance with the insurance policies, and attaching each certificate of insurance required pursuant to <u>Section</u> <u>6.06</u>, and, if requested by the Agent or any Holder, all copies of the applicable policies and endorsements to the extent not previously delivered.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Other Accounting Reports</u>. Promptly upon receipt thereof, a copy of each other report or letter submitted to the Note Parties or any of their Subsidiaries by independent accountants (other than customary and standard correspondence) in connection with any annual, interim or special audit made by them of the books of the Note Parties or any such Subsidiary, and a copy of any response by the Note Parties or any such Subsidiary, or the Board of Directors (or comparable Governing Body) of the Note Parties or any such Subsidiary, to such letter or report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Lists of Purchasers</u>. To the extent the Note Parties take any material amount of Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, concurrently with the delivery of any Reserve Report, a list of all Persons purchasing Hydrocarbons from the Note Parties or any Restricted Subsidiary with respect to which such in-kind deliveries are taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Notice of Sales of Oil and Gas Properties and Termination of Swap Agreements</u>. In the event the Note Parties or any Subsidiary intends to sell, transfer, assign or otherwise dispose of (including pursuant to a Casualty Event) any Oil and Gas Properties (other than Hydrocarbons in the ordinary course of business) or any Equity Interests in any Subsidiary in accordance with <u>Section</u> <u>7.09(d)</u> or <u>Section</u> <u>7.09(k)</u>, in each case, in an aggregate amount in excess of $500,000, at least three (3) Business Days' (or such shorter time as the Requisite Holders may agree in their sole discretion) prior written notice of such disposition prior to consummation of such disposition (other than with respect to pursuant to a Casualty Event), including the price thereof and any other details thereof reasonably requested by the Requisite Holders. In the event that the Note Parties or any Subsidiary receives any notice of early termination of any material Swap Agreement to which it is a party from any of its counterparties, or any material Swap Agreement to which the Note Parties or any Subsidiary is a party is terminated, prompt written notice of the receipt of such early termination notice or such termination, as the case may be, together with a reasonably detailed description thereof and any other details thereof reasonably requested by the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Information Regarding Issuer and Guarantors</u>. Prompt written notice (and in any event within five (5) Business Days thereafter, or such later date as the Requisite Holders may agree in their sole discretion) of any change (i) in the Issuer's or any Guarantor's organizational name, (ii) in the location of the Issuer's or any Guarantor's chief executive office or principal place of business, (iii) in the Issuer's or any Guarantor's identity or organizational structure or in the jurisdiction in which such Person is incorporated or formed, (iv) in the Issuer's or any Guarantor's organizational identification number in such jurisdiction of organization, and (v) in the Issuer's or any Guarantor's federal taxpayer identification number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Notices</u><u> </u><u>of</u><u> </u><u>Certain</u><u> </u><u>Changes</u>. Promptly, but in any event within five (5) Business Days after the execution thereof (or such later date as the Requisite Holders may agree in their sole discretion), copies of any material amendment, modification or supplement to the certificate or articles of incorporation or formation, bylaws, certificate or articles of organization, regulations or limited liability company agreement, any preferred stock designation or any other Organizational Document of the Note Parties or any Restricted Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>SEC and Other Filings</u>. Promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed by the Note Parties or any Restricted Subsidiary with the SEC, or with any national securities exchange. Notwithstanding the foregoing, the Issuer shall in no event be required to deliver to, or otherwise provide or disclose to, any Holder any information for which the Issuer is requesting (assuming such request has not been denied), or has received, confidential treatment from the Commission, or any correspondence with the SEC. Any such document or report that the Issuer files with the SEC via the SEC's EDGAR system (or any successor thereto) shall be deemed to be delivered to the Holder for purposes of this Section 6.01(m) at the time such documents are filed via the EDGAR system (or such successor).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Beneficial</u><u> </u><u>Ownership</u><u> </u><u>Certification</u>. Promptly, but in no event later than five (5) Business Days of the occurrence of such change, written notice of any change in the information provided in the Beneficial Ownership Certification delivered to any Holder that would result in a change to the list of beneficial owners identified in such certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Free Cash Flow; Lease Operating Statements</u>. Not later than each "Applicable Updated LOS/CF Delivery Date" as set forth in <u>Appendix C</u>, commencing on October 20, 2024 (such certificate delivered on October 20, 2024, the "<u>Initial LOS/CF Certificate</u>"), deliver (i) a certificate of a Responsible Officer in substantially the form of <u>Exhibit</u><u> </u><u>K</u> setting forth reasonably detailed calculations of (A) (i) for each certificate delivered after the Initial LOS/CF Certificate, Free Cash Flow (Back) and (ii) Free Cash Flow (Forward), in each case for the related "Applicable CF Period" set forth in <u>Appendix</u><u> </u><u>C</u>, (B) Projected Cash Flow From Operating Activities for the then current "Applicable CF Period" and a summary of the material underlying assumptions applicable thereto, which Projected Cash Flow From Operating Activities shall have been prepared in good faith on the basis of the assumptions stated therein, (C) for each certificate delivered after the Initial LOS/CF Certificate, any Prior Period Adjustments, and (D) for each certificate delivered after the Initial LOS/CF Certificate, any other components of Free Cash Flow (Back) and Free Cash Flow (Forward) realized as of the date of the certificate, (ii) lease operating statements for the most recently ended fiscal quarter in form and detail substantially consistent with the lease operating statements delivered to Holders pursuant to <u>Section</u> <u>3.01(v)</u> for each such fiscal quarter from the Oil and Gas Properties and other information reasonably requested by the Requisite Holders with reasonable advance notice (and which includes the volume of production and sales attributable to production (and the prices at which such sales were made and the revenues derived from such sales) for each such fiscal quarter from the Oil and Gas Properties, and sets forth the related ad valorem, severance and production taxes (if applicable), capital expenditures and lease operating expenses attributable thereto and incurred for each such fiscal quarter), in each case for this <u>Section</u> <u>6.01(o)(ii)</u> certified by a Responsible Officer of the Issuer as presenting fairly in all material respects the information contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Free</u> <u>Cash</u><u> </u><u>Flow</u><u> </u><u>Utilizations.</u> In the event the Issuer or any Restricted Subsidiary intends to effect a Free Cash Flow Utilization, at least three (3) Business Days' (or such later date as the Requisite Holders may agree in their sole discretion) prior to such intended Free Cash Flow Utilization, deliver a certificate of a Responsible Officer in substantially the form of <u>Exhibit</u><u> </u><u>K</u> hereto setting forth reasonably detailed calculations of Distributable Free Cash Flow (after giving effect to such Free Cash Flow Utilization) for the "Applicable CF Period" set forth in <u>Appendix</u><u> </u><u>C</u> applicable to the calendar month during which such Free Cash Flow Utilization is proposed to be made (i.e., the applicable "Distribution Month" set forth in <u>Appendix C</u>). The calculations of Distributable Free Cash Flow shall use the Projected Cash Flow From Operating Activities reflected in the most recently delivered LOS/CF Certificate and will use other components of Free Cash Flow (Back) and Free Cash Flow (Forward) to the extent they have been realized prior to the date of the certificate of a Responsible Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Environmental,</u><u> </u><u>Social</u><u> </u><u>and</u><u> </u><u>Governance</u><u> </u><u>Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon notice from an operator of a Material Environmental and Social Incident occurs, (A) reasonably prompt notification, but in any event within fifteen (15) Business Days, of such Material Environmental and Social Incident, (B) concurrently deliver a brief statement of the remedial plan such operator has undertaken or plans to undertake to address such Material Environmental and Social Incident and (C) reasonably prompt notification, but in any event within fifteen (15) Business Days, of the completion of such remedial plan or the abandonment thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within sixty (60) days of request by the Requisite Holders, no more than once in any 12-month period, (A) a materially completed environmental, social and governance survey (an "**ESG Survey**") provided to the Issuer by the Requisite Holders in the form substantially consistent with the ESG Survey template provided by the Holders to the Issuer on August 20, 2024, but with the Issuer's previous year's responses updated by the Issuer, as applicable and (B) host a conference call or teleconference at a time mutually acceptable to the Issuer and the Requisite Holders to discuss the emissions and climate related policies and activities of the Issuer and its Restricted Subsidiaries and matters relating to the ESG Survey; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) reasonably promptly following request, any additional material information related to environmental, social and governance matters of the Issuer as the Agent or the Requisite Holders may reasonably request from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Other Requested Information</u>. Promptly following any request therefor, (i) such other information regarding the operations, business affairs and financial condition of the Note Parties or any Subsidiary (including, without limitation, any Plan sponsored by the Issuer or a Restricted Subsidiary and any reports or other information required to be filed with respect thereto under the Internal Revenue Code or under ERISA), or compliance with the terms of this Agreement or any other Note Document, as the Agent or any Holder may reasonably request; or (ii) information and documentation reasonably requested by the Agents or any Holder for purposes of compliance with applicable "know your customer" requirements under the USA PATRIOT Act, other applicable anti-money laundering laws or the Beneficial Ownership Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Material Contract Information</u>. Concurrently with any delivery of financial statements under <u>Section</u> <u>6.01(a)</u> or <u>Section</u> <u>6.01(b)</u>, copies of any material amendments, modifications, consents and waivers to, and termination (including rejections) and assignment of, any Material Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Regulatory Notices</u>. Promptly, but in any event within ten (10) Business Days (or such longer period as the Requisite Holders may agree to in their sole discretion) after receipt thereof by the Note Parties or any Subsidiary, a copy of any material notice, summons, citation, proceeding or order received from any Governmental Authority concerning the regulation of the Properties of the Note Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Consolidated</u> <u>Total</u><u> </u><u>Net</u><u> </u><u>Leverage</u><u> </u><u>Ratio;</u><u> </u><u>Asset</u><u> </u><u>Coverage</u><u> </u><u>Ratio</u>. No later than three (3) (or with respect to a Material Disposition, five (5)) Business Days prior to the consummation of any event or transaction that requires the calculation of, and compliance with, a Consolidated Total Net Leverage Ratio and/or an Asset Coverage Ratio, in each case on a Distribution PF Basis, (i) a certificate of a Responsible Officer of the Issuer (A) with respect to the Consolidated Total Net Leverage Ratio, (I) setting forth the Issuer's reasonably detailed and certified calculations of such Consolidated Total Net Leverage Ratio on a Distribution PF Basis and demonstrating compliance with the applicable Consolidated Total Net Leverage Ratio requirement and (II) certifying that the information set forth in the updated lease operating statement referenced in <u>Section</u> <u>6.01(u)(ii)(A)</u> is true and correct and (B) with respect to the Asset Coverage Ratio, (I) setting forth the Issuer's reasonably detailed and certified calculations of such Asset Coverage Ratio on a Distribution PF Basis and demonstrating compliance with the applicable Asset Coverage Ratio requirement and (II) certifying that information set forth in the updated reserve database referenced in <u>Section</u> <u>6.01(u)(ii)(B)</u> is true and correct, it being understood by the Agent and the Holders that projections concerning volumes and production and cost estimates contained therein are necessarily based upon opinions, estimates and projections and that neither the Issuer nor such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate and (ii) with respect to the Asset Coverage Ratio tested (A) in connection with a Material Disposition, an updated reserve database with respect to the Oil and Gas Properties of the Issuer and its Restricted Subsidiaries, giving effect to and reflecting such event or transaction and any other items necessary to be taken into account in

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accordance with the definition of Distribution PF Basis and <u>Section</u> <u>1.05</u>, including any Specified Reserve Updates, that is in form and detail substantially consistent with the reserve database used in connection with the preparation of each internally prepared Reserve Report delivered pursuant to <u>Section</u> <u>6.11</u>, including setting for current production figures and estimates with respect to such Oil and Gas Properties as of the date of delivery and (B) otherwise, an updated reserve database with respect to the Oil and Gas Properties of the Issuer and its Restricted Subsidiaries giving effect to the updated Strip Price as set forth in <u>Section</u> <u>1.05(c)</u>. Any such certificate of a Responsible Officer of the Issuer delivered in accordance with this <u>Section</u> <u>6.01(u)</u> shall set forth the amount of any Distribution PF Basis adjustment to the extent not set forth in a previously delivered certificate, or any change in the amount of a Distribution PF Basis adjustment set forth in a previously delivered certificate and, in either case, in reasonable detail together with the calculations and basis therefor.

**Section 6.02.** <u>Notices of Material Events</u>. Promptly (and in any event within three (3) Business Days) after a Responsible Officer of the Issuer or any Subsidiary obtains knowledge thereof, the Issuer will furnish to the Agent (which shall make such information available to the Holders) written notice of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the occurrence of any Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the filing or commencement of, or the threat in writing of, any action, suit, proceeding, investigation or arbitration by or before any arbitrator or Governmental Authority against or affecting the Note Parties or any Restricted Subsidiary not previously disclosed in writing to the Holders or any material adverse development in any action, suit, proceeding, investigation or arbitration (whether or not previously disclosed to the Holders) that, in either case, if adversely determined, could reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the occurrence of any ERISA Event that results in, or could reasonably be expected to result in, a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.

Each notice delivered under this <u>Section</u> <u>6.02</u> shall be accompanied by a statement of a Responsible Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

**Section 6.03.** <u>Existence; Conduct of Business</u>. The Note Parties will, and will cause each Restricted Subsidiary to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence in a jurisdiction of the United States and the rights, licenses, permits, privileges and franchises material to the conduct of its business and maintain, if necessary, its qualification to do business in each other jurisdiction in which its Properties are located or the ownership of its Properties requires such qualification, except where the failure to so qualify could not reasonably be expected to have a Material Adverse Effect.

**Section 6.04.** <u>Payment of Taxes</u>. The Note Parties will, and will cause each Restricted Subsidiary to, pay all Tax liabilities of the Note Parties and all of their Restricted Subsidiaries before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings and the Note Parties or such Restricted Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) the failure to make payment could not reasonably be expected to result in a Material Adverse Effect.

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**Section 6.05.** <u>[Reserved]</u>.

**Section 6.06.** <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will, and will cause each Restricted Subsidiary to, maintain, with financially sound and reputable insurance companies (at the time the relevant coverage is placed or renewed), insurance (i) in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses and (ii) in accordance with all Governmental Requirements. The loss payable clauses or provisions in said insurance policy or policies insuring any of the Collateral for the Obligations shall be endorsed in favor of and made payable to the Agents as its interests may appear and such policies shall name the Agents and the Holders as "additional insureds" (and mortgagee, if applicable) and Agents as lender loss payee and provide that the insurer will endeavor to give at least thirty (30) days' prior notice of any cancellation to the Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will notify the Agents and the Requisite Holders promptly whenever any separate insurance concurrent in form or contributing in the event of loss with that required to be maintained under this <u>Section</u> <u>6.06</u> is, to the actual knowledge of the Note Parties or a Restricted Subsidiary thereof, taken out by the Note Parties or such Restricted Subsidiary thereof; and promptly deliver to the Agents a duplicate original copy of such policy or policies to the extent available to such Person.

**Section 6.07.** <u>Books</u><u> </u><u>and</u><u> </u><u>Records;</u><u> </u><u>Inspection</u> <u>Rights</u>. The Note Parties will, and will cause each Restricted Subsidiary to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Issuer will, and will cause each Restricted Subsidiary to, permit any representatives designated by the Agent or any Holder, upon reasonable prior notice, to visit and inspect its Properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested; <u>provided</u> that so long as no Event of Default has occurred and is continuing, the Note Parties and their Restricted Subsidiaries shall not be required to reimburse the Agent or any Holder for more than one (1) inspection during any Fiscal Year.

**Section 6.08.** <u>Compliance</u><u> </u><u>with</u><u> </u><u>Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will, and will cause each Restricted Subsidiary to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its Property and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business, except where such non-compliance would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will, and will cause each of their Subsidiaries to, maintain in effect and enforce such policies and procedures reasonably designed to promote compliance by the Note Parties and their Subsidiaries and each of their respective directors, officers, employees and agents with Anti-Corruption Laws, applicable Sanctions and the USA PATRIOT Act.

**Section 6.09.** <u>Environmental</u><u> </u><u>Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties shall: (i) comply, and shall cause its Properties and operations and each Restricted Subsidiary and each Restricted Subsidiary's Properties and operations to comply, with all applicable Environmental Laws, except where the failure to so comply could not be reasonably expected to have a Material Adverse Effect; (ii) handle, store, and prevent any Release or threatened Release of, and shall cause each Restricted Subsidiary to handle, store and prevent any Release or threatened Release of, any Hazardous Material on, under, about or from any of the Note Parties' or their Restricted Subsidiaries'

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Properties or any other property offsite the Property to the extent caused by the Note Parties' or any of their Restricted Subsidiaries' operations in compliance with applicable Environmental Laws, except in each case, where the failure to do so could not reasonably be expected to have a Material Adverse Effect; (iii) timely obtain or file, and shall cause each Restricted Subsidiary to timely obtain or file, all Environmental Permits, if any, required under applicable Environmental Laws to be obtained or filed in connection with its operation or use of the Note Parties' or their Restricted Subsidiaries' Properties, except, in each case, where the failure to obtain or file could not reasonably be expected to have a Material Adverse Effect; (iv) promptly commence and diligently prosecute to completion, and shall cause each Restricted Subsidiary to promptly commence and diligently prosecute to completion, any assessment, evaluation, investigation, monitoring, containment, cleanup, removal, repair, restoration, remediation or other remedial obligations to the extent required under Environmental Law (collectively, the "**Remedial Work**") because of or in connection with the actual or suspected past, present or future Release or threatened Release of any Hazardous Material on, under, about or from any of the Note Parties' or their Restricted Subsidiaries' Properties, which failure to commence and diligently prosecute to completion could reasonably be expected to have a Material Adverse Effect; (v) conduct, and cause its Restricted Subsidiaries to conduct, their respective operations and businesses in a manner that will not expose any Property or Person to Hazardous Materials in violation of Environmental Law or as would result in liability under Environmental Law, if such exposure could reasonably be expected to have a Material Adverse Effect; and (vi) establish and implement, and shall cause each Restricted Subsidiary to establish and implement, such procedures as may be necessary to regularly determine and assure that the Note Parties' and their Restricted Subsidiaries' obligations under this <u>Section</u> <u>6.09(a)</u> are timely and fully satisfied, which failure to establish and implement could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will promptly, but in no event later than fifteen (15) days after any Note Party obtains knowledge thereof, notify the Agent and the Holders in writing of any threatened (in writing) action, investigation or inquiry by any Governmental Authority or any threatened demand (in writing) or lawsuit by any Person against the Note Parties or their Restricted Subsidiaries or their Properties of which the Note Party has knowledge in connection with any Environmental Laws if the Note Parties could reasonably anticipate that any of the foregoing will result in liability (whether individually or in the aggregate), if not covered by insurance, to the extent such liability could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent available, the Note Parties will, and will cause each Restricted Subsidiary to, provide environmental assessments, audits and tests obtained by the Note Parties or any Restricted Subsidiary in connection with any future acquisition of Oil and Gas Properties or other Properties to the Agent, other than an acquisition of additional interests in Oil and Gas Properties in which the Note Parties or any Restricted Subsidiary previously held an interest.

**Section 6.10.** <u>Further</u> <u>Assurances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Note Parties at its sole expense will, and will cause each Restricted Subsidiary to, promptly execute and deliver to the Agents all such other documents, agreements and instruments reasonably requested by the Agents or the Requisite Holders to comply with, cure any defects or accomplish the conditions precedent, covenants and agreements of the Note Parties or any Restricted Subsidiary, as the case may be, in the Note Documents, including the Notes, or to further evidence and more fully describe the Collateral intended as security for the Obligations, or to correct any omissions in this Agreement or the Collateral Documents, or to state more fully the obligations secured therein, or to perfect, protect or preserve any Liens created pursuant to this Agreement or any of the Collateral Documents or the priority thereof, or to make any recordings, file any notices or obtain any consents, all as may be reasonably necessary or appropriate, in the sole discretion of the Agent or the Requisite Holders, in connection therewith. In addition, at any Agent's request, each Note Party, at its sole expense, shall provide any information

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requested to identify any Collateral pledged by it, exhibits to Mortgages in form and substance reasonably satisfactory to such Agent (at the direction of the Requisite Holders) (which such exhibits shall be in recordable form for the applicable jurisdiction) or any other information requested in connection with the identification of any Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Note Parties hereby authorizes the Collateral Agent to file one or more financing or continuation statements, and amendments thereto, relative to all or any part of the Mortgaged Property without the signature of the Note Parties or any other Guarantor where permitted by law. A carbon, photographic or other reproduction of the Collateral Documents or any financing statement covering the Mortgaged Property or any part thereof shall be sufficient as a financing statement where permitted by law. Each of the Note Parties acknowledges and agrees that any such financing statement may describe the collateral as "all assets" or "all assets of Debtor, whether now owned or hereafter acquired and wherever located" of the applicable Note Party or words of similar effect as may be required by the Collateral Agent or the Requisite Holders. The grant of authority to the Collateral Agent under this <u>Section</u> <u>6.10(b)</u> shall not be construed as a duty on any Agent to make any filings or otherwise perfect or maintain the perfection of the Collateral Agent's security interest, for the benefit of the Secured Parties, in the Collateral.

**Section 6.11.** <u>Reserve</u> <u>Reports</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before March 3rd, May 1st, August 1st and November 1st of each year, commencing November 1, 2024, the Issuer shall furnish to the Agent and the Holders a Reserve Report evaluating, as of December 31 (for each March delivery), March 31 (for each May delivery), June 30 (for each August delivery) and September 30 (for each November delivery), the Proved Reserves of the Issuer and the Note Parties located within the geographic boundaries of the United States of America. The Reserve Report as of December 31 (for each March delivery) of each year starting with December 31, 2024 shall be prepared by one or more Approved Petroleum Engineers, and the Reserve Report as of March 31 (for each May delivery), June 30 (for each August delivery) and September 30 (for each November delivery) of each year (beginning March 31, 2024), shall be a report prepared by or under the supervision of the chief engineer or qualified agent of the Issuer who shall, in each case, certify such Reserve Report to be true and accurate in all material respects and to have been prepared in accordance with the procedures used (x) with respect to each March delivery, the Reserve Report as of December 31, 2023 and (y) with respect to each May, August and November delivery, the immediately preceding December 31 Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With the delivery of each Reserve Report, the Issuer shall provide to the Agent and the Holders a Reserve Report Certificate from a Responsible Officer certifying that in all material respects: (i) the information contained in the Reserve Report and any other information delivered in connection therewith is true and correct to the best knowledge of the Issuer, it being understood by the Agent and the Holders that projections concerning volumes and production and cost estimates contained in each Reserve Report are necessarily based upon opinions, estimates and projections and that neither the Issuer nor such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate, (ii) the Issuer or another Note Party has good and defensible title to the Oil and Gas Properties evaluated in such Reserve Report (other than those (A) disposed of since the date of such Reserve Report as permitted in accordance with the terms hereof and (B) leases that have expired in accordance with their terms) and such Oil and Gas Properties are free of all Liens except for Liens permitted by <u>Section</u> <u>7.03</u>, (iii) except as set forth on an exhibit to the certificate or previously disclosed to the Agent and the Requisite Holders in writing, to the extent the Note Parties take Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, on a net basis there are no gas imbalances, take or pay or other prepayments, the value of which exceed the volume threshold specified in <u>Section</u> <u>4.16</u>, with respect to the Note Parties' Oil and Gas Properties evaluated in such Reserve Report which would require the Issuer or any other Note Party to deliver Hydrocarbons either generally or produced from such Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor, (iv) none of the Note Parties, Oil and Gas

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Properties have been sold since the "as of" date of the last Reserve Report except (A) those Note Parties, Oil and Gas Properties listed on such certificate as having been disposed or (B) as previously disclosed to the Agent and the Requisite Holders in writing, (v) [reserved] and (vi) attached thereto is a schedule demonstrating compliance (calculated at the time of delivery of such Reserve Report) with the Collateral Coverage Minimum.

**Section 6.12.** <u>Title</u><u> </u><u>Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before the delivery to the Agent and the Holders of each Reserve Report required by <u>Section</u> <u>6.11(a)</u>, the Issuer will deliver title information (in form and substance reasonably acceptable to the Requisite Holders) covering enough of the Oil and Gas Properties evaluated by such Reserve Report that were not included in the immediately preceding Reserve Report, so that the Requisite Holders shall have received together with title information previously delivered to the Requisite Holders, reasonably satisfactory title information on at least 90% on the PV-10 of the Oil and Gas Properties evaluated by such Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Issuer has provided title information for additional Properties under <u>Section</u> <u>6.12(a)</u>, the Issuer shall, within forty-five (45) days after notice from the Requisite Holders that title defects or exceptions exist with respect to such additional Properties, either (i) cure any such title defects or exceptions (including defects or exceptions as to priority) which are not permitted by <u>Section</u> <u>7.03</u> raised by such information, (ii) substitute acceptable Mortgaged Properties with no title defects or exceptions except for those permitted by <u>Section</u> <u>7.03</u> having an equivalent value or (iii) deliver title information in form and substance reasonably acceptable to the Requisite Holders so that the Requisite Holders shall have received, together with title information previously delivered to the Requisite Holders, reasonably satisfactory title information on at least 90% of the PV-10 of the Oil and Gas Properties evaluated by such Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Issuer is unable to cure any title defect requested by the Requisite Holders to be cured within the forty-five (45) day period or the Issuer does not comply with the requirements to provide acceptable title information covering 90% of the PV-10 of the Oil and Gas Properties evaluated in the most recent Reserve Report, such default shall not be a Default, but instead the Agent and/or the Requisite Holders shall have the right to exercise the following remedy in their sole discretion from time to time, and any failure to so exercise this remedy at any time shall not be a waiver as to future exercise of the remedy by the Agent or the Requisite Holders. To the extent that Agent or the Requisite Holders are not satisfied with title to any Oil and Gas Properties evaluated in such Reserve Report after the periods described in <u>Section</u> <u>6.12(b)</u> have elapsed, the Issuer shall, at the request of Agent (acting at the direction of Requisite Holders) or the Requisite Holders, (i) resubmit a revised Reserve Report to the Agent (for delivery to the Holders) removing such unacceptable Oil and Gas Property and such revised Reserve Report shall constitute the most recently delivered Reserve Report for all purposes under this Agreement and (ii) the Asset Coverage Ratio shall be recalculated and compliance with respect to such ratio shall be based upon the revised Reserve Report delivered under <u>clause</u><u> </u><u>(i)</u> above (and, with respect to such Oil and Gas Property that is unacceptable, the Asset Coverage Ratio shall be calculated and compliance with respect to such ratio shall be subject to the terms of <u>Section</u> <u>1.05(a)(ii)</u> for so long as title to such Oil and Gas Property continues to be unacceptable).

**Section 6.13.** <u>Collateral</u><u> </u><u>and</u><u> </u><u>Guaranty</u> <u>Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the delivery of each Reserve Report hereunder, the Note Parties shall review the applicable Reserve Report, if any, and the list of current Mortgaged Properties (as described in <u>Section</u> <u>6.11(b)</u>) to ascertain whether the Mortgaged Properties represent at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the most recently completed Reserve Report (the "**Collateral Coverage Minimum**"). In the event that the PV-10 of the Mortgaged Properties (calculated at the time of

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redetermination) does not satisfy the Collateral Coverage Minimum, then the Note Parties shall, and shall cause their Restricted Subsidiaries to, grant, within thirty (30) days of delivery of the certificate required under <u>Section</u> <u>6.11(b)</u> (or such longer period as the Requisite Holders may agree in their sole discretion, but not to extend beyond a total of ninety (90) days following the delivery of such certificate), to the Collateral Agent as security for the Obligations a first priority Lien interest subject to Liens permitted under <u>Section</u> <u>7.03</u> on additional Oil and Gas Properties of the Note Parties not already subject to a Lien of the Collateral Documents such that after giving effect thereto, the PV-10 of the Mortgaged Properties (calculated at the time of such redetermination) meets the Collateral Coverage Minimum. All such Liens will be created and perfected by and in accordance with the provisions of deeds of trust, mortgages, security agreements and financing statements or other Collateral Documents, all in form and substance reasonably satisfactory to the Requisite Holders and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes. In order to comply with the foregoing, if any Restricted Subsidiary places a Lien on its Oil and Gas Properties and such Restricted Subsidiary is not a Guarantor, then it shall become a Guarantor and comply with <u>Section</u> <u>6.13(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that (i) the Issuer or any other Note Party creates or acquires any Restricted Subsidiary that is a Material Subsidiary or any Restricted Subsidiary is a Material Subsidiary or (ii) any Subsidiary incurs or guarantees any Debt, the applicable Note Party shall, within thirty (30) days from the date of such creation, acquisition, incurrence, or guarantee (or such later date as the Requisite Holders may agree in their sole discretion), cause such Restricted Subsidiary to execute and deliver the Guaranty Agreement and the Pledge and Security Agreement (or a supplement to such documents, as applicable) pursuant to which such Restricted Subsidiary shall guaranty the Obligations and grant a security interest in such Restricted Subsidiary's Collateral; <u>provided</u> that such Restricted Subsidiary will not own any Oil and Gas Properties until delivery of such Guaranty Agreement or Pledge and Security Agreement (or a supplement to such documents, as applicable); provided, further, that notwithstanding the foregoing, Excluded Subsidiaries shall not be required to become Guarantors or pledge any Collateral. In the event that the Issuer or any other Note Party creates or acquires any Restricted Subsidiary, the Note Party that owns the Equity Interests in such new Restricted Subsidiary shall execute and deliver a supplement to the Pledge and Security Agreement, pursuant to which such Note Party will ratify the pledge of all of the Equity Interests of such new Restricted Subsidiary to secure the Obligations. In connection with the foregoing, the Note Parties shall deliver to the Collateral Agent original certificates, if any, evidencing the Equity Interests of such new Restricted Subsidiary, together with appropriate undated stock powers for each certificate duly executed in blank by the registered owner thereof, and execute and deliver such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Agents or the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Agent, without the consent of the Requisite Holders, shall enter into any Mortgage in respect of any real property acquired by any Note Party after the Closing Date until the date that is, (A) if the Mortgage relating to such Mortgaged Property contains standard exclusionary language with respect to Improved Mortgaged Property, the date of acquisition of such Mortgaged Property or (B) if the Mortgage relating to such Mortgaged Property does not contain standard exclusionary language with respect to Improved Mortgaged Property, the date that is thirty (30) days after the Agent (acting at the direction of the Requisite Holders) has delivered to the Holders the following documents in respect of such real property: (1) a completed flood hazard determination from a third party vendor; (2) if such real property is located in a "special flood hazard area", (I) a notification to the applicable Note Parties of that fact and (if applicable) notification to the applicable Note Parties that flood insurance coverage is not available and (II) evidence of the receipt by the applicable Note Parties of such notice; and (3) if required by Flood Insurance Regulations, evidence of required flood insurance.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No MIRE Event may be closed, without the consent of the Requisite Holders, until the date that is, (A) if the Mortgage relating to all Mortgaged Properties contains standard exclusionary language with respect to Improved Mortgaged Property, the date of such MIRE Event or (B) if the Mortgage relating to all Mortgaged Properties does not contain standard exclusionary language with respect to Improved Mortgaged Property, thirty (30) days after the Agent (acting at the direction of the Requisite Holders) has delivered to the Holders the following documents in respect of such real property: (1) a completed flood hazard determination from a third party vendor; (2) if such real property is located in a "special flood hazard area", (I) a notification to the applicable Note Parties of that fact and (if applicable) notification to the applicable Note Parties that flood insurance coverage is not available and (II) evidence of the receipt by the applicable Note Parties of such notice; and (3) if required by Flood Insurance Regulations, evidence of required flood insurance.

**Section 6.14.** <u>ERISA Compliance</u>. The Note Parties will promptly furnish and will cause the Restricted Subsidiaries to promptly furnish to the Holders if specifically requested in writing by any Holder, promptly after the filing thereof with the United States Secretary of Labor or the Internal Revenue Service, copies of each annual report (Form 5500 series) with respect to each Plan sponsored by the Issuer or a Restricted Subsidiary or any trust created thereunder.

**Section 6.15.** <u>Commodity Exchange Act Keepwell Provisions</u>. The Note Parties hereby guarantees the payment and performance of all of the Obligations of each Note Party (other than the Issuer) and absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Note Party (other than the Issuer) in order for such Note Party to honor its obligations under its respective Guaranty Agreement including obligations with respect to Swap Agreements (<u>provided</u>, <u>however</u>, that the Issuer shall only be liable under this <u>Section</u> <u>6.15</u> for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this <u>Section</u> <u>6.15</u>, or otherwise under this Agreement or any Note Document, as it relates to such other Note Parties, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of the Note Parties under this <u>Section</u> <u>6.15</u> shall remain in full force and effect until Payment in Full. The Note Parties intend that this <u>Section</u> <u>6.15</u> constitute, and this <u>Section</u> <u>6.15</u> shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each other Note Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

**Section 6.16.** <u>Deposit Accounts and Securities Accounts</u>. Subject to <u>Section</u> <u>6.19</u>, each of the Issuer and the other Note Parties shall (at its own expense) cause each of its Deposit Accounts, each of its Commodity Accounts and each of its Securities Accounts to be subject to a Control Agreement; <u>provided</u>, no such Control Agreement shall be required for Excluded Accounts.

**Section 6.17.** <u>Use</u><u> </u><u>of</u><u> </u><u>Proceeds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The proceeds of the Notes will be used for the purposes set forth in <u>Section</u> <u>2.04</u>, and not, for the avoidance of doubt, any Restricted Payment, any return of capital to the Issuer's Equity Interest holders or any other distribution. No part of the proceeds of the Notes will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties shall not use, and the Note Parties shall procure that their Subsidiaries and their and their respective directors, officers, employees and agents shall not use, the proceeds of the Notes (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, to the extent that such activities, businesses or transaction would be prohibited by Sanctions if conducted by a corporation incorporated in the U.S. or the European Union or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

**Section 6.18.** <u>Swap</u><u> </u><u>Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or prior to the Closing Date the Note Parties shall enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Closing Date, seventy-five percent (75%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties shall prior to the end of each Fiscal Quarter enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the end of the applicable Fiscal Quarter, sixty-five percent (65%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of (i) gas and (ii) at all times when the Note Parties are producing more than 200 net barrels of oil per day, oil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or prior to the Closing Date the Note Parties shall enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Closing Date, fifty percent (50%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of Appalachia Gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Note Parties shall prior to the end of each Fiscal Quarter enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the end of the applicable Fiscal Quarter, forty percent (40%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of Appalachia Gas.

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**Section 6.19.** <u>Post-Closing</u><u> </u><u>Covenant</u>. Within thirty (30) days of the Closing Date (or such later date with the consent of the Requisite Holders in their sole discretion), the Agent and the Holders shall have received (a) a Mortgage encumbering each Mortgaged Property in favor of the Collateral Agent, duly executed and acknowledged by each Note Party that is the owner of or holder of any interest in such Mortgaged Property, and otherwise in form for recording in the recording office of each applicable jurisdiction where each such Mortgaged Property is situated and that will, when properly recorded (or when the applicable financing statements related thereto are properly filed or such other actions needed to perfect are taken) create a valid, perfected first priority security interest (after giving effect to Excepted Liens identified in <u>clauses (a)</u> through <u>(d)</u>, <u>(f)</u> and <u>(i)</u> of the definition thereof, but subject to the provisos at the end of such definition) on at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the Initial Reserve Report and Acquired Assets Reserve Report on a consolidated basis, (b) customary legal opinions of local counsel for the relevant Note Parties in the jurisdiction where such Mortgaged Property is located and (c) Control Agreements for each of the Note Parties' Deposit Accounts, Commodity Accounts and Securities Accounts required to be delivered pursuant to <u>Section</u> <u>6.16</u>.

**ARTICLE VII** 

**NEGATIVE COVENANTS** 

Each Note Party covenants and agrees with the Agents and each of the Holders that, until Payment in Full, each Note Party will not, and will cause its Subsidiaries not to:

**Section 7.01.** <u>Financial</u><u> </u><u>Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Consolidated Total Net Leverage Ratio</u>. The Issuer will not, (i) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on December 31, 2024) permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 3.50 to 1.00 and (ii) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on June 30, 2026), permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 3.00 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Asset</u><u> </u><u>Coverage</u><u> </u><u>Ratio</u>. The Issuer will not permit the Asset Coverage Ratio (determined by reference to the most recently delivered Reserve Report on a Pro Forma Basis) (i) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending December 31, 2024) to be less than 1.00 to 1.00 and (ii) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on June 30, 2026) to be less than 1.20 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Right</u> <u>to</u><u> </u><u>Cure</u>. In the event the Issuer fails to comply with the requirements of <u>Sections</u><u> </u><u>7.01(a)</u> or <u>7.01(b)</u>, beginning on the first date after the last day of the Fiscal Quarter for which the financial covenants in <u>Sections</u><u> </u><u>7.01(a)</u> or <u>7.01(b)</u> are being tested, until the expiration of the tenth Business Day subsequent to the date the compliance certificate for calculating the Consolidated Total Net Leverage Ratio and the Asset Coverage Ratio is required to be delivered pursuant to <u>Section</u> <u>6.01(c)</u> (the "**Cure Period**"), the Issuer shall be permitted to cure such failure to comply by requesting that the Consolidated Total Net Leverage Ratio and/or the Asset Coverage Ratio be recalculated by reducing the Issuer's Total Net Debt as the result of a prepayment of the Notes in accordance with <u>Section</u> <u>2.09(a)</u> for the Fiscal Quarter most recently ended by an amount equal to the proceeds received by the Issuer from a Specified Equity Contribution during a Cure Period (such amount, with respect to any Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default, a "**Cure Amount**"); <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Issuer delivers written notice to the Agent (for delivery to the Holders) on or prior to the date of a timely delivered certificate required by <u>Section</u> <u>6.01(c)</u> that it has elected to cure the failure to comply and clearly setting forth such Specified Equity Contribution in the computation required by <u>Section</u> <u>6.01(c)(ii)</u>;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the amount of the Cure Amount shall not be greater than the amount required to cause the Issuer to be in compliance with <u>Section</u> <u>7.01(a)</u> or <u>7.01(b)</u>, as applicable, and a Cure Amount may be applied to more than one financial covenant during the same Cure Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) any such reduction in the Issuer's Total Net Debt shall be taken into account in calculating the Consolidated Total Net Leverage Ratio for the purpose of determining compliance or noncompliance with <u>Section</u> <u>7.01(a)</u> of the last day of any Rolling Period that includes the last Fiscal Quarter of the four (4) quarter period with respect to which such cure right was exercised; and (B) any such reduction in the Issuer's Total Net Debt taken into account in calculating the Asset Coverage Ratio shall only be applied for such single quarterly testing of the Asset Coverage Ratio, in each case, pursuant to this <u>Section</u> <u>7.01(c)</u>, and in each case shall be applied solely for the purpose of determining compliance or non-compliance with <u>Section</u> <u>7.01(a)</u> and/or <u>7.01(b)</u> as of the last day of any Rolling Period that includes such Fiscal Quarter or as of the last day of such Fiscal Quarter, as applicable, and not for any other purpose under any Note Document (including any determination of *pro forma* compliance with the Consolidated Total Net Leverage Ratio or Asset Coverage Ratio for the purposes of making any Restricted Payment or any other purpose (even if the proceeds of any Specified Equity Contribution are actually used to reduce Debt, including in connection with any Cure Amount applied to cure the Asset Coverage Ratio or the Consolidated Total Net Leverage Ratio));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Issuer may not cure any Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default by an equity cure more than (A) two (2) times during any period of four (4) consecutive Fiscal Quarters or (B) five (5) times prior to the Maturity Date (<u>provided</u> that, if the Issuer exercises its cure right prior to the date financial statements are required to be delivered for a relevant Fiscal Quarter solely with respect to an anticipated Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default and the Cure Amount associated therewith is insufficient to cure a Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default with respect to such Fiscal Quarter, any subsequent exercise of a cure right prior to the expiration of the applicable Cure Period to "top-up" such Cure Amount shall not count as an additional exercise of the cure right); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If after giving effect to the foregoing recalculations, the Issuer would then be in compliance with <u>Sections</u><u> </u><u>7.01(a)</u> and/or <u>7.01(b)</u>, the Issuer shall be deemed to have satisfied the requirements of <u>Sections</u><u> </u><u>7.01(a)</u> and <u>7.01(b)</u> as of the relevant earlier required date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable Event of Default under any such covenant that had occurred shall be deemed cured for the purpose of this Agreement and the other Note Documents.

If the Issuer has certified in writing to the Agents and Holders that it will provide a Specified Equity Contribution to cure each Event of Default having occurred under <u>Sections 7.01(a)</u> or <u>7.01(b)</u> for such Cure Period, neither the Agents nor any Holder shall exercise the right to accelerate the Obligations or terminate the Commitments and none of Agents, any Holder or any Secured Party shall exercise any right to foreclose on or take possession of the Collateral or exercise any other remedy pursuant to <u>Section</u> <u>9.01</u>, the other Note Documents or applicable law prior to the end of the applicable Cure Period solely on the basis of an Event of Default having occurred and continuing under <u>Sections 7.01(a)</u> or <u>7.01(b)</u>; <u>provided</u> that, for avoidance of doubt, such an Event of Default shall be understood to have occurred and be continuing until cured in accordance with and in the time frame permitted by this <u>Section</u> <u>7.01(c)</u>.

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**Section 7.02.** <u>Debt</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, incur, create, assume or suffer to exist any Debt, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Notes or other Obligations arising under the Note Documents or any guaranty of or suretyship arrangement for the Notes or other Obligations arising under the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Debt under Finance Leases and Purchase Money Debt not to exceed $500,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Debt associated with bonds, guarantees, letters of credit or surety obligations, in each case required by Governmental Requirements or third parties incurred in the ordinary course of business, in each case in connection with the operation of the Oil and Gas Properties and not in connection with money borrowed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) intercompany Debt between the Note Parties or between Restricted Subsidiaries to the extent permitted by <u>Section</u> <u>7.05(d)</u>; <u>provided</u> that such Debt is not held, assigned, transferred, negotiated or pledged to any Person other than the Note Parties, and, <u>provided</u>, <u>further</u>, that any such Debt owed by either the Issuer or a Guarantor shall be subordinated to the Obligations on terms set forth in the Guaranty Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) endorsements of negotiable instruments for collection in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Debt constituting a guarantee by any Note Party of any Debt incurred by another Note Party so long as the incurrence of such Debt by such other Note Party is otherwise permitted by this <u>Section</u> <u>7.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Debt arising under (i) Swap Agreements permitted by <u>Section</u> <u>7.13</u> and (ii) customary bank products incurred in the ordinary course of business of the Issuer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) other additional unsecured Debt (excluding any Debt set forth in <u>clause</u><u> </u><u>(a)</u> of the definition thereof) in an aggregate outstanding principal amount not to exceed $1,000,000; <u>provided</u> that no Indebtedness incurred, created, assumed or suffered to exist with respect to WhiteHawk – Equity Holdings, LP shall be permitted under this <u>Section</u> <u>7.02(h)</u>.

**Section 7.03.** <u>Liens</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, create, incur, assume or permit to exist any Lien on any of its Properties (now owned or hereafter acquired), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens securing the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Excepted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens in respect of Debt permitted by <u>Section</u> <u>7.02(b)</u>, but only to the Property under lease or the Property purchased, constructed or improved with such Debt; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) other Liens affecting property or assets of the Note Parties or any of their Restricted Subsidiaries securing obligations in an aggregate principal amount outstanding not to exceed $1,000,000.

Notwithstanding anything to the contrary in any Note Documents, (a) none of the Liens permitted pursuant to this <u>Section</u> <u>7.03</u> (other than Excepted Liens and Liens securing the Notes) may at any time attach to any Oil and Gas Properties of the Note Parties and their Restricted Subsidiaries, (b) none of the Liens permitted pursuant to this <u>Section</u> <u>7.03</u> (other than Liens permitted pursuant to this <u>Section</u> <u>7.03</u> which have priority by operation of Law) shall be superior to the Lien of the Collateral Agent on any mineral interests and mineral royalty interests and similar holdings of the Note Parties and their Restricted Subsidiaries and (c) no intent to subordinate the first priority status afforded by the Liens granted in favor of the Collateral Agent (for the benefit of the Secured Parties, as provided in the Collateral Documents) is to be hereby implied or expressed by the permitted existence of the Liens permitted pursuant to this <u>Section</u> <u>7.03</u>.

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**Section 7.04.** <u>Dividends</u><u> </u><u>and</u> <u>Distributions</u>. The Note Parties will not, and will not permit any of their Restricted Subsidiaries to, declare or make, directly or indirectly, any Restricted Payment, return any capital to its Equity Interest holders, or make any distribution of its Property to its Equity Interest holders, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the proviso set forth in the definition of "Monthly Common Equity Dividends", the Issuer may declare and pay dividends with respect to its common Equity Interests payable solely in additional shares of its common Equity Interests (other than Disqualified Capital Stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Restricted Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to (x) no Default or Event of Default continuing or resulting from such Restricted Payment, (y) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (z) the Issuer being in pro forma compliance with <u>Article VI</u> and <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section</u> <u>6.01</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) during Distribution Period A for any "Applicable Distribution Period" as set forth in <u>Appendix</u><u> </u><u>C</u>, prior to the "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first*, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.50 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.10 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Monthly Common Equity Dividends and Monthly Preferred Equity Dividends to the holders of its Equity Interests, (II) pay AUM Fees and/or Dividend Incentive Fees and (III) make Specified Equity Redemptions (clauses (I), (II) and (III), collectively, "**Primary Distributions**") with Distributable Free Cash Flow only and make Monthly Equity Redemptions ("**Secondary Distributions**") with Distributable Free Cash Flow only and (B) *second*, in the event Distributable Free Cash Flow is positive following the application of <u>Section</u> <u>7.04(c)(i)(A)</u>, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.00 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.20 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests with Distributable Free Cash Flow only;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) during Distribution Period B for any "Applicable Distribution Period" as set forth in <u>Appendix</u> <u>C</u> prior to "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first*, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.25 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.175 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Primary Distributions with Distributable Free Cash Flow only and (B) *second*, in the event Distributable Free Cash Flow is positive following the application thereof under <u>Section</u> <u>7.04(c)(ii)(A)</u>, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.75 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.30 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make Secondary Distributions and make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests, in each case with Distributable Free Cash Flow only; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) during Distribution Period C for any "Applicable Distribution Period" as set forth in <u>Appendix C</u> prior to "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first*, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.50 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.225 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Primary Distributions with Distributable Free Cash Flow only, (B) *second*, in the event Distributable Free Cash Flow is positive following the application thereof under <u>Section</u> <u>7.04(c)(iii)(A)</u>, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00 and (3) the aggregate principal amount of Notes outstanding as of such date of distribution is equal to or less than the Target Debt Balance as of such date of distribution, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make Secondary Distributions with Distributable Free Cash Flow only and make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests, in each case with Distributable Free Cash Flow only;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to (i) no Default or Event of Default continuing or resulting from such Restricted Payment, (ii) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (iii) the Issuer being in pro forma compliance with <u>Article VI</u> and <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section</u> <u>6</u>.01, Restricted Payments set forth on <u>Schedule 7.04</u> (the "<u>Specified RPs</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) During Distribution Period B, the Issuer may make Redemptions of Series A Preferred Shares in an aggregate amount not to exceed $15,000,000 with the proceeds of common equity or Series B Preferred Share issuances made following the Closing Date (the "**Specified Issuance Proceeds**") and applied towards such Redemptions of Series A Preferred Shares within thirty (30) days of any such common equity or Series B Preferred Share issuances subject to (i) no Default or Event of Default continuing or resulting from such Restricted Payment, (ii) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (iii) the Issuer being in pro forma compliance with <u>Article</u><u> </u><u>VI</u> and, subject to <u>clause</u><u> </u><u>(iv)</u> below, <u>Article</u><u> </u><u>VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section</u> <u>6.01(o)</u> and <u>Section</u> <u>6.01(u)</u>) and (iv) the Issuer being in compliance on a Pro Forma Basis with (A) a Consolidated Total Net Leverage Ratio of less than 3.25 to 1.00 and (B) an Asset Coverage Ratio of greater than 1.175 to 1.00.

Notwithstanding anything to the contrary, any Restricted Payment declared, made or agreed to be declared or made in reliance on clause <u>(c)</u> of this <u>Section</u> <u>7.04</u> shall be made with Distributable Free Cash Flow only.

Notwithstanding anything to the contrary contained herein or any other Note Document, (a) no Restricted Payment shall be made under this <u>Section</u> <u>7.04</u> to any Unrestricted Subsidiary and (b) Restricted Payments to WhiteHawk – Equity Holdings, LP shall be permitted except, to the extent such Investment constitutes a Restricted Payment, Investments made pursuant to <u>Section</u> <u>7.05(k)</u>.

**Section 7.05.** <u>Investments and Advances</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, make or permit to remain outstanding any Investments in or to any Person, except that the foregoing restriction shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investments as of the Closing Date which are disclosed to the Holders in <u>Schedule</u> <u>7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) accounts receivable arising in the ordinary course of business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Investments in Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investments (i) made by the Issuer in or to the Guarantors (including any new Restricted Subsidiary that becomes a Guarantor in compliance herewith substantially contemporaneously with such Investment being made), (ii) made by any Guarantor in or to the Issuer or any other Guarantor and (iii) made by any Restricted Subsidiary in or to the Issuer or the Guarantors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Investments in stock, obligations or securities received in settlement of debts arising from Investments permitted under this <u>Section</u> <u>7.05</u> and accounts receivable owing to the Issuer or any Restricted Subsidiary as a result of a bankruptcy or other insolvency proceeding of the obligor in respect of such debts or upon the enforcement of any Lien in favor of the Issuer or any of its Restricted Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Investments pursuant to Swap Agreements otherwise permitted under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Investments consisting of non-cash consideration received in connection with dispositions or transfers permitted pursuant to <u>Section</u> <u>7.09</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Subject to (x) no Default or Event of Default continuing or resulting from such Investment, (y) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (z) the Issuer being in pro forma compliance with <u>Article VI</u> and <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section</u> <u>6.01(o)</u> and <u>Section</u> <u>6.01(u)</u>), in the event Distributable Free Cash Flow is positive following the application thereof under (i) <u>Section</u> <u>7.04(c)(i)(A)</u> and <u>Section</u> <u>7.04(c)(i)(B)</u> during Distribution Period A, (ii) <u>Section</u> <u>7.04(c)(ii)(A)</u> and <u>Section</u> <u>7.04(c)(ii)(B)</u> during Distribution Period B or (iii) <u>Section</u> <u>7.04(c)(iii)(A)</u> and <u>Section</u> <u>7.04(c)(iii)(B)</u> during Distribution Period C and the aggregate principal amount of Notes outstanding as of such date of distribution is equal to or less than the Target Debt Balance as of such date of distribution, as applicable, make Investments constituting the acquisition of (x) Oil & Gas Properties or (y) Equity Interests of any entity with no material assets other than Oil and Gas Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Investments to the extent constituting Debt, distributions or dispositions permitted under <u>Sections 7.02</u>, <u>7.04</u> or <u>7.09</u>, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) acquisitions of Oil & Gas Properties so long as (i) the Issuer is in pro forma compliance with <u>Section</u> <u>7.01</u> and (ii) such acquisitions are funded solely with the proceeds of common equity issuances; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Investments in an aggregate amount not to exceed $500,000.

Notwithstanding anything to the contrary contained herein or any other Note Document, (a) no Investments in Unrestricted Subsidiaries shall be permitted under this <u>Section</u> <u>7.05</u> and (b) no Investments in WhiteHawk – Equity Holdings, LP shall be permitted except for pursuant to <u>Section</u> <u>7.05(k)</u>.

**Section 7.06.** <u>Nature of Business; Wholly-Owned Subsidiaries; No International Operations</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, (a) allow any material change to be made in the character of its business as owners of minerals interests and mineral royalty interests and other non-operating interests in upstream Oil and Gas Properties, or (b) allow any Guarantor to cease to be a Wholly-Owned Subsidiary of the Issuer other than as a result of a sale of all of the Equity Interests of such Guarantor or a merger of such Guarantor permitted under <u>Section</u> <u>7.08</u> or <u>7.09</u>. Without limiting the foregoing, the Note Parties and their Restricted Subsidiaries shall not permit, including after giving effect to any disposition, Investment or acquisition permitted hereunder, the portion of the Total PDP PV-10 Value of their Oil and Gas Properties directly attributable to the ownership of the Note Parties and their Restricted

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Subsidiaries in mineral interests and mineral royalty interests to be less than 95% of the Total PDP PV-10 Value of the Note Parties' and their Restricted Subsidiaries' Oil and Gas Properties, and the remaining 5% or less of the Total PDP PV-10 Value of their Oil and Gas Properties shall be comprised of non-operating interests in upstream Oil and Gas Properties; <u>provided</u> that, solely for purposes of this <u>Section</u> <u>7.06</u>, "Total PDP PV-10 Value" shall include the book value of any Oil and Gas Property that does not have PV-10 Value. From and after the Closing Date, the Issuer and its Restricted Subsidiaries will not acquire or make any other expenditure (whether such expenditure is capital, operating or otherwise) in or related to, any Oil and Gas Properties not located within the geographical boundaries of and subject to the jurisdiction of the United States of America. The Note Parties and their Restricted Subsidiaries shall at all times remain organized under the laws of the United States of America or any State thereof or the District of Columbia.

**Section 7.07.** <u>ERISA</u><u> </u><u>Compliance</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) engage in, or permit any ERISA Affiliate to engage in, any transaction in connection with which the Note Parties, a Restricted Subsidiary or any ERISA Affiliate could reasonably be expected to be subjected to either a civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502 of ERISA or a tax imposed by Chapter 43 of Subtitle D of the Code with respect to a Plan that, in either case, could reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) fail to make, or permit any ERISA Affiliate to fail to make, full payment when due of all amounts which, under the provisions of any Plan, agreement relating thereto or applicable law, the Note Parties, a Restricted Subsidiary or any ERISA Affiliate is required to pay as contributions thereto, if a Material Adverse Effect would result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) contribute to or assume an obligation to contribute to any employee welfare benefit plan, as defined in Section 3(1) of ERISA that provides benefits to former employees of such entities other than as required by applicable law and that may not be terminated by such entities in their sole discretion at any time without resulting in a Material Adverse Effect.

**Section 7.08.** <u>Mergers, Etc.</u> The Note Parties will not, and will not permit any Restricted Subsidiary to, merge into or with or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of its Property to any other Person (whether now owned or hereafter acquired) (any such transaction, a "**Consolidation**"), or liquidate or dissolve; <u>provided</u> that (a) any Restricted Subsidiary may participate in a Consolidation with the Issuer or any Guarantor (<u>provided</u> that the Issuer shall be the continuing or surviving entity in any such transaction involving the Issuer, and a Guarantor shall be the continuing or surviving entity of any such transaction not involving the Issuer), (b) any Guarantor may participate in a Consolidation with another Guarantor, (c) any Restricted Subsidiary that is not a Guarantor may consolidated into any other Restricted Subsidiary that is not a Guarantor or (d) any Restricted Subsidiary may liquidate or dissolve so long as its assets (if any) are distributed to the Issuer or another Guarantor prior to such liquidation or dissolution.

**Section 7.09.** <u>Sale of Properties and Termination of Swap Agreements</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, dispose, sell, assign, farm-out, convey or otherwise transfer any Property or to terminate or otherwise monetize any Swap Agreement in respect of commodities except for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sale of Hydrocarbons in the ordinary course of business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) farm-outs of undeveloped acreage to which no proved reserves are attributed in the most recently delivered Reserve Report and assignments in connection with such farmouts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the sale or transfer of equipment that is no longer necessary for the business of the Note Parties or such Restricted Subsidiary or that is replaced by equipment of at least comparable value and use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the sale or other disposition (including Casualty Events resulting in the transfer of any Oil and Gas Property or any interest therein) of (i) any Oil and Gas Property or any interest therein or any Restricted Subsidiary owning Oil and Gas Properties and (ii) the termination or monetization of any Swap Agreement in respect of commodities; <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) no Event of Default exists or results from such sale or disposition of Property or the termination or monetization of any Swap Agreement (after giving effect to the substantially concurrent use of proceeds therefrom) and (B) all such sales or other dispositions are for Fair Market Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) not less than one hundred percent (100%) of the consideration received in respect of such sale or other disposition shall be cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) it is understood that <u>Section</u> <u>7.09(d)</u> shall not impair the obligation to satisfy <u>Section</u> <u>6.20</u> at all times, including the obligation to maintain the Swap Agreements entered into pursuant thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the consideration received in respect of such sale or other disposition shall be for Fair Market Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no Event of Default exists or results from such sale or disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if any such disposition is of a Restricted Subsidiary owning Oil and Gas Properties, such disposition shall include all the Equity Interests of such Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) non-exclusive licenses of intellectual property, none of which, in the aggregate, materially impair the operation of the business of the Note Parties or any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the abandonment of intellectual property that is no longer material to the operation of the business of the Note Parties or any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Equity Interests of any Restricted Subsidiary of the Note Parties transferred to any Note

Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) assets of any Note Party to another Note Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any disposition in the form of a Restricted Payment permitted pursuant to <u>Section</u> <u>7.04</u> or an Investment permitted pursuant to <u>Section</u> <u>7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the termination or unwind of any Swap Agreements in respect of commodities solely to the extent required to comply with <u>Section</u> <u>7.13(d)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) dispositions having a fair market value not to exceed $500,000 in the aggregate.

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Notwithstanding anything to the contrary herein or any other Note Document, (x) no sale, arrangement, farm-out, conveyance or other transfer shall be permitted under this <u>Section</u> <u>7.09</u> to any Unrestricted Subsidiary and (y) the Note Parties will not, and will not permit any Restricted Subsidiary, to sell, grant, issue or otherwise enter into any volumetric production payments, dollar-denominated production payment (or any other "VPP" financing), "drillcos" and other similar synthetic financings, or otherwise dispose of or sell Hydrocarbons in place that would require the Note Parties or their Restricted Subsidiaries to deliver Hydrocarbons at some future time without then or thereafter receiving full prepayment therefor.

**Section 7.10.** <u>Transactions with Affiliates</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of Property or the rendering of any service, with any Affiliate (other than transactions between the Issuer and any Guarantor and transactions between Guarantors) unless such transactions are not prohibited under this Agreement and are upon fair and reasonable terms no less favorable to it than it would obtain in a comparable arm's length transaction with a Person not an Affiliate provided that the foregoing restrictions shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) equity issuances, distributions or other acquisitions or retirements of Equity Interests by the Issuer to the extent permitted by <u>Section</u> <u>7.04</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the payment of expenses and management fees pursuant to the Administrative Services Agreement and Investment Management Agreement.

**Section 7.11.** <u>Subsidiaries</u>. No Note Party or its Subsidiaries shall (a) form or acquire any Subsidiary, except any wholly-owned Domestic Subsidiary subject to compliance with <u>Section</u> <u>6.11(c)</u>, or (b) enter into any partnership, joint venture or similar arrangement other than as set forth on <u>Schedule 7.11</u>.

**Section 7.12.** <u>Negative Pledge Agreements; Dividend Restrictions</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, create, incur, assume or suffer to exist any contract, agreement or understanding which in any way prohibits or restricts the granting, conveying, creation or imposition of any Lien on any of their Property in favor of the Collateral Agent and the Secured Parties or restricts any Restricted Subsidiary from paying dividends or making distributions to any Note Party, or which requires the consent of or notice to other Persons in connection therewith, other than (a) this Agreement and the Collateral Documents, (b) with respect to the ability of a Restricted Subsidiary to make dividends or distributions to a Note Party, agreements or arrangements evidencing Excepted Liens permitted by <u>Section</u> <u>7.03</u> to the extent such restriction applies only to the property subject to such Lien, (c) customary restrictions and conditions with respect to the sale or disposition of Property or Equity Interests permitted under <u>Section</u> <u>7.09</u> pending the consummation of such sale or disposition, (d) with respect to the ability of a Restricted Subsidiary to make dividends or distributions to a Note Party, any leases or licenses or similar contracts as they affect any Property (other than Oil and Gas Properties) subject to such lease or license and customary prohibitions on assignment contained in software license agreements, (e) customary provisions restricting subletting or assignment of any lease governing a leasehold interest (other than any Oil and Gas Property) of the Issuer or any Restricted Subsidiary, (f) as it relates to the assets that are the subject thereof, purchase money obligations for property acquired in the ordinary course of business and obligations under Finance Leases that impose restrictions on transferring the property so acquired, (g) prohibitions or restrictions imposed by any Governmental Requirement, and encumbrances or restrictions imposed by any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings referred to in <u>clauses (a)</u> through <u>(g)</u> above; <u>provided</u> that such amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings are no more restrictive in any material respect with respect to such encumbrance and other restrictions taken as a whole than those prior to such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing.

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**Section 7.13.** <u>Swap</u><u> </u><u>Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will not, and will not permit any Restricted Subsidiary to, enter into any Swap Agreements with any Person other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Swap Agreements entered into Not for Speculative Purposes by the Note Parties with an Approved Counterparty in respect of commodities (at market prices) the net notional volumes for which (when aggregated with other commodity Swap Agreements then in effect, other than puts, floors and basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date the latest hedging transaction is entered into under a Swap Agreement, 85% of the reasonably anticipated Hydrocarbon production of oil, gas and natural gas liquids, calculated separately, from the Note Parties' total Proved Reserves for the sixty (60) month period from the date of creation of such hedging arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Swap Agreements entered into Not for Speculative Purposes by the Note Parties in respect of interest rates with an Approved Counterparty, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Swap Agreements effectively converting interest rates from fixed to floating, the notional amounts of which (when aggregated with all other Swap Agreements of the Note Parties and their Restricted Subsidiaries then in effect effectively converting interest rates from fixed to floating) do not exceed 75% of the anticipated outstanding principal amount of the Note Parties' Debt for borrowed money which bears interest at a fixed rate, and which Swap Agreements shall not, in any case, have a tenor beyond the maturity date of such Debt, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Swap Agreements effectively converting interest rates from floating to fixed, the notional amounts of which (when aggregated with all other Swap Agreements of the Note Parties and their Restricted Subsidiaries then in effect effectively converting interest rates from floating to fixed) do not exceed 75% of the anticipated outstanding principal amount of the Note Parties' Debt for borrowed money which bears interest at a floating rate, and which Swap Agreements shall not, in any case, have a tenor beyond the maturity date of such Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In no event shall any Swap Agreement contain any requirement, agreement or covenant for the Note Parties or any Restricted Subsidiary to post collateral, credit support (including in the form of letters of credit) or margin to secure their obligations under such Swap Agreement or to cover market exposures (other than pursuant to the Collateral Documents); for the avoidance of doubt, this <u>Section</u> <u>7.13(b)</u> shall not prohibit the granting of security to secure the Secured Hedge Obligations pursuant to the Collateral Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of entering into or maintaining Swap Agreement trades or transactions under <u>Section</u> <u>7.13(a)</u>, forecasts of reasonably anticipated production from the Note Parties' and their Restricted Subsidiaries' Oil and Gas Properties constituting Proved Reserves as set forth on the most recent Reserve Report delivered pursuant to the terms of this Agreement shall be revised to account for any increase or decrease therein anticipated because of information obtained by the Note Parties or any of their Restricted Subsidiaries and delivered to the Agent subsequent to the publication of such Reserve Report including the Note Parties' or any of their Restricted Subsidiaries' internal forecasts of production decline rates for existing wells and additions to or deletions from anticipated future production from new or existing wells and completed acquisitions coming on stream or failing to come on stream as well as completed dispositions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If, as of the last day of any calendar quarter, the notional volumes of all Swap Agreements then in effect in respect of commodities for such calendar quarter (other than the notional volumes of (x) puts, options, or floors with respect to which neither the Note Parties nor any Restricted Subsidiaries have any payment obligation other than premiums and other charges (it being understood that the payment of such obligations may be deferred but that the total amount of which are fixed and known at the time such transaction is entered into) and (y) basis differential swaps on volumes already hedged pursuant to other Swap Agreements for Hydrocarbons) exceed 100% of actual production of Hydrocarbons in such calendar quarter for oil, gas and natural gas liquids, calculated separately, then the Note Parties (i) shall promptly send notice to the Agent (for distribution to the Holders) and (ii) shall, within ten (10) Business Days of such determination, enter into offsetting Swap Agreements or terminate or unwind such Swap Agreements such that, at such time, future hedging volumes will not exceed 100% of reasonably anticipated projected production for the then-current and any succeeding calendar quarters for oil, gas and natural gas liquids, calculated separately.

**Section 7.14.** <u>Designation and Conversion of Restricted and Unrestricted Subsidiaries</u>. Notwithstanding anything to the contrary contained herein or any other Note Document, no Note Party may designate any Restricted Subsidiary, including a newly formed or newly acquired Subsidiary, as an Unrestricted Subsidiary.

**Section 7.15.** <u>Organizational</u><u> </u><u>Documents</u>. Neither the Issuer nor any Restricted Subsidiary shall amend, modify or change its Organizational Documents, including the operating agreement, in any manner materially adverse to the rights or interests of the Holders (it being understood that (a) any amendment, modification or change of Organizational Documents that would impair or restrict the Liens of the Secured Parties on the Equity Interests of such Persons or their value (including after foreclosure), or the ability of the Secured Parties to exercise their rights and remedies with respect thereto under the Collateral Documents and (b) any amendment, modification or change, or waiver or consent to Section 4(b), Section 5, Section 6 and any provision relating to the assignment or termination thereof of the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, (c) Section 5, Section 6(a) and Section 6(b) of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation and (d) Section 6.04 or any provision relating to the pledge of equity in the Issuer's bylaws, in each shall be materially adverse to the rights and interests of the Holders).

**Section 7.16.** <u>Changes in Fiscal Year</u>. The Note Parties shall not, and shall not permit any Restricted Subsidiary to have its Fiscal Year end on a date other than December 31 or change its method of determining Fiscal Quarters.

**Section 7.17.** <u>Amendments to Material Agreements</u>. Neither the Issuer nor any Restricted Subsidiary shall amend, modify or change, or waive or consent to an amendment or modification of any material provision to, the Investment Management Agreement and the Administrative Services Agreement, in each case in any manner materially adverse to the rights or interests of the Holders (it being understood that any amendment, modification or change, or waiver or consent to Sections 4(a), (b) and (c) of the Investment Management Agreement shall be deemed materially adverse to the rights and interests of the Holders).

**Section 7.18.** <u>General</u><u> </u><u>and</u> <u>Administrative</u><u> </u><u>Costs</u>. The Note Parties shall not, and shall not permit any of their Restricted Subsidiaries to, make, directly or indirectly any payments in respect of General and Administrative Costs in any Fiscal Year other than cash payments which, when aggregated with all other General and Administrative Costs paid in cash by the Note Parties or any of the Restricted Subsidiaries during such Fiscal Year, do not exceed $3,000,000 in the aggregate.

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**ARTICLE VIII** 

**PASSIVE HOLDING COMPANY STATUS OF THE ISSUER** 

Commencing on the Closing Date and until Payment in Full, the Issuer covenants and agrees with the Holders that it will not create, incur, assume or suffer to exist any Debt other than the Obligations or Lien other than Liens securing the Obligations, nor will it engage at any time in any business or business activity or hold or own any Property other than (a) the ownership of Equity Interests in WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC, (b) performance of its obligations under and in connection with the Note Documents, (c) issuing, selling and redeeming its Equity Interests, (d) paying Taxes in the ordinary course of business, (e) holding directors' and shareholders' meetings, preparing corporate and similar records and other activities (including the ability to incur fees, costs and expenses relating to such maintenance) required to maintain its corporate or other legal structure or to participate in tax, accounting or other administrative matters as a member of the consolidated group of the Issuer and its Subsidiaries, (f) preparing reports to, and preparing and making notices to and filings with, Governmental Authorities and to its holders of Equity Interests, (g) receiving, and holding proceeds of, Restricted Payments from its Subsidiaries and distributing the proceeds thereof to the extent not prohibited by <u>Sections</u> <u>7.04</u> and <u>7.10</u>, (h) activities required by Governmental Requirements and (i) activities incidental to the business or activities described in each foregoing clauses of this <u>Article VIII</u>. The Issuer shall at all times pledge all of the Equity Interests of WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC (and shall, if such Equity Interests are certificated deliver to the Collateral Agent original stock certificates evidencing the Equity Interests of WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC, together with appropriate undated stock powers for each certificate duly executed in blank by the Issuer).

**ARTICLE IX** 

**EVENTS OF DEFAULT; REMEDIES** 

**Section 9.01.** <u>Events of Default</u>. In case of the happening of any of the following events ("**Events of Default**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Note Parties shall fail to pay any principal of (or associated make-whole or premium on) any Note when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof, by acceleration or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Note Parties shall fail to pay any interest on any Note or any fee or any other amount (other than an amount referred to in <u>Section</u> <u>9.01(a)</u>) payable under any Note Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any representation or warranty made or deemed made by or on behalf of the Note Parties or any Restricted Subsidiary in or in connection with any Note Document or any amendment or modification of any Note Document or waiver under such Note Document, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with any Note Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made (or if already qualified by materiality or Material Adverse Effect, incorrect in any respect when made or deemed made);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (i) the Note Parties or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in <u>Sections</u><u> </u><u>6.01(k)</u>, <u>6.01(o)</u>, <u>6.01(u)</u>, <u>6.02</u>, <u>6.03</u> (solely in respect of the Issuer), <u>6.13</u>, <u>6.16</u>, <u>6.19</u>, or <u>Article</u><u> </u><u>VII</u> or (ii) the Issuer shall fail to observe or perform any covenant, condition or agreement contained in <u>Article VIII-A</u>;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Note Parties or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement (i) contained in <u>Section</u> <u>6.11</u>, and such failure shall continue unremedied for a period of twenty-five (25) days or (ii) otherwise contained in this Agreement (other than those specified in <u>Sections 9.01(a)</u>, <u>9.01(b)</u>, <u>9.01(d)</u>, or <u>9.01(e)(i)</u>) or in any other Note Document to which it is a party, and such failure shall continue unremedied for a period of thirty (30) days, in each case after the earlier to occur (i) notice thereof from the Agent to the Issuer (which notice will be given at the request of any Holder) or (ii) a Responsible Officer of the Issuer or such Restricted Subsidiary otherwise becoming aware of such default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Note Parties or any Restricted Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Debt, when and as the same shall become due and payable and such failure continues beyond any applicable grace period set forth in such Material Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any event or condition occurs (including the termination of any Swap Agreement prior to its scheduled maturity as a result of an "Event of Default" or "Termination Event" (as such terms are defined in the relevant Swap Agreement)) that results in any Material Debt becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Debt or any trustee or agent on its or their behalf to cause any Material Debt to become due (other than by a regularly scheduled required prepayment), or to require the Redemption thereof or any offer to Redeem to be made in respect thereof, prior to its scheduled maturity or require the Note Parties or any Restricted Subsidiary to make an offer in respect thereof (other than any event requiring prepayment pursuant to customary asset sale or change of control provisions);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Note Parties or any Restricted Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Note Parties or any Restricted Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Note Party or any Restricted Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in <u>Section</u> <u>9.01(h)</u>, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for a Note Party or any Restricted Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) (i) one (1) or more judgments or settlements (or order by a Governmental Authority) for the payment of money (as reduced by (x) insurance proceeds covering such settlements, judgments or orders which are received or as to which the relevant insurance carriers have been notified of, and have not disputed coverage and (y) the amount by which such liability is cash collateralized and bonded) in an aggregate amount in excess of $2,000,000 shall be rendered against any Note Party, any Restricted Subsidiary or any combination thereof, and (A) there shall be a period of thirty (30) consecutive days during which the execution of such judgment or order is not subject to an effective stay of enforcement, or (B) action is legally taken by a judgment creditor or judgment creditors or the applicable Governmental

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Authority to attach or levy upon any assets of a Note Party or any of its Restricted Subsidiaries to enforce any such judgment or order, or (ii) one (1) or more non-monetary judgments or orders shall be rendered against any Note Party or Restricted Subsidiary which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, and there shall be a period of thirty (30) consecutive days during which such judgment is not subject to an effective stay of enforcement, by reason of a pending appeal or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Note Documents after delivery thereof shall for any reason, except to the extent permitted by the terms thereof, cease to be in full force and effect and valid, binding and enforceable in accordance with their terms against the Issuer or a Guarantor party thereto or shall be repudiated by any of them, or cease to create a valid and perfected first priority Lien in favor of the Collateral Agent on any material portion of the Collateral purported to be covered thereby, except to the extent permitted by the terms of this Agreement, or the Note Parties or any Restricted Subsidiary or any of their Affiliates shall so state or assert in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) a Change in Control shall occur and the Issuer fails to pay the Redemption Payment when due or otherwise consummate a redemption of the Notes as required by <u>Section</u> <u>2.09(h)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) an ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in liability of the Note Parties and their Restricted Subsidiaries in an aggregate amount exceeding $2,000,000 that is not covered by independent third party insurance provided by insurers of the highest claims paying rating or financial strength as to which the insurer does not dispute coverage and is not subject to an insolvency proceeding;

then, and in every such event (other than an event with respect to a Note Party or its Subsidiaries described in <u>paragraph (h)</u> or <u>(i)</u> above), and at any time thereafter during the continuance of such event, the Agent shall, at the direction of the Requisite Holders, by notice to the Issuer, take either or both of the following actions, at the same or different times: (i) terminate the Commitments and thereupon the Commitments shall terminate immediately and (ii) declare the Notes then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), whereupon the principal of the Notes so declared to be due and payable, together with accrued interest thereon, any unpaid accrued fees, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section</u> <u>2.11(g)</u>, and all other liabilities of the Issuer or any other Note Party accrued hereunder and under any other Note Document, shall become due and payable immediately, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Issuer and the other Note Parties, anything contained herein or in any other Note Document to the contrary notwithstanding; and in any event with respect to any Note Party or its Subsidiaries described in <u>paragraph (h)</u> or <u>(i)</u> above, the Commitments shall automatically terminate and the principal of the Notes then outstanding, together with accrued interest thereon, any unpaid accrued fees, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section</u> <u>2.11(g)</u>, and all other liabilities of the Issuer or any other Note Party accrued hereunder and under any other Note Document, shall automatically become due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Issuer and the other Note Parties, anything contained herein or in any other Note Document to the contrary notwithstanding. In the case of the occurrence of an Event of Default, the Agents and the Holders will have all other rights and remedies available at law and equity. All proceeds realized from the liquidation or other disposition of Collateral or otherwise received after maturity of the Notes, whether by acceleration or otherwise, shall be applied in the order provided in <u>Section</u> <u>2.11(f)</u>.

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**Section 9.02.** <u>Treatment of Make-Whole Amount and Prepayment Fee</u>. Without limiting the terms of the last paragraph of <u>Section</u> <u>9.01</u>, it is understood and agreed that (a) if the Notes are accelerated or otherwise become due, in each case, in respect of any Event of Default (including, but not limited to, upon the occurrence of a bankruptcy or insolvency related event (including acceleration of claims by operation of law)) or (b) upon the occurrence of the Board of Directors (or similar Governing Body or any committee thereof) of any Note Party or of any Person having Control of the Issuer adopting any resolution or otherwise authorizing any action to approve any bankruptcy or insolvency related event (each of the foregoing in <u>clauses (a)</u> and <u>(b)</u> and as contemplated by the penultimate paragraph of this paragraph, a "**Specified Event**"), the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, that would have applied if, at the time the Notes are accelerated or otherwise become due, the Issuer had prepaid, repaid, Redeemed, refinanced, substituted or replaced all of the Notes as contemplated in <u>Section</u> <u>2.08</u> and <u>2.11(g)</u> will also be automatically and immediately due and payable without further action or notice and the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or shall constitute part of the Obligations, in view of the impracticability and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of the Holders' damages as a result thereof. Any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee payable hereunder shall be presumed to be the liquidated damages (and not, for avoidance of doubt, unmatured interest or a penalty) sustained by the Holders as the result of such Specified Event and the Issuer and the other Note Parties agree that the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) and Prepayment Fee, as applicable, are reasonable under the circumstances currently existing. In the event that the Obligations are reinstated in connection with or following any Specified Event, it is understood and agreed that the Obligations shall include any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, payable in accordance with this <u>Section</u> <u>9.02</u>. The Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, shall also be payable in the event the Obligations (and/or this Agreement) are satisfied or released by foreclosure (whether by power of judicial proceeding), deed in lieu of foreclosure or by any other similar means.

THE ISSUER AND EACH OTHER NOTE PARTY EXPRESSLY WAIVES (TO THE FULLEST EXTENT IT MAY LAWFULLY DO SO) THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW THAT PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING MAKE-WHOLE AMOUNT (<u>PLUS</u> ANY PREMIUM PAYABLE IN CONNECTION THEREWITH) OR PREPAYMENT FEE IN CONNECTION WITH ANY SUCH SPECIFIED EVENT.

The Issuer and each other Note Party expressly agrees (to the fullest extent that it may lawfully do so) that: (i) the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) and Prepayment Fee, as applicable, are reasonable and are the product of an arm's length transaction between sophisticated business people, ably represented by counsel; (ii) the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or shall be payable notwithstanding the then prevailing market rates at the time payment is made; (iii) there has been a course of conduct between the Holders and the Issuer and the other Note Parties giving specific consideration in this transaction for such agreement to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable; and (iv) the Issuer and each other Note Party shall each be estopped hereafter from claiming differently than as agreed to in this paragraph.

The Issuer and each other Note Party expressly acknowledges that its agreement to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, to the Holders as herein described is a material inducement to the Holders to provide the Commitments and purchase the Notes.

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**Section 9.03.** <u>Application of Funds</u>. All proceeds realized from the liquidation or other disposition of Collateral or otherwise received after maturity of the Notes, whether by acceleration or otherwise, shall be applied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to each of the Agent and the Collateral Agent in their capacities as such and Agent-related Indemnitee (including any costs and expenses related to foreclosure or realization upon, or protecting, Collateral);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section</u> <u>11.03</u> under the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or other amount due and payable pursuant to <u>Section</u> <u>2.11(g)</u> or <u>Section</u> <u>9.02</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or other amount due and payable pursuant to <u>Section</u> <u>2.11(g)</u> or <u>Section</u> <u>9.02</u> resulting from the payment of principal under <u>clause fifth</u> below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>fifth</u>, pro rata to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Note Parties at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>sixth</u>, pro rata to any other Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Note Parties or as otherwise required by any Governmental Requirement.

**Section 9.04.** <u>Credit</u> <u>Bidding</u>. In addition to any other rights and remedies granted to the Agents and the Holders in the Note Documents, the Collateral Agent (acting at the direction of the Requisite Holders) on behalf of the Holders may exercise all rights and remedies of a secured party under the UCC or any other applicable law. Without limiting the generality of the foregoing, the Collateral Agent (acting at the direction of the Requisite Holders), without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Note Party or any other Person (all and each of which demands, defenses, advertisements and notices are hereby waived by each of the Note Parties on behalf of itself and its Subsidiaries), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, or consent to the use by any Note Party of any cash collateral arising in respect of the Collateral on such terms as the Collateral Agent deems reasonable, and/or may forthwith sell, lease, assign give an option or options to purchase or otherwise dispose of and deliver, or acquire by credit bid on behalf of the Holders, the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales (including, without limitation, any sale conducted under the provisions of the Code, including under Sections 363, 1123 or 1129 of the Code, or any similar laws in any other jurisdictions to which a Note Party is subject), at any exchange, broker's board or office of the Collateral Agent or any Holder or elsewhere, upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery, all without assumption of any credit risk. In connection with any such credit bid and purchase, the Obligations owed to the Holders shall be entitled to be, and shall be, credit bid by the Collateral Agent at the direction of the Requisite Holders on a ratable basis (with Obligations with respect to contingent or unliquidated claims receiving contingent interests in

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the acquired assets on a ratable basis that shall vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) for the asset or assets so purchased (or for the equity interests or debt instruments of the acquisition vehicle or vehicles that are issued in connection with such purchase). In connection with any such bid (i) the Collateral Agent shall be authorized to form one or more acquisition vehicles and to assign any successful credit bid to such acquisition vehicle or vehicles, (ii) each of the Holders' ratable interests in the Obligations which were credit bid shall be deemed without any further action under this Agreement to be assigned to such vehicle or vehicles for the purpose of closing such sale, (iii) the Collateral Agent shall be authorized to adopt documents providing for the governance of the acquisition vehicle or vehicles (<u>provided</u> that any actions by the Collateral Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or equity interests thereof, shall be governed, directly or indirectly, by, and the governing documents shall provide for, control by the vote of the Requisite Holders or their permitted assignees under the terms of the Note Documents or the governing documents of the applicable acquisition vehicle or vehicles, as the case may be, irrespective of the termination of the Note Documents and without giving effect to the limitations on the actions by the Requisite Holders contained <u>Section</u> <u>11.06</u>), (iv) the Collateral Agent on behalf of such acquisition vehicle or vehicles shall be authorized to issue to each of the Holders, ratably on account of the relevant Obligations which were credit bid, interests, whether as equity, partnership, limited partnership interests or membership interests, in any such acquisition vehicle and/or debt instruments issued by such acquisition vehicle, all without the need for any Holder or acquisition vehicle to take any further action, and (v) to the extent that Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any reason (as a result of another bid being higher or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of Obligations credit bid by the acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Holders pro rata with their original interest in such Obligations and the equity interests and/or debt instruments issued by any acquisition vehicle on account of such Obligations shall automatically be cancelled, without the need for any Holder or any acquisition vehicle to take any further action. Notwithstanding that the ratable portion of the Obligations of each Holder are deemed assigned to the acquisition vehicle or vehicles as set forth in <u>clause (ii)</u> above, each Holder shall execute such documents and provide such information regarding the Holder (and/or any designee of the Holder which will receive interests in or debt instruments issued by such acquisition vehicle) as the Collateral Agent acting at the direction of the Requisite Holders, may reasonably request in connection with the formation of any acquisition vehicle, the formulation or submission of any credit bid or the consummation of the transactions contemplated by such credit bid. The Collateral Agent or any Holder shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in any Note Party, which right or equity is hereby waived and released by each of the Note Parties on behalf of itself and its Subsidiaries. Each of the Note Parties further agrees on behalf of itself and its Subsidiaries, at the Collateral Agent's request, to assemble the Collateral and make it available to the Collateral Agent at places which the Collateral Agent shall reasonably select, whether at the premises of the Issuer, another Note Party or elsewhere. The Collateral Agent shall apply the net proceeds of any action taken by it pursuant to this <u>Section</u> <u>9.04</u>, after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any other way relating to the Collateral or the rights of the Agents and the Holders hereunder, including reasonable attorneys' fees and disbursements, to the payment in whole or in part of the obligations of the Note Parties under the Note Documents, in such order as the Collateral Agent may elect, and only after such application and after the payment by the Collateral Agent of any other amount required by any provision of law, including Section 9-615(a)(3) of the UCC, need the Collateral Agent account for the surplus, if any, to any Note Party. To the extent permitted by applicable law, each of the Note Parties on behalf of itself and its Subsidiaries waives all claims, damages and demands it may acquire against the Agents or any Holder arising out of the exercise by them of any rights hereunder. If any notice of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least ten (10) days before such sale or other disposition. Notwithstanding anything provided in this <u>Section</u> <u>9.04</u>, the Collateral Agent may delegate any or all of its rights to credit bid under this Section, this Agreement and the other Note Documents to EIG or the Requisite Holders or their designee, who will act as "Agent" or "Collateral Agent" for purposes of this <u>Section</u> <u>9.04</u>.

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**ARTICLE X** 

**AGENTS** 

**Section 10.01.** <u>Appointment of Agents</u>. U.S. Bank Trust Company, National Association is hereby appointed Agent and Collateral Agent hereunder and under the other Note Documents and each Holder hereby authorizes U.S. Bank Trust Company, National Association, in such capacities, to act as its agent (including as collateral agent) in accordance with the terms hereof and the other Note Documents. Each Agent hereby agrees to act upon the express conditions contained herein and the other Note Documents, as applicable. The provisions of this <u>Article</u><u> </u><u>X</u> are solely for the benefit of the Agents and the Holders and no Note Party shall have any rights as a primary or third party beneficiary of any of the provisions thereof, except as expressly set forth herein. In performing its functions and duties hereunder, each Agent shall act solely as an agent of the Holders and does not assume and shall not be deemed to have assumed any obligation towards or relationship of agency or trust with or for any Note Party or any Affiliate thereof.

**Section 10.02.** <u>Powers and Duties</u>. Each Holder irrevocably authorizes each Agent to take such action on such Holder's behalf and to exercise such powers, rights and remedies and perform such duties hereunder and under the other Note Documents as are specifically delegated or granted to each Agent by the terms hereof and thereof, together with such actions, powers, rights and remedies as are reasonably incidental thereto. Each Agent shall have only those duties and responsibilities that are expressly specified herein and the other Note Documents. Without limiting the generality of the foregoing, each Agent shall not have or be deemed to have, by reason hereof or any of the other Note Documents, a fiduciary relationship in respect of any Holder, any Note Party or any other Person, whether before or after the occurrence of any Default or Event of Default; and nothing herein or any of the other Note Documents, expressed or implied, is intended to or shall be so construed as to impose upon either Agent any obligations in respect hereof or any of the other Note Documents except as expressly set forth herein or therein. The use of the term "agent" herein and in the other Note Documents with reference to any Agent is not intended to connote any fiduciary or the other implied (or express) obligations arising under agency doctrine of any applicable law; rather, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. Neither Agent is, and shall not be deemed to be, acting hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

**Section 10.03.** <u>General</u><u> </u><u>Immunity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Responsibility for Certain Matters</u>. Neither Agent shall be responsible for the execution, effectiveness, genuineness, validity, enforceability, collectability or sufficiency hereof or any other Note Document or for any representations, warranties, recitals or statements made herein or therein or made in any written or oral statements or in any financial or other statements, instruments, reports or certificates or any other documents furnished or made by either Agent or by or on behalf of any Note Party to an Agent or any Holder in connection with the Note Documents and the transactions contemplated hereby and thereby or for the financial condition or business affairs of any Note Party or any other Person liable for the payment of any Obligations, nor shall either Agent be required to ascertain or inquire as to the performance or observance of any of the terms, conditions, provisions, covenants or agreements contained in any of the Note Documents or as to the use of the proceeds of the Notes or as to the existence or possible existence of any Event of Default or Default or to make any disclosures with respect to the foregoing.

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Neither Agent shall be responsible for the satisfaction of any condition set forth in <u>Article III</u> or elsewhere in any Note Document, other than to confirm receipt of items expressly required to be delivered to such Agent. Neither Agent will be required to take any action that is contrary to applicable law or any provision of this Agreement or any Note Document or that may expose it to personal liability for which it is not indemnified. Anything contained herein to the contrary notwithstanding, neither Agent shall have any liability arising from confirmations of the amount of outstanding Notes or the component amounts thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exculpatory Provisions</u>. Subject to the remainder of this <u>clause (b)</u> hereof further limiting the liability of the Agents, neither Agent nor any of their officers, partners, directors, employees or agents shall be liable for any action taken or omitted by an Agent under or in connection with any of the Note Documents, except to the extent caused by such Agent's gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final, nonappealable order. Each Agent shall be entitled to refrain from any act or the taking of any action (including the failure to take an action) in connection herewith or any of the other Note Documents or from the exercise of any power, discretion or authority vested in it hereunder or thereunder, except powers and authority expressly contemplated hereby or thereby, unless and until such Agent shall have received written instructions in respect thereof from Requisite Holders (or such other Holders as may be required to give such instructions under <u>Section</u> <u>11.06</u>) or in accordance with the applicable Note Document, and, upon receipt of such instructions from Requisite Holders (or such other Holders, as the case may be), or in accordance with the other applicable Note Document, as the case may be, such Agent shall act or (where so instructed) refrain from acting, or to exercise or refrain from exercising such power, discretion or authority, in accordance with such instructions. The permissive rights of each Agent hereunder and under the other Note Documents shall not be construed as duties. Without prejudice to the generality of the foregoing, (i) each Agent shall be entitled to rely, and shall be fully protected in relying and free from liability in relying, upon any communication, instrument, document, judgment, order or decree believed by it to be genuine and correct and to have been signed or sent by the proper Person or Persons, and shall be entitled to rely and shall be protected and free from liability in relying on opinions, advice and judgments of attorneys (who may be attorneys for the Note Parties), accountants, experts and other professional advisors selected by it; (ii) no Holder shall have any right of action whatsoever against an Agent as a result of such Agent acting or (where so instructed) refraining from acting hereunder or any of the other Note Documents in accordance with the instructions of Requisite Holders (or such other Holders as may be required to give such instructions under <u>Section</u> <u>11.06</u>) or in accordance with the applicable Note Document; and (iii) neither Agent shall be liable for any action taken, or errors in judgment made, in good faith by it or any of its officers, employees or agents, unless such Agent shall have been grossly negligent in ascertaining the pertinent facts. Each Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Note Document unless such Agent shall first receive such advice or concurrence of the Requisite Holders or the Holders (as the case may be, as required by this Agreement), accompanied by, if requested, indemnity satisfactory to such Agent, and until such instructions and indemnity (if any) are received, each Agent shall have no duty to act, or refrain from acting, and shall have no liability to any Holder, any Note Party or any other Person for so doing. If an Agent so requests, it shall first be indemnified to its satisfaction by the Holders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. Each Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Note Document in accordance with a request or consent of the Requisite Holders and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Holders. No provision of this Agreement or any other Note Document or any agreement or instrument contemplated hereby or thereby, the Transactions contemplated hereby or thereby shall require an Agent to: (i) expend or risk its own funds or provide indemnities in the performance of any of its duties hereunder or the exercise of any of its rights or power or (ii) otherwise incur any financial liability in the performance of its duties or the exercise of any of its rights or powers. Neither Agent shall be responsible for (i) perfecting, maintaining, monitoring, preserving or protecting the security interest or Lien granted under this Agreement, any other Note Document or any agreement or instrument contemplated hereby or

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thereby, (ii) the filing, re-filing, recording, re-recording or continuing of any document, financing statement, continuation statement, amendment, mortgage, assignment, notice, instrument of further assurance or other instrument in any public office at any time or times, or (iii) providing, maintaining, monitoring or preserving insurance on or the payment of Taxes with respect to any of the Collateral. The actions described in <u>clauses</u> <u>(i)</u> through <u>(iii)</u> of the immediately preceding sentence shall be the responsibility of the Holders and the Note Parties. Neither Agent shall be required to qualify in any jurisdiction in which it is not presently qualified to perform its obligations as an Agent. Each Agent has accepted and is bound by the Note Documents executed by such Agent as of the date of this Agreement and, as directed in writing by the Requisite Holders, each Agent shall execute additional Note Documents delivered to it after the date of this Agreement; <u>provided</u>, <u>however</u>, that such additional Note Documents do not adversely affect the rights, privileges, benefits, immunities and indemnities of the Agents, in which case, the Agents may, but shall not be obligated to, enter into such Note Documents. Neither Agent will otherwise be bound by, or be held obligated by, the provisions of any loan agreement, indenture or other agreement governing the Obligations (other than this Agreement and the other Note Documents to which such Agent is a party). No written direction given to an Agent by the Requisite Holders or any Note Party that in the sole judgment of such Agent imposes, purports to impose or might reasonably be expected to impose upon such Agent any obligation or liability not set forth in or arising under this Agreement and the other Note Documents will be binding upon an Agent unless such Agent elects, at its sole option, to accept such direction. Neither Agent shall be responsible or liable for any failure or delay in the performance of its obligations under this Agreement or the other Note Documents arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of God; earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics; riots; business interruptions; loss or malfunctions of utilities, computer (hardware or software) or communication services; accidents; labor disputes; acts of civil or military authority and governmental action. Beyond the exercise of reasonable care in the custody of the Collateral in the possession or control of the Collateral Agent or its bailee, the Collateral Agent will not have any duty as to any other Collateral or any income thereon or as to preservation of rights against prior parties or any other rights pertaining thereto. The Collateral Agent will be deemed to have exercised reasonable care in the custody of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which it accords its other corporate trust customers, and the Collateral Agent will not be liable or responsible for any loss or diminution in the value of any of the Collateral by reason of the act or omission of any carrier, forwarding agency or other agent or bailee selected by the Collateral Agent in good faith. Neither Agent shall be responsible for or have any duty to ascertain or inquire into (1) any statement, warranty or representation made in or in connection with this Agreement or any other Note Document, (2) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith or (3) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default or Event of Default. Neither Agent will be responsible for the existence, genuineness or value of any of the Collateral or for the validity, perfection, priority or enforceability of the Liens in any of the Collateral, whether impaired by operation of law or by reason of any action or omission to act on its part hereunder, for the validity or sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of the title of any grantor to the Collateral, for insuring the Collateral or for the payment of Taxes or Liens upon the Collateral or otherwise as to the maintenance of the Collateral. Each Agent hereby disclaims any representation or warranty to the present and future holders of the Obligations concerning the perfection of the Liens granted hereunder or in the value of any of the Collateral. In the event that either Agent is required to acquire title to an asset for any reason, or take any managerial action of any kind in regard thereto, in order to carry out any obligation for the benefit of another, which in any Agent's sole discretion may cause such Agent to be considered an "owner or operator" under any Environmental Laws or otherwise cause such Agent to incur, or be exposed to, any Environmental Liability or any liability under any other Governmental Requirement, each Agent reserves the right, instead of taking such action, either to resign as an Agent or to arrange for the transfer of the title or control of the asset to a court appointed receiver. Neither Agent will be liable to any person for any Environmental Liability or any

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Environmental Claims or contribution actions under any Governmental Requirement by reason of such Agent's actions and conduct as authorized, empowered and directed hereunder or relating to any kind of discharge or Release or threatened discharge or Release of any Hazardous Materials into the environment at any property or facility that any Agent is required to acquire title to hereunder. Each Holder authorizes and directs each Agent to enter into this Agreement and the other Note Documents to which it is a party. Each Holder agrees that any action taken by an Agent or Requisite Holders in accordance with the terms of this Agreement or the other Note Documents and the exercise by an Agent or Requisite Holders of their respective powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice of Default</u>. Neither Agent shall be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to Events of Default in the payment of principal, interest and fees required to be paid to each Agent for the account of the Holders, unless each Agent shall have received written notice from a Holder or the Issuer in accordance with the notice requirements of <u>Section</u> <u>11.01</u> herein referring to this Agreement, describing such Default or Event of Default and stating that such notice is a "notice of default." Agent will notify the Holders of its receipt of any such notice. Neither Agent shall have any liability for any interest rate published by any publication that is the source for determining the interest rates of the Notes, including but not limited to the SOFR Administrator's Website (or any successor source), or for any rates compiled by the CME Term SOFR Administrator or any successor thereto, or for any rates published on any of the foregoing cases for any delay, error or inaccuracy in the publication of any such rates, or for any subsequent correction or adjustment thereto.

**Section 10.04.** <u>Holders' Representations, Warranties and Acknowledgment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Holder represents and warrants to each Agent that it has made its own independent investigation of the financial condition and affairs of each Note Party, without reliance upon either Agent or any other Holder and based on such documents and information as it has deemed appropriate, in connection with Note Purchases hereunder and that it has made and shall continue to make its own appraisal of the creditworthiness of each Note Party. Neither Agent shall have any duty or responsibility, either initially or on a continuing basis, to make any such investigation or any such appraisal on behalf of the Holders or to provide any Holder with any credit or other information with respect thereto, whether coming into its possession before the purchase of the Notes or at any time or times thereafter, and neither Agent shall have any responsibility with respect to the accuracy of or the completeness of any information provided to the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Holder, by delivering its signature page to this Agreement, an Assignment Agreement or a joinder agreement and funding its Note, shall be deemed to have acknowledged receipt of, and consented to and approved, each Note Document and each other document required to be approved by each Agent, Requisite Holders or Holders, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Holder hereby agrees that (i) if any Agent notifies such Holder that such Agent has determined in its sole discretion that any funds received by such Holder from such Agent or any of its Affiliates (whether as a payment, prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, a "**Payment**") were erroneously transmitted to such Holder (whether or not known to such Holder), and demands the return of such Payment (or a portion thereof), such Holder shall promptly, but in no event later than one Business Day thereafter, return to such Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, and (ii) to the extent permitted by applicable law, such Holder shall not assert, and hereby waives, as to such Agent, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by such Agent for the return of any Payments received, including without limitation any defense based on "discharge for value" or any similar doctrine. A notice of any Agent to any Holder under this <u>Section</u> <u>10.04</u> shall be conclusive, absent manifest error.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Holder hereby further agrees that if it receives a Payment from an Agent or any of its Affiliates (i) that is in a different amount than, or on a different date from, that specified in a notice of payment sent by such Agent (or any of its Affiliates) with respect to such Payment (a "**Payment Notice**") or (ii) that was not preceded or accompanied by a Payment Notice, it shall be on notice, in each such case, that an error has been made with respect to such Payment, and to the extent permitted by applicable law, such Holder shall not assert any right or claim to the Payment, and hereby waives, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by such Agent for the return of any Payments received, including without limitation waiver of any defense based on "discharge for value" or any similar doctrine. Each Holder agrees that, in each such case, or if it otherwise becomes aware that a Payment (or portion thereof) may have been sent in error, such Holder shall promptly notify such Agent of such occurrence and, upon demand from such Agent, it shall promptly, but in no event later than three (3) Business Days thereafter, return to such Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Issuer and each other Note Party hereby agrees that (i) in the event an erroneous Payment (or portion thereof) are not recovered from any Holder that has received such Payment (or portion thereof) for any reason, the Agents shall be subrogated to all the rights of such Holder with respect to such amount and (ii) an erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Issuer or any other Note Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each party's obligations under this <u>Section</u> <u>10.04</u> shall survive the resignation or replacement of the Agents or any transfer of rights or obligations by, or the replacement of, a Holder, the termination of the Commitments or the repayment, satisfaction or discharge of all Obligations under any Note Document.

**Section 10.05.** <u>Successor</u><u> </u><u>Agents</u>. Subject to the appointment and acceptance of a successor Agent as provided in this <u>Section</u> <u>10.05</u>, either Agent may resign at any time by giving thirty (30) days' prior written notice thereof to the Requisite Holders, and the Issuer. Any Agent may be removed as an Agent at the request of the Requisite Holders. Upon any such notice of resignation or removal, Requisite Holders shall have the right (with the consent of the Issuer (not to be unreasonably withheld, delayed or conditioned) unless an Event of Default shall have occurred and is continuing), to appoint a successor Agent; <u>provided</u> that such successor Agent shall be a nationally-recognized third party agent for similarly situated financings. If no successor shall have been so appointed by the Requisite Holders and shall have accepted such appointment within thirty (30) days after the retiring Agent gives notice of its resignation, then the retiring Agent's resignation shall nevertheless thereupon become effective and the Requisite Holders shall perform all of the duties of such Agent, as applicable, hereunder until such time, if any, as the Requisite Holders appoint a successor Agent as provided for above. In such case, the Requisite Holders shall appoint one Person to act as Agent for purposes of any communications with the Issuer, and until the Issuer shall have been notified in writing of such Person and such Person's notice address as provided for in <u>Section</u> <u>11.01</u>, the Issuer shall be entitled to give and receive communications to/from the resigning Agent. Upon the acceptance of any appointment as Agent hereunder by a successor Agent and the payment of the outstanding fees and expenses of the resigning or removed Agent, at the Issuer's expense, that successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Agent and the retiring or removed Agent shall promptly (i) transfer to such successor Agent all sums and other items of Collateral held under the Collateral Documents, together with all records and other documents necessary or appropriate in connection with the performance of the duties of the successor Agent under the Note Documents, and (ii) execute and deliver to such successor Agent such amendments to financing statements, and take such other actions, as may be reasonably requested in

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connection with the assignment to such successor Agent of the security interests created under the Collateral Documents (the reasonable out-of-pocket expenses of which shall be borne by the Issuer), whereupon such retiring or removed Agent shall be discharged from its duties and obligations hereunder. After any retiring Agent's resignation or any Agent's removal hereunder as Agent or Collateral Agent, the provisions of this <u>Article X</u> and <u>Section</u> <u>11.03</u> shall inure to its benefit as to any actions taken or omitted to be taken by it while it was an Agent hereunder. Any organization or other entity into which an Agent may be merged or converted or with which it may be consolidated, or any organization or other entity resulting from any merger, conversion or consolidation to which any Agent shall be a party, or any organization or other entity succeeding to all or substantially all of the corporate trust business of the Agents, shall be the successor to the Agents hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto.

**Section 10.06.** <u>Delegation of Duties</u>. Each Agent may perform any and all of its duties and exercise its rights and powers under this Agreement or under any other Note Document by or through any one or more sub-agents appointed by such Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Affiliates. Neither Agent shall be responsible for the acts or omissions of its sub-agents so long as they are appointed with due care. The exculpatory, indemnification and other provisions of <u>Article</u><u> </u><u>X</u> and <u>Section</u> <u>11.03</u> shall apply to any Affiliates of each Agent and shall apply to their respective activities in connection with the syndication of the Notes issued hereby. All of the rights, benefits and privileges (including the exculpatory and indemnification provisions) of <u>Article</u><u> </u><u>X</u> and <u>Section</u> <u>11.03</u> shall apply to any such sub-agent and to the Affiliates of any such sub-agent, and shall apply to their respective activities as sub-agent.

**Section 10.07.** <u>Collateral</u><u> </u><u>Documents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Agent under Collateral Documents</u>. Each Holder and other Indemnitee hereby further irrevocably authorizes the Collateral Agent, on behalf of and for the benefit of the Holders, to be the agent for and representative of Holders with respect to the Collateral Documents and to enter into such other agreements with respect to the Collateral (including intercreditor agreements) as it may deem necessary with the consent of the Requisite Holders. Subject to <u>Section</u> <u>11.06</u>, the Collateral Agent may execute any documents or instruments necessary to (i) release any Lien encumbering any item of Collateral that is the subject of a sale or other disposition of assets permitted hereby and with respect to which release the Requisite Holders (or such other Holders as may be required to give such consent under <u>Section</u> <u>11.06</u>) have consented or (ii) release any Guarantor from the Guarantee pursuant to the Guaranty Agreement with respect to which release the Requisite Holders (or such other Holders as may be required to give such consent under <u>Section</u> <u>11.06</u>) have consented, in each case upon delivery by the Issuer to the Agent and Collateral Agent with a certificate of a Responsible Officer certifying that such release is authorized and permitted under by the Note Documents, and such other certifications or documents as the Agent or Collateral Agent (in each case, at the direction of the Requisite Holders) shall request. Whether or not expressly provided therein, the Agent and the Collateral Agent shall be entitled to all of the rights, privileges, immunities and indemnities provided in this Agreement in entering into and performing under the Collateral Documents and any other Note Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Right to Realize on Collateral and Enforce Guarantee</u>. Anything contained in any of the Note Documents to the contrary notwithstanding, the Issuer, the Agents and each Holder hereby agree that (i) no Holder shall have any right individually to realize upon any of the Collateral or to enforce any Guarantee or exercise any other remedy provided under the Note Documents (other than the right of set-off provided in <u>Section</u> <u>11.04</u>), it being understood and agreed that all powers, rights and remedies hereunder may be exercised solely by the Collateral Agent (acting at the written direction of the Requisite Holders), on behalf of the Holders in accordance with the terms hereof and all powers, rights and remedies under this Agreement and the Collateral Documents may be exercised solely by the Collateral Agent (acting at the

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written direction of the Requisite Holders), and (ii) in the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale, the Collateral Agent or its nominee may be the purchaser of any or all of such Collateral at any such sale and the Collateral Agent, as agent for and representative of Holders (but not any Holder or Holders in its or their respective individual capacities unless the Requisite Holders shall otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the Obligations arising under the Note Documents as a credit on account of the purchase price for any collateral payable by the Collateral Agent at such sale.

**Section 10.08.** <u>Posting</u><u> </u><u>of</u><u> </u><u>Approved</u><u> </u><u>Electronic</u> <u>Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Delivery</u><u> </u><u>of</u><u> </u><u>Communications</u>. Each Note Party hereby agrees, unless directed otherwise by an Agent or unless the electronic mail address referred to below has not been provided by an Agent to such Person, that it will provide to each Agent all information, documents and other materials that it is obligated to furnish to such Agent or to the Holders pursuant to the Note Documents, including all notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding any such communication that (i) is or relates to a Note Purchase Notice, (ii) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice of any Default or Event of Default under this Agreement or any other Note Document, or (iv) is required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement and/or any Note or other Note Purchase hereunder (all such non-excluded communications being referred to herein collectively as "**Communications**"), by transmitting the Communications in an electronic/soft medium that is properly identified in a format acceptable to the Issuer and each Agent to an electronic mail address as directed by each Agent. In addition, each Note Party agrees to continue to provide the Communications to each Agent or the Holders, as the case may be, in the manner specified in the Note Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No</u><u> </u><u>Prejudice</u><u> </u><u>to</u><u> </u><u>Notice</u><u> </u><u>Rights</u>. Nothing herein shall prejudice the right of any Agent or any Holder to give any notice or other communication pursuant to any Note Document in any other manner specified in such Note Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>The Platform</u>. Each Note Party acknowledges that Agent will make available to Holders materials and/or information by posting such materials and/or information on IntraLinks/IntraAgency, Syndtrack or another similar electronic system (the "<u>Platform</u>"). THE PLATFORM IS PROVIDED "AS IS" AND "AS AVAILABLE." AGENT DOES NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE NOTE PARTIES' COMMUNICATIONS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIMS LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE NOTE PARTIES' COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. In no event shall Agent have any liability to the Note Parties, any Holder or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Note Parties' or the Agent's transmission of materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of Agent. In no event shall Agent have any liability for any damages arising from the use by others of any information or other materials obtained through the Platform.

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**Section 10.09.** <u>Proofs</u><u> </u><u>of</u> <u>Claim</u>. The Holders and each Note Party hereby agree that after the occurrence of an Event of Default pursuant to <u>Section</u> <u>9.01(h)</u> or <u>9.01(i)</u>, in case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Note Party, Agent (acting at the direction of Requisite Holders) (irrespective of whether the principal of any Note shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether Agent shall have made any demand on any Note Party) shall be entitled and empowered, by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Notes and any other Obligations that are owing and unpaid and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Holders, the Agents and other agents (including any claim for the reasonable compensation, expenses, disbursements and advances of the Holders, the Agents and other agents and their agents and counsel and all other amounts due Holders, the Agents and other agents hereunder) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee, interim trustee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to Agent and, in the event that Agent shall consent to the making of such payments directly to the Holders, to pay to Agent and Collateral Agent, as applicable, any amount due for the compensation, expenses, disbursements and advances of each Agent, Collateral Agent and their agents and counsel, and any other amounts due Agents and other agents hereunder. Nothing herein contained shall be deemed to authorize any Agent to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Holders or to authorize any Agent to vote in respect of the claim of any Holder in any such proceeding. Further, nothing contained in this <u>Section</u> <u>10.09</u> shall affect or preclude the ability of any Holder to (i) file and prove such a claim in the event that an Agent has not acted within ten (10) days prior to any applicable bar date and (ii) require an amendment of the proof of claim to accurately reflect such Holder's outstanding Obligations.

**Section 10.10.** <u>Hedge Intercreditor Agreement</u>. Each Holder (and each Person that becomes a Holder hereunder pursuant to <u>Section</u> <u>11.07</u>) hereby authorizes the Agent to enter into, join or otherwise become party to the Hedge Intercreditor Agreement on behalf of such Holder, in each case, as needed to effectuate the transactions permitted by this Agreement and agrees that the Agent may take such actions on its behalf as is contemplated by the terms of Hedge Intercreditor Agreement. Without limiting the provisions of <u>Section</u> <u>10.02,</u> <u>11.02</u> and <u>11.03</u>, each Holder hereby consents to each of the Agent and any successor serving in such capacities and agrees not to assert any claim (including as a result of any conflict of interest) against the any Agent, or any such successor, arising from the role of any Agent or such successor under the Note Documents or any such intercreditor agreement so long as it is either acting in accordance with the terms of such documents and otherwise has not engaged in gross negligence or willful misconduct (as determined in a final and non-appealable judgment by a court of competent jurisdiction). In addition, the Agent and Collateral Agent, or any such successors, shall be authorized, with the consent of the Requisite Holders, to execute or to enter into amendments of, and amendments and restatements of, the Collateral Documents, the Hedge Intercreditor Agreement and any additional and replacement intercreditor agreements, as is contemplated by the terms of the Hedge Intercreditor Agreement.

**Section 10.11.** <u>Indemnification</u>. To the extent that the Agents are not promptly reimbursed and indemnified by any Note Party, and after the Agents have made demand on any Note Party for the same, the Holders will, within five (5) days of written demand by the Agents, reimburse the Agents for, and indemnify and hold harmless the Agents from and against, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including client charges and expenses of counsel or any other advisor to Agents), advances or disbursements of any kind or nature whatsoever which

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may be imposed on, incurred by, or asserted against the Agents in any way relating to or arising out of this Agreement or any of the other Note Documents or any action taken or omitted by the Agents under this Agreement or any of the other Note Documents, in proportion to each Holder's Pro Rata Share; provided, however, that no Holder shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses, advances or disbursements for which there has been a final non-appealable judicial determination that such liability resulted from such applicable Agent's gross negligence or willful misconduct. The obligations of the Holders under this Section 10.11 shall survive the Payment in Full of the Obligations, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

**ARTICLE XI** 

**MISCELLANEOUS** 

**Section 11.01.** <u>Notices</u>. Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given to a Note Party or the Agents, shall be sent to such Person's address as set forth on <u>Appendix</u><u> </u><u>B</u> or in the other relevant Note Document, and in the case of any Holder, the address as indicated on <u>Appendix B</u> or otherwise indicated to Agents in writing. Each notice hereunder shall be in writing and may be personally served, sent by telefacsimile, electronic transmission or United States certified or registered mail or courier service and shall be deemed to have been given when delivered and signed for against receipt thereof, or upon confirmed receipt of telefacsimile or electronic transmission (which confirmation shall be made by telephone call by the sender to the Agents; confirmation by electronic messaging shall not be deemed to be confirmation of receipt).

**Section 11.02.** <u>Expenses</u>. Each Note Party shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Agents, the Holders and their Affiliates (including, without limitation, the reasonable fees, charges and disbursements of (A) one primary firm of counsel to the Holders, (B) one primary firm of counsel to the Agent and Collateral Agent, (C) one local counsel and one regulatory counsel in each relevant jurisdiction, if any and (D) reasonable travel, photocopy, mailing, courier, telephone and other similar expenses, in connection with the issuance of the Notes provided for herein, the preparation, negotiation, execution, delivery and administration (both before and after the execution hereof and including advice of counsel to the Agents and the Holders as to the rights and duties of any Agent and the Holders with respect thereto) of this Agreement and the other Note Documents and any amendments, modifications or waivers of or consents related to the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all costs, expenses, Taxes, assessments and other charges incurred by the Agents or any Holder in connection with any filing, registration, recording or perfection of any security interest contemplated by this Agreement or any Collateral Document or any other document referred to therein and (iii) all out-of-pocket expenses incurred by the Agents or any Holder, including the fees, charges and disbursements of counsel and other experts, in connection with the enforcement or protection of its rights in connection with this Agreement or any other Note Document, including its rights under this <u>Section</u> <u>11.02</u>, or in connection with the Notes issued hereunder, including, without limitation, all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Notes. All amounts due under this <u>Section</u> <u>11.02</u> shall be paid within thirty (30) days of receipt by the Issuer of an invoice. The agreements in this Section 11.02 shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

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**Section 11.03.** <u>Indemnity;</u> <u>Limitation</u><u> </u><u>of</u><u> </u><u>Liability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to the payment of expenses pursuant to <u>Section</u> <u>11.02</u>, whether or not any or all of the Transactions shall be consummated, each Note Party agrees to defend (subject to Indemnitees' selection of counsel), indemnify, pay and hold harmless, EIG, the Agents and each Holder, their Affiliates and its and their respective officers, members, shareholders, partners, directors, trustees, employees, advisors (including attorneys, accountants and experts), representatives and agents and each of their respective successors and assigns and each Person who controls any of the foregoing (each, an "**Indemnitee**"), from and against any and all Indemnified Liabilities, **IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY, OR SOLE NEGLIGENCE OF SUCH INDEMNITEE**; <u>provided</u> that, no Note Party shall have any obligation to an Indemnitee hereunder with respect to any Indemnified Liabilities if such Indemnified Liabilities arise from the gross negligence or willful misconduct of that Indemnitee as determined by a court of competent jurisdiction in a final, nonappealable order, <u>provided</u> that no Note Party shall indemnify any Holder or its related Indemnitee for claims solely among the Holders (or any combination thereof) to the extent not related to a breach of an obligation of a Note Party as determined by a court of competent jurisdiction by final and nonappealable judgement. To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in this <u>Section</u> <u>11.03</u> may be unenforceable in whole or in part because they are violative of any law or public policy, the applicable Note Party shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them. The indemnities and waivers set forth in this <u>Section</u> <u>11.03(a)</u> shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent. All amounts due under this <u>Section</u> <u>11.03(a)</u> shall be paid within thirty (30) days of receipt by the Issuer of an invoice.

(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the extent permitted by applicable law, no Note Party shall assert (and no Note Party shall permit is Affiliates to assert), and each Note Party hereby waives, releases and agrees not to sue upon any claim against EIG, the Agents and each Holder, their Affiliates and its and their respective officers, members, shareholders, partners, directors, trustees, employees, advisors (including attorneys, accountants and experts), representatives and agents and each of their respective successors and assigns and each Person who controls any of the foregoing (each such Person, a "**Holder-Related Party**") (and agrees to cause its Affiliates to do the same), on any theory of liability, for special, indirect, exemplary, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement, any Note Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the Transactions, any documentation related to any Note or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and each Note Party hereby waives, releases and agrees not to sue any Holder-Related Party upon any such claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor. The waivers set forth in this Section 11.03(b) shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the extent permissible under applicable law, none of the Agents, any Note Party or any Subsidiary shall have any liability for any special, indirect, exemplary, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement, any Note Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the Transactions, any documentation related to any Note or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, in respect of any such damages incurred or paid by an Indemnitee to a third party and for any out-of-pocket expenses in each case subject to the indemnification provisions of this <u>Section</u> <u>11.03</u>; it being agreed that this sentence shall not limit the obligations of the Note Parties under <u>Section</u> <u>11.03(a)</u>. The waivers set forth in this <u>Section</u> <u>11.03(b)</u> shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Note Party hereby acknowledges and agrees that an Indemnitee may now or in the future have certain rights to indemnification provided by other sources ("**Other Sources**"). Each Note Party hereby agrees that (i) it is the indemnitor of first resort (i.e., its obligations to the Indemnitees are primary and any obligation of the Other Sources to provide indemnification for the same Indemnified Liabilities are secondary to any such obligation of the Note Party), (ii) that it shall be liable for the full amount of all Indemnified Liabilities, without regard to any rights the Indemnitees may have against the Other Sources, and (iii) it irrevocably waives, relinquishes and releases the Other Sources and the Indemnitees from any and all claims (A) against the Other Sources for contribution, indemnification, subrogation or any other recovery of any kind in respect thereof and (B) that an Indemnitee must seek expense advancement or reimbursement, or indemnification, from the Other Sources before the Note Party must perform its obligations hereunder. No advancement or payment by the Other Sources on behalf of an Indemnitee with respect to any claim for which such Indemnitee has sought indemnification from a Note Party shall affect the foregoing. The Other Sources shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery which the Indemnitee would have had against a Note Party if the Other Sources had not advanced or paid any amount to or on behalf of the Indemnitee.

**Section 11.04.** <u>Set</u><u> </u><u>Off</u>. In addition to any rights now or hereafter granted under applicable law or Governmental Requirement and not by way of limitation of any such rights, upon the occurrence and during the continuance of any Event of Default each Holder and its/their respective Affiliates is hereby authorized by each Note Party at any time or from time to time subject to the consent of Agent (such consent to be given or withheld at the written direction of the Requisite Holders), without notice to any Note Party or to any other Person (other than Agent), any such notice being hereby expressly waived, to set off and to appropriate and to apply any and all deposits (general or special, including Debt evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts (in whatever currency)) and any other Debt at any time held or owing by such Holder to or for the credit or the account of any Note Party (in whatever currency) against and on account of the obligations and liabilities of any Note Party to such Holder hereunder, and under the other Note Documents, including all claims of any nature or description arising out of or connected hereto or any other Note Document, irrespective of whether or not (a) such Holder shall have made any demand hereunder, (b) the principal of or the interest on the Notes or any other amounts due hereunder shall have become due and payable pursuant to <u>Article</u><u> </u><u>II</u> and although such obligations and liabilities, or any of them, may be contingent or unmatured, or (c) such obligation or liability is owed to a branch or office of such Holder different from the branch or office holding such deposit or obligation or such Debt.

**Section 11.05.** <u>[Reserved]</u>.

**Section 11.06.** <u>Amendments</u><u> </u><u>and</u> <u>Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Requisite Holders</u><u>'</u> <u>Consent</u>. Subject to <u>Sections 11.06(b)</u> and <u>11.06(c)</u>, no amendment, modification, termination or waiver of any provision of the Note Documents, or consent to any departure by any Note Party therefrom, shall in any event be effective without the written concurrence of (i) in the case of this Agreement, the Issuer, the Agents and the Requisite Holders or (ii) in the case of any other Note Document (other than the Agent Fee Letter), the Note Parties party thereto and (A) Agents with the consent of the Requisite Holders or (B) the Requisite Holders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Affected Holders</u><u>'</u> <u>Consent</u>. Without the written consent of each Holder that would be directly affected thereby, no amendment, modification, or consent shall be effective if the effect thereof would:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) reduce the principal of the Notes or waive or postpone scheduled final maturity of the Notes or waive, postpone or reduce any fixed and scheduled repayment of the Notes (it being understood that the waiver of (or amendment to the terms of) any mandatory prepayment of the Notes shall not constitute a postponement of any date scheduled for the payment of principal or interest);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject to <u>Section</u> <u>2.15(b)</u>, (A) reduce the rate of interest on any Note of, or the amounts of fees payable to, such Holder, (B) extend the time for payment of any such interest or fees to such Holder or (C) waive any interest or fee payable hereunder to such Holder (<u>provided</u> that the application of the Default Rate pursuant to <u>Section</u> <u>2.06(c)</u> may be reduced, extended or waived by the Requisite Holders);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) extend or increase the Commitment of such Holder (it being understood that a waiver of any condition precedent or of any Default or Event of Default, mandatory prepayment or mandatory reduction of the Commitments shall not constitute an extension or increase of any Commitment of any Holder);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) release all or substantially all the Guarantors from the Guarantee or release the Liens securing all or substantially all of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amend, modify, terminate or waive any provision of Sections <u>2.10</u>, <u>2.11(g)</u>, <u>2.12</u>, <u>Section</u> <u>9.03</u> or this <u>Section</u> <u>11.06(b)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) amend the definition of "Requisite Holders" or "Pro Rata Share".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Consents</u>. No amendment, modification, termination, or waiver of any provision of the Note Documents, or consent to any departure by any Note Party therefrom, shall materially and adversely amend, modify, terminate or waive any provision of <u>Article</u><u> </u><u>IX</u> as the same applies to any Agent or any Indemnitee Agent Party, or any other provision hereof as the same applies to the rights or obligations of any Agent, in each case without the consent of such Agent or such Indemnitee Agent Party. With limiting the foregoing, neither Agent shall be bound to follow or agree to any amendment or supplement to this Agreement that would increase or materially change or affect the duties, obligations or liabilities of such Agent (including without limitation the imposition or expansion of discretionary authority with respect to the benchmark), or reduce, eliminate, limit or otherwise change any right, privilege or protection of such Agent, or would otherwise change any right, privilege or protection of such Agent, or would otherwise materially and adversely affect such Agent, in each case in its reasonable judgment, without such party's express written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Execution of Amendments, etc</u>. Agent and Collateral Agent, if applicable, shall at the direction of the applicable Holders, execute amendments, modifications, waivers or consents on behalf of such Holders. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on any Note Party shall entitle any Note Party to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent effected in accordance with this <u>Section</u> <u>11.06(d)</u> shall be binding upon each Holder at the time outstanding, each future Holder and, if signed by a Note Party, on such Note Party. Agent will deliver executed or true and correct copies of each amendment, modification, waiver, or consent effected pursuant to this <u>Section</u> <u>11.06</u> to each Holder promptly following the date on which it is executed and delivered, or receives the consent or approval of the requisite percentage of Holders applicable thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Note Parties and Affiliates</u>. No Note Party will, and the Issuer will not permit any of its Subsidiaries, any of the Note Parties or any of their respective Affiliates, to, directly or indirectly, offer to purchase, prepay, Redeem or otherwise acquire any outstanding Notes, except as otherwise expressly permitted under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Amendment Consideration</u>. None of Issuer or any of its Affiliates or any other party to any Note Documents, directly or indirectly, will pay or cause to be paid any consent fees, or grant any security as an inducement for, any proposed amendment or waiver of any of the provisions of this Agreement or any of the other Note Documents unless each Holder of the Notes (irrespective of the kind and amount of Notes then owned by it) shall be informed thereof by Issuer and, if such Holder is entitled to the benefit of any such provision proposed to be amended or waived, shall be afforded the opportunity of considering the same, shall be supplied by Issuer and any other party hereto with sufficient information to enable it to make an informed decision with respect thereto and, to the extent such amendment or waiver is consented to by such Holder, shall be paid such remuneration and granted such security on the same terms. For the avoidance of doubt, nothing in this <u>Section</u> <u>11.06(f)</u> is intended to restrict or limit the amendment requirements otherwise set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Consent in Contemplation of Transfer</u>. Any consent given pursuant to this <u>Section</u> <u>11.06</u> or any other Note Document by a Holder that has transferred or has agreed to transfer its Note to any Person in connection with, or in anticipation of, such other Person acquiring, making a tender offer for or merging with the Issuer, any Note Party and/or any of their Affiliates, shall be void and of no force or effect except solely as to such Holder, and any amendments, modifications or terminations effected or waivers or consents granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other Holders that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such Holder.

**Section 11.07.** <u>Successors</u><u> </u><u>and</u><u> </u><u>Assigns;</u> <u>Assignments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors</u><u> </u><u>and</u><u> </u><u>Assigns</u>. This Agreement shall be binding upon the parties hereto and their respective successors and assigns and shall inure to the benefit of the parties hereto and the successors and assigns of Holders. No Note Party's rights or obligations hereunder nor any interest therein may be assigned or delegated by any such Person without the prior written consent of all Holders (and any attempted assignment or transfer by any such Person without such consent shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly contemplated hereby, Affiliates of each of Agent and Holders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignments</u>. Subject to compliance with applicable securities laws, if any, any Holder may at any time sell, assign or otherwise transfer to one or more Eligible Assignees any Notes and all or any portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitments and the Notes held by it).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mechanics</u>. The assigning Holder and the assignee thereof shall execute and deliver to Agent an Assignment Agreement, a processing and recordation fee of $3,500 (other than in the case of an assignment from a Holder to its Affiliate or a Related Fund), all "know your customer" and anti-money laundering rules and regulations, including the USA PATRIOT Act, documents as reasonably requested by the Agent, together with such forms, certificates or other evidence, if any, with respect to United States federal Tax withholding matters as the assignee under such Assignment Agreement may be required to deliver to Agent and Issuer pursuant to <u>Section</u> <u>2.14(e)</u> and <u>2.14(f)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notice of Assignment</u>. Upon its receipt and acceptance of a duly executed and completed Assignment Agreement, the processing and recordation fee of $3,500 (which, for the avoidance of doubt, is not required in the case of an assignment from a Holder to its Affiliate or to a Related Fund), any "know your customer" documents reasonably requested by the Agent, and any other forms, certificates or other evidence required by this Agreement in connection therewith, Agent shall record the information contained in such Assignment Agreement in the Register, shall give prompt notice thereof to the Issuer and shall maintain a copy of such Assignment Agreement. The Agent is not, and shall not be deemed to be, acting hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Representations and Warranties of Assignee</u>. Each Holder upon executing and delivering an Assignment Agreement, represents and warrants as of the applicable Effective Date (as defined in the applicable Assignment Agreement) that (i) it has experience and expertise in the making of or investing in notes; and (ii) it will make or invest in, as the case may be, its Notes for its own account in the ordinary course of its business and without a view to distribution of such Notes within the meaning of the Securities Act or the Exchange Act or other applicable securities laws (it being understood that, subject to the provisions of this <u>Section</u> <u>11.07(e)</u>, the disposition of Notes or any interests therein shall at all times remain within its exclusive control). In addition, each Holder becoming party hereto after the Closing Date, upon executing and delivering an Assignment Agreement, shall be deemed to have made the representations and warranties contained in <u>Article</u><u> </u><u>V</u> as of the applicable Effective Date (as defined in the applicable Assignment Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Effect of Assignment</u>. Subject to the terms and conditions of this <u>Section</u> <u>11.07(f)</u>, as of the "Effective Date" specified in the applicable Assignment Agreement and recordation in the Register: (i) the assignee thereunder shall have the rights and obligations of a "Holder" hereunder to the extent such rights and obligations hereunder have been assigned to it pursuant to such Assignment Agreement and shall thereafter be a party hereto and a "Holder" for all purposes hereof; (ii) the assigning Holder thereunder shall, to the extent that rights and obligations hereunder have been assigned thereby pursuant to such Assignment Agreement, relinquish its rights (other than any rights which survive the termination hereof under <u>Section</u> <u>11.08</u>) and be released from its obligations hereunder (and, in the case of an Assignment Agreement covering all or the remaining portion of an assigning Holder's rights and obligations hereunder, such Holder shall cease to be a party hereto; <u>provided</u> that such assigning Holder shall continue to be entitled to the benefit of all indemnities and expense reimbursement rights hereunder as specified herein with respect to matters arising prior to such assignment); and (iii) if any such assignment occurs after the issuance of any Note hereunder, the assigning Holder shall, upon the effectiveness of such assignment or as promptly thereafter as practicable, surrender its applicable Note to the Issuer for cancellation, and thereupon the Issuer shall issue and deliver a new Note, if so requested by the assignee and/or assigning Holder, to such assignee and/or to such assigning Holder, with appropriate insertions, to reflect the outstanding principal balance under the Notes of the assignee and/or the assigning Holder. Notes shall not be transferred in denominations of less than $100,000 (unless transferred by any Holder to an Affiliate and/or a Related Fund of such Holder), <u>provided</u>, that if necessary to enable the registration of transfer by a Holder of its entire holding of Notes, a Note may be in a denomination of less than $100,000; <u>provided</u> <u>further</u>, that transfers by a Holder, its Affiliates and its Related Funds shall be aggregated for purposes of determining whether or not such $100,000 threshold has been reached.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Participations</u>. Subject to compliance with applicable securities laws, if any, each Holder shall have the right at any time to sell one or more participations to any Person (other than a natural Person, any Note Party or any of their respective Affiliates) (each, a "**Participant**") in all or any part of such Holder's rights and/or obligations under this Agreement (including all or a portion of its Notes or any other Obligation); <u>provided</u> that (i) such Holder's obligations under this Agreement shall remain unchanged, (ii) such Holder shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Issuer, Agents, and the Holders shall continue to deal solely and directly with such Holder in connection with such Holder's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Holder sells such a participation shall provide that such Holder shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u> that such agreement or instrument may provide that such Holder will not, without the consent of the Participant, agree to any amendment, modification or waiver described in <u>Section</u> <u>11.06(b)</u> that affects such Participant. The Issuer agrees that each Participant shall be entitled to the benefits of <u>Sections 2.13</u> and <u>2.14</u> (subject to the requirements and limitations therein, including the requirements and limitations under <u>Section</u> <u>2.14(e)</u> and <u>Section</u> <u>2.14(f)</u>) (it being understood that the documentation required under <u>Section</u> <u>2.14(e)</u> and <u>Section</u> <u>2.14(f)</u> shall be delivered by the Participant to the applicable Holder) to the same extent as if it were a Holder and had acquired its interest by assignment pursuant to <u>paragraph (c)</u> of this <u>Section</u> <u>11.07</u>; <u>provided</u> that such Participant shall not be entitled to receive any greater payment under <u>Section</u> <u>2.11(h)</u> than the applicable Holder would have been entitled to receive with respect to the participation sold to such Participant, unless such greater payment results from a change in a Governmental Requirement that occurs after the Participant acquired the applicable participation, or is made with the Issuer's prior written consent. To the extent permitted by law, each Participant shall be entitled to the benefits of <u>Section</u> <u>11.04</u> as though it were a Holder; <u>provided</u> that such Participant agrees to be subject to <u>Section</u> <u>2.14</u> as though it were a Holder. Each Holder that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Issuer, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Notes or other Obligations under the Note Documents (the "**Participant Register**"); <u>provided</u> that no Holder shall have any obligation to disclose all or a portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Note Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Treasury Regulation Section 5f.103-1(c), proposed Treasury Regulation Section 1.163-5 or any applicable temporary, final or other successor regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Holder shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register, and the Agent shall be entitled to treat the Holder, and not any Participant, as the Holder all purposes hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Independence</u><u> </u><u>of</u> <u>Covenants</u>. All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

**Section 11.08.** <u>Survival of Representations, Warranties and Agreements</u>. All representations, warranties and agreements made herein shall survive the execution and delivery hereof and the making of any Note Purchase. Notwithstanding anything herein or implied by law to the contrary, the agreements of each Note Party set forth in <u>Sections 2.14</u>, <u>11.02</u>, <u>11.03</u> and <u>11.04</u> and the agreements of Holders set forth in <u>Sections 2.12</u>, <u>2.14</u>, <u>10.11</u> and <u>11.03(b)</u> shall survive the payment of the Notes, the termination hereof and the resignation or removal of any Agent.

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**Section 11.09.** <u>No Waiver; Remedies Cumulative</u>. No failure or delay on the part of any Agent or any Holder in the exercise of any power, right or privilege (including with respect to any financial covenant calculation or evaluation of the calculation or components thereof) hereunder or under any other Note Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein (including with respect to any future covenant calculation or evaluation of the calculation or components thereof), nor shall any single or partial exercise of any such power, right or privilege preclude further or future exercise thereof or of any other power, right or privilege. The rights, powers and remedies given to Agents and each Holder hereby are cumulative and shall be in addition to and independent of all rights, powers and remedies existing by virtue of any statute or rule of law or in any of the other Note Documents. Any forbearance or failure to exercise, and any delay in exercising, any right or privilege, power or remedy hereunder (including with respect to any financial covenant calculation or evaluation of the calculation or components thereof) shall not impair any such right or privilege, power or remedy or be construed to be a waiver thereof, nor shall it preclude other, further or future exercise of any such right or privilege, power or remedy.

**Section 11.10.** <u>Marshalling; Payments Set Aside</u>. Neither Agent nor any Holder shall be under any obligation to marshal any assets in favor of any Note Party or any other Person or against or in payment of any or all of the Obligations. To the extent that any Note Party makes a payment or payments to any Agent or the Holders (or to any Agent, on behalf of the Holders), or any Agent or the Holders enforce any security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, any other state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred.

**Section 11.11.** <u>Severability</u>. In case any provision in or obligation hereunder or any Note or other Note Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

**Section 11.12.** <u>Obligations Several; Independent Nature of Holders</u><u>'</u> <u>Rights</u>. The obligations of the Holders hereunder are several and no Holder shall be responsible for the obligations or Commitment of any other Holder hereunder. Nothing contained herein or in any other Note Document, and no action taken by the Holders pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Holder shall be a separate and independent debt, and each Holder shall be entitled to protect and enforce its rights arising out hereof and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose.

**Section 11.13.** <u>Tax</u> <u>Treatment</u>. The Issuer, the Agent and each Holder intend that the Notes shall be treated as indebtedness for Tax purposes and agree to report the Notes as indebtedness on all Tax returns.

**Section 11.14.** <u>Headings</u>. Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.

**Section 11.15.** <u>APPLICABLE LAW</u>. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

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**Section 11.16.** <u>CONSENT</u><u> </u><u>TO</u> <u>JURISDICTION</u>. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY HERETO ARISING OUT OF OR RELATING HERETO OR ANY OTHER NOTE DOCUMENT, OR ANY OF THE OBLIGATIONS, SHALL BE BROUGHT IN STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY HERETO, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (A) ACCEPTS GENERALLY AND UNCONDITIONALLY THE JURISDICTION AND VENUE OF SUCH COURTS; (B) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE NOTE PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH <u>SECTION 11.01</u> IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE NOTE PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (D) AGREES THAT AGENTS AND THE HOLDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY NOTE PARTY IN THE COURTS OF ANY OTHER JURISDICTION.

**Section 11.17.** <u>WAIVER OF JURY TRIAL</u>. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER NOTE DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT OR THE HOLDER/ISSUER RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS <u>SECTION 11.17</u> AND EXECUTED BY EACH OF THE PARTIES HERETO THAT IS PARTY TO SUCH JUDICIAL PROCEEDING), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER NOTE DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE NOTES PURCHASED HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

**Section 11.18.** <u>Confidentiality</u>. If the Issuer reasonably believes that any information being furnished by it or any other Note Party to Agent or a Holder ("**Recipient**") relating to it or its business is confidential, the Issuer may so indicate by notice in writing to the Recipient, identifying such information with specificity (such identified information, the "**Confidential Information**"), in which event the Recipient will use reasonable efforts to maintain the confidentiality thereof; <u>provided</u>, <u>however</u>, that a Recipient may disclose such information (a) to its Affiliates, partners, prospective partners, members and prospective members and its and their respective directors, managers, officers, employees, attorneys, accountants, advisors, auditors, consultants, agents or representatives with a need to know such Confidential Information (collectively "**Permitted Recipients**"); (b) to any potential assignee, participant, pledgee or transferee of any of its rights or obligations hereunder (including without limitation, in connection with a sale or participation of any or all of the Notes) or any of their related parties, agents and advisors (<u>provided</u>

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that such potential assignee, participant or transferee agree to be bound by provisions that are substantially similar to the restrictions set forth in this <u>Section</u> <u>11.18</u>); (c) if such information (i) becomes publicly available other than as a result of a breach of this <u>Section</u> <u>11.18</u>, (ii) becomes available to a Recipient or any of its Permitted Recipients on a non-confidential basis from a source other than the Note Parties or (iii) is independently developed by the Recipient or any of its Permitted Recipients without the use of or reliance on such information; (d) to enable it to enforce or otherwise exercise any of its rights and remedies under any Note Document; or (e) as consented to in writing by the Issuer. Notwithstanding anything to the contrary set forth in this <u>Section</u> <u>11.18</u> or otherwise, nothing herein shall prevent a Recipient or its Permitted Recipients from complying with any legal requirements (including, without limitation, pursuant to any rule, regulation, stock exchange requirement, self-regulatory body, supervisory authority, other applicable judicial or governmental order, legal process, fiduciary or similar duties or otherwise) to disclose any Confidential Information. In addition, the Recipient and its Permitted Recipients may disclose Confidential Information if so requested by a governmental, self-regulatory or supervisory authority or examiner (including the National Association of Insurance Commissioners). Each Note Party hereby acknowledges and agrees that, subject to the restrictions on disclosure of Confidential Information as provided in this <u>Section</u> <u>11.18</u>, the Recipient and their respective Affiliates are in the business of making investments in and otherwise engaging in businesses which may or may not be in competition with the Note Parties or otherwise related to their and their Affiliates' respective business and that nothing herein shall, or shall be construed to, limit the Holders' or their Affiliates' ability to make such investments or engage in such businesses. Notwithstanding any other provision of this <u>Section</u> <u>11.18</u>, the parties (and each employee, representative, or other agent of the parties) may disclose to any and all Persons, without limitation of any kind, the Tax treatment and any facts that may be relevant to the Tax structure of the transactions contemplated by this Agreement and the other Note Documents; <u>provided</u>, <u>however</u>, that no party (and no employee, representative, or other agent thereof) shall disclose any other information that is not relevant to an understanding of the Tax treatment and Tax structure of the transaction (including the identity of any party and any information that could lead another to determine the identity of any party), or any other information to the extent that such disclosure could reasonably result in a violation of any applicable securities law. Issuer understands and acknowledges that in the regular course of a Holder's business, such Holder may invest in companies that have issued securities that are publicly traded (each, a "**Public Company**"). Accordingly, Issuer covenants and agrees that before providing material non-public information about a Public Company ("**Public Company Information**"), Issuer will provide prior written notice to the applicable compliance personnel indicated in <u>Schedule 11.18</u>. Issuer shall not disclose Public Company Information to such Holder without written authorization from such compliance personnel. Any Holder and Holder-Related Party may disclose the existence of this Agreement, the Transactions and the form of the financing, and place customary advertisements in financial and other news sources or on a home page or similar place and circulate similar promotional materials, in each case, after the effectiveness of this Agreement, including in the form of a "tombstone", which may include the size of the deal, the form of the financing, the Issuer's name, logo and a link to the Issuer's or an Affiliate's website.

**Section 11.19.** <u>Usury</u><u> </u><u>Savings</u><u> </u><u>Clause</u>. Notwithstanding any other provision herein, the aggregate interest rate charged or agreed to be paid with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest under applicable law shall not exceed the Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence) under this Agreement at any time exceeds the Highest Lawful Rate, the outstanding amount of the Notes purchased hereunder shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect. In addition, if when the Notes purchased hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is less than the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by law, the Issuer shall pay to Agent an amount equal to the difference between the amount of interest paid and the amount of interest

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which would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding the foregoing, it is the intention of Holders and the Issuer to conform strictly to any applicable usury laws. Accordingly, if any Holder contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Holder's option be applied to the outstanding amount of the Notes purchased hereunder or be refunded to the Issuer. In determining whether the interest contracted for, charged, or received by Agent or a Holder exceeds the Highest Lawful Rate, such Person may, to the extent permitted by applicable law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest, throughout the contemplated term of the Obligations hereunder.

**Section 11.20.** <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.

**Section 11.21.** <u>USA</u><u> </u><u>PATRIOT Act</u>. Each Holder and each Agent (for itself and not on behalf of any Holder) hereby notifies each Note Party that pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record information that identifies such Note Party, which information includes the name and address of such Note Party and other information that will allow such Holder or such Agent, as applicable, to identify such Note Party in accordance with the USA PATRIOT Act.

**Section 11.22.** <u>Disclosure</u>. Each Note Party and each Holder hereby acknowledge and agree that the Agents and/or their Affiliates and their respective Related Funds from time to time may hold investments in, and make loans to, or have other relationships with any of the Note Parties and their respective Affiliates, including the ownership, purchase and sale of Equity Interests in any Note Party and their respective Affiliates and each Holder hereby expressly consents to such relationships.

**Section 11.23.** <u>Appointment</u><u> </u><u>for</u><u> </u><u>Perfection</u>. Each Holder hereby appoints each other Holder as its agent for the purpose of perfecting Liens, for the benefit of the Agents and the Holders, in assets which, in accordance with Article 9 of the UCC or any other applicable law can be perfected only by possession. Should any Holder obtain possession of any such Collateral, such Holder shall notify the Collateral Agent thereof, and, promptly upon Collateral Agent's request therefor shall deliver such Collateral to Collateral Agent or otherwise deal with such Collateral in accordance with Collateral Agent's instructions.

**Section 11.24.** <u>Advertising and Publicity</u>. No Note Party shall issue or disseminate to the public (by advertisement, including without limitation any "tombstone" advertisement, press release or otherwise), submit for publication or otherwise cause or seek to publish any information describing the credit or other financial accommodations made available by Holders pursuant to this Agreement and the other Note Documents without the prior written consent of the Requisite Holders. Nothing in the foregoing shall be construed to prohibit any Note Party from making any submission or filing which it is required to make by applicable Governmental Requirement (including securities laws, rules and regulations), stock exchange rules or pursuant to judicial process; <u>provided</u>, that, (a) such filing or submission shall contain only such information as is necessary to comply with such applicable Governmental Requirement, rule or judicial process and (b) unless specifically prohibited by applicable law, rule or court order, the Issuer shall promptly notify Agent of the requirement to make such submission or filing and provide Agent with a copy thereof.

**Section 11.25.** <u>Acknowledgments</u><u> </u><u>and Admissions</u>. The Issuer hereby acknowledges and admits that:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it has been advised by counsel in the negotiation, execution and delivery of the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has made an independent decision to enter into this Agreement and the other Note Documents to which it is a party, without reliance on any representation, warranty, covenant or undertaking by any Agent or any Holder, whether written, oral or implicit, other than as expressly set out in this Agreement or in another Note Document delivered on or after the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there are no representations, warranties, covenants, undertakings or agreements by the Agents or any Holder as to the Note Documents except as expressly set out in this Agreement and the other Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) none of the Agents or any Holder has any fiduciary obligation toward it with respect to any Note Document or the Transactions contemplated thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) no partnership or joint venture exists with respect to the Note Documents between any Note Party, on the one hand, and the Agents or any Holder, on the other;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Agents are not any Note Party's agent except as otherwise provided herein in <u>Section</u> <u>2.06</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither Simpson Thacher & Bartlett LLP nor Shipman & Goodwin LLP is counsel for any Note Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) should an Event of Default or Default occur or exist, each Holder will determine in its discretion and for its own reasons what remedies and actions it will or will not direct the Agents to exercise or take at that time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) without limiting any of the foregoing, no Note Party is relying upon any representation or covenant by the Agents or any Holder, or any representative thereof, and no such representation or covenant has been made, that any of the Agents or any Holder will, at the time of an Event of Default or Default, or at any other time, waive, negotiate, discuss, or take or refrain from taking any action permitted under the Note Documents with respect to any such Event of Default or Default or any other provision of the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Agents and the Holders have all relied upon the truthfulness of the acknowledgments in this <u>Section</u> <u>11.25</u> in deciding to execute and deliver this Agreement and to become obligated hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) each Note Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the fair meaning thereof.

**Section 11.26.** <u>Third</u><u> </u><u>Party</u><u> </u><u>Beneficiaries</u>. There are no third party beneficiaries to this Agreement other than Participants to the extent set forth in <u>Section</u> <u>11.07(g)</u>, the Secured Hedge Providers and, to the extent set forth herein, the Indemnitees.

**Section 11.27.** <u>Entire Agreement</u>. This Agreement, and the other Note Documents represent the final agreement among the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements among the parties.

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**Section 11.28.** <u>Transferability of Securities; Restrictive Legend</u>. Each note, certificate or other instrument evidencing the Notes issued by Issuer shall be stamped or otherwise imprinted with a legend in substantially the following forms:

"THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION."

Notwithstanding the foregoing, the restrictive legend set forth above shall not be required after the date on which the securities evidenced by such note, certificate or other instrument bearing such restrictive legend no longer constitute "restricted securities" (as defined in Rule 144 promulgated under the Securities Act), and upon the request of the Holder of such Notes, Issuer, without expense to such Holder, shall issue a new note, certificate or other instrument as applicable not bearing the restrictive legend otherwise required to be borne thereby. Agent shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on assignment imposed under this Agreement or under applicable law with respect to any assignment of any interest in any Note and Agent shall have no duty or responsibility to determine whether and when the restricted legend may be removed from the Notes.

**Section 11.29.** <u>Replacement</u><u> </u><u>of</u> <u>Notes</u>. Upon receipt by Issuer of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note, and (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (<u>provided</u> that if the Holder of such Note is, or is a nominee for, another Holder with a minimum net worth of at least $5,000,000, such Person's own unsecured agreement of indemnity shall be deemed to be satisfactory), or (b) in the case of mutilation, upon surrender and cancellation thereof, Issuer at its own expense shall execute and deliver, in lieu thereof, a new Note of the same series, dated and, in the case of a Note, bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

**Section 11.30.** <u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>. Notwithstanding anything to the contrary in any Note Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Note Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder that may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Note Document; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

**Section 11.31.** <u>Hedge</u> <u>Intercreditor</u><u> </u><u>Agreemen</u><u>t</u>. Notwithstanding anything herein to the contrary, the lien and security interest granted to the Collateral Agent, for the benefit of the Secured Parties, pursuant to this Agreement and the exercise of any right or remedy by the Collateral Agent and the other Secured Parties hereunder are subject to the provisions of the Hedge Intercreditor Agreement, as applicable. In the event of any conflict between the provisions of the Hedge Intercreditor Agreement and this Agreement, other than with respect to the Agent's or the Collateral Agent's own rights, privileges and immunities, the provisions of the Hedge Intercreditor Agreement shall control.

[*Signature Pages Follow.*]

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IN WITNESS WHEREOF, the parties hereto have caused this Note Purchase Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.

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| | | |
|:---|:---|:---|
| ISSUER: | **WHITEHAWK INCOME CORPORATION** | **WHITEHAWK INCOME CORPORATION** |
|  | By: | /s/ Jeffrey Slotterback |
|  | Name: | Jeffrey Slotterback |
|  | Title: | Chief Financial Officer and Secretary |

---

------

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| | | |
|:---|:---|:---|
| AGENT: | **U.S. BANK TRUST COMPANY, NATIONAL** <br> **ASSOCIATION**, as Agent | **U.S. BANK TRUST COMPANY, NATIONAL** <br> **ASSOCIATION**, as Agent |
|  | By: | /s/ James A. Hanley |
|  | Name: James A. Hanley | Name: James A. Hanley |
|  | Title: Senior Vice President | Title: Senior Vice President |
| COLLATERAL AGENT: | **U.S. BANK TRUST COMPANY, NATIONAL** | **U.S. BANK TRUST COMPANY, NATIONAL** |
|  | **ASSOCIATION**, as Collateral Agent | **ASSOCIATION**, as Collateral Agent |
|  | By: | /s/ Laurel Casasanta |
|  | Name: Laurel Casasanta | Name: Laurel Casasanta |
|  | Title: Vice President | Title: Vice President |

---

[WhiteHawk - Signature Page to Note Purchase Agreement]

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| | | |
|:---|:---|:---|
| **HOLDERS:** | **PACIFIC INDEMNITY COMPANY** | **PACIFIC INDEMNITY COMPANY** |
|  | By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
|  | By: | /s/ Jean Powers |
|  | Name: Jean Powers | Name: Jean Powers |
|  | Title: Managing Director | Title: Managing Director |
|  | By: | /s/ William Rogers |
|  | Name: William Rogers | Name: William Rogers |
|  | Title: Senior Vice President | Title: Senior Vice President |
|  | **EIG RIVER ENERGY PARTNERS L.P.,** | **EIG RIVER ENERGY PARTNERS L.P.,** |
|  | By: EIG Management Company, LLC, its manager | By: EIG Management Company, LLC, its manager |
|  | By: | /s/ Jean Powers |
|  | Name: Jean Powers | Name: Jean Powers |
|  | Title: Managing Director | Title: Managing Director |
|  | By: | /s/ William Rogers |
|  | Name: William Rogers | Name: William Rogers |
|  | Title: Senior Vice President | Title: Senior Vice President |
|  | **EIG UPSTREAM PARTNERS, L.P.,** | **EIG UPSTREAM PARTNERS, L.P.,** |
|  | By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
|  | By: | /s/ Jean Powers |
|  | Name: Jean Powers | Name: Jean Powers |
|  | Title: Managing Director | Title: Managing Director |
|  | By: | /s/ William Rogers |
|  | Name: William Rogers | Name: William Rogers |
|  | Title: Senior Vice President | Title: Senior Vice President |

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[WhiteHawk - Signature Page to Note Purchase Agreement]

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| | |
|:---|:---|
| EIG BANDELIER PARTNERS, L.P. | EIG BANDELIER PARTNERS, L.P. |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Jean Powers |
| Name: Jean Powers | Name: Jean Powers |
| Title: Managing Director | Title: Managing Director |
| By: | /s/ William Rogers |
| Name: William Rogers | Name: William Rogers |
| Title: Senior Vice President | Title: Senior Vice President |

---

[WhiteHawk - Signature Page to Note Purchase Agreement]

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**APPENDIX A** 

**COMMITMENTS** 

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| | |
|:---|:---|
| **Holder** | **Commitment** |
|  Pacific Indemnity Company | $25000000.00 |
|  EIG River Energy Partners, L.P. | $20000000.00 |
|  EIG Upstream Partners, L.P. | $15000000.00 |
|  EIG Bandelier Partners, L.P. | $5000000.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $65000000.00 |

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## Exhibit 4.3

**Exhibit 4.3** 

***EXECUTION VERSION*** 

**FIRST AMENDMENT TO NOTE PURCHASE AGREEMENT** 

This FIRST AMENDMENT TO NOTE PURCHASE AGREEMENT (this "<u>First Amendment</u>") dated as of March 31, 2025, is among WhiteHawk Income Corporation, a Delaware limited liability company (the "<u>Issuer</u>"), U.S. Bank Trust Company, National Association, as agent (in such capacity, together with its successors and permitted assigns in such capacity, "<u>Agent</u>") and collateral agent for the Holders and the Secured Hedge Providers (in such capacity, together with its successors and permitted assigns in such capacity, the "<u>Collateral Agent</u>"), the Holders party hereto and First Amendment Additional Note Holders party hereto.

**RECITALS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Issuer, the Agent, the Collateral Agent, the Holders and the other parties party thereto are parties to that certain Note Purchase Agreement, dated as of September 17, 2024 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the "<u>Existing Note Purchase Agreement</u>" and as amended by this First Amendment, the "<u>Note Purchase Agreement</u>"), pursuant to which the Holders purchased Notes from the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1. <u>Defined Terms</u>. Each capitalized term which is defined in the Note Purchase Agreement, but which is not defined in this First Amendment, shall have the meaning ascribed such term in the Note Purchase Agreement. Unless otherwise indicated, all section references in this First Amendment refer to sections of the Note Purchase Agreement.

Section 2. <u>Amendments to Existing Note Purchase Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Effective as of the First Amendment Effective Date (as defined below), the Existing Note Purchase Agreement is hereby amended to (i) delete the stricken text (indicated textually in the same manner as the following example: stricken text) and (ii) add the double-underlined text (indicated textually in the same manner as the following example: <u>double-underlined text</u>), in each case, as set forth in the pages of the Note Purchase Agreement attached as <u>Exhibit A</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Effective as of the First Amendment Effective Date (as defined below), Appendix A to the Existing Note Purchase Agreement is hereby amended and restated as set forth on Exhibit B attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Effective as of the First Amendment Effective Date (as defined below), Schedule 7.4 to the Existing Note Purchase Agreement is hereby amended and restated as set forth on Exhibit C attached hereto.

Section 3. <u>Conditions Precedent</u>. This First Amendment shall be deemed effective on the date (such date, the "<u>First Amendment Effective Date</u>") when each of the following conditions is satisfied (or waived in accordance with <u>Section 11.06</u> of the Note Purchase Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The Agents (or its counsel) shall have received (for prompt delivery to each of the Holders) from the Issuer and each other Holder a counterpart of this First Amendment and each other Note Document required to be executed on the First Amendment Effective Date signed on behalf of such party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The Agents and the Holders shall have received executed copies of the favorable written opinion of Weil Gotshal & Manges LLP, counsel for the Issuer and the Note Parties, dated the First Amendment Effective Date, and in form and substance reasonably satisfactory to the Agent and the Requisite Holders. The Issuer and Note Parties hereby instruct such counsel to deliver such legal opinion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Each Holder and Agents shall have received (i) sufficient copies of each Organizational Document of the Issuer, and of each other Note Party, certified as of a recent date by the appropriate Governmental Authority, for each Holder, each dated the First Amendment Effective Date or a recent date prior thereto; (ii) signature and incumbency certificates of the officers of the Issuer and of each other Note Party executing the Note Documents; (iii) resolutions of the Board of Directors, the manager(s) or member(s) or similar Governing Body of the Issuer and of each other Note Party approving and authorizing the execution, delivery and performance of this First Amendment, the other Note Documents to which it is a party, certified as of the First Amendment Effective Date by a Responsible Officer as being in full force and effect without modification or amendment; and (iv) a good standing certificate for the Issuer and each other Note Party from the applicable Governmental Authority in such Person's jurisdiction of incorporation, organization or formation and in each jurisdiction in which such Person is qualified as a foreign corporation or other entity to do business, each dated a recent date prior to the First Amendment Effective Date; *provided* that in lieu of the documents contemplated by the preceding clauses (i) and (ii), a Responsible Officer for the relevant Note Party may certify that there have been no changes to such documents since the Closing Date to the extent delivered on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Each of the Issuer, each other Note Party and their Subsidiaries shall have obtained all authorizations, consents and permits from any Governmental Authority and all consents of other Persons, in each case that are necessary or reasonably deemed by Agent and the Holders to be advisable in connection with the transactions contemplated herein (the "<u>Transactions</u>") and each of the foregoing shall be in full force and effect and in form and substance reasonably satisfactory to the Holders. All applicable waiting periods shall have expired without any action being taken or threatened by any competent authority that would restrain, prevent or otherwise impose adverse conditions on the Transactions and no action, request for stay, petition for review or rehearing, reconsideration, or appeal with respect to any of the foregoing shall be pending, and the time for any applicable agency to take action to set aside its consent on its own motion shall have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 The date of purchase of the First Amendment Additional Notes shall be a Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 The Agents and the Requisite Holders shall have received a reserve report prepared internally by the Issuer, dated as of January 29, 2025, evaluating the proved oil and gas reserves comprising the Acquired SJM Assets acquired pursuant to the Specified SJM Acquisition Agreement as of the First Amendment Effective Date (the "<u>First Amendment Reserve Report</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 In order to create in favor of the Collateral Agent, for the benefit of the Holders a valid, perfected first priority security interest in all personal property Collateral of the Note Parties, the Agents shall have received (a) the results of a recent search, by a Person satisfactory to the Requisite Holders, of all effective UCC financing statements made with respect to any personal or mixed property of the Issuer and each Note Party in the applicable jurisdictions, together with copies of all such filings disclosed by such search that will not be terminated on the Closing Date and (b) UCC termination statements for filing in all applicable jurisdictions as may be necessary to terminate any effective UCC financing statements disclosed in such search that do not constitute Liens permitted under <u>Section 7.03</u> of the Note Purchase Agreement or Excepted Liens.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 All fees and expenses required to be paid pursuant to (a) that certain Fee Letter dated as of the First Amendment Effective Date between the Issuer, EIG and the other parties named therein, (b) the Agent Fee Letter and (c) <u>Section 11.02</u> of the Note Purchase Agreement and invoiced at least two (2) Business Days before the First Amendment Effective Date (or such shorter period as may be reasonably agreed by the Issuer) shall have been paid in full in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 On the First Amendment Effective Date after giving effect to the Transactions, (a) no Default or Event of Default shall have occurred and be continuing, and (b) all representations and warranties made by the Note Parties contained herein or in the other Note Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the First Amendment Effective Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 No event or circumstance shall have occurred or be continuing since the Closing Date that has had, or would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 The Holders shall have received evidence satisfactory to them that as of the First Amendment Effective Date, the Note Parties shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) have entered into and thereafter maintain at all times one or more swap agreements for fair market value, with an approved counterparty in respect of commodities entered into not for speculative purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the First Amendment Effective Date, seventy-five percent (75%) of the reasonably anticipated projected production from the Acquired SJM Assets and oil and gas properties constituting proved developed producing reserves (as set forth in the First Amendment Reserve Report and the most recently delivered reserve report) of gas; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) have entered into and thereafter maintain at all times one or more swap agreements for fair market value, with an approved counterparty in respect of commodities entered into not for speculative purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the First Amendment Effective Date, fifty percent (50%) of the reasonably anticipated projected production from the Acquired SJM Assets and oil and gas properties constituting proved developed producing reserves (as set forth in the First Amendment Reserve Report and the most recently delivered reserve report) of Appalachia gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 As of the First Amendment Effective Date, the Issuer and its Restricted Subsidiaries shall have Unrestricted Cash in an amount equal to or greater than $4,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 On the First Amendment Effective Date, Agent shall have received a Solvency Certificate from a Financial Officer substantially in the form of <u>Exhibit E</u> of the Note Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 The Agent and the Holders shall have received a certificate from a Financial Officer of the Issuer dated as of the First Amendment Effective Date certifying (i) that attached thereto is a true and correct fully-executed copy of the Specified SJM Acquisition Agreement (including all amendments, exhibits and schedules thereto) and (ii) the Specified SJM Acquisition has been consummated in accordance with its terms substantially concurrently with the purchase of the Notes under this First Amendment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16 Agent shall have received a fully-executed Note Purchase Notice at least three (3) Business Days prior to the First Amendment Effective Date (or such earlier date as the Holders may agree in their sole discretion (by notice to the Agent).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17 Agent shall have received at least one (1) Business Day prior to the First Amendment Effective Date a "flow of funds", in form and substance reasonably satisfactory to the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18 The Issuer shall have delivered to Agent and the Holders a certificate of a Financial Officer of the Issuer certifying as to matters set forth in <u>Sections 3.4</u>, <u>3.10</u>, <u>3.11</u> and <u>3.13</u>.

The Agent (at the direction of the Requisite Holders) shall notify the Issuer and the Holders of the First Amendment Effective Date, and such notice shall be conclusive and binding.

For purposes of determining compliance with the conditions specified in this <u>Section 3</u>, each Holder and First Amendment Additional Note Holder that has signed this First Amendment shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to such Holder, unless the Agent shall have received written notice from such Holder prior to the First Amendment Effective Date specifying its objection thereto.

Section 4. <u>Post-Closing Covenant</u>. Within forty-five (45) days of the First Amendment Effective Date (or such later date with the consent of the Requisite Holders in their sole discretion), the Agents and the Holders shall have received (a) a Mortgage (or amendments to existing Mortgages) encumbering each Mortgaged Property in favor of the Collateral Agent, duly executed and acknowledged by each Note Party that is the owner of or holder of any interest in such Mortgaged Property, and otherwise in form for recording in the recording office of each applicable jurisdiction where each such Mortgaged Property is situated and that will, when properly recorded (or when the applicable financing statements related thereto are properly filed or such other actions needed to perfect are taken) created a valid, perfected first priority security interest (after giving effect to Excepted Liens identified in clauses (a) through (d), (f) and (i) of the definition thereof, but subject to the provisos at the end of such definition) on at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the First Amendment Reserve Report, (b) customary legal opinions of local counsel for the relevant Note Parties in the jurisdiction where such property is located and (c) title information (including usual and customary title opinions, title reports and landman certificates in the Issuer's possession or generated by the Issuer for the Agents and Requisite Holders) setting forth the status of title to at least 90% of PV-10 of the Oil and Gas Properties in the latest Reserve Report and the First Amendment Reserve Report, on a consolidated basis, consistent with usual and customary standards for the geographic regions in which such Oil and Gas Properties are located.

Section 5. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Confirmation</u>. The provisions of the Existing Note Purchase Agreement, as amended by this First Amendment, shall remain in full force and effect following the First Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Ratification and Affirmation; Representations and Warranties</u>. The Issuer hereby (a) acknowledges the terms of this First Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Note Document to which it is a party and agrees that each Note Document to which it is a party remains in full force and effect as expressly amended hereby; (c) agrees that from and after the First Amendment Effective Date each reference to the Note Purchase Agreement (including in the other Note Documents) shall be deemed to be a reference to the Existing Note Purchase Agreement, as amended by this First Amendment; and (d) represents and warrants to the Holders and the Agents that as of the date hereof after giving effect to this First Amendment: (i) all of the representations and warranties contained in each Note Document to which it is a party are true and correct

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in all material respects with the same effect as though such representations and warranties had been made on the First Amendment Effective Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates) and (ii) no Default or Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>No Novation</u>. This First Amendment does not extinguish the obligations for the payment of money outstanding under the Existing Note Purchase Agreement or discharge or release the obligations or the liens or priority of any mortgage, pledge, security agreement or any other security therefor. Nothing herein contained shall be construed as a substitution or novation of the obligations outstanding under the Existing Note Purchase Agreement or instruments securing the same, which shall remain in full force and effect, except as modified hereby or by instruments executed concurrently herewith. Nothing expressed or implied in this First Amendment shall be construed as a release or other discharge of the Note Parties from any of their obligations or liabilities under the Note Purchase Agreement or any of the other Note Documents. The Issuer hereby confirms and agrees that each Note Document to which it or its predecessor in interest is a party or to which it is a successor by operation of law is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that on and after the First Amendment Effective Date, all references in any such Note Document to "the Note Purchase Agreement", "thereto", "thereof", "thereunder" or words of like import referring to the Note Purchase Agreement shall mean the Note Purchase Agreement as amended by this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Counterparts</u>. This First Amendment may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this First Amendment by signing any such counterpart. Delivery of an executed counterpart of this First Amendment by fax or other electronic transmission (e.g., .pdf) shall be effective as delivery of a manually executed counterpart of this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Integration</u>. This First Amendment, the Note Purchase Agreement and the other Note Documents represent the final agreement between the parties with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Issuer, the Grantors, the Guarantors, either Agent nor any Holder relative to the subject matter hereof not expressly set forth or referred to herein or in the other Note Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>GOVERNING LAW</u>. THIS FIRST AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Payment of Expenses</u>. <u>Section 11.02</u> of the Note Purchase Agreement is hereby incorporated by reference, *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Severability</u>. In case any provision in or obligation hereunder or other Note Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>Successors and Assigns</u>. <u>Section 11.07(a)</u> of the Note Purchase Agreement is hereby incorporated by reference, *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <u>Note Document</u>. This First Amendment is a "Note Document" as defined and described in the Note Purchase Agreement, and all of the terms and provisions of the Note Purchase Agreement relating to Note Documents shall apply hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <u>Direction to the Agents.</u> (i) Pursuant to Sections 10.03 and 11.06 of the Existing Note Purchase Agreement, the undersigned Holders, which constitute all Holders under the Existing Note Purchase Agreement, by their signatures hereto, and (ii) each First Amendment Additional Note Holders, by their signatures hereto, hereby consent to this First Amendment and authorize and direct the Agents to execute and deliver this First Amendment and to perform their duties hereunder (this "Direction"). In entering into this First Amendment, and in taking (or refraining from) any actions under or pursuant to this Amendment, the Agents shall be protected by and shall enjoy all of the rights, immunities, privileges, protections and indemnities granted to it under the Note Purchase Agreement. Each of the undersigned Holders and First Amendment Additional Note Holders hereby certify that (i) it has the full power and authority to provide this Direction, (ii) this Direction has been duly executed and delivered by such Holder or First Amendment Additional Note Holder, as applicable, and this Direction constitutes a legal, valid and binding obligation of such Holder or First Amendment Additional Note Holder, as applicable, enforceable against the undersigned in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability and (iii) the Agents shall be entitled to rely on this Direction.

***[Signature Pages Follow]*** 

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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed effective as of the First Amendment Effective Date.

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| | |
|:---|:---|
| WHITEHAWK INCOME CORPORATION | WHITEHAWK INCOME CORPORATION |
| By: | /s/ Jeffrey Slotterback |
| Name: | Jeffrey Slotterback |
| Title: | Chief Financial Officer and Secretary |

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[*Signature Page to First Amendment*]

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| | | |
|:---|:---|:---|
| **AGENT:** | U.S. BANK TRUST COMPANY, NATIONAL<br> ASSOCIATION, as Agent | U.S. BANK TRUST COMPANY, NATIONAL<br> ASSOCIATION, as Agent |
|  | By: | /s/ James A. Hanley |
|  | Name: | James A. Hanley |
|  | Title: | Senior Vice President |

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[*Signature Page to First Amendment*]

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| | | |
|:---|:---|:---|
| **COLLATERAL AGENT:** | U.S. BANK TRUST COMPANY, NATIONAL<br> ASSOCIATION, as Collateral Agent | U.S. BANK TRUST COMPANY, NATIONAL<br> ASSOCIATION, as Collateral Agent |
|  | By: | /s/ Laurel Casasanta |
|  | Name: | Laurel Casasanta |
|  | Title: | Vice President |

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[*Signature Page to First Amendment*]

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| | |
|:---|:---|
| **PACIFIC INDEMNITY COMPANY**, as a Holder and<br> First Amendment Additional Note Holder | **PACIFIC INDEMNITY COMPANY**, as a Holder and<br> First Amendment Additional Note Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Jeannie Powers |
| Name: | Jeannie Powers |
| Title: | Managing Director |
| By: | /s/ William Rogers |
| Name: | William Rogers |
| Title: | Senior Vice President |

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| | |
|:---|:---|
| **EIG RIVER ENERGY PARTNERS L.P.**, as a<br> Holder and First Amendment Additional Note Holder | **EIG RIVER ENERGY PARTNERS L.P.**, as a<br> Holder and First Amendment Additional Note Holder |
| By: EIG Management Company, LLC, its manager | By: EIG Management Company, LLC, its manager |
| By: | /s/ Jeannie Powers |
| Name: | Jeannie Powers |
| Title: | Managing Director |
| By: | /s/ Williams Rogers |
| Name: | Williams Rogers |
| Title: | Senior Vice President |

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| | |
|:---|:---|
| **EIG UPSTREAM PARTNERS, L.P.**, as a Holder and<br> First Amendment Additional Note Holder | **EIG UPSTREAM PARTNERS, L.P.**, as a Holder and<br> First Amendment Additional Note Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Jeannie Powers |
| Name: | Jeannie Powers |
| Title: | Managing Director |
| By: | /s/ William Rogers |
| Name: | William Rogers |
| Title: | Senior Vice President |

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[*Signature Page to First Amendment*]

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| | |
|:---|:---|
| **EIG BANDELIER PARTNERS, L.P.**, as a Holder and First Amendment Additional Note Holder | **EIG BANDELIER PARTNERS, L.P.**, as a Holder and First Amendment Additional Note Holder |
| By: EIG Management Company, LLC, its manager | By: EIG Management Company, LLC, its manager |
| By: | /s/ Jeannie Powers |
| Name: | Jeannie Powers |
| Title: | Managing Director |
| By: | /s/ William Rogers |
| Name: | William Rogers |
| Title: | Senior Vice President |

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| | |
|:---|:---|
| **CARDINAL ENERGY LP**, as a First Amendment<br> Additional Note Holder | **CARDINAL ENERGY LP**, as a First Amendment<br> Additional Note Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Jeannie Powers |
| Name: | Jeannie Powers |
| Title: | Managing Director |
| By: | /s/ William Rogers |
| Name: | William Rogers |
| Title: | Senior Vice President |

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| | |
|:---|:---|
| **EIG SUNSUPER II BLOCKER, LLC**, as a<br> First Amendment Additional Note Holder | **EIG SUNSUPER II BLOCKER, LLC**, as a<br> First Amendment Additional Note Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Jeannie Powers |
| Name: | Jeannie Powers |
| Title: | Managing Director |
| By: | /s/ William Rogers |
| Name: | William Rogers |
| Title: | Senior Vice President |

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[*Signature Page to First Amendment*]

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**<u>Exhibit A</u>** 

[Attached.]

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***EXECUTION VERSION*** 

**WHITEHAWK INCOME CORPORATION** 

<u>SENIOR SECURED FIRST LIEN NOTES DUE</u> <u>2029</u><u>2030</u>

**$65,000,000<u>151,000,000</u> NOTE PURCHASE AGREEMENT** 

**DATED AS OF SEPTEMBER 17, 2024**

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**<u>**TABLE OF CONTENTS**</u>** 

Article I

DEFINITIONS AND INTERPRETATION

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| | | |
|:---|:---|:---|
| **Section 1.01.** | Terms Defined Above | 1 |
| **Section 1.02.** | Definitions | 1 |
| **Section 1.03.** | Accounting Terms | 39 |
| **Section 1.04.** | Interpretation, etc. | 39 |
| **Section 1.05.** | Calculations of Total PDP PV-10 Value | 41 |
| **Section 1.06.** | Free Cash Flow Distributions and Prepayments Spreadsheet | 43 |
|  | Article II |  |
|  | PURCHASE AND SALE OF NOTES |  |
| **Section 2.01.** | Note Purchase | 43 |
| **Section 2.02.** | The Notes; Purchases, Conversions and Continuations of Notes | 43 |
| **Section 2.03.** | Requests for Notes | 44 |
| **Section 2.04.** | Use of Proceeds | 44 |
| **Section 2.05.** | Evidence of Debt; Register; Holders' Books and Records; Notes | 44 |
| **Section 2.06.** | Interest; Fees | 45 |
| **Section 2.07.** | Repayment of Notes | 46 |
| **Section 2.08.** | Voluntary Prepayments | 46 |
| **Section 2.09.** | Mandatory Prepayments | 46 |
| **Section 2.10.** | Application of Payments | 50 |
| **Section 2.11.** | General Provisions Regarding Payments | 50 |
| **Section 2.12.** | Ratable Sharing | 51 |
| **Section 2.13.** | Increased Costs | 52 |
| **Section 2.14.** | Taxes; Withholding, etc. | 53 |
| **Section 2.15.** | Alternate Rate of Interest | 56 |
| **Section 2.16.** | Incremental Notes. | 58 |
|  | Article III |  |
|  | CONDITIONS PRECEDENT |  |
| **Section 3.01.** | Closing Date | 59 |
|  | Article IV |  |
|  | REPRESENTATIONS AND WARRANTIES |  |
| **Section 4.01.** | Organization; Powers | 63 |
| **Section 4.02.** | Authority; Enforceability | 63 |
| **Section 4.03.** | Approvals; No Conflicts | 63 |
| **Section 4.04.** | Financial Condition; No Material Adverse Effect | 64 |
| **Section 4.05.** | Litigation | 64 |
| **Section 4.06.** | Environmental Matters | 64 |
| **Section 4.07.** | Compliance with Laws and Agreements; No Defaults, Event of Default | 66 |
| **Section 4.08.** | Investment Company Act | 66 |
| **Section 4.09.** | Taxes | 66 |
| **Section 4.10.** | ERISA | 66 |
| **Section 4.11.** | Disclosure; No Material Misstatements | 67 |
| **Section 4.12.** | Insurance | 67 |

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| | | |
|:---|:---|:---|
| **Section 4.13.** | Subsidiaries; Foreign Operations | 68 |
| **Section 4.14.** | Properties; Titles, Etc. | 68 |
| **Section 4.15.** | [Reserved] | 69 |
| **Section 4.16.** | No Operations. | 69 |
| **Section 4.17.** | [Reserved] | 69 |
| **Section 4.18.** | Swap Agreements and Qualified ECP Guarantor | 69 |
| **Section 4.19.** | Use of Proceeds | 69 |
| **Section 4.20.** | Solvency | 70 |
| **Section 4.21.** | Anti-Corruption Laws, Sanctions and USA PATRIOT Act | 70 |
| **Section 4.22.** | Affected Financial Institutions | 70 |
| **Section 4.23.** | Collateral Documents | 70 |
| **Section 4.24.** | Senior Debt | 70 |
| **Section 4.25.** | Private Offering | 70 |
|  | Article V |  |
|  | REPRESENTATIONS OF HOLDERS |  |
| **Section 5.01.** | Organization and Standing | 71 |
| **Section 5.02.** | Authorization; Enforceability | 71 |
| **Section 5.03.** | Investment | 71 |
| **Section 5.04.** | Accredited Investor | 71 |
| **Section 5.05.** | No Resale or Repurchase | 71 |
| **Section 5.06.** | Private Placement | 71 |
| **Section 5.07.** | Knowledge and Experience | 71 |
| **Section 5.08.** | No Materials | 72 |
| **Section 5.09.** | Transfer Restrictions | 72 |
| **Section 5.10.** | Offers and Sales Only in Certain Circumstances | 72 |
| **Section 5.11.** | Subsequent Purchaser Notification | 72 |
|  | Article VI |  |
|  | AFFIRMATIVE COVENANTS |  |
| **Section 6.01.** | Financial Statements; Other Information | 73 |
| **Section 6.02.** | Notices of Material Events | 77 |
| **Section 6.03.** | Existence; Conduct of Business | 78 |
| **Section 6.04.** | Payment of Taxes | 78 |
| **Section 6.05.** | [Reserved] | 78 |
| **Section 6.06.** | Insurance | 78 |
| **Section 6.07.** | Books and Records; Inspection Rights | 79 |
| **Section 6.08.** | Compliance with Laws | 79 |
| **Section 6.09.** | Environmental Matters | 79 |
| **Section 6.10.** | Further Assurances | 80 |
| **Section 6.11.** | Reserve Reports | 81 |
| **Section 6.12.** | Title Information | 81 |
| **Section 6.13.** | Collateral and Guaranty Agreements | 82 |
| **Section 6.14.** | ERISA Compliance | 84 |
| **Section 6.15.** | Commodity Exchange Act Keepwell Provisions | 84 |
| **Section 6.16.** | Deposit Accounts and Securities Accounts | 84 |
| **Section 6.17.** | Use of Proceeds | 84 |
| **Section 6.18.** | Swap Agreements | 85 |
| **Section 6.19.** | Post-Closing Covenant | 85 |

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Article VII

NEGATIVE COVENANTS

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| | | |
|:---|:---|:---|
| **Section 7.01.** | Financial Covenants | 86 |
| **Section 7.02.** | Debt | 88 |
| **Section 7.03.** | Liens | 88 |
| **Section 7.04.** | Dividends and Distributions | 89 |
| **Section 7.05.** | Investments and Advances | 91 |
| **Section 7.06.** | Nature of Business; Wholly-Owned Subsidiaries; No International Operations | 92 |
| **Section 7.07.** | ERISA Compliance | 92 |
| **Section 7.08.** | Mergers, Etc. | 93 |
| **Section 7.09.** | Sale of Properties and Termination of Swap Agreements | 93 |
| **Section 7.10.** | Transactions with Affiliates | 94 |
| **Section 7.11.** | Subsidiaries | 94 |
| **Section 7.12.** | Negative Pledge Agreements; Dividend Restrictions | 95 |
| **Section 7.13.** | Swap Agreements | 95 |
| **Section 7.14.** | Designation and Conversion of Restricted and Unrestricted Subsidiaries | 96 |
| **Section 7.15.** | Organizational Documents | 97 |
| **Section 7.16.** | Changes in Fiscal Year | 97 |
| **Section 7.17.** | Amendments to Material Agreements | 97 |
| **Section 7.18.** | General and Administrative Costs | 97 |
|  | **Article VIII** |  |
|  | **PASSIVE HOLDING COMPANY STATUS OF THE ISSUER** |  |
|  | Article IX |  |
|  | EVENTS OF DEFAULT; REMEDIES |  |
| **Section 9.01.** | Events of Default | 98 |
| **Section 9.02.** | Treatment of Make-Whole Amount and Prepayment Fee | 100 |
| **Section 9.03.** | Application of Funds | 101 |
| **Section 9.04.** | Credit Bidding | 102 |
|  | Article X |  |
|  | AGENTs |  |
| **Section 10.01.** | Appointment of Agents | 103 |
| **Section 10.02.** | Powers and Duties | 104 |
| **Section 10.03.** | General Immunity | 104 |
| **Section 10.04.** | Holders' Representations, Warranties and Acknowledgment | 107 |
| **Section 10.05.** | Successor Agents | 108 |
| **Section 10.06.** | Delegation of Duties | 109 |
| **Section 10.07.** | Collateral Documents | 109 |
| **Section 10.08.** | Posting of Approved Electronic Communications | 110 |
| **Section 10.09.** | Proofs of Claim | 110 |
| **Section 10.10.** | Hedge Intercreditor Agreement | 111 |
| **Section 10.11.** | Indemnification | 111 |

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Article XI

MISCELLANEOUS

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| | | |
|:---|:---|:---|
| **Section 11.01.** | Notices | 112.0 |
| **Section 11.02.** | Expenses | 112.0 |
| **Section 11.03.** | Indemnity; Limitation of Liability | 113.0 |
| **Section 11.04.** | Set Off | 114.0 |
| **Section 11.05.** | [Reserved] | 114.0 |
| **Section 11.06.** | Amendments and Waivers | 114.0 |
| **Section 11.07.** | Successors and Assigns; Assignments | 116.0 |
| **Section 11.08.** | Survival of Representations, Warranties and Agreements | 118.0 |
| **Section 11.09.** | No Waiver; Remedies Cumulative | 119.0 |
| **Section 11.10.** | Marshalling; Payments Set Aside | 119.0 |
| **Section 11.11.** | Severability | 119.0 |
| **Section 11.12.** | Obligations Several; Independent Nature of Holders' Rights | 119.0 |
| **Section 11.13.** | Tax Treatment | 119.0 |
| **Section 11.14.** | Headings | 120.0 |
| **Section 11.15.** | APPLICABLE LAW | 120.0 |
| **Section 11.16.** | CONSENT TO JURISDICTION | 120.0 |
| **Section 11.17.** | WAIVER OF JURY TRIAL | 120.0 |
| **Section 11.18.** | Confidentiality | 121.0 |
| **Section 11.19.** | Usury Savings Clause | 122.0 |
| **Section 11.20.** | Counterparts | 122.0 |
| **Section 11.21.** | USA PATRIOT Act | 122.0 |
| **Section 11.22.** | Disclosure | 122.0 |
| **Section 11.23.** | Appointment for Perfection | 122.0 |
| **Section 11.24.** | Advertising and Publicity | 123.0 |
| **Section 11.25.** | Acknowledgments and Admissions | 123.0 |
| **Section 11.26.** | Third Party Beneficiaries | 124.0 |
| **Section 11.27.** | Entire Agreement | 124.0 |
| **Section 11.28.** | Transferability of Securities; Restrictive Legend | 124.0 |
| **Section 11.29.** | Replacement of Notes | 124.0 |
| **Section 11.30.** | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 125.0 |
| **Section 11.31.** | Hedge Intercreditor Agreement | 125.0 |

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| | | |
|:---|:---|:---|
| **APPENDICES:** | A | Commitments |
|  | B | Notice Addresses |
|  | C | Free Cash Flow Distributions and Prepayments |
|  | D | Free Cash Flow Distributions and Prepayments Spreadsheet |
| **SCHEDULES:** | 1.02(a) | Guarantors |
|  | 1.02(b) | Material Contracts |
|  | 4.13 | Subsidiaries |
|  | 4.18 | Swap Agreements |
|  | 7.04 | Permitted Restricted Payments |
|  | 7.05 | Existing Investments |
|  | 11.18 | Compliance Personnel |
| **EXHIBITS:** | A | Form of Note Purchase Notice |
|  | B-1 | Form of Note |
|  | B-2 | Form of Incremental Note |
|  | C | Form of Closing Date Certificate |
|  | D | Form of Compliance Certificate |
|  | E | Form of Solvency Certificate |
|  | F | Form of Guaranty Agreement |
|  | G | Form of Pledge and Security Agreement |
|  | H | Form of Assignment Agreement |
|  | I-1-4 | Form of U.S. Tax Compliance Certificate |
|  | J | Form of Reserve Report Certificate |
|  | K | Form of Free Cash Flow Utilization Certificate |
|  | L | Form of Mortgage |

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**WHITEHAWK INCOME CORPORATION** 

This **NOTE PURCHASE AGREEMENT**, dated as of September 17, 2024 (together with any amendments, restatements, amendments and restatements, supplements or other modifications hereto, the "**Agreement**"), is entered into by and among **WHITEHAWK INCOME CORPORATION**, a Delaware corporation (the "**Issuer**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pacific Indemnity Company, as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG River Energy Partners, L.P., as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG Upstream Partners, L.P., as Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG Bandelier Partners, L.P., as a Holder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Cardinal Energy LP, as a Holder</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>EIG Sunsuper II Blocker, LLC, as a Holder; and</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. Bank Trust Company, National Association, as agent (in such capacity, the "**Agent**") and
collateral agent for the Holders and the Secured Hedge Providers (in such capacity, the "**Collateral Agent** ").

**W I T N E S E T H:** 

In consideration of the mutual covenants and agreements contained herein and the Notes to be purchased by Holders, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**ARTICLE I** 

**DEFINITIONS AND INTERPRETATION** 

**Section 1.01**. <u>Terms Defined Above</u>. As used in this Agreement, each term defined above has the meaning indicated above.

**Section 1.02**.<u> </u><u>Definitions</u>. The following terms used herein, including in the preamble, recitals, exhibits and schedules hereto, shall have the following meanings:

"**ABR**" means, for any day, a rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day <u>plus</u> <sup>1</sup>⁄<sub>2</sub> of 1% (or if such day is not a Business Day, the immediately preceding Business Day) and (c) if available, the Adjusted Term SOFR Rate as determined two (2) U.S. Government Securities Business Days prior to such day (or if such day is not a Business Day, the immediately preceding Business Day); <u>provided</u> that for the purpose of this definition, the Adjusted Term SOFR Rate for any day shall be based on the Term SOFR Reference Rate at approximately 12:00 p.m., New York time on such day (or any amended publication time for the Term SOFR Reference Rate, as specified by the CME Term SOFR Administrator in the Term SOFR Reference Rate methodology). Any change in the ABR due to a change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR Rate shall be effective as of the opening of business on the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR Rate, respectively. For the avoidance of doubt, if the ABR shall be less than

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3.50<u>3.75</u> %, such rate shall be deemed to be 3.50<u>3.75</u>% for purposes of this Agreement. In the event the Agent on any interest determination date is required, but unable, to determine a benchmark rate in accordance with at least of the procedures described above, ABR will be the Adjusted Term SOFR Rate as determined on the previous interest determination date.

"**ABR Note**" means Notes the rate of interest applicable to which is based upon the ABR. For the avoidance of doubt, Notes shall constitute ABR Notes only as set forth in <u>Section 2.15(a)</u> or as otherwise expressly set forth herein.

"**Accepting Holder**" as defined in <u>Section 2.09(g)</u>.

"**Acquired Assets**" means the Assets acquired pursuant to the Specified Acquisition Agreement.

"**Acquired Assets Reserve Report**" means that certain reserve report prepared by Encore Analytics, LLC in respect of the Acquired Assets of the Issuer, with an as of date of August 1, 2024.

<u>"**Acquired SJM Assets**" means the Assets (as defined in the Specified SJM Acquisition</u> [GRAPHIC APPEARS HERE] <u>Agreement) acquired pursuant to the Specified SJM Acquisition Agreement.</u>

**"Adjusted Cash Flow from Operating Activities"**means, for any period, (a) Cash Flow from Operating Activities <u>minus</u> (b) to the extent included in Cash Flow From Operating Activities, any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries for such period, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments.

"**Administrative Services Agreement**" means that certain Administrative Services Agreement, dated as of March 1, 2022, between, the Issuer and WhiteHawk Management, LLC.

"**Adjusted Term SOFR Rate**" means an interest rate *per annum* equal to the Term SOFR Rate; <u>provided</u> that if the Adjusted Term SOFR Rate as so determined would be less than 2.50<u>2.75</u>%, such rate shall be deemed to be 2.50<u>2.75</u>% for the purposes of this Agreement.

"**Affected Financial Institution**" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"**Affiliate**" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified; <u>provided</u> that any Person that directly owns or holds twenty percent (20%) or more of any class of Equity Interests with voting power in such specified Person shall be deemed to be an Affiliate.

"**Affiliated Investor**" means any Person to the extent it owns or holds, directly or indirectly, or its Affiliate (other than the Issuer or any of its Subsidiaries) owns or holds, directly or indirectly, any Equity Interests of the Issuer or any of its Subsidiaries.

"**Agent**" as defined in the preamble hereto.

"**Agents**" means the Agent and the Collateral Agent.

"**Agent Fee Letter**" means that certain Fee Letter dated as of the Closing Date between the Issuer and the Agent.

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"**Agent's Account**" means an account designated by Agent from time to time as the account into which Note Parties shall make all payments to Agent for the benefit of the Agent and the Holders under this Agreement and the other Note Documents.

"**Agent's Office**" means the "Agent's Office" as set forth on <u>Appendix B</u> or such other office as Agent may from time to time designate in writing to the Issuer and each Holder.

"**Aggregate Amounts Due**" as defined in <u>Section 2.12</u>.

"**Agreement**" as defined in the preamble.

"**Alternate Offer**" as defined in <u>Section 2.09(h)(iii)</u>.

"**Anti-Corruption Laws**" means all laws, rules, and regulations of any jurisdiction applicable to the Issuer or any of its Restricted Subsidiaries from time to time concerning or relating to bribery or corruption, including the FCPA.

"**Appalachia Gas**" means the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves of gas located within the States of Pennsylvania, Ohio and West Virginia.

"**Applicable Margin**" means, (a) with respect to any Note (other than an ABR Note), a rate per annum equal to the Adjusted Term SOFR Rate <u>plus</u> 6.00<u>6.25</u>% and (b) with respect to any ABR Note, a rate per annum equal to ABR <u>plus</u> 5.00<u>5.25</u>%.

"**Applicable Office**" means the office through which a Holder's investment in any Note is made.

"**Approved Counterparty**" means (a) Citadel Energy Marketing LLC or (b) any other Person who, at the time of entering into a Swap Agreement, has a long term senior unsecured debt rating (or whose guaranteeing credit support provider has a long term senior unsecured debt rating) of A-/A3 by S&P or Moody's (or their equivalent) or higher.

"**Approved Petroleum Engineers**" means (a) Netherland, Sewell & Associates, Inc., (b) Ryder Scott Company, L.P., (c) Schaper Energy Consulting LLC and (d) any other nationally recognized independent petroleum engineering firms selected by the Issuer and reasonably acceptable to the Requisite Holders.

"**Asset Coverage Ratio**" means, with respect to any date of determination, the ratio of (a) the Total PDP PV-10 Value as of such date of determination to (b) the Total Net Debt as of such date of determination.

"**Asset Sale**" means a sale, lease or sublease (as lessor or sublessor), sale and leaseback, assignment, conveyance, license, transfer or other disposition to, or any exchange of property with, any Person, in one transaction or a series of related transactions, of all or any part of any Person's businesses, assets or properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, including the Equity Interest owned by such Person (in each case of the foregoing, excluding any Casualty Event).

"**Assignment Agreement**" means an Assignment and Assumption Agreement substantially in form of <u>Exhibit H</u> or such other form reasonably acceptable to the Agent (at the direction of the Requisite Holders).

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"**AUM Fee**" means the monthly asset management fee in an amount equal to 1.50% of the Issuer's total assets, payable by the Issuer to WhiteHawk Management, LLC, pursuant to Section 4(a) of the Investment Management Agreement.

"**Bail-In Action**" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"**Bail-In Legislation**" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"**Beneficial Ownership Certification**" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

"**Beneficial Ownership Regulation**" means 31 C.F.R. § 1010.230.

"**Bloomberg**" has the meaning set forth in the definition of "**Reinvestment Yield**".

"**Board**" means the Board of Governors of the Federal Reserve System of the United States of America or any successor Governmental Authority.

"**Board of Directors**" means (a) with respect to a corporation, the board of directors of the corporation or any committee thereof duly authorized to act on behalf of such board; (b) with respect to a partnership, the board of directors of the general partner of the partnership; (c) with respect to a limited liability company, the manager, managers, managing member or members or any controlling committee of managing members thereof; and (d) with respect to any other Person, the board or committee of such Person serving a similar function.

"**Business Day**" means any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the States of New York or Texas or is a day on which banking institutions located in either of such states are authorized or required by law or other governmental action to close.

"**Called Principal**" means, with respect to any Note, the amount of principal of such Note that is to be prepaid pursuant to <u>Section 2.08</u>, <u>Section 2.09(c)</u>, or <u>Section 2.09(d)</u> or has become or is declared to be immediately due and payable pursuant to <u>Section 9.01</u>, as the context requires.

"**Cash Equivalents**" means (a) securities issued or fully guaranteed or insured by the United States Government or any agency thereof and backed by the full faith and credit of the United States having maturities of not more than twelve (12) months from the date of acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits, or bankers' acceptances having in each case a tenor of not more than twelve (12) months from the date of acquisition issued by any Holder or any U.S. commercial bank or any branch or agency of a non-U.S. commercial bank licensed to conduct business in the U.S. having combined capital and surplus of not less than $500,000,000 and having a short term deposit rating of no lower than A2 or P2, as such rating is set forth from time to time by S&P or Moody's, respectively; (c) commercial paper of an issuer rated at least A-1 by S&P or P-1 by Moody's at the time of acquisition, and in either case having a tenor of not more than twelve (12) months;

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(d) repurchase obligations with a term of not more than one-hundred eighty (180) days for underlying securities of the types described in <u>clauses (a)</u> and <u>(b)</u> entered into with any financial institution or recognized securities dealer meeting the qualifications specified in <u>clause (b)</u> above; and <u>(e)</u> deposits in money market funds and investments investing exclusively in investments described in <u>clauses (a)</u>, <u>(b)</u>, <u>(c)</u> and <u>(d)</u> above.

"**Cash Flow From Operating Activities**" means, for any period, the cash generated from the normal business operations of the Issuer and its Restricted Subsidiaries for such period, determined in a manner consistent with (a) the Issuer's past practice and (b)(i) the line item "Net Cash Flow, Total" contained in the Issuer's precedent lease operating statements (file name "WhiteHawk LOS through May 2024 (August 2024).xlsx") delivered by the Issuer to EIG on or prior to the Closing Date, incorporating the revenue and expenses from ongoing operations of the Issuer and its Restricted Subsidiaries including from Oil and Gas Properties and Swap Agreements, <u>minus</u> (ii) General and Administrative Costs of the Issuer and its Restricted Subsidiaries for such period, and <u>minus</u> (iii) Consolidated Interest Expense of the Issuer and its Restricted Subsidiaries for such period.

"**Casualty Event**" means any loss, casualty or other insured damage to, or any nationalization, taking under power of eminent domain or by condemnation or similar proceeding of, any Property of the Issuer or any of its Restricted Subsidiaries.

"**CERCLA**" has the meaning set forth in the definition of "Environmental Laws".

"**Change in Control**" means the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any "person" or "group" (within the meaning of Section 13(d) or 14(d) of the Exchange Act), shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of a percentage of the total voting or economic power of all classes of capital stock of the Issuer entitled to vote generally in the election of directors, of fifty percent (50%) or more on a fully diluted basis,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the occupation of a majority of the seats (other than vacant seats) on the board of directors of the Issuer by Persons who were neither (i) directors of Issuer on the Closing Date, (ii) nominated nor approved by the board of directors of Issuer nor (iii) appointed by WhiteHawk Management LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) WhiteHawk Management LLC shall cease to be one hundred percent (100%) owned and controlled, of record and beneficially, by WhiteHawk Minerals LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) WhiteHawk Minerals LLC shall cease to be owned and controlled, of record and beneficially, fifty-one percent (51%) or more by WhiteHawk Energy LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) WhiteHawk Management LLC shall cease to Control the Issuer, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a "Change in Control" (or equivalent term as defined in any other instrument governing Material Debt) or any functionally equivalent concept under any other instrument governing Material Debt shall have occurred.

"**Closing Date**" means the date on which all of the conditions precedent set forth in <u>Section 3.01</u> have been satisfied or waived.

"**Closing Date Certificate**" means a Closing Date Certificate substantially in the form of <u>Exhibit C</u>.

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"**CME Term SOFR Administrator**" means CME Group Benchmark Administration Limited as administrator of the forward-looking term Secured Overnight Financing Rate (SOFR) (or a successor administrator).

"**Code**" means Title 11 of the United States Code entitled "Bankruptcy," as now and hereafter in effect, or any successor statute.

"**Collateral Agent**" as defined in the preamble hereto.

"**Collateral Coverage Minimum**" as defined in <u>Section 6.13(a)</u>.

"**Collateral Documents**" means Guaranty Agreement, the Pledge and Security Agreement, the Mortgages, the Control Agreements, the Hedge Intercreditor Agreement and all other instruments, documents and agreements executed by any Note Party in connection with this Agreement or any of the other Note Documents that are intended to create, perfect or evidence Liens to secure the Obligations, including, without limitation, all other security agreements, account control agreements, pledge agreements, mortgages, deeds of trust, guarantees, subordination agreements, pledges, powers of attorney and assignments now, or hereafter executed by any Note Party and delivered to the Collateral Agent to secure the Obligations, as such agreements may be amended, restated, amended and restated, modified, supplemented or restated from time to time.

"**Commitment**" means, as to each Holder, its obligation to purchase a Note from the Issuer pursuant to <u>Section 2.01(a)</u> in an aggregate amount not to exceed the amount set forth opposite such Holder's name in <u>Appendix A</u> under the caption "Commitment." The aggregate amount of the Commitments is $65,000,000<u>151,000,000</u> .

"**Commitments**" means such commitments of all Holders in the aggregate.

"**Commodity Account**" means any "commodity account" as defined in the UCC.

"**Commodity Exchange Act**" means the Commodity Exchange Act (7 U.S.C. § 1 *et seq.*), as amended from time to time, and any successor statute, and any regulations promulgated thereunder.

"**Communications**" as defined in <u>Section 10.08(a)</u>.

"**Compliance Certificate**" means a Compliance Certificate substantially in the form of <u>Exhibit D</u>.

"**Confidential Information**" as defined in <u>Section 11.18</u>.

"**<u>Connection Income Tax</u>**" means Taxes described in (b) of the definition of Tax on the Overall Net Income that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"**Consolidated Interest Expense**" means, for any period, the sum (determined without duplication) of the aggregate gross interest expense of the Note Parties and their Consolidated Restricted Subsidiaries for such period. For purposes of the foregoing, gross interest expense shall be determined after giving effect to any net payments made or received by the Note Parties with respect to interest rate Swap Agreements.

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"**Consolidated Net Income**" means with respect to the Issuer and the Consolidated Restricted Subsidiaries, for any period, the aggregate of the net income (or loss) of the Issuer and the Consolidated Restricted Subsidiaries for such period determined on a consolidated basis in accordance with GAAP; <u>provided</u> that there shall be excluded, without duplication, from such net income (to the extent otherwise included therein) the following: (a) the net income of (i) any Unrestricted Subsidiary and (ii) any Person in which the Issuer or any Consolidated Restricted Subsidiary has an interest (which interest does not cause the net income of such other Person to be consolidated with the net income of the Issuer and the Consolidated Restricted Subsidiaries in accordance with GAAP), except in the case of the foregoing clauses <u>(i)</u> and <u>(ii)</u> to the extent of the amount of dividends or distributions actually paid in cash during such period by such Unrestricted Subsidiary or other Person, as the case may be, to the Issuer or to a Consolidated Restricted Subsidiary, as the case may be, from cash generated by such Person; (b) the net income (but not loss) during such period of any Consolidated Restricted Subsidiary to the extent that the declaration or payment of dividends or similar distributions or transfers or loans by that Consolidated Restricted Subsidiary is not at the time permitted by operation of the terms of its charter or any agreement, instrument or Governmental Requirement applicable to such Consolidated Restricted Subsidiary or is otherwise restricted or prohibited, in each case determined in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the net income (or loss) of any Person accrued prior to the date it becomes a Consolidated Restricted Subsidiary or is merged into or consolidated with the Issuer or any of its Consolidated Restricted Subsidiaries; (d) the cumulative effect of a change in accounting principles during such period to the extent included in Consolidated Net Income; (e) any net after tax effect on income (or loss) for such period attributable to the early extinguishment, cancellation, termination or unwinding of any Debt or Swap Agreement; (f) any unrealized income (or loss) for such period attributable to hedging obligations or other derivative instruments; (g) accruals and reserves established or adjusted, or other charges required as a result of, the adoption or modification of accounting policies during such period; (h) any gains or losses attributable to writeups or writedowns of assets; and (i) any non-cash gains or losses (including any positive or negative adjustments under FASB ASC 815 as a result of changes in the fair market value of derivatives).

"**Consolidated Restricted Subsidiaries**" means any Restricted Subsidiaries that are Consolidated Subsidiaries.

"**Consolidated Subsidiaries**" means each Subsidiary of the Issuer (whether now existing or hereafter created or acquired) the financial statements of which shall be (or should have been) consolidated with the financial statements of the Issuer in accordance with GAAP.

"**Consolidated Total Net Leverage Ratio**" means, as of the last day of any fiscal quarter or "Applicable Distribution Period", as applicable, the ratio of Total Net Debt as of such date of determination to EBITDA for the Rolling Period or "Applicable Distribution Period", as applicable, then ending.

"**Consolidation**" as defined in <u>Section 7.08</u>.

"**Control**" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and "Controlled" have meanings correlative thereto.

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"**Control Agreement**" means a control agreement, in form and substance reasonably satisfactory to the Collateral Agent and the Requisite Holders, entered into with the Collateral Agent and the bank or securities intermediary at which any Deposit Account, Commodity Account or Securities Account is maintained by any Note Party in accordance with <u>Section 6.16</u>.

"**Cure Amount**" as defined in <u>Section 7.01(c)</u>.

"**Cure Period**" as defined in <u>Section 7.01(c)</u>.

"**Declining Holder**" as defined in <u>Section 2.09(g)</u>.

"**Default**" means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

"**Default Rate**" means any interest payable pursuant to <u>Section 2.06(c)</u>.

"**Deposit Account**" means any "deposit account" as defined in the UCC.

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"**Discounted Value**" means, with respect to the Called Principal of any Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

"**Disqualified Capital Stock**" means any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event, matures or is mandatorily redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock), pursuant to a sinking fund obligation or otherwise, or is convertible or exchangeable for Debt or redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock) at the option of the holder thereof, in whole or in part, on or prior to the date that is ninety-one (91) days (or, if issued to an insider, three hundred sixty-six (366) days) after the Maturity Date.

"**Distributable Free Cash Flow**" means, as of any time of determination for a calendar month set forth under the heading "Distribution Month" in <u>Appendix C</u>, (a) an amount equal to Free Cash Flow (Forward) for such "Applicable CF Period", <u>minus</u> (b) the aggregate amount of Restricted Payments made during the then current period set forth under the heading "Applicable Distribution Period" in Appendix C prior to and at such time of determination under <u>Section 7.04(c)</u>, <u>minus</u> (c) the aggregate amount of Investments made during the then current Applicable Distribution Period prior to and at such time of determination pursuant to <u>Section 7.05(h)</u> (each such use under <u>clause (b)</u> and/or <u>clause (c)</u>, a "**Free Cash Flow Utilization**").

"**Distribution Period A**" means the period commencing on the Closing<u>First Amendment Effective</u> Date and ending on March<u>December</u> 31, 2025.

"**Distribution Period B**" means the period commencing on April<u>January</u> 1, 2025<u>2026</u> and ending on March 31<u>June 30</u>, 2026<u>2027</u>.

"**Distribution Period C**" means the period commencing on April<u>July</u> 1, 2026<u>2027</u> and continuing thereafter.

"**Distribution PF Basis**" means, (a) as to the calculation of the Consolidated Total Net Leverage Ratio, the Asset Coverage Ratio and Liquidity in connection with a Restricted Payment made pursuant to <u>Section 7.04(c)</u> and/or Investment made pursuant to <u>Section 7. 05(h)</u>, such calculation will be made (i) on a pro forma basis, including giving pro forma effect (A) to the Restricted Payment and/or Distribution as if such Restricted Payment and/or Distribution occurred immediately prior to such date of determination and (B) to the extent a "CF Sweep Date" occurs during "Applicable CF Period", any prepayment of the Notes pursuant to <u>Section 2. 09(a)</u> and (ii) as of (including utilizing Total Net Debt as of) the last Business Day prior to the date of such calculation and (b) as to the calculation of Liquidity in connection with <u>Section 2.09(a)</u>, such calculation will be made (i) on a pro forma basis, including giving pro forma effect to any prepayment of the Notes pursuant to <u>Section 2.09(a)</u> and (ii) as of the last Business Day prior to the date of such calculation. Pro forma calculations made pursuant to the definition of the term "Distribution PF Basis" shall be determined in good faith by a Responsible Officer of the Issuer and with supporting documentation reasonably acceptable to the Requisite Holders and with respect to the Asset Coverage Ratio, made in accordance with <u>Section 1.05</u> and <u>Section 6.01(u)</u>.

"**Dividend Incentive Fee**" means (a) the 12.50% fee of all distributions, including all Dividends (as defined in the Offering Memorandum (as defined in the Investment Management Agreement)) and Dividend Incentive Fees, earned and/or paid out by the Issuer to WhiteHawk Management, LLC during a calendar month pursuant to <u>Section 4(b)</u> of the Investment Management Agreement and (b) the Manager Fee Deferrals (as defined in the Investment Management Agreement) payable by the Issuer to WhiteHawk Management, LLC pursuant to <u>Section 4(c)</u> of the Investment Management Agreement.

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"**Dollars**" and the sign "**$**" mean the lawful money of the United States of America.

"**Domestic Subsidiary**" means any Restricted Subsidiary that is organized under the laws of the United States of America or any state or territory thereof or the District of Columbia.

"**EBITDA**" means, for any period, Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increased (without duplication) by the following, in each case (other than in the case of <u>clause (a)(v)</u> below) to the extent deducted from or otherwise not included (and not added back) in the determination of Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provision for taxes based on income or profits or capital, <u>plus</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Consolidated Interest Expense for such period (net of interest income of the Issuer and the Consolidated Subsidiaries for such period), <u>plus</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) depreciation, depletion and amortization expense, including the amortization of intangible assets established through purchase accounting and the, amortization of deferred financing fees for such period, <u>plus</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other non-cash charges reducing Consolidated Net Income for such period (<u>provided</u> that if any such non-cash charges represent an accrual or reserve for potential cash items in any future period, the cash payment in respect thereof in such future period shall be subtracted from EBITDA on a dollar-for-dollar basis to such extent, and excluding amortization of a prepaid cash item that was paid in a prior period), <u>plus</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) reasonable (A) Transaction Expenses incurred on, prior to or within three (3) months of the Closing Date and (B) costs and expenses incurred in connection with any Investments, acquisitions (or purchases of assets (including those relating to Oil and Gas Properties)), asset dispositions (including those relating to Oil and Gas Properties), recapitalizations, mergers, amalgamations, repayment, refinancing amendment or modification of Debt or similar transactions after the Closing Date permitted hereunder up to an aggregate amount pursuant to this <u>clause (B)</u> not to exceed $3,000,000 in any period, <u>plus</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the amount of AUM Fees and Dividend Incentive Fees for such period, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any net loss from disposed, abandoned or discontinued operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) decreased (without duplication) by the following, in each case to the extent included in determining Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) non-cash items increasing Consolidated Net Income for such period, excluding any non-cash items that represent the reversal of an accrual or cash reserve for any anticipated cash charges in any prior period where such accrual or cash reserve is no longer required (other than any such accrual or cash reserve that has been added back to Consolidated Net Income in calculating EBITDA in accordance with this definition), <u>plus</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any net income from disposed, abandoned or discontinued operations, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any non-cash items with respect to cash actually received in a prior period unless such cash did not increase EBITDA in such prior period.

For the purposes of calculating EBITDA for any Rolling Period or for any "Application Distribution Period" as set forth on Appendix C, (i) if during such Rolling Period or "Application Distribution Period", as applicable, the Issuer or any Consolidated Restricted Subsidiary shall have made a Material Disposition, EBITDA for such Rolling Period or "Application Distribution Period", as applicable, shall be calculated on a Pro Forma Basis, and (ii) if during such Rolling Period or "Application Distribution Period", as applicable, the Issuer or any Consolidated Restricted Subsidiary shall have made a Material Acquisition, EBITDA for such Rolling Period or "Application Distribution Period", as applicable, shall be calculated on a Pro Forma Basis.

Notwithstanding anything to the contrary, (x) for purposes of calculating EBITDA for any Rolling Period or "Application Distribution Period", as applicable, that includes any of the fiscal quarters or calendar months, as applicable, ending October 31, 2024, November 30, 2024, December 31, 2024, January 31, 2025, February 28, 2025, March 31, 2025, April 30, 2025, May 31, 2025, June 30, 2025, July 31, 2025 or<u>,</u> August 31, 2025, <u>September 30, 2025, October 31, 2025, November 30, 2025, December 31,</u> <u>2025, January 31, 2026 or February 28, 2026,</u> EBITDA for such fiscal quarters or calendar months, as applicable, shall be (I) for October 31<u>April 30</u>, 2024<u>2025</u>, EBITDA for the calendar month ending October 31, 2024<u>April 30, 2025</u> multiplied by twelve (12); (II) for November 30<u>May 31</u>, 2024<u>2025</u>, EBITDA for the two consecutive calendar months ending November 30, 2024<u>May 31, 2025</u> multiplied by six (6); (III) for December 31<u>June 30</u>, 2024<u>2025</u>, EBITDA for the three consecutive calendar months ending December 31, 2024<u>June 30, 2025</u> multiplied by four (4); (IV) for January<u>July</u> 31, 2025, EBITDA for the four consecutive calendar months ending January<u>July</u> 31, 2025 multiplied by three (3); (V) for February 28<u>August 31</u>, 2025, EBITDA for the five consecutive calendar months ending February 28<u>August 31</u>, 2025 multiplied by twelve-fifths (12/5); (VI) for March 31<u>September 30</u>, 2025, EBITDA for the six consecutive calendar months ending March 31<u>September 30</u>, 2025 multiplied by two (2); (VII) for April 30<u>October 31</u>, 2025, EBITDA for the seven consecutive calendar months ending April 30<u>October 31</u>, 2025 multiplied by twelve-sevenths (12/7); (VIII) for May 31<u>November 30</u>, 2025, EBITDA for the eight consecutive calendar months ending May 31<u>November 30</u>, 2025 multiplied by three-halves (3/2); (IX) for June 30<u>December 31</u>, 2025, EBITDA for the nine consecutive calendar months ending June 30<u>December 31</u>, 2025 multiplied by four-thirds (4/3); (X) for July<u>January</u> 31, 2025<u>2026</u> , EBITDA for the ten consecutive calendar months ending July<u>January</u> 31, 2025<u>2026</u> multiplied by six-fifths (6/5) and (XI) for August 30<u>February 28</u>, 2025<u>2026</u>, EBITDA for the eleven consecutive calendar months ending August 30, 2025<u>February 28, 2026</u> multiplied by twelve-elevenths (12/11) and (y) for purposes of the Initial<u>First Amendment</u> LOS/CF Certificate EBITDA only, EBITDA for the trailing twelve months shall be deemed to be $20,000,000<u>42,000,000</u> .

"**EEA Financial Institution**" means (a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country that is a parent of an institution described in <u>clause (a)</u> of this definition, or (c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in <u>clauses (a)</u> or <u>(b)</u> of this definition and is subject to consolidated supervision with its parent.

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"**EEA Member Country**" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"**EEA Resolution Authority**" means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"**EIG**" means EIG Credit Management Company, LLC.

"**Eligible Assignee**" means (a) any Holder, (b) any Subsidiary, Related Fund or Affiliate of a Holder and (c) other than a natural Person, any Note Party or any of their respective Affiliates or any Holder or any Subsidiary, Related Fund or Affiliate thereof, any Institutional Investor or other Person, in each such case for such Institutional Investor or other Person in this <u>clause (c)</u> with the consent of the Issuer, such consent not to be unreasonably withheld, conditioned or delayed; <u>provided</u> that, (i) if an Event of Default has occurred and is continuing, the consent of the Issuer will not be required and (ii) the Issuer shall be deemed to have consented to any such Person unless it shall object thereto by written notice to the Agent within ten (10) Business Days after having received notice thereof; <u>provided further</u> that in any event "Eligible Assignee" shall not include any Affiliated Investor.

"**Environmental Claim**" means any notice, notice of noncompliance, violation or potential responsibility, legally binding directive, claim, action, suit, arbitration, complaint, proceeding, demand, abatement order or other order by any Governmental Authority or any other Person, arising (a) pursuant to or in connection with any actual or alleged violation of any Environmental Law; (b) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or (c) in connection with any actual or alleged damage, injury, threat or harm to human health or safety (to the extent relating to exposure to Hazardous Materials), natural resources or the environment.

"**Environmental Laws**" means any and all Governmental Requirements pertaining in any way to the environment, the preservation or reclamation of natural resources (including flora and fauna), induced seismicity, or the management, Release or threatened Release of any Hazardous Materials, including, to the extent applicable, the Oil Pollution Act of 1990, as amended, the Outer Continental Shelf Lands Act, the Clean Air Act, as amended, the Comprehensive Environmental, Response, Compensation, and Liability Act of 1980 ("**CERCLA**"), as amended, the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act of 1970, as amended, the Resource Conservation and Recovery Act of 1976 ("**RCRA**"), as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Endangered Species Act, as amended, the Migratory Bird Treaty Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, and the Hazardous Materials Transportation Act, as amended.

"**Environmental Liability**" means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), directly or indirectly resulting from or based upon (a) any violation of any applicable Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) any exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement to the extent liability is assumed or imposed with respect to any of the foregoing.

"**Environmental Permit**" means any permit, registration, license, notice, approval, consent, exemption, variance, or other authorization required under or issued pursuant to applicable Environmental Laws.

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"**Equity Interests**" means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest.

"**ERISA**" means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute.

"**ERISA Affiliate**" means each trade or business (whether or not incorporated) which together with the Issuer or a Restricted Subsidiary would be deemed to be a "single employer" within the meaning of Section 4001(b)(1) of ERISA or Sections 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, under Sections 414(m) or (o) of the Code.

"**ERISA Event**" means (a) the occurrence of a "Reportable Event" described in Section 4043 of ERISA with respect to a Plan subject to Title IV of ERISA (other than a Multiemployer Plan) other than a Reportable Event as to which the provision of thirty (30) days' notice to the PBGC is expressly waived under applicable regulations, (b) the withdrawal of the Issuer, a Restricted Subsidiary or any ERISA Affiliate from a Plan subject to Section 4063 of ERISA during a plan year in which it was a "substantial employer" as defined in Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA, (c) the filing of a notice of intent to terminate a Plan subject to Title IV of ERISA (other than a Multiemployer Plan) or the treatment of a Plan amendment as a termination under Section 4041 of ERISA, (d) the institution of proceedings to terminate a Plan by the PBGC, (e) receipt of a notice of withdrawal liability pursuant to Section 4202 of ERISA, or (f) the occurrence of any other event or condition which would reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan.

"**ESG Survey**" as defined in <u>Section 6.01(q)</u>.

"**EU Bail-In Legislation Schedule**" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"**Event of Default**" as defined in <u>Section 9.01</u>.

"**Excepted Liens**" means (a) Liens for Taxes, assessments or other governmental charges or levies which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (b) Liens in connection with workers' compensation, unemployment insurance or other social security, old age pension or public liability obligations, which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (c) statutory landlord's liens, operators', vendors', carriers', warehousemen's, repairmen's, mechanics', suppliers', workers', materialmen's, construction or other like Liens, in each case, arising by operation of law in the ordinary course of business each of which is in respect of obligations that are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (d) contractual Liens which arise in the ordinary course of business under operating agreements, joint venture agreements, oil and gas partnership agreements, oil and gas leases, farm-out agreements, farm-in agreements, division orders, contracts for the sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual interest agreements, overriding royalty agreements, marketing agreements, processing agreements, development agreements, gas balancing or deferred production agreements, injection, repressuring and recycling agreements, which are limited to the assets that are subject to the relevant

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agreement, and seismic or other geophysical permits or agreements, and other agreements, in each case which are usual and customary in the Oil and Gas Business and are for claims which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; <u>provided</u> that any such Lien referred to in this clause does not materially impair the use of any material Property covered by such Lien for the purposes for which such Property is held by the Issuer or any Restricted Subsidiary or materially impair the value of any material Property subject thereto; (e) Liens arising solely by virtue of any statutory or common law provision relating to banker's liens, rights of set-off or similar rights and remedies and burdening only deposit accounts or other funds maintained with a creditor depository institution; <u>provided</u> that no such deposit account is a dedicated cash collateral account or is subject to restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Board and no such deposit account is intended by the Note Parties or any of their Restricted Subsidiaries to provide collateral to the depository institution; (f) easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations in any Property of the Issuer or any Restricted Subsidiary for the purpose of roads, pipelines, transmission lines, transportation lines, distribution lines for the removal of gas, minerals or oil and other like purposes, or for the joint or common use of real estate, rights of way, facilities and equipment, that do not secure any Debt or monetary obligations and which in the aggregate do not materially impair the use of such Property for the purposes of which such Property is held by the Issuer or any Restricted Subsidiary or materially impair the value of such Property subject thereto; (g) Liens on cash or securities pledged to secure performance of tenders, surety and appeal bonds, government contracts, performance and return of money bonds, bids, trade contracts, leases, statutory obligations, regulatory obligations and other obligations of a like nature incurred in the ordinary course of business; (h) judgment and attachment Liens not giving rise to an Event of Default; <u>provided</u> that any appropriate legal proceedings which may have been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated shall not have expired and no action to enforce such Lien has been commenced; (i) encumbrances consisting of deed restrictions, zoning restrictions, and other similar restrictions on the use of Oil and Gas Properties, none of which, in the aggregate, materially impairs the use of such property by the Issuer or any Restricted Subsidiary in the operation of its business or materially detracts from the value of such properties; (j) purported Liens evidenced by the filing of UCC financing statements solely as a precautionary measure in connection with operating leases of personal property; <u>provided</u>, <u>further</u>, that no intention to subordinate the first priority status afforded by the Liens granted in favor of the Collateral Agent (for the benefit of the Secured Parties, as provided in the Collateral Documents) is to be hereby implied or expressed by the permitted existence of such Excepted Liens. The parties acknowledge and agree that the term "Excepted Liens" shall not include any Lien securing Debt of the type described in clause (a) of the definition of Debt.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated thereunder.

"**Excluded Accounts**" means (a) each account for which all of the deposits consist of amounts utilized to fund payroll, employee benefit or tax obligations of the Note Parties and their Subsidiaries, (b) escrow, pre-funding, trust and fiduciary accounts, in each case, solely holding amounts held for the benefit of third parties in the ordinary course of business (including, without limitation, escrow accounts in respect of Investments permitted under this Agreement, including under <u>Section 7 .05</u>), (c) "zero balance" accounts, and (d) other accounts; <u>provided</u> that the aggregate daily maximum balance for all such bank accounts excluded pursuant to this <u>clause (d)</u> on any day shall not exceed $500,000.

"**Excluded Property**" has the meaning assigned to such term in the Pledge and Security Agreement.

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"**Excluded Subsidiaries**" means (a) any Immaterial Subsidiary and (b) each Unrestricted Subsidiary; <u>provided</u> that no Subsidiary that owns or holds mineral interests, royalty interests or Proved Reserves shall be an "Excluded Subsidiary".

"**Excluded Taxes**" as defined in <u>Section 2.14(b)</u>.

"**Existing Credit Facility**" means that certain credit facility, established pursuant to that certain Credit Agreement (as amended, restated, amended and restated, supplemented and as otherwise modified from time to time), dated as of August 3, 2023, by and among, *inter alios*, the Issuer, as borrower, the guarantors from time to time party thereto and Citadel Energy Marketing LLC.

"**Exposure**" means, with respect to any Holder, as of any date of determination, the outstanding principal amount of the Notes held by such Holder.

"**Fair Market Value**" means, with respect to any asset or group of assets on any date of determination, the value of the consideration obtainable in a disposition of such asset or group of assets at such date of determination assuming a disposition by a willing seller to a willing purchaser dealing at arm's length and arranged in an orderly manner over a reasonable period of time having regard to the nature and characteristics of such asset or group of assets, as reasonably determined in good faith by the Issuer; <u>provided</u>, <u>however</u>, that to the extent the Requisite Holders disagree with such Fair Market Value as determined in good faith by the Issuer, the Requisite Holders and the Issuer shall determine Fair Market Value pursuant to a dispute resolution process substantially similar to that provided for in <u>Section 1.05</u>.

"**FATCA**" means Sections 1471 through 1474 of the Internal Revenue Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities entered into in connection with the implementation of the foregoing.

"**FCA**" means the U.K. Financial Conduct Authority.

"**FCPA**" means the Foreign Corrupt Practices Act of 1977, as amended.

"**FDIC**" means the Federal Deposit Insurance Corporation.

"**Federal Funds Effective Rate**" means for any day, the rate calculated by the NYFRB based on such day's federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the federal funds effective rate; <u>provided</u> that, if the foregoing rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

"**Fee Letter**" means <u>(a)</u> that certain Fee Letter dated as of the Closing Date between the Issuer, EIG and the other parties named therein <u>and (b) that certain Fee Letter dated as of the First Amendment Effective Date between the Issuer, EIG and the other parties named therein</u>.

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"**Finance Leases**" means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, recorded as finance leases on the balance sheet of the Person liable (whether contingent or otherwise) for the payment of rent thereunder; <u>provided</u> that for all purposes hereunder the amount of obligations under any Finance Lease shall be the amount thereof accounted for as a liability on the balance sheet of such Person in accordance with GAAP; <u>provided</u>, <u>further</u>, that for purposes of calculations made pursuant to the terms of this Agreement, GAAP will be deemed to treat leases in a manner consistent with its treatment under GAAP applicable to private companies for fiscal years beginning prior to December 15, 2019, notwithstanding any modifications or interpretative changes thereto that may occur. For the avoidance of doubt, (i) any lease that would be characterized as an operating lease in accordance with GAAP applicable to private companies for fiscal years beginning prior to December 15, 2019 (whether or not such operating lease was in effect on such date) shall continue to be accounted for as an operating lease (and not as a Finance Lease) for purposes of this Agreement regardless of any change in GAAP applicable to private companies for fiscal years beginning after December 15, 2019 that would otherwise require such lease to be re-characterized (on a prospective or retroactive basis or otherwise) as a Finance Lease and (ii) GAAP will be deemed to not take into account ASU 2016-02.

"**Financial Officer**" means, for any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person or authorized signatory of such Person that has similar responsibilities; <u>provided</u> that, if such Person is a limited partnership or limited liability company, any reference to a Financial Officer of such Person shall be a reference to a Financial Officer of such Person or of the general partner or sole member, as applicable, of such Person. Unless otherwise specified, all references herein to a Financial Officer means a Financial Officer of the Issuer.

<u>"**First Amendment**" means that certain First Amendment to Note Purchase Agreement, dated as of March 31, 2025, by and among the Issuer, the other Note Parties, the Agent, the Holders and the First Amendment Incremental Holders.</u> 

<u>"**First Amendment Additional Note Holders**" means each person listed on the signature page to the First Amendment as a First Amendment Additional Note Holder.</u> 

<u>"**First Amendment Additional Notes**" means the Notes purchased on the First Amendment Effective Date pursuant to Section 2.01(a)(ii), as evidenced by a promissory note in the form of Exhibit B-1.</u> 

<u>"**First Amendment Effective Date**" means March 31, 2025.</u> 

<u>"**First Amendment Transaction Expenses**" means any fees or expenses incurred or paid by the Issuer or any of its Restricted Subsidiaries in connection with the First Amendment and the transactions contemplated thereby.</u> 

"**First Offer**" as defined in <u>Section 2.09(g)</u>.

"**Fiscal Quarter**" means a Fiscal Quarter of any Fiscal Year.

"**Fiscal Year**" means the Fiscal Year of the Note Parties ending on December 31 of each calendar year.

"**Flood Insurance Regulations**" means (a) the National Flood Insurance Act of 1968 as now or hereafter in effect or any successor statute thereto, (b) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statute thereto, (c) the National Flood Insurance Reform Act of 1994 (amending 42 USC § 4001, et seq.), as the same may be amended or recodified from time to time, (d) the Flood Insurance Reform Act of 2004 and (e) the Biggert-Waters Flood Insurance Reform Act of 2012, in each case as now or hereafter in effect or any successor statute thereto and including any regulations promulgated thereunder.

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"**Flow of Funds**" means the flow of funds instruction letter delivered to the Agent at least one (1) Business Day prior to the Closing Date, directing the Agent to make certain specified disbursements on the Closing Date.

"**Foreign Subsidiary**" means any Restricted Subsidiary that is not a Domestic Subsidiary.

"**Free Cash Flow (Back)**" means as of any date of determination, for a calendar month set forth under the heading "Distribution Month" in Appendix C, (a) Adjusted Cash Flow From Operating Activities for the corresponding "Applicable CF Period" in <u>Appendix C plus</u> (b) the amount of net cash proceeds received by the Issuer from the issuance of (i) common equity or (ii) Series B Preferred Shares, in either case issued by the Issuer during such "Applicable Distribution Period", <u>minus</u> (c) any Specified Issuance Proceeds received during such "Applicable Distribution Period"<u>minus</u> (d) to the extent included in Cash Flow From Operating Activities, voluntary cash repayments of the Notes pursuant to <u>Section 2.08</u> during such "Applicable Distribution Period".

"**Free Cash Flow (Forward)**" means, as of any date of determination for a calendar month set forth under the heading "Distribution Month" in Appendix C, (a)(i)(A) Projected Cash Flow From Operating Activities for the corresponding "Applicable CF Period" in <u>Appendix C plus</u> (B) the Prior Period Adjustment from the immediately preceding Applicable CF Period <u>multiplied</u> by (ii) the "Quarterly Factor" in Appendix C for such Distribution Month <u>plus</u> (b) the amount of net cash proceeds received by the Issuer from the issuance of (i) common equity or (ii) Series B Preferred Shares, in either case issued by the Issuer during such "Applicable Distribution Period", <u>minus</u> (c) any Specified Issuance Proceeds received during such "Applicable Distribution Period"<u>minus</u> (d) to the extent included in Cash Flow From Operating Activities, voluntary cash repayments of the Notes pursuant to <u>Section 2.08</u> during such "Applicable Distribution Period".

"**Free Cash Flow Utilization**" has the meaning set forth in the definition of "Distributable Free Cash Flow".

"**GAAP**" means, subject to the limitations on the application thereof set forth in <u>Section 1.03</u>, United States generally accepted accounting principles in effect as of the date of determination thereof.

"**General and Administrative Costs**" means the general and administrative costs of the Issuer, the other Note Parties and their Restricted Subsidiaries, including utilities, communications, consulting fees, salary, rent, supplies, travel, insurance, accounting, legal, engineering and broker related fees required to manage its affairs and, for the avoidance of doubt, (a) any costs and expenses of an Affiliate of the Issuer, the other Note Parties and their Restricted Subsidiaries that are reimbursed by the Issuer, the other Note Parties and their Restricted Subsidiaries and which are fairly allocable to the Issuer, the other Note Parties and their Restricted Subsidiaries and (b) any management fees, advisory fees or similar fees to any holder of its Equity Interests or any Affiliates thereof (other than a Note Party). Notwithstanding the foregoing, for purposes of this Agreement, AUM Fees and Dividend Incentive Fees shall constitute Restricted Payments and not General and Administrative Costs.

"**Governing Body**" means the Board of Directors or other body having the power to direct or cause the direction of the management and policies of a Person that is a corporation, partnership, trust or limited liability company or other applicable entity.

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"**Governmental Authority**" means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

"**Governmental Requirement**" means any law, statute, code, ordinance, order, determination, rule, regulation, judgment, decree, injunction, franchise, permit, certificate, license, rules of common law, authorization or other directive or requirement, whether now or hereinafter in effect, of any Governmental Authority.

"**guarantee**" means, with respect to any Person, any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Debt or other obligation of any other Person in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, that is (a) an obligation of such Person the primary purpose or intent of which is to provide assurance to an obligee that the obligation of the obligor thereof will be paid or discharged, or any agreement relating thereto will be complied with, or the holders thereof will be protected (in whole or in part) against loss in respect thereof; or (b) a liability of such Person for an obligation of another through any agreement (contingent or otherwise) (i) to purchase, repurchase or otherwise acquire such obligation or any security therefor, or to provide funds for the payment or discharge of such obligation (whether in the form of loans, advances, stock purchases, capital contributions or otherwise) or (ii) to maintain the solvency or any balance sheet item, level of income or financial condition of another if, in the case of any agreement described under <u>subclauses (i)</u> or <u>(ii)</u> of this <u>clause (b)</u>, the primary purpose or intent thereof is as described in <u>clause (a)</u> above. "**Guarantee** ", unless the context otherwise requires, means the guarantee of each Guarantor set forth in the Guaranty Agreement.

"**Guarantors**" means (a) WhiteHawk Income Marcellus LLC, a Delaware limited liability company, (b) WhiteHawk Income Haynesville LLC, a Delaware limited liability company, (c) those Persons identified on <u>Schedule 1.02(a)</u> hereto and (d) each other Material Subsidiary and other Subsidiary of a Note Party that guarantees the Obligations pursuant to the Guaranty Agreement or as otherwise required by <u>Section 6.13(b)</u>.

"**Guaranty Agreement**" means an agreement executed by the Guarantors in substantially the form of <u>Exhibit F</u>, absolutely and unconditionally guarantying, on a joint and several basis, payment of the Obligations, as the same may be amended, restated, amended and restated, modified or supplemented from time to time.

"**Hazardous Material**" means any substance regulated or as to which liability might arise under any applicable Environmental Law including: (a) any chemical, compound, material, product, byproduct, substance or waste defined as or included in the definition or meaning of "hazardous substance," "hazardous material," "hazardous waste," "solid waste," "toxic waste," "extremely hazardous substance," "toxic substance," "contaminant," "pollutant" or words of similar meaning or import found in any applicable Environmental Law; (b) Hydrocarbons, petroleum products, petroleum substances, natural gas, oil, oil and gas waste, crude oil, and any components, factions or derivatives thereof; and (c) radioactive materials, explosives, brine, asbestos or asbestos containing materials, polychlorinated biphenyls, per- or polyfluoroalkyl substances, radon, or infectious or medical wastes.

"**Hazardous Materials Activity**" means any past or current activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, Release, threatened Release, discharge, placement, generation, transportation, processing, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.

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"**Hedge Intercreditor Agreement**" means that certain Hedge Intercreditor Agreement, dated as of the Closing Date, by and among the Issuer, each other Note Party, Citadel Energy Marketing LLC as Initial Swap Counterparty (as defined therein) and the Collateral Agent, as such agreement may be amended, restated, amended and restated, supplemented or otherwise modified from time to time; <u>provided</u> that the Hedge Intercreditor Agreement shall be in form and substance satisfactory to the Requisite Holders and otherwise on terms customary for financing arrangements of this type, it being understood that the form and terms of the Hedge Intercreditor Agreement on the Closing Date satisfy this proviso.

"**Highest Lawful Rate**" means the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under the laws applicable to any Holder which are presently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than applicable laws now allow.

"**Holder-Related Party**" as defined in <u>Section 11.03(b)</u>.

"**Holders**" means <u>(a)</u> each Person listed on the signature pages hereto<u>to the original Agreement dated as of September 17, 2024</u> as a Holder, <u>(b) each Person listed on the signature pages to the First Amendment as a First Amendment Additional Note Holder,</u> and <u>(c)</u> any other Person that becomes a party hereto as a Holder pursuant to an Assignment Agreement, other than any such Person that ceases to be a party hereto as a Holder pursuant to an Assignment Agreement.

"**Hydrocarbon Interests**" means all rights, titles, interests and estates now or hereafter acquired by the Issuer or any Guarantor in and to oil and gas leases, oil, gas and mineral leases, and/or other liquid or gaseous hydrocarbon leases, mineral fee interests, mineral interests, mineral royalty interests, overriding royalty and royalty interests, net profit interests and production payment interests, and other interests and estates including any reserved or residual interests of whatever nature, in each case, including those that are described on the exhibit(s) attached to any Mortgage.

"**Hydrocarbons**" means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all constituents, elements or compounds thereof and all products refined or separated therefrom and all other minerals which may be produced and saved from or attributable to the Oil and Gas Properties, now or hereafter acquired by the Issuer or any Guarantor, including all oil in tanks, and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests or other properties constituting Oil and Gas Properties to the extent allocated to the royalty interest or overriding royalty interests of the Issuer or any Guarantor.

"**Immaterial Subsidiary**" means any Restricted Subsidiary that is not a Material Subsidiary.

"**Improved Mortgaged Property**" means all improved real property acquired by the Issuer or any Guarantor that contains Buildings or Manufactured (Mobile) Homes (as those terms are defined in applicable Flood Insurance Regulations) constituting Collateral, if any.

"**Incremental Commitments**" means the commitments of the Holders to purchase Incremental Notes contemplated by <u>Section 2.16</u>.

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"**Incremental Indebtedness**" has the meaning set forth in <u>Section 2.16(b)(i)</u>.

"**Incremental Note**" means any Note purchased by any Holder pursuant to the Incremental Commitments, as evidenced by a promissory note in the form of <u>Exhibit B-2</u>.

"**Incremental Notes Notice**" has the meaning set forth in <u>Section 2.16(a)(i)</u>.

"**Incremental Notes Offer**" has the meaning set forth in <u>Section 2.16(a)(ii)</u>.

"**Incremental Target Amount**" has the meaning set forth in <u>Section 2.16(a)(i)</u>.

"**Indemnified Liabilities**" means, collectively, any and all fees, liabilities, obligations, losses, damages, penalties, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable fees, disbursements and settlement costs and other charges of counsel for Indemnitees) and of consultants in connection with any proceeding (whether investigative, administrative, judicial or otherwise) commenced or threatened by any Person, whether or not any such Indemnitee shall be designated as a party or a potential party thereto, and any reasonable fees or expenses incurred by Indemnitees in administering and enforcing this Agreement and the other Note Documents and enforcing the indemnity under <u>Section 11.03(a)</u>, whether direct, indirect or consequential and whether based on any federal, state or foreign laws, statutes, rules or regulations (including securities and commercial laws, statutes, rules or regulations and Environmental Laws), on common law or equitable cause or on contract or otherwise, that may be imposed on, incurred by, or asserted against any such Indemnitee, in any manner relating to or arising out of (a) this Agreement or the other Note Documents, the Transactions or any other transactions contemplated hereby or thereby (including the Holders' agreement to make Note Purchases or the use or intended use of the proceeds thereof, or any enforcement of any of the Note Documents (including any sale of, collection from, or other realization upon any of the Collateral or the enforcement of the Guarantee)); or (b) any Environmental Claim relating to or against, or any past or present activity (including any Hazardous Materials Activity), operation, land ownership, or practice of, the Issuer or any of its Subsidiaries or on any of their respective properties. Notwithstanding the foregoing, Indemnified Liabilities shall not include Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

**"Indemnified Taxes"**means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any Obligation of any Note Party under any Note Document and (b) to the extent not otherwise described in (a), Other Taxes.

"**Indemnitee**" as defined in <u>Section 11.03(a)</u>.

"**Indemnitee Agent Party**" means each Agent, its Affiliates and its officers, partners, directors, trustees, employees, representatives and agents of the Agents.

"**Initial Financial Statements**" means the financial statements described in <u>Section 3.01(u)</u>.

"**Initial Reserve Report**" means that certain reserve report prepared by Schaper Energy Consulting LLC in respect of Oil and Gas Properties of the Issuer and its Restricted Subsidiaries with an "as of" date of March 14, 2024.

"**Institutional Investor**" means (a) any Holder of a Note on the Closing Date, (b) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, (c) any Related Fund or Affiliate of any Holder of any Note and (d) any other Person that is a Qualified Institutional Buyer to the extent such Person would not reasonably be considered a competitor of the Issuer.

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"**Interest**" as defined in <u>Section 2.06(a)</u>.

"**Interest Payment Date**" means (a) the last day of each Fiscal Quarter, commencing with the Fiscal Quarter ended December 31, 2024, and (b) the Maturity Date.

"**Interest Period**" means (a) from and including the Closing Date to the next Interest Payment Date, and (b) thereafter, from and including each Interest Payment Date to but excluding the next Interest Payment Date.

"**Internal Revenue Code**" means the Internal Revenue Code of 1986, as amended to the date hereof and from time to time hereafter, and any successor statute (except as otherwise provided herein).

"**Investment**" means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of Equity Interests of any other Person or any agreement to make any such acquisition (including, without limitation, any "short sale" or any sale of any securities at a time when such securities are not owned by the Person entering into such short sale); (b) the making of any deposit with, or advance, loan or capital contribution to, guarantee or assumption of Debt of, purchase or other acquisition of any other Debt or equity participation or interest in, or other extension of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such Property to such Person, but excluding any such advance, loan or extension of credit having a term not exceeding one hundred twenty (120) days representing the purchase price of inventory or supplies sold by such Person in the ordinary course of business) or (c) the purchase or acquisition (in one or a series of transactions) of Property (other than Equity Interests) of another Person that constitutes a business unit, line of business or a discrete set of Properties. For purposes of covenant compliance, the amount of any Investment at any time shall be the amount actually invested (measured at the time made), without adjustment for subsequent increases or decreases in the value of such Investment.

<u>"**Investment Agreement**" means that certain Investment Agreement by and among WhiteHawk Income Corporation and the Investors listed in Exhibit A to such agreement, dated as of March 28, 2025.</u> 

"**Investment Management Agreement**" means that certain Investment Management Agreement, dated as of March 1, 2022, between, the Issuer and WhiteHawk Management, LLC

"**IRS**" as defined in <u>Section 2.14(e)</u>.

"**Issuer**" as defined in the preamble hereto.

"**Lien**" means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to (a) the lien or security interest arising from a deed of trust, mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes or (b) royalty interest payments and the like payable out of Oil and Gas Properties.

"**Liquidity**" means, at any time, Unrestricted Cash at such time.

"**LOS/CF Certificate**" means a certificate of a Responsible Officer pursuant to <u>Section 6.01(o)</u>.

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"**Make-Whole Amount**" means, with respect to the Called Principal of any Note, an amount equal to the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note, <u>provided</u> that the Make-Whole Amount shall in no event be less than zero.

"**Make-Whole Expiry Date**" as defined in <u>Section 2.11(g)</u>.

"**Material Acquisition**" means any acquisition of Property or series of related acquisitions of Property that involves the payment of consideration by the Note Parties and their Consolidated Restricted Subsidiaries in excess of $2,000,000.

"**Material Adverse Effect**" means a material adverse change in, or material adverse effect on (a) the business, operations, Property or financial condition of the Note Parties and their Restricted Subsidiaries taken as a whole, (b) the ability of the Issuer, any Restricted Subsidiary or any Guarantor to perform any of its material obligations under any Note Document, (c) the validity or enforceability of any Note Document, or (d) the rights and remedies of or benefits available to the Agent or any Holder under any Note Document.

"**Material Contracts**" means (a) the contracts set forth on <u>Schedule 1.02(b)</u> and (b) any other contract and agreement of any Note Party or its Subsidiaries resulting (or projected to result) in such Person being reasonably expected to receive revenue or other consideration or incur liabilities in excess of $2,000,000 during any Fiscal Year.

"**Material Debt**" means Debt (other than the Notes), or obligations in respect of one or more Swap Agreements, of any one or more of the Note Parties and their Restricted Subsidiaries in an aggregate principal amount exceeding $2,000,000. For purposes of determining Material Debt, the "principal amount" of the obligations of the Issuer or any Restricted Subsidiary in respect of any Swap Agreement at any time shall be the Swap Termination Value of such Swap Agreement.

"**Material Disposition**" means any disposition of Property or series of related dispositions of Property that involves the payment of consideration to the Note Parties and their Consolidated Restricted Subsidiaries in excess of $2,000,000.

"**Material Environmental and Social Incident**" means (a) any incident or accident formally elevated to the Board of Directors (or other similar Governing Body) of the Issuer, (b) an accident relating to the Note Parties, their Subsidiaries, or their respective properties resulting in death or serious or multiple injury or (c) a significant and material community or worker related grievance or protest directed at the Note Parties, their Subsidiaries, or their respective properties, in each of the foregoing cases, which has or could reasonably be expected to have (in the good faith determination of the Issuer) a material and adverse impact on health, safety or the environment (including, in each case, as the result of the Release of any Hazardous Material).

"**Material Subsidiary**" means, as of any date, (a) any Subsidiary that, together with its Restricted Subsidiaries, as of the last day of the Fiscal Quarter of the Issuer most recently ended, had net revenues or total assets for such quarter in excess of 0.50% of the consolidated net revenues or total assets, as applicable, of the Issuer and its Restricted Subsidiaries for such quarter and (b) any Subsidiary that owns any Oil and Gas Properties evaluated in the Reserve Report most recently delivered to pursuant to <u>Section 6.11</u>, <u>provided</u> that in the event that the Immaterial Subsidiaries, taken together, had as of the last day of the Fiscal Quarter of the Issuer most recently ended net revenues or total assets in excess of 1.00% of the consolidated revenues or total assets, as applicable, of the Issuer and its Restricted Subsidiaries for such quarter, the Issuer shall designate one or more Immaterial Subsidiaries to be a Material Subsidiary as may be necessary such that the foregoing one percent 1.00% limit shall not be exceeded, and any such Subsidiary shall thereafter be deemed to be a Material Subsidiary hereunder, and the Issuer shall cause such designated Material Subsidiaries to comply with <u>Section 6.13(b)</u>.

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"**Maturity Date**" means the earlier of (a) September 17, 2029<u>March 31, 2030</u> and (b) the date that all Notes shall become due and payable in full hereunder, whether by acceleration or otherwise or, in either case, if such day is not a Business Day, the immediately preceding Business Day.

"**Minimum Liquidity Amount**" means (a) $3,000,000<u>4,000,000</u> <u>plus</u> (b) as of any date of determination (i) Interest accrued through the date of determination <u>plus</u> (ii) any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments <u>plus</u> (iii) losses (or <u>minus</u> gains) from Swap Agreements which, as of the date of determination, have settled but for which cash proceeds have not been received by the Issuer or its Restricted Subsidiaries.

"**Minimum Return**" as defined in the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**MIRE Event**" means, if there are any Mortgaged Properties at such time, any increase, extension or renewal of any of the Commitments or Notes (including any other incremental credit facilities hereunder, but excluding (a) any continuation or conversion of Notes or (b) the issuance of any Notes).

"**Monthly Common Equity Dividends**" means dividends made by the Issuer to the holders of its Equity Interests on the account of its common Equity Interests in accordance with the Issuer's Organizational Documents in effect as of the date hereof, in an amount not to exceed $0.1562 per Equity Interest unit (provided that to the extent (a) the outstanding common Equity Interest of the Issuer shall have been increased, decreased, changed into or exchanged for a different number of shares or different class, in each case, by reason of any reclassification, recapitalization, stock split, split-up, combination or exchange of shares, (b) a stock dividend or dividend payable in any other Equity Interests securities of the Issuer shall have been declared or (c) any similar event shall have occurred, such $0.1562 per Equity Interest unit limit shall be adjusted in a manner to maintain the same economic effect as contemplated by this Agreement prior to such event).

"**Monthly** **Equity Redemptions**" means redemptions by the Issuer of its Series A Preferred Shares in accordance with the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 and in effect as of the date hereof.

"**Monthly Preferred Equity Dividends**" means dividends made by the Issuer to the holders of its Equity Interests on the account of its (a) Series A Preferred Shares in an amount not to exceed eighteen percent (18%) per annum, in accordance with the Amended and Restated Investment Agreement, by and among WhiteHawk Income Corporation and the investors party thereto, dated as of February 1, 2024 and/or (b) Series B Preferred Shares, payable on a monthly basis at an annualized rate of ten percent (10%), in accordance with Section 5 of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024. <u>and (b) Series C Preferred Shares, payable on a monthly basis at an annualized rate of (i) fourteen percent (14%) from and including the Closing (as defined in the Investment Agreement) to December 31, 2026 and (ii) eighteen percent (18%) after December 31, 2026, in accordance with Section 1.4(e) of the Investment Agreement.</u>

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"**Moody's**" means Moody's Investors Service, Inc. and any successor thereto that is a nationally recognized rating agency.

"**Mortgage**" means all mortgages, deeds of trust and similar documents, instruments and agreements (including amendments and restatements of existing deeds of trust and similar documents, instruments and agreements) creating, evidencing, perfecting or otherwise establishing the Liens on Mortgaged Property to secure payment of the Obligations or any part thereof in substantially the form of <u>Exhibit L</u> (or otherwise in form and substance reasonably acceptable to the Agent (at the direction of the Requisite Holders)).

"**Mortgaged Property**" means any Property owned by the Issuer or any Guarantor which is subject to the Liens existing and to exist under the terms of the Collateral Documents.

"**Multiemployer Plan**" mean a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

"**Net Asset Sale Proceeds**" means, with respect to any Asset Sale (other than pursuant to <u>Section 7.09(a)</u>, <u>Section 7.09(b)</u>, <u>Section 7 .09(e)</u>, <u>Section 7.09(f)</u>, <u>Section 7.09(h)</u>, <u>Section 7.09(i)</u> or <u>Section 7.09(j)</u>), an amount equal to: (a) the sum of cash payments and Cash Equivalents received by the Issuer or any of its Affiliates from such Asset Sale (including any cash or Cash Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received), <u>minus</u> (b) any bona fide costs and expenses (including, without limitation, legal, accounting and investment banking fees, and sales commissions) incurred in connection with such Asset Sale, including income or gains taxes paid or payable as a result of such Asset Sale (after taking into account any available tax credits or deductions and any tax-sharing arrangements) or reserves taken in respect of taxes and (c) a reasonable reserve for any indemnification payments (fixed or contingent) attributable to seller's indemnities and representations and warranties to purchaser in respect of such Asset Sale undertaken by the Issuer or any other Note Party in connection with such Asset Sale; <u>provided</u> that upon release of any such reserve, the amount released shall be considered Net Asset Sale Proceeds.

"**Net Casualty Event Proceeds**" means, with respect to any Casualty Event, an amount equal to: (a) the sum of cash payments and Cash Equivalents received by the Issuer or any of its Affiliates from such Casualty Event <u>minus</u> (b) (i) any bona fide costs and expenses incurred in connection with the adjustment or settlement of any claims of the Issuer or any of its Restricted Subsidiaries in respect thereof and (ii) amounts expended to repair and/or replace property subject to such Casualty Event.

"**Non-U.S. Holder**" as defined in <u>Section 2.14(e)</u>.

"**Note**" means <u>(a)</u> the notes purchased by the Holders on the Closing Date pursuant to <u>Section 2.01(a)</u><u>(i)</u>, as may be evidenced by a promissory note in the form of <u>Exhibit B-1</u><u>,</u> <u>(b) the notes purchased by the First Amendment Additional Note Holders on the First Amendment Effective Date pursuant to Section 2.01(a)(ii), as may be evidenced by a promissory note in the form of Exhibit B-1 and (c) any Incremental Note purchased by Incremental Holders pursuant to Section 2.16 as may be evidenced by a promissory note in the form of Exhibit B-2 (in each case,</u> such term shall also include any such notes in substitution therefor pursuant to <u>Section</u> 11.30<u>11.29</u> of this Agreement).

"**Note Document**" means any of this Agreement, the Notes, the Incremental Notes (if any), the Agent Fee Letter, the Fee Letter, the Collateral Documents, the Flow of Funds and all other certificates, documents, instruments or agreements executed and delivered by a Note Party for the benefit of Agents or any Holder in connection herewith or pursuant to any of the foregoing. Any reference in this Agreement or any other Note Document to a Note Document shall include all appendices, exhibits and schedules thereto.

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"**Note Party**" means the Issuer and the Guarantors.

"**Note Purchase**" means a purchase by the Holders of Notes pursuant to <u>Section 2.01</u>.

"**Note Purchase Notice**" means a written notice by the Issuer that it intends to issue Notes hereunder, which Note Purchase Notice (a) sets forth the principal amount of Notes to be issued, (b) contains the information required by <u>Section 2.03</u> and (c) is substantially in the form of <u>Exhibit A</u> or such other form reasonably satisfactory to the Requisite Holders.

"**Not for Speculative Purposes**" in the case of Swap Agreements permitted under this Agreement, means the following Swap Agreements: (a) any commodity Swap Agreement intended, at inception of execution, to hedge or manage any of the risks related to existing and or forecasted Hydrocarbon production of the Issuer or its Restricted Subsidiaries (whether or not contracted) and (b) any Swap Agreement intended, at inception of execution, to hedge or manage the interest rate exposure associated with any debt securities, debt facilities or leases (existing or reasonably forecasted) of the Issuer or its Restricted Subsidiaries. It is understood that commodity Agreements that, taken as a whole, "hedge" the same volumes of commodity risk, including those under which one or more such Swap Agreements partially offset one or more other such Swap Agreements, shall not be aggregated together when calculating the foregoing limitations on notional volumes and shall be deemed, both individually and in the aggregate, not to be speculative.

"**NYFRB**" means the Federal Reserve Bank of New York.

"**NYFRB Rate**" means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); <u>provided</u> that, if none of such rates are published for any day that is a Business Day, the term "NYFRB Rate" means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received by the Agent from a federal funds broker of recognized standing selected by the Requisite Holders; <u>provided</u>, <u>further</u> , that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

"**NYMEX Pricing**" means, as of any date of determination with respect to any month, (a) for crude oil, the closing settlement price for the Light, Sweet Crude Oil futures contract for such month and (b) for natural gas, the closing settlement price for the Henry Hub Natural Gas futures contract for such month, in each case as published by CME Group / NYMEX on its website currently located at www.cmegroup.com, or any successor thereto (as such price may be corrected or revised from time to time by CME Group / NYMEX in accordance with its rules and regulations).

"**Obligations**" means (a) all liabilities and obligations of every nature of each Note Party from time to time owed to the Agents (including any former Agents), the Holders, any Indemnitee or any of them, in each case, under any Note Document, in each case, to which it is a party, whether for principal, interest (including, without limitation, interest accruing at any post-default rate and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, whether or not a claim for post-filing or post -petition interest is allowed in such proceeding), fees (including, without limitation, any Make-Whole Amount or any Prepayment Fee), expenses, penalties, premiums, reimbursements, indemnification or otherwise and whether primary, secondary, direct, indirect, contingent, fixed or otherwise (including obligations of performance) and all renewals, extensions and/or rearrangements of any of the above and (b) all Secured Hedge Obligations of each Note Party.

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"**Oil and Gas Business**" means: (a) the business of acquiring, exploring, exploiting, developing, producing, operating and disposing of interests in oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and mineral properties or products produced in association with any of the foregoing; (b) the business of gathering, marketing, distributing, treating, processing, storing, refining, selling and transporting of any production from interests in oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and mineral properties or products produced in association therewith; and the marketing of oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and minerals obtained from unrelated Persons; and (c) any business or activity relating to, arising from, or necessary, appropriate, incidental or ancillary to the activities described in the foregoing <u>clauses (a)</u> and <u>(b)</u> of this definition.

"**Oil and Gas Properties**" means: (a) the Hydrocarbon Interests; (b) all of the Issuer's or any Guarantor's interest in the Properties now or hereafter pooled or unitized with Hydrocarbon Interests; (c) all of the Issuer's or any Guarantor's interest in all presently existing or future unitization agreements, pooling agreements and declarations of pooled or unitized units and the units created thereby (including without limitation all units created under orders, regulations and rules of any Governmental Authority) which may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements, including production sharing contracts and agreements, which relate to any of the Hydrocarbon Interests or the production, sale, purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests, to the extent the Issuer or any Guarantor is a party to any such agreement or contract; (e) all Hydrocarbons in and under and which may be produced and saved or attributable to the Hydrocarbon Interests; (f) all tenements, hereditaments, appurtenances and Properties in any manner appertaining, belonging, affixed or incidental to the interest of the Issuer or any Guarantor in the Hydrocarbon Interests and (g) all properties, rights, titles, interests and estates described or referred to above, which are now owned or which are hereafter acquired by the Issuer or any Guarantor, including, without limitation, any and all Property, real or personal, immoveable or moveable, now owned or hereinafter acquired , including without limitation, rights-of-way, easements, servitudes, licenses and other surface and subsurface rights, together with all additions, substitutions, replacements, accessions and attachments to any and all of the foregoing.

"**Organizational Documents**" means (a) with respect to any corporation, its certificate or articles of incorporation, amalgamation, formation or organization, as amended, and its bylaws, as amended, (b) with respect to any limited partnership, its certificate of limited partnership or certificate of formation, as amended, and its partnership agreement, as amended, (c) with respect to any general partnership, its partnership agreement, as amended, (d) with respect to any limited liability company, its articles of organization or certificate of formation, as amended, and its operating agreement, as amended and (e) in any other case, the functional equivalent of the foregoing. In the event any term or condition of this Agreement or any other Note Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such "Organizational Document" shall only be to a document of a type customarily certified by such governmental official.

"**Other Taxes**" means any and all present or future stamp, recording, filing, court or documentary, intangible, or similar Taxes arising from any payment made hereunder or from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Note Document, except any such Taxes described in <u>clause (b)</u> of the definition of Tax on the Overall Net Income imposed with respect to any assignment (other than an assignment pursuant to a request by the Issuer).

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"**Overnight Bank Funding Rate**" means, for any day, the rate comprised of both overnight federal funds and overnight Adjusted Term SOFR Rate borrowings by U.S.-managed banking offices of depository institutions, (as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time) and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate (from and after such date as the NYFRB shall commence to publish such composite rate).

"**Participant**" as defined in <u>Section 11.07(g)</u>.

"**Participant Register**" as defined in <u>Section 11.07(g)</u>.

"**Payment**" as defined in <u>Section 10.04(c)</u>.

"**Payment in Full**" means (a) the irrevocable payment in full in cash of all principal, interest (including interest accruing during the pendency of an insolvency or liquidation proceeding, regardless of whether allowed or allowable in such insolvency or liquidation proceeding), premium and make-whole, if any, on all Notes outstanding under this Agreement, (b) the irrevocable payment in full in cash in respect of all other Obligations or amounts that are outstanding under this Agreement (other than (i) indemnity obligations for which notice of potential claim has not been given and (ii) amounts due under a Secured Hedge Agreement to the extent such Secured Hedge Obligations are cash collateralized or otherwise subject to arrangements satisfactory to the applicable Secured Hedge Provider) and (c) the termination of all Commitments under this Agreement and all Secured Hedge Agreements (other than Secured Hedge Agreements that are cash collateralized or otherwise subject to arrangements satisfactory to the applicable Secured Hedge Provider).

"**Payment Notice**" as defined in <u>Section 10.04(d)</u>.

"**PBGC**" means the Pension Benefit Guaranty Corporation or any successor thereto.

"**Permitted Recipients**" as defined in <u>Section 11.18</u>.

"**Person**" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"**Plan**" means any employee pension benefit plan, as defined in Section 3(2) of ERISA, which (a) is sponsored, maintained or contributed to by the Issuer, a Restricted Subsidiary or, solely with respect to a plan subject to Title IV of ERISA, an ERISA Affiliate or (b) if the Issuer or a Restricted Subsidiary has liability thereunder, was at any time during the six (6) calendar years preceding the Closing Date, sponsored, maintained or contributed to by the Issuer or a Subsidiary or, to which Issuer or a Subsidiary has any liability, including any liability with respect to a plan subject to Title IV of ERISA on account of an ERISA Affiliate.

"**Pledge and Security Agreement**" means a Pledge and Security Agreement among each Note Party and the Collateral Agent in substantially the form of <u>Exhibit G-2</u> (or otherwise in form and substance reasonably acceptable to the Agent (at the direction of the Requisite Holders)) granting Liens and security interests in the Equity Interests of the Subsidiaries directly owned by such Note Parties and the Note Parties' other personal property constituting Collateral (as defined therein) in favor of the Collateral Agent for the benefit of the Secured Parties to secure the Obligations, as the same may be amended, restated, amended and restated, modified, supplemented or restated from time to time.

"**Primary Distributions**" as defined in Section <u>7.04(c)(i)(A)</u>.

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"**Prime Rate**" means the rate of interest per annum publicly quoted from time to time by *The Wall Street Journal* (or, if no longer quoted by *The Wall Street Journal*, such other national publication selected by the Requisite Holders in consultation with the Issuer) as the United States "prime rate".

**"Prior Period Adjustment"**means, for any Applicable CF Period, (a) the total Free Cash Flow (Back) from September<u>April</u> 30, 2024<u>2025</u> through the immediately preceding Applicable Cash Flow Period <u>minus</u> (b) the total Free Cash Flow Utilizations and the total Specified RPs declared, made or distributed from September <u>April</u> 30, 2024<u>2025</u> (or, in the event any Specified RPs are declared, made or distributed, from the date of declaring, making or distributing the first Specified RP) through the immediately preceding Applicable Cash Flow Period <u>minus</u> (c) any prepayment of the Notes pursuant to <u>Section 2.09(a)</u> from September<u>April</u> 30, 2024<u>2025</u> through the immediately preceding Applicable Cash Flow Period.

"**Pro Forma Basis**" means, as to the calculation of the Consolidated Total Net Leverage Ratio, Liquidity and the Asset Coverage Ratio, such calculation will be made on a pro forma basis, including giving pro forma effect to the following events as if such events occurred, for purposes of the Consolidated Total Net Leverage Ratio, on the first date of the then most recently ended period for which financial statements (including monthly financial statements and lease operating statements) are available and, for purposes of the Asset Coverage Ratio, immediately prior to such date of determination: any Asset Sale, any Casualty Event, any Material Acquisition, any Material Disposition, any Restricted Payment or any incurrence of Debt that occurred during such period (or thereafter and through and including the date of such determination, in the case of determinations made with respect to any action the taking of which hereunder is subject to compliance with the Consolidated Total Net Leverage Ratio or the Asset Coverage Ratio). Any cash or Cash Equivalents to be received by the Issuer or any Restricted Subsidiary in connection with the incurrence of Debt shall not be considered Unrestricted Cash in determining compliance on a "Pro Forma Basis" with the Consolidated Total Net Leverage Ratio for the incurrence of such Debt or any transaction substantially contemporaneously therewith. Pro forma calculations made pursuant to the definition of the term "Pro Forma Basis" shall be, with respect to the Consolidated Total Net Leverage Ratio, determined in good faith by a Responsible Officer of the Issuer and with supporting documentation reasonably acceptable to the Agent (at the direction of the Requisite Holders) and, with respect to the Asset Coverage Ratio, made in accordance with <u>Section 1.05</u> and <u>Section 6.01(u)</u>.

"**Pro Rata Share**" means, as to any Holder, with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 2.01(a)</u>, the percentage obtained by <u>dividing</u> (i) the Commitments of that Holder, by (ii) the aggregate Commitments of all Holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all payments, computations and other matters relating to the Notes of any Holder (other than the issuance of the Notes contemplated by <u>Section 2.01(a)</u>), the percentage obtained by <u>dividing</u> (i) the Exposure of that Holder by (ii) the aggregate Exposure of all Holders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) after Payment in Full, then the percentage obtained by <u>dividing</u> (i) the Exposure of that Holder by (ii) the aggregate Exposure of all Holders, in each case, shall be calculated on the last day prior to the Payment in Full that any Holder had an Exposure.

"**Probable Reserves**" means "probable oil and gas reserves" as such term is defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

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"**Projected Cash Flow From Operating Activities**" means (a) the projected Cash Flow From Operating Activities for the Applicable CF Period prepared by the Issuer in good faith and incorporating the expected revenue and expenses from ongoing operations of the Issuer and its Restricted Subsidiaries, including from Oil and Gas Properties, Swap Agreements, General and Administrative Costs, and interest expenses <u>plus</u> (b) to the extent constituting a General and Administrative Cost and included in Cash Flow From Operating Activities, any AUM Fees and/or Dividend Incentive Fees paid in cash during such period <u>minus</u> (c) to the extent included in Cash Flow From Operating Activities, any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries for such period, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments. Projected Cash Flow from Operating Activities shall be calculated using the Strip Price as of the date of determination.

"**Projections**" as defined in <u>Section 6.01(f)</u>.

"**Property**" means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights.

"**Proved Developed Producing Reserves**" means "proved developed producing oil and gas reserves" as such term is defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"**Proved Reserves**" means collectively, "proved oil and gas reserves," "proved developed producing oil and gas reserves," "proved developed non-producing oil and gas reserves" (consisting of proved developed shut-in oil and gas reserves and proved developed behind pipe oil and gas reserves), and "proved undeveloped oil and gas reserves," as such terms are defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"**Public Company**" as defined in <u>Section 11.18</u>.

"**Public Company Information**" as defined in <u>Section 11.18</u>.

"**Purchase Money Debt**" means Debt, the proceeds of which are used to finance the acquisition, construction, or improvement of inventory, equipment or other property in the ordinary course of business.

"**Qualified ECP Guarantor**" means, in respect of any Swap Agreement, each Note Party that (a) has total assets exceeding $10,000,000 at the time any guaranty of obligations under such Swap Agreement or grant of the relevant security interest becomes effective or (b) otherwise constitutes an "eligible contract participant" under the Commodity Exchange Act and can cause another Person to qualify as an "eligible contract participant" at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

"**Qualified Institutional Buyer**" as defined in <u>Section 5.11</u>.

"**RCRA**" has the meaning set forth in the definition of "**Environmental Laws**".

"**Recipient**" as defined in <u>Section 11.18</u>.

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"**Redemption**" means with respect to any Debt, the repurchase, redemption, prepayment, repayment, defeasance or any other acquisition or retirement for value (or the segregation of funds with respect to any of the foregoing) of such Debt. "**Redeem**" has the correlative meaning thereto.

"**Redemption Offer**" as defined in <u>Section 2.09(h)(i)</u>.

"**Redemption Payment**" as defined in <u>Section 2.09(h)(i)</u>.

"**Redemption Purchase Date**" as defined in <u>Section 2.09(h)(i)</u>.

"**Refinancing**" as defined in <u>Section 2.04</u>.

"**Register**" as defined in <u>Section 2.05(b)</u>.

"**Regulation T**" means Regulation T of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

"**Regulation U**" means Regulation U of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

"**Regulation X**" means Regulation X of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

"**Reinvestment Yield**" means, with respect to the Called Principal of any Note, 50 basis points (one-half of one percent) over the yield to maturity implied by (a) the yields reported as of 10:00 a.m. (New York, New York time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1" (or such other display as may replace Page PX1 on Bloomberg Financial Markets ("**Bloomberg**")) or, if Page PX1 (or its successor screen on Bloomberg) is unavailable, the Telerate Access Service screen which corresponds most closely to Page PX1 for the most recently issued actively traded U.S. Treasury securities having a maturity equal to the Remaining Life of such Called Principal as of such Settlement Date or (b) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (519) (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Life of such Called Principal as of such Settlement Date. Such implied yield will be determined, if necessary, by (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (ii) interpolating linearly between (A) the actively traded U.S. Treasury security with the maturity closest to and greater than such Remaining Life and (B) the actively traded U.S. Treasury security with the maturity closest to and less than such Remaining Life. The Reinvestment Yield shall be rounded to two decimal places.

"**Related Fund**" means, with respect to any Holder that is an investment fund, any other investment fund that is engaged in making, purchasing, holding or otherwise investing in bank loans, commercial loans, private placements and similar extensions of credit in the ordinary course and that is managed, advised or sub-advised by the Holder, an Affiliate of such Holder, or an entity that administers, advises, sub-advises or manages such Holder. Related Fund shall, with respect to any Holder, also include any swap, special purpose vehicles purchasing or acquiring security interests in collateralized loan obligations of such Holder or any other vehicle through which such Holder's investment advisors may leverage its investments from time to time.

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"**Release**" means any depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping, or disposing.

"**Remaining Life**" means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the Make-Whole Expiry Date.

"**Remaining Scheduled Payments**" means, with respect to the Called Principal of any Note, all payments of Interest in respect of such Called Principal that would be due on or after the Settlement Date through the Make-Whole Expiry Date with respect to such Called Principal if no payment of such Called Principal (or other payment of principal on the Notes) were made (to be calculated assuming the Adjusted Term SOFR Rate at the time the applicable notice of payment is delivered applies through the applicable period or, if no such notice is given, assuming the Adjusted Term SOFR Rate at the time of such payment applies through the applicable period).

"**Remedial Work**" as defined in <u>Section 6.09(a)</u>.

"**Requisite Holders**" means two or more Holders having or holding Exposure representing more than fifty percent (50%) of the sum of the aggregate Exposure of all Holders.

"**Reserve Report**" means (a) the Initial Reserve Report, (b) the Acquired Assets Reserve Report and (c)(i) any other subsequent report, in the form of the Initial Reserve Report (including an Aries database) and/or (ii) any other engineering data acceptable to the Agent (at the direction of the Requisite Holders), setting forth, as of the dates set forth in <u>Section 6.11(a)</u> , the Proved Reserves and Probable Reserves attributable to the Oil and Gas Properties of the Issuer and the other Note Parties, together with a projection of the rate of production and future net revenues, operating expenses (including production taxes and ad valorem expenses, if applicable) and capital expenditures with respect thereto as of such date, based upon pricing assumptions consistent with SEC reporting requirements at the time and reflecting Swap Agreements in place with respect to such production.

"**Reserve Report Certificate**" means a certificate of a Responsible Officer in substantially the form of <u>Exhibit J</u> certifying as to the matters in <u>Section 6.11(b)</u>.

"**Resolution Authority**" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"**Responsible Officer**" means, as to any Person, the chief executive officer, the president, any Financial Officer or any vice president or authorized signatory of such Person; <u>provided</u> that if such person is a limited partnership or limited liability company, any reference to a Responsible Officer of such Person shall be a reference to a Responsible Officer of such limited liability company or of the general partner or sole member, as applicable, of such Person. Unless otherwise specified, all references to a Responsible Officer herein shall mean a Responsible Officer of the Issuer.

"**Restricted Payment**" means (a) any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in the Issuer or any of its Subsidiaries, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such

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Equity Interests in the Issuer or any of its Subsidiaries or any option, warrant or other right to acquire any such Equity Interests in the Issuer or any of its Subsidiaries and (b) any payment of management fees, advisory fees, consulting fees or similar fees by the Issuer or any Restricted Subsidiary to any holders of their Equity Interests or any Affiliates thereof. Notwithstanding the foregoing, for purposes of this Agreement, AUM Fees and Dividend Incentive Fees shall constitute Restricted Payments and not General and Administrative Costs.

"**Restricted Subsidiary"** means any Subsidiary of the Issuer that is not an Unrestricted Subsidiary.

"**Rolling Period**" means, as of any date of determination, the most recently ended period of four (4) consecutive Fiscal Quarters for which financial statements have been delivered, or were required to be delivered, pursuant to <u>Section 6.01(a)</u> or <u>Section 6. 01(b)</u>, as applicable; <u>provided</u> that, for purposes of <u>Section 7.01</u>, "Rolling Period" means, as of the last day of any Fiscal Quarter, the period of four (4) consecutive Fiscal Quarters ending on such date.

"**S&P**" means Standard & Poor's Ratings Group, a division of The McGraw-Hill Companies, Inc., and any successor thereto that is a nationally recognized rating agency.

"**Sanctioned Country**" means, at any time, a country, region or territory which is itself, or whose government is, the subject or target of any Sanctions broadly restricting or prohibiting dealings with such country, territory or government (at the time of this Agreement, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, the non-government-controlled areas of the Kherson and Zaporizhzhia Regions of Ukraine, the Crimea Region of Ukraine, Cuba, Iran, North Korea and Syria).

"**Sanctioned Person**" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State or by the United Nations Security Council, the European Union, any European Union member state or His Majesty's Treasury of the United Kingdom, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any government that is itself the subject or target of sanctions or (d) any Person 50% or more owned or controlled by any such Person or Persons described in the foregoing <u>clauses (a)</u>, <u>(b)</u> or <u>(c)</u>.

"**Sanctions**" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, the United Nations Security Council, the European Union, any European Union member state, or His Majesty's Treasury.

"**SEC**" means the United States Securities and Exchange Commission or any Governmental Authority succeeding to any of its principal functions.

"**Second Engineer**" as defined in <u>Section 1.05(d)</u>.

"**Second Offer**" as defined in <u>Section 2.09(g)</u>.

"**Secondary Distributions**" as defined in <u>Section 7.04(c)(i)(A)</u>.

"**Secured Hedge Agreement**" means any Swap Agreement between a Note Party and a Secured Hedge Provider entered into (a) substantially concurrently with such Secured Hedge Provider becoming, or after such Secured Hedge Provider has become, party to the Hedge Intercreditor Agreement or (b) prior to the Closing Date, to the extent such Secured Hedge Provider was a Secured Hedge Provider on the Closing Date.

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"**Secured Hedge Obligations**" means all debts, liabilities, obligations, covenants and duties of any Note Party to any Secured Hedge Provider under any Secured Hedge Agreement, so long as such Secured Hedge Provider is party to, and remains subject to, the Hedge Intercreditor Agreement.

"**Secured Hedge Provider**" means, any Approved Counterparty that is party to, and remains subject to, the Hedge Intercreditor Agreement, either by signing the Hedge Intercreditor Agreement directly or by entry into a Joinder Supplement (as defined in the Hedge Intercreditor Agreement) pursuant to the terms and conditions of the Hedge Intercreditor Agreement.

"**Secured Parties**" means, collectively, the Agents, the Holders, the Secured Hedge Providers and any other Person owed Obligations, and "Secured Party" means any of them individually.

"**Securities Account**" means any "securities account" as defined in the UCC.

"**Securities Act**" means the Securities Act of 1933, as amended from time to time, the rules and regulations promulgated thereunder and any successor statute.

"**Seller**" means Three Rivers Royalty II, LLC.

"**Series A Preferred Shares**" means the 44,100 shares of preferred stock designated as "Series A Preferred Stock" pursuant to Section 1 of the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**Series B Preferred Shares**" means the 50,000 shares of preferred stock designated as "Series B Preferred Stock" pursuant to Section 1 of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

<u>"**Series C Preferred Shares**" means the fifty six thousand (56,000) shares of preferred stock designated as "Series C Preferred Stock" pursuant to Section 1 of the Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of March 26, 2025.</u> 

"**Settlement Date**" means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be prepaid pursuant to <u>Section 2.08</u> or <u>Section 2.09</u> as the context requires.

"**SOFR**" means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website.

"**SOFR Administrator**" means the NYFRB (or a successor administrator of the secured overnight financing rate).

"**SOFR Administrator's Website**" means the NYFRB's website, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"**Solvency Certificate**" means a Solvency Certificate of a Financial Officer substantially in the form of <u>Exhibit E</u>.

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"**Solvent**" means, with respect to any Person on any date of determination, that on such date (a) the present fair saleable value of the property of such Person and its Subsidiaries on a consolidated basis will be greater than the amount that will be required to pay the probable liability of such Person and its Subsidiaries on a consolidated basis on their debts and other liabilities, as such debts and other liabilities become absolute and matured; (b) such Person and its Subsidiaries on a consolidated basis will be able to pay their debts and liabilities, direct, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (c) such Person and its Subsidiaries on a consolidated basis will not have unreasonably small capital with which to conduct the businesses in which they are engaged as such businesses are conducted as of such date and are proposed to be conducted following such date.

"**Specified Acquisition**" means the acquisition by WhiteHawk Income Marcellus LLC of the Acquired Assets on the Closing Date pursuant to and in accordance with the terms and conditions of the Specified Acquisition Agreement.

"**Specified Acquisition Agreement**" means that certain Purchase and Sale Agreement between Three Rivers Royalty II, LLC, a Colorado limited liability company, as seller (the "**Seller**") and WhiteHawk Income Marcellus LLC, a Delaware limited liability company, as buyer, dated as of and as in effect on September 17, 2024, together with all exhibits, annexes, schedules and other disclosure or other letters thereto, collectively.

"**Specified Equity Contribution**" means, at any time, without duplication, (a) the amount of cash proceeds received by the Issuer as cash capital contributions from one or more holders of the Equity Interests of the Issuer during the Cure Period or (b) the amount of proceeds received from the issuance of common Equity Interests issued by the Issuer (or, on terms reasonably satisfactory to the Requisite Holders, other forms of Equity Interests (it being understood that preferred Equity Interests in form and substance substantially the same as the Series A Preferred Shares or Series B Preferred Shares as of the Closing Date shall be deemed to be on terms reasonably satisfactory to the Requisite Holders)) to one or more of the holders of the Equity Interests of the Issuer during the Cure Period (in each case, other than in connection with an issuance by the Issuer of Disqualified Capital Stock), which is made for the purpose of curing a failure to comply with <u>Sections 7.01(a)</u> or <u>7.01(b)</u> that would otherwise occur, pursuant to the exercise of a cure right pursuant to <u>Section 7.01(c)</u>.

<u>"**Specified Period A Equity Redemptions**" means redemptions by the Issuer of its (a) common Equity Interests in accordance with the Issuer's Organizational Documents in effect as of the date hereof,</u> <u>(b) Series B Preferred Shares in accordance with the Certificate of Designations of Series B Preferred</u> <u>Stock of WhiteHawk Income Corporation</u><u>, dated as of February 1, 2024 and/or (</u><u>c) Series C Preferred Shares in accordance with the Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of March 26, 2025, in each case as in effect as of the date hereof.</u>

**"Specified <u>Period B/C Level I</u> Equity Redemptions**" means redemptions by the Issuer of <u>its</u> (a) its common Equity Interests in accordance with the Issuer's Organizational Documents in effect as of the date hereof and/or (b) its Series B Preferred Shares in accordance with the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 , in each case as in effect as of the date hereof.

**<u>"Specified Period B/C Level II</u> <u>Equity Redemptions</u>**<u>" means redemptions by the Issuer of its</u> <u>(a) Series B</u> <u>Preferred Shares in accordance with the</u> <u>Certificate of Designations of Series B</u> <u>Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 and</u><u>/or (b) Series C Preferred Shares in accordance with the Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of March 26, 2025, in each case as</u> <u>in effect as of the date hereof.</u>

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"**Specified Event**" as defined in <u>Section 9.02</u>.

"**Specified Issuance Proceeds**" as defined in <u>Section 7.04(e)</u>.

"**Specified RPs**" as defined in <u>Section 7.04(d)</u>.

<u>"**Specified SJM Acquisition**" means the acquisition by Whitehawk Income Marcellus LLC of the Acquired SJM Assets on the First Amendment Effective Date pursuant to and in accordance with the terms and conditions of the Specified SJM Acquisition Agreement.</u> 

<u>"**Specified SJM Acquisition Agreement**" means that certain Purchase and Sale Agreement between Three Rivers Royalty, LLC, as seller, and WhiteHawk Income Marcellus LLC, as buyer, dated as of and as in effect on March 31, 2025, together with all exhibits, annexes, schedules and other disclosure or other letters thereto, collectively.</u> 

"**Strip Price**" means, at any time, (a) for each remaining month of the current calendar year, the monthly NYMEX Pricing for the remaining contracts in the current calendar year, (b) for each of the succeeding five complete calendar years, the monthly NYMEX Pricing, in each case, for each of the twelve months in each such calendar year, and (c) for the succeeding sixth complete calendar year, and for each calendar year thereafter, the annual monthly average of the NYMEX Pricing of the preceding fifth calendar year.

"**Subsidiary**" means, with respect to any Person (the "**Parent**") at any date, any other Person the accounts of which would be consolidated with those of the Parent in the Parent's consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other Person (a) of which Equity Interests representing more than 50% of the equity or more than 50% of the ordinary voting power (irrespective of whether or not at the time Equity Interests of any other class or classes of such Person shall have or might have voting power by reason of the happening of any contingency) or, in the case of a partnership, any general partnership interests are, as of such date, owned, controlled or held, or (b) the management decisions of which, as of such date, are otherwise controlled, in each case, directly, indirectly through one or more intermediaries, or both, by the Parent. Unless otherwise specified, each reference to "Subsidiary" means a Subsidiary of the Issuer.

"**Swap Agreement**" means any swap, forward, collar, future or derivative transaction or option or similar agreement, whether exchange traded, "over-the-counter" or otherwise (and for the avoidance of doubt, including on a prepaid or physically settled basis), involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions (including, but not limited to, as the context dictates, any agreement, contract or transaction that constitutes a "swap" within the meaning of Section 1a(47) of the Commodity Exchange Act); <u>provided</u> that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Issuer or its Restricted Subsidiaries shall be a Swap Agreement.

"**Swap Termination Value**" means, in respect of any one or more Swap Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Agreements, (a) for any date on or after the date such Swap Agreements have been closed out and termination value(s) determined in accordance therewith, such close-out and termination value(s) (including any unpaid amounts) and (b) for any date prior to the date referenced in <u>clause (a)</u>, the amount(s) determined as the mark-to-market value(s) for such Swap Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Agreements.

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"**Synthetic Leases**" means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, treated as operating leases on the financial statements of the Person liable (whether contingently or otherwise) for the payment of rent thereunder and which were properly treated as indebtedness for borrowed money for purposes of United States federal income taxes, if the lessee in respect thereof is obligated to either purchase for an amount in excess of, or pay upon early termination an amount in excess of, 80% of the residual value of the Property subject to such operating lease upon expiration or early termination of such lease

. "**Target Debt Balance**" means the aggregate principal amount of Notes as set forth in the following table:

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| | |
|:---|:---|
|  Closing Date | $65000000 |
|  January 31, 2025 | $63375000 |
|  April 30, 2025 | $61750000 <u>147750000</u> |
|  July 31, 2025 | $60125000 <u>143975000</u> |
|  October 31, 2025 | $58500000 <u>140200000</u> |
|  January 31, 2026 | $56875000 <u>136425000</u> |
|  April 30, 2026 | $55250000 <u>132650000</u> |
|  July 31, 2026 | $53625000 <u>128875000</u> |
|  October 31, 2026 | $52000000 <u>125100000</u> |
|  January 31, 2027 | $50375000 <u>121325000</u> |
|  April 30, 2027 | $48750000 <u>117550000</u> |
|  July 31, 2027 | $47125000 <u>113775000</u> |
|  October 31, 2027 | $45500000 <u>110000000</u> |
|  January 31, 2028 | $43875000 <u>106225000</u> |
|  April 30, 2028 | $42250000 <u>102450000</u> |
|  July 31, 2028 | $40625000 <u>98675000</u> |
|  October 31, 2028 | $39000000 <u>94900000</u> |
|  January 31, 2029 | $37375000 <u>91125000</u> |
|  April 30, 2029 | $35750000 <u>87350000</u> |
|  July 31, 2029 | $34125000 <u>83575000</u> |
|  <u>October 31, 2029</u> | <u>$79800000</u> |
|  <u>January 31, 2030</u> | <u>$76025000</u> |

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"**Tax**" or "**Taxes**" means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"**Tax on the Overall Net Income**" of a Person means (a) Taxes imposed on or measured by net income (however denominated), franchise Tax and branch profits Tax, in each case, imposed on a Person by the jurisdiction (or any political subdivision thereof) in which a Person is organized or in which that Person's applicable principal office (and/or, in the case of a Holder, its Applicable Office) is located or in which that Person (and/or, in the case of a Holder, its Applicable Office) is deemed to be doing business, and (b) any Tax imposed as a result of a present or former connection between such Person and the jurisdiction imposing such Tax (other than connections arising from such Person having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Note Document, or sold or assigned an interest in any Note or Note Document).

"**Tax Related Person**" means, with respect to a pass-through entity, any Person who is a beneficial owner of an interest in such pass-through entity who is required to include in income amounts realized (whether or not distributed) by such pass-through entity. The foregoing shall be determined under United States federal income tax principles.

"**Term SOFR Determination Day**" has the meaning assigned to it under the definition of Term SOFR Reference Rate.

"**Term SOFR Rate**" means the three-month Term SOFR Reference Rate at approximately 12:00 p.m., New York time, two (2) U.S. Government Securities Business Days prior to the commencement of the applicable Interest Period, as such rate is published by the CME Term SOFR Administrator.

"**Term SOFR Reference Rate**" means, for any day and time (such day, the "**Term SOFR Determination Day**"), with respect to any Interest Period, the rate per annum determined by the Agent as the three-month forward-looking term rate based on SOFR. If by 5:00 p.m. (New York City time) on such Term SOFR Determination Day, the "Term SOFR Reference Rate" has not been published by the CME Term SOFR Administrator, then the Term SOFR Reference Rate for such Term SOFR Determination Day will be the Term SOFR Reference Rate as published in respect of the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate was published by the CME Term SOFR Administrator, so long as such first preceding Business Day is not more than three (3) Business Days prior to such Term SOFR Determination Day.

"**Total Net Debt**" means, as of any date of determination, (a) the aggregate amount of Debt of the Issuer and its Consolidated Restricted Subsidiaries outstanding on such date, determined on a consolidated basis in accordance with GAAP consisting only of Debt of the Issuer and its Restricted Subsidiaries for borrowed money, drawn but unreimbursed obligations under letters of credit, obligations

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in respect of Finance Leases and other obligations for borrowed money evidenced by bonds, bankers' acceptances, debentures, notes or other similar instruments (excluding, for the avoidance of doubt, Debt under surety or other performance bonds and similar instruments), <u>minus</u> (b) the aggregate amount of the Note Parties' Unrestricted Cash on hand as of such date in an aggregate amount not to exceed $10,000,000.

"**Total PDP PV-10 Value**" means, as of any date of determination, with respect to the Proved Developed Producing Reserves constituting Oil and Gas Properties of the Note Parties, the net present value of future cash flows (discounted at ten percent (10%) *per annum*) calculated in accordance with <u>Section 1.05</u>.

"**Transaction Expenses**" means any fees or expenses incurred or paid by the Issuer or any of its Restricted Subsidiaries in connection with the Transactions, this Agreement and the other Note Documents and the transactions contemplated hereby.

"**Transactions**" means the transactions contemplated by the Note Documents to occur on or prior to the Closing Date, including (a) the execution, delivery and performance by the Note Parties of the Note Documents to which they are a party and the issuance of the Notes hereunder, (b) the consummation of the Specified Acquisition and the Refinancing and (c) the payment of related fees and expenses.

"**U.S. Tax Compliance Certificate**" as defined in <u>Section 2.14(e)(iii)</u>.

"**UCC**" means the Uniform Commercial Code as in effect in any applicable jurisdiction.

"**UK Financial Institution**" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"**UK Resolution Authority**" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"**United States Person**" has the meaning in Section 7701(a)(30) of the Internal Revenue Code.

"**Unrestricted Cash**" means cash or Cash Equivalents of the Issuer or any of its Restricted Subsidiaries that would not appear as "restricted" on a consolidated balance sheet of the Issuer or any of its Restricted Subsidiaries; <u>provided</u> that (a) cash or Cash Equivalents that would appear as "restricted" on a consolidated balance sheet of the Issuer or any of its Restricted Subsidiaries solely because such cash or Cash Equivalents are subject to a Control Agreement in favor of the Collateral Agent shall constitute Unrestricted Cash hereunder and (b) cash and Cash Equivalents shall be included in the determination of Unrestricted Cash only to the extent that such cash and Cash Equivalents are maintained in accounts subject to a Control Agreement as required hereunder.

"**Unrestricted Subsidiary**" means any Subsidiary of the Issuer designated as such on <u>Schedule 4.13</u>. Notwithstanding anything to the contrary, there shall be no Unrestricted Subsidiaries under the Note Purchase Agreement or any other Note Document and the Issuer shall not be permitted to designate any Subsidiary as an Unrestricted Subsidiary.

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"**U.S. Government Securities Business Day**" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"**USA PATRIOT Act**" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. 107-56), as amended.

"**Wholly -Owned Subsidiary**" means any Restricted Subsidiary of which all of the outstanding Equity Interests (other than any directors' qualifying shares mandated by applicable law), on a fully-diluted basis, are owned by the Issuer or one or more of the Wholly-Owned Subsidiaries or are owned by the Issuer and one or more of the Wholly-Owned Subsidiaries.

"**Withholding Agent**" means each of the Note Parties or the Agent.

"**Write-Down and Conversion Powers**" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

**Section 1.03.** <u>Accounting Terms</u>. Except as otherwise expressly provided herein, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Note Document, and the Issuer or the Requisite Holders shall so request, the Requisite Holders and the Issuer shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; <u>provided</u> that, until so amended, such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and the Issuer shall provide to Agent and Holders reconciliation statements requested by Agent, acting at the written direction of the Requisite Holders, (reconciling the computations of such financial ratios and requirements from then-current GAAP computations to the computations under GAAP prior to such change) in connection therewith. Financial statements and other information required to be delivered by the Issuer to Holders pursuant to <u>Sections 6.01(a)</u> and <u>6.01(b)</u> shall be prepared in accordance with GAAP as in effect at the time of such preparation. Subject to the foregoing, calculations in connection with the definitions, covenants and other provisions hereof shall utilize accounting principles and policies in conformity with those used to prepare the historical financial statements of the Issuer.

**Section 1.04.** <u>Interpretation, etc</u>. Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference. References herein to any Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an Exhibit, as the case may be, hereof unless otherwise specifically provided. References herein to a Schedule shall be considered a reference to such Schedule as of the Closing Date. The use herein of the word "include" or "including," when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to

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similar items or matters, whether or not no limiting language (such as "without limitation" or "but not limited to" or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter. The use of the words "repay" and "prepay" and the words "repayment" and "prepayment" herein shall each have identical meanings hereunder. Unless otherwise indicated, any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein (it is understood that the phrase "any functionally equivalent term", when used with respect to another term, means a term with substantially the same meaning as such other term)). The use herein of the phrase "to the knowledge of" with respect to a Note Party shall be a reference to the knowledge of the Responsible Officers of the applicable Note Party. Unless otherwise specified, whenever any obligation required hereunder shall be stated to be due or performed on a day that is not a Business Day, such obligation shall be required on the immediately succeeding Business Day and such extension of time shall be included in the satisfaction of the obligation required hereunder (except as set forth in the definition of "Maturity Date"). The use of the phrase "subject to" or words of like import as used in connection with Liens permitted under <u>Section 7.03</u> or otherwise and the permitted existence of any Liens permitted under <u>Section 7.03</u> or any other Liens shall not be interpreted to expressly or impliedly subordinate any Liens granted in favor of the Collateral Agent or any other Secured Party as there is no intention to subordinate the Liens granted in favor of the Collateral Agent and the other Secured Parties. The words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights. No provision of this Agreement or any other Note Document shall be interpreted or construed against any Person solely because such Person or its legal representative drafted such provision. The words "execution," "signed," "signature," and words of like import in any Note Document or any amendment or other modification thereof shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; <u>provided</u> that, notwithstanding anything herein to the contrary, the Agents are under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Agents pursuant to reasonable procedures approved by the Agents. All notices, approvals, consents, requests and any communications hereunder must be in writing, in English (<u>provided</u> that any such communication sent to an Agent hereunder must be delivered by electronic mail (if in such Agent's discretion), or in the form of a document that is signed manually or by way of a digital signature provided by DocuSign or AdobeSign (or such other digital signature provider as specified in writing to the Agents by the Issuer)). The Note Parties agree to assume all risks arising out of the use of using digital signatures and electronic methods to submit communications to an Agent, including without limitation the risk of the Agents acting on unauthorized instructions, and the risk of interception and misuse by third parties. Any reference in the Note Documents to the Agent or Collateral Agent exercising discretion or making determinations shall refer to the Agent or Collateral Agent exercising such discretion or making such determination at the direction of the Requisite Holders. Neither the Agent nor the Collateral Agent shall have any obligation to act in the absence of such direction.

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**Section 1.05.** Calculations of Total PDP PV-10 Value. Notwithstanding anything to the contrary contained herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for all calculations of Total PDP PV-10 Value hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) appropriate deductions shall be made for severance and ad valorem taxes, obligations and anticipated payments in respect of minimum volume commitments, capital expenditures and for operating, gathering, transportation and marketing costs required for the development, operation, production and sale of such oil and gas properties (including any contractually specified cost increases or escalators), plugging and abandonment (and other asset retirement obligations) or any other expenses in respect of such Oil and Gas properties (including expense incurred after the end of the expected economic lives of such Oil and Gas properties or contractually required increases in or escalators for expenses) in respect of such oil and gas properties,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without prejudice to <u>Section 6.12(c)(ii)</u>, appropriate deductions shall be made for the benefits associated with Proved Developed Producing Reserves constituting Oil and Gas Properties of the Note Parties for which reasonably satisfactory title information as determined by the Requisite Holders has not been provided to the Requisite Holders on at least 90% of the cash flows attributable to such Proved Developed Producing Reserves,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the pricing assumptions used in determining Total PDP PV-10 Value for any Oil and Gas properties shall be based upon the Strip Price as described in <u>clause (c)</u> below, to reflect the Note Parties' commodity Swap Agreements with Approved Counterparties then in effect so that the expected cash flows with respect to such Swap Agreements are included in the determination of Total PDP PV-10 Value, without duplication with the cash flows from the production subject to such Swap Agreements (it being understood that deferred premiums in respect of such Swap Agreements shall be deducted from such expected cash flows),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the cash flows derived from the pricing assumptions set forth in <u>clause (ii)</u> above shall be further adjusted for basis, quality and gravity differentials based on historical differentials and go-forward expectations,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the methodology applied towards any such calculation shall be consistent with, as reasonably determined by the Requisite Holders, the methodology applied in the Acquired Assets Reserve Report and the Initial Reserve Report, including without limitation the methodology applied to allocate fixed platform expenses to various reserve categories, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) notwithstanding the foregoing, wells shall only be included in the determination of Total PDP PV-10 Value to the extent that the Issuer receives revenue in the form of cash or Cash Equivalents pursuant to its ownership interest in such wells;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any such calculation, other than any calculation made as of the last day of any Fiscal Quarter with respect to <u>clause (i)</u> and <u>clause (iii)</u> below, shall be calculated on a pro forma basis for (i) the roll-off of production since the date of the most recently delivered Reserve Report, (ii) any change in the category of any Oil and Gas Property to another category of Oil and Gas Property (e.g., any "proved undeveloped reserves" becoming "proved developed reserves") and (iii) any disposition or acquisition of Oil and Gas Properties of the Note Parties constituting Proved Developed Producing Reserves, in each case, occurring or consummated by the Note Parties following the "as of" date of the Reserve Report most recently delivered by the Issuer pursuant to <u>Section 6.11</u> (<u>provided</u> that, in the case of <u>clause (ii)</u> and dispositions or acquisitions under <u>clause (iii)</u> above, the Requisite Holders shall have received, and such update shall be based on, updated reserve engineering projections, reasonably acceptable to the Requisite Holders, evaluating the Proved Developed Producing Reserves attributable to the Oil and Gas Properties subject thereto ("**Specified Reserve Updates**")) but prior to the date on which Total PDP PV-10 Value is being calculated;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any calculation of Total PDP PV-10 Value (i) on any date other than the last day of any Fiscal Quarter shall be made using (x) the information set forth in the Reserve Report most recently delivered by the Issuer pursuant to <u>Section 6.11</u> (as supplemented by any Specified Reserve Updates) and with an "as of" date that is such date of determination and (y) a Strip Price determined as the Strip Price for the date that is five (5) Business Days prior to such date of determination and (ii) on the last day of any Fiscal Quarter shall be made using (x) the information set forth in the Reserve Report with an "as of" date that is the same as such date and shall be based on reserve categories of the Oil and Gas properties on such date, and (y) a Strip Price determined as of the date that is forty (40) days after the end of the Fiscal Quarter to which the applicable corresponding certificate delivered pursuant to <u>Section 6.01(c)</u> pertains; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) within ten (10) Business Days of receiving an Asset Coverage Ratio certificate provided pursuant to <u>Section 6.01(c)</u> or <u>Section 6.01(u)</u>, the Requisite Holders may, in their sole discretion, (x) request additional information with respect to such Asset Coverage Ratio certificate, its related Reserve Report and/or (y) deliver written notice to the Issuer that the Requisite Holders do not agree with the information set forth in such Reserve Report, Specified Reserve Updates and/or the Issuer's calculation of the Asset Coverage Ratio (including any component thereof). Upon delivery of such written notice by the Requisite Holders, the Issuer and the Requisite Holders shall promptly engage in good faith discussions to come to an agreement with respect to such Reserve Report, Specified Reserve Updates and/or such calculation of the Asset Coverage Ratio (including any component thereof). If the Issuer and the Requisite Holders have not resolved any such disagreements within five (5) Business Days (or such longer period as is mutually agreeable to the Issuer and the Requisite Holders),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Requisite Holders shall have the right to elect within ten (10) Business Days (or such longer period as is mutually agreeable to the Issuer and the Requisite Holders) following the initial five (5) Business Day period to have an Approved Petroleum Engineer selected by the Requisite Holders (a "**Second Engineer**") audit the Reserve Report, Specified Reserve Updates and related calculations delivered by the Issuer; <u>provided</u> that such Second Engineer's audit and preparation of a revised Reserve Report and updated calculations of the Asset Coverage Ratio shall be completed within thirty (30) days of delivery of the Requisite Holder's notice of dispute (or such later date as is mutually agreeable to the Issuer and the Requisite Holders). The Issuer and the Requisite Holders will endeavor that such determination be provided as soon as possible (and agree to promptly provide such information as may be requested by the Second Engineer in connection with such determination). The Second Engineer's determination of fact as to such matters and as to the Total PDP PV-10 Value that will be used in the calculation of Asset Coverage Ratio shall be binding, absent manifest error. If the Second Engineer's calculation of Total PDP PV-10 Value is (x)(1) higher than or (2) lower by less than ten percent (10%) of, the disputed Reserve Report's calculation of Total PDP PV-10 Value, then the fees and expenses of the Second Engineer with respect to such applicable dispute shall be paid by the Requisite Holders and (y) lower by ten percent (10%) or greater of the disputed Reserve Report's calculation of Total PDP PV-10 Value, the fees and expenses of the Second Engineer with respect to such applicable dispute shall be paid by the Issuer, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event the Requisite Holders have not elected to have a Second Engineer audit the Reserve Report, Specified Reserve Updates and related calculations delivered by the Issuer in accordance with <u>clause (i)</u> above, the Issuer and the Requisite Holders shall refer such matters to the Approved Petroleum Engineer that most recently prepared a Reserve Report to make a determination (which shall be binding, absent manifest error) of fact as to such matters and as to the Total PDP PV-10 Value that will be used in the calculation of Asset Coverage Ratio. The Issuer and the Requisite Holders will endeavor that such determination be provided as soon as possible (and agree to promptly provide such information as may be requested by such Approved Petroleum Engineer in connection with such determination), and in any event within thirty (30) days of submission of such request to such Approved Petroleum Engineer (or such later date as is mutually agreeable to the Issuer and the Requisite Holders).

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During any such period of determination by the applicable Second Engineer or Approved Petroleum Engineer, as applicable (x) there shall be no Default or Event of Default arising from any non-compliance with <u>Section 7.01(b)</u> for the applicable test date and (y) no event or transaction that requires the calculation of, and compliance with, an Asset Coverage Ratio on a Pro Forma Basis, Distribution PF Basis or otherwise shall be entered into or consummated by the Issuer and its Restricted Subsidiaries. For the avoidance of doubt, if the final determination by such Second Engineer or Approved Petroleum Engineer, as applicable, would result in a finding that would cause the Issuer to fail to be in compliance with <u>Section 7.01(b)</u>, all rights of the Issuer under <u>Section 7.01(c)</u> shall apply.

**Section 1.06.** <u>Free Cash Flow Distributions and Prepayments Spreadsheet</u>. For clarity, <u>Appendix D</u> contains an illustrative example of the calculations set forth in <u>Section 2.09(a)</u>, <u>Section 7.04(e)</u> and <u>Section 7.05(h)</u> and the definitions of "Adjusted Cash Flow from Operating Activities", "Cash Flow From Operating Activities", "Distributable Free Cash Flow", "Distribution PF Basis", "Free Cash Flow (Back)", "Free Cash Flow (Forward)", "Free Cash Flow Utilization", and "Prior Period Adjustment" and the parties hereto agree that the principles and methodologies with respect to the calculations set forth in <u>Appendix D</u> shall, absent manifest error, govern with respect thereto.

**ARTICLE II** 

**PURCHASE AND SALE OF NOTES** 

**Section 2.01.** Note Purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>The Notes</u>. Subject to the terms and conditions hereof, <u>(i)</u> on the Closing Date, Issuer shall issue to each Holder, and each Holder shall purchase from Issuer (so long as all conditions precedent required hereby shall have then been satisfied or waived), a Note denominated in Dollars in an aggregate principal amount equal to such Holder's Pro Rata Share of $65,000,000 (the "**Notes**").<u>and (ii) on the First Amendment Effective Date, Issuer shall issue to each First Amendment Additional Note Holder, and each First Amendment Additional Note Holder shall purchase from Issuer (so long as all conditions precedent required hereby shall have then been satisfied or waived), a Note denominated in Dollars in an aggregate principal amount equal to such Holder's Pro Rata Share of $86,000,000 .</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notes purchased under this <u>Section 2.01</u> and repaid or prepaid may not be resold, repurchased or reborrowed. In addition, each Holder's Commitment shall be reduced in full and immediately terminated upon giving effect to the purchases of the Notes on the Closing Date.

**Section 2.02.** <u>The Notes; Purchases, Conversions and Continuations of Notes.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the absence of manifest error, the obligation of Issuer to repay to each Holder the aggregate amount of all Notes held by such Holder, together with interest accruing in connection therewith, shall be evidenced by the Notes made by Issuer payable to such Holder or its registered assigns with appropriate insertions. Interest on each Note shall accrue and be due and payable as provided herein or in the applicable Note. Each Note shall be due and payable as provided herein and shall be due and payable in full on the Maturity Date. Issuer may not issue, repay, and reissue Notes hereunder or under the Notes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The failure of any Holder to purchase any Note to be purchased by it as part of any purchase of Notes pursuant to <u>Section 2.01</u> shall not relieve any other Holder of its obligation, if any, hereunder to purchase its Notes on the date of such Note Purchase, but no Holder shall be responsible for the failure of any other Holder to purchase the Notes to be purchased by such other Holder on the date of any Purchase.

**Section 2.03.** <u>Requests for Notes</u>. Issuer must give to Agent written or electronic notice of any requested Note Purchase of Notes to be issued to, and purchased by, Holders. Each such notice constitutes a "**Note Purchase Notice**" hereunder and must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) specify the aggregate amount of any such Note Purchase and the date on which such Notes are to be purchased; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be received by Agent no later than 12:00 p.m., New York, New York time, ten (10) Business Days prior to the date on which any such Notes are to be purchased (or such earlier date as the Holders may agree (and have notified Agent) in their sole discretion), which Note Purchase Notice shall (i) be sent by the Agent to the Holders no later than 12:00 p.m., New York, New York time one Business Day following receipt by the Agent thereof and (ii) specify the accounts in to which the funds received by Agent on the Closing Date shall be disbursed (which may be in the form of the Flow of Funds).

Each such written request must be made in the form and substance of the Note Purchase Notice, duly completed. Upon receipt of any such Note Purchase Notice, Agent shall give each Holder prompt notice of the terms thereof. If all conditions precedent to such new Notes have been met (or waived), each Holder will on the date requested promptly remit to Agent, at Agent's Account, the amount of such Holder's new Note in immediately available funds, and upon receipt of all such funds, the Agent shall promptly make such funds available to the Issuer and the Issuer will deliver such Notes to the counsel for the Holders who shall promptly make such Notes available to each Holder. The failure of any Holder to purchase any Note hereunder shall not relieve any other Holder of its obligation hereunder, if any, to purchase its Note, but no Holder shall be responsible for the failure of any other Holder to purchase any Note hereunder.

**Section 2.04.** <u>Use of Proceeds</u>. <u>(a)</u> [GRAPHIC APPEARS HERE] The proceeds of the Notes <u>issued on the Closing Date</u> shall be used (a<u>i</u>) to pay a portion of the purchase price for the Specified Acquisition and (b<u>ii</u>)(i<u>A</u>) the repayment in full of the Existing Credit Facility (the "<u>Refinancing</u>") and (ii<u>B</u>) the<u>to make</u> redemption<u>s</u> of Series A Preferred Shares and (c<u>iii</u>) for general corporate purposes, including to pay the Transaction Expenses.<u>; and (b) the proceeds of the First Amendment Additional Notes issued on the First Amendment Effective Date shall be used (i) to pay a portion of the purchase price for the Specified SJM Acquisition, (ii) to redeem the Series A Preferred Shares in full and (iii) to pay the First Amendment Transaction Expenses.</u>

**Section 2.05.** <u>Evidence of Debt; Register; Holders' Books and Records; Notes.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Holders' Evidence of Debt</u>. Each Holder shall maintain in its internal records an account or accounts evidencing the Obligations of the Issuer to such Holder, including the amounts of the Notes held by such Holder and each repayment and prepayment in respect thereof. The failure to make any such recordation, or any error in such recordation, shall not affect any Obligations in respect of any applicable Notes. In the event of any inconsistency between the Register and any Holder's records, the recordations in the Register shall govern.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Register</u>. Agent shall maintain at Agent's Office a register for the recordation of the names and addresses of the Holders and principal amounts (and stated interest) of the Notes owing to, each Holder pursuant to the terms hereof from time to time (the "**Register**"). The Register shall be available for inspection by the Issuer and any Holder at any reasonable time and from time to time upon reasonable prior notice. The entries in the Register shall be conclusive and binding on the Note Parties, the Agent and each Holder, absent manifest error; <u>provided</u> that, failure to make any such recordation, or any error in such recordation, shall not affect the Note Parties' Obligations in respect of any Note. The Issuer, the Agent and the Holders shall treat each Person in whose name any Note shall be registered as the owner and the Holder thereof for all purposes hereof. The Issuer hereby designates the entity serving as Agent to serve as the Issuer's non-fiduciary agent solely for purposes of maintaining the Register as provided in this <u>Section 2.05</u>, and the Agent shall be entitled to all of the rights, privileges and immunities afforded to it hereunder in the performance of such duties. Notwithstanding the foregoing, the Agent shall not, or be deemed to, act hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

**Section 2.06.** Interest; Fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Interest</u>. Each Note shall at all times bear interest at a rate equal to the Applicable Margin then in effect (as such amount may be increased pursuant to <u>Section 2.06(c)</u>), paid in cash ("**Interest**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Interest Payment Dates</u>. Interest on each Note shall be due and payable on each Interest Payment Date to Holders of record in the Register on such Interest Payment Date; <u>provided</u> that, if Interest on any Note is required to be paid on any Settlement Date pursuant to <u>Section 2.08</u> or <u>Section 2.09</u>, and such Settlement Date is not an Interest Payment Date, then the amount of Interest due and payable on the next succeeding Interest Payment Date will be reduced by the amount of interest accrued to such Settlement Date and required to be paid (and is actually paid) on such Settlement Date pursuant to such <u>Section 2.08</u> or <u>Section 2.09</u>. All interest payable hereunder shall be computed on the basis of a year of three hundred sixty (360) days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of three hundred sixty-five (365) days (or three hundred sixty-six (366) days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Default Interest</u>. Notwithstanding the foregoing, (1) automatically upon the occurrence and during the continuance of an Event of Default arising under <u>Section 9.01(a)</u>, <u>Section 9.01(b)</u>, <u>Section 9.01(h)</u> or <u>Section 9.01(i)</u> and (2) if any other Event of Default has occurred and is continuing, then if the Requisite Holders so elect by written notice to the Issuer (with a copy to the Agent), the principal amount of all Notes outstanding and, to the extent permitted by applicable law, any due and unpaid interest payments on the Notes or any unpaid fees or other unpaid amounts owed hereunder (other than default interest occurring under this <u>Section 2.06(c)</u>), shall, commencing on the date of occurrence of the applicable Event of Default, bear interest (including post-petition interest in any proceeding under the Code or other applicable bankruptcy laws, whether or not allowed in such a proceeding) payable in cash on demand at a rate that is two percent (2.0%) per annum in excess of the interest rate otherwise payable hereunder with respect to the Notes to the date of payment to the Agent. Payment or acceptance of the increased rates of interest provided for in this <u>Section 2.06(c)</u> is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Agents or any Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Fees</u>. Issuer will pay to each of the Agents and EIG for their own respective accounts, the fees as set forth in the Agent Fee Letter and the Fee Letter, respectively.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Calculations</u>. The Agent shall promptly (but in any event no later than three (3) Business Days to the Issuer and two (2) Business Days to the Holders prior to any Interest Payment Date or the date of any other amount payable under this <u>Section 2 .06</u>) notify the Issuer and the Holders of the effective date and the amount of each Interest, fee or other payment under this <u>Section 2. 06</u>. Each determination of an interest rate, interest payment amount or fee payment amount by the Agent pursuant to any provision of this Agreement shall be conclusive and binding on the Issuer and the Holders in the absence of manifest error. <u>The Agent shall provide the Issuer notice of the calculation of Term SOFR</u> <u>Rate via email prior to the commencement of the applicable Interest Period.</u>

**Section 2.07.** <u>Repayment of Notes</u>. If any principal or interest amount payable under the Notes remains outstanding on the Maturity Date, such amount will be paid in full by the Issuer to the Agent on behalf of the Holders in immediately available funds on the Maturity Date, together with any amounts required to be paid hereunder, including pursuant to <u>Section 2.06</u>.

**Section 2.08.** <u>Voluntary Prepayments</u>. The Issuer may prepay the Notes on any Business Day in whole or in part (together with any amounts due pursuant to <u>Section 2.06</u> and <u>Section 2.11(g)</u>) in an aggregate minimum principal amount equal to (a) if being paid in whole, the Obligations and (b) if being paid in part, (A) $1,000,000 and integral multiples of $500,000 in excess of that amount or (B) in an amount equal to the difference of the aggregate outstanding principal amount of the Notes on the date of such prepayment and the immediately subsequent Target Debt Balance. All such prepayments shall be made upon not less than three (3) Business Days' prior written notice, in each case given to Agent by 12:00 p.m. (New York, New York time) on the date required, which, upon receipt by the Agent, shall be promptly delivered to the Holders. Upon the giving of any such notice, the principal amount of the Notes specified in such notice shall become due and payable on the prepayment date specified therein. Any notice of prepayment described above may provide that such prepayment is conditioned upon the satisfaction of one of more conditions precedent. Any such voluntary prepayment shall be applied as specified in <u>Section 2.10</u>.

**Section 2.09.** <u>Mandatory Prepayments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>CF Sweep Dates</u>. On each "CF Sweep Date" as set forth in <u>Appendix C</u>, commencing with January 31, 2025, the Issuer shall prepay the Notes in an aggregate principal amount equal to the lesser of (i) the difference between (A) the aggregate outstanding principal amount of Notes and (B) the then current Target Debt Balance, in each case as of the date of such prepayment and (ii) Liquidity, calculated on a Distribution PF Basis, in excess of the Minimum Liquidity Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Casualty Events</u>. Upon receipt by the Issuer or any of its Affiliates of any Net Casualty Event Proceeds in excess of $500,000 for any individual Casualty Event or series of related Casualty Events or $1,000,000 in the aggregate, the Issuer shall within three (3) Business Days after the date of receipt of such Net Casualty Event Proceeds prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of the Net Casualty Event Proceeds and/or, so (A) long as no Default or Event of Default has occurred and is continuing and (B) both (I) as of the date of delivery of the certificate of the Responsible Officer of the Issuer described in the proviso below and (II) as of the date of reinvestment of Net Casualty Event Proceeds (as evidenced with a certificate of the Responsible Officer as of the date of such reinvestment delivered by the Issuer to the Agent), the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00, in each case on a Pro Forma Basis, reinvest such Net Casualty Event Proceeds in make Investments in Oil & Gas Properties or Equity Interests of any entity with no material assets other than Oil and Gas Properties; <u>provided further</u> that promptly following any determination by the Issuer of an election to invest Net Casualty Event Proceeds pursuant to this <u>Section 2.09(b)</u>, the Issuer shall, within thirty (30) days after the receipt of such Net Casualty Event Proceeds, deliver to the Agent a certificate of a Responsible Officer of the Issuer specifying that the Issuer intends to reinvest such Net Casualty Event Proceeds; <u>provided</u> that, if any such Net Casualty Event Proceeds are not reinvested within three-hundred sixty (360) days, the Issuer shall prepay the Notes in an amount equal to the amount of any Net Casualty Event Proceeds from Casualty Event(s) that are not applied or (re-)invested as set forth in this <u>Section 2.09(b)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Issuance of Debt</u>. Upon receipt by or on behalf of any Note Party or any of their Subsidiaries of any cash proceeds from the incurrence of any Debt (other than Debt that is permitted hereunder) by such Person, the Issuer shall prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of such proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Asset Sales</u>. Upon receipt by the Issuer or any of its Affiliates of any Net Asset Sale Proceeds in excess of $1,000,000 for any non-ordinary course individual Asset Sale or series of related Asset Sales or $2,000,000 in the aggregate, the Issuer shall (i) within three (3) Business Days after the date of receipt of such Net Asset Sale Proceeds prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of the Net Asset Sale Proceeds and/or, so (A) long as no Default or Event of Default has occurred and is continuing and (B) both (I) as of the date of delivery of the certificate of the Responsible Officer of the Issuer described in the proviso below and (II) as of the date of reinvestment of Net Asset Sale Proceeds (as evidenced with a certificate of the Responsible Officer as of the date of such reinvestment delivered by the Issuer to the Agent), the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00, in each case on a Pro Forma Basis, reinvest such Net Asset Sale Proceeds in make Investments in Oil & Gas Properties or Equity Interests of any entity with no material assets other than Oil and Gas Properties; <u>provided further</u> that promptly following any determination by the Issuer of an election to invest Net Asset Sale Proceeds pursuant to this <u>Section 2.09(d)</u>, the Issuer shall, within thirty (30) days after the receipt of such Net Asset Sale Proceeds, deliver to the Agent a certificate of a Responsible Officer of the Issuer specifying that the Issuer intends to reinvest such Net Asset Sale Proceeds; <u>provided</u> that, if any such Net Asset Sale Proceeds are not reinvested within three-hundred sixty (360) days, the Issuer shall prepay the Notes in an amount equal to the amount of any Net Asset Sale Proceeds from Asset Sale(s) that are not applied or (re-)invested as set forth in this <u>Section 2.09(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Specified Equity Contribution</u>. Not later than five (5) Business Days following receipt by the Issuer of any Cure Amount in accordance with <u>Section 7.01(c)</u>, the Issuer shall prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of any such Cure Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Prepayment Notice</u>. All prepayments made in accordance with <u>Section 2.09(b)</u> through <u>Section 2.09(e)</u> shall be made upon not less than eight (8) Business Days' prior written notice (or such shorter period as may be consented to by the Requisite Holders, <u>provided</u>, that the time period for any right for the Holders to waive such prepayment pursuant to <u>Section 2.09(g)</u> shall be reduced accordingly), which notice shall be sent by the Agent to the Holders one (1) Business Day following receipt by the Agent thereof. Each such notice shall include the calculation of the amount of the applicable proceeds giving rise to the prepayment, as applicable, and refer to the section under this Agreement relating to such prepayment. In connection with any prepayment required under <u>Section 2.09(b)</u> through <u>Section 2 .09(e)</u>, in the event that the Issuer shall subsequently determine that the actual amount received exceeded the amount set forth in such notice, the Issuer shall promptly make an additional prepayment of the Notes in an amount equal to such excess, and the Issuer shall concurrently therewith deliver to Agent a notice of prepayment demonstrating the calculation of such excess. Any notice of prepayment may provide that such prepayment is conditioned upon the satisfaction of one or more conditions precedent. Subject to <u>Section 2.09(g)</u>, the Issuer shall prepay the Notes on the date set forth in the applicable prepayment notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Holder Right to Waive</u> . Notwithstanding anything in this Agreement to the contrary, each Holder, in its sole discretion, may, but is not obligated to, waive the Issuer's requirements to make any prepayments pursuant to <u>Section 2.09(b)</u> through <u>Section 2.09(e)</u> with respect to such Holder's Pro Rata Share of such prepayment. Upon the dates set forth in <u>Section 2.09</u> for the delivery of any such prepayment notice, Issuer shall promptly notify the Agent of the amount that is available to prepay the Notes. Promptly after the date of receipt of such notice, the Agent shall provide written notice (the "**First Offer**") to the Holders of the amount available to prepay the Notes. Any Holder declining such prepayment (a "**Declining Holder**") shall give written notice thereof to the Agent by 10:00 a.m. New York, New York time no later than three (3) Business Days prior to such prepayment date. The Agent shall promptly provide written notice (the "**Second Offer**") to the Holders other than the Declining Holders (such Holders being the "**Accepting Holders**") of the additional amount available (due to such Declining Holders' declining such prepayment) to prepay Notes owing to such Accepting Holders, such available amount to be allocated on a *pro rata* basis among the Accepting Holders that accept the Second Offer. Any Holders declining prepayment pursuant to such Second Offer shall give written notice thereof to the Agent by 10:00 a.m. New York, New York time one (1) Business Day prior to such prepayment date, and Agent shall promptly notify Issuer of the aggregate amount of the prepayment. Amounts remaining after the allocation of accepted amounts with respect to the First Offer and the Second Offer to Accepting Holders shall be retained by Issuer or the relevant Subsidiary for working capital and general corporate purposes, subject to the other covenants contained in this Agreement. For the avoidance of doubt, any Holder or Accepting Holder that does not deliver a notice declining the applicable payment by the dates and times set forth above shall be deemed to have accepted such prepayment offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Redemption Offer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon the occurrence of the sale of all or substantially all the properties of the Note Parties and their Restricted Subsidiaries, taken as a whole, or a Change in Control, the Issuer shall make an offer to repurchase all the Holders' Notes pursuant to an irrevocable offer ("**Redemption Offer**") on the terms set forth in this <u>Section 2.09(h)</u>; <u>provided</u> that such notice may be conditioned on the consummation of the transactions described in such notice. In the Redemption Offer, Issuer will (A) offer to make a cash payment (a "**Redemption Payment**") equal to the amount that would have been payable with respect to such repurchased Notes had the Issuer prepaid such Notes pursuant to <u>Section 2.08 plus</u>, for the avoidance of doubt, the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or the Prepayment Fee, as applicable, in each case pursuant to <u>Section 2.11(g)</u> and (B) set forth the date for such purchase, which shall be the date when such transaction is consummated, in which case it shall be the next Business Day thereafter (the "**Redemption Purchase Date**"). No less than three (3) Business Days prior to the Redemption Purchase Date, the Issuer will send an irrevocable written notice to each Holder (<u>provided</u> that such notice may be conditioned on the consummation of the transactions described in such notice), with a copy to the Agent, describing the transaction or transactions that constitute the sale of all or substantially all the properties of the Note Parties and their Restricted Subsidiaries, taken as a whole, or a Change of Control (as applicable) and stating:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) that the Redemption Offer is being made pursuant to this <u>Section 2.09(h)</u> and that the Issuer is repurchasing all outstanding Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the purchase price and the Redemption Purchase Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) that, unless the Issuer defaults in the payment of the Redemption Payment, all Notes will cease to accrue interest after the Redemption Purchase Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Issuer will, no later than 12:00 p.m. (New York, New York time) on the Redemption Purchase Date deposit with the Agent an amount equal to the Redemption Payment in respect of all Notes outstanding.

Upon the giving of any such notice, the principal amount of all of the Holders' Notes shall become due and payable on the Redemption Purchase Date (<u>provided</u> that any notice described above may provide that such Redemption Payment is conditioned upon the satisfaction of one or more conditions precedent). Upon receipt of the Redemption Payment from Issuer, the Agent will promptly wire transfer (based on each Holder's wire transfer instructions, which each Holder shall have provided to the Agent (along with completion of Agent's funds transfer requirements) at least five (5) Business Days prior to the Redemption Purchase Date) to each Holder of Notes the Redemption Payment for such Notes. Any Note paid in full will cease to accrue interest on and after the Redemption Purchase Date, unless the Issuer defaults in making the Redemption Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding any provision to the contrary, in lieu of the Issuer making a Redemption Offer (A) a third party may make the Redemption Offer in the manner, at the time and otherwise in compliance with the requirements set forth in <u>Section 2.09(f)</u> hereof applicable to a Redemption Offer made by the Issuer and purchases all Notes outstanding, or (B) in connection with or in contemplation of the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, the Issuer may make an irrevocable offer to purchase (an "**Alternate Offer**") all Notes outstanding at a cash price equal to or higher than the Redemption Payment and purchase all Notes outstanding in accordance with the terms of the Alternate Offer prior to the time when the payment by the Issuer would be required pursuant to a Redemption Offer. Notwithstanding anything to the contrary contained herein, a Redemption Offer or Alternate Offer may be made in advance of the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, conditioned upon the consummation of such sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, if a definitive agreement is in place for the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control at the time the Redemption Offer or Alternate Offer is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Agreement, the Issuer will comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations described in this Agreement by virtue thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) For the avoidance of doubt, the Issuer may, at its option, prepay all of the Notes pursuant to the provisions of <u>Section 2.08</u> (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or the Prepayment Fee, as applicable, due thereunder) in lieu of making a Redemption Offer pursuant to this <u>Section 2.09(h)</u>.

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**Section 2.10.** Application of Payments. Any payment of any Note made pursuant to <u>Sections 2.07</u>, <u>2.08</u>, or <u>2.09</u> shall be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to each of the Agent and Collateral Agent in their capacities as such and Agent-related Indemnitees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations, constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section 11.03</u> or the other Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes being repaid or prepaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u> resulting from the prepayment of principal under <u>clause (e)</u> below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>fifth</u>, *pro rata* to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Issuer at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>sixth</u>, pro rata to any other Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Issuer or as otherwise required by any Governmental Requirement.

**Section 2.11.** <u>General Provisions Regarding Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments by the Issuer of principal, interest, fees and other Obligations shall be made in Dollars in same day funds without recoupment, setoff, counterclaim or other defense, and delivered to Agent not later than 1:00 p.m. (New York, New York time) on the date due to Agent's Account for the account of the Holders; the Agent shall give the Holders prompt written notice of amounts due, but not received by the Agent, on such due date and at such time. Funds received by Agent after that time on such due date may be deemed by the Requisite Holders to have been paid by the Issuer on the next Business Day for the purposes of calculating interest thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All prepayments in respect of the principal amount of any Note shall be accompanied by payment of accrued interest on the principal amount being repaid or prepaid and other amounts due and payable thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Agent shall promptly distribute by wire transfer to each Holder to the account indicated in writing to Agent by each applicable Holder, such Holder's applicable Pro Rata Share of all payments and prepayments of principal and interest due hereunder, together with all other amounts due thereto, including all fees payable with respect thereto, to the extent received by Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Whenever any payment to be made hereunder shall be stated to be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Agent may, at the direction of the Requisite Holders, deem any payment by or on behalf of the Issuer hereunder that is not made in same day funds prior to 1:00 p.m. (New York, New York time) to be a non-conforming payment. Any such payment may be deemed by the Requisite Holders to have been received by Agent on the later of (i) the time such funds become available funds and (ii) the applicable next Business Day. Interest and fees shall continue to accrue on any principal as to which a non-conforming payment is made until such funds become available funds (but in no event less than the period from the date of such payment to the next succeeding applicable Business Day) at the applicable rate determined pursuant to <u>Section 2.06(a)</u> from the date such amount was due and payable until the date such amount is paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If an Event of Default shall have occurred and not otherwise been waived, all payments or proceeds received by Agent hereunder in respect of any of the Obligations shall be applied <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Agent, the Collateral Agent and Agent-related Indemnitees (including any costs and expenses related to foreclosure or realization upon, or protecting, Collateral) in its capacity as such, <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section 11.03</u> or the other Note Documents, <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes, <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u> resulting from the prepayment of principal under clause fifth below), <u>fifth</u>, pro rata to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Issuer at such time, <u>sixth</u>, pro rata to any other Obligations, and <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Issuer or as otherwise required by any Governmental Requirement*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Make-Whole Amount; Prepayment Fee</u>. Upon any prepayment of the Notes (except for any prepayment made pursuant to <u>Section 2.07</u> or <u>Section 2.09(a)</u> or <u>Section 2.09(b)</u> or <u>Section 2.09(e)</u>), whether such prepayment occurs as a result of an acceleration of the Notes pursuant to <u>Section 9.01</u> (whether automatic or optional acceleration) following an Event of Default, at the Issuer's option or otherwise), the Issuer shall make an additional payment to the Agent for the account of the Holders in an aggregate amount equal to (i) if such prepayment or acceleration occurs on or prior to September 17<u>March 31</u>, 2026<u>2027</u> (the "**Make-Whole Expiry Date**"), the Make-Whole Amount determined for the Settlement Date with respect to such principal amount <u>plus</u> 2.0% of the principal of such prepaid or accelerated amount <u>plus</u> any accrued and unpaid interest and other amounts due and payable thereon or (ii) if such prepayment or acceleration occurs thereafter, a fee (the "**Prepayment Fee**"), in an amount equal to the product of (A) if such prepayment or acceleration occurs following the Make-Whole Expiry Date and on or prior to September 17<u>March 31</u>, 2027<u>2028</u>, 2.00% of the principal of such prepaid or accelerated amount and (B) if such prepayment occurs after September 17<u>March 31</u>, 2027<u>2028</u>, 0.00% of such prepaid or accelerated amount, <u>plus</u>, in each case for clause (ii), any accrued and unpaid interest and other amounts due and payable thereon. The Agent shall have no obligation to calculate or verify the calculations of the Make-Whole Amount or Prepayment Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Presentment of the Notes by the Holder is not a condition to receipt of payment on the Maturity Date or any earlier redemption.

**Section 2.12.** <u>Ratable Sharing</u>. The Holders hereby agree among themselves that if any of them shall, whether by voluntary payment (other than a voluntary prepayment of Notes purchased and applied in accordance with the terms hereof), through the exercise of any right of set off or banker's lien, by counterclaim or cross action or by the enforcement of any right under the Note Documents or otherwise, or as adequate protection of a deposit treated as cash collateral under the Code, receive payment or reduction of a proportion of the aggregate amount of principal, interest, fees and other

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amounts then due and owing to such Holder hereunder or under the other Note Documents (collectively, the "**Aggregate Amounts Due**" to such Holder) which is greater than the proportion received by any other Holder in respect of the Aggregate Amounts Due to such other Holder, then the Holder receiving such proportionately greater payment shall (a) notify Agent and each other Holder of the receipt of such payment and (b) apply a portion of such payment to purchase Notes (which it shall be deemed to have purchased from each seller of a Note simultaneously upon the receipt by such seller of its portion of such payment) in the ratable Aggregate Amounts Due to the other Holders so that all such recoveries of Aggregate Amounts Due shall be shared by all Holders in proportion to the Aggregate Amounts Due to them; <u>provided</u> that, if all or part of such proportionately greater payment received by such purchasing Holder is thereafter recovered from such Holder upon the bankruptcy or reorganization of the Issuer or otherwise, those purchases to that extent shall be rescinded and the purchase prices paid for such Notes shall be returned to such purchasing Holder ratably to the extent of such recovery, but without interest. The Issuer expressly consents to the foregoing arrangement and agrees (i) that any Holder of a Note so purchased may exercise any and all rights of banker's lien, set off or counterclaim with respect to any and all monies owing by the Issuer to that Holder with respect thereto as fully as if that Holder were owed the amount of the Note held by that Holder and (ii) to the extent it may effectively do so under applicable law, that any Holder acquiring a participation pursuant to the foregoing arrangements may exercise against the Issuer rights of setoff and counterclaim with respect to such participation as fully as if such Holder were a direct creditor of the Issuer in the amount of such participation. The provisions of this <u>Section 2. 12</u> shall not be construed to apply to (A) any payment made by the Issuer pursuant to and in accordance with the express terms of this Agreement, or (B) any payment obtained by a Holder as consideration for the assignment of or sale of a participation in any of its Notes or Obligations to any assignee or participant, other than to the Issuer or any Subsidiary thereof (as to which the provisions of this <u>Section 2.12</u> shall apply).

**Section 2.13.** <u>Increased Costs</u>. Subject to the provisions of <u>Section 2.14</u> (which shall be controlling with respect to the matters covered thereby), in the event that any Holder or the Agent shall determine (which determination shall, absent manifest error, be final and conclusive and binding upon all parties hereto) that any Governmental Requirement, or any change therein or in the interpretation, administration or application thereof (including the introduction of any new law, treaty or governmental rule, regulation or order), or any determination of a court or Governmental Authority, in each case that becomes effective after the date hereof, or compliance by such Holder or the Agent with any guideline, request or directive issued or made after the date hereof by any central bank or other Governmental Authority or quasi-Governmental Authority (whether or not having the force of law): (a) subjects such Holder (or its Applicable Office) or the Agent to any additional Tax (excluding any Indemnified Tax, any Connection Income Tax and any Excluded Tax (other than a tax described in clause (a) of Tax on the Overall Net Income)) with respect to this Agreement or any of the other Note Documents or any of its obligations hereunder or thereunder or any payments to such Holder (or its Applicable Office) or the Agent of principal, interest, fees or any other amount payable hereunder or its deposits, reserves or capital attributable thereto; (b) imposes, modifies or holds applicable any reserve (including any marginal, emergency, supplemental, special or other reserve), special deposit, compulsory loan, FDIC insurance or similar requirement against assets held by, or deposits or other liabilities in or for the account of, or advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of such Holder or (c) imposes any other condition (other than with respect to a Tax matter) on or affecting such Holder (or its Applicable Office) or its obligations hereunder; and the result of any of the foregoing is to increase the cost to such Holder or the Agent of agreeing to purchase, purchasing or maintaining Notes hereunder or to reduce any amount received or receivable by such Holder (or its Applicable Office) or the Agent with respect thereto; then, in any such case, Issuer shall promptly pay to such Holder or the Agent, upon receipt of the statement referred to in the next sentence, such additional amount or amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise as such Holder shall reasonably determine) as may be necessary to compensate such Holder or

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the Agent for any such increased cost or reduction in amounts received or receivable hereunder. Such Holder or the Agent shall deliver to Issuer (and in the case of such Holder, with a copy to Agent) a written statement, setting forth in reasonable detail the basis for calculating the additional amounts owed to such Holder or the Agent under this <u>Section 2.13</u>, which statement shall be conclusive and binding upon all parties hereto absent manifest error; <u>provided</u> that the Issuer shall not be required to compensate such Holder pursuant to this <u>Section 2.13</u> for any increased costs or reductions incurred more than three hundred sixty-five (365) days prior to the date that such Holder delivers written notice to the Issuer pursuant to this <u>Section 2. 13</u> setting forth such Holder's intention to claim compensation therefor; <u>provided</u>, <u>further</u>, that if the circumstances giving rise to such increased costs or reductions is retroactive, then the 365-day period referred to above shall be extended to include the period of retroactive effect thereof.

**Section 2.14.** <u>Taxes; Withholding, etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payments to Be Free and Clear</u>. All sums payable by or on account of any Note Party hereunder and under the other Note Documents shall (except to the extent otherwise required by law) be paid free and clear of, and without any deduction or withholding on account of, any Tax imposed, levied, collected, withheld or assessed by any Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Withholding of Taxes</u>. If any Withholding Agent is required by law (as determined in the good faith discretion of the applicable Withholding Agent) to make any deduction or withholding for or on account of any Tax from any sum paid or payable under any of the Note Documents: (i) the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay (or cause to be paid) any such Tax to the relevant Governmental Authority and (ii) if such Tax is an Indemnified Tax, the sum payable by such Note Party in respect of which the relevant deduction or withholding is required shall be increased to the extent necessary to ensure that after any such deduction or withholding of Indemnified Taxes (including such deductions and withholdings applicable to additional sums payable under this Section), the Agent or such Holder, as the case may be, and each of their Tax Related Persons, receives on the due date a net sum equal to what it would have received had no such deduction or withholding of Indemnified Taxes been required; <u>provided</u> that, for the avoidance of doubt, no such additional amount shall be required to be paid to any Holder or the Agent (including any of their Tax Related Persons) under <u>clause (ii)</u> above for, and Indemnified Taxes shall not include, any of the following Taxes, (A) in the case of the Agent or Holder (including any of their Tax Related Persons), any U.S. federal withholding Tax in effect and applicable (x) as of the date on which Agent or Holder becomes a party to this Agreement (except to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder's assignor (including to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder's assignor's Tax Related Persons) immediately before such Holder became a party to this Agreement), and (y) in the case of a new Tax Related Person that becomes a Tax Related Person of an existing Holder after the relevant date described in <u>(x)</u>, above, the date on which such new Tax Related Person becomes a Tax Related Person (except to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such existing Holder described in (x), above, (including to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such existing Holder's existing Tax Related Persons but only to the extent that such new Tax Related Person acquires the interests of such existing Tax Related Person) immediately before such new Tax Related Person became a Tax Related Person of such existing Holder), or (z) the date on which such Holder changes its Applicable Office (except to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder (including to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder's Tax Related Persons) immediately before it changed its Applicable Office), (B) any Tax on the Overall Net Income of the Holder or Agent (or any of their Tax Related Persons), (C) any U.S. Tax imposed under FATCA or (D) any Tax attributable to the Holder's or the Agent's failure to comply with <u>Section 2.14(e)</u> (all such amounts described in this proviso, "**Excluded Taxes**"). The Note Parties shall deliver to Agent official receipts (or certified copies of the receipts) or other evidence of such payment reasonably satisfactory to the Requisite Holders in respect of any Taxes payable hereunder within thirty (30) days after payment of such Taxes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Taxes</u>. In addition, and without duplication, the Note Parties shall pay all Other Taxes to the relevant Governmental Authorities in accordance with applicable law. The Note Parties shall deliver to Agent official receipts (or certified copies of the receipts) or other evidence of such payment reasonably satisfactory to the Requisite Holders in respect of Other Taxes payable hereunder as soon as practicable after payment of such Taxes or Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification</u>. Without duplication of any Taxes covered by <u>Sections 2.14(b)</u> or <u>(c)</u>, the Note Parties shall indemnify the Agent and each Holder, within ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this <u>Section 2.14</u>) paid or incurred by the Agent or such Holder or their respective Tax Related Persons, as the case may be, relating to, arising out of, or in connection with any Note Document or any payment or transaction contemplated hereby or thereby, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority and all reasonable expenses and costs arising therefrom or with respect thereto. A certificate as to the amount of such payment or liability delivered to the Issuer by a Holder (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Holder, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Administrative Requirements; Forms Provision</u>. Each Holder that is a United States Person for U.S. federal income tax purposes shall deliver to the Issuer and the Agent, on or prior to the Closing Date (in the case of each Holder listed on the signature pages hereof on the Closing Date) or on or prior to the date of the Assignment Agreement pursuant to which it becomes a Holder (in the case of each other Holder), and at such other times as may be necessary in the determination of the Issuer or Agent (each in the reasonable exercise of its discretion), two executed copies of Internal Revenue Service ("**IRS**") Form W-9 certifying that such Holder is exempt from U.S. federal backup withholding Tax. Each Holder that is not a United States Person for U.S. federal income tax purposes (a "**Non-U.S. Holder**") shall, to the extent it is legally entitled to do so, deliver to the Issuer and the Agent (in such number of copies as shall be requested by the recipient), on or prior to the Closing Date (in the case of each Holder listed on the signature pages hereof on the Closing Date) or on or prior to the date of the Assignment Agreement pursuant to which it becomes a Holder (in the case of each other Holder), and at such other times as may be reasonably requested by the Issuer or Agent (each in the reasonable exercise of its discretion), whichever of the following described in <u>clauses (i)</u> through <u>(v)</u> below is applicable, accurately completed and in a manner reasonably acceptable to the Issuer and the Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Non-U.S. Holder claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Note Document, two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty, and (y) with respect to any other applicable payments under any Note Document, two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) two executed copies of IRS Form W-8ECI;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of a Non-U.S. Holder claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Internal Revenue Code, (A) a certificate substantially in the form of <u>Exhibit I-1</u> to the effect that such Non-U.S. Holder is not a "bank" within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, a "10 percent shareholder" of the Issuer within the meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Internal Revenue Code (a "**U.S. Tax Compliance Certificate**") and (B) two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to the extent a Non-U.S. Holder is not the beneficial owner of a Note, two executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit I-2</u> or <u>Exhibit I-3</u>, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u> that if the Non-U.S. Holder is a partnership and one or more direct or indirect partners of such Non-U.S. Holder are eligible to claim the portfolio interest exemption, such Non-U.S. Holder shall provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit I-4</u> on behalf of each such direct and indirect partner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Non-U.S. Holder shall deliver to the Issuer and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Non-U.S. Holder becomes a Holder under this Agreement (and from time to time thereafter upon the reasonable request of the Issuer or the Agent), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Issuer or the Agent to determine the withholding or deduction required to be made; <u>provided</u>, <u>however</u>, notwithstanding anything to the contrary in this <u>Section 2.14(e)</u>, the completion, execution and submission of the documentation described in this <u>clause</u> (v) shall not be required if in the Holder's reasonable judgment such completion, execution of submission would subject such Holder to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Holder.

Each Holder required to deliver any forms, certificates or other evidence with respect to U.S. federal income tax withholding matters pursuant to this <u>Section 2.14(e)</u> and <u>Section 2.14(f)</u> hereby agrees, from time to time after the initial delivery by such Holder of such forms, certificates or other evidence, whenever a lapse in time or change in circumstances renders such forms certificates or other evidence obsolete or inaccurate in any respect, that such Holder shall promptly deliver to Agent and the Issuer two new executed copies of IRS Form W -8BEN, IRS Form W-8BEN-E, IRS Form W-8IMY or IRS Form W-8ECI (or any successor form(s) of any of the foregoing), and as applicable, a U.S. Tax Compliance Certificate properly completed and duly executed by such Holder, and such other documentation required under the Internal Revenue Code and reasonably requested by Agent or the Issuer to confirm or establish that such Holder is not subject to deduction or withholding of U.S. federal income Tax with respect to payments to such Holder under the Note Documents or is subject to deduction or withholding at a reduced rate, or notify Agent and the Issuer of its inability to deliver any such forms, certificates or other evidence. Notwithstanding anything to the contrary in this <u>Section 2.14(e)</u>, the completion, execution and submission of such documentation (other than such documentation set forth in clauses (i)-(iv) of this <u>Section 2.14(e)</u>) shall not be required if in the Holder's reasonable judgment such completion, execution or submission would subject such Holder to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Holder. On or before the Closing Date, (or in the case of a successor or replacement Agent, on or before the date on which such successor or replacement Agent becomes a party to this Agreement), U.S. Bank Trust Company, National Association (or such successor or replacement Agent), shall deliver to the Issuer two executed copies of IRS Form W-9 establishing that the Issuer can make payments to the Agents without deduction or withholding of any Taxes imposed by the United States, including Taxes imposed under FATCA. Each Holder and Agent agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Issuer and the Agent in writing of its legal inability to do so.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If a payment made to a Holder under any Note Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Holder were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Holder shall deliver to the Issuer and the Agent at the time or times prescribed by law and at such time or times reasonably requested by the Issuer or the Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Issuer or the Agent as may be necessary for the Issuer and the Agent to comply with their obligations under FATCA and to determine that such Holder has complied with such Holder's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this <u>Section 2.14(f)</u>, "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

Each Holder agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Issuer and the Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Defined Term</u>. For purposes of this Section, the term "applicable law" includes FATCA.

**Section 2.15.** <u>Alternate Rate of Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If prior to the commencement of any Interest Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Term SOFR Reference Rate for such Interest Period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Agent is advised by the Requisite Holders that Term SOFR Reference Rate for such Interest Period will not adequately and fairly reflect the cost to such Holders (or Holder) of its purchasing or maintaining their Notes (or its Note) for such Interest Period;

then the Agent shall give notice thereof to the Issuer and the Holders by written or electronic notice as promptly as practicable thereafter and, until the Agent notifies the Issuer and the Holders that the circumstances giving rise to such notice no longer exist, (A) any Notes requested to be issued and purchased on the first day of such Interest Period shall be issued and purchased as ABR Notes and (B) any outstanding Notes shall be converted, on the last day of the then-current Interest Period, to ABR Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any time (i) the Requisite Holders determine (which determination shall be conclusive and binding absent manifest error) that the circumstances set forth in <u>clause (a)</u> have arisen and such circumstances are unlikely to be temporary or (ii) the Requisite Holders determine (which determination shall be conclusive and binding absent manifest error) that the circumstances set forth in <u>clause (a)</u> have not arisen but either (w) the CME Term SOFR Administrator has made a public statement or published information that the CME Term SOFR Administrator has ceased or is insolvent (and there is no successor administrator that will continue publication of the Term SOFR Reference Rate), (x) the CME Term SOFR Administrator has made a public statement or has published information (or a public statement or information is published on its behalf) which states that Term SOFR Reference Rate will permanently or indefinitely cease to be published by it (and there is no successor administrator that will

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continue publication of the Term SOFR Reference Rate), (y) the supervisor for the CME Term SOFR Administrator, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the CME Term SOFR Administrator, a resolution authority with jurisdiction over the CME Term SOFR Administrator or a court or an entity with similar insolvency or resolution authority over the CME Term SOFR Administrator has made a public statement or has published information which states that the CME Term SOFR Administrator has ceased or is insolvent or the Term SOFR Reference Rate will permanently or indefinitely cease to be published or (z) the supervisor for CME Term SOFR Administrator or a Governmental Authority has made a public statement identifying or has published information which states that the Term SOFR Reference Rate is no longer representative or the Term SOFR Reference Rate may no longer be used for determining interest rates for notes or other comparable debt instruments, then the Requisite Holders and the Issuer (in consultation with the Agent) shall endeavor to establish an alternate rate of interest as a replacement to the Term SOFR Reference Rate that gives due consideration to the then prevailing or evolving market convention for determining a rate of interest for notes or other comparable debt instruments in the United States at such time and ensuring that Agent will be able to administer such alternate rate of interest, and the Requisite Holders, the Issuer and the Agent shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable; <u>provided</u> that the Requisite Holders and the Issuer shall use commercially reasonable efforts to ensure that such replacement meets the standards set forth under Section 1.1001-6 of the Proposed United States Treasury Regulations (or any successor Untied States Treasury Regulations or other official IRS guidance promulgated that supersedes such Proposed United States Treasury Regulations) so as not to be treated as a "modification" (and therefore an exchange) of any Notes for purposes of Section 1.1001-3 of the United States Treasury Regulations. For the avoidance of doubt, any minimum rate of interest applicable to the Term SOFR Reference Rate hereunder shall also apply to such alternate rate of interest unless otherwise agreed by the Requisite Holders. The Agent and Requisite Holders do not warrant or accept responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the rates in the definition of "Term SOFR Reference Rate" or with respect to any rate that is an alternative or replacement for or successor to any such rate (including, without limitation, any such alternate rate of interest established under this <u>Section 2.15(b)</u>, whether the composition or characteristics of any such alternative, successor or replacement interest rate will be similar to, or produce the same value or economic equivalence of, the existing interest rate being replaced or have the same volume or liquidity as did any existing interest rate prior to its discontinuance or unavailability) or the effect of any of the foregoing, or of any other related conforming changes to this Agreement. The Agent and Requisite Holders may select information sources or services in their reasonable discretion to ascertain any interest rate used in this Agreement, any component thereof, or rates referenced in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to the Issuer (and, in the case of Agent, any Holder) or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for selection of such source or service or for any error or calculation of any such rate (or component thereof) provided by any such information source or service. Until an alternate rate of interest shall be determined in accordance with this <u>clause (b)</u>, (x) any Notes requested to be issued and purchased shall be issued and purchased as ABR Notes and (y) any outstanding Notes shall be converted, on the last day of the then-current Interest Period, to ABR Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither Agent shall be under any obligation (i) to monitor, determine or verify the unavailability or cessation of the Term SOFR Rate (or other applicable benchmark rate), or whether or when there has occurred, or to give notice to any other transaction party of the occurrence of, any event or date on which the benchmark shall have transitioned or may no longer be available, (ii) to select, determine or designate any alternative, successor or replacement benchmark index, or whether any conditions to the designation of such a rate have been satisfied, (iii) to select, determine or designate any

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adjustment to the benchmark or the adjustment spread, or other modifier to any replacement or successor index or (iv) to determine whether or what changes are necessary or advisable, if any, in connection with any of the foregoing. Neither Agent shall be liable for any inability, failure or delay on its part to perform any of its duties set forth in this Agreement as a result of the unavailability of the Term SOFR Rate (or other applicable benchmark rate) and absence of a designated replacement benchmark rate, including as a result of any inability, delay, error or inaccuracy on the part of any other transaction party, including without limitation the Requisite Holders, in providing any direction, instruction, notice or information required or contemplated by the terms of this Agreement and reasonably required for the performance of such duties.

**Section 2.16.** <u>Incremental Notes.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms of <u>Section 2.16(b)</u>, the Issuer may from time to time request Incremental Commitments, <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Prior to implementing any new Incremental Commitments, the Issuer shall have provided a written notice to the Agent and the then-existing Holders (such notice, the "<u>Incremental Notes Notice</u>"), specifying the amount of Incremental Commitments being requested (the "<u>Incremental Target Amount</u>"), such amount not to exceed $35,000,000 in aggregate outstanding principal amount during the term of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) following receipt of the Incremental Notes Notice, then-existing Holders at such time may, within thirty (30) days of receipt by the Agent and such Holders of the Incremental Notes Notice (the "<u>Offer Deadline</u>"), deliver to the Issuer a written offer to provide the Incremental Commitments (the "<u>Incremental Notes Offer</u>"; the Holders providing the Incremental Notes Offer, "<u>Electing Holders</u>"), subject to <u>Section 2.16(a)(vi)</u> and <u>Section 2.16(b)</u>, in accordance with the terms and procedures set forth in this <u>Section 2.16</u>, which Incremental Notes Offer shall detail the economic and other material terms of the proposed Incremental Notes, including principal amount, amortization, call protection, maturity date, pricing and any other such term deemed material by such then-existing Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) following receipt of the Incremental Notes Offer, the Issuer may, within five (5) Business Days of receipt of such Incremental Notes Offer, accept or decline such Incremental Notes Offer, subject to the terms and conditions contained herein (<u>provided</u>, that, if the Issuer does not respond to such Incremental Notes Offer within such five (5) Business Day period, the Issuer shall be deemed to have declined such Incremental Notes Offer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if the Issuer accepts such Incremental Notes Offer, then the Issuer and the Electing Holders shall use commercially reasonable efforts to consummate the transaction set forth in the Incremental Notes Offer in accordance with the terms thereof and this <u>Section 2.16</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any then-existing Holder at such time not responding to the Incremental Notes Notice prior to the Offer Deadline shall be deemed to have declined to provide Incremental Commitments and if any then-existing Holder declines to provide Incremental Commitments by an amount equal to such Holder's Pro Rata Share of such requested amount, any Holder electing to provide Incremental Commitments may elect to increase its Incremental Commitment by an amount equal to such then-existing Holder's Pro Rata Share of the aggregate declined portion of such requested increase;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) for the avoidance of doubt, the Issuer shall not be obligated to accept any Incremental Notes Offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Incremental Commitments and Incremental Notes shall be subject to the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate stated principal amount of such Incremental Notes ("<u>Incremental Indebtedness</u>") shall not exceed $35,000,000 and shall be in a minimum amount of $5,000,000 (<u>provided</u> that such amount may be less than $5,000,000 if such amount represents all remaining availability under the limit set forth in this <u>clause (i)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any such Incremental Indebtedness (A) shall rank pari passu in right of payment and security with, and have the benefit of the same or equivalent guarantees as, the Note Obligations in respect of the other Notes then outstanding, (B) for purposes of prepayments, shall be treated the same as the Initial Notes then outstanding, and (C) shall have the same terms as the Initial Notes then outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no Incremental Indebtedness shall have a final maturity date earlier than the then Maturity Date or a Weighted Average Life to Maturity shorter than the latest Weighted Average Life to Maturity of the Initial Notes then outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) as of the date of incurring such Incremental Indebtedness, after giving effect to the application of the proceeds thereof, the Note Parties and their respective Subsidiaries (on a consolidated basis) shall be Solvent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the satisfaction or waiver by the Holders providing such Incremental Indebtedness on or prior to the date of the incurrence of such Incremental Indebtedness of each of the conditions precedent set forth in <u>Section 3.02</u>.

**ARTICLE III** 

**CONDITIONS PRECEDENT** 

**Section 3.01.** Closing Date. The obligation of each Holder to purchase Notes on the Closing Date is subject to the satisfaction, or waiver in accordance with <u>Section 11.06</u>, of the following conditions on or before the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Note Documents</u>. Subject to <u>Section 6.19</u>, each Holder and the Agents shall have received sufficient copies of each Note Document executed and delivered by each Note Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organizational Documents; Incumbency</u>. Each Holder and Agent shall have received (i) sufficient copies of each Organizational Document of the Issuer, and of each other Note Party, certified as of a recent date by the appropriate Governmental Authority, for each Holder, each dated the Closing Date or a recent date prior thereto; (ii) signature and incumbency certificates of the officers of the Issuer and of each other Note Party executing the Note Documents; (iii) resolutions of the Board of Directors, the manager(s) or member(s) or similar Governing Body of the Issuer and of each other Note Party approving and authorizing the execution, delivery and performance of this Agreement, the other Note Documents to which it is a party, certified as of the Closing Date by a Responsible Officer as being in full force and effect without modification or amendment; and (iv) a good standing certificate for the Issuer and each other Note Party from the applicable Governmental Authority in such Person's jurisdiction of incorporation, organization or formation and in each jurisdiction in which such Person is qualified as a foreign corporation or other entity to do business, each dated a recent date prior to the Closing Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Consents</u>. Each of the Issuer, each other Note Party and their Subsidiaries shall have obtained all authorizations, consents and permits from any Governmental Authority and all consents of other Persons, in each case that are necessary or reasonably deemed by Agent and the Requisite Holders to be advisable in connection with the Transactions and each of the foregoing shall be in full force and effect and in form and substance reasonably satisfactory to Agent and the Requisite Holders. All applicable waiting periods shall have expired without any action being taken or threatened by any competent authority that would restrain, prevent or otherwise impose adverse conditions on the Transactions and no action, request for stay, petition for review or rehearing, reconsideration, or appeal with respect to any of the foregoing shall be pending, and the time for any applicable agency to take action to set aside its consent on its own motion shall have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Purchase Date</u>. The date of purchase of the Notes shall be a Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Initial Reserve Report; Acquired Assets Reserve Report; Title to Oil and Gas Properties</u>. The Agent and the Requisite Holders shall have received (i) the Initial Reserve Report, (ii) the Acquired Assets Reserve Report and (iii) title information (including usual and customary title opinions, title reports and landman certificates in the Issuer's possession or generated by the Issuer for the Agent and Requisite Holders) setting forth the status of title to at least 90% of PV-10 of the Oil and Gas Properties in the Acquired Assets Reserve Report and the Initial Reserve Report, on a consolidated basis, consistent with usual and customary standards for the geographic regions in which such Oil and Gas Properties are located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Real Property Collateral</u>. Subject to <u>Section 6.19</u>, the Agents and the Requisite Holders shall have received a Mortgage encumbering each Mortgaged Property in favor of the Collateral Agent, duly executed and acknowledged by each Note Party that is the owner of or holder of any interest in such Mortgaged Property, and otherwise in form for recording in the recording office of each applicable jurisdiction where each such Mortgaged Property is deemed located and that will, when properly recorded (or when the applicable financing statements related thereto are properly filed or such other actions needed to perfect are taken) create a valid, perfected first priority security interest (after giving effect to Excepted Liens identified in <u>clauses (a)</u> through <u>(d)</u> and <u>(f)</u> of the definition thereof, but subject to the provisos at the end of such definition) on at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the Acquired Assets Reserve Report and the Initial Reserve Report, on a consolidated basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Personal Property Collateral</u>. In order to create in favor of the Collateral Agent, for the benefit of the Holders a valid, perfected first priority security interest in all personal property Collateral of the Note Parties, the Agents shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) evidence reasonably satisfactory to Agents and the Requisite Holders of the compliance by each Note Party with its respective obligations under the Collateral Documents to which it is party (including its obligation to deliver UCC financing statements, originals of securities, instruments and chattel paper); and

(ii)(A) the results of a recent search, by a Person satisfactory to the Requisite Holders, of all effective UCC financing statements made with respect to any personal or mixed property of the Issuer and each Note Party in the applicable jurisdictions, together with copies of all such filings disclosed by such search that will not be terminated on the Closing Date and (B) UCC termination statements for filing in all applicable jurisdictions as may be necessary to terminate any effective UCC financing statements disclosed in such search that do not constitute Liens permitted under <u>Section 7.03</u> or Excepted Liens.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Evidence of Insurance</u>. The Holders shall have received evidence satisfactory to them in their reasonable discretion that all insurance required to be maintained pursuant to <u>Section 6.06</u> is in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Evidence of Swap Agreements</u>. The Holders shall have received evidence satisfactory to them in their reasonable discretion that all Swap Agreements required to be maintained pursuant to <u>Section 6.20</u> are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Opinions of Counsel to Note Parties</u>. Agents and the Holders shall have received executed copies of the favorable written opinions of (i) Weil Gotshal & Manges LLP, counsel for the Issuer and the Note Parties and (ii) to the extent any Mortgages are delivered on the Closing Date, Steptoe & Johnson PLLC and Liskow & Lewis, APLC, as applicable, each as local counsel for the Issuer and the Note Parties, in each case dated as of the Closing Date and in form and substance reasonably satisfactory to the Agent and Requisite Holders (and the Issuer and each Note Party hereby instructs such counsel to deliver such opinions to Agents on behalf of the Holders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Expenses</u>. The Issuer shall have paid to Agents and the Holders all amounts (invoiced at least two (2) Business Days prior to the Closing Date (or such shorter time reasonably acceptable to the Issuer) with reasonable detail) required to be paid pursuant to <u>Section 11.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Solvency Certificate</u>. On the Closing Date, Agent shall have received a Solvency Certificate from a Financial Officer substantially in the form of <u>Exhibit E</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Closing Date Certificate</u>. The Issuer shall have delivered to Agent and the Holders an executed Closing Date Certificate, together with all attachments thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>[Reserved].</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>[Reserved].</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>No Material Adverse Effect</u>. Since December 31, 2023, no event, change or condition shall have occurred that has caused or could reasonably be expected to result in, either individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Funds Flow</u>. Agent shall have received at least one (1) Business Day prior to the Closing Date the Flow of Funds, in form and substance reasonably satisfactory to the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Initial Note Purchase Notice</u>. Agent shall have received a fully-executed Note Purchase Notice at least seven (7) Business Days prior to the Closing Date (or such earlier date as the Holders may agree in their sole discretion (by notice to the Agent)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Other Debt; Payoff of Existing Credit Facility</u>. (i) The Requisite Holders shall be satisfied that the Note Parties and their Subsidiaries have no outstanding Debt except for Debt permitted pursuant to <u>Section 7.02(b)</u> and the Note Parties shall not be in default with respect to such Debt and (ii) the Holders shall have received (A) a duly executed payoff letter, in form and substance reasonably satisfactory to Holders, with respect to the Existing Credit Facility which shall set forth the amount necessary to repay all Indebtedness and discharge all obligations, in each case, under the Existing Credit Facility and (B) evidence reasonably acceptable to the Holders that all Liens and guarantees under the Existing Credit Facility shall have been released (including, without limitation, the Holder's receipt of lien release documents and UCC termination statements in connection therewith) (or substantially concurrently with the funding of the Notes on the Closing Date shall be released).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Financial Statements</u>. The Holders shall have received an unaudited consolidated pro forma balance sheet of the Issuer and its Consolidated Subsidiaries as of the Closing Date (giving effect to the Transactions on the Closing Date) (collectively, the "**Initial Financial Statements**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Lease Operating Statements</u>. The Holders shall have received monthly production and accounting lease operating statements for each calendar month for each of the Fiscal Quarters ended after June 30, 2024 and at least forty-five (45) days prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Fees</u>. The Issuer shall have paid any other amounts owed under and as set forth in the Fee Letter and the Agent Fee Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>No Default or Event of Default; Representations and Warranties</u>. On the Closing Date after giving effect to the Transactions, (i) no Default or Event of Default shall have occurred and be continuing, and (ii) all representations and warranties made by the Note Parties contained herein or in the other Note Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the Closing Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Know Your Customer</u>. Agents and the Holders shall have received, at least five (5) Business Days (or such shorter period as the Agents may agree) prior to the Closing Date, all documentation and other information required by regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including, without limitation, the USA PATRIOT Act and, to the extent the Issuer qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to the Issuer, that has been reasonably requested by Holders in writing to the Issuer at least ten (10) Business Days prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Specified Acquisition Agreement</u>. The Agent and the Holders shall have received a certificate from a Financial Officer of the Issuer dated as of the Closing Date certifying (i) that attached thereto is a true and correct fully-executed copy of the Specified Acquisition Agreement (including all amendments, exhibits and schedules thereto) and (ii) the Specified Acquisition has been consummated in accordance with its terms substantially concurrently with the purchase of the Notes under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Unrestricted Cash</u>. As of the Closing Date, the Issuer and its Restricted Subsidiaries shall have Unrestricted Cash in an amount equal to or greater than $3,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Officer's Certificate</u>. The Issuer shall have delivered to Agent and the Holders a certificate of a Financial Officer of the Issuer certifying as to matters set forth in <u>Section 3.01(c)</u>, <u>Section 3.01(o)</u>, <u>Section 3.01(p)</u>, <u>Section 3.01(q)</u>, <u>Section 3.01(x)</u> and <u>Section 3.01(aa)</u>.

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Agent (at the direction of the Requisite Holders) shall notify the Issuer and the Holders of the Closing Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Holders to purchase Notes hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to <u>Section 11.06</u>) at or prior to 5:00 p.m., New York, New York time, on September 17, 2024 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

Without limiting the generality of the provisions of <u>Section 10.03</u>, for purposes of determining compliance with the conditions specified in this <u>Section 3.01</u>, each Holder as of the Closing Date shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required hereunder to be consented to or approved by or acceptable or satisfactory to a Holder unless the Agent shall have received written notice from such Holder prior to the Closing Date specifying its objection thereto.

**ARTICLE IV** 

**REPRESENTATIONS AND WARRANTIES** 

In order to induce the Agents and Holders to enter into this Agreement and induce the Holders to purchase their respective Notes, the Note Parties represent and warrant to the Agents and each Holder the following:

**Section 4.01.** <u>Organization; Powers</u>. Each of the Note Parties and their Restricted Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority, and has all material governmental licenses, authorizations, consents and approvals necessary, to own its assets and to carry on its business as now conducted, and is qualified to do business in, and is in good standing (if applicable) in, every jurisdiction where such qualification is required by Governmental Requirement, except where failure to have such licenses, authorizations, consents, approvals or qualifications could not reasonably be expected to have a Material Adverse Effect.

**Section 4.02.** <u>Authority; Enforceability</u>. The Transactions are within the Note Party's and each Restricted Subsidiary's corporate, limited liability company or partnership powers and have been duly authorized by all necessary corporate, limited liability company or partnership action, as applicable, and, if required, stockholder, member or manager action (including, without limitation, any action required to be taken by any class of directors or managers of the Note Parties or any other Person, whether interested or disinterested, in order to ensure the due authorization of the Transactions). Each Note Document to which each Note Party and each Restricted Subsidiary is a party has been duly executed and delivered by the Note Party and such Restricted Subsidiary and constitutes a legal, valid and binding obligation of the Note Party and such Restricted Subsidiary, as applicable, each enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

**Section 4.03.** <u>Approvals; No Conflicts</u>. The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or any other third Person (including shareholders or any class of directors or managers, as applicable, whether interested or disinterested, of the Note Parties or any other Person), nor is any such consent, approval, registration, filing or other action necessary for the validity or enforceability of any Note Document or the consummation of the Transactions, except such as have been obtained or made and are in full force and effect other than the recording and filing of the Collateral Documents as required by this Agreement, (b) will not violate (i) any applicable provision of law or regulation or any order of any Governmental

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**Section 4.04.** <u>Financial Condition; No Material Adverse Effect</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Since the December 31, 2023, there has been no event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the Note Parties nor any Restricted Subsidiary has on the Closing Date any Material Debt (including Disqualified Capital Stock) or any contingent liabilities, off-balance sheet liabilities or partnerships, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments.

**Section 4.05.** <u>Litigation</u>. There are no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Issuer, threatened in writing against the Note Parties or any Restricted Subsidiary which are not fully covered by insurance (except for customary deductibles) (i) which individually or in the aggregate, if adversely determined, could reasonably be expected to result in liability exceeding $2,500,000, or (ii) that involve any Note Document or the Transactions. None of the Note Parties or any of their Restricted Subsidiaries is in violation of any order, writ, injunction or any decree of any Governmental Authority which individually or in the aggregate, if adversely determined, could reasonably be expected to result in liability exceeding $2,500,000.

**Section 4.06.** <u>Environmental Matters</u>. Except for such matters that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties and their Restricted Subsidiaries and each of their respective Properties and respective operations thereon are and have been in compliance with all applicable Environmental Laws; and none of the Note Parties and their Restricted Subsidiaries has received notice of, any conditions, events, or incidents in connection with any such Properties that would reasonably be expected to interfere with or prevent such compliance or continued compliance with Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties and their Restricted Subsidiaries have obtained all Environmental Permits required for their respective operations and respective ownership of their Properties, with all such Environmental Permits being currently in full force and effect, and none of Note Parties or their Restricted Subsidiaries has received any written notice or otherwise has knowledge that any such existing Environmental Permit will be revoked or that any application for any new Environmental Permit or renewal of any existing Environmental Permit will be protested or denied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no Environmental Claims or other claims, demands, suits, orders, inquiries or proceedings concerning any violation of, or liability (including as a potentially responsible party) under, any applicable Environmental Laws pending or, to the Issuer's knowledge, threatened against the Note Parties or any Subsidiary or, to the Issuer's knowledge, any of their respective Properties or as a result of any operations at such Properties;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) None of the Properties of the Note Parties or any Restricted Subsidiary contain or have contained any: (i) underground storage tanks requiring permits under Environmental Law; (ii) asbestos-containing or radioactive materials requiring removal pursuant to Environmental Law; (iii) landfills or dumps requiring an Environmental Permit pursuant to Environmental Law; (iv) hazardous waste management units as defined pursuant to RCRA or any comparable state law or (v) sites on or nominated for the National Priority List promulgated pursuant to CERCLA or any state remedial priority list promulgated or published pursuant to any comparable state law and Note Parties any Restricted Subsidiary is in substantial compliance with all applicable financial responsibility requirements of all Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There has been no Release or, to the Issuer's knowledge, threatened Release of Hazardous Materials at, on, under or from the Note Parties' or any Restricted Subsidiary's Properties in violation of, or as could reasonably be expected to result in liability under, Environmental Law, there are no investigations, remediations, abatements, removals, or monitorings of Hazardous Materials required under applicable Environmental Laws at such Properties and, to the knowledge of the Issuer, none of such Properties are adversely affected by any Release or threatened Release of a Hazardous Material originating or emanating from any other real property, and no Issuer or Restricted Subsidiary has filed or failed to file, any notice required of such Persons under applicable Environmental Law related to a reportable Release of Hazardous Materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Neither the Issuer nor any Restricted Subsidiary has received any written notice asserting an alleged liability or obligation of the Note Parties or any Restricted Subsidiary under any applicable Environmental Laws with respect to the investigation, remediation, abatement, removal, or monitoring of any Hazardous Materials at, under, or Released or threatened to be Released from the Note Parties' or any Restricted Subsidiary's Properties or any real properties offsite the Issuer's or any Restricted Subsidiary's Properties, including a letter or request for information under Section 104(e) of CERCLA (42 U.S.C. § 9604) or any comparable state law, and, to the Issuer's knowledge, there are no conditions or circumstances that could reasonably be expected to result in the receipt of such written notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) There has been no exposure of any Person or Property to any Hazardous Materials as a result of or in connection with the operations and businesses of Note Parties or any Restricted Subsidiary, including at any of the Note Parties' or its Restricted Subsidiaries' Properties that could reasonably be expected to form the basis for a claim for damages or compensation for which the Note Parties or any Restricted Subsidiary would be liable under Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the Issuer's knowledge, there are no conditions or circumstances associated with any of the Note Parties' or any Restricted Subsidiary's currently or previously owned or leased real properties that could reasonably be expected to give rise to the imposition of any material liabilities under any Environmental Laws against any Note Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Note Parties and their Restricted Subsidiaries have made available to the Holders complete and correct copies of all environmental site assessment reports, investigations, studies, analyses, and correspondence on environmental matters (including matters relating to any alleged non-compliance with or liability under Environmental Laws) requested by the Agent that are in any of the Note Parties' or the Restricted Subsidiaries' possession or control and relating to their respective Properties or operations.

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**Section 4.07.** <u>Compliance with Laws and Agreements; No Defaults, Event of Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of Note Parties and each Restricted Subsidiary is in compliance with all Governmental Requirements applicable to it and its Property and all agreements and other instruments binding upon it or its Property, and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business as presently conducted in each case, except where such non-compliance would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Default or Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Material Contract is in full force and effect, and is valid, binding and enforceable upon any Note Party party thereto and, to the knowledge of the Note Parties, upon each of the other parties thereto in accordance with their respective terms, in each case subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. Each Note Party party thereto is in compliance in all material respects with such agreements. The Issuer has delivered or made available to the Agent true, correct and complete copies of each Material Contract (including all amendments, supplements or other modifications thereto) in effect and not previously delivered or made available to the Agent.

**Section 4.08.** <u>Investment Company Act</u>. None of the Note Parties nor any Restricted Subsidiary is required to be registered as an "investment company" under the Investment Company Act of 1940, as amended.

**Section 4.09.** <u>Taxes</u>. Each of the Note Parties and their Restricted Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which the Note Parties or such Restricted Subsidiary, as applicable, has set aside on its books adequate reserves in accordance with GAAP or (b) to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Effect. No Tax Lien (other than Tax Liens that constitute Excepted Liens or Tax Liens whose existence would not reasonably be expected to result in a Material Adverse Effect) has been filed.

**Section 4.10.** <u>ERISA</u>. Except for such matters that, individually or in the aggregate, could not reasonably be expected to have Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The applicable Note Parties, Restricted Subsidiaries and ERISA Affiliates have complied in all material respects with ERISA and, where applicable, the Internal Revenue Code regarding each Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Plan is, and has been, established and maintained in substantial compliance with its terms, ERISA and, where applicable, the Internal Revenue Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No act, omission or transaction has occurred with respect to a Plan which could reasonably be expected to result in imposition on the Note Parties, any Restricted Subsidiary or any ERISA Affiliate (whether directly or indirectly) of (i) either a civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502 of ERISA or a tax imposed pursuant to Chapter 43 of Subtitle D of the Internal Revenue Code or (ii) breach of fiduciary duty liability damages under Section 409 of ERISA.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Full payment when due has been made of all amounts which the applicable Note Parties, Restricted Subsidiaries or ERISA Affiliates is required under the terms of each Plan or applicable law to have paid as contributions to such Plan as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Neither the Note Parties, the Restricted Subsidiaries nor any ERISA Affiliate sponsors, maintains, or contributes to an employee welfare benefit plan, as defined in Section 3(1) of ERISA that provides benefits to former employees of such entities and that may not be terminated by the Note Parties, a Restricted Subsidiary or any ERISA Affiliate in its sole discretion at any time without any material liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither the Note Parties, the Restricted Subsidiaries nor any ERISA Affiliate sponsors, maintains or contributes to, or has at any time in the six (6) year period preceding the Closing Date sponsored, maintained or contributed to, any employee pension benefit plan, as defined in Section 3(2) of ERISA, that is subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Internal Revenue Code.

**Section 4.11.** <u>Disclosure; No Material Misstatements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the other reports, financial statements, certificates or other information furnished by or on behalf of the Issuer or any Restricted Subsidiary to the Agent or any Holder or any of their Affiliates in connection with the negotiation of this Agreement or any other Note Document or delivered hereunder or under any other Note Document (as modified or supplemented by other information so furnished), taken as a whole, contains any untrue statement of material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading; <u>provided</u> that, with respect to projected financial information, the Issuer represents only that such information was prepared in good faith based upon assumptions believed by the Issuer to be reasonable at the time it being understood that (i) any such projected financial information is merely a prediction as to future events and its not to be viewed as fact, (ii) such projected financial information is subject to significant uncertainties and contingencies, many of which are beyond the control of the Issuer or any of its Subsidiaries and (iii) no assurance can be given that any particular projections will be realized and that actual results during the period or periods covered by any such projections may differ significantly from the projected results and such differences may be material. There are no statements or conclusions in any Reserve Report which are based upon or include materially misleading information or fail to take into account material information regarding the matters reported therein, it being understood that projections concerning volumes attributable to the Oil and Gas Properties of the Note Parties and their Restricted Subsidiaries and production and cost estimates contained in each Reserve Report are necessarily based upon professional opinions, estimates and projections and that the Note Parties and their Restricted Subsidiaries do not warrant that such opinions, estimates and projections will ultimately prove to have been accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the Closing Date, the information included in the Beneficial Ownership Certification is true and correct in all respects.

**Section 4.12.** <u>Insurance</u>. The Note Parties have, and have caused all of their Restricted Subsidiaries to have (a) all insurance policies sufficient for the compliance by each of them with all material Governmental Requirements and all material agreements and (b) insurance coverage in at least amounts and against such risk (including, without limitation, public liability) that are customarily insured

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against by business entities similarly situated and engaged in the same or a similar business for the assets and operations of the Note Parties and their Restricted Subsidiaries. Such policies provide adequate coverage from reputable and financially sound insurance companies in amounts sufficient to insure the assets and risks of each of the Note Parties and their Restricted Subsidiaries in accordance with prudent business practice in the industry of the Note Parties and their Restricted Subsidiaries. No Note Party has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers at a comparable rate. The Collateral Agent has been named as additional insureds in respect of such liability insurance policies and the Collateral Agent has been named as lender loss payee and mortgagee with respect to property loss insurance. None of the Note Parties or their Restricted Subsidiaries owns or holds any Building (as defined in the applicable Flood Insurance Regulation) or Manufactured (Mobile) Home (as defined in the applicable Flood Insurance Regulation) constituting Collateral for which such Person has not delivered to the Agents evidence reasonably satisfactory to the Requisite Holders that (x) such Person maintains flood insurance for such Building or Manufactured (Mobile) Home or (y) such Building or Manufactured (Mobile) Home is not located in a Special Flood Hazard Area (it being understood that Agent will promptly provide any such information received by it to the Holders).

**Section 4.13.** <u>Subsidiaries; Foreign Operations</u>. Except as set forth on <u>Schedule 4.13</u> or as disclosed in writing to the Agent (which shall promptly furnish a copy to the Holders), which shall be a supplement to <u>Schedule 4.13</u>, the Issuer has no Subsidiaries or Foreign Subsidiaries. <u>Schedule 4.13</u> identifies each Subsidiary as either a Restricted Subsidiary or Unrestricted Subsidiary. Each Subsidiary listed on <u>Schedule 4.13</u> is a Wholly-Owned Subsidiary. The Note Parties have no Foreign Subsidiaries and no Restricted Subsidiary owns any Oil and Gas Properties not located within the geographic boundaries of the United States of America and subject to the jurisdiction of the United States of America.

**Section 4.14.** <u>Properties; Titles, Etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Note Parties and their Restricted Subsidiaries has good and defensible title (as used herein, such term has the meaning commonly ascribed thereto in the Oil and Gas Business) to the Oil and Gas Properties evaluated in the most recently delivered Reserve Report (except for those Oil and Gas Properties that have been disposed of since the date of such Reserve Report in accordance with this Agreement or leases which have expired in accordance with their terms) and valid title to all its material personal Properties, in each case, free and clear of all Liens except Liens permitted by <u>Section 7.03</u>. After giving full effect to the Excepted Liens, the Note Party or the Restricted Subsidiary specified as the owner owns the net interests in production attributable to the Hydrocarbon Interests as reflected in the most recently delivered Reserve Report (except for those Oil and Gas Properties that have been disposed of since the date of such Reserve Report in accordance with this Agreement or leases which have expired in accordance with their terms).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to any real Properties or personal Properties not subject of the preceding <u>clause (a)</u>, each of the Note Parties and their Restricted Subsidiaries have in all material respects (i) good and defensible title to, or valid leasehold or other interests in, its respective real Properties and (ii) good title to all of their personal Properties, in each case, free and clear of all Liens except Liens permitted by <u>Section 7.03</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as could not reasonably be expected to have a Material Adverse Effect, all leases and agreements necessary for the conduct of the business of the Note Parties and their Restricted Subsidiaries are valid and subsisting, in full force and effect, and there exists no default or event or circumstance which with the giving of notice or the passage of time or both would give rise to a default under any such lease or leases.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The rights and Properties presently owned, leased or licensed by the Note Parties and their Restricted Subsidiaries including, without limitation, all easements and rights of way, if any, include all rights and Properties necessary to permit the Note Parties and their Restricted Subsidiaries to conduct their business in all material respects in the same manner as its business has been conducted prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All of the Properties of the Note Parties and their Restricted Subsidiaries which are reasonably necessary for the operation of their businesses are in good working condition and are maintained in accordance with prudent business standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Note Parties and each Restricted Subsidiary owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by the Note Parties and such Restricted Subsidiary does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. The Note Parties and their Restricted Subsidiaries either own or have valid licenses or other rights to use all databases, geological data, geophysical data, engineering data, seismic data, maps, interpretations and other technical information used in their businesses as presently conducted, subject to the limitations contained in the agreements governing the use of the same, with such exceptions as could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No eminent domain proceeding or taking has been commenced or, to the knowledge of any of the Issuer or any of its Subsidiaries, is contemplated with respect to all or any portion of the Property, except to the extent that such proceeding or taking has been previously disclosed by the Issuer in writing to the Agent pursuant to <u>Section 6.02(b).</u> 

**Section 4.15.** <u>[Reserved]</u>.

**Section 4.16.** <u>No Operations</u>. The Note Parties and their Restricted Subsidiaries (a) do not take Hydrocarbons attributable or allocable to their Oil and Gas Properties, in kind, and (b) do not engage in any material operating activities with respect to their Oil and Gas Properties

**Section 4.17.** <u>[Reserved]</u>

**Section 4.18.** <u>Swap Agreements and Qualified ECP Guarantor</u>. <u>Schedule 4.18</u>, as of the Closing Date, and thereafter included in the most recently delivered report required to be delivered by the Issuer pursuant to <u>Section 6.01(e)</u>, as of the date thereof, sets forth, a true and complete list of all Swap Agreements of the Note Parties and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark to market value thereof, all credit support agreements relating thereto (including any margin required or supplied) and the counterparty to each such agreement. The Note Parties are each a Qualified ECP Guarantor.

**Section 4.19.** <u>Use of Proceeds</u>. The proceeds of the Notes shall be used for the purposes set forth in <u>Section 2.04</u>. The Note Parties and their Restricted Subsidiaries are not engaged principally, or as one of its or their important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). No part of the proceeds of any Note will be used for any purpose which violates the provisions of Regulations T, U or X of the Board.

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**Section 4.20.** <u>Solvency</u>. Immediately after giving effect to the Transactions, the Note Parties and their Subsidiaries (on a consolidated basis) are Solvent.

**Section 4.21.** <u>Anti-Corruption Laws, Sanctions and USA PATRIOT Act</u>. Each Note Party has implemented and maintains in effect policies and procedures reasonably designed to promote compliance by the Note Parties and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Note Parties and, to the knowledge of the Note Parties, their respective officers, directors, employees and agents are in compliance with the USA PATRIOT Act, Anti-Corruption Laws and applicable Sanctions. None of (a) the Note Parties or any of their respective directors, officers or employees, or (b) to the Issuer's knowledge, any agent of the Note Parties that will act in any capacity in connection with or benefit from the proceeds of the Notes, is (i) a Sanctioned Person, or (ii) engaged in any activity that would reasonably be expected to result in any Note Party being designated a Sanctioned Person. No direct use of proceeds of the Notes or other transaction by the Note Parties contemplated by this Agreement will unlawfully violate any Anti-Corruption Law or applicable Sanctions.

**Section 4.22.** <u>Affected Financial Institutions</u>. No Note Party is an Affected Financial Institution.

**Section 4.23.** <u>Collateral Documents</u>. The Collateral Documents are effective to create in favor of the Collateral Agent, for the benefit of the Secured Parties, a legal, valid and enforceable security interest in the Collateral and proceeds thereof, subject, in the case of enforceability, to applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally and to general principles of equity and principles of good faith and fair dealing. The Obligations are and shall be at all times secured by legal, valid and enforceable, and upon recordation shall be, perfected first priority Liens in favor of the Collateral Agent, covering and encumbering the Collateral (subject only to permitted Liens under <u>Section 7.03</u>).

**Section 4.24.** <u>Senior Debt</u>. The Obligations shall constitute senior indebtedness of the Note Parties under and as defined in any documentation documenting any junior indebtedness of the Note Parties.

**Section 4.25.** <u>Private Offering</u>. Neither the Note Parties nor anyone acting on their behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other than the Holders, each of which has been offered the Notes at a private sale for investment. Neither the Note Parties nor anyone acting on their behalf has (a) solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Notes by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D of the Securities Act, or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act, or (b) taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.

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**ARTICLE V** 

**REPRESENTATIONS OF HOLDERS** 

In order to induce Issuer to issue and sell the Notes to the Holders, each Holder hereby represents and warrants to Issuer, on the Closing Date and acknowledges as follows:

**Section 5.01.** <u>Organization and Standing</u>. Such Holder is a corporation or other entity duly incorporated or formed and validly existing under the laws of the jurisdiction of its incorporation or formation.

**Section 5.02.** <u>Authorization; Enforceability</u>. Such Holder has the full power and authority to enter into this Agreement, and (assuming due execution by the other parties hereto) this Agreement constitutes its valid and legally binding obligation, enforceable against it in accordance with its terms, except to the extent the enforceability thereof may be limited by (a) the effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other similar laws affecting creditors' rights generally, (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (c) implied covenants of good faith and fair dealing.

**Section 5.03.** <u>Investment</u>. Such Holder is acquiring each such Note solely for its own account, for investment purposes, with no intention of distributing or reselling such Note in any public offering or in any transaction that would be in violation of applicable securities laws of the United States or any other applicable jurisdiction or any state or province thereof, without prejudice, however, to such Holder's right at all times to sell or otherwise dispose of all or any part of the Notes under an effective registration statement under the Securities Act and applicable state securities or "blue sky" laws (it being understood that Issuer has no obligation or intention to undertake any such registration), or an exemption from such registration requirements and in compliance with applicable securities laws. Such Holder has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Notes by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D of the Securities Act, or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act.

**Section 5.04.** <u>Accredited Investor</u>. Such Holder, at the time that it committed to enter into this Agreement was, and now is, an "accredited investor" as that term is defined in Rule 501 of Regulation D under the Securities Act.

**Section 5.05.** <u>No Resale or Repurchase</u>. No person has made to such Holder any written or oral representations (a) that any person will resell or repurchase the Notes (except in accordance with the Organizational Documents of Issuer), (b) that any person will refund the purchase price of the Notes, or (c) as to the future price or value of the Notes.

**Section 5.06.** <u>Private Placement</u>. Such Holder understands that the Notes are being offered for sale only on a "private placement" basis and that the sale and delivery of the Notes is conditional upon such sale being exempt from the requirements as to the filing of a prospectus or registration statement or delivery of an offering memorandum or upon the issuance of such orders, consents or approvals as may be required to permit such sale without the requirement of filing a prospectus or delivering an offering memorandum and, as a consequence, (a) such Holder is restricted from using most of the civil remedies available under applicable securities legislation, (b) such Holder may not receive information that would otherwise be required to be provided to it under applicable securities legislation, and (c) Issuer is relieved from certain obligations that would otherwise apply under applicable securities legislation.

**Section 5.07.** <u>Knowledge and Experience</u>. Without limiting the force and effect of the representations and warranties of any party to a Note Document, such Holder (a) has such knowledge and experience in financial and business matters, as to enable it to evaluate the merits and risks of entering into this Agreement and receiving the Notes, (b) is able to bear the economic risk of the transaction, (c) is

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able to hold its interest indefinitely unless a subsequent disposition thereof is registered under the Securities Act or is exempt from registration and is completed in compliance with applicable securities laws, (d) has been independently advised as to restrictions with respect to trading in the Notes imposed by applicable securities laws, (e) confirms that no representation (written or oral) has been made to it (with respect to trading restrictions imposed by applicable securities laws) by or on behalf of Issuer or Agent with respect thereto, (f) has conducted its own investigation of the Issuer and the terms of the Note, (g) (i) confirms it has had access to information as it deemed necessary to make its decision to purchase the Notes, and (ii) has been offered the opportunity to ask questions of the Issuer and receive answers thereto, as it deemed necessary in connection with the decision to purchase the Notes and (h) acknowledges that it is aware of the characteristics of the Notes, and the risks relating to an investment therein.

**Section 5.08.** <u>No Materials</u>. Without limiting the representations and warranties set forth in the Note Documents, such Holder has not received or been provided with, nor has it requested, nor does it have any need to receive, any offering memorandum, any prospectus, sales or advertising literature describing or purporting to describe the business and affairs of Issuer which has been prepared for delivery to, and review by, prospective purchasers in order to assist them in making an investment decision in respect of the Notes.

**Section 5.09.** <u>Transfer Restrictions</u>. Such Holder acknowledges and agrees that none of the Notes has been registered under the Securities Act or the securities laws of any country or state, and none of them may be sold or otherwise transferred in the absence of an effective registration thereunder unless an exemption from registration is available. Such Holder also acknowledges and agrees that the Notes are subject to resale restrictions in the United States, may be subject to resale restrictions in jurisdictions other than the United States under applicable securities laws, and that any sale or transfer will be completed in compliance with applicable securities laws.

**Section 5.10.** <u>Offers and Sales Only in Certain Circumstances</u>. If such Holder decides to offer, sell, pledge or otherwise transfer any of the Notes, it will not offer, sell, pledge or otherwise transfer any of such Notes, directly or indirectly, unless: (a) the sale is made pursuant to registration of the Notes under the Securities Act; (b) the sale is made to the Issuer in accordance with <u>Section 2.09(g)</u>; (c) the sale is made outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S under the Securities Act and in compliance with applicable local securities laws and regulations; (d) the sale is made pursuant to the exemption from the registration requirements of the Securities Act provided by Rule 144 or Rule 144A thereunder, if available, and, in either case, in accordance with any applicable state securities or "blue sky" laws; or (e) the Notes are sold in any other transaction that does not require registration under the Securities Act or any applicable state securities or "blue sky" laws.

**Section 5.11.** <u>Subsequent Purchaser Notification</u>. Such Holder will take reasonable steps to inform, and cause each of its Affiliates and Related Funds that is a U.S. person (as defined in Section 902 of Regulation S under the Securities Act) to take reasonable steps to inform, any person acquiring Notes from such Holder, Affiliate or Related Fund, as the case may be, in the United States that the Notes (a) have not been and will not be registered under the Securities Act, (b) are being sold to them without registration under the Securities Act in reliance on Rule 144A or in accordance with another exemption from registration under the Securities Act and (c) may not be offered, sold or otherwise transferred except (i) to the Issuer in accordance with <u>Section 2.09(g)</u> , (ii) outside the United States in accordance with Regulation S and in compliance with applicable local securities laws and regulations or (iii) inside the United States in accordance with (A) Rule 144A to a person whom the seller reasonably believes is a qualified institutional buyer, as defined in Rule 144A ("**Qualified Institutional Buyer**") that is purchasing such Notes for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that the offer, sale or transfer is being made in reliance on Rule 144A or (B) pursuant to another available exemption from registration under the Securities Act.

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**ARTICLE VI** 

**AFFIRMATIVE COVENANTS** 

Commencing on the Closing Date and until Payment in Full, each of the Note Parties covenants and agrees with the Holders and Agents that:

**Section 6.01.** <u>Financial Statements; Other Information</u>. The Issuer will furnish to the Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Annual Financial Statements</u>. Not later than ninety–five (95) days after the end of each Fiscal Year of the Issuer, its audited consolidated balance sheet and related statements of operations, members' equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all reported on by independent public accountants of recognized national standing (without a "going concern" or like qualification or exception and without any qualification, exception or explanatory paragraph as to the scope of such audit other than (x) a "going concern" or other qualification that results solely from the Maturity Date being scheduled to occur within one year from the time such opinion is delivered or (y) from any potential inability to satisfy any covenant in <u>Section 7.01</u> on a future date or in a future period), without qualification as to scope of audit to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Issuer and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Quarterly Financial Statements</u>. Not later than sixty-five (65) days after the end of each of the first three (3) Fiscal Quarters of each Fiscal Year (commencing with September 30, 2024) of the Issuer for each Fiscal Quarter ending thereafter, its consolidated balance sheet and related statements of operations, members' equity and cash flows as of the end of and for such Fiscal Quarter and the then elapsed portion of the Fiscal Year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous Fiscal Year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Issuer and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificate of Financial Officer – Compliance</u>. Concurrently with any delivery of financial statements under <u>Sections 6.01(a)</u> or <u>6.01(b)</u>, a certificate of a Financial Officer in substantially the form of <u>Exhibit D</u> hereto (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with <u>Section 7.01</u> (including setting forth the Issuer's reasonably detailed and certified calculations of the Consolidated Total Net Leverage Ratio and the Asset Coverage Ratio and demonstrating compliance with the applicable financial covenant requirement), (iii) setting forth any change in the legal name of the Note Parties that occurred (if any) during the applicable fiscal period, and (iv) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in <u>Section 4.04</u> and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>[Reserved]</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certificate of Financial Officer – Swap Agreements</u>. Concurrently with any delivery of financial statements under <u>Sections 6.01(a)</u> and <u>6.01(b)</u>, a certificate of a Financial Officer, in form satisfactory to the Agent and the Requisite Holders, setting forth as of a recent date, a true and complete list of all Swap Agreements of the Issuer and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark-to-market value therefor (to the extent available), any new credit support agreements relating thereto not listed on <u>Schedule 4.18</u>, any margin required or supplied under any credit support document, and the counterparty to each such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Projections</u>. Concurrently with any delivery of financial statements under <u>Sections 6.01(a)</u>, a reasonably detailed consolidated budget for the then-current fiscal year (including a projected consolidated balance sheet of the Issuer and its Subsidiaries as of the end of such fiscal year, the related quarterly consolidated statements of projected cash flow, capital expenditures and income and a summary of the material underlying assumptions applicable thereto) (collectively, the "**Projections**"), which Projections shall have been prepared in good faith on the basis of the assumptions stated therein, which assumptions were believed to be reasonable at the time of preparation of such Projections, it being recognized by the Agent and the Holders that such Projections are as to future events and are not to be viewed as facts, the Projections are subject to significant uncertainties and contingencies, many of which are beyond the control of the Issuer and the Subsidiaries, that no assurance can be given that any particular Projections will be realized and that actual results during the period or periods covered by any such Projections may differ from the projected results and such differences may be material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Certificate of Insurer – Insurance Coverage</u>. Concurrently with any delivery of financial statements under <u>Section 6.01(a)</u>, a certificate of a Responsible Officer of the Issuer, certifying that (i) the insurance requirements of <u>Section 6.06</u> have been implemented and are being complied with, (ii) the Note Parties have paid or caused to be paid all insurance premiums then due and payable and (iii) the Note Parties are in compliance with the insurance policies, and attaching each certificate of insurance required pursuant to <u>Section 6.06</u>, and, if requested by the Agent or any Holder, all copies of the applicable policies and endorsements to the extent not previously delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Other Accounting Reports</u>. Promptly upon receipt thereof, a copy of each other report or letter submitted to the Note Parties or any of their Subsidiaries by independent accountants (other than customary and standard correspondence) in connection with any annual, interim or special audit made by them of the books of the Note Parties or any such Subsidiary, and a copy of any response by the Note Parties or any such Subsidiary, or the Board of Directors (or comparable Governing Body) of the Note Parties or any such Subsidiary, to such letter or report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Lists of Purchasers</u>. To the extent the Note Parties take any material amount of Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, concurrently with the delivery of any Reserve Report, a list of all Persons purchasing Hydrocarbons from the Note Parties or any Restricted Subsidiary with respect to which such in-kind deliveries are taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Notice of Sales of Oil and Gas Properties and Termination of Swap Agreements</u>. In the event the Note Parties or any Subsidiary intends to sell, transfer, assign or otherwise dispose of (including pursuant to a Casualty Event) any Oil and Gas Properties (other than Hydrocarbons in the ordinary course of business) or any Equity Interests in any Subsidiary in accordance with <u>Section 7.09(d)</u> or <u>Section 7.09(k)</u>, in each case, in an aggregate amount in excess of $500,000, at least three (3) Business Days' (or such shorter time as the Requisite Holders may agree in their sole discretion) prior written notice of such disposition prior to consummation of such disposition (other than with respect to pursuant to a Casualty Event), including the price thereof and any other details thereof reasonably requested by the Requisite Holders. In the event that the Note Parties or any Subsidiary receives any notice of early

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termination of any material Swap Agreement to which it is a party from any of its counterparties, or any material Swap Agreement to which the Note Parties or any Subsidiary is a party is terminated, prompt written notice of the receipt of such early termination notice or such termination, as the case may be, together with a reasonably detailed description thereof and any other details thereof reasonably requested by the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Information Regarding Issuer and Guarantors</u>. Prompt written notice (and in any event within five (5) Business Days thereafter, or such later date as the Requisite Holders may agree in their sole discretion) of any change (i) in the Issuer's or any Guarantor's organizational name, (ii) in the location of the Issuer's or any Guarantor's chief executive office or principal place of business, (iii) in the Issuer's or any Guarantor's identity or organizational structure or in the jurisdiction in which such Person is incorporated or formed, (iv) in the Issuer's or any Guarantor's organizational identification number in such jurisdiction of organization, and (v) in the Issuer's or any Guarantor's federal taxpayer identification number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Notices of Certain Changes</u>. Promptly, but in any event within five (5) Business Days after the execution thereof (or such later date as the Requisite Holders may agree in their sole discretion), copies of any material amendment, modification or supplement to the certificate or articles of incorporation or formation, bylaws, certificate or articles of organization, regulations or limited liability company agreement, any preferred stock designation or any other Organizational Document of the Note Parties or any Restricted Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>SEC and Other Filings</u>. Promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed by the Note Parties or any Restricted Subsidiary with the SEC, or with any national securities exchange. Notwithstanding the foregoing, the Issuer shall in no event be required to deliver to, or otherwise provide or disclose to, any Holder any information for which the Issuer is requesting (assuming such request has not been denied), or has received, confidential treatment from the Commission, or any correspondence with the SEC. Any such document or report that the Issuer files with the SEC via the SEC's EDGAR system (or any successor thereto) shall be deemed to be delivered to the Holder for purposes of this Section 6.01(m) at the time such documents are filed via the EDGAR system (or such successor).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Beneficial Ownership Certification</u>. Promptly, but in no event later than five (5) Business Days of the occurrence of such change, written notice of any change in the information provided in the Beneficial Ownership Certification delivered to any Holder that would result in a change to the list of beneficial owners identified in such certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Free Cash Flow; Lease Operating Statements</u>. Not later than each "Applicable Updated LOS/CF Delivery Date" as set forth in <u>Appendix C</u>, commencing on October<u>April</u> 20, 2024<u>2025</u> (such certificate delivered on October<u>April</u> 20, 2024<u>2025</u> , the "Initial<u>First Amendment</u> <u>LOS/CF Certificate</u>"), deliver (i) a certificate of a Responsible Officer in substantially the form of <u>Exhibit K</u> setting forth reasonably detailed calculations of (A) (i) for each certificate delivered after the Initial<u>First Amendment</u> LOS/CF Certificate, Free Cash Flow (Back) and (ii) Free Cash Flow (Forward), in each case for the related "Applicable CF Period" set forth in <u>Appendix C</u>, (B) Projected Cash Flow From Operating Activities for the then current "Applicable CF Period" and a summary of the material underlying assumptions applicable thereto, which Projected Cash Flow From Operating Activities shall have been prepared in good faith on the basis of the assumptions stated therein, (C) for each certificate delivered after the Initial<u>First Amendment</u> LOS/CF Certificate, any Prior Period Adjustments, and (D) for each certificate delivered after the Initial<u>First Amendment</u> LOS/CF Certificate, any other components of Free Cash Flow (Back) and Free Cash Flow (Forward) realized as of the date of the certificate, (ii) lease operating statements for the most recently ended fiscal quarter in form and detail substantially consistent

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with the lease operating statements delivered to Holders pursuant to <u>Section 3.01(v)</u> for each such fiscal quarter from the Oil and Gas Properties and other information reasonably requested by the Requisite Holders with reasonable advance notice (and which includes the volume of production and sales attributable to production (and the prices at which such sales were made and the revenues derived from such sales) for each such fiscal quarter from the Oil and Gas Properties, and sets forth the related ad valorem, severance and production taxes (if applicable), capital expenditures and lease operating expenses attributable thereto and incurred for each such fiscal quarter), in each case for this <u>Section 6.01(o)(ii)</u> certified by a Responsible Officer of the Issuer as presenting fairly in all material respects the information contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Free Cash Flow Utilizations.</u> In the event the Issuer or any Restricted Subsidiary intends to effect a Free Cash Flow Utilization, at least three (3) Business Days' (or such later date as the Requisite Holders may agree in their sole discretion) prior to such intended Free Cash Flow Utilization, deliver a certificate of a Responsible Officer in substantially the form of <u>Exhibit K</u> hereto setting forth reasonably detailed calculations of Distributable Free Cash Flow (after giving effect to such Free Cash Flow Utilization) for the "Applicable CF Period" set forth in <u>Appendix C</u> applicable to the calendar month during which such Free Cash Flow Utilization is proposed to be made (i.e., the applicable "Distribution Month" set forth in <u>Appendix C</u>). The calculations of Distributable Free Cash Flow shall use the Projected Cash Flow From Operating Activities reflected in the most recently delivered LOS/CF Certificate and will use other components of Free Cash Flow (Back) and Free Cash Flow (Forward) to the extent they have been realized prior to the date of the certificate of a Responsible Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Environmental, Social and Governance Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon notice from an operator of a Material Environmental and Social Incident occurs, (A) reasonably prompt notification, but in any event within fifteen (15) Business Days, of such Material Environmental and Social Incident, (B) concurrently deliver a brief statement of the remedial plan such operator has undertaken or plans to undertake to address such Material Environmental and Social Incident and (C) reasonably prompt notification, but in any event within fifteen (15) Business Days, of the completion of such remedial plan or the abandonment thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within sixty (60) days of request by the Requisite Holders, no more than once in any 12-month period, (A) a materially completed environmental, social and governance survey (an "**ESG Survey**") provided to the Issuer by the Requisite Holders in the form substantially consistent with the ESG Survey template provided by the Holders to the Issuer on August 20, 2024, but with the Issuer's previous year's responses updated by the Issuer, as applicable and (B) host a conference call or teleconference at a time mutually acceptable to the Issuer and the Requisite Holders to discuss the emissions and climate related policies and activities of the Issuer and its Restricted Subsidiaries and matters relating to the ESG Survey; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) reasonably promptly following request, any additional material information related to environmental, social and governance matters of the Issuer as the Agent or the Requisite Holders may reasonably request from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Other Requested Information</u>. Promptly following any request therefor, (i) such other information regarding the operations, business affairs and financial condition of the Note Parties or any Subsidiary (including, without limitation, any Plan sponsored by the Issuer or a Restricted Subsidiary and any reports or other information required to be filed with respect thereto under the Internal Revenue Code or under ERISA), or compliance with the terms of this Agreement or any other Note Document, as the Agent or any Holder may reasonably request; or (ii) information and documentation reasonably requested by the Agents or any Holder for purposes of compliance with applicable "know your customer" requirements under the USA PATRIOT Act, other applicable anti-money laundering laws or the Beneficial Ownership Regulation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Material Contract Information</u>. Concurrently with any delivery of financial statements under <u>Section 6.01(a)</u> or <u>Section 6.01(b)</u>, copies of any material amendments, modifications, consents and waivers to, and termination (including rejections) and assignment of, any Material Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Regulatory Notices</u>. Promptly, but in any event within ten (10) Business Days (or such longer period as the Requisite Holders may agree to in their sole discretion) after receipt thereof by the Note Parties or any Subsidiary, a copy of any material notice, summons, citation, proceeding or order received from any Governmental Authority concerning the regulation of the Properties of the Note Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Consolidated Total Net Leverage Ratio; Asset Coverage Ratio</u>. No later than three (3) (or with respect to a Material Disposition, five (5)) Business Days prior to the consummation of any event or transaction that requires the calculation of, and compliance with, a Consolidated Total Net Leverage Ratio and/or an Asset Coverage Ratio, in each case on a Distribution PF Basis, (i) a certificate of a Responsible Officer of the Issuer (A) with respect to the Consolidated Total Net Leverage Ratio, (I) setting forth the Issuer's reasonably detailed and certified calculations of such Consolidated Total Net Leverage Ratio on a Distribution PF Basis and demonstrating compliance with the applicable Consolidated Total Net Leverage Ratio requirement and (II) certifying that the information set forth in the updated lease operating statement referenced in <u>Section 6.01(u)(ii)(A)</u> is true and correct and (B) with respect to the Asset Coverage Ratio, (I) setting forth the Issuer's reasonably detailed and certified calculations of such Asset Coverage Ratio on a Distribution PF Basis and demonstrating compliance with the applicable Asset Coverage Ratio requirement and (II) certifying that information set forth in the updated reserve database referenced in <u>Section 6.01(u)(ii)(B)</u> is true and correct, it being understood by the Agent and the Holders that projections concerning volumes and production and cost estimates contained therein are necessarily based upon opinions, estimates and projections and that neither the Issuer nor such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate and (ii) with respect to the Asset Coverage Ratio tested (A) in connection with a Material Disposition, an updated reserve database with respect to the Oil and Gas Properties of the Issuer and its Restricted Subsidiaries, giving effect to and reflecting such event or transaction and any other items necessary to be taken into account in accordance with the definition of Distribution PF Basis and <u>Section 1.05</u>, including any Specified Reserve Updates, that is in form and detail substantially consistent with the reserve database used in connection with the preparation of each internally prepared Reserve Report delivered pursuant to <u>Section 6.11</u>, including setting for current production figures and estimates with respect to such Oil and Gas Properties as of the date of delivery and (B) otherwise, an updated reserve database with respect to the Oil and Gas Properties of the Issuer and its Restricted Subsidiaries giving effect to the updated Strip Price as set forth in <u>Section 1.05(c)</u>. Any such certificate of a Responsible Officer of the Issuer delivered in accordance with this <u>Section 6.01(u)</u> shall set forth the amount of any Distribution PF Basis adjustment to the extent not set forth in a previously delivered certificate, or any change in the amount of a Distribution PF Basis adjustment set forth in a previously delivered certificate and, in either case, in reasonable detail together with the calculations and basis therefor.

**Section 6.02.** <u>Notices of Material Events</u>. Promptly (and in any event within three (3) Business Days) after a Responsible Officer of the Issuer or any Subsidiary obtains knowledge thereof, the Issuer will furnish to the Agent (which shall make such information available to the Holders) written notice of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the occurrence of any Default or Event of Default;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the filing or commencement of, or the threat in writing of, any action, suit, proceeding, investigation or arbitration by or before any arbitrator or Governmental Authority against or affecting the Note Parties or any Restricted Subsidiary not previously disclosed in writing to the Holders or any material adverse development in any action, suit, proceeding, investigation or arbitration (whether or not previously disclosed to the Holders) that, in either case, if adversely determined, could reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the occurrence of any ERISA Event that results in, or could reasonably be expected to result in, a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.

Each notice delivered under this <u>Section 6.02</u> shall be accompanied by a statement of a Responsible Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

**Section 6.03.** <u>Existence; Conduct of Business</u>. The Note Parties will, and will cause each Restricted Subsidiary to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence in a jurisdiction of the United States and the rights, licenses, permits, privileges and franchises material to the conduct of its business and maintain, if necessary, its qualification to do business in each other jurisdiction in which its Properties are located or the ownership of its Properties requires such qualification, except where the failure to so qualify could not reasonably be expected to have a Material Adverse Effect.

**Section 6.04.** <u>Payment of Taxes</u>. The Note Parties will, and will cause each Restricted Subsidiary to, pay all Tax liabilities of the Note Parties and all of their Restricted Subsidiaries before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings and the Note Parties or such Restricted Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) the failure to make payment could not reasonably be expected to result in a Material Adverse Effect.

**Section 6.05.** [<u>Reserved</u>].

**Section 6.06.** <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will, and will cause each Restricted Subsidiary to, maintain, with financially sound and reputable insurance companies (at the time the relevant coverage is placed or renewed), insurance (i) in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses and (ii) in accordance with all Governmental Requirements. The loss payable clauses or provisions in said insurance policy or policies insuring any of the Collateral for the Obligations shall be endorsed in favor of and made payable to the Agents as its interests may appear and such policies shall name the Agents and the Holders as "additional insureds" (and mortgagee, if applicable) and Agents as lender loss payee and provide that the insurer will endeavor to give at least thirty (30) days' prior notice of any cancellation to the Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will notify the Agents and the Requisite Holders promptly whenever any separate insurance concurrent in form or contributing in the event of loss with that required to be maintained under this <u>Section 6.06</u> is, to the actual knowledge of the Note Parties or a Restricted Subsidiary thereof, taken out by the Note Parties or such Restricted Subsidiary thereof; and promptly deliver to the Agents a duplicate original copy of such policy or policies to the extent available to such Person.

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**Section 6.07.** <u>Books and Records</u>; Inspection Rights. The Note Parties will, and will cause each Restricted Subsidiary to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Issuer will, and will cause each Restricted Subsidiary to, permit any representatives designated by the Agent or any Holder, upon reasonable prior notice, to visit and inspect its Properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested; <u>provided</u> that so long as no Event of Default has occurred and is continuing, the Note Parties and their Restricted Subsidiaries shall not be required to reimburse the Agent or any Holder for more than one (1) inspection during any Fiscal Year.

**Section 6.08.** <u>Compliance with Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will, and will cause each Restricted Subsidiary to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its Property and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business, except where such non-compliance would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will, and will cause each of their Subsidiaries to, maintain in effect and enforce such policies and procedures reasonably designed to promote compliance by the Note Parties and their Subsidiaries and each of their respective directors, officers, employees and agents with Anti-Corruption Laws, applicable Sanctions and the USA PATRIOT Act.

**Section 6.09.** <u>Environmental Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties shall: (i) comply, and shall cause its Properties and operations and each Restricted Subsidiary and each Restricted Subsidiary's Properties and operations to comply, with all applicable Environmental Laws, except where the failure to so comply could not be reasonably expected to have a Material Adverse Effect; (ii) handle, store, and prevent any Release or threatened Release of, and shall cause each Restricted Subsidiary to handle, store and prevent any Release or threatened Release of, any Hazardous Material on, under, about or from any of the Note Parties' or their Restricted Subsidiaries' Properties or any other property offsite the Property to the extent caused by the Note Parties' or any of their Restricted Subsidiaries' operations in compliance with applicable Environmental Laws, except in each case, where the failure to do so could not reasonably be expected to have a Material Adverse Effect; (iii) timely obtain or file, and shall cause each Restricted Subsidiary to timely obtain or file, all Environmental Permits, if any, required under applicable Environmental Laws to be obtained or filed in connection with its operation or use of the Note Parties' or their Restricted Subsidiaries' Properties, except, in each case, where the failure to obtain or file could not reasonably be expected to have a Material Adverse Effect; (iv) promptly commence and diligently prosecute to completion, and shall cause each Restricted Subsidiary to promptly commence and diligently prosecute to completion, any assessment, evaluation, investigation, monitoring, containment, cleanup, removal, repair, restoration, remediation or other remedial obligations to the extent required under Environmental Law (collectively, the "**Remedial Work**") because of or in connection with the actual or suspected past, present or future Release or threatened Release of any Hazardous Material on, under, about or from any of the Note Parties' or their Restricted Subsidiaries' Properties, which failure to commence and diligently prosecute to completion could reasonably be expected to have a Material Adverse Effect; (v) conduct,

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and cause its Restricted Subsidiaries to conduct, their respective operations and businesses in a manner that will not expose any Property or Person to Hazardous Materials in violation of Environmental Law or as would result in liability under Environmental Law, if such exposure could reasonably be expected to have a Material Adverse Effect; and (vi) establish and implement, and shall cause each Restricted Subsidiary to establish and implement, such procedures as may be necessary to regularly determine and assure that the Note Parties' and their Restricted Subsidiaries' obligations under this <u>Section 6.09(a)</u> are timely and fully satisfied, which failure to establish and implement could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will promptly, but in no event later than fifteen (15) days after any Note Party obtains knowledge thereof, notify the Agent and the Holders in writing of any threatened (in writing) action, investigation or inquiry by any Governmental Authority or any threatened demand (in writing) or lawsuit by any Person against the Note Parties or their Restricted Subsidiaries or their Properties of which the Note Party has knowledge in connection with any Environmental Laws if the Note Parties could reasonably anticipate that any of the foregoing will result in liability (whether individually or in the aggregate), if not covered by insurance, to the extent such liability could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent available, the Note Parties will, and will cause each Restricted Subsidiary to, provide environmental assessments, audits and tests obtained by the Note Parties or any Restricted Subsidiary in connection with any future acquisition of Oil and Gas Properties or other Properties to the Agent, other than an acquisition of additional interests in Oil and Gas Properties in which the Note Parties or any Restricted Subsidiary previously held an interest.

**Section 6.10.** <u>Further Assurances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Note Parties at its sole expense will, and will cause each Restricted Subsidiary to, promptly execute and deliver to the Agents all such other documents, agreements and instruments reasonably requested by the Agents or the Requisite Holders to comply with, cure any defects or accomplish the conditions precedent, covenants and agreements of the Note Parties or any Restricted Subsidiary, as the case may be, in the Note Documents, including the Notes, or to further evidence and more fully describe the Collateral intended as security for the Obligations, or to correct any omissions in this Agreement or the Collateral Documents, or to state more fully the obligations secured therein, or to perfect, protect or preserve any Liens created pursuant to this Agreement or any of the Collateral Documents or the priority thereof, or to make any recordings, file any notices or obtain any consents, all as may be reasonably necessary or appropriate, in the sole discretion of the Agent or the Requisite Holders, in connection therewith. In addition, at any Agent's request, each Note Party, at its sole expense, shall provide any information requested to identify any Collateral pledged by it, exhibits to Mortgages in form and substance reasonably satisfactory to such Agent (at the direction of the Requisite Holders) (which such exhibits shall be in recordable form for the applicable jurisdiction) or any other information requested in connection with the identification of any Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Note Parties hereby authorizes the Collateral Agent to file one or more financing or continuation statements, and amendments thereto, relative to all or any part of the Mortgaged Property without the signature of the Note Parties or any other Guarantor where permitted by law. A carbon, photographic or other reproduction of the Collateral Documents or any financing statement covering the Mortgaged Property or any part thereof shall be sufficient as a financing statement where permitted by law. Each of the Note Parties acknowledges and agrees that any such financing statement may describe the collateral as "all assets" or "all assets of Debtor, whether now owned or hereafter acquired and wherever located" of the applicable Note Party or words of similar effect as may be required by the Collateral Agent or the Requisite Holders. The grant of authority to the Collateral Agent under this <u>Section 6.10(b)</u> shall not be construed as a duty on any Agent to make any filings or otherwise perfect or maintain the perfection of the Collateral Agent's security interest, for the benefit of the Secured Parties, in the Collateral.

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**Section 6.11.** <u>Reserve Reports</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before March 3rd, May 1st, August 1st and November 1st of each year, commencing November 1, 2024, the Issuer shall furnish to the Agent and the Holders a Reserve Report evaluating, as of December 31 (for each March delivery), March 31 (for each May delivery), June 30 (for each August delivery) and September 30 (for each November delivery), the Proved Reserves of the Issuer and the Note Parties located within the geographic boundaries of the United States of America. The Reserve Report as of December 31 (for each March delivery) of each year starting with December 31, 2024 shall be prepared by one or more Approved Petroleum Engineers, and the Reserve Report as of March 31 (for each May delivery), June 30 (for each August delivery) and September 30 (for each November delivery) of each year (beginning March 31, 2024), shall be a report prepared by or under the supervision of the chief engineer or qualified agent of the Issuer who shall, in each case, certify such Reserve Report to be true and accurate in all material respects and to have been prepared in accordance with the procedures used (x) with respect to each March delivery, the Reserve Report as of December 31, 2023 and (y) with respect to each May, August and November delivery, the immediately preceding December 31 Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With the delivery of each Reserve Report, the Issuer shall provide to the Agent and the Holders a Reserve Report Certificate from a Responsible Officer certifying that in all material respects: (i) the information contained in the Reserve Report and any other information delivered in connection therewith is true and correct to the best knowledge of the Issuer, it being understood by the Agent and the Holders that projections concerning volumes and production and cost estimates contained in each Reserve Report are necessarily based upon opinions, estimates and projections and that neither the Issuer nor such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate, (ii) the Issuer or another Note Party has good and defensible title to the Oil and Gas Properties evaluated in such Reserve Report (other than those (A) disposed of since the date of such Reserve Report as permitted in accordance with the terms hereof and (B) leases that have expired in accordance with their terms) and such Oil and Gas Properties are free of all Liens except for Liens permitted by <u>Section 7.03</u>, (iii) except as set forth on an exhibit to the certificate or previously disclosed to the Agent and the Requisite Holders in writing, to the extent the Note Parties take Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, on a net basis there are no gas imbalances, take or pay or other prepayments, the value of which exceed the volume threshold specified in <u>Section 4.16</u>, with respect to the Note Parties' Oil and Gas Properties evaluated in such Reserve Report which would require the Issuer or any other Note Party to deliver Hydrocarbons either generally or produced from such Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor, (iv) none of the Note Parties, Oil and Gas Properties have been sold since the "as of" date of the last Reserve Report except (A) those Note Parties, Oil and Gas Properties listed on such certificate as having been disposed or (B) as previously disclosed to the Agent and the Requisite Holders in writing, (v) [reserved] and (vi) attached thereto is a schedule demonstrating compliance (calculated at the time of delivery of such Reserve Report) with the Collateral Coverage Minimum.

**Section 6.12.** <u>Title Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before the delivery to the Agent and the Holders of each Reserve Report required by <u>Section 6.11(a)</u>, the Issuer will deliver title information (in form and substance reasonably acceptable to the Requisite Holders) covering enough of the Oil and Gas Properties evaluated by such Reserve Report that were not included in the immediately preceding Reserve Report, so that the Requisite Holders shall have received together with title information previously delivered to the Requisite Holders, reasonably satisfactory title information on at least 90% on the PV-10 of the Oil and Gas Properties evaluated by such Reserve Report.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Issuer has provided title information for additional Properties under <u>Section 6.12(a)</u> , the Issuer shall, within forty-five (45) days after notice from the Requisite Holders that title defects or exceptions exist with respect to such additional Properties, either (i) cure any such title defects or exceptions (including defects or exceptions as to priority) which are not permitted by <u>Section 7.03</u> raised by such information, (ii) substitute acceptable Mortgaged Properties with no title defects or exceptions except for those permitted by Section 7.03 having an equivalent value or (iii) deliver title information in form and substance reasonably acceptable to the Requisite Holders so that the Requisite Holders shall have received, together with title information previously delivered to the Requisite Holders, reasonably satisfactory title information on at least 90% of the PV-10 of the Oil and Gas Properties evaluated by such Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Issuer is unable to cure any title defect requested by the Requisite Holders to be cured within the forty-five (45) day period or the Issuer does not comply with the requirements to provide acceptable title information covering 90% of the PV-10 of the Oil and Gas Properties evaluated in the most recent Reserve Report, such default shall not be a Default, but instead the Agent and/or the Requisite Holders shall have the right to exercise the following remedy in their sole discretion from time to time, and any failure to so exercise this remedy at any time shall not be a waiver as to future exercise of the remedy by the Agent or the Requisite Holders. To the extent that Agent or the Requisite Holders are not satisfied with title to any Oil and Gas Properties evaluated in such Reserve Report after the periods described in <u>Section 6.12(b)</u> have elapsed, the Issuer shall, at the request of Agent (acting at the direction of Requisite Holders) or the Requisite Holders, (i) resubmit a revised Reserve Report to the Agent (for delivery to the Holders) removing such unacceptable Oil and Gas Property and such revised Reserve Report shall constitute the most recently delivered Reserve Report for all purposes under this Agreement and (ii) the Asset Coverage Ratio shall be recalculated and compliance with respect to such ratio shall be based upon the revised Reserve Report delivered under <u>clause (i)</u> above (and, with respect to such Oil and Gas Property that is unacceptable, the Asset Coverage Ratio shall be calculated and compliance with respect to such ratio shall be subject to the terms of <u>Section 1.05(a)(ii)</u> for so long as title to such Oil and Gas Property continues to be unacceptable).

**Section 6.13.** <u>Collateral and Guaranty Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the delivery of each Reserve Report hereunder, the Note Parties shall review the applicable Reserve Report, if any, and the list of current Mortgaged Properties (as described in <u>Section 6 .11(b)</u>) to ascertain whether the Mortgaged Properties represent at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the most recently completed Reserve Report (the "**Collateral Coverage Minimum**"). In the event that the PV-10 of the Mortgaged Properties (calculated at the time of redetermination) does not satisfy the Collateral Coverage Minimum, then the Note Parties shall, and shall cause their Restricted Subsidiaries to, grant, within thirty (30) days of delivery of the certificate required under <u>Section 6.11(b)</u> (or such longer period as the Requisite Holders may agree in their sole discretion, but not to extend beyond a total of ninety (90) days following the delivery of such certificate), to the Collateral Agent as security for the Obligations a first priority Lien interest subject to Liens permitted under <u>Section 7. 03</u> on additional Oil and Gas Properties of the Note Parties not already subject to a Lien of the Collateral Documents such that after giving effect thereto, the PV-10 of the Mortgaged Properties (calculated at the time of such redetermination) meets the Collateral Coverage Minimum. All such Liens will be created and perfected by and in accordance with the provisions of deeds of trust, mortgages, security agreements and financing statements or other Collateral Documents, all in form and substance reasonably satisfactory to the Requisite Holders and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes. In order to comply with the foregoing, if any Restricted Subsidiary places a Lien on its Oil and Gas Properties and such Restricted Subsidiary is not a Guarantor, then it shall become a Guarantor and comply with <u>Section 6.13(b)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that (i) the Issuer or any other Note Party creates or acquires any Restricted Subsidiary that is a Material Subsidiary or any Restricted Subsidiary is a Material Subsidiary or (ii) any Subsidiary incurs or guarantees any Debt, the applicable Note Party shall, within thirty (30) days from the date of such creation, acquisition, incurrence, or guarantee (or such later date as the Requisite Holders may agree in their sole discretion), cause such Restricted Subsidiary to execute and deliver the Guaranty Agreement and the Pledge and Security Agreement (or a supplement to such documents, as applicable) pursuant to which such Restricted Subsidiary shall guaranty the Obligations and grant a security interest in such Restricted Subsidiary's Collateral; <u>provided</u> that such Restricted Subsidiary will not own any Oil and Gas Properties until delivery of such Guaranty Agreement or Pledge and Security Agreement (or a supplement to such documents, as applicable); provided, further, that notwithstanding the foregoing, Excluded Subsidiaries shall not be required to become Guarantors or pledge any Collateral. In the event that the Issuer or any other Note Party creates or acquires any Restricted Subsidiary, the Note Party that owns the Equity Interests in such new Restricted Subsidiary shall execute and deliver a supplement to the Pledge and Security Agreement, pursuant to which such Note Party will ratify the pledge of all of the Equity Interests of such new Restricted Subsidiary to secure the Obligations. In connection with the foregoing, the Note Parties shall deliver to the Collateral Agent original certificates, if any, evidencing the Equity Interests of such new Restricted Subsidiary, together with appropriate undated stock powers for each certificate duly executed in blank by the registered owner thereof, and execute and deliver such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Agents or the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Agent, without the consent of the Requisite Holders, shall enter into any Mortgage in respect of any real property acquired by any Note Party after the Closing Date until the date that is, (A) if the Mortgage relating to such Mortgaged Property contains standard exclusionary language with respect to Improved Mortgaged Property, the date of acquisition of such Mortgaged Property or (B) if the Mortgage relating to such Mortgaged Property does not contain standard exclusionary language with respect to Improved Mortgaged Property, the date that is thirty (30) days after the Agent (acting at the direction of the Requisite Holders) has delivered to the Holders the following documents in respect of such real property: (1) a completed flood hazard determination from a third party vendor; (2) if such real property is located in a "special flood hazard area", (I) a notification to the applicable Note Parties of that fact and (if applicable) notification to the applicable Note Parties that flood insurance coverage is not available and (II) evidence of the receipt by the applicable Note Parties of such notice; and (3) if required by Flood Insurance Regulations, evidence of required flood insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No MIRE Event may be closed, without the consent of the Requisite Holders, until the date that is, (A) if the Mortgage relating to all Mortgaged Properties contains standard exclusionary language with respect to Improved Mortgaged Property, the date of such MIRE Event or (B) if the Mortgage relating to all Mortgaged Properties does not contain standard exclusionary language with respect to Improved Mortgaged Property, thirty (30) days after the Agent (acting at the direction of the Requisite Holders) has delivered to the Holders the

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following documents in respect of such real property: (1) a completed flood hazard determination from a third party vendor; (2) if such real property is located in a "special flood hazard area", (I) a notification to the applicable Note Parties of that fact and (if applicable) notification to the applicable Note Parties that flood insurance coverage is not available and (II) evidence of the receipt by the applicable Note Parties of such notice; and (3) if required by Flood Insurance Regulations, evidence of required flood insurance.

**Section 6.14.** <u>ERISA Compliance</u>. The Note Parties will promptly furnish and will cause the Restricted Subsidiaries to promptly furnish to the Holders if specifically requested in writing by any Holder, promptly after the filing thereof with the United States Secretary of Labor or the Internal Revenue Service, copies of each annual report (Form 5500 series) with respect to each Plan sponsored by the Issuer or a Restricted Subsidiary or any trust created thereunder.

**Section 6.15.** <u>Commodity Exchange Act Keepwell Provisions</u>. The Note Parties hereby guarantees the payment and performance of all of the Obligations of each Note Party (other than the Issuer) and absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Note Party (other than the Issuer) in order for such Note Party to honor its obligations under its respective Guaranty Agreement including obligations with respect to Swap Agreements (<u>provided</u>, <u>however</u>, that the Issuer shall only be liable under this <u>Section 6.15</u> for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this <u>Section 6.15</u>, or otherwise under this Agreement or any Note Document, as it relates to such other Note Parties, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of the Note Parties under this <u>Section 6.15</u> shall remain in full force and effect until Payment in Full. The Note Parties intend that this <u>Section 6.15</u> constitute, and this <u>Section 6.15</u> shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each other Note Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

**Section 6.16.** <u>Deposit Accounts and Securities Accounts</u>. Subject to <u>Section 6.19</u>, each of the Issuer and the other Note Parties shall (at its own expense) cause each of its Deposit Accounts, each of its Commodity Accounts and each of its Securities Accounts to be subject to a Control Agreement; <u>provided</u>, no such Control Agreement shall be required for Excluded Accounts.

**Section 6.17.** <u>Use of Proceeds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The proceeds of the Notes will be used for the purposes set forth in <u>Section 2.04</u>, and not, for the avoidance of doubt, any Restricted Payment, any return of capital to the Issuer's Equity Interest holders or any other distribution. No part of the proceeds of the Notes will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties shall not use, and the Note Parties shall procure that their Subsidiaries and their and their respective directors, officers, employees and agents shall not use, the proceeds of the Notes (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, to the extent that such activities, businesses or transaction would be prohibited by Sanctions if conducted by a corporation incorporated in the U.S. or the European Union or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

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**Section 6.18.** <u>Swap Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or prior to the Closing Date the Note Parties shall enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Closing Date, seventy-five percent (75%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties shall prior to the end of each Fiscal Quarter enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the end of the applicable Fiscal Quarter, sixty-five percent (65%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of (i) gas and (ii) at all times when the Note Parties are producing more than 200 net barrels of oil per day, oil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or prior to the Closing Date the Note Parties shall enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Closing Date, fifty percent (50%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of Appalachia Gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Note Parties shall prior to the end of each Fiscal Quarter enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the end of the applicable Fiscal Quarter, forty percent (40%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of Appalachia Gas.

**Section 6.19.** <u>Post-Closing Covenant</u>. Within thirty (30) days of the Closing Date (or such later date with the consent of the Requisite Holders in their sole discretion), the Agent and the Holders shall have received (a) a Mortgage encumbering each Mortgaged Property in favor of the Collateral Agent, duly executed and acknowledged by each Note Party that is the owner of or holder of any interest in such Mortgaged Property, and otherwise in form for recording in the recording office of each applicable jurisdiction where each such Mortgaged Property is situated and that will, when properly recorded (or when the applicable financing statements related thereto are properly filed or such other actions needed to perfect are taken) create a valid, perfected first priority security interest (after giving effect to Excepted Liens identified in <u>clauses (a)</u> through <u>(d)</u>, <u>(f)</u> and <u>(i)</u> of the definition thereof, but subject to the provisos at the end of such definition) on at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the Initial Reserve Report and Acquired Assets Reserve Report on a consolidated basis, (b) customary legal opinions of local counsel for the relevant Note Parties in the jurisdiction where such Mortgaged Property is located and (c) Control Agreements for each of the Note Parties' Deposit Accounts, Commodity Accounts and Securities Accounts required to be delivered pursuant to <u>Section 6.16</u>.

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**ARTICLE VII** 

**NEGATIVE COVENANTS** 

Each Note Party covenants and agrees with the Agents and each of the Holders that, until Payment in Full, each Note Party will not, and will cause its Subsidiaries not to:

**Section 7.01.** <u>Financial Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Consolidated Total Net Leverage Ratio</u>. The Issuer will not, (i) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on December 31, 2024) permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 3.50 to 1.00 and<u>,</u> (ii) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on June 30, <u>2025) permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 4.00 to 1.00, (iii) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on March 31,</u> 2026), permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 3.00<u>3.50 to 1.00 and (iv) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on March 31, 2027), permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 3.25</u> <u>to 1.00.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Asset Coverage Ratio</u>. The Issuer will not permit the Asset Coverage Ratio (determined by reference to the most recently delivered Reserve Report on a Pro Forma Basis) (i) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending December 31, 2024) to be less than 1.00 to 1.00 and (ii) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on June 30<u>March 31</u>, 2026<u>2027</u>) to be less than 1.20<u>1.10</u> to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Right to Cure</u>. In the event the Issuer fails to comply with the requirements of <u>Sections 7.01(a)</u> or <u>7.01(b)</u>, beginning on the first date after the last day of the Fiscal Quarter for which the financial covenants in <u>Sections 7.01(a)</u> or <u>7.01(b)</u> are being tested, until the expiration of the tenth Business Day subsequent to the date the compliance certificate for calculating the Consolidated Total Net Leverage Ratio and the Asset Coverage Ratio is required to be delivered pursuant to <u>Section 6.01(c)</u> (the "**Cure Period**"), the Issuer shall be permitted to cure such failure to comply by requesting that the Consolidated Total Net Leverage Ratio and/or the Asset Coverage Ratio be recalculated by reducing the Issuer's Total Net Debt as the result of a prepayment of the Notes in accordance with <u>Section 2.09(a)</u> for the Fiscal Quarter most recently ended by an amount equal to the proceeds received by the Issuer from a Specified Equity Contribution during a Cure Period (such amount, with respect to any Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default, a "**Cure Amount**"); <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Issuer delivers written notice to the Agent (for delivery to the Holders) on or prior to the date of a timely delivered certificate required by <u>Section 6.01(c)</u> that it has elected to cure the failure to comply and clearly setting forth such Specified Equity Contribution in the computation required by <u>Section 6.01(c)(ii)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the amount of the Cure Amount shall not be greater than the amount required to cause the Issuer to be in compliance with <u>Section 7.01(a)</u> or <u>7.01(b)</u>, as applicable, and a Cure Amount may be applied to more than one financial covenant during the same Cure Period;

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(iii)(A) any such reduction in the Issuer's Total Net Debt shall be taken into account in calculating the Consolidated Total Net Leverage Ratio for the purpose of determining compliance or noncompliance with <u>Section 7.01(a)</u> of the last day of any Rolling Period that includes the last Fiscal Quarter of the four (4) quarter period with respect to which such cure right was exercised; and (B) any such reduction in the Issuer's Total Net Debt taken into account in calculating the Asset Coverage Ratio shall only be applied for such single quarterly testing of the Asset Coverage Ratio, in each case, pursuant to this <u>Section 7.01(c)</u>, and in each case shall be applied solely for the purpose of determining compliance or non-compliance with <u>Section 7.01(a)</u> and/or <u>7.01(b)</u> as of the last day of any Rolling Period that includes such Fiscal Quarter or as of the last day of such Fiscal Quarter, as applicable, and not for any other purpose under any Note Document (including any determination of *pro forma* compliance with the Consolidated Total Net Leverage Ratio or Asset Coverage Ratio for the purposes of making any Restricted Payment or any other purpose (even if the proceeds of any Specified Equity Contribution are actually used to reduce Debt, including in connection with any Cure Amount applied to cure the Asset Coverage Ratio or the Consolidated Total Net Leverage Ratio));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Issuer may not cure any Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default by an equity cure more than (A) two (2) times during any period of four (4) consecutive Fiscal Quarters or (B) five (5) times prior to the Maturity Date (<u>provided</u> that, if the Issuer exercises its cure right prior to the date financial statements are required to be delivered for a relevant Fiscal Quarter solely with respect to an anticipated Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default and the Cure Amount associated therewith is insufficient to cure a Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default with respect to such Fiscal Quarter, any subsequent exercise of a cure right prior to the expiration of the applicable Cure Period to "top-up" such Cure Amount shall not count as an additional exercise of the cure right); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If after giving effect to the foregoing recalculations, the Issuer would then be in compliance with <u>Sections 7.01(a)</u> and/or <u>7.01(b)</u>, the Issuer shall be deemed to have satisfied the requirements of <u>Sections 7.01(a)</u> and <u>7.01(b)</u> as of the relevant earlier required date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable Event of Default under any such covenant that had occurred shall be deemed cured for the purpose of this Agreement and the other Note Documents.

If the Issuer has certified in writing to the Agents and Holders that it will provide a Specified Equity Contribution to cure each Event of Default having occurred under <u>Sections 7.01(a)</u> or <u>7.01(b)</u> for such Cure Period, neither the Agents nor any Holder shall exercise the right to accelerate the Obligations or terminate the Commitments and none of Agents, any Holder or any Secured Party shall exercise any right to foreclose on or take possession of the Collateral or exercise any other remedy pursuant to <u>Section 9. 01</u>, the other Note Documents or applicable law prior to the end of the applicable Cure Period solely on the basis of an Event of Default having occurred and continuing under <u>Sections 7.01(a)</u> or <u>7.01(b)</u>; <u>provided</u> that, for avoidance of doubt, such an Event of Default shall be understood to have occurred and be continuing until cured in accordance with and in the time frame permitted by this <u>Section 7.01(c)</u>.

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**Section 7.02.** <u>Debt</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, incur, create, assume or suffer to exist any Debt, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Notes or other Obligations arising under the Note Documents or any guaranty of or suretyship arrangement for the Notes or other Obligations arising under the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Debt under Finance Leases and Purchase Money Debt not to exceed $500,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Debt associated with bonds, guarantees, letters of credit or surety obligations, in each case required by Governmental Requirements or third parties incurred in the ordinary course of business, in each case in connection with the operation of the Oil and Gas Properties and not in connection with money borrowed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) intercompany Debt between the Note Parties or between Restricted Subsidiaries to the extent permitted by <u>Section 7.05(d)</u>; <u>provided</u> that such Debt is not held, assigned, transferred, negotiated or pledged to any Person other than the Note Parties, and, <u>provided</u>, <u>further</u>, that any such Debt owed by either the Issuer or a Guarantor shall be subordinated to the Obligations on terms set forth in the Guaranty Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) endorsements of negotiable instruments for collection in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Debt constituting a guarantee by any Note Party of any Debt incurred by another Note Party so long as the incurrence of such Debt by such other Note Party is otherwise permitted by this <u>Section 7.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Debt arising under (i) Swap Agreements permitted by <u>Section 7.13</u> and (ii) customary bank products incurred in the ordinary course of business of the Issuer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) other additional unsecured Debt (excluding any Debt set forth in <u>clause (a)</u> of the definition thereof) in an aggregate outstanding principal amount not to exceed $1,000,000; <u>provided</u> that no Indebtedness incurred, created, assumed or suffered to exist with respect to WhiteHawk – Equity Holdings, LP shall be permitted under this <u>Section 7.02(h)</u>.

**Section 7.03.** <u>Liens</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, create, incur, assume or permit to exist any Lien on any of its Properties (now owned or hereafter acquired), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens securing the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Excepted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens in respect of Debt permitted by <u>Section 7.02(b)</u>, but only to the Property under lease or the Property purchased, constructed or improved with such Debt; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) other Liens affecting property or assets of the Note Parties or any of their Restricted Subsidiaries securing obligations in an aggregate principal amount outstanding not to exceed $1,000,000.

Notwithstanding anything to the contrary in any Note Documents, (a) none of the Liens permitted pursuant to this <u>Section 7 .03</u> (other than Excepted Liens and Liens securing the Notes) may at any time attach to any Oil and Gas Properties of the Note Parties and their Restricted Subsidiaries, (b) none of the Liens permitted pursuant to this <u>Section 7.03</u> (other than Liens permitted pursuant to this <u>Section 7.03</u> which have priority by operation of Law) shall be superior to the Lien of the Collateral Agent on any mineral interests and mineral royalty interests and similar holdings of the Note Parties and their Restricted Subsidiaries and (c) no intent to subordinate the first priority status afforded by the Liens granted in favor of the Collateral Agent (for the benefit of the Secured Parties, as provided in the Collateral Documents) is to be hereby implied or expressed by the permitted existence of the Liens permitted pursuant to this <u>Section 7.03</u>.

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**Section 7.04.** <u>Dividends and Distributions</u>. The Note Parties will not, and will not permit any of their Restricted Subsidiaries to, declare or make, directly or indirectly, any Restricted Payment, return any capital to its Equity Interest holders, or make any distribution of its Property to its Equity Interest holders, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the proviso set forth in the definition of "Monthly Common Equity Dividends", the Issuer may declare and pay dividends with respect to its common Equity Interests payable solely in additional shares of its common Equity Interests (other than Disqualified Capital Stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Restricted Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to (x) no Default or Event of Default continuing or resulting from such Restricted Payment, (y) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (z) the Issuer being in pro forma compliance with <u>Article VI</u> and <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) during Distribution Period A for any "Applicable Distribution Period" as set forth in <u>Appendix C</u>, prior to the "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first*, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.50<u>3.75</u> to 1.00 and (2) an Asset Coverage Ratio of greater than 1.10<u>1.05</u> to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Monthly Common Equity Dividends and Monthly Preferred Equity Dividends to the holders of its Equity Interests, (II) pay AUM Fees and/or Dividend Incentive Fees and (III) make Specified Equity Redemptions (clauses (I), <u>and</u> (II) and (III), collectively, "**Primary Distributions**") with Distributable Free Cash Flow only and make Monthly<u>and (III) make Specified Period A</u> Equity Redemptions ("**Secondary Distributions**") with Distributable Free Cash Flow only and (B) *second*, in the event Distributable Free Cash Flow is positive following the application of <u>Section 7.04(c)(i)(A)</u>, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.00 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.20 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests with Distributable Free Cash Flow only;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) during Distribution Period B for any "Applicable Distribution Period" as set forth in <u>Appendix C</u> prior to "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first*, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.25 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.175<u>1.10</u> to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Primary Distributions <u>and/or Specified</u> <u>Period B/C Level II Equity Redemptions</u> with Distributable Free Cash Flow only and (B) *second*, in the event Distributable Free Cash Flow is positive following the application thereof under <u>Section 7.04(c)(ii)(A)</u>, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.75 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.30 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make Secondary Distributions <u>Specified Period B/C Level II Equity Redemptions</u> and make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests, in each case with Distributable Free Cash Flow only; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) during Distribution Period C for any "Applicable Distribution Period" as set forth in <u>Appendix C</u> prior to "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first* , further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.50<u>2.75</u> to 1.00 and (2) an Asset Coverage Ratio of greater than 1.225<u>1.15</u> to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Primary Distributions <u>and/or Specified Period B/C Level II Equity Redemptions</u> with Distributable Free Cash Flow only, (B) *second*, in the event Distributable Free Cash Flow is positive following the application thereof under <u>Section 7.04(c)(iii)(A)</u>, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00 and (3) the aggregate principal amount of Notes outstanding as of such date of distribution is equal to or less than the Target Debt Balance as of such date of distribution, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make Secondary Distributions<u>Specified Period B/C Level II Equity Redemptions</u> with Distributable Free Cash Flow only and make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests, in each case with Distributable Free Cash Flow only;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to (i) no Default or Event of Default continuing or resulting from such Restricted Payment, (ii) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (iii) the Issuer being in pro forma compliance with <u>Article VI</u> and <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.</u>01, Restricted Payments set forth on <u>Schedule 7.04</u> (the "<u>Specified RPs</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) During Distribution Period B, the Issuer may make Redemptions of Series A<u>C</u> Preferred Shares in an aggregate amount not to exceed $15,000,000<u>20,000,000</u> with the proceeds of common equity or Series B Preferred Share issuances made following the Closing<u>First Amendment Effective</u> Date (the "**Specified Issuance Proceeds**") and applied towards such Redemptions of Series A<u>C</u> Preferred Shares within thirty (30) days of any such common equity or Series B Preferred Share issuances subject to (i) no Default or Event of Default continuing or resulting from such Restricted Payment, (ii) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (iii) the Issuer being in pro forma compliance with <u>Article VI</u> and, subject to <u>clause (iv)</u> below, <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01(o)</u> and <u>Section 6.01(u)</u>) and (iv) the Issuer being in compliance on a Pro Forma Basis with (A) a Consolidated Total Net Leverage Ratio of less than 3.25 to 1.00 and (B) an Asset Coverage Ratio of greater than 1.175<u>1.10</u> to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(f)</u> <u>During Distribution Period C, the Issuer may make Redemptions of Series C Preferred Shares in an aggregate amount not to exceed $20,000,000 with Specified Issuance Proceeds and applied towards such Redemptions of Series C Preferred Shares within thirty (30) days of any such common equity or Series B Preferred Share issuances subject to (i) no Default or Event of Default continuing or resulting from such Restricted Payment, (ii) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (iii) the Issuer being in pro forma compliance with Article VI and, subject to clause (iv) below, Article VII (including, without limitation, the Issuer providing the notices, certificates and financial information required by Section 6.01(o) and Section 6.01(u)) and (iv) the Issuer</u> <u>being in compliance on a Pro Forma Basis with (A) a Consolidated Total Net Leverage Ratio of less than 2.75 to 1.00 and (B) an Asset Coverage Ratio of greater than 1.15 to 1.00</u>

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Notwithstanding anything to the contrary<u>,</u> any Restricted Payment declared, made or agreed to be declared or made in reliance on clause <u>(c)</u> of this <u>Section 7.04</u> shall be made with Distributable Free Cash Flow only.

Notwithstanding anything to the contrary contained herein or any other Note Document, (a) no Restricted Payment shall be made under this <u>Section 7.04</u> to any Unrestricted Subsidiary and (b) Restricted Payments to WhiteHawk – Equity Holdings, LP shall be permitted except, to the extent such Investment constitutes a Restricted Payment, Investments made pursuant to <u>Section 7.05(k)</u>.

**Section 7.05.** <u>Investments and Advances</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, make or permit to remain outstanding any Investments in or to any Person, except that the foregoing restriction shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investments as of the Closing Date which are disclosed to the Holders in <u>Schedule 7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) accounts receivable arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Investments in Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investments (i) made by the Issuer in or to the Guarantors (including any new Restricted Subsidiary that becomes a Guarantor in compliance herewith substantially contemporaneously with such Investment being made), (ii) made by any Guarantor in or to the Issuer or any other Guarantor and (iii) made by any Restricted Subsidiary in or to the Issuer or the Guarantors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Investments in stock, obligations or securities received in settlement of debts arising from Investments permitted under this <u>Section 7.05</u> and accounts receivable owing to the Issuer or any Restricted Subsidiary as a result of a bankruptcy or other insolvency proceeding of the obligor in respect of such debts or upon the enforcement of any Lien in favor of the Issuer or any of its Restricted Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Investments pursuant to Swap Agreements otherwise permitted under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Investments consisting of non-cash consideration received in connection with dispositions or transfers permitted pursuant to <u>Section 7.09</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Subject to (x) no Default or Event of Default continuing or resulting from such Investment, (y) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (z) the Issuer being in pro forma compliance with <u>Article VI</u> and <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01(o)</u> and <u>Section 6.01(u)</u>), in the event Distributable Free Cash Flow is positive following the application thereof under (i) <u>Section 7.04(c)(i)(A)</u> and <u>Section 7.04(c)(i)(B)</u> during Distribution Period A, (ii) <u>Section 7.04(c)(ii)(A)</u> and <u>Section 7.04(c)(ii)(B)</u> during Distribution Period B or (iii) <u>Section 7.04(c)(iii)(A)</u> and <u>Section 7.04(c)(iii)(B)</u> during Distribution Period C and the aggregate principal amount of Notes outstanding as of such date of distribution is equal to or less than the Target Debt Balance as of such date of distribution, as applicable, make Investments constituting the acquisition of (x) Oil & Gas Properties or (y) Equity Interests of any entity with no material assets other than Oil and Gas Properties;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Investments to the extent constituting Debt, distributions or dispositions permitted under <u>Sections 7.02</u>, <u>7.04</u> or <u>7.09</u>, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) acquisitions of Oil & Gas Properties so long as (i) the Issuer is in pro forma compliance with <u>Section 7.01</u> and (ii) such acquisitions are funded solely with the proceeds of common equity issuances; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Investments in an aggregate amount not to exceed $500,000. <u>; and</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(l)</u> <u>the Specified SJM Acquisition.</u> 

Notwithstanding anything to the contrary contained herein or any other Note Document, (a) no Investments in Unrestricted Subsidiaries shall be permitted under this <u>Section 7.05</u> and (b) no Investments in WhiteHawk – Equity Holdings, LP shall be permitted except for pursuant to <u>Section 7.05(k)</u>.

**Section 7.06.** <u>Nature of Business; Wholly-Owned Subsidiaries; No International Operations</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, (a) allow any material change to be made in the character of its business as owners of minerals interests and mineral royalty interests and other non-operating interests in upstream Oil and Gas Properties, or (b) allow any Guarantor to cease to be a Wholly-Owned Subsidiary of the Issuer other than as a result of a sale of all of the Equity Interests of such Guarantor or a merger of such Guarantor permitted under <u>Section 7.08</u> or <u>7.09</u>. Without limiting the foregoing, the Note Parties and their Restricted Subsidiaries shall not permit, including after giving effect to any disposition, Investment or acquisition permitted hereunder, the portion of the Total PDP PV-10 Value of their Oil and Gas Properties directly attributable to the ownership of the Note Parties and their Restricted Subsidiaries in mineral interests and mineral royalty interests to be less than 95% of the Total PDP PV-10 Value of the Note Parties' and their Restricted Subsidiaries' Oil and Gas Properties, and the remaining 5% or less of the Total PDP PV -10 Value of their Oil and Gas Properties shall be comprised of non-operating interests in upstream Oil and Gas Properties; <u>provided</u> that, solely for purposes of this <u>Section 7.06</u>, "Total PDP PV-10 Value" shall include the book value of any Oil and Gas Property that does not have PV-10 Value. From and after the Closing Date, the Issuer and its Restricted Subsidiaries will not acquire or make any other expenditure (whether such expenditure is capital, operating or otherwise) in or related to, any Oil and Gas Properties not located within the geographical boundaries of and subject to the jurisdiction of the United States of America. The Note Parties and their Restricted Subsidiaries shall at all times remain organized under the laws of the United States of America or any State thereof or the District of Columbia.

**Section 7.07.** <u>ERISA Compliance</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) engage in, or permit any ERISA Affiliate to engage in, any transaction in connection with which the Note Parties, a Restricted Subsidiary or any ERISA Affiliate could reasonably be expected to be subjected to either a civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502 of ERISA or a tax imposed by Chapter 43 of Subtitle D of the Code with respect to a Plan that, in either case, could reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) fail to make, or permit any ERISA Affiliate to fail to make, full payment when due of all amounts which, under the provisions of any Plan, agreement relating thereto or applicable law, the Note Parties, a Restricted Subsidiary or any ERISA Affiliate is required to pay as contributions thereto, if a Material Adverse Effect would result.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) contribute to or assume an obligation to contribute to any employee welfare benefit plan, as defined in Section 3(1) of ERISA that provides benefits to former employees of such entities other than as required by applicable law and that may not be terminated by such entities in their sole discretion at any time without resulting in a Material Adverse Effect.

**Section 7.08.** <u>Mergers, Etc</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, merge into or with or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of its Property to any other Person (whether now owned or hereafter acquired) (any such transaction, a "**Consolidation**"), or liquidate or dissolve; <u>provided</u> that (a) any Restricted Subsidiary may participate in a Consolidation with the Issuer or any Guarantor (<u>provided</u> that the Issuer shall be the continuing or surviving entity in any such transaction involving the Issuer, and a Guarantor shall be the continuing or surviving entity of any such transaction not involving the Issuer), (b) any Guarantor may participate in a Consolidation with another Guarantor, (c) any Restricted Subsidiary that is not a Guarantor may consolidated into any other Restricted Subsidiary that is not a Guarantor or (d) any Restricted Subsidiary may liquidate or dissolve so long as its assets (if any) are distributed to the Issuer or another Guarantor prior to such liquidation or dissolution.

**Section 7.09.** <u>Sale of Properties and Termination of Swap Agreements</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, dispose, sell, assign, farm-out, convey or otherwise transfer any Property or to terminate or otherwise monetize any Swap Agreement in respect of commodities except for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sale of Hydrocarbons in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) farm-outs of undeveloped acreage to which no proved reserves are attributed in the most recently delivered Reserve Report and assignments in connection with such farmouts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the sale or transfer of equipment that is no longer necessary for the business of the Note Parties or such Restricted Subsidiary or that is replaced by equipment of at least comparable value and use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the sale or other disposition (including Casualty Events resulting in the transfer of any Oil and Gas Property or any interest therein) of (i) any Oil and Gas Property or any interest therein or any Restricted Subsidiary owning Oil and Gas Properties and (ii) the termination or monetization of any Swap Agreement in respect of commodities; <u>provided</u> that:

(i)(A) no Event of Default exists or results from such sale or disposition of Property or the termination or monetization of any Swap Agreement (after giving effect to the substantially concurrent use of proceeds therefrom) and (B) all such sales or other dispositions are for Fair Market Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) not less than one hundred percent (100%) of the consideration received in respect of such sale or other disposition shall be cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) it is understood that <u>Section 7.09(d)</u> shall not impair the obligation to satisfy <u>Section 6.20</u> at all times, including the obligation to maintain the Swap Agreements entered into pursuant thereto;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the consideration received in respect of such sale or other disposition shall be for Fair Market Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no Event of Default exists or results from such sale or disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if any such disposition is of a Restricted Subsidiary owning Oil and Gas Properties, such disposition shall include all the Equity Interests of such Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) non-exclusive licenses of intellectual property, none of which, in the aggregate, materially impair the operation of the business of the Note Parties or any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the abandonment of intellectual property that is no longer material to the operation of the business of the Note Parties or any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Equity Interests of any Restricted Subsidiary of the Note Parties transferred to any Note Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) assets of any Note Party to another Note Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any disposition in the form of a Restricted Payment permitted pursuant to <u>Section 7.04</u> or an Investment permitted pursuant to <u>Section 7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the termination or unwind of any Swap Agreements in respect of commodities solely to the extent required to comply with <u>Section 7.13(d)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) dispositions having a fair market value not to exceed $500,000 in the aggregate.

Notwithstanding anything to the contrary herein or any other Note Document, (x) no sale, arrangement, farm-out, conveyance or other transfer shall be permitted under this <u>Section 7.09</u> to any Unrestricted Subsidiary and (y) the Note Parties will not, and will not permit any Restricted Subsidiary, to sell, grant, issue or otherwise enter into any volumetric production payments, dollar-denominated production payment (or any other "VPP" financing), "drillcos" and other similar synthetic financings, or otherwise dispose of or sell Hydrocarbons in place that would require the Note Parties or their Restricted Subsidiaries to deliver Hydrocarbons at some future time without then or thereafter receiving full prepayment therefor.

**Section 7.10.** <u>Transactions with Affiliates</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of Property or the rendering of any service, with any Affiliate (other than transactions between the Issuer and any Guarantor and transactions between Guarantors) unless such transactions are not prohibited under this Agreement and are upon fair and reasonable terms no less favorable to it than it would obtain in a comparable arm's length transaction with a Person not an Affiliate provided that the foregoing restrictions shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) equity issuances, distributions or other acquisitions or retirements of Equity Interests by the Issuer to the extent permitted by <u>Section 7.04</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the payment of expenses and management fees pursuant to the Administrative Services Agreement and Investment Management Agreement.

**Section 7.11.** <u>Subsidiaries</u>. No Note Party or its Subsidiaries shall (a) form or acquire any Subsidiary, except any wholly-owned Domestic Subsidiary subject to compliance with <u>Section 6.11(c)</u>, or (b) enter into any partnership, joint venture or similar arrangement other than as set forth on <u>Schedule 7.11</u>.

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**Section 7.12.** <u>Negative Pledge Agreements</u>; <u>Dividend Restrictions</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, create, incur, assume or suffer to exist any contract, agreement or understanding which in any way prohibits or restricts the granting, conveying, creation or imposition of any Lien on any of their Property in favor of the Collateral Agent and the Secured Parties or restricts any Restricted Subsidiary from paying dividends or making distributions to any Note Party, or which requires the consent of or notice to other Persons in connection therewith, other than (a) this Agreement and the Collateral Documents, (b) with respect to the ability of a Restricted Subsidiary to make dividends or distributions to a Note Party, agreements or arrangements evidencing Excepted Liens permitted by <u>Section 7.03</u> to the extent such restriction applies only to the property subject to such Lien, (c) customary restrictions and conditions with respect to the sale or disposition of Property or Equity Interests permitted under <u>Section 7.09</u> pending the consummation of such sale or disposition, (d) with respect to the ability of a Restricted Subsidiary to make dividends or distributions to a Note Party, any leases or licenses or similar contracts as they affect any Property (other than Oil and Gas Properties) subject to such lease or license and customary prohibitions on assignment contained in software license agreements, (e) customary provisions restricting subletting or assignment of any lease governing a leasehold interest (other than any Oil and Gas Property) of the Issuer or any Restricted Subsidiary, (f) as it relates to the assets that are the subject thereof, purchase money obligations for property acquired in the ordinary course of business and obligations under Finance Leases that impose restrictions on transferring the property so acquired, (g) prohibitions or restrictions imposed by any Governmental Requirement, and encumbrances or restrictions imposed by any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings referred to in <u>clauses (a)</u> through <u>(g)</u> above; <u>provided</u> that such amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings are no more restrictive in any material respect with respect to such encumbrance and other restrictions taken as a whole than those prior to such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing.

**Section 7.13.** <u>Swap Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will not, and will not permit any Restricted Subsidiary to, enter into any Swap Agreements with any Person other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Swap Agreements entered into Not for Speculative Purposes by the Note Parties with an Approved Counterparty in respect of commodities (at market prices) the net notional volumes for which (when aggregated with other commodity Swap Agreements then in effect, other than puts, floors and basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date the latest hedging transaction is entered into under a Swap Agreement, 85% of the reasonably anticipated Hydrocarbon production of oil, gas and natural gas liquids, calculated separately, from the Note Parties' total Proved Reserves for the sixty (60) month period from the date of creation of such hedging arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Swap Agreements entered into Not for Speculative Purposes by the Note Parties in respect of interest rates with an Approved Counterparty, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Swap Agreements effectively converting interest rates from fixed to floating, the notional amounts of which (when aggregated with all other Swap Agreements of the Note Parties and their Restricted Subsidiaries then in effect effectively converting interest rates from fixed to floating) do not exceed 75% of the anticipated outstanding principal amount of the Note Parties' Debt for borrowed money which bears interest at a fixed rate, and which Swap Agreements shall not, in any case, have a tenor beyond the maturity date of such Debt, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Swap Agreements effectively converting interest rates from floating to fixed, the notional amounts of which (when aggregated with all other Swap Agreements of the Note Parties and their Restricted Subsidiaries then in effect effectively converting interest rates from floating to fixed) do not exceed 75% of the anticipated outstanding principal amount of the Note Parties' Debt for borrowed money which bears interest at a floating rate, and which Swap Agreements shall not, in any case, have a tenor beyond the maturity date of such Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In no event shall any Swap Agreement contain any requirement, agreement or covenant for the Note Parties or any Restricted Subsidiary to post collateral, credit support (including in the form of letters of credit) or margin to secure their obligations under such Swap Agreement or to cover market exposures (other than pursuant to the Collateral Documents); for the avoidance of doubt, this <u>Section 7.13(b)</u> shall not prohibit the granting of security to secure the Secured Hedge Obligations pursuant to the Collateral Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of entering into or maintaining Swap Agreement trades or transactions under <u>Section 7.13(a)</u>, forecasts of reasonably anticipated production from the Note Parties' and their Restricted Subsidiaries' Oil and Gas Properties constituting Proved Reserves as set forth on the most recent Reserve Report delivered pursuant to the terms of this Agreement shall be revised to account for any increase or decrease therein anticipated because of information obtained by the Note Parties or any of their Restricted Subsidiaries and delivered to the Agent subsequent to the publication of such Reserve Report including the Note Parties' or any of their Restricted Subsidiaries' internal forecasts of production decline rates for existing wells and additions to or deletions from anticipated future production from new or existing wells and completed acquisitions coming on stream or failing to come on stream as well as completed dispositions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If, as of the last day of any calendar quarter, the notional volumes of all Swap Agreements then in effect in respect of commodities for such calendar quarter (other than the notional volumes of (x) puts, options, or floors with respect to which neither the Note Parties nor any Restricted Subsidiaries have any payment obligation other than premiums and other charges (it being understood that the payment of such obligations may be deferred but that the total amount of which are fixed and known at the time such transaction is entered into) and (y) basis differential swaps on volumes already hedged pursuant to other Swap Agreements for Hydrocarbons) exceed 100% of actual production of Hydrocarbons in such calendar quarter for oil, gas and natural gas liquids, calculated separately, then the Note Parties (i) shall promptly send notice to the Agent (for distribution to the Holders) and (ii) shall, within ten (10) Business Days of such determination, enter into offsetting Swap Agreements or terminate or unwind such Swap Agreements such that, at such time, future hedging volumes will not exceed 100% of reasonably anticipated projected production for the then-current and any succeeding calendar quarters for oil, gas and natural gas liquids, calculated separately.

**Section 7.14.** <u>Designation and Conversion of Restricted and Unrestricted Subsidiaries</u>. Notwithstanding anything to the contrary contained herein or any other Note Document, no Note Party may designate any Restricted Subsidiary, including a newly formed or newly acquired Subsidiary, as an Unrestricted Subsidiary.

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**Section 7.15.** <u>Organizational Documents</u>. Neither the Issuer nor any Restricted Subsidiary shall amend, modify or change its Organizational Documents, including the operating agreement, in any manner materially adverse to the rights or interests of the Holders (it being understood that (a) any amendment, modification or change of Organizational Documents that would impair or restrict the Liens of the Secured Parties on the Equity Interests of such Persons or their value (including after foreclosure), or the ability of the Secured Parties to exercise their rights and remedies with respect thereto under the Collateral Documents and (b) any amendment, modification or change, or waiver or consent to Section 4(b), Section 5, Section 6 and any provision relating to the assignment or termination thereof of the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, (c) Section 5, Section 6(a) and Section 6(b) of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation and (d) Section 6.04 or any provision relating to the pledge of equity in the Issuer's bylaws, in each shall be materially adverse to the rights and interests of the Holders).

**Section 7.16.** <u>Changes in Fiscal Year</u>. The Note Parties shall not, and shall not permit any Restricted Subsidiary to have its Fiscal Year end on a date other than December 31 or change its method of determining Fiscal Quarters.

**Section 7.17.** <u>Amendments to Material Agreements</u>. Neither the Issuer nor any Restricted Subsidiary shall amend, modify or change, or waive or consent to an amendment or modification of any material provision to, the Investment Management Agreement and the Administrative Services Agreement, in each case in any manner materially adverse to the rights or interests of the Holders (it being understood that any amendment, modification or change, or waiver or consent to Sections 4(a), (b) and (c) of the Investment Management Agreement shall be deemed materially adverse to the rights and interests of the Holders).

**Section 7.18.** <u>General and Administrative Costs</u>. The Note Parties shall not, and shall not permit any of their Restricted Subsidiaries to, make, directly or indirectly any payments in respect of General and Administrative Costs in any Fiscal Year other than cash payments which, when aggregated with all other General and Administrative Costs paid in cash by the Note Parties or any of the Restricted Subsidiaries during such Fiscal Year, do not exceed $3,000,000 in the aggregate<u>; provided that, for the purposes of this Section 7.18 only, one-time transaction-related expenses incurred in connection with the First Amendment shall not constitute General and Administrative Costs</u>.

**ARTICLE VIII** 

**PASSIVE HOLDING COMPANY STATUS OF THE ISSUER** 

Commencing on the Closing Date and until Payment in Full, the Issuer covenants and agrees with the Holders that it will not create, incur, assume or suffer to exist any Debt other than the Obligations or Lien other than Liens securing the Obligations, nor will it engage at any time in any business or business activity or hold or own any Property other than (a) the ownership of Equity Interests in WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC, (b) performance of its obligations under and in connection with the Note Documents, (c) issuing, selling and redeeming its Equity Interests, (d) paying Taxes in the ordinary course of business, (e) holding directors' and shareholders' meetings, preparing corporate and similar records and other activities (including the ability to incur fees, costs and expenses relating to such maintenance) required to maintain its corporate or other legal structure or to participate in tax, accounting or other administrative matters as a member of the consolidated group of the Issuer and its Subsidiaries, (f) preparing reports to, and preparing and making notices to and filings with, Governmental Authorities and to its holders of Equity Interests, (g) receiving, and holding proceeds of, Restricted Payments from its Subsidiaries and distributing the proceeds thereof to the extent not prohibited by <u>Sections 7.04</u> and <u>7.10</u>, (h) activities required by Governmental Requirements and (i) activities incidental to the business or activities described in each foregoing clauses of this <u>Article VIII</u>. The Issuer shall at all times pledge all of the Equity Interests of WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC (and shall, if such Equity Interests are certificated deliver to the Collateral Agent original stock certificates evidencing the Equity Interests of WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC, together with appropriate undated stock powers for each certificate duly executed in blank by the Issuer).

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**ARTICLE IX** 

**EVENTS OF DEFAULT; REMEDIES** 

**Section 9.01.** Events of Default. In case of the happening of any of the following events ("**Events of Default**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Note Parties shall fail to pay any principal of (or associated make-whole or premium on) any Note when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof, by acceleration or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Note Parties shall fail to pay any interest on any Note or any fee or any other amount (other than an amount referred to in <u>Section 9.01(a)</u>) payable under any Note Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any representation or warranty made or deemed made by or on behalf of the Note Parties or any Restricted Subsidiary in or in connection with any Note Document or any amendment or modification of any Note Document or waiver under such Note Document, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with any Note Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made (or if already qualified by materiality or Material Adverse Effect, incorrect in any respect when made or deemed made);

(d)(i) the Note Parties or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in <u>Sections 6.01(k)</u>, <u>6.01(o)</u>, <u>6.01(u)</u>, <u>6.02</u>, <u>6.03</u> (solely in respect of the Issuer), <u>6.13</u>, <u>6.16</u>, <u>6.19</u>, or <u>Article VII</u> or (ii) the Issuer shall fail to observe or perform any covenant, condition or agreement contained in <u>Article VIII-A</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Note Parties or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement (i) contained in <u>Section 6.11</u>, and such failure shall continue unremedied for a period of twenty-five (25) days or (ii) otherwise contained in this Agreement (other than those specified in <u>Sections 9.01(a)</u>, <u>9.01(b)</u>, <u>9.01(d)</u>, or <u>9.01(e)(i)</u>) or in any other Note Document to which it is a party, and such failure shall continue unremedied for a period of thirty (30) days, in each case after the earlier to occur (i) notice thereof from the Agent to the Issuer (which notice will be given at the request of any Holder) or (ii) a Responsible Officer of the Issuer or such Restricted Subsidiary otherwise becoming aware of such default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Note Parties or any Restricted Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Debt, when and as the same shall become due and payable and such failure continues beyond any applicable grace period set forth in such Material Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any event or condition occurs (including the termination of any Swap Agreement prior to its scheduled maturity as a result of an "Event of Default" or "Termination Event" (as such terms are defined in the relevant Swap Agreement)) that results in any Material Debt becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or

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both) the holder or holders of any Material Debt or any trustee or agent on its or their behalf to cause any Material Debt to become due (other than by a regularly scheduled required prepayment), or to require the Redemption thereof or any offer to Redeem to be made in respect thereof, prior to its scheduled maturity or require the Note Parties or any Restricted Subsidiary to make an offer in respect thereof (other than any event requiring prepayment pursuant to customary asset sale or change of control provisions);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Note Parties or any Restricted Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Note Parties or any Restricted Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Note Party or any Restricted Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in <u>Section 9.01(h)</u>, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for a Note Party or any Restricted Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the foregoing;

(j)(i) one (1) or more judgments or settlements (or order by a Governmental Authority) for the payment of money (as reduced by (x) insurance proceeds covering such settlements, judgments or orders which are received or as to which the relevant insurance carriers have been notified of, and have not disputed coverage and (y) the amount by which such liability is cash collateralized and bonded) in an aggregate amount in excess of $2,000,000 shall be rendered against any Note Party, any Restricted Subsidiary or any combination thereof, and (A) there shall be a period of thirty (30) consecutive days during which the execution of such judgment or order is not subject to an effective stay of enforcement, or (B) action is legally taken by a judgment creditor or judgment creditors or the applicable Governmental Authority to attach or levy upon any assets of a Note Party or any of its Restricted Subsidiaries to enforce any such judgment or order, or (ii) one (1) or more non-monetary judgments or orders shall be rendered against any Note Party or Restricted Subsidiary which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, and there shall be a period of thirty (30) consecutive days during which such judgment is not subject to an effective stay of enforcement, by reason of a pending appeal or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Note Documents after delivery thereof shall for any reason, except to the extent permitted by the terms thereof, cease to be in full force and effect and valid, binding and enforceable in accordance with their terms against the Issuer or a Guarantor party thereto or shall be repudiated by any of them, or cease to create a valid and perfected first priority Lien in favor of the Collateral Agent on any material portion of the Collateral purported to be covered thereby, except to the extent permitted by the terms of this Agreement, or the Note Parties or any Restricted Subsidiary or any of their Affiliates shall so state or assert in writing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) a Change in Control shall occur and the Issuer fails to pay the Redemption Payment when due or otherwise consummate a redemption of the Notes as required by <u>Section 2.09(h)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) an ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in liability of the Note Parties and their Restricted Subsidiaries in an aggregate amount exceeding $2,000,000 that is not covered by independent third party insurance provided by insurers of the highest claims paying rating or financial strength as to which the insurer does not dispute coverage and is not subject to an insolvency proceeding;

then, and in every such event (other than an event with respect to a Note Party or its Subsidiaries described in <u>paragraph (h)</u> or <u>(i)</u> above), and at any time thereafter during the continuance of such event, the Agent shall, at the direction of the Requisite Holders, by notice to the Issuer, take either or both of the following actions, at the same or different times: (i) terminate the Commitments and thereupon the Commitments shall terminate immediately and (ii) declare the Notes then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), whereupon the principal of the Notes so declared to be due and payable, together with accrued interest thereon, any unpaid accrued fees, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, and all other liabilities of the Issuer or any other Note Party accrued hereunder and under any other Note Document, shall become due and payable immediately, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Issuer and the other Note Parties, anything contained herein or in any other Note Document to the contrary notwithstanding; and in any event with respect to any Note Party or its Subsidiaries described in <u>paragraph (h)</u> or <u>(i)</u> above, the Commitments shall automatically terminate and the principal of the Notes then outstanding, together with accrued interest thereon, any unpaid accrued fees, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, and all other liabilities of the Issuer or any other Note Party accrued hereunder and under any other Note Document, shall automatically become due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Issuer and the other Note Parties, anything contained herein or in any other Note Document to the contrary notwithstanding. In the case of the occurrence of an Event of Default, the Agents and the Holders will have all other rights and remedies available at law and equity. All proceeds realized from the liquidation or other disposition of Collateral or otherwise received after maturity of the Notes, whether by acceleration or otherwise, shall be applied in the order provided in <u>Section 2.11(f)</u>.

**Section 9.02.** Treatment of Make-Whole Amount and Prepayment Fee. Without limiting the terms of the last paragraph of <u>Section 9.01</u>, it is understood and agreed that (a) if the Notes are accelerated or otherwise become due, in each case, in respect of any Event of Default (including, but not limited to, upon the occurrence of a bankruptcy or insolvency related event (including acceleration of claims by operation of law)) or (b) upon the occurrence of the Board of Directors (or similar Governing Body or any committee thereof) of any Note Party or of any Person having Control of the Issuer adopting any resolution or otherwise authorizing any action to approve any bankruptcy or insolvency related event (each of the foregoing in <u>clauses (a)</u> and <u>(b)</u> and as contemplated by the penultimate paragraph of this paragraph, a "**Specified Event**"), the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, that would have applied if, at the time the Notes are accelerated or otherwise become due, the Issuer had prepaid, repaid, Redeemed, refinanced, substituted or replaced all of the Notes as contemplated in <u>Section 2.08</u> and <u>2.11(g)</u> will also be automatically and immediately due and payable without further action or notice and the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or shall constitute part of the Obligations, in view of the impracticability and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of the Holders' damages as a result thereof. Any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee payable hereunder shall be presumed to be the liquidated damages (and not, for avoidance of doubt,

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unmatured interest or a penalty) sustained by the Holders as the result of such Specified Event and the Issuer and the other Note Parties agree that the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) and Prepayment Fee, as applicable, are reasonable under the circumstances currently existing. In the event that the Obligations are reinstated in connection with or following any Specified Event, it is understood and agreed that the Obligations shall include any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, payable in accordance with this <u>Section 9.02</u>. The Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, shall also be payable in the event the Obligations (and/or this Agreement) are satisfied or released by foreclosure (whether by power of judicial proceeding), deed in lieu of foreclosure or by any other similar means.

THE ISSUER AND EACH OTHER NOTE PARTY EXPRESSLY WAIVES (TO THE FULLEST EXTENT IT MAY LAWFULLY DO SO) THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW THAT PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING MAKE-WHOLE AMOUNT (<u>PLUS</u> ANY PREMIUM PAYABLE IN CONNECTION THEREWITH) OR PREPAYMENT FEE IN CONNECTION WITH ANY SUCH SPECIFIED EVENT.

The Issuer and each other Note Party expressly agrees (to the fullest extent that it may lawfully do so) that: (i) the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) and Prepayment Fee, as applicable, are reasonable and are the product of an arm's length transaction between sophisticated business people, ably represented by counsel; (ii) the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or shall be payable notwithstanding the then prevailing market rates at the time payment is made; (iii) there has been a course of conduct between the Holders and the Issuer and the other Note Parties giving specific consideration in this transaction for such agreement to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable; and (iv) the Issuer and each other Note Party shall each be estopped hereafter from claiming differently than as agreed to in this paragraph.

The Issuer and each other Note Party expressly acknowledges that its agreement to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, to the Holders as herein described is a material inducement to the Holders to provide the Commitments and purchase the Notes.

**Section 9.03.** Application of Funds. All proceeds realized from the liquidation or other disposition of Collateral or otherwise received after maturity of the Notes, whether by acceleration or otherwise, shall be applied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to each of the Agent and the Collateral Agent in their capacities as such and Agent-related Indemnitee (including any costs and expenses related to foreclosure or realization upon, or protecting, Collateral);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section 11.03</u> under the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or other amount due and payable pursuant to <u>Section 2.11(g)</u> or <u>Section 9.02</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or other amount due and payable pursuant to <u>Section 2.11(g)</u> or <u>Section 9.02</u> resulting from the payment of principal under <u>clause fifth</u> below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>fifth</u>, pro rata to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Note Parties at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>sixth</u>, pro rata to any other Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Note Parties or as otherwise required by any Governmental Requirement.

**Section 9.04.** <u>Credit Bidding</u>. In addition to any other rights and remedies granted to the Agents and the Holders in the Note Documents, the Collateral Agent (acting at the direction of the Requisite Holders) on behalf of the Holders may exercise all rights and remedies of a secured party under the UCC or any other applicable law. Without limiting the generality of the foregoing, the Collateral Agent (acting at the direction of the Requisite Holders), without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Note Party or any other Person (all and each of which demands, defenses, advertisements and notices are hereby waived by each of the Note Parties on behalf of itself and its Subsidiaries), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, or consent to the use by any Note Party of any cash collateral arising in respect of the Collateral on such terms as the Collateral Agent deems reasonable, and/or may forthwith sell, lease, assign give an option or options to purchase or otherwise dispose of and deliver, or acquire by credit bid on behalf of the Holders, the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales (including, without limitation, any sale conducted under the provisions of the Code, including under Sections 363, 1123 or 1129 of the Code, or any similar laws in any other jurisdictions to which a Note Party is subject), at any exchange, broker's board or office of the Collateral Agent or any Holder or elsewhere, upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery, all without assumption of any credit risk. In connection with any such credit bid and purchase, the Obligations owed to the Holders shall be entitled to be, and shall be, credit bid by the Collateral Agent at the direction of the Requisite Holders on a ratable basis (with Obligations with respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that shall vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) for the asset or assets so purchased (or for the equity interests or debt instruments of the acquisition vehicle or vehicles that are issued in connection with such purchase). In connection with any such bid (i) the Collateral Agent shall be authorized to form one or more acquisition vehicles and to assign any successful credit bid to such acquisition vehicle or vehicles, (ii) each of the Holders' ratable interests in the Obligations which were credit bid shall be deemed without any further action under this Agreement to be assigned to such vehicle or vehicles for the purpose of closing such sale, (iii) the Collateral Agent shall be authorized to adopt documents providing for the governance of the acquisition vehicle or vehicles (<u>provided</u> that any actions by the Collateral Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or equity interests thereof, shall be governed, directly or indirectly, by, and the governing documents shall provide for, control by the vote of the Requisite Holders or their permitted assignees under the terms of the Note Documents or the governing documents of the applicable acquisition vehicle or vehicles, as the case may be, irrespective of the termination of the Note Documents and without giving effect to the limitations on the actions by the Requisite Holders

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contained <u>Section 11.06</u>), (iv) the Collateral Agent on behalf of such acquisition vehicle or vehicles shall be authorized to issue to each of the Holders, ratably on account of the relevant Obligations which were credit bid, interests, whether as equity, partnership, limited partnership interests or membership interests, in any such acquisition vehicle and/or debt instruments issued by such acquisition vehicle, all without the need for any Holder or acquisition vehicle to take any further action, and (v) to the extent that Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any reason (as a result of another bid being higher or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of Obligations credit bid by the acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Holders pro rata with their original interest in such Obligations and the equity interests and/or debt instruments issued by any acquisition vehicle on account of such Obligations shall automatically be cancelled, without the need for any Holder or any acquisition vehicle to take any further action. Notwithstanding that the ratable portion of the Obligations of each Holder are deemed assigned to the acquisition vehicle or vehicles as set forth in <u>clause (ii)</u> above, each Holder shall execute such documents and provide such information regarding the Holder (and/or any designee of the Holder which will receive interests in or debt instruments issued by such acquisition vehicle) as the Collateral Agent acting at the direction of the Requisite Holders, may reasonably request in connection with the formation of any acquisition vehicle, the formulation or submission of any credit bid or the consummation of the transactions contemplated by such credit bid. The Collateral Agent or any Holder shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in any Note Party, which right or equity is hereby waived and released by each of the Note Parties on behalf of itself and its Subsidiaries. Each of the Note Parties further agrees on behalf of itself and its Subsidiaries, at the Collateral Agent's request, to assemble the Collateral and make it available to the Collateral Agent at places which the Collateral Agent shall reasonably select, whether at the premises of the Issuer, another Note Party or elsewhere. The Collateral Agent shall apply the net proceeds of any action taken by it pursuant to this <u>Section 9.04</u>, after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any other way relating to the Collateral or the rights of the Agents and the Holders hereunder, including reasonable attorneys' fees and disbursements, to the payment in whole or in part of the obligations of the Note Parties under the Note Documents, in such order as the Collateral Agent may elect, and only after such application and after the payment by the Collateral Agent of any other amount required by any provision of law, including Section 9-615(a)(3) of the UCC, need the Collateral Agent account for the surplus, if any, to any Note Party. To the extent permitted by applicable law, each of the Note Parties on behalf of itself and its Subsidiaries waives all claims, damages and demands it may acquire against the Agents or any Holder arising out of the exercise by them of any rights hereunder. If any notice of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least ten (10) days before such sale or other disposition. Notwithstanding anything provided in this <u>Section 9.04</u>, the Collateral Agent may delegate any or all of its rights to credit bid under this Section, this Agreement and the other Note Documents to EIG or the Requisite Holders or their designee, who will act as "Agent" or "Collateral Agent" for purposes of this <u>Section 9.04</u>.

**ARTICLE X** 

**AGENTS** 

**Section 10.01.** <u>Appointment of Agents</u>. U.S. Bank Trust Company, National Association is hereby appointed Agent and Collateral Agent hereunder and under the other Note Documents and each Holder hereby authorizes U.S. Bank Trust Company, National Association, in such capacities, to act as its agent (including as collateral agent) in accordance with the terms hereof and the other Note Documents. Each Agent hereby agrees to act upon the express conditions contained herein and the other Note Documents, as applicable. The provisions of this <u>Article X</u> are solely for the benefit of the Agents

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and the Holders and no Note Party shall have any rights as a primary or third party beneficiary of any of the provisions thereof, except as expressly set forth herein. In performing its functions and duties hereunder, each Agent shall act solely as an agent of the Holders and does not assume and shall not be deemed to have assumed any obligation towards or relationship of agency or trust with or for any Note Party or any Affiliate thereof.

**Section 10.02.** Powers and Duties. Each Holder irrevocably authorizes each Agent to take such action on such Holder's behalf and to exercise such powers, rights and remedies and perform such duties hereunder and under the other Note Documents as are specifically delegated or granted to each Agent by the terms hereof and thereof, together with such actions, powers, rights and remedies as are reasonably incidental thereto. Each Agent shall have only those duties and responsibilities that are expressly specified herein and the other Note Documents. Without limiting the generality of the foregoing, each Agent shall not have or be deemed to have, by reason hereof or any of the other Note Documents, a fiduciary relationship in respect of any Holder, any Note Party or any other Person, whether before or after the occurrence of any Default or Event of Default; and nothing herein or any of the other Note Documents, expressed or implied, is intended to or shall be so construed as to impose upon either Agent any obligations in respect hereof or any of the other Note Documents except as expressly set forth herein or therein. The use of the term "agent" herein and in the other Note Documents with reference to any Agent is not intended to connote any fiduciary or the other implied (or express) obligations arising under agency doctrine of any applicable law; rather, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. Neither Agent is, and shall not be deemed to be, acting hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

**Section 10.03.** General Immunity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Responsibility for Certain Matters</u>. Neither Agent shall be responsible for the execution, effectiveness, genuineness, validity, enforceability, collectability or sufficiency hereof or any other Note Document or for any representations, warranties, recitals or statements made herein or therein or made in any written or oral statements or in any financial or other statements, instruments, reports or certificates or any other documents furnished or made by either Agent or by or on behalf of any Note Party to an Agent or any Holder in connection with the Note Documents and the transactions contemplated hereby and thereby or for the financial condition or business affairs of any Note Party or any other Person liable for the payment of any Obligations, nor shall either Agent be required to ascertain or inquire as to the performance or observance of any of the terms, conditions, provisions, covenants or agreements contained in any of the Note Documents or as to the use of the proceeds of the Notes or as to the existence or possible existence of any Event of Default or Default or to make any disclosures with respect to the foregoing. Neither Agent shall be responsible for the satisfaction of any condition set forth in <u>Article III</u> or elsewhere in any Note Document, other than to confirm receipt of items expressly required to be delivered to such Agent. Neither Agent will be required to take any action that is contrary to applicable law or any provision of this Agreement or any Note Document or that may expose it to personal liability for which it is not indemnified. Anything contained herein to the contrary notwithstanding, neither Agent shall have any liability arising from confirmations of the amount of outstanding Notes or the component amounts thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exculpatory Provisions</u>. Subject to the remainder of this <u>clause (b)</u> hereof further limiting the liability of the Agents, neither Agent nor any of their officers, partners, directors, employees or agents shall be liable for any action taken or omitted by an Agent under or in connection with any of the Note Documents, except to the extent caused by such Agent's gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final, nonappealable order. Each Agent shall be

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entitled to refrain from any act or the taking of any action (including the failure to take an action) in connection herewith or any of the other Note Documents or from the exercise of any power, discretion or authority vested in it hereunder or thereunder, except powers and authority expressly contemplated hereby or thereby, unless and until such Agent shall have received written instructions in respect thereof from Requisite Holders (or such other Holders as may be required to give such instructions under <u>Section 11.06</u>) or in accordance with the applicable Note Document, and, upon receipt of such instructions from Requisite Holders (or such other Holders, as the case may be), or in accordance with the other applicable Note Document, as the case may be, such Agent shall act or (where so instructed) refrain from acting, or to exercise or refrain from exercising such power, discretion or authority, in accordance with such instructions. The permissive rights of each Agent hereunder and under the other Note Documents shall not be construed as duties. Without prejudice to the generality of the foregoing, (i) each Agent shall be entitled to rely, and shall be fully protected in relying and free from liability in relying, upon any communication, instrument, document, judgment, order or decree believed by it to be genuine and correct and to have been signed or sent by the proper Person or Persons, and shall be entitled to rely and shall be protected and free from liability in relying on opinions, advice and judgments of attorneys (who may be attorneys for the Note Parties), accountants, experts and other professional advisors selected by it; (ii) no Holder shall have any right of action whatsoever against an Agent as a result of such Agent acting or (where so instructed) refraining from acting hereunder or any of the other Note Documents in accordance with the instructions of Requisite Holders (or such other Holders as may be required to give such instructions under <u>Section 11.06</u>) or in accordance with the applicable Note Document; and (iii) neither Agent shall be liable for any action taken, or errors in judgment made, in good faith by it or any of its officers, employees or agents, unless such Agent shall have been grossly negligent in ascertaining the pertinent facts. Each Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Note Document unless such Agent shall first receive such advice or concurrence of the Requisite Holders or the Holders (as the case may be, as required by this Agreement), accompanied by, if requested, indemnity satisfactory to such Agent, and until such instructions and indemnity (if any) are received, each Agent shall have no duty to act, or refrain from acting, and shall have no liability to any Holder, any Note Party or any other Person for so doing. If an Agent so requests, it shall first be indemnified to its satisfaction by the Holders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. Each Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Note Document in accordance with a request or consent of the Requisite Holders and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Holders. No provision of this Agreement or any other Note Document or any agreement or instrument contemplated hereby or thereby, the Transactions contemplated hereby or thereby shall require an Agent to: (i) expend or risk its own funds or provide indemnities in the performance of any of its duties hereunder or the exercise of any of its rights or power or (ii) otherwise incur any financial liability in the performance of its duties or the exercise of any of its rights or powers. Neither Agent shall be responsible for (i) perfecting, maintaining, monitoring, preserving or protecting the security interest or Lien granted under this Agreement, any other Note Document or any agreement or instrument contemplated hereby or thereby, (ii) the filing, re-filing, recording, re-recording or continuing of any document, financing statement, continuation statement, amendment, mortgage, assignment, notice, instrument of further assurance or other instrument in any public office at any time or times, or (iii) providing, maintaining, monitoring or preserving insurance on or the payment of Taxes with respect to any of the Collateral. The actions described in <u>clauses (i)</u> through <u>(iii)</u> of the immediately preceding sentence shall be the responsibility of the Holders and the Note Parties. Neither Agent shall be required to qualify in any jurisdiction in which it is not presently qualified to perform its obligations as an Agent. Each Agent has accepted and is bound by the Note Documents executed by such Agent as of the date of this Agreement and, as directed in writing by the Requisite Holders, each Agent shall execute additional Note Documents delivered to it after the date of this Agreement; <u>provided</u>, <u>however</u>, that such additional Note Documents do not adversely affect the rights, privileges, benefits, immunities and indemnities of the Agents, in

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which case, the Agents may, but shall not be obligated to, enter into such Note Documents. Neither Agent will otherwise be bound by, or be held obligated by, the provisions of any loan agreement, indenture or other agreement governing the Obligations (other than this Agreement and the other Note Documents to which such Agent is a party). No written direction given to an Agent by the Requisite Holders or any Note Party that in the sole judgment of such Agent imposes, purports to impose or might reasonably be expected to impose upon such Agent any obligation or liability not set forth in or arising under this Agreement and the other Note Documents will be binding upon an Agent unless such Agent elects, at its sole option, to accept such direction. Neither Agent shall be responsible or liable for any failure or delay in the performance of its obligations under this Agreement or the other Note Documents arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of God; earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics; riots; business interruptions; loss or malfunctions of utilities, computer (hardware or software) or communication services; accidents; labor disputes; acts of civil or military authority and governmental action. Beyond the exercise of reasonable care in the custody of the Collateral in the possession or control of the Collateral Agent or its bailee, the Collateral Agent will not have any duty as to any other Collateral or any income thereon or as to preservation of rights against prior parties or any other rights pertaining thereto. The Collateral Agent will be deemed to have exercised reasonable care in the custody of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which it accords its other corporate trust customers, and the Collateral Agent will not be liable or responsible for any loss or diminution in the value of any of the Collateral by reason of the act or omission of any carrier, forwarding agency or other agent or bailee selected by the Collateral Agent in good faith. Neither Agent shall be responsible for or have any duty to ascertain or inquire into (1) any statement, warranty or representation made in or in connection with this Agreement or any other Note Document, (2) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith or (3) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default or Event of Default. Neither Agent will be responsible for the existence, genuineness or value of any of the Collateral or for the validity, perfection, priority or enforceability of the Liens in any of the Collateral, whether impaired by operation of law or by reason of any action or omission to act on its part hereunder, for the validity or sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of the title of any grantor to the Collateral, for insuring the Collateral or for the payment of Taxes or Liens upon the Collateral or otherwise as to the maintenance of the Collateral. Each Agent hereby disclaims any representation or warranty to the present and future holders of the Obligations concerning the perfection of the Liens granted hereunder or in the value of any of the Collateral. In the event that either Agent is required to acquire title to an asset for any reason, or take any managerial action of any kind in regard thereto, in order to carry out any obligation for the benefit of another, which in any Agent's sole discretion may cause such Agent to be considered an "owner or operator" under any Environmental Laws or otherwise cause such Agent to incur, or be exposed to, any Environmental Liability or any liability under any other Governmental Requirement, each Agent reserves the right, instead of taking such action, either to resign as an Agent or to arrange for the transfer of the title or control of the asset to a court appointed receiver. Neither Agent will be liable to any person for any Environmental Liability or any Environmental Claims or contribution actions under any Governmental Requirement by reason of such Agent's actions and conduct as authorized, empowered and directed hereunder or relating to any kind of discharge or Release or threatened discharge or Release of any Hazardous Materials into the environment at any property or facility that any Agent is required to acquire title to hereunder. Each Holder authorizes and directs each Agent to enter into this Agreement and the other Note Documents to which it is a party. Each Holder agrees that any action taken by an Agent or Requisite Holders in accordance with the terms of this Agreement or the other Note Documents and the exercise by an Agent or Requisite Holders of their respective powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Holders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice of Default</u>. Neither Agent shall be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to Events of Default in the payment of principal, interest and fees required to be paid to each Agent for the account of the Holders, unless each Agent shall have received written notice from a Holder or the Issuer in accordance with the notice requirements of <u>Section 11.01</u> herein referring to this Agreement, describing such Default or Event of Default and stating that such notice is a "notice of default." Agent will notify the Holders of its receipt of any such notice. Neither Agent shall have any liability for any interest rate published by any publication that is the source for determining the interest rates of the Notes, including but not limited to the SOFR Administrator's Website (or any successor source), or for any rates compiled by the CME Term SOFR Administrator or any successor thereto, or for any rates published on any of the foregoing cases for any delay, error or inaccuracy in the publication of any such rates, or for any subsequent correction or adjustment thereto.

**Section 10.04.** <u>Holders' Representations, Warranties and Acknowledgment.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Holder represents and warrants to each Agent that it has made its own independent investigation of the financial condition and affairs of each Note Party, without reliance upon either Agent or any other Holder and based on such documents and information as it has deemed appropriate, in connection with Note Purchases hereunder and that it has made and shall continue to make its own appraisal of the creditworthiness of each Note Party. Neither Agent shall have any duty or responsibility, either initially or on a continuing basis, to make any such investigation or any such appraisal on behalf of the Holders or to provide any Holder with any credit or other information with respect thereto, whether coming into its possession before the purchase of the Notes or at any time or times thereafter, and neither Agent shall have any responsibility with respect to the accuracy of or the completeness of any information provided to the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Holder, by delivering its signature page to this Agreement, an Assignment Agreement or a joinder agreement and funding its Note, shall be deemed to have acknowledged receipt of, and consented to and approved, each Note Document and each other document required to be approved by each Agent, Requisite Holders or Holders, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Holder hereby agrees that (i) if any Agent notifies such Holder that such Agent has determined in its sole discretion that any funds received by such Holder from such Agent or any of its Affiliates (whether as a payment, prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, a "**Payment**") were erroneously transmitted to such Holder (whether or not known to such Holder), and demands the return of such Payment (or a portion thereof), such Holder shall promptly, but in no event later than one Business Day thereafter, return to such Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, and (ii) to the extent permitted by applicable law, such Holder shall not assert, and hereby waives, as to such Agent, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by such Agent for the return of any Payments received, including without limitation any defense based on "discharge for value" or any similar doctrine. A notice of any Agent to any Holder under this <u>Section 10.04</u> shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Holder hereby further agrees that if it receives a Payment from an Agent or any of its Affiliates (i) that is in a different amount than, or on a different date from, that specified in a notice of payment sent by such Agent (or any of its Affiliates) with respect to such Payment (a "**Payment Notice**") or (ii) that was not preceded or accompanied by a Payment Notice, it shall be on notice, in each such case, that an error has been made with respect to such Payment, and to the extent permitted by applicable law, such Holder shall not assert any right or claim to the Payment, and hereby waives, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or

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counterclaim by such Agent for the return of any Payments received, including without limitation waiver of any defense based on "discharge for value" or any similar doctrine. Each Holder agrees that, in each such case, or if it otherwise becomes aware that a Payment (or portion thereof) may have been sent in error, such Holder shall promptly notify such Agent of such occurrence and, upon demand from such Agent, it shall promptly, but in no event later than three (3) Business Days thereafter, return to such Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Issuer and each other Note Party hereby agrees that (i) in the event an erroneous Payment (or portion thereof) are not recovered from any Holder that has received such Payment (or portion thereof) for any reason, the Agents shall be subrogated to all the rights of such Holder with respect to such amount and (ii) an erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Issuer or any other Note Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each party's obligations under this Section 10.04 shall survive the resignation or replacement of the Agents or any transfer of rights or obligations by, or the replacement of, a Holder, the termination of the Commitments or the repayment, satisfaction or discharge of all Obligations under any Note Document.

**Section 10.05.** <u>Successor Agents</u>. Subject to the appointment and acceptance of a successor Agent as provided in this <u>Section 10.05</u>, either Agent may resign at any time by giving thirty (30) days' prior written notice thereof to the Requisite Holders, and the Issuer. Any Agent may be removed as an Agent at the request of the Requisite Holders. Upon any such notice of resignation or removal, Requisite Holders shall have the right (with the consent of the Issuer (not to be unreasonably withheld, delayed or conditioned) unless an Event of Default shall have occurred and is continuing), to appoint a successor Agent; <u>provided</u> that such successor Agent shall be a nationally-recognized third party agent for similarly situated financings. If no successor shall have been so appointed by the Requisite Holders and shall have accepted such appointment within thirty (30) days after the retiring Agent gives notice of its resignation, then the retiring Agent's resignation shall nevertheless thereupon become effective and the Requisite Holders shall perform all of the duties of such Agent, as applicable, hereunder until such time, if any, as the Requisite Holders appoint a successor Agent as provided for above. In such case, the Requisite Holders shall appoint one Person to act as Agent for purposes of any communications with the Issuer, and until the Issuer shall have been notified in writing of such Person and such Person's notice address as provided for in <u>Section 11.01</u>, the Issuer shall be entitled to give and receive communications to/from the resigning Agent. Upon the acceptance of any appointment as Agent hereunder by a successor Agent and the payment of the outstanding fees and expenses of the resigning or removed Agent, at the Issuer's expense, that successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Agent and the retiring or removed Agent shall promptly (i) transfer to such successor Agent all sums and other items of Collateral held under the Collateral Documents, together with all records and other documents necessary or appropriate in connection with the performance of the duties of the successor Agent under the Note Documents, and (ii) execute and deliver to such successor Agent such amendments to financing statements, and take such other actions, as may be reasonably requested in connection with the assignment to such successor Agent of the security interests created under the Collateral Documents (the reasonable out-of-pocket expenses of which shall be borne by the Issuer), whereupon such retiring or removed Agent shall be discharged from its duties and obligations hereunder. After any retiring Agent's resignation or any Agent's removal hereunder as Agent or Collateral Agent, the provisions of this <u>Article X</u> and <u>Section 11.03</u> shall inure to its benefit as to any actions taken or omitted to be taken by it while it was an Agent hereunder. Any organization or other entity into which an Agent may be merged or converted or with which it may be consolidated, or any organization or other entity resulting from any merger, conversion or consolidation to which any Agent shall be a party, or any organization or other entity succeeding to all or substantially all of the corporate trust business of the Agents, shall be the successor to the Agents hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto.

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**Section 10.06.** <u>Delegation of Duties</u>. Each Agent may perform any and all of its duties and exercise its rights and powers under this Agreement or under any other Note Document by or through any one or more sub-agents appointed by such Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Affiliates. Neither Agent shall be responsible for the acts or omissions of its sub-agents so long as they are appointed with due care. The exculpatory, indemnification and other provisions of <u>Article X</u> and <u>Section 11.03</u> shall apply to any Affiliates of each Agent and shall apply to their respective activities in connection with the syndication of the Notes issued hereby. All of the rights, benefits and privileges (including the exculpatory and indemnification provisions) of <u>Article X</u> and <u>Section 11 .03</u> shall apply to any such sub-agent and to the Affiliates of any such sub-agent, and shall apply to their respective activities as sub-agent.

**Section 10.07.** <u>Collateral Documents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Agent under Collateral Documents</u>. Each Holder and other Indemnitee hereby further irrevocably authorizes the Collateral Agent, on behalf of and for the benefit of the Holders, to be the agent for and representative of Holders with respect to the Collateral Documents and to enter into such other agreements with respect to the Collateral (including intercreditor agreements) as it may deem necessary with the consent of the Requisite Holders. Subject to <u>Section 11.06</u>, the Collateral Agent may execute any documents or instruments necessary to (i) release any Lien encumbering any item of Collateral that is the subject of a sale or other disposition of assets permitted hereby and with respect to which release the Requisite Holders (or such other Holders as may be required to give such consent under <u>Section 11.06</u>) have consented or (ii) release any Guarantor from the Guarantee pursuant to the Guaranty Agreement with respect to which release the Requisite Holders (or such other Holders as may be required to give such consent under <u>Section 11.06</u>) have consented, in each case upon delivery by the Issuer to the Agent and Collateral Agent with a certificate of a Responsible Officer certifying that such release is authorized and permitted under by the Note Documents, and such other certifications or documents as the Agent or Collateral Agent (in each case, at the direction of the Requisite Holders) shall request. Whether or not expressly provided therein, the Agent and the Collateral Agent shall be entitled to all of the rights, privileges, immunities and indemnities provided in this Agreement in entering into and performing under the Collateral Documents and any other Note Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Right to Realize on Collateral and Enforce Guarantee</u>. Anything contained in any of the Note Documents to the contrary notwithstanding, the Issuer, the Agents and each Holder hereby agree that (i) no Holder shall have any right individually to realize upon any of the Collateral or to enforce any Guarantee or exercise any other remedy provided under the Note Documents (other than the right of set-off provided in <u>Section 11.04</u>), it being understood and agreed that all powers, rights and remedies hereunder may be exercised solely by the Collateral Agent (acting at the written direction of the Requisite Holders), on behalf of the Holders in accordance with the terms hereof and all powers, rights and remedies under this Agreement and the Collateral Documents may be exercised solely by the Collateral Agent (acting at the written direction of the Requisite Holders), and (ii) in the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale, the Collateral Agent or its nominee may be the purchaser of any or all of such Collateral at any such sale and the Collateral Agent, as agent for and representative of Holders (but not any Holder or Holders in its or their respective individual capacities unless the Requisite Holders shall otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the Obligations arising under the Note Documents as a credit on account of the purchase price for any collateral payable by the Collateral Agent at such sale.

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**Section 10.08.** <u>Posting of Approved Electronic Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Delivery of Communications</u>. Each Note Party hereby agrees, unless directed otherwise by an Agent or unless the electronic mail address referred to below has not been provided by an Agent to such Person, that it will provide to each Agent all information, documents and other materials that it is obligated to furnish to such Agent or to the Holders pursuant to the Note Documents, including all notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding any such communication that (i) is or relates to a Note Purchase Notice, (ii) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice of any Default or Event of Default under this Agreement or any other Note Document, or (iv) is required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement and/or any Note or other Note Purchase hereunder (all such non-excluded communications being referred to herein collectively as "**Communications**"), by transmitting the Communications in an electronic/soft medium that is properly identified in a format acceptable to the Issuer and each Agent to an electronic mail address as directed by each Agent. In addition, each Note Party agrees to continue to provide the Communications to each Agent or the Holders, as the case may be, in the manner specified in the Note Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Prejudice to Notice Rights</u>. Nothing herein shall prejudice the right of any Agent or any Holder to give any notice or other communication pursuant to any Note Document in any other manner specified in such Note Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>The Platform</u>. Each Note Party acknowledges that Agent will make available to Holders materials and/or information by posting such materials and/or information on IntraLinks/IntraAgency, Syndtrack or another similar electronic system (the "<u>Platform</u>"). THE PLATFORM IS PROVIDED "AS IS" AND "AS AVAILABLE." AGENT DOES NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE NOTE PARTIES' COMMUNICATIONS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIMS LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE NOTE PARTIES' COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. In no event shall Agent have any liability to the Note Parties, any Holder or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Note Parties' or the Agent's transmission of materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of Agent. In no event shall Agent have any liability for any damages arising from the use by others of any information or other materials obtained through the Platform.

**Section 10.09.** Proofs of Claim. The Holders and each Note Party hereby agree that after the occurrence of an Event of Default pursuant to <u>Section 9.01(h)</u> or <u>9.01(i)</u>, in case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Note Party, Agent (acting at the direction of Requisite Holders) (irrespective of whether the principal of any Note shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether Agent shall have made any demand on any Note Party) shall be entitled and empowered, by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Notes and any other Obligations that are owing and unpaid and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Holders, the Agents and other agents (including any claim for the reasonable compensation, expenses, disbursements and advances of the Holders, the Agents and other agents and their agents and counsel and all other amounts due Holders, the Agents and other agents hereunder) allowed in such judicial proceeding; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, interim trustee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to Agent and, in the event that Agent shall consent to the making of such payments directly to the Holders, to pay to Agent and Collateral Agent, as applicable, any amount due for the compensation, expenses, disbursements and advances of each Agent, Collateral Agent and their agents and counsel, and any other amounts due Agents and other agents hereunder. Nothing herein contained shall be deemed to authorize any Agent to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Holders or to authorize any Agent to vote in respect of the claim of any Holder in any such proceeding. Further, nothing contained in this <u>Section 10.09</u> shall affect or preclude the ability of any Holder to (i) file and prove such a claim in the event that an Agent has not acted within ten (10) days prior to any applicable bar date and (ii) require an amendment of the proof of claim to accurately reflect such Holder's outstanding Obligations.

**Section 10.10.** <u>Hedge Intercreditor Agreement</u>. Each Holder (and each Person that becomes a Holder hereunder pursuant to <u>Section 11 .07</u>) hereby authorizes the Agent to enter into, join or otherwise become party to the Hedge Intercreditor Agreement on behalf of such Holder, in each case, as needed to effectuate the transactions permitted by this Agreement and agrees that the Agent may take such actions on its behalf as is contemplated by the terms of Hedge Intercreditor Agreement. Without limiting the provisions of <u>Section 10.02, 11.02</u> and <u>11.03</u>, each Holder hereby consents to each of the Agent and any successor serving in such capacities and agrees not to assert any claim (including as a result of any conflict of interest) against the any Agent, or any such successor, arising from the role of any Agent or such successor under the Note Documents or any such intercreditor agreement so long as it is either acting in accordance with the terms of such documents and otherwise has not engaged in gross negligence or willful misconduct (as determined in a final and non-appealable judgment by a court of competent jurisdiction). In addition, the Agent and Collateral Agent, or any such successors, shall be authorized, with the consent of the Requisite Holders, to execute or to enter into amendments of, and amendments and restatements of, the Collateral Documents, the Hedge Intercreditor Agreement and any additional and replacement intercreditor agreements, as is contemplated by the terms of the Hedge Intercreditor Agreement.

**Section 10.11.** <u>Indemnification</u>. To the extent that the Agents are not promptly reimbursed and indemnified by any Note Party, and after the Agents have made demand on any Note Party for the same, the Holders will, within five (5) days of written demand by the Agents, reimburse the Agents for, and indemnify and hold harmless the Agents from and against, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including client charges and expenses of counsel or any other advisor to Agents), advances or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against the Agents in any way relating to or arising

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out of this Agreement or any of the other Note Documents or any action taken or omitted by the Agents under this Agreement or any of the other Note Documents, in proportion to each Holder's Pro Rata Share; provided, however, that no Holder shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses, advances or disbursements for which there has been a final non-appealable judicial determination that such liability resulted from such applicable Agent's gross negligence or willful misconduct. The obligations of the Holders under this Section 10.11 shall survive the Payment in Full of the Obligations, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

**ARTICLE XI** 

**MISCELLANEOUS** 

**Section 11.01.** <u>Notices</u>. Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given to a Note Party or the Agents, shall be sent to such Person's address as set forth on <u>Appendix B</u> or in the other relevant Note Document, and in the case of any Holder, the address as indicated on <u>Appendix B</u> or otherwise indicated to Agents in writing. Each notice hereunder shall be in writing and may be personally served, sent by telefacsimile, electronic transmission or United States certified or registered mail or courier service and shall be deemed to have been given when delivered and signed for against receipt thereof, or upon confirmed receipt of telefacsimile or electronic transmission (which confirmation shall be made by telephone call by the sender to the Agents; confirmation by electronic messaging shall not be deemed to be confirmation of receipt).

**Section 11.02.** <u>Expenses</u>. Each Note Party shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Agents, the Holders and their Affiliates (including, without limitation, the reasonable fees, charges and disbursements of (A) one primary firm of counsel to the Holders, (B) one primary firm of counsel to the Agent and Collateral Agent, (C) one local counsel and one regulatory counsel in each relevant jurisdiction, if any and (D) reasonable travel, photocopy, mailing, courier, telephone and other similar expenses, in connection with the issuance of the Notes provided for herein, the preparation, negotiation, execution, delivery and administration (both before and after the execution hereof and including advice of counsel to the Agents and the Holders as to the rights and duties of any Agent and the Holders with respect thereto) of this Agreement and the other Note Documents and any amendments, modifications or waivers of or consents related to the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all costs, expenses, Taxes, assessments and other charges incurred by the Agents or any Holder in connection with any filing, registration, recording or perfection of any security interest contemplated by this Agreement or any Collateral Document or any other document referred to therein and (iii) all out-of-pocket expenses incurred by the Agents or any Holder, including the fees, charges and disbursements of counsel and other experts, in connection with the enforcement or protection of its rights in connection with this Agreement or any other Note Document, including its rights under this <u>Section 11.02</u>, or in connection with the Notes issued hereunder, including, without limitation, all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Notes. All amounts due under this <u>Section 11.02</u> shall be paid within thirty (30) days of receipt by the Issuer of an invoice. The agreements in this Section 11.02 shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

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**Section 11.03.** <u>Indemnity; Limitation of Liability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to the payment of expenses pursuant to <u>Section 11.02</u>, whether or not any or all of the Transactions shall be consummated, each Note Party agrees to defend (subject to Indemnitees' selection of counsel), indemnify, pay and hold harmless, EIG, the Agents and each Holder, their Affiliates and its and their respective officers, members, shareholders, partners, directors, trustees, employees, advisors (including attorneys, accountants and experts), representatives and agents and each of their respective successors and assigns and each Person who controls any of the foregoing (each, an "**Indemnitee**"), from and against any and all Indemnified Liabilities, **IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY, OR SOLE NEGLIGENCE OF SUCH INDEMNITEE**; <u>provided</u> that, no Note Party shall have any obligation to an Indemnitee hereunder with respect to any Indemnified Liabilities if such Indemnified Liabilities arise from the gross negligence or willful misconduct of that Indemnitee as determined by a court of competent jurisdiction in a final, nonappealable order, <u>provided</u> that no Note Party shall indemnify any Holder or its related Indemnitee for claims solely among the Holders (or any combination thereof) to the extent not related to a breach of an obligation of a Note Party as determined by a court of competent jurisdiction by final and nonappealable judgement. To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in this <u>Section 11.03</u> may be unenforceable in whole or in part because they are violative of any law or public policy, the applicable Note Party shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them. The indemnities and waivers set forth in this <u>Section 11.03(a)</u> shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent. All amounts due under this <u>Section 11.03(a)</u> shall be paid within thirty (30) days of receipt by the Issuer of an invoice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the extent permitted by applicable law, no Note Party shall assert (and no Note Party shall permit is Affiliates to assert), and each Note Party hereby waives, releases and agrees not to sue upon any claim against EIG, the Agents and each Holder, their Affiliates and its and their respective officers, members, shareholders, partners, directors, trustees, employees, advisors (including attorneys, accountants and experts), representatives and agents and each of their respective successors and assigns and each Person who controls any of the foregoing (each such Person, a "**Holder-Related Party**") (and agrees to cause its Affiliates to do the same), on any theory of liability, for special, indirect, exemplary, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement, any Note Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the Transactions, any documentation related to any Note or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and each Note Party hereby waives, releases and agrees not to sue any Holder-Related Party upon any such claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor. The waivers set forth in this Section 11.03(b) shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the extent permissible under applicable law, none of the Agents, any Note Party or any Subsidiary shall have any liability for any special, indirect, exemplary, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement, any Note Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the Transactions, any documentation related to any Note or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, in respect of

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any such damages incurred or paid by an Indemnitee to a third party and for any out-of-pocket expenses in each case subject to the indemnification provisions of this <u>Section 11.03</u>; it being agreed that this sentence shall not limit the obligations of the Note Parties under <u>Section 11.03(a)</u>. The waivers set forth in this <u>Section 11.03(b)</u> shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Note Party hereby acknowledges and agrees that an Indemnitee may now or in the future have certain rights to indemnification provided by other sources ("**Other Sources**"). Each Note Party hereby agrees that (i) it is the indemnitor of first resort (i.e., its obligations to the Indemnitees are primary and any obligation of the Other Sources to provide indemnification for the same Indemnified Liabilities are secondary to any such obligation of the Note Party), (ii) that it shall be liable for the full amount of all Indemnified Liabilities, without regard to any rights the Indemnitees may have against the Other Sources, and (iii) it irrevocably waives, relinquishes and releases the Other Sources and the Indemnitees from any and all claims (A) against the Other Sources for contribution, indemnification, subrogation or any other recovery of any kind in respect thereof and (B) that an Indemnitee must seek expense advancement or reimbursement, or indemnification, from the Other Sources before the Note Party must perform its obligations hereunder. No advancement or payment by the Other Sources on behalf of an Indemnitee with respect to any claim for which such Indemnitee has sought indemnification from a Note Party shall affect the foregoing. The Other Sources shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery which the Indemnitee would have had against a Note Party if the Other Sources had not advanced or paid any amount to or on behalf of the Indemnitee.

**Section 11.04.** <u>Set Off</u>. In addition to any rights now or hereafter granted under applicable law or Governmental Requirement and not by way of limitation of any such rights, upon the occurrence and during the continuance of any Event of Default each Holder and its/their respective Affiliates is hereby authorized by each Note Party at any time or from time to time subject to the consent of Agent (such consent to be given or withheld at the written direction of the Requisite Holders), without notice to any Note Party or to any other Person (other than Agent), any such notice being hereby expressly waived, to set off and to appropriate and to apply any and all deposits (general or special, including Debt evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts (in whatever currency)) and any other Debt at any time held or owing by such Holder to or for the credit or the account of any Note Party (in whatever currency) against and on account of the obligations and liabilities of any Note Party to such Holder hereunder, and under the other Note Documents, including all claims of any nature or description arising out of or connected hereto or any other Note Document, irrespective of whether or not (a) such Holder shall have made any demand hereunder, (b) the principal of or the interest on the Notes or any other amounts due hereunder shall have become due and payable pursuant to <u>Article II</u> and although such obligations and liabilities, or any of them, may be contingent or unmatured, or (c) such obligation or liability is owed to a branch or office of such Holder different from the branch or office holding such deposit or obligation or such Debt.

**Section 11.05.** <u>[Reserved]</u>.

**Section 11.06.** <u>Amendments and Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Requisite Holders' Consent</u>. Subject to <u>Sections 11.06(b)</u> and <u>11.06(c)</u> , no amendment, modification, termination or waiver of any provision of the Note Documents, or consent to any departure by any Note Party therefrom, shall in any event be effective without the written concurrence of (i) in the case of this Agreement, the Issuer, the Agents and the Requisite Holders or (ii) in the case of any other Note Document (other than the Agent Fee Letter), the Note Parties party thereto and (A) Agents with the consent of the Requisite Holders or (B) the Requisite Holders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Affected Holders' Consent</u>. Without the written consent of each Holder that would be directly affected thereby, no amendment, modification, or consent shall be effective if the effect thereof would:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) reduce the principal of the Notes or waive or postpone scheduled final maturity of the Notes or waive, postpone or reduce any fixed and scheduled repayment of the Notes (it being understood that the waiver of (or amendment to the terms of) any mandatory prepayment of the Notes shall not constitute a postponement of any date scheduled for the payment of principal or interest);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject to <u>Section 2.15(b)</u>, (A) reduce the rate of interest on any Note of, or the amounts of fees payable to, such Holder, (B) extend the time for payment of any such interest or fees to such Holder or (C) waive any interest or fee payable hereunder to such Holder (<u>provided</u> that the application of the Default Rate pursuant to <u>Section 2.06(c)</u> may be reduced, extended or waived by the Requisite Holders);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) extend or increase the Commitment of such Holder (it being understood that a waiver of any condition precedent or of any Default or Event of Default, mandatory prepayment or mandatory reduction of the Commitments shall not constitute an extension or increase of any Commitment of any Holder);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) release all or substantially all the Guarantors from the Guarantee or release the Liens securing all or substantially all of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amend, modify, terminate or waive any provision of Sections <u>2.10</u>, <u>2.11(g)</u>, <u>2.12</u>, <u>Section 9.03</u> or this <u>Section 11.06(b)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) amend the definition of "Requisite Holders" or "Pro Rata Share".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Consents</u>. No amendment, modification, termination, or waiver of any provision of the Note Documents, or consent to any departure by any Note Party therefrom, shall materially and adversely amend, modify, terminate or waive any provision of <u>Article IX</u> as the same applies to any Agent or any Indemnitee Agent Party, or any other provision hereof as the same applies to the rights or obligations of any Agent, in each case without the consent of such Agent or such Indemnitee Agent Party. With limiting the foregoing, neither Agent shall be bound to follow or agree to any amendment or supplement to this Agreement that would increase or materially change or affect the duties, obligations or liabilities of such Agent (including without limitation the imposition or expansion of discretionary authority with respect to the benchmark), or reduce, eliminate, limit or otherwise change any right, privilege or protection of such Agent, or would otherwise change any right, privilege or protection of such Agent, or would otherwise materially and adversely affect such Agent, in each case in its reasonable judgment, without such party's express written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Execution of Amendments, etc</u>. Agent and Collateral Agent, if applicable, shall at the direction of the applicable Holders, execute amendments, modifications, waivers or consents on behalf of such Holders. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on any Note Party shall entitle any Note Party to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent effected in accordance with this <u>Section 11.06(d)</u> shall be binding upon

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each Holder at the time outstanding, each future Holder and, if signed by a Note Party, on such Note Party. Agent will deliver executed or true and correct copies of each amendment, modification, waiver, or consent effected pursuant to this <u>Section 11.06</u> to each Holder promptly following the date on which it is executed and delivered, or receives the consent or approval of the requisite percentage of Holders applicable thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Note Parties and Affiliates</u>. No Note Party will, and the Issuer will not permit any of its Subsidiaries, any of the Note Parties or any of their respective Affiliates, to, directly or indirectly, offer to purchase, prepay, Redeem or otherwise acquire any outstanding Notes, except as otherwise expressly permitted under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Amendment Consideration</u>. None of Issuer or any of its Affiliates or any other party to any Note Documents, directly or indirectly, will pay or cause to be paid any consent fees, or grant any security as an inducement for, any proposed amendment or waiver of any of the provisions of this Agreement or any of the other Note Documents unless each Holder of the Notes (irrespective of the kind and amount of Notes then owned by it) shall be informed thereof by Issuer and, if such Holder is entitled to the benefit of any such provision proposed to be amended or waived, shall be afforded the opportunity of considering the same, shall be supplied by Issuer and any other party hereto with sufficient information to enable it to make an informed decision with respect thereto and, to the extent such amendment or waiver is consented to by such Holder, shall be paid such remuneration and granted such security on the same terms. For the avoidance of doubt, nothing in this <u>Section 11.06(f)</u> is intended to restrict or limit the amendment requirements otherwise set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Consent in Contemplation of Transfer</u>. Any consent given pursuant to this <u>Section 11.06</u> or any other Note Document by a Holder that has transferred or has agreed to transfer its Note to any Person in connection with, or in anticipation of, such other Person acquiring, making a tender offer for or merging with the Issuer, any Note Party and/or any of their Affiliates, shall be void and of no force or effect except solely as to such Holder, and any amendments, modifications or terminations effected or waivers or consents granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other Holders that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such Holder.

**Section 11.07.** <u>Successors and Assigns; Assignments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns</u>. This Agreement shall be binding upon the parties hereto and their respective successors and assigns and shall inure to the benefit of the parties hereto and the successors and assigns of Holders. No Note Party's rights or obligations hereunder nor any interest therein may be assigned or delegated by any such Person without the prior written consent of all Holders (and any attempted assignment or transfer by any such Person without such consent shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly contemplated hereby, Affiliates of each of Agent and Holders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignments</u>. Subject to compliance with applicable securities laws, if any, any Holder may at any time sell, assign or otherwise transfer to one or more Eligible Assignees any Notes and all or any portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitments and the Notes held by it).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mechanics</u>. The assigning Holder and the assignee thereof shall execute and deliver to Agent an Assignment Agreement, a processing and recordation fee of $3,500 (other than in the case of an assignment from a Holder to its Affiliate or a Related Fund), all "know your customer" and anti-money laundering rules and regulations, including the USA PATRIOT Act, documents as reasonably requested by the Agent, together with such forms, certificates or other evidence, if any, with respect to United States federal Tax withholding matters as the assignee under such Assignment Agreement may be required to deliver to Agent and Issuer pursuant to <u>Section 2.14(e)</u> and <u>2.14(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notice of Assignment</u>. Upon its receipt and acceptance of a duly executed and completed Assignment Agreement, the processing and recordation fee of $3,500 (which, for the avoidance of doubt, is not required in the case of an assignment from a Holder to its Affiliate or to a Related Fund), any "know your customer" documents reasonably requested by the Agent, and any other forms, certificates or other evidence required by this Agreement in connection therewith, Agent shall record the information contained in such Assignment Agreement in the Register, shall give prompt notice thereof to the Issuer and shall maintain a copy of such Assignment Agreement. The Agent is not, and shall not be deemed to be, acting hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Representations and Warranties of Assignee</u>. Each Holder upon executing and delivering an Assignment Agreement, represents and warrants as of the applicable Effective Date (as defined in the applicable Assignment Agreement) that (i) it has experience and expertise in the making of or investing in notes; and (ii) it will make or invest in, as the case may be, its Notes for its own account in the ordinary course of its business and without a view to distribution of such Notes within the meaning of the Securities Act or the Exchange Act or other applicable securities laws (it being understood that, subject to the provisions of this <u>Section 11.07(e)</u>, the disposition of Notes or any interests therein shall at all times remain within its exclusive control). In addition, each Holder becoming party hereto after the Closing Date, upon executing and delivering an Assignment Agreement, shall be deemed to have made the representations and warranties contained in <u>Article V</u> as of the applicable Effective Date (as defined in the applicable Assignment Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Effect of Assignment</u>. Subject to the terms and conditions of this <u>Section 11.07(f)</u>, as of the "Effective Date" specified in the applicable Assignment Agreement and recordation in the Register: (i) the assignee thereunder shall have the rights and obligations of a "Holder" hereunder to the extent such rights and obligations hereunder have been assigned to it pursuant to such Assignment Agreement and shall thereafter be a party hereto and a "Holder" for all purposes hereof; (ii) the assigning Holder thereunder shall, to the extent that rights and obligations hereunder have been assigned thereby pursuant to such Assignment Agreement, relinquish its rights (other than any rights which survive the termination hereof under <u>Section 11.08</u>) and be released from its obligations hereunder (and, in the case of an Assignment Agreement covering all or the remaining portion of an assigning Holder's rights and obligations hereunder, such Holder shall cease to be a party hereto; <u>provided</u> that such assigning Holder shall continue to be entitled to the benefit of all indemnities and expense reimbursement rights hereunder as specified herein with respect to matters arising prior to such assignment); and (iii) if any such assignment occurs after the issuance of any Note hereunder, the assigning Holder shall, upon the effectiveness of such assignment or as promptly thereafter as practicable, surrender its applicable Note to the Issuer for cancellation, and thereupon the Issuer shall issue and deliver a new Note, if so requested by the assignee and/or assigning Holder, to such assignee and/or to such assigning Holder, with appropriate insertions, to reflect the outstanding principal balance under the Notes of the assignee and/or the assigning Holder. Notes shall not be transferred in denominations of less than $100,000 (unless transferred by any Holder to an Affiliate and/or a Related Fund of such Holder), <u>provided</u>, that if necessary to enable the registration of transfer by a Holder of its entire holding of Notes, a Note may be in a denomination of less than $100,000; <u>provided further</u>, that transfers by a Holder, its Affiliates and its Related Funds shall be aggregated for purposes of determining whether or not such $100,000 threshold has been reached.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Participations</u>. Subject to compliance with applicable securities laws, if any, each Holder shall have the right at any time to sell one or more participations to any Person (other than a natural Person, any Note Party or any of their respective Affiliates) (each, a "**Participant**") in all or any part of such Holder's rights and/or obligations under this Agreement (including all or a portion of its Notes or any other Obligation); <u>provided</u> that (i) such Holder's obligations under this Agreement shall remain unchanged, (ii) such Holder shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Issuer, Agents, and the Holders shall continue to deal solely and directly with such Holder in connection with such Holder's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Holder sells such a participation shall provide that such Holder shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u> that such agreement or instrument may provide that such Holder will not, without the consent of the Participant, agree to any amendment, modification or waiver described in <u>Section 11.06(b)</u> that affects such Participant. The Issuer agrees that each Participant shall be entitled to the benefits of <u>Sections 2.13</u> and <u>2.14</u> (subject to the requirements and limitations therein, including the requirements and limitations under <u>Section 2.14(e)</u> and <u>Section 2.14(f)</u>) (it being understood that the documentation required under <u>Section 2.14(e)</u> and <u>Section 2.14(f)</u> shall be delivered by the Participant to the applicable Holder) to the same extent as if it were a Holder and had acquired its interest by assignment pursuant to <u>paragraph (c)</u> of this <u>Section 11.07</u>; <u>provided</u> that such Participant shall not be entitled to receive any greater payment under <u>Section 2.11(h)</u> than the applicable Holder would have been entitled to receive with respect to the participation sold to such Participant, unless such greater payment results from a change in a Governmental Requirement that occurs after the Participant acquired the applicable participation, or is made with the Issuer's prior written consent. To the extent permitted by law, each Participant shall be entitled to the benefits of <u>Section 11.04</u> as though it were a Holder; <u>provided</u> that such Participant agrees to be subject to <u>Section 2.14</u> as though it were a Holder. Each Holder that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Issuer, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Notes or other Obligations under the Note Documents (the "**Participant Register**"); <u>provided</u> that no Holder shall have any obligation to disclose all or a portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Note Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Treasury Regulation Section 5f.103-1(c), proposed Treasury Regulation Section 1.163-5 or any applicable temporary, final or other successor regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Holder shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register, and the Agent shall be entitled to treat the Holder, and not any Participant, as the Holder all purposes hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Independence of Covenants</u>. All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

**Section 11.08.** <u>Survival of Representations, Warranties and Agreements</u>. All representations, warranties and agreements made herein shall survive the execution and delivery hereof and the making of any Note Purchase. Notwithstanding anything herein or implied by law to the contrary, the agreements of each Note Party set forth in <u>Sections 2.14</u>, <u>11.02</u>, <u>11.03</u> and <u>11.04</u> and the agreements of Holders set forth in <u>Sections 2.12</u>, <u>2.14</u>, <u>10.11</u> and <u>11.03(b)</u> shall survive the payment of the Notes, the termination hereof and the resignation or removal of any Agent.

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**Section 11.09.** No Waiver; Remedies Cumulative. No failure or delay on the part of any Agent or any Holder in the exercise of any power, right or privilege (including with respect to any financial covenant calculation or evaluation of the calculation or components thereof) hereunder or under any other Note Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein (including with respect to any future covenant calculation or evaluation of the calculation or components thereof), nor shall any single or partial exercise of any such power, right or privilege preclude further or future exercise thereof or of any other power, right or privilege. The rights, powers and remedies given to Agents and each Holder hereby are cumulative and shall be in addition to and independent of all rights, powers and remedies existing by virtue of any statute or rule of law or in any of the other Note Documents. Any forbearance or failure to exercise, and any delay in exercising, any right or privilege, power or remedy hereunder (including with respect to any financial covenant calculation or evaluation of the calculation or components thereof) shall not impair any such right or privilege, power or remedy or be construed to be a waiver thereof, nor shall it preclude other, further or future exercise of any such right or privilege, power or remedy.

**Section 11.10.** <u>Marshalling; Payments Set Aside</u>. Neither Agent nor any Holder shall be under any obligation to marshal any assets in favor of any Note Party or any other Person or against or in payment of any or all of the Obligations. To the extent that any Note Party makes a payment or payments to any Agent or the Holders (or to any Agent, on behalf of the Holders), or any Agent or the Holders enforce any security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, any other state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred.

**Section 11.11.** <u>Severability</u>. In case any provision in or obligation hereunder or any Note or other Note Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

**Section 11.12.** <u>Obligations Several; Independent Nature of Holders' Rights</u>. The obligations of the Holders hereunder are several and no Holder shall be responsible for the obligations or Commitment of any other Holder hereunder. Nothing contained herein or in any other Note Document, and no action taken by the Holders pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Holder shall be a separate and independent debt, and each Holder shall be entitled to protect and enforce its rights arising out hereof and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose.

**Section 11.13.** Tax Treatment. The Issuer, the Agent and each Holder intend that the Notes shall be treated as indebtedness for Tax purposes and agree to report the Notes as indebtedness on all Tax returns.

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**Section 11.14.** <u>Headings</u>. Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.

**Section 11.15.** <u>APPLICABLE LAW</u>. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

**Section 11.16.** <u>CONSENT TO JURISDICTION</u>. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY HERETO ARISING OUT OF OR RELATING HERETO OR ANY OTHER NOTE DOCUMENT, OR ANY OF THE OBLIGATIONS, SHALL BE BROUGHT IN STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY HERETO, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (A) ACCEPTS GENERALLY AND UNCONDITIONALLY THE JURISDICTION AND VENUE OF SUCH COURTS; (B) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE NOTE PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH <u>SECTION 11.01</u> IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE NOTE PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (D) AGREES THAT AGENTS AND THE HOLDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY NOTE PARTY IN THE COURTS OF ANY OTHER JURISDICTION.

**Section 11.17.** <u>WAIVER OF JURY TRIAL</u>. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER NOTE DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT OR THE HOLDER/ISSUER RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS <u>SECTION 11.17</u> AND EXECUTED BY EACH OF THE PARTIES HERETO THAT IS PARTY TO SUCH JUDICIAL PROCEEDING), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER NOTE DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE NOTES PURCHASED HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

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**Section 11.18.** <u>Confidentiality</u>. If the Issuer reasonably believes that any information being furnished by it or any other Note Party to Agent or a Holder ("**Recipient**") relating to it or its business is confidential, the Issuer may so indicate by notice in writing to the Recipient, identifying such information with specificity (such identified information, the "**Confidential Information**"), in which event the Recipient will use reasonable efforts to maintain the confidentiality thereof; <u>provided</u>, <u>however</u>, that a Recipient may disclose such information (a) to its Affiliates, partners, prospective partners, members and prospective members and its and their respective directors, managers, officers, employees, attorneys, accountants, advisors, auditors, consultants, agents or representatives with a need to know such Confidential Information (collectively "**Permitted Recipients**"); (b) to any potential assignee, participant, pledgee or transferee of any of its rights or obligations hereunder (including without limitation, in connection with a sale or participation of any or all of the Notes) or any of their related parties, agents and advisors (<u>provided</u> that such potential assignee, participant or transferee agree to be bound by provisions that are substantially similar to the restrictions set forth in this <u>Section 11.18</u>); (c) if such information (i) becomes publicly available other than as a result of a breach of this <u>Section 11.18</u>, (ii) becomes available to a Recipient or any of its Permitted Recipients on a non- confidential basis from a source other than the Note Parties or (iii) is independently developed by the Recipient or any of its Permitted Recipients without the use of or reliance on such information; (d) to enable it to enforce or otherwise exercise any of its rights and remedies under any Note Document; or (e) as consented to in writing by the Issuer. Notwithstanding anything to the contrary set forth in this <u>Section 11.18</u> or otherwise, nothing herein shall prevent a Recipient or its Permitted Recipients from complying with any legal requirements (including, without limitation, pursuant to any rule, regulation, stock exchange requirement, self-regulatory body, supervisory authority, other applicable judicial or governmental order, legal process, fiduciary or similar duties or otherwise) to disclose any Confidential Information. In addition, the Recipient and its Permitted Recipients may disclose Confidential Information if so requested by a governmental, self-regulatory or supervisory authority or examiner (including the National Association of Insurance Commissioners). Each Note Party hereby acknowledges and agrees that, subject to the restrictions on disclosure of Confidential Information as provided in this <u>Section 11.18</u>, the Recipient and their respective Affiliates are in the business of making investments in and otherwise engaging in businesses which may or may not be in competition with the Note Parties or otherwise related to their and their Affiliates' respective business and that nothing herein shall, or shall be construed to, limit the Holders' or their Affiliates' ability to make such investments or engage in such businesses. Notwithstanding any other provision of this <u>Section 11.18</u>, the parties (and each employee, representative, or other agent of the parties) may disclose to any and all Persons, without limitation of any kind, the Tax treatment and any facts that may be relevant to the Tax structure of the transactions contemplated by this Agreement and the other Note Documents; <u>provided</u>, <u>however</u>, that no party (and no employee, representative, or other agent thereof) shall disclose any other information that is not relevant to an understanding of the Tax treatment and Tax structure of the transaction (including the identity of any party and any information that could lead another to determine the identity of any party), or any other information to the extent that such disclosure could reasonably result in a violation of any applicable securities law. Issuer understands and acknowledges that in the regular course of a Holder's business, such Holder may invest in companies that have issued securities that are publicly traded (each, a "**Public Company**") . Accordingly, Issuer covenants and agrees that before providing material non-public information about a Public Company ("**Public Company Information**"), Issuer will provide prior written notice to the applicable compliance personnel indicated in <u>Schedule 11.18</u>. Issuer shall not disclose Public Company Information to such Holder without written authorization from such compliance personnel. Any Holder and Holder-Related Party may disclose the existence of this Agreement, the Transactions and the form of the financing, and place customary advertisements in financial and other news sources or on a home page or similar place and circulate similar promotional materials, in each case, after the effectiveness of this Agreement, including in the form of a "tombstone", which may include the size of the deal, the form of the financing, the Issuer's name, logo and a link to the Issuer's or an Affiliate's website.

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**Section 11.19.** <u>Usury Savings Clause</u>. Notwithstanding any other provision herein, the aggregate interest rate charged or agreed to be paid with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest under applicable law shall not exceed the Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence) under this Agreement at any time exceeds the Highest Lawful Rate, the outstanding amount of the Notes purchased hereunder shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect. In addition, if when the Notes purchased hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is less than the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by law, the Issuer shall pay to Agent an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding the foregoing, it is the intention of Holders and the Issuer to conform strictly to any applicable usury laws. Accordingly, if any Holder contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Holder's option be applied to the outstanding amount of the Notes purchased hereunder or be refunded to the Issuer. In determining whether the interest contracted for, charged, or received by Agent or a Holder exceeds the Highest Lawful Rate, such Person may, to the extent permitted by applicable law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest, throughout the contemplated term of the Obligations hereunder.

**Section 11.20.** <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.

**Section 11.21.** <u>USA PATRIOT Act</u>. Each Holder and each Agent (for itself and not on behalf of any Holder) hereby notifies each Note Party that pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record information that identifies such Note Party, which information includes the name and address of such Note Party and other information that will allow such Holder or such Agent, as applicable, to identify such Note Party in accordance with the USA PATRIOT Act.

**Section 11.22.** <u>Disclosure</u>. Each Note Party and each Holder hereby acknowledge and agree that the Agents and/or their Affiliates and their respective Related Funds from time to time may hold investments in, and make loans to, or have other relationships with any of the Note Parties and their respective Affiliates, including the ownership, purchase and sale of Equity Interests in any Note Party and their respective Affiliates and each Holder hereby expressly consents to such relationships.

**Section 11.23.** <u>Appointment for Perfection</u>. Each Holder hereby appoints each other Holder as its agent for the purpose of perfecting Liens, for the benefit of the Agents and the Holders, in assets which, in accordance with Article 9 of the UCC or any other applicable law can be perfected only by possession. Should any Holder obtain possession of any such Collateral, such Holder shall notify the Collateral Agent thereof, and, promptly upon Collateral Agent's request therefor shall deliver such Collateral to Collateral Agent or otherwise deal with such Collateral in accordance with Collateral Agent's instructions.

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**Section 11.24.** <u>Advertising and Publicity</u>. No Note Party shall issue or disseminate to the public (by advertisement, including without limitation any "tombstone" advertisement, press release or otherwise), submit for publication or otherwise cause or seek to publish any information describing the credit or other financial accommodations made available by Holders pursuant to this Agreement and the other Note Documents without the prior written consent of the Requisite Holders. Nothing in the foregoing shall be construed to prohibit any Note Party from making any submission or filing which it is required to make by applicable Governmental Requirement (including securities laws, rules and regulations), stock exchange rules or pursuant to judicial process; <u>provided</u>, that, (a) such filing or submission shall contain only such information as is necessary to comply with such applicable Governmental Requirement, rule or judicial process and (b) unless specifically prohibited by applicable law, rule or court order, the Issuer shall promptly notify Agent of the requirement to make such submission or filing and provide Agent with a copy thereof.

**Section 11.25.** <u>Acknowledgments and Admissions</u>. The Issuer hereby acknowledges and admits that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it has been advised by counsel in the negotiation, execution and delivery of the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has made an independent decision to enter into this Agreement and the other Note Documents to which it is a party, without reliance on any representation, warranty, covenant or undertaking by any Agent or any Holder, whether written, oral or implicit, other than as expressly set out in this Agreement or in another Note Document delivered on or after the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there are no representations, warranties, covenants, undertakings or agreements by the Agents or any Holder as to the Note Documents except as expressly set out in this Agreement and the other Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) none of the Agents or any Holder has any fiduciary obligation toward it with respect to any Note Document or the Transactions contemplated thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) no partnership or joint venture exists with respect to the Note Documents between any Note Party, on the one hand, and the Agents or any Holder, on the other;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Agents are not any Note Party's agent except as otherwise provided herein in <u>Section 2.06</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither Simpson Thacher & Bartlett LLP nor Shipman & Goodwin LLP is counsel for any Note Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) should an Event of Default or Default occur or exist, each Holder will determine in its discretion and for its own reasons what remedies and actions it will or will not direct the Agents to exercise or take at that time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) without limiting any of the foregoing, no Note Party is relying upon any representation or covenant by the Agents or any Holder, or any representative thereof, and no such representation or covenant has been made, that any of the Agents or any Holder will, at the time of an Event of Default or Default, or at any other time, waive, negotiate, discuss, or take or refrain from taking any action permitted under the Note Documents with respect to any such Event of Default or Default or any other provision of the Note Documents;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Agents and the Holders have all relied upon the truthfulness of the acknowledgments in this <u>Section 11.25</u> in deciding to execute and deliver this Agreement and to become obligated hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) each Note Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the fair meaning thereof.

**Section 11.26.** <u>Third Party Beneficiaries</u>. There are no third party beneficiaries to this Agreement other than Participants to the extent set forth in <u>Section 11.07(g)</u>, the Secured Hedge Providers and, to the extent set forth herein, the Indemnitees.

**Section 11.27.** <u>Entire Agreement</u>. This Agreement, and the other Note Documents represent the final agreement among the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements among the parties.

**Section 11.28.** <u>Transferability of Securities; Restrictive Legend</u>. Each note, certificate or other instrument evidencing the Notes issued by Issuer shall be stamped or otherwise imprinted with a legend in substantially the following forms:

"THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION."

Notwithstanding the foregoing, the restrictive legend set forth above shall not be required after the date on which the securities evidenced by such note, certificate or other instrument bearing such restrictive legend no longer constitute "restricted securities" (as defined in Rule 144 promulgated under the Securities Act), and upon the request of the Holder of such Notes, Issuer, without expense to such Holder, shall issue a new note, certificate or other instrument as applicable not bearing the restrictive legend otherwise required to be borne thereby. Agent shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on assignment imposed under this Agreement or under applicable law with respect to any assignment of any interest in any Note and Agent shall have no duty or responsibility to determine whether and when the restricted legend may be removed from the Notes.

**Section 11.29.** <u>Replacement of Notes</u>. Upon receipt by Issuer of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note, and (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (<u>provided</u> that if the Holder of such Note is, or is a nominee for, another Holder with a minimum net worth of at least $5,000,000, such Person's own unsecured agreement of indemnity shall be deemed to be satisfactory), or (b) in the case of mutilation, upon surrender and cancellation thereof, Issuer at its own expense shall execute and deliver, in lieu thereof, a new Note of the same series, dated and, in the case of a Note, bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

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**Section 11.30.** <u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>. Notwithstanding anything to the contrary in any Note Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Note Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder that may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Note Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

**Section 11.31.** Hedge Intercreditor Agreement. Notwithstanding anything herein to the contrary, the lien and security interest granted to the Collateral Agent, for the benefit of the Secured Parties, pursuant to this Agreement and the exercise of any right or remedy by the Collateral Agent and the other Secured Parties hereunder are subject to the provisions of the Hedge Intercreditor Agreement, as applicable. In the event of any conflict between the provisions of the Hedge Intercreditor Agreement and this Agreement, other than with respect to the Agent's or the Collateral Agent's own rights, privileges and immunities, the provisions of the Hedge Intercreditor Agreement shall control.

*[Signature Pages Follow.]* 

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**<u>Exhibit B</u>** 

[Attached.]

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**APPENDIX A** 

**COMMITMENTS** 

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| | |
|:---|:---|
| **Holder** | **Commitment** |
|  Pacific Indemnity Company | $43500000 |
|  EIG River Energy Partners, L.P. | $30000000 |
|  EIG Upstream Partners, L.P. | $30000000 |
|  Cardinal Energy LP | $20000000 |
|  EIG Sunsuper II Blocker, LLC | $20000000 |
|  EIG Bandelier Partners, L.P. | $7500000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** | $**151000000** |

---

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**<u>Exhibit C</u>** 

[Attached.]

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**WhiteHawk Income Corporation** 

**Schedule 7.04** 

**Permitted Restricted Payments** 

---

| | | | |
|:---|:---|:---|:---|
|  **Permitted Restricted Payments** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *(to be paid in the ordinary course and consistent with prior practice)* |  |  |  |
|  |  |  | Current Shares |
|  **Common Equity Dividend** | Common Unit Dividend |  | Outstanding<sup>(1)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Payable on or before April 15, 2025* | *(per month)* | |  |
|  | $0.156250 |  | 4680791 |
|  |  |  | Current Shares |
|  **Series B Preferred Equity Dividend** | Preferred Unit Dividend |  | Outstanding<sup>(1)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Payable on or before April 15, 2025* | *(per month)* | |  |
|  | $8.333333 |  | 14229 |
|  **Sponsor Incentive Fee** |  |  | April 15, 2025<sup>(2)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Payable on or before April 15, 2025* |  |  | $121388 |
|  **Monthly AUM Fee** |  |  | March 31, 2025<sup>(3)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Payable on or before March 31, 2025* |  |  | $320680 |

---

(1) Additional equity closings scheduled for 3/31/2025 and 4/10/25

(2) Sponsor incentive payable on Common & Series B Distributions

(3) Calculated in accordance with the PPM based on assets under management averaged from the first and last day of
the calendar month

## Exhibit 4.4

**Exhibit 4.4** 

***Execution Version***

**SECOND AMENDMENT TO NOTE PURCHASE AGREEMENT** 

This SECOND AMENDMENT TO NOTE PURCHASE AGREEMENT (this "<u>Second</u> <u>Amendment</u>") dated as of June 23, 2025, is among WhiteHawk Income Corporation, a Delaware corporation (the "<u>Issuer</u>"), U.S. Bank Trust Company, National Association, as agent (in such capacity, together with its successors and permitted assigns in such capacity, "<u>Agent</u>") and collateral agent for the Holders and the Secured Hedge Providers (in such capacity, together with its successors and permitted assigns in such capacity, the "<u>Collateral Agent</u>" and together with the Agent, the "<u>Agents</u>"), the Holders party hereto and Second Amendment Incremental Note Holders party hereto.

**RECITALS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Issuer, the Agent, the Collateral Agent, the Holders and the other parties party thereto are parties to that certain Note Purchase Agreement, dated as of September 17, 2024 (as amended by that certain First Amendment to Note Purchase Agreement, dated as of March 31, 2025, and as further amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the "<u>Existing Note Purchase Agreement</u>" and as amended by this Second Amendment, the "<u>Note</u> <u>Purchase Agreement</u>"), pursuant to which the Holders purchased Notes from the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Issuer and EIG are parties to that certain Commitment Letter, dated as of May 8, 2025 (the "<u>Commitment Letter</u>"), pursuant to which investment funds, accounts or entities advised, sub-advised, managed or affiliated with EIG and/or one of its controlled affiliates committed to purchase the Second Amendment Incremental Notes on the terms and conditions set forth therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1. <u>Defined Terms</u>. Each capitalized term which is defined in the Note Purchase Agreement, but which is not defined in this Second Amendment, shall have the meaning ascribed such term in the Note Purchase Agreement. Unless otherwise indicated, all section references in this Second Amendment refer to sections of the Note Purchase Agreement.

Section 2. <u>Amendments</u><u> </u><u>to</u><u> </u><u>Existing</u><u> </u><u>Note</u><u> </u><u>Purchase</u><u> </u><u>Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Effective as of the Second Amendment Effective Date (as defined below), the Existing Note Purchase Agreement is hereby amended to (i) delete the stricken text (indicated textually in the same manner as the following example: **stricken text)** and (ii) add the double-underlined text (indicated textually in the same manner as the following example: **<u>double-underlined text</u>**), in each case, as set forth in the pages of the Note Purchase Agreement attached as <u>Exhibit A</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Effective as of the Second Amendment Effective Date (as defined below), Appendix A to the Existing Note Purchase Agreement is hereby amended and restated as set forth on <u>Exhibit B</u> attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Effective as of the Second Amendment Effective Date (as defined below), Schedule 7.04 to the Existing Note Purchase Agreement is hereby amended and restated as set forth on <u>Exhibit C</u> attached hereto.

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Section 3. <u>Conditions Precedent</u>. This Second Amendment shall be deemed effective on the date (such date, the "<u>Second</u><u> </u><u>Amendment</u><u> </u><u>Effective</u><u> </u><u>Date</u>") when each of the following conditions is satisfied (or waived in accordance with <u>Section</u> <u>11.06</u> of the Note Purchase Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The Agents (or their counsel) shall have received (for prompt delivery to each of the Holders) from the Issuer and each other Holder a counterpart of this Second Amendment and each other Note Document required to be executed on the Second Amendment Effective Date signed on behalf of such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The Agents and the Second Amendment Incremental Note Holders shall have received executed copies of the favorable written opinion of Weil Gotshal & Manges LLP, counsel for the Issuer and the Note Parties, dated the Second Amendment Effective Date, and in form and substance reasonably satisfactory to the Agents and the Second Amendment Incremental Note Holders. The Issuer and Note Parties hereby instruct such counsel to deliver such legal opinion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 The Second Amendment Incremental Note Holders shall have received (i) sufficient copies of each Organizational Document of the Issuer, and of each other Note Party, certified as of a recent date by the appropriate Governmental Authority, for each Holder, each dated the Second Amendment Effective Date or a recent date prior thereto; (ii) signature and incumbency certificates of the officers of the Issuer and of each other Note Party executing the Note Documents; (iii) resolutions of the Board of Directors, the manager(s) or member(s) or similar Governing Body of the Issuer and of each other Note Party approving and authorizing the execution, delivery and performance of this Second Amendment, the other Note Documents to which it is a party, certified as of the Second Amendment Effective Date by a Responsible Officer as being in full force and effect without modification or amendment; and (iv) a good standing certificate for the Issuer and each other Note Party from the applicable Governmental Authority in such Person's jurisdiction of incorporation, organization or formation and in each jurisdiction in which such Person is qualified as a foreign corporation or other entity to do business, each dated a recent date prior to the Second Amendment Effective Date; *provided* that in lieu of the documents contemplated by the preceding clauses (i) and (ii), a Responsible Officer for the relevant Note Party may certify that there have been no changes to such documents since the First Amendment Effective Date to the extent delivered on the First Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 The date of purchase of the Second Amendment Incremental Notes and the Second Amendment Pre-Fund Date shall, in each case, be a Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 The Second Amendment Incremental Note Holders shall have received a reserve report prepared internally by the Issuer, dated as of January 1, 2025, evaluating the proved oil and gas reserves comprising the Acquired PHX Assets acquired pursuant to the Specified PHX Merger Agreement as of the Second Amendment Effective Date (the "<u>Second Amendment Reserve Report</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 The Agent and Second Amendment Incremental Note Holders shall have received, at least three (3) Business Days prior to the Second Amendment Effective Date, (a) all documentation and other information required by regulatory authorities with respect to the Note Parties under applicable "know your customer" and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act and (b) if the Issuer qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to the Issuer, in each case, that has been reasonably requested by any Second Amendment Incremental Note Holders in writing at least ten (10) Business Days in advance of the Second Amendment Effective Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 In order to create in favor of the Collateral Agent, for the benefit of the Holders a valid, perfected first priority security interest in all personal property Collateral of the Note Parties, the Agents shall have received (a) evidence reasonably satisfactory to the Agents and the Second Amendment Incremental Note Holders of the compliance by each Note Party with its respective obligations under the Collateral Documents to which it is party (including its obligation to deliver UCC financing statements, originals of securities, instruments and chattel paper), (b) the results of a recent search, by a Person satisfactory to the Second Amendment Incremental Note Holders, of all effective UCC financing statements made with respect to any personal or mixed property of the Issuer and each Note Party in the applicable jurisdictions, together with copies of all such filings disclosed by such search that will not be terminated on the Second Amendment Effective Date and (c) UCC termination statements for filing in all applicable jurisdictions as may be necessary to terminate any effective UCC financing statements disclosed in such search that do not constitute Liens permitted under <u>Section</u> <u>7.03</u> of the Note Purchase Agreement or Excepted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 All fees and expenses required to be paid pursuant to (a) that certain Fee Letter dated as of May 8, 2025 between the Issuer and EIG, (b) that certain Agent Fee Letter and (c) <u>Section</u> <u>11.02</u> of the Note Purchase Agreement and invoiced at least three (3) Business Days before the Second Amendment Effective Date (or such shorter period as may be agreed by the Issuer) shall have been paid in full in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 On the Second Amendment Effective Date after giving effect to the transactions contemplated herein, the Specified Agreement Representations (as defined in the Commitment Letter) are true and correct to the extent required by the Certain Funds Provision (as defined in the Commitment Letter), and the Specified Representations (as defined in the Commitment Letter) are true and correct in all material respects (except in the case of any Specified Representation which expressly relates to a given date or period, which Specified Representation is true and correct in all material respects as of the respective date or for the respective period, as the case may be); <u>provided</u>, that to the extent that any Specified Representation is qualified by or subject to a "material adverse effect", "material adverse change" or similar term or qualification, the same is true and correct in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 Since the date of the Specified PHX Merger Agreement, there shall not have been any Effect (as defined in the Specified PHX Merger Agreement) that has had or would reasonably be expected to have a Company Material Adverse Effect (as defined in the Specified PHX Merger Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 The Issuer shall have received prior to or on the Second Amendment Effective Date substantially concurrently with the purchase of Second Amendment Incremental Notes on the Second Amendment Effective Date, a cash contribution to the common equity of the Issuer in an aggregate amount of $104,000,000 pursuant to the Equity Commitment Letter (as defined in the Specified PHX Merger Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 The Refinancing (as defined in the Commitment Letter) shall have been consummated substantially concurrently with the issuance of the Second Amendment Incremental Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 On the Second Amendment Effective Date, the Second Amendment Incremental Note Holders shall have received a Solvency Certificate from a Financial Officer substantially in the form of <u>Exhibit E</u> of the Note Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 The Agent and the Second Amendment Incremental Note Holders shall have received a certificate from a Financial Officer of the Issuer dated as of the Second Amendment Effective Date certifying (i) that attached thereto is a true and correct fully-executed copy of the Specified PHX Merger Agreement (including all amendments, exhibits and schedules thereto) and the assignments (including exhibits and schedules thereto) effecting the Specified PHX Merger and other material side letters or other material agreements relating to the Specified PHX Merger and (ii) the Specified PHX Merger has been consummated in accordance with its terms, but without giving effect to any amendment, waiver or consent, or failure to exercise a termination right thereunder, by the Issuer and/or any affiliate thereof that is materially adverse to the interests of the Second Amendment Incremental Note Holders in their capacity as such without their consent, substantially concurrently with the purchase of the Second Amendment Incremental Notes under this Second Amendment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16 Agent shall have received a fully-executed Note Purchase Notice at least three (3) Business Days prior to the Second Amendment Effective Date (or such earlier date as the Second Amendment Incremental Note Holders may agree in their sole discretion (by notice to the Agent)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17 Agent shall have received at least one (1) Business Day prior to the Second Amendment Effective Date a "flow of funds" signed by a Responsible Officer of the Issuer, in form and substance reasonably satisfactory to the Second Amendment Incremental Note Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18 The Second Amendment Incremental Note Holders shall have received evidence satisfactory to them in their reasonable discretion that all insurance required to be maintained pursuant to Section 6.06 of the Note Purchase Agreement is in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19 The Issuer shall have delivered to the Agents and the Second Amendment Incremental Note Holders a certificate of a Financial Officer of the Issuer certifying as to matters set forth in <u>Sections 3.10</u>, <u>3.11</u>, <u>3.11</u>, and <u>3.13</u>.

The Agent (at the direction of the Second Amendment Incremental Note Holders and the Requisite Holders) shall notify the Issuer and the Second Amendment Incremental Note Holders of the Second Amendment Effective Date, and such notice shall be conclusive and binding.

For purposes of determining compliance with the conditions specified in this <u>Section</u> <u>3</u>, each Holder and Second Amendment Incremental Note Holder that has signed this Second Amendment shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to such Holder, unless the Agent shall have received written notice from such Holder prior to the Second Amendment Effective Date specifying its objection thereto.

Section 4. <u>Post-Closing Covenant</u>. Within sixty (60) days of the Second Amendment Effective Date (or such later date with the consent of the Requisite Holders in their sole discretion), the Agents and the Holders shall have received (a) a Mortgage (or amendments to existing Mortgages) encumbering each Mortgaged Property in favor of the Collateral Agent, duly executed and acknowledged by each Note Party that is the owner of or holder of any interest in such Mortgaged Property, and otherwise in form for recording in the recording office of each applicable jurisdiction where each such Mortgaged Property is situated and that will, when properly recorded (or when the applicable financing statements related thereto are properly filed or such other actions needed to perfect are taken) created a valid, perfected first priority security interest (after giving effect to Excepted Liens identified in clauses (a) through (d), (f) and (i) of the definition thereof, but subject to the provisos at the end of such definition) on at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the Second Amendment Reserve Report, (b) customary legal opinions of local counsel for the relevant Note Parties in the jurisdiction where such property is located and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) title information (including usual and customary title opinions, title reports and landman certificates in the Issuer's possession or generated by the Issuer for the Agents and Requisite Holders) setting forth the status of title to at least 90% of PV-10 of the Oil and Gas Properties in the latest Reserve Report and the Second Amendment Reserve Report, on a consolidated basis, consistent with usual and customary standards for the geographic regions in which such Oil and Gas Properties are located.

Section 5. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Confirmation</u>. The provisions of the Existing Note Purchase Agreement, as amended by this Second Amendment, shall remain in full force and effect following the Second Amendment Effective Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Ratification</u><u> </u><u>and</u><u> </u><u>Affirmation;</u> <u>Representations and Warranties</u>. The Issuer hereby (a) acknowledges the terms of this Second Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Note Document to which it is a party and agrees that each Note Document to which it is a party remains in full force and effect as expressly amended hereby; (c) agrees that from and after the Second Amendment Effective Date each reference to the Note Purchase Agreement (including in the other Note Documents) shall be deemed to be a reference to the Existing Note Purchase Agreement, as amended by this Second Amendment; and (d) represents and warrants to the Holders and the Agents that as of the date hereof after giving effect to this Second Amendment: (i) all of the representations and warranties contained in each Note Document to which it is a party are true and correct in all material respects with the same effect as though such representations and warranties had been made on the Second Amendment Effective Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates) and (ii) no Default or Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>No</u><u> </u><u>Novation</u>. This Second Amendment does not extinguish the obligations for the payment of money outstanding under the Existing Note Purchase Agreement or discharge or release the obligations or the liens or priority of any mortgage, pledge, security agreement or any other security therefor. Nothing herein contained shall be construed as a substitution or novation of the obligations outstanding under the Existing Note Purchase Agreement or instruments securing the same, which shall remain in full force and effect, except as modified hereby or by instruments executed concurrently herewith. Nothing expressed or implied in this Second Amendment shall be construed as a release or other discharge of the Note Parties from any of their obligations or liabilities under the Note Purchase Agreement or any of the other Note Documents. The Issuer hereby confirms and agrees that each Note Document to which it or its predecessor in interest is a party or to which it is a successor by operation of law is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that on and after the Second Amendment Effective Date, all references in any such Note Document to "the Note Purchase Agreement", "thereto", "thereof", "thereunder" or words of like import referring to the Note Purchase Agreement shall mean the Note Purchase Agreement as amended by this Second Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Counterparts</u>. This Second Amendment may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Second Amendment by signing any such counterpart. Delivery of an executed counterpart of this Second Amendment by fax or other electronic transmission (e.g., .pdf) shall be effective as delivery of a manually executed counterpart of this Second Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Integration</u>. This Second Amendment, the Note Purchase Agreement and the other Note Documents represent the final agreement between the parties with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Issuer, the Grantors, the Guarantors, either Agent nor any Holder relative to the subject matter hereof not expressly set forth or referred to herein or in the other Note Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>GOVERNING LAW</u>. THIS SECOND AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Payment of Expenses</u>. <u>Section</u> <u>11.02</u> of the Note Purchase Agreement is hereby incorporated by reference, *mutatis mutandis*.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Severability</u>. In case any provision in or obligation hereunder or other Note Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>Successors and Assigns</u>. <u>Section</u> <u>11.07(a)</u> of the Note Purchase Agreement is hereby incorporated by reference, *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <u>Note Document</u>. This Second Amendment is a "Note Document" as defined and described in the Note Purchase Agreement, and all of the terms and provisions of the Note Purchase Agreement relating to Note Documents shall apply hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <u>Direction</u><u> </u><u>to</u><u> </u><u>the</u><u> </u><u>Agents.</u> Pursuant to Sections 10.03 and 11.06 of the Existing Note Purchase Agreement, (a) the undersigned Holders, which constitute all Holders under the Existing Note Purchase Agreement, by their signatures hereto, and (b) each Second Amendment Incremental Note Holders, by their signatures hereto, hereby consent to this Second Amendment and authorize and direct the Agents to execute and deliver this Second Amendment and to perform their duties hereunder (this "<u>Direction</u>"). In entering into this Second Amendment, and in taking (or refraining from) any actions under or pursuant to this Amendment, the Agents shall be protected by and shall enjoy all of the rights, immunities, privileges, protections and indemnities granted to it under the Note Purchase Agreement. Each of the undersigned Holders and Second Amendment Incremental Note Holders hereby certify that (i) it has the full power and authority to provide this Direction, (ii) this Direction has been duly executed and delivered by such Holder or Second Amendment Incremental Note Holder, as applicable, and this Direction constitutes a legal, valid and binding obligation of such Holder or Second Amendment Incremental Note Holder, as applicable, enforceable against the undersigned in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability and (iii) the Agents shall be entitled to rely on this Direction. The Second Amendment Incremental Note Holders acknowledge and agree that they may (in their sole discretion) remit funds to the Agent on the Second Amendment Pre-Fund Date, which may be in advance of the Second Amendment Effective Date. The Agent agrees that it shall disburse any such funds received as specified in the "flow of funds" delivered pursuant to <u>Section</u> <u>3.17</u> above on the Second Amendment Effective Date.

***[Signature Pages Follow]***

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IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be duly executed effective as of the Second Amendment Effective Date.

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| | |
|:---|:---|
| **WHITEHAWK INCOME CORPORATION** | **WHITEHAWK INCOME CORPORATION** |
| By: | /s/ Jeffrey Slotterback |
| Name: | Jeffrey Slotterback |
| Title: | Chief Financial Officer and Secretary |

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[*Second Amendment Signature Page*]

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| | | |
|:---|:---|:---|
| **AGENT:** | **U.S. BANK TRUST COMPANY, NATIONAL** <br> **ASSOCIATION**, as Agent | **U.S. BANK TRUST COMPANY, NATIONAL** <br> **ASSOCIATION**, as Agent |
|  | By: | /s/ James A. Hanley |
|  | Name: James A. Hanley | Name: James A. Hanley |
|  | Title: Senior Vice President | Title: Senior Vice President |

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[*Second Amendment Signature Page*]

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| | | |
|:---|:---|:---|
| **COLLATERAL AGENT:** | **U.S. BANK TRUST COMPANY, NATIONAL** | **U.S. BANK TRUST COMPANY, NATIONAL** |
|  | **ASSOCIATION**, as Collateral Agent | **ASSOCIATION**, as Collateral Agent |
|  | By: | /s/ Laurel Casasanta |
|  | Name: Laurel Casasanta | Name: Laurel Casasanta |
|  | Title: Vice President | Title: Vice President |

---

[*Second Amendment Signature Page*]

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| | |
|:---|:---|
| **EIG CUMBERLAND PARTNERS, L.P.**, as a | **EIG CUMBERLAND PARTNERS, L.P.**, as a |
| Second Amendment Incremental Note Holder | Second Amendment Incremental Note Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Jean Powers |
| Name: Jean Powers | Name: Jean Powers |
| Title: Managing Director | Title: Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: Kamyar Daneshvar | Name: Kamyar Daneshvar |
| Title: Associate General Counsel | Title: Associate General Counsel |
| **ART ELECTRO, S.C.SP.**, as a Holder and a | **ART ELECTRO, S.C.SP.**, as a Holder and a |
| Second Amendment Incremental Note Holder | Second Amendment Incremental Note Holder |
| By: ART Electro GP S.à r.l., its general partner | By: ART Electro GP S.à r.l., its general partner |
| By: | /s/ Richard Long |
| Name: Richard Long | Name: Richard Long |
| Title: Manager | Title: Manager |
| By: | /s/ Jean-Yves Corneau |
| Name: Jean-Yves Corneau | Name: Jean-Yves Corneau |
| Title: Manager | Title: Manager |
| **EIG UPSTREAM PARTNERS, L.P.**, as a Holder | **EIG UPSTREAM PARTNERS, L.P.**, as a Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Jean Powers |
| Name: Jean Powers | Name: Jean Powers |
| Title: Managing Director | Title: Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: Kamyar Daneshvar | Name: Kamyar Daneshvar |
| Title: Associate General Counsel | Title: Associate General Counsel |

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[*Second Amendment Signature Page*]

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| | |
|:---|:---|
| **PACIFIC INDEMNITY COMPANY**, as a Holder | **PACIFIC INDEMNITY COMPANY**, as a Holder |
| and a Second Amendment Incremental Note Holder | and a Second Amendment Incremental Note Holder |
| By: EIG Credit Management Company, LLC, its | By: EIG Credit Management Company, LLC, its |
| manager | manager |
| By: | /s/ Jean Powers |
| Name: Jean Powers | Name: Jean Powers |
| Title: Managing Director | Title: Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: Kamyar Daneshvar | Name: Kamyar Daneshvar |
| Title: Associate General Counsel | Title: Associate General Counsel |
| **CARDINAL ENERGY LP**, as a Holder and a | **CARDINAL ENERGY LP**, as a Holder and a |
| Second Amendment Incremental Note Holder | Second Amendment Incremental Note Holder |
| By: EIG Credit Management Company, LLC, its | By: EIG Credit Management Company, LLC, its |
| manager | manager |
| By: | /s/ Jean Powers |
| Name: Jean Powers | Name: Jean Powers |
| Title: Managing Director | Title: Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: Kamyar Daneshvar | Name: Kamyar Daneshvar |
| Title: Associate General Counsel | Title: Associate General Counsel |
| **EIG RIVER ENERGY PARTNERS L.P.**, as a | **EIG RIVER ENERGY PARTNERS L.P.**, as a |
| Holder | Holder |
| By: EIG Credit Management Company, LLC, its | By: EIG Credit Management Company, LLC, its |
| manager | manager |
| By: | `/s/ Jean Powers |
| Name: Jean Powers | Name: Jean Powers |
| Title: Managing Director | Title: Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: Kamyar Daneshvar | Name: Kamyar Daneshvar |
| Title: Associate General Counsel | Title: Associate General Counsel |

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[*Second Amendment Signature Page*]

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| | |
|:---|:---|
| **EIG BANDELIER PARTNERS, L.P.**, as a | **EIG BANDELIER PARTNERS, L.P.**, as a |
| Holder | Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Jean Powers  |
| Name: Jean Powers | Name: Jean Powers |
| Title: Managing Director | Title: Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: Kamyar Daneshvar | Name: Kamyar Daneshvar |
| Title: Associate General Counsel | Title: Associate General Counsel |

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[*Second Amendment Signature Page*]

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**<u>Exhibit A</u>**

[Attached.]

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***EXECUTION VERSION<u>Execution Version</u>***

**WHITEHAWK INCOME CORPORATION** 

<u>SENIOR SECURED FIRST LIEN NOTES DUE 2030</u> 

**$151,000,000<u>251,000,000</u> NOTE PURCHASE AGREEMENT** 

**DATED AS OF SEPTEMBER 17, 2024** 

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**<u>**TABLE OF CONTENTS**</u>**

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| | | | |
|:---|:---|:---|:---|
| Article I | Article I | Article I | Article I |
| DEFINITIONS AND INTERPRETATION | DEFINITIONS AND INTERPRETATION | DEFINITIONS AND INTERPRETATION | DEFINITIONS AND INTERPRETATION |
|  **Section 1.01.** | Terms Defined Above |  | 1<u>1</u> |
|  **Section 1.02.** | Definitions | <u> </u> | 1<u>1</u> |
|  **Section 1.03.** | Accounting Terms |  | 37<u>40</u> |
|  **Section 1.04.** | Interpretation, etc. |  | 37<u>41</u> |
|  **Section 1.05.** | Calculations of Total PDP PV-10 Value |  | 38<u>42</u> |
|  **Section 1.06.** | Free Cash Flow Distributions and Prepayments Spreadsheet |  | 40<u>44</u> |
|  Article II | Article II | Article II | Article II |
|  PURCHASE AND SALE OF NOTES | PURCHASE AND SALE OF NOTES | PURCHASE AND SALE OF NOTES | PURCHASE AND SALE OF NOTES |
|  **Section 2.01.** | Note Purchase |  | 41<u>44</u> |
|  **Section 2.02.** | The Notes; Purchases, Conversions and Continuations of Notes |  | 41<u>45</u> |
|  **Section 2.03.** | Requests for Notes |  | 41<u>45</u> |
|  **Section 2.04.** | Use of Proceeds |  | 42<u>46</u> |
|  **Section 2.05.** | Evidence of Debt; Register; Holders' Books and Records; Notes |  | 42<u>46</u> |
|  **Section 2.06.** | Interest; Fees |  | 4246 |
|  **Section 2.07.** | Repayment of Notes |  | 43<u>47</u> |
|  **Section 2.08.** | Voluntary Prepayments |  | 43<u>47</u> |
|  **Section 2.09.** | Mandatory Prepayments |  | 43<u>47</u> |
|  **Section 2.10.** | Application of Payments |  | 47<u>51</u> |
|  **Section 2.11.** | General Provisions Regarding Payments |  | 47<u>51</u> |
|  **Section 2.12.** | Ratable Sharing |  | 48<u>53</u> |
|  **Section 2.13.** | Increased Costs |  | 49<u>53</u> |
|  **Section 2.14.** | Taxes; Withholding, etc. |  | 50<u>54</u> |
|  **Section 2.15.** | Alternate Rate of Interest |  | 53<u>57</u> |
|  **Section 2.16.** | Incremental Notes |  | 55<u>59</u> |
|  Article III | Article III | Article III | Article III |
|  CONDITIONS PRECEDENT | CONDITIONS PRECEDENT | CONDITIONS PRECEDENT | CONDITIONS PRECEDENT |
|  **Section 3.01.** | Closing Date |  | 56<u>61</u> |
|  Article IV | Article IV | Article IV | Article IV |
|  REPRESENTATIONS AND WARRANTIES | REPRESENTATIONS AND WARRANTIES | REPRESENTATIONS AND WARRANTIES | REPRESENTATIONS AND WARRANTIES |
|  **Section 4.01.** | Organization; Powers |  | 60<u>64</u> |
|  **Section 4.02.** | Authority; Enforceability |  | 60<u>65</u> |
|  **Section 4.03.** | Approvals; No Conflicts |  | 60<u>65</u> |
|  **Section 4.04.** | Financial Condition; No Material Adverse Effect |  | 61<u>65</u> |
|  **Section 4.05.** | Litigation |  | 61<u>65</u> |
|  **Section 4.06.** | Environmental Matters |  | 61<u>66</u> |
|  **Section 4.07.** | Compliance with Laws and Agreements; No Defaults, Event of Default |  | 62<u>67</u> |
|  **Section 4.08.** | Investment Company Act |  | 63<u>67</u> |
|  **Section 4.09.** | Taxes |  | 63<u>67</u> |
|  **Section 4.10.** | ERISA |  | 63<u>68</u> |
|  **Section 4.11.** | Disclosure; No Material Misstatements |  | 64<u>68</u> |
|  **Section 4.12.** | Insurance |  | 64<u>69</u> |

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| | | |
|:---|:---|:---|
|  **Section 4.13.** | Subsidiaries; Foreign Operations | 65<u>69</u> |
|  **Section 4.14.** | Properties; Titles, Etc. | 65<u>70</u> |
|  **Section 4.15.** | [Reserved] | 66<u>71</u> |
|  **Section 4.16.** | No Operations. | 66<u>71</u> |
|  **Section 4.17.** | [Reserved] | 66<u>71</u> |
|  **Section 4.18.** | Swap Agreements and Qualified ECP Guarantor | 66<u>71</u> |
|  **Section 4.19.** | Use of Proceeds | 66<u>71</u> |
|  **Section 4.20.** | Solvency | 66<u>71</u> |
|  **Section 4.21.** | Anti-Corruption Laws, Sanctions and USA PATRIOT Act | 66<u>71</u> |
|  **Section 4.22.** | Affected Financial Institutions | 66<u>71</u> |
|  **Section 4.23.** | Collateral Documents | 67<u>71</u> |
|  **Section 4.24.** | Senior Debt | 67<u>72</u> |
|  **Section 4.25.** | Private Offering | 67<u>72</u> |
|  Article V | Article V | Article V |
|  REPRESENTATIONS OF HOLDERS | REPRESENTATIONS OF HOLDERS | REPRESENTATIONS OF HOLDERS |
|  **Section 5.01.** | Organization and Standing | 67<u>72</u> |
|  **Section 5.02.** | Authorization; Enforceability | 67<u>72</u> |
|  **Section 5.03.** | Investment | 67<u>72</u> |
|  **Section 5.04.** | Accredited Investor | 68<u>72</u> |
|  **Section 5.05.** | No Resale or Repurchase | 68<u>73</u> |
|  **Section 5.06.** | Private Placement | 68<u>73</u> |
|  **Section 5.07.** | Knowledge and Experience | 68<u>73</u> |
|  **Section 5.08.** | No Materials | 68<u>7</u>3 |
|  **Section 5.09.** | Transfer Restrictions | 68<u>73</u> |
|  **Section 5.10.** | Offers and Sales Only in Certain Circumstances | 69<u>73</u> |
|  **Section 5.11.** | Subsequent Purchaser Notification | 69<u>74</u> |
|  Article VI | Article VI | Article VI |
|  AFFIRMATIVE COVENANTS | AFFIRMATIVE COVENANTS | AFFIRMATIVE COVENANTS |
|  **Section 6.01.** | Financial Statements; Other Information | 69<u>74</u> |
|  **Section 6.02.** | Notices of Material Events | 74<u>79</u> |
|  **Section 6.03.** | Existence; Conduct of Business | 74<u>79</u> |
|  **Section 6.04.** | Payment of Taxes | 74<u>79</u> |
|  **Section 6.05.** | [Reserved] | 75<u>80</u> |
|  **Section 6.06.** | Insurance | 75<u>80</u> |
|  **Section 6.07.** | Books and Records; Inspection Rights | 75<u>80</u> |
|  **Section 6.08.** | Compliance with Laws | 75<u>80</u> |
|  **Section 6.09.** | Environmental Matters | 75<u>80</u> |
|  **Section 6.10.** | Further Assurances | 76<u>81</u> |
|  **Section 6.11.** | Reserve Reports | 77<u>82</u> |
|  **Section 6.12.** | Title Information | 78<u>83</u> |
|  **Section 6.13.** | Collateral and Guaranty Agreements | 78<u>84</u> |
|  **Section 6.14.** | ERISA Compliance | 80<u>85</u> |
|  **Section 6.15.** | Commodity Exchange Act Keepwell Provisions | 80<u>85</u> |
|  **Section 6.16.** | Deposit Accounts and Securities Accounts | 80<u>85</u> |
|  **Section 6.17.** | Use of Proceeds | 80<u>86</u> |
|  **Section 6.18.** | Swap Agreements | 81<u>86</u> |
|  **Section 6.19.** | Post-Closing Covenant | 82<u>87</u> |
|  **<u>Section 6.20.</u>** | <u>Minimum Liquidity</u> | <u>88</u> |

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| | | |
|:---|:---|:---|
|  Article VII | Article VII | Article VII |
|  NEGATIVE COVENANTS | NEGATIVE COVENANTS | NEGATIVE COVENANTS |
|  **Section 7.01.** | Financial Covenants | 82<u>88</u> |
|  **Section 7.02.** | Debt | 84<u>89</u> |
|  **Section 7.03.** | Liens | 84<u>90</u> |
|  **Section 7.04.** | Dividends and Distributions | 85<u>91</u> |
|  **Section 7.05.** | Investments and Advances | 87<u>93</u> |
|  **Section 7.06.** | Nature of Business; Wholly-Owned Subsidiaries; No International Operations | 84<u>94</u> |
|  **Section 7.07.** | ERISA Compliance | 88<u>94</u> |
|  **Section 7.08.** | Mergers, Etc. | 88<u>95</u> |
|  **Section 7.09.** | Sale of Properties and Termination of Swap Agreements | 89<u>95</u> |
|  **Section 7.10.** | Transactions with Affiliates | 90<u>96</u> |
|  **Section 7.11.** | Subsidiaries | 90<u>96</u> |
|  **Section 7.12.** | Negative Pledge Agreements; Dividend Restrictions | 90<u>97</u> |
|  **Section 7.13.** | Swap Agreements | 91<u>97</u> |
|  **Section 7.14.** | Designation and Conversion of Restricted and Unrestricted Subsidiaries | 92<u>98</u> |
|  **Section 7.15.** | Organizational Documents | 92<u>99</u> |
|  **Section 7.16.** | Changes in Fiscal Year | 92<u>99</u> |
|  **Section 7.17.** | Amendments to Material Agreements | 92<u>99</u> |
|  **Section 7.18.** | General and Administrative Costs | 93<u>99</u> |
|  Article VIII | Article VIII | Article VIII |
|  PASSIVE HOLDING COMPANY STATUS OF THE ISSUER | PASSIVE HOLDING COMPANY STATUS OF THE ISSUER | PASSIVE HOLDING COMPANY STATUS OF THE ISSUER |
|  Article IX | Article IX | Article IX |
|  EVENTS OF DEFAULT; REMEDIES | EVENTS OF DEFAULT; REMEDIES | EVENTS OF DEFAULT; REMEDIES |
|  **Section 9.01.** | Events of Default | 93<u>100</u> |
|  **Section 9.02.** | Treatment of Make-Whole Amount and Prepayment Fee | 96<u>102</u> |
|  **Section 9.03.** | Application of Funds | 97<u>103</u> |
|  **Section 9.04.** | Credit Bidding | 97<u>104</u> |
|  Article X | Article X | Article X |
|  AGENTs | AGENTs | AGENTs |
|  **Section 10.01.** | Appointment of Agents | 99<u>106</u> |
|  **Section 10.02.** | Powers and Duties | 99<u>106</u> |
|  **Section 10.03.** | General Immunity | 99106 |
|  **Section 10.04.** | Holders' Representations, Warranties and Acknowledgment | 102<u>109</u> |
|  **Section 10.05.** | Successor Agents | 103<u>110</u> |
|  **Section 10.06.** | Delegation of Duties | 104<u>111</u> |
|  **Section 10.07.** | Collateral Documents | 104<u>111</u> |
|  **Section 10.08.** | Posting of Approved Electronic Communications | 105<u>112</u> |
|  **Section 10.09.** | Proofs of Claim | 106<u>112</u> |
|  **Section 10.10.** | Hedge Intercreditor Agreement | 106<u>113</u> |
|  **Section 10.11.** | Indemnification | 107<u>113</u> |

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| | | |
|:---|:---|:---|
|  Article XI | Article XI | Article XI |
|  MISCELLANEOUS | MISCELLANEOUS | MISCELLANEOUS |
|  **Section 11.01.** | Notices | 107<u>114</u> |
|  **Section 11.02.** | Expenses | 107<u>114</u> |
|  **Section 11.03.** | Indemnity; Limitation of Liability | 108<u>115</u> |
|  **Section 11.04.** | Set Off | 109<u>116</u> |
|  **Section 11.05.** | [Reserved] | 109<u>116</u> |
|  **Section 11.06.** | Amendments and Waivers | 109<u>116</u> |
|  **Section 11.07.** | Successors and Assigns; Assignments | 111<u>118</u> |
|  **Section 11.08.** | Survival of Representations, Warranties and Agreements | 113<u>120</u> |
|  **Section 11.09.** | No Waiver; Remedies Cumulative | 114<u>121</u> |
|  **Section 11.10.** | Marshalling; Payments Set Aside | 114<u>121</u> |
|  **Section 11.11.** | Severability | 114<u>121</u> |
|  **Section 11.12.** | Obligations Several; Independent Nature of Holders' Rights | 114<u>121</u> |
|  **Section 11.13.** | Tax Treatment | 114<u>121</u> |
|  **Section 11.14.** | Headings | 114<u>122</u> |
|  **Section 11.15.** | APPLICABLE LAW | 114<u>122</u> |
|  **Section 11.16.** | CONSENT TO JURISDICTION | 115<u>122</u> |
|  **Section 11.17.** | WAIVER OF JURY TRIAL | 115<u>122</u> |
|  **Section 11.18.** | Confidentiality | 115<u>123</u> |
|  **Section 11.19.** | Usury Savings Clause | 116<u>124</u> |
|  **Section 11.20.** | Counterparts | 117<u>124</u> |
|  **Section 11.21.** | USA PATRIOT Act | 117<u>124</u> |
|  **Section 11.22.** | Disclosure | 117<u>124</u> |
|  **Section 11.23.** | Appointment for Perfection | 117<u>124</u> |
|  **Section 11.24.** | Advertising and Publicity | 117<u>125</u> |
|  **Section 11.25.** | Acknowledgments and Admissions | 118<u>125</u> |
|  **Section 11.26.** | Third Party Beneficiaries | 118<u>126</u> |
|  **Section 11.27.** | Entire Agreement | 119<u>126</u> |
|  **Section 11.28.** | Transferability of Securities; Restrictive Legend | 119<u>126</u> |
|  **Section 11.29.** | Replacement of Notes | 119<u>126</u> |
|  **Section 11.30.** | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 119<u>127</u> |
|  **Section 11.31.** | Hedge Intercreditor Agreement | 120<u>127</u> |

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| | | |
|:---|:---|:---|
| **APPENDICES:** | A | Commitments |
|  | B | Notice Addresses |
|  | C | Free Cash Flow Distributions and Prepayments |
|  | D | Free Cash Flow Distributions and Prepayments Spreadsheet |
| **SCHEDULES:** | 1.02(a) | Guarantors |
|  | 1.02(b) | Material Contracts |
|  | 4.13 | Subsidiaries |
|  | 4.18 | Swap Agreements |
|  | 7.04 | Permitted Restricted Payments |
|  | 7.05 | Existing Investments |
|  | 11.18 | Compliance Personnel |
| **EXHIBITS:** | A | Form of Note Purchase Notice |
|  | B-1 | Form of Note |
|  | B-2 | Form of Incremental Note |
|  | C | Form of Closing Date Certificate |
|  | D | Form of Compliance Certificate |
|  | E | Form of Solvency Certificate |
|  | F | Form of Guaranty Agreement |
|  | G | Form of Pledge and Security Agreement |
|  | H | Form of Assignment Agreement |
|  | I-1-4 | Form of U.S. Tax Compliance Certificate |
|  | J | Form of Reserve Report Certificate |
|  | K | Form of Free Cash Flow Utilization Certificate |
|  | L | Form of Mortgage |

---

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**WHITEHAWK INCOME CORPORATION** 

This **NOTE PURCHASE AGREEMENT**, dated as of September 17, 2024 (together with any amendments, restatements, amendments and restatements, supplements or other modifications hereto, the "**Agreement**"), is entered into by and among **WHITEHAWK INCOME CORPORATION**, a Delaware corporation (the "**Issuer**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pacific Indemnity Company, as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG River Energy Partners, L.P., as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG Upstream Partners, L.P., as Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG Bandelier Partners, L.P., as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cardinal Energy LP, as a Holder

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>ART Electro, S.C.SP., as a Holder;</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG Sunsuper II
Blocker, <u>Cumberland Partners,</u> L LC <u>.P.</u>, as a Holder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. Bank Trust Company, National Association, as agent (in such capacity, the "**Agent**") and
collateral agent for the Holders and the Secured Hedge Providers (in such capacity, the "**Collateral Agent** ").

**W I T N E S E T H:** 

In consideration of the mutual covenants and agreements contained herein and the Notes to be purchased by Holders, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**ARTICLE I** 

**DEFINITIONS AND INTERPRETATION** 

**Section 1.01.** <u>Terms Defined Above</u>. As used in this Agreement, each term defined above has the meaning indicated above.

**Section 1.02.** <u>Definitions</u>. The following terms used herein, including in the preamble, recitals, exhibits and schedules hereto, shall have the following meanings:

"**ABR**" means, for any day, a rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day <u>plus</u> <sup>1</sup>⁄<sub>2</sub> of 1% (or if such day is not a Business Day, the immediately preceding Business Day) and (c) if available, the Adjusted Term SOFR Rate as determined two (2) U.S. Government Securities Business Days prior to such day (or if such day is not a Business Day, the immediately preceding Business Day); <u>provided</u> that for the purpose of this definition, the Adjusted Term SOFR Rate for any day shall be based on the Term SOFR Reference Rate at approximately 12:00 p.m., New York time on such day (or any amended publication time for the Term SOFR Reference Rate, as specified by the CME Term SOFR Administrator in the Term SOFR Reference Rate methodology). Any change in the ABR due to a change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR Rate shall be effective

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as of the opening of business on the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR Rate, respectively. For the avoidance of doubt, if the ABR shall be less than 3.75%, such rate shall be deemed to be 3.75% for purposes of this Agreement. In the event the Agent on any interest determination date is required, but unable, to determine a benchmark rate in accordance with at least of the procedures described above, ABR will be the Adjusted Term SOFR Rate as determined on the previous interest determination date.

"**ABR Note**" means Notes the rate of interest applicable to which is based upon the ABR. For the avoidance of doubt, Notes shall constitute ABR Notes only as set forth in <u>Section 2.15(a)</u> or as otherwise expressly set forth herein.

"**Accepting Holder**" as defined in <u>Section 2.09(g)</u>.

"**Acquired Assets**" means the Assets acquired pursuant to the Specified Acquisition Agreement.

"**Acquired Assets Reserve Report**" means that certain reserve report prepared by Encore Analytics, LLC in respect of the Acquired Assets of the Issuer, with an as of date of August 1, 2024.

<u>"**Acquired PHX Assets**" means the rights, properties and assets of the Surviving Corporation (as defined in the Specified PHX Merger Agreement) and its subsidiaries acquired pursuant to the Specified PHX Merger Agreement.</u>

"**Acquired SJM Assets**" means the Assets (as defined in the Specified SJM Acquisition Agreement) acquired pursuant to the Specified SJM Acquisition Agreement.

**"Adjusted Cash Flow from Operating Activities"** means, for any period, (a) Cash Flow from Operating Activities <u>minus</u> (b) to the extent included in Cash Flow From Operating Activities, any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries for such period, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments.

"**Administrative Services Agreement**" means that certain Administrative Services Agreement, dated as of March 1, 2022, between, the Issuer and WhiteHawk Management, LLC.

"**Adjusted Term SOFR Rate**" means an interest rate *per annum* equal to the Term SOFR Rate; <u>provided</u> that if the Adjusted Term SOFR Rate as so determined would be less than 2.75%, such rate shall be deemed to be 2.75% for the purposes of this Agreement.

"**Affected Financial Institution**" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"**Affiliate**" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified; <u>provided</u> that any Person that directly owns or holds twenty percent (20%) or more of any class of Equity Interests with voting power in such specified Person shall be deemed to be an Affiliate.

"**Affiliated Investor**" means any Person to the extent it owns or holds, directly or indirectly, or its Affiliate (other than the Issuer or any of its Subsidiaries) owns or holds, directly or indirectly, any Equity Interests of the Issuer or any of its Subsidiaries.

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"**Agent**" as defined in the preamble hereto.

"**Agents**" means the Agent and the Collateral Agent.

"**Agent Fee Letter**" means that certain Fee Letter dated as of the Closing Date between the Issuer and the Agent.

"**Agent's Account**" means an account designated by Agent from time to time as the account into which Note Parties shall make all payments to Agent for the benefit of the Agent and the Holders under this Agreement and the other Note Documents.

"**Agent's Office**" means the "Agent's Office" as set forth on <u>Appendix B</u> or such other office as Agent may from time to time designate in writing to the Issuer and each Holder.

"**Aggregate Amounts Due**" as defined in <u>Section 2.12</u>.

"**Agreement**" as defined in the preamble.

"**Alternate Offer**" as defined in <u>Section 2.09(h)(iii)</u>.

"**Anti-Corruption Laws**" means all laws, rules, and regulations of any jurisdiction applicable to the Issuer or any of its Restricted Subsidiaries from time to time concerning or relating to bribery or corruption, including the FCPA.

"**Appalachia Gas**" means the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves of gas located within the States of Pennsylvania, Ohio and West Virginia.

"**Applicable Margin**" means, (a) <u>prior to the Second Amendment Pre-Fund Date: (i)</u> with respect to any Note (other than an ABR Note), a rate per annum equal to the Adjusted Term SOFR Rate <u>plus</u> 6.25% and (b<u>ii</u>) with respect to any ABR Note, a rate per annum equal to ABR <u>plus</u> 5.25%. <u>and (b) on and after the Second Amendment Pre-Fund Date: (i) with respect to any Note (other than an ABR Note), a rate per annum equal to the Adjusted Term SOFR Rate plus 6.50% and (ii) with respect to any ABR Note, a rate per annum equal to ABR plus 5.50%.</u>

"**Applicable Office**" means the office through which a Holder's investment in any Note is made.

"**Approved Counterparty**" means (a) Citadel Energy Marketing LLC<u>, (b) BP Energy Company</u> or (b) any other Person who, at the time of entering into a Swap Agreement, has a long term senior unsecured debt rating (or whose guaranteeing credit support provider has a long term senior unsecured debt rating) of A-/A3 by S&P or Moody's (or their equivalent) or higher.

"**Approved Petroleum Engineers**" means (a) Netherland, Sewell & Associates, Inc., (b) Ryder Scott Company, L.P., (c) Schaper Energy Consulting LLC and (d) any other nationally recognized independent petroleum engineering firms selected by the Issuer and reasonably acceptable to the Requisite Holders.

"**Asset Coverage Ratio**" means, with respect to any date of determination, the ratio of (a) the Total PDP PV-10 Value as of such date of determination to (b) the Total Net Debt as of such date of determination.

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"**Asset Sale**" means a sale, lease or sublease (as lessor or sublessor), sale and leaseback, assignment, conveyance, license, transfer or other disposition to, or any exchange of property with, any Person, in one transaction or a series of related transactions, of all or any part of any Person's businesses, assets or properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, including the Equity Interest owned by such Person (in each case of the foregoing, excluding any Casualty Event).

"**Assignment Agreement**" means an Assignment and Assumption Agreement substantially in form of <u>Exhibit H</u> or such other form reasonably acceptable to the Agent (at the direction of the Requisite Holders).

"**AUM Fee**" means the monthly asset management fee in an amount equal to 1.50% of the Issuer's total assets, payable by the Issuer to WhiteHawk Management, LLC, pursuant to Section 4(a) of the Investment Management Agreement.

"**Bail-In Action**" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"**Bail-In Legislation**" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"**Beneficial Ownership Certification**" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

"**Beneficial Ownership Regulation**" means 31 C.F.R. § 1010.230.

"**Bloomberg**" has the meaning set forth in the definition of "**Reinvestment Yield**".

"**Board**" means the Board of Governors of the Federal Reserve System of the United States of America or any successor Governmental Authority.

"**Board of Directors**" means (a) with respect to a corporation, the board of directors of the corporation or any committee thereof duly authorized to act on behalf of such board; (b) with respect to a partnership, the board of directors of the general partner of the partnership; (c) with respect to a limited liability company, the manager, managers, managing member or members or any controlling committee of managing members thereof; and (d) with respect to any other Person, the board or committee of such Person serving a similar function.

"**Business Day**" means any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the States of New York or Texas or is a day on which banking institutions located in either of such states are authorized or required by law or other governmental action to close.

"**Called Principal**" means, with respect to any Note, the amount of principal of such Note that is to be prepaid pursuant to <u>Section 2.08</u>, <u>Section 2.09(c)</u>, or <u>Section 2.09(d)</u> or has become or is declared to be immediately due and payable pursuant to <u>Section 9.01</u>, as the context requires.

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"**Cash Equivalents**" means (a) securities issued or fully guaranteed or insured by the United States Government or any agency thereof and backed by the full faith and credit of the United States having maturities of not more than twelve (12) months from the date of acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits, or bankers' acceptances having in each case a tenor of not more than twelve (12) months from the date of acquisition issued by any Holder or any U.S. commercial bank or any branch or agency of a non-U.S. commercial bank licensed to conduct business in the U.S. having combined capital and surplus of not less than $500,000,000 and having a short term deposit rating of no lower than A2 or P2, as such rating is set forth from time to time by S&P or Moody's, respectively; (c) commercial paper of an issuer rated at least A-1 by S&P or P-1 by Moody's at the time of acquisition, and in either case having a tenor of not more than twelve (12) months; (d) repurchase obligations with a term of not more than one-hundred eighty (180) days for underlying securities of the types described in <u>clauses (a)</u> and <u>(b)</u> entered into with any financial institution or recognized securities dealer meeting the qualifications specified in <u>clause (b)</u> above; and <u>(e)</u> deposits in money market funds and investments investing exclusively in investments described in <u>clauses (a)</u>, <u>(b)</u>, <u>(c)</u> and <u>(d)</u> above.

"**Cash Flow From Operating Activities**" means, for any period, the cash generated from the normal business operations of the Issuer and its Restricted Subsidiaries for such period, determined in a manner consistent with (a) the Issuer's past practice and (b)(i) the line item "Net Cash Flow, Total" contained in the Issuer's precedent lease operating statements (file name "WhiteHawk LOS through May 2024 (August 2024).xlsx") delivered by the Issuer to EIG on or prior to the Closing Date, incorporating the revenue and expenses from ongoing operations of the Issuer and its Restricted Subsidiaries including from Oil and Gas Properties and Swap Agreements, <u>minus</u> (ii) General and Administrative Costs of the Issuer and its Restricted Subsidiaries for such period, and <u>minus</u> (iii) Consolidated Interest Expense of the Issuer and its Restricted Subsidiaries for such period.

"**Casualty Event**" means any loss, casualty or other insured damage to, or any nationalization, taking under power of eminent domain or by condemnation or similar proceeding of, any Property of the Issuer or any of its Restricted Subsidiaries.

"**CERCLA**" has the meaning set forth in the definition of "Environmental Laws". "**Change in Control**" means the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any "person" or "group" (within the meaning of Section 13(d) or 14(d) of the Exchange Act), shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of a percentage of the total voting or economic power of all classes of capital stock of the Issuer entitled to vote generally in the election of directors, of fifty percent (50%) or more on a fully diluted basis,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the occupation of a majority of the seats (other than vacant seats) on the board of directors of the Issuer by Persons who were neither (i) directors of Issuer on the Closing Date, (ii) nominated nor approved by the board of directors of Issuer nor (iii) appointed by WhiteHawk Management LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) WhiteHawk Management LLC shall cease to be one hundred percent (100%) owned and controlled, of record and beneficially, by WhiteHawk Minerals LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) WhiteHawk Minerals LLC shall cease to be owned and controlled, of record and beneficially, fifty-one percent (51%) or more by WhiteHawk Energy LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) WhiteHawk Management LLC shall cease to Control the Issuer, or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a "Change in Control" (or equivalent term as defined in any other instrument governing Material Debt) or any functionally equivalent concept under any other instrument governing Material Debt shall have occurred.

"**Closing Date**" means the date on which all of the conditions precedent set forth in <u>Section 3.01</u> have been satisfied or waived.

"**Closing Date Certificate**" means a Closing Date Certificate substantially in the form of <u>Exhibit C</u>.

"**CME Term SOFR Administrator**" means CME Group Benchmark Administration Limited as administrator of the forward-looking term Secured Overnight Financing Rate (SOFR) (or a successor administrator).

"**Code**" means Title 11 of the United States Code entitled "Bankruptcy," as now and hereafter in effect, or any successor statute.

"**Collateral Agent**" as defined in the preamble hereto.

"**Collateral Coverage Minimum**" as defined in <u>Section 6.13(a)</u>.

"**Collateral Documents**" means Guaranty Agreement, the Pledge and Security Agreement, the Mortgages, the Control Agreements, the Hedge Intercreditor Agreement and all other instruments, documents and agreements executed by any Note Party in connection with this Agreement or any of the other Note Documents that are intended to create, perfect or evidence Liens to secure the Obligations, including, without limitation, all other security agreements, account control agreements, pledge agreements, mortgages, deeds of trust, guarantees, subordination agreements, pledges, powers of attorney and assignments now, or hereafter executed by any Note Party and delivered to the Collateral Agent to secure the Obligations, as such agreements may be amended, restated, amended and restated, modified, supplemented or restated from time to time.

"**Commitment**" means, as to each Holder, its obligation to purchase a Note from the Issuer pursuant to <u>Section 2.01(a)</u> in an aggregate amount not to exceed the amount set forth opposite such Holder's name in <u>Appendix A</u> under the caption "Commitment." The aggregate amount of the Commitments is $151,000,000<u>251,000,000</u> .

"**Commitments**" means such commitments of all Holders in the aggregate. "**Commodity Account**" means any "commodity account" as defined in the UCC.

"**Commodity Exchange Act**" means the Commodity Exchange Act (7 U.S.C. § 1 *et seq.*), as amended from time to time, and any successor statute, and any regulations promulgated thereunder.

"**Communications**" as defined in <u>Section 10.08(a)</u>.

"**Compliance Certificate**" means a Compliance Certificate substantially in the form of <u>Exhibit D</u>.

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"**Confidential Information**" as defined in <u>Section 11.18</u>.

"**<u>Connection Income Tax</u>**" means Taxes described in (b) of the definition of Tax on the Overall Net Income that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"**Consolidated Interest Expense**" means, for any period, the sum (determined without duplication) of the aggregate gross interest expense of the Note Parties and their Consolidated Restricted Subsidiaries for such period. For purposes of the foregoing, gross interest expense shall be determined after giving effect to any net payments made or received by the Note Parties with respect to interest rate Swap Agreements.

"**Consolidated Net Income**" means with respect to the Issuer and the Consolidated Restricted Subsidiaries, for any period, the aggregate of the net income (or loss) of the Issuer and the Consolidated Restricted Subsidiaries for such period determined on a consolidated basis in accordance with GAAP; <u>provided</u> that there shall be excluded, without duplication, from such net income (to the extent otherwise included therein) the following: (a) the net income of (i) any Unrestricted Subsidiary and (ii) any Person in which the Issuer or any Consolidated Restricted Subsidiary has an interest (which interest does not cause the net income of such other Person to be consolidated with the net income of the Issuer and the Consolidated Restricted Subsidiaries in accordance with GAAP), except in the case of the foregoing clauses <u>(i)</u> and <u>(ii)</u> to the extent of the amount of dividends or distributions actually paid in cash during such period by such Unrestricted Subsidiary or other Person, as the case may be, to the Issuer or to a Consolidated Restricted Subsidiary, as the case may be, from cash generated by such Person; (b) the net income (but not loss) during such period of any Consolidated Restricted Subsidiary to the extent that the declaration or payment of dividends or similar distributions or transfers or loans by that Consolidated Restricted Subsidiary is not at the time permitted by operation of the terms of its charter or any agreement, instrument or Governmental Requirement applicable to such Consolidated Restricted Subsidiary or is otherwise restricted or prohibited, in each case determined in accordance with GAAP; (c) the net income (or loss) of any Person accrued prior to the date it becomes a Consolidated Restricted Subsidiary or is merged into or consolidated with the Issuer or any of its Consolidated Restricted Subsidiaries; (d) the cumulative effect of a change in accounting principles during such period to the extent included in Consolidated Net Income; (e) any net after tax effect on income (or loss) for such period attributable to the early extinguishment, cancellation, termination or unwinding of any Debt or Swap Agreement; (f) any unrealized income (or loss) for such period attributable to hedging obligations or other derivative instruments; (g) accruals and reserves established or adjusted, or other charges required as a result of, the adoption or modification of accounting policies during such period; (h) any gains or losses attributable to writeups or writedowns of assets; and (i) any non-cash gains or losses (including any positive or negative adjustments under FASB ASC 815 as a result of changes in the fair market value of derivatives).

"**Consolidated Restricted Subsidiaries**" means any Restricted Subsidiaries that are Consolidated Subsidiaries.

"**Consolidated Subsidiaries**" means each Subsidiary of the Issuer (whether now existing or hereafter created or acquired) the financial statements of which shall be (or should have been) consolidated with the financial statements of the Issuer in accordance with GAAP.

"**Consolidated Total Net Leverage Ratio**" means, as of the last day of any fiscal quarter or "Applicable Distribution Period", as applicable, the ratio of Total Net Debt as of such date of determination to EBITDA for the Rolling Period or "Applicable Distribution Period", as applicable, then ending.

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"**Consolidation**" as defined in <u>Section 7.08</u>.

"**Control**" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and "Controlled" have meanings correlative thereto.

"**Control Agreement**" means a control agreement, in form and substance reasonably satisfactory to the Collateral Agent and the Requisite Holders, entered into with the Collateral Agent and the bank or securities intermediary at which any Deposit Account, Commodity Account or Securities Account is maintained by any Note Party in accordance with <u>Section 6.16</u>.

"**Cure Amount**" as defined in <u>Section 7.01(c)</u>.

"**Cure Period**" as defined in <u>Section 7.01(c)</u>.

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"**Declining Holder**" as defined in <u>Section 2.09(g)</u>.

"**Default**" means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

"**Default Rate**" means any interest payable pursuant to <u>Section 2.06(c)</u>.

"**Deposit Account**" means any "deposit account" as defined in the UCC.

"**Discounted Value**" means, with respect to the Called Principal of any Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

"**Disqualified Capital Stock**" means any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event, matures or is mandatorily redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock), pursuant to a sinking fund obligation or otherwise, or is convertible or exchangeable for Debt or redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock) at the option of the holder thereof, in whole or in part, on or prior to the date that is ninety-one (91) days (or, if issued to an insider, three hundred sixty-six (366) days) after the Maturity Date.

"**Distributable Free Cash Flow**" means, as of any time of determination for a calendar month set forth under the heading "Distribution Month" in <u>Appendix C</u>, (a) an amount equal to Free Cash Flow (Forward) for such "Applicable CF Period", <u>minus</u> (b) the aggregate amount of Restricted Payments made during the then current period set forth under the heading "Applicable Distribution Period" in <u>Appendix C</u> prior to and at such time of determination under <u>Section 7.04(c)</u>, <u>minus</u> (c) the aggregate amount of Investments made during the then current Applicable Distribution Period prior to and at such time of determination pursuant to <u>Section 7.05(h)</u> (each such use under <u>clause (b)</u> and/or <u>clause (c)</u>, a "**Free Cash Flow Utilization**").

"**Distribution Period A**" means the period commencing on the First Amendment Effective Date and ending on December<u>March</u> 31, 2025<u>2026</u> .

"**Distribution Period B**" means the period commencing on January<u>April</u> 1, 2026 and ending on June<u>September</u> 30, 2027.

"**Distribution Period C**" means the period commencing on July<u>October</u> 1, 2027 and continuing thereafter.

"**Distribution PF Basis**" means, (a) as to the calculation of the Consolidated Total Net Leverage Ratio, the Asset Coverage Ratio and Liquidity in connection with a Restricted Payment made pursuant to <u>Section 7.04(c)</u> and/or Investment made pursuant to <u>Section 7.05(h)</u>, such calculation will be made (i) on a pro forma basis, including giving pro forma effect (A) to the Restricted Payment and/or Distribution as if such Restricted Payment and/or Distribution occurred immediately prior to such date of determination and (B) to the extent a "CF Sweep Date" occurs during "Applicable CF Period", any prepayment of the Notes pursuant to <u>Section 2.09(a)</u> and (ii) as of (including utilizing Total Net Debt as of) the last Business Day prior to the date of such calculation and (b) as to the calculation of Liquidity in connection

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with <u>Section 2.09(a)</u>, such calculation will be made (i) on a pro forma basis, including giving pro forma effect to any prepayment of the Notes pursuant to <u>Section 2.09(a)</u> and (ii) as of the last Business Day prior to the date of such calculation. Pro forma calculations made pursuant to the definition of the term "Distribution PF Basis" shall be determined in good faith by a Responsible Officer of the Issuer and with supporting documentation reasonably acceptable to the Requisite Holders and with respect to the Asset Coverage Ratio, made in accordance with <u>Section 1.05</u> and <u>Section 6.01(u)</u>.

"**Dividend Incentive Fee**" means (a) the 12.50% fee of all distributions, including all Dividends (as defined in the Offering Memorandum (as defined in the Investment Management Agreement)) and Dividend Incentive Fees, earned and/or paid out by the Issuer to WhiteHawk Management, LLC during a calendar month pursuant to <u>Section 4(b)</u> of the Investment Management Agreement and (b) the Manager Fee Deferrals (as defined in the Investment Management Agreement) payable by the Issuer to WhiteHawk Management, LLC pursuant to <u>Section 4(c)</u> of the Investment Management Agreement.

"**Dollars**" and the sign "**$**" mean the lawful money of the United States of America.

"**Domestic Subsidiary**" means any Restricted Subsidiary that is organized under the laws of the United States of America or any state or territory thereof or the District of Columbia.

"**EBITDA**" means, for any period, Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increased (without duplication) by the following, in each case (other than in the case of <u>clause (a)(v)</u> below) to the extent deducted from or otherwise not included (and not added back) in the determination of Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provision for taxes based on income or profits or capital, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Consolidated Interest Expense for such period (net of interest income of the Issuer and the Consolidated Subsidiaries for such period), <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) depreciation, depletion and amortization expense, including the amortization of intangible assets established through purchase accounting and the, amortization of deferred financing fees for such period, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other non-cash charges reducing Consolidated Net Income for such period (<u>provided</u> that if any such non-cash charges represent an accrual or reserve for potential cash items in any future period, the cash payment in respect thereof in such future period shall be subtracted from EBITDA on a dollar-for-dollar basis to such extent, and excluding amortization of a prepaid cash item that was paid in a prior period), <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) reasonable (A) Transaction Expenses incurred on, prior to or within three (3) months of the Closing Date and (B) costs and expenses incurred in connection with any Investments, acquisitions (or purchases of assets (including those relating to Oil and Gas Properties)), asset dispositions (including those relating to Oil and Gas Properties), recapitalizations, mergers, amalgamations, repayment, refinancing amendment or modification of Debt or similar transactions after the Closing Date permitted hereunder up to an aggregate amount pursuant to this <u>clause (B)</u> not to exceed $3,000,000 in any period, <u>plus</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the amount of AUM Fees and Dividend Incentive Fees for such period, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any net loss from disposed, abandoned or discontinued operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) decreased (without duplication) by the following, in each case to the extent included in determining Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) non-cash items increasing Consolidated Net Income for such period, excluding any non-cash items that represent the reversal of an accrual or cash reserve for any anticipated cash charges in any prior period where such accrual or cash reserve is no longer required (other than any such accrual or cash reserve that has been added back to Consolidated Net Income in calculating EBITDA in accordance with this definition), <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any net income from disposed, abandoned or discontinued operations, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any non-cash items with respect to cash actually received in a prior period unless such cash did not increase EBITDA in such prior period.

For the purposes of calculating EBITDA for any Rolling Period or for any "Application Distribution Period" as set forth on Appendix C, (i) if during such Rolling Period or "Application Distribution Period", as applicable, the Issuer or any Consolidated Restricted Subsidiary shall have made a Material Disposition, EBITDA for such Rolling Period or "Application Distribution Period", as applicable, shall be calculated on a Pro Forma Basis, and (ii) if during such Rolling Period or "Application Distribution Period", as applicable, the Issuer or any Consolidated Restricted Subsidiary shall have made a Material Acquisition, EBITDA for such Rolling Period or "Application Distribution Period", as applicable, shall be calculated on a Pro Forma Basis.

Notwithstanding anything to the contrary, (x) for purposes of calculating EBITDA for any Rolling Period or "Application Distribution Period", as applicable, that includes any of the fiscal quarters or calendar months, as applicable, ending April 30, 2025, May 31, 2025, June 30, 2025, July 31, 2025, August 31, 2025, September 30, 2025, October 31, 2025, November 30, 2025, December 31, 2025, January 31, 2026 or<u>,</u> February 28, 2026, <u>March 31, 2026, April 30, 2026 or May 31, 2026,</u> EBITDA for such fiscal quarters or calendar months, as applicable, shall be (I) for April 30<u>July 31</u>, 2025, EBITDA for the calendar month ending April 30<u>July 31</u>, 2025 multiplied by twelve (12); (II) for May<u>August</u> 31, 2025, EBITDA for the two consecutive calendar months ending May<u>August</u> 31, 2025 multiplied by six (6); (III) for June<u>September</u> 30, 2025, EBITDA for the three consecutive calendar months ending June<u>September</u> 30, 2025 multiplied by four (4); (IV) for July<u>October</u> 31, 2025, EBITDA for the four consecutive calendar months ending July<u>October</u> 31, 2025 multiplied by three (3); (V) for August 31<u>November 30</u>, 2025, EBITDA for the five consecutive calendar months ending August 31<u>November 30</u>, 2025 multiplied by twelve-fifths (12/5); (VI) for S<u>D</u>ept<u>c</u> ember 30<u>31</u> , 2025, EBITDA for the six consecutive calendar months ending S<u>D</u>ept<u>c</u>ember 30<u>31</u> , 2025 multiplied by two (2); (VII) for October<u>January</u> 31, 2025<u>2026</u>, EBITDA for the seven consecutive calendar months ending October<u>January</u> 31, 2025<u>2026</u> multiplied by twelve-sevenths (12/7); (VIII) for November 30, 2025<u>February 28, 2026</u>, EBITDA for the eight consecutive calendar months ending November 30, 2025<u>February 28, 2026</u> multiplied by three-halves (3/2); (IX) for December<u>March</u> 31, 2025<u>2026</u>, EBITDA for the nine consecutive calendar months ending December<u>March</u> 31, 2025<u>2026</u> multiplied by four-thirds (4/3); (X) for January 31<u>April 30</u>, 2026, EBITDA for the ten consecutive calendar months ending January 31<u>April 30</u>, 2026 multiplied by six-fifths (6/5) and (XI) for February 28<u>May 31</u>, 2026,

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EBITDA for the eleven consecutive calendar months ending February 28<u>May 31</u>, 2026 multiplied by twelve-elevenths (12/11) and (y) <u>(i)</u> for purposes of the First Amendment LOS/CF Certificate EBITDA only, EBITDA for the trailing twelve months shall be deemed to be $42,000,000 <u>and (ii) for purposes of the Second Amendment LOS/CF Certificate EBITDA only, EBITDA for the trailing twelve months shall be deemed to be $66,000,000</u>.

"**EEA Financial Institution**" means (a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country that is a parent of an institution described in <u>clause (a)</u> of this definition, or (c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in <u>clauses (a)</u> or <u>(b)</u> of this definition and is subject to consolidated supervision with its parent.

"**EEA Member Country**" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"**EEA Resolution Authority**" means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"**EIG**" means EIG Credit Management Company, LLC.

"**Eligible Assignee**" means (a) any Holder, (b) any Subsidiary, Related Fund or Affiliate of a Holder and (c) other than a natural Person, any Note Party or any of their respective Affiliates or any Holder or any Subsidiary, Related Fund or Affiliate thereof, any Institutional Investor or other Person, in each such case for such Institutional Investor or other Person in this <u>clause (c)</u> with the consent of the Issuer, such consent not to be unreasonably withheld, conditioned or delayed; <u>provided</u> that, (i) if an Event of Default has occurred and is continuing, the consent of the Issuer will not be required and (ii) the Issuer shall be deemed to have consented to any such Person unless it shall object thereto by written notice to the Agent within ten (10) Business Days after having received notice thereof; <u>provided further</u> that in any event "Eligible Assignee" shall not include any Affiliated Investor.

"**Environmental Claim**" means any notice, notice of noncompliance, violation or potential responsibility, legally binding directive, claim, action, suit, arbitration, complaint, proceeding, demand, abatement order or other order by any Governmental Authority or any other Person, arising (a) pursuant to or in connection with any actual or alleged violation of any Environmental Law; (b) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or (c) in connection with any actual or alleged damage, injury, threat or harm to human health or safety (to the extent relating to exposure to Hazardous Materials), natural resources or the environment.

"**Environmental Laws**" means any and all Governmental Requirements pertaining in any way to the environment, the preservation or reclamation of natural resources (including flora and fauna), induced seismicity, or the management, Release or threatened Release of any Hazardous Materials, including, to the extent applicable, the Oil Pollution Act of 1990, as amended, the Outer Continental Shelf Lands Act, the Clean Air Act, as amended, the Comprehensive Environmental, Response, Compensation, and Liability Act of 1980 ("**CERCLA**"), as amended, the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act of 1970, as amended, the Resource Conservation and Recovery Act of 1976 ("**RCRA**"), as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Endangered Species Act, as amended, the Migratory Bird Treaty Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, and the Hazardous Materials Transportation Act, as amended.

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"**Environmental Liability**" means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), directly or indirectly resulting from or based upon (a) any violation of any applicable Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) any exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement to the extent liability is assumed or imposed with respect to any of the foregoing.

"**Environmental Permit**" means any permit, registration, license, notice, approval, consent, exemption, variance, or other authorization required under or issued pursuant to applicable Environmental Laws.

"**Equity Interests**" means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest.

"**ERISA**" means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute.

"**ERISA Affiliate**" means each trade or business (whether or not incorporated) which together with the Issuer or a Restricted Subsidiary would be deemed to be a "single employer" within the meaning of Section 4001(b)(1) of ERISA or Sections 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, under Sections 414(m) or (o) of the Code.

"**ERISA Event**" means (a) the occurrence of a "Reportable Event" described in Section 4043 of ERISA with respect to a Plan subject to Title IV of ERISA (other than a Multiemployer Plan) other than a Reportable Event as to which the provision of thirty (30) days' notice to the PBGC is expressly waived under applicable regulations, (b) the withdrawal of the Issuer, a Restricted Subsidiary or any ERISA Affiliate from a Plan subject to Section 4063 of ERISA during a plan year in which it was a "substantial employer" as defined in Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA, (c) the filing of a notice of intent to terminate a Plan subject to Title IV of ERISA (other than a Multiemployer Plan) or the treatment of a Plan amendment as a termination under Section 4041 of ERISA, (d) the institution of proceedings to terminate a Plan by the PBGC, (e) receipt of a notice of withdrawal liability pursuant to Section 4202 of ERISA, or (f) the occurrence of any other event or condition which would reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan.

"**ESG Survey**" as defined in <u>Section 6.01(q)</u>.

"**EU Bail-In Legislation Schedule**" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"**Event of Default**" as defined in <u>Section 9.01</u>.

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"**Excepted Liens**" means (a) Liens for Taxes, assessments or other governmental charges or levies which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (b) Liens in connection with workers' compensation, unemployment insurance or other social security, old age pension or public liability obligations, which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (c) statutory landlord's liens, operators', vendors', carriers', warehousemen's, repairmen's, mechanics', suppliers', workers', materialmen's, construction or other like Liens, in each case, arising by operation of law in the ordinary course of business each of which is in respect of obligations that are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (d) contractual Liens which arise in the ordinary course of business under operating agreements, joint venture agreements, oil and gas partnership agreements, oil and gas leases, farm-out agreements, farm-in agreements, division orders, contracts for the sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual interest agreements, overriding royalty agreements, marketing agreements, processing agreements, development agreements, gas balancing or deferred production agreements, injection, repressuring and recycling agreements, which are limited to the assets that are subject to the relevant agreement, and seismic or other geophysical permits or agreements, and other agreements, in each case which are usual and customary in the Oil and Gas Business and are for claims which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; <u>provided</u> that any such Lien referred to in this clause does not materially impair the use of any material Property covered by such Lien for the purposes for which such Property is held by the Issuer or any Restricted Subsidiary or materially impair the value of any material Property subject thereto; (e) Liens arising solely by virtue of any statutory or common law provision relating to banker's liens, rights of set-off or similar rights and remedies and burdening only deposit accounts or other funds maintained with a creditor depository institution; <u>provided</u> that no such deposit account is a dedicated cash collateral account or is subject to restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Board and no such deposit account is intended by the Note Parties or any of their Restricted Subsidiaries to provide collateral to the depository institution; (f) easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations in any Property of the Issuer or any Restricted Subsidiary for the purpose of roads, pipelines, transmission lines, transportation lines, distribution lines for the removal of gas, minerals or oil and other like purposes, or for the joint or common use of real estate, rights of way, facilities and equipment, that do not secure any Debt or monetary obligations and which in the aggregate do not materially impair the use of such Property for the purposes of which such Property is held by the Issuer or any Restricted Subsidiary or materially impair the value of such Property subject thereto; (g) Liens on cash or securities pledged to secure performance of tenders, surety and appeal bonds, government contracts, performance and return of money bonds, bids, trade contracts, leases, statutory obligations, regulatory obligations and other obligations of a like nature incurred in the ordinary course of business; (h) judgment and attachment Liens not giving rise to an Event of Default; <u>provided</u> that any appropriate legal proceedings which may have been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated shall not have expired and no action to enforce such Lien has been commenced; (i) encumbrances consisting of deed restrictions, zoning restrictions, and other similar restrictions on the use of Oil and Gas Properties, none of which, in the aggregate, materially impairs the use of such property by the Issuer or any Restricted Subsidiary in the operation of its business or materially detracts from the value of such properties; (j) purported Liens evidenced by the filing of UCC financing statements solely as a precautionary measure in connection with operating leases of personal property; <u>provided</u>, <u>further</u>, that no intention to subordinate the first priority status afforded by the Liens granted in favor of the Collateral Agent (for the benefit of the Secured Parties, as provided in the Collateral Documents) is to be hereby implied or expressed by the permitted existence of such Excepted Liens. The parties acknowledge and agree that the term "Excepted Liens" shall not include any Lien securing Debt of the type described in clause (a) of the definition of Debt.

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"**Exchange Act**" means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated thereunder.

"**Excluded Accounts**" means (a) each account for which all of the deposits consist of amounts utilized to fund payroll, employee benefit or tax obligations of the Note Parties and their Subsidiaries, (b) escrow, pre-funding, trust and fiduciary accounts, in each case, solely holding amounts held for the benefit of third parties in the ordinary course of business (including, without limitation, escrow accounts in respect of Investments permitted under this Agreement, including under <u>Section 7.05</u>), (c) "zero balance" accounts, and (d) other accounts; <u>provided</u> that the aggregate daily maximum balance for all such bank accounts excluded pursuant to this <u>clause (d)</u> on any day shall not exceed $500,000.

"**Excluded Property**" has the meaning assigned to such term in the Pledge and Security Agreement.

"**Excluded Subsidiaries**" means (a) any Immaterial Subsidiary and (b) each Unrestricted Subsidiary; <u>provided</u> that no Subsidiary that owns or holds mineral interests, royalty interests or Proved Reserves shall be an "Excluded Subsidiary".

"**Excluded Taxes**" as defined in <u>Section 2.14(b)</u>.

"**Existing Credit Facility**" means that certain credit facility, established pursuant to that certain Credit Agreement (as amended, restated, amended and restated, supplemented and as otherwise modified from time to time), dated as of August 3, 2023, by and among, *inter alios*, the Issuer, as borrower, the guarantors from time to time party thereto and Citadel Energy Marketing LLC.

"**Exposure**" means, with respect to any Holder, as of any date of determination, the outstanding principal amount of the Notes held by such Holder.

"**Fair Market Value**" means, with respect to any asset or group of assets on any date of determination, the value of the consideration obtainable in a disposition of such asset or group of assets at such date of determination assuming a disposition by a willing seller to a willing purchaser dealing at arm's length and arranged in an orderly manner over a reasonable period of time having regard to the nature and characteristics of such asset or group of assets, as reasonably determined in good faith by the Issuer; <u>provided</u>, <u>however</u>, that to the extent the Requisite Holders disagree with such Fair Market Value as determined in good faith by the Issuer, the Requisite Holders and the Issuer shall determine Fair Market Value pursuant to a dispute resolution process substantially similar to that provided for in <u>Section 1.05</u>.

"**FATCA**" means Sections 1471 through 1474 of the Internal Revenue Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities entered into in connection with the implementation of the foregoing.

"**FCA**" means the U.K. Financial Conduct Authority.

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"**FCPA**" means the Foreign Corrupt Practices Act of 1977, as amended.

"**FDIC**" means the Federal Deposit Insurance Corporation.

"**Federal Funds Effective Rate**" means for any day, the rate calculated by the NYFRB based on such day's federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the federal funds effective rate; <u>provided</u> that, if the foregoing rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

"**Fee Letter**" means (a) that certain Fee Letter dated as of the Closing Date between the Issuer, EIG and the other parties named therein and, (b) that certain Fee Letter dated as of the First Amendment Effective Date between the Issuer, EIG and the other parties named therein <u>and (c) that certain Fee Letter dated as of May 8, 2025 between the Issuer and EIG</u>.

"**Finance Leases**" means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, recorded as finance leases on the balance sheet of the Person liable (whether contingent or otherwise) for the payment of rent thereunder; <u>provided</u> that for all purposes hereunder the amount of obligations under any Finance Lease shall be the amount thereof accounted for as a liability on the balance sheet of such Person in accordance with GAAP; <u>provided</u>, <u>further</u>, that for purposes of calculations made pursuant to the terms of this Agreement, GAAP will be deemed to treat leases in a manner consistent with its treatment under GAAP applicable to private companies for fiscal years beginning prior to December 15, 2019, notwithstanding any modifications or interpretative changes thereto that may occur. For the avoidance of doubt, (i) any lease that would be characterized as an operating lease in accordance with GAAP applicable to private companies for fiscal years beginning prior to December 15, 2019 (whether or not such operating lease was in effect on such date) shall continue to be accounted for as an operating lease (and not as a Finance Lease) for purposes of this Agreement regardless of any change in GAAP applicable to private companies for fiscal years beginning after December 15, 2019 that would otherwise require such lease to be re-characterized (on a prospective or retroactive basis or otherwise) as a Finance Lease and (ii) GAAP will be deemed to not take into account ASU 2016-02.

"**Financial Officer**" means, for any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person or authorized signatory of such Person that has similar responsibilities; <u>provided</u> that, if such Person is a limited partnership or limited liability company, any reference to a Financial Officer of such Person shall be a reference to a Financial Officer of such Person or of the general partner or sole member, as applicable, of such Person. Unless otherwise specified, all references herein to a Financial Officer means a Financial Officer of the Issuer.

"**First Amendment**" means that certain First Amendment to Note Purchase Agreement, dated as of March 31, 2025, by and among the Issuer, the other Note Parties, the Agent, the Holders and the First Amendment Incremental Holders.

"**First Amendment Additional Note Holders**" means each person listed on the signature page to the First Amendment as a First Amendment Additional Note Holder.

"**First Amendment Additional Notes**" means the Notes purchased on the First Amendment Effective Date pursuant to <u>Section 2.01(a)(ii)</u>, as evidenced by a promissory note in the form of <u>Exhibit B-1</u>.

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"**First Amendment Effective Date**" means March 31, 2025.

"**First Amendment Transaction Expenses**" means any fees or expenses incurred or paid by the Issuer or any of its Restricted Subsidiaries in connection with the First Amendment and the transactions contemplated thereby.

"**First Offer**" as defined in <u>Section 2.09(g)</u>.

"**Fiscal Quarter**" means a Fiscal Quarter of any Fiscal Year.

"**Fiscal Year**" means the Fiscal Year of the Note Parties ending on December 31 of each calendar year.

"**Flood Insurance Regulations**" means (a) the National Flood Insurance Act of 1968 as now or hereafter in effect or any successor statute thereto, (b) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statute thereto, (c) the National Flood Insurance Reform Act of 1994 (amending 42 USC § 4001, et seq.), as the same may be amended or recodified from time to time, (d) the Flood Insurance Reform Act of 2004 and (e) the Biggert-Waters Flood Insurance Reform Act of 2012, in each case as now or hereafter in effect or any successor statute thereto and including any regulations promulgated thereunder.

"**Flow of Funds**" means the flow of funds instruction letter delivered to the Agent at least one (1) Business Day prior to the Closing Date, directing the Agent to make certain specified disbursements on the Closing Date.

"**Foreign Subsidiary**" means any Restricted Subsidiary that is not a Domestic Subsidiary.

"**Free Cash Flow (Back)**" means as of any date of determination, for a calendar month set forth under the heading "Distribution Month" in <u>Appendix</u> C, (a) Adjusted Cash Flow From Operating Activities for the corresponding "Applicable CF Period" in <u>Appendix C plus</u> (b) the amount of net cash proceeds received by the Issuer from the issuance of (i) common equity or (ii) Series B Preferred Shares, in either case issued by the Issuer during such "Applicable Distribution Period", <u>minus</u> (c) any Specified Issuance Proceeds received during such "Applicable Distribution Period" <u>minus</u> (d) to the extent included in Cash Flow From Operating Activities, voluntary cash repayments of the Notes pursuant to <u>Section 2.08</u> during such "Applicable Distribution Period".

"**Free Cash Flow (Forward)**" means, as of any date of determination for a calendar month set forth under the heading "Distribution Month" in <u>Appendix</u> C, (a)(i)(A) Projected Cash Flow From Operating Activities for the corresponding "Applicable CF Period" in <u>Appendix C plus</u> (B) the Prior Period Adjustment from the immediately preceding Applicable CF Period <u>multiplied</u> by (ii) the "Quarterly Factor" in Appendix C for such Distribution Month <u>plus</u> (b) the amount of net cash proceeds received by the Issuer from the issuance of (i) common equity or (ii) Series B Preferred Shares, in either case issued by the Issuer during such "Applicable Distribution Period", <u>minus</u> (c) any Specified Issuance Proceeds received during such "Applicable Distribution Period" <u>minus</u> (d) to the extent included in Cash Flow From Operating Activities, voluntary cash repayments of the Notes pursuant to <u>Section 2.08</u> during such "Applicable Distribution Period".

"**Free Cash Flow Utilization**" has the meaning set forth in the definition of "Distributable Free Cash Flow".

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"**GAAP**" means, subject to the limitations on the application thereof set forth in <u>Section 1.03</u>, United States generally accepted accounting principles in effect as of the date of determination thereof.

"**General and Administrative Costs**" means the general and administrative costs of the Issuer, the other Note Parties and their Restricted Subsidiaries, including utilities, communications, consulting fees, salary, rent, supplies, travel, insurance, accounting, legal, engineering and broker related fees required to manage its affairs and, for the avoidance of doubt, (a) any costs and expenses of an Affiliate of the Issuer, the other Note Parties and their Restricted Subsidiaries that are reimbursed by the Issuer, the other Note Parties and their Restricted Subsidiaries and which are fairly allocable to the Issuer, the other Note Parties and their Restricted Subsidiaries and (b) any management fees, advisory fees or similar fees to any holder of its Equity Interests or any Affiliates thereof (other than a Note Party). Notwithstanding the foregoing, for purposes of this Agreement, AUM Fees and Dividend Incentive Fees shall constitute Restricted Payments and not General and Administrative Costs.

"**Governing Body**" means the Board of Directors or other body having the power to direct or cause the direction of the management and policies of a Person that is a corporation, partnership, trust or limited liability company or other applicable entity.

"**Governmental Authority**" means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

"**Governmental Requirement**" means any law, statute, code, ordinance, order, determination, rule, regulation, judgment, decree, injunction, franchise, permit, certificate, license, rules of common law, authorization or other directive or requirement, whether now or hereinafter in effect, of any Governmental Authority.

"**guarantee**" means, with respect to any Person, any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Debt or other obligation of any other Person in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, that is (a) an obligation of such Person the primary purpose or intent of which is to provide assurance to an obligee that the obligation of the obligor thereof will be paid or discharged, or any agreement relating thereto will be complied with, or the holders thereof will be protected (in whole or in part) against loss in respect thereof; or (b) a liability of such Person for an obligation of another through any agreement (contingent or otherwise) (i) to purchase, repurchase or otherwise acquire such obligation or any security therefor, or to provide funds for the payment or discharge of such obligation (whether in the form of loans, advances, stock purchases, capital contributions or otherwise) or (ii) to maintain the solvency or any balance sheet item, level of income or financial condition of another if, in the case of any agreement described under <u>subclauses (i)</u> or <u>(ii)</u> of this <u>clause (b)</u>, the primary purpose or intent thereof is as described in <u>clause (a)</u> above. "**Guarantee**", unless the context otherwise requires, means the guarantee of each Guarantor set forth in the Guaranty Agreement.

"**Guarantors**" means (a) WhiteHawk Income Marcellus LLC, a Delaware limited liability company, (b) WhiteHawk Income Haynesville LLC, a Delaware limited liability company, (c) those Persons identified on <u>Schedule 1.02(a)</u> hereto and (d) each other Material Subsidiary and other Subsidiary of a Note Party that guarantees the Obligations pursuant to the Guaranty Agreement or as otherwise required by <u>Section 6.13(b)</u>.

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"**Guaranty Agreement**" means an agreement executed by the Guarantors in substantially the form of <u>Exhibit F</u>, absolutely and unconditionally guarantying, on a joint and several basis, payment of the Obligations, as the same may be amended, restated, amended and restated, modified or supplemented from time to time.

"**Hazardous Material**" means any substance regulated or as to which liability might arise under any applicable Environmental Law including: (a) any chemical, compound, material, product, byproduct, substance or waste defined as or included in the definition or meaning of "hazardous substance," "hazardous material," "hazardous waste," "solid waste," "toxic waste," "extremely hazardous substance," "toxic substance," "contaminant," "pollutant" or words of similar meaning or import found in any applicable Environmental Law; (b) Hydrocarbons, petroleum products, petroleum substances, natural gas, oil, oil and gas waste, crude oil, and any components, factions or derivatives thereof; and (c) radioactive materials, explosives, brine, asbestos or asbestos containing materials, polychlorinated biphenyls, per- or polyfluoroalkyl substances, radon, or infectious or medical wastes.

"**Hazardous Materials Activity**" means any past or current activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, Release, threatened Release, discharge, placement, generation, transportation, processing, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.

"**Hedge Intercreditor Agreement**" means that certain Hedge Intercreditor Agreement, dated as of the Closing Date, by and among the Issuer, each other Note Party, Citadel Energy Marketing LLC as Initial Swap Counterparty (as defined therein) and the Collateral Agent, as such agreement may be amended, restated, amended and restated, supplemented or otherwise modified from time to time; <u>provided</u> that the Hedge Intercreditor Agreement shall be in form and substance satisfactory to the Requisite Holders and otherwise on terms customary for financing arrangements of this type, it being understood that the form and terms of the Hedge Intercreditor Agreement on the Closing Date satisfy this proviso.

"**Highest Lawful Rate**" means the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under the laws applicable to any Holder which are presently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than applicable laws now allow.

"**Holder-Related Party**" as defined in <u>Section 11.03(b)</u>.

"**Holders**" means (a) each Person listed on the signature pages to the original Agreement dated as of September 17, 2024 as a Holder, (b) each Person listed on the signature pages to the First Amendment as a First Amendment Additional Note Holder, and (c) <u>each Person listed on the signature pages to the Second Amendment as a Second Amendment Incremental Note Holder and (d)</u> any other Person that becomes a party hereto as a Holder pursuant to an Assignment Agreement, other than any such Person that ceases to be a party hereto as a Holder pursuant to an Assignment Agreement.

"**Hydrocarbon Interests**" means all rights, titles, interests and estates now or hereafter acquired by the Issuer or any Guarantor in and to oil and gas leases, oil, gas and mineral leases, and/or other liquid or gaseous hydrocarbon leases, mineral fee interests, mineral interests, mineral royalty interests, overriding royalty and royalty interests, net profit interests and production payment interests, and other interests and estates including any reserved or residual interests of whatever nature, in each case, including those that are described on the exhibit(s) attached to any Mortgage.

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"**Hydrocarbons**" means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all constituents, elements or compounds thereof and all products refined or separated therefrom and all other minerals which may be produced and saved from or attributable to the Oil and Gas Properties, now or hereafter acquired by the Issuer or any Guarantor, including all oil in tanks, and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests or other properties constituting Oil and Gas Properties to the extent allocated to the royalty interest or overriding royalty interests of the Issuer or any Guarantor.

"**Immaterial Subsidiary**" means any Restricted Subsidiary that is not a Material Subsidiary.

"**Improved Mortgaged Property**" means all improved real property acquired by the Issuer or any Guarantor that contains Buildings or Manufactured (Mobile) Homes (as those terms are defined in applicable Flood Insurance Regulations) constituting Collateral, if any.

"**Incremental Commitments**" means the commitments of the Holders to purchase Incremental Notes contemplated by <u>Section 2.16</u>.

"**Incremental Indebtedness**" has the meaning set forth in <u>Section 2.16(b)(i)</u>.

"**Incremental Note**" means any Note purchased by any Holder pursuant to the Incremental Commitments, as evidenced by a promissory note in the form of Exhibit B-2<u>, including each Second Amendment Incremental Note</u>.

"**Incremental Notes Notice**" has the meaning set forth in <u>Section 2.16(a)(i)</u>.

"**Incremental Notes Offer**" has the meaning set forth in <u>Section 2.16(a)(ii)</u>.

"**Incremental Target Amount**" has the meaning set forth in <u>Section 2.16(a)(i)</u>.

"**Indemnified Liabilities**" means, collectively, any and all fees, liabilities, obligations, losses, damages, penalties, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable fees, disbursements and settlement costs and other charges of counsel for Indemnitees) and of consultants in connection with any proceeding (whether investigative, administrative, judicial or otherwise) commenced or threatened by any Person, whether or not any such Indemnitee shall be designated as a party or a potential party thereto, and any reasonable fees or expenses incurred by Indemnitees in administering and enforcing this Agreement and the other Note Documents and enforcing the indemnity under <u>Section 11.03(a)</u>, whether direct, indirect or consequential and whether based on any federal, state or foreign laws, statutes, rules or regulations (including securities and commercial laws, statutes, rules or regulations and Environmental Laws), on common law or equitable cause or on contract or otherwise, that may be imposed on, incurred by, or asserted against any such Indemnitee, in any manner relating to or arising out of (a) this Agreement or the other Note Documents, the Transactions or any other transactions contemplated hereby or thereby (including the Holders' agreement to make Note Purchases or the use or intended use of the proceeds thereof, or any enforcement of any of the Note Documents (including any sale of, collection from, or other realization upon any of the Collateral or the enforcement of the Guarantee)); or (b) any Environmental Claim relating to or against, or any past or present activity (including any Hazardous Materials Activity), operation, land ownership, or practice of, the Issuer or any of its Subsidiaries or on any of their respective properties. Notwithstanding the foregoing, Indemnified Liabilities shall not include Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

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"**Indemnified Taxes**" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any Obligation of any Note Party under any Note Document and (b) to the extent not otherwise described in (a), Other Taxes.

"**Indemnitee**" as defined in <u>Section 11.03(a)</u>.

"**Indemnitee Agent Party**" means each Agent, its Affiliates and its officers, partners, directors, trustees, employees, representatives and agents of the Agents.

"**Initial Financial Statements**" means the financial statements described in <u>Section 3.01(u)</u>.

"**Initial Reserve Report**" means that certain reserve report prepared by Schaper Energy Consulting LLC in respect of Oil and Gas Properties of the Issuer and its Restricted Subsidiaries with an "as of" date of March 14, 2024.

"**Institutional Investor**" means (a) any Holder of a Note on the Closing Date, (b) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, (c) any Related Fund or Affiliate of any Holder of any Note and (d) any other Person that is a Qualified Institutional Buyer to the extent such Person would not reasonably be considered a competitor of the Issuer.

"**Interest**" as defined in <u>Section 2.06(a)</u>.

"**Interest Payment Date**" means (a) the last day of each Fiscal Quarter, commencing with the Fiscal Quarter ended December 31, 2024, and (b) the Maturity Date.

"**Interest Period**" means (a) from and including the Closing Date to the next Interest Payment Date, and (b) thereafter, from and including each Interest Payment Date to but excluding the next Interest Payment Date.

"**Internal Revenue Code**" means the Internal Revenue Code of 1986, as amended to the date hereof and from time to time hereafter, and any successor statute (except as otherwise provided herein).

"**Investment**" means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of Equity Interests of any other Person or any agreement to make any such acquisition (including, without limitation, any "short sale" or any sale of any securities at a time when such securities are not owned by the Person entering into such short sale); (b) the making of any deposit with, or advance, loan or capital contribution to, guarantee or assumption of Debt of, purchase or other acquisition of any other Debt or equity participation or interest in, or other extension of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such Property to such Person, but excluding any such advance, loan or extension of credit having a term not exceeding one hundred twenty (120) days representing the purchase price of inventory or supplies sold by such Person in the ordinary course of business) or (c) the purchase or acquisition (in one or a series of transactions) of Property (other than Equity Interests) of another Person that constitutes a business unit, line of business or a discrete set of Properties. For purposes of covenant compliance, the amount of any Investment at any time shall be the amount actually invested (measured at the time made), without adjustment for subsequent increases or decreases in the value of such Investment.

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"**Investment Agreement**" means that certain Investment Agreement by and among WhiteHawk Income Corporation and the Investors listed in Exhibit A to such agreement, dated as of March 28, 2025.

"**Investment Management Agreement**" means that certain Investment Management Agreement, dated as of March 1, 2022, between, the Issuer and WhiteHawk Management, LLC

"**IRS**" as defined in <u>Section 2.14(e)</u>.

"**Issuer**" as defined in the preamble hereto.

"**Lien**" means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to (a) the lien or security interest arising from a deed of trust, mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes or (b) royalty interest payments and the like payable out of Oil and Gas Properties.

"**Liquidity**" means, at any time, Unrestricted Cash at such time.

"**LOS/CF Certificate**" means a certificate of a Responsible Officer pursuant to <u>Section 6.01(o)</u>.

"**Make-Whole Amount**" means, with respect to the Called Principal of any Note, an amount equal to the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note, <u>provided</u> that the Make-Whole Amount shall in no event be less than zero.

"**Make-Whole Expiry Date**" as defined in <u>Section 2.11(g)</u>.

"**Material Acquisition**" means any acquisition of Property or series of related acquisitions of Property that involves the payment of consideration by the Note Parties and their Consolidated Restricted Subsidiaries in excess of $2,000,000.

"**Material Adverse Effect**" means a material adverse change in, or material adverse effect on (a) the business, operations, Property or financial condition of the Note Parties and their Restricted Subsidiaries taken as a whole, (b) the ability of the Issuer, any Restricted Subsidiary or any Guarantor to perform any of its material obligations under any Note Document, (c) the validity or enforceability of any Note Document, or (d) the rights and remedies of or benefits available to the Agent or any Holder under any Note Document.

"**Material Contracts**" means (a) the contracts set forth on <u>Schedule 1.02(b)</u> and (b) any other contract and agreement of any Note Party or its Subsidiaries resulting (or projected to result) in such Person being reasonably expected to receive revenue or other consideration or incur liabilities in excess of $2,000,000 during any Fiscal Year.

"**Material Debt**" means Debt (other than the Notes), or obligations in respect of one or more Swap Agreements, of any one or more of the Note Parties and their Restricted Subsidiaries in an aggregate principal amount exceeding $2,000,000. For purposes of determining Material Debt, the "principal amount" of the obligations of the Issuer or any Restricted Subsidiary in respect of any Swap Agreement at any time shall be the Swap Termination Value of such Swap Agreement.

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"**Material Disposition**" means any disposition of Property or series of related dispositions of Property that involves the payment of consideration to the Note Parties and their Consolidated Restricted Subsidiaries in excess of $2,000,000.

"**Material Environmental and Social Incident**" means (a) any incident or accident formally elevated to the Board of Directors (or other similar Governing Body) of the Issuer, (b) an accident relating to the Note Parties, their Subsidiaries, or their respective properties resulting in death or serious or multiple injury or (c) a significant and material community or worker related grievance or protest directed at the Note Parties, their Subsidiaries, or their respective properties, in each of the foregoing cases, which has or could reasonably be expected to have (in the good faith determination of the Issuer) a material and adverse impact on health, safety or the environment (including, in each case, as the result of the Release of any Hazardous Material).

"**Material Subsidiary**" means, as of any date, (a) any Subsidiary that, together with its Restricted Subsidiaries, as of the last day of the Fiscal Quarter of the Issuer most recently ended, had net revenues or total assets for such quarter in excess of 0.50% of the consolidated net revenues or total assets, as applicable, of the Issuer and its Restricted Subsidiaries for such quarter and (b) any Subsidiary that owns any Oil and Gas Properties evaluated in the Reserve Report most recently delivered to pursuant to <u>Section 6.11</u>, <u>provided</u> that in the event that the Immaterial Subsidiaries, taken together, had as of the last day of the Fiscal Quarter of the Issuer most recently ended net revenues or total assets in excess of 1.00% of the consolidated revenues or total assets, as applicable, of the Issuer and its Restricted Subsidiaries for such quarter, the Issuer shall designate one or more Immaterial Subsidiaries to be a Material Subsidiary as may be necessary such that the foregoing one percent 1.00% limit shall not be exceeded, and any such Subsidiary shall thereafter be deemed to be a Material Subsidiary hereunder, and the Issuer shall cause such designated Material Subsidiaries to comply with <u>Section 6.13(b)</u>.

"**Maturity Date**" means the earlier of (a) March 31<u>June 23</u>, 2030 and (b) the date that all Notes shall become due and payable in full hereunder, whether by acceleration or otherwise or, in either case, if such day is not a Business Day, the immediately preceding Business Day.

"**Minimum Liquidity Amount**" means (a) $4,000,000 <u>plus</u> (b) as of any date of determination (i) Interest accrued through the date of determination <u>plus</u> (ii) any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments <u>plus</u> (iii) losses (or <u>minus</u> gains) from Swap Agreements which, as of the date of determination, have settled but for which cash proceeds have not been received by the Issuer or its Restricted Subsidiaries.

"**Minimum Return**" as defined in the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**MIRE Event**" means, if there are any Mortgaged Properties at such time, any increase, extension or renewal of any of the Commitments or Notes (including any other incremental credit facilities hereunder, but excluding (a) any continuation or conversion of Notes or (b) the issuance of any Notes).

"**Monthly Common Equity Dividends**" means dividends made by the Issuer to the holders of its Equity Interests on the account of its common Equity Interests in accordance with the Issuer's Organizational Documents in effect as of the <u>Second Amendment Effective</u> d<u>D</u> ate hereof, in an amount not to exceed $0.1562<u>0.1875</u> per Equity Interest unit (provided that to the extent (a) the outstanding common Equity Interest of the Issuer shall have been increased, decreased, changed into or exchanged

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for a different number of shares or different class, in each case, by reason of any reclassification, recapitalization, stock split, split-up, combination or exchange of shares, (b) a stock dividend or dividend payable in any other Equity Interests securities of the Issuer shall have been declared or (c) any similar event shall have occurred, such $0.1562<u>0.1875</u> per Equity Interest unit limit shall be adjusted in a manner to maintain the same economic effect as contemplated by this Agreement prior to such event).

"**Monthly Preferred Equity Dividends**" means dividends made by the Issuer to the holders of its Equity Interests on the account of its (a) Series B Preferred Shares, payable on a monthly basis at an annualized rate of ten percent (10%), in accordance with Section 5 of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 and (b) Series C Preferred Shares, payable on a monthly basis at an annualized rate of (i) fourteen percent (14%) from and including the Closing (as defined in the Investment Agreement) to December 31, 2026 and (ii) eighteen percent (18%) after December 31, 2026, in accordance with Section 1.4(e) of the Investment Agreement.

"**Moody's**" means Moody's Investors Service, Inc. and any successor thereto that is a nationally recognized rating agency.

"**Mortgage**" means all mortgages, deeds of trust and similar documents, instruments and agreements (including amendments and restatements of existing deeds of trust and similar documents, instruments and agreements) creating, evidencing, perfecting or otherwise establishing the Liens on Mortgaged Property to secure payment of the Obligations or any part thereof in substantially the form of <u>Exhibit L</u> (or otherwise in form and substance reasonably acceptable to the Agent (at the direction of the Requisite Holders)).

"**Mortgaged Property**" means any Property owned by the Issuer or any Guarantor which is subject to the Liens existing and to exist under the terms of the Collateral Documents.

"**Multiemployer Plan**" mean a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

"**Net Asset Sale Proceeds**" means, with respect to any Asset Sale (other than pursuant to <u>Section 7.09(a)</u>, <u>Section 7.09(b)</u>, <u>Section 7.09(e)</u>, <u>Section 7.09(f)</u>, <u>Section 7.09(h)</u>, <u>Section 7.09(i)</u> or <u>Section 7.09(j))</u>, an amount equal to: (a) the sum of cash payments and Cash Equivalents received by the Issuer or any of its Affiliates from such Asset Sale (including any cash or Cash Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received), <u>minus</u> (b) any bona fide costs and expenses (including, without limitation, legal, accounting and investment banking fees, and sales commissions) incurred in connection with such Asset Sale, including income or gains taxes paid or payable as a result of such Asset Sale (after taking into account any available tax credits or deductions and any tax-sharing arrangements) or reserves taken in respect of taxes and (c) a reasonable reserve for any indemnification payments (fixed or contingent) attributable to seller's indemnities and representations and warranties to purchaser in respect of such Asset Sale undertaken by the Issuer or any other Note Party in connection with such Asset Sale; <u>provided</u> that upon release of any such reserve, the amount released shall be considered Net Asset Sale Proceeds.

"**Net Casualty Event Proceeds**" means, with respect to any Casualty Event, an amount equal to: (a) the sum of cash payments and Cash Equivalents received by the Issuer or any of its Affiliates from such Casualty Event <u>minus</u> (b) (i) any bona fide costs and expenses incurred in connection with the adjustment or settlement of any claims of the Issuer or any of its Restricted Subsidiaries in respect thereof and (ii) amounts expended to repair and/or replace property subject to such Casualty Event.

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"**Non-U.S. Holder**" as defined in <u>Section 2.14(e)</u>.

"**Note**" means (a) the notes purchased by the Holders on the Closing Date pursuant to <u>Section 2.01(a)(i)</u>, as may be evidenced by a promissory note in the form of <u>Exhibit B-1</u>, (b) the notes purchased by the First Amendment Additional Note Holders on the First Amendment Effective Date pursuant to <u>Section 2.01(a)(ii)</u>, as may be evidenced by a promissory note in the form of <u>Exhibit B-1</u> and, (c<u>) the notes purchased by the Second Amendment Incremental Note Holders on the Second Amendment Effective Date pursuant to Section 2.01(a)(iii), as may be evidenced by a promissory note in the form of Exhibit B-2 and (d</u>) any Incremental Note purchased by Incremental Holders pursuant to <u>Section 2.16</u> as may be evidenced by a promissory note in the form of <u>Exhibit B-2</u> (in each case, such term shall also include any such notes in substitution therefor pursuant to <u>Section 11.29</u> of this Agreement).

"**Note Document**" means any of this Agreement, the Notes, the Incremental Notes (if any), the A<u>gent Fee Letter, the Fee Letter, the Collateral Documents, the Flow of Funds and all other certificates, documents, instruments or agreements executed and delivered by a Note Party for the benefit of Agents or any Holder in connection herewith or pursuant to any of the foregoing. Any reference in this Agreement or any other Note Document to a Note Document shall include all appendices, exhibits and schedules thereto.</u>

"**Note Party**" means the Issuer and the Guarantors.

"**Note Purchase**" means a purchase by the Holders of Notes pursuant to <u>Section 2.01</u>.

"**Note Purchase Notice**" means a written notice by the Issuer that it intends to issue Notes hereunder, which Note Purchase Notice (a) sets forth the principal amount of Notes to be issued, (b) contains the information required by <u>Section 2.03</u> and (c) is substantially in the form of <u>Exhibit A</u> or such other form reasonably satisfactory to the Requisite Holders.

"**Not for Speculative Purposes**" in the case of Swap Agreements permitted under this Agreement, means the following Swap Agreements: (a) any commodity Swap Agreement intended, at inception of execution, to hedge or manage any of the risks related to existing and or forecasted Hydrocarbon production of the Issuer or its Restricted Subsidiaries (whether or not contracted) and (b) any Swap Agreement intended, at inception of execution, to hedge or manage the interest rate exposure associated with any debt securities, debt facilities or leases (existing or reasonably forecasted) of the Issuer or its Restricted Subsidiaries. It is understood that commodity Agreements that, taken as a whole, "hedge" the same volumes of commodity risk, including those under which one or more such Swap Agreements partially offset one or more other such Swap Agreements, shall not be aggregated together when calculating the foregoing limitations on notional volumes and shall be deemed, both individually and in the aggregate, not to be speculative.

"**NYFRB**" means the Federal Reserve Bank of New York.

"**NYFRB Rate**" means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); <u>provided</u> that, if none of such rates are published for any day that is a Business Day, the term "NYFRB Rate" means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received by the Agent from a federal funds broker of recognized standing selected by the Requisite Holders; <u>provided</u>, <u>further</u>, that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

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"**NYMEX Pricing**" means, as of any date of determination with respect to any month, (a) for crude oil, the closing settlement price for the Light, Sweet Crude Oil futures contract for such month and (b) for natural gas, the closing settlement price for the Henry Hub Natural Gas futures contract for such month, in each case as published by CME Group / NYMEX on its website currently located at www.cmegroup.com, or any successor thereto (as such price may be corrected or revised from time to time by CME Group / NYMEX in accordance with its rules and regulations).

"**Obligations**" means (a) all liabilities and obligations of every nature of each Note Party from time to time owed to the Agents (including any former Agents), the Holders, any Indemnitee or any of them, in each case, under any Note Document, in each case, to which it is a party, whether for principal, interest (including, without limitation, interest accruing at any post-default rate and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), fees (including, without limitation, any Make-Whole Amount or any Prepayment Fee), expenses, penalties, premiums, reimbursements, indemnification or otherwise and whether primary, secondary, direct, indirect, contingent, fixed or otherwise (including obligations of performance) and all renewals, extensions and/or rearrangements of any of the above and (b) all Secured Hedge Obligations of each Note Party.

"**Oil and Gas Business**" means: (a) the business of acquiring, exploring, exploiting, developing, producing, operating and disposing of interests in oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and mineral properties or products produced in association with any of the foregoing; (b) the business of gathering, marketing, distributing, treating, processing, storing, refining, selling and transporting of any production from interests in oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and mineral properties or products produced in association therewith; and the marketing of oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and minerals obtained from unrelated Persons; and (c) any business or activity relating to, arising from, or necessary, appropriate, incidental or ancillary to the activities described in the foregoing <u>clauses (a)</u> and <u>(b)</u> of this definition.

"**Oil and Gas Properties**" means: (a) the Hydrocarbon Interests; (b) all of the Issuer's or any Guarantor's interest in the Properties now or hereafter pooled or unitized with Hydrocarbon Interests; (c) all of the Issuer's or any Guarantor's interest in all presently existing or future unitization agreements, pooling agreements and declarations of pooled or unitized units and the units created thereby (including without limitation all units created under orders, regulations and rules of any Governmental Authority) which may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements, including production sharing contracts and agreements, which relate to any of the Hydrocarbon Interests or the production, sale, purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests, to the extent the Issuer or any Guarantor is a party to any such agreement or contract; (e) all Hydrocarbons in and under and which may be produced and saved or attributable to the Hydrocarbon Interests; (f) all tenements, hereditaments, appurtenances and Properties in any manner appertaining, belonging, affixed or incidental to the interest of the Issuer or any Guarantor in the Hydrocarbon Interests and (g) all properties, rights, titles, interests and estates described or referred to above, which are now owned or which are hereafter acquired by the Issuer or any Guarantor, including, without limitation, any and all Property, real or personal, immoveable or moveable, now owned or hereinafter acquired <u>,</u> including without limitation, rights-of-way, easements, servitudes, licenses and other surface and subsurface rights, together with all additions, substitutions, replacements, accessions and attachments to any and all of the foregoing.

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"**Organizational Documents**" means (a) with respect to any corporation, its certificate or articles of incorporation, amalgamation, formation or organization, as amended, and its bylaws, as amended, (b) with respect to any limited partnership, its certificate of limited partnership or certificate of formation, as amended, and its partnership agreement, as amended, (c) with respect to any general partnership, its partnership agreement, as amended, (d) with respect to any limited liability company, its articles of organization or certificate of formation, as amended, and its operating agreement, as amended and (e) in any other case, the functional equivalent of the foregoing. In the event any term or condition of this Agreement or any other Note Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such "Organizational Document" shall only be to a document of a type customarily certified by such governmental official.

"**Other Taxes**" means any and all present or future stamp, recording, filing, court or documentary, intangible, or similar Taxes arising from any payment made hereunder or from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Note Document, except any such Taxes described in <u>clause (b)</u> of the definition of Tax on the Overall Net Income imposed with respect to any assignment (other than an assignment pursuant to a request by the Issuer).

"**Overnight Bank Funding Rate**" means, for any day, the rate comprised of both overnight federal funds and overnight Adjusted Term SOFR Rate borrowings by U.S.-managed banking offices of depository institutions, (as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time) and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate (from and after such date as the NYFRB shall commence to publish such composite rate).

"**Participant**" as defined in <u>Section 11.07(g)</u>.

"**Participant Register**" as defined in <u>Section 11.07(g)</u>.

"**Payment**" as defined in <u>Section 10.04(c)</u>.

"**Payment in Full**" means (a) the irrevocable payment in full in cash of all principal, interest (including interest accruing during the pendency of an insolvency or liquidation proceeding, regardless of whether allowed or allowable in such insolvency or liquidation proceeding), premium and make-whole, if any, on all Notes outstanding under this Agreement, (b) the irrevocable payment in full in cash in respect of all other Obligations or amounts that are outstanding under this Agreement (other than (i) indemnity obligations for which notice of potential claim has not been given and (ii) amounts due under a Secured Hedge Agreement to the extent such Secured Hedge Obligations are cash collateralized or otherwise subject to arrangements satisfactory to the applicable Secured Hedge Provider) and (c) the termination of all Commitments under this Agreement and all Secured Hedge Agreements (other than Secured Hedge Agreements that are cash collateralized or otherwise subject to arrangements satisfactory to the applicable Secured Hedge Provider).

"**Payment Notice**" as defined in <u>Section 10.04(d)</u>.

"**PBGC**" means the Pension Benefit Guaranty Corporation or any successor thereto.

"**Permitted Recipients**" as defined in <u>Section 11.18</u>.

"**Person**" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

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"**Plan**" means any employee pension benefit plan, as defined in Section 3(2) of ERISA, which (a) is sponsored, maintained or contributed to by the Issuer, a Restricted Subsidiary or, solely with respect to a plan subject to Title IV of ERISA, an ERISA Affiliate or (b) if the Issuer or a Restricted Subsidiary has liability thereunder, was at any time during the six (6) calendar years preceding the Closing Date, sponsored, maintained or contributed to by the Issuer or a Subsidiary or, to which Issuer or a Subsidiary has any liability, including any liability with respect to a plan subject to Title IV of ERISA on account of an ERISA Affiliate.

"**Pledge and Security Agreement**" means a Pledge and Security Agreement among each Note Party and the Collateral Agent in substantially the form of <u>Exhibit G-2</u> (or otherwise in form and substance reasonably acceptable to the Agent (at the direction of the Requisite Holders)) granting Liens and security interests in the Equity Interests of the Subsidiaries directly owned by such Note Parties and the Note Parties' other personal property constituting Collateral (as defined therein) in favor of the Collateral Agent for the benefit of the Secured Parties to secure the Obligations, as the same may be amended, restated, amended and restated, modified, supplemented or restated from time to time.

"**Primary Distributions**" as defined in Section <u>7.04(c)(i)(A)</u>.

"**Prime Rate**" means the rate of interest per annum publicly quoted from time to time by *The Wall Street Journal* (or, if no longer quoted by *The Wall Street Journal*, such other national publication selected by the Requisite Holders in consultation with the Issuer) as the United States "prime rate". 

**"Prior Period Adjustment"** means, for any Applicable CF Period, (a) the total Free Cash Flow (Back) from April 30, 2025 through the immediately preceding Applicable Cash Flow Period <u>minus</u> (b) the total Free Cash Flow Utilizations and the total Specified RPs declared, made or distributed from April 30, 2025 (or, in the event any Specified RPs are declared, made or distributed, from the date of declaring, making or distributing the first Specified RP) through the immediately preceding Applicable Cash Flow Period <u>minus</u> (c) any prepayment of the Notes pursuant to <u>Section 2.09(a)</u> from April 30, 2025 through the immediately preceding Applicable Cash Flow Period.

"**Pro Forma Basis**" means, as to the calculation of the Consolidated Total Net Leverage Ratio, Liquidity and the Asset Coverage Ratio, such calculation will be made on a pro forma basis, including giving pro forma effect to the following events as if such events occurred, for purposes of the Consolidated Total Net Leverage Ratio, on the first date of the then most recently ended period for which financial statements (including monthly financial statements and lease operating statements) are available and, for purposes of the Asset Coverage Ratio, immediately prior to such date of determination: any Asset Sale, any Casualty Event, any Material Acquisition, any Material Disposition, any Restricted Payment or any incurrence of Debt that occurred during such period (or thereafter and through and including the date of such determination, in the case of determinations made with respect to any action the taking of which hereunder is subject to compliance with the Consolidated Total Net Leverage Ratio or the Asset Coverage Ratio). Any cash or Cash Equivalents to be received by the Issuer or any Restricted Subsidiary in connection with the incurrence of Debt shall not be considered Unrestricted Cash in determining compliance on a "Pro Forma Basis" with the Consolidated Total Net Leverage Ratio for the incurrence of such Debt or any transaction substantially contemporaneously therewith. Pro forma calculations made pursuant to the definition of the term "Pro Forma Basis" shall be, with respect to the Consolidated Total Net Leverage Ratio, determined in good faith by a Responsible Officer of the Issuer and with supporting documentation reasonably acceptable to the Agent (at the direction of the Requisite Holders) and, with respect to the Asset Coverage Ratio, made in accordance with <u>Section 1.05</u> and <u>Section 6.01(u)</u>.

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"**Pro Rata Share**" means, as to any Holder, with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 2.01(a)</u>, the percentage obtained by <u>dividing</u> (i) the Commitments of that Holder, by (ii) the aggregate Commitments of all Holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all payments, computations and other matters relating to the Notes of any Holder (other than the issuance of the Notes contemplated by <u>Section 2.01(a)</u>), the percentage obtained by <u>dividing</u> (i) the Exposure of that Holder by (ii) the aggregate Exposure of all Holders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) after Payment in Full, then the percentage obtained by <u>dividing</u> (i) the Exposure of that Holder by (ii) the aggregate Exposure of all Holders, in each case, shall be calculated on the last day prior to the Payment in Full that any Holder had an Exposure.

"**Probable Reserves**" means "probable oil and gas reserves" as such term is defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"**Projected Cash Flow From Operating Activities**" means (a) the projected Cash Flow From Operating Activities for the Applicable CF Period prepared by the Issuer in good faith and incorporating the expected revenue and expenses from ongoing operations of the Issuer and its Restricted Subsidiaries, including from Oil and Gas Properties, Swap Agreements, General and Administrative Costs, and interest expenses <u>plus</u> (b) to the extent constituting a General and Administrative Cost and included in Cash Flow From Operating Activities, any AUM Fees and/or Dividend Incentive Fees paid in cash during such period <u>minus</u> (c) to the extent included in Cash Flow From Operating Activities, any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries for such period, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments. Projected Cash Flow from Operating Activities shall be calculated using the Strip Price as of the date of determination.

"**Projections**" as defined in <u>Section 6.01(f)</u>.

"**Property**" means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights.

"**Proved Developed Producing Reserves**" means "proved developed producing oil and gas reserves" as such term is defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"**Proved Reserves**" means collectively, "proved oil and gas reserves," "proved developed producing oil and gas reserves," "proved developed non-producing oil and gas reserves" (consisting of proved developed shut-in oil and gas reserves and proved developed behind pipe oil and gas reserves), and "proved undeveloped oil and gas reserves," as such terms are defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"**Public Company**" as defined in <u>Section 11.18</u>.

"**Public Company Information**" as defined in <u>Section 11.18</u>.

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"**Purchase Money Debt**" means Debt, the proceeds of which are used to finance the acquisition, construction, or improvement of inventory, equipment or other property in the ordinary course of business.

"**Qualified ECP Guarantor**" means, in respect of any Swap Agreement, each Note Party that (a) has total assets exceeding $10,000,000 at the time any guaranty of obligations under such Swap Agreement or grant of the relevant security interest becomes effective or (b) otherwise constitutes an "eligible contract participant" under the Commodity Exchange Act and can cause another Person to qualify as an "eligible contract participant" at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

"**Qualified Institutional Buyer**" as defined in <u>Section 5.11</u>.

"**RCRA**" has the meaning set forth in the definition of "**Environmental Laws**".

"**Recipient**" as defined in <u>Section 11.18</u>.

"**Redemption**" means with respect to any Debt, the repurchase, redemption, prepayment, repayment, defeasance or any other acquisition or retirement for value (or the segregation of funds with respect to any of the foregoing) of such Debt. "**Redeem**" has the correlative meaning thereto.

"**Redemption Offer**" as defined in <u>Section 2.09(h)(i)</u>.

"**Redemption Payment**" as defined in <u>Section 2.09(h)(i)</u>.

"**Redemption Purchase Date**" as defined in <u>Section 2.09(h)(i)</u>.

"**Refinancing**" as defined in <u>Section 2.04</u>.

"**Register**" as defined in <u>Section 2.05(b)</u>.

"**Regulation T**" means Regulation T of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

"**Regulation U**" means Regulation U of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

"**Regulation X**" means Regulation X of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

"**Reinvestment Yield**" means, with respect to the Called Principal of any Note, 50 basis points (one-half of one percent) over the yield to maturity implied by (a) the yields reported as of 10:00 a.m. (New York, New York time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1" (or such other display as may replace Page PX1 on Bloomberg Financial Markets ("Bloomberg")) or, if Page PX1 (or its successor screen on Bloomberg) is unavailable, the Telerate Access Service screen which corresponds most closely to Page PX1 for the most recently issued actively traded U.S. Treasury securities having a maturity equal to the Remaining Life of such Called Principal as of such Settlement Date or (b) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (519) (or any comparable successor

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publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Life of such Called Principal as of such Settlement Date. Such implied yield will be determined, if necessary, by (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (ii) interpolating linearly between (A) the actively traded U.S. Treasury security with the maturity closest to and greater than such Remaining Life and (B) the actively traded U.S. Treasury security with the maturity closest to and less than such Remaining Life. The Reinvestment Yield shall be rounded to two decimal places.

"**Related Fund**" means, with respect to any Holder that is an investment fund, any other investment fund that is engaged in making, purchasing, holding or otherwise investing in bank loans, commercial loans, private placements and similar extensions of credit in the ordinary course and that is managed, advised or sub-advised by the Holder, an Affiliate of such Holder, or an entity that administers, advises, sub-advises or manages such Holder. Related Fund shall, with respect to any Holder, also include any swap, special purpose vehicles purchasing or acquiring security interests in collateralized loan obligations of such Holder or any other vehicle through which such Holder's investment advisors may leverage its investments from time to time.

"**Release**" means any depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping, or disposing.

"**Remaining Life**" means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the Make-Whole Expiry Date.

"**Remaining Scheduled Payments**" means, with respect to the Called Principal of any Note, all payments of Interest in respect of such Called Principal that would be due on or after the Settlement Date through the Make-Whole Expiry Date with respect to such Called Principal if no payment of such Called Principal (or other payment of principal on the Notes) were made (to be calculated assuming the Adjusted Term SOFR Rate at the time the applicable notice of payment is delivered applies through the applicable period or, if no such notice is given, assuming the Adjusted Term SOFR Rate at the time of such payment applies through the applicable period).

"**Remedial Work**" as defined in <u>Section 6.09(a)</u>.

"**Requisite Holders**" means two or more Holders having or holding Exposure representing more than fifty percent (50%) of the sum of the aggregate Exposure of all Holders.

"**Reserve Report**" means (a) the Initial Reserve Report, (b) the Acquired Assets Reserve Report and (c)(i) any other subsequent report, in the form of the Initial Reserve Report (including an Aries database) and/or (ii) any other engineering data acceptable to the Agent (at the direction of the Requisite Holders), setting forth, as of the dates set forth in <u>Section 6.11(a)</u>, the Proved Reserves and Probable Reserves attributable to the Oil and Gas Properties of the Issuer and the other Note Parties, together with a projection of the rate of production and future net revenues, operating expenses (including production taxes and ad valorem expenses, if applicable) and capital expenditures with respect thereto as of such date, based upon pricing assumptions consistent with SEC reporting requirements at the time and reflecting Swap Agreements in place with respect to such production.

"**Reserve Report Certificate**" means a certificate of a Responsible Officer in substantially the form of <u>Exhibit J</u> certifying as to the matters in <u>Section 6.11(b)</u>.

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"**Resolution Authority**" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"**Responsible Officer**" means, as to any Person, the chief executive officer, the president, any Financial Officer or any vice president or authorized signatory of such Person; <u>provided</u> that if such person is a limited partnership or limited liability company, any reference to a Responsible Officer of such Person shall be a reference to a Responsible Officer of such limited liability company or of the general partner or sole member, as applicable, of such Person. Unless otherwise specified, all references to a Responsible Officer herein shall mean a Responsible Officer of the Issuer.

"**Restricted Payment**" means (a) any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in the Issuer or any of its Subsidiaries, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Issuer or any of its Subsidiaries or any option, warrant or other right to acquire any such Equity Interests in the Issuer or any of its Subsidiaries and (b) any payment of management fees, advisory fees, consulting fees or similar fees by the Issuer or any Restricted Subsidiary to any holders of their Equity Interests or any Affiliates thereof. Notwithstanding the foregoing, for purposes of this Agreement, AUM Fees and Dividend Incentive Fees shall constitute Restricted Payments and not General and Administrative Costs.

"**Restricted Subsidiary"** means any Subsidiary of the Issuer that is not an Unrestricted Subsidiary.

"**Rolling Period**" means, as of any date of determination, the most recently ended period of four (4) consecutive Fiscal Quarters for which financial statements have been delivered, or were required to be delivered, pursuant to <u>Section 6.01(a)</u> or <u>Section 6.01(b)</u>, as applicable; <u>provided</u> that, for purposes of <u>Section 7.01</u>, "Rolling Period" means, as of the last day of any Fiscal Quarter, the period of four (4) consecutive Fiscal Quarters ending on such date.

"**S&P**" means Standard & Poor's Ratings Group, a division of The McGraw-Hill Companies, Inc., and any successor thereto that is a nationally recognized rating agency.

"**Sanctioned Country**" means, at any time, a country, region or territory which is itself, or whose government is, the subject or target of any Sanctions broadly restricting or prohibiting dealings with such country, territory or government (at the time of this Agreement, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, the non-government-controlled areas of the Kherson and Zaporizhzhia Regions of Ukraine, the Crimea Region of Ukraine, Cuba, Iran, North Korea and Syria).

"**Sanctioned Person**" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State or by the United Nations Security Council, the European Union, any European Union member state or His Majesty's Treasury of the United Kingdom, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any government that is itself the subject or target of sanctions or (d) any Person 50% or more owned or controlled by any such Person or Persons described in the foregoing <u>clauses (a)</u>, <u>(b)</u> or <u>(c)</u>.

"**Sanctions**" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, the United Nations Security Council, the European Union, any European Union member state, or His Majesty's Treasury.

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"**SEC**" means the United States Securities and Exchange Commission or any Governmental Authority succeeding to any of its principal functions.

"**Second Engineer**" as defined in <u>Section 1.05(d)</u>.

<u>"**Second Amendment**" means that certain Second Amendment to Note Purchase Agreement, dated as of June 23, 2025, by and among the Issuer, the other Note Parties, the Agent, the Holders and the Second Amendment Incremental Note Holders.</u>

<u>"**Second Amendment Effective Date**" means June 23, 2025.</u>

<u>"**Second Amendment Incremental Commitment**" means the commitments of the Second Amendment Incremental Note Holders to purchase the Second Amendment Incremental Notes on the Second Amendment Effective Date. The aggregate amount of the Second Amendment Incremental Commitments is $100,000,000.</u>

<u>"**Second Amendment Incremental Note Holders**" means each person listed on the signature page to the Second Amendment as a Second Amendment Incremental Note Holder.</u>

<u>"**Second Amendment Incremental Notes**" means the Notes purchased on the Second Amendment Effective Date pursuant to Section 2.01(a)(iii), as evidenced by a promissory note in the form of Exhibit B-2.</u>

<u>"**Second Amendment LOS/CF Certificate**" means the LOS/CF Certificate delivered on July 20, 2025.</u>

<u>"**Second Amendment Pre-Fund Date**" means June 20, 2025.</u>

<u>"**Second Amendment Reserve Report**" means the Reserve Report prepared internally by the Issuer, dated as of January 1, 2025, evaluating the Proved Reserves comprising the Acquired PHX Assets acquired pursuant to the Specified PHX Merger Agreement as of the Second Amendment Effective Date.</u>

<u>"**Second Amendment Transaction Expenses**" means any fees or expenses incurred by the Issuer or any of its Restricted Subsidiaries in connection with the Second Amendment, the Specified PHX Merger Agreement and the transactions contemplated thereby.</u>

"**Second Offer**" as defined in <u>Section 2.09(g)</u>.

"**Secondary Distributions**" as defined in <u>Section 7.04(c)(i)(A)</u>.

"**Secured Hedge Agreement**" means any Swap Agreement between a Note Party and a Secured Hedge Provider entered into (a) substantially concurrently with such Secured Hedge Provider becoming, or after such Secured Hedge Provider has become, party to the Hedge Intercreditor Agreement or (b) prior to the Closing Date, to the extent such Secured Hedge Provider was a Secured Hedge Provider on the Closing Date.

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"**Secured Hedge Obligations**" means all debts, liabilities, obligations, covenants and duties of any Note Party to any Secured Hedge Provider under any Secured Hedge Agreement, so long as such Secured Hedge Provider is party to, and remains subject to, the Hedge Intercreditor Agreement.

"**Secured Hedge Provider**" means, any Approved Counterparty that is party to, and remains subject to, the Hedge Intercreditor Agreement, either by signing the Hedge Intercreditor Agreement directly or by entry into a Joinder Supplement (as defined in the Hedge Intercreditor Agreement) pursuant to the terms and conditions of the Hedge Intercreditor Agreement.

"**Secured Parties**" means, collectively, the Agents, the Holders, the Secured Hedge Providers and any other Person owed Obligations, and "Secured Party" means any of them individually.

"**Securities Account**" means any "securities account" as defined in the UCC.

"**Securities Act**" means the Securities Act of 1933, as amended from time to time, the rules and regulations promulgated thereunder and any successor statute.

"**Seller**" means Three Rivers Royalty II, LLC.

"**Series A Preferred Shares**" means the 44,100 shares of preferred stock designated as "Series A Preferred Stock" pursuant to Section 1 of the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**Series B Preferred Shares**" means the 50,000 shares of preferred stock designated as "Series B Preferred Stock" pursuant to Section 1 of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**Series C Preferred Shares**" means the fifty six thousand (56,000) shares of preferred stock designated as "Series C Preferred Stock" pursuant to Section 1 of the Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of March 26, 2025.

"**Settlement Date**" means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be prepaid pursuant to <u>Section 2.08</u> or <u>Section 2.09</u> as the context requires.

"**SOFR**" means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website.

"**SOFR Administrator**" means the NYFRB (or a successor administrator of the secured overnight financing rate).

"**SOFR Administrator's Website**" means the NYFRB's website, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"**Solvency Certificate**" means a Solvency Certificate of a Financial Officer substantially in the form of <u>Exhibit E</u>.

"**Solvent**" means, with respect to any Person on any date of determination, that on such date (a) the present fair saleable value of the property of such Person and its Subsidiaries on a consolidated basis will be greater than the amount that will be required to pay the probable liability of such Person and its Subsidiaries on a consolidated basis on their debts and other liabilities, as such debts and other liabilities

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become absolute and matured; (b) such Person and its Subsidiaries on a consolidated basis will be able to pay their debts and liabilities, direct, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (c) such Person and its Subsidiaries on a consolidated basis will not have unreasonably small capital with which to conduct the businesses in which they are engaged as such businesses are conducted as of such date and are proposed to be conducted following such date.

"**Specified Acquisition**" means the acquisition by WhiteHawk Income Marcellus LLC of the Acquired Assets on the Closing Date pursuant to and in accordance with the terms and conditions of the Specified Acquisition Agreement.

"**Specified Acquisition Agreement**" means that certain Purchase and Sale Agreement between Three Rivers Royalty II, LLC, a Colorado limited liability company, as seller (the "**Seller**") and WhiteHawk Income Marcellus LLC, a Delaware limited liability company, as buyer, dated as of and as in effect on September 17, 2024, together with all exhibits, annexes, schedules and other disclosure or other letters thereto, collectively.

"**Specified Equity Contribution**" means, at any time, without duplication, (a) the amount of cash proceeds received by the Issuer as cash capital contributions from one or more holders of the Equity Interests of the Issuer during the Cure Period or (b) the amount of proceeds received from the issuance of common Equity Interests issued by the Issuer (or, on terms reasonably satisfactory to the Requisite Holders, other forms of Equity Interests (it being understood that preferred Equity Interests in form and substance substantially the same as the Series A Preferred Shares or Series B Preferred Shares as of the Closing Date shall be deemed to be on terms reasonably satisfactory to the Requisite Holders)) to one or more of the holders of the Equity Interests of the Issuer during the Cure Period (in each case, other than in connection with an issuance by the Issuer of Disqualified Capital Stock), which is made for the purpose of curing a failure to comply with <u>Sections 7.01(a)</u> or <u>7.01(b)</u> that would otherwise occur, pursuant to the exercise of a cure right pursuant to <u>Section 7.01(c)</u>.

"**Specified Period A Equity Redemptions**" means redemptions by the Issuer of its (a) common Equity Interests in accordance with the Issuer's Organizational Documents in effect as of the <u>Second Amendment Effective</u> d<u>D</u>ate hereof, (b) Series B Preferred Shares in accordance with the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 and/or (c) Series C Preferred Shares in accordance with the Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of March 26, 2025, in each case as in effect as of the date hereof.

**"Specified Period B/C Level I Equity Redemptions**" means redemptions by the Issuer of its (a) common Equity Interests in accordance with the Issuer's Organizational Documents in effect as of the <u>Second Amendment Effective</u> d<u>D</u> ate hereof and/or Series B Preferred Shares in accordance with the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 , in each case as in effect as of the date hereof.

**"Specified Period B/C Level II Equity Redemptions**" means redemptions by the Issuer of its (a) Series B Preferred Shares in accordance with the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 and/or (b) Series C Preferred Shares in accordance with the Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of March 26, 2025, in each case as in effect as of the date hereof.

"**Specified Event**" as defined in <u>Section 9.02</u>.

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"**Specified Issuance Proceeds**" as defined in <u>Section 7.04(e)</u>.

<u>"**Specified PHX Merger**" means the acquisition by WhiteHawk Merger Sub, Inc. ("**Merger Su**b") of the outstanding common stock of PHX Minerals Inc., a Delaware corporation (the "**Target**"), by means of a cash tender offer (the "**Offer**") by Merger Sub to acquire any and all of the outstanding shares of common stock of the Target, and, as soon as practicable following the consummation of the Offer, a merger of Merger Sub with and into the Target pursuant to Section 251(h) of the General</u> <u>accordance with the terms and conditions of the Specified PHX Merger Agreement.</u>

<u>"**Specified PHX Merger Agreement**" means that certain Agreement and Plan of Merger between WhiteHawk Acquisition, Inc., Whitehawk Merger Sub, Inc. and PHX Minerals Inc., dated as of May 8, 2025 and as in effect on June 23, 2025, together with all exhibits, annexes, schedules and other disclosure or other letters thereto, collectively.</u>

"**Specified RPs**" as defined in <u>Section 7.04(d)</u>.

"**Specified SJM Acquisition**" means the acquisition by Whitehawk Income Marcellus LLC of the Acquired SJM Assets on the First Amendment Effective Date pursuant to and in accordance with the terms and conditions of the Specified SJM Acquisition Agreement.

"**Specified SJM Acquisition Agreement**" means that certain Purchase and Sale Agreement between Three Rivers Royalty, LLC, as seller, and WhiteHawk Income Marcellus LLC, as buyer, dated as of and as in effect on March 31, 2025, together with all exhibits, annexes, schedules and other disclosure or other letters thereto, collectively.

"**Strip Price**" means, at any time, (a) for each remaining month of the current calendar year, the monthly NYMEX Pricing for the remaining contracts in the current calendar year, (b) for each of the succeeding five complete calendar years, the monthly NYMEX Pricing, in each case, for each of the twelve months in each such calendar year, and (c) for the succeeding sixth complete calendar year, and for each calendar year thereafter, the annual monthly average of the NYMEX Pricing of the preceding fifth calendar year.

"**Subsidiary**" means, with respect to any Person (the "**Parent**") at any date, any other Person the accounts of which would be consolidated with those of the Parent in the Parent's consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other Person (a) of which Equity Interests representing more than 50% of the equity or more than 50% of the ordinary voting power (irrespective of whether or not at the time Equity Interests of any other class or classes of such Person shall have or might have voting power by reason of the happening of any contingency) or, in the case of a partnership, any general partnership interests are, as of such date, owned, controlled or held, or (b) the management decisions of which, as of such date, are otherwise controlled, in each case, directly, indirectly through one or more intermediaries, or both, by the Parent. Unless otherwise specified, each reference to "Subsidiary" means a Subsidiary of the Issuer.

"**Swap Agreement**" means any swap, forward, collar, future or derivative transaction or option or similar agreement, whether exchange traded, "over-the-counter" or otherwise (and for the avoidance of doubt, including on a prepaid or physically settled basis), involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions (including, but not limited to, as the context dictates, any agreement, contract or transaction that constitutes a "swap" within the meaning of Section 1a(47) of the Commodity Exchange Act); <u>provided</u> that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Issuer or its Restricted Subsidiaries shall be a Swap Agreement.

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"**Swap Termination Value**" means, in respect of any one or more Swap Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Agreements, (a) for any date on or after the date such Swap Agreements have been closed out and termination value(s) determined in accordance therewith, such close-out and termination value(s) (including any unpaid amounts) and (b) for any date prior to the date referenced in <u>clause (a)</u>, the amount(s) determined as the mark-to-market value(s) for such Swap Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Agreements.

"**Synthetic Leases**" means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, treated as operating leases on the financial statements of the Person liable (whether contingently or otherwise) for the payment of rent thereunder and which were properly treated as indebtedness for borrowed money for purposes of United States federal income taxes, if the lessee in respect thereof is obligated to either purchase for an amount in excess of, or pay upon early termination an amount in excess of, 80% of the residual value of the Property subject to such operating lease upon expiration or early termination of such lease.

"**Target Debt Balance**" means the aggregate principal amount of Notes as set forth in the following table:

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| | |
|:---|:---|
|  Closing Date | $65000000 |
|  January 31, 2025 | $63375000 |
|  April 30, 2025 | $147750000 |
|  July 31, 2025 | $143975000<u>243975000</u> |
|  October 31, 2025 | $140200000<u>237700000</u> |
|  January 31, 2026 | $136425000<u>231425000</u> |
|  April 30, 2026 | $132650000<u>225150000</u> |
|  July 31, 2026 | $128875000<u>218875000</u> |
|  October 31, 2026 | $125100000<u>212600000</u> |
|  January 31, 2027 | $121325000<u>206325000</u> |
|  April 30, 2027 | $117550000<u>200050000</u> |
|  July 31, 2027 | $113775000<u>193775000</u> |
|  October 31, 2027 | $110000000<u>187500000</u> |

---

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---

| | |
|:---|:---|
|  January 31, 2028 | $106225000<u>181225000</u> |
|  April 30, 2028 | $102450000<u>174950000</u> |
|  July 31, 2028 | $98675000<u>168675000</u> |
|  October 31, 2028 | $94900000<u>162400000</u> |
|  January 31, 2029 | $91125000<u>156125000</u> |
|  April 30, 2029 | $87350000<u>149850000</u> |
|  July 31, 2029 | $83575000<u>143575000</u> |
|  October 31, 2029 | $79800000<u>137300000</u> |
|  January 31, 2030 | $76025000<u>131025000</u> |
|  <u>April 30, 2030</u> | $<u>124750000</u> |

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"**Tax**" or "**Taxes**" means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"**Tax on the Overall Net Income**" of a Person means (a) Taxes imposed on or measured by net income (however denominated), franchise Tax and branch profits Tax, in each case, imposed on a Person by the jurisdiction (or any political subdivision thereof) in which a Person is organized or in which that Person's applicable principal office (and/or, in the case of a Holder, its Applicable Office) is located or in which that Person (and/or, in the case of a Holder, its Applicable Office) is deemed to be doing business, and (b) any Tax imposed as a result of a present or former connection between such Person and the jurisdiction imposing such Tax (other than connections arising from such Person having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Note Document, or sold or assigned an interest in any Note or Note Document).

"**Tax Related Person**" means, with respect to a pass-through entity, any Person who is a beneficial owner of an interest in such pass-through entity who is required to include in income amounts realized (whether or not distributed) by such pass-through entity. The foregoing shall be determined under United States federal income tax principles.

"**Term SOFR Determination Day**" has the meaning assigned to it under the definition of Term SOFR Reference Rate.

"**Term SOFR Rate**" means the three-month Term SOFR Reference Rate at approximately 12:00 p.m., New York time, two (2) U.S. Government Securities Business Days prior to the commencement of the applicable Interest Period, as such rate is published by the CME Term SOFR Administrator.

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"**Term SOFR Reference Rate**" means, for any day and time (such day, the "**Term SOFR Determination Day**"), with respect to any Interest Period, the rate per annum determined by the Agent as the three-month forward-looking term rate based on SOFR. If by 5:00 p.m. (New York City time) on such Term SOFR Determination Day, the "Term SOFR Reference Rate" has not been published by the CME Term SOFR Administrator, then the Term SOFR Reference Rate for such Term SOFR Determination Day will be the Term SOFR Reference Rate as published in respect of the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate was published by the CME Term SOFR Administrator, so long as such first preceding Business Day is not more than three (3) Business Days prior to such Term SOFR Determination Day.

"**Total Net Debt**" means, as of any date of determination, (a) the aggregate amount of Debt of the Issuer and its Consolidated Restricted Subsidiaries outstanding on such date, determined on a consolidated basis in accordance with GAAP consisting only of Debt of the Issuer and its Restricted Subsidiaries for borrowed money, drawn but unreimbursed obligations under letters of credit, obligations in respect of Finance Leases and other obligations for borrowed money evidenced by bonds, bankers' acceptances, debentures, notes or other similar instruments (excluding, for the avoidance of doubt, Debt under surety or other performance bonds and similar instruments), <u>minus</u> (b) the aggregate amount of the Note Parties' Unrestricted Cash on hand as of such date in an aggregate amount not to exceed **$10,000,000<u>25,000,000</u>.** 

"**Total PDP PV-10 Value**" means, as of any date of determination, with respect to the Proved Developed Producing Reserves constituting Oil and Gas Properties of the Note Parties, the net present value of future cash flows (discounted at ten percent (10%) *per annum*) calculated in accordance with <u>Section 1.05</u>.

"**Transaction Expenses**" means any fees or expenses incurred or paid by the Issuer or any of its Restricted Subsidiaries in connection with the Transactions, this Agreement and the other Note Documents and the transactions contemplated hereby.

"**Transactions**" means the transactions contemplated by the Note Documents to occur on or prior to the Closing Date, including (a) the execution, delivery and performance by the Note Parties of the Note Documents to which they are a party and the issuance of the Notes hereunder, (b) the consummation of the Specified Acquisition and the Refinancing and (c) the payment of related fees and expenses.

"**U.S. Tax Compliance Certificate**" as defined in <u>Section 2.14(e)(iii)</u>.

"**UCC**" means the Uniform Commercial Code as in effect in any applicable jurisdiction.

"**UK Financial Institution**" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"**UK Resolution Authority**" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"**United States Person**" has the meaning in Section 7701(a)(30) of the Internal Revenue Code.

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"**Unrestricted Cash**" means cash or Cash Equivalents of the Issuer or any of its Restricted Subsidiaries that would not appear as "restricted" on a consolidated balance sheet of the Issuer or any of its Restricted Subsidiaries; <u>provided</u> that (a) cash or Cash Equivalents that would appear as "restricted" on a consolidated balance sheet of the Issuer or any of its Restricted Subsidiaries solely because such cash or Cash Equivalents are subject to a Control Agreement in favor of the Collateral Agent shall constitute Unrestricted Cash hereunder and (b) cash and Cash Equivalents shall be included in the determination of Unrestricted Cash only to the extent that such cash and Cash Equivalents are maintained in accounts subject to a Control Agreement as required hereunder.

"**Unrestricted Subsidiary**" means any Subsidiary of the Issuer designated as such on <u>Schedule 4.13</u>. Notwithstanding anything to the contrary, there shall be no Unrestricted Subsidiaries under the Note Purchase Agreement or any other Note Document and the Issuer shall not be permitted to designate any Subsidiary as an Unrestricted Subsidiary.

"**U.S. Government Securities Business Day**" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"**USA PATRIOT Act**" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. 107-56), as amended.

"**Wholly-Owned Subsidiary**" means any Restricted Subsidiary of which all of the outstanding Equity Interests (other than any directors' qualifying shares mandated by applicable law), on a fully-diluted basis, are owned by the Issuer or one or more of the Wholly-Owned Subsidiaries or are owned by the Issuer and one or more of the Wholly-Owned Subsidiaries.

"**Withholding Agent**" means each of the Note Parties or the Agent.

"**Write-Down and Conversion Powers**" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

**Section 1.03.** <u>Accounting Terms</u>. Except as otherwise expressly provided herein, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Note Document, and the Issuer or the Requisite Holders shall so request, the Requisite Holders and the Issuer shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; <u>provided</u> that, until so amended, such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and the Issuer shall provide to Agent and Holders reconciliation statements requested by Agent, acting at the written direction of the Requisite Holders, (reconciling the computations of such financial ratios and requirements from then-current GAAP computations to the computations under GAAP prior to such change) in connection therewith. Financial statements and other information required to be delivered by the Issuer to Holders pursuant to <u>Sections 6.01(a)</u> and <u>6.01(b)</u> shall be prepared in accordance with GAAP as in effect at the time of such preparation. Subject to the foregoing, calculations in connection with the definitions, covenants and other provisions hereof shall utilize accounting principles and policies in conformity with those used to prepare the historical financial statements of the Issuer.

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**Section 1.04.** <u>Interpretation, etc</u>. Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference. References herein to any Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an Exhibit, as the case may be, hereof unless otherwise specifically provided. References herein to a Schedule shall be considered a reference to such Schedule as of the Closing Date. The use herein of the word "include" or "including," when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not no limiting language (such as "without limitation" or "but not limited to" or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter. The use of the words "repay" and "prepay" and the words "repayment" and "prepayment" herein shall each have identical meanings hereunder. Unless otherwise indicated, any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein (it is understood that the phrase "any functionally equivalent term", when used with respect to another term, means a term with substantially the same meaning as such other term)). The use herein of the phrase "to the knowledge of" with respect to a Note Party shall be a reference to the knowledge of the Responsible Officers of the applicable Note Party. Unless otherwise specified, whenever any obligation required hereunder shall be stated to be due or performed on a day that is not a Business Day, such obligation shall be required on the immediately succeeding Business Day and such extension of time shall be included in the satisfaction of the obligation required hereunder (except as set forth in the definition of "Maturity Date"). The use of the phrase "subject to" or words of like import as used in connection with Liens permitted under <u>Section 7.03</u> or otherwise and the permitted existence of any Liens permitted under <u>Section 7.03</u> or any other Liens shall not be interpreted to expressly or impliedly subordinate any Liens granted in favor of the Collateral Agent or any other Secured Party as there is no intention to subordinate the Liens granted in favor of the Collateral Agent and the other Secured Parties. The words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights. No provision of this Agreement or any other Note Document shall be interpreted or construed against any Person solely because such Person or its legal representative drafted such provision. The words "execution," "signed," "signature," and words of like import in any Note Document or any amendment or other modification thereof shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; <u>provided</u> that, notwithstanding anything herein to the contrary, the Agents are under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Agents pursuant to reasonable procedures approved by the Agents. All notices, approvals, consents, requests and any communications hereunder must be in writing, in English (<u>provided</u> that any such communication sent to an Agent hereunder must be delivered by electronic mail (if in such Agent's discretion), or in the form of a document that is signed manually or by way of a digital signature provided by DocuSign or AdobeSign (or such other digital signature provider as specified in writing to the Agents by the Issuer)). The Note Parties agree to assume all risks arising out of the use of

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using digital signatures and electronic methods to submit communications to an Agent, including without limitation the risk of the Agents acting on unauthorized instructions, and the risk of interception and misuse by third parties. Any reference in the Note Documents to the Agent or Collateral Agent exercising discretion or making determinations shall refer to the Agent or Collateral Agent exercising such discretion or making such determination at the direction of the Requisite Holders. Neither the Agent nor the Collateral Agent shall have any obligation to act in the absence of such direction.

**Section 1.05.** <u>Calculations of Total PDP PV-10 Value</u>. Notwithstanding anything to the contrary contained herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for all calculations of Total PDP PV-10 Value hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) appropriate deductions shall be made for severance and ad valorem taxes, obligations and anticipated payments in respect of minimum volume commitments, capital expenditures and for operating, gathering, transportation and marketing costs required for the development, operation, production and sale of such oil and gas properties (including any contractually specified cost increases or escalators), plugging and abandonment (and other asset retirement obligations) or any other expenses in respect of such Oil and Gas properties (including expense incurred after the end of the expected economic lives of such Oil and Gas properties or contractually required increases in or escalators for expenses) in respect of such oil and gas properties,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without prejudice to <u>Section 6.12(c)(ii)</u>, appropriate deductions shall be made for the benefits associated with Proved Developed Producing Reserves constituting Oil and Gas Properties of the Note Parties for which reasonably satisfactory title information as determined by the Requisite Holders has not been provided to the Requisite Holders on at least 90% of the cash flows attributable to such Proved Developed Producing Reserves,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the pricing assumptions used in determining Total PDP PV-10 Value for any Oil and Gas properties shall be based upon the Strip Price as described in <u>clause (c)</u> below, to reflect the Note Parties' commodity Swap Agreements with Approved Counterparties then in effect so that the expected cash flows with respect to such Swap Agreements are included in the determination of Total PDP PV-10 Value, without duplication with the cash flows from the production subject to such Swap Agreements (it being understood that deferred premiums in respect of such Swap Agreements shall be deducted from such expected cash flows),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the cash flows derived from the pricing assumptions set forth in <u>clause (ii)</u> above shall be further adjusted for basis, quality and gravity differentials based on historical differentials and go-forward expectations,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the methodology applied towards any such calculation shall be consistent with, as reasonably determined by the Requisite Holders, the methodology applied in the Acquired Assets Reserve Report and the Initial Reserve Report, including without limitation the methodology applied to allocate fixed platform expenses to various reserve categories, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) notwithstanding the foregoing, wells shall only be included in the determination of Total PDP PV-10 Value to the extent that the Issuer receives revenue in the form of cash or Cash Equivalents pursuant to its ownership interest in such wells;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any such calculation, other than any calculation made as of the last day of any Fiscal Quarter with respect to <u>clause (i)</u> and <u>clause (iii)</u> below, shall be calculated on a pro forma basis for (i) the roll-off of production since the date of the most recently delivered Reserve Report, (ii) any change in the category of any Oil and Gas Property to another category of Oil and Gas Property (e.g., any "proved undeveloped reserves" becoming "proved developed reserves") and (iii) any disposition or acquisition of Oil and Gas Properties of the Note Parties constituting Proved Developed Producing Reserves, in each case, occurring or consummated by the Note Parties following the "as of" date of the Reserve Report most recently delivered by the Issuer pursuant to <u>Section 6.11</u> (<u>provided</u> that, in the case of <u>clause (ii)</u> and dispositions or acquisitions under <u>clause (iii)</u> above, the Requisite Holders shall have received, and such update shall be based on, updated reserve engineering projections, reasonably acceptable to the Requisite Holders, evaluating the Proved Developed Producing Reserves attributable to the Oil and Gas Properties subject thereto ("**Specified Reserve Updates**")) but prior to the date on which Total PDP PV-10 Value is being calculated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any calculation of Total PDP PV-10 Value (i) on any date other than the last day of any Fiscal Quarter shall be made using (x) the information set forth in the Reserve Report most recently delivered by the Issuer pursuant to <u>Section 6.11</u> (as supplemented by any Specified Reserve Updates) and with an "as of" date that is such date of determination and (y) a Strip Price determined as the Strip Price for the date that is five (5) Business Days prior to such date of determination and (ii) on the last day of any Fiscal Quarter shall be made using (x) the information set forth in the Reserve Report with an "as of" date that is the same as such date and shall be based on reserve categories of the Oil and Gas properties on such date, and (y) a Strip Price determined as of the date that is forty (40) days after the end of the Fiscal Quarter to which the applicable corresponding certificate delivered pursuant to <u>Section 6.01(c)</u> pertains; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) within ten (10) Business Days of receiving an Asset Coverage Ratio certificate provided pursuant to <u>Section 6.01(c)</u> or <u>Section 6.01(u)</u>, the Requisite Holders may, in their sole discretion, (x) request additional information with respect to such Asset Coverage Ratio certificate, its related Reserve Report and/or (y) deliver written notice to the Issuer that the Requisite Holders do not agree with the information set forth in such Reserve Report, Specified Reserve Updates and/or the Issuer's calculation of the Asset Coverage Ratio (including any component thereof). Upon delivery of such written notice by the Requisite Holders, the Issuer and the Requisite Holders shall promptly engage in good faith discussions to come to an agreement with respect to such Reserve Report, Specified Reserve Updates and/or such calculation of the Asset Coverage Ratio (including any component thereof). If the Issuer and the Requisite Holders have not resolved any such disagreements within five (5) Business Days (or such longer period as is mutually agreeable to the Issuer and the Requisite Holders),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Requisite Holders shall have the right to elect within ten (10) Business Days (or such longer period as is mutually agreeable to the Issuer and the Requisite Holders) following the initial five (5) Business Day period to have an Approved Petroleum Engineer selected by the Requisite Holders (a "**Second Engineer**") audit the Reserve Report, Specified Reserve Updates and related calculations delivered by the Issuer; <u>provided</u> that such Second Engineer's audit and preparation of a revised Reserve Report and updated calculations of the Asset Coverage Ratio shall be completed within thirty (30) days of delivery of the Requisite Holder's notice of dispute (or such later date as is mutually agreeable to the Issuer and the Requisite Holders). The Issuer and the Requisite Holders will endeavor that such determination be provided as soon as possible (and agree to promptly provide such information as may be requested by the Second Engineer in connection with such determination). The Second Engineer's determination of fact as to such matters and as to the Total PDP PV-10 Value that will be used in the calculation of Asset Coverage Ratio shall be binding, absent manifest error. If the Second Engineer's calculation of Total PDP PV-10 Value is (x)(1) higher than or (2) lower by less than ten percent (10%) of, the disputed Reserve Report's calculation of Total PDP PV-10 Value, then the fees and expenses of the Second Engineer with respect to such applicable dispute shall be paid by the Requisite Holders and (y) lower by ten percent (10%) or greater of the disputed Reserve Report's calculation of Total PDP PV-10 Value, the fees and expenses of the Second Engineer with respect to such applicable dispute shall be paid by the Issuer, or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event the Requisite Holders have not elected to have a Second Engineer audit the Reserve Report, Specified Reserve Updates and related calculations delivered by the Issuer in accordance with <u>clause (i)</u> above, the Issuer and the Requisite Holders shall refer such matters to the Approved Petroleum Engineer that most recently prepared a Reserve Report to make a determination (which shall be binding, absent manifest error) of fact as to such matters and as to the Total PDP PV-10 Value that will be used in the calculation of Asset Coverage Ratio. The Issuer and the Requisite Holders will endeavor that such determination be provided as soon as possible (and agree to promptly provide such information as may be requested by such Approved Petroleum Engineer in connection with such determination), and in any event within thirty (30) days of submission of such request to such Approved Petroleum Engineer (or such later date as is mutually agreeable to the Issuer and the Requisite Holders).

During any such period of determination by the applicable Second Engineer or Approved Petroleum Engineer, as applicable (x) there shall be no Default or Event of Default arising from any non-compliance with <u>Section 7.01(b)</u> for the applicable test date and (y) no event or transaction that requires the calculation of, and compliance with, an Asset Coverage Ratio on a Pro Forma Basis, Distribution PF Basis or otherwise shall be entered into or consummated by the Issuer and its Restricted Subsidiaries. For the avoidance of doubt, if the final determination by such Second Engineer or Approved Petroleum Engineer, as applicable, would result in a finding that would cause the Issuer to fail to be in compliance with <u>Section 7.01(b)</u>, all rights of the Issuer under <u>Section 7.01(c)</u> shall apply.

**Section 1.06.** <u>Free Cash Flow Distributions and Prepayments Spreadsheet</u>. For clarity, <u>Appendix D</u> contains an illustrative example of the calculations set forth in <u>Section 2.09(a)</u>, <u>Section 7.04(e)</u> and <u>Section 7.05(h)</u> and the definitions of "Adjusted Cash Flow from Operating Activities", "Cash Flow From Operating Activities", "Distributable Free Cash Flow", "Distribution PF Basis", "Free Cash Flow (Back)", "Free Cash Flow (Forward)", "Free Cash Flow Utilization", and "Prior Period Adjustment" and the parties hereto agree that the principles and methodologies with respect to the calculations set forth in <u>Appendix D</u> shall, absent manifest error, govern with respect thereto.

**ARTICLE II** 

**PURCHASE AND SALE OF NOTES** 

**Section 2.01.** <u>Note Purchase</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>The Notes</u>. Subject to the terms and conditions hereof (i) on the Closing Date, Issuer shall issue to each Holder, and each Holder shall purchase from Issuer (so long as all conditions precedent required hereby shall have then been satisfied or waived), a Note denominated in Dollars in an aggregate principal amount equal to such Holder's Pro Rata Share of $65,000,000 and<u>,</u> (ii) on the First Amendment Effective Date, Issuer shall issue to each First Amendment Additional Note Holder, and each First Amendment Additional Note Holder shall purchase from Issuer (so long as all conditions precedent required hereby shall have then been satisfied or waived), a Note denominated in Dollars in an aggregate principal amount equal to such Holder's Pro Rata Share of $86,000,000 .<u>and (iii) on the Second Amendment Effective Date, Issuer shall issue to each Second Amendment Incremental Note Holder, and each Second Amendment Incremental Note Holder shall purchase from Issuer (so long as all conditions precedent required under the Second Amendment shall have then been satisfied or waived), a</u> <u>Note denominated in Dollars in an aggregate principal amount equal to such Holder's Pro Rata Share of</u> <u>$100,000,000.</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notes purchased under this <u>Section 2.01</u> and repaid or prepaid may not be resold, repurchased or reborrowed. In addition, each Holder's Commitment shall be reduced in full and immediately terminated upon giving effect to the purchases of the Notes on the Closing Date.

**Section 2.02.** <u>The Notes; Purchases, Conversions and Continuations of Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the absence of manifest error, the obligation of Issuer to repay to each Holder the aggregate amount of all Notes held by such Holder, together with interest accruing in connection therewith, shall be evidenced by the Notes made by Issuer payable to such Holder or its registered assigns with appropriate insertions. Interest on each Note shall accrue and be due and payable as provided herein or in the applicable Note. Each Note shall be due and payable as provided herein and shall be due and payable in full on the Maturity Date. Issuer may not issue, repay, and reissue Notes hereunder or under the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The failure of any Holder to purchase any Note to be purchased by it as part of any purchase of Notes pursuant to <u>Section 2.01</u> shall not relieve any other Holder of its obligation, if any, hereunder to purchase its Notes on the date of such Note Purchase, but no Holder shall be responsible for the failure of any other Holder to purchase the Notes to be purchased by such other Holder on the date of any Purchase.

**Section 2.03.** <u>Requests for Notes</u>. Issuer must give to Agent written or electronic notice of any requested Note Purchase of Notes to be issued to, and purchased by, Holders. Each such notice constitutes a "**Note Purchase Notice**" hereunder and must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) specify the aggregate amount of any such Note Purchase and the date on which such Notes are to be purchased; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be received by Agent no later than 12:00 p.m., New York, New York time, ten (10) Business Days prior to the date on which any such Notes are to be purchased (or such earlier date as the Holders may agree (and have notified Agent) in their sole discretion), which Note Purchase Notice shall (i) be sent by the Agent to the Holders no later than 12:00 p.m., New York, New York time one Business Day following receipt by the Agent thereof and (ii) specify the accounts in to which the funds received by Agent on the Closing Date shall be disbursed (which may be in the form of the Flow of Funds).

Each such written request must be made in the form and substance of the Note Purchase Notice, duly completed. Upon receipt of any such Note Purchase Notice, Agent shall give each Holder prompt notice of the terms thereof. If all conditions precedent to such new Notes have been met (or waived), each Holder will on the date requested promptly remit to Agent, at Agent's Account, the amount of such Holder's new Note in immediately available funds, and upon receipt of all such funds, the Agent shall promptly make such funds available to the Issuer and the Issuer will deliver such Notes to the counsel for the Holders who shall promptly make such Notes available to each Holder. The failure of any Holder to purchase any Note hereunder shall not relieve any other Holder of its obligation hereunder, if any, to purchase its Note, but no Holder shall be responsible for the failure of any other Holder to purchase any Note hereunder.

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**Section 2.04.** <u>Use of Proceeds</u>. (a) The proceeds of the Notes issued on the Closing Date shall be used (i) to pay a portion of the purchase price for the Specified Acquisition and (ii)(A) the repayment in full of the Existing Credit Facility (the "<u>Refinancing</u>") and (B) to make redemptions of Series A Preferred Shares and (iii) for general corporate purposes, including to pay the Transaction Expenses; and (b) the proceeds of the First Amendment Additional Notes issued on the First Amendment Effective Date shall be used (i) to pay a portion of the purchase price for the Specified SJM Acquisition, (ii) to redeem the Series A Preferred Shares in full and (iii) to pay the First Amendment Transaction Expenses. <u>and (c) the proceeds of the Second Amendment Incremental Notes issued on the Second Amendment Effective Date shall be used (i) to pay a portion of the consideration for the Specified PHX Merger and (ii) to pay the Second Amendment Transaction Expenses.</u>

**Section 2.05.** <u>Evidence of Debt; Register; Holders' Books and Records; Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Holders' Evidence of Debt</u>. Each Holder shall maintain in its internal records an account or accounts evidencing the Obligations of the Issuer to such Holder, including the amounts of the Notes held by such Holder and each repayment and prepayment in respect thereof. The failure to make any such recordation, or any error in such recordation, shall not affect any Obligations in respect of any applicable Notes. In the event of any inconsistency between the Register and any Holder's records, the recordations in the Register shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Register</u>. Agent shall maintain at Agent's Office a register for the recordation of the names and addresses of the Holders and principal amounts (and stated interest) of the Notes owing to, each Holder pursuant to the terms hereof from time to time (the "**Register**"). The Register shall be available for inspection by the Issuer and any Holder at any reasonable time and from time to time upon reasonable prior notice. The entries in the Register shall be conclusive and binding on the Note Parties, the Agent and each Holder, absent manifest error; <u>provided</u> that, failure to make any such recordation, or any error in such recordation, shall not affect the Note Parties' Obligations in respect of any Note. The Issuer, the Agent and the Holders shall treat each Person in whose name any Note shall be registered as the owner and the Holder thereof for all purposes hereof. The Issuer hereby designates the entity serving as Agent to serve as the Issuer's non-fiduciary agent solely for purposes of maintaining the Register as provided in this <u>Section 2.05</u>, and the Agent shall be entitled to all of the rights, privileges and immunities afforded to it hereunder in the performance of such duties. Notwithstanding the foregoing, the Agent shall not, or be deemed to, act hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

**Section 2.06.** <u>Interest; Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Interest</u>. Each Note shall at all times bear interest at a rate equal to the Applicable Margin then in effect (as such amount may be increased pursuant to <u>Section 2.06(c))</u>, paid in cash ("**Interest**"). <u>For the avoidance of doubt, interest on the Second Amendment Incremental Notes shall begin to accrue commencing on the Second Amendment Pre-Fund Date.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Interest Payment Dates</u>. Interest on each Note shall be due and payable on each Interest Payment Date to Holders of record in the Register on such Interest Payment Date; <u>provided</u> that, if Interest on any Note is required to be paid on any Settlement Date pursuant to <u>Section 2.08</u> or <u>Section 2.09</u>, and such Settlement Date is not an Interest Payment Date, then the amount of Interest due and payable on the next succeeding Interest Payment Date will be reduced by the amount of interest accrued to such Settlement Date and required to be paid (and is actually paid) on such Settlement Date pursuant to such <u>Section 2.08</u> or <u>Section 2.09</u>. All interest payable hereunder shall be computed on the basis of a year of three hundred sixty (360) days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of three hundred sixty-five (365) days (or three hundred sixty-six (366) days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Default Interest</u>. Notwithstanding the foregoing, (1) automatically upon the occurrence and during the continuance of an Event of Default arising under <u>Section 9.01(a)</u>, <u>Section 9.01(b)</u>, <u>Section 9.01(h)</u> or <u>Section 9.01(i)</u> and (2) if any other Event of Default has occurred and is continuing, then if the Requisite Holders so elect by written notice to the Issuer (with a copy to the Agent), the principal amount of all Notes outstanding and, to the extent permitted by applicable law, any due and unpaid interest payments on the Notes or any unpaid fees or other unpaid amounts owed hereunder (other than default interest occurring under this <u>Section 2.06(c)</u>), shall, commencing on the date of occurrence of the applicable Event of Default, bear interest (including post-petition interest in any proceeding under the Code or other applicable bankruptcy laws, whether or not allowed in such a proceeding) payable in cash on demand at a rate that is two percent (2.0%) per annum in excess of the interest rate otherwise payable hereunder with respect to the Notes to the date of payment to the Agent. Payment or acceptance of the increased rates of interest provided for in this <u>Section 2.06(c)</u> is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Agents or any Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Fees</u>. Issuer will pay to each of the Agents and EIG for their own respective accounts, the fees as set forth in the Agent Fee Letter and the Fee Letter, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Calculations</u>. The Agent shall promptly (but in any event no later than three (3) Business Days to the Issuer and two (2) Business Days to the Holders prior to any Interest Payment Date or the date of any other amount payable under this <u>Section 2.06</u>) notify the Issuer and the Holders of the effective date and the amount of each Interest, fee or other payment under this <u>Section 2.06</u>. Each determination of an interest rate, interest payment amount or fee payment amount by the Agent pursuant to any provision of this Agreement shall be conclusive and binding on the Issuer and the Holders in the absence of manifest error. The Agent shall provide the Issuer notice of the calculation of Term SOFR Rate via email prior to the commencement of the applicable Interest Period.

**Section 2.07.** <u>Repayment of Notes</u>. If any principal or interest amount payable under the Notes remains outstanding on the Maturity Date, such amount will be paid in full by the Issuer to the Agent on behalf of the Holders in immediately available funds on the Maturity Date, together with any amounts required to be paid hereunder, including pursuant to <u>Section 2.06</u>.

**Section 2.08.** <u>Voluntary Prepayments</u>. The Issuer may prepay the Notes on any Business Day in whole or in part (together with any amounts due pursuant to <u>Section 2.06</u> and <u>Section 2.11(g)</u>) in an aggregate minimum principal amount equal to (a) if being paid in whole, the Obligations and (b) if being paid in part, (A) $1,000,000 and integral multiples of $500,000 in excess of that amount or (B) in an amount equal to the difference of the aggregate outstanding principal amount of the Notes on the date of such prepayment and the immediately subsequent Target Debt Balance. All such prepayments shall be made upon not less than three (3) Business Days' prior written notice, in each case given to Agent by 12:00 p.m. (New York, New York time) on the date required, which, upon receipt by the Agent, shall be promptly delivered to the Holders. Upon the giving of any such notice, the principal amount of the Notes specified in such notice shall become due and payable on the prepayment date specified therein. Any notice of prepayment described above may provide that such prepayment is conditioned upon the satisfaction of one of more conditions precedent. Any such voluntary prepayment shall be applied as specified in <u>Section 2.10</u>.

**Section 2.09.** <u>Mandatory Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>CF Sweep Dates</u>. On each "CF Sweep Date" as set forth in <u>Appendix C</u>, commencing with January 31, 2025, the Issuer shall prepay the Notes in an aggregate principal amount equal to the lesser of (i) the difference between (A) the aggregate outstanding principal amount of Notes and (B) the then current Target Debt Balance, in each case as of the date of such prepayment and (ii) Liquidity, calculated on a Distribution PF Basis, in excess of the Minimum Liquidity Amount.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Casualty Events</u>. Upon receipt by the Issuer or any of its Affiliates of any Net Casualty Event Proceeds in excess of $500,000 for any individual Casualty Event or series of related Casualty Events or $1,000,000 in the aggregate, the Issuer shall within three (3) Business Days after the date of receipt of such Net Casualty Event Proceeds prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of the Net Casualty Event Proceeds and/or, so (A) long as no Default or Event of Default has occurred and is continuing and (B) both (I) as of the date of delivery of the certificate of the Responsible Officer of the Issuer described in the proviso below and (II) as of the date of reinvestment of Net Casualty Event Proceeds (as evidenced with a certificate of the Responsible Officer as of the date of such reinvestment delivered by the Issuer to the Agent), the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00, in each case on a Pro Forma Basis, reinvest such Net Casualty Event Proceeds in make Investments in Oil & Gas Properties or Equity Interests of any entity with no material assets other than Oil and Gas Properties; <u>provided further</u> that promptly following any determination by the Issuer of an election to invest Net Casualty Event Proceeds pursuant to this <u>Section 2.09(b)</u>, the Issuer shall, within thirty (30) days after the receipt of such Net Casualty Event Proceeds, deliver to the Agent a certificate of a Responsible Officer of the Issuer specifying that the Issuer intends to reinvest such Net Casualty Event Proceeds; <u>provided</u> that, if any such Net Casualty Event Proceeds are not reinvested within three-hundred sixty (360) days, the Issuer shall prepay the Notes in an amount equal to the amount of any Net Casualty Event Proceeds from Casualty Event(s) that are not applied or (re-)invested as set forth in this <u>Section 2.09(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Issuance of Debt</u>. Upon receipt by or on behalf of any Note Party or any of their Subsidiaries of any cash proceeds from the incurrence of any Debt (other than Debt that is permitted hereunder) by such Person, the Issuer shall prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of such proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Asset Sales</u>. Upon receipt by the Issuer or any of its Affiliates of any Net Asset Sale Proceeds in excess of $1,000,000 for any non-ordinary course individual Asset Sale or series of related Asset Sales or $2,000,000 in the aggregate, the Issuer shall (i) within three (3) Business Days after the date of receipt of such Net Asset Sale Proceeds prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of the Net Asset Sale Proceeds and/or, so (A) long as no Default or Event of Default has occurred and is continuing and (B) both (I) as of the date of delivery of the certificate of the Responsible Officer of the Issuer described in the proviso below and (II) as of the date of reinvestment of Net Asset Sale Proceeds (as evidenced with a certificate of the Responsible Officer as of the date of such reinvestment delivered by the Issuer to the Agent), the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00, in each case on a Pro Forma Basis, reinvest such Net Asset Sale Proceeds in make Investments in Oil & Gas Properties or Equity Interests of any entity with no material assets other than Oil and Gas Properties; <u>provided further</u> that promptly following any determination by the Issuer of an election to invest Net Asset Sale Proceeds pursuant to this <u>Section 2.09(d)</u>, the Issuer shall, within thirty (30) days after the receipt of such Net Asset Sale Proceeds, deliver to the Agent a certificate of a Responsible Officer of the Issuer specifying that the Issuer intends to reinvest such Net Asset Sale Proceeds; <u>provided</u> that, if any such Net Asset Sale Proceeds are not reinvested within three-hundred sixty (360) days, the Issuer shall prepay the Notes in an amount equal to the amount of any Net Asset Sale Proceeds from Asset Sale(s) that are not applied or (re-)invested as set forth in this <u>Section 2.09(d)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Specified Equity Contribution</u>. Not later than five (5) Business Days following receipt by the Issuer of any Cure Amount in accordance with <u>Section 7.01(c)</u>, the Issuer shall prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of any such Cure Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Prepayment Notice</u>. All prepayments made in accordance with <u>Section 2.09(b)</u> through <u>Section 2.09(e)</u> shall be made upon not less than eight (8) Business Days' prior written notice (or such shorter period as may be consented to by the Requisite Holders, <u>provided</u>, that the time period for any right for the Holders to waive such prepayment pursuant to <u>Section 2.09(g)</u> shall be reduced accordingly), which notice shall be sent by the Agent to the Holders one (1) Business Day following receipt by the Agent thereof. Each such notice shall include the calculation of the amount of the applicable proceeds giving rise to the prepayment, as applicable, and refer to the section under this Agreement relating to such prepayment. In connection with any prepayment required under <u>Section 2.09(b)</u> through <u>Section 2.09(e)</u>, in the event that the Issuer shall subsequently determine that the actual amount received exceeded the amount set forth in such notice, the Issuer shall promptly make an additional prepayment of the Notes in an amount equal to such excess, and the Issuer shall concurrently therewith deliver to Agent a notice of prepayment demonstrating the calculation of such excess. Any notice of prepayment may provide that such prepayment is conditioned upon the satisfaction of one or more conditions precedent. Subject to <u>Section 2.09(g)</u>, the Issuer shall prepay the Notes on the date set forth in the applicable prepayment notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Holder Right to Waive</u>. Notwithstanding anything in this Agreement to the contrary, each Holder, in its sole discretion, may, but is not obligated to, waive the Issuer's requirements to make any prepayments pursuant to <u>Section 2.09(b)</u> through <u>Section 2.09(e)</u> with respect to such Holder's Pro Rata Share of such prepayment. Upon the dates set forth in <u>Section 2.09</u> for the delivery of any such prepayment notice, Issuer shall promptly notify the Agent of the amount that is available to prepay the Notes. Promptly after the date of receipt of such notice, the Agent shall provide written notice (the "**First Offer**") to the Holders of the amount available to prepay the Notes. Any Holder declining such prepayment (a "**Declining Holder**") shall give written notice thereof to the Agent by 10:00 a.m. New York, New York time no later than three (3) Business Days prior to such prepayment date. The Agent shall promptly provide written notice (the "**Second Offer**") to the Holders other than the Declining Holders (such Holders being the "**Accepting Holders**") of the additional amount available (due to such Declining Holders' declining such prepayment) to prepay Notes owing to such Accepting Holders, such available amount to be allocated on a *pro rata* basis among the Accepting Holders that accept the Second Offer. Any Holders declining prepayment pursuant to such Second Offer shall give written notice thereof to the Agent by 10:00 a.m. New York, New York time one (1) Business Day prior to such prepayment date, and Agent shall promptly notify Issuer of the aggregate amount of the prepayment. Amounts remaining after the allocation of accepted amounts with respect to the First Offer and the Second Offer to Accepting Holders shall be retained by Issuer or the relevant Subsidiary for working capital and general corporate purposes, subject to the other covenants contained in this Agreement. For the avoidance of doubt, any Holder or Accepting Holder that does not deliver a notice declining the applicable payment by the dates and times set forth above shall be deemed to have accepted such prepayment offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Redemption Offer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon the occurrence of the sale of all or substantially all the properties of the Note Parties and their Restricted Subsidiaries, taken as a whole, or a Change in Control, the Issuer shall make an offer to repurchase all the Holders' Notes pursuant to an irrevocable offer ("**Redemption Offer**") on the terms set forth in this <u>Section 2.09(h)</u>; <u>provided</u> that such notice may be conditioned on the consummation of the transactions described in such notice. In the Redemption Offer, Issuer will (A) offer to make a cash payment (a "**Redemption Payment**") equal to the amount that would have been payable with respect to such repurchased Notes had

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the Issuer prepaid such Notes pursuant to <u>Section 2.08 plus</u>, for the avoidance of doubt, the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or the Prepayment Fee, as applicable, in each case pursuant to <u>Section 2.11(g)</u> and (B) set forth the date for such purchase, which shall be the date when such transaction is consummated, in which case it shall be the next Business Day thereafter (the "Redemption Purchase Date"). No less than three (3) Business Days prior to the Redemption Purchase Date, the Issuer will send an irrevocable written notice to each Holder (<u>provided</u> that such notice may be conditioned on the consummation of the transactions described in such notice), with a copy to the Agent, describing the transaction or transactions that constitute the sale of all or substantially all the properties of the Note Parties and their Restricted Subsidiaries, taken as a whole, or a Change of Control (as applicable) and stating:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) that the Redemption Offer is being made pursuant to this <u>Section 2.09(h)</u> and that the Issuer is repurchasing all outstanding Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the purchase price and the Redemption Purchase Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) that, unless the Issuer defaults in the payment of the Redemption Payment, all Notes will cease to accrue interest after the Redemption Purchase Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Issuer will, no later than 12:00 p.m. (New York, New York time) on the Redemption Purchase Date deposit with the Agent an amount equal to the Redemption Payment in respect of all Notes outstanding.

Upon the giving of any such notice, the principal amount of all of the Holders' Notes shall become due and payable on the Redemption Purchase Date (<u>provided</u> that any notice described above may provide that such Redemption Payment is conditioned upon the satisfaction of one or more conditions precedent). Upon receipt of the Redemption Payment from Issuer, the Agent will promptly wire transfer (based on each Holder's wire transfer instructions, which each Holder shall have provided to the Agent (along with completion of Agent's funds transfer requirements) at least five (5) Business Days prior to the Redemption Purchase Date) to each Holder of Notes the Redemption Payment for such Notes. Any Note paid in full will cease to accrue interest on and after the Redemption Purchase Date, unless the Issuer defaults in making the Redemption Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding any provision to the contrary, in lieu of the Issuer making a Redemption Offer (A) a third party may make the Redemption Offer in the manner, at the time and otherwise in compliance with the requirements set forth in <u>Section 2.09(f)</u> hereof applicable to a Redemption Offer made by the Issuer and purchases all Notes outstanding, or (B) in connection with or in contemplation of the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, the Issuer may make an irrevocable offer to purchase (an "**Alternate Offer**") all Notes outstanding at a cash price equal to or higher than the Redemption Payment and purchase all Notes outstanding in accordance with the terms of the Alternate Offer prior to the time when the payment by the Issuer would be required pursuant to a Redemption Offer. Notwithstanding anything to the contrary contained herein, a Redemption Offer or Alternate Offer may be made in advance of the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, conditioned upon the consummation of such sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, if a definitive agreement is in place for the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control at the time the Redemption Offer or Alternate Offer is made.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Agreement, the Issuer will comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations described in this Agreement by virtue thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) For the avoidance of doubt, the Issuer may, at its option, prepay all of the Notes pursuant to the provisions of <u>Section 2.08</u> (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or the Prepayment Fee, as applicable, due thereunder) in lieu of making a Redemption Offer pursuant to this <u>Section 2.09(h)</u>.

**Section 2.10.** <u>Application of Payments</u>. Any payment of any Note made pursuant to <u>Sections 2.07</u>, <u>2.08</u>, or <u>2.09</u> shall be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to each of the Agent and Collateral Agent in their capacities as such and Agent-related Indemnitees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations, constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section 11.03</u> or the other Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes being repaid or prepaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u> resulting from the prepayment of principal under <u>clause (e)</u> below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>fifth</u>, *pro rata* to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Issuer at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>sixth</u>, pro rata to any other Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Issuer or as otherwise required by any Governmental Requirement.

**Section 2.11.** <u>General Provisions Regarding Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments by the Issuer of principal, interest, fees and other Obligations shall be made in Dollars in same day funds without recoupment, setoff, counterclaim or other defense, and delivered to Agent not later than 1:00 p.m. (New York, New York time) on the date due to Agent's Account for the account of the Holders; the Agent shall give the Holders prompt written notice of amounts due, but not received by the Agent, on such due date and at such time. Funds received by Agent after that time on such due date may be deemed by the Requisite Holders to have been paid by the Issuer on the next Business Day for the purposes of calculating interest thereon.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All prepayments in respect of the principal amount of any Note shall be accompanied by payment of accrued interest on the principal amount being repaid or prepaid and other amounts due and payable thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Agent shall promptly distribute by wire transfer to each Holder to the account indicated in writing to Agent by each applicable Holder, such Holder's applicable Pro Rata Share of all payments and prepayments of principal and interest due hereunder, together with all other amounts due thereto, including all fees payable with respect thereto, to the extent received by Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Whenever any payment to be made hereunder shall be stated to be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Agent may, at the direction of the Requisite Holders, deem any payment by or on behalf of the Issuer hereunder that is not made in same day funds prior to 1:00 p.m. (New York, New York time) to be a non-conforming payment. Any such payment may be deemed by the Requisite Holders to have been received by Agent on the later of (i) the time such funds become available funds and (ii) the applicable next Business Day. Interest and fees shall continue to accrue on any principal as to which a non-conforming payment is made until such funds become available funds (but in no event less than the period from the date of such payment to the next succeeding applicable Business Day) at the applicable rate determined pursuant to <u>Section 2.06(a)</u> from the date such amount was due and payable until the date such amount is paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If an Event of Default shall have occurred and not otherwise been waived, all payments or proceeds received by Agent hereunder in respect of any of the Obligations shall be applied <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Agent, the Collateral Agent and Agent-related Indemnitees (including any costs and expenses related to foreclosure or realization upon, or protecting, Collateral) in its capacity as such, <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section 11.03</u> or the other Note Documents, <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes, <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u> resulting from the prepayment of principal under clause fifth below), <u>fifth</u>, pro rata to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Issuer at such time, <u>sixth</u>, pro rata to any other Obligations, and <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Issuer or as otherwise required by any Governmental Requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Make-Whole Amount; Prepayment Fee</u>. Upon any prepayment of the Notes (except for any prepayment made pursuant to <u>Section 2.07</u> or <u>Section 2.09(a)</u> or <u>Section 2.09(b)</u> or <u>Section 2.09(e)</u>), whether such prepayment occurs as a result of an acceleration of the Notes pursuant to <u>Section 9.01</u> (whether automatic or optional acceleration) following an Event of Default, at the Issuer's option or otherwise), the Issuer shall make an additional payment to the Agent for the account of the Holders in an aggregate amount equal to (i) if such prepayment or acceleration occurs on or prior to March 31<u>June 23</u>, 2027 (the "**Make-Whole Expiry Date**"), the Make-Whole Amount determined for the Settlement Date

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with respect to such principal amount <u>plus</u> 2.0% of the principal of such prepaid or accelerated amount <u>plus</u> any accrued and unpaid interest and other amounts due and payable thereon or (ii) if such prepayment or acceleration occurs thereafter, a fee (the "**Prepayment Fee**"), in an amount equal to the product of (A) if such prepayment or acceleration occurs following the Make-Whole Expiry Date and on or prior to March 31<u>June 23</u>, 2028, 2.00% of the principal of such prepaid or accelerated amount and (B) if such prepayment occurs after March 31<u>June 23</u>, 2028, 0.00% of such prepaid or accelerated amount, <u>plus</u>, in each case for clause (ii), any accrued and unpaid interest and other amounts due and payable thereon. The Agent shall have no obligation to calculate or verify the calculations of the Make-Whole Amount or Prepayment Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Presentment of the Notes by the Holder is not a condition to receipt of payment on the Maturity Date or any earlier redemption.

**Section 2.12.** <u>Ratable Sharing</u>. The Holders hereby agree among themselves that if any of them shall, whether by voluntary payment (other than a voluntary prepayment of Notes purchased and applied in accordance with the terms hereof), through the exercise of any right of set off or banker's lien, by counterclaim or cross action or by the enforcement of any right under the Note Documents or otherwise, or as adequate protection of a deposit treated as cash collateral under the Code, receive payment or reduction of a proportion of the aggregate amount of principal, interest, fees and other amounts then due and owing to such Holder hereunder or under the other Note Documents (collectively, the "**Aggregate Amounts Due**" to such Holder) which is greater than the proportion received by any other Holder in respect of the Aggregate Amounts Due to such other Holder, then the Holder receiving such proportionately greater payment shall (a) notify Agent and each other Holder of the receipt of such payment and (b) apply a portion of such payment to purchase Notes (which it shall be deemed to have purchased from each seller of a Note simultaneously upon the receipt by such seller of its portion of such payment) in the ratable Aggregate Amounts Due to the other Holders so that all such recoveries of Aggregate Amounts Due shall be shared by all Holders in proportion to the Aggregate Amounts Due to them; <u>provided</u> that, if all or part of such proportionately greater payment received by such purchasing Holder is thereafter recovered from such Holder upon the bankruptcy or reorganization of the Issuer or otherwise, those purchases to that extent shall be rescinded and the purchase prices paid for such Notes shall be returned to such purchasing Holder ratably to the extent of such recovery, but without interest. The Issuer expressly consents to the foregoing arrangement and agrees (i) that any Holder of a Note so purchased may exercise any and all rights of banker's lien, set off or counterclaim with respect to any and all monies owing by the Issuer to that Holder with respect thereto as fully as if that Holder were owed the amount of the Note held by that Holder and (ii) to the extent it may effectively do so under applicable law, that any Holder acquiring a participation pursuant to the foregoing arrangements may exercise against the Issuer rights of setoff and counterclaim with respect to such participation as fully as if such Holder were a direct creditor of the Issuer in the amount of such participation. The provisions of this <u>Section 2.12</u> shall not be construed to apply to (A) any payment made by the Issuer pursuant to and in accordance with the express terms of this Agreement, or (B) any payment obtained by a Holder as consideration for the assignment of or sale of a participation in any of its Notes or Obligations to any assignee or participant, other than to the Issuer or any Subsidiary thereof (as to which the provisions of this <u>Section 2.12</u> shall apply).

**Section 2.13.** <u>Increased Costs</u>. Subject to the provisions of <u>Section 2.14</u> (which shall be controlling with respect to the matters covered thereby), in the event that any Holder or the Agent shall determine (which determination shall, absent manifest error, be final and conclusive and binding upon all parties hereto) that any Governmental Requirement, or any change therein or in the interpretation, administration or application thereof (including the introduction of any new law, treaty or governmental rule, regulation or order), or any determination of a court or Governmental Authority, in each case that becomes effective after the date hereof, or compliance by such Holder or the Agent with any guideline,

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request or directive issued or made after the date hereof by any central bank or other Governmental Authority or quasi-Governmental Authority (whether or not having the force of law): (a) subjects such Holder (or its Applicable Office) or the Agent to any additional Tax (excluding any Indemnified Tax, any Connection Income Tax and any Excluded Tax (other than a tax described in clause (a) of Tax on the Overall Net Income)) with respect to this Agreement or any of the other Note Documents or any of its obligations hereunder or thereunder or any payments to such Holder (or its Applicable Office) or the Agent of principal, interest, fees or any other amount payable hereunder or its deposits, reserves or capital attributable thereto; (b) imposes, modifies or holds applicable any reserve (including any marginal, emergency, supplemental, special or other reserve), special deposit, compulsory loan, FDIC insurance or similar requirement against assets held by, or deposits or other liabilities in or for the account of, or advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of such Holder or (c) imposes any other condition (other than with respect to a Tax matter) on or affecting such Holder (or its Applicable Office) or its obligations hereunder; and the result of any of the foregoing is to increase the cost to such Holder or the Agent of agreeing to purchase, purchasing or maintaining Notes hereunder or to reduce any amount received or receivable by such Holder (or its Applicable Office) or the Agent with respect thereto; then, in any such case, Issuer shall promptly pay to such Holder or the Agent, upon receipt of the statement referred to in the next sentence, such additional amount or amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise as such Holder shall reasonably determine) as may be necessary to compensate such Holder or the Agent for any such increased cost or reduction in amounts received or receivable hereunder. Such Holder or the Agent shall deliver to Issuer (and in the case of such Holder, with a copy to Agent) a written statement, setting forth in reasonable detail the basis for calculating the additional amounts owed to such Holder or the Agent under this <u>Section 2.13</u>, which statement shall be conclusive and binding upon all parties hereto absent manifest error; <u>provided</u> that the Issuer shall not be required to compensate such Holder pursuant to this <u>Section 2.13</u> for any increased costs or reductions incurred more than three hundred sixty-five (365) days prior to the date that such Holder delivers written notice to the Issuer pursuant to this <u>Section 2.13</u> setting forth such Holder's intention to claim compensation therefor; <u>provided</u>, <u>further</u>, that if the circumstances giving rise to such increased costs or reductions is retroactive, then the 365-day period referred to above shall be extended to include the period of retroactive effect thereof.

**Section 2.14.** <u>Taxes; Withholding, etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payments to Be Free and Clear</u>. All sums payable by or on account of any Note Party hereunder and under the other Note Documents shall (except to the extent otherwise required by law) be paid free and clear of, and without any deduction or withholding on account of, any Tax imposed, levied, collected, withheld or assessed by any Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Withholding of Taxes</u>. If any Withholding Agent is required by law (as determined in the good faith discretion of the applicable Withholding Agent) to make any deduction or withholding for or on account of any Tax from any sum paid or payable under any of the Note Documents: (i) the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay (or cause to be paid) any such Tax to the relevant Governmental Authority and (ii) if such Tax is an Indemnified Tax, the sum payable by such Note Party in respect of which the relevant deduction or withholding is required shall be increased to the extent necessary to ensure that after any such deduction or withholding of Indemnified Taxes (including such deductions and withholdings applicable to additional sums payable under this Section), the Agent or such Holder, as the case may be, and each of their Tax Related Persons, receives on the due date a net sum equal to what it would have received had no such deduction or withholding of Indemnified Taxes been required; <u>provided</u> that, for the avoidance of doubt, no such additional amount shall be required to be paid to any Holder or the Agent (including any of their Tax Related Persons) under <u>clause (ii)</u> above for, and Indemnified Taxes shall not include,

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any of the following Taxes, (A) in the case of the Agent or Holder (including any of their Tax Related Persons), any U.S. federal withholding Tax in effect and applicable (x) as of the date on which Agent or Holder becomes a party to this Agreement (except to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder's assignor (including to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder's assignor's Tax Related Persons) immediately before such Holder became a party to this Agreement), and (y) in the case of a new Tax Related Person that becomes a Tax Related Person of an existing Holder after the relevant date described in <u>(x)</u>, above, the date on which such new Tax Related Person becomes a Tax Related Person (except to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such existing Holder described in (x), above, (including to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such existing Holder's existing Tax Related Persons but only to the extent that such new Tax Related Person acquires the interests of such existing Tax Related Person) immediately before such new Tax Related Person became a Tax Related Person of such existing Holder), or (z) the date on which such Holder changes its Applicable Office (except to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder (including to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder's Tax Related Persons) immediately before it changed its Applicable Office), (B) any Tax on the Overall Net Income of the Holder or Agent (or any of their Tax Related Persons), (C) any U.S. Tax imposed under FATCA or (D) any Tax attributable to the Holder's or the Agent's failure to comply with <u>Section 2.14(e)</u> (all such amounts described in this proviso, "**Excluded Taxes**"). The Note Parties shall deliver to Agent official receipts (or certified copies of the receipts) or other evidence of such payment reasonably satisfactory to the Requisite Holders in respect of any Taxes payable hereunder within thirty (30) days after payment of such Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Taxes</u>. In addition, and without duplication, the Note Parties shall pay all Other Taxes to the relevant Governmental Authorities in accordance with applicable law. The Note Parties shall deliver to Agent official receipts (or certified copies of the receipts) or other evidence of such payment reasonably satisfactory to the Requisite Holders in respect of Other Taxes payable hereunder as soon as practicable after payment of such Taxes or Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification</u>. Without duplication of any Taxes covered by <u>Sections 2.14(b)</u> or <u>(c)</u>, the Note Parties shall indemnify the Agent and each Holder, within ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this <u>Section 2.14</u>) paid or incurred by the Agent or such Holder or their respective Tax Related Persons, as the case may be, relating to, arising out of, or in connection with any Note Document or any payment or transaction contemplated hereby or thereby, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority and all reasonable expenses and costs arising therefrom or with respect thereto. A certificate as to the amount of such payment or liability delivered to the Issuer by a Holder (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Holder, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Administrative Requirements; Forms Provision</u>. Each Holder that is a United States Person for U.S. federal income tax purposes shall deliver to the Issuer and the Agent, on or prior to the Closing Date (in the case of each Holder listed on the signature pages hereof on the Closing Date) or on or prior to the date of the Assignment Agreement pursuant to which it becomes a Holder (in the case of each other Holder), and at such other times as may be necessary in the determination of the Issuer or Agent (each in the reasonable exercise of its discretion), two executed copies of Internal Revenue Service ("**IRS**") Form W-9 certifying that such Holder is exempt from U.S. federal backup withholding Tax. Each Holder that is not a United States Person for U.S. federal income tax purposes (a "**Non-U.S. Holder**") shall, to the extent it is legally entitled to do so, deliver to the Issuer and the Agent (in such number of copies as shall be requested by the recipient), on or prior to the Closing Date (in the case of each Holder listed on the signature pages hereof on the Closing Date) or on or prior to the date of the

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Assignment Agreement pursuant to which it becomes a Holder (in the case of each other Holder), and at such other times as may be reasonably requested by the Issuer or Agent (each in the reasonable exercise of its discretion), whichever of the following described in <u>clauses (i)</u> through <u>(v)</u> below is applicable, accurately completed and in a manner reasonably acceptable to the Issuer and the Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Non-U.S. Holder claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Note Document, two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty, and (y) with respect to any other applicable payments under any Note Document, two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) two executed copies of IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of a Non-U.S. Holder claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Internal Revenue Code, (A) a certificate substantially in the form of <u>Exhibit I-1</u> to the effect that such Non-U.S. Holder is not a "bank" within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, a "10 percent shareholder" of the Issuer within the meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Internal Revenue Code (a "**U.S. Tax Compliance Certificate**") and (B) two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to the extent a Non-U.S. Holder is not the beneficial owner of a Note, two executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit I-2</u> or <u>Exhibit I-3</u>, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u> that if the Non-U.S. Holder is a partnership and one or more direct or indirect partners of such Non-U.S. Holder are eligible to claim the portfolio interest exemption, such Non-U.S. Holder shall provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit I-4</u> on behalf of each such direct and indirect partner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Non-U.S. Holder shall deliver to the Issuer and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Non-U.S. Holder becomes a Holder under this Agreement (and from time to time thereafter upon the reasonable request of the Issuer or the Agent), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Issuer or the Agent to determine the withholding or deduction required to be made; <u>provided</u>, <u>however</u>, notwithstanding anything to the contrary in this <u>Section 2.14(e)</u>, the completion, execution and submission of the documentation described in this <u>clause (v)</u> shall not be required if in the Holder's reasonable judgment such completion, execution of submission would subject such Holder to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Holder.

Each Holder required to deliver any forms, certificates or other evidence with respect to U.S. federal income tax withholding matters pursuant to this <u>Section 2.14(e)</u> and <u>Section 2.14(f)</u> hereby agrees, from time to time after the initial delivery by such Holder of such forms, certificates or other evidence, whenever a lapse in time or change in circumstances renders such forms certificates or other evidence

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obsolete or inaccurate in any respect, that such Holder shall promptly deliver to Agent and the Issuer two new executed copies of IRS Form W-8BEN, IRS Form W-8BEN-E, IRS Form W-8IMY or IRS Form W-8ECI (or any successor form(s) of any of the foregoing), and as applicable, a U.S. Tax Compliance Certificate properly completed and duly executed by such Holder, and such other documentation required under the Internal Revenue Code and reasonably requested by Agent or the Issuer to confirm or establish that such Holder is not subject to deduction or withholding of U.S. federal income Tax with respect to payments to such Holder under the Note Documents or is subject to deduction or withholding at a reduced rate, or notify Agent and the Issuer of its inability to deliver any such forms, certificates or other evidence. Notwithstanding anything to the contrary in this <u>Section 2.14(e)</u>, the completion, execution and submission of such documentation (other than such documentation set forth in clauses (i)-(iv) of this <u>Section 2.14(e)</u>) shall not be required if in the Holder's reasonable judgment such completion, execution or submission would subject such Holder to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Holder. On or before the Closing Date, (or in the case of a successor or replacement Agent, on or before the date on which such successor or replacement Agent becomes a party to this Agreement), U.S. Bank Trust Company, National Association (or such successor or replacement Agent), shall deliver to the Issuer two executed copies of IRS Form W-9 establishing that the Issuer can make payments to the Agents without deduction or withholding of any Taxes imposed by the United States, including Taxes imposed under FATCA. Each Holder and Agent agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Issuer and the Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If a payment made to a Holder under any Note Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Holder were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Holder shall deliver to the Issuer and the Agent at the time or times prescribed by law and at such time or times reasonably requested by the Issuer or the Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Issuer or the Agent as may be necessary for the Issuer and the Agent to comply with their obligations under FATCA and to determine that such Holder has complied with such Holder's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this <u>Section 2.14(f)</u>, "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

Each Holder agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Issuer and the Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Defined Term</u>. For purposes of this Section, the term "applicable law" includes FATCA.

**Section 2.15.** <u>Alternate Rate of Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If prior to the commencement of any Interest Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Term SOFR Reference Rate for such Interest Period; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Agent is advised by the Requisite Holders that Term SOFR Reference Rate for such Interest Period will not adequately and fairly reflect the cost to such Holders (or Holder) of its purchasing or maintaining their Notes (or its Note) for such Interest Period;

then the Agent shall give notice thereof to the Issuer and the Holders by written or electronic notice as promptly as practicable thereafter and, until the Agent notifies the Issuer and the Holders that the circumstances giving rise to such notice no longer exist, (A) any Notes requested to be issued and purchased on the first day of such Interest Period shall be issued and purchased as ABR Notes and (B) any outstanding Notes shall be converted, on the last day of the then-current Interest Period, to ABR Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any time (i) the Requisite Holders determine (which determination shall be conclusive and binding absent manifest error) that the circumstances set forth in <u>clause (a)</u> have arisen and such circumstances are unlikely to be temporary or (ii) the Requisite Holders determine (which determination shall be conclusive and binding absent manifest error) that the circumstances set forth in <u>clause (a)</u> have not arisen but either (w) the CME Term SOFR Administrator has made a public statement or published information that the CME Term SOFR Administrator has ceased or is insolvent (and there is no successor administrator that will continue publication of the Term SOFR Reference Rate), (x) the CME Term SOFR Administrator has made a public statement or has published information (or a public statement or information is published on its behalf) which states that Term SOFR Reference Rate will permanently or indefinitely cease to be published by it (and there is no successor administrator that will continue publication of the Term SOFR Reference Rate), (y) the supervisor for the CME Term SOFR Administrator, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the CME Term SOFR Administrator, a resolution authority with jurisdiction over the CME Term SOFR Administrator or a court or an entity with similar insolvency or resolution authority over the CME Term SOFR Administrator has made a public statement or has published information which states that the CME Term SOFR Administrator has ceased or is insolvent or the Term SOFR Reference Rate will permanently or indefinitely cease to be published or (z) the supervisor for CME Term SOFR Administrator or a Governmental Authority has made a public statement identifying or has published information which states that the Term SOFR Reference Rate is no longer representative or the Term SOFR Reference Rate may no longer be used for determining interest rates for notes or other comparable debt instruments, then the Requisite Holders and the Issuer (in consultation with the Agent) shall endeavor to establish an alternate rate of interest as a replacement to the Term SOFR Reference Rate that gives due consideration to the then prevailing or evolving market convention for determining a rate of interest for notes or other comparable debt instruments in the United States at such time and ensuring that Agent will be able to administer such alternate rate of interest, and the Requisite Holders, the Issuer and the Agent shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable; <u>provided</u> that the Requisite Holders and the Issuer shall use commercially reasonable efforts to ensure that such replacement meets the standards set forth under Section 1.1001-6 of the Proposed United States Treasury Regulations (or any successor Untied States Treasury Regulations or other official IRS guidance promulgated that supersedes such Proposed United States Treasury Regulations) so as not to be treated as a "modification" (and therefore an exchange) of any Notes for purposes of Section 1.1001-3 of the United States Treasury Regulations. For the avoidance of doubt, any minimum rate of interest applicable to the Term SOFR Reference Rate hereunder shall also apply to such alternate rate of interest unless otherwise agreed by the Requisite Holders. The Agent and Requisite Holders do not warrant or accept responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the rates in the definition of "Term SOFR Reference Rate" or with respect to any rate that is an alternative or replacement for or successor to any such rate (including, without limitation, any such alternate rate of interest established under this <u>Section 2.15(b)</u>, whether the composition or characteristics of any such alternative, successor or replacement interest rate will be similar to, or

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produce the same value or economic equivalence of, the existing interest rate being replaced or have the same volume or liquidity as did any existing interest rate prior to its discontinuance or unavailability) or the effect of any of the foregoing, or of any other related conforming changes to this Agreement. The Agent and Requisite Holders may select information sources or services in their reasonable discretion to ascertain any interest rate used in this Agreement, any component thereof, or rates referenced in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to the Issuer (and, in the case of Agent, any Holder) or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for selection of such source or service or for any error or calculation of any such rate (or component thereof) provided by any such information source or service. Until an alternate rate of interest shall be determined in accordance with this <u>clause (b)</u>, (x) any Notes requested to be issued and purchased shall be issued and purchased as ABR Notes and (y) any outstanding Notes shall be converted, on the last day of the then-current Interest Period, to ABR Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither Agent shall be under any obligation (i) to monitor, determine or verify the unavailability or cessation of the Term SOFR Rate (or other applicable benchmark rate), or whether or when there has occurred, or to give notice to any other transaction party of the occurrence of, any event or date on which the benchmark shall have transitioned or may no longer be available, (ii) to select, determine or designate any alternative, successor or replacement benchmark index, or whether any conditions to the designation of such a rate have been satisfied, (iii) to select, determine or designate any adjustment to the benchmark or the adjustment spread, or other modifier to any replacement or successor index or (iv) to determine whether or what changes are necessary or advisable, if any, in connection with any of the foregoing. Neither Agent shall be liable for any inability, failure or delay on its part to perform any of its duties set forth in this Agreement as a result of the unavailability of the Term SOFR Rate (or other applicable benchmark rate) and absence of a designated replacement benchmark rate, including as a result of any inability, delay, error or inaccuracy on the part of any other transaction party, including without limitation the Requisite Holders, in providing any direction, instruction, notice or information required or contemplated by the terms of this Agreement and reasonably required for the performance of such duties.

**Section 2.16.** <u>Incremental Notes.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms of <u>Section 2.16(b)</u>, the Issuer may from time to time request Incremental Commitments, <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Prior to implementing any new Incremental Commitments, the Issuer shall have provided a written notice to the Agent and the then-existing Holders (such notice, the "<u>Incremental Notes Notice</u>"), specifying the amount of Incremental Commitments being requested (the "<u>Incremental Target Amount</u>"), such amount not to exceed $35,000,000<u>100,000,000</u> in aggregate outstanding principal amount during the term of this Agreement <u>(the "Incremental Cap") (it being understood that $100,000,000 of the Incremental Cap has been used by the Second Amendment Incremental Notes)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) following receipt of the Incremental Notes Notice, then-existing Holders at such time may, within thirty (30) days of receipt by the Agent and such Holders of the Incremental Notes Notice (the "<u>Offer Deadline</u>"), deliver to the Issuer a written offer to provide the Incremental Commitments (the "<u>Incremental Notes Offer</u>"; the Holders providing the Incremental Notes Offer, "<u>Electing Holders</u>"), subject to <u>Section 2.16(a)(vi)</u> and <u>Section 2.16(b)</u>, in accordance with the terms and procedures set forth in this <u>Section 2.16</u>, which Incremental Notes Offer shall detail the economic and other material terms of the proposed Incremental Notes, including principal amount, amortization, call protection, maturity date, pricing and any other such term deemed material by such then-existing Holder;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) following receipt of the Incremental Notes Offer, the Issuer may, within five (5) Business Days of receipt of such Incremental Notes Offer, accept or decline such Incremental Notes Offer, subject to the terms and conditions contained herein (<u>provided</u>, that, if the Issuer does not respond to such Incremental Notes Offer within such five (5) Business Day period, the Issuer shall be deemed to have declined such Incremental Notes Offer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if the Issuer accepts such Incremental Notes Offer, then the Issuer and the Electing Holders shall use commercially reasonable efforts to consummate the transaction set forth in the Incremental Notes Offer in accordance with the terms thereof and this <u>Section 2.16</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any then-existing Holder at such time not responding to the Incremental Notes Notice prior to the Offer Deadline shall be deemed to have declined to provide Incremental Commitments and if any then-existing Holder declines to provide Incremental Commitments by an amount equal to such Holder's Pro Rata Share of such requested amount, any Holder electing to provide Incremental Commitments may elect to increase its Incremental Commitment by an amount equal to such then-existing Holder's Pro Rata Share of the aggregate declined portion of such requested increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) for the avoidance of doubt, the Issuer shall not be obligated to accept any Incremental Notes Offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Incremental Commitments and Incremental Notes shall be subject to the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate stated principal amount of such Incremental Notes ("<u>Incremental Indebtedness</u>") shall not exceed $35,000,000 and shall be in a minimum amount of $5,000,000 (<u>provided</u> that such amount may be less than $5,000,000 if such amount represents all remaining availability under the limit set forth in this <u>clause (i)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any such Incremental Indebtedness (A) shall rank pari passu in right of payment and security with, and have the benefit of the same or equivalent guarantees as, the Note Obligations in respect of the other Notes then outstanding, (B) for purposes of prepayments, shall be treated the same as the Initial Notes then outstanding, and (C) shall have the same terms as the Initial Notes then outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no Incremental Indebtedness shall have a final maturity date earlier than the then Maturity Date or a Weighted Average Life to Maturity shorter than the latest Weighted Average Life to Maturity of the Initial Notes then outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) as of the date of incurring such Incremental Indebtedness, after giving effect to the application of the proceeds thereof, the Note Parties and their respective Subsidiaries (on a consolidated basis) shall be Solvent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the satisfaction or waiver by the Holders providing such Incremental Indebtedness on or prior to the date of the incurrence of such Incremental Indebtedness of each of the conditions precedent set forth in <u>Section 3.02</u>.

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**ARTICLE III** 

**CONDITIONS PRECEDENT** 

**Section 3.01.** <u>Closing Date</u>. The obligation of each Holder to purchase Notes on the Closing Date is subject to the satisfaction, or waiver in accordance with <u>Section 11.06</u>, of the following conditions on or before the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Note Documents</u>. Subject to <u>Section 6.19</u>, each Holder and the Agents shall have received sufficient copies of each Note Document executed and delivered by each Note Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organizational Documents; Incumbency</u>. Each Holder and Agent shall have received (i) sufficient copies of each Organizational Document of the Issuer, and of each other Note Party, certified as of a recent date by the appropriate Governmental Authority, for each Holder, each dated the Closing Date or a recent date prior thereto; (ii) signature and incumbency certificates of the officers of the Issuer and of each other Note Party executing the Note Documents; (iii) resolutions of the Board of Directors, the manager(s) or member(s) or similar Governing Body of the Issuer and of each other Note Party approving and authorizing the execution, delivery and performance of this Agreement, the other Note Documents to which it is a party, certified as of the Closing Date by a Responsible Officer as being in full force and effect without modification or amendment; and (iv) a good standing certificate for the Issuer and each other Note Party from the applicable Governmental Authority in such Person's jurisdiction of incorporation, organization or formation and in each jurisdiction in which such Person is qualified as a foreign corporation or other entity to do business, each dated a recent date prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Consents</u>. Each of the Issuer, each other Note Party and their Subsidiaries shall have obtained all authorizations, consents and permits from any Governmental Authority and all consents of other Persons, in each case that are necessary or reasonably deemed by Agent and the Requisite Holders to be advisable in connection with the Transactions and each of the foregoing shall be in full force and effect and in form and substance reasonably satisfactory to Agent and the Requisite Holders. All applicable waiting periods shall have expired without any action being taken or threatened by any competent authority that would restrain, prevent or otherwise impose adverse conditions on the Transactions and no action, request for stay, petition for review or rehearing, reconsideration, or appeal with respect to any of the foregoing shall be pending, and the time for any applicable agency to take action to set aside its consent on its own motion shall have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Purchase Date</u>. The date of purchase of the Notes shall be a Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Initial Reserve Report; Acquired Assets Reserve Report; Title to Oil and Gas Properties</u>. The Agent and the Requisite Holders shall have received (i) the Initial Reserve Report, (ii) the Acquired Assets Reserve Report and (iii) title information (including usual and customary title opinions, title reports and landman certificates in the Issuer's possession or generated by the Issuer for the Agent and Requisite Holders) setting forth the status of title to at least 90% of PV-10 of the Oil and Gas Properties in the Acquired Assets Reserve Report and the Initial Reserve Report, on a consolidated basis, consistent with usual and customary standards for the geographic regions in which such Oil and Gas Properties are located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Real Property Collateral</u>. Subject to <u>Section 6.19</u>, the Agents and the Requisite Holders shall have received a Mortgage encumbering each Mortgaged Property in favor of the Collateral Agent, duly executed and acknowledged by each Note Party that is the owner of or holder of any interest in such Mortgaged Property, and otherwise in form for recording in the recording office of each applicable jurisdiction where each such Mortgaged Property is deemed located and that will, when properly

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recorded (or when the applicable financing statements related thereto are properly filed or such other actions needed to perfect are taken) create a valid, perfected first priority security interest (after giving effect to Excepted Liens identified in <u>clauses (a)</u> through <u>(d)</u> and <u>(f)</u> of the definition thereof, but subject to the provisos at the end of such definition) on at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the Acquired Assets Reserve Report and the Initial Reserve Report, on a consolidated basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Personal Property Collateral</u>. In order to create in favor of the Collateral Agent, for the benefit of the Holders a valid, perfected first priority security interest in all personal property Collateral of the Note Parties, the Agents shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) evidence reasonably satisfactory to Agents and the Requisite Holders of the compliance by each Note Party with its respective obligations under the Collateral Documents to which it is party (including its obligation to deliver UCC financing statements, originals of securities, instruments and chattel paper); and

(ii)(A) the results of a recent search, by a Person satisfactory to the Requisite Holders, of all effective UCC financing statements made with respect to any personal or mixed property of the Issuer and each Note Party in the applicable jurisdictions, together with copies of all such filings disclosed by such search that will not be terminated on the Closing Date and (B) UCC termination statements for filing in all applicable jurisdictions as may be necessary to terminate any effective UCC financing statements disclosed in such search that do not constitute Liens permitted under <u>Section 7.03</u> or Excepted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Evidence of Insurance</u>. The Holders shall have received evidence satisfactory to them in their reasonable discretion that all insurance required to be maintained pursuant to <u>Section 6.06</u> is in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Evidence of Swap Agreements</u>. The Holders shall have received evidence satisfactory to them in their reasonable discretion that all Swap Agreements required to be maintained pursuant to <u>Section 6.20</u> are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Opinions of Counsel to Note Parties</u>. Agents and the Holders shall have received executed copies of the favorable written opinions of (i) Weil Gotshal & Manges LLP, counsel for the Issuer and the Note Parties and (ii) to the extent any Mortgages are delivered on the Closing Date, Steptoe & Johnson PLLC and Liskow & Lewis, APLC, as applicable, each as local counsel for the Issuer and the Note Parties, in each case dated as of the Closing Date and in form and substance reasonably satisfactory to the Agent and Requisite Holders (and the Issuer and each Note Party hereby instructs such counsel to deliver such opinions to Agents on behalf of the Holders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Expenses</u>. The Issuer shall have paid to Agents and the Holders all amounts (invoiced at least two (2) Business Days prior to the Closing Date (or such shorter time reasonably acceptable to the Issuer) with reasonable detail) required to be paid pursuant to <u>Section 11.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Solvency Certificate</u>. On the Closing Date, Agent shall have received a Solvency Certificate from a Financial Officer substantially in the form of <u>Exhibit E</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Closing Date Certificate</u>. The Issuer shall have delivered to Agent and the Holders an executed Closing Date Certificate, together with all attachments thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>[Reserved].</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>[Reserved].</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>No Material Adverse Effect</u>. Since December 31, 2023, no event, change or condition shall have occurred that has caused or could reasonably be expected to result in, either individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Funds Flow</u>. Agent shall have received at least one (1) Business Day prior to the Closing Date the Flow of Funds, in form and substance reasonably satisfactory to the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Initial Note Purchase Notice</u>. Agent shall have received a fully-executed Note Purchase Notice at least seven (7) Business Days prior to the Closing Date (or such earlier date as the Holders may agree in their sole discretion (by notice to the Agent)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Other Debt; Payoff of Existing Credit Facility</u>. (i) The Requisite Holders shall be satisfied that the Note Parties and their Subsidiaries have no outstanding Debt except for Debt permitted pursuant to <u>Section 7.02(b)</u> and the Note Parties shall not be in default with respect to such Debt and (ii) the Holders shall have received (A) a duly executed payoff letter, in form and substance reasonably satisfactory to Holders, with respect to the Existing Credit Facility which shall set forth the amount necessary to repay all Indebtedness and discharge all obligations, in each case, under the Existing Credit Facility and (B) evidence reasonably acceptable to the Holders that all Liens and guarantees under the Existing Credit Facility shall have been released (including, without limitation, the Holder's receipt of lien release documents and UCC termination statements in connection therewith) (or substantially concurrently with the funding of the Notes on the Closing Date shall be released).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Financial Statements</u>. The Holders shall have received an unaudited consolidated pro forma balance sheet of the Issuer and its Consolidated Subsidiaries as of the Closing Date (giving effect to the Transactions on the Closing Date) (collectively, the "**Initial Financial Statements**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Lease Operating Statements</u>. The Holders shall have received monthly production and accounting lease operating statements for each calendar month for each of the Fiscal Quarters ended after June 30, 2024 and at least forty-five (45) days prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Fees</u>. The Issuer shall have paid any other amounts owed under and as set forth in the Fee Letter and the Agent Fee Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>No Default or Event of Default; Representations and Warranties</u>. On the Closing Date after giving effect to the Transactions, (i) no Default or Event of Default shall have occurred and be continuing, and (ii) all representations and warranties made by the Note Parties contained herein or in the other Note Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the Closing Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Know Your Customer</u>. Agents and the Holders shall have received, at least five (5) Business Days (or such shorter period as the Agents may agree) prior to the Closing Date, all documentation and other information required by regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including, without limitation, the USA PATRIOT Act and, to the extent the Issuer qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to the Issuer, that has been reasonably requested by Holders in writing to the Issuer at least ten (10) Business Days prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Specified Acquisition Agreement</u>. The Agent and the Holders shall have received a certificate from a Financial Officer of the Issuer dated as of the Closing Date certifying (i) that attached thereto is a true and correct fully-executed copy of the Specified Acquisition Agreement (including all amendments, exhibits and schedules thereto) and (ii) the Specified Acquisition has been consummated in accordance with its terms substantially concurrently with the purchase of the Notes under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Unrestricted Cash</u>. As of the Closing Date, the Issuer and its Restricted Subsidiaries shall have Unrestricted Cash in an amount equal to or greater than $3,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Officer's Certificate</u>. The Issuer shall have delivered to Agent and the Holders a certificate of a Financial Officer of the Issuer certifying as to matters set forth in <u>Section 3.01(c)</u>, <u>Section 3.01(o)</u>, <u>Section 3.01(p)</u>, <u>Section 3.01(q)</u>, <u>Section 3.01(x)</u> and <u>Section 3.01(aa)</u>.

Agent (at the direction of the Requisite Holders) shall notify the Issuer and the Holders of the Closing Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Holders to purchase Notes hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to <u>Section 11.06</u>) at or prior to 5:00 p.m., New York, New York time, on September 17, 2024 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

Without limiting the generality of the provisions of <u>Section 10.03</u>, for purposes of determining compliance with the conditions specified in this <u>Section 3.01</u>, each Holder as of the Closing Date shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required hereunder to be consented to or approved by or acceptable or satisfactory to a Holder unless the Agent shall have received written notice from such Holder prior to the Closing Date specifying its objection thereto.

**ARTICLE IV** 

**REPRESENTATIONS AND WARRANTIES** 

In order to induce the Agents and Holders to enter into this Agreement and induce the Holders to purchase their respective Notes, the Note Parties represent and warrant to the Agents and each Holder the following:

**Section 4.01.** <u>Organization; Powers</u>. Each of the Note Parties and their Restricted Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority, and has all material governmental licenses, authorizations, consents and approvals necessary, to own its assets and to carry on its business as now conducted, and is qualified to do business in, and is in good standing (if applicable) in, every jurisdiction where such qualification is required by Governmental Requirement, except where failure to have such licenses, authorizations, consents, approvals or qualifications could not reasonably be expected to have a Material Adverse Effect.

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**Section 4.02.** <u>Authority; Enforceability</u>. The Transactions are within the Note Party's and each Restricted Subsidiary's corporate, limited liability company or partnership powers and have been duly authorized by all necessary corporate, limited liability company or partnership action, as applicable, and, if required, stockholder, member or manager action (including, without limitation, any action required to be taken by any class of directors or managers of the Note Parties or any other Person, whether interested or disinterested, in order to ensure the due authorization of the Transactions). Each Note Document to which each Note Party and each Restricted Subsidiary is a party has been duly executed and delivered by the Note Party and such Restricted Subsidiary and constitutes a legal, valid and binding obligation of the Note Party and such Restricted Subsidiary, as applicable, each enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

**Section 4.04.** <u>Financial Condition; No Material Adverse Effect</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Since the December 31, 2023, there has been no event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the Note Parties nor any Restricted Subsidiary has on the Closing Date any Material Debt (including Disqualified Capital Stock) or any contingent liabilities, off-balance sheet liabilities or partnerships, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments.

**Section 4.05.** <u>Litigation</u>. There are no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Issuer, threatened in writing against the Note Parties or any Restricted Subsidiary which are not fully covered by insurance (except for customary deductibles) (i) which individually or in the aggregate, if adversely determined, could reasonably be expected to result in liability exceeding $2,500,000, or (ii) that involve any Note Document or the Transactions. None of the Note Parties or any of their Restricted Subsidiaries is in violation of any order, writ, injunction or any decree of any Governmental Authority which individually or in the aggregate, if adversely determined, could reasonably be expected to result in liability exceeding $2,500,000.

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**Section 4.06.** <u>Environmental Matters</u>. Except for such matters that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties and their Restricted Subsidiaries and each of their respective Properties and respective operations thereon are and have been in compliance with all applicable Environmental Laws; and none of the Note Parties and their Restricted Subsidiaries has received notice of, any conditions, events, or incidents in connection with any such Properties that would reasonably be expected to interfere with or prevent such compliance or continued compliance with Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties and their Restricted Subsidiaries have obtained all Environmental Permits required for their respective operations and respective ownership of their Properties, with all such Environmental Permits being currently in full force and effect, and none of Note Parties or their Restricted Subsidiaries has received any written notice or otherwise has knowledge that any such existing Environmental Permit will be revoked or that any application for any new Environmental Permit or renewal of any existing Environmental Permit will be protested or denied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no Environmental Claims or other claims, demands, suits, orders, inquiries or proceedings concerning any violation of, or liability (including as a potentially responsible party) under, any applicable Environmental Laws pending or, to the Issuer's knowledge, threatened against the Note Parties or any Subsidiary or, to the Issuer's knowledge, any of their respective Properties or as a result of any operations at such Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) None of the Properties of the Note Parties or any Restricted Subsidiary contain or have contained any:(i) underground storage tanks requiring permits under Environmental Law; (ii) asbestos-containing or radioactive materials requiring removal pursuant to Environmental Law; (iii) landfills or dumps requiring an Environmental Permit pursuant to Environmental Law; (iv) hazardous waste management units as defined pursuant to RCRA or any comparable state law or (v) sites on or nominated for the National Priority List promulgated pursuant to CERCLA or any state remedial priority list promulgated or published pursuant to any comparable state law and Note Parties any Restricted Subsidiary is in substantial compliance with all applicable financial responsibility requirements of all Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There has been no Release or, to the Issuer's knowledge, threatened Release of Hazardous Materials at, on, under or from the Note Parties' or any Restricted Subsidiary's Properties in violation of, or as could reasonably be expected to result in liability under, Environmental Law, there are no investigations, remediations, abatements, removals, or monitorings of Hazardous Materials required under applicable Environmental Laws at such Properties and, to the knowledge of the Issuer, none of such Properties are adversely affected by any Release or threatened Release of a Hazardous Material originating or emanating from any other real property, and no Issuer or Restricted Subsidiary has filed or failed to file, any notice required of such Persons under applicable Environmental Law related to a reportable Release of Hazardous Materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Neither the Issuer nor any Restricted Subsidiary has received any written notice asserting an alleged liability or obligation of the Note Parties or any Restricted Subsidiary under any applicable Environmental Laws with respect to the investigation, remediation, abatement, removal, or monitoring of any Hazardous Materials at, under, or Released or threatened to be Released from the Note Parties' or any Restricted Subsidiary's Properties or any real properties offsite the Issuer's or any Restricted Subsidiary's Properties, including a letter or request for information under Section 104(e) of CERCLA (42 U.S.C. § 9604) or any comparable state law, and, to the Issuer's knowledge, there are no conditions or circumstances that could reasonably be expected to result in the receipt of such written notice;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) There has been no exposure of any Person or Property to any Hazardous Materials as a result of or in connection with the operations and businesses of Note Parties or any Restricted Subsidiary, including at any of the Note Parties' or its Restricted Subsidiaries' Properties that could reasonably be expected to form the basis for a claim for damages or compensation for which the Note Parties or any Restricted Subsidiary would be liable under Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the Issuer's knowledge, there are no conditions or circumstances associated with any of the Note Parties' or any Restricted Subsidiary's currently or previously owned or leased real properties that could reasonably be expected to give rise to the imposition of any material liabilities under any Environmental Laws against any Note Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Note Parties and their Restricted Subsidiaries have made available to the Holders complete and correct copies of all environmental site assessment reports, investigations, studies, analyses, and correspondence on environmental matters (including matters relating to any alleged non-compliance with or liability under Environmental Laws) requested by the Agent that are in any of the Note Parties' or the Restricted Subsidiaries' possession or control and relating to their respective Properties or operations.

**Section 4.07.** <u>Compliance with Laws and Agreements; No Defaults, Event of Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of Note Parties and each Restricted Subsidiary is in compliance with all Governmental Requirements applicable to it and its Property and all agreements and other instruments binding upon it or its Property, and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business as presently conducted in each case, except where such non-compliance would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Default or Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Material Contract is in full force and effect, and is valid, binding and enforceable upon any Note Party party thereto and, to the knowledge of the Note Parties, upon each of the other parties thereto in accordance with their respective terms, in each case subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. Each Note Party party thereto is in compliance in all material respects with such agreements. The Issuer has delivered or made available to the Agent true, correct and complete copies of each Material Contract (including all amendments, supplements or other modifications thereto) in effect and not previously delivered or made available to the Agent.

**Section 4.08.** <u>Investment Company Act</u>. None of the Note Parties nor any Restricted Subsidiary is required to be registered as an "investment company" under the Investment Company Act of 1940, as amended.

**Section 4.09.** <u>Taxes</u>. Each of the Note Parties and their Restricted Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which the Note Parties or such Restricted Subsidiary, as applicable, has set aside on its books adequate reserves in accordance with GAAP or (b) to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Effect. No Tax Lien (other than Tax Liens that constitute Excepted Liens or Tax Liens whose existence would not reasonably be expected to result in a Material Adverse Effect) has been filed.

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**Section 4.10.** <u>ERISA</u>. Except for such matters that, individually or in the aggregate, could not reasonably be expected to have Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The applicable Note Parties, Restricted Subsidiaries and ERISA Affiliates have complied in all material respects with ERISA and, where applicable, the Internal Revenue Code regarding each Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Plan is, and has been, established and maintained in substantial compliance with its terms, ERISA and, where applicable, the Internal Revenue Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No act, omission or transaction has occurred with respect to a Plan which could reasonably be expected to result in imposition on the Note Parties, any Restricted Subsidiary or any ERISA Affiliate (whether directly or indirectly) of (i) either a civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502 of ERISA or a tax imposed pursuant to Chapter 43 of Subtitle D of the Internal Revenue Code or (ii) breach of fiduciary duty liability damages under Section 409 of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Full payment when due has been made of all amounts which the applicable Note Parties, Restricted Subsidiaries or ERISA Affiliates is required under the terms of each Plan or applicable law to have paid as contributions to such Plan as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Neither the Note Parties, the Restricted Subsidiaries nor any ERISA Affiliate sponsors, maintains, or contributes to an employee welfare benefit plan, as defined in Section 3(1) of ERISA that provides benefits to former employees of such entities and that may not be terminated by the Note Parties, a Restricted Subsidiary or any ERISA Affiliate in its sole discretion at any time without any material liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither the Note Parties, the Restricted Subsidiaries nor any ERISA Affiliate sponsors, maintains or contributes to, or has at any time in the six (6) year period preceding the Closing Date sponsored, maintained or contributed to, any employee pension benefit plan, as defined in Section 3(2) of ERISA, that is subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Internal Revenue Code.

**Section 4.11.** <u>Disclosure; No Material Misstatements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the other reports, financial statements, certificates or other information furnished by or on behalf of the Issuer or any Restricted Subsidiary to the Agent or any Holder or any of their Affiliates in connection with the negotiation of this Agreement or any other Note Document or delivered hereunder or under any other Note Document (as modified or supplemented by other information so furnished), taken as a whole, contains any untrue statement of material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading; <u>provided</u> that, with respect to projected financial information, the Issuer represents only that such information was prepared in good faith based upon

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assumptions believed by the Issuer to be reasonable at the time it being understood that (i) any such projected financial information is merely a prediction as to future events and its not to be viewed as fact, (ii) such projected financial information is subject to significant uncertainties and contingencies, many of which are beyond the control of the Issuer or any of its Subsidiaries and (iii) no assurance can be given that any particular projections will be realized and that actual results during the period or periods covered by any such projections may differ significantly from the projected results and such differences may be material. There are no statements or conclusions in any Reserve Report which are based upon or include materially misleading information or fail to take into account material information regarding the matters reported therein, it being understood that projections concerning volumes attributable to the Oil and Gas Properties of the Note Parties and their Restricted Subsidiaries and production and cost estimates contained in each Reserve Report are necessarily based upon professional opinions, estimates and projections and that the Note Parties and their Restricted Subsidiaries do not warrant that such opinions, estimates and projections will ultimately prove to have been accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the Closing Date, the information included in the Beneficial Ownership Certification is true and correct in all respects.

**Section 4.12.** <u>Insurance</u>. The Note Parties have, and have caused all of their Restricted Subsidiaries to have (a) all insurance policies sufficient for the compliance by each of them with all material Governmental Requirements and all material agreements and (b) insurance coverage in at least amounts and against such risk (including, without limitation, public liability) that are customarily insured against by business entities similarly situated and engaged in the same or a similar business for the assets and operations of the Note Parties and their Restricted Subsidiaries. Such policies provide adequate coverage from reputable and financially sound insurance companies in amounts sufficient to insure the assets and risks of each of the Note Parties and their Restricted Subsidiaries in accordance with prudent business practice in the industry of the Note Parties and their Restricted Subsidiaries. No Note Party has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers at a comparable rate. The Collateral Agent has been named as additional insureds in respect of such liability insurance policies and the Collateral Agent has been named as lender loss payee and mortgagee with respect to property loss insurance. None of the Note Parties or their Restricted Subsidiaries owns or holds any Building (as defined in the applicable Flood Insurance Regulation) or Manufactured (Mobile) Home (as defined in the applicable Flood Insurance Regulation) constituting Collateral for which such Person has not delivered to the Agents evidence reasonably satisfactory to the Requisite Holders that (x) such Person maintains flood insurance for such Building or Manufactured (Mobile) Home or (y) such Building or Manufactured (Mobile) Home is not located in a Special Flood Hazard Area (it being understood that Agent will promptly provide any such information received by it to the Holders).

**Section 4.13.** <u>Subsidiaries; Foreign Operations</u>. Except as set forth on <u>Schedule 4.13</u> or as disclosed in writing to the Agent (which shall promptly furnish a copy to the Holders), which shall be a supplement to <u>Schedule 4.13</u>, the Issuer has no Subsidiaries or Foreign Subsidiaries. <u>Schedule 4.13</u> identifies each Subsidiary as either a Restricted Subsidiary or Unrestricted Subsidiary. Each Subsidiary listed on <u>Schedule 4.13</u> is a Wholly-Owned Subsidiary. The Note Parties have no Foreign Subsidiaries and no Restricted Subsidiary owns any Oil and Gas Properties not located within the geographic boundaries of the United States of America and subject to the jurisdiction of the United States of America.

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**Section 4.14.** <u>Properties; Titles, Etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Note Parties and their Restricted Subsidiaries has good and defensible title (as used herein, such term has the meaning commonly ascribed thereto in the Oil and Gas Business) to the Oil and Gas Properties evaluated in the most recently delivered Reserve Report (except for those Oil and Gas Properties that have been disposed of since the date of such Reserve Report in accordance with this Agreement or leases which have expired in accordance with their terms) and valid title to all its material personal Properties, in each case, free and clear of all Liens except Liens permitted by <u>Section 7.03</u>. After giving full effect to the Excepted Liens, the Note Party or the Restricted Subsidiary specified as the owner owns the net interests in production attributable to the Hydrocarbon Interests as reflected in the most recently delivered Reserve Report (except for those Oil and Gas Properties that have been disposed of since the date of such Reserve Report in accordance with this Agreement or leases which have expired in accordance with their terms).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to any real Properties or personal Properties not subject of the preceding <u>clause (a)</u>, each of the Note Parties and their Restricted Subsidiaries have in all material respects (i) good and defensible title to, or valid leasehold or other interests in, its respective real Properties and (ii) good title to all of their personal Properties, in each case, free and clear of all Liens except Liens permitted by <u>Section 7.03</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as could not reasonably be expected to have a Material Adverse Effect, all leases and agreements necessary for the conduct of the business of the Note Parties and their Restricted Subsidiaries are valid and subsisting, in full force and effect, and there exists no default or event or circumstance which with the giving of notice or the passage of time or both would give rise to a default under any such lease or leases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The rights and Properties presently owned, leased or licensed by the Note Parties and their Restricted Subsidiaries including, without limitation, all easements and rights of way, if any, include all rights and Properties necessary to permit the Note Parties and their Restricted Subsidiaries to conduct their business in all material respects in the same manner as its business has been conducted prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All of the Properties of the Note Parties and their Restricted Subsidiaries which are reasonably necessary for the operation of their businesses are in good working condition and are maintained in accordance with prudent business standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Note Parties and each Restricted Subsidiary owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by the Note Parties and such Restricted Subsidiary does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. The Note Parties and their Restricted Subsidiaries either own or have valid licenses or other rights to use all databases, geological data, geophysical data, engineering data, seismic data, maps, interpretations and other technical information used in their businesses as presently conducted, subject to the limitations contained in the agreements governing the use of the same, with such exceptions as could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No eminent domain proceeding or taking has been commenced or, to the knowledge of any of the Issuer or any of its Subsidiaries, is contemplated with respect to all or any portion of the Property, except to the extent that such proceeding or taking has been previously disclosed by the Issuer in writing to the Agent pursuant to <u>Section 6.02(b).</u>

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**Section 4.15.** <u>[Reserved]</u>.

**Section 4.16.** <u>No Operations.</u> The Note Parties and their Restricted Subsidiaries (a) do not take Hydrocarbons attributable or allocable to their Oil and Gas Properties, in kind, and (b) do not engage in any material operating activities with respect to their Oil and Gas Properties

**Section 4.17.** <u>[Reserved]</u>

**Section 4.18.** <u>Swap Agreements and Qualified ECP Guarantor</u>. <u>Schedule 4.18</u>, as of the Closing Date, and thereafter included in the most recently delivered report required to be delivered by the Issuer pursuant to <u>Section 6.01(e)</u>, as of the date thereof, sets forth, a true and complete list of all Swap Agreements of the Note Parties and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark to market value thereof, all credit support agreements relating thereto (including any margin required or supplied) and the counterparty to each such agreement. The Note Parties are each a Qualified ECP Guarantor.

**Section 4.19.** <u>Use of Proceeds</u>. The proceeds of the Notes shall be used for the purposes set forth in <u>Section 2.04</u>. The Note Parties and their Restricted Subsidiaries are not engaged principally, or as one of its or their important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). No part of the proceeds of any Note will be used for any purpose which violates the provisions of Regulations T, U or X of the Board.

**Section 4.20.** <u>Solvency</u>. Immediately after giving effect to the Transactions, the Note Parties and their Subsidiaries (on a consolidated basis) are Solvent.

**Section 4.21.** <u>Anti-Corruption Laws, Sanctions and USA PATRIOT Act</u>. Each Note Party has implemented and maintains in effect policies and procedures reasonably designed to promote compliance by the Note Parties and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Note Parties and, to the knowledge of the Note Parties, their respective officers, directors, employees and agents are in compliance with the USA PATRIOT Act, Anti-Corruption Laws and applicable Sanctions. None of (a) the Note Parties or any of their respective directors, officers or employees, or (b) to the Issuer's knowledge, any agent of the Note Parties that will act in any capacity in connection with or benefit from the proceeds of the Notes, is (i) a Sanctioned Person, or (ii) engaged in any activity that would reasonably be expected to result in any Note Party being designated a Sanctioned Person. No direct use of proceeds of the Notes or other transaction by the Note Parties contemplated by this Agreement will unlawfully violate any Anti-Corruption Law or applicable Sanctions.

**Section 4.22.** <u>Affected Financial Institutions</u>. No Note Party is an Affected Financial Institution.

**Section 4.23.** <u>Collateral Documents</u>. The Collateral Documents are effective to create in favor of the Collateral Agent, for the benefit of the Secured Parties, a legal, valid and enforceable security interest in the Collateral and proceeds thereof, subject, in the case of enforceability, to applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally and to general principles of equity and principles of good faith and fair dealing. The Obligations are and shall be at all times secured by legal, valid and enforceable, and upon recordation shall be, perfected first priority Liens in favor of the Collateral Agent, covering and encumbering the Collateral (subject only to permitted Liens under <u>Section 7.03</u>).

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**Section 4.24.** <u>Senior Debt</u>. The Obligations shall constitute senior indebtedness of the Note Parties under and as defined in any documentation documenting any junior indebtedness of the Note Parties.

**Section 4.25.** <u>Private Offering</u>. Neither the Note Parties nor anyone acting on their behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other than the Holders, each of which has been offered the Notes at a private sale for investment. Neither the Note Parties nor anyone acting on their behalf has (a) solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Notes by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D of the Securities Act, or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act, or (b) taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.

**ARTICLE V** 

**REPRESENTATIONS OF HOLDERS** 

In order to induce Issuer to issue and sell the Notes to the Holders, each Holder hereby represents and warrants to Issuer, on the Closing Date and acknowledges as follows:

**Section 5.01.** <u>Organization and Standing</u>. Such Holder is a corporation or other entity duly incorporated or formed and validly existing under the laws of the jurisdiction of its incorporation or formation.

**Section 5.02.** <u>Authorization; Enforceability</u>. Such Holder has the full power and authority to enter into this Agreement, and (assuming due execution by the other parties hereto) this Agreement constitutes its valid and legally binding obligation, enforceable against it in accordance with its terms, except to the extent the enforceability thereof may be limited by (a) the effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other similar laws affecting creditors' rights generally, (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (c) implied covenants of good faith and fair dealing.

**Section 5.03.** <u>Investment</u>. Such Holder is acquiring each such Note solely for its own account, for investment purposes, with no intention of distributing or reselling such Note in any public offering or in any transaction that would be in violation of applicable securities laws of the United States or any other applicable jurisdiction or any state or province thereof, without prejudice, however, to such Holder's right at all times to sell or otherwise dispose of all or any part of the Notes under an effective registration statement under the Securities Act and applicable state securities or "blue sky" laws (it being understood that Issuer has no obligation or intention to undertake any such registration), or an exemption from such registration requirements and in compliance with applicable securities laws. Such Holder has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Notes by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D of the Securities Act, or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act.

**Section 5.04.** <u>Accredited Investor</u>. Such Holder, at the time that it committed to enter into this Agreement was, and now is, an "accredited investor" as that term is defined in Rule 501 of Regulation D under the Securities Act.

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**Section 5.05.** <u>No Resale or Repurchase</u>. No person has made to such Holder any written or oral representations (a) that any person will resell or repurchase the Notes (except in accordance with the Organizational Documents of Issuer), (b) that any person will refund the purchase price of the Notes, or (c) as to the future price or value of the Notes.

**Section 5.06.** <u>Private Placement</u>. Such Holder understands that the Notes are being offered for sale only on a "private placement" basis and that the sale and delivery of the Notes is conditional upon such sale being exempt from the requirements as to the filing of a prospectus or registration statement or delivery of an offering memorandum or upon the issuance of such orders, consents or approvals as may be required to permit such sale without the requirement of filing a prospectus or delivering an offering memorandum and, as a consequence, (a) such Holder is restricted from using most of the civil remedies available under applicable securities legislation, (b) such Holder may not receive information that would otherwise be required to be provided to it under applicable securities legislation, and (c) Issuer is relieved from certain obligations that would otherwise apply under applicable securities legislation.

**Section 5.07.** <u>Knowledge and Experience</u>. Without limiting the force and effect of the representations and warranties of any party to a Note Document, such Holder (a) has such knowledge and experience in financial and business matters, as to enable it to evaluate the merits and risks of entering into this Agreement and receiving the Notes, (b) is able to bear the economic risk of the transaction, (c) is able to hold its interest indefinitely unless a subsequent disposition thereof is registered under the Securities Act or is exempt from registration and is completed in compliance with applicable securities laws, (d) has been independently advised as to restrictions with respect to trading in the Notes imposed by applicable securities laws, (e) confirms that no representation (written or oral) has been made to it (with respect to trading restrictions imposed by applicable securities laws) by or on behalf of Issuer or Agent with respect thereto, (f) has conducted its own investigation of the Issuer and the terms of the Note, (g) (i) confirms it has had access to information as it deemed necessary to make its decision to purchase the Notes, and (ii) has been offered the opportunity to ask questions of the Issuer and receive answers thereto, as it deemed necessary in connection with the decision to purchase the Notes and (h) acknowledges that it is aware of the characteristics of the Notes, and the risks relating to an investment therein.

**Section 5.08.** <u>No Materials</u>. Without limiting the representations and warranties set forth in the Note Documents, such Holder has not received or been provided with, nor has it requested, nor does it have any need to receive, any offering memorandum, any prospectus, sales or advertising literature describing or purporting to describe the business and affairs of Issuer which has been prepared for delivery to, and review by, prospective purchasers in order to assist them in making an investment decision in respect of the Notes.

**Section 5.09.** <u>Transfer Restrictions</u>. Such Holder acknowledges and agrees that none of the Notes has been registered under the Securities Act or the securities laws of any country or state, and none of them may be sold or otherwise transferred in the absence of an effective registration thereunder unless an exemption from registration is available. Such Holder also acknowledges and agrees that the Notes are subject to resale restrictions in the United States, may be subject to resale restrictions in jurisdictions other than the United States under applicable securities laws, and that any sale or transfer will be completed in compliance with applicable securities laws.

**Section 5.10.** <u>Offers and Sales Only in Certain Circumstances</u>. If such Holder decides to offer, sell, pledge or otherwise transfer any of the Notes, it will not offer, sell, pledge or otherwise transfer any of such Notes, directly or indirectly, unless: (a) the sale is made pursuant to registration of the Notes under the Securities Act; (b) the sale is made to the Issuer in accordance with <u>Section 2.09(g)</u>; (c) the sale is made outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S

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under the Securities Act and in compliance with applicable local securities laws and regulations; (d) the sale is made pursuant to the exemption from the registration requirements of the Securities Act provided by Rule 144 or Rule 144A thereunder, if available, and, in either case, in accordance with any applicable state securities or "blue sky" laws; or (e) the Notes are sold in any other transaction that does not require registration under the Securities Act or any applicable state securities or "blue sky" laws.

**Section 5.11.** <u>Subsequent Purchaser Notification</u>. Such Holder will take reasonable steps to inform, and cause each of its Affiliates and Related Funds that is a U.S. person (as defined in Section 902 of Regulation S under the Securities Act) to take reasonable steps to inform, any person acquiring Notes from such Holder, Affiliate or Related Fund, as the case may be, in the United States that the Notes (a) have not been and will not be registered under the Securities Act, (b) are being sold to them without registration under the Securities Act in reliance on Rule 144A or in accordance with another exemption from registration under the Securities Act and (c) may not be offered, sold or otherwise transferred except (i) to the Issuer in accordance with <u>Section 2.09(g)</u>, (ii) outside the United States in accordance with Regulation S and in compliance with applicable local securities laws and regulations or (iii) inside the United States in accordance with (A) Rule 144A to a person whom the seller reasonably believes is a qualified institutional buyer, as defined in Rule 144A ("**Qualified Institutional Buyer**") that is purchasing such Notes for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that the offer, sale or transfer is being made in reliance on Rule 144A or (B) pursuant to another available exemption from registration under the Securities Act.

**ARTICLE VI** 

**AFFIRMATIVE COVENANTS** 

Commencing on the Closing Date and until Payment in Full, each of the Note Parties covenants and agrees with the Holders and Agents that:

**Section 6.01.** <u>Financial Statements; Other Information</u>. The Issuer will furnish to the Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Annual Financial Statements</u>. Not later than ninety–five (95) days after the end of each Fiscal Year of the Issuer, its audited consolidated balance sheet and related statements of operations, members' equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all reported on by independent public accountants of recognized national standing (without a "going concern" or like qualification or exception and without any qualification, exception or explanatory paragraph as to the scope of such audit other than (x) a "going concern" or other qualification that results solely from the Maturity Date being scheduled to occur within one year from the time such opinion is delivered or (y) from any potential inability to satisfy any covenant in <u>Section 7.01</u> on a future date or in a future period), without qualification as to scope of audit to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Issuer and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Quarterly Financial Statements</u>. Not later than sixty-five (65) days after the end of each of the first three (3) Fiscal Quarters of each Fiscal Year (commencing with September 30, 2024) of the Issuer for each Fiscal Quarter ending thereafter, its consolidated balance sheet and related statements of operations, members' equity and cash flows as of the end of and for such Fiscal Quarter and the then elapsed portion of the Fiscal Year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous Fiscal Year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Issuer and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificate of Financial Officer – Compliance</u>. Concurrently with any delivery of financial statements under <u>Sections 6.01(a)</u> or <u>6.01(b)</u>, a certificate of a Financial Officer in substantially the form of <u>Exhibit D</u> hereto (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with <u>Section 7.01</u> (including setting forth the Issuer's reasonably detailed and certified calculations of the Consolidated Total Net Leverage Ratio and the Asset Coverage Ratio and demonstrating compliance with the applicable financial covenant requirement), (iii) setting forth any change in the legal name of the Note Parties that occurred (if any) during the applicable fiscal period, and (iv) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in <u>Section 4.04</u> and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certificate of Financial Officer – Swap Agreements</u>. Concurrently with any delivery of financial statements under <u>Sections 6.01(a)</u> and <u>6.01(b)</u>, a certificate of a Financial Officer, in form satisfactory to the Agent and the Requisite Holders, setting forth as of a recent date, a true and complete list of all Swap Agreements of the Issuer and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark-to-market value therefor (to the extent available), any new credit support agreements relating thereto not listed on <u>Schedule 4.18</u>, any margin required or supplied under any credit support document, and the counterparty to each such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Projections</u>. Concurrently with any delivery of financial statements under <u>Sections 6.01(a)</u>, a reasonably detailed consolidated budget for the then-current fiscal year (including a projected consolidated balance sheet of the Issuer and its Subsidiaries as of the end of such fiscal year, the related quarterly consolidated statements of projected cash flow, capital expenditures and income and a summary of the material underlying assumptions applicable thereto) (collectively, the "**Projections**"), which Projections shall have been prepared in good faith on the basis of the assumptions stated therein, which assumptions were believed to be reasonable at the time of preparation of such Projections, it being recognized by the Agent and the Holders that such Projections are as to future events and are not to be viewed as facts, the Projections are subject to significant uncertainties and contingencies, many of which are beyond the control of the Issuer and the Subsidiaries, that no assurance can be given that any particular Projections will be realized and that actual results during the period or periods covered by any such Projections may differ from the projected results and such differences may be material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Certificate of Insurer – Insurance Coverage</u>. Concurrently with any delivery of financial statements under <u>Section 6.01(a)</u>, a certificate of a Responsible Officer of the Issuer, certifying that (i) the insurance requirements of <u>Section 6.06</u> have been implemented and are being complied with, (ii) the Note Parties have paid or caused to be paid all insurance premiums then due and payable and (iii) the Note Parties are in compliance with the insurance policies, and attaching each certificate of insurance required pursuant to <u>Section 6.06</u>, and, if requested by the Agent or any Holder, all copies of the applicable policies and endorsements to the extent not previously delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Other Accounting Reports</u>. Promptly upon receipt thereof, a copy of each other report or letter submitted to the Note Parties or any of their Subsidiaries by independent accountants (other than customary and standard correspondence) in connection with any annual, interim or special audit made by them of the books of the Note Parties or any such Subsidiary, and a copy of any response by the Note Parties or any such Subsidiary, or the Board of Directors (or comparable Governing Body) of the Note Parties or any such Subsidiary, to such letter or report.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Lists of Purchasers</u>. To the extent the Note Parties take any material amount of Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, concurrently with the delivery of any Reserve Report, a list of all Persons purchasing Hydrocarbons from the Note Parties or any Restricted Subsidiary with respect to which such in-kind deliveries are taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Notice of Sales of Oil and Gas Properties and Termination of Swap Agreements</u>. In the event the Note Parties or any Subsidiary intends to sell, transfer, assign or otherwise dispose of (including pursuant to a Casualty Event) any Oil and Gas Properties (other than Hydrocarbons in the ordinary course of business) or any Equity Interests in any Subsidiary in accordance with <u>Section 7.09(d)</u> or <u>Section 7.09(k)</u>, in each case, in an aggregate amount in excess of $500,000, at least three (3) Business Days' (or such shorter time as the Requisite Holders may agree in their sole discretion) prior written notice of such disposition prior to consummation of such disposition (other than with respect to pursuant to a Casualty Event), including the price thereof and any other details thereof reasonably requested by the Requisite Holders. In the event that the Note Parties or any Subsidiary receives any notice of early termination of any material Swap Agreement to which it is a party from any of its counterparties, or any material Swap Agreement to which the Note Parties or any Subsidiary is a party is terminated, prompt written notice of the receipt of such early termination notice or such termination, as the case may be, together with a reasonably detailed description thereof and any other details thereof reasonably requested by the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Information Regarding Issuer and Guarantors</u>. Prompt written notice (and in any event within five (5) Business Days thereafter, or such later date as the Requisite Holders may agree in their sole discretion) of any change (i) in the Issuer's or any Guarantor's organizational name, (ii) in the location of the Issuer's or any Guarantor's chief executive office or principal place of business, (iii) in the Issuer's or any Guarantor's identity or organizational structure or in the jurisdiction in which such Person is incorporated or formed, (iv) in the Issuer's or any Guarantor's organizational identification number in such jurisdiction of organization, and (v) in the Issuer's or any Guarantor's federal taxpayer identification number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Notices of Certain Changes</u>. Promptly, but in any event within five (5) Business Days after the execution thereof (or such later date as the Requisite Holders may agree in their sole discretion), copies of any material amendment, modification or supplement to the certificate or articles of incorporation or formation, bylaws, certificate or articles of organization, regulations or limited liability company agreement, any preferred stock designation or any other Organizational Document of the Note Parties or any Restricted Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>SEC and Other Filings</u>. Promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed by the Note Parties or any Restricted Subsidiary with the SEC, or with any national securities exchange. Notwithstanding the foregoing, the Issuer shall in no event be required to deliver to, or otherwise provide or disclose to, any Holder any information for which the Issuer is requesting (assuming such request has not been denied), or has received, confidential treatment from the Commission, or any correspondence with the SEC. Any such document or report that the Issuer files with the SEC via the SEC's EDGAR system (or any successor thereto) shall be deemed to be delivered to the Holder for purposes of this Section 6.01(m) at the time such documents are filed via the EDGAR system (or such successor).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Beneficial Ownership Certification</u>. Promptly, but in no event later than five (5) Business Days of the occurrence of such change, written notice of any change in the information provided in the Beneficial Ownership Certification delivered to any Holder that would result in a change to the list of beneficial owners identified in such certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Free Cash Flow; Lease Operating Statements</u>. Not later than each "Applicable Updated LOS/CF Delivery Date" as set forth in <u>Appendix C</u>, commencing on April 20, 2025 (such certificate delivered on April 20, 2025, the "<u>First Amendment LOS/CF Certificate</u>"), deliver (i) a certificate of a Responsible Officer in substantially the form of <u>Exhibit K</u> setting forth reasonably detailed calculations of (A) (i) for each certificate delivered after the First Amendment LOS/CF Certificate, Free Cash Flow (Back) and (ii) Free Cash Flow (Forward), in each case for the related "Applicable CF Period" set forth in <u>Appendix C</u>, (B) Projected Cash Flow From Operating Activities for the then current "Applicable CF Period" and a summary of the material underlying assumptions applicable thereto, which Projected Cash Flow From Operating Activities shall have been prepared in good faith on the basis of the assumptions stated therein, (C) for each certificate delivered after the First Amendment LOS/CF Certificate, any Prior Period Adjustments, and (D) for each certificate delivered after the First Amendment LOS/CF Certificate, any other components of Free Cash Flow (Back) and Free Cash Flow (Forward) realized as of the date of the certificate, (ii) lease operating statements for the most recently ended fiscal quarter in form and detail substantially consistent with the lease operating statements delivered to Holders pursuant to <u>Section 3.01(v)</u> for each such fiscal quarter from the Oil and Gas Properties and other information reasonably requested by the Requisite Holders with reasonable advance notice (and which includes the volume of production and sales attributable to production (and the prices at which such sales were made and the revenues derived from such sales) for each such fiscal quarter from the Oil and Gas Properties, and sets forth the related ad valorem, severance and production taxes (if applicable), capital expenditures and lease operating expenses attributable thereto and incurred for each such fiscal quarter), in each case for this <u>Section 6.01(o)(ii)</u> certified by a Responsible Officer of the Issuer as presenting fairly in all material respects the information contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Free Cash Flow Utilizations.</u> In the event the Issuer or any Restricted Subsidiary intends to effect a Free Cash Flow Utilization, at least three (3) Business Days' (or such later date as the Requisite Holders may agree in their sole discretion) prior to such intended Free Cash Flow Utilization, deliver a certificate of a Responsible Officer in substantially the form of <u>Exhibit K</u> hereto setting forth reasonably detailed calculations of Distributable Free Cash Flow (after giving effect to such Free Cash Flow Utilization) for the "Applicable CF Period" set forth in <u>Appendix C</u> applicable to the calendar month during which such Free Cash Flow Utilization is proposed to be made (i.e., the applicable "Distribution Month" set forth in <u>Appendix C</u>). The calculations of Distributable Free Cash Flow shall use the Projected Cash Flow From Operating Activities reflected in the most recently delivered LOS/CF Certificate and will use other components of Free Cash Flow (Back) and Free Cash Flow (Forward) to the extent they have been realized prior to the date of the certificate of a Responsible Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Environmental, Social and Governance Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon notice from an operator of a Material Environmental and Social Incident occurs, (A) reasonably prompt notification, but in any event within fifteen (15) Business Days, of such Material Environmental and Social Incident, (B) concurrently deliver a brief statement of the remedial plan such operator has undertaken or plans to undertake to address such Material Environmental and Social Incident and (C) reasonably prompt notification, but in any event within fifteen (15) Business Days, of the completion of such remedial plan or the abandonment thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within sixty (60) days of request by the Requisite Holders, no more than once in any 12-month period, (A) a materially completed environmental, social and governance survey (an "**ESG Survey**") provided to the Issuer by the Requisite Holders in the form substantially consistent with the ESG Survey template provided by the Holders to the Issuer on August 20, 2024, but with the Issuer's previous year's responses updated by the Issuer, as applicable and (B) host a conference call or teleconference at a time mutually acceptable to the Issuer and the Requisite Holders to discuss the emissions and climate related policies and activities of the Issuer and its Restricted Subsidiaries and matters relating to the ESG Survey; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) reasonably promptly following request, any additional material information related to environmental, social and governance matters of the Issuer as the Agent or the Requisite Holders may reasonably request from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Other Requested Information</u>. Promptly following any request therefor, (i) such other information regarding the operations, business affairs and financial condition of the Note Parties or any Subsidiary (including, without limitation, any Plan sponsored by the Issuer or a Restricted Subsidiary and any reports or other information required to be filed with respect thereto under the Internal Revenue Code or under ERISA), or compliance with the terms of this Agreement or any other Note Document, as the Agent or any Holder may reasonably request; or (ii) information and documentation reasonably requested by the Agents or any Holder for purposes of compliance with applicable "know your customer" requirements under the USA PATRIOT Act, other applicable anti-money laundering laws or the Beneficial Ownership Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Material Contract Information</u>. Concurrently with any delivery of financial statements under <u>Section 6.01(a)</u> or <u>Section 6.01(b)</u>, copies of any material amendments, modifications, consents and waivers to, and termination (including rejections) and assignment of, any Material Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Regulatory Notices</u>. Promptly, but in any event within ten (10) Business Days (or such longer period as the Requisite Holders may agree to in their sole discretion) after receipt thereof by the Note Parties or any Subsidiary, a copy of any material notice, summons, citation, proceeding or order received from any Governmental Authority concerning the regulation of the Properties of the Note Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Consolidated Total Net Leverage Ratio; Asset Coverage Ratio</u>. No later than three (3) (or with respect to a Material Disposition, five (5)) Business Days prior to the consummation of any event or transaction that requires the calculation of, and compliance with, a Consolidated Total Net Leverage Ratio and/or an Asset Coverage Ratio, in each case on a Distribution PF Basis, (i) a certificate of a Responsible Officer of the Issuer (A) with respect to the Consolidated Total Net Leverage Ratio, (I) setting forth the Issuer's reasonably detailed and certified calculations of such Consolidated Total Net Leverage Ratio on a Distribution PF Basis and demonstrating compliance with the applicable Consolidated Total Net Leverage Ratio requirement and (II) certifying that the information set forth in the updated lease operating statement referenced in <u>Section 6.01(u)(ii)(A)</u> is true and correct and (B) with respect to the Asset Coverage Ratio, (I) setting forth the Issuer's reasonably detailed and certified calculations of such Asset Coverage Ratio on a Distribution PF Basis and demonstrating compliance with the applicable Asset Coverage Ratio requirement and (II) certifying that information set forth in the updated reserve database referenced in <u>Section 6.01(u)(ii)(B)</u> is true and correct, it being understood by the Agent and the Holders that projections concerning volumes and production and cost estimates contained therein are necessarily based upon opinions, estimates and projections and that neither the Issuer nor such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate and (ii) with respect to the Asset Coverage Ratio tested (A) in connection with a Material Disposition, an updated reserve database with respect to the Oil and Gas

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Properties of the Issuer and its Restricted Subsidiaries, giving effect to and reflecting such event or transaction and any other items necessary to be taken into account in accordance with the definition of Distribution PF Basis and <u>Section 1.05</u>, including any Specified Reserve Updates, that is in form and detail substantially consistent with the reserve database used in connection with the preparation of each internally prepared Reserve Report delivered pursuant to <u>Section 6.11</u>, including setting for current production figures and estimates with respect to such Oil and Gas Properties as of the date of delivery and (B) otherwise, an updated reserve database with respect to the Oil and Gas Properties of the Issuer and its Restricted Subsidiaries giving effect to the updated Strip Price as set forth in <u>Section 1.05(c)</u>. Any such certificate of a Responsible Officer of the Issuer delivered in accordance with this <u>Section 6.01(u)</u> shall set forth the amount of any Distribution PF Basis adjustment to the extent not set forth in a previously delivered certificate, or any change in the amount of a Distribution PF Basis adjustment set forth in a previously delivered certificate and, in either case, in reasonable detail together with the calculations and basis therefor.

**Section 6.02.** <u>Notices of Material Events</u>. Promptly (and in any event within three (3) Business Days) after a Responsible Officer of the Issuer or any Subsidiary obtains knowledge thereof, the Issuer will furnish to the Agent (which shall make such information available to the Holders) written notice of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the occurrence of any Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the filing or commencement of, or the threat in writing of, any action, suit, proceeding, investigation or arbitration by or before any arbitrator or Governmental Authority against or affecting the Note Parties or any Restricted Subsidiary not previously disclosed in writing to the Holders or any material adverse development in any action, suit, proceeding, investigation or arbitration (whether or not previously disclosed to the Holders) that, in either case, if adversely determined, could reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the occurrence of any ERISA Event that results in, or could reasonably be expected to result in, a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.

Each notice delivered under this <u>Section 6.02</u> shall be accompanied by a statement of a Responsible Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

**Section 6.03.** <u>Existence; Conduct of Business</u>. The Note Parties will, and will cause each Restricted Subsidiary to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence in a jurisdiction of the United States and the rights, licenses, permits, privileges and franchises material to the conduct of its business and maintain, if necessary, its qualification to do business in each other jurisdiction in which its Properties are located or the ownership of its Properties requires such qualification, except where the failure to so qualify could not reasonably be expected to have a Material Adverse Effect.

**Section 6.04.** <u>Payment of Taxes</u>. The Note Parties will, and will cause each Restricted Subsidiary to, pay all Tax liabilities of the Note Parties and all of their Restricted Subsidiaries before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings and the Note Parties or such Restricted Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) the failure to make payment could not reasonably be expected to result in a Material Adverse Effect.

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**Section 6.05.** <u>[Reserved]</u>.

**Section 6.06.** <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will, and will cause each Restricted Subsidiary to, maintain, with financially sound and reputable insurance companies (at the time the relevant coverage is placed or renewed), insurance (i) in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses and (ii) in accordance with all Governmental Requirements. The loss payable clauses or provisions in said insurance policy or policies insuring any of the Collateral for the Obligations shall be endorsed in favor of and made payable to the Agents as its interests may appear and such policies shall name the Agents and the Holders as "additional insureds" (and mortgagee, if applicable) and Agents as lender loss payee and provide that the insurer will endeavor to give at least thirty (30) days' prior notice of any cancellation to the Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will notify the Agents and the Requisite Holders promptly whenever any separate insurance concurrent in form or contributing in the event of loss with that required to be maintained under this <u>Section 6.06</u> is, to the actual knowledge of the Note Parties or a Restricted Subsidiary thereof, taken out by the Note Parties or such Restricted Subsidiary thereof; and promptly deliver to the Agents a duplicate original copy of such policy or policies to the extent available to such Person.

**Section 6.07.** <u>Books and Records; Inspection Rights</u>. The Note Parties will, and will cause each Restricted Subsidiary to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Issuer will, and will cause each Restricted Subsidiary to, permit any representatives designated by the Agent or any Holder, upon reasonable prior notice, to visit and inspect its Properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested; <u>provided</u> that so long as no Event of Default has occurred and is continuing, the Note Parties and their Restricted Subsidiaries shall not be required to reimburse the Agent or any Holder for more than one (1) inspection during any Fiscal Year.

**Section 6.08.** <u>Compliance with Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will, and will cause each Restricted Subsidiary to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its Property and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business, except where such non-compliance would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will, and will cause each of their Subsidiaries to, maintain in effect and enforce such policies and procedures reasonably designed to promote compliance by the Note Parties and their Subsidiaries and each of their respective directors, officers, employees and agents with Anti-Corruption Laws, applicable Sanctions and the USA PATRIOT Act.

**Section 6.09.** <u>Environmental Matters</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties shall: (i) comply, and shall cause its Properties and operations and each Restricted Subsidiary and each Restricted Subsidiary's Properties and operations to comply, with all applicable Environmental Laws, except where the failure to so comply could not be reasonably expected to have a Material Adverse Effect; (ii) handle, store, and prevent any Release or threatened Release of, and shall cause each Restricted Subsidiary to handle, store and prevent any Release or threatened Release of, any Hazardous Material on, under, about or from any of the Note Parties' or their Restricted Subsidiaries' Properties or any other property offsite the Property to the extent caused by the Note Parties' or any of their Restricted Subsidiaries' operations in compliance with applicable Environmental Laws, except in each case, where the failure to do so could not reasonably be expected to have a Material Adverse Effect; (iii) timely obtain or file, and shall cause each Restricted Subsidiary to timely obtain or file, all Environmental Permits, if any, required under applicable Environmental Laws to be obtained or filed in connection with its operation or use of the Note Parties' or their Restricted Subsidiaries' Properties, except, in each case, where the failure to obtain or file could not reasonably be expected to have a Material Adverse Effect; (iv) promptly commence and diligently prosecute to completion, and shall cause each Restricted Subsidiary to promptly commence and diligently prosecute to completion, any assessment, evaluation, investigation, monitoring, containment, cleanup, removal, repair, restoration, remediation or other remedial obligations to the extent required under Environmental Law (collectively, the "**Remedial Work**") because of or in connection with the actual or suspected past, present or future Release or threatened Release of any Hazardous Material on, under, about or from any of the Note Parties' or their Restricted Subsidiaries' Properties, which failure to commence and diligently prosecute to completion could reasonably be expected to have a Material Adverse Effect; (v) conduct, and cause its Restricted Subsidiaries to conduct, their respective operations and businesses in a manner that will not expose any Property or Person to Hazardous Materials in violation of Environmental Law or as would result in liability under Environmental Law, if such exposure could reasonably be expected to have a Material Adverse Effect; and (vi) establish and implement, and shall cause each Restricted Subsidiary to establish and implement, such procedures as may be necessary to regularly determine and assure that the Note Parties' and their Restricted Subsidiaries' obligations under this <u>Section 6.09(a)</u> are timely and fully satisfied, which failure to establish and implement could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will promptly, but in no event later than fifteen (15) days after any Note Party obtains knowledge thereof, notify the Agent and the Holders in writing of any threatened (in writing) action, investigation or inquiry by any Governmental Authority or any threatened demand (in writing) or lawsuit by any Person against the Note Parties or their Restricted Subsidiaries or their Properties of which the Note Party has knowledge in connection with any Environmental Laws if the Note Parties could reasonably anticipate that any of the foregoing will result in liability (whether individually or in the aggregate), if not covered by insurance, to the extent such liability could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent available, the Note Parties will, and will cause each Restricted Subsidiary to, provide environmental assessments, audits and tests obtained by the Note Parties or any Restricted Subsidiary in connection with any future acquisition of Oil and Gas Properties or other Properties to the Agent, other than an acquisition of additional interests in Oil and Gas Properties in which the Note Parties or any Restricted Subsidiary previously held an interest.

**Section 6.10.** <u>Further Assurances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Note Parties at its sole expense will, and will cause each Restricted Subsidiary to, promptly execute and deliver to the Agents all such other documents, agreements and instruments reasonably requested by the Agents or the Requisite Holders to comply with, cure any defects or accomplish the conditions precedent, covenants and agreements of the Note Parties or any

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Restricted Subsidiary, as the case may be, in the Note Documents, including the Notes, or to further evidence and more fully describe the Collateral intended as security for the Obligations, or to correct any omissions in this Agreement or the Collateral Documents, or to state more fully the obligations secured therein, or to perfect, protect or preserve any Liens created pursuant to this Agreement or any of the Collateral Documents or the priority thereof, or to make any recordings, file any notices or obtain any consents, all as may be reasonably necessary or appropriate, in the sole discretion of the Agent or the Requisite Holders, in connection therewith. In addition, at any Agent's request, each Note Party, at its sole expense, shall provide any information requested to identify any Collateral pledged by it, exhibits to Mortgages in form and substance reasonably satisfactory to such Agent (at the direction of the Requisite Holders) (which such exhibits shall be in recordable form for the applicable jurisdiction) or any other information requested in connection with the identification of any Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Note Parties hereby authorizes the Collateral Agent to file one or more financing or continuation statements, and amendments thereto, relative to all or any part of the Mortgaged Property without the signature of the Note Parties or any other Guarantor where permitted by law. A carbon, photographic or other reproduction of the Collateral Documents or any financing statement covering the Mortgaged Property or any part thereof shall be sufficient as a financing statement where permitted by law. Each of the Note Parties acknowledges and agrees that any such financing statement may describe the collateral as "all assets" or "all assets of Debtor, whether now owned or hereafter acquired and wherever located" of the applicable Note Party or words of similar effect as may be required by the Collateral Agent or the Requisite Holders. The grant of authority to the Collateral Agent under this <u>Section 6.10(b)</u> shall not be construed as a duty on any Agent to make any filings or otherwise perfect or maintain the perfection of the Collateral Agent's security interest, for the benefit of the Secured Parties, in the Collateral.

**Section 6.11.** <u>Reserve Reports</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before March 3rd, May 1st, August 1st and November 1st of each year, commencing November 1, 2024, the Issuer shall furnish to the Agent and the Holders a Reserve Report evaluating, as of December 31 (for each March delivery), March 31 (for each May delivery), June 30 (for each August delivery) and September 30 (for each November delivery), the Proved Reserves of the Issuer and the Note Parties located within the geographic boundaries of the United States of America. The Reserve Report as of December 31 (for each March delivery) of each year starting with December 31, 2024 shall be prepared by one or more Approved Petroleum Engineers, and the Reserve Report as of March 31 (for each May delivery), June 30 (for each August delivery) and September 30 (for each November delivery) of each year (beginning March 31, 2024), shall be a report prepared by or under the supervision of the chief engineer or qualified agent of the Issuer who shall, in each case, certify such Reserve Report to be true and accurate in all material respects and to have been prepared in accordance with the procedures used (x) with respect to each March delivery, the Reserve Report as of December 31, 2023 and (y) with respect to each May, August and November delivery, the immediately preceding December 31 Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With the delivery of each Reserve Report, the Issuer shall provide to the Agent and the Holders a Reserve Report Certificate from a Responsible Officer certifying that in all material respects: (i) the information contained in the Reserve Report and any other information delivered in connection therewith is true and correct to the best knowledge of the Issuer, it being understood by the Agent and the Holders that projections concerning volumes and production and cost estimates contained in each Reserve Report are necessarily based upon opinions, estimates and projections and that neither the Issuer nor such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate, (ii) the Issuer or another Note Party has good and defensible title to the Oil and Gas Properties evaluated in such Reserve Report (other than those (A) disposed of since the date of such

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Reserve Report as permitted in accordance with the terms hereof and (B) leases that have expired in accordance with their terms) and such Oil and Gas Properties are free of all Liens except for Liens permitted by <u>Section 7.03</u>, (iii) except as set forth on an exhibit to the certificate or previously disclosed to the Agent and the Requisite Holders in writing, to the extent the Note Parties take Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, on a net basis there are no gas imbalances, take or pay or other prepayments, the value of which exceed the volume threshold specified in <u>Section 4.16</u>, with respect to the Note Parties' Oil and Gas Properties evaluated in such Reserve Report which would require the Issuer or any other Note Party to deliver Hydrocarbons either generally or produced from such Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor, (iv) none of the Note Parties, Oil and Gas Properties have been sold since the "as of" date of the last Reserve Report except (A) those Note Parties, Oil and Gas Properties listed on such certificate as having been disposed or (B) as previously disclosed to the Agent and the Requisite Holders in writing, (v) [reserved] and (vi) attached thereto is a schedule demonstrating compliance (calculated at the time of delivery of such Reserve Report) with the Collateral Coverage Minimum.

**Section 6.12.** <u>Title Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before the delivery to the Agent and the Holders of each Reserve Report required by <u>Section 6.11(a)</u>, the Issuer will deliver title information (in form and substance reasonably acceptable to the Requisite Holders) covering enough of the Oil and Gas Properties evaluated by such Reserve Report that were not included in the immediately preceding Reserve Report, so that the Requisite Holders shall have received together with title information previously delivered to the Requisite Holders, reasonably satisfactory title information on at least 90% on the PV-10 of the Oil and Gas Properties evaluated by such Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Issuer has provided title information for additional Properties under <u>Section 6.12(a)</u>, the Issuer shall, within forty-five (45) days after notice from the Requisite Holders that title defects or exceptions exist with respect to such additional Properties, either (i) cure any such title defects or exceptions (including defects or exceptions as to priority) which are not permitted by <u>Section 7.03</u> raised by such information, (ii) substitute acceptable Mortgaged Properties with no title defects or exceptions except for those permitted by <u>Section 7.03</u> having an equivalent value or (iii) deliver title information in form and substance reasonably acceptable to the Requisite Holders so that the Requisite Holders shall have received, together with title information previously delivered to the Requisite Holders, reasonably satisfactory title information on at least 90% of the PV-10 of the Oil and Gas Properties evaluated by such Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Issuer is unable to cure any title defect requested by the Requisite Holders to be cured within the forty-five (45) day period or the Issuer does not comply with the requirements to provide acceptable title information covering 90% of the PV-10 of the Oil and Gas Properties evaluated in the most recent Reserve Report, such default shall not be a Default, but instead the Agent and/or the Requisite Holders shall have the right to exercise the following remedy in their sole discretion from time to time, and any failure to so exercise this remedy at any time shall not be a waiver as to future exercise of the remedy by the Agent or the Requisite Holders. To the extent that Agent or the Requisite Holders are not satisfied with title to any Oil and Gas Properties evaluated in such Reserve Report after the periods described in <u>Section 6.12(b)</u> have elapsed, the Issuer shall, at the request of Agent (acting at the direction of Requisite Holders) or the Requisite Holders, (i) resubmit a revised Reserve Report to the Agent (for delivery to the Holders) removing such unacceptable Oil and Gas Property and such revised Reserve Report shall constitute the most recently delivered Reserve Report for all purposes under this Agreement and (ii) the Asset Coverage Ratio shall be recalculated and compliance with respect to such ratio shall be based upon the revised Reserve Report delivered under <u>clause (i)</u> above (and, with respect to such Oil and Gas Property that is unacceptable, the Asset Coverage Ratio shall be calculated and compliance with respect to such ratio shall be subject to the terms of <u>Section 1.05(a)(ii)</u> for so long as title to such Oil and Gas Property continues to be unacceptable).

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**Section 6.13.** <u>Collateral and Guaranty Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the delivery of each Reserve Report hereunder, the Note Parties shall review the applicable Reserve Report, if any, and the list of current Mortgaged Properties (as described in <u>Section 6.11(b)</u>) to ascertain whether the Mortgaged Properties represent at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the most recently completed Reserve Report (the "**Collateral Coverage Minimum**"). In the event that the PV-10 of the Mortgaged Properties (calculated at the time of redetermination) does not satisfy the Collateral Coverage Minimum, then the Note Parties shall, and shall cause their Restricted Subsidiaries to, grant, within thirty (30) days of delivery of the certificate required under <u>Section 6.11(b)</u> (or such longer period as the Requisite Holders may agree in their sole discretion, but not to extend beyond a total of ninety (90) days following the delivery of such certificate), to the Collateral Agent as security for the Obligations a first priority Lien interest subject to Liens permitted under <u>Section 7.03</u> on additional Oil and Gas Properties of the Note Parties not already subject to a Lien of the Collateral Documents such that after giving effect thereto, the PV-10 of the Mortgaged Properties (calculated at the time of such redetermination) meets the Collateral Coverage Minimum. All such Liens will be created and perfected by and in accordance with the provisions of deeds of trust, mortgages, security agreements and financing statements or other Collateral Documents, all in form and substance reasonably satisfactory to the Requisite Holders and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes. In order to comply with the foregoing, if any Restricted Subsidiary places a Lien on its Oil and Gas Properties and such Restricted Subsidiary is not a Guarantor, then it shall become a Guarantor and comply with <u>Section 6.13(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that (i) the Issuer or any other Note Party creates or acquires any Restricted Subsidiary that is a Material Subsidiary or any Restricted Subsidiary is a Material Subsidiary or (ii) any Subsidiary incurs or guarantees any Debt, the applicable Note Party shall, within thirty (30) days from the date of such creation, acquisition, incurrence, or guarantee (or such later date as the Requisite Holders may agree in their sole discretion), cause such Restricted Subsidiary to execute and deliver the Guaranty Agreement and the Pledge and Security Agreement (or a supplement to such documents, as applicable) pursuant to which such Restricted Subsidiary shall guaranty the Obligations and grant a security interest in such Restricted Subsidiary's Collateral; <u>provided</u> that such Restricted Subsidiary will not own any Oil and Gas Properties until delivery of such Guaranty Agreement or Pledge and Security Agreement (or a supplement to such documents, as applicable); provided, further, that notwithstanding the foregoing, Excluded Subsidiaries shall not be required to become Guarantors or pledge any Collateral. In the event that the Issuer or any other Note Party creates or acquires any Restricted Subsidiary, the Note Party that owns the Equity Interests in such new Restricted Subsidiary shall execute and deliver a supplement to the Pledge and Security Agreement, pursuant to which such Note Party will ratify the pledge of all of the Equity Interests of such new Restricted Subsidiary to secure the Obligations. In connection with the foregoing, the Note Parties shall deliver to the Collateral Agent original certificates, if any, evidencing the Equity Interests of such new Restricted Subsidiary, together with appropriate undated stock powers for each certificate duly executed in blank by the registered owner thereof, and execute and deliver such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Agents or the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [Reserved].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Agent, without the consent of the Requisite Holders, shall enter into any Mortgage in respect of any real property acquired by any Note Party after the Closing Date until the date that is, (A) if the Mortgage relating to such Mortgaged Property contains standard exclusionary language with respect to Improved Mortgaged Property, the date of acquisition of such Mortgaged Property or (B) if the Mortgage relating to such Mortgaged Property does not contain standard exclusionary language with respect to Improved Mortgaged Property, the date that is thirty (30) days after the Agent (acting at the direction of the Requisite Holders) has delivered to the Holders the following documents in respect of such real property: (1) a completed flood hazard determination from a third party vendor; (2) if such real property is located in a "special flood hazard area", (I) a notification to the applicable Note Parties of that fact and (if applicable) notification to the applicable Note Parties that flood insurance coverage is not available and (II) evidence of the receipt by the applicable Note Parties of such notice; and (3) if required by Flood Insurance Regulations, evidence of required flood insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No MIRE Event may be closed, without the consent of the Requisite Holders, until the date that is, (A) if the Mortgage relating to all Mortgaged Properties contains standard exclusionary language with respect to Improved Mortgaged Property, the date of such MIRE Event or (B) if the Mortgage relating to all Mortgaged Properties does not contain standard exclusionary language with respect to Improved Mortgaged Property, thirty (30) days after the Agent (acting at the direction of the Requisite Holders) has delivered to the Holders the following documents in respect of such real property: (1) a completed flood hazard determination from a third party vendor; (2) if such real property is located in a "special flood hazard area", (I) a notification to the applicable Note Parties of that fact and (if applicable) notification to the applicable Note Parties that flood insurance coverage is not available and (II) evidence of the receipt by the applicable Note Parties of such notice; and (3) if required by Flood Insurance Regulations, evidence of required flood insurance.

**Section 6.14.** <u>ERISA Compliance</u>. The Note Parties will promptly furnish and will cause the Restricted Subsidiaries to promptly furnish to the Holders if specifically requested in writing by any Holder, promptly after the filing thereof with the United States Secretary of Labor or the Internal Revenue Service, copies of each annual report (Form 5500 series) with respect to each Plan sponsored by the Issuer or a Restricted Subsidiary or any trust created thereunder.

**Section 6.15.** <u>Commodity Exchange Act Keepwell Provisions</u>. The Note Parties hereby guarantees the payment and performance of all of the Obligations of each Note Party (other than the Issuer) and absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Note Party (other than the Issuer) in order for such Note Party to honor its obligations under its respective Guaranty Agreement including obligations with respect to Swap Agreements (<u>provided</u>, <u>however</u>, that the Issuer shall only be liable under this <u>Section 6.15</u> for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this <u>Section 6.15</u>, or otherwise under this Agreement or any Note Document, as it relates to such other Note Parties, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of the Note Parties under this <u>Section 6.15</u> shall remain in full force and effect until Payment in Full. The Note Parties intend that this <u>Section 6.15</u> constitute, and this <u>Section 6.15</u> shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each other Note Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

**Section 6.16.** <u>Deposit Accounts and Securities Accounts</u>. Subject to <u>Section 6.19</u>, each of the Issuer and the other Note Parties shall (at its own expense) cause each of its Deposit Accounts, each of its Commodity Accounts and each of its Securities Accounts to be subject to a Control Agreement; <u>provided</u>, no such Control Agreement shall be required for Excluded Accounts.

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**Section 6.17.** <u>Use of Proceeds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The proceeds of the Notes will be used for the purposes set forth in <u>Section 2.04</u>, and not, for the avoidance of doubt, any Restricted Payment, any return of capital to the Issuer's Equity Interest holders or any other distribution. No part of the proceeds of the Notes will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties shall not use, and the Note Parties shall procure that their Subsidiaries and their and their respective directors, officers, employees and agents shall not use, the proceeds of the Notes (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, to the extent that such activities, businesses or transaction would be prohibited by Sanctions if conducted by a corporation incorporated in the U.S. or the European Union or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

**Section 6.18.** <u>Swap Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or prior to the Closing Date the Note Parties shall enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Closing Date, seventy-five percent (75%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties shall prior to the end of each Fiscal Quarter enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the end of the applicable Fiscal Quarter, sixty-five percent (65%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of (i) gas and (ii) at all times when the Note Parties are producing more than 200 net barrels of oil per day, oil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or prior to the Closing Date the Note Parties shall enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Closing Date, fifty percent (50%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of Appalachia Gas.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Note Parties shall prior to the end of each Fiscal Quarter enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the end of the applicable Fiscal Quarter, forty percent (40%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of Appalachia Gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(e)</u> <u>On or prior to the Second Amendment Effective Date, the Second Amendment Incremental Note Holders shall have received evidence satisfactory to them that as of the Second Amendment Effective Date, the Note Parties shall:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(i)</u> <u>have entered into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Second Amendment Effective Date, seventy-five percent (75%) of the reasonably anticipated projected production from the Acquired PHX Assets and Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the Second Amendment Reserve Report and the most recently delivered Reserve Report pursuant to the terms of this Agreement) of gas; and</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(ii)</u> <u>have entered into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an approved counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Second Amendment Effective Date, fifty percent (50%) of the reasonably anticipated projected production from the Acquired PHX Assets and Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the Second Amendment Reserve Report and the most recently delivered Reserve Report pursuant to the terms of this Agreement) of Appalachia Gas.</u>

**Section 6.19**. <u>Post-Closing Covenant</u>. Within thirty (30) days of the Closing Date (or such later date with the consent of the Requisite Holders in their sole discretion), the Agent and the Holders shall have received (a) a Mortgage encumbering each Mortgaged Property in favor of the Collateral Agent, duly executed and acknowledged by each Note Party that is the owner of or holder of any interest in such Mortgaged Property, and otherwise in form for recording in the recording office of each applicable jurisdiction where each such Mortgaged Property is situated and that will, when properly recorded (or when the applicable financing statements related thereto are properly filed or such other actions needed to perfect are taken) create a valid, perfected first priority security interest (after giving effect to Excepted Liens identified in <u>clauses (a)</u> through <u>(d)</u>, <u>(f)</u> and <u>(i)</u> of the definition thereof, but subject to the provisos at the end of such definition) on at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the Initial Reserve Report and Acquired Assets Reserve Report on a consolidated basis, (b) customary legal opinions of local counsel for the relevant Note Parties in the jurisdiction where such Mortgaged Property is located and (c) Control Agreements for each of the Note Parties' Deposit Accounts, Commodity Accounts and Securities Accounts required to be delivered pursuant to <u>Section 6.16</u>.

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<u>**Section 6.20.** Minimum Liquidity. On the Second Amendment Effective Date, after giving effect to the transactions in connection with the Specified PHX Merger the Issuer and its Restricted Subsidiaries shall have Unrestricted Cash in an amount equal to or greater than $4,000,000.</u>

**ARTICLE VII** 

**NEGATIVE COVENANTS** 

Each Note Party covenants and agrees with the Agents and each of the Holders that, until Payment in Full, each Note Party will not, and will cause its Subsidiaries not to:

**Section 7.01.** <u>Financial Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Consolidated Total Net Leverage Ratio</u>. The Issuer will not, (i) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on December 31, 2024) permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 3.50 to 1.00,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on June 30, 2025) permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 4.00 to 1.00, (iii) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on March 31, 2026), permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 3.50 to 1.00 and (iv) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on March 31, 2027), permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 3.25 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Asset Coverage Ratio</u>. The Issuer will not permit the Asset Coverage Ratio (determined by reference to the most recently delivered Reserve Report on a Pro Forma Basis) (i) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending December 31, 2024) to be less than 1.00 to 1.00 and (ii) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on March 31, 2027) to be less than 1.10 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Right to Cure</u>. In the event the Issuer fails to comply with the requirements of <u>Sections 7.01(a)</u> or <u>7.01(b)</u>, beginning on the first date after the last day of the Fiscal Quarter for which the financial covenants in <u>Sections 7.01(a)</u> or <u>7.01(b)</u> are being tested, until the expiration of the tenth Business Day subsequent to the date the compliance certificate for calculating the Consolidated Total Net Leverage Ratio and the Asset Coverage Ratio is required to be delivered pursuant to <u>Section 6.01(c)</u> (the "**Cure Period**"), the Issuer shall be permitted to cure such failure to comply by requesting that the Consolidated Total Net Leverage Ratio and/or the Asset Coverage Ratio be recalculated by reducing the Issuer's Total Net Debt as the result of a prepayment of the Notes in accordance with <u>Section 2.09(a)</u> for the Fiscal Quarter most recently ended by an amount equal to the proceeds received by the Issuer from a Specified Equity Contribution during a Cure Period (such amount, with respect to any Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default, a "**Cure Amount**"); <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Issuer delivers written notice to the Agent (for delivery to the Holders) on or prior to the date of a timely delivered certificate required by <u>Section 6.01(c)</u> that it has elected to cure the failure to comply and clearly setting forth such Specified Equity Contribution in the computation required by Section 6.01(c)(ii);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the amount of the Cure Amount shall not be greater than the amount required to cause the Issuer to be in compliance with Section 7.01(a) or <u>7.01(b)</u>, as applicable, and a Cure Amount may be applied to more than one financial covenant during the same Cure Period;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) any such reduction in the Issuer's Total Net Debt shall be taken into account in calculating the Consolidated Total Net Leverage Ratio for the purpose of determining compliance or noncompliance with <u>Section 7.01(a)</u> of the last day of any Rolling Period that includes the last Fiscal Quarter of the four (4) quarter period with respect to which such cure right was exercised; and (B) any such reduction in the Issuer's Total Net Debt taken into account in calculating the Asset Coverage Ratio shall only be applied for such single quarterly testing of the Asset Coverage Ratio, in each case, pursuant to this <u>Section 7.01(c)</u>, and in each case shall be applied solely for the purpose of determining compliance or non-compliance with <u>Section 7.01(a)</u> and/or <u>7.01(b)</u> as of the last day of any Rolling Period that includes such Fiscal Quarter or as of the last day of such Fiscal Quarter, as applicable, and not for any other purpose under any Note Document (including any determination of *pro forma* compliance with the Consolidated Total Net Leverage Ratio or Asset Coverage Ratio for the purposes of making any Restricted Payment or any other purpose (even if the proceeds of any Specified Equity Contribution are actually used to reduce Debt, including in connection with any Cure Amount applied to cure the Asset Coverage Ratio or the Consolidated Total Net Leverage Ratio));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Issuer may not cure any Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default by an equity cure more than (A) two (2) times during any period of four (4) consecutive Fiscal Quarters or (B) five (5) times prior to the Maturity Date (<u>provided</u> that, if the Issuer exercises its cure right prior to the date financial statements are required to be delivered for a relevant Fiscal Quarter solely with respect to an anticipated Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default and the Cure Amount associated therewith is insufficient to cure a Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default with respect to such Fiscal Quarter, any subsequent exercise of a cure right prior to the expiration of the applicable Cure Period to "top-up" such Cure Amount shall not count as an additional exercise of the cure right); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If after giving effect to the foregoing recalculations, the Issuer would then be in compliance with <u>Sections 7.01(a)</u> and/or <u>7.01(b)</u>, the Issuer shall be deemed to have satisfied the requirements of <u>Sections 7.01(a)</u> and <u>7.01(b)</u> as of the relevant earlier required date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable Event of Default under any such covenant that had occurred shall be deemed cured for the purpose of this Agreement and the other Note Documents.

If the Issuer has certified in writing to the Agents and Holders that it will provide a Specified Equity Contribution to cure each Event of Default having occurred under <u>Sections 7.01(a)</u> or <u>7.01(b)</u> for such Cure Period, neither the Agents nor any Holder shall exercise the right to accelerate the Obligations or terminate the Commitments and none of Agents, any Holder or any Secured Party shall exercise any right to foreclose on or take possession of the Collateral or exercise any other remedy pursuant to <u>Section 9.01</u>, the other Note Documents or applicable law prior to the end of the applicable Cure Period solely on the basis of an Event of Default having occurred and continuing under <u>Sections 7.01(a)</u> or <u>7.01(b)</u>; <u>provided</u> that, for avoidance of doubt, such an Event of Default shall be understood to have occurred and be continuing until cured in accordance with and in the time frame permitted by this <u>Section 7.01(c)</u>.

**Section 7.02**. <u>Debt</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, incur, create, assume or suffer to exist any Debt, except:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Notes or other Obligations arising under the Note Documents or any guaranty of or suretyship arrangement for the Notes or other Obligations arising under the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Debt under Finance Leases and Purchase Money Debt not to exceed $500,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Debt associated with bonds, guarantees, letters of credit or surety obligations, in each case required by Governmental Requirements or third parties incurred in the ordinary course of business, in each case in connection with the operation of the Oil and Gas Properties and not in connection with money borrowed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) intercompany Debt between the Note Parties or between Restricted Subsidiaries to the extent permitted by <u>Section 7.05(d)</u>; <u>provided</u> that such Debt is not held, assigned, transferred, negotiated or pledged to any Person other than the Note Parties, and, <u>provided</u>, <u>further</u>, that any such Debt owed by either the Issuer or a Guarantor shall be subordinated to the Obligations on terms set forth in the Guaranty Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) endorsements of negotiable instruments for collection in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Debt constituting a guarantee by any Note Party of any Debt incurred by another Note Party so long as the incurrence of such Debt by such other Note Party is otherwise permitted by this <u>Section 7.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Debt arising under (i) Swap Agreements permitted by <u>Section 7.13</u> and (ii) customary bank products incurred in the ordinary course of business of the Issuer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) other additional unsecured Debt (excluding any Debt set forth in <u>clause (a)</u> of the definition thereof) in an aggregate outstanding principal amount not to exceed $1,000,000; <u>provided</u> that no Indebtedness incurred, created, assumed or suffered to exist with respect to WhiteHawk – Equity Holdings, LP shall be permitted under this <u>Section 7.02(h)</u>.

**Section 7.03**. <u>Liens</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, create, incur, assume or permit to exist any Lien on any of its Properties (now owned or hereafter acquired), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens securing the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Excepted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens in respect of Debt permitted by <u>Section 7.02(b)</u>, but only to the Property under lease or the Property purchased, constructed or improved with such Debt; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) other Liens affecting property or assets of the Note Parties or any of their Restricted Subsidiaries securing obligations in an aggregate principal amount outstanding not to exceed $1,000,000.

Notwithstanding anything to the contrary in any Note Documents, (a) none of the Liens permitted pursuant to this <u>Section 7.03</u> (other than Excepted Liens and Liens securing the Notes) may at any time attach to any Oil and Gas Properties of the Note Parties and their Restricted Subsidiaries, (b) none of the Liens permitted pursuant to this <u>Section 7.03</u> (other than Liens permitted pursuant to this <u>Section 7.03</u> which have priority by operation of Law) shall be superior to the Lien of the Collateral Agent on any mineral interests and mineral royalty interests and similar holdings of the Note Parties and their Restricted Subsidiaries and (c) no intent to subordinate the first priority status afforded by the Liens granted in favor of the Collateral Agent (for the benefit of the Secured Parties, as provided in the Collateral Documents) is to be hereby implied or expressed by the permitted existence of the Liens permitted pursuant to this <u>Section 7.03</u>.

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**Section 7.04.** <u>Dividends and Distributions</u>. The Note Parties will not, and will not permit any of their Restricted Subsidiaries to, declare or make, directly or indirectly, any Restricted Payment, return any capital to its Equity Interest holders, or make any distribution of its Property to its Equity Interest holders, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the proviso set forth in the definition of "Monthly Common Equity Dividends", the Issuer may declare and pay dividends with respect to its common Equity Interests payable solely in additional shares of its common Equity Interests (other than Disqualified Capital Stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Restricted Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to (x) no Default or Event of Default continuing or resulting from such Restricted Payment, (y) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (z) the Issuer being in pro forma compliance with <u>Article VI</u> and <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) during Distribution Period A for any "Applicable Distribution Period" as set forth in <u>Appendix C</u>, prior to the "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first*, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.75 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.05 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Monthly Common Equity Dividends and Monthly Preferred Equity Dividends to the holders of its Equity Interests, (II) pay AUM Fees and/or Dividend Incentive Fees (clauses (I) and (II), collectively, "**Primary Distributions**") and (III) make Specified Period A Equity Redemptions with Distributable Free Cash Flow only and (B) *second*, in the event Distributable Free Cash Flow is positive following the application of <u>Section 7.04(c)(i)(A)</u>, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.00 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.20 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests with Distributable Free Cash Flow only;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) during Distribution Period B for any "Applicable Distribution Period" as set forth in <u>Appendix C</u> prior to "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first*, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.25 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.10 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Primary Distributions and/or Specified Period B/C Level II Equity Redemptions with Distributable Free Cash Flow only and (B) *second*, in the event Distributable Free Cash Flow is positive following the application thereof under <u>Section 7.04(c)(ii)(A)</u>, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.75 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.30 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make Specified Period B/C Level II Equity Redemptions and make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests, in each case with Distributable Free Cash Flow only; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) during Distribution Period C for any "Applicable Distribution Period" as set forth in <u>Appendix C</u> prior to "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first*, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.75 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.15 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Primary Distributions and/or Specified Period B/C Level II Equity Redemptions with Distributable Free Cash Flow only, (B) *second*, in the event Distributable Free Cash Flow is positive following the application thereof under <u>Section 7.04(c)(iii)(A)</u>, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00 and (3) the aggregate principal amount of Notes outstanding as of such date of distribution is equal to or less than the Target Debt Balance as of such date of distribution, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make Specified Period B/C Level II Equity Redemptions with Distributable Free Cash Flow only and make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests, in each case with Distributable Free Cash Flow only;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to (i) no Default or Event of Default continuing or resulting from such Restricted Payment, (ii) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (iii) the Issuer being in pro forma compliance with <u>Article VI</u> and <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01</u>), Restricted Payments set forth on <u>Schedule 7.04</u> (the "<u>Specified RPs</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) During Distribution Period B, the Issuer may make Redemptions of Series C Preferred Shares in an aggregate amount not to exceed $20,000,000 with the proceeds of common equity or Series B Preferred Share issuances made following the First Amendment Effective Date (the "**Specified Issuance Proceeds**") and applied towards such Redemptions of Series C Preferred Shares within thirty (30) days of any such common equity or Series B Preferred Share issuances subject to (i) no Default or Event of Default continuing or resulting from such Restricted Payment, (ii) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (iii) the Issuer being in pro forma compliance with <u>Article VI</u> and, subject to <u>clause (iv)</u> below, <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01(o)</u> and <u>Section 6.01(u)</u>) and (iv) the Issuer being in compliance on a Pro Forma Basis with (A) a Consolidated Total Net Leverage Ratio of less than 3.25 to 1.00 and (B) an Asset Coverage Ratio of greater than 1.10 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) During Distribution Period C, the Issuer may make Redemptions of Series C Preferred Shares in an aggregate amount not to exceed $20,000,000 with Specified Issuance Proceeds and applied towards such Redemptions of Series C Preferred Shares within thirty (30) days of any such common equity or Series B Preferred Share issuances subject to (i) no Default or Event of Default continuing or resulting from such Restricted Payment, (ii) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (iii) the Issuer being in pro forma compliance with <u>Article VI</u> and, subject to <u>clause (iv)</u> below, <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01(o)</u> and <u>Section 6.01(u)</u>) and (iv) the Issuer being in compliance on a Pro Forma Basis with (A) a Consolidated Total Net Leverage Ratio of less than 2.75 to 1.00 and (B) an Asset Coverage Ratio of greater than 1.15 to 1.00

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Notwithstanding anything to the contrary, any Restricted Payment declared, made or agreed to be declared or made in reliance on clause <u>(c)</u> of this <u>Section 7.04</u> shall be made with Distributable Free Cash Flow only.

Notwithstanding anything to the contrary contained herein or any other Note Document, (a) no Restricted Payment shall be made under this <u>Section 7.04</u> to any Unrestricted Subsidiary and (b) Restricted Payments to WhiteHawk – Equity Holdings, LP shall be permitted except, to the extent such Investment constitutes a Restricted Payment, Investments made pursuant to <u>Section 7.05(k)</u>.

**Section 7.05.** <u>Investments and Advances</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, make or permit to remain outstanding any Investments in or to any Person, except that the foregoing restriction shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investments as of the Closing Date which are disclosed to the Holders in <u>Schedule 7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) accounts receivable arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Investments in Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investments (i) made by the Issuer in or to the Guarantors (including any new Restricted Subsidiary that becomes a Guarantor in compliance herewith substantially contemporaneously with such Investment being made), (ii) made by any Guarantor in or to the Issuer or any other Guarantor and (iii) made by any Restricted Subsidiary in or to the Issuer or the Guarantors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Investments in stock, obligations or securities received in settlement of debts arising from Investments permitted under this <u>Section 7.05</u> and accounts receivable owing to the Issuer or any Restricted Subsidiary as a result of a bankruptcy or other insolvency proceeding of the obligor in respect of such debts or upon the enforcement of any Lien in favor of the Issuer or any of its Restricted Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Investments pursuant to Swap Agreements otherwise permitted under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Investments consisting of non-cash consideration received in connection with dispositions or transfers permitted pursuant to <u>Section 7.09</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Subject to (x) no Default or Event of Default continuing or resulting from such Investment, (y) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (z) the Issuer being in pro forma compliance with <u>Article VI</u> and <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01(o)</u> and <u>Section 6.01(u)</u>), in the event Distributable Free Cash Flow is positive following the application thereof under (i) <u>Section 7.04(c)(i)(A)</u> and <u>Section 7.04(c)(i)(B)</u> during Distribution Period A, (ii) <u>Section 7.04(c)(ii)(A)</u> and <u>Section 7.04(c)(ii)(B)</u> during Distribution Period B or (iii) <u>Section 7.04(c)(iii)(A)</u> and <u>Section 7.04(c)(iii)(B)</u> during Distribution Period C and the aggregate principal amount of Notes outstanding as of such date of distribution is equal to or less than the Target Debt Balance as of such date of distribution, as applicable, make Investments constituting the acquisition of (x) Oil & Gas Properties or (y) Equity Interests of any entity with no material assets other than Oil and Gas Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Investments to the extent constituting Debt, distributions or dispositions permitted under <u>Sections 7.02</u>, <u>7.04</u> or <u>7.09</u>, respectively;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) acquisitions of Oil & Gas Properties so long as (i) the Issuer is in pro forma compliance with <u>Section 7.01</u> and (ii) such acquisitions are funded solely with the proceeds of common equity issuances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Investments in an aggregate amount not to exceed $500,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the Specified SJM Acquisition.<u>; and</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(m) the Specified PHX Merger.</u>

Notwithstanding anything to the contrary contained herein or any other Note Document, (a) no Investments in Unrestricted Subsidiaries shall be permitted under this <u>Section 7.05</u> and (b) no Investments in WhiteHawk – Equity Holdings, LP shall be permitted except for pursuant to <u>Section 7.05(k)</u>.

**Section 7.06.** <u>Nature of Business; Wholly-Owned Subsidiaries; No International Operations</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, (a) allow any material change to be made in the character of its business as owners of minerals interests and mineral royalty interests and other non-operating interests in upstream Oil and Gas Properties, or (b) allow any Guarantor to cease to be a Wholly-Owned Subsidiary of the Issuer other than as a result of a sale of all of the Equity Interests of such Guarantor or a merger of such Guarantor permitted under <u>Section 7.08</u> or <u>7.09</u>. Without limiting the foregoing, the Note Parties and their Restricted Subsidiaries shall not permit, including after giving effect to any disposition, Investment or acquisition permitted hereunder, the portion of the Total PDP PV-10 Value of their Oil and Gas Properties directly attributable to the ownership of the Note Parties and their Restricted Subsidiaries in mineral interests and mineral royalty interests to be less than 95% of the Total PDP PV-10 Value of the Note Parties' and their Restricted Subsidiaries' Oil and Gas Properties, and the remaining 5% or less of the Total PDP PV-10 Value of their Oil and Gas Properties shall be comprised of non-operating interests in upstream Oil and Gas Properties; <u>provided</u> that, solely for purposes of this <u>Section 7.06</u>, "Total PDP PV-10 Value" shall include the book value of any Oil and Gas Property that does not have PV-10 Value. From and after the Closing Date, the Issuer and its Restricted Subsidiaries will not acquire or make any other expenditure (whether such expenditure is capital, operating or otherwise) in or related to, any Oil and Gas Properties not located within the geographical boundaries of and subject to the jurisdiction of the United States of America. The Note Parties and their Restricted Subsidiaries shall at all times remain organized under the laws of the United States of America or any State thereof or the District of Columbia.

**Section 7.07**. <u>ERISA Compliance</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) engage in, or permit any ERISA Affiliate to engage in, any transaction in connection with which the Note Parties, a Restricted Subsidiary or any ERISA Affiliate could reasonably be expected to be subjected to either a civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502 of ERISA or a tax imposed by Chapter 43 of Subtitle D of the Code with respect to a Plan that, in either case, could reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) fail to make, or permit any ERISA Affiliate to fail to make, full payment when due of all amounts which, under the provisions of any Plan, agreement relating thereto or applicable law, the Note Parties, a Restricted Subsidiary or any ERISA Affiliate is required to pay as contributions thereto, if a Material Adverse Effect would result.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) contribute to or assume an obligation to contribute to any employee welfare benefit plan, as defined in Section 3(1) of ERISA that provides benefits to former employees of such entities other than as required by applicable law and that may not be terminated by such entities in their sole discretion at any time without resulting in a Material Adverse Effect.

**Section 7.08**. <u>Mergers, Etc.</u> The Note Parties will not, and will not permit any Restricted Subsidiary to, merge into or with or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of its Property to any other Person (whether now owned or hereafter acquired) (any such transaction, a "Consolidation"), or liquidate or dissolve; <u>provided</u> that (a) any Restricted Subsidiary may participate in a Consolidation with the Issuer or any Guarantor (<u>provided</u> that the Issuer shall be the continuing or surviving entity in any such transaction involving the Issuer, and a Guarantor shall be the continuing or surviving entity of any such transaction not involving the Issuer), (b) any Guarantor may participate in a Consolidation with another Guarantor, (c) any Restricted Subsidiary that is not a Guarantor may consolidated into any other Restricted Subsidiary that is not a Guarantor or (d) any Restricted Subsidiary may liquidate or dissolve so long as its assets (if any) are distributed to the Issuer or another Guarantor prior to such liquidation or dissolution.

**Section 7.09.** <u>Sale of Properties and Termination of Swap Agreements</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, dispose, sell, assign, farm-out, convey or otherwise transfer any Property or to terminate or otherwise monetize any Swap Agreement in respect of commodities except for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sale of Hydrocarbons in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) farm-outs of undeveloped acreage to which no proved reserves are attributed in the most recently delivered Reserve Report and assignments in connection with such farmouts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the sale or transfer of equipment that is no longer necessary for the business of the Note Parties or such Restricted Subsidiary or that is replaced by equipment of at least comparable value and use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the sale or other disposition (including Casualty Events resulting in the transfer of any Oil and Gas Property or any interest therein) of (i) any Oil and Gas Property or any interest therein or any Restricted Subsidiary owning Oil and Gas Properties and (ii) the termination or monetization of any Swap Agreement in respect of commodities; <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) no Event of Default exists or results from such sale or disposition of Property or the termination or monetization of any Swap Agreement (after giving effect to the substantially concurrent use of proceeds therefrom) and (B) all such sales or other dispositions are for Fair Market Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) not less than one hundred percent (100%) of the consideration received in respect of such sale or other disposition shall be cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) it is understood that <u>Section 7.09(d)</u> shall not impair the obligation to satisfy <u>Section 6.20</u> at all times, including the obligation to maintain the Swap Agreements entered into pursuant thereto;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the consideration received in respect of such sale or other disposition shall be for Fair Market Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no Event of Default exists or results from such sale or disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if any such disposition is of a Restricted Subsidiary owning Oil and Gas Properties, such disposition shall include all the Equity Interests of such Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) non-exclusive licenses of intellectual property, none of which, in the aggregate, materially impair the operation of the business of the Note Parties or any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the abandonment of intellectual property that is no longer material to the operation of the business of the Note Parties or any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Equity Interests of any Restricted Subsidiary of the Note Parties transferred to any Note Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) assets of any Note Party to another Note Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any disposition in the form of a Restricted Payment permitted pursuant to <u>Section 7.04</u> or an Investment permitted pursuant to <u>Section 7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the termination or unwind of any Swap Agreements in respect of commodities solely to the extent required to comply with <u>Section 7.13(d)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) dispositions having a fair market value not to exceed $500,000 in the aggregate.

Notwithstanding anything to the contrary herein or any other Note Document, (x) no sale, arrangement, farm-out, conveyance or other transfer shall be permitted under this <u>Section 7.09</u> to any Unrestricted Subsidiary and (y) the Note Parties will not, and will not permit any Restricted Subsidiary, to sell, grant, issue or otherwise enter into any volumetric production payments, dollar-denominated production payment (or any other "VPP" financing), "drillcos" and other similar synthetic financings, or otherwise dispose of or sell Hydrocarbons in place that would require the Note Parties or their Restricted Subsidiaries to deliver Hydrocarbons at some future time without then or thereafter receiving full prepayment therefor.

**Section 7.10.** <u>Transactions with Affiliates</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of Property or the rendering of any service, with any Affiliate (other than transactions between the Issuer and any Guarantor and transactions between Guarantors) unless such transactions are not prohibited under this Agreement and are upon fair and reasonable terms no less favorable to it than it would obtain in a comparable arm's length transaction with a Person not an Affiliate provided that the foregoing restrictions shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) equity issuances, distributions or other acquisitions or retirements of Equity Interests by the Issuer to the extent permitted by <u>Section 7.04</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the payment of expenses and management fees pursuant to the Administrative Services Agreement and Investment Management Agreement.

**Section 7.11.** <u>Subsidiaries</u>. No Note Party or its Subsidiaries shall (a) form or acquire any Subsidiary, except any wholly-owned Domestic Subsidiary subject to compliance with <u>Section 6.11(c)</u>, or (b) enter into any partnership, joint venture or similar arrangement other than as set forth on <u>Schedule 7.11</u>.

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**Section 7.12.** <u>Negative Pledge Agreements; Dividend Restrictions</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, create, incur, assume or suffer to exist any contract, agreement or understanding which in any way prohibits or restricts the granting, conveying, creation or imposition of any Lien on any of their Property in favor of the Collateral Agent and the Secured Parties or restricts any Restricted Subsidiary from paying dividends or making distributions to any Note Party, or which requires the consent of or notice to other Persons in connection therewith, other than (a) this Agreement and the Collateral Documents, (b) with respect to the ability of a Restricted Subsidiary to make dividends or distributions to a Note Party, agreements or arrangements evidencing Excepted Liens permitted by <u>Section 7.03</u> to the extent such restriction applies only to the property subject to such Lien, (c) customary restrictions and conditions with respect to the sale or disposition of Property or Equity Interests permitted under <u>Section 7.09</u> pending the consummation of such sale or disposition, (d) with respect to the ability of a Restricted Subsidiary to make dividends or distributions to a Note Party, any leases or licenses or similar contracts as they affect any Property (other than Oil and Gas Properties) subject to such lease or license and customary prohibitions on assignment contained in software license agreements, (e) customary provisions restricting subletting or assignment of any lease governing a leasehold interest (other than any Oil and Gas Property) of the Issuer or any Restricted Subsidiary, (f) as it relates to the assets that are the subject thereof, purchase money obligations for property acquired in the ordinary course of business and obligations under Finance Leases that impose restrictions on transferring the property so acquired, (g) prohibitions or restrictions imposed by any Governmental Requirement, and encumbrances or restrictions imposed by any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings referred to in <u>clauses (a)</u> through <u>(g)</u> above; <u>provided</u> that such amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings are no more restrictive in any material respect with respect to such encumbrance and other restrictions taken as a whole than those prior to such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing.

**Section 7.13.** <u>Swap Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will not, and will not permit any Restricted Subsidiary to, enter into any Swap Agreements with any Person other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Swap Agreements entered into Not for Speculative Purposes by the Note Parties with an Approved Counterparty in respect of commodities (at market prices) the net notional volumes for which (when aggregated with other commodity Swap Agreements then in effect, other than puts, floors and basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date the latest hedging transaction is entered into under a Swap Agreement, 85% of the reasonably anticipated Hydrocarbon production of oil, gas and natural gas liquids, calculated separately, from the Note Parties' total Proved Reserves for the sixty (60) month period from the date of creation of such hedging arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Swap Agreements entered into Not for Speculative Purposes by the Note Parties in respect of interest rates with an Approved Counterparty, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Swap Agreements effectively converting interest rates from fixed to floating, the notional amounts of which (when aggregated with all other Swap Agreements of the Note Parties and their Restricted Subsidiaries then in effect effectively converting interest rates from fixed to floating) do not exceed 75% of the anticipated outstanding principal amount of the Note Parties' Debt for borrowed money which bears interest at a fixed rate, and which Swap Agreements shall not, in any case, have a tenor beyond the maturity date of such Debt, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Swap Agreements effectively converting interest rates from floating to fixed, the notional amounts of which (when aggregated with all other Swap Agreements of the Note Parties and their Restricted Subsidiaries then in effect effectively converting interest rates from floating to fixed) do not exceed 75% of the anticipated outstanding principal amount of the Note Parties' Debt for borrowed money which bears interest at a floating rate, and which Swap Agreements shall not, in any case, have a tenor beyond the maturity date of such Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In no event shall any Swap Agreement contain any requirement, agreement or covenant for the Note Parties or any Restricted Subsidiary to post collateral, credit support (including in the form of letters of credit) or margin to secure their obligations under such Swap Agreement or to cover market exposures (other than pursuant to the Collateral Documents); for the avoidance of doubt, this <u>Section 7.13(b)</u> shall not prohibit the granting of security to secure the Secured Hedge Obligations pursuant to the Collateral Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of entering into or maintaining Swap Agreement trades or transactions under <u>Section 7.13(a)</u>, forecasts of reasonably anticipated production from the Note Parties' and their Restricted Subsidiaries' Oil and Gas Properties constituting Proved Reserves as set forth on the most recent Reserve Report delivered pursuant to the terms of this Agreement shall be revised to account for any increase or decrease therein anticipated because of information obtained by the Note Parties or any of their Restricted Subsidiaries and delivered to the Agent subsequent to the publication of such Reserve Report including the Note Parties' or any of their Restricted Subsidiaries' internal forecasts of production decline rates for existing wells and additions to or deletions from anticipated future production from new or existing wells and completed acquisitions coming on stream or failing to come on stream as well as completed dispositions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If, as of the last day of any calendar quarter, the notional volumes of all Swap Agreements then in effect in respect of commodities for such calendar quarter (other than the notional volumes of (x) puts, options, or floors with respect to which neither the Note Parties nor any Restricted Subsidiaries have any payment obligation other than premiums and other charges (it being understood that the payment of such obligations may be deferred but that the total amount of which are fixed and known at the time such transaction is entered into) and (y) basis differential swaps on volumes already hedged pursuant to other Swap Agreements for Hydrocarbons) exceed 100% of actual production of Hydrocarbons in such calendar quarter for oil, gas and natural gas liquids, calculated separately, then the Note Parties (i) shall promptly send notice to the Agent (for distribution to the Holders) and (ii) shall, within ten (10) Business Days of such determination, enter into offsetting Swap Agreements or terminate or unwind such Swap Agreements such that, at such time, future hedging volumes will not exceed 100% of reasonably anticipated projected production for the then-current and any succeeding calendar quarters for oil, gas and natural gas liquids, calculated separately.

**Section 7.14.** <u>Designation and Conversion of Restricted and Unrestricted Subsidiaries</u>. Notwithstanding anything to the contrary contained herein or any other Note Document, no Note Party may designate any Restricted Subsidiary, including a newly formed or newly acquired Subsidiary, as an Unrestricted Subsidiary.

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**Section 7.15.** <u>Organizational Documents</u>. Neither the Issuer nor any Restricted Subsidiary shall amend, modify or change its Organizational Documents, including the operating agreement, in any manner materially adverse to the rights or interests of the Holders (it being understood that (a) any amendment, modification or change of Organizational Documents that would impair or restrict the Liens of the Secured Parties on the Equity Interests of such Persons or their value (including after foreclosure), or the ability of the Secured Parties to exercise their rights and remedies with respect thereto under the Collateral Documents and (b) any amendment, modification or change, or waiver or consent to Section 4(b), Section 5, Section 6 and any provision relating to the assignment or termination thereof of the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, (c) Section 5, Section 6(a) and Section 6(b) of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation and (d) Section 6.04 or any provision relating to the pledge of equity in the Issuer's bylaws, in each shall be materially adverse to the rights and interests of the Holders).

**Section 7.16.** <u>Changes in Fiscal Year</u>. The Note Parties shall not, and shall not permit any Restricted Subsidiary to have its Fiscal Year end on a date other than December 31 or change its method of determining Fiscal Quarters.

**Section 7.17.** <u>Amendments to Material Agreements</u>. Neither the Issuer nor any Restricted Subsidiary shall amend, modify or change, or waive or consent to an amendment or modification of any material provision to, the Investment Management Agreement and the Administrative Services Agreement, in each case in any manner materially adverse to the rights or interests of the Holders (it being understood that any amendment, modification or change, or waiver or consent to Sections 4(a), (b) and (c) of the Investment Management Agreement shall be deemed materially adverse to the rights and interests of the Holders).

**Section 7.18.** <u>General and Administrative Costs</u>. The Note Parties shall not, and shall not permit any of their Restricted Subsidiaries to, make, directly or indirectly any payments in respect of General and Administrative Costs in any Fiscal Year other than cash payments which, when aggregated with all other General and Administrative Costs paid in cash by the Note Parties or any of the Restricted Subsidiaries during such Fiscal Year, do not exceed $3,000,000<u>4,500,000</u> in the aggregate; <u>provided</u> that, for the purposes of this <u>Section 7.18</u> only, <u>(a)</u> one-time transaction-related expenses incurred in connection with the First Amendment <u>and (b) one-time Second Amendment Transaction Expenses, in each case,</u> shall not constitute General and Administrative Costs.

**ARTICLE VIII** 

**PASSIVE HOLDING COMPANY STATUS OF THE ISSUER** 

Commencing on the Closing Date and until Payment in Full, the Issuer covenants and agrees with the Holders that it will not create, incur, assume or suffer to exist any Debt other than the Obligations or Lien other than Liens securing the Obligations, nor will it engage at any time in any business or business activity or hold or own any Property other than (a) the ownership of Equity Interests in WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC, (b) performance of its obligations under and in connection with the Note Documents, (c) issuing, selling and redeeming its Equity Interests, (d) paying Taxes in the ordinary course of business, (e) holding directors' and shareholders' meetings, preparing corporate and similar records and other activities (including the ability to incur fees, costs and expenses relating to such maintenance) required to maintain its corporate or other legal structure or to participate in tax, accounting or other administrative matters as a member of the consolidated group of the Issuer and its Subsidiaries, (f) preparing reports to, and preparing and making notices to and filings with, Governmental Authorities and to its holders of Equity Interests, (g) receiving, and holding proceeds of, Restricted Payments from its Subsidiaries and distributing the proceeds thereof to the extent not prohibited by <u>Sections 7.04</u> and <u>7.10</u>, (h) activities required by Governmental Requirements and (i) activities incidental to the business or activities described in each foregoing clauses

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of this <u>Article VIII</u>. The Issuer shall at all times pledge all of the Equity Interests of WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC (and shall, if such Equity Interests are certificated deliver to the Collateral Agent original stock certificates evidencing the Equity Interests of WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC, together with appropriate undated stock powers for each certificate duly executed in blank by the Issuer).

**ARTICLE IX** 

**EVENTS OF DEFAULT; REMEDIES** 

**Section 9.01.** <u>Events of Default</u>. In case of the happening of any of the following events ("**Events of Default**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Note Parties shall fail to pay any principal of (or associated make-whole or premium on) any Note when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof, by acceleration or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Note Parties shall fail to pay any interest on any Note or any fee or any other amount (other than an amount referred to in <u>Section 9.01(a)</u>) payable under any Note Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any representation or warranty made or deemed made by or on behalf of the Note Parties or any Restricted Subsidiary in or in connection with any Note Document or any amendment or modification of any Note Document or waiver under such Note Document, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with any Note Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made (or if already qualified by materiality or Material Adverse Effect, incorrect in any respect when made or deemed made);

(d)(i) the Note Parties or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in <u>Sections 6.01(k)</u>, <u>6.01(o)</u>, <u>6.01(u)</u>, <u>6.02</u>, <u>6.03</u> (solely in respect of the Issuer), <u>6.13</u>, <u>6.16</u>, <u>6.19</u>, or <u>Article VII</u> or (ii) the Issuer shall fail to observe or perform any covenant, condition or agreement contained in <u>Article VIII-A</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Note Parties or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement (i) contained in <u>Section 6.11</u>, and such failure shall continue unremedied for a period of twenty-five (25) days or (ii) otherwise contained in this Agreement (other than those specified in <u>Sections 9.01(a)</u>, <u>9.01(b)</u>, <u>9.01(d)</u>, or <u>9.01(e)(i)</u>) or in any other Note Document to which it is a party, and such failure shall continue unremedied for a period of thirty (30) days, in each case after the earlier to occur (i) notice thereof from the Agent to the Issuer (which notice will be given at the request of any Holder) or (ii) a Responsible Officer of the Issuer or such Restricted Subsidiary otherwise becoming aware of such default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Note Parties or any Restricted Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Debt, when and as the same shall become due and payable and such failure continues beyond any applicable grace period set forth in such Material Debt;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any event or condition occurs (including the termination of any Swap Agreement prior to its scheduled maturity as a result of an "Event of Default" or "Termination Event" (as such terms are defined in the relevant Swap Agreement)) that results in any Material Debt becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Debt or any trustee or agent on its or their behalf to cause any Material Debt to become due (other than by a regularly scheduled required prepayment), or to require the Redemption thereof or any offer to Redeem to be made in respect thereof, prior to its scheduled maturity or require the Note Parties or any Restricted Subsidiary to make an offer in respect thereof (other than any event requiring prepayment pursuant to customary asset sale or change of control provisions);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Note Parties or any Restricted Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Note Parties or any Restricted Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Note Party or any Restricted Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in <u>Section 9.01(h)</u>, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for a Note Party or any Restricted Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the foregoing;

(j)(i) one (1) or more judgments or settlements (or order by a Governmental Authority) for the payment of money (as reduced by (x) insurance proceeds covering such settlements, judgments or orders which are received or as to which the relevant insurance carriers have been notified of, and have not disputed coverage and (y) the amount by which such liability is cash collateralized and bonded) in an aggregate amount in excess of $2,000,000 shall be rendered against any Note Party, any Restricted Subsidiary or any combination thereof, and (A) there shall be a period of thirty (30) consecutive days during which the execution of such judgment or order is not subject to an effective stay of enforcement, or (B) action is legally taken by a judgment creditor or judgment creditors or the applicable Governmental Authority to attach or levy upon any assets of a Note Party or any of its Restricted Subsidiaries to enforce any such judgment or order, or (ii) one (1) or more non-monetary judgments or orders shall be rendered against any Note Party or Restricted Subsidiary which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, and there shall be a period of thirty (30) consecutive days during which such judgment is not subject to an effective stay of enforcement, by reason of a pending appeal or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Note Documents after delivery thereof shall for any reason, except to the extent permitted by the terms thereof, cease to be in full force and effect and valid, binding and enforceable in accordance with their terms against the Issuer or a Guarantor party thereto or shall be repudiated by any of them, or cease to create a valid and perfected first priority Lien in favor of the Collateral Agent on any material portion of the Collateral purported to be covered thereby, except to the extent permitted by the terms of this Agreement, or the Note Parties or any Restricted Subsidiary or any of their Affiliates shall so state or assert in writing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) a Change in Control shall occur and the Issuer fails to pay the Redemption Payment when due or otherwise consummate a redemption of the Notes as required by <u>Section 2.09(h)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) an ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in liability of the Note Parties and their Restricted Subsidiaries in an aggregate amount exceeding $2,000,000 that is not covered by independent third party insurance provided by insurers of the highest claims paying rating or financial strength as to which the insurer does not dispute coverage and is not subject to an insolvency proceeding;

then, and in every such event (other than an event with respect to a Note Party or its Subsidiaries described in <u>paragraph (h)</u> or <u>(i)</u> above), and at any time thereafter during the continuance of such event, the Agent shall, at the direction of the Requisite Holders, by notice to the Issuer, take either or both of the following actions, at the same or different times: (i) terminate the Commitments and thereupon the Commitments shall terminate immediately and (ii) declare the Notes then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), whereupon the principal of the Notes so declared to be due and payable, together with accrued interest thereon, any unpaid accrued fees, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, and all other liabilities of the Issuer or any other Note Party accrued hereunder and under any other Note Document, shall become due and payable immediately, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Issuer and the other Note Parties, anything contained herein or in any other Note Document to the contrary notwithstanding; and in any event with respect to any Note Party or its Subsidiaries described in <u>paragraph (h)</u> or <u>(i)</u> above, the Commitments shall automatically terminate and the principal of the Notes then outstanding, together with accrued interest thereon, any unpaid accrued fees, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, and all other liabilities of the Issuer or any other Note Party accrued hereunder and under any other Note Document, shall automatically become due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Issuer and the other Note Parties, anything contained herein or in any other Note Document to the contrary notwithstanding. In the case of the occurrence of an Event of Default, the Agents and the Holders will have all other rights and remedies available at law and equity. All proceeds realized from the liquidation or other disposition of Collateral or otherwise received after maturity of the Notes, whether by acceleration or otherwise, shall be applied in the order provided in <u>Section 2.11(f)</u>.

**Section 9.02.** <u>Treatment of Make-Whole Amount and Prepayment Fee</u>. Without limiting the terms of the last paragraph of <u>Section 9.01</u>, it is understood and agreed that (a) if the Notes are accelerated or otherwise become due, in each case, in respect of any Event of Default (including, but not limited to, upon the occurrence of a bankruptcy or insolvency related event (including acceleration of claims by operation of law)) or (b) upon the occurrence of the Board of Directors (or similar Governing Body or any committee thereof) of any Note Party or of any Person having Control of the Issuer adopting any resolution or otherwise authorizing any action to approve any bankruptcy or insolvency related event (each of the foregoing in <u>clauses (a)</u> and <u>(b)</u> and as contemplated by the penultimate paragraph of this paragraph, a "**Specified Event**"), the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, that would have applied if, at the time the Notes are accelerated or otherwise become due, the Issuer had prepaid, repaid, Redeemed, refinanced, substituted or replaced all of the Notes as contemplated in <u>Section 2.08</u> and <u>2.11(g)</u> will also be automatically and immediately due and payable without further action or notice and the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or shall constitute part of the Obligations, in view of the impracticability and extreme difficulty of ascertaining actual damages and

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by mutual agreement of the parties as to a reasonable calculation of the Holders' damages as a result thereof. Any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee payable hereunder shall be presumed to be the liquidated damages (and not, for avoidance of doubt, unmatured interest or a penalty) sustained by the Holders as the result of such Specified Event and the Issuer and the other Note Parties agree that the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) and Prepayment Fee, as applicable, are reasonable under the circumstances currently existing. In the event that the Obligations are reinstated in connection with or following any Specified Event, it is understood and agreed that the Obligations shall include any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, payable in accordance with this <u>Section 9.02</u>. The Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, shall also be payable in the event the Obligations (and/or this Agreement) are satisfied or released by foreclosure (whether by power of judicial proceeding), deed in lieu of foreclosure or by any other similar means.

THE ISSUER AND EACH OTHER NOTE PARTY EXPRESSLY WAIVES (TO THE FULLEST EXTENT IT MAY LAWFULLY DO SO) THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW THAT PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING MAKE-WHOLE AMOUNT (<u>PLUS</u> ANY PREMIUM PAYABLE IN CONNECTION THEREWITH) OR PREPAYMENT FEE IN CONNECTION WITH ANY SUCH SPECIFIED EVENT.

The Issuer and each other Note Party expressly agrees (to the fullest extent that it may lawfully do so) that: (i) the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) and Prepayment Fee, as applicable, are reasonable and are the product of an arm's length transaction between sophisticated business people, ably represented by counsel; (ii) the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or shall be payable notwithstanding the then prevailing market rates at the time payment is made; (iii) there has been a course of conduct between the Holders and the Issuer and the other Note Parties giving specific consideration in this transaction for such agreement to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable; and (iv) the Issuer and each other Note Party shall each be estopped hereafter from claiming differently than as agreed to in this paragraph.

The Issuer and each other Note Party expressly acknowledges that its agreement to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, to the Holders as herein described is a material inducement to the Holders to provide the Commitments and purchase the Notes.

**Section 9.03.** <u>Application of Funds</u>. All proceeds realized from the liquidation or other disposition of Collateral or otherwise received after maturity of the Notes, whether by acceleration or otherwise, shall be applied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to each of the Agent and the Collateral Agent in their capacities as such and Agent-related Indemnitee (including any costs and expenses related to foreclosure or realization upon, or protecting, Collateral);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section 11.03</u> under the Note Documents;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or other amount due and payable pursuant to <u>Section 2.11(g)</u> or <u>Section 9.02</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or other amount due and payable pursuant to <u>Section 2.11(g)</u> or <u>Section</u> <u>9.02</u> resulting from the payment of principal under <u>clause fifth</u> below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>fifth</u>, pro rata to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Note Parties at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>sixth</u>, pro rata to any other Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Note Parties or as otherwise required by any Governmental Requirement.

**Section 9.04.** <u>Credit Bidding</u>. In addition to any other rights and remedies granted to the Agents and the Holders in the Note Documents, the Collateral Agent (acting at the direction of the Requisite Holders) on behalf of the Holders may exercise all rights and remedies of a secured party under the UCC or any other applicable law. Without limiting the generality of the foregoing, the Collateral Agent (acting at the direction of the Requisite Holders), without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Note Party or any other Person (all and each of which demands, defenses, advertisements and notices are hereby waived by each of the Note Parties on behalf of itself and its Subsidiaries), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, or consent to the use by any Note Party of any cash collateral arising in respect of the Collateral on such terms as the Collateral Agent deems reasonable, and/or may forthwith sell, lease, assign give an option or options to purchase or otherwise dispose of and deliver, or acquire by credit bid on behalf of the Holders, the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales (including, without limitation, any sale conducted under the provisions of the Code, including under Sections 363, 1123 or 1129 of the Code, or any similar laws in any other jurisdictions to which a Note Party is subject), at any exchange, broker's board or office of the Collateral Agent or any Holder or elsewhere, upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery, all without assumption of any credit risk. In connection with any such credit bid and purchase, the Obligations owed to the Holders shall be entitled to be, and shall be, credit bid by the Collateral Agent at the direction of the Requisite Holders on a ratable basis (with Obligations with respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that shall vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) for the asset or assets so purchased (or for the equity interests or debt instruments of the acquisition vehicle or vehicles that are issued in connection with such purchase). In connection with any such bid (i) the Collateral Agent shall be authorized to form one or more acquisition vehicles and to assign any successful credit bid to such acquisition vehicle or vehicles, (ii) each of the Holders' ratable interests in the Obligations which were credit bid shall be deemed without any further action under this Agreement to be assigned to such vehicle or vehicles for the purpose of closing such sale, (iii) the Collateral Agent shall be authorized to adopt documents providing for the governance of the acquisition vehicle or vehicles (<u>provided</u> that any actions by the Collateral Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or equity interests thereof, shall be governed, directly or indirectly, by, and the governing documents shall provide for, control by the vote of the Requisite

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Holders or their permitted assignees under the terms of the Note Documents or the governing documents of the applicable acquisition vehicle or vehicles, as the case may be, irrespective of the termination of the Note Documents and without giving effect to the limitations on the actions by the Requisite Holders contained <u>Section 11.06</u>), (iv) the Collateral Agent on behalf of such acquisition vehicle or vehicles shall be authorized to issue to each of the Holders, ratably on account of the relevant Obligations which were credit bid, interests, whether as equity, partnership, limited partnership interests or membership interests, in any such acquisition vehicle and/or debt instruments issued by such acquisition vehicle, all without the need for any Holder or acquisition vehicle to take any further action, and (v) to the extent that Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any reason (as a result of another bid being higher or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of Obligations credit bid by the acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Holders pro rata with their original interest in such Obligations and the equity interests and/or debt instruments issued by any acquisition vehicle on account of such Obligations shall automatically be cancelled, without the need for any Holder or any acquisition vehicle to take any further action. Notwithstanding that the ratable portion of the Obligations of each Holder are deemed assigned to the acquisition vehicle or vehicles as set forth in <u>clause (ii)</u> above, each Holder shall execute such documents and provide such information regarding the Holder (and/or any designee of the Holder which will receive interests in or debt instruments issued by such acquisition vehicle) as the Collateral Agent acting at the direction of the Requisite Holders, may reasonably request in connection with the formation of any acquisition vehicle, the formulation or submission of any credit bid or the consummation of the transactions contemplated by such credit bid. The Collateral Agent or any Holder shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in any Note Party, which right or equity is hereby waived and released by each of the Note Parties on behalf of itself and its Subsidiaries. Each of the Note Parties further agrees on behalf of itself and its Subsidiaries, at the Collateral Agent's request, to assemble the Collateral and make it available to the Collateral Agent at places which the Collateral Agent shall reasonably select, whether at the premises of the Issuer, another Note Party or elsewhere. The Collateral Agent shall apply the net proceeds of any action taken by it pursuant to this <u>Section 9.04</u>, after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any other way relating to the Collateral or the rights of the Agents and the Holders hereunder, including reasonable attorneys' fees and disbursements, to the payment in whole or in part of the obligations of the Note Parties under the Note Documents, in such order as the Collateral Agent may elect, and only after such application and after the payment by the Collateral Agent of any other amount required by any provision of law, including Section 9-615(a)(3) of the UCC, need the Collateral Agent account for the surplus, if any, to any Note Party. To the extent permitted by applicable law, each of the Note Parties on behalf of itself and its Subsidiaries waives all claims, damages and demands it may acquire against the Agents or any Holder arising out of the exercise by them of any rights hereunder. If any notice of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least ten (10) days before such sale or other disposition. Notwithstanding anything provided in this <u>Section 9.04</u>, the Collateral Agent may delegate any or all of its rights to credit bid under this Section, this Agreement and the other Note Documents to EIG or the Requisite Holders or their designee, who will act as "Agent" or "Collateral Agent" for purposes of this <u>Section 9.04</u>.

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**ARTICLE X** 

**AGENTS** 

**Section 10.01.** <u>Appointment of Agents</u>. U.S. Bank Trust Company, National Association is hereby appointed Agent and Collateral Agent hereunder and under the other Note Documents and each Holder hereby authorizes U.S. Bank Trust Company, National Association, in such capacities, to act as its agent (including as collateral agent) in accordance with the terms hereof and the other Note Documents. Each Agent hereby agrees to act upon the express conditions contained herein and the other Note Documents, as applicable. The provisions of this <u>Article X</u> are solely for the benefit of the Agents and the Holders and no Note Party shall have any rights as a primary or third party beneficiary of any of the provisions thereof, except as expressly set forth herein. In performing its functions and duties hereunder, each Agent shall act solely as an agent of the Holders and does not assume and shall not be deemed to have assumed any obligation towards or relationship of agency or trust with or for any Note Party or any Affiliate thereof.

**Section 10.02.** <u>Powers and Duties</u>. Each Holder irrevocably authorizes each Agent to take such action on such Holder's behalf and to exercise such powers, rights and remedies and perform such duties hereunder and under the other Note Documents as are specifically delegated or granted to each Agent by the terms hereof and thereof, together with such actions, powers, rights and remedies as are reasonably incidental thereto. Each Agent shall have only those duties and responsibilities that are expressly specified herein and the other Note Documents. Without limiting the generality of the foregoing, each Agent shall not have or be deemed to have, by reason hereof or any of the other Note Documents, a fiduciary relationship in respect of any Holder, any Note Party or any other Person, whether before or after the occurrence of any Default or Event of Default; and nothing herein or any of the other Note Documents, expressed or implied, is intended to or shall be so construed as to impose upon either Agent any obligations in respect hereof or any of the other Note Documents except as expressly set forth herein or therein. The use of the term "agent" herein and in the other Note Documents with reference to any Agent is not intended to connote any fiduciary or the other implied (or express) obligations arising under agency doctrine of any applicable law; rather, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. Neither Agent is, and shall not be deemed to be, acting hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

**Section 10.03.** <u>General Immunity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Responsibility for Certain Matters</u>. Neither Agent shall be responsible for the execution, effectiveness, genuineness, validity, enforceability, collectability or sufficiency hereof or any other Note Document or for any representations, warranties, recitals or statements made herein or therein or made in any written or oral statements or in any financial or other statements, instruments, reports or certificates or any other documents furnished or made by either Agent or by or on behalf of any Note Party to an Agent or any Holder in connection with the Note Documents and the transactions contemplated hereby and thereby or for the financial condition or business affairs of any Note Party or any other Person liable for the payment of any Obligations, nor shall either Agent be required to ascertain or inquire as to the performance or observance of any of the terms, conditions, provisions, covenants or agreements contained in any of the Note Documents or as to the use of the proceeds of the Notes or as to the existence or possible existence of any Event of Default or Default or to make any disclosures with respect to the foregoing. Neither Agent shall be responsible for the satisfaction of any condition set forth in <u>Article III</u> or elsewhere in any Note Document, other than to confirm receipt of items expressly required to be delivered to such Agent. Neither Agent will be required to take any action that is contrary to applicable law or any provision of this Agreement or any Note Document or that may expose it to personal liability for which it is not indemnified. Anything contained herein to the contrary notwithstanding, neither Agent shall have any liability arising from confirmations of the amount of outstanding Notes or the component amounts thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exculpatory Provisions</u>. Subject to the remainder of this <u>clause (b)</u> hereof further limiting the liability of the Agents, neither Agent nor any of their officers, partners, directors, employees or agents shall be liable for any action taken or omitted by an Agent under or in connection with any of the Note Documents, except to the extent caused by such Agent's gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final, nonappealable order. Each Agent shall be entitled to refrain from any act or the taking of any action (including the failure to take an action) in connection herewith or any of the other Note Documents or from the exercise of any power, discretion or authority vested in it hereunder or thereunder, except powers and authority expressly contemplated hereby or thereby, unless and until such Agent shall have received written instructions in respect thereof from Requisite Holders (or such other Holders as may be required to give such instructions under <u>Section 11.06</u>) or in accordance with the applicable Note Document, and, upon receipt of such instructions from Requisite Holders (or such other Holders, as the case may be), or in accordance with the other applicable Note Document, as the case may be, such Agent shall act or (where so instructed) refrain from acting, or to exercise or refrain from exercising such power, discretion or authority, in accordance with such instructions. The permissive rights of each Agent hereunder and under the other Note Documents shall not be construed as duties. Without prejudice to the generality of the foregoing, (i) each Agent shall be entitled to rely, and shall be fully protected in relying and free from liability in relying, upon any communication, instrument, document, judgment, order or decree believed by it to be genuine and correct and to have been signed or sent by the proper Person or Persons, and shall be entitled to rely and shall be protected and free from liability in relying on opinions, advice and judgments of attorneys (who may be attorneys for the Note Parties), accountants, experts and other professional advisors selected by it; (ii) no Holder shall have any right of action whatsoever against an Agent as a result of such Agent acting or (where so instructed) refraining from acting hereunder or any of the other Note Documents in accordance with the instructions of Requisite Holders (or such other Holders as may be required to give such instructions under <u>Section 11.06</u>) or in accordance with the applicable Note Document; and (iii) neither Agent shall be liable for any action taken, or errors in judgment made, in good faith by it or any of its officers, employees or agents, unless such Agent shall have been grossly negligent in ascertaining the pertinent facts. Each Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Note Document unless such Agent shall first receive such advice or concurrence of the Requisite Holders or the Holders (as the case may be, as required by this Agreement), accompanied by, if requested, indemnity satisfactory to such Agent, and until such instructions and indemnity (if any) are received, each Agent shall have no duty to act, or refrain from acting, and shall have no liability to any Holder, any Note Party or any other Person for so doing. If an Agent so requests, it shall first be indemnified to its satisfaction by the Holders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. Each Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Note Document in accordance with a request or consent of the Requisite Holders and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Holders. No provision of this Agreement or any other Note Document or any agreement or instrument contemplated hereby or thereby, the Transactions contemplated hereby or thereby shall require an Agent to: (i) expend or risk its own funds or provide indemnities in the performance of any of its duties hereunder or the exercise of any of its rights or power or (ii) otherwise incur any financial liability in the performance of its duties or the exercise of any of its rights or powers. Neither Agent shall be responsible for (i) perfecting, maintaining, monitoring, preserving or protecting the security interest or Lien granted under this Agreement, any other Note Document or any agreement or instrument contemplated hereby or thereby, (ii) the filing, re-filing, recording, re-recording or continuing of any document, financing statement, continuation statement, amendment, mortgage, assignment, notice, instrument of further assurance or other instrument in any public office at any time or times, or (iii) providing, maintaining, monitoring or preserving insurance on or the payment of Taxes with respect to any of the Collateral. The actions described in <u>clauses (i)</u> through <u>(iii)</u> of the immediately preceding sentence shall be the responsibility of the Holders and the Note Parties. Neither Agent shall be required to qualify in any jurisdiction in which it is not presently qualified to perform its obligations as an Agent. Each Agent has accepted and is bound by the Note Documents executed by such Agent as of the date of this Agreement

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and, as directed in writing by the Requisite Holders, each Agent shall execute additional Note Documents delivered to it after the date of this Agreement; <u>provided</u>, <u>however</u>, that such additional Note Documents do not adversely affect the rights, privileges, benefits, immunities and indemnities of the Agents, in which case, the Agents may, but shall not be obligated to, enter into such Note Documents. Neither Agent will otherwise be bound by, or be held obligated by, the provisions of any loan agreement, indenture or other agreement governing the Obligations (other than this Agreement and the other Note Documents to which such Agent is a party). No written direction given to an Agent by the Requisite Holders or any Note Party that in the sole judgment of such Agent imposes, purports to impose or might reasonably be expected to impose upon such Agent any obligation or liability not set forth in or arising under this Agreement and the other Note Documents will be binding upon an Agent unless such Agent elects, at its sole option, to accept such direction. Neither Agent shall be responsible or liable for any failure or delay in the performance of its obligations under this Agreement or the other Note Documents arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of God; earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics; riots; business interruptions; loss or malfunctions of utilities, computer (hardware or software) or communication services; accidents; labor disputes; acts of civil or military authority and governmental action. Beyond the exercise of reasonable care in the custody of the Collateral in the possession or control of the Collateral Agent or its bailee, the Collateral Agent will not have any duty as to any other Collateral or any income thereon or as to preservation of rights against prior parties or any other rights pertaining thereto. The Collateral Agent will be deemed to have exercised reasonable care in the custody of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which it accords its other corporate trust customers, and the Collateral Agent will not be liable or responsible for any loss or diminution in the value of any of the Collateral by reason of the act or omission of any carrier, forwarding agency or other agent or bailee selected by the Collateral Agent in good faith. Neither Agent shall be responsible for or have any duty to ascertain or inquire into (1) any statement, warranty or representation made in or in connection with this Agreement or any other Note Document, (2) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith or (3) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default or Event of Default. Neither Agent will be responsible for the existence, genuineness or value of any of the Collateral or for the validity, perfection, priority or enforceability of the Liens in any of the Collateral, whether impaired by operation of law or by reason of any action or omission to act on its part hereunder, for the validity or sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of the title of any grantor to the Collateral, for insuring the Collateral or for the payment of Taxes or Liens upon the Collateral or otherwise as to the maintenance of the Collateral. Each Agent hereby disclaims any representation or warranty to the present and future holders of the Obligations concerning the perfection of the Liens granted hereunder or in the value of any of the Collateral. In the event that either Agent is required to acquire title to an asset for any reason, or take any managerial action of any kind in regard thereto, in order to carry out any obligation for the benefit of another, which in any Agent's sole discretion may cause such Agent to be considered an "owner or operator" under any Environmental Laws or otherwise cause such Agent to incur, or be exposed to, any Environmental Liability or any liability under any other Governmental Requirement, each Agent reserves the right, instead of taking such action, either to resign as an Agent or to arrange for the transfer of the title or control of the asset to a court appointed receiver. Neither Agent will be liable to any person for any Environmental Liability or any Environmental Claims or contribution actions under any Governmental Requirement by reason of such Agent's actions and conduct as authorized, empowered and directed hereunder or relating to any kind of discharge or Release or threatened discharge or Release of any Hazardous Materials into the environment at any property or facility that any Agent is required to acquire title to hereunder. Each Holder authorizes and directs each Agent to enter into this Agreement and the other Note Documents to which it is a party. Each Holder agrees that any action taken by an Agent or Requisite Holders in accordance with the terms of this Agreement or the other Note Documents and the exercise by an Agent or Requisite Holders of their respective powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Holders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice of Default</u>. Neither Agent shall be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to Events of Default in the payment of principal, interest and fees required to be paid to each Agent for the account of the Holders, unless each Agent shall have received written notice from a Holder or the Issuer in accordance with the notice requirements of <u>Section 11.01</u> herein referring to this Agreement, describing such Default or Event of Default and stating that such notice is a "notice of default." Agent will notify the Holders of its receipt of any such notice. Neither Agent shall have any liability for any interest rate published by any publication that is the source for determining the interest rates of the Notes, including but not limited to the SOFR Administrator's Website (or any successor source), or for any rates compiled by the CME Term SOFR Administrator or any successor thereto, or for any rates published on any of the foregoing cases for any delay, error or inaccuracy in the publication of any such rates, or for any subsequent correction or adjustment thereto.

**Section 10.04.** <u>Holders' Representations, Warranties and Acknowledgment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Holder represents and warrants to each Agent that it has made its own independent investigation of the financial condition and affairs of each Note Party, without reliance upon either Agent or any other Holder and based on such documents and information as it has deemed appropriate, in connection with Note Purchases hereunder and that it has made and shall continue to make its own appraisal of the creditworthiness of each Note Party. Neither Agent shall have any duty or responsibility, either initially or on a continuing basis, to make any such investigation or any such appraisal on behalf of the Holders or to provide any Holder with any credit or other information with respect thereto, whether coming into its possession before the purchase of the Notes or at any time or times thereafter, and neither Agent shall have any responsibility with respect to the accuracy of or the completeness of any information provided to the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Holder, by delivering its signature page to this Agreement, an Assignment Agreement or a joinder agreement and funding its Note, shall be deemed to have acknowledged receipt of, and consented to and approved, each Note Document and each other document required to be approved by each Agent, Requisite Holders or Holders, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Holder hereby agrees that (i) if any Agent notifies such Holder that such Agent has determined in its sole discretion that any funds received by such Holder from such Agent or any of its Affiliates (whether as a payment, prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, a "**Payment**") were erroneously transmitted to such Holder (whether or not known to such Holder), and demands the return of such Payment (or a portion thereof), such Holder shall promptly, but in no event later than one Business Day thereafter, return to such Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, and (ii) to the extent permitted by applicable law, such Holder shall not assert, and hereby waives, as to such Agent, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by such Agent for the return of any Payments received, including without limitation any defense based on "discharge for value" or any similar doctrine. A notice of any Agent to any Holder under this <u>Section 10.04</u> shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Holder hereby further agrees that if it receives a Payment from an Agent or any of its Affiliates (i) that is in a different amount than, or on a different date from, that specified in a notice of payment sent by such Agent (or any of its Affiliates) with respect to such Payment (a "**Payment Notice**") or (ii) that was not preceded or accompanied by a Payment Notice, it shall be on notice, in each such

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case, that an error has been made with respect to such Payment, and to the extent permitted by applicable law, such Holder shall not assert any right or claim to the Payment, and hereby waives, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by such Agent for the return of any Payments received, including without limitation waiver of any defense based on "discharge for value" or any similar doctrine. Each Holder agrees that, in each such case, or if it otherwise becomes aware that a Payment (or portion thereof) may have been sent in error, such Holder shall promptly notify such Agent of such occurrence and, upon demand from such Agent, it shall promptly, but in no event later than three (3) Business Days thereafter, return to such Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Issuer and each other Note Party hereby agrees that (i) in the event an erroneous Payment (or portion thereof) are not recovered from any Holder that has received such Payment (or portion thereof) for any reason, the Agents shall be subrogated to all the rights of such Holder with respect to such amount and (ii) an erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Issuer or any other Note Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each party's obligations under this <u>Section 10.04</u> shall survive the resignation or replacement of the Agents or any transfer of rights or obligations by, or the replacement of, a Holder, the termination of the Commitments or the repayment, satisfaction or discharge of all Obligations under any Note Document.

**Section 10.05.** <u>Successor Agents</u>. Subject to the appointment and acceptance of a successor Agent as provided in this <u>Section 10.05</u>, either Agent may resign at any time by giving thirty (30) days' prior written notice thereof to the Requisite Holders, and the Issuer. Any Agent may be removed as an Agent at the request of the Requisite Holders. Upon any such notice of resignation or removal, Requisite Holders shall have the right (with the consent of the Issuer (not to be unreasonably withheld, delayed or conditioned) unless an Event of Default shall have occurred and is continuing), to appoint a successor Agent; <u>provided</u> that such successor Agent shall be a nationally-recognized third party agent for similarly situated financings. If no successor shall have been so appointed by the Requisite Holders and shall have accepted such appointment within thirty (30) days after the retiring Agent gives notice of its resignation, then the retiring Agent's resignation shall nevertheless thereupon become effective and the Requisite Holders shall perform all of the duties of such Agent, as applicable, hereunder until such time, if any, as the Requisite Holders appoint a successor Agent as provided for above. In such case, the Requisite Holders shall appoint one Person to act as Agent for purposes of any communications with the Issuer, and until the Issuer shall have been notified in writing of such Person and such Person's notice address as provided for in <u>Section 11.01</u>, the Issuer shall be entitled to give and receive communications to/from the resigning Agent. Upon the acceptance of any appointment as Agent hereunder by a successor Agent and the payment of the outstanding fees and expenses of the resigning or removed Agent, at the Issuer's expense, that successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Agent and the retiring or removed Agent shall promptly (i) transfer to such successor Agent all sums and other items of Collateral held under the Collateral Documents, together with all records and other documents necessary or appropriate in connection with the performance of the duties of the successor Agent under the Note Documents, and (ii) execute and deliver to such successor Agent such amendments to financing statements, and take such other actions, as may be reasonably requested in connection with the assignment to such successor Agent of the security interests created under the Collateral Documents (the reasonable out-of-pocket expenses of which shall be borne by the Issuer), whereupon such retiring or removed Agent shall be discharged from its duties and obligations hereunder. After any retiring Agent's resignation or any Agent's removal hereunder as Agent or Collateral Agent, the provisions of this <u>Article X</u> and <u>Section 11.03</u> shall inure to its benefit as to any actions taken or omitted to be taken by it while it was an Agent hereunder. Any organization or

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other entity into which an Agent may be merged or converted or with which it may be consolidated, or any organization or other entity resulting from any merger, conversion or consolidation to which any Agent shall be a party, or any organization or other entity succeeding to all or substantially all of the corporate trust business of the Agents, shall be the successor to the Agents hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto.

**Section 10.06.** <u>Delegation of Duties</u>. Each Agent may perform any and all of its duties and exercise its rights and powers under this Agreement or under any other Note Document by or through any one or more sub-agents appointed by such Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Affiliates. Neither Agent shall be responsible for the acts or omissions of its sub-agents so long as they are appointed with due care. The exculpatory, indemnification and other provisions of <u>Article X</u> and <u>Section 11.03</u> shall apply to any Affiliates of each Agent and shall apply to their respective activities in connection with the syndication of the Notes issued hereby. All of the rights, benefits and privileges (including the exculpatory and indemnification provisions) of <u>Article X</u> and <u>Section 11.03</u> shall apply to any such sub-agent and to the Affiliates of any such sub-agent, and shall apply to their respective activities as sub-agent.

**Section 10.07.** <u>Collateral Documents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Agent under Collateral Documents</u>. Each Holder and other Indemnitee hereby further irrevocably authorizes the Collateral Agent, on behalf of and for the benefit of the Holders, to be the agent for and representative of Holders with respect to the Collateral Documents and to enter into such other agreements with respect to the Collateral (including intercreditor agreements) as it may deem necessary with the consent of the Requisite Holders. Subject to <u>Section 11.06</u>, the Collateral Agent may execute any documents or instruments necessary to (i) release any Lien encumbering any item of Collateral that is the subject of a sale or other disposition of assets permitted hereby and with respect to which release the Requisite Holders (or such other Holders as may be required to give such consent under <u>Section 11.06</u>) have consented or (ii) release any Guarantor from the Guarantee pursuant to the Guaranty Agreement with respect to which release the Requisite Holders (or such other Holders as may be required to give such consent under <u>Section 11.06</u>) have consented, in each case upon delivery by the Issuer to the Agent and Collateral Agent with a certificate of a Responsible Officer certifying that such release is authorized and permitted under by the Note Documents, and such other certifications or documents as the Agent or Collateral Agent (in each case, at the direction of the Requisite Holders) shall request. Whether or not expressly provided therein, the Agent and the Collateral Agent shall be entitled to all of the rights, privileges, immunities and indemnities provided in this Agreement in entering into and performing under the Collateral Documents and any other Note Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Right to Realize on Collateral and Enforce Guarantee</u>. Anything contained in any of the Note Documents to the contrary notwithstanding, the Issuer, the Agents and each Holder hereby agree that (i) no Holder shall have any right individually to realize upon any of the Collateral or to enforce any Guarantee or exercise any other remedy provided under the Note Documents (other than the right of set-off provided in <u>Section 11.04</u>), it being understood and agreed that all powers, rights and remedies hereunder may be exercised solely by the Collateral Agent (acting at the written direction of the Requisite Holders), on behalf of the Holders in accordance with the terms hereof and all powers, rights and remedies under this Agreement and the Collateral Documents may be exercised solely by the Collateral Agent (acting at the written direction of the Requisite Holders), and (ii) in the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale, the Collateral Agent or its nominee may be the purchaser of any or all of such Collateral at any such sale and the Collateral Agent, as agent for and representative of Holders (but not any Holder or Holders in its or their respective individual capacities unless the Requisite Holders shall otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the Obligations arising under the Note Documents as a credit on account of the purchase price for any collateral payable by the Collateral Agent at such sale.

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**Section 10.08.** <u>Posting of Approved Electronic Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Delivery of Communications</u>. Each Note Party hereby agrees, unless directed otherwise by an Agent or unless the electronic mail address referred to below has not been provided by an Agent to such Person, that it will provide to each Agent all information, documents and other materials that it is obligated to furnish to such Agent or to the Holders pursuant to the Note Documents, including all notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding any such communication that (i) is or relates to a Note Purchase Notice, (ii) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice of any Default or Event of Default under this Agreement or any other Note Document, or (iv) is required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement and/or any Note or other Note Purchase hereunder (all such non-excluded communications being referred to herein collectively as "**Communications**"), by transmitting the Communications in an electronic/soft medium that is properly identified in a format acceptable to the Issuer and each Agent to an electronic mail address as directed by each Agent. In addition, each Note Party agrees to continue to provide the Communications to each Agent or the Holders, as the case may be, in the manner specified in the Note Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Prejudice to Notice Rights</u>. Nothing herein shall prejudice the right of any Agent or any Holder to give any notice or other communication pursuant to any Note Document in any other manner specified in such Note Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>The Platform</u>. Each Note Party acknowledges that Agent will make available to Holders materials and/or information by posting such materials and/or information on IntraLinks/IntraAgency, Syndtrack or another similar electronic system (the "<u>Platform</u>"). THE PLATFORM IS PROVIDED "AS IS" AND "AS AVAILABLE." AGENT DOES NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE NOTE PARTIES' COMMUNICATIONS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIMS LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE NOTE PARTIES' COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. In no event shall Agent have any liability to the Note Parties, any Holder or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Note Parties' or the Agent's transmission of materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of Agent. In no event shall Agent have any liability for any damages arising from the use by others of any information or other materials obtained through the Platform.

**Section 10.09.** <u>Proofs of Claim</u>. The Holders and each Note Party hereby agree that after the occurrence of an Event of Default pursuant to <u>Section 9.01(h)</u> or <u>9.01(i)</u>, in case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Note Party, Agent (acting at the direction of Requisite Holders) (irrespective of whether the principal of any Note shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether Agent shall have made any demand on any Note Party) shall be entitled and empowered, by intervention in such proceeding or otherwise:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Notes and any other Obligations that are owing and unpaid and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Holders, the Agents and other agents (including any claim for the reasonable compensation, expenses, disbursements and advances of the Holders, the Agents and other agents and their agents and counsel and all other amounts due Holders, the Agents and other agents hereunder) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, interim trustee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to Agent and, in the event that Agent shall consent to the making of such payments directly to the Holders, to pay to Agent and Collateral Agent, as applicable, any amount due for the compensation, expenses, disbursements and advances of each Agent, Collateral Agent and their agents and counsel, and any other amounts due Agents and other agents hereunder. Nothing herein contained shall be deemed to authorize any Agent to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Holders or to authorize any Agent to vote in respect of the claim of any Holder in any such proceeding. Further, nothing contained in this <u>Section 10.09</u> shall affect or preclude the ability of any Holder to (i) file and prove such a claim in the event that an Agent has not acted within ten (10) days prior to any applicable bar date and (ii) require an amendment of the proof of claim to accurately reflect such Holder's outstanding Obligations.

**Section 10.10.** <u>Hedge Intercreditor Agreement</u>. Each Holder (and each Person that becomes a Holder hereunder pursuant to <u>Section 11.07</u>) hereby authorizes the Agent to enter into, join or otherwise become party to the Hedge Intercreditor Agreement on behalf of such Holder, in each case, as needed to effectuate the transactions permitted by this Agreement and agrees that the Agent may take such actions on its behalf as is contemplated by the terms of Hedge Intercreditor Agreement. Without limiting the provisions of <u>Section 10.02, 11.02</u> and <u>11.03</u>, each Holder hereby consents to each of the Agent and any successor serving in such capacities and agrees not to assert any claim (including as a result of any conflict of interest) against the any Agent, or any such successor, arising from the role of any Agent or such successor under the Note Documents or any such intercreditor agreement so long as it is either acting in accordance with the terms of such documents and otherwise has not engaged in gross negligence or willful misconduct (as determined in a final and non-appealable judgment by a court of competent jurisdiction). In addition, the Agent and Collateral Agent, or any such successors, shall be authorized, with the consent of the Requisite Holders, to execute or to enter into amendments of, and amendments and restatements of, the Collateral Documents, the Hedge Intercreditor Agreement and any additional and replacement intercreditor agreements, as is contemplated by the terms of the Hedge Intercreditor Agreement.

**Section 10.11.** <u>Indemnification</u>. To the extent that the Agents are not promptly reimbursed and indemnified by any Note Party, and after the Agents have made demand on any Note Party for the same, the Holders will, within five (5) days of written demand by the Agents, reimburse the Agents for, and indemnify and hold harmless the Agents from and against, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including client charges and expenses of counsel or any other advisor to Agents), advances or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against the Agents in any way relating to or arising

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out of this Agreement or any of the other Note Documents or any action taken or omitted by the Agents under this Agreement or any of the other Note Documents, in proportion to each Holder's Pro Rata Share; provided, however, that no Holder shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses, advances or disbursements for which there has been a final non-appealable judicial determination that such liability resulted from such applicable Agent's gross negligence or willful misconduct. The obligations of the Holders under this Section 10.11 shall survive the Payment in Full of the Obligations, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

**ARTICLE XI** 

**MISCELLANEOUS** 

**Section 11.01.** <u>Notices</u>. Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given to a Note Party or the Agents, shall be sent to such Person's address as set forth on <u>Appendix B</u> or in the other relevant Note Document, and in the case of any Holder, the address as indicated on <u>Appendix B</u> or otherwise indicated to Agents in writing. Each notice hereunder shall be in writing and may be personally served, sent by telefacsimile, electronic transmission or United States certified or registered mail or courier service and shall be deemed to have been given when delivered and signed for against receipt thereof, or upon confirmed receipt of telefacsimile or electronic transmission (which confirmation shall be made by telephone call by the sender to the Agents; confirmation by electronic messaging shall not be deemed to be confirmation of receipt).

**Section 11.02.** <u>Expenses</u>. Each Note Party shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Agents, the Holders and their Affiliates (including, without limitation, the reasonable fees, charges and disbursements of (A) one primary firm of counsel to the Holders, (B) one primary firm of counsel to the Agent and Collateral Agent, (C) one local counsel and one regulatory counsel in each relevant jurisdiction, if any and (D) reasonable travel, photocopy, mailing, courier, telephone and other similar expenses, in connection with the issuance of the Notes provided for herein, the preparation, negotiation, execution, delivery and administration (both before and after the execution hereof and including advice of counsel to the Agents and the Holders as to the rights and duties of any Agent and the Holders with respect thereto) of this Agreement and the other Note Documents and any amendments, modifications or waivers of or consents related to the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all costs, expenses, Taxes, assessments and other charges incurred by the Agents or any Holder in connection with any filing, registration, recording or perfection of any security interest contemplated by this Agreement or any Collateral Document or any other document referred to therein and (iii) all out-of-pocket expenses incurred by the Agents or any Holder, including the fees, charges and disbursements of counsel and other experts, in connection with the enforcement or protection of its rights in connection with this Agreement or any other Note Document, including its rights under this <u>Section 11.02</u>, or in connection with the Notes issued hereunder, including, without limitation, all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Notes. All amounts due under this <u>Section 11.02</u> shall be paid within thirty (30) days of receipt by the Issuer of an invoice. The agreements in this Section 11.02 shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

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**Section 11.03.** <u>Indemnity; Limitation of Liability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to the payment of expenses pursuant to <u>Section 11.02</u>, whether or not any or all of the Transactions shall be consummated, each Note Party agrees to defend (subject to Indemnitees' selection of counsel), indemnify, pay and hold harmless, EIG, the Agents and each Holder, their Affiliates and its and their respective officers, members, shareholders, partners, directors, trustees, employees, advisors (including attorneys, accountants and experts), representatives and agents and each of their respective successors and assigns and each Person who controls any of the foregoing (each, an "**Indemnitee**"), from and against any and all Indemnified Liabilities, **IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY, OR SOLE NEGLIGENCE OF SUCH INDEMNITEE**; <u>provided</u> that, no Note Party shall have any obligation to an Indemnitee hereunder with respect to any Indemnified Liabilities if such Indemnified Liabilities arise from the gross negligence or willful misconduct of that Indemnitee as determined by a court of competent jurisdiction in a final, nonappealable order, <u>provided</u> that no Note Party shall indemnify any Holder or its related Indemnitee for claims solely among the Holders (or any combination thereof) to the extent not related to a breach of an obligation of a Note Party as determined by a court of competent jurisdiction by final and nonappealable judgement. To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in this <u>Section 11.03</u> may be unenforceable in whole or in part because they are violative of any law or public policy, the applicable Note Party shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them. The indemnities and waivers set forth in this <u>Section 11.03(a)</u> shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent. All amounts due under this <u>Section 11.03(a)</u> shall be paid within thirty (30) days of receipt by the Issuer of an invoice.

(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the extent permitted by applicable law, no Note Party shall assert (and no Note Party shall permit is Affiliates to assert), and each Note Party hereby waives, releases and agrees not to sue upon any claim against EIG, the Agents and each Holder, their Affiliates and its and their respective officers, members, shareholders, partners, directors, trustees, employees, advisors (including attorneys, accountants and experts), representatives and agents and each of their respective successors and assigns and each Person who controls any of the foregoing (each such Person, a "**Holder-Related Party**") (and agrees to cause its Affiliates to do the same), on any theory of liability, for special, indirect, exemplary, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement, any Note Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the Transactions, any documentation related to any Note or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and each Note Party hereby waives, releases and agrees not to sue any Holder-Related Party upon any such claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor. The waivers set forth in this Section 11.03(b) shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the extent permissible under applicable law, none of the Agents, any Note Party or any Subsidiary shall have any liability for any special, indirect, exemplary, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement, any Note Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the Transactions, any documentation related to any Note or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, in respect of

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any such damages incurred or paid by an Indemnitee to a third party and for any out-of-pocket expenses in each case subject to the indemnification provisions of this <u>Section 11.03</u>; it being agreed that this sentence shall not limit the obligations of the Note Parties under <u>Section 11.03(a)</u>. The waivers set forth in this <u>Section 11.03(b)</u> shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Note Party hereby acknowledges and agrees that an Indemnitee may now or in the future have certain rights to indemnification provided by other sources ("**Other Sources**"). Each Note Party hereby agrees that (i) it is the indemnitor of first resort (i.e., its obligations to the Indemnitees are primary and any obligation of the Other Sources to provide indemnification for the same Indemnified Liabilities are secondary to any such obligation of the Note Party), (ii) that it shall be liable for the full amount of all Indemnified Liabilities, without regard to any rights the Indemnitees may have against the Other Sources, and (iii) it irrevocably waives, relinquishes and releases the Other Sources and the Indemnitees from any and all claims (A) against the Other Sources for contribution, indemnification, subrogation or any other recovery of any kind in respect thereof and (B) that an Indemnitee must seek expense advancement or reimbursement, or indemnification, from the Other Sources before the Note Party must perform its obligations hereunder. No advancement or payment by the Other Sources on behalf of an Indemnitee with respect to any claim for which such Indemnitee has sought indemnification from a Note Party shall affect the foregoing. The Other Sources shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery which the Indemnitee would have had against a Note Party if the Other Sources had not advanced or paid any amount to or on behalf of the Indemnitee.

**Section 11.04.** <u>Set Off</u>. In addition to any rights now or hereafter granted under applicable law or Governmental Requirement and not by way of limitation of any such rights, upon the occurrence and during the continuance of any Event of Default each Holder and its/their respective Affiliates is hereby authorized by each Note Party at any time or from time to time subject to the consent of Agent (such consent to be given or withheld at the written direction of the Requisite Holders), without notice to any Note Party or to any other Person (other than Agent), any such notice being hereby expressly waived, to set off and to appropriate and to apply any and all deposits (general or special, including Debt evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts (in whatever currency)) and any other Debt at any time held or owing by such Holder to or for the credit or the account of any Note Party (in whatever currency) against and on account of the obligations and liabilities of any Note Party to such Holder hereunder, and under the other Note Documents, including all claims of any nature or description arising out of or connected hereto or any other Note Document, irrespective of whether or not (a) such Holder shall have made any demand hereunder, (b) the principal of or the interest on the Notes or any other amounts due hereunder shall have become due and payable pursuant to <u>Article II</u> and although such obligations and liabilities, or any of them, may be contingent or unmatured, or (c) such obligation or liability is owed to a branch or office of such Holder different from the branch or office holding such deposit or obligation or such Debt.

**Section 11.05.** <u>[Reserved]</u>.

**Section 11.06.** <u>Amendments and Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Requisite Holders' Consent</u>. Subject to <u>Sections 11.06(b)</u> and <u>11.06(c)</u>, no amendment, modification, termination or waiver of any provision of the Note Documents, or consent to any departure by any Note Party therefrom, shall in any event be effective without the written concurrence of (i) in the case of this Agreement, the Issuer, the Agents and the Requisite Holders or (ii) in the case of any other Note Document (other than the Agent Fee Letter), the Note Parties party thereto and (A) Agents with the consent of the Requisite Holders or (B) the Requisite Holders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Affected Holders' Consent</u>. Without the written consent of each Holder that would be directly affected thereby, no amendment, modification, or consent shall be effective if the effect thereof would:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) reduce the principal of the Notes or waive or postpone scheduled final maturity of the Notes or waive, postpone or reduce any fixed and scheduled repayment of the Notes (it being understood that the waiver of (or amendment to the terms of) any mandatory prepayment of the Notes shall not constitute a postponement of any date scheduled for the payment of principal or interest);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject to <u>Section 2.15(b)</u>, (A) reduce the rate of interest on any Note of, or the amounts of fees payable to, such Holder, (B) extend the time for payment of any such interest or fees to such Holder or (C) waive any interest or fee payable hereunder to such Holder (<u>provided</u> that the application of the Default Rate pursuant to <u>Section 2.06(c)</u> may be reduced, extended or waived by the Requisite Holders);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) extend or increase the Commitment of such Holder (it being understood that a waiver of any condition precedent or of any Default or Event of Default, mandatory prepayment or mandatory reduction of the Commitments shall not constitute an extension or increase of any Commitment of any Holder);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) release all or substantially all the Guarantors from the Guarantee or release the Liens securing all or substantially all of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amend, modify, terminate or waive any provision of Sections <u>2.10</u>, <u>2.11(g)</u>, <u>2.12</u>, Section 9.03 or this Section 11.06(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) amend the definition of "Requisite Holders" or "Pro Rata Share".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Consents</u>. No amendment, modification, termination, or waiver of any provision of the Note Documents, or consent to any departure by any Note Party therefrom, shall materially and adversely amend, modify, terminate or waive any provision of <u>Article IX</u> as the same applies to any Agent or any Indemnitee Agent Party, or any other provision hereof as the same applies to the rights or obligations of any Agent, in each case without the consent of such Agent or such Indemnitee Agent Party. With limiting the foregoing, neither Agent shall be bound to follow or agree to any amendment or supplement to this Agreement that would increase or materially change or affect the duties, obligations or liabilities of such Agent (including without limitation the imposition or expansion of discretionary authority with respect to the benchmark), or reduce, eliminate, limit or otherwise change any right, privilege or protection of such Agent, or would otherwise change any right, privilege or protection of such Agent, or would otherwise materially and adversely affect such Agent, in each case in its reasonable judgment, without such party's express written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Execution of Amendments, etc</u>. Agent and Collateral Agent, if applicable, shall at the direction of the applicable Holders, execute amendments, modifications, waivers or consents on behalf of such Holders. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on any Note Party shall entitle any Note Party to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent effected in accordance with this <u>Section 11.06(d)</u> shall be binding upon

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each Holder at the time outstanding, each future Holder and, if signed by a Note Party, on such Note Party. Agent will deliver executed or true and correct copies of each amendment, modification, waiver, or consent effected pursuant to this <u>Section 11.06</u> to each Holder promptly following the date on which it is executed and delivered, or receives the consent or approval of the requisite percentage of Holders applicable thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Note Parties and Affiliates</u>. No Note Party will, and the Issuer will not permit any of its Subsidiaries, any of the Note Parties or any of their respective Affiliates, to, directly or indirectly, offer to purchase, prepay, Redeem or otherwise acquire any outstanding Notes, except as otherwise expressly permitted under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Amendment Consideration</u>. None of Issuer or any of its Affiliates or any other party to any Note Documents, directly or indirectly, will pay or cause to be paid any consent fees, or grant any security as an inducement for, any proposed amendment or waiver of any of the provisions of this Agreement or any of the other Note Documents unless each Holder of the Notes (irrespective of the kind and amount of Notes then owned by it) shall be informed thereof by Issuer and, if such Holder is entitled to the benefit of any such provision proposed to be amended or waived, shall be afforded the opportunity of considering the same, shall be supplied by Issuer and any other party hereto with sufficient information to enable it to make an informed decision with respect thereto and, to the extent such amendment or waiver is consented to by such Holder, shall be paid such remuneration and granted such security on the same terms. For the avoidance of doubt, nothing in this <u>Section 11.06(f)</u> is intended to restrict or limit the amendment requirements otherwise set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Consent in Contemplation of Transfer</u>. Any consent given pursuant to this <u>Section 11.06</u> or any other Note Document by a Holder that has transferred or has agreed to transfer its Note to any Person in connection with, or in anticipation of, such other Person acquiring, making a tender offer for or merging with the Issuer, any Note Party and/or any of their Affiliates, shall be void and of no force or effect except solely as to such Holder, and any amendments, modifications or terminations effected or waivers or consents granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other Holders that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such Holder.

**Section 11.07.** <u>Successors and Assigns; Assignments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns</u>. This Agreement shall be binding upon the parties hereto and their respective successors and assigns and shall inure to the benefit of the parties hereto and the successors and assigns of Holders. No Note Party's rights or obligations hereunder nor any interest therein may be assigned or delegated by any such Person without the prior written consent of all Holders (and any attempted assignment or transfer by any such Person without such consent shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly contemplated hereby, Affiliates of each of Agent and Holders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignments</u>. Subject to compliance with applicable securities laws, if any, any Holder may at any time sell, assign or otherwise transfer to one or more Eligible Assignees any Notes and all or any portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitments and the Notes held by it).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mechanics</u>. The assigning Holder and the assignee thereof shall execute and deliver to Agent an Assignment Agreement, a processing and recordation fee of $3,500 (other than in the case of an assignment from a Holder to its Affiliate or a Related Fund), all "know your customer" and anti-money laundering rules and regulations, including the USA PATRIOT Act, documents as reasonably requested by the Agent, together with such forms, certificates or other evidence, if any, with respect to United States federal Tax withholding matters as the assignee under such Assignment Agreement may be required to deliver to Agent and Issuer pursuant to <u>Section 2.14(e)</u> and <u>2.14(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notice of Assignment</u>. Upon its receipt and acceptance of a duly executed and completed Assignment Agreement, the processing and recordation fee of $3,500 (which, for the avoidance of doubt, is not required in the case of an assignment from a Holder to its Affiliate or to a Related Fund), any "know your customer" documents reasonably requested by the Agent, and any other forms, certificates or other evidence required by this Agreement in connection therewith, Agent shall record the information contained in such Assignment Agreement in the Register, shall give prompt notice thereof to the Issuer and shall maintain a copy of such Assignment Agreement. The Agent is not, and shall not be deemed to be, acting hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Representations and Warranties of Assignee</u>. Each Holder upon executing and delivering an Assignment Agreement, represents and warrants as of the applicable Effective Date (as defined in the applicable Assignment Agreement) that (i) it has experience and expertise in the making of or investing in notes; and (ii) it will make or invest in, as the case may be, its Notes for its own account in the ordinary course of its business and without a view to distribution of such Notes within the meaning of the Securities Act or the Exchange Act or other applicable securities laws (it being understood that, subject to the provisions of this <u>Section 11.07(e)</u>, the disposition of Notes or any interests therein shall at all times remain within its exclusive control). In addition, each Holder becoming party hereto after the Closing Date, upon executing and delivering an Assignment Agreement, shall be deemed to have made the representations and warranties contained in <u>Article V</u> as of the applicable Effective Date (as defined in the applicable Assignment Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Effect of Assignment</u>. Subject to the terms and conditions of this <u>Section 11.07(f)</u>, as of the "Effective Date" specified in the applicable Assignment Agreement and recordation in the Register: (i) the assignee thereunder shall have the rights and obligations of a "Holder" hereunder to the extent such rights and obligations hereunder have been assigned to it pursuant to such Assignment Agreement and shall thereafter be a party hereto and a "Holder" for all purposes hereof; (ii) the assigning Holder thereunder shall, to the extent that rights and obligations hereunder have been assigned thereby pursuant to such Assignment Agreement, relinquish its rights (other than any rights which survive the termination hereof under <u>Section 11.08</u>) and be released from its obligations hereunder (and, in the case of an Assignment Agreement covering all or the remaining portion of an assigning Holder's rights and obligations hereunder, such Holder shall cease to be a party hereto; <u>provided</u> that such assigning Holder shall continue to be entitled to the benefit of all indemnities and expense reimbursement rights hereunder as specified herein with respect to matters arising prior to such assignment); and (iii) if any such assignment occurs after the issuance of any Note hereunder, the assigning Holder shall, upon the effectiveness of such assignment or as promptly thereafter as practicable, surrender its applicable Note to the Issuer for cancellation, and thereupon the Issuer shall issue and deliver a new Note, if so requested by the assignee and/or assigning Holder, to such assignee and/or to such assigning Holder, with appropriate insertions, to reflect the outstanding principal balance under the Notes of the assignee and/or the assigning Holder. Notes shall not be transferred in denominations of less than $100,000 (unless transferred by any Holder to an Affiliate and/or a Related Fund of such Holder), <u>provided</u>, that if necessary to enable the registration of transfer by a Holder of its entire holding of Notes, a Note may be in a denomination of less than $100,000; <u>provided further</u>, that transfers by a Holder, its Affiliates and its Related Funds shall be aggregated for purposes of determining whether or not such $100,000 threshold has been reached.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Participations</u>. Subject to compliance with applicable securities laws, if any, each Holder shall have the right at any time to sell one or more participations to any Person (other than a natural Person, any Note Party or any of their respective Affiliates) (each, a "**Participant**") in all or any part of such Holder's rights and/or obligations under this Agreement (including all or a portion of its Notes or any other Obligation); <u>provided</u> that (i) such Holder's obligations under this Agreement shall remain unchanged, (ii) such Holder shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Issuer, Agents, and the Holders shall continue to deal solely and directly with such Holder in connection with such Holder's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Holder sells such a participation shall provide that such Holder shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u> that such agreement or instrument may provide that such Holder will not, without the consent of the Participant, agree to any amendment, modification or waiver described in <u>Section 11.06(b)</u> that affects such Participant. The Issuer agrees that each Participant shall be entitled to the benefits of <u>Sections 2.13</u> and <u>2.14</u> (subject to the requirements and limitations therein, including the requirements and limitations under <u>Section 2.14(e)</u> and <u>Section 2.14(f)</u>) (it being understood that the documentation required under <u>Section 2.14(e)</u> and <u>Section 2.14(f)</u> shall be delivered by the Participant to the applicable Holder) to the same extent as if it were a Holder and had acquired its interest by assignment pursuant to <u>paragraph (c)</u> of this <u>Section 11.07</u>; <u>provided</u> that such Participant shall not be entitled to receive any greater payment under <u>Section 2.11(h)</u> than the applicable Holder would have been entitled to receive with respect to the participation sold to such Participant, unless such greater payment results from a change in a Governmental Requirement that occurs after the Participant acquired the applicable participation, or is made with the Issuer's prior written consent. To the extent permitted by law, each Participant shall be entitled to the benefits of <u>Section 11.04</u> as though it were a Holder; <u>provided</u> that such Participant agrees to be subject to <u>Section</u> <u>2.14</u> as though it were a Holder. Each Holder that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Issuer, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Notes or other Obligations under the Note Documents (the "Participant Register"); <u>provided</u> that no Holder shall have any obligation to disclose all or a portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Note Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Treasury Regulation Section 5f.103-1(c), proposed Treasury Regulation Section 1.163-5 or any applicable temporary, final or other successor regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Holder shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register, and the Agent shall be entitled to treat the Holder, and not any Participant, as the Holder all purposes hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Independence of Covenants</u>. All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

**Section 11.08.** <u>Survival of Representations, Warranties and Agreements</u>. All representations, warranties and agreements made herein shall survive the execution and delivery hereof and the making of any Note Purchase. Notwithstanding anything herein or implied by law to the contrary, the agreements of each Note Party set forth in <u>Sections 2.14</u>, <u>11.02</u>, <u>11.03</u> and <u>11.04</u> and the agreements of Holders set forth in <u>Sections 2.12</u>, <u>2.14</u>, <u>10.11</u> and <u>11.03(b)</u> shall survive the payment of the Notes, the termination hereof and the resignation or removal of any Agent.

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**Section 11.09.** <u>No Waiver; Remedies Cumulative</u>. No failure or delay on the part of any Agent or any Holder in the exercise of any power, right or privilege (including with respect to any financial covenant calculation or evaluation of the calculation or components thereof) hereunder or under any other Note Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein (including with respect to any future covenant calculation or evaluation of the calculation or components thereof), nor shall any single or partial exercise of any such power, right or privilege preclude further or future exercise thereof or of any other power, right or privilege. The rights, powers and remedies given to Agents and each Holder hereby are cumulative and shall be in addition to and independent of all rights, powers and remedies existing by virtue of any statute or rule of law or in any of the other Note Documents. Any forbearance or failure to exercise, and any delay in exercising, any right or privilege, power or remedy hereunder (including with respect to any financial covenant calculation or evaluation of the calculation or components thereof) shall not impair any such right or privilege, power or remedy or be construed to be a waiver thereof, nor shall it preclude other, further or future exercise of any such right or privilege, power or remedy.

**Section 11.10.** <u>Marshalling; Payments Set Aside</u>. Neither Agent nor any Holder shall be under any obligation to marshal any assets in favor of any Note Party or any other Person or against or in payment of any or all of the Obligations. To the extent that any Note Party makes a payment or payments to any Agent or the Holders (or to any Agent, on behalf of the Holders), or any Agent or the Holders enforce any security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, any other state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred.

**Section 11.11.** <u>Severability</u>. In case any provision in or obligation hereunder or any Note or other Note Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

**Section 11.12.** <u>Obligations Several; Independent Nature of Holders' Rights</u>. The obligations of the Holders hereunder are several and no Holder shall be responsible for the obligations or Commitment of any other Holder hereunder. Nothing contained herein or in any other Note Document, and no action taken by the Holders pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Holder shall be a separate and independent debt, and each Holder shall be entitled to protect and enforce its rights arising out hereof and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose.

**Section 11.13.** <u>Tax Treatment</u>. The Issuer, the Agent and each Holder intend that the Notes shall be treated as indebtedness for Tax purposes and agree to report the Notes as indebtedness on all Tax returns.

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**Section 11.14.** <u>Headings</u>. Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.

**Section 11.15.** <u>APPLICABLE LAW</u>. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

**Section 11.16.** <u>CONSENT TO JURISDICTION</u>. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY HERETO ARISING OUT OF OR RELATING HERETO OR ANY OTHER NOTE DOCUMENT, OR ANY OF THE OBLIGATIONS, SHALL BE BROUGHT IN STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY HERETO, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (A) ACCEPTS GENERALLY AND UNCONDITIONALLY THE JURISDICTION AND VENUE OF SUCH COURTS; (B) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE NOTE PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH <u>SECTION</u> 11.01 IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE NOTE PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (D) AGREES THAT AGENTS AND THE HOLDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY NOTE PARTY IN THE COURTS OF ANY OTHER JURISDICTION.

**Section 11.17.** <u>WAIVER OF JURY TRIAL</u>. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER NOTE DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT OR THE HOLDER/ISSUER RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS <u>SECTION 11.17</u> AND EXECUTED BY EACH OF THE PARTIES HERETO THAT IS PARTY TO SUCH JUDICIAL PROCEEDING), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER NOTE DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE NOTES PURCHASED HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

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**Section 11.18.** <u>Confidentiality</u>. If the Issuer reasonably believes that any information being furnished by it or any other Note Party to Agent or a Holder ("Recipient") relating to it or its business is confidential, the Issuer may so indicate by notice in writing to the Recipient, identifying such information with specificity (such identified information, the "Confidential Information"), in which event the Recipient will use reasonable efforts to maintain the confidentiality thereof; <u>provided</u>, <u>however</u>, that a Recipient may disclose such information (a) to its Affiliates, partners, prospective partners, members and prospective members and its and their respective directors, managers, officers, employees, attorneys, accountants, advisors, auditors, consultants, agents or representatives with a need to know such Confidential Information (collectively "Permitted Recipients"); (b) to any potential assignee, participant, pledgee or transferee of any of its rights or obligations hereunder (including without limitation, in connection with a sale or participation of any or all of the Notes) or any of their related parties, agents and advisors (<u>provided</u> that such potential assignee, participant or transferee agree to be bound by provisions that are substantially similar to the restrictions set forth in this <u>Section 11.18</u>); (c) if such information (i) becomes publicly available other than as a result of a breach of this <u>Section 11.18</u>, (ii) becomes available to a Recipient or any of its Permitted Recipients on a non-confidential basis from a source other than the Note Parties or (iii) is independently developed by the Recipient or any of its Permitted Recipients without the use of or reliance on such information; (d) to enable it to enforce or otherwise exercise any of its rights and remedies under any Note Document; or (e) as consented to in writing by the Issuer. Notwithstanding anything to the contrary set forth in this <u>Section 11.18</u> or otherwise, nothing herein shall prevent a Recipient or its Permitted Recipients from complying with any legal requirements (including, without limitation, pursuant to any rule, regulation, stock exchange requirement, self-regulatory body, supervisory authority, other applicable judicial or governmental order, legal process, fiduciary or similar duties or otherwise) to disclose any Confidential Information. In addition, the Recipient and its Permitted Recipients may disclose Confidential Information if so requested by a governmental, self-regulatory or supervisory authority or examiner (including the National Association of Insurance Commissioners). Each Note Party hereby acknowledges and agrees that, subject to the restrictions on disclosure of Confidential Information as provided in this <u>Section 11.18</u>, the Recipient and their respective Affiliates are in the business of making investments in and otherwise engaging in businesses which may or may not be in competition with the Note Parties or otherwise related to their and their Affiliates' respective business and that nothing herein shall, or shall be construed to, limit the Holders' or their Affiliates' ability to make such investments or engage in such businesses. Notwithstanding any other provision of this <u>Section 11.18</u>, the parties (and each employee, representative, or other agent of the parties) may disclose to any and all Persons, without limitation of any kind, the Tax treatment and any facts that may be relevant to the Tax structure of the transactions contemplated by this Agreement and the other Note Documents; <u>provided</u>, <u>however</u>, that no party (and no employee, representative, or other agent thereof) shall disclose any other information that is not relevant to an understanding of the Tax treatment and Tax structure of the transaction (including the identity of any party and any information that could lead another to determine the identity of any party), or any other information to the extent that such disclosure could reasonably result in a violation of any applicable securities law. Issuer understands and acknowledges that in the regular course of a Holder's business, such Holder may invest in companies that have issued securities that are publicly traded (each, a "**Public Company**"). Accordingly, Issuer covenants and agrees that before providing material non-public information about a Public Company ("**Public Company Information**"), Issuer will provide prior written notice to the applicable compliance personnel indicated in <u>Schedule 11.18</u>. Issuer shall not disclose Public Company Information to such Holder without written authorization from such compliance personnel. Any Holder and Holder-Related Party may disclose the existence of this Agreement, the Transactions and the form of the financing, and place customary advertisements in financial and other news sources or on a home page or similar place and circulate similar promotional materials, in each case, after the effectiveness of this Agreement, including in the form of a "tombstone", which may include the size of the deal, the form of the financing, the Issuer's name, logo and a link to the Issuer's or an Affiliate's website.

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**Section 11.19.** <u>Usury Savings Clause</u>. Notwithstanding any other provision herein, the aggregate interest rate charged or agreed to be paid with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest under applicable law shall not exceed the Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence) under this Agreement at any time exceeds the Highest Lawful Rate, the outstanding amount of the Notes purchased hereunder shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect. In addition, if when the Notes purchased hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is less than the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by law, the Issuer shall pay to Agent an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding the foregoing, it is the intention of Holders and the Issuer to conform strictly to any applicable usury laws. Accordingly, if any Holder contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Holder's option be applied to the outstanding amount of the Notes purchased hereunder or be refunded to the Issuer. In determining whether the interest contracted for, charged, or received by Agent or a Holder exceeds the Highest Lawful Rate, such Person may, to the extent permitted by applicable law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest, throughout the contemplated term of the Obligations hereunder.

**Section 11.20.** <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.

**Section 11.21.** <u>USA PATRIOT Act</u>. Each Holder and each Agent (for itself and not on behalf of any Holder) hereby notifies each Note Party that pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record information that identifies such Note Party, which information includes the name and address of such Note Party and other information that will allow such Holder or such Agent, as applicable, to identify such Note Party in accordance with the USA PATRIOT Act.

**Section 11.22.** <u>Disclosure</u>. Each Note Party and each Holder hereby acknowledge and agree that the Agents and/or their Affiliates and their respective Related Funds from time to time may hold investments in, and make loans to, or have other relationships with any of the Note Parties and their respective Affiliates, including the ownership, purchase and sale of Equity Interests in any Note Party and their respective Affiliates and each Holder hereby expressly consents to such relationships.

**Section 11.23.** <u>Appointment for Perfection</u>. Each Holder hereby appoints each other Holder as its agent for the purpose of perfecting Liens, for the benefit of the Agents and the Holders, in assets which, in accordance with Article 9 of the UCC or any other applicable law can be perfected only by possession. Should any Holder obtain possession of any such Collateral, such Holder shall notify the Collateral Agent thereof, and, promptly upon Collateral Agent's request therefor shall deliver such Collateral to Collateral Agent or otherwise deal with such Collateral in accordance with Collateral Agent's instructions.

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**Section 11.24.** <u>Advertising and Publicity</u>. No Note Party shall issue or disseminate to the public (by advertisement, including without limitation any "tombstone" advertisement, press release or otherwise), submit for publication or otherwise cause or seek to publish any information describing the credit or other financial accommodations made available by Holders pursuant to this Agreement and the other Note Documents without the prior written consent of the Requisite Holders. Nothing in the foregoing shall be construed to prohibit any Note Party from making any submission or filing which it is required to make by applicable Governmental Requirement (including securities laws, rules and regulations), stock exchange rules or pursuant to judicial process; <u>provided</u>, that, (a) such filing or submission shall contain only such information as is necessary to comply with such applicable Governmental Requirement, rule or judicial process and (b) unless specifically prohibited by applicable law, rule or court order, the Issuer shall promptly notify Agent of the requirement to make such submission or filing and provide Agent with a copy thereof.

**Section 11.25.** <u>Acknowledgments and Admissions</u>. The Issuer hereby acknowledges and admits that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it has been advised by counsel in the negotiation, execution and delivery of the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has made an independent decision to enter into this Agreement and the other Note Documents to which it is a party, without reliance on any representation, warranty, covenant or undertaking by any Agent or any Holder, whether written, oral or implicit, other than as expressly set out in this Agreement or in another Note Document delivered on or after the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there are no representations, warranties, covenants, undertakings or agreements by the Agents or any Holder as to the Note Documents except as expressly set out in this Agreement and the other Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) none of the Agents or any Holder has any fiduciary obligation toward it with respect to any Note Document or the Transactions contemplated thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) no partnership or joint venture exists with respect to the Note Documents between any Note Party, on the one hand, and the Agents or any Holder, on the other;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Agents are not any Note Party's agent except as otherwise provided herein in <u>Section 2.06</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither Simpson Thacher & Bartlett LLP nor Shipman & Goodwin LLP is counsel for any Note Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) should an Event of Default or Default occur or exist, each Holder will determine in its discretion and for its own reasons what remedies and actions it will or will not direct the Agents to exercise or take at that time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) without limiting any of the foregoing, no Note Party is relying upon any representation or covenant by the Agents or any Holder, or any representative thereof, and no such representation or covenant has been made, that any of the Agents or any Holder will, at the time of an Event of Default or Default, or at any other time, waive, negotiate, discuss, or take or refrain from taking any action permitted under the Note Documents with respect to any such Event of Default or Default or any other provision of the Note Documents;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Agents and the Holders have all relied upon the truthfulness of the acknowledgments in this <u>Section 11.25</u> in deciding to execute and deliver this Agreement and to become obligated hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) each Note Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the fair meaning thereof.

**Section 11.26.** <u>Third Party Beneficiaries</u>. There are no third party beneficiaries to this Agreement other than Participants to the extent set forth in <u>Section 11.07(g)</u>, the Secured Hedge Providers and, to the extent set forth herein, the Indemnitees.

**Section 11.27.** <u>Entire Agreement</u>. This Agreement, and the other Note Documents represent the final agreement among the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements among the parties.

**Section 11.28.** <u>Transferability of Securities; Restrictive Legend</u>. Each note, certificate or other instrument evidencing the Notes issued by Issuer shall be stamped or otherwise imprinted with a legend in substantially the following forms:

"THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION."

Notwithstanding the foregoing, the restrictive legend set forth above shall not be required after the date on which the securities evidenced by such note, certificate or other instrument bearing such restrictive legend no longer constitute "restricted securities" (as defined in Rule 144 promulgated under the Securities Act), and upon the request of the Holder of such Notes, Issuer, without expense to such Holder, shall issue a new note, certificate or other instrument as applicable not bearing the restrictive legend otherwise required to be borne thereby. Agent shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on assignment imposed under this Agreement or under applicable law with respect to any assignment of any interest in any Note and Agent shall have no duty or responsibility to determine whether and when the restricted legend may be removed from the Notes.

**Section 11.29.** <u>Replacement of Notes</u>. Upon receipt by Issuer of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note, and (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (<u>provided</u> that if the Holder of such Note is, or is a nominee for, another Holder with a minimum net worth of at least $5,000,000, such Person's own unsecured agreement of indemnity shall be deemed to be satisfactory), or (b) in the case of mutilation, upon surrender and cancellation thereof, Issuer at its own expense shall execute and deliver, in lieu thereof, a new Note of the same series, dated and, in the case of a Note, bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

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**Section 11.30.** <u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>. Notwithstanding anything to the contrary in any Note Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Note Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder that may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Note Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

**Section 11.31.** <u>Hedge Intercreditor Agreement</u>. Notwithstanding anything herein to the contrary, the lien and security interest granted to the Collateral Agent, for the benefit of the Secured Parties, pursuant to this Agreement and the exercise of any right or remedy by the Collateral Agent and the other Secured Parties hereunder are subject to the provisions of the Hedge Intercreditor Agreement, as applicable. In the event of any conflict between the provisions of the Hedge Intercreditor Agreement and this Agreement, other than with respect to the Agent's or the Collateral Agent's own rights, privileges and immunities, the provisions of the Hedge Intercreditor Agreement shall control.

[*Signature Pages Follow.*]

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**<u>Exhibit B</u>**

[Attached.]

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**APPENDIX A** 

**COMMITMENTS** 

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| | |
|:---|:---|
| **Holder** | **Commitment** |
|  Pacific Indemnity Company | $83500000 |
|  EIG River Energy Partners, L.P. | $30000000 |
|  EIG Upstream Partners, L.P. | $30000000 |
|  Cardinal Energy LP | $50000000 |
|  ART Electro, S.C.SP. | $30000000 |
|  EIG Bandelier Partners, L.P. | $7500000 |
|  EIG Cumberland Partners, L.P. | $20000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $251000000 |

---

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**<u>Exhibit C</u>** 

[Attached.]

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**WhiteHawk Income Corporation** 

**Schedule 7.04** 

**Permitted Restricted Payments** 

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| | | | |
|:---|:---|:---|:---|
|  |  |  | Schedule Delivered on<br>6/23/2025 |
| **Permitted Restricted Payments** |  |  |  |
| **(to be paid in the ordinary course and consistent with prior practice)** | **(to be paid in the ordinary course and consistent with prior practice)** |  |  |
| **Common Equity Dividend** | Common Unit Dividend | Current Shares Outstanding<sup>(1)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Payable on July 15th, 2025* | *(per month)* |  |  |
|  | $0.156250 | 5144479 | $(803568) |
| **Series B Preferred Equity Dividend** | Preferred Unit Dividend | Current Shares Outstanding<sup>(1)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Payable on July 15th, 2025* | *(per month)* |  |  |
|  | $8.333333 | 17165 | $(143042) |
| **Series C Preferred Equity Dividend** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Payable on June 30th, 2025* |  | June 30th, 2025 |  |
|  |  | $644384 | $(644384) |
| **Sponsor Incentive Distribution** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Payable on July 15th, 2025* |  | July 15th, 2025 <sup>(2)</sup> |  |
|  |  | $135230 | $(135230) |
| **Monthly AUM Fee** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Payable on June 30th, 2025* |  | June 30th, 2025<sup>(3)</sup> |  |
|  |  | $534018 | $(534018) |

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(1) Additional equity closings scheduled for 6/27/25, 7/7/25, and 7/11/25

(2) Sponsor incentive payable on Common & Series B Distributions

(3) Calculated in accordance with the PPM based on assets under management averaged from the first and last day of
the calendar month

## Exhibit 4.5

**Exhibit 4.5** 

***EXECUTION VERSION***

**THIRD AMENDMENT TO NOTE PURCHASE AGREEMENT** 

This THIRD AMENDMENT TO NOTE PURCHASE AGREEMENT (this "<u>Third Amendment</u>") dated as of January 27, 2026, is among WhiteHawk Income Corporation, a Delaware corporation (the "<u>Issuer</u>"), U.S. Bank Trust Company, National Association, as agent (in such capacity, together with its successors and permitted assigns in such capacity, "<u>Agent</u>") and collateral agent for the Holders and the Secured Hedge Providers (in such capacity, together with its successors and permitted assigns in such capacity, the "<u>Collateral Agent</u>" and together with the Agent, the "<u>Agents</u>") and the Holders party hereto.

**RECITALS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. WHEREAS, the Issuer, the Agent, the Collateral Agent, the Holders and the other parties party thereto are parties to that certain Note Purchase Agreement, dated as of September 17, 2024 (as amended by that certain First Amendment to Note Purchase Agreement, dated as of March 31, 2025, as further amended by that certain Second Amendment to Note Purchase Agreement, dated as of June 23, 2025, and as further amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the "<u>Existing Note Purchase Agreement</u>" and as amended by this Third Amendment, the "<u>Note Purchase Agreement</u>"), pursuant to which the Holders purchased Notes from the Issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. WHEREAS, the Issuer has formed the following Subsidiaries for the purpose of effectuating a like kind exchange program under Section 1031 of the Internal Revenue Code with respect to certain acquired mineral interests (the "<u>Corporate Structuring Transactions</u>"): WhiteHawk Income OP GP LLC, a Delaware limited liability company ("<u>WHI GP</u>"), WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership ("<u>WHI OP</u>"), WhiteHawk DST Depositor LLC, a Delaware limited liability company ("<u>WH Depositor</u>"; collectively with WHI GP and WHI OP, the "<u>New Guarantors</u>" and each, individually, a "<u>New Guarantor</u>"), WhiteHawk DST Master Tenant LLC ("<u>WH Master Tenant</u>"), a Delaware limited liability company, and WhiteHawk Royalties I DST ("<u>WH DST</u>"), a Delaware Statutory Trust; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. WHEREAS, it is anticipated that any of WHI OP, WH Depositor, WH DST will acquire mineral interests and sell or dispose of such mineral interests to WH DST;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1. <u>Defined Terms</u>. Each capitalized term which is defined in the Note Purchase Agreement, but which is not defined in this Third Amendment, shall have the meaning ascribed such term in the Note Purchase Agreement. Unless otherwise indicated, all section references in this Third Amendment refer to sections of the Note Purchase Agreement.

Section 2. <u>Amendments to Existing Note Purchase Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Effective as of the Third Amendment Effective Date (as defined below), the Existing Note Purchase Agreement is hereby amended to (i) delete the stricken text (indicated textually in the same manner as the following example: **stricken text**) and (ii) add the double-underlined text (indicated textually in the same manner as the following example:<u>**double-underlined text**</u>), in each case, as set forth in the pages of the Note Purchase Agreement attached as <u>Exhibit A</u> hereto.

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Section 3. <u>Conditions Precedent</u>. This Third Amendment shall be deemed effective on the date (such date, the "<u>Third Amendment Effective Date</u>") when each of the following conditions is satisfied (or waived in accordance with <u>Section 11.06</u> of the Note Purchase Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The Agents (or their counsel) shall have received (for prompt delivery to each of the Holders) from the Issuer and each Holder a counterpart of this Third Amendment and each other Note Document required to be executed on the Third Amendment Effective Date signed on behalf of such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The Agent and the Holders shall have received a certificate from a Financial Officer of the Issuer dated as of the Third Amendment Effective Date certifying (i) that attached thereto is (A) a true and correct fully-executed copy of (I) the Amended and Restated Trust Agreement of WhiteHawk Royalties I DST, a Delaware Statutory Trust, dated as of January 27, 2026, by and among WhiteHawk DST Depositor LLC, as the depositor, WhiteHawk DST Manager LLC, as the Manager and signatory trustee, and Corporate Creations Network Inc., as the Delaware trustee (including all amendments, exhibits and schedules thereto), (II) the Master Lease, dated as of January 27, 2026, by and between WH Master Tenant, as lessee, and WH DST, as lessor (including all amendments, exhibits and schedules thereto) and (III) the Nominee Agreement, dated as of January 27, 2026, by and between WH Master Tenant and WH DST (including all amendments, exhibits and schedules thereto), with respect to clauses (I) through (III) above which shall be in form and substance reasonably satisfactory to the Holders and (B) a true and correct organizational chart of the Issuer and its Subsidiaries (ii) the Corporate Structuring Transactions have been consummated in their entirety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 The Agents and the Holders shall have received executed copies of the favorable written opinion of Weil Gotshal & Manges LLP, counsel for the Issuer and the Note Parties, dated the Third Amendment Effective Date, and in form and substance reasonably satisfactory to the Agents and the Holders. The Issuer and Note Parties hereby instruct such counsel to deliver such legal opinion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 The Holders shall have received (a) sufficient copies of each Organizational Document of the Issuer, and of each other Note Party, certified as of a recent date by the appropriate Governmental Authority, for each Holder, each dated the Third Amendment Effective Date or a recent date prior thereto; (b) signature and incumbency certificates of the officers of the Issuer and of each other Note Party executing the Note Documents; (c) resolutions of the Board of Directors, the manager(s) or member(s) or similar Governing Body of the Issuer and of each other Note Party approving and authorizing the execution, delivery and performance of this Third Amendment, the other Note Documents to which it is a party, certified as of the Third Amendment Effective Date by a Responsible Officer as being in full force and effect without modification or amendment; and (d) a good standing certificate for the Issuer and each other Note Party from the applicable Governmental Authority in such Person's jurisdiction of incorporation, organization or formation and in each jurisdiction in which such Person is qualified as a foreign corporation or other entity to do business, each dated a recent date prior to the Third Amendment Effective Date; *provided* that in lieu of the documents contemplated by the preceding clauses (a) and (b), a Responsible Officer for the relevant Note Party may certify that there have been no changes to such documents since the Second Amendment Effective Date to the extent delivered on the Second Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 Each of the Issuer, each other Note Party and their Subsidiaries shall have obtained all authorizations, consents and permits from any Governmental Authority and all consents of other Persons, in each case that are necessary or reasonably deemed by the Holders to be advisable in connection with the transactions contemplated herein, including without limitation, the Corporate Structuring Transactions and the entry into and performance of the agreements set forth in <u>Section 3.2(i)(A)(I) through</u> (III) (the "Transactions") and each of the foregoing shall be in full force and effect and in form and substance reasonably satisfactory to the Holders. All applicable waiting periods shall have expired without any action being taken or threatened by any competent authority that would restrain, prevent or otherwise impose adverse conditions on the Transactions and no action, request for stay, petition for review or rehearing, reconsideration, or appeal with respect to any of the foregoing shall be pending, and the time for any applicable agency to take action to set aside its consent on its own motion shall have expired.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 The Agent shall have received, at least one (1) Business Days prior to the Third Amendment Effective Date, (a) all documentation and other information required by regulatory authorities with respect to the Note Parties under applicable "know your customer" and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act and (b) if a Note Party qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to such Note Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 In order to create in favor of the Collateral Agent, for the benefit of the Holders a valid, perfected first priority security interest in all personal property Collateral of the Note Parties, including without limitation, each New Guarantor, the Agents shall have received (a) a duly executed Guaranty Agreement and an Assumption Agreement to the Pledge and Security Agreement from each New Guarantor, (b) evidence reasonably satisfactory to the Agents and the Holders of the compliance by each Note Party with its respective obligations under the Collateral Documents to which it is party (including its obligation to deliver UCC financing statements, originals of securities, instruments and chattel paper), (c) the results of a recent search of all effective UCC financing statements made with respect to any personal or mixed property of the Issuer and each Note Party in the applicable jurisdictions, together with copies of all such filings disclosed by such search that will not be terminated on the Third Amendment Effective Date and (d) UCC termination statements for filing in all applicable jurisdictions as may be necessary to terminate any effective UCC financing statements disclosed in such search that do not constitute Liens permitted under <u>Section 7.03</u> of the Note Purchase Agreement or Excepted Liens;

*<u>provided</u>, <u>that</u>*, to the extent any security interest in any Collateral of any New Guarantor cannot be provided and/or perfected on the Third Amendment Effective Date (other than the pledge and perfection of the security interests in other assets pursuant to which a Lien may be perfected by the filing of a UCC financing statement) after the Issuer's use of commercially reasonable efforts to do so or without undue burden or expense, then the provision and/or perfection of a security interest in such Collateral shall not constitute a condition to the Third Amendment Effective Date, but instead shall be required to be delivered and/or perfected after the Third Amendment Effective Date within thirty (30) days thereof (or such longer period as may be agreed by the Requisite Holders in their sole discretion). 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 All fees and expenses required to be paid pursuant to (a) that certain Agency Fee Letter and (b) <u>Section 11.02</u> of the Note Purchase Agreement and invoiced at least three (3) Business Days before the Third Amendment Effective Date (or such shorter period as may be agreed by the Issuer) shall have been paid in full in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 On the Third Amendment Effective Date after giving effect to the Transactions, (a) no Default or Event of Default shall have occurred and be continuing, and (b) all representations and warranties made by the Note Parties contained herein or in the other Note Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the Third Amendment Effective Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 No event or circumstance shall have occurred or be continuing since the Closing Date that has had, or would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 On the Third Amendment Effective Date, the Holders shall have received a Solvency Certificate from a Financial Officer substantially in the form of <u>Exhibit E</u> of the Note Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 The Issuer shall have delivered to the Agents and the Holders a certificate of a Financial Officer of the Issuer certifying as to matters set forth in <u>Sections 3.8</u> and <u>3.9</u>.

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The Agent (at the direction of the Requisite Holders) shall notify the Issuer of the Third Amendment Effective Date, and such notice shall be conclusive and binding.

For purposes of determining compliance with the conditions specified in this <u>Section 3</u>, each Holder that has signed this Third Amendment shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to such Holder, unless the Agent shall have received written notice from such Holder prior to the Third Amendment Effective Date specifying its objection thereto.

Section 4. <u>Conditions Subsequent</u>. Within 30 days after any change in legal name, organizational form, organizational identification number, or jurisdiction of organization of any Guarantor (including any New Guarantor), whether by conversion, reorganization or otherwise, the Issuer shall (a) file or cause to be filed all UCC financing statements (UCC-1), amendments (UCC-3) and other instruments in the applicable filing offices (including any new jurisdiction of organization) and (b) take such other actions as are necessary or reasonably requested by the Collateral Agent to continue, maintain and evidence the perfection and priority of the Collateral Agent's security interest in such Guarantor, and shall deliver to the Collateral Agent copies of such filings; provided that, in any event, all such actions shall be completed within the time periods required by the UCC to avoid any lapse in perfection.

Section 5. <u>Miscellaneous.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Confirmation</u>. The provisions of the Existing Note Purchase Agreement, as amended by this Third Amendment, shall remain in full force and effect following the Third Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Ratification and Affirmation; Representations and Warranties</u>. The Issuer hereby (a) acknowledges the terms of this Third Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Note Document to which it is a party and agrees that each Note Document to which it is a party remains in full force and effect as expressly amended hereby; (c) agrees that from and after the Third Amendment Effective Date each reference to the Note Purchase Agreement (including in the other Note Documents) shall be deemed to be a reference to the Existing Note Purchase Agreement, as amended by this Third Amendment; and (d) represents and warrants to the Holders and the Agents that as of the date hereof after giving effect to this Third Amendment: (i) all of the representations and warranties contained in each Note Document to which it is a party are true and correct in all material respects with the same effect as though such representations and warranties had been made on the Third Amendment Effective Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates) and (ii) no Default or Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>No Novation</u>. This Third Amendment does not extinguish the obligations for the payment of money outstanding under the Existing Note Purchase Agreement or discharge or release the obligations or the liens or priority of any mortgage, pledge, security agreement or any other security therefor. Nothing herein contained shall be construed as a substitution or novation of the obligations outstanding under the Existing Note Purchase Agreement or instruments securing the same, which shall remain in full force and effect, except as modified hereby or by instruments executed concurrently herewith. Nothing expressed or implied in this Third Amendment shall be construed as a release or other discharge of the Note Parties from any of their obligations or liabilities under the Note Purchase Agreement or any of the other Note Documents. The Issuer hereby confirms and agrees that each Note Document to which it or its predecessor in interest is a party or to which it is a successor by operation of law is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that on and after the Third Amendment Effective Date, all references in any such Note Document to "the Note Purchase Agreement", "thereto", "thereof", "thereunder" or words of like import referring to the Note Purchase Agreement shall mean the Note Purchase Agreement as amended by this Third Amendment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Counterparts</u>. This Third Amendment may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Third Amendment by signing any such counterpart. Delivery of an executed counterpart of this Third Amendment by fax or other electronic transmission (e.g., .pdf) shall be effective as delivery of a manually executed counterpart of this Third Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Integration</u>. This Third Amendment, the Note Purchase Agreement and the other Note Documents represent the final agreement between the parties with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Issuer, the Grantors, the Guarantors, either Agent nor any Holder relative to the subject matter hereof not expressly set forth or referred to herein or in the other Note Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>GOVERNING LAW</u>. THIS THIRD AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Payment of Expenses</u>. <u>Section 11.02</u> of the Note Purchase Agreement is hereby incorporated by reference, *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Severability</u>. In case any provision in or obligation hereunder or other Note Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>Successors and Assigns</u>. <u>Section 11.07(a)</u> of the Note Purchase Agreement is hereby incorporated by reference, *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <u>Note Document</u>. This Third Amendment is a "Note Document" as defined and described in the Note Purchase Agreement, and all of the terms and provisions of the Note Purchase Agreement relating to Note Documents shall apply hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <u>Direction to the Agents.</u> Pursuant to Sections 10.03 and 11.06 of the Existing Note Purchase Agreement, the undersigned Holders, which constitute all Holders under the Existing Note Purchase Agreement, by their signatures hereto hereby consent to this Third Amendment and authorize and direct the Agents to execute and deliver this Third Amendment and to perform their duties hereunder, including authorizing the filing of any UCC financing statements prepared by the Issuer or any Guarantor pursuant to Section 4 of this Third Amendment (this "<u>Direction</u>"). In entering into this Third Amendment, and in taking (or refraining from) any actions under or pursuant to this Amendment, the Agents shall be protected by and shall enjoy all of the rights, immunities, privileges, protections and indemnities granted to it under the Note Purchase Agreement. Each of the undersigned Holders hereby certify that (i) it has the full power and authority to provide this Direction, (ii) this Direction has been duly executed and delivered by such Holder and this Direction constitutes a legal, valid and binding obligation of such Holder, enforceable against the undersigned in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability and (iii) the Agents shall be entitled to rely on this Direction.

***[Signature Pages Follow]***

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IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be duly executed effective as of the Third Amendment Effective Date.

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| | |
|:---|:---|
| **WHITEHAWK INCOME CORPORATION** | **WHITEHAWK INCOME CORPORATION** |
| By: | /s/ Jeffrey Slotterback |
| Name: | Jeffrey Slotterback |
| Title: | Chief Financial Officer and Secretary |

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[*Third Amendment Signature Page*]

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| | | |
|:---|:---|:---|
| **AGENT:** |  | **U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,** as Agent |
|  | By: | /s/ James A. Hanley |
|  | Name: | James A. Hanley |
|  | Title: | Senior Vice President |

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[*Third Amendment Signature Page*]

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| | | |
|:---|:---|:---|
| **COLLATERAL AGENT**: | **U.S. BANK TRUST COMPANY,** | **U.S. BANK TRUST COMPANY,** |
|  | **NATIONAL ASSOCIATION**, as Collateral Agent | **NATIONAL ASSOCIATION**, as Collateral Agent |
|  | By: | /s/ Laurel Casasanta |
|  | Name: | Laurel Casasanta |
|  | Title: | Vice President |

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[***Third Amendment Signature Page***]

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| | |
|:---|:---|
| **EIG CUMBERLAND PARTNERS, L.P.**, as a Second Amendment Incremental Note Holder | **EIG CUMBERLAND PARTNERS, L.P.**, as a Second Amendment Incremental Note Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: | Kristin Kelly |
| Title: | Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: | Kamyar Daneshvar |
| Title: | Associate General Counsel |
| **ART ELECTRO, S.C**.SP., as a Holder and a Second Amendment Incremental Note Holder | **ART ELECTRO, S.C**.SP., as a Holder and a Second Amendment Incremental Note Holder |
| By: ART Electro GP S.à r.l., its general partner | By: ART Electro GP S.à r.l., its general partner |
| By: | /s/ Jean-Yves Corneau |
| Name: | Jean-Yves Corneau |
| Title: | Manager |
| By: | /s/ Richard Long |
| Name: | Richard Long |
| Title: | Manager |
| **EIG UPSTREAM PARTNERS, L.P.**, as a Holder | **EIG UPSTREAM PARTNERS, L.P.**, as a Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: | Kristin Kelly |
| Title: | Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: | Kamyar Daneshvar |
| Title: | Associate General Counsel |

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[***Third Amendment Signature Page***]

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| | |
|:---|:---|
| **PACIFIC INDEMNITY COMPANY**, as a Holder and a Second Amendment Incremental Note Holder | **PACIFIC INDEMNITY COMPANY**, as a Holder and a Second Amendment Incremental Note Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: | Kristin Kelly |
| Title: | Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: | Kamyar Daneshvar |
| Title: | Associate General Counsel |
| **CARDINAL ENERGY LP,** as a Holder and a Second Amendment Incremental Note Holder | **CARDINAL ENERGY LP,** as a Holder and a Second Amendment Incremental Note Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: | Kristin Kelly |
| Title: | Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: | Kamyar Daneshvar |
| Title: | Associate General Counsel |
| **EIG RIVER ENERGY PARTNERS L.P.**, as a Holder | **EIG RIVER ENERGY PARTNERS L.P.**, as a Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: | Kristin Kelly |
| Title: | Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: | Kamyar Daneshvar |
| Title: | Associate General Counsel |

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[***Third Amendment Signature Page***]

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| | |
|:---|:---|
| **EIG BANDELIER PARTNERS, L.P**., as a Holder | **EIG BANDELIER PARTNERS, L.P**., as a Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: | Kristin Kelly |
| Title: | Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: | Kamyar Daneshvar |
| Title: | Associate General Counsel |

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[***Third Amendment Signature Page***]

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**<u>Exhibit A</u>**

[Attached.]

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***Execution Version***

**WHITEHAWK INCOME CORPORATION** 

SENIOR SECURED FIRST LIEN NOTES DUE 2030

**$251,000,000 NOTE PURCHASE AGREEMENT** 

**DATED AS OF SEPTEMBER 17, 2024** 

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**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
| Article I<br> DEFINITIONS AND INTERPRETATION | Article I<br> DEFINITIONS AND INTERPRETATION |  |
| **Section 1.01.** | Terms Defined Above | 1 |
| **Section 1.02.** | Definitions | 1 |
| **Section 1.03.** | Accounting Terms | 42 |
| **Section 1.04.** | Interpretation, etc. | 43 |
| **Section 1.05.** | Calculations of Total PDP PV-10 Value | 44 |
| **Section 1.06.** | Free Cash Flow Distributions and Prepayments Spreadsheet | 46 |
| Article II<br> PURCHASE AND SALE OF NOTES | Article II<br> PURCHASE AND SALE OF NOTES |  |
| **Section 2.01.** | Note Purchase | 46 |
| **Section 2.02.** | The Notes; Purchases, Conversions and Continuations of Notes | 47 |
| **Section 2.03.** | Requests for Notes | 47 |
| **Section 2.04.** | Use of Proceeds | 48 |
| **Section 2.05.** | Evidence of Debt; Register; Holders' Books and Records; Notes | 48 |
| **Section 2.06.** | Interest; Fees | 48 |
| **Section 2.07.** | Repayment of Notes | 49 |
| **Section 2.08.** | Voluntary Prepayments | 49 |
| **Section 2.09.** | Mandatory Prepayments | 50 |
| **Section 2.10.** | Application of Payments | 53 |
| **Section 2.11.** | General Provisions Regarding Payments | 53 |
| **Section 2.12.** | Ratable Sharing | 55 |
| **Section 2.13.** | Increased Costs | 55 |
| **Section 2.14.** | Taxes; Withholding, etc. | 56 |
| **Section 2.15.** | Alternate Rate of Interest | 59 |
| **Section 2.16.** | Incremental Notes. | 61 |
| Article III<br> CONDITIONS PRECEDENT | Article III<br> CONDITIONS PRECEDENT |  |
| **Section 3.01.** | Closing Date | 63 |
| Article IV<br> REPRESENTATIONS AND WARRANTIES | Article IV<br> REPRESENTATIONS AND WARRANTIES |  |
| **Section 4.01.** | Organization; Powers | 67 |
| **Section 4.02.** | Authority; Enforceability | 67 |
| **Section 4.03.** | Approvals; No Conflicts | 67 |
| **Section 4.04.** | Financial Condition; No Material Adverse Effect | 67 |
| **Section 4.05.** | Litigation | 68 |
| **Section 4.06.** | Environmental Matters | 68 |
| **Section 4.07.** | Compliance with Laws and Agreements; No Defaults, Event of Default | 69 |
| **Section 4.08.** | Investment Company Act | 70 |
| **Section 4.09.** | Taxes | 70 |
| **Section 4.10.** | ERISA | 70 |
| **Section 4.11.** | Disclosure; No Material Misstatements | 71 |
| **Section 4.12.** | Insurance | 71 |

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| | | |
|:---|:---|:---|
| **Section 4.13.** | Subsidiaries; Foreign Operations | 72 |
| **Section 4.14.** | Properties; Titles, Etc. | 72 |
| **Section 4.15.** | [Reserved] | 73 |
| **Section 4.16.** | No Operations. | 73 |
| **Section 4.17.** | [Reserved] | 73 |
| **Section 4.18.** | Swap Agreements and Qualified ECP Guarantor | 73 |
| **Section 4.19.** | Use of Proceeds | 73 |
| **Section 4.20.** | Solvency | 73 |
| **Section 4.21.** | Anti-Corruption Laws, Sanctions and USA PATRIOT Act | 73 |
| **Section 4.22.** | Affected Financial Institutions | 74 |
| **Section 4.23.** | Collateral Documents | 74 |
| **Section 4.24.** | Senior Debt | 74 |
| **Section 4.25.** | Private Offering | 74 |
| Article V<br> REPRESENTATIONS OF HOLDERS | Article V<br> REPRESENTATIONS OF HOLDERS |  |
| **Section 5.01.** | Organization and Standing | 74 |
| **Section 5.02.** | Authorization; Enforceability | 74 |
| **Section 5.03.** | Investment | 74 |
| **Section 5.04.** | Accredited Investor | 75 |
| **Section 5.05.** | No Resale or Repurchase | 75 |
| **Section 5.06.** | Private Placement | 75 |
| **Section 5.07.** | Knowledge and Experience | 75 |
| **Section 5.08.** | No Materials | 75 |
| **Section 5.09.** | Transfer Restrictions | 76 |
| **Section 5.10.** | Offers and Sales Only in Certain Circumstances | 76 |
| **Section 5.11.** | Subsequent Purchaser Notification | 76 |
| Article VI<br> AFFIRMATIVE COVENANTS | Article VI<br> AFFIRMATIVE COVENANTS |  |
| **Section 6.01.** | Financial Statements; Other Information | 76 |
| **Section 6.02.** | Notices of Material Events | 81 |
| **Section 6.03.** | Existence; Conduct of Business | 82 |
| **Section 6.04.** | Payment of Taxes | 82 |
| **Section 6.05.** | [Reserved] | 82 |
| **Section 6.06.** | Insurance | 82 |
| **Section 6.07.** | Books and Records; Inspection Rights | 82 |
| **Section 6.08.** | Compliance with Laws | 83 |
| **Section 6.09.** | Environmental Matters | 83 |
| **Section 6.10.** | Further Assurances | 84 |
| **Section 6.11.** | Reserve Reports | 85 |
| **Section 6.12.** | Title Information | 85 |
| **Section 6.13.** | Collateral and Guaranty Agreements | 86 |
| **Section 6.14.** | ERISA Compliance | 88 |
| **Section 6.15.** | Commodity Exchange Act Keepwell Provisions | 88 |
| **Section 6.16.** | Deposit Accounts and Securities Accounts | 88 |
| **Section 6.17.** | Use of Proceeds | 88 |
| **Section 6.18.** | Swap Agreements | 89 |
| **Section 6.19.** | Post-Closing Covenant | 90 |
| **Section 6.20.** | Minimum Liquidity | 90 |

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| | | |
|:---|:---|:---|
| Article VII<br> NEGATIVE COVENANTS | Article VII<br> NEGATIVE COVENANTS |  |
| **Section 7.01.** | Financial Covenants | 91 |
| **Section 7.02.** | Debt | 92 |
| **Section 7.03.** | Liens | 93 |
| **Section 7.04.** | Dividends and Distributions | 94 |
| **Section 7.05.** | Investments and Advances | 96 |
| **Section 7.06.** | Nature of Business; Wholly-Owned Subsidiaries; No International Operations | 97 |
| **Section 7.07.** | ERISA Compliance | 97 |
| **Section 7.08.** | Mergers, Etc. | 98 |
| **Section 7.09.** | Sale of Properties and Termination of Swap Agreements | 98 |
| **Section 7.10.** | Transactions with Affiliates | 99 |
| **Section 7.11.** | Subsidiaries | 100 |
| **Section 7.12.** | Negative Pledge Agreements; Dividend Restrictions | 100 |
| **Section 7.13.** | Swap Agreements | 100 |
| **Section 7.14.** | Designation and Conversion of Restricted and Unrestricted Subsidiaries | 102 |
| **Section 7.15.** | Organizational Documents | 102 |
| **Section 7.16.** | Changes in Fiscal Year | 102 |
| **Section 7.17.** | Amendments to Material Agreements | 102 |
| **Section 7.18.** | General and Administrative Costs | 102 |
| **Article VIII**<br> **PASSIVE HOLDING COMPANY STATUS OF THE ISSUER** | **Article VIII**<br> **PASSIVE HOLDING COMPANY STATUS OF THE ISSUER** |  |
| Article IX<br> EVENTS OF DEFAULT; REMEDIES | Article IX<br> EVENTS OF DEFAULT; REMEDIES |  |
| **Section 9.01.** | Events of Default | 103 |
| **Section 9.02.** | Treatment of Make-Whole Amount and Prepayment Fee | 106 |
| **Section 9.03.** | Application of Funds | 107 |
| **Section 9.04.** | Credit Bidding | 107 |
| Article X<br> AGENTs | Article X<br> AGENTs |  |
| **Section 10.01.** | Appointment of Agents | 109 |
| **Section 10.02.** | Powers and Duties | 109 |
| **Section 10.03.** | General Immunity | 109 |
| **Section 10.04.** | Holders' Representations, Warranties and Acknowledgment | 112 |
| **Section 10.05.** | Successor Agents | 113 |
| **Section 10.06.** | Delegation of Duties | 114 |
| **Section 10.07.** | Collateral Documents | 114 |
| **Section 10.08.** | Posting of Approved Electronic Communications | 115 |
| **Section 10.09.** | Proofs of Claim | 116 |
| **Section 10.10.** | Hedge Intercreditor Agreement | 116 |
| **Section 10.11.** | Indemnification | 117 |

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| | | |
|:---|:---|:---|
| Article XI<br> MISCELLANEOUS | Article XI<br> MISCELLANEOUS |  |
| **Section 11.01.** | Notices | 117 |
| **Section 11.02.** | Expenses | 117 |
| **Section 11.03.** | Indemnity; Limitation of Liability | 118 |
| **Section 11.04.** | Set Off | 119 |
| **Section 11.05.** | [Reserved] | 120 |
| **Section 11.06.** | Amendments and Waivers | 120 |
| **Section 11.07.** | Successors and Assigns; Assignments | 121 |
| **Section 11.08.** | Survival of Representations, Warranties and Agreements | 124 |
| **Section 11.09.** | No Waiver; Remedies Cumulative | 124 |
| **Section 11.10.** | Marshalling; Payments Set Aside | 124 |
| **Section 11.11.** | Severability | 124 |
| **Section 11.12.** | Obligations Several; Independent Nature of Holders' Rights | 124 |
| **Section 11.13.** | Tax Treatment | 125 |
| **Section 11.14.** | Headings | 125 |
| **Section 11.15.** | APPLICABLE LAW | 125 |
| **Section 11.16.** | CONSENT TO JURISDICTION | 125 |
| **Section 11.17.** | WAIVER OF JURY TRIAL | 125 |
| **Section 11.18.** | Confidentiality | 126 |
| **Section 11.19.** | Usury Savings Clause | 127 |
| **Section 11.20.** | Counterparts | 127 |
| **Section 11.21.** | USA PATRIOT Act | 127 |
| **Section 11.22.** | Disclosure | 127 |
| **Section 11.23.** | Appointment for Perfection | 128 |
| **Section 11.24.** | Advertising and Publicity | 128 |
| **Section 11.25.** | Acknowledgments and Admissions | 128 |
| **Section 11.26.** | Third Party Beneficiaries | 129 |
| **Section 11.27.** | Entire Agreement | 129 |
| **Section 11.28.** | Transferability of Securities; Restrictive Legend | 129 |
| **Section 11.29.** | Replacement of Notes | 130 |
| **Section 11.30.** | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 130 |
| **Section 11.31.** | Hedge Intercreditor Agreement | 130 |

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| | | |
|:---|:---|:---|
| **APPENDICES:** | A | Commitments |
|  | B | Notice Addresses |
|  | C | Free Cash Flow Distributions and Prepayments |
|  | D | Free Cash Flow Distributions and Prepayments Spreadsheet |
| **SCHEDULES:** | 1.02(a) | Guarantors |
|  | 1.02(b) | Material Contracts |
|  | 4.13 | Subsidiaries |
|  | 4.18 | Swap Agreements |
|  | 7.04 | Permitted Restricted Payments |
|  | 7.05 | Existing Investments |
|  | 11.18 | Compliance Personnel |
| **EXHIBITS:** | A | Form of Note Purchase Notice |
|  | B-1 | Form of Note |
|  | B-2 | Form of Incremental Note |
|  | C | Form of Closing Date Certificate |
|  | D | Form of Compliance Certificate |
|  | E | Form of Solvency Certificate |
|  | F | Form of Guaranty Agreement |
|  | G | Form of Pledge and Security Agreement |
|  | H | Form of Assignment Agreement |
|  | I-1-4 | Form of U.S. Tax Compliance Certificate |
|  | J | Form of Reserve Report Certificate |
|  | K | Form of Free Cash Flow Utilization Certificate |
|  | L | Form of Mortgage |

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**WHITEHAWK INCOME CORPORATION** 

This **NOTE PURCHASE AGREEMENT**, dated as of September 17, 2024 (together with any amendments, restatements, amendments and restatements, supplements or other modifications hereto, the "**Agreement**"), is entered into by and among **WHITEHAWK INCOME CORPORATION**, a Delaware corporation (the "**Issuer**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pacific Indemnity Company, as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG River Energy Partners, L.P., as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG Upstream Partners, L.P., as Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG Bandelier Partners, L.P., as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cardinal Energy LP, as a Holder

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ART Electro, S.C.SP., as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG Cumberland Partners, L.P., as a Holder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. Bank Trust Company, National Association, as agent (in such capacity, the "**Agent**") and
collateral agent for the Holders and the Secured Hedge Providers (in such capacity, the "**Collateral Agent** ").

**W I T N E S E T H:** 

In consideration of the mutual covenants and agreements contained herein and the Notes to be purchased by Holders, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**ARTICLE I** 

**DEFINITIONS AND INTERPRETATION** 

**Section 1.01.** <u>Terms Defined Above</u>. As used in this Agreement, each term defined above has the meaning indicated above.

**Section 1.02.** <u>Definitions</u>. The following terms used herein, including in the preamble, recitals, exhibits and schedules hereto, shall have the following meanings:

"**ABR**" means, for any day, a rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day <u>plus</u> <sup>1</sup>⁄<sub>2</sub> of 1% (or if such day is not a Business Day, the immediately preceding Business Day) and (c) if available, the Adjusted Term SOFR Rate as determined two (2) U.S. Government Securities Business Days prior to such day (or if such day is not a Business Day, the immediately preceding Business Day); <u>provided</u> that for the purpose of this definition, the Adjusted Term SOFR Rate for any day shall be based on the Term SOFR Reference Rate at approximately 12:00 p.m., New York time on such day (or any amended publication time for the Term SOFR Reference Rate, as specified by the CME Term SOFR Administrator in the Term SOFR Reference Rate methodology). Any change in the ABR due to a change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR Rate shall be effective

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as of the opening of business on the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR Rate, respectively. For the avoidance of doubt, if the ABR shall be less than 3.75%, such rate shall be deemed to be 3.75% for purposes of this Agreement. In the event the Agent on any interest determination date is required, but unable, to determine a benchmark rate in accordance with at least of the procedures described above, ABR will be the Adjusted Term SOFR Rate as determined on the previous interest determination date.

"**ABR Note**" means Notes the rate of interest applicable to which is based upon the ABR. For the avoidance of doubt, Notes shall constitute ABR Notes only as set forth in <u>Section 2.15(a)</u> or as otherwise expressly set forth herein.

"**Accepting Holder**" as defined in <u>Section 2.09(g)</u>.

"**Acquired Assets**" means the Assets acquired pursuant to the Specified Acquisition Agreement.

"**Acquired Assets Reserve Report**" means that certain reserve report prepared by Encore Analytics, LLC in respect of the Acquired Assets of the Issuer, with an as of date of August 1, 2024.

"**Acquired PHX Assets**" means the rights, properties and assets of the Surviving Corporation (as defined in the Specified PHX Merger Agreement) and its subsidiaries acquired pursuant to the Specified PHX Merger Agreement.

"**Acquired SJM Assets**" means the Assets (as defined in the Specified SJM Acquisition Agreement) acquired pursuant to the Specified SJM Acquisition Agreement.

"**Adjusted Cash Flow from Operating Activities**"means, for any period, (a) Cash Flow from Operating Activities <u>minus</u> (b) to the extent included in Cash Flow From Operating Activities, any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries for such period, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments.

"**Administrative Services Agreement**" means that certain Administrative Services Agreement, dated as of March 1, 2022, between, the Issuer and WhiteHawk Management, LLC.

"**Adjusted Term SOFR Rate**" means an interest rate *per annum* equal to the Term SOFR Rate; <u>provided</u> that if the Adjusted Term SOFR Rate as so determined would be less than 2.75%, such rate shall be deemed to be 2.75% for the purposes of this Agreement.

"**Affected Financial Institution**" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"**Affiliate**" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified; <u>provided</u> that any Person that directly owns or holds twenty percent (20%) or more of any class of Equity Interests with voting power in such specified Person shall be deemed to be an Affiliate.

"**Affiliated Investor**" means any Person to the extent it owns or holds, directly or indirectly, or its Affiliate (other than the Issuer or any of its Subsidiaries) owns or holds, directly or indirectly, any Equity Interests of the Issuer or any of its Subsidiaries.

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"**Agent**" as defined in the preamble hereto. "Agents" means the Agent and the Collateral Agent.

"**Agent Fee Letter**" means that certain Fee Letter dated as of the Closing Date between the Issuer and the Agent.

"**Agent's Account**" means an account designated by Agent from time to time as the account into which Note Parties shall make all payments to Agent for the benefit of the Agent and the Holders under this Agreement and the other Note Documents.

"**Agent's Office**" means the "Agent's Office" as set forth on <u>Appendix B</u> or such other office as Agent may from time to time designate in writing to the Issuer and each Holder.

"**Aggregate Amounts Due**" as defined in <u>Section 2.12</u>.

"**Agreement**" as defined in the preamble.

"**Alternate Offer**" as defined in <u>Section 2.09(h)(iii)</u>.

"**Anti-Corruption Laws**" means all laws, rules, and regulations of any jurisdiction applicable to the Issuer or any of its Restricted Subsidiaries from time to time concerning or relating to bribery or corruption, including the FCPA.

"**Appalachia Gas**" means the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves of gas located within the States of Pennsylvania, Ohio and West Virginia.

"**Applicable Margin**" means, (a) prior to the Second Amendment Pre-Fund Date: (i) with respect to any Note (other than an ABR Note), a rate per annum equal to the Adjusted Term SOFR Rate <u>plus</u> 6.25% and (ii) with respect to any ABR Note, a rate per annum equal to ABR <u>plus</u> 5.25% and (b) on and after the Second Amendment Pre-Fund Date: (i) with respect to any Note (other than an ABR Note), a rate per annum equal to the Adjusted Term SOFR Rate <u>plus</u> 6.50% and (ii) with respect to any ABR Note, a rate per annum equal to ABR <u>plus</u> 5.50%.

"**Applicable Office**" means the office through which a Holder's investment in any Note is made.

"**Approved Counterparty**" means (a) Citadel Energy Marketing LLC, (b) BP Energy Company or (b) any other Person who, at the time of entering into a Swap Agreement, has a long term senior unsecured debt rating (or whose guaranteeing credit support provider has a long term senior unsecured debt rating) of A-/A3 by S&P or Moody's (or their equivalent) or higher.

"**Approved Petroleum Engineers**" means (a) Netherland, Sewell & Associates, Inc., (b) Ryder Scott Company, L.P., (c) Schaper Energy Consulting LLC and (d) any other nationally recognized independent petroleum engineering firms selected by the Issuer and reasonably acceptable to the Requisite Holders.

"**Asset Coverage Ratio**" means, with respect to any date of determination, the ratio of (a) the Total PDP PV-10 Value as of such date of determination to (b) the Total Net Debt as of such date of determination.

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"**Asset Sale**" means a sale, lease or sublease (as lessor or sublessor), sale and leaseback, assignment, conveyance, license, transfer or other disposition to, or any exchange of property with, any Person, in one transaction or a series of related transactions, of all or any part of any Person's businesses, assets or properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, including the Equity Interest owned by such Person (in each case of the foregoing, excluding any Casualty Event).

"**Assignment Agreement**" means an Assignment and Assumption Agreement substantially in form of <u>Exhibit H</u> or such other form reasonably acceptable to the Agent (at the direction of the Requisite Holders).

"**AUM Fee**" means the monthly asset management fee in an amount equal to 1.50% of the Issuer's total assets, payable by the Issuer to WhiteHawk Management, LLC, pursuant to Section 4(a) of the Investment Management Agreement.

"**Bail-In Action**" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"**Bail-In Legislation**" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

<u>"**Beneficial Owner**" has the meaning set forth in the definition of "Beneficial Owner" as set forth in the Trust Agreement as of the Third Amendment Effective Date.</u> 

"**Beneficial Ownership Certification**" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

"**Beneficial Ownership Regulation**" means 31 C.F.R. § 1010.230.

"**Bloomberg**" has the meaning set forth in the definition of "**Reinvestment Yield**".

"**Board**" means the Board of Governors of the Federal Reserve System of the United States of America or any successor Governmental Authority.

"**Board of Directors**" means (a) with respect to a corporation, the board of directors of the corporation or any committee thereof duly authorized to act on behalf of such board; (b) with respect to a partnership, the board of directors of the general partner of the partnership; (c) with respect to a limited liability company, the manager, managers, managing member or members or any controlling committee of managing members thereof; and (d) with respect to any other Person, the board or committee of such Person serving a similar function.

"**Business Day**" means any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the States of New York or Texas or is a day on which banking institutions located in either of such states are authorized or required by law or other governmental action to close.

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"**Called Principal**" means, with respect to any Note, the amount of principal of such Note that is to be prepaid pursuant to <u>Section 2.08</u>, <u>Section 2.09(c)</u>, or <u>Section 2.09(d)</u> or has become or is declared to be immediately due and payable pursuant to <u>Section 9.01</u>, as the context requires.

"**Cash Equivalents**" means (a) securities issued or fully guaranteed or insured by the United States Government or any agency thereof and backed by the full faith and credit of the United States having maturities of not more than twelve (12) months from the date of acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits, or bankers' acceptances having in each case a tenor of not more than twelve (12) months from the date of acquisition issued by any Holder or any U.S. commercial bank or any branch or agency of a non-U.S. commercial bank licensed to conduct business in the U.S. having combined capital and surplus of not less than $500,000,000 and having a short term deposit rating of no lower than A2 or P2, as such rating is set forth from time to time by S&P or Moody's, respectively; (c) commercial paper of an issuer rated at least A-1 by S&P or P-1 by Moody's at the time of acquisition, and in either case having a tenor of not more than twelve (12) months; (d) repurchase obligations with a term of not more than one-hundred eighty (180) days for underlying securities of the types described in <u>clauses (a)</u> and <u>(b)</u> entered into with any financial institution or recognized securities dealer meeting the qualifications specified in <u>clause (b)</u> above; and <u>(e)</u> deposits in money market funds and investments investing exclusively in investments described in <u>clauses (a)</u>, <u>(b)</u>, <u>(c)</u> and <u>(d)</u> above.

"**Cash Flow From Operating Activities**" means, for any period, the cash generated from the normal business operations of the Issuer and its Restricted Subsidiaries for such period, determined in a manner consistent with (a) the Issuer's past practice and (b)(i) the line item "Net Cash Flow, Total" contained in the Issuer's precedent lease operating statements (file name "WhiteHawk LOS through May 2024 (August 2024).xlsx") delivered by the Issuer to EIG on or prior to the Closing Date, incorporating the revenue and expenses from ongoing operations of the Issuer and its Restricted Subsidiaries including from Oil and Gas Properties and Swap Agreements, <u>minus</u> (ii) General and Administrative Costs of the Issuer and its Restricted Subsidiaries for such period, and <u>minus</u> (iii) Consolidated Interest Expense of the Issuer and its Restricted Subsidiaries for such period.

"**Casualty Event**" means any loss, casualty or other insured damage to, or any nationalization, taking under power of eminent domain or by condemnation or similar proceeding of, any Property of the Issuer or any of its Restricted Subsidiaries.

"**CERCLA**" has the meaning set forth in the definition of "Environmental Laws".

"**Change in Control**" means the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any "person" or "group" (within the meaning of Section 13(d) or 14(d) of the Exchange Act), shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of a percentage of the total voting or economic power of all classes of capital stock of the Issuer entitled to vote generally in the election of directors, of fifty percent (50%) or more on a fully diluted basis,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the occupation of a majority of the seats (other than vacant seats) on the board of directors of the Issuer by Persons who were neither (i) directors of Issuer on the Closing Date, (ii) nominated nor approved by the board of directors of Issuer nor (iii) appointed by WhiteHawk Management LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) WhiteHawk Management LLC shall cease to be one hundred percent (100%) owned and controlled, of record and beneficially, by WhiteHawk Minerals LLC,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) WhiteHawk Minerals LLC shall cease to be owned and controlled, of record and beneficially, fifty-one percent (51%) or more by WhiteHawk Energy LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) WhiteHawk Management LLC shall cease to Control the Issuer, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a "Change in Control" (or equivalent term as defined in any other instrument governing Material Debt) or any functionally equivalent concept under any other instrument governing Material Debt shall have occurred.

"**Closing Date**" means the date on which all of the conditions precedent set forth in <u>Section 3.01</u> have been satisfied or waived.

"**Closing Date Certificate**" means a Closing Date Certificate substantially in the form of <u>Exhibit C</u>.

"**CME Term SOFR Administrator**" means CME Group Benchmark Administration Limited as administrator of the forward-looking term Secured Overnight Financing Rate (SOFR) (or a successor administrator).

"**Code**" means Title 11 of the United States Code entitled "Bankruptcy," as now and hereafter in effect, or any successor statute.

"**Collateral Agent**" as defined in the preamble hereto.

"**Collateral Coverage Minimum**" as defined in <u>Section 6.13(a)</u>.

"**Collateral Documents**" means Guaranty Agreement, the Pledge and Security Agreement, the Mortgages, the Control Agreements, the Hedge Intercreditor Agreement and all other instruments, documents and agreements executed by any Note Party in connection with this Agreement or any of the other Note Documents that are intended to create, perfect or evidence Liens to secure the Obligations, including, without limitation, all other security agreements, account control agreements, pledge agreements, mortgages, deeds of trust, guarantees, subordination agreements, pledges, powers of attorney and assignments now, or hereafter executed by any Note Party and delivered to the Collateral Agent to secure the Obligations, as such agreements may be amended, restated, amended and restated, modified, supplemented or restated from time to time.

"**Commitment**" means, as to each Holder, its obligation to purchase a Note from the Issuer pursuant to <u>Section 2.01(a)</u> in an aggregate amount not to exceed the amount set forth opposite such Holder's name in <u>Appendix A</u> under the caption "Commitment." The aggregate amount of the Commitments is $251,000,000.

"**Commitments**" means such commitments of all Holders in the aggregate.

"**Commodity Account**" means any "commodity account" as defined in the UCC.

"**Commodity Exchange Act**" means the Commodity Exchange Act (7 U.S.C. § 1 *et seq.*), as amended from time to time, and any successor statute, and any regulations promulgated thereunder.

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"**Communications**" as defined in <u>Section 10.08(a)</u>.

"**Compliance Certificate**" means a Compliance Certificate substantially in the form of <u>Exhibit D</u>.

"**Confidential Information**" as defined in <u>Section 11.18</u>.

"**Connection Income Tax**" means Taxes described in (b) of the definition of Tax on the Overall Net Income that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"**Consolidated Interest Expense**" means, for any period, the sum (determined without duplication) of the aggregate gross interest expense of the Note Parties and their Consolidated Restricted Subsidiaries for such period. For purposes of the foregoing, gross interest expense shall be determined after giving effect to any net payments made or received by the Note Parties with respect to interest rate Swap Agreements.

"**Consolidated Net Income**" means with respect to the Issuer and the Consolidated Restricted Subsidiaries, for any period, the aggregate of the net income (or loss) of the Issuer and the Consolidated Restricted Subsidiaries for such period determined on a consolidated basis in accordance with GAAP; <u>provided</u> that there shall be excluded, without duplication, from such net income (to the extent otherwise included therein) the following: (a) the net income of (i) any Unrestricted Subsidiary and (ii) any Person in which the Issuer or any Consolidated Restricted Subsidiary has an interest (which interest does not cause the net income of such other Person to be consolidated with the net income of the Issuer and the Consolidated Restricted Subsidiaries in accordance with GAAP), except in the case of the foregoing clauses <u>(i)</u> and <u>(ii)</u> to the extent of the amount of dividends or distributions actually paid in cash during such period by such Unrestricted Subsidiary or other Person, as the case may be, to the Issuer or to a Consolidated Restricted Subsidiary, as the case may be, from cash generated by such Person; (b) the net income (but not loss) during such period of any Consolidated Restricted Subsidiary to the extent that the declaration or payment of dividends or similar distributions or transfers or loans by that Consolidated Restricted Subsidiary is not at the time permitted by operation of the terms of its charter or any agreement, instrument or Governmental Requirement applicable to such Consolidated Restricted Subsidiary or is otherwise restricted or prohibited, in each case determined in accordance with GAAP; (c) the net income (or loss) of any Person accrued prior to the date it becomes a Consolidated Restricted Subsidiary or is merged into or consolidated with the Issuer or any of its Consolidated Restricted Subsidiaries; (d) the cumulative effect of a change in accounting principles during such period to the extent included in Consolidated Net Income; (e) any net after tax effect on income (or loss) for such period attributable to the early extinguishment, cancellation, termination or unwinding of any Debt or Swap Agreement; (f) any unrealized income (or loss) for such period attributable to hedging obligations or other derivative instruments; (g) accruals and reserves established or adjusted, or other charges required as a result of, the adoption or modification of accounting policies during such period; (h) any gains or losses attributable to writeups or writedowns of assets; and (i) any non-cash gains or losses (including any positive or negative adjustments under FASB ASC 815 as a result of changes in the fair market value of derivatives).

"**Consolidated Restricted Subsidiaries**" means any Restricted Subsidiaries that are Consolidated Subsidiaries.

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"**Consolidated Subsidiaries**" means each Subsidiary of the Issuer (whether now existing or hereafter created or acquired) the financial statements of which shall be (or should have been) consolidated with the financial statements of the Issuer in accordance with GAAP.

"**Consolidated Total Net Leverage Ratio**" means, as of the last day of any fiscal quarter or "Applicable Distribution Period", as applicable, the ratio of Total Net Debt as of such date of determination to EBITDA for the Rolling Period or "Applicable Distribution Period", as applicable, then ending.

"**Consolidation**" as defined in <u>Section 7.08</u>.

"**Control**" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and "Controlled" have meanings correlative thereto.

"**Control Agreement**" means a control agreement, in form and substance reasonably satisfactory to the Collateral Agent and the Requisite Holders, entered into with the Collateral Agent and the bank or securities intermediary at which any Deposit Account, Commodity Account or Securities Account is maintained by any Note Party in accordance with <u>Section 6.16</u>.

<u>"**Conversion Notice**" means a "Conversion Notice" (or substantially similar term) as defined in the applicable Trust Agreement (in the case of the Initial Trust Agreement (the "**Initial Conversion Notice**"), as of the Third Amendment Effective Date).</u> 

"**Cure Amount**" as defined in <u>Section 7.01(c)</u>.

"**Cure Period**" as defined in <u>Section 7.01(c)</u>.

"**Debt**" means, for any Person, the sum of the following (without duplication): (a) all obligations of such Person for borrowed money or evidenced by bonds, bankers' acceptances, debentures, notes or other similar instruments; (b) all obligations of such Person (whether contingent or otherwise) in respect of letters of credit, surety or other performance bonds and similar instruments; (c) all accounts payable and all accrued expenses, liabilities or other obligations of such Person to pay the deferred purchase price of Property or services (excluding accounts payable and accrued expenses, liabilities or other obligations to pay the deferred purchase price of Property or services, from time to time incurred in the ordinary course of business which are not greater than ninety (90) days past due or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP); (d) all obligations under Finance Leases; (e) all obligations under Synthetic Leases; (f) all Debt (as defined in the other clauses of this definition) of others secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) a Lien on any Property of such Person, whether or not such Debt is assumed by such Person, to the extent of the lesser of (i) the amount of such Debt and (ii) the fair market value (as determined by the Issuer in good faith) of the Property of such Person securing such Debt; (g) all Debt (as defined in the other clauses of this definition) of others guaranteed by such Person or in which such Person otherwise assures a creditor against loss of the Debt (howsoever such assurance shall be made) to the extent of the lesser of the amount of such Debt and the maximum stated amount of such guarantee or assurance against loss; (h) all obligations or undertakings of such Person to maintain or cause to be maintained the financial position or covenants of others and, to the extent entered into as a means of providing credit support for the obligations of others and not primarily to enable such Person to acquire any such Property, all obligations or undertakings of such Person to purchase the Debt or Property of others; (i) obligations to deliver commodities, goods or services, including, without limitation, Hydrocarbons, in consideration of one or more advance payments,

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"**Declining Holder**" as defined in <u>Section 2.09(g)</u>.

"**Default**" means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

<u>"**Demand Note**" means any non-interest bearing demand note issued by a WH OP to a WH Master Tenant as capitalization of such WH Master Tenant in connection with a particular WH DST Offering, which Demand Note shall not exceed an aggregate Dollar amount equal to six (6) months of the maximum monthly "Base Rent" (as defined in the applicable Master Lease).</u>

"**Default Rate**" means any interest payable pursuant to <u>Section 2.06(c)</u>.

"**Deposit Account**" means any "deposit account" as defined in the UCC.

"**Discounted Value**" means, with respect to the Called Principal of any Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

"**Disqualified Capital Stock**" means any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event, matures or is mandatorily redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock), pursuant to a sinking fund obligation or otherwise, or is convertible or exchangeable for Debt or redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock) at the option of the holder thereof, in whole or in part, on or prior to the date that is ninety-one (91) days (or, if issued to an insider, three hundred sixty-six (366) days) after the Maturity Date.

"**Distributable Free Cash Flow**" means, as of any time of determination for a calendar month set forth under the heading "Distribution Month" in <u>Appendix C</u>, (a) an amount equal to Free Cash Flow (Forward) for such "Applicable CF Period", <u>minus</u> (b) the aggregate amount of Restricted Payments made during the then current period set forth under the heading "Applicable Distribution Period" in <u>Appendix C</u> prior to and at such time of determination under <u>Section 7.04(c)</u>, <u>minus</u> (c) the aggregate amount of Investments made during the then current Applicable Distribution Period prior to and at such time of determination pursuant to <u>Section 7.05(h)</u> (each such use under <u>clause (b)</u> and/or <u>clause (c)</u>, a "**Free Cash Flow Utilization**").

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"**Distribution Period A**" means the period commencing on the First Amendment Effective Date and ending on March 31, 2026.

"**Distribution Period B**" means the period commencing on April 1, 2026 and ending on September 30, 2027.

"**Distribution Period C**" means the period commencing on October 1, 2027 and continuing thereafter.

"**Distribution PF Basis**" means, (a) as to the calculation of the Consolidated Total Net Leverage Ratio, the Asset Coverage Ratio and Liquidity in connection with a Restricted Payment made pursuant to <u>Section 7.04(c)</u> and/or Investment made pursuant to <u>Section 7.05(h)</u>, such calculation will be made (i) on a pro forma basis, including giving pro forma effect (A) to the Restricted Payment and/or Distribution as if such Restricted Payment and/or Distribution occurred immediately prior to such date of determination and (B) to the extent a "CF Sweep Date" occurs during "Applicable CF Period", any prepayment of the Notes pursuant to <u>Section 2.09(a)</u> and (ii) as of (including utilizing Total Net Debt as of) the last Business Day prior to the date of such calculation and (b) as to the calculation of Liquidity in connection with <u>Section 2.09(a)</u>, such calculation will be made (i) on a pro forma basis, including giving pro forma effect to any prepayment of the Notes pursuant to <u>Section 2.09(a)</u> and (ii) as of the last Business Day prior to the date of such calculation. Pro forma calculations made pursuant to the definition of the term "Distribution PF Basis" shall be determined in good faith by a Responsible Officer of the Issuer and with supporting documentation reasonably acceptable to the Requisite Holders and with respect to the Asset Coverage Ratio, made in accordance with <u>Section 1.05</u> and <u>Section 6.01(u)</u>.

"**Dividend Incentive Fee**" means (a) the 12.50% fee of all distributions, including all Dividends (as defined in the Offering Memorandum (as defined in the Investment Management Agreement)) and Dividend Incentive Fees, earned and/or paid out by the Issuer to WhiteHawk Management, LLC during a calendar month pursuant to <u>Section 4(b)</u> of the Investment Management Agreement and (b) the Manager Fee Deferrals (as defined in the Investment Management Agreement) payable by the Issuer to WhiteHawk Management, LLC pursuant to <u>Section 4(c)</u> of the Investment Management Agreement.

"**Dollars**" and the sign "**$**" mean the lawful money of the United States of America.

"**Domestic Subsidiary**" means any Restricted Subsidiary that is organized under the laws of the United States of America or any state or territory thereof or the District of Columbia.

<u>"**DST Agreements**" means, collectively, (a) each Trust Agreement, (b) each Master Lease, (c) each Nominee Agreement and (d) each DST PPM.</u>

<u>"**DST Sell-Down**" means the syndication of class 1 beneficial interests in a WH DST pursuant to a DST PPM.</u>

<u>"**DST PPM**" means (a) the private placement memorandum describing the terms and conditions of the offering of class 1 beneficial interest in WhiteHawk Royalties I DST, a Delaware Statutory Trust (the "**Initial DST PPM**"), which private placement memorandum shall be in form and substance reasonably satisfactory to the Requisite Holders and (b) each private placement memorandum describing the terms of an offering of class 1 beneficial interest in a WH DST (other than WhiteHawk Royalties I DST) with substantially the same form, terms and conditions as the Initial DST PPM.</u>

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"**EBITDA**" means, for any period, Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increased (without duplication) by the following, in each case (other than in the case of <u>clause (a)(v)</u> below) to the extent deducted from or otherwise not included (and not added back) in the determination of Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provision for taxes based on income or profits or capital, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Consolidated Interest Expense for such period (net of interest income of the Issuer and the Consolidated Subsidiaries for such period), <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) depreciation, depletion and amortization expense, including the amortization of intangible assets established through purchase accounting and the, amortization of deferred financing fees for such period, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other non-cash charges reducing Consolidated Net Income for such period (<u>provided</u> that if any such non-cash charges represent an accrual or reserve for potential cash items in any future period, the cash payment in respect thereof in such future period shall be subtracted from EBITDA on a dollar-for-dollar basis to such extent, and excluding amortization of a prepaid cash item that was paid in a prior period), <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) reasonable (A) Transaction Expenses incurred on, prior to or within three (3) months of the Closing Date and (B) costs and expenses incurred in connection with any Investments, acquisitions (or purchases of assets (including those relating to Oil and Gas Properties)), asset dispositions (including those relating to Oil and Gas Properties), recapitalizations, mergers, amalgamations, repayment, refinancing amendment or modification of Debt or similar transactions after the Closing Date permitted hereunder up to an aggregate amount pursuant to this <u>clause (B)</u> not to exceed $3,000,000 in any period, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the amount of AUM Fees and Dividend Incentive Fees for such period, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any net loss from disposed, abandoned or discontinued operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) decreased (without duplication) by the following, in each case to the extent included in determining Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) non-cash items increasing Consolidated Net Income for such period, excluding any non-cash items that represent the reversal of an accrual or cash reserve for any anticipated cash charges in any prior period where such accrual or cash reserve is no longer required (other than any such accrual or cash reserve that has been added back to Consolidated Net Income in calculating EBITDA in accordance with this definition), <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any net income from disposed, abandoned or discontinued operations, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any non-cash items with respect to cash actually received in a prior period unless such cash did not increase EBITDA in such prior period.

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For the purposes of calculating EBITDA for any Rolling Period or for any "Application Distribution Period" as set forth on Appendix C, (i) if during such Rolling Period or "Application Distribution Period", as applicable, the Issuer or any Consolidated Restricted Subsidiary shall have made a Material Disposition, EBITDA for such Rolling Period or "Application Distribution Period", as applicable, shall be calculated on a Pro Forma Basis, and (ii) if during such Rolling Period or "Application Distribution Period", as applicable, the Issuer or any Consolidated Restricted Subsidiary shall have made a Material Acquisition, EBITDA for such Rolling Period or "Application Distribution Period", as applicable, shall be calculated on a Pro Forma Basis.

Notwithstanding anything to the contrary, (x) for purposes of calculating EBITDA for any Rolling Period or "Application Distribution Period", as applicable, that includes any of the fiscal quarters or calendar months, as applicable, ending July 31, 2025, August 31, 2025, September 30, 2025, October 31, 2025, November 30, 2025, December 31, 2025, January 31, 2026, February 28, 2026, March 31, 2026, April 30, 2026 or May 31, 2026, EBITDA for such fiscal quarters or calendar months, as applicable, shall be (I) for July 31, 2025, EBITDA for the calendar month ending July 31, 2025 multiplied by twelve (12); (II) for August 31, 2025, EBITDA for the two consecutive calendar months ending August 31, 2025 multiplied by six (6); (III) for September 30, 2025, EBITDA for the three consecutive calendar months ending September 30, 2025 multiplied by four (4); (IV) for October 31, 2025, EBITDA for the four consecutive calendar months ending October 31, 2025 multiplied by three (3); (V) for November 30, 2025, EBITDA for the five consecutive calendar months ending November 30, 2025 multiplied by twelve-fifths (12/5); (VI) for December 31, 2025, EBITDA for the six consecutive calendar months ending December 31, 2025 multiplied by two (2); (VII) for January 31, 2026, EBITDA for the seven consecutive calendar months ending January 31, 2026 multiplied by twelve-sevenths (12/7); (VIII) for February 28, 2026, EBITDA for the eight consecutive calendar months ending February 28, 2026 multiplied by three-halves (3/2); (IX) for March 31, 2026, EBITDA for the nine consecutive calendar months ending March 31, 2026 multiplied by four-thirds (4/3); (X) for April 30, 2026, EBITDA for the ten consecutive calendar months ending April 30, 2026 multiplied by six-fifths (6/5) and (XI) for May 31, 2026, EBITDA for the eleven consecutive calendar months ending May 31, 2026 multiplied by twelve-elevenths (12/11) and (y) (i) for purposes of the First Amendment LOS/CF Certificate EBITDA only, EBITDA for the trailing twelve months shall be deemed to be $42,000,000 and (ii) for purposes of the Second Amendment LOS/CF Certificate EBITDA only, EBITDA for the trailing twelve months shall be deemed to be $66,000,000.

"**EEA Financial Institution**" means (a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country that is a parent of an institution described in <u>clause (a)</u> of this definition, or (c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in <u>clauses (a)</u> or <u>(b)</u> of this definition and is subject to consolidated supervision with its parent.

"**EEA Member Country**" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"**EEA Resolution Authority**" means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"**EIG**" means EIG Credit Management Company, LLC.

"**Eligible Assignee**" means (a) any Holder, (b) any Subsidiary, Related Fund or Affiliate of a Holder and (c) other than a natural Person, any Note Party or any of their respective Affiliates or any Holder or any Subsidiary, Related Fund or Affiliate thereof, any Institutional Investor or other Person, in each such case for such Institutional Investor or other Person in this <u>clause (c)</u> with the consent of the

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Issuer, such consent not to be unreasonably withheld, conditioned or delayed; <u>provided</u> that, (i) if an Event of Default has occurred and is continuing, the consent of the Issuer will not be required and (ii) the Issuer shall be deemed to have consented to any such Person unless it shall object thereto by written notice to the Agent within ten (10) Business Days after having received notice thereof; <u>provided further</u> that in any event "Eligible Assignee" shall not include any Affiliated Investor.

"**Environmental Claim**" means any notice, notice of noncompliance, violation or potential responsibility, legally binding directive, claim, action, suit, arbitration, complaint, proceeding, demand, abatement order or other order by any Governmental Authority or any other Person, arising (a) pursuant to or in connection with any actual or alleged violation of any Environmental Law; (b) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or (c) in connection with any actual or alleged damage, injury, threat or harm to human health or safety (to the extent relating to exposure to Hazardous Materials), natural resources or the environment.

"**Environmental Laws**" means any and all Governmental Requirements pertaining in any way to the environment, the preservation or reclamation of natural resources (including flora and fauna), induced seismicity, or the management, Release or threatened Release of any Hazardous Materials, including, to the extent applicable, the Oil Pollution Act of 1990, as amended, the Outer Continental Shelf Lands Act, the Clean Air Act, as amended, the Comprehensive Environmental, Response, Compensation, and Liability Act of 1980 ("**CERCLA**"), as amended, the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act of 1970, as amended, the Resource Conservation and Recovery Act of 1976 ("**RCRA**"), as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Endangered Species Act, as amended, the Migratory Bird Treaty Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, and the Hazardous Materials Transportation Act, as amended.

"**Environmental Liability**" means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), directly or indirectly resulting from or based upon (a) any violation of any applicable Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) any exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement to the extent liability is assumed or imposed with respect to any of the foregoing.

"**Environmental Permit**" means any permit, registration, license, notice, approval, consent, exemption, variance, or other authorization required under or issued pursuant to applicable Environmental Laws.

"**Equity Interests**" means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest.

"**ERISA**" means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute.

"**ERISA Affiliate**" means each trade or business (whether or not incorporated) which together with the Issuer or a Restricted Subsidiary would be deemed to be a "single employer" within the meaning of Section 4001(b)(1) of ERISA or Sections 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, under Sections 414(m) or (o) of the Code.

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"**ERISA Event**" means (a) the occurrence of a "Reportable Event" described in Section 4043 of ERISA with respect to a Plan subject to Title IV of ERISA (other than a Multiemployer Plan) other than a Reportable Event as to which the provision of thirty (30) days' notice to the PBGC is expressly waived under applicable regulations, (b) the withdrawal of the Issuer, a Restricted Subsidiary or any ERISA Affiliate from a Plan subject to Section 4063 of ERISA during a plan year in which it was a "substantial employer" as defined in Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA, (c) the filing of a notice of intent to terminate a Plan subject to Title IV of ERISA (other than a Multiemployer Plan) or the treatment of a Plan amendment as a termination under Section 4041 of ERISA, (d) the institution of proceedings to terminate a Plan by the PBGC, (e) receipt of a notice of withdrawal liability pursuant to Section 4202 of ERISA, or (f) the occurrence of any other event or condition which would reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan.

"**ESG Survey**" as defined in <u>Section 6.01(q)</u>.

"**EU Bail-In Legislation Schedule**" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"**Event of Default**" as defined in <u>Section 9.01</u>.

"**Excepted Liens**" means (a) Liens for Taxes, assessments or other governmental charges or levies which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (b) Liens in connection with workers' compensation, unemployment insurance or other social security, old age pension or public liability obligations, which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (c) statutory landlord's liens, operators', vendors', carriers', warehousemen's, repairmen's, mechanics', suppliers', workers', materialmen's, construction or other like Liens, in each case, arising by operation of law in the ordinary course of business each of which is in respect of obligations that are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (d) contractual Liens which arise in the ordinary course of business under operating agreements, joint venture agreements, oil and gas partnership agreements, oil and gas leases, farm-out agreements, farm-in agreements, division orders, contracts for the sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual interest agreements, overriding royalty agreements, marketing agreements, processing agreements, development agreements, gas balancing or deferred production agreements, injection, repressuring and recycling agreements, which are limited to the assets that are subject to the relevant agreement, and seismic or other geophysical permits or agreements, and other agreements, in each case which are usual and customary in the Oil and Gas Business and are for claims which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; <u>provided</u> that any such Lien referred to in this clause does not materially impair the use of any material Property covered by such Lien for the purposes for which such Property is held by the Issuer or any Restricted Subsidiary or materially impair the value of any material Property subject thereto; (e) Liens arising solely by virtue of any statutory or common law provision relating to banker's liens, rights of set-off or similar rights and remedies and burdening only deposit accounts or other funds maintained with a creditor depository institution; <u>provided</u> that no such deposit account is a dedicated cash collateral account or is subject to restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Board and no such deposit account is intended by the Note Parties or any of their Restricted Subsidiaries to provide collateral to the depository institution; (f) easements, restrictions, servitudes, permits, conditions, covenants, exceptions

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or reservations in any Property of the Issuer or any Restricted Subsidiary for the purpose of roads, pipelines, transmission lines, transportation lines, distribution lines for the removal of gas, minerals or oil and other like purposes, or for the joint or common use of real estate, rights of way, facilities and equipment, that do not secure any Debt or monetary obligations and which in the aggregate do not materially impair the use of such Property for the purposes of which such Property is held by the Issuer or any Restricted Subsidiary or materially impair the value of such Property subject thereto; (g) Liens on cash or securities pledged to secure performance of tenders, surety and appeal bonds, government contracts, performance and return of money bonds, bids, trade contracts, leases, statutory obligations, regulatory obligations and other obligations of a like nature incurred in the ordinary course of business; (h) judgment and attachment Liens not giving rise to an Event of Default; <u>provided</u> that any appropriate legal proceedings which may have been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated shall not have expired and no action to enforce such Lien has been commenced; (i) encumbrances consisting of deed restrictions, zoning restrictions, and other similar restrictions on the use of Oil and Gas Properties, none of which, in the aggregate, materially impairs the use of such property by the Issuer or any Restricted Subsidiary in the operation of its business or materially detracts from the value of such properties; (j) purported Liens evidenced by the filing of UCC financing statements solely as a precautionary measure in connection with operating leases of personal property; <u>provided</u>, <u>further</u>, that no intention to subordinate the first priority status afforded by the Liens granted in favor of the Collateral Agent (for the benefit of the Secured Parties, as provided in the Collateral Documents) is to be hereby implied or expressed by the permitted existence of such Excepted Liens. The parties acknowledge and agree that the term "Excepted Liens" shall not include any Lien securing Debt of the type described in clause (a) of the definition of Debt.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated thereunder.

"**Excluded Accounts**" means (a) each account for which all of the deposits consist of amounts utilized to fund payroll, employee benefit or tax obligations of the Note Parties and their Subsidiaries, (b) escrow, pre-funding, trust and fiduciary accounts, in each case, solely holding amounts held for the benefit of third parties in the ordinary course of business (including, without limitation, escrow accounts in respect of Investments permitted under this Agreement, including under <u>Section 7.05</u>), (c) "zero balance" accounts, and (d) other accounts; <u>provided</u> that the aggregate daily maximum balance for all such bank accounts excluded pursuant to this <u>clause (d)</u> on any day shall not exceed $500,000.

"**Excluded Property**" has the meaning assigned to such term in the Pledge and Security Agreement.

"**Excluded Subsidiaries**" means (a) any Immaterial Subsidiary and<u>,</u> (b) each Unrestricted Subsidiary <u>and (c) (i) commencing on the Third Amendment Effective Date until the earlier of (A) to the extent the effective date of the Initial Conversion Notice has not occurred by such time, the twelve (12) month anniversary of the Third Amendment Effective Date and (B) the date of exercise of the FMV Option in accordance with Article 10 of the Initial Trust Agreement, the Initial WH Master Tenant and the Initial WH DST and (ii) commencing on the date of formation of any WH Master Tenant (other than the Initial WH Master Tenant) and any WH DST (other than the Initial WH DST) until the earlier of (A) to the extent the effective date of the Conversion Notice with respect to such WH DST Offering has not occurred by such time, the twelve (12) month anniversary of the date of formation of any such WH Master Tenant (other than the Initial WH Master Tenant) and any WH DST (other than the Initial WH DST) and (B) the date of exercise of the FMV Option in accordance with Article 10 of the applicable Trust Agreement, such WH Master Tenant and such WH DST</u>; <u>provided</u> that no Subsidiary <u>(other than a WH DST until it no longer shall be an Excluded Subsidiary in accordance with clause (c) above)</u> that owns or holds mineral interests, royalty interests or Proved Reserves shall be an "Excluded Subsidiary".

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"**Excluded Taxes**" as defined in <u>Section 2.14(b)</u>.

"**Existing Credit Facility**" means that certain credit facility, established pursuant to that certain Credit Agreement (as amended, restated, amended and restated, supplemented and as otherwise modified from time to time), dated as of August 3, 2023, by and among, *inter alios*, the Issuer, as borrower, the guarantors from time to time party thereto and Citadel Energy Marketing LLC.

"**Exposure**" means, with respect to any Holder, as of any date of determination, the outstanding principal amount of the Notes held by such Holder.

"**Fair Market Value**" means, with respect to any asset or group of assets on any date of determination, the value of the consideration obtainable in a disposition of such asset or group of assets at such date of determination assuming a disposition by a willing seller to a willing purchaser dealing at arm's length and arranged in an orderly manner over a reasonable period of time having regard to the nature and characteristics of such asset or group of assets, as reasonably determined in good faith by the Issuer; <u>provided</u>, <u>however</u>, that to the extent the Requisite Holders disagree with such Fair Market Value as determined in good faith by the Issuer, the Requisite Holders and the Issuer shall determine Fair Market Value pursuant to a dispute resolution process substantially similar to that provided for in <u>Section 1.05</u>.

"**FATCA**" means Sections 1471 through 1474 of the Internal Revenue Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities entered into in connection with the implementation of the foregoing.

"**FCA**" means the U.K. Financial Conduct Authority.

"**FCPA**" means the Foreign Corrupt Practices Act of 1977, as amended.

"**FDIC**" means the Federal Deposit Insurance Corporation.

"**Federal Funds Effective Rate**" means for any day, the rate calculated by the NYFRB based on such day's federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the federal funds effective rate; <u>provided</u> that, if the foregoing rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

"**Fee Letter**" means (a) that certain Fee Letter dated as of the Closing Date between the Issuer, EIG and the other parties named therein, (b) that certain Fee Letter dated as of the First Amendment Effective Date between the Issuer, EIG and the other parties named therein and (c) that certain Fee Letter dated as of May 8, 2025 between the Issuer and EIG.

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"**Finance Leases**" means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, recorded as finance leases on the balance sheet of the Person liable (whether contingent or otherwise) for the payment of rent thereunder; <u>provided</u> that for all purposes hereunder the amount of obligations under any Finance Lease shall be the amount thereof accounted for as a liability on the balance sheet of such Person in accordance with GAAP; <u>provided</u>, <u>further</u>, that for purposes of calculations made pursuant to the terms of this Agreement, GAAP will be deemed to treat leases in a manner consistent with its treatment under GAAP applicable to private companies for fiscal years beginning prior to December 15, 2019, notwithstanding any modifications or interpretative changes thereto that may occur. For the avoidance of doubt, (i) any lease that would be characterized as an operating lease in accordance with GAAP applicable to private companies for fiscal years beginning prior to December 15, 2019 (whether or not such operating lease was in effect on such date) shall continue to be accounted for as an operating lease (and not as a Finance Lease) for purposes of this Agreement regardless of any change in GAAP applicable to private companies for fiscal years beginning after December 15, 2019 that would otherwise require such lease to be re-characterized (on a prospective or retroactive basis or otherwise) as a Finance Lease and (ii) GAAP will be deemed to not take into account ASU 2016-02.

"**Financial Officer**" means, for any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person or authorized signatory of such Person that has similar responsibilities; <u>provided</u> that, if such Person is a limited partnership or limited liability company, any reference to a Financial Officer of such Person shall be a reference to a Financial Officer of such Person or of the general partner or sole member, as applicable, of such Person. Unless otherwise specified, all references herein to a Financial Officer means a Financial Officer of the Issuer.

"**First Amendment**" means that certain First Amendment to Note Purchase Agreement, dated as of March 31, 2025, by and among the Issuer, the other Note Parties, the Agent, the Holders and the First Amendment Incremental Holders.

"**First Amendment Additional Note Holders**" means each person listed on the signature page to the First Amendment as a First Amendment Additional Note Holder.

"**First Amendment Additional Notes**" means the Notes purchased on the First Amendment Effective Date pursuant to <u>Section 2.01(a)(ii)</u>, as evidenced by a promissory note in the form of <u>Exhibit B-1</u>.

"**First Amendment Effective Date**" means March 31, 2025.

"**First Amendment Transaction Expenses**" means any fees or expenses incurred or paid by the Issuer or any of its Restricted Subsidiaries in connection with the First Amendment and the transactions contemplated thereby.

"**First Offer**" as defined in <u>Section 2.09(g)</u>.

"**Fiscal Quarter**" means a Fiscal Quarter of any Fiscal Year.

"**Fiscal Year**" means the Fiscal Year of the Note Parties ending on December 31 of each calendar year.

"**Flood Insurance Regulations**" means (a) the National Flood Insurance Act of 1968 as now or hereafter in effect or any successor statute thereto, (b) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statute thereto, (c) the National Flood Insurance Reform Act of 1994 (amending 42 USC § 4001, et seq.), as the same may be amended or recodified from time to time, (d) the Flood Insurance Reform Act of 2004 and (e) the Biggert-Waters Flood Insurance Reform Act of 2012, in each case as now or hereafter in effect or any successor statute thereto and including any regulations promulgated thereunder.

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"**Flow of Funds**" means the flow of funds instruction letter delivered to the Agent at least one (1) Business Day prior to the Closing Date, directing the Agent to make certain specified disbursements on the Closing Date.

<u>"**FMV Option**" has the meaning set forth in the definition of "FMV Option" (or substantially similar term) in the applicable Trust Agreement (in the case of the Initial Trust Agreement, as of the Third Amendment Effective Date).</u>

"**Foreign Subsidiary**" means any Restricted Subsidiary that is not a Domestic Subsidiary.

"**Free Cash Flow (Back)**" means as of any date of determination, for a calendar month set forth under the heading "Distribution Month" in <u>Appendix</u> C, (a) Adjusted Cash Flow From Operating Activities for the corresponding "Applicable CF Period" in <u>Appendix C plus</u> (b) the amount of net cash proceeds received by the Issuer from the issuance of (i) common equity or (ii) Series B Preferred Shares, in either case issued by the Issuer during such "Applicable Distribution Period", <u>minus</u> (c) any Specified Issuance Proceeds received during such "Applicable Distribution Period"<u>minus</u> (d) to the extent included in Cash Flow From Operating Activities, voluntary cash repayments of the Notes pursuant to <u>Section 2.08</u> during such "Applicable Distribution Period".

"**Free Cash Flow (Forward)**" means, as of any date of determination for a calendar month set forth under the heading "Distribution Month" in <u>Appendix</u> C, (a)(i)(A) Projected Cash Flow From Operating Activities for the corresponding "Applicable CF Period" in <u>Appendix C</u> <u>plus</u> (B) the Prior Period Adjustment from the immediately preceding Applicable CF Period <u>multiplied</u> by (ii) the "Quarterly Factor" in Appendix C for such Distribution Month <u>plus</u> (b) the amount of net cash proceeds received by the Issuer from the issuance of (i) common equity or (ii) Series B Preferred Shares, in either case issued by the Issuer during such "Applicable Distribution Period", <u>minus</u> (c) any Specified Issuance Proceeds received during such "Applicable Distribution Period"<u>minus</u> (d) to the extent included in Cash Flow From Operating Activities, voluntary cash repayments of the Notes pursuant to <u>Section 2.08</u> during such "Applicable Distribution Period".

"**Free Cash Flow Utilization**" has the meaning set forth in the definition of "Distributable Free Cash Flow".

"**GAAP**" means, subject to the limitations on the application thereof set forth in <u>Section 1.03</u>, United States generally accepted accounting principles in effect as of the date of determination thereof.

"**General and Administrative Costs**" means the general and administrative costs of the Issuer, the other Note Parties and their Restricted Subsidiaries, including utilities, communications, consulting fees, salary, rent, supplies, travel, insurance, accounting, legal, engineering and broker related fees required to manage its affairs and, for the avoidance of doubt, (a) any costs and expenses of an Affiliate of the Issuer, the other Note Parties and their Restricted Subsidiaries that are reimbursed by the Issuer, the other Note Parties and their Restricted Subsidiaries and which are fairly allocable to the Issuer, the other Note Parties and their Restricted Subsidiaries and (b) any management fees, advisory fees or similar fees to any holder of its Equity Interests or any Affiliates thereof (other than a Note Party). Notwithstanding the foregoing, for purposes of this Agreement, AUM Fees and Dividend Incentive Fees shall constitute Restricted Payments and not General and Administrative Costs.

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"**Governing Body**" means the Board of Directors or other body having the power to direct or cause the direction of the management and policies of a Person that is a corporation, partnership, trust or limited liability company or other applicable entity.

"**Governmental Authority**" means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

"**Governmental Requirement**" means any law, statute, code, ordinance, order, determination, rule, regulation, judgment, decree, injunction, franchise, permit, certificate, license, rules of common law, authorization or other directive or requirement, whether now or hereinafter in effect, of any Governmental Authority.

"**guarantee**" means, with respect to any Person, any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Debt or other obligation of any other Person in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, that is (a) an obligation of such Person the primary purpose or intent of which is to provide assurance to an obligee that the obligation of the obligor thereof will be paid or discharged, or any agreement relating thereto will be complied with, or the holders thereof will be protected (in whole or in part) against loss in respect thereof; or (b) a liability of such Person for an obligation of another through any agreement (contingent or otherwise) (i) to purchase, repurchase or otherwise acquire such obligation or any security therefor, or to provide funds for the payment or discharge of such obligation (whether in the form of loans, advances, stock purchases, capital contributions or otherwise) or (ii) to maintain the solvency or any balance sheet item, level of income or financial condition of another if, in the case of any agreement described under <u>subclauses (i)</u> or <u>(ii)</u> of this <u>clause (b)</u>, the primary purpose or intent thereof is as described in <u>clause (a)</u> above. "**Guarantee**", unless the context otherwise requires, means the guarantee of each Guarantor set forth in the Guaranty Agreement.

"**Guarantors**" means (a) WhiteHawk Income Marcellus LLC, a Delaware limited liability company, (b) WhiteHawk Income Haynesville LLC, a Delaware limited liability company, (c) those Persons identified on <u>Schedule 1.02(a)</u> hereto and (d) each other Material Subsidiary and other Subsidiary of a Note Party that guarantees the Obligations pursuant to the Guaranty Agreement or as otherwise required by <u>Section 6.13(b)</u>.

"**Guaranty Agreement**" means an agreement executed by the Guarantors in substantially the form of <u>Exhibit F</u>, absolutely and unconditionally guarantying, on a joint and several basis, payment of the Obligations, as the same may be amended, restated, amended and restated, modified or supplemented from time to time.

"**Hazardous Material**" means any substance regulated or as to which liability might arise under any applicable Environmental Law including: (a) any chemical, compound, material, product, byproduct, substance or waste defined as or included in the definition or meaning of "hazardous substance," "hazardous material," "hazardous waste," "solid waste," "toxic waste," "extremely hazardous substance," "toxic substance," "contaminant," "pollutant" or words of similar meaning or import found in any applicable Environmental Law; (b) Hydrocarbons, petroleum products, petroleum substances, natural gas, oil, oil and gas waste, crude oil, and any components, factions or derivatives thereof; and (c) radioactive materials, explosives, brine, asbestos or asbestos containing materials, polychlorinated biphenyls, per- or polyfluoroalkyl substances, radon, or infectious or medical wastes.

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"**Hazardous Materials Activity**" means any past or current activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, Release, threatened Release, discharge, placement, generation, transportation, processing, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.

"**Hedge Intercreditor Agreement**" means that certain Hedge Intercreditor Agreement, dated as of the Closing Date, by and among the Issuer, each other Note Party, Citadel Energy Marketing LLC as Initial Swap Counterparty (as defined therein) and the Collateral Agent, as such agreement may be amended, restated, amended and restated, supplemented or otherwise modified from time to time; <u>provided</u> that the Hedge Intercreditor Agreement shall be in form and substance satisfactory to the Requisite Holders and otherwise on terms customary for financing arrangements of this type, it being understood that the form and terms of the Hedge Intercreditor Agreement on the Closing Date satisfy this proviso.

"**Highest Lawful Rate**" means the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under the laws applicable to any Holder which are presently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than applicable laws now allow.

"**Holder-Related Party**" as defined in <u>Section 11.03(b)</u>.

"**Holders**" means (a) each Person listed on the signature pages to the original Agreement dated as of September 17, 2024 as a Holder, (b) each Person listed on the signature pages to the First Amendment as a First Amendment Additional Note Holder, (c) each Person listed on the signature pages to the Second Amendment as a Second Amendment Incremental Note Holder and (d) any other Person that becomes a party hereto as a Holder pursuant to an Assignment Agreement, other than any such Person that ceases to be a party hereto as a Holder pursuant to an Assignment Agreement.

"**Hydrocarbon Interests**" means all rights, titles, interests and estates now or hereafter acquired by the Issuer or any Guarantor in and to oil and gas leases, oil, gas and mineral leases, and/or other liquid or gaseous hydrocarbon leases, mineral fee interests, mineral interests, mineral royalty interests, overriding royalty and royalty interests, net profit interests and production payment interests, and other interests and estates including any reserved or residual interests of whatever nature, in each case, including those that are described on the exhibit(s) attached to any Mortgage.

"**Hydrocarbons**" means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all constituents, elements or compounds thereof and all products refined or separated therefrom and all other minerals which may be produced and saved from or attributable to the Oil and Gas Properties, now or hereafter acquired by the Issuer or any Guarantor, including all oil in tanks, and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests or other properties constituting Oil and Gas Properties to the extent allocated to the royalty interest or overriding royalty interests of the Issuer or any Guarantor.

"**Immaterial Subsidiary**" means any Restricted Subsidiary that is not a Material Subsidiary.

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"**Improved Mortgaged Property**" means all improved real property acquired by the Issuer or any Guarantor that contains Buildings or Manufactured (Mobile) Homes (as those terms are defined in applicable Flood Insurance Regulations) constituting Collateral, if any.

"**Incremental Commitments**" means the commitments of the Holders to purchase Incremental Notes contemplated by <u>Section 2.16</u>.

"**Incremental Indebtedness**" has the meaning set forth in <u>Section 2.16(b)(i)</u>.

"**Incremental Note**" means any Note purchased by any Holder pursuant to the Incremental Commitments, as evidenced by a promissory note in the form of <u>Exhibit B-2</u>, including each Second Amendment Incremental Note.

"**Incremental Notes Notice**" has the meaning set forth in <u>Section 2.16(a)(i)</u>.

"**Incremental Notes Offer**" has the meaning set forth in <u>Section 2.16(a)(ii)</u>.

"**Incremental Target Amount**" has the meaning set forth in <u>Section 2.16(a)(i)</u>.

"**Indemnified Liabilities**" means, collectively, any and all fees, liabilities, obligations, losses, damages, penalties, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable fees, disbursements and settlement costs and other charges of counsel for Indemnitees) and of consultants in connection with any proceeding (whether investigative, administrative, judicial or otherwise) commenced or threatened by any Person, whether or not any such Indemnitee shall be designated as a party or a potential party thereto, and any reasonable fees or expenses incurred by Indemnitees in administering and enforcing this Agreement and the other Note Documents and enforcing the indemnity under <u>Section 11.03(a)</u>, whether direct, indirect or consequential and whether based on any federal, state or foreign laws, statutes, rules or regulations (including securities and commercial laws, statutes, rules or regulations and Environmental Laws), on common law or equitable cause or on contract or otherwise, that may be imposed on, incurred by, or asserted against any such Indemnitee, in any manner relating to or arising out of (a) this Agreement or the other Note Documents, the Transactions or any other transactions contemplated hereby or thereby (including the Holders' agreement to make Note Purchases or the use or intended use of the proceeds thereof, or any enforcement of any of the Note Documents (including any sale of, collection from, or other realization upon any of the Collateral or the enforcement of the Guarantee)); or (b) any Environmental Claim relating to or against, or any past or present activity (including any Hazardous Materials Activity), operation, land ownership, or practice of, the Issuer or any of its Subsidiaries or on any of their respective properties. Notwithstanding the foregoing, Indemnified Liabilities shall not include Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

**"Indemnified Taxes"**means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any Obligation of any Note Party under any Note Document and (b) to the extent not otherwise described in (a), Other Taxes.

"**Indemnitee**" as defined in <u>Section 11.03(a)</u>.

"**Indemnitee Agent Party**" means each Agent, its Affiliates and its officers, partners, directors, trustees, employees, representatives and agents of the Agents.

<u>"**Initial Conversion Notice**" has the meaning set forth in the definition of "Conversion Notice".</u>

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<u>"**Initial DST PPM**" has the meaning set forth in the definition of "DST PPMs".</u>

"**Initial Financial Statements**" means the financial statements described in <u>Section 3.01(u)</u>.

<u>"**Initial Master Lease**" has the meaning set forth in the definition of "Master Leases".</u>

<u>"**Initial Nominee Agreement**" has the meaning set forth in the definition of "Nominee Agreements".</u>

"**Initial Reserve Repor**t" means that certain reserve report prepared by Schaper Energy Consulting LLC in respect of Oil and Gas Properties of the Issuer and its Restricted Subsidiaries with an "as of" date of March 14, 2024.

<u>"**Initial Trust Agreement**" has the meaning set forth in the definition of "Trust Agreements".</u>

"**Institutional Investor**" means (a) any Holder of a Note on the Closing Date, (b) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, (c) any Related Fund or Affiliate of any Holder of any Note and (d) any other Person that is a Qualified Institutional Buyer to the extent such Person would not reasonably be considered a competitor of the Issuer.

"**Interest**" as defined in <u>Section 2.06(a)</u>.

"**Interest Payment Date**" means (a) the last day of each Fiscal Quarter, commencing with the Fiscal Quarter ended December 31, 2024, and (b) the Maturity Date.

"**Interest Period**" means (a) from and including the Closing Date to the next Interest Payment Date, and (b) thereafter, from and including each Interest Payment Date to but excluding the next Interest Payment Date.

"**Internal Revenue Code**" means the Internal Revenue Code of 1986, as amended to the date hereof and from time to time hereafter, and any successor statute (except as otherwise provided herein).

"**Investment**" means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of Equity Interests of any other Person or any agreement to make any such acquisition (including, without limitation, any "short sale" or any sale of any securities at a time when such securities are not owned by the Person entering into such short sale); (b) the making of any deposit with, or advance, loan or capital contribution to, guarantee or assumption of Debt of, purchase or other acquisition of any other Debt or equity participation or interest in, or other extension of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such Property to such Person, but excluding any such advance, loan or extension of credit having a term not exceeding one hundred twenty (120) days representing the purchase price of inventory or supplies sold by such Person in the ordinary course of business) or (c) the purchase or acquisition (in one or a series of transactions) of Property (other than Equity Interests) of another Person that constitutes a business unit, line of business or a discrete set of Properties. For purposes of covenant compliance, the amount of any Investment at any time shall be the amount actually invested (measured at the time made), without adjustment for subsequent increases or decreases in the value of such Investment.

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"**Investment Agreement**" means that certain Investment Agreement by and among WhiteHawk Income Corporation and the Investors listed in Exhibit A to such agreement, dated as of March 28, 2025.

"**Investment Management Agreement**" means that certain Investment Management Agreement, dated as of March 1, 2022, between, the Issuer and WhiteHawk Management, LLC

"**IRS**" as defined in <u>Section 2.14(e)</u>.

"**Issuer**" as defined in the preamble hereto.

"**Lien**" means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to (a) the lien or security interest arising from a deed of trust, mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes or (b) royalty interest payments and the like payable out of Oil and Gas Properties. "Liquidity" means, at any time, Unrestricted Cash at such time.

"**LOS/CF Certificate**" means a certificate of a Responsible Officer pursuant to <u>Section 6.01(o)</u>.

"**Make-Whole Amount**" means, with respect to the Called Principal of any Note, an amount equal to the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note, <u>provided</u> that the Make-Whole Amount shall in no event be less than zero.

"**Make-Whole Expiry Date**" as defined in <u>Section 2.11(g)</u>.

<u>"**Master Leases**" means, collectively (a) the Master Lease Agreement by and between WhiteHawk DST Master Tenant LLC, as Delaware limited liability company, as lessee, and WhiteHawk Royalties I DST, a Delaware Statutory Trust, as lessor (including all amendments, exhibits and schedules thereto) (the "**Initial Master Lease**") in substantially the same form delivered to the Required Lenders on the Third Amendment Effective Date and (b) any master lease agreement entered into between a WH Master Tenant (other than WhiteHawk DST Master Tenant LLC) and WH DST (other than WhiteHawk Royalties I DST) with substantially the same form, terms and conditions as the Initial Master Lease as in effect on the Third Amendment Effective Date.</u>

"**Material Acquisition**" means any acquisition of Property or series of related acquisitions of Property that involves the payment of consideration by the Note Parties and their Consolidated Restricted Subsidiaries in excess of $2,000,000.

"**Material Adverse Effect**" means a material adverse change in, or material adverse effect on (a) the business, operations, Property or financial condition of the Note Parties and their Restricted Subsidiaries taken as a whole, (b) the ability of the Issuer, any Restricted Subsidiary or any Guarantor to perform any of its material obligations under any Note Document, (c) the validity or enforceability of any Note Document, or (d) the rights and remedies of or benefits available to the Agent or any Holder under any Note Document.

"**Material Contracts**" means (a) the contracts set forth on <u>Schedule 1.02(b)</u> and (b) any other contract and agreement of any Note Party or its Subsidiaries resulting (or projected to result) in such Person being reasonably expected to receive revenue or other consideration or incur liabilities in excess of $2,000,000 during any Fiscal Year.

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"**Material Debt**" means Debt (other than the Notes), or obligations in respect of one or more Swap Agreements, of any one or more of the Note Parties and their Restricted Subsidiaries in an aggregate principal amount exceeding $2,000,000. For purposes of determining Material Debt, the "principal amount" of the obligations of the Issuer or any Restricted Subsidiary in respect of any Swap Agreement at any time shall be the Swap Termination Value of such Swap Agreement.

"**Material Disposition**" means any disposition of Property or series of related dispositions of Property that involves the payment of consideration to the Note Parties and their Consolidated Restricted Subsidiaries in excess of $2,000,000.

"**Material Environmental and Social Incident**" means (a) any incident or accident formally elevated to the Board of Directors (or other similar Governing Body) of the Issuer, (b) an accident relating to the Note Parties, their Subsidiaries, or their respective properties resulting in death or serious or multiple injury or (c) a significant and material community or worker related grievance or protest directed at the Note Parties, their Subsidiaries, or their respective properties, in each of the foregoing cases, which has or could reasonably be expected to have (in the good faith determination of the Issuer) a material and adverse impact on health, safety or the environment (including, in each case, as the result of the Release of any Hazardous Material).

"**Material Subsidiary**" means, as of any date, (a) any Subsidiary that, together with its Restricted Subsidiaries, as of the last day of the Fiscal Quarter of the Issuer most recently ended, had net revenues or total assets for such quarter in excess of 0.50% of the consolidated net revenues or total assets, as applicable, of the Issuer and its Restricted Subsidiaries for such quarter and (b) any Subsidiary that owns any Oil and Gas Properties evaluated in the Reserve Report most recently delivered to pursuant to <u>Section 6.11</u>, <u>provided</u> that in the event that the Immaterial Subsidiaries, taken together, had as of the last day of the Fiscal Quarter of the Issuer most recently ended net revenues or total assets in excess of 1.00% of the consolidated revenues or total assets, as applicable, of the Issuer and its Restricted Subsidiaries for such quarter, the Issuer shall designate one or more Immaterial Subsidiaries to be a Material Subsidiary as may be necessary such that the foregoing one percent 1.00% limit shall not be exceeded, and any such Subsidiary shall thereafter be deemed to be a Material Subsidiary hereunder, and the Issuer shall cause such designated Material Subsidiaries to comply with <u>Section 6.13(b)</u>.

"**Maturity Date**" means the earlier of (a) June 23, 2030 and (b) the date that all Notes shall become due and payable in full hereunder, whether by acceleration or otherwise or, in either case, if such day is not a Business Day, the immediately preceding Business Day.

"**Minimum Liquidity Amount**" means (a) $4,000,000 <u>plus</u> (b) as of any date of determination (i) Interest accrued through the date of determination <u>plus</u> (ii) any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments <u>plus</u> (iii) losses (or <u>minus</u> gains) from Swap Agreements which, as of the date of determination, have settled but for which cash proceeds have not been received by the Issuer or its Restricted Subsidiaries.

"**Minimum Return**" as defined in the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**MIRE Event**" means, if there are any Mortgaged Properties at such time, any increase, extension or renewal of any of the Commitments or Notes (including any other incremental credit facilities hereunder, but excluding (a) any continuation or conversion of Notes or (b) the issuance of any Notes).

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"**Monthly Common Equity Dividends**" means dividends made by the Issuer to the holders of its Equity Interests on the account of its common Equity Interests in accordance with the Issuer's Organizational Documents in effect as of the Second Amendment Effective Date, in an amount not to exceed $0.1875 per Equity Interest unit (provided that to the extent (a) the outstanding common Equity Interest of the Issuer shall have been increased, decreased, changed into or exchanged for a different number of shares or different class, in each case, by reason of any reclassification, recapitalization, stock split, split-up, combination or exchange of shares, (b) a stock dividend or dividend payable in any other Equity Interests securities of the Issuer shall have been declared or (c) any similar event shall have occurred, such $0.1875 per Equity Interest unit limit shall be adjusted in a manner to maintain the same economic effect as contemplated by this Agreement prior to such event).

"**Monthly Preferred Equity Dividends**" means dividends made by the Issuer to the holders of its Equity Interests on the account of its (a) Series B Preferred Shares, payable on a monthly basis at an annualized rate of ten percent (10%), in accordance with Section 5 of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 and (b) Series C Preferred Shares, payable on a monthly basis at an annualized rate of (i) fourteen percent (14%) from and including the Closing (as defined in the Investment Agreement) to December 31, 2026 and (ii) eighteen percent (18%) after December 31, 2026, in accordance with Section 1.4(e) of the Investment Agreement.

"**Moody's**" means Moody's Investors Service, Inc. and any successor thereto that is a nationally recognized rating agency.

"**Mortgage**" means all mortgages, deeds of trust and similar documents, instruments and agreements (including amendments and restatements of existing deeds of trust and similar documents, instruments and agreements) creating, evidencing, perfecting or otherwise establishing the Liens on Mortgaged Property to secure payment of the Obligations or any part thereof in substantially the form of <u>Exhibit L</u> (or otherwise in form and substance reasonably acceptable to the Agent (at the direction of the Requisite Holders)).

"**Mortgaged Property**" means any Property owned by the Issuer or any Guarantor which is subject to the Liens existing and to exist under the terms of the Collateral Documents.

"**Multiemployer Plan**" mean a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

"**Net Asset Sale Proceeds**" means, with respect to any Asset Sale (other than pursuant to <u>Section 7.09(a)</u>, <u>Section 7.09(b)</u>, <u>Section 7.09(e)</u>, <u>Section 7.09(f)</u>, <u>Section 7.09(h)</u>, <u>Section 7.09(i)</u> or <u>Section 7.09(j)</u>), an amount equal to: (a) the sum of cash payments and Cash Equivalents received by the Issuer or any of its Affiliates from such Asset Sale (including any cash or Cash Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received), <u>minus</u> (b) any bona fide costs and expenses (including, without limitation, legal, accounting and investment banking fees, and sales commissions) incurred in connection with such Asset Sale, including income or gains taxes paid or payable as a result of such Asset Sale (after taking into account any available tax credits or deductions and any tax-sharing arrangements) or reserves taken in respect of taxes and (c) a reasonable reserve for any indemnification payments (fixed or contingent) attributable to seller's indemnities and representations and warranties to purchaser in respect of such Asset Sale undertaken by the Issuer or any other Note Party in connection with such Asset Sale; <u>provided</u> that upon release of any such reserve, the amount released shall be considered Net Asset Sale Proceeds.

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"**Net Casualty Event Proceeds**" means, with respect to any Casualty Event, an amount equal to: (a) the sum of cash payments and Cash Equivalents received by the Issuer or any of its Affiliates from such Casualty Event <u>minus</u> (b) (i) any bona fide costs and expenses incurred in connection with the adjustment or settlement of any claims of the Issuer or any of its Restricted Subsidiaries in respect thereof and (ii) amounts expended to repair and/or replace property subject to such Casualty Event.

"**Non-U.S. Holder**" as defined in <u>Section 2.14(e)</u>.

<u>"**Nominee Agreements**" means, collectively (a) the Nominee Agreement by and between WhiteHawk DST Master Tenant LLC, a Delaware limited liability company and WhiteHawk Royalties I DST, a Delaware Statutory Trust (including all amendments, exhibits and schedules thereto) (the "**Initial Nominee Agreement**") in substantially the same form delivered to the Required Lenders on the Third Amendment Effective Date and (b) any nominee agreement entered into between a WH Master Tenant (other than WhiteHawk DST Master Tenant LLC) and WH DST (other than WhiteHawk Royalties I DST) with substantially the same form, terms and conditions as the Initial Nominee Agreement as in effect on the Third Amendment Effective Date.</u>

"**Note**" means (a) the notes purchased by the Holders on the Closing Date pursuant to <u>Section 2.01(a)(i)</u>, as may be evidenced by a promissory note in the form of <u>Exhibit B-1</u>, (b) the notes purchased by the First Amendment Additional Note Holders on the First Amendment Effective Date pursuant to <u>Section 2.01(a)(ii)</u>, as may be evidenced by a promissory note in the form of <u>Exhibit B-1</u>, (c) the notes purchased by the Second Amendment Incremental Note Holders on the Second Amendment Effective Date pursuant to <u>Section 2.01(a)(iii)</u>, as may be evidenced by a promissory note in the form of <u>Exhibit B-2</u> and (d) any Incremental Note purchased by Incremental Holders pursuant to <u>Section 2.16</u> as may be evidenced by a promissory note in the form of <u>Exhibit B-2</u> (in each case, such term shall also include any such notes in substitution therefor pursuant to <u>Section 11.29</u> of this Agreement).

"**Note Document**" means any of this Agreement, the Notes, the Incremental Notes (if any), the Agent Fee Letter, the Fee Letter, the Collateral Documents, the Flow of Funds and all other certificates, documents, instruments or agreements executed and delivered by a Note Party for the benefit of Agents or any Holder in connection herewith or pursuant to any of the foregoing. Any reference in this Agreement or any other Note Document to a Note Document shall include all appendices, exhibits and schedules thereto.

"**Note Party**" means the Issuer and the Guarantors.

"**Note Purchase**" means a purchase by the Holders of Notes pursuant to <u>Section 2.01</u>.

"**Note Purchase Notice**" means a written notice by the Issuer that it intends to issue Notes hereunder, which Note Purchase Notice (a) sets forth the principal amount of Notes to be issued, (b) contains the information required by <u>Section 2.03</u> and (c) is substantially in the form of <u>Exhibit A</u> or such other form reasonably satisfactory to the Requisite Holders.

"**Not for Speculative Purposes**" in the case of Swap Agreements permitted under this Agreement, means the following Swap Agreements: (a) any commodity Swap Agreement intended, at inception of execution, to hedge or manage any of the risks related to existing and or forecasted Hydrocarbon production of the Issuer or its Restricted Subsidiaries (whether or not contracted) and (b) any Swap Agreement intended, at inception of execution, to hedge or manage the interest rate exposure

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associated with any debt securities, debt facilities or leases (existing or reasonably forecasted) of the Issuer or its Restricted Subsidiaries. It is understood that commodity Agreements that, taken as a whole, "hedge" the same volumes of commodity risk, including those under which one or more such Swap Agreements partially offset one or more other such Swap Agreements, shall not be aggregated together when calculating the foregoing limitations on notional volumes and shall be deemed, both individually and in the aggregate, not to be speculative.

"**NYFRB**" means the Federal Reserve Bank of New York.

"**NYFRB Rate**" means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); <u>provided</u> that, if none of such rates are published for any day that is a Business Day, the term "NYFRB Rate" means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received by the Agent from a federal funds broker of recognized standing selected by the Requisite Holders; <u>provided</u>, <u>further</u>, that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

"**NYMEX Pricing**" means, as of any date of determination with respect to any month, (a) for crude oil, the closing settlement price for the Light, Sweet Crude Oil futures contract for such month and (b) for natural gas, the closing settlement price for the Henry Hub Natural Gas futures contract for such month, in each case as published by CME Group / NYMEX on its website currently located at www.cmegroup.com, or any successor thereto (as such price may be corrected or revised from time to time by CME Group / NYMEX in accordance with its rules and regulations).

"**Obligations**" means (a) all liabilities and obligations of every nature of each Note Party from time to time owed to the Agents (including any former Agents), the Holders, any Indemnitee or any of them, in each case, under any Note Document, in each case, to which it is a party, whether for principal, interest (including, without limitation, interest accruing at any post-default rate and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), fees (including, without limitation, any Make-Whole Amount or any Prepayment Fee), expenses, penalties, premiums, reimbursements, indemnification or otherwise and whether primary, secondary, direct, indirect, contingent, fixed or otherwise (including obligations of performance) and all renewals, extensions and/or rearrangements of any of the above and (b) all Secured Hedge Obligations of each Note Party.

"**Oil and Gas Business**" means: (a) the business of acquiring, exploring, exploiting, developing, producing, operating and disposing of interests in oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and mineral properties or products produced in association with any of the foregoing; (b) the business of gathering, marketing, distributing, treating, processing, storing, refining, selling and transporting of any production from interests in oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and mineral properties or products produced in association therewith; and the marketing of oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and minerals obtained from unrelated Persons; and (c) any business or activity relating to, arising from, or necessary, appropriate, incidental or ancillary to the activities described in the foregoing <u>clauses (a)</u> and <u>(b)</u> of this definition.

"**Oil and Gas Properties**" means: (a) the Hydrocarbon Interests; (b) all of the Issuer's or any Guarantor's interest in the Properties now or hereafter pooled or unitized with Hydrocarbon Interests; (c) all of the Issuer's or any Guarantor's interest in all presently existing or future unitization agreements, pooling agreements and declarations of pooled or unitized units and the units created thereby (including

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without limitation all units created under orders, regulations and rules of any Governmental Authority) which may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements, including production sharing contracts and agreements, which relate to any of the Hydrocarbon Interests or the production, sale, purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests, to the extent the Issuer or any Guarantor is a party to any such agreement or contract; (e) all Hydrocarbons in and under and which may be produced and saved or attributable to the Hydrocarbon Interests; (f) all tenements, hereditaments, appurtenances and Properties in any manner appertaining, belonging, affixed or incidental to the interest of the Issuer or any Guarantor in the Hydrocarbon Interests and (g) all properties, rights, titles, interests and estates described or referred to above, which are now owned or which are hereafter acquired by the Issuer or any Guarantor, including, without limitation, any and all Property, real or personal, immoveable or moveable, now owned or hereinafter acquired <u>,</u> including without limitation, rights-of-way, easements, servitudes, licenses and other surface and subsurface rights, together with all additions, substitutions, replacements, accessions and attachments to any and all of the foregoing.

"**Organizational Documents**" means (a) with respect to any corporation, its certificate or articles of incorporation, amalgamation, formation or organization, as amended, and its bylaws, as amended, (b) with respect to any limited partnership, its certificate of limited partnership or certificate of formation, as amended, and its partnership agreement, as amended, (c) with respect to any general partnership, its partnership agreement, as amended, (d) with respect to any limited liability company, its articles of organization or certificate of formation, as amended, and its operating agreement, as amended and (e) in any other case, the functional equivalent of the foregoing. In the event any term or condition of this Agreement or any other Note Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such "Organizational Document" shall only be to a document of a type customarily certified by such governmental official.

"**Other Taxes**" means any and all present or future stamp, recording, filing, court or documentary, intangible, or similar Taxes arising from any payment made hereunder or from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Note Document, except any such Taxes described in <u>clause (b)</u> of the definition of Tax on the Overall Net Income imposed with respect to any assignment (other than an assignment pursuant to a request by the Issuer).

"**Overnight Bank Funding Rate**" means, for any day, the rate comprised of both overnight federal funds and overnight Adjusted Term SOFR Rate borrowings by U.S.-managed banking offices of depository institutions, (as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time) and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate (from and after such date as the NYFRB shall commence to publish such composite rate).

"**Participant**" as defined in <u>Section 11.07(g)</u>.

"**Participant Register**" as defined in <u>Section 11.07(g)</u>.

"**Payment**" as defined in <u>Section 10.04(c)</u>.

"**Payment in Full**" means (a) the irrevocable payment in full in cash of all principal, interest (including interest accruing during the pendency of an insolvency or liquidation proceeding, regardless of whether allowed or allowable in such insolvency or liquidation proceeding), premium and make-whole, if any, on all Notes outstanding under this Agreement, (b) the irrevocable payment in full in cash in respect of all other Obligations or amounts that are outstanding under this Agreement (other than (i) indemnity

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obligations for which notice of potential claim has not been given and (ii) amounts due under a Secured Hedge Agreement to the extent such Secured Hedge Obligations are cash collateralized or otherwise subject to arrangements satisfactory to the applicable Secured Hedge Provider) and (c) the termination of all Commitments under this Agreement and all Secured Hedge Agreements (other than Secured Hedge Agreements that are cash collateralized or otherwise subject to arrangements satisfactory to the applicable Secured Hedge Provider).

"**Payment Notice**" as defined in <u>Section 10.04(d)</u>.

"**PBGC**" means the Pension Benefit Guaranty Corporation or any successor thereto.

"**Permitted Recipients**" as defined in <u>Section 11.18</u>.

"**Person**" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"**Plan**" means any employee pension benefit plan, as defined in Section 3(2) of ERISA, which (a) is sponsored, maintained or contributed to by the Issuer, a Restricted Subsidiary or, solely with respect to a plan subject to Title IV of ERISA, an ERISA Affiliate or (b) if the Issuer or a Restricted Subsidiary has liability thereunder, was at any time during the six (6) calendar years preceding the Closing Date, sponsored, maintained or contributed to by the Issuer or a Subsidiary or, to which Issuer or a Subsidiary has any liability, including any liability with respect to a plan subject to Title IV of ERISA on account of an ERISA Affiliate.

"**Pledge and Security Agreement**" means a Pledge and Security Agreement among each Note Party and the Collateral Agent in substantially the form of <u>Exhibit G-2</u> (or otherwise in form and substance reasonably acceptable to the Agent (at the direction of the Requisite Holders)) granting Liens and security interests in the Equity Interests of the Subsidiaries directly owned by such Note Parties and the Note Parties' other personal property constituting Collateral (as defined therein) in favor of the Collateral Agent for the benefit of the Secured Parties to secure the Obligations, as the same may be amended, restated, amended and restated, modified, supplemented or restated from time to time.

"**Primary Distributions**" as defined in Section <u>7.04(c)(i)(A)</u>.

"**Prime Rate**" means the rate of interest per annum publicly quoted from time to time by *The Wall Street Journal* (or, if no longer quoted by *The Wall Street Journal*, such other national publication selected by the Requisite Holders in consultation with the Issuer) as the United States "prime rate".

**"Prior Period Adjustment"**means, for any Applicable CF Period, (a) the total Free Cash Flow (Back) from April 30, 2025 through the immediately preceding Applicable Cash Flow Period <u>minus</u> (b) the total Free Cash Flow Utilizations and the total Specified RPs declared, made or distributed from April 30, 2025 (or, in the event any Specified RPs are declared, made or distributed, from the date of declaring, making or distributing the first Specified RP) through the immediately preceding Applicable Cash Flow Period <u>minus</u> (c) any prepayment of the Notes pursuant to <u>Section 2.09(a)</u> from April 30, 2025 through the immediately preceding Applicable Cash Flow Period.

"**Pro Forma Basis**" means, as to the calculation of the Consolidated Total Net Leverage Ratio, Liquidity and the Asset Coverage Ratio, such calculation will be made on a pro forma basis, including giving pro forma effect to the following events as if such events occurred, for purposes of the Consolidated Total Net Leverage Ratio, on the first date of the then most recently ended period for which financial statements (including monthly financial statements and lease operating statements) are available

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and, for purposes of the Asset Coverage Ratio, immediately prior to such date of determination: any Asset Sale, any Casualty Event, any Material Acquisition, any Material Disposition, any Restricted Payment or any incurrence of Debt that occurred during such period (or thereafter and through and including the date of such determination, in the case of determinations made with respect to any action the taking of which hereunder is subject to compliance with the Consolidated Total Net Leverage Ratio or the Asset Coverage Ratio). Any cash or Cash Equivalents to be received by the Issuer or any Restricted Subsidiary in connection with the incurrence of Debt shall not be considered Unrestricted Cash in determining compliance on a "Pro Forma Basis" with the Consolidated Total Net Leverage Ratio for the incurrence of such Debt or any transaction substantially contemporaneously therewith. Pro forma calculations made pursuant to the definition of the term "Pro Forma Basis" shall be, with respect to the Consolidated Total Net Leverage Ratio, determined in good faith by a Responsible Officer of the Issuer and with supporting documentation reasonably acceptable to the Agent (at the direction of the Requisite Holders) and, with respect to the Asset Coverage Ratio, made in accordance with <u>Section 1.05</u> and <u>Section 6.01(u)</u>.

"**Pro Rata Share**" means, as to any Holder, with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 2.01(a)</u>, the percentage obtained by <u>dividing</u> (i) the Commitments of that Holder, by (ii) the aggregate Commitments of all Holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all payments, computations and other matters relating to the Notes of any Holder (other than the issuance of the Notes contemplated by <u>Section 2.01(a)</u>), the percentage obtained by <u>dividing</u> (i) the Exposure of that Holder by (ii) the aggregate Exposure of all Holders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) after Payment in Full, then the percentage obtained by <u>dividing</u> (i) the Exposure of that Holder by (ii) the aggregate Exposure of all Holders, in each case, shall be calculated on the last day prior to the Payment in Full that any Holder had an Exposure.

"**Probable Reserves**" means "probable oil and gas reserves" as such term is defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"**Projected Cash Flow From Operating Activities**" means (a) the projected Cash Flow From Operating Activities for the Applicable CF Period prepared by the Issuer in good faith and incorporating the expected revenue and expenses from ongoing operations of the Issuer and its Restricted Subsidiaries, including from Oil and Gas Properties, Swap Agreements, General and Administrative Costs, and interest expenses <u>plus</u> (b) to the extent constituting a General and Administrative Cost and included in Cash Flow From Operating Activities, any AUM Fees and/or Dividend Incentive Fees paid in cash during such period <u>minus</u> (c) to the extent included in Cash Flow From Operating Activities, any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries for such period, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments. Projected Cash Flow from Operating Activities shall be calculated using the Strip Price as of the date of determination.

"**Projections**" as defined in <u>Section 6.01(f)</u>.

"**Property**" means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights.

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"**Proved Developed Producing Reserves**" means "proved developed producing oil and gas reserves" as such term is defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"**Proved Reserves**" means collectively, "proved oil and gas reserves," "proved developed producing oil and gas reserves," "proved developed non-producing oil and gas reserves" (consisting of proved developed shut-in oil and gas reserves and proved developed behind pipe oil and gas reserves), and "proved undeveloped oil and gas reserves," as such terms are defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"**Public Company**" as defined in <u>Section 11.18</u>.

"**Public Company Information**" as defined in <u>Section 11.18</u>.

"**Purchase Money Debt**" means Debt, the proceeds of which are used to finance the acquisition, construction, or improvement of inventory, equipment or other property in the ordinary course of business.

"**Qualified ECP Guarantor**" means, in respect of any Swap Agreement, each Note Party that (a) has total assets exceeding $10,000,000 at the time any guaranty of obligations under such Swap Agreement or grant of the relevant security interest becomes effective or (b) otherwise constitutes an "eligible contract participant" under the Commodity Exchange Act and can cause another Person to qualify as an "eligible contract participant" at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

"**Qualified Institutional Buyer**" as defined in <u>Section 5.11</u>.

"**RCRA**" has the meaning set forth in the definition of "**Environmental Laws**".

"**Recipient**" as defined in <u>Section 11.18</u>.

"**Redemption**" means with respect to any Debt, the repurchase, redemption, prepayment, repayment, defeasance or any other acquisition or retirement for value (or the segregation of funds with respect to any of the foregoing) of such Debt. "Redeem" has the correlative meaning thereto.

"**Redemption Offer**" as defined in <u>Section 2.09(h)(i)</u>.

"**Redemption Payment**" as defined in <u>Section 2.09(h)(i)</u>.

"**Redemption Purchase Date**" as defined in <u>Section 2.09(h)(i)</u>.

"**Refinancing**" as defined in <u>Section 2.04</u>.

"**Register**" as defined in <u>Section 2.05(b)</u>.

"**Regulation T**" means Regulation T of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

"**Regulation U**" means Regulation U of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

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"**Regulation X**" means Regulation X of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

"**Reinvestment Yield**" means, with respect to the Called Principal of any Note, 50 basis points (one-half of one percent) over the yield to maturity implied by (a) the yields reported as of 10:00 a.m. (New York, New York time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1" (or such other display as may replace Page PX1 on Bloomberg Financial Markets ("**Bloomberg**")) or, if Page PX1 (or its successor screen on Bloomberg) is unavailable, the Telerate Access Service screen which corresponds most closely to Page PX1 for the most recently issued actively traded U.S. Treasury securities having a maturity equal to the Remaining Life of such Called Principal as of such Settlement Date or (b) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (519) (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Life of such Called Principal as of such Settlement Date. Such implied yield will be determined, if necessary, by (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (ii) interpolating linearly between (A) the actively traded U.S. Treasury security with the maturity closest to and greater than such Remaining Life and (B) the actively traded U.S. Treasury security with the maturity closest to and less than such Remaining Life. The Reinvestment Yield shall be rounded to two decimal places.

"**Related Fund**" means, with respect to any Holder that is an investment fund, any other investment fund that is engaged in making, purchasing, holding or otherwise investing in bank loans, commercial loans, private placements and similar extensions of credit in the ordinary course and that is managed, advised or sub-advised by the Holder, an Affiliate of such Holder, or an entity that administers, advises, sub-advises or manages such Holder. Related Fund shall, with respect to any Holder, also include any swap, special purpose vehicles purchasing or acquiring security interests in collateralized loan obligations of such Holder or any other vehicle through which such Holder's investment advisors may leverage its investments from time to time.

"**Release**" means any depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping, or disposing.

"**Remaining Life**" means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the Make-Whole Expiry Date.

"**Remaining Scheduled Payments**" means, with respect to the Called Principal of any Note, all payments of Interest in respect of such Called Principal that would be due on or after the Settlement Date through the Make-Whole Expiry Date with respect to such Called Principal if no payment of such Called Principal (or other payment of principal on the Notes) were made (to be calculated assuming the Adjusted Term SOFR Rate at the time the applicable notice of payment is delivered applies through the applicable period or, if no such notice is given, assuming the Adjusted Term SOFR Rate at the time of such payment applies through the applicable period).

"**Remedial Work**" as defined in <u>Section 6.09(a)</u>.

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"**Requisite Holders**" means two or more Holders having or holding Exposure representing more than fifty percent (50%) of the sum of the aggregate Exposure of all Holders.

"**Reserve Report**" means (a) the Initial Reserve Report, (b) the Acquired Assets Reserve Report and (c)(i) any other subsequent report, in the form of the Initial Reserve Report (including an Aries database) and/or (ii) any other engineering data acceptable to the Agent (at the direction of the Requisite Holders), setting forth, as of the dates set forth in <u>Section 6.11(a)</u>, the Proved Reserves and Probable Reserves attributable to the Oil and Gas Properties of the Issuer and the other Note Parties, together with a projection of the rate of production and future net revenues, operating expenses (including production taxes and ad valorem expenses, if applicable) and capital expenditures with respect thereto as of such date, based upon pricing assumptions consistent with SEC reporting requirements at the time and reflecting Swap Agreements in place with respect to such production.

"**Reserve Report Certificate**" means a certificate of a Responsible Officer in substantially the form of <u>Exhibit J</u> certifying as to the matters in <u>Section 6.11(b)</u>.

"**Resolution Authority**" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"**Responsible Officer**" means, as to any Person, the chief executive officer, the president, any Financial Officer or any vice president or authorized signatory of such Person; <u>provided</u> that if such person is a limited partnership or limited liability company, any reference to a Responsible Officer of such Person shall be a reference to a Responsible Officer of such limited liability company or of the general partner or sole member, as applicable, of such Person. Unless otherwise specified, all references to a Responsible Officer herein shall mean a Responsible Officer of the Issuer.

"**Restricted Payment**" means (a) any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in the Issuer or any of its Subsidiaries, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Issuer or any of its Subsidiaries or any option, warrant or other right to acquire any such Equity Interests in the Issuer or any of its Subsidiaries and (b) any payment of management fees, advisory fees, consulting fees or similar fees by the Issuer or any Restricted Subsidiary to any holders of their Equity Interests or any Affiliates thereof. Notwithstanding the foregoing, for purposes of this Agreement, AUM Fees and Dividend Incentive Fees shall constitute Restricted Payments and not General and Administrative Costs.

**"Restricted Subsidiary"**means any Subsidiary of the Issuer that is not an Unrestricted Subsidiary.

"**Rolling Period**" means, as of any date of determination, the most recently ended period of four (4) consecutive Fiscal Quarters for which financial statements have been delivered, or were required to be delivered, pursuant to <u>Section 6.01(a)</u> or <u>Section 6.01(b)</u>, as applicable; <u>provided</u> that, for purposes of <u>Section 7.01</u>, "Rolling Period" means, as of the last day of any Fiscal Quarter, the period of four (4) consecutive Fiscal Quarters ending on such date.

"**S&P**" means Standard & Poor's Ratings Group, a division of The McGraw-Hill Companies, Inc., and any successor thereto that is a nationally recognized rating agency.

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"**Sanctioned Country**" means, at any time, a country, region or territory which is itself, or whose government is, the subject or target of any Sanctions broadly restricting or prohibiting dealings with such country, territory or government (at the time of this Agreement, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, the non-government-controlled areas of the Kherson and Zaporizhzhia Regions of Ukraine, the Crimea Region of Ukraine, Cuba, Iran, North Korea and Syria).

"**Sanctioned Person**" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State or by the United Nations Security Council, the European Union, any European Union member state or His Majesty's Treasury of the United Kingdom, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any government that is itself the subject or target of sanctions or (d) any Person 50% or more owned or controlled by any such Person or Persons described in the foregoing <u>clauses (a)</u>, <u>(b)</u> or <u>(c)</u>.

"**Sanctions**" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, the United Nations Security Council, the European Union, any European Union member state, or His Majesty's Treasury.

"**SEC**" means the United States Securities and Exchange Commission or any Governmental Authority succeeding to any of its principal functions.

"**Second Engineer**" as defined in <u>Section 1.05(d)</u>.

"**Second Amendment**" means that certain Second Amendment to Note Purchase Agreement, dated as of June 23, 2025, by and among the Issuer, the other Note Parties, the Agent, the Holders and the Second Amendment Incremental Note Holders.

"**Second Amendment Effective Date**" means June 23, 2025.

"**Second Amendment Incremental Commitment**" means the commitments of the Second Amendment Incremental Note Holders to purchase the Second Amendment Incremental Notes on the Second Amendment Effective Date. The aggregate amount of the Second Amendment Incremental Commitments is $100,000,000.

"**Second Amendment Incremental Note Holders**" means each person listed on the signature page to the Second Amendment as a Second Amendment Incremental Note Holder.

"**Second Amendment Incremental Notes**" means the Notes purchased on the Second Amendment Effective Date pursuant to <u>Section 2.01(a)(iii)</u>, as evidenced by a promissory note in the form of <u>Exhibit B-2</u>.

"**Second Amendment LOS/CF Certificate**" means the LOS/CF Certificate delivered on July 20, 2025.

"**Second Amendment Pre-Fund Date**" means June 20, 2025.

"**Second Amendment Reserve Report**" means the Reserve Report prepared internally by the Issuer, dated as of January 1, 2025, evaluating the Proved Reserves comprising the Acquired PHX Assets acquired pursuant to the Specified PHX Merger Agreement as of the Second Amendment Effective Date.

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"**Second Amendment Transaction Expenses**" means any fees or expenses incurred by the Issuer or any of its Restricted Subsidiaries in connection with the Second Amendment, the Specified PHX Merger Agreement and the transactions contemplated thereby.

"**Second Offer**" as defined in <u>Section 2.09(g)</u>.

"**Secondary Distributions**" as defined in <u>Section 7.04(c)(i)(A)</u>.

"**Secured Hedge Agreement**" means any Swap Agreement between a Note Party and a Secured Hedge Provider entered into (a) substantially concurrently with such Secured Hedge Provider becoming, or after such Secured Hedge Provider has become, party to the Hedge Intercreditor Agreement or (b) prior to the Closing Date, to the extent such Secured Hedge Provider was a Secured Hedge Provider on the Closing Date.

"**Secured Hedge Obligations**" means all debts, liabilities, obligations, covenants and duties of any Note Party to any Secured Hedge Provider under any Secured Hedge Agreement, so long as such Secured Hedge Provider is party to, and remains subject to, the Hedge Intercreditor Agreement.

"**Secured Hedge Provider**" means, any Approved Counterparty that is party to, and remains subject to, the Hedge Intercreditor Agreement, either by signing the Hedge Intercreditor Agreement directly or by entry into a Joinder Supplement (as defined in the Hedge Intercreditor Agreement) pursuant to the terms and conditions of the Hedge Intercreditor Agreement.

"**Secured Parties**" means, collectively, the Agents, the Holders, the Secured Hedge Providers and any other Person owed Obligations, and "Secured Party" means any of them individually.

"**Securities Account**" means any "securities account" as defined in the UCC.

"**Securities Act**" means the Securities Act of 1933, as amended from time to time, the rules and regulations promulgated thereunder and any successor statute.

"**Seller**" means Three Rivers Royalty II, LLC.

"**Series A Preferred Shares**" means the 44,100 shares of preferred stock designated as "Series A Preferred Stock" pursuant to Section 1 of the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**Series B Preferred Shares**" means the 50,000 shares of preferred stock designated as "Series B Preferred Stock" pursuant to Section 1 of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**Series C Preferred Shares**" means the fifty six thousand (56,000) shares of preferred stock designated as "Series C Preferred Stock" pursuant to Section 1 of the Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of March 26, 2025.

"**Settlement Date**" means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be prepaid pursuant to <u>Section 2.08</u> or <u>Section 2.09</u> as the context requires.

"**SOFR**" means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website.

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"**SOFR Administrator**" means the NYFRB (or a successor administrator of the secured overnight financing rate).

"**SOFR Administrator's Website**" means the NYFRB's website, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"**Solvency Certificate**" means a Solvency Certificate of a Financial Officer substantially in the form of <u>Exhibit E</u>.

"**Solvent**" means, with respect to any Person on any date of determination, that on such date (a) the present fair saleable value of the property of such Person and its Subsidiaries on a consolidated basis will be greater than the amount that will be required to pay the probable liability of such Person and its Subsidiaries on a consolidated basis on their debts and other liabilities, as such debts and other liabilities become absolute and matured; (b) such Person and its Subsidiaries on a consolidated basis will be able to pay their debts and liabilities, direct, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (c) such Person and its Subsidiaries on a consolidated basis will not have unreasonably small capital with which to conduct the businesses in which they are engaged as such businesses are conducted as of such date and are proposed to be conducted following such date.

"**Specified Acquisition**" means the acquisition by WhiteHawk Income Marcellus LLC of the Acquired Assets on the Closing Date pursuant to and in accordance with the terms and conditions of the Specified Acquisition Agreement.

"**Specified Acquisition Agreement**" means that certain Purchase and Sale Agreement between Three Rivers Royalty II, LLC, a Colorado limited liability company, as seller (the "**Seller**") and WhiteHawk Income Marcellus LLC, a Delaware limited liability company, as buyer, dated as of and as in effect on September 17, 2024, together with all exhibits, annexes, schedules and other disclosure or other letters thereto, collectively.

"**Specified Equity Contribution**" means, at any time, without duplication, (a) the amount of cash proceeds received by the Issuer as cash capital contributions from one or more holders of the Equity Interests of the Issuer during the Cure Period or (b) the amount of proceeds received from the issuance of common Equity Interests issued by the Issuer (or, on terms reasonably satisfactory to the Requisite Holders, other forms of Equity Interests (it being understood that preferred Equity Interests in form and substance substantially the same as the Series A Preferred Shares or Series B Preferred Shares as of the Closing Date shall be deemed to be on terms reasonably satisfactory to the Requisite Holders)) to one or more of the holders of the Equity Interests of the Issuer during the Cure Period (in each case, other than in connection with an issuance by the Issuer of Disqualified Capital Stock), which is made for the purpose of curing a failure to comply with <u>Sections 7.01(a)</u> or <u>7.01(b)</u> that would otherwise occur, pursuant to the exercise of a cure right pursuant to <u>Section 7.01(c)</u>.

"**Specified Period A Equity Redemptions**" means redemptions by the Issuer of its (a) common Equity Interests in accordance with the Issuer's Organizational Documents in effect as of the Second Amendment Effective Date, (b) Series B Preferred Shares in accordance with the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 and/or (c) Series C Preferred Shares in accordance with the Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of March 26, 2025, in each case as in effect as of the date hereof.

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**"Specified Period B/C Level I Equity Redemptions**" means redemptions by the Issuer of its (a) common Equity Interests in accordance with the Issuer's Organizational Documents in effect as of the Second Amendment Effective Date and/or Series B Preferred Shares in accordance with the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 , in each case as in effect as of the date hereof.

**"Specified Period B/C Level II Equity Redemptions**" means redemptions by the Issuer of its (a) Series B Preferred Shares in accordance with the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 and/or (b) Series C Preferred Shares in accordance with the Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of March 26, 2025, in each case as in effect as of the date hereof.

"**Specified Event**" as defined in <u>Section 9.02</u>.

"**Specified Issuance Proceeds**" as defined in <u>Section 7.04(e)</u>.

"**Specified PHX Merger**" means the acquisition by WhiteHawk Merger Sub, Inc. ("**Merger Sub**") of the outstanding common stock of PHX Minerals Inc., a Delaware corporation (the "**<u>Target</u>**"), by means of a cash tender offer (the "**<u>Offer</u>**") by Merger Sub to acquire any and all of the outstanding shares of common stock of the Target, and, as soon as practicable following the consummation of the Offer, a merger of Merger Sub with and into the Target pursuant to Section 251(h) of the General Corporation Law of the State of Delaware on the Second Amendment Effective Date pursuant to and in accordance with the terms and conditions of the Specified PHX Merger Agreement.

"**Specified PHX Merger Agreement**" means that certain Agreement and Plan of Merger between WhiteHawk Acquisition, Inc., Whitehawk Merger Sub, Inc. and PHX Minerals Inc., dated as of May 8, 2025 and as in effect on June 23, 2025, together with all exhibits, annexes, schedules and other disclosure or other letters thereto, collectively.

"**Specified RPs**" as defined in <u>Section 7.04(d)</u>.

"**Specified SJM Acquisition**" means the acquisition by Whitehawk Income Marcellus LLC of the Acquired SJM Assets on the First Amendment Effective Date pursuant to and in accordance with the terms and conditions of the Specified SJM Acquisition Agreement.

"**Specified SJM Acquisition Agreement**" means that certain Purchase and Sale Agreement between Three Rivers Royalty, LLC, as seller, and WhiteHawk Income Marcellus LLC, as buyer, dated as of and as in effect on March 31, 2025, together with all exhibits, annexes, schedules and other disclosure or other letters thereto, collectively.

"**Strip Price**" means, at any time, (a) for each remaining month of the current calendar year, the monthly NYMEX Pricing for the remaining contracts in the current calendar year, (b) for each of the succeeding five complete calendar years, the monthly NYMEX Pricing, in each case, for each of the twelve months in each such calendar year, and (c) for the succeeding sixth complete calendar year, and for each calendar year thereafter, the annual monthly average of the NYMEX Pricing of the preceding fifth calendar year.

"**Subsidiary**" means, with respect to any Person (the "Parent") at any date, any other Person the accounts of which would be consolidated with those of the Parent in the Parent's consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other Person (a) of which Equity Interests representing more than 50% of the equity or more than

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50% of the ordinary voting power (irrespective of whether or not at the time Equity Interests of any other class or classes of such Person shall have or might have voting power by reason of the happening of any contingency) or, in the case of a partnership, any general partnership interests are, as of such date, owned, controlled or held, or (b) the management decisions of which, as of such date, are otherwise controlled, in each case, directly, indirectly through one or more intermediaries, or both, by the Parent. Unless otherwise specified, each reference to "Subsidiary" means a Subsidiary of the Issuer. <u>It is understood and agreed that following each DST Sell-Down, until it becomes a subsidiary of the Issuer in accordance with this definition of "Subsidiary" and this final sentence is no longer necessary, each WH DST shall be deemed to be a Subsidiary.</u> 

"**Swap Agreement**" means any swap, forward, collar, future or derivative transaction or option or similar agreement, whether exchange traded, "over-the-counter" or otherwise (and for the avoidance of doubt, including on a prepaid or physically settled basis), involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions (including, but not limited to, as the context dictates, any agreement, contract or transaction that constitutes a "swap" within the meaning of Section 1a(47) of the Commodity Exchange Act); <u>provided</u> that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Issuer or its Restricted Subsidiaries shall be a Swap Agreement.

"**Swap Termination Value**" means, in respect of any one or more Swap Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Agreements, (a) for any date on or after the date such Swap Agreements have been closed out and termination value(s) determined in accordance therewith, such close-out and termination value(s) (including any unpaid amounts) and (b) for any date prior to the date referenced in <u>clause (a)</u>, the amount(s) determined as the mark-to-market value(s) for such Swap Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Agreements.

"**Synthetic Leases**" means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, treated as operating leases on the financial statements of the Person liable (whether contingently or otherwise) for the payment of rent thereunder and which were properly treated as indebtedness for borrowed money for purposes of United States federal income taxes, if the lessee in respect thereof is obligated to either purchase for an amount in excess of, or pay upon early termination an amount in excess of, 80% of the residual value of the Property subject to such operating lease upon expiration or early termination of such lease.

"**Target Debt Balance**" means the aggregate principal amount of Notes as set forth in the following table:

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| | |
|:---|:---|
|  Closing Date | $65000000.0 |
|  January 31, 2025 | $63375000.0 |
|  April 30, 2025 | $147750000.0 |
|  July 31, 2025 | $243975000.0 |
|  October 31, 2025 | $237700000.0 |

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| | |
|:---|:---|
|  January 31, 2026 | $231425000.0 |
|  April 30, 2026 | $225150000.0 |
|  July 31, 2026 | $218875000.0 |
|  October 31, 2026 | $212600000.0 |
|  January 31, 2027 | $206325000.0 |
|  April 30, 2027 | $200050000.0 |
|  July 31, 2027 | $193775000.0 |
|  October 31, 2027 | $187500000.0 |
|  January 31, 2028 | $181225000.0 |
|  April 30, 2028 | $174950000.0 |
|  July 31, 2028 | $168675000.0 |
|  October 31, 2028 | $162400000.0 |
|  January 31, 2029 | $156125000.0 |
|  April 30, 2029 | $149850000.0 |
|  July 31, 2029 | $143575000.0 |
|  October 31, 2029 | $137300000.0 |
|  January 31, 2030 | $131025000.0 |
|  April 30, 2030 | $124750000.0 |

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"**Tax**" or "**Taxes**" means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"**Tax on the Overall Net Income**" of a Person means (a) Taxes imposed on or measured by net income (however denominated), franchise Tax and branch profits Tax, in each case, imposed on a Person by the jurisdiction (or any political subdivision thereof) in which a Person is organized or in which that Person's applicable principal office (and/or, in the case of a Holder, its Applicable Office) is located or in which that Person (and/or, in the case of a Holder, its Applicable Office) is deemed to be doing business, and (b) any Tax imposed as a result of a present or former connection between such Person and the jurisdiction imposing such Tax (other than connections arising from such Person having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Note Document, or sold or assigned an interest in any Note or Note Document).

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"**Tax Related Person**" means, with respect to a pass-through entity, any Person who is a beneficial owner of an interest in such pass-through entity who is required to include in income amounts realized (whether or not distributed) by such pass-through entity. The foregoing shall be determined under United States federal income tax principles.

"**Term SOFR Determination Day**" has the meaning assigned to it under the definition of Term SOFR Reference Rate.

"**Term SOFR Rate**" means the three-month Term SOFR Reference Rate at approximately 12:00 p.m., New York time, two (2) U.S. Government Securities Business Days prior to the commencement of the applicable Interest Period, as such rate is published by the CME Term SOFR Administrator.

"**Term SOFR Reference Rate**" means, for any day and time (such day, the "**Term SOFR Determination Day**"), with respect to any Interest Period, the rate per annum determined by the Agent as the three-month forward-looking term rate based on SOFR. If by 5:00 p.m. (New York City time) on such Term SOFR Determination Day, the "Term SOFR Reference Rate" has not been published by the CME Term SOFR Administrator, then the Term SOFR Reference Rate for such Term SOFR Determination Day will be the Term SOFR Reference Rate as published in respect of the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate was published by the CME Term SOFR Administrator, so long as such first preceding Business Day is not more than three (3) Business Days prior to such Term SOFR Determination Day.

<u>"**Third Amendment**" means that certain Third Amendment to Note Purchase Agreement, dated as of January 27, 2026, by and among the Issuer, the other Note Parties, the Agents and the Holders.</u>

<u>"**Third Amendment Effective Date**" means January 27, 2026.</u>

"**Total Net Debt**" means, as of any date of determination, (a) the aggregate amount of Debt of the Issuer and its Consolidated Restricted Subsidiaries outstanding on such date, determined on a consolidated basis in accordance with GAAP consisting only of Debt of the Issuer and its Restricted Subsidiaries for borrowed money, drawn but unreimbursed obligations under letters of credit, obligations in respect of Finance Leases and other obligations for borrowed money evidenced by bonds, bankers' acceptances, debentures, notes or other similar instruments (excluding, for the avoidance of doubt, Debt under surety or other performance bonds and similar instruments), <u>minus</u> (b) the aggregate amount of the Note Parties' Unrestricted Cash on hand as of such date in an aggregate amount not to exceed $25,000,000.

"**Total PDP PV-10 Value**" means, as of any date of determination, with respect to the Proved Developed Producing Reserves constituting Oil and Gas Properties of the Note Parties, the net present value of future cash flows (discounted at ten percent (10%) *per annum*) calculated in accordance with <u>Section 1.05</u>.

"**Transaction Expenses**" means any fees or expenses incurred or paid by the Issuer or any of its Restricted Subsidiaries in connection with the Transactions, this Agreement and the other Note Documents and the transactions contemplated hereby.

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"**Transactions**" means the transactions contemplated by the Note Documents to occur on or prior to the Closing Date, including (a) the execution, delivery and performance by the Note Parties of the Note Documents to which they are a party and the issuance of the Notes hereunder, (b) the consummation of the Specified Acquisition and the Refinancing and (c) the payment of related fees and expenses.

<u>"**Trust Agreements**" means (a) the Amended and Restated Trust Agreement of WhiteHawk Royalties I DST, a Delaware Statutory Trust (the "**Initial Trust Agreement**") by and among WhiteHawk DST Depositor LLC, as the depositor, WhiteHawk DST Manager LLC, as the Manager and signatory trustee, and Corporate Creations Network Inc., as the Delaware trustee (including all amendments, exhibits and schedules thereto) in substantially the same form delivered to the Required Lenders on the Third Amendment Effective Date and (b) a trust agreement of a WH DST with substantially the same form, terms and conditions as the Initial Trust Agreement as in effect on the Third Amendment Effective Date.</u>

"**U.S. Tax Compliance Certificate**" as defined in <u>Section 2.14(e)(iii)</u>.

"**UCC**" means the Uniform Commercial Code as in effect in any applicable jurisdiction.

"**UK Financial Institution**" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"**UK Resolution Authority**" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"**United States Person**" has the meaning in Section 7701(a)(30) of the Internal Revenue Code. "**Unrestricted Cash**" means cash or Cash Equivalents of the Issuer or any of its Restricted Subsidiaries that would not appear as "restricted" on a consolidated balance sheet of the Issuer or any of its Restricted Subsidiaries; <u>provided</u> that (a) cash or Cash Equivalents that would appear as "restricted" on a consolidated balance sheet of the Issuer or any of its Restricted Subsidiaries solely because such cash or Cash Equivalents are subject to a Control Agreement in favor of the Collateral Agent shall constitute Unrestricted Cash hereunder and (b) cash and Cash Equivalents shall be included in the determination of Unrestricted Cash only to the extent that such cash and Cash Equivalents are maintained in accounts subject to a Control Agreement as required hereunder.

"**Unrestricted Subsidiary**" means any Subsidiary of the Issuer designated as such on <u>Schedule 4.13</u>. Notwithstanding anything to the contrary, there shall be no Unrestricted Subsidiaries under the Note Purchase Agreement or any other Note Document and the Issuer shall not be permitted to designate any Subsidiary as an Unrestricted Subsidiary.

"**U.S. Government Securities Business Day**" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

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"**USA PATRIOT Act**" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. 107-56), as amended.

<u>"**WH Depositors**" means, collectively (a) WhiteHawk DST Depositor LLC, a Delaware limited liability company and (b) a wholly-owned subsidiary of the Issuer with a substantially similar business purpose and organizational structure as WhiteHawk DST Depositor LLC as in effect on the Third Amendment Effective Date.</u>

<u>"**WH DSTs**" means, collectively (a) WhiteHawk Royalties I DST, a Delaware Statutory Trust and (b) a Delaware statutory trust initially formed and beneficially owned by a WH Depositor with a substantially similar business purpose and organizational structure as WhiteHawk DST Depositor LLC as in effect on the Third Amendment Effective Date.</u>

<u>"**WH DST Offering**" mean a specific offering and syndication of class 1 beneficial interests in a WH DST to third-party investors pursuant to the applicable DST PPM.</u>

<u>"**WH Master Tenants**" means, collectively (a) WhiteHawk DST Master Tenant LLC, a Delaware limited liability company and (b) a wholly-owned subsidiary of the Issuer with a substantially similar business purpose and organizational structure as WhiteHawk DST Master Tenant LLC as in effect on the Third Amendment Effective Date.</u>

<u>"**WH OPs**" means, collectively (a) WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership and (b) a wholly-owned subsidiary of the Issuer with a substantially similar business purpose and organizational structure as WhiteHawk Income Operating Partnership L.P. as in effect on the Third Amendment Effective Date.</u>

"**Wholly-Owned Subsidiary**" means any Restricted Subsidiary of which all of the outstanding Equity Interests (other than any directors' qualifying shares mandated by applicable law), on a fully-diluted basis, are owned by the Issuer or one or more of the Wholly-Owned Subsidiaries or are owned by the Issuer and one or more of the Wholly-Owned Subsidiaries.

"**Withholding Agent**" means each of the Note Parties or the Agent.

"**Write-Down and Conversion Powers**" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

**Section 1.03.** <u>Accounting Terms</u>. Except as otherwise expressly provided herein, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Note Document, and the Issuer or the Requisite Holders shall so request, the Requisite Holders and the Issuer shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; <u>provided</u> that, until so amended,

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such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and the Issuer shall provide to Agent and Holders reconciliation statements requested by Agent, acting at the written direction of the Requisite Holders, (reconciling the computations of such financial ratios and requirements from then-current GAAP computations to the computations under GAAP prior to such change) in connection therewith. Financial statements and other information required to be delivered by the Issuer to Holders pursuant to <u>Sections 6.01(a)</u> and <u>6.01(b)</u> shall be prepared in accordance with GAAP as in effect at the time of such preparation. Subject to the foregoing, calculations in connection with the definitions, covenants and other provisions hereof shall utilize accounting principles and policies in conformity with those used to prepare the historical financial statements of the Issuer.

**Section 1.04.** <u>Interpretation, etc</u>. Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference. References herein to any Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an Exhibit, as the case may be, hereof unless otherwise specifically provided. References herein to a Schedule shall be considered a reference to such Schedule as of the Closing Date. The use herein of the word "include" or "including," when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not no limiting language (such as "without limitation" or "but not limited to" or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter. The use of the words "repay" and "prepay" and the words "repayment" and "prepayment" herein shall each have identical meanings hereunder. Unless otherwise indicated, any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein (it is understood that the phrase "any functionally equivalent term", when used with respect to another term, means a term with substantially the same meaning as such other term)). The use herein of the phrase "to the knowledge of" with respect to a Note Party shall be a reference to the knowledge of the Responsible Officers of the applicable Note Party. Unless otherwise specified, whenever any obligation required hereunder shall be stated to be due or performed on a day that is not a Business Day, such obligation shall be required on the immediately succeeding Business Day and such extension of time shall be included in the satisfaction of the obligation required hereunder (except as set forth in the definition of "Maturity Date"). The use of the phrase "subject to" or words of like import as used in connection with Liens permitted under <u>Section 7.03</u> or otherwise and the permitted existence of any Liens permitted under <u>Section 7.03</u> or any other Liens shall not be interpreted to expressly or impliedly subordinate any Liens granted in favor of the Collateral Agent or any other Secured Party as there is no intention to subordinate the Liens granted in favor of the Collateral Agent and the other Secured Parties. The words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights. No provision of this Agreement or any other Note Document shall be interpreted or construed against any Person solely because such Person or its legal representative drafted such provision. The words "execution," "signed," "signature," and words of like import in any Note Document or any amendment or other modification thereof shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; <u>provided</u> that, notwithstanding anything herein to the contrary, the Agents are under no obligation to agree to accept electronic signatures in any form or in any format

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unless expressly agreed to by the Agents pursuant to reasonable procedures approved by the Agents. All notices, approvals, consents, requests and any communications hereunder must be in writing, in English (<u>provided</u> that any such communication sent to an Agent hereunder must be delivered by electronic mail (if in such Agent's discretion), or in the form of a document that is signed manually or by way of a digital signature provided by DocuSign or AdobeSign (or such other digital signature provider as specified in writing to the Agents by the Issuer)). The Note Parties agree to assume all risks arising out of the use of using digital signatures and electronic methods to submit communications to an Agent, including without limitation the risk of the Agents acting on unauthorized instructions, and the risk of interception and misuse by third parties. Any reference in the Note Documents to the Agent or Collateral Agent exercising discretion or making determinations shall refer to the Agent or Collateral Agent exercising such discretion or making such determination at the direction of the Requisite Holders. Neither the Agent nor the Collateral Agent shall have any obligation to act in the absence of such direction.

**Section 1.05.** <u>Calculations of Total PDP PV-10 Value</u>. Notwithstanding anything to the contrary contained herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for all calculations of Total PDP PV-10 Value hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) appropriate deductions shall be made for severance and ad valorem taxes, obligations and anticipated payments in respect of minimum volume commitments, capital expenditures and for operating, gathering, transportation and marketing costs required for the development, operation, production and sale of such oil and gas properties (including any contractually specified cost increases or escalators), plugging and abandonment (and other asset retirement obligations) or any other expenses in respect of such Oil and Gas properties (including expense incurred after the end of the expected economic lives of such Oil and Gas properties or contractually required increases in or escalators for expenses) in respect of such oil and gas properties,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without prejudice to <u>Section 6.12(c)(ii)</u>, appropriate deductions shall be made for the benefits associated with Proved Developed Producing Reserves constituting Oil and Gas Properties of the Note Parties for which reasonably satisfactory title information as determined by the Requisite Holders has not been provided to the Requisite Holders on at least 90% of the cash flows attributable to such Proved Developed Producing Reserves,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the pricing assumptions used in determining Total PDP PV-10 Value for any Oil and Gas properties shall be based upon the Strip Price as described in <u>clause (c)</u> below, to reflect the Note Parties' commodity Swap Agreements with Approved Counterparties then in effect so that the expected cash flows with respect to such Swap Agreements are included in the determination of Total PDP PV-10 Value, without duplication with the cash flows from the production subject to such Swap Agreements (it being understood that deferred premiums in respect of such Swap Agreements shall be deducted from such expected cash flows),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the cash flows derived from the pricing assumptions set forth in <u>clause (ii)</u> above shall be further adjusted for basis, quality and gravity differentials based on historical differentials and go-forward expectations,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the methodology applied towards any such calculation shall be consistent with, as reasonably determined by the Requisite Holders, the methodology applied in the Acquired Assets Reserve Report and the Initial Reserve Report, including without limitation the methodology applied to allocate fixed platform expenses to various reserve categories, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) notwithstanding the foregoing, wells shall only be included in the determination of Total PDP PV-10 Value to the extent that the Issuer receives revenue in the form of cash or Cash Equivalents pursuant to its ownership interest in such wells;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any such calculation, other than any calculation made as of the last day of any Fiscal Quarter with respect to <u>clause (i)</u> and <u>clause (iii)</u> below, shall be calculated on a pro forma basis for (i) the roll-off of production since the date of the most recently delivered Reserve Report, (ii) any change in the category of any Oil and Gas Property to another category of Oil and Gas Property (e.g., any "proved undeveloped reserves" becoming "proved developed reserves") and (iii) any disposition or acquisition of Oil and Gas Properties of the Note Parties constituting Proved Developed Producing Reserves, in each case, occurring or consummated by the Note Parties following the "as of" date of the Reserve Report most recently delivered by the Issuer pursuant to <u>Section 6.11</u> (<u>provided</u> that, in the case of <u>clause (ii)</u> and dispositions or acquisitions under <u>clause (iii)</u> above, the Requisite Holders shall have received, and such update shall be based on, updated reserve engineering projections, reasonably acceptable to the Requisite Holders, evaluating the Proved Developed Producing Reserves attributable to the Oil and Gas Properties subject thereto ("**Specified Reserve Updates**")) but prior to the date on which Total PDP PV-10 Value is being calculated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any calculation of Total PDP PV-10 Value (i) on any date other than the last day of any Fiscal Quarter shall be made using (x) the information set forth in the Reserve Report most recently delivered by the Issuer pursuant to <u>Section 6.11</u> (as supplemented by any Specified Reserve Updates) and with an "as of" date that is such date of determination and (y) a Strip Price determined as the Strip Price for the date that is five (5) Business Days prior to such date of determination and (ii) on the last day of any Fiscal Quarter shall be made using (x) the information set forth in the Reserve Report with an "as of" date that is the same as such date and shall be based on reserve categories of the Oil and Gas properties on such date, and (y) a Strip Price determined as of the date that is forty (40) days after the end of the Fiscal Quarter to which the applicable corresponding certificate delivered pursuant to <u>Section 6.01(c)</u> pertains; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) within ten (10) Business Days of receiving an Asset Coverage Ratio certificate provided pursuant to <u>Section 6.01(c)</u> or <u>Section 6.01(u)</u>, the Requisite Holders may, in their sole discretion, (x) request additional information with respect to such Asset Coverage Ratio certificate, its related Reserve Report and/or (y) deliver written notice to the Issuer that the Requisite Holders do not agree with the information set forth in such Reserve Report, Specified Reserve Updates and/or the Issuer's calculation of the Asset Coverage Ratio (including any component thereof). Upon delivery of such written notice by the Requisite Holders, the Issuer and the Requisite Holders shall promptly engage in good faith discussions to come to an agreement with respect to such Reserve Report, Specified Reserve Updates and/or such calculation of the Asset Coverage Ratio (including any component thereof). If the Issuer and the Requisite Holders have not resolved any such disagreements within five (5) Business Days (or such longer period as is mutually agreeable to the Issuer and the Requisite Holders),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Requisite Holders shall have the right to elect within ten (10) Business Days (or such longer period as is mutually agreeable to the Issuer and the Requisite Holders) following the initial five (5) Business Day period to have an Approved Petroleum Engineer selected by the Requisite Holders (a "**Second Engineer**") audit the Reserve Report, Specified Reserve Updates and related calculations delivered by the Issuer; <u>provided</u> that such Second Engineer's audit and preparation of a revised Reserve Report and updated calculations of the Asset Coverage Ratio shall be completed within thirty (30) days of delivery of the Requisite Holder's notice of dispute (or such later date as is mutually agreeable to the Issuer and the Requisite Holders). The Issuer and the Requisite Holders will endeavor that such determination be provided as soon as possible (and agree to promptly provide such information as may be requested by the Second Engineer in

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connection with such determination). The Second Engineer's determination of fact as to such matters and as to the Total PDP PV-10 Value that will be used in the calculation of Asset Coverage Ratio shall be binding, absent manifest error. If the Second Engineer's calculation of Total PDP PV-10 Value is (x)(1) higher than or (2) lower by less than ten percent (10%) of, the disputed Reserve Report's calculation of Total PDP PV-10 Value, then the fees and expenses of the Second Engineer with respect to such applicable dispute shall be paid by the Requisite Holders and (y) lower by ten percent (10%) or greater of the disputed Reserve Report's calculation of Total PDP PV-10 Value, the fees and expenses of the Second Engineer with respect to such applicable dispute shall be paid by the Issuer, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event the Requisite Holders have not elected to have a Second Engineer audit the Reserve Report, Specified Reserve Updates and related calculations delivered by the Issuer in accordance with <u>clause (i)</u> above, the Issuer and the Requisite Holders shall refer such matters to the Approved Petroleum Engineer that most recently prepared a Reserve Report to make a determination (which shall be binding, absent manifest error) of fact as to such matters and as to the Total PDP PV-10 Value that will be used in the calculation of Asset Coverage Ratio. The Issuer and the Requisite Holders will endeavor that such determination be provided as soon as possible (and agree to promptly provide such information as may be requested by such Approved Petroleum Engineer in connection with such determination), and in any event within thirty (30) days of submission of such request to such Approved Petroleum Engineer (or such later date as is mutually agreeable to the Issuer and the Requisite Holders).

During any such period of determination by the applicable Second Engineer or Approved Petroleum Engineer, as applicable (x) there shall be no Default or Event of Default arising from any non-compliance with <u>Section 7.01(b)</u> for the applicable test date and (y) no event or transaction that requires the calculation of, and compliance with, an Asset Coverage Ratio on a Pro Forma Basis, Distribution PF Basis or otherwise shall be entered into or consummated by the Issuer and its Restricted Subsidiaries. For the avoidance of doubt, if the final determination by such Second Engineer or Approved Petroleum Engineer, as applicable, would result in a finding that would cause the Issuer to fail to be in compliance with <u>Section 7.01(b)</u>, all rights of the Issuer under <u>Section 7.01(c)</u> shall apply.

**Section 1.06.** <u>Free Cash Flow Distributions and Prepayments Spreadsheet</u>. For clarity, <u>Appendix D</u> contains an illustrative example of the calculations set forth in <u>Section 2.09(a)</u>, <u>Section 7.04(e)</u> and <u>Section 7.05(h)</u> and the definitions of "Adjusted Cash Flow from Operating Activities", "Cash Flow From Operating Activities", "Distributable Free Cash Flow", "Distribution PF Basis", "Free Cash Flow (Back)", "Free Cash Flow (Forward)", "Free Cash Flow Utilization", and "Prior Period Adjustment" and the parties hereto agree that the principles and methodologies with respect to the calculations set forth in <u>Appendix D</u> shall, absent manifest error, govern with respect thereto.

**ARTICLE II** 

**PURCHASE AND SALE OF NOTES** 

**Section 2.01.** <u>Note Purchase</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>The Notes</u>. Subject to the terms and conditions hereof (i) on the Closing Date, Issuer shall issue to each Holder, and each Holder shall purchase from Issuer (so long as all conditions precedent required hereby shall have then been satisfied or waived), a Note denominated in Dollars in an aggregate principal amount equal to such Holder's Pro Rata Share of $65,000,000, (ii) on the First Amendment Effective Date, Issuer shall issue to each First Amendment Additional Note Holder, and each First Amendment Additional Note Holder shall purchase from Issuer (so long as all conditions

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precedent required hereby shall have then been satisfied or waived), a Note denominated in Dollars in an aggregate principal amount equal to such Holder's Pro Rata Share of $86,000,000 and (iii) on the Second Amendment Effective Date, Issuer shall issue to each Second Amendment Incremental Note Holder, and each Second Amendment Incremental Note Holder shall purchase from Issuer (so long as all conditions precedent required under the Second Amendment shall have then been satisfied or waived), a Note denominated in Dollars in an aggregate principal amount equal to such Holder's Pro Rata Share of $100,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notes purchased under this <u>Section 2.01</u> and repaid or prepaid may not be resold, repurchased or reborrowed. In addition, each Holder's Commitment shall be reduced in full and immediately terminated upon giving effect to the purchases of the Notes on the Closing Date.

**Section 2.02.** <u>The Notes; Purchases, Conversions and Continuations of Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the absence of manifest error, the obligation of Issuer to repay to each Holder the aggregate amount of all Notes held by such Holder, together with interest accruing in connection therewith, shall be evidenced by the Notes made by Issuer payable to such Holder or its registered assigns with appropriate insertions. Interest on each Note shall accrue and be due and payable as provided herein or in the applicable Note. Each Note shall be due and payable as provided herein and shall be due and payable in full on the Maturity Date. Issuer may not issue, repay, and reissue Notes hereunder or under the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The failure of any Holder to purchase any Note to be purchased by it as part of any purchase of Notes pursuant to <u>Section 2.01</u> shall not relieve any other Holder of its obligation, if any, hereunder to purchase its Notes on the date of such Note Purchase, but no Holder shall be responsible for the failure of any other Holder to purchase the Notes to be purchased by such other Holder on the date of any Purchase.

**Section 2.03.** <u>Requests for Notes</u>. Issuer must give to Agent written or electronic notice of any requested Note Purchase of Notes to be issued to, and purchased by, Holders. Each such notice constitutes a "Note Purchase Notice" hereunder and must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) specify the aggregate amount of any such Note Purchase and the date on which such Notes are to be purchased; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be received by Agent no later than 12:00 p.m., New York, New York time, ten (10) Business Days prior to the date on which any such Notes are to be purchased (or such earlier date as the Holders may agree (and have notified Agent) in their sole discretion), which Note Purchase Notice shall

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) be sent by the Agent to the Holders no later than 12:00 p.m., New York, New York time one Business Day following receipt by the Agent thereof and (ii) specify the accounts in to which the funds received by Agent on the Closing Date shall be disbursed (which may be in the form of the Flow of Funds).

Each such written request must be made in the form and substance of the Note Purchase Notice, duly completed. Upon receipt of any such Note Purchase Notice, Agent shall give each Holder prompt notice of the terms thereof. If all conditions precedent to such new Notes have been met (or waived), each Holder will on the date requested promptly remit to Agent, at Agent's Account, the amount of such Holder's new Note in immediately available funds, and upon receipt of all such funds, the Agent shall promptly make such funds available to the Issuer and the Issuer will deliver such Notes to the counsel for the Holders who shall promptly make such Notes available to each Holder. The failure of any Holder to purchase any Note hereunder shall not relieve any other Holder of its obligation hereunder, if any, to purchase its Note, but no Holder shall be responsible for the failure of any other Holder to purchase any Note hereunder.

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**Section 2.04.** <u>Use of Proceeds</u>. (a) The proceeds of the Notes issued on the Closing Date shall be used (i) to pay a portion of the purchase price for the Specified Acquisition and (ii)(A) the repayment in full of the Existing Credit Facility (the "<u>Refinancing</u>") and (B) to make redemptions of Series A Preferred Shares and (iii) for general corporate purposes, including to pay the Transaction Expenses; (b) the proceeds of the First Amendment Additional Notes issued on the First Amendment Effective Date shall be used (i) to pay a portion of the purchase price for the Specified SJM Acquisition, (ii) to redeem the Series A Preferred Shares in full and (iii) to pay the First Amendment Transaction Expenses and (c) the proceeds of the Second Amendment Incremental Notes issued on the Second Amendment Effective Date shall be used (i) to pay a portion of the consideration for the Specified PHX Merger and (ii) to pay the Second Amendment Transaction Expenses.

**Section 2.05.** <u>Evidence of Debt; Register; Holders' Books and Records; Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Holders' Evidence of Debt</u>. Each Holder shall maintain in its internal records an account or accounts evidencing the Obligations of the Issuer to such Holder, including the amounts of the Notes held by such Holder and each repayment and prepayment in respect thereof. The failure to make any such recordation, or any error in such recordation, shall not affect any Obligations in respect of any applicable Notes. In the event of any inconsistency between the Register and any Holder's records, the recordations in the Register shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Register</u>. Agent shall maintain at Agent's Office a register for the recordation of the names and addresses of the Holders and principal amounts (and stated interest) of the Notes owing to, each Holder pursuant to the terms hereof from time to time (the "**Register**"). The Register shall be available for inspection by the Issuer and any Holder at any reasonable time and from time to time upon reasonable prior notice. The entries in the Register shall be conclusive and binding on the Note Parties, the Agent and each Holder, absent manifest error; <u>provided</u> that, failure to make any such recordation, or any error in such recordation, shall not affect the Note Parties' Obligations in respect of any Note. The Issuer, the Agent and the Holders shall treat each Person in whose name any Note shall be registered as the owner and the Holder thereof for all purposes hereof. The Issuer hereby designates the entity serving as Agent to serve as the Issuer's non-fiduciary agent solely for purposes of maintaining the Register as provided in this <u>Section 2.05</u>, and the Agent shall be entitled to all of the rights, privileges and immunities afforded to it hereunder in the performance of such duties. Notwithstanding the foregoing, the Agent shall not, or be deemed to, act hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

**Section 2.06.** <u>Interest; Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Interest</u>. Each Note shall at all times bear interest at a rate equal to the Applicable Margin then in effect (as such amount may be increased pursuant to <u>Section 2.06(c)</u>), paid in cash ("**Interest**"). For the avoidance of doubt, interest on the Second Amendment Incremental Notes shall begin to accrue commencing on the Second Amendment Pre-Fund Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Interest Payment Dates</u>. Interest on each Note shall be due and payable on each Interest Payment Date to Holders of record in the Register on such Interest Payment Date; <u>provided</u> that, if Interest on any Note is required to be paid on any Settlement Date pursuant to <u>Section 2.08</u> or <u>Section 2.09</u>, and such Settlement Date is not an Interest Payment Date, then the amount of Interest due and payable on the next succeeding Interest Payment Date will be reduced by the amount of interest accrued to such Settlement Date and required to be paid (and is actually paid) on such Settlement Date

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pursuant to such <u>Section 2.08</u> or <u>Section 2.09</u>. All interest payable hereunder shall be computed on the basis of a year of three hundred sixty (360) days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of three hundred sixty-five (365) days (or three hundred sixty-six (366) days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Default Interest</u>. Notwithstanding the foregoing, (1) automatically upon the occurrence and during the continuance of an Event of Default arising under <u>Section 9.01(a)</u>, <u>Section 9.01(b)</u>, <u>Section 9.01(h)</u> or <u>Section 9.01(i)</u> and (2) if any other Event of Default has occurred and is continuing, then if the Requisite Holders so elect by written notice to the Issuer (with a copy to the Agent), the principal amount of all Notes outstanding and, to the extent permitted by applicable law, any due and unpaid interest payments on the Notes or any unpaid fees or other unpaid amounts owed hereunder (other than default interest occurring under this <u>Section 2.06(c)</u>), shall, commencing on the date of occurrence of the applicable Event of Default, bear interest (including post-petition interest in any proceeding under the Code or other applicable bankruptcy laws, whether or not allowed in such a proceeding) payable in cash on demand at a rate that is two percent (2.0%) per annum in excess of the interest rate otherwise payable hereunder with respect to the Notes to the date of payment to the Agent. Payment or acceptance of the increased rates of interest provided for in this <u>Section 2.06(c)</u> is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Agents or any Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Fees</u>. Issuer will pay to each of the Agents and EIG for their own respective accounts, the fees as set forth in the Agent Fee Letter and the Fee Letter, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Calculations</u>. The Agent shall promptly (but in any event no later than three (3) Business Days to the Issuer and two (2) Business Days to the Holders prior to any Interest Payment Date or the date of any other amount payable under this <u>Section 2.06</u>) notify the Issuer and the Holders of the effective date and the amount of each Interest, fee or other payment under this <u>Section 2.06</u>. Each determination of an interest rate, interest payment amount or fee payment amount by the Agent pursuant to any provision of this Agreement shall be conclusive and binding on the Issuer and the Holders in the absence of manifest error. The Agent shall provide the Issuer notice of the calculation of Term SOFR Rate via email prior to the commencement of the applicable Interest Period.

**Section 2.07.** <u>Repayment of Notes</u>. If any principal or interest amount payable under the Notes remains outstanding on the Maturity Date, such amount will be paid in full by the Issuer to the Agent on behalf of the Holders in immediately available funds on the Maturity Date, together with any amounts required to be paid hereunder, including pursuant to <u>Section 2.06</u>.

**Section 2.08.** <u>Voluntary Prepayments</u>. The Issuer may prepay the Notes on any Business Day in whole or in part (together with any amounts due pursuant to <u>Section 2.06</u> and <u>Section 2.11(g)</u>) in an aggregate minimum principal amount equal to (a) if being paid in whole, the Obligations and (b) if being paid in part, (A) $1,000,000 and integral multiples of $500,000 in excess of that amount or (B) in an amount equal to the difference of the aggregate outstanding principal amount of the Notes on the date of such prepayment and the immediately subsequent Target Debt Balance. All such prepayments shall be made upon not less than three (3) Business Days' prior written notice, in each case given to Agent by 12:00 p.m. (New York, New York time) on the date required, which, upon receipt by the Agent, shall be promptly delivered to the Holders. Upon the giving of any such notice, the principal amount of the Notes specified in such notice shall become due and payable on the prepayment date specified therein. Any notice of prepayment described above may provide that such prepayment is conditioned upon the satisfaction of one of more conditions precedent. Any such voluntary prepayment shall be applied as specified in <u>Section 2.10</u>.

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**Section 2.09.** <u>Mandatory Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>CF Sweep Dates</u>. On each "CF Sweep Date" as set forth in <u>Appendix C</u>, commencing with January 31, 2025, the Issuer shall prepay the Notes in an aggregate principal amount equal to the lesser of (i) the difference between (A) the aggregate outstanding principal amount of Notes and (B) the then current Target Debt Balance, in each case as of the date of such prepayment and (ii) Liquidity, calculated on a Distribution PF Basis, in excess of the Minimum Liquidity Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Casualty Events</u>. Upon receipt by the Issuer or any of its Affiliates of any Net Casualty Event Proceeds in excess of $500,000 for any individual Casualty Event or series of related Casualty Events or $1,000,000 in the aggregate, the Issuer shall within three (3) Business Days after the date of receipt of such Net Casualty Event Proceeds prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of the Net Casualty Event Proceeds and/or, so (A) long as no Default or Event of Default has occurred and is continuing and (B) both (I) as of the date of delivery of the certificate of the Responsible Officer of the Issuer described in the proviso below and (II) as of the date of reinvestment of Net Casualty Event Proceeds (as evidenced with a certificate of the Responsible Officer as of the date of such reinvestment delivered by the Issuer to the Agent), the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00, in each case on a Pro Forma Basis, reinvest such Net Casualty Event Proceeds in make Investments in Oil & Gas Properties or Equity Interests of any entity with no material assets other than Oil and Gas Properties; <u>provided further</u> that promptly following any determination by the Issuer of an election to invest Net Casualty Event Proceeds pursuant to this <u>Section 2.09(b)</u>, the Issuer shall, within thirty (30) days after the receipt of such Net Casualty Event Proceeds, deliver to the Agent a certificate of a Responsible Officer of the Issuer specifying that the Issuer intends to reinvest such Net Casualty Event Proceeds; <u>provided</u> that, if any such Net Casualty Event Proceeds are not reinvested within three-hundred sixty (360) days, the Issuer shall prepay the Notes in an amount equal to the amount of any Net Casualty Event Proceeds from Casualty Event(s) that are not applied or (re-)invested as set forth in this <u>Section 2.09(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Issuance of Debt</u>. Upon receipt by or on behalf of any Note Party or any of their Subsidiaries of any cash proceeds from the incurrence of any Debt (other than Debt that is permitted hereunder) by such Person, the Issuer shall prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of such proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Asset Sales</u>. Upon receipt by the Issuer or any of its Affiliates of any Net Asset Sale Proceeds in excess of $1,000,000 for any non-ordinary course individual Asset Sale or series of related Asset Sales or $2,000,000 in the aggregate, the Issuer shall (i) within three (3) Business Days after the date of receipt of such Net Asset Sale Proceeds prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of the Net Asset Sale Proceeds and/or, so (A) long as no Default or Event of Default has occurred and is continuing and (B) both (I) as of the date of delivery of the certificate of the Responsible Officer of the Issuer described in the proviso below and (II) as of the date of reinvestment of Net Asset Sale Proceeds (as evidenced with a certificate of the Responsible Officer as of the date of such reinvestment delivered by the Issuer to the Agent), the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00, in each case on a Pro Forma Basis, reinvest such Net Asset Sale Proceeds in make Investments in Oil & Gas Properties or Equity Interests of any entity with no material assets other than Oil and Gas Properties; <u>provided further</u> that promptly following any determination by the Issuer of an election to invest Net Asset Sale Proceeds pursuant to this <u>Section 2.09(d)</u>, the Issuer shall, within

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thirty (30) days after the receipt of such Net Asset Sale Proceeds, deliver to the Agent a certificate of a Responsible Officer of the Issuer specifying that the Issuer intends to reinvest such Net Asset Sale Proceeds; <u>provided</u> that, if any such Net Asset Sale Proceeds are not reinvested within three-hundred sixty (360) days, the Issuer shall prepay the Notes in an amount equal to the amount of any Net Asset Sale Proceeds from Asset Sale(s) that are not applied or (re-)invested as set forth in this <u>Section 2.09(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Specified Equity Contribution</u>. Not later than five (5) Business Days following receipt by the Issuer of any Cure Amount in accordance with <u>Section 7.01(c)</u>, the Issuer shall prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of any such Cure Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Prepayment Notice</u>. All prepayments made in accordance with <u>Section 2.09(b)</u> through <u>Section 2.09(e)</u> shall be made upon not less than eight (8) Business Days' prior written notice (or such shorter period as may be consented to by the Requisite Holders, <u>provided</u>, that the time period for any right for the Holders to waive such prepayment pursuant to <u>Section 2.09(g)</u> shall be reduced accordingly), which notice shall be sent by the Agent to the Holders one (1) Business Day following receipt by the Agent thereof. Each such notice shall include the calculation of the amount of the applicable proceeds giving rise to the prepayment, as applicable, and refer to the section under this Agreement relating to such prepayment. In connection with any prepayment required under <u>Section 2.09(b)</u> through <u>Section 2.09(e)</u>, in the event that the Issuer shall subsequently determine that the actual amount received exceeded the amount set forth in such notice, the Issuer shall promptly make an additional prepayment of the Notes in an amount equal to such excess, and the Issuer shall concurrently therewith deliver to Agent a notice of prepayment demonstrating the calculation of such excess. Any notice of prepayment may provide that such prepayment is conditioned upon the satisfaction of one or more conditions precedent. Subject to <u>Section 2.09(g)</u>, the Issuer shall prepay the Notes on the date set forth in the applicable prepayment notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Holder Right to Waive</u>. Notwithstanding anything in this Agreement to the contrary, each Holder, in its sole discretion, may, but is not obligated to, waive the Issuer's requirements to make any prepayments pursuant to <u>Section 2.09(b)</u> through <u>Section 2.09(e)</u> with respect to such Holder's Pro Rata Share of such prepayment. Upon the dates set forth in <u>Section 2.09</u> for the delivery of any such prepayment notice, Issuer shall promptly notify the Agent of the amount that is available to prepay the Notes. Promptly after the date of receipt of such notice, the Agent shall provide written notice (the "**First Offer**") to the Holders of the amount available to prepay the Notes. Any Holder declining such prepayment (a "**Declining Holder**") shall give written notice thereof to the Agent by 10:00 a.m. New York, New York time no later than three (3) Business Days prior to such prepayment date. The Agent shall promptly provide written notice (the "**Second Offer**") to the Holders other than the Declining Holders (such Holders being the "**Accepting Holders**") of the additional amount available (due to such Declining Holders' declining such prepayment) to prepay Notes owing to such Accepting Holders, such available amount to be allocated on a *pro rata* basis among the Accepting Holders that accept the Second Offer. Any Holders declining prepayment pursuant to such Second Offer shall give written notice thereof to the Agent by 10:00 a.m. New York, New York time one (1) Business Day prior to such prepayment date, and Agent shall promptly notify Issuer of the aggregate amount of the prepayment. Amounts remaining after the allocation of accepted amounts with respect to the First Offer and the Second Offer to Accepting Holders shall be retained by Issuer or the relevant Subsidiary for working capital and general corporate purposes, subject to the other covenants contained in this Agreement. For the avoidance of doubt, any Holder or Accepting Holder that does not deliver a notice declining the applicable payment by the dates and times set forth above shall be deemed to have accepted such prepayment offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Redemption Offer</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon the occurrence of the sale of all or substantially all the properties of the Note Parties and their Restricted Subsidiaries, taken as a whole, or a Change in Control, the Issuer shall make an offer to repurchase all the Holders' Notes pursuant to an irrevocable offer ("**Redemption Offer**") on the terms set forth in this <u>Section 2.09(h)</u>; <u>provided</u> that such notice may be conditioned on the consummation of the transactions described in such notice. In the Redemption Offer, Issuer will (A) offer to make a cash payment (a "**Redemption Payment**") equal to the amount that would have been payable with respect to such repurchased Notes had the Issuer prepaid such Notes pursuant to <u>Section 2.08 plus</u>, for the avoidance of doubt, the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or the Prepayment Fee, as applicable, in each case pursuant to <u>Section 2.11(g)</u> and (B) set forth the date for such purchase, which shall be the date when such transaction is consummated, in which case it shall be the next Business Day thereafter (the "**Redemption Purchase Date**"). No less than three (3) Business Days prior to the Redemption Purchase Date, the Issuer will send an irrevocable written notice to each Holder (<u>provided</u> that such notice may be conditioned on the consummation of the transactions described in such notice), with a copy to the Agent, describing the transaction or transactions that constitute the sale of all or substantially all the properties of the Note Parties and their Restricted Subsidiaries, taken as a whole, or a Change of Control (as applicable) and stating:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) that the Redemption Offer is being made pursuant to this <u>Section 2.09(h)</u> and that the Issuer is repurchasing all outstanding Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the purchase price and the Redemption Purchase Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) that, unless the Issuer defaults in the payment of the Redemption Payment, all Notes will cease to accrue interest after the Redemption Purchase Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Issuer will, no later than 12:00 p.m. (New York, New York time) on the Redemption Purchase Date deposit with the Agent an amount equal to the Redemption Payment in respect of all Notes outstanding.

Upon the giving of any such notice, the principal amount of all of the Holders' Notes shall become due and payable on the Redemption Purchase Date (<u>provided</u> that any notice described above may provide that such Redemption Payment is conditioned upon the satisfaction of one or more conditions precedent). Upon receipt of the Redemption Payment from Issuer, the Agent will promptly wire transfer (based on each Holder's wire transfer instructions, which each Holder shall have provided to the Agent (along with completion of Agent's funds transfer requirements) at least five (5) Business Days prior to the Redemption Purchase Date) to each Holder of Notes the Redemption Payment for such Notes. Any Note paid in full will cease to accrue interest on and after the Redemption Purchase Date, unless the Issuer defaults in making the Redemption Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding any provision to the contrary, in lieu of the Issuer making a Redemption Offer (A) a third party may make the Redemption Offer in the manner, at the time and otherwise in compliance with the requirements set forth in <u>Section 2.09(f)</u> hereof applicable to a Redemption Offer made by the Issuer and purchases all Notes outstanding, or (B) in connection with or in contemplation of the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, the Issuer may make an irrevocable offer to purchase (an "**Alternate Offer**") all Notes outstanding at a cash price equal to or higher than the Redemption Payment and purchase all Notes outstanding in accordance with the terms of the Alternate Offer prior to the time when the payment by the Issuer would be required pursuant to a Redemption Offer.

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Notwithstanding anything to the contrary contained herein, a Redemption Offer or Alternate Offer may be made in advance of the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, conditioned upon the consummation of such sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, if a definitive agreement is in place for the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control at the time the Redemption Offer or Alternate Offer is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Agreement, the Issuer will comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations described in this Agreement by virtue thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) For the avoidance of doubt, the Issuer may, at its option, prepay all of the Notes pursuant to the provisions of <u>Section 2.08</u> (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or the Prepayment Fee, as applicable, due thereunder) in lieu of making a Redemption Offer pursuant to this <u>Section 2.09(h)</u>.

**Section 2.10.** <u>Application of Payments</u>. Any payment of any Note made pursuant to <u>Sections 2.07</u>, <u>2.08</u>, or <u>2.09</u> shall be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to each of the Agent and Collateral Agent in their capacities as such and Agent-related Indemnitees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations, constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section 11.03</u> or the other Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes being repaid or prepaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u> resulting from the prepayment of principal under <u>clause (e)</u> below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>fifth</u>, *pro rata* to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Issuer at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>sixth</u>, pro rata to any other Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Issuer or as otherwise required by any Governmental Requirement.

**Section 2.11.** <u>General Provisions Regarding Payments</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments by the Issuer of principal, interest, fees and other Obligations shall be made in Dollars in same day funds without recoupment, setoff, counterclaim or other defense, and delivered to Agent not later than 1:00 p.m. (New York, New York time) on the date due to Agent's Account for the account of the Holders; the Agent shall give the Holders prompt written notice of amounts due, but not received by the Agent, on such due date and at such time. Funds received by Agent after that time on such due date may be deemed by the Requisite Holders to have been paid by the Issuer on the next Business Day for the purposes of calculating interest thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All prepayments in respect of the principal amount of any Note shall be accompanied by payment of accrued interest on the principal amount being repaid or prepaid and other amounts due and payable thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Agent shall promptly distribute by wire transfer to each Holder to the account indicated in writing to Agent by each applicable Holder, such Holder's applicable Pro Rata Share of all payments and prepayments of principal and interest due hereunder, together with all other amounts due thereto, including all fees payable with respect thereto, to the extent received by Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Whenever any payment to be made hereunder shall be stated to be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Agent may, at the direction of the Requisite Holders, deem any payment by or on behalf of the Issuer hereunder that is not made in same day funds prior to 1:00 p.m. (New York, New York time) to be a non-conforming payment. Any such payment may be deemed by the Requisite Holders to have been received by Agent on the later of (i) the time such funds become available funds and (ii) the applicable next Business Day. Interest and fees shall continue to accrue on any principal as to which a non-conforming payment is made until such funds become available funds (but in no event less than the period from the date of such payment to the next succeeding applicable Business Day) at the applicable rate determined pursuant to <u>Section 2.06(a)</u> from the date such amount was due and payable until the date such amount is paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If an Event of Default shall have occurred and not otherwise been waived, all payments or proceeds received by Agent hereunder in respect of any of the Obligations shall be applied <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Agent, the Collateral Agent and Agent-related Indemnitees (including any costs and expenses related to foreclosure or realization upon, or protecting, Collateral) in its capacity as such, <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section 11.03</u> or the other Note Documents, <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes, <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u> resulting from the prepayment of principal under clause fifth below), <u>fifth</u>, pro rata to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Issuer at such time, <u>sixth</u>, pro rata to any other Obligations, and <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Issuer or as otherwise required by any Governmental Requirement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Make-Whole Amount; Prepayment Fee</u>. Upon any prepayment of the Notes (except for any prepayment made pursuant to <u>Section 2.07</u> or <u>Section 2.09(a)</u> or <u>Section 2.09(b)</u> or <u>Section 2.09(e)</u>), whether such prepayment occurs as a result of an acceleration of the Notes pursuant to <u>Section 9.01</u> (whether automatic or optional acceleration) following an Event of Default, at the Issuer's option or otherwise), the Issuer shall make an additional payment to the Agent for the account of the Holders in an aggregate amount equal to (i) if such prepayment or acceleration occurs on or prior to June 23, 2027 (the "Make-Whole Expiry Date"), the Make-Whole Amount determined for the Settlement Date with respect to such principal amount <u>plus</u> 2.0% of the principal of such prepaid or accelerated amount <u>plus</u> any accrued and unpaid interest and other amounts due and payable thereon or (ii) if such prepayment or acceleration occurs thereafter, a fee (the "Prepayment Fee"), in an amount equal to the product of (A) if such prepayment or acceleration occurs following the Make-Whole Expiry Date and on or prior to June 23, 2028, 2.00% of the principal of such prepaid or accelerated amount and (B) if such prepayment occurs after June 23, 2028, 0.00% of such prepaid or accelerated amount, <u>plus</u>, in each case for clause (ii), any accrued and unpaid interest and other amounts due and payable thereon. The Agent shall have no obligation to calculate or verify the calculations of the Make-Whole Amount or Prepayment Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Presentment of the Notes by the Holder is not a condition to receipt of payment on the Maturity Date or any earlier redemption.

Section 2.12. <u>Ratable Sharing</u>. The Holders hereby agree among themselves that if any of them shall, whether by voluntary payment (other than a voluntary prepayment of Notes purchased and applied in accordance with the terms hereof), through the exercise of any right of set off or banker's lien, by counterclaim or cross action or by the enforcement of any right under the Note Documents or otherwise, or as adequate protection of a deposit treated as cash collateral under the Code, receive payment or reduction of a proportion of the aggregate amount of principal, interest, fees and other amounts then due and owing to such Holder hereunder or under the other Note Documents (collectively, the "Aggregate Amounts Due" to such Holder) which is greater than the proportion received by any other Holder in respect of the Aggregate Amounts Due to such other Holder, then the Holder receiving such proportionately greater payment shall (a) notify Agent and each other Holder of the receipt of such payment and (b) apply a portion of such payment to purchase Notes (which it shall be deemed to have purchased from each seller of a Note simultaneously upon the receipt by such seller of its portion of such payment) in the ratable Aggregate Amounts Due to the other Holders so that all such recoveries of Aggregate Amounts Due shall be shared by all Holders in proportion to the Aggregate Amounts Due to them; <u>provided</u> that, if all or part of such proportionately greater payment received by such purchasing Holder is thereafter recovered from such Holder upon the bankruptcy or reorganization of the Issuer or otherwise, those purchases to that extent shall be rescinded and the purchase prices paid for such Notes shall be returned to such purchasing Holder ratably to the extent of such recovery, but without interest. The Issuer expressly consents to the foregoing arrangement and agrees (i) that any Holder of a Note so purchased may exercise any and all rights of banker's lien, set off or counterclaim with respect to any and all monies owing by the Issuer to that Holder with respect thereto as fully as if that Holder were owed the amount of the Note held by that Holder and (ii) to the extent it may effectively do so under applicable law, that any Holder acquiring a participation pursuant to the foregoing arrangements may exercise against the Issuer rights of setoff and counterclaim with respect to such participation as fully as if such Holder were a direct creditor of the Issuer in the amount of such participation. The provisions of this <u>Section 2.12</u> shall not be construed to apply to (A) any payment made by the Issuer pursuant to and in accordance with the express terms of this Agreement, or (B) any payment obtained by a Holder as consideration for the assignment of or sale of a participation in any of its Notes or Obligations to any assignee or participant, other than to the Issuer or any Subsidiary thereof (as to which the provisions of this <u>Section 2.12</u> shall apply).

**Section 2.13.** <u>Increased Costs</u>. Subject to the provisions of <u>Section 2.14</u> (which shall be controlling with respect to the matters covered thereby), in the event that any Holder or the Agent shall determine (which determination shall, absent manifest error, be final and conclusive and binding upon all

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parties hereto) that any Governmental Requirement, or any change therein or in the interpretation, administration or application thereof (including the introduction of any new law, treaty or governmental rule, regulation or order), or any determination of a court or Governmental Authority, in each case that becomes effective after the date hereof, or compliance by such Holder or the Agent with any guideline, request or directive issued or made after the date hereof by any central bank or other Governmental Authority or quasi-Governmental Authority (whether or not having the force of law): (a) subjects such Holder (or its Applicable Office) or the Agent to any additional Tax (excluding any Indemnified Tax, any Connection Income Tax and any Excluded Tax (other than a tax described in clause (a) of Tax on the Overall Net Income)) with respect to this Agreement or any of the other Note Documents or any of its obligations hereunder or thereunder or any payments to such Holder (or its Applicable Office) or the Agent of principal, interest, fees or any other amount payable hereunder or its deposits, reserves or capital attributable thereto; (b) imposes, modifies or holds applicable any reserve (including any marginal, emergency, supplemental, special or other reserve), special deposit, compulsory loan, FDIC insurance or similar requirement against assets held by, or deposits or other liabilities in or for the account of, or advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of such Holder or (c) imposes any other condition (other than with respect to a Tax matter) on or affecting such Holder (or its Applicable Office) or its obligations hereunder; and the result of any of the foregoing is to increase the cost to such Holder or the Agent of agreeing to purchase, purchasing or maintaining Notes hereunder or to reduce any amount received or receivable by such Holder (or its Applicable Office) or the Agent with respect thereto; then, in any such case, Issuer shall promptly pay to such Holder or the Agent, upon receipt of the statement referred to in the next sentence, such additional amount or amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise as such Holder shall reasonably determine) as may be necessary to compensate such Holder or the Agent for any such increased cost or reduction in amounts received or receivable hereunder. Such Holder or the Agent shall deliver to Issuer (and in the case of such Holder, with a copy to Agent) a written statement, setting forth in reasonable detail the basis for calculating the additional amounts owed to such Holder or the Agent under this <u>Section 2.13</u>, which statement shall be conclusive and binding upon all parties hereto absent manifest error; <u>provided</u> that the Issuer shall not be required to compensate such Holder pursuant to this <u>Section 2.13</u> for any increased costs or reductions incurred more than three hundred sixty-five (365) days prior to the date that such Holder delivers written notice to the Issuer pursuant to this <u>Section 2.13</u> setting forth such Holder's intention to claim compensation therefor; <u>provided</u>, <u>further</u>, that if the circumstances giving rise to such increased costs or reductions is retroactive, then the 365-day period referred to above shall be extended to include the period of retroactive effect thereof.

**Section 2.14.** <u>Taxes; Withholding, etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payments to Be Free and Clear</u>. All sums payable by or on account of any Note Party hereunder and under the other Note Documents shall (except to the extent otherwise required by law) be paid free and clear of, and without any deduction or withholding on account of, any Tax imposed, levied, collected, withheld or assessed by any Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Withholding of Taxes</u>. If any Withholding Agent is required by law (as determined in the good faith discretion of the applicable Withholding Agent) to make any deduction or withholding for or on account of any Tax from any sum paid or payable under any of the Note Documents: (i) the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay (or cause to be paid) any such Tax to the relevant Governmental Authority and (ii) if such Tax is an Indemnified Tax, the sum payable by such Note Party in respect of which the relevant deduction or withholding is required shall be increased to the extent necessary to ensure that after any such deduction or withholding of Indemnified Taxes (including such deductions and withholdings applicable to additional sums payable under this Section), the Agent or such Holder, as the case may be, and each of

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their Tax Related Persons, receives on the due date a net sum equal to what it would have received had no such deduction or withholding of Indemnified Taxes been required; <u>provided</u> that, for the avoidance of doubt, no such additional amount shall be required to be paid to any Holder or the Agent (including any of their Tax Related Persons) under <u>clause (ii)</u> above for, and Indemnified Taxes shall not include, any of the following Taxes, (A) in the case of the Agent or Holder (including any of their Tax Related Persons), any U.S. federal withholding Tax in effect and applicable (x) as of the date on which Agent or Holder becomes a party to this Agreement (except to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder's assignor (including to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder's assignor's Tax Related Persons) immediately before such Holder became a party to this Agreement), and (y) in the case of a new Tax Related Person that becomes a Tax Related Person of an existing Holder after the relevant date described in <u>(x)</u>, above, the date on which such new Tax Related Person becomes a Tax Related Person (except to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such existing Holder described in (x), above, (including to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such existing Holder's existing Tax Related Persons but only to the extent that such new Tax Related Person acquires the interests of such existing Tax Related Person) immediately before such new Tax Related Person became a Tax Related Person of such existing Holder), or (z) the date on which such Holder changes its Applicable Office (except to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder (including to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder's Tax Related Persons) immediately before it changed its Applicable Office), (B) any Tax on the Overall Net Income of the Holder or Agent (or any of their Tax Related Persons), (C) any U.S. Tax imposed under FATCA or (D) any Tax attributable to the Holder's or the Agent's failure to comply with <u>Section 2.14(e)</u> (all such amounts described in this proviso, "**Excluded Taxes**"). The Note Parties shall deliver to Agent official receipts (or certified copies of the receipts) or other evidence of such payment reasonably satisfactory to the Requisite Holders in respect of any Taxes payable hereunder within thirty (30) days after payment of such Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Taxes</u>. In addition, and without duplication, the Note Parties shall pay all Other Taxes to the relevant Governmental Authorities in accordance with applicable law. The Note Parties shall deliver to Agent official receipts (or certified copies of the receipts) or other evidence of such payment reasonably satisfactory to the Requisite Holders in respect of Other Taxes payable hereunder as soon as practicable after payment of such Taxes or Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification</u>. Without duplication of any Taxes covered by <u>Sections 2.14(b)</u> or <u>(c)</u>, the Note Parties shall indemnify the Agent and each Holder, within ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this <u>Section 2.14</u>) paid or incurred by the Agent or such Holder or their respective Tax Related Persons, as the case may be, relating to, arising out of, or in connection with any Note Document or any payment or transaction contemplated hereby or thereby, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority and all reasonable expenses and costs arising therefrom or with respect thereto. A certificate as to the amount of such payment or liability delivered to the Issuer by a Holder (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Holder, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Administrative Requirements; Forms Provision</u>. Each Holder that is a United States Person for U.S. federal income tax purposes shall deliver to the Issuer and the Agent, on or prior to the Closing Date (in the case of each Holder listed on the signature pages hereof on the Closing Date) or on or prior to the date of the Assignment Agreement pursuant to which it becomes a Holder (in the case of each other Holder), and at such other times as may be necessary in the determination of the Issuer or Agent (each in the reasonable exercise of its discretion), two executed copies of Internal Revenue Service ("**IRS**") Form W-9 certifying that such Holder is exempt from U.S. federal backup withholding Tax.

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Each Holder that is not a United States Person for U.S. federal income tax purposes (a "Non-U.S. Holder") shall, to the extent it is legally entitled to do so, deliver to the Issuer and the Agent (in such number of copies as shall be requested by the recipient), on or prior to the Closing Date (in the case of each Holder listed on the signature pages hereof on the Closing Date) or on or prior to the date of the Assignment Agreement pursuant to which it becomes a Holder (in the case of each other Holder), and at such other times as may be reasonably requested by the Issuer or Agent (each in the reasonable exercise of its discretion), whichever of the following described in <u>clauses (i)</u> through <u>(v)</u> below is applicable, accurately completed and in a manner reasonably acceptable to the Issuer and the Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Non-U.S. Holder claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Note Document, two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty, and (y) with respect to any other applicable payments under any Note Document, two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) two executed copies of IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of a Non-U.S. Holder claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Internal Revenue Code, (A) a certificate substantially in the form of <u>Exhibit I-1</u> to the effect that such Non-U.S. Holder is not a "bank" within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, a "10 percent shareholder" of the Issuer within the meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Internal Revenue Code (a "**U.S. Tax Compliance Certificate**") and (B) two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to the extent a Non-U.S. Holder is not the beneficial owner of a Note, two executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit I-2</u> or <u>Exhibit I-3</u>, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u> that if the Non-U.S. Holder is a partnership and one or more direct or indirect partners of such Non-U.S. Holder are eligible to claim the portfolio interest exemption, such Non-U.S. Holder shall provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit I-4</u> on behalf of each such direct and indirect partner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Non-U.S. Holder shall deliver to the Issuer and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Non-U.S. Holder becomes a Holder under this Agreement (and from time to time thereafter upon the reasonable request of the Issuer or the Agent), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Issuer or the Agent to determine the withholding or deduction required to be made; <u>provided</u>, <u>however</u>, notwithstanding anything to the contrary in this <u>Section 2.14(e)</u>, the completion, execution and submission of the documentation described in this <u>clause</u> (v) shall not be required if in the Holder's reasonable judgment such completion, execution of submission would subject such Holder to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Holder.

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Each Holder required to deliver any forms, certificates or other evidence with respect to U.S. federal income tax withholding matters pursuant to this <u>Section 2.14(e)</u> and <u>Section 2.14(f)</u> hereby agrees, from time to time after the initial delivery by such Holder of such forms, certificates or other evidence, whenever a lapse in time or change in circumstances renders such forms certificates or other evidence obsolete or inaccurate in any respect, that such Holder shall promptly deliver to Agent and the Issuer two new executed copies of IRS Form W-8BEN, IRS Form W-8BEN-E, IRS Form W-8IMY or IRS Form W-8ECI (or any successor form(s) of any of the foregoing), and as applicable, a U.S. Tax Compliance Certificate properly completed and duly executed by such Holder, and such other documentation required under the Internal Revenue Code and reasonably requested by Agent or the Issuer to confirm or establish that such Holder is not subject to deduction or withholding of U.S. federal income Tax with respect to payments to such Holder under the Note Documents or is subject to deduction or withholding at a reduced rate, or notify Agent and the Issuer of its inability to deliver any such forms, certificates or other evidence. Notwithstanding anything to the contrary in this <u>Section 2.14(e)</u>, the completion, execution and submission of such documentation (other than such documentation set forth in clauses (i)-(iv) of this <u>Section 2.14(e)</u>) shall not be required if in the Holder's reasonable judgment such completion, execution or submission would subject such Holder to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Holder. On or before the Closing Date, (or in the case of a successor or replacement Agent, on or before the date on which such successor or replacement Agent becomes a party to this Agreement), U.S. Bank Trust Company, National Association (or such successor or replacement Agent), shall deliver to the Issuer two executed copies of IRS Form W-9 establishing that the Issuer can make payments to the Agents without deduction or withholding of any Taxes imposed by the United States, including Taxes imposed under FATCA. Each Holder and Agent agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Issuer and the Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If a payment made to a Holder under any Note Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Holder were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Holder shall deliver to the Issuer and the Agent at the time or times prescribed by law and at such time or times reasonably requested by the Issuer or the Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Issuer or the Agent as may be necessary for the Issuer and the Agent to comply with their obligations under FATCA and to determine that such Holder has complied with such Holder's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this <u>Section 2.14(f)</u>, "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

Each Holder agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Issuer and the Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Defined Term</u>. For purposes of this Section, the term "applicable law" includes FATCA.

**Section 2.15.** <u>Alternate Rate of Interest</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If prior to the commencement of any Interest Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Term SOFR Reference Rate for such Interest Period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Agent is advised by the Requisite Holders that Term SOFR Reference Rate for such Interest Period will not adequately and fairly reflect the cost to such Holders (or Holder) of its purchasing or maintaining their Notes (or its Note) for such Interest Period;

then the Agent shall give notice thereof to the Issuer and the Holders by written or electronic notice as promptly as practicable thereafter and, until the Agent notifies the Issuer and the Holders that the circumstances giving rise to such notice no longer exist, (A) any Notes requested to be issued and purchased on the first day of such Interest Period shall be issued and purchased as ABR Notes and (B) any outstanding Notes shall be converted, on the last day of the then-current Interest Period, to ABR Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any time (i) the Requisite Holders determine (which determination shall be conclusive and binding absent manifest error) that the circumstances set forth in <u>clause (a)</u> have arisen and such circumstances are unlikely to be temporary or (ii) the Requisite Holders determine (which determination shall be conclusive and binding absent manifest error) that the circumstances set forth in <u>clause (a)</u> have not arisen but either (w) the CME Term SOFR Administrator has made a public statement or published information that the CME Term SOFR Administrator has ceased or is insolvent (and there is no successor administrator that will continue publication of the Term SOFR Reference Rate), (x) the CME Term SOFR Administrator has made a public statement or has published information (or a public statement or information is published on its behalf) which states that Term SOFR Reference Rate will permanently or indefinitely cease to be published by it (and there is no successor administrator that will continue publication of the Term SOFR Reference Rate), (y) the supervisor for the CME Term SOFR Administrator, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the CME Term SOFR Administrator, a resolution authority with jurisdiction over the CME Term SOFR Administrator or a court or an entity with similar insolvency or resolution authority over the CME Term SOFR Administrator has made a public statement or has published information which states that the CME Term SOFR Administrator has ceased or is insolvent or the Term SOFR Reference Rate will permanently or indefinitely cease to be published or (z) the supervisor for CME Term SOFR Administrator or a Governmental Authority has made a public statement identifying or has published information which states that the Term SOFR Reference Rate is no longer representative or the Term SOFR Reference Rate may no longer be used for determining interest rates for notes or other comparable debt instruments, then the Requisite Holders and the Issuer (in consultation with the Agent) shall endeavor to establish an alternate rate of interest as a replacement to the Term SOFR Reference Rate that gives due consideration to the then prevailing or evolving market convention for determining a rate of interest for notes or other comparable debt instruments in the United States at such time and ensuring that Agent will be able to administer such alternate rate of interest, and the Requisite Holders, the Issuer and the Agent shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable; <u>provided</u> that the Requisite Holders and the Issuer shall use commercially reasonable efforts to ensure that such replacement meets the standards set forth under Section 1.1001-6 of the Proposed United States Treasury Regulations (or any successor Untied States Treasury Regulations or other official IRS guidance promulgated that supersedes such Proposed United States Treasury Regulations) so as not to be treated as a "modification" (and therefore an exchange) of any Notes for purposes of Section 1.1001-3 of the United States Treasury Regulations. For the avoidance of doubt, any minimum rate of interest applicable to the Term SOFR Reference Rate hereunder shall also apply to such alternate rate of interest unless otherwise agreed by the

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Requisite Holders. The Agent and Requisite Holders do not warrant or accept responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the rates in the definition of "Term SOFR Reference Rate" or with respect to any rate that is an alternative or replacement for or successor to any such rate (including, without limitation, any such alternate rate of interest established under this <u>Section 2.15(b)</u>, whether the composition or characteristics of any such alternative, successor or replacement interest rate will be similar to, or produce the same value or economic equivalence of, the existing interest rate being replaced or have the same volume or liquidity as did any existing interest rate prior to its discontinuance or unavailability) or the effect of any of the foregoing, or of any other related conforming changes to this Agreement. The Agent and Requisite Holders may select information sources or services in their reasonable discretion to ascertain any interest rate used in this Agreement, any component thereof, or rates referenced in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to the Issuer (and, in the case of Agent, any Holder) or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for selection of such source or service or for any error or calculation of any such rate (or component thereof) provided by any such information source or service. Until an alternate rate of interest shall be determined in accordance with this <u>clause (b)</u>, (x) any Notes requested to be issued and purchased shall be issued and purchased as ABR Notes and (y) any outstanding Notes shall be converted, on the last day of the then-current Interest Period, to ABR Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither Agent shall be under any obligation (i) to monitor, determine or verify the unavailability or cessation of the Term SOFR Rate (or other applicable benchmark rate), or whether or when there has occurred, or to give notice to any other transaction party of the occurrence of, any event or date on which the benchmark shall have transitioned or may no longer be available, (ii) to select, determine or designate any alternative, successor or replacement benchmark index, or whether any conditions to the designation of such a rate have been satisfied, (iii) to select, determine or designate any adjustment to the benchmark or the adjustment spread, or other modifier to any replacement or successor index or (iv) to determine whether or what changes are necessary or advisable, if any, in connection with any of the foregoing. Neither Agent shall be liable for any inability, failure or delay on its part to perform any of its duties set forth in this Agreement as a result of the unavailability of the Term SOFR Rate (or other applicable benchmark rate) and absence of a designated replacement benchmark rate, including as a result of any inability, delay, error or inaccuracy on the part of any other transaction party, including without limitation the Requisite Holders, in providing any direction, instruction, notice or information required or contemplated by the terms of this Agreement and reasonably required for the performance of such duties.

**Section 2.16.** Incremental Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms of Section 2.16(b), the Issuer may from time to time request Incremental Commitments, <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Prior to implementing any new Incremental Commitments, the Issuer shall have provided a written notice to the Agent and the then-existing Holders (such notice, the "<u>Incremental Notes Notice</u>"), specifying the amount of Incremental Commitments being requested (the "<u>Incremental Target Amount</u>"), such amount not to exceed $100,000,000 in aggregate outstanding principal amount during the term of this Agreement (the "<u>Incremental Cap</u>") (it being understood that $100,000,000 of the Incremental Cap has been used by the Second Amendment Incremental Notes);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) following receipt of the Incremental Notes Notice, then-existing Holders at such time may, within thirty (30) days of receipt by the Agent and such Holders of the Incremental Notes Notice (the "<u>Offer Deadline</u>"), deliver to the Issuer a written offer to provide the Incremental Commitments (the "<u>Incremental Notes Offer</u>"; the Holders providing the Incremental Notes Offer, "<u>Electing Holders</u>"), subject to <u>Section 2.16(a)(vi)</u> and <u>Section 2.16(b)</u>, in accordance with the terms and procedures set forth in this <u>Section 2.16</u>, which Incremental Notes Offer shall detail the economic and other material terms of the proposed Incremental Notes, including principal amount, amortization, call protection, maturity date, pricing and any other such term deemed material by such then-existing Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) following receipt of the Incremental Notes Offer, the Issuer may, within five (5) Business Days of receipt of such Incremental Notes Offer, accept or decline such Incremental Notes Offer, subject to the terms and conditions contained herein (<u>provided</u>, that, if the Issuer does not respond to such Incremental Notes Offer within such five (5) Business Day period, the Issuer shall be deemed to have declined such Incremental Notes Offer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if the Issuer accepts such Incremental Notes Offer, then the Issuer and the Electing Holders shall use commercially reasonable efforts to consummate the transaction set forth in the Incremental Notes Offer in accordance with the terms thereof and this <u>Section 2.16</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any then-existing Holder at such time not responding to the Incremental Notes Notice prior to the Offer Deadline shall be deemed to have declined to provide Incremental Commitments and if any then-existing Holder declines to provide Incremental Commitments by an amount equal to such Holder's Pro Rata Share of such requested amount, any Holder electing to provide Incremental Commitments may elect to increase its Incremental Commitment by an amount equal to such then-existing Holder's Pro Rata Share of the aggregate declined portion of such requested increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) for the avoidance of doubt, the Issuer shall not be obligated to accept any Incremental Notes Offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Incremental Commitments and Incremental Notes shall be subject to the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate stated principal amount of such Incremental Notes ("<u>Incremental Indebtedness</u>") shall not exceed $35,000,000 and shall be in a minimum amount of $5,000,000 (<u>provided</u> that such amount may be less than $5,000,000 if such amount represents all remaining availability under the limit set forth in this <u>clause (i)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any such Incremental Indebtedness (A) shall rank pari passu in right of payment and security with, and have the benefit of the same or equivalent guarantees as, the Note Obligations in respect of the other Notes then outstanding, (B) for purposes of prepayments, shall be treated the same as the Initial Notes then outstanding, and (C) shall have the same terms as the Initial Notes then outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no Incremental Indebtedness shall have a final maturity date earlier than the then Maturity Date or a Weighted Average Life to Maturity shorter than the latest Weighted Average Life to Maturity of the Initial Notes then outstanding;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) as of the date of incurring such Incremental Indebtedness, after giving effect to the application of the proceeds thereof, the Note Parties and their respective Subsidiaries (on a consolidated basis) shall be Solvent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the satisfaction or waiver by the Holders providing such Incremental Indebtedness on or prior to the date of the incurrence of such Incremental Indebtedness of each of the conditions precedent set forth in <u>Section 3.02</u>.

**ARTICLE III** 

**CONDITIONS PRECEDENT** 

**Section 3.01**. <u>Closing Date</u>. The obligation of each Holder to purchase Notes on the Closing Date is subject to the satisfaction, or waiver in accordance with <u>Section 11.06</u>, of the following conditions on or before the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Note Documents</u>. Subject to <u>Section 6.19</u>, each Holder and the Agents shall have received sufficient copies of each Note Document executed and delivered by each Note Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organizational Documents; Incumbency</u>. Each Holder and Agent shall have received (i) sufficient copies of each Organizational Document of the Issuer, and of each other Note Party, certified as of a recent date by the appropriate Governmental Authority, for each Holder, each dated the Closing Date or a recent date prior thereto; (ii) signature and incumbency certificates of the officers of the Issuer and of each other Note Party executing the Note Documents; (iii) resolutions of the Board of Directors, the manager(s) or member(s) or similar Governing Body of the Issuer and of each other Note Party approving and authorizing the execution, delivery and performance of this Agreement, the other Note Documents to which it is a party, certified as of the Closing Date by a Responsible Officer as being in full force and effect without modification or amendment; and (iv) a good standing certificate for the Issuer and each other Note Party from the applicable Governmental Authority in such Person's jurisdiction of incorporation, organization or formation and in each jurisdiction in which such Person is qualified as a foreign corporation or other entity to do business, each dated a recent date prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Consents</u>. Each of the Issuer, each other Note Party and their Subsidiaries shall have obtained all authorizations, consents and permits from any Governmental Authority and all consents of other Persons, in each case that are necessary or reasonably deemed by Agent and the Requisite Holders to be advisable in connection with the Transactions and each of the foregoing shall be in full force and effect and in form and substance reasonably satisfactory to Agent and the Requisite Holders. All applicable waiting periods shall have expired without any action being taken or threatened by any competent authority that would restrain, prevent or otherwise impose adverse conditions on the Transactions and no action, request for stay, petition for review or rehearing, reconsideration, or appeal with respect to any of the foregoing shall be pending, and the time for any applicable agency to take action to set aside its consent on its own motion shall have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Purchase Date</u>. The date of purchase of the Notes shall be a Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Initial Reserve Report; Acquired Assets Reserve Report; Title to Oil and Gas Properties</u>. The Agent and the Requisite Holders shall have received (i) the Initial Reserve Report, (ii) the Acquired Assets Reserve Report and (iii) title information (including usual and customary title opinions, title reports and landman certificates in the Issuer's possession or generated by the Issuer for the Agent and Requisite Holders) setting forth the status of title to at least 90% of PV-10 of the Oil and Gas Properties in the Acquired Assets Reserve Report and the Initial Reserve Report, on a consolidated basis, consistent with usual and customary standards for the geographic regions in which such Oil and Gas Properties are located.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Real Property Collateral</u>. Subject to <u>Section 6.19</u>, the Agents and the Requisite Holders shall have received a Mortgage encumbering each Mortgaged Property in favor of the Collateral Agent, duly executed and acknowledged by each Note Party that is the owner of or holder of any interest in such Mortgaged Property, and otherwise in form for recording in the recording office of each applicable jurisdiction where each such Mortgaged Property is deemed located and that will, when properly recorded (or when the applicable financing statements related thereto are properly filed or such other actions needed to perfect are taken) create a valid, perfected first priority security interest (after giving effect to Excepted Liens identified in <u>clauses (a)</u> through <u>(d)</u> and <u>(f)</u> of the definition thereof, but subject to the provisos at the end of such definition) on at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the Acquired Assets Reserve Report and the Initial Reserve Report, on a consolidated basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Personal Property Collateral</u>. In order to create in favor of the Collateral Agent, for the benefit of the Holders a valid, perfected first priority security interest in all personal property Collateral of the Note Parties, the Agents shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) evidence reasonably satisfactory to Agents and the Requisite Holders of the compliance by each Note Party with its respective obligations under the Collateral Documents to which it is party (including its obligation to deliver UCC financing statements, originals of securities, instruments and chattel paper); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) the results of a recent search, by a Person satisfactory to the Requisite Holders, of all effective UCC financing statements made with respect to any personal or mixed property of the Issuer and each Note Party in the applicable jurisdictions, together with copies of all such filings disclosed by such search that will not be terminated on the Closing Date and (B) UCC termination statements for filing in all applicable jurisdictions as may be necessary to terminate any effective UCC financing statements disclosed in such search that do not constitute Liens permitted under <u>Section 7.03</u> or Excepted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Evidence of Insurance</u>. The Holders shall have received evidence satisfactory to them in their reasonable discretion that all insurance required to be maintained pursuant to <u>Section 6.06</u> is in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Evidence of Swap Agreements</u>. The Holders shall have received evidence satisfactory to them in their reasonable discretion that all Swap Agreements required to be maintained pursuant to <u>Section 6.20</u> are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Opinions of Counsel to Note Parties</u>. Agents and the Holders shall have received executed copies of the favorable written opinions of (i) Weil Gotshal & Manges LLP, counsel for the Issuer and the Note Parties and (ii) to the extent any Mortgages are delivered on the Closing Date, Steptoe & Johnson PLLC and Liskow & Lewis, APLC, as applicable, each as local counsel for the Issuer and the Note Parties, in each case dated as of the Closing Date and in form and substance reasonably satisfactory to the Agent and Requisite Holders (and the Issuer and each Note Party hereby instructs such counsel to deliver such opinions to Agents on behalf of the Holders).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Expenses</u>. The Issuer shall have paid to Agents and the Holders all amounts (invoiced at least two (2) Business Days prior to the Closing Date (or such shorter time reasonably acceptable to the Issuer) with reasonable detail) required to be paid pursuant to <u>Section 11.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Solvency Certificate</u>. On the Closing Date, Agent shall have received a Solvency Certificate from a Financial Officer substantially in the form of <u>Exhibit E</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Closing Date Certificate</u>. The Issuer shall have delivered to Agent and the Holders an executed Closing Date Certificate, together with all attachments thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>[Reserved].</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>[Reserved].</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>No Material Adverse Effect</u>. Since December 31, 2023, no event, change or condition shall have occurred that has caused or could reasonably be expected to result in, either individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Funds Flow</u>. Agent shall have received at least one (1) Business Day prior to the Closing Date the Flow of Funds, in form and substance reasonably satisfactory to the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Initial Note Purchase Notice</u>. Agent shall have received a fully-executed Note Purchase Notice at least seven (7) Business Days prior to the Closing Date (or such earlier date as the Holders may agree in their sole discretion (by notice to the Agent)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Other Debt; Payoff of Existing Credit Facility</u>. (i) The Requisite Holders shall be satisfied that the Note Parties and their Subsidiaries have no outstanding Debt except for Debt permitted pursuant to <u>Section 7.02(b)</u> and the Note Parties shall not be in default with respect to such Debt and (ii) the Holders shall have received (A) a duly executed payoff letter, in form and substance reasonably satisfactory to Holders, with respect to the Existing Credit Facility which shall set forth the amount necessary to repay all Indebtedness and discharge all obligations, in each case, under the Existing Credit Facility and (B) evidence reasonably acceptable to the Holders that all Liens and guarantees under the Existing Credit Facility shall have been released (including, without limitation, the Holder's receipt of lien release documents and UCC termination statements in connection therewith) (or substantially concurrently with the funding of the Notes on the Closing Date shall be released).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Financial Statements</u>. The Holders shall have received an unaudited consolidated pro forma balance sheet of the Issuer and its Consolidated Subsidiaries as of the Closing Date (giving effect to the Transactions on the Closing Date) (collectively, the "**Initial Financial Statements**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Lease Operating Statements</u>. The Holders shall have received monthly production and accounting lease operating statements for each calendar month for each of the Fiscal Quarters ended after June 30, 2024 and at least forty-five (45) days prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Fees</u>. The Issuer shall have paid any other amounts owed under and as set forth in the Fee Letter and the Agent Fee Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>No Default or Event of Default; Representations and Warranties</u>. On the Closing Date after giving effect to the Transactions, (i) no Default or Event of Default shall have occurred and be continuing, and (ii) all representations and warranties made by the Note Parties contained herein or in the other Note Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the Closing Date (except where such

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representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Know Your Customer</u>. Agents and the Holders shall have received, at least five (5) Business Days (or such shorter period as the Agents may agree) prior to the Closing Date, all documentation and other information required by regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including, without limitation, the USA PATRIOT Act and, to the extent the Issuer qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to the Issuer, that has been reasonably requested by Holders in writing to the Issuer at least ten (10) Business Days prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Specified Acquisition Agreement</u>. The Agent and the Holders shall have received a certificate from a Financial Officer of the Issuer dated as of the Closing Date certifying (i) that attached thereto is a true and correct fully-executed copy of the Specified Acquisition Agreement (including all amendments, exhibits and schedules thereto) and (ii) the Specified Acquisition has been consummated in accordance with its terms substantially concurrently with the purchase of the Notes under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Unrestricted Cash</u>. As of the Closing Date, the Issuer and its Restricted Subsidiaries shall have Unrestricted Cash in an amount equal to or greater than $3,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Officer's Certificate</u>. The Issuer shall have delivered to Agent and the Holders a certificate of a Financial Officer of the Issuer certifying as to matters set forth in <u>Section 3.01(c)</u>, <u>Section 3.01(o)</u>, <u>Section 3.01(p)</u>, <u>Section 3.01(q)</u>, <u>Section 3.01(x)</u> and <u>Section 3.01(aa)</u>.

Agent (at the direction of the Requisite Holders) shall notify the Issuer and the Holders of the Closing Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Holders to purchase Notes hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to <u>Section 11.06</u>) at or prior to 5:00 p.m., New York, New York time, on September 17, 2024 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

Without limiting the generality of the provisions of <u>Section 10.03</u>, for purposes of determining compliance with the conditions specified in this <u>Section 3.01</u>, each Holder as of the Closing Date shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required hereunder to be consented to or approved by or acceptable or satisfactory to a Holder unless the Agent shall have received written notice from such Holder prior to the Closing Date specifying its objection thereto.

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**ARTICLE IV** 

**REPRESENTATIONS AND WARRANTIES** 

In order to induce the Agents and Holders to enter into this Agreement and induce the Holders to purchase their respective Notes, the Note Parties represent and warrant to the Agents and each Holder the following:

**Section 4.01.** <u>Organization; Powers</u>. Each of the Note Parties and their Restricted Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority, and has all material governmental licenses, authorizations, consents and approvals necessary, to own its assets and to carry on its business as now conducted, and is qualified to do business in, and is in good standing (if applicable) in, every jurisdiction where such qualification is required by Governmental Requirement, except where failure to have such licenses, authorizations, consents, approvals or qualifications could not reasonably be expected to have a Material Adverse Effect.

**Section 4.02.** <u>Authority; Enforceability</u>. The Transactions are within the Note Party's and each Restricted Subsidiary's corporate, limited liability company or partnership powers and have been duly authorized by all necessary corporate, limited liability company or partnership action, as applicable, and, if required, stockholder, member or manager action (including, without limitation, any action required to be taken by any class of directors or managers of the Note Parties or any other Person, whether interested or disinterested, in order to ensure the due authorization of the Transactions). Each Note Document to which each Note Party and each Restricted Subsidiary is a party has been duly executed and delivered by the Note Party and such Restricted Subsidiary and constitutes a legal, valid and binding obligation of the Note Party and such Restricted Subsidiary, as applicable, each enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

**Section 4.04.** <u>Financial Condition; No Material Adverse Effect</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Since the December 31, 2023, there has been no event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the Note Parties nor any Restricted Subsidiary has on the Closing Date any Material Debt (including Disqualified Capital Stock) or any contingent liabilities, off-balance sheet liabilities or partnerships, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments.

**Section 4.05.** <u>Litigation</u>. There are no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Issuer, threatened in writing against the Note Parties or any Restricted Subsidiary which are not fully covered by insurance (except for customary deductibles) (i) which individually or in the aggregate, if adversely determined, could reasonably be expected to result in liability exceeding $2,500,000, or (ii) that involve any Note Document or the Transactions. None of the Note Parties or any of their Restricted Subsidiaries is in violation of any order, writ, injunction or any decree of any Governmental Authority which individually or in the aggregate, if adversely determined, could reasonably be expected to result in liability exceeding $2,500,000.

**Section 4.06.** <u>Environmental Matters</u>. Except for such matters that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties and their Restricted Subsidiaries and each of their respective Properties and respective operations thereon are and have been in compliance with all applicable Environmental Laws; and none of the Note Parties and their Restricted Subsidiaries has received notice of, any conditions, events, or incidents in connection with any such Properties that would reasonably be expected to interfere with or prevent such compliance or continued compliance with Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties and their Restricted Subsidiaries have obtained all Environmental Permits required for their respective operations and respective ownership of their Properties, with all such Environmental Permits being currently in full force and effect, and none of Note Parties or their Restricted Subsidiaries has received any written notice or otherwise has knowledge that any such existing Environmental Permit will be revoked or that any application for any new Environmental Permit or renewal of any existing Environmental Permit will be protested or denied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no Environmental Claims or other claims, demands, suits, orders, inquiries or proceedings concerning any violation of, or liability (including as a potentially responsible party) under, any applicable Environmental Laws pending or, to the Issuer's knowledge, threatened against the Note Parties or any Subsidiary or, to the Issuer's knowledge, any of their respective Properties or as a result of any operations at such Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) None of the Properties of the Note Parties or any Restricted Subsidiary contain or have contained any: (i) underground storage tanks requiring permits under Environmental Law; (ii) asbestos-containing or radioactive materials requiring removal pursuant to Environmental Law; (iii) landfills or dumps requiring an Environmental Permit pursuant to Environmental Law; (iv) hazardous waste management units as defined pursuant to RCRA or any comparable state law or (v) sites on or nominated for the National Priority List promulgated pursuant to CERCLA or any state remedial priority list promulgated or published pursuant to any comparable state law and Note Parties any Restricted Subsidiary is in substantial compliance with all applicable financial responsibility requirements of all Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There has been no Release or, to the Issuer's knowledge, threatened Release of Hazardous Materials at, on, under or from the Note Parties' or any Restricted Subsidiary's Properties in violation of, or as could reasonably be expected to result in liability under, Environmental Law, there are no investigations, remediations, abatements, removals, or monitorings of Hazardous Materials required under applicable Environmental Laws at such Properties and, to the knowledge of the Issuer, none of such Properties are adversely affected by any Release or threatened Release of a Hazardous Material originating or emanating from any other real property, and no Issuer or Restricted Subsidiary has filed or failed to file, any notice required of such Persons under applicable Environmental Law related to a reportable Release of Hazardous Materials;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Neither the Issuer nor any Restricted Subsidiary has received any written notice asserting an alleged liability or obligation of the Note Parties or any Restricted Subsidiary under any applicable Environmental Laws with respect to the investigation, remediation, abatement, removal, or monitoring of any Hazardous Materials at, under, or Released or threatened to be Released from the Note Parties' or any Restricted Subsidiary's Properties or any real properties offsite the Issuer's or any Restricted Subsidiary's Properties, including a letter or request for information under Section 104(e) of CERCLA (42 U.S.C. § 9604) or any comparable state law, and, to the Issuer's knowledge, there are no conditions or circumstances that could reasonably be expected to result in the receipt of such written notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) There has been no exposure of any Person or Property to any Hazardous Materials as a result of or in connection with the operations and businesses of Note Parties or any Restricted Subsidiary, including at any of the Note Parties' or its Restricted Subsidiaries' Properties that could reasonably be expected to form the basis for a claim for damages or compensation for which the Note Parties or any Restricted Subsidiary would be liable under Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the Issuer's knowledge, there are no conditions or circumstances associated with any of the Note Parties' or any Restricted Subsidiary's currently or previously owned or leased real properties that could reasonably be expected to give rise to the imposition of any material liabilities under any Environmental Laws against any Note Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Note Parties and their Restricted Subsidiaries have made available to the Holders complete and correct copies of all environmental site assessment reports, investigations, studies, analyses, and correspondence on environmental matters (including matters relating to any alleged non-compliance with or liability under Environmental Laws) requested by the Agent that are in any of the Note Parties' or the Restricted Subsidiaries' possession or control and relating to their respective Properties or operations.

**Section 4.07.** <u>Compliance with Laws and Agreements; No Defaults, Event of Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of Note Parties and each Restricted Subsidiary is in compliance with all Governmental Requirements applicable to it and its Property and all agreements and other instruments binding upon it or its Property, and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business as presently conducted in each case, except where such non-compliance would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Default or Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Material Contract is in full force and effect, and is valid, binding and enforceable upon any Note Party party thereto and, to the knowledge of the Note Parties, upon each of the other parties thereto in accordance with their respective terms, in each case subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. Each Note Party party thereto is in compliance in all material respects with such agreements. The Issuer has delivered or made available to the Agent true, correct and complete copies of each Material Contract (including all amendments, supplements or other modifications thereto) in effect and not previously delivered or made available to the Agent.

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**Section 4.08.** <u>Investment Company Act</u>. None of the Note Parties nor any Restricted Subsidiary is required to be registered as an "investment company" under the Investment Company Act of 1940, as amended.

**Section 4.09.** <u>Taxes</u>. Each of the Note Parties and their Restricted Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which the Note Parties or such Restricted Subsidiary, as applicable, has set aside on its books adequate reserves in accordance with GAAP or (b) to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Effect. No Tax Lien (other than Tax Liens that constitute Excepted Liens or Tax Liens whose existence would not reasonably be expected to result in a Material Adverse Effect) has been filed.

**Section 4.10.** <u>ERISA</u>. Except for such matters that, individually or in the aggregate, could not reasonably be expected to have Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The applicable Note Parties, Restricted Subsidiaries and ERISA Affiliates have complied in all material respects with ERISA and, where applicable, the Internal Revenue Code regarding each Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Plan is, and has been, established and maintained in substantial compliance with its terms, ERISA and, where applicable, the Internal Revenue Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No act, omission or transaction has occurred with respect to a Plan which could reasonably be expected to result in imposition on the Note Parties, any Restricted Subsidiary or any ERISA Affiliate (whether directly or indirectly) of (i) either a civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502 of ERISA or a tax imposed pursuant to Chapter 43 of Subtitle D of the Internal Revenue Code or (ii) breach of fiduciary duty liability damages under Section 409 of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Full payment when due has been made of all amounts which the applicable Note Parties, Restricted Subsidiaries or ERISA Affiliates is required under the terms of each Plan or applicable law to have paid as contributions to such Plan as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Neither the Note Parties, the Restricted Subsidiaries nor any ERISA Affiliate sponsors, maintains, or contributes to an employee welfare benefit plan, as defined in Section 3(1) of ERISA that provides benefits to former employees of such entities and that may not be terminated by the Note Parties, a Restricted Subsidiary or any ERISA Affiliate in its sole discretion at any time without any material liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither the Note Parties, the Restricted Subsidiaries nor any ERISA Affiliate sponsors, maintains or contributes to, or has at any time in the six (6) year period preceding the Closing Date sponsored, maintained or contributed to, any employee pension benefit plan, as defined in Section 3(2) of ERISA, that is subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Internal Revenue Code.

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**Section 4.11.** <u>Disclosure; No Material Misstatements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the other reports, financial statements, certificates or other information furnished by or on behalf of the Issuer or any Restricted Subsidiary to the Agent or any Holder or any of their Affiliates in connection with the negotiation of this Agreement or any other Note Document or delivered hereunder or under any other Note Document (as modified or supplemented by other information so furnished), taken as a whole, contains any untrue statement of material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading; <u>provided</u> that, with respect to projected financial information, the Issuer represents only that such information was prepared in good faith based upon assumptions believed by the Issuer to be reasonable at the time it being understood that (i) any such projected financial information is merely a prediction as to future events and its not to be viewed as fact, (ii) such projected financial information is subject to significant uncertainties and contingencies, many of which are beyond the control of the Issuer or any of its Subsidiaries and (iii) no assurance can be given that any particular projections will be realized and that actual results during the period or periods covered by any such projections may differ significantly from the projected results and such differences may be material. There are no statements or conclusions in any Reserve Report which are based upon or include materially misleading information or fail to take into account material information regarding the matters reported therein, it being understood that projections concerning volumes attributable to the Oil and Gas Properties of the Note Parties and their Restricted Subsidiaries and production and cost estimates contained in each Reserve Report are necessarily based upon professional opinions, estimates and projections and that the Note Parties and their Restricted Subsidiaries do not warrant that such opinions, estimates and projections will ultimately prove to have been accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the Closing Date, the information included in the Beneficial Ownership Certification is true and correct in all respects.

**Section 4.12.** <u>Insurance</u>. The Note Parties have, and have caused all of their Restricted Subsidiaries to have (a) all insurance policies sufficient for the compliance by each of them with all material Governmental Requirements and all material agreements and (b) insurance coverage in at least amounts and against such risk (including, without limitation, public liability) that are customarily insured against by business entities similarly situated and engaged in the same or a similar business for the assets and operations of the Note Parties and their Restricted Subsidiaries. Such policies provide adequate coverage from reputable and financially sound insurance companies in amounts sufficient to insure the assets and risks of each of the Note Parties and their Restricted Subsidiaries in accordance with prudent business practice in the industry of the Note Parties and their Restricted Subsidiaries. No Note Party has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers at a comparable rate. The Collateral Agent has been named as additional insureds in respect of such liability insurance policies and the Collateral Agent has been named as lender loss payee and mortgagee with respect to property loss insurance. None of the Note Parties or their Restricted Subsidiaries owns or holds any Building (as defined in the applicable Flood Insurance Regulation) or Manufactured (Mobile) Home (as defined in the applicable Flood Insurance Regulation) constituting Collateral for which such Person has not delivered to the Agents evidence reasonably satisfactory to the Requisite Holders that (x) such Person maintains flood insurance for such Building or Manufactured (Mobile) Home or (y) such Building or Manufactured (Mobile) Home is not located in a Special Flood Hazard Area (it being understood that Agent will promptly provide any such information received by it to the Holders).

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**Section 4.13.** <u>Subsidiaries; Foreign Operations</u>. Except as set forth on <u>Schedule 4.13</u> or as disclosed in writing to the Agent (which shall promptly furnish a copy to the Holders), which shall be a supplement to <u>Schedule 4.13</u>, the Issuer has no Subsidiaries or Foreign Subsidiaries. <u>Schedule 4.13</u> identifies each Subsidiary as either a Restricted Subsidiary or Unrestricted Subsidiary. Each Subsidiary listed on <u>Schedule 4.13</u> is a Wholly-Owned Subsidiary. The Note Parties have no Foreign Subsidiaries and no Restricted Subsidiary owns any Oil and Gas Properties not located within the geographic boundaries of the United States of America and subject to the jurisdiction of the United States of America.

**Section 4.14.** <u>Properties; Titles, Etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Note Parties and their Restricted Subsidiaries has good and defensible title (as used herein, such term has the meaning commonly ascribed thereto in the Oil and Gas Business) to the Oil and Gas Properties evaluated in the most recently delivered Reserve Report (except for those Oil and Gas Properties that have been disposed of since the date of such Reserve Report in accordance with this Agreement or leases which have expired in accordance with their terms) and valid title to all its material personal Properties, in each case, free and clear of all Liens except Liens permitted by <u>Section 7.03</u>. After giving full effect to the Excepted Liens, the Note Party or the Restricted Subsidiary specified as the owner owns the net interests in production attributable to the Hydrocarbon Interests as reflected in the most recently delivered Reserve Report (except for those Oil and Gas Properties that have been disposed of since the date of such Reserve Report in accordance with this Agreement or leases which have expired in accordance with their terms).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to any real Properties or personal Properties not subject of the preceding <u>clause (a)</u>, each of the Note Parties and their Restricted Subsidiaries have in all material respects (i) good and defensible title to, or valid leasehold or other interests in, its respective real Properties and (ii) good title to all of their personal Properties, in each case, free and clear of all Liens except Liens permitted by <u>Section 7.03</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as could not reasonably be expected to have a Material Adverse Effect, all leases and agreements necessary for the conduct of the business of the Note Parties and their Restricted Subsidiaries are valid and subsisting, in full force and effect, and there exists no default or event or circumstance which with the giving of notice or the passage of time or both would give rise to a default under any such lease or leases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The rights and Properties presently owned, leased or licensed by the Note Parties and their Restricted Subsidiaries including, without limitation, all easements and rights of way, if any, include all rights and Properties necessary to permit the Note Parties and their Restricted Subsidiaries to conduct their business in all material respects in the same manner as its business has been conducted prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All of the Properties of the Note Parties and their Restricted Subsidiaries which are reasonably necessary for the operation of their businesses are in good working condition and are maintained in accordance with prudent business standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Note Parties and each Restricted Subsidiary owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by the Note Parties and such Restricted Subsidiary does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. The Note Parties and their Restricted Subsidiaries either own or have valid licenses or other rights to use all databases, geological data, geophysical data, engineering data, seismic data, maps, interpretations and other technical information used in their businesses as presently conducted, subject to the limitations contained in the agreements governing the use of the same, with such exceptions as could not reasonably be expected to have a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No eminent domain proceeding or taking has been commenced or, to the knowledge of any of the Issuer or any of its Subsidiaries, is contemplated with respect to all or any portion of the Property, except to the extent that such proceeding or taking has been previously disclosed by the Issuer in writing to the Agent pursuant to <u>Section 6.02(b).</u>

**Section 4.15.** <u>[Reserved]</u>.

**Section 4.16.** <u>No Operations.</u> The Note Parties and their Restricted Subsidiaries (a) do not take Hydrocarbons attributable or allocable to their Oil and Gas Properties, in kind, and (b) do not engage in any material operating activities with respect to their Oil and Gas Properties

**Section 4.17.** <u>[Reserved]</u>

**Section 4.18.** <u>Swap Agreements and Qualified ECP Guarantor</u>. <u>Schedule 4.18</u>, as of the Closing Date, and thereafter included in the most recently delivered report required to be delivered by the Issuer pursuant to <u>Section 6.01(e)</u>, as of the date thereof, sets forth, a true and complete list of all Swap Agreements of the Note Parties and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark to market value thereof, all credit support agreements relating thereto (including any margin required or supplied) and the counterparty to each such agreement. The Note Parties are each a Qualified ECP Guarantor.

**Section 4.19.** <u>Use of Proceeds</u>. The proceeds of the Notes shall be used for the purposes set forth in <u>Section 2.04</u>. The Note Parties and their Restricted Subsidiaries are not engaged principally, or as one of its or their important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). No part of the proceeds of any Note will be used for any purpose which violates the provisions of Regulations T, U or X of the Board.

**Section 4.20.** <u>Solvency</u>. Immediately after giving effect to the Transactions, the Note Parties and their Subsidiaries (on a consolidated basis) are Solvent.

**Section 4.21.** <u>Anti-Corruption Laws, Sanctions and USA PATRIOT Act</u>. Each Note Party has implemented and maintains in effect policies and procedures reasonably designed to promote compliance by the Note Parties and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Note Parties and, to the knowledge of the Note Parties, their respective officers, directors, employees and agents are in compliance with the USA PATRIOT Act, Anti-Corruption Laws and applicable Sanctions. None of (a) the Note Parties or any of their respective directors, officers or employees, or (b) to the Issuer's knowledge, any agent of the Note Parties that will act in any capacity in connection with or benefit from the proceeds of the Notes, is (i) a Sanctioned Person, or (ii) engaged in any activity that would reasonably be expected to result in any Note Party being designated a Sanctioned Person. No direct use of proceeds of the Notes or other transaction by the Note Parties contemplated by this Agreement will unlawfully violate any Anti-Corruption Law or applicable Sanctions.

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**Section 4.22.** <u>Affected Financial Institutions</u>. No Note Party is an Affected Financial Institution.

**Section 4.23.** <u>Collateral Documents</u>. The Collateral Documents are effective to create in favor of the Collateral Agent, for the benefit of the Secured Parties, a legal, valid and enforceable security interest in the Collateral and proceeds thereof, subject, in the case of enforceability, to applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally and to general principles of equity and principles of good faith and fair dealing. The Obligations are and shall be at all times secured by legal, valid and enforceable, and upon recordation shall be, perfected first priority Liens in favor of the Collateral Agent, covering and encumbering the Collateral (subject only to permitted Liens under <u>Section 7.03</u>).

**Section 4.24.** <u>Senior Debt</u>. The Obligations shall constitute senior indebtedness of the Note Parties under and as defined in any documentation documenting any junior indebtedness of the Note Parties.

**Section 4.25.** <u>Private Offering</u>. Neither the Note Parties nor anyone acting on their behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other than the Holders, each of which has been offered the Notes at a private sale for investment. Neither the Note Parties nor anyone acting on their behalf has (a) solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Notes by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D of the Securities Act, or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act, or (b) taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.

**ARTICLE V** 

**REPRESENTATIONS OF HOLDERS** 

In order to induce Issuer to issue and sell the Notes to the Holders, each Holder hereby represents and warrants to Issuer, on the Closing Date and acknowledges as follows:

**Section 5.01.** <u>Organization and Standing</u>. Such Holder is a corporation or other entity duly incorporated or formed and validly existing under the laws of the jurisdiction of its incorporation or formation.

**Section 5.02.** <u>Authorization; Enforceability</u>. Such Holder has the full power and authority to enter into this Agreement, and (assuming due execution by the other parties hereto) this Agreement constitutes its valid and legally binding obligation, enforceable against it in accordance with its terms, except to the extent the enforceability thereof may be limited by (a) the effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other similar laws affecting creditors' rights generally, (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (c) implied covenants of good faith and fair dealing.

**Section 5.03.** <u>Investment</u>. Such Holder is acquiring each such Note solely for its own account, for investment purposes, with no intention of distributing or reselling such Note in any public offering or in any transaction that would be in violation of applicable securities laws of the United States or any other applicable jurisdiction or any state or province thereof, without prejudice, however, to such Holder's right at all times to sell or otherwise dispose of all or any part of the Notes under an effective registration statement under the Securities Act and applicable state securities or "blue sky" laws (it being

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understood that Issuer has no obligation or intention to undertake any such registration), or an exemption from such registration requirements and in compliance with applicable securities laws. Such Holder has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Notes by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D of the Securities Act, or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act.

**Section 5.04.** <u>Accredited Investor</u>. Such Holder, at the time that it committed to enter into this Agreement was, and now is, an "accredited investor" as that term is defined in Rule 501 of Regulation D under the Securities Act.

**Section 5.05.** <u>No Resale or Repurchase</u>. No person has made to such Holder any written or oral representations (a) that any person will resell or repurchase the Notes (except in accordance with the Organizational Documents of Issuer), (b) that any person will refund the purchase price of the Notes, or (c) as to the future price or value of the Notes.

**Section 5.06.** <u>Private Placement</u>. Such Holder understands that the Notes are being offered for sale only on a "private placement" basis and that the sale and delivery of the Notes is conditional upon such sale being exempt from the requirements as to the filing of a prospectus or registration statement or delivery of an offering memorandum or upon the issuance of such orders, consents or approvals as may be required to permit such sale without the requirement of filing a prospectus or delivering an offering memorandum and, as a consequence, (a) such Holder is restricted from using most of the civil remedies available under applicable securities legislation, (b) such Holder may not receive information that would otherwise be required to be provided to it under applicable securities legislation, and (c) Issuer is relieved from certain obligations that would otherwise apply under applicable securities legislation.

**Section 5.07.** <u>Knowledge and Experience</u>. Without limiting the force and effect of the representations and warranties of any party to a Note Document, such Holder (a) has such knowledge and experience in financial and business matters, as to enable it to evaluate the merits and risks of entering into this Agreement and receiving the Notes, (b) is able to bear the economic risk of the transaction, (c) is able to hold its interest indefinitely unless a subsequent disposition thereof is registered under the Securities Act or is exempt from registration and is completed in compliance with applicable securities laws, (d) has been independently advised as to restrictions with respect to trading in the Notes imposed by applicable securities laws, (e) confirms that no representation (written or oral) has been made to it (with respect to trading restrictions imposed by applicable securities laws) by or on behalf of Issuer or Agent with respect thereto, (f) has conducted its own investigation of the Issuer and the terms of the Note, (g) (i) confirms it has had access to information as it deemed necessary to make its decision to purchase the Notes, and (ii) has been offered the opportunity to ask questions of the Issuer and receive answers thereto, as it deemed necessary in connection with the decision to purchase the Notes and (h) acknowledges that it is aware of the characteristics of the Notes, and the risks relating to an investment therein.

**Section 5.08.** <u>No Materials</u>. Without limiting the representations and warranties set forth in the Note Documents, such Holder has not received or been provided with, nor has it requested, nor does it have any need to receive, any offering memorandum, any prospectus, sales or advertising literature describing or purporting to describe the business and affairs of Issuer which has been prepared for delivery to, and review by, prospective purchasers in order to assist them in making an investment decision in respect of the Notes.

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**Section 5.09.** <u>Transfer Restrictions</u>. Such Holder acknowledges and agrees that none of the Notes has been registered under the Securities Act or the securities laws of any country or state, and none of them may be sold or otherwise transferred in the absence of an effective registration thereunder unless an exemption from registration is available. Such Holder also acknowledges and agrees that the Notes are subject to resale restrictions in the United States, may be subject to resale restrictions in jurisdictions other than the United States under applicable securities laws, and that any sale or transfer will be completed in compliance with applicable securities laws.

**Section 5.10.** <u>Offers and Sales Only in Certain Circumstances</u>. If such Holder decides to offer, sell, pledge or otherwise transfer any of the Notes, it will not offer, sell, pledge or otherwise transfer any of such Notes, directly or indirectly, unless: (a) the sale is made pursuant to registration of the Notes under the Securities Act; (b) the sale is made to the Issuer in accordance with <u>Section 2.09(g)</u>; (c) the sale is made outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S under the Securities Act and in compliance with applicable local securities laws and regulations; (d) the sale is made pursuant to the exemption from the registration requirements of the Securities Act provided by Rule 144 or Rule 144A thereunder, if available, and, in either case, in accordance with any applicable state securities or "blue sky" laws; or (e) the Notes are sold in any other transaction that does not require registration under the Securities Act or any applicable state securities or "blue sky" laws.

**Section 5.11.** <u>Subsequent Purchaser Notification</u>. Such Holder will take reasonable steps to inform, and cause each of its Affiliates and Related Funds that is a U.S. person (as defined in Section 902 of Regulation S under the Securities Act) to take reasonable steps to inform, any person acquiring Notes from such Holder, Affiliate or Related Fund, as the case may be, in the United States that the Notes (a) have not been and will not be registered under the Securities Act, (b) are being sold to them without registration under the Securities Act in reliance on Rule 144A or in accordance with another exemption from registration under the Securities Act and (c) may not be offered, sold or otherwise transferred except (i) to the Issuer in accordance with <u>Section 2.09(g)</u>, (ii) outside the United States in accordance with Regulation S and in compliance with applicable local securities laws and regulations or (iii) inside the United States in accordance with (A) Rule 144A to a person whom the seller reasonably believes is a qualified institutional buyer, as defined in Rule 144A ("**Qualified Institutional Buyer**") that is purchasing such Notes for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that the offer, sale or transfer is being made in reliance on Rule 144A or (B) pursuant to another available exemption from registration under the Securities Act.

**ARTICLE VI** 

**AFFIRMATIVE COVENANTS** 

Commencing on the Closing Date and until Payment in Full, each of the Note Parties covenants and agrees with the Holders and Agents that:

**Section 6.01.** <u>Financial Statements; Other Information</u>. The Issuer will furnish to the Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Annual Financial Statements</u>. Not later than ninety–five (95) days after the end of each Fiscal Year of the Issuer, its audited consolidated balance sheet and related statements of operations, members' equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all reported on by independent public accountants of recognized national standing (without a "going concern" or like qualification or exception and without any qualification, exception or explanatory paragraph as to the scope of such audit other than (x) a "going concern" or other qualification that results solely from the Maturity Date being scheduled to occur within one year from the time such opinion is delivered or (y) from any potential inability to satisfy any covenant in <u>Section 7.01</u> on a future date or in a future period), without qualification as to scope of audit to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Issuer and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Quarterly Financial Statements</u>. Not later than sixty-five (65) days after the end of each of the first three (3) Fiscal Quarters of each Fiscal Year (commencing with September 30, 2024) of the Issuer for each Fiscal Quarter ending thereafter, its consolidated balance sheet and related statements of operations, members' equity and cash flows as of the end of and for such Fiscal Quarter and the then elapsed portion of the Fiscal Year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous Fiscal Year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Issuer and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificate of Financial Officer – Compliance</u>. Concurrently with any delivery of financial statements under <u>Sections 6.01(a)</u> or <u>6.01(b)</u>, a certificate of a Financial Officer in substantially the form of <u>Exhibit D</u> hereto (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with <u>Section 7.01</u> (including setting forth the Issuer's reasonably detailed and certified calculations of the Consolidated Total Net Leverage Ratio and the Asset Coverage Ratio and demonstrating compliance with the applicable financial covenant requirement), (iii) setting forth any change in the legal name of the Note Parties that occurred (if any) during the applicable fiscal period, and (iv) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in <u>Section 4.04</u> and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certificate of Financial Officer – Swap Agreements</u>. Concurrently with any delivery of financial statements under <u>Sections 6.01(a)</u> and <u>6.01(b)</u>, a certificate of a Financial Officer, in form satisfactory to the Agent and the Requisite Holders, setting forth as of a recent date, a true and complete list of all Swap Agreements of the Issuer and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark-to-market value therefor (to the extent available), any new credit support agreements relating thereto not listed on <u>Schedule 4.18</u>, any margin required or supplied under any credit support document, and the counterparty to each such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Projections</u>. Concurrently with any delivery of financial statements under <u>Sections 6.01(a)</u>, a reasonably detailed consolidated budget for the then-current fiscal year (including a projected consolidated balance sheet of the Issuer and its Subsidiaries as of the end of such fiscal year, the related quarterly consolidated statements of projected cash flow, capital expenditures and income and a summary of the material underlying assumptions applicable thereto) (collectively, the "**Projections**"), which Projections shall have been prepared in good faith on the basis of the assumptions stated therein, which assumptions were believed to be reasonable at the time of preparation of such Projections, it being recognized by the Agent and the Holders that such Projections are as to future events and are not to be viewed as facts, the Projections are subject to significant uncertainties and contingencies, many of which are beyond the control of the Issuer and the Subsidiaries, that no assurance can be given that any particular Projections will be realized and that actual results during the period or periods covered by any such Projections may differ from the projected results and such differences may be material.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Certificate of Insurer – Insurance Coverage</u>. Concurrently with any delivery of financial statements under <u>Section 6.01(a)</u>, a certificate of a Responsible Officer of the Issuer, certifying that (i) the insurance requirements of <u>Section 6.06</u> have been implemented and are being complied with, (ii) the Note Parties have paid or caused to be paid all insurance premiums then due and payable and (iii) the Note Parties are in compliance with the insurance policies, and attaching each certificate of insurance required pursuant to <u>Section 6.06</u>, and, if requested by the Agent or any Holder, all copies of the applicable policies and endorsements to the extent not previously delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Other Accounting Reports</u>. Promptly upon receipt thereof, a copy of each other report or letter submitted to the Note Parties or any of their Subsidiaries by independent accountants (other than customary and standard correspondence) in connection with any annual, interim or special audit made by them of the books of the Note Parties or any such Subsidiary, and a copy of any response by the Note Parties or any such Subsidiary, or the Board of Directors (or comparable Governing Body) of the Note Parties or any such Subsidiary, to such letter or report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Lists of Purchasers</u>. To the extent the Note Parties take any material amount of Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, concurrently with the delivery of any Reserve Report, a list of all Persons purchasing Hydrocarbons from the Note Parties or any Restricted Subsidiary with respect to which such in-kind deliveries are taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Notice of Sales of Oil and Gas Properties and Termination of Swap Agreements</u>. In the event the Note Parties or any Subsidiary intends to sell, transfer, assign or otherwise dispose of (including pursuant to a Casualty Event) any Oil and Gas Properties (other than Hydrocarbons in the ordinary course of business) or any Equity Interests in any Subsidiary in accordance with <u>Section 7.09(d)</u> or <u>Section 7.09(k)</u>, in each case, in an aggregate amount in excess of $500,000, at least three (3) Business Days' (or such shorter time as the Requisite Holders may agree in their sole discretion) prior written notice of such disposition prior to consummation of such disposition (other than with respect to pursuant to a Casualty Event), including the price thereof and any other details thereof reasonably requested by the Requisite Holders. In the event that the Note Parties or any Subsidiary receives any notice of early termination of any material Swap Agreement to which it is a party from any of its counterparties, or any material Swap Agreement to which the Note Parties or any Subsidiary is a party is terminated, prompt written notice of the receipt of such early termination notice or such termination, as the case may be, together with a reasonably detailed description thereof and any other details thereof reasonably requested by the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Information Regarding Issuer and Guarantors</u>. Prompt written notice (and in any event within five (5) Business Days thereafter, or such later date as the Requisite Holders may agree in their sole discretion) of any change (i) in the Issuer's or any Guarantor's organizational name, (ii) in the location of the Issuer's or any Guarantor's chief executive office or principal place of business, (iii) in the Issuer's or any Guarantor's identity or organizational structure or in the jurisdiction in which such Person is incorporated or formed, (iv) in the Issuer's or any Guarantor's organizational identification number in such jurisdiction of organization, and (v) in the Issuer's or any Guarantor's federal taxpayer identification number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Notices of Certain Changes</u>. Promptly, but in any event within five (5) Business Days after the execution thereof (or such later date as the Requisite Holders may agree in their sole discretion), copies of any material amendment, modification or supplement to the certificate or articles of incorporation or formation, bylaws, certificate or articles of organization, regulations or limited liability company agreement, any preferred stock designation or any other Organizational Document of the Note Parties or any Restricted Subsidiary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>SEC and Other Filings</u>. Promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed by the Note Parties or any Restricted Subsidiary with the SEC, or with any national securities exchange. Notwithstanding the foregoing, the Issuer shall in no event be required to deliver to, or otherwise provide or disclose to, any Holder any information for which the Issuer is requesting (assuming such request has not been denied), or has received, confidential treatment from the Commission, or any correspondence with the SEC. Any such document or report that the Issuer files with the SEC via the SEC's EDGAR system (or any successor thereto) shall be deemed to be delivered to the Holder for purposes of this Section 6.01(m) at the time such documents are filed via the EDGAR system (or such successor).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Beneficial Ownership Certification</u>. Promptly, but in no event later than five (5) Business Days of the occurrence of such change, written notice of any change in the information provided in the Beneficial Ownership Certification delivered to any Holder that would result in a change to the list of beneficial owners identified in such certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Free Cash Flow; Lease Operating Statements</u>. Not later than each "Applicable Updated LOS/CF Delivery Date" as set forth in <u>Appendix C</u>, commencing on April 20, 2025 (such certificate delivered on April 20, 2025, the "<u>First Amendment LOS/CF Certificate</u>"), deliver (i) a certificate of a Responsible Officer in substantially the form of <u>Exhibit K</u> setting forth reasonably detailed calculations of (A) (i) for each certificate delivered after the First Amendment LOS/CF Certificate, Free Cash Flow (Back) and (ii) Free Cash Flow (Forward), in each case for the related "Applicable CF Period" set forth in <u>Appendix C</u>, (B) Projected Cash Flow From Operating Activities for the then current "Applicable CF Period" and a summary of the material underlying assumptions applicable thereto, which Projected Cash Flow From Operating Activities shall have been prepared in good faith on the basis of the assumptions stated therein, (C) for each certificate delivered after the First Amendment LOS/CF Certificate, any Prior Period Adjustments, and (D) for each certificate delivered after the First Amendment LOS/CF Certificate, any other components of Free Cash Flow (Back) and Free Cash Flow (Forward) realized as of the date of the certificate, (ii) lease operating statements for the most recently ended fiscal quarter in form and detail substantially consistent with the lease operating statements delivered to Holders pursuant to <u>Section 3.01(v)</u> for each such fiscal quarter from the Oil and Gas Properties and other information reasonably requested by the Requisite Holders with reasonable advance notice (and which includes the volume of production and sales attributable to production (and the prices at which such sales were made and the revenues derived from such sales) for each such fiscal quarter from the Oil and Gas Properties, and sets forth the related ad valorem, severance and production taxes (if applicable), capital expenditures and lease operating expenses attributable thereto and incurred for each such fiscal quarter), in each case for this <u>Section 6.01(o)(ii)</u> certified by a Responsible Officer of the Issuer as presenting fairly in all material respects the information contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Free Cash Flow Utilizations.</u> In the event the Issuer or any Restricted Subsidiary intends to effect a Free Cash Flow Utilization, at least three (3) Business Days' (or such later date as the Requisite Holders may agree in their sole discretion) prior to such intended Free Cash Flow Utilization, deliver a certificate of a Responsible Officer in substantially the form of <u>Exhibit K</u> hereto setting forth reasonably detailed calculations of Distributable Free Cash Flow (after giving effect to such Free Cash Flow Utilization) for the "Applicable CF Period" set forth in <u>Appendix C</u> applicable to the calendar month during which such Free Cash Flow Utilization is proposed to be made (i.e., the applicable "Distribution Month" set forth in <u>Appendix C</u>). The calculations of Distributable Free Cash Flow shall use the Projected Cash Flow From Operating Activities reflected in the most recently delivered LOS/CF Certificate and will use other components of Free Cash Flow (Back) and Free Cash Flow (Forward) to the extent they have been realized prior to the date of the certificate of a Responsible Officer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Environmental, Social and Governance Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon notice from an operator of a Material Environmental and Social Incident occurs, (A) reasonably prompt notification, but in any event within fifteen (15) Business Days, of such Material Environmental and Social Incident, (B) concurrently deliver a brief statement of the remedial plan such operator has undertaken or plans to undertake to address such Material Environmental and Social Incident and (C) reasonably prompt notification, but in any event within fifteen (15) Business Days, of the completion of such remedial plan or the abandonment thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within sixty (60) days of request by the Requisite Holders, no more than once in any 12-month period, (A) a materially completed environmental, social and governance survey (an "**ESG Survey**") provided to the Issuer by the Requisite Holders in the form substantially consistent with the ESG Survey template provided by the Holders to the Issuer on August 20, 2024, but with the Issuer's previous year's responses updated by the Issuer, as applicable and (B) host a conference call or teleconference at a time mutually acceptable to the Issuer and the Requisite Holders to discuss the emissions and climate related policies and activities of the Issuer and its Restricted Subsidiaries and matters relating to the ESG Survey; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) reasonably promptly following request, any additional material information related to environmental, social and governance matters of the Issuer as the Agent or the Requisite Holders may reasonably request from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Other Requested Information</u>. Promptly following any request therefor, (i) such other information regarding the operations, business affairs and financial condition of the Note Parties or any Subsidiary (including, without limitation, any Plan sponsored by the Issuer or a Restricted Subsidiary and any reports or other information required to be filed with respect thereto under the Internal Revenue Code or under ERISA), or compliance with the terms of this Agreement or any other Note Document, as the Agent or any Holder may reasonably request; or (ii) information and documentation reasonably requested by the Agents or any Holder for purposes of compliance with applicable "know your customer" requirements under the USA PATRIOT Act, other applicable anti-money laundering laws or the Beneficial Ownership Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Material Contract Information</u>. Concurrently with any delivery of financial statements under <u>Section 6.01(a)</u> or <u>Section 6.01(b)</u>, copies of any material amendments, modifications, consents and waivers to, and termination (including rejections) and assignment of, any Material Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Regulatory Notices</u>. Promptly, but in any event within ten (10) Business Days (or such longer period as the Requisite Holders may agree to in their sole discretion) after receipt thereof by the Note Parties or any Subsidiary, a copy of any material notice, summons, citation, proceeding or order received from any Governmental Authority concerning the regulation of the Properties of the Note Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Consolidated Total Net Leverage Ratio; Asset Coverage Ratio</u>. No later than three (3) (or with respect to a Material Disposition, five (5)) Business Days prior to the consummation of any event or transaction that requires the calculation of, and compliance with, a Consolidated Total Net Leverage Ratio and/or an Asset Coverage Ratio, in each case on a Distribution PF Basis, (i) a certificate of a Responsible Officer of the Issuer (A) with respect to the Consolidated Total Net Leverage Ratio, (I) setting forth the Issuer's reasonably detailed and certified calculations of such Consolidated Total Net Leverage Ratio on a Distribution PF Basis and demonstrating compliance with the applicable Consolidated Total Net Leverage Ratio requirement and (II) certifying that the information set forth in

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the updated lease operating statement referenced in <u>Section 6.01(u)(ii)(A)</u> is true and correct and (B) with respect to the Asset Coverage Ratio, (I) setting forth the Issuer's reasonably detailed and certified calculations of such Asset Coverage Ratio on a Distribution PF Basis and demonstrating compliance with the applicable Asset Coverage Ratio requirement and (II) certifying that information set forth in the updated reserve database referenced in <u>Section 6.01(u)(ii)(B)</u> is true and correct, it being understood by the Agent and the Holders that projections concerning volumes and production and cost estimates contained therein are necessarily based upon opinions, estimates and projections and that neither the Issuer nor such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate and (ii) with respect to the Asset Coverage Ratio tested (A) in connection with a Material Disposition, an updated reserve database with respect to the Oil and Gas Properties of the Issuer and its Restricted Subsidiaries, giving effect to and reflecting such event or transaction and any other items necessary to be taken into account in accordance with the definition of Distribution PF Basis and <u>Section 1.05</u>, including any Specified Reserve Updates, that is in form and detail substantially consistent with the reserve database used in connection with the preparation of each internally prepared Reserve Report delivered pursuant to <u>Section 6.11</u>, including setting for current production figures and estimates with respect to such Oil and Gas Properties as of the date of delivery and (B) otherwise, an updated reserve database with respect to the Oil and Gas Properties of the Issuer and its Restricted Subsidiaries giving effect to the updated Strip Price as set forth in <u>Section 1.05(c)</u>. Any such certificate of a Responsible Officer of the Issuer delivered in accordance with this <u>Section 6.01(u)</u> shall set forth the amount of any Distribution PF Basis adjustment to the extent not set forth in a previously delivered certificate, or any change in the amount of a Distribution PF Basis adjustment set forth in a previously delivered certificate and, in either case, in reasonable detail together with the calculations and basis therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(v) WH Depositor Reporting. On the first Business Day and tenth (10th) Business Day of each calendar month, each WH Depositor shall provide a certificate of a Financial Officer of such WH Depositor setting forth (i) the Dollar amount of any capital contributions actually received by such WH Depositor pursuant to a DST Sell-Down, (ii)(A) the amount of available cash distributed in accordance with Section 7.2 (or a section substantially similar to Section 7.2 of the Initial Trust Agreement) of the applicable Trust Agreement and (B) the Dollar amount of such available cash actually received by such WH Depositor and (iii) the amount of cash invested by a WH Depositor into the applicable WH DST as a result of any Investment made pursuant to Section 7.05(n), in the case of each of clauses (i), (ii)(A), (ii)(B) and (iii) above since the date of the last certificate of a Fiscal Officer of such WH Depositor delivered pursuant to this Section 6.01(v) and together with reasonably detailed calculations thereof.</u>

**Section 6.02.** <u>Notices of Material Events</u>. Promptly (and in any event within three (3) Business Days) after a Responsible Officer of the Issuer or any Subsidiary obtains knowledge thereof, the Issuer will furnish to the Agent (which shall make such information available to the Holders) written notice of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the occurrence of any Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the filing or commencement of, or the threat in writing of, any action, suit, proceeding, investigation or arbitration by or before any arbitrator or Governmental Authority against or affecting the Note Parties or any Restricted Subsidiary not previously disclosed in writing to the Holders or any material adverse development in any action, suit, proceeding, investigation or arbitration (whether or not previously disclosed to the Holders) that, in either case, if adversely determined, could reasonably be expected to result in a Material Adverse Effect;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the occurrence of any ERISA Event that results in, or could reasonably be expected to result in, a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.

Each notice delivered under this <u>Section 6.02</u> shall be accompanied by a statement of a Responsible Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

**Section 6.03.** <u>Existence; Conduct of Business</u>. The Note Parties will, and will cause each Restricted Subsidiary to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence in a jurisdiction of the United States and the rights, licenses, permits, privileges and franchises material to the conduct of its business and maintain, if necessary, its qualification to do business in each other jurisdiction in which its Properties are located or the ownership of its Properties requires such qualification, except where the failure to so qualify could not reasonably be expected to have a Material Adverse Effect.

**Section 6.04.** <u>Payment of Taxes</u>. The Note Parties will, and will cause each Restricted Subsidiary to, pay all Tax liabilities of the Note Parties and all of their Restricted Subsidiaries before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings and the Note Parties or such Restricted Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) the failure to make payment could not reasonably be expected to result in a Material Adverse Effect.

**Section 6.05.** <u>[Reserved]</u>.

**Section 6.06.** <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will, and will cause each Restricted Subsidiary to, maintain, with financially sound and reputable insurance companies (at the time the relevant coverage is placed or renewed), insurance (i) in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses and (ii) in accordance with all Governmental Requirements. The loss payable clauses or provisions in said insurance policy or policies insuring any of the Collateral for the Obligations shall be endorsed in favor of and made payable to the Agents as its interests may appear and such policies shall name the Agents and the Holders as "additional insureds" (and mortgagee, if applicable) and Agents as lender loss payee and provide that the insurer will endeavor to give at least thirty (30) days' prior notice of any cancellation to the Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will notify the Agents and the Requisite Holders promptly whenever any separate insurance concurrent in form or contributing in the event of loss with that required to be maintained under this <u>Section 6.06</u> is, to the actual knowledge of the Note Parties or a Restricted Subsidiary thereof, taken out by the Note Parties or such Restricted Subsidiary thereof; and promptly deliver to the Agents a duplicate original copy of such policy or policies to the extent available to such Person.

**Section 6.07.** <u>Books and Records; Inspection Rights</u>. The Note Parties will, and will cause each Restricted Subsidiary to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Issuer will, and will cause each Restricted Subsidiary to, permit any representatives designated by the Agent or any Holder, upon reasonable prior notice, to visit and inspect its Properties, to examine and make extracts

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from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested; <u>provided</u> that so long as no Event of Default has occurred and is continuing, the Note Parties and their Restricted Subsidiaries shall not be required to reimburse the Agent or any Holder for more than one (1) inspection during any Fiscal Year.

**Section 6.08.** <u>Compliance with Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will, and will cause each Restricted Subsidiary to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its Property and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business, except where such non-compliance would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will, and will cause each of their Subsidiaries to, maintain in effect and enforce such policies and procedures reasonably designed to promote compliance by the Note Parties and their Subsidiaries and each of their respective directors, officers, employees and agents with Anti-Corruption Laws, applicable Sanctions and the USA PATRIOT Act.

**Section 6.09.** <u>Environmental Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties shall: (i) comply, and shall cause its Properties and operations and each Restricted Subsidiary and each Restricted Subsidiary's Properties and operations to comply, with all applicable Environmental Laws, except where the failure to so comply could not be reasonably expected to have a Material Adverse Effect; (ii) handle, store, and prevent any Release or threatened Release of, and shall cause each Restricted Subsidiary to handle, store and prevent any Release or threatened Release of, any Hazardous Material on, under, about or from any of the Note Parties' or their Restricted Subsidiaries' Properties or any other property offsite the Property to the extent caused by the Note Parties' or any of their Restricted Subsidiaries' operations in compliance with applicable Environmental Laws, except in each case, where the failure to do so could not reasonably be expected to have a Material Adverse Effect; (iii) timely obtain or file, and shall cause each Restricted Subsidiary to timely obtain or file, all Environmental Permits, if any, required under applicable Environmental Laws to be obtained or filed in connection with its operation or use of the Note Parties' or their Restricted Subsidiaries' Properties, except, in each case, where the failure to obtain or file could not reasonably be expected to have a Material Adverse Effect; (iv) promptly commence and diligently prosecute to completion, and shall cause each Restricted Subsidiary to promptly commence and diligently prosecute to completion, any assessment, evaluation, investigation, monitoring, containment, cleanup, removal, repair, restoration, remediation or other remedial obligations to the extent required under Environmental Law (collectively, the "**Remedial Work**") because of or in connection with the actual or suspected past, present or future Release or threatened Release of any Hazardous Material on, under, about or from any of the Note Parties' or their Restricted Subsidiaries' Properties, which failure to commence and diligently prosecute to completion could reasonably be expected to have a Material Adverse Effect; (v) conduct, and cause its Restricted Subsidiaries to conduct, their respective operations and businesses in a manner that will not expose any Property or Person to Hazardous Materials in violation of Environmental Law or as would result in liability under Environmental Law, if such exposure could reasonably be expected to have a Material Adverse Effect; and (vi) establish and implement, and shall cause each Restricted Subsidiary to establish and implement, such procedures as may be necessary to regularly determine and assure that the Note Parties' and their Restricted Subsidiaries' obligations under this <u>Section 6.09(a)</u> are timely and fully satisfied, which failure to establish and implement could reasonably be expected to have a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will promptly, but in no event later than fifteen (15) days after any Note Party obtains knowledge thereof, notify the Agent and the Holders in writing of any threatened (in writing) action, investigation or inquiry by any Governmental Authority or any threatened demand (in writing) or lawsuit by any Person against the Note Parties or their Restricted Subsidiaries or their Properties of which the Note Party has knowledge in connection with any Environmental Laws if the Note Parties could reasonably anticipate that any of the foregoing will result in liability (whether individually or in the aggregate), if not covered by insurance, to the extent such liability could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent available, the Note Parties will, and will cause each Restricted Subsidiary to, provide environmental assessments, audits and tests obtained by the Note Parties or any Restricted Subsidiary in connection with any future acquisition of Oil and Gas Properties or other Properties to the Agent, other than an acquisition of additional interests in Oil and Gas Properties in which the Note Parties or any Restricted Subsidiary previously held an interest.

**Section 6.10.** <u>Further Assurances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Note Parties at its sole expense will, and will cause each Restricted Subsidiary to, promptly execute and deliver to the Agents all such other documents, agreements and instruments reasonably requested by the Agents or the Requisite Holders to comply with, cure any defects or accomplish the conditions precedent, covenants and agreements of the Note Parties or any Restricted Subsidiary, as the case may be, in the Note Documents, including the Notes, or to further evidence and more fully describe the Collateral intended as security for the Obligations, or to correct any omissions in this Agreement or the Collateral Documents, or to state more fully the obligations secured therein, or to perfect, protect or preserve any Liens created pursuant to this Agreement or any of the Collateral Documents or the priority thereof, or to make any recordings, file any notices or obtain any consents, all as may be reasonably necessary or appropriate, in the sole discretion of the Agent or the Requisite Holders, in connection therewith. In addition, at any Agent's request, each Note Party, at its sole expense, shall provide any information requested to identify any Collateral pledged by it, exhibits to Mortgages in form and substance reasonably satisfactory to such Agent (at the direction of the Requisite Holders) (which such exhibits shall be in recordable form for the applicable jurisdiction) or any other information requested in connection with the identification of any Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Note Parties hereby authorizes the Collateral Agent to file one or more financing or continuation statements, and amendments thereto, relative to all or any part of the Mortgaged Property without the signature of the Note Parties or any other Guarantor where permitted by law. A carbon, photographic or other reproduction of the Collateral Documents or any financing statement covering the Mortgaged Property or any part thereof shall be sufficient as a financing statement where permitted by law. Each of the Note Parties acknowledges and agrees that any such financing statement may describe the collateral as "all assets" or "all assets of Debtor, whether now owned or hereafter acquired and wherever located" of the applicable Note Party or words of similar effect as may be required by the Collateral Agent or the Requisite Holders. The grant of authority to the Collateral Agent under this <u>Section 6.10(b)</u> shall not be construed as a duty on any Agent to make any filings or otherwise perfect or maintain the perfection of the Collateral Agent's security interest, for the benefit of the Secured Parties, in the Collateral.

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**Section 6.11.** <u>Reserve Reports</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before March 3rd, May 1st, August 1st and November 1st of each year, commencing November 1, 2024, the Issuer shall furnish to the Agent and the Holders a Reserve Report evaluating, as of December 31 (for each March delivery), March 31 (for each May delivery), June 30 (for each August delivery) and September 30 (for each November delivery), the Proved Reserves of the Issuer and the Note Parties located within the geographic boundaries of the United States of America. The Reserve Report as of December 31 (for each March delivery) of each year starting with December 31, 2024 shall be prepared by one or more Approved Petroleum Engineers, and the Reserve Report as of March 31 (for each May delivery), June 30 (for each August delivery) and September 30 (for each November delivery) of each year (beginning March 31, 2024), shall be a report prepared by or under the supervision of the chief engineer or qualified agent of the Issuer who shall, in each case, certify such Reserve Report to be true and accurate in all material respects and to have been prepared in accordance with the procedures used (x) with respect to each March delivery, the Reserve Report as of December 31, 2023 and (y) with respect to each May, August and November delivery, the immediately preceding December 31 Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With the delivery of each Reserve Report, the Issuer shall provide to the Agent and the Holders a Reserve Report Certificate from a Responsible Officer certifying that in all material respects: (i) the information contained in the Reserve Report and any other information delivered in connection therewith is true and correct to the best knowledge of the Issuer, it being understood by the Agent and the Holders that projections concerning volumes and production and cost estimates contained in each Reserve Report are necessarily based upon opinions, estimates and projections and that neither the Issuer nor such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate, (ii) the Issuer or another Note Party has good and defensible title to the Oil and Gas Properties evaluated in such Reserve Report (other than those (A) disposed of since the date of such Reserve Report as permitted in accordance with the terms hereof and (B) leases that have expired in accordance with their terms) and such Oil and Gas Properties are free of all Liens except for Liens permitted by <u>Section 7.03</u>, (iii) except as set forth on an exhibit to the certificate or previously disclosed to the Agent and the Requisite Holders in writing, to the extent the Note Parties take Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, on a net basis there are no gas imbalances, take or pay or other prepayments, the value of which exceed the volume threshold specified in <u>Section 4.16</u>, with respect to the Note Parties' Oil and Gas Properties evaluated in such Reserve Report which would require the Issuer or any other Note Party to deliver Hydrocarbons either generally or produced from such Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor, (iv) none of the Note Parties, Oil and Gas Properties have been sold since the "as of" date of the last Reserve Report except (A) those Note Parties, Oil and Gas Properties listed on such certificate as having been disposed or (B) as previously disclosed to the Agent and the Requisite Holders in writing, (v) [reserved] and (vi) attached thereto is a schedule demonstrating compliance (calculated at the time of delivery of such Reserve Report) with the Collateral Coverage Minimum.

**Section 6.12.** <u>Title Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before the delivery to the Agent and the Holders of each Reserve Report required by <u>Section 6.11(a)</u>, the Issuer will deliver title information (in form and substance reasonably acceptable to the Requisite Holders) covering enough of the Oil and Gas Properties evaluated by such Reserve Report that were not included in the immediately preceding Reserve Report, so that the Requisite Holders shall have received together with title information previously delivered to the Requisite Holders, reasonably satisfactory title information on at least 90% on the PV-10 of the Oil and Gas Properties evaluated by such Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Issuer has provided title information for additional Properties under <u>Section 6.12(a)</u>, the Issuer shall, within forty-five (45) days after notice from the Requisite Holders that title defects or exceptions exist with respect to such additional Properties, either (i) cure any such title defects or exceptions (including defects or exceptions as to priority) which are not permitted by <u>Section 7.03</u> raised by such information, (ii) substitute acceptable Mortgaged Properties with no title

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defects or exceptions except for those permitted by <u>Section 7.03</u> having an equivalent value or (iii) deliver title information in form and substance reasonably acceptable to the Requisite Holders so that the Requisite Holders shall have received, together with title information previously delivered to the Requisite Holders, reasonably satisfactory title information on at least 90% of the PV-10 of the Oil and Gas Properties evaluated by such Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Issuer is unable to cure any title defect requested by the Requisite Holders to be cured within the forty-five (45) day period or the Issuer does not comply with the requirements to provide acceptable title information covering 90% of the PV-10 of the Oil and Gas Properties evaluated in the most recent Reserve Report, such default shall not be a Default, but instead the Agent and/or the Requisite Holders shall have the right to exercise the following remedy in their sole discretion from time to time, and any failure to so exercise this remedy at any time shall not be a waiver as to future exercise of the remedy by the Agent or the Requisite Holders. To the extent that Agent or the Requisite Holders are not satisfied with title to any Oil and Gas Properties evaluated in such Reserve Report after the periods described in <u>Section 6.12(b)</u> have elapsed, the Issuer shall, at the request of Agent (acting at the direction of Requisite Holders) or the Requisite Holders, (i) resubmit a revised Reserve Report to the Agent (for delivery to the Holders) removing such unacceptable Oil and Gas Property and such revised Reserve Report shall constitute the most recently delivered Reserve Report for all purposes under this Agreement and (ii) the Asset Coverage Ratio shall be recalculated and compliance with respect to such ratio shall be based upon the revised Reserve Report delivered under <u>clause (i)</u> above (and, with respect to such Oil and Gas Property that is unacceptable, the Asset Coverage Ratio shall be calculated and compliance with respect to such ratio shall be subject to the terms of <u>Section 1.05(a)(ii)</u> for so long as title to such Oil and Gas Property continues to be unacceptable).

**Section 6.13.** <u>Collateral and Guaranty Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the delivery of each Reserve Report hereunder, the Note Parties shall review the applicable Reserve Report, if any, and the list of current Mortgaged Properties (as described in <u>Section 6.11(b)</u>) to ascertain whether the Mortgaged Properties represent at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the most recently completed Reserve Report (the "**Collateral Coverage Minimum**"). In the event that the PV-10 of the Mortgaged Properties (calculated at the time of redetermination) does not satisfy the Collateral Coverage Minimum, then the Note Parties shall, and shall cause their Restricted Subsidiaries to, grant, within thirty (30) days of delivery of the certificate required under <u>Section 6.11(b)</u> (or such longer period as the Requisite Holders may agree in their sole discretion, but not to extend beyond a total of ninety (90) days following the delivery of such certificate), to the Collateral Agent as security for the Obligations a first priority Lien interest subject to Liens permitted under <u>Section 7.03</u> on additional Oil and Gas Properties of the Note Parties not already subject to a Lien of the Collateral Documents such that after giving effect thereto, the PV-10 of the Mortgaged Properties (calculated at the time of such redetermination) meets the Collateral Coverage Minimum. All such Liens will be created and perfected by and in accordance with the provisions of deeds of trust, mortgages, security agreements and financing statements or other Collateral Documents, all in form and substance reasonably satisfactory to the Requisite Holders and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes. In order to comply with the foregoing, if any Restricted Subsidiary places a Lien on its Oil and Gas Properties and such Restricted Subsidiary is not a Guarantor, then it shall become a Guarantor and comply with <u>Section 6.13(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that (i) the Issuer or any other Note Party creates or acquires any Restricted Subsidiary that is a Material Subsidiary or any Restricted Subsidiary is a Material Subsidiary or (ii) any Subsidiary incurs or guarantees any Debt, the applicable Note Party shall, within thirty (30) days from the date of such creation, acquisition, incurrence, or guarantee (or such later date as the Requisite Holders may agree in their sole discretion), cause such Restricted Subsidiary to execute and deliver the

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Guaranty Agreement and the Pledge and Security Agreement (or a supplement to such documents, as applicable) pursuant to which such Restricted Subsidiary shall guaranty the Obligations and grant a security interest in such Restricted Subsidiary's Collateral; <u>provided</u> that such Restricted Subsidiary will not own any Oil and Gas Properties until delivery of such Guaranty Agreement or Pledge and Security Agreement (or a supplement to such documents, as applicable); provided, further, that notwithstanding the foregoing, Excluded Subsidiaries shall not be required to become Guarantors or pledge any Collateral. In the event that the Issuer or any other Note Party creates or acquires any Restricted Subsidiary, the Note Party that owns the Equity Interests in such new Restricted Subsidiary shall execute and deliver a supplement to the Pledge and Security Agreement, pursuant to which such Note Party will ratify the pledge of all of the Equity Interests of such new Restricted Subsidiary to secure the Obligations. In connection with the foregoing, the Note Parties shall deliver to the Collateral Agent original certificates, if any, evidencing the Equity Interests of such new Restricted Subsidiary, together with appropriate undated stock powers for each certificate duly executed in blank by the registered owner thereof, and execute and deliver such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Agents or the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [Reserved].<u>(i) With respect to the Initial WH DST, within thirty (30) days of the earlier of (A) to the extent the effective date of the Conversion Notice has not occurred by such time, the twelve</u> <u>(12) month anniversary of the Third Amendment Effective Date and (B) the date of exercise of the FMV Option in accordance with Article 10 of the Initial Trust Agreement, the Initial WH DST shall to execute and deliver the Guaranty Agreement and the Pledge and Security Agreement (or a supplement to such documents, as applicable) pursuant to which the Initial WH DST shall guaranty the Obligations and grant a security interest in its Collateral and (ii) with respect to any other WH DST, within thirty (30) days of the earlier of (A) to the extent the effective date of the Conversion Notice has not occurred by such time, the twelve (12) month anniversary of the date of formation of such WH DST and (B) the date of exercise of the FMV Option in accordance with Article 10 of the Trust Agreement, such WH DST shall to execute and deliver the Guaranty Agreement and the Pledge and Security Agreement (or a supplement to such documents, as applicable) pursuant to which such WH DST shall guaranty the Obligations and grant a security interest in its Collateral.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Agent, without the consent of the Requisite Holders, shall enter into any Mortgage in respect of any real property acquired by any Note Party after the Closing Date until the date that is, (A) if the Mortgage relating to such Mortgaged Property contains standard exclusionary language with respect to Improved Mortgaged Property, the date of acquisition of such Mortgaged Property or (B) if the Mortgage relating to such Mortgaged Property does not contain standard exclusionary language with respect to Improved Mortgaged Property, the date that is thirty (30) days after the Agent (acting at the direction of the Requisite Holders) has delivered to the Holders the following documents in respect of such real property: (1) a completed flood hazard determination from a third party vendor; (2) if such real property is located in a "special flood hazard area", (I) a notification to the applicable Note Parties of that fact and (if applicable) notification to the applicable Note Parties that flood insurance coverage is not available and (II) evidence of the receipt by the applicable Note Parties of such notice; and (3) if required by Flood Insurance Regulations, evidence of required flood insurance.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No MIRE Event may be closed, without the consent of the Requisite Holders, until the date that is, (A) if the Mortgage relating to all Mortgaged Properties contains standard exclusionary language with respect to Improved Mortgaged Property, the date of such MIRE Event or (B) if the Mortgage relating to all Mortgaged Properties does not contain standard exclusionary language with respect to Improved Mortgaged Property, thirty (30) days after the Agent (acting at the direction of the Requisite Holders) has delivered to the Holders the following documents in respect of such real property: (1) a completed flood hazard determination from a third party vendor; (2) if such real property is located in a "special flood hazard area", (I) a notification to the applicable Note Parties of that fact and (if applicable) notification to the applicable Note Parties that flood insurance coverage is not available and (II) evidence of the receipt by the applicable Note Parties of such notice; and (3) if required by Flood Insurance Regulations, evidence of required flood insurance.

**Section 6.14.** <u>ERISA Compliance</u>. The Note Parties will promptly furnish and will cause the Restricted Subsidiaries to promptly furnish to the Holders if specifically requested in writing by any Holder, promptly after the filing thereof with the United States Secretary of Labor or the Internal Revenue Service, copies of each annual report (Form 5500 series) with respect to each Plan sponsored by the Issuer or a Restricted Subsidiary or any trust created thereunder.

**Section 6.15.** <u>Commodity Exchange Act Keepwell Provisions</u>. The Note Parties hereby guarantees the payment and performance of all of the Obligations of each Note Party (other than the Issuer) and absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Note Party (other than the Issuer) in order for such Note Party to honor its obligations under its respective Guaranty Agreement including obligations with respect to Swap Agreements (<u>provided</u>, <u>however</u>, that the Issuer shall only be liable under this <u>Section 6.15</u> for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this <u>Section 6.15</u>, or otherwise under this Agreement or any Note Document, as it relates to such other Note Parties, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of the Note Parties under this <u>Section 6.15</u> shall remain in full force and effect until Payment in Full. The Note Parties intend that this <u>Section 6.15</u> constitute, and this <u>Section 6.15</u> shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each other Note Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

**Section 6.16.** <u>Deposit Accounts and Securities Accounts</u>. Subject to <u>Section 6.19</u>, each of the Issuer and the other Note Parties shall (at its own expense) cause each of its Deposit Accounts, each of its Commodity Accounts and each of its Securities Accounts to be subject to a Control Agreement; <u>provided</u>, no such Control Agreement shall be required for Excluded Accounts.

**Section 6.17.** <u>Use of Proceeds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The proceeds of the Notes will be used for the purposes set forth in <u>Section 2.04</u>, and not, for the avoidance of doubt, any Restricted Payment, any return of capital to the Issuer's Equity Interest holders or any other distribution. No part of the proceeds of the Notes will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties shall not use, and the Note Parties shall procure that their Subsidiaries and their and their respective directors, officers, employees and agents shall not use, the proceeds of the Notes (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, to the extent that such activities, businesses or transaction would be prohibited by Sanctions if conducted by a corporation incorporated in the U.S. or the European Union or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

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**Section 6.18.** <u>Swap Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or prior to the Closing Date the Note Parties shall enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Closing Date, seventy-five percent (75%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties shall prior to the end of each Fiscal Quarter enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the end of the applicable Fiscal Quarter, sixty-five percent (65%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of (i) gas and (ii) at all times when the Note Parties are producing more than 200 net barrels of oil per day, oil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or prior to the Closing Date the Note Parties shall enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Closing Date, fifty percent (50%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of Appalachia Gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Note Parties shall prior to the end of each Fiscal Quarter enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the end of the applicable Fiscal Quarter, forty percent (40%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of Appalachia Gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) On or prior to the Second Amendment Effective Date, the Second Amendment Incremental Note Holders shall have received evidence satisfactory to them that as of the Second Amendment Effective Date, the Note Parties shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) have entered into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Second Amendment Effective Date, seventy-five percent (75%) of the reasonably anticipated projected production from the Acquired PHX Assets and Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the Second Amendment Reserve Report and the most recently delivered Reserve Report pursuant to the terms of this Agreement) of gas; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) have entered into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an approved counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Second Amendment Effective Date, fifty percent (50%) of the reasonably anticipated projected production from the Acquired PHX Assets and Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the Second Amendment Reserve Report and the most recently delivered Reserve Report pursuant to the terms of this Agreement) of Appalachia Gas.

**Section 6.19**. <u>Post-Closing Covenant</u>. Within thirty (30) days of the Closing Date (or such later date with the consent of the Requisite Holders in their sole discretion), the Agent and the Holders shall have received (a) a Mortgage encumbering each Mortgaged Property in favor of the Collateral Agent, duly executed and acknowledged by each Note Party that is the owner of or holder of any interest in such Mortgaged Property, and otherwise in form for recording in the recording office of each applicable jurisdiction where each such Mortgaged Property is situated and that will, when properly recorded (or when the applicable financing statements related thereto are properly filed or such other actions needed to perfect are taken) create a valid, perfected first priority security interest (after giving effect to Excepted Liens identified in <u>clauses (a)</u> through <u>(d)</u>, <u>(f)</u> and <u>(i)</u> of the definition thereof, but subject to the provisos at the end of such definition) on at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the Initial Reserve Report and Acquired Assets Reserve Report on a consolidated basis, (b) customary legal opinions of local counsel for the relevant Note Parties in the jurisdiction where such Mortgaged Property is located and (c) Control Agreements for each of the Note Parties' Deposit Accounts, Commodity Accounts and Securities Accounts required to be delivered pursuant to <u>Section 6.16</u>.

**Section 6.20.** <u>Minimum Liquidity</u>. On the Second Amendment Effective Date, after giving effect to the transactions in connection with the Specified PHX Merger the Issuer and its Restricted Subsidiaries shall have Unrestricted Cash in an amount equal to or greater than $4,000,000.

<u>**Section 6.21.**</u> <u>Upstreaming of Cash. Following the effective date of the applicable Conversion</u> <u>Notice until the date the applicable WH DST becomes a wholly-owned Subsidiary of the applicable WH OP or another Note Party in accordance with the terms of Article 10 (or an article substantially similar to Article 10 of the Initial Trust Agreement) of the applicable Trust Agreement, each WH Depositor shall have received (i) all cash received from its associated WH DST pursuant to such WH Depositor's beneficial ownership, including via class 2 beneficial interest, in such WH DST, and (ii) all cash received from the redemptions of such WH Depositor's class 2 beneficial interest in its associated WH DST after paying reasonable and necessary costs of the applicable offering and sale of trust interests (not to exceed fifteen percent (15%) of the purchase price of class 1 beneficial interests in such WH DST as specified in the applicable DST PPM).</u>

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**ARTICLE VII** 

**NEGATIVE COVENANTS** 

Each Note Party covenants and agrees with the Agents and each of the Holders that, until Payment in Full, each Note Party will not, and will cause its Subsidiaries not to:

**Section 7.01.** <u>Financial Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Consolidated Total Net Leverage Ratio</u>. The Issuer will not, (i) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on December 31, 2024) permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 3.50 to 1.00, (ii) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on June 30, 2025) permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 4.00 to 1.00, (iii) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on March 31, 2026), permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 3.50 to 1.00 and (iv) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on March 31, 2027), permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 3.25 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Asset Coverage Ratio</u>. The Issuer will not permit the Asset Coverage Ratio (determined by reference to the most recently delivered Reserve Report on a Pro Forma Basis) (i) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending December 31, 2024) to be less than 1.00 to 1.00 and (ii) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on March 31, 2027) to be less than 1.10 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Right to Cure</u>. In the event the Issuer fails to comply with the requirements of <u>Sections 7.01(a)</u> or <u>7.01(b)</u>, beginning on the first date after the last day of the Fiscal Quarter for which the financial covenants in <u>Sections 7.01(a)</u> or <u>7.01(b)</u> are being tested, until the expiration of the tenth Business Day subsequent to the date the compliance certificate for calculating the Consolidated Total Net Leverage Ratio and the Asset Coverage Ratio is required to be delivered pursuant to <u>Section 6.01(c)</u> (the "**Cure Period**"), the Issuer shall be permitted to cure such failure to comply by requesting that the Consolidated Total Net Leverage Ratio and/or the Asset Coverage Ratio be recalculated by reducing the Issuer's Total Net Debt as the result of a prepayment of the Notes in accordance with <u>Section 2.09(a)</u> for the Fiscal Quarter most recently ended by an amount equal to the proceeds received by the Issuer from a Specified Equity Contribution during a Cure Period (such amount, with respect to any Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default, a "**Cure Amount**"); <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Issuer delivers written notice to the Agent (for delivery to the Holders) on or prior to the date of a timely delivered certificate required by <u>Section 6.01(c)</u> that it has elected to cure the failure to comply and clearly setting forth such Specified Equity Contribution in the computation required by Section 6.01(c)(ii);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the amount of the Cure Amount shall not be greater than the amount required to cause the Issuer to be in compliance with Section 7.01(a) or <u>7.01(b)</u>, as applicable, and a Cure Amount may be applied to more than one financial covenant during the same Cure Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) any such reduction in the Issuer's Total Net Debt shall be taken into account in calculating the Consolidated Total Net Leverage Ratio for the purpose of determining compliance or noncompliance with <u>Section 7.01(a)</u> of the last day of any Rolling Period that includes the last Fiscal Quarter of the four (4) quarter period with respect to which such cure right was exercised; and (B) any such reduction in the Issuer's Total Net Debt taken into account in calculating the Asset Coverage Ratio shall only be applied for such single quarterly testing of the Asset Coverage Ratio, in each case, pursuant to this <u>Section 7.01(c)</u>, and in each case shall be applied solely for the purpose of determining compliance or non-compliance with <u>Section 7.01(a)</u>

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and/or <u>7.01(b)</u> as of the last day of any Rolling Period that includes such Fiscal Quarter or as of the last day of such Fiscal Quarter, as applicable, and not for any other purpose under any Note Document (including any determination of pro forma compliance with the Consolidated Total Net Leverage Ratio or Asset Coverage Ratio for the purposes of making any Restricted Payment or any other purpose (even if the proceeds of any Specified Equity Contribution are actually used to reduce Debt, including in connection with any Cure Amount applied to cure the Asset Coverage Ratio or the Consolidated Total Net Leverage Ratio));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Issuer may not cure any Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default by an equity cure more than (A) two (2) times during any period of four (4) consecutive Fiscal Quarters or (B) five (5) times prior to the Maturity Date (<u>provided</u> that, if the Issuer exercises its cure right prior to the date financial statements are required to be delivered for a relevant Fiscal Quarter solely with respect to an anticipated Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default and the Cure Amount associated therewith is insufficient to cure a Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default with respect to such Fiscal Quarter, any subsequent exercise of a cure right prior to the expiration of the applicable Cure Period to "top-up" such Cure Amount shall not count as an additional exercise of the cure right); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If after giving effect to the foregoing recalculations, the Issuer would then be in compliance with <u>Sections 7.01(a)</u> and/or <u>7.01(b)</u>, the Issuer shall be deemed to have satisfied the requirements of <u>Sections 7.01(a)</u> and <u>7.01(b)</u> as of the relevant earlier required date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable Event of Default under any such covenant that had occurred shall be deemed cured for the purpose of this Agreement and the other Note Documents.

If the Issuer has certified in writing to the Agents and Holders that it will provide a Specified Equity Contribution to cure each Event of Default having occurred under <u>Sections 7.01(a)</u> or <u>7.01(b)</u> for such Cure Period, neither the Agents nor any Holder shall exercise the right to accelerate the Obligations or terminate the Commitments and none of Agents, any Holder or any Secured Party shall exercise any right to foreclose on or take possession of the Collateral or exercise any other remedy pursuant to <u>Section 9.01</u>, the other Note Documents or applicable law prior to the end of the applicable Cure Period solely on the basis of an Event of Default having occurred and continuing under <u>Sections 7.01(a)</u> or <u>7.01(b)</u>; <u>provided</u> that, for avoidance of doubt, such an Event of Default shall be understood to have occurred and be continuing until cured in accordance with and in the time frame permitted by this <u>Section 7.01(c)</u>.

**Section 7.02**. <u>Debt</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, incur, create, assume or suffer to exist any Debt, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Notes or other Obligations arising under the Note Documents or any guaranty of or suretyship arrangement for the Notes or other Obligations arising under the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Debt under Finance Leases and Purchase Money Debt not to exceed $500,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Debt associated with bonds, guarantees, letters of credit or surety obligations, in each case required by Governmental Requirements or third parties incurred in the ordinary course of business, in each case in connection with the operation of the Oil and Gas Properties and not in connection with money borrowed;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) intercompany Debt between the Note Parties or between Restricted Subsidiaries to the extent permitted by <u>Section 7.05(d)</u>; <u>provided</u> that such Debt is not held, assigned, transferred, negotiated or pledged to any Person other than the Note Parties, and, <u>provided</u>, <u>further</u>, that any such Debt owed by either the Issuer or a Guarantor shall be subordinated to the Obligations on terms set forth in the Guaranty Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) endorsements of negotiable instruments for collection in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Debt constituting a guarantee by any Note Party of any Debt incurred by another Note Party so long as the incurrence of such Debt by such other Note Party is otherwise permitted by this <u>Section 7.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Debt arising under (i) Swap Agreements permitted by <u>Section 7.13</u> and (ii) customary bank products incurred in the ordinary course of business of the Issuer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Debt owed pursuant to any Demand Note in an aggregate principal amount for all such Demand Notes not to exceed $1,500,000; and</u>

(h<u>i</u>) other additional unsecured Debt (excluding any Debt set forth in <u>clause (a)</u> of the definition thereof) in an aggregate outstanding principal amount not to exceed $1,000,000; <u>provided</u> that no Indebtedness incurred, created, assumed or suffered to exist with respect to WhiteHawk – Equity Holdings, LP<u>, any WH Master Tenant or any WH DST</u> shall be permitted under this <u>Section 7.02(h)</u>.

**Section 7.03**. <u>Liens</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, create, incur, assume or permit to exist any Lien on any of its Properties (now owned or hereafter acquired), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens securing the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Excepted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens in respect of Debt permitted by <u>Section 7.02(b)</u>, but only to the Property under lease or the Property purchased, constructed or improved with such Debt; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) other Liens affecting property or assets of the Note Parties or any of their Restricted Subsidiaries securing obligations in an aggregate principal amount outstanding not to exceed $1,000,000.

Notwithstanding anything to the contrary in any Note Documents, (a) none of the Liens permitted pursuant to this <u>Section 7.03</u> (other than Excepted Liens and Liens securing the Notes) may at any time attach to any Oil and Gas Properties of the Note Parties and their Restricted Subsidiaries, (b) none of the Liens permitted pursuant to this <u>Section 7.03</u> (other than Liens permitted pursuant to this <u>Section 7.03</u> which have priority by operation of Law) shall be superior to the Lien of the Collateral Agent on any mineral interests and mineral royalty interests and similar holdings of the Note Parties and their Restricted Subsidiaries and (c) no intent to subordinate the first priority status afforded by the Liens granted in favor of the Collateral Agent (for the benefit of the Secured Parties, as provided in the Collateral Documents) is to be hereby implied or expressed by the permitted existence of the Liens permitted pursuant to this <u>Section 7.03</u>.

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**Section 7.04.** <u>Dividends and Distributions</u>. The Note Parties will not, and will not permit any of their Restricted Subsidiaries to, declare or make, directly or indirectly, any Restricted Payment, return any capital to its Equity Interest holders, or make any distribution of its Property to its Equity Interest holders, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the proviso set forth in the definition of "Monthly Common Equity Dividends", the Issuer may declare and pay dividends with respect to its common Equity Interests payable solely in additional shares of its common Equity Interests (other than Disqualified Capital Stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Restricted Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to (x) no Default or Event of Default continuing or resulting from such Restricted Payment, (y) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (z) the Issuer being in pro forma compliance with <u>Article VI</u> and <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) during Distribution Period A for any "Applicable Distribution Period" as set forth in <u>Appendix C</u>, prior to the "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first*, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.75 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.05 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Monthly Common Equity Dividends and Monthly Preferred Equity Dividends to the holders of its Equity Interests, (II) pay AUM Fees and/or Dividend Incentive Fees (clauses (I) and (II), collectively, "**Primary Distributions**") and (III) make Specified Period A Equity Redemptions with Distributable Free Cash Flow only and (B) *second*, in the event Distributable Free Cash Flow is positive following the application of <u>Section 7.04(c)(i)(A)</u>, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.00 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.20 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests with Distributable Free Cash Flow only;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) during Distribution Period B for any "Applicable Distribution Period" as set forth in <u>Appendix C</u> prior to "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first*, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.25 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.10 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Primary Distributions and/or Specified Period B/C Level II Equity Redemptions with Distributable Free Cash Flow only and (B) *second*, in the event Distributable Free Cash Flow is positive following the application thereof under <u>Section 7.04(c)(ii)(A)</u>, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.75 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.30 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make Specified Period B/C Level II Equity Redemptions and make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests, in each case with Distributable Free Cash Flow only; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) during Distribution Period C for any "Applicable Distribution Period" as set forth in <u>Appendix C</u> prior to "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first*, further subject to the Issuer being in compliance with (1) a Consolidated

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Total Net Leverage Ratio of less than 2.75 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.15 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Primary Distributions and/or Specified Period B/C Level II Equity Redemptions with Distributable Free Cash Flow only, (B) *second*, in the event Distributable Free Cash Flow is positive following the application thereof under <u>Section 7.04(c)(iii)(A)</u>, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00 and (3) the aggregate principal amount of Notes outstanding as of such date of distribution is equal to or less than the Target Debt Balance as of such date of distribution, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make Specified Period B/C Level II Equity Redemptions with Distributable Free Cash Flow only and make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests, in each case with Distributable Free Cash Flow only;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to (i) no Default or Event of Default continuing or resulting from such Restricted Payment, (ii) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (iii) the Issuer being in pro forma compliance with <u>Article VI</u> and <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01</u>), Restricted Payments set forth on <u>Schedule 7.04</u> (the "<u>Specified RPs</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) During Distribution Period B, the Issuer may make Redemptions of Series C Preferred Shares in an aggregate amount not to exceed $20,000,000 with the proceeds of common equity or Series B Preferred Share issuances made following the First Amendment Effective Date (the "**Specified Issuance Proceeds**") and applied towards such Redemptions of Series C Preferred Shares within thirty (30) days of any such common equity or Series B Preferred Share issuances subject to (i) no Default or Event of Default continuing or resulting from such Restricted Payment, (ii) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (iii) the Issuer being in pro forma compliance with <u>Article VI</u> and, subject to <u>clause (iv)</u> below, <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01(o)</u> and <u>Section 6.01(u)</u>) and (iv) the Issuer being in compliance on a Pro Forma Basis with (A) a Consolidated Total Net Leverage Ratio of less than 3.25 to 1.00 and (B) an Asset Coverage Ratio of greater than 1.10 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) During Distribution Period C, the Issuer may make Redemptions of Series C Preferred Shares in an aggregate amount not to exceed $20,000,000 with Specified Issuance Proceeds and applied towards such Redemptions of Series C Preferred Shares within thirty (30) days of any such common equity or Series B Preferred Share issuances subject to (i) no Default or Event of Default continuing or resulting from such Restricted Payment, (ii) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (iii) the Issuer being in pro forma compliance with <u>Article VI</u> and, subject to <u>clause (iv)</u> below, <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01(o)</u> and <u>Section 6.01(u)</u>) and (iv) the Issuer being in compliance on a Pro Forma Basis with (A) a Consolidated Total Net Leverage Ratio of less than 2.75 to 1.00 and (B) an Asset Coverage Ratio of greater than 1.15 to 1.00<u>.</u>

Notwithstanding anything to the contrary, any Restricted Payment declared, made or agreed to be declared or made in reliance on clause <u>(c)</u> of this <u>Section 7.04</u> shall be made with Distributable Free Cash Flow only.

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Notwithstanding anything to the contrary contained herein or any other Note Document, (a) no Restricted Payment shall be made under this <u>Section 7.04</u> to any Unrestricted Subsidiary and<u>or to any WH Master Tenant,</u> (b) Restricted Payments to WhiteHawk – Equity Holdings, LP shall <u>not</u> be permitted except, to the extent such Investment constitutes a Restricted Payment, Investments made pursuant to Section 7.05(k) <u>and (c) Restricted Payments to any WH DST shall not be permitted except, to the extent</u> <u>such Investment constitutes a Restricted Payment, Investments made pursuant to Section 7.05(n)</u>.

**Section 7.05.** <u>Investments and Advances</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, make or permit to remain outstanding any Investments in or to any Person, except that the foregoing restriction shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investments as of the Closing Date which are disclosed to the Holders in <u>Schedule 7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) accounts receivable arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Investments in Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investments (i) made by the Issuer in or to the Guarantors (including any new Restricted Subsidiary that becomes a Guarantor in compliance herewith substantially contemporaneously with such Investment being made), (ii) made by any Guarantor in or to the Issuer or any other Guarantor and (iii) made by any Restricted Subsidiary in or to the Issuer or the Guarantors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Investments in stock, obligations or securities received in settlement of debts arising from Investments permitted under this <u>Section 7.05</u> and accounts receivable owing to the Issuer or any Restricted Subsidiary as a result of a bankruptcy or other insolvency proceeding of the obligor in respect of such debts or upon the enforcement of any Lien in favor of the Issuer or any of its Restricted Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Investments pursuant to Swap Agreements otherwise permitted under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Investments consisting of non-cash consideration received in connection with dispositions or transfers permitted pursuant to <u>Section 7.09</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Subject to (x) no Default or Event of Default continuing or resulting from such Investment, (y) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (z) the Issuer being in pro forma compliance with <u>Article VI</u> and <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01(o)</u> and <u>Section 6.01(u)</u>), in the event Distributable Free Cash Flow is positive following the application thereof under (i) <u>Section 7.04(c)(i)(A)</u> and <u>Section 7.04(c)(i)(B)</u> during Distribution Period A, (ii) <u>Section 7.04(c)(ii)(A)</u> and <u>Section 7.04(c)(ii)(B)</u> during Distribution Period B or (iii) <u>Section 7.04(c)(iii)(A)</u> and <u>Section 7.04(c)(iii)(B)</u> during Distribution Period C and the aggregate principal amount of Notes outstanding as of such date of distribution is equal to or less than the Target Debt Balance as of such date of distribution, as applicable, make Investments constituting the acquisition of (x) Oil & Gas Properties or (y) Equity Interests of any entity with no material assets other than Oil and Gas Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Investments to the extent constituting Debt, distributions or dispositions permitted under <u>Sections 7.02</u>, <u>7.04</u> or <u>7.09</u>, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) acquisitions of Oil & Gas Properties so long as (i) the Issuer is in pro forma compliance with <u>Section 7.01</u> and (ii) such acquisitions are funded solely with the proceeds of common equity issuances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Investments in an aggregate amount not to exceed $500,000;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the Specified SJM Acquisition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the Specified PHX Merger.<u>; and</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(n)</u> <u>so long as no Event of Default exists or would result as a result of such Investment,</u> <u>Investments by a WH Depositor in the applicable WH DST in the form of cash for the purposes of such WH DST acquiring Oil and Gas Properties after the Third Amendment Effective Date, provided that the aggregate amount of Investments made pursuant to this Section 7.05(n) shall not exceed during the term of this Agreement the sum of (x) $25,000,000 plus (y) the Dollar amount of any capital contributions received by WH Depositors pursuant to a DST Sell-Down (net of any fees, costs and expenses owed or paid by WH Depositor or any other Note Party in connection with such DST Sell-Down) as certified</u><u> </u><u>6.01(v)(i); provided that the sum of clauses (x) and (y) above shall not in any event exceed $25,000,000.</u>

Notwithstanding anything to the contrary contained herein or any other Note Document, (a) no Investments in Unrestricted Subsidiaries <u>or any WH Master Tenant</u> shall be permitted under this <u>Section</u><u> </u><u>7.05</u> and<u>,</u> (b) no Investments in WhiteHawk – Equity Holdings, LP shall be permitted except for pursuant to Section 7.05(k) <u>and (c) no Investments in any WH DST shall be permitted except for pursuant to</u> <u>Section 7.05(n)</u>.

**Section 7.06.** <u>Nature of Business; Wholly-Owned Subsidiaries; No International Operations</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, (a) allow any material change to be made in the character of its business as owners of minerals interests and mineral royalty interests and other non-operating interests in upstream Oil and Gas Properties <u>or with respect to any WH Master Tenant and any WH DST, the character of its business conducting activities facilitating like kind exchanges under Section 1031 of the Code or the provision of services in connection therewith</u>, or (b) allow any Guarantor to cease to be a Wholly-Owned Subsidiary of the Issuer other than as a result of a sale of all of the Equity Interests of such Guarantor or a merger of such Guarantor permitted under <u>Section 7.08</u> or 7.09, <u>provided, that notwithstanding anything to the contrary contained in this Section</u> <u>7.06(b), the DST Sell-Down with respect to WH DSTs shall be permitted</u>. Without limiting the foregoing, the Note Parties and their Restricted Subsidiaries shall not permit, including after giving effect to any disposition, Investment or acquisition permitted hereunder, the portion of the Total PDP PV-10 Value of their Oil and Gas Properties directly attributable to the ownership of the Note Parties and their Restricted Subsidiaries in mineral interests and mineral royalty interests to be less than 95% of the Total PDP PV-10 Value of the Note Parties' and their Restricted Subsidiaries' Oil and Gas Properties, and the remaining 5% or less of the Total PDP PV-10 Value of their Oil and Gas Properties shall be comprised of non-operating interests in upstream Oil and Gas Properties; <u>provided</u> that, solely for purposes of this <u>Section 7.06</u>, "Total PDP PV-10 Value" shall include the book value of any Oil and Gas Property that does not have PV-10 Value. From and after the Closing Date, the Issuer and its Restricted Subsidiaries will not acquire or make any other expenditure (whether such expenditure is capital, operating or otherwise) in or related to, any Oil and Gas Properties not located within the geographical boundaries of and subject to the jurisdiction of the United States of America. The Note Parties and their Restricted Subsidiaries shall at all times remain organized under the laws of the United States of America or any State thereof or the District of Columbia.

**Section 7.07**. <u>ERISA Compliance</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) engage in, or permit any ERISA Affiliate to engage in, any transaction in connection with which the Note Parties, a Restricted Subsidiary or any ERISA Affiliate could reasonably be expected to be subjected to either a civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of pursuant to a certificate of a Financial Officer of a WH Depositor delivered pursuant to Section Section 502 of ERISA or a tax imposed by Chapter 43 of Subtitle D of the Code with respect to a Plan that, in either case, could reasonably be expected to result in a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) fail to make, or permit any ERISA Affiliate to fail to make, full payment when due of all amounts which, under the provisions of any Plan, agreement relating thereto or applicable law, the Note Parties, a Restricted Subsidiary or any ERISA Affiliate is required to pay as contributions thereto, if a Material Adverse Effect would result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) contribute to or assume an obligation to contribute to any employee welfare benefit plan, as defined in Section 3(1) of ERISA that provides benefits to former employees of such entities other than as required by applicable law and that may not be terminated by such entities in their sole discretion at any time without resulting in a Material Adverse Effect.

**Section 7.08**. <u>Mergers, Etc.</u> The Note Parties will not, and will not permit any Restricted Subsidiary to, merge into or with or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of its Property to any other Person (whether now owned or hereafter acquired) (any such transaction, a "Consolidation"), or liquidate or dissolve; <u>provided</u> that (a) any Restricted Subsidiary may participate in a Consolidation with the Issuer or any Guarantor (<u>provided</u> that the Issuer shall be the continuing or surviving entity in any such transaction involving the Issuer, and a Guarantor shall be the continuing or surviving entity of any such transaction not involving the Issuer), (b) any Guarantor may participate in a Consolidation with another Guarantor, (c) any Restricted Subsidiary that is not a Guarantor may consolidated into any other Restricted Subsidiary that is not a Guarantor or (d) any Restricted Subsidiary may liquidate or dissolve so long as its assets (if any) are distributed to the Issuer or another Guarantor prior to such liquidation or dissolution.

**Section 7.09.** <u>Sale of Properties and Termination of Swap Agreements</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, dispose, sell, assign, farm-out, convey or otherwise transfer any Property or to terminate or otherwise monetize any Swap Agreement in respect of commodities except for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sale of Hydrocarbons in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) farm-outs of undeveloped acreage to which no proved reserves are attributed in the most recently delivered Reserve Report and assignments in connection with such farmouts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the sale or transfer of equipment that is no longer necessary for the business of the Note Parties or such Restricted Subsidiary or that is replaced by equipment of at least comparable value and use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the sale or other disposition (including Casualty Events resulting in the transfer of any Oil and Gas Property or any interest therein) of (i) any Oil and Gas Property or any interest therein or any Restricted Subsidiary owning Oil and Gas Properties and (ii) the termination or monetization of any Swap Agreement in respect of commodities; <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) no Event of Default exists or results from such sale or disposition of Property or the termination or monetization of any Swap Agreement (after giving effect to the substantially concurrent use of proceeds therefrom) and (B) all such sales or other dispositions are for Fair Market Value;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) not less than one hundred percent (100%) of the consideration received in respect of such sale or other disposition shall be cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) it is understood that <u>Section 7.09(d)</u> shall not impair the obligation to satisfy <u>Section 6.20</u> at all times, including the obligation to maintain the Swap Agreements entered into pursuant thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the consideration received in respect of such sale or other disposition shall be for Fair Market Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no Event of Default exists or results from such sale or disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if any such disposition is of a Restricted Subsidiary owning Oil and Gas Properties, such disposition shall include all the Equity Interests of such Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) non-exclusive licenses of intellectual property, none of which, in the aggregate, materially impair the operation of the business of the Note Parties or any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the abandonment of intellectual property that is no longer material to the operation of the business of the Note Parties or any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Equity Interests of any Restricted Subsidiary of the Note Parties transferred to any Note Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) assets of any Note Party to another Note Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any disposition in the form of a Restricted Payment permitted pursuant to <u>Section 7.04</u> or an Investment permitted pursuant to <u>Section 7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the termination or unwind of any Swap Agreements in respect of commodities solely to the extent required to comply with <u>Section 7.13(d)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>to the extent constituting a disposition, so long as no Event of Default exists or would result from such disposition, an Investment permitted pursuant to Section 7.05(n); and</u>

(k<u>l</u>) dispositions having a fair market value not to exceed $500,000 in the aggregate.

Notwithstanding anything to the contrary herein or any other Note Document, (x) no sale, arrangement, farm-out, conveyance or other transfer shall be permitted under this <u>Section 7.09</u> to any Unrestricted Subsidiary and<u>,</u> (y) the Note Parties will not, and will not permit any Restricted Subsidiary, to sell, grant, issue or otherwise enter into any volumetric production payments, dollar-denominated production payment (or any other "VPP" financing), "drillcos" and other similar synthetic financings, or otherwise dispose of or sell Hydrocarbons in place that would require the Note Parties or their Restricted Subsidiaries to deliver Hydrocarbons at some future time without then or thereafter receiving full prepayment therefor <u>and (z) no sale, disposition, assignment, farm-out, conveyance or other transfer, directly or indirectly, to any WH DST shall be permitted except for pursuant to Section 7.09(k)</u>.

**Section 7.10.** <u>Transactions with Affiliates</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of Property or the rendering of any service, with any Affiliate (other than transactions between the Issuer and any Guarantor and transactions between Guarantors) unless such transactions are not prohibited under this Agreement and are upon fair and reasonable terms no less favorable to it than it would obtain in a comparable arm's length transaction with a Person not an Affiliate provided that the foregoing restrictions shall not apply to:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) equity issuances, distributions or other acquisitions or retirements of Equity Interests by the Issuer to the extent permitted by <u>Section 7.04</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the payment of expenses and management fees pursuant to the Administrative Services Agreement and Investment Management Agreement.

**Section 7.11.** <u>Subsidiaries</u>. No Note Party or its Subsidiaries shall (a) form or acquire any Subsidiary, except any wholly-owned Domestic Subsidiary subject to compliance with <u>Section 6.11(c)</u>, or (b) enter into any partnership, joint venture or similar arrangement other than as set forth on Schedule 7.11.<u>; provided, that (x) notwithstanding anything to the contrary contained in this Section 7.11, the applicable DST Sell-Down with respect to a WH DST shall be permitted and (y) no WH Master Tenant nor any WH DST shall form or acquire any Subsidiary.</u>

**Section 7.12.** <u>Negative Pledge Agreements; Dividend Restrictions</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, create, incur, assume or suffer to exist any contract, agreement or understanding which in any way prohibits or restricts the granting, conveying, creation or imposition of any Lien on any of their Property in favor of the Collateral Agent and the Secured Parties or restricts any Restricted Subsidiary from paying dividends or making distributions to any Note Party, or which requires the consent of or notice to other Persons in connection therewith<u>, or other than pursuant to the terms of the DST Agreements, restricts any WH DST from transferring Property to the Issuer and its Subsidiaries</u>, other than (a) this Agreement and the Collateral Documents, (b) with respect to the ability of a Restricted Subsidiary to make dividends or distributions to a Note Party, agreements or arrangements evidencing Excepted Liens permitted by <u>Section 7.03</u> to the extent such restriction applies only to the property subject to such Lien, (c) customary restrictions and conditions with respect to the sale or disposition of Property or Equity Interests permitted under <u>Section 7.09</u> pending the consummation of such sale or disposition, (d) with respect to the ability of a Restricted Subsidiary to make dividends or distributions to a Note Party, any leases or licenses or similar contracts as they affect any Property (other than Oil and Gas Properties) subject to such lease or license and customary prohibitions on assignment contained in software license agreements, (e) customary provisions restricting subletting or assignment of any lease governing a leasehold interest (other than any Oil and Gas Property) of the Issuer or any Restricted Subsidiary, (f) as it relates to the assets that are the subject thereof, purchase money obligations for property acquired in the ordinary course of business and obligations under Finance Leases that impose restrictions on transferring the property so acquired, (g) prohibitions or restrictions imposed by any Governmental Requirement, and encumbrances or restrictions imposed by any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings referred to in <u>clauses (a)</u> through <u>(g)</u> above; <u>provided</u> that such amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings are no more restrictive in any material respect with respect to such encumbrance and other restrictions taken as a whole than those prior to such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing.

**Section 7.13.** <u>Swap Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will not, and will not permit any Restricted Subsidiary to, enter into any Swap Agreements with any Person other than:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Swap Agreements entered into Not for Speculative Purposes by the Note Parties with an Approved Counterparty in respect of commodities (at market prices) the net notional volumes for which (when aggregated with other commodity Swap Agreements then in effect, other than puts, floors and basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date the latest hedging transaction is entered into under a Swap Agreement, 85% of the reasonably anticipated Hydrocarbon production of oil, gas and natural gas liquids, calculated separately, from the Note Parties' total Proved Reserves for the sixty (60) month period from the date of creation of such hedging arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Swap Agreements entered into Not for Speculative Purposes by the Note Parties in respect of interest rates with an Approved Counterparty, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Swap Agreements effectively converting interest rates from fixed to floating, the notional amounts of which (when aggregated with all other Swap Agreements of the Note Parties and their Restricted Subsidiaries then in effect effectively converting interest rates from fixed to floating) do not exceed 75% of the anticipated outstanding principal amount of the Note Parties' Debt for borrowed money which bears interest at a fixed rate, and which Swap Agreements shall not, in any case, have a tenor beyond the maturity date of such Debt, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Swap Agreements effectively converting interest rates from floating to fixed, the notional amounts of which (when aggregated with all other Swap Agreements of the Note Parties and their Restricted Subsidiaries then in effect effectively converting interest rates from floating to fixed) do not exceed 75% of the anticipated outstanding principal amount of the Note Parties' Debt for borrowed money which bears interest at a floating rate, and which Swap Agreements shall not, in any case, have a tenor beyond the maturity date of such Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In no event shall any Swap Agreement contain any requirement, agreement or covenant for the Note Parties or any Restricted Subsidiary to post collateral, credit support (including in the form of letters of credit) or margin to secure their obligations under such Swap Agreement or to cover market exposures (other than pursuant to the Collateral Documents); for the avoidance of doubt, this <u>Section 7.13(b)</u> shall not prohibit the granting of security to secure the Secured Hedge Obligations pursuant to the Collateral Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of entering into or maintaining Swap Agreement trades or transactions under <u>Section 7.13(a)</u>, forecasts of reasonably anticipated production from the Note Parties' and their Restricted Subsidiaries' Oil and Gas Properties constituting Proved Reserves as set forth on the most recent Reserve Report delivered pursuant to the terms of this Agreement shall be revised to account for any increase or decrease therein anticipated because of information obtained by the Note Parties or any of their Restricted Subsidiaries and delivered to the Agent subsequent to the publication of such Reserve Report including the Note Parties' or any of their Restricted Subsidiaries' internal forecasts of production decline rates for existing wells and additions to or deletions from anticipated future production from new or existing wells and completed acquisitions coming on stream or failing to come on stream as well as completed dispositions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If, as of the last day of any calendar quarter, the notional volumes of all Swap Agreements then in effect in respect of commodities for such calendar quarter (other than the notional volumes of (x) puts, options, or floors with respect to which neither the Note Parties nor any Restricted Subsidiaries have any payment obligation other than premiums and other charges (it being understood that the payment of such obligations may be deferred but that the total amount of which are fixed and known at the time such transaction is entered into) and (y) basis differential swaps on volumes already hedged pursuant to other Swap Agreements for Hydrocarbons) exceed 100% of actual production of

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Hydrocarbons in such calendar quarter for oil, gas and natural gas liquids, calculated separately, then the Note Parties (i) shall promptly send notice to the Agent (for distribution to the Holders) and (ii) shall, within ten (10) Business Days of such determination, enter into offsetting Swap Agreements or terminate or unwind such Swap Agreements such that, at such time, future hedging volumes will not exceed 100% of reasonably anticipated projected production for the then-current and any succeeding calendar quarters for oil, gas and natural gas liquids, calculated separately.

**Section 7.14.** <u>Designation and Conversion of Restricted and Unrestricted Subsidiaries</u>. Notwithstanding anything to the contrary contained herein or any other Note Document, no Note Party may designate any Restricted Subsidiary, including a newly formed or newly acquired Subsidiary, as an Unrestricted Subsidiary.

**Section 7.15.** <u>Organizational Documents</u>. Neither the Issuer nor any Restricted Subsidiary shall amend, modify or change its Organizational Documents, including the operating agreement, in any manner materially adverse to the rights or interests of the Holders (it being understood that (a) any amendment, modification or change of Organizational Documents that would impair or restrict the Liens of the Secured Parties on the Equity Interests of such Persons or their value (including after foreclosure), or the ability of the Secured Parties to exercise their rights and remedies with respect thereto under the Collateral Documents and (b) any amendment, modification or change, or waiver or consent to Section 4(b), Section 5, Section 6 and any provision relating to the assignment or termination thereof of the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, (c) Section 5, Section 6(a) and Section 6(b) of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation and (d) Section 6.04 or any provision relating to the pledge of equity in the Issuer's bylaws, in each shall be materially adverse to the rights and interests of the Holders).

**Section 7.16.** <u>Changes in Fiscal Year</u>. The Note Parties shall not, and shall not permit any Restricted Subsidiary to have its Fiscal Year end on a date other than December 31 or change its method of determining Fiscal Quarters.

**Section 7.17.** <u>Amendments to Material Agreements</u>. Neither the Issuer nor any Restricted Subsidiary shall amend, modify or change, or waive or consent to an amendment or modification of any material provision to, the Investment Management Agreement and<u>,</u> the Administrative Services <u>Agreement or any DST</u> Agreement, in each case in any manner materially adverse to the rights or interests of the Holders (it being understood that any amendment, modification or change, or waiver or consent to <u>(x)</u> Sections 4(a), (b) and (c) of the Investment Management Agreement <u>or (y) Section 5.5, Article 7, Article 9 and Article 10 of the Initial Trust Agreement (and equivalent sections and articles of any other Trust Agreement)</u> shall be deemed materially adverse to the rights and interests of the Holders).

**Section 7.18.** <u>General and Administrative Costs</u>. The Note Parties shall not, and shall not permit any of their Restricted Subsidiaries to, make, directly or indirectly any payments in respect of General and Administrative Costs in any Fiscal Year other than cash payments which, when aggregated with all other General and Administrative Costs paid in cash by the Note Parties or any of the Restricted Subsidiaries during such Fiscal Year, do not exceed $4,500,000 in the aggregate; <u>provided</u> that, for the purposes of this <u>Section 7.18</u> only, (a) one-time transaction-related expenses incurred in connection with the First Amendment and (b) one-time Second Amendment Transaction Expenses, in each case, shall not constitute General and Administrative Costs.

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**ARTICLE VIII** 

**PASSIVE HOLDING COMPANY STATUS OF THE ISSUER** 

Commencing on the Closing Date and until Payment in Full, the Issuer covenants and agrees with the Holders that it will not create, incur, assume or suffer to exist any Debt other than the Obligations or Lien other than Liens securing the Obligations, nor will it engage at any time in any business or business activity or hold or own any Property other than (a) the ownership of Equity Interests in WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC, (b) performance of its obligations under and in connection with the Note Documents, (c) issuing, selling and redeeming its Equity Interests, (d) paying Taxes in the ordinary course of business, (e) holding directors' and shareholders' meetings, preparing corporate and similar records and other activities (including the ability to incur fees, costs and expenses relating to such maintenance) required to maintain its corporate or other legal structure or to participate in tax, accounting or other administrative matters as a member of the consolidated group of the Issuer and its Subsidiaries, (f) preparing reports to, and preparing and making notices to and filings with, Governmental Authorities and to its holders of Equity Interests, (g) receiving, and holding proceeds of, Restricted Payments from its Subsidiaries and distributing the proceeds thereof to the extent not prohibited by <u>Sections 7.04</u> and <u>7.10</u>, (h) activities required by Governmental Requirements and (i) activities incidental to the business or activities described in each foregoing clauses of this <u>Article VIII</u>. The Issuer shall at all times pledge all of the Equity Interests of WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC (and shall, if such Equity Interests are certificated deliver to the Collateral Agent original stock certificates evidencing the Equity Interests of WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC, together with appropriate undated stock powers for each certificate duly executed in blank by the Issuer).

**ARTICLE IX** 

**EVENTS OF DEFAULT; REMEDIES** 

**Section 9.01.** <u>Events of Default</u>. In case of the happening of any of the following events ("**Events of Default**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Note Parties shall fail to pay any principal of (or associated make-whole or premium on) any Note when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof, by acceleration or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Note Parties shall fail to pay any interest on any Note or any fee or any other amount (other than an amount referred to in <u>Section 9.01(a)</u>) payable under any Note Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any representation or warranty made or deemed made by or on behalf of the Note Parties or any Restricted Subsidiary in or in connection with any Note Document or any amendment or modification of any Note Document or waiver under such Note Document, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with any Note Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made (or if already qualified by materiality or Material Adverse Effect, incorrect in any respect when made or deemed made);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (i) the Note Parties or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in <u>Sections 6.01(k)</u>, <u>6.01(o)</u>, <u>6.01(u)</u>, <u>6.02</u>, <u>6.03</u> (solely in respect of the Issuer), <u>6.13</u>, <u>6.16</u>, <u>6.19</u>, or <u>Article VII</u> or (ii) the Issuer shall fail to observe or perform any covenant, condition or agreement contained in <u>Article VIII-A</u>;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Note Parties or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement (i) contained in <u>Section 6.11</u>, and such failure shall continue unremedied for a period of twenty-five (25) days or (ii) otherwise contained in this Agreement (other than those specified in <u>Sections 9.01(a)</u>, <u>9.01(b)</u>, <u>9.01(d)</u>, or <u>9.01(e)(i)</u>) or in any other Note Document to which it is a party, and such failure shall continue unremedied for a period of thirty (30) days, in each case after the earlier to occur (i) notice thereof from the Agent to the Issuer (which notice will be given at the request of any Holder) or (ii) a Responsible Officer of the Issuer or such Restricted Subsidiary otherwise becoming aware of such default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Note Parties or any Restricted Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Debt, when and as the same shall become due and payable and such failure continues beyond any applicable grace period set forth in such Material Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any event or condition occurs (including the termination of any Swap Agreement prior to its scheduled maturity as a result of an "Event of Default" or "Termination Event" (as such terms are defined in the relevant Swap Agreement)) that results in any Material Debt becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Debt or any trustee or agent on its or their behalf to cause any Material Debt to become due (other than by a regularly scheduled required prepayment), or to require the Redemption thereof or any offer to Redeem to be made in respect thereof, prior to its scheduled maturity or require the Note Parties or any Restricted Subsidiary to make an offer in respect thereof (other than any event requiring prepayment pursuant to customary asset sale or change of control provisions);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Note Parties or any Restricted Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Note Parties or any Restricted Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Note Party or any Restricted Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in <u>Section 9.01(h)</u>, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for a Note Party or any Restricted Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) (i) one (1) or more judgments or settlements (or order by a Governmental Authority) for the payment of money (as reduced by (x) insurance proceeds covering such settlements, judgments or orders which are received or as to which the relevant insurance carriers have been notified of, and have not disputed coverage and (y) the amount by which such liability is cash collateralized and bonded) in an aggregate amount in excess of $2,000,000 shall be rendered against any Note Party, any Restricted Subsidiary or any combination thereof, and (A) there shall be a period of thirty (30) consecutive days during which the execution of such judgment or order is not subject to an effective stay of enforcement, or (B) action is legally taken by a judgment creditor or judgment creditors or the applicable Governmental Authority to attach or levy upon any assets of a Note Party or any of its Restricted Subsidiaries to enforce any such judgment or order, or (ii) one (1) or more non-monetary judgments or orders shall be rendered against any Note Party or Restricted Subsidiary which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, and there shall be a period of thirty (30) consecutive days during which such judgment is not subject to an effective stay of enforcement, by reason of a pending appeal or otherwise;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Note Documents after delivery thereof shall for any reason, except to the extent permitted by the terms thereof, cease to be in full force and effect and valid, binding and enforceable in accordance with their terms against the Issuer or a Guarantor party thereto or shall be repudiated by any of them, or cease to create a valid and perfected first priority Lien in favor of the Collateral Agent on any material portion of the Collateral purported to be covered thereby, except to the extent permitted by the terms of this Agreement, or the Note Parties or any Restricted Subsidiary or any of their Affiliates shall so state or assert in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) a Change in Control shall occur and the Issuer fails to pay the Redemption Payment when due or otherwise consummate a redemption of the Notes as required by <u>Section 2.09(h)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) an ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in liability of the Note Parties and their Restricted Subsidiaries in an aggregate amount exceeding $2,000,000 that is not covered by independent third party insurance provided by insurers of the highest claims paying rating or financial strength as to which the insurer does not dispute coverage and is not subject to an insolvency proceeding;

then, and in every such event (other than an event with respect to a Note Party or its Subsidiaries described in <u>paragraph (h)</u> or <u>(i)</u> above), and at any time thereafter during the continuance of such event, the Agent shall, at the direction of the Requisite Holders, by notice to the Issuer, take either or both of the following actions, at the same or different times: (i) terminate the Commitments and thereupon the Commitments shall terminate immediately and (ii) declare the Notes then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), whereupon the principal of the Notes so declared to be due and payable, together with accrued interest thereon, any unpaid accrued fees, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, and all other liabilities of the Issuer or any other Note Party accrued hereunder and under any other Note Document, shall become due and payable immediately, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Issuer and the other Note Parties, anything contained herein or in any other Note Document to the contrary notwithstanding; and in any event with respect to any Note Party or its Subsidiaries described in <u>paragraph (h)</u> or <u>(i)</u> above, the Commitments shall automatically terminate and the principal of the Notes then outstanding, together with accrued interest thereon, any unpaid accrued fees, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, and all other liabilities of the Issuer or any other Note Party accrued hereunder and under any other Note Document, shall automatically become due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Issuer and the other Note Parties, anything contained herein or in any other Note Document to the contrary notwithstanding. In the case of the occurrence of an Event of Default, the Agents and the Holders will have all other rights and remedies available at law and equity. All proceeds realized from the liquidation or other disposition of Collateral or otherwise received after maturity of the Notes, whether by acceleration or otherwise, shall be applied in the order provided in <u>Section 2.11(f)</u>.

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**Section 9.02.** <u>Treatment of Make-Whole Amount and Prepayment Fee</u>. Without limiting the terms of the last paragraph of <u>Section 9.01</u>, it is understood and agreed that (a) if the Notes are accelerated or otherwise become due, in each case, in respect of any Event of Default (including, but not limited to, upon the occurrence of a bankruptcy or insolvency related event (including acceleration of claims by operation of law)) or (b) upon the occurrence of the Board of Directors (or similar Governing Body or any committee thereof) of any Note Party or of any Person having Control of the Issuer adopting any resolution or otherwise authorizing any action to approve any bankruptcy or insolvency related event (each of the foregoing in <u>clauses (a)</u> and <u>(b)</u> and as contemplated by the penultimate paragraph of this paragraph, a "Specified Event"), the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, that would have applied if, at the time the Notes are accelerated or otherwise become due, the Issuer had prepaid, repaid, Redeemed, refinanced, substituted or replaced all of the Notes as contemplated in <u>Section 2.08</u> and <u>2.11(g)</u> will also be automatically and immediately due and payable without further action or notice and the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or shall constitute part of the Obligations, in view of the impracticability and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of the Holders' damages as a result thereof. Any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee payable hereunder shall be presumed to be the liquidated damages (and not, for avoidance of doubt, unmatured interest or a penalty) sustained by the Holders as the result of such Specified Event and the Issuer and the other Note Parties agree that the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) and Prepayment Fee, as applicable, are reasonable under the circumstances currently existing. In the event that the Obligations are reinstated in connection with or following any Specified Event, it is understood and agreed that the Obligations shall include any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, payable in accordance with this <u>Section 9.02</u>. The Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, shall also be payable in the event the Obligations (and/or this Agreement) are satisfied or released by foreclosure (whether by power of judicial proceeding), deed in lieu of foreclosure or by any other similar means.

THE ISSUER AND EACH OTHER NOTE PARTY EXPRESSLY WAIVES (TO THE FULLEST EXTENT IT MAY LAWFULLY DO SO) THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW THAT PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING MAKE-WHOLE AMOUNT (<u>PLUS</u> ANY PREMIUM PAYABLE IN CONNECTION THEREWITH) OR PREPAYMENT FEE IN CONNECTION WITH ANY SUCH SPECIFIED EVENT.

The Issuer and each other Note Party expressly agrees (to the fullest extent that it may lawfully do so) that: (i) the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) and Prepayment Fee, as applicable, are reasonable and are the product of an arm's length transaction between sophisticated business people, ably represented by counsel; (ii) the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or shall be payable notwithstanding the then prevailing market rates at the time payment is made; (iii) there has been a course of conduct between the Holders and the Issuer and the other Note Parties giving specific consideration in this transaction for such agreement to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable; and (iv) the Issuer and each other Note Party shall each be estopped hereafter from claiming differently than as agreed to in this paragraph.

The Issuer and each other Note Party expressly acknowledges that its agreement to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, to the Holders as herein described is a material inducement to the Holders to provide the Commitments and purchase the Notes.

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**Section 9.03.** <u>Application of Funds</u>. All proceeds realized from the liquidation or other disposition of Collateral or otherwise received after maturity of the Notes, whether by acceleration or otherwise, shall be applied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to each of the Agent and the Collateral Agent in their capacities as such and Agent-related Indemnitee (including any costs and expenses related to foreclosure or realization upon, or protecting, Collateral);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section 11.03</u> under the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or other amount due and payable pursuant to <u>Section 2.11(g)</u> or <u>Section 9.02</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or other amount due and payable pursuant to <u>Section 2.11(g)</u> or <u>Section</u> <u>9.02</u> resulting from the payment of principal under <u>clause fifth</u> below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>fifth</u>, pro rata to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Note Parties at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>sixth</u>, pro rata to any other Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Note Parties or as otherwise required by any Governmental Requirement.

**Section 9.04.** <u>Credit Bidding</u>. In addition to any other rights and remedies granted to the Agents and the Holders in the Note Documents, the Collateral Agent (acting at the direction of the Requisite Holders) on behalf of the Holders may exercise all rights and remedies of a secured party under the UCC or any other applicable law. Without limiting the generality of the foregoing, the Collateral Agent (acting at the direction of the Requisite Holders), without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Note Party or any other Person (all and each of which demands, defenses, advertisements and notices are hereby waived by each of the Note Parties on behalf of itself and its Subsidiaries), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, or consent to the use by any Note Party of any cash collateral arising in respect of the Collateral on such terms as the Collateral Agent deems reasonable, and/or may forthwith sell, lease, assign give an option or options to purchase or otherwise dispose of and deliver, or acquire by credit bid on behalf of the Holders, the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales (including, without limitation, any sale conducted under the provisions of the Code, including under Sections 363, 1123 or 1129 of the Code, or any similar laws in any other jurisdictions to which a Note Party is subject), at any exchange, broker's board or office of the Collateral Agent or any Holder or elsewhere, upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery, all without assumption of any credit risk. In connection with any such credit bid and purchase, the Obligations owed to the Holders shall be entitled to be, and shall be, credit bid by the Collateral Agent at the direction of the Requisite Holders on a ratable basis (with Obligations with

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respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that shall vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) for the asset or assets so purchased (or for the equity interests or debt instruments of the acquisition vehicle or vehicles that are issued in connection with such purchase). In connection with any such bid (i) the Collateral Agent shall be authorized to form one or more acquisition vehicles and to assign any successful credit bid to such acquisition vehicle or vehicles, (ii) each of the Holders' ratable interests in the Obligations which were credit bid shall be deemed without any further action under this Agreement to be assigned to such vehicle or vehicles for the purpose of closing such sale, (iii) the Collateral Agent shall be authorized to adopt documents providing for the governance of the acquisition vehicle or vehicles (<u>provided</u> that any actions by the Collateral Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or equity interests thereof, shall be governed, directly or indirectly, by, and the governing documents shall provide for, control by the vote of the Requisite Holders or their permitted assignees under the terms of the Note Documents or the governing documents of the applicable acquisition vehicle or vehicles, as the case may be, irrespective of the termination of the Note Documents and without giving effect to the limitations on the actions by the Requisite Holders contained <u>Section 11.06</u>), (iv) the Collateral Agent on behalf of such acquisition vehicle or vehicles shall be authorized to issue to each of the Holders, ratably on account of the relevant Obligations which were credit bid, interests, whether as equity, partnership, limited partnership interests or membership interests, in any such acquisition vehicle and/or debt instruments issued by such acquisition vehicle, all without the need for any Holder or acquisition vehicle to take any further action, and (v) to the extent that Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any reason (as a result of another bid being higher or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of Obligations credit bid by the acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Holders pro rata with their original interest in such Obligations and the equity interests and/or debt instruments issued by any acquisition vehicle on account of such Obligations shall automatically be cancelled, without the need for any Holder or any acquisition vehicle to take any further action. Notwithstanding that the ratable portion of the Obligations of each Holder are deemed assigned to the acquisition vehicle or vehicles as set forth in <u>clause (ii)</u> above, each Holder shall execute such documents and provide such information regarding the Holder (and/or any designee of the Holder which will receive interests in or debt instruments issued by such acquisition vehicle) as the Collateral Agent acting at the direction of the Requisite Holders, may reasonably request in connection with the formation of any acquisition vehicle, the formulation or submission of any credit bid or the consummation of the transactions contemplated by such credit bid. The Collateral Agent or any Holder shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in any Note Party, which right or equity is hereby waived and released by each of the Note Parties on behalf of itself and its Subsidiaries. Each of the Note Parties further agrees on behalf of itself and its Subsidiaries, at the Collateral Agent's request, to assemble the Collateral and make it available to the Collateral Agent at places which the Collateral Agent shall reasonably select, whether at the premises of the Issuer, another Note Party or elsewhere. The Collateral Agent shall apply the net proceeds of any action taken by it pursuant to this <u>Section 9.04</u>, after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any other way relating to the Collateral or the rights of the Agents and the Holders hereunder, including reasonable attorneys' fees and disbursements, to the payment in whole or in part of the obligations of the Note Parties under the Note Documents, in such order as the Collateral Agent may elect, and only after such application and after the payment by the Collateral Agent of any other amount required by any provision of law, including Section 9-615(a)(3) of the UCC, need the Collateral Agent account for the surplus, if any, to any Note Party. To the extent permitted by applicable law, each of the Note Parties on behalf of itself and its Subsidiaries waives all claims, damages and demands it may acquire against the Agents or any Holder arising out of the exercise by them of any rights

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hereunder. If any notice of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least ten (10) days before such sale or other disposition. Notwithstanding anything provided in this <u>Section 9.04</u>, the Collateral Agent may delegate any or all of its rights to credit bid under this Section, this Agreement and the other Note Documents to EIG or the Requisite Holders or their designee, who will act as "Agent" or "Collateral Agent" for purposes of this <u>Section 9.04</u>.

**ARTICLE X** 

**AGENTS** 

**Section 10.01.** <u>Appointment of Agents</u>. U.S. Bank Trust Company, National Association is hereby appointed Agent and Collateral Agent hereunder and under the other Note Documents and each Holder hereby authorizes U.S. Bank Trust Company, National Association, in such capacities, to act as its agent (including as collateral agent) in accordance with the terms hereof and the other Note Documents. Each Agent hereby agrees to act upon the express conditions contained herein and the other Note Documents, as applicable. The provisions of this <u>Article X</u> are solely for the benefit of the Agents and the Holders and no Note Party shall have any rights as a primary or third party beneficiary of any of the provisions thereof, except as expressly set forth herein. In performing its functions and duties hereunder, each Agent shall act solely as an agent of the Holders and does not assume and shall not be deemed to have assumed any obligation towards or relationship of agency or trust with or for any Note Party or any Affiliate thereof.

**Section 10.02.** <u>Powers and Duties</u>. Each Holder irrevocably authorizes each Agent to take such action on such Holder's behalf and to exercise such powers, rights and remedies and perform such duties hereunder and under the other Note Documents as are specifically delegated or granted to each Agent by the terms hereof and thereof, together with such actions, powers, rights and remedies as are reasonably incidental thereto. Each Agent shall have only those duties and responsibilities that are expressly specified herein and the other Note Documents. Without limiting the generality of the foregoing, each Agent shall not have or be deemed to have, by reason hereof or any of the other Note Documents, a fiduciary relationship in respect of any Holder, any Note Party or any other Person, whether before or after the occurrence of any Default or Event of Default; and nothing herein or any of the other Note Documents, expressed or implied, is intended to or shall be so construed as to impose upon either Agent any obligations in respect hereof or any of the other Note Documents except as expressly set forth herein or therein. The use of the term "agent" herein and in the other Note Documents with reference to any Agent is not intended to connote any fiduciary or the other implied (or express) obligations arising under agency doctrine of any applicable law; rather, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. Neither Agent is, and shall not be deemed to be, acting hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

**Section 10.03.** <u>General Immunity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Responsibility for Certain Matters</u>. Neither Agent shall be responsible for the execution, effectiveness, genuineness, validity, enforceability, collectability or sufficiency hereof or any other Note Document or for any representations, warranties, recitals or statements made herein or therein or made in any written or oral statements or in any financial or other statements, instruments, reports or certificates or any other documents furnished or made by either Agent or by or on behalf of any Note Party to an Agent or any Holder in connection with the Note Documents and the transactions contemplated hereby and thereby or for the financial condition or business affairs of any Note Party or any other Person liable for the payment of any Obligations, nor shall either Agent be required to ascertain

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or inquire as to the performance or observance of any of the terms, conditions, provisions, covenants or agreements contained in any of the Note Documents or as to the use of the proceeds of the Notes or as to the existence or possible existence of any Event of Default or Default or to make any disclosures with respect to the foregoing. Neither Agent shall be responsible for the satisfaction of any condition set forth in <u>Article III</u> or elsewhere in any Note Document, other than to confirm receipt of items expressly required to be delivered to such Agent. Neither Agent will be required to take any action that is contrary to applicable law or any provision of this Agreement or any Note Document or that may expose it to personal liability for which it is not indemnified. Anything contained herein to the contrary notwithstanding, neither Agent shall have any liability arising from confirmations of the amount of outstanding Notes or the component amounts thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exculpatory Provisions</u>. Subject to the remainder of this <u>clause (b)</u> hereof further limiting the liability of the Agents, neither Agent nor any of their officers, partners, directors, employees or agents shall be liable for any action taken or omitted by an Agent under or in connection with any of the Note Documents, except to the extent caused by such Agent's gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final, nonappealable order. Each Agent shall be entitled to refrain from any act or the taking of any action (including the failure to take an action) in connection herewith or any of the other Note Documents or from the exercise of any power, discretion or authority vested in it hereunder or thereunder, except powers and authority expressly contemplated hereby or thereby, unless and until such Agent shall have received written instructions in respect thereof from Requisite Holders (or such other Holders as may be required to give such instructions under <u>Section 11.06</u>) or in accordance with the applicable Note Document, and, upon receipt of such instructions from Requisite Holders (or such other Holders, as the case may be), or in accordance with the other applicable Note Document, as the case may be, such Agent shall act or (where so instructed) refrain from acting, or to exercise or refrain from exercising such power, discretion or authority, in accordance with such instructions. The permissive rights of each Agent hereunder and under the other Note Documents shall not be construed as duties. Without prejudice to the generality of the foregoing, (i) each Agent shall be entitled to rely, and shall be fully protected in relying and free from liability in relying, upon any communication, instrument, document, judgment, order or decree believed by it to be genuine and correct and to have been signed or sent by the proper Person or Persons, and shall be entitled to rely and shall be protected and free from liability in relying on opinions, advice and judgments of attorneys (who may be attorneys for the Note Parties), accountants, experts and other professional advisors selected by it; (ii) no Holder shall have any right of action whatsoever against an Agent as a result of such Agent acting or (where so instructed) refraining from acting hereunder or any of the other Note Documents in accordance with the instructions of Requisite Holders (or such other Holders as may be required to give such instructions under <u>Section 11.06</u>) or in accordance with the applicable Note Document; and (iii) neither Agent shall be liable for any action taken, or errors in judgment made, in good faith by it or any of its officers, employees or agents, unless such Agent shall have been grossly negligent in ascertaining the pertinent facts. Each Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Note Document unless such Agent shall first receive such advice or concurrence of the Requisite Holders or the Holders (as the case may be, as required by this Agreement), accompanied by, if requested, indemnity satisfactory to such Agent, and until such instructions and indemnity (if any) are received, each Agent shall have no duty to act, or refrain from acting, and shall have no liability to any Holder, any Note Party or any other Person for so doing. If an Agent so requests, it shall first be indemnified to its satisfaction by the Holders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. Each Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Note Document in accordance with a request or consent of the Requisite Holders and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Holders. No provision of this Agreement or any other Note Document or any agreement or instrument contemplated hereby or thereby, the Transactions contemplated hereby or thereby shall require an Agent

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to: (i) expend or risk its own funds or provide indemnities in the performance of any of its duties hereunder or the exercise of any of its rights or power or (ii) otherwise incur any financial liability in the performance of its duties or the exercise of any of its rights or powers. Neither Agent shall be responsible for (i) perfecting, maintaining, monitoring, preserving or protecting the security interest or Lien granted under this Agreement, any other Note Document or any agreement or instrument contemplated hereby or thereby, (ii) the filing, re-filing, recording, re-recording or continuing of any document, financing statement, continuation statement, amendment, mortgage, assignment, notice, instrument of further assurance or other instrument in any public office at any time or times, or (iii) providing, maintaining, monitoring or preserving insurance on or the payment of Taxes with respect to any of the Collateral. The actions described in <u>clauses (i)</u> through <u>(iii)</u> of the immediately preceding sentence shall be the responsibility of the Holders and the Note Parties. Neither Agent shall be required to qualify in any jurisdiction in which it is not presently qualified to perform its obligations as an Agent. Each Agent has accepted and is bound by the Note Documents executed by such Agent as of the date of this Agreement and, as directed in writing by the Requisite Holders, each Agent shall execute additional Note Documents delivered to it after the date of this Agreement; <u>provided</u>, <u>however</u>, that such additional Note Documents do not adversely affect the rights, privileges, benefits, immunities and indemnities of the Agents, in which case, the Agents may, but shall not be obligated to, enter into such Note Documents. Neither Agent will otherwise be bound by, or be held obligated by, the provisions of any loan agreement, indenture or other agreement governing the Obligations (other than this Agreement and the other Note Documents to which such Agent is a party). No written direction given to an Agent by the Requisite Holders or any Note Party that in the sole judgment of such Agent imposes, purports to impose or might reasonably be expected to impose upon such Agent any obligation or liability not set forth in or arising under this Agreement and the other Note Documents will be binding upon an Agent unless such Agent elects, at its sole option, to accept such direction. Neither Agent shall be responsible or liable for any failure or delay in the performance of its obligations under this Agreement or the other Note Documents arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of God; earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics; riots; business interruptions; loss or malfunctions of utilities, computer (hardware or software) or communication services; accidents; labor disputes; acts of civil or military authority and governmental action. Beyond the exercise of reasonable care in the custody of the Collateral in the possession or control of the Collateral Agent or its bailee, the Collateral Agent will not have any duty as to any other Collateral or any income thereon or as to preservation of rights against prior parties or any other rights pertaining thereto. The Collateral Agent will be deemed to have exercised reasonable care in the custody of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which it accords its other corporate trust customers, and the Collateral Agent will not be liable or responsible for any loss or diminution in the value of any of the Collateral by reason of the act or omission of any carrier, forwarding agency or other agent or bailee selected by the Collateral Agent in good faith. Neither Agent shall be responsible for or have any duty to ascertain or inquire into (1) any statement, warranty or representation made in or in connection with this Agreement or any other Note Document, (2) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith or (3) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default or Event of Default. Neither Agent will be responsible for the existence, genuineness or value of any of the Collateral or for the validity, perfection, priority or enforceability of the Liens in any of the Collateral, whether impaired by operation of law or by reason of any action or omission to act on its part hereunder, for the validity or sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of the title of any grantor to the Collateral, for insuring the Collateral or for the payment of Taxes or Liens upon the Collateral or otherwise as to the maintenance of the Collateral. Each Agent hereby disclaims any representation or warranty to the present and future holders of the Obligations concerning the perfection of the Liens granted hereunder or in the value of any of the Collateral. In the event that either Agent is required to acquire title to an asset for any reason, or take any managerial action of any

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kind in regard thereto, in order to carry out any obligation for the benefit of another, which in any Agent's sole discretion may cause such Agent to be considered an "owner or operator" under any Environmental Laws or otherwise cause such Agent to incur, or be exposed to, any Environmental Liability or any liability under any other Governmental Requirement, each Agent reserves the right, instead of taking such action, either to resign as an Agent or to arrange for the transfer of the title or control of the asset to a court appointed receiver. Neither Agent will be liable to any person for any Environmental Liability or any Environmental Claims or contribution actions under any Governmental Requirement by reason of such Agent's actions and conduct as authorized, empowered and directed hereunder or relating to any kind of discharge or Release or threatened discharge or Release of any Hazardous Materials into the environment at any property or facility that any Agent is required to acquire title to hereunder. Each Holder authorizes and directs each Agent to enter into this Agreement and the other Note Documents to which it is a party. Each Holder agrees that any action taken by an Agent or Requisite Holders in accordance with the terms of this Agreement or the other Note Documents and the exercise by an Agent or Requisite Holders of their respective powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice of Default</u>. Neither Agent shall be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to Events of Default in the payment of principal, interest and fees required to be paid to each Agent for the account of the Holders, unless each Agent shall have received written notice from a Holder or the Issuer in accordance with the notice requirements of <u>Section 11.01</u> herein referring to this Agreement, describing such Default or Event of Default and stating that such notice is a "notice of default." Agent will notify the Holders of its receipt of any such notice. Neither Agent shall have any liability for any interest rate published by any publication that is the source for determining the interest rates of the Notes, including but not limited to the SOFR Administrator's Website (or any successor source), or for any rates compiled by the CME Term SOFR Administrator or any successor thereto, or for any rates published on any of the foregoing cases for any delay, error or inaccuracy in the publication of any such rates, or for any subsequent correction or adjustment thereto.

**Section 10.04.** <u>Holders' Representations, Warranties and Acknowledgment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Holder represents and warrants to each Agent that it has made its own independent investigation of the financial condition and affairs of each Note Party, without reliance upon either Agent or any other Holder and based on such documents and information as it has deemed appropriate, in connection with Note Purchases hereunder and that it has made and shall continue to make its own appraisal of the creditworthiness of each Note Party. Neither Agent shall have any duty or responsibility, either initially or on a continuing basis, to make any such investigation or any such appraisal on behalf of the Holders or to provide any Holder with any credit or other information with respect thereto, whether coming into its possession before the purchase of the Notes or at any time or times thereafter, and neither Agent shall have any responsibility with respect to the accuracy of or the completeness of any information provided to the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Holder, by delivering its signature page to this Agreement, an Assignment Agreement or a joinder agreement and funding its Note, shall be deemed to have acknowledged receipt of, and consented to and approved, each Note Document and each other document required to be approved by each Agent, Requisite Holders or Holders, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Holder hereby agrees that (i) if any Agent notifies such Holder that such Agent has determined in its sole discretion that any funds received by such Holder from such Agent or any of its Affiliates (whether as a payment, prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, a "**Payment**") were erroneously transmitted to such Holder (whether or not

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known to such Holder), and demands the return of such Payment (or a portion thereof), such Holder shall promptly, but in no event later than one Business Day thereafter, return to such Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, and (ii) to the extent permitted by applicable law, such Holder shall not assert, and hereby waives, as to such Agent, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by such Agent for the return of any Payments received, including without limitation any defense based on "discharge for value" or any similar doctrine. A notice of any Agent to any Holder under this <u>Section 10.04</u> shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Holder hereby further agrees that if it receives a Payment from an Agent or any of its Affiliates (i) that is in a different amount than, or on a different date from, that specified in a notice of payment sent by such Agent (or any of its Affiliates) with respect to such Payment (a "**Payment Notice**") or (ii) that was not preceded or accompanied by a Payment Notice, it shall be on notice, in each such case, that an error has been made with respect to such Payment, and to the extent permitted by applicable law, such Holder shall not assert any right or claim to the Payment, and hereby waives, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by such Agent for the return of any Payments received, including without limitation waiver of any defense based on "discharge for value" or any similar doctrine. Each Holder agrees that, in each such case, or if it otherwise becomes aware that a Payment (or portion thereof) may have been sent in error, such Holder shall promptly notify such Agent of such occurrence and, upon demand from such Agent, it shall promptly, but in no event later than three (3) Business Days thereafter, return to such Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Issuer and each other Note Party hereby agrees that (i) in the event an erroneous Payment (or portion thereof) are not recovered from any Holder that has received such Payment (or portion thereof) for any reason, the Agents shall be subrogated to all the rights of such Holder with respect to such amount and (ii) an erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Issuer or any other Note Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each party's obligations under this <u>Section 10.04</u> shall survive the resignation or replacement of the Agents or any transfer of rights or obligations by, or the replacement of, a Holder, the termination of the Commitments or the repayment, satisfaction or discharge of all Obligations under any Note Document.

**Section 10.05.** <u>Successor Agents</u>. Subject to the appointment and acceptance of a successor Agent as provided in this <u>Section 10.05</u>, either Agent may resign at any time by giving thirty (30) days' prior written notice thereof to the Requisite Holders, and the Issuer. Any Agent may be removed as an Agent at the request of the Requisite Holders. Upon any such notice of resignation or removal, Requisite Holders shall have the right (with the consent of the Issuer (not to be unreasonably withheld, delayed or conditioned) unless an Event of Default shall have occurred and is continuing), to appoint a successor Agent; <u>provided</u> that such successor Agent shall be a nationally-recognized third party agent for similarly situated financings. If no successor shall have been so appointed by the Requisite Holders and shall have accepted such appointment within thirty (30) days after the retiring Agent gives notice of its resignation, then the retiring Agent's resignation shall nevertheless thereupon become effective and the Requisite Holders shall perform all of the duties of such Agent, as applicable, hereunder until such time, if any, as the Requisite Holders appoint a successor Agent as provided for above. In such case, the Requisite Holders shall appoint one Person to act as Agent for purposes of any communications with the Issuer, and until the Issuer shall have been notified in writing of such Person and such Person's notice address as provided for in <u>Section 11.01</u>, the Issuer shall be entitled to give and receive communications to/from the resigning Agent. Upon the acceptance of any appointment as Agent hereunder by a successor Agent and the payment of the outstanding fees and expenses of the resigning or removed Agent, at the Issuer's expense, that successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Agent and the retiring or removed Agent shall promptly

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(i) transfer to such successor Agent all sums and other items of Collateral held under the Collateral Documents, together with all records and other documents necessary or appropriate in connection with the performance of the duties of the successor Agent under the Note Documents, and (ii) execute and deliver to such successor Agent such amendments to financing statements, and take such other actions, as may be reasonably requested in connection with the assignment to such successor Agent of the security interests created under the Collateral Documents (the reasonable out-of-pocket expenses of which shall be borne by the Issuer), whereupon such retiring or removed Agent shall be discharged from its duties and obligations hereunder. After any retiring Agent's resignation or any Agent's removal hereunder as Agent or Collateral Agent, the provisions of this <u>Article X</u> and <u>Section 11.03</u> shall inure to its benefit as to any actions taken or omitted to be taken by it while it was an Agent hereunder. Any organization or other entity into which an Agent may be merged or converted or with which it may be consolidated, or any organization or other entity resulting from any merger, conversion or consolidation to which any Agent shall be a party, or any organization or other entity succeeding to all or substantially all of the corporate trust business of the Agents, shall be the successor to the Agents hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto.

**Section 10.06.** <u>Delegation of Duties</u>. Each Agent may perform any and all of its duties and exercise its rights and powers under this Agreement or under any other Note Document by or through any one or more sub-agents appointed by such Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Affiliates. Neither Agent shall be responsible for the acts or omissions of its sub-agents so long as they are appointed with due care. The exculpatory, indemnification and other provisions of <u>Article X</u> and <u>Section 11.03</u> shall apply to any Affiliates of each Agent and shall apply to their respective activities in connection with the syndication of the Notes issued hereby. All of the rights, benefits and privileges (including the exculpatory and indemnification provisions) of <u>Article X</u> and <u>Section 11.03</u> shall apply to any such sub-agent and to the Affiliates of any such sub-agent, and shall apply to their respective activities as sub-agent.

**Section 10.07.** <u>Collateral Documents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Agent under Collateral Documents</u>. Each Holder and other Indemnitee hereby further irrevocably authorizes the Collateral Agent, on behalf of and for the benefit of the Holders, to be the agent for and representative of Holders with respect to the Collateral Documents and to enter into such other agreements with respect to the Collateral (including intercreditor agreements) as it may deem necessary with the consent of the Requisite Holders. Subject to <u>Section 11.06</u>, the Collateral Agent may execute any documents or instruments necessary to (i) release any Lien encumbering any item of Collateral that is the subject of a sale or other disposition of assets permitted hereby and with respect to which release the Requisite Holders (or such other Holders as may be required to give such consent under <u>Section 11.06</u>) have consented or (ii) release any Guarantor from the Guarantee pursuant to the Guaranty Agreement with respect to which release the Requisite Holders (or such other Holders as may be required to give such consent under <u>Section 11.06</u>) have consented, in each case upon delivery by the Issuer to the Agent and Collateral Agent with a certificate of a Responsible Officer certifying that such release is authorized and permitted under by the Note Documents, and such other certifications or documents as the Agent or Collateral Agent (in each case, at the direction of the Requisite Holders) shall request. Whether or not expressly provided therein, the Agent and the Collateral Agent shall be entitled to all of the rights, privileges, immunities and indemnities provided in this Agreement in entering into and performing under the Collateral Documents and any other Note Document.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Right to Realize on Collateral and Enforce Guarantee</u>. Anything contained in any of the Note Documents to the contrary notwithstanding, the Issuer, the Agents and each Holder hereby agree that (i) no Holder shall have any right individually to realize upon any of the Collateral or to enforce any Guarantee or exercise any other remedy provided under the Note Documents (other than the right of set-off provided in <u>Section 11.04</u>), it being understood and agreed that all powers, rights and remedies hereunder may be exercised solely by the Collateral Agent (acting at the written direction of the Requisite Holders), on behalf of the Holders in accordance with the terms hereof and all powers, rights and remedies under this Agreement and the Collateral Documents may be exercised solely by the Collateral Agent (acting at the written direction of the Requisite Holders), and (ii) in the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale, the Collateral Agent or its nominee may be the purchaser of any or all of such Collateral at any such sale and the Collateral Agent, as agent for and representative of Holders (but not any Holder or Holders in its or their respective individual capacities unless the Requisite Holders shall otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the Obligations arising under the Note Documents as a credit on account of the purchase price for any collateral payable by the Collateral Agent at such sale.

**Section 10.08.** <u>Posting of Approved Electronic Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Delivery of Communications</u>. Each Note Party hereby agrees, unless directed otherwise by an Agent or unless the electronic mail address referred to below has not been provided by an Agent to such Person, that it will provide to each Agent all information, documents and other materials that it is obligated to furnish to such Agent or to the Holders pursuant to the Note Documents, including all notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding any such communication that (i) is or relates to a Note Purchase Notice, (ii) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice of any Default or Event of Default under this Agreement or any other Note Document, or (iv) is required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement and/or any Note or other Note Purchase hereunder (all such non-excluded communications being referred to herein collectively as "**Communications**"), by transmitting the Communications in an electronic/soft medium that is properly identified in a format acceptable to the Issuer and each Agent to an electronic mail address as directed by each Agent. In addition, each Note Party agrees to continue to provide the Communications to each Agent or the Holders, as the case may be, in the manner specified in the Note Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Prejudice to Notice Rights</u>. Nothing herein shall prejudice the right of any Agent or any Holder to give any notice or other communication pursuant to any Note Document in any other manner specified in such Note Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>The Platform</u>. Each Note Party acknowledges that Agent will make available to Holders materials and/or information by posting such materials and/or information on IntraLinks/IntraAgency, Syndtrack or another similar electronic system (the "<u>Platform</u>"). THE PLATFORM IS PROVIDED "AS IS" AND "AS AVAILABLE." AGENT DOES NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE NOTE PARTIES' COMMUNICATIONS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIMS LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE NOTE PARTIES' COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. In no event shall Agent

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have any liability to the Note Parties, any Holder or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Note Parties' or the Agent's transmission of materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of Agent. In no event shall Agent have any liability for any damages arising from the use by others of any information or other materials obtained through the Platform.

**Section 10.09.** <u>Proofs of Claim</u>. The Holders and each Note Party hereby agree that after the occurrence of an Event of Default pursuant to <u>Section 9.01(h)</u> or <u>9.01(i)</u>, in case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Note Party, Agent (acting at the direction of Requisite Holders) (irrespective of whether the principal of any Note shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether Agent shall have made any demand on any Note Party) shall be entitled and empowered, by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Notes and any other Obligations that are owing and unpaid and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Holders, the Agents and other agents (including any claim for the reasonable compensation, expenses, disbursements and advances of the Holders, the Agents and other agents and their agents and counsel and all other amounts due Holders, the Agents and other agents hereunder) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee, interim trustee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to Agent and, in the event that Agent shall consent to the making of such payments directly to the Holders, to pay to Agent and Collateral Agent, as applicable, any amount due for the compensation, expenses, disbursements and advances of each Agent, Collateral Agent and their agents and counsel, and any other amounts due Agents and other agents hereunder. Nothing herein contained shall be deemed to authorize any Agent to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Holders or to authorize any Agent to vote in respect of the claim of any Holder in any such proceeding. Further, nothing contained in this <u>Section 10.09</u> shall affect or preclude the ability of any Holder to (i) file and prove such a claim in the event that an Agent has not acted within ten (10) days prior to any applicable bar date and (ii) require an amendment of the proof of claim to accurately reflect such Holder's outstanding Obligations.

**Section 10.10.** <u>Hedge Intercreditor Agreement</u>. Each Holder (and each Person that becomes a Holder hereunder pursuant to <u>Section 11.07</u>) hereby authorizes the Agent to enter into, join or otherwise become party to the Hedge Intercreditor Agreement on behalf of such Holder, in each case, as needed to effectuate the transactions permitted by this Agreement and agrees that the Agent may take such actions on its behalf as is contemplated by the terms of Hedge Intercreditor Agreement. Without limiting the provisions of <u>Section 10.02, 11.02</u> and <u>11.03</u>, each Holder hereby consents to each of the Agent and any successor serving in such capacities and agrees not to assert any claim (including as a result of any conflict of interest) against the any Agent, or any such successor, arising from the role of any Agent or such successor under the Note Documents or any such intercreditor agreement so long as it is either acting in accordance with the terms of such documents and otherwise has not engaged in gross negligence or willful misconduct (as determined in a final and non-appealable judgment by a court of

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competent jurisdiction). In addition, the Agent and Collateral Agent, or any such successors, shall be authorized, with the consent of the Requisite Holders, to execute or to enter into amendments of, and amendments and restatements of, the Collateral Documents, the Hedge Intercreditor Agreement and any additional and replacement intercreditor agreements, as is contemplated by the terms of the Hedge Intercreditor Agreement.

**Section 10.11.** <u>Indemnification</u>. To the extent that the Agents are not promptly reimbursed and indemnified by any Note Party, and after the Agents have made demand on any Note Party for the same, the Holders will, within five (5) days of written demand by the Agents, reimburse the Agents for, and indemnify and hold harmless the Agents from and against, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including client charges and expenses of counsel or any other advisor to Agents), advances or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against the Agents in any way relating to or arising out of this Agreement or any of the other Note Documents or any action taken or omitted by the Agents under this Agreement or any of the other Note Documents, in proportion to each Holder's Pro Rata Share; provided, however, that no Holder shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses, advances or disbursements for which there has been a final non-appealable judicial determination that such liability resulted from such applicable Agent's gross negligence or willful misconduct. The obligations of the Holders under this Section 10.11 shall survive the Payment in Full of the Obligations, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

**ARTICLE XI** 

**MISCELLANEOUS** 

**Section 11.01.** <u>Notices</u>. Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given to a Note Party or the Agents, shall be sent to such Person's address as set forth on <u>Appendix B</u> or in the other relevant Note Document, and in the case of any Holder, the address as indicated on <u>Appendix B</u> or otherwise indicated to Agents in writing. Each notice hereunder shall be in writing and may be personally served, sent by telefacsimile, electronic transmission or United States certified or registered mail or courier service and shall be deemed to have been given when delivered and signed for against receipt thereof, or upon confirmed receipt of telefacsimile or electronic transmission (which confirmation shall be made by telephone call by the sender to the Agents; confirmation by electronic messaging shall not be deemed to be confirmation of receipt).

**Section 11.02.** <u>Expenses</u>. Each Note Party shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Agents, the Holders and their Affiliates (including, without limitation, the reasonable fees, charges and disbursements of (A) one primary firm of counsel to the Holders, (B) one primary firm of counsel to the Agent and Collateral Agent, (C) one local counsel and one regulatory counsel in each relevant jurisdiction, if any and (D) reasonable travel, photocopy, mailing, courier, telephone and other similar expenses, in connection with the issuance of the Notes provided for herein, the preparation, negotiation, execution, delivery and administration (both before and after the execution hereof and including advice of counsel to the Agents and the Holders as to the rights and duties of any Agent and the Holders with respect thereto) of this Agreement and the other Note Documents and any amendments, modifications or waivers of or consents related to the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all costs, expenses, Taxes, assessments and other charges incurred by the Agents or any Holder in connection with any filing, registration, recording or perfection of any security interest contemplated by this Agreement or any Collateral Document or any other document referred to therein and (iii) all out-of-pocket expenses

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incurred by the Agents or any Holder, including the fees, charges and disbursements of counsel and other experts, in connection with the enforcement or protection of its rights in connection with this Agreement or any other Note Document, including its rights under this <u>Section 11.02</u>, or in connection with the Notes issued hereunder, including, without limitation, all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Notes. All amounts due under this <u>Section 11.02</u> shall be paid within thirty (30) days of receipt by the Issuer of an invoice. The agreements in this Section 11.02 shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

**Section 11.03.** <u>Indemnity; Limitation of Liability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to the payment of expenses pursuant to <u>Section 11.02</u>, whether or not any or all of the Transactions shall be consummated, each Note Party agrees to defend (subject to Indemnitees' selection of counsel), indemnify, pay and hold harmless, EIG, the Agents and each Holder, their Affiliates and its and their respective officers, members, shareholders, partners, directors, trustees, employees, advisors (including attorneys, accountants and experts), representatives and agents and each of their respective successors and assigns and each Person who controls any of the foregoing (each, an "**Indemnitee**"), from and against any and all Indemnified Liabilities, **IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY, OR SOLE NEGLIGENCE OF SUCH INDEMNITEE**; <u>provided</u> that, no Note Party shall have any obligation to an Indemnitee hereunder with respect to any Indemnified Liabilities if such Indemnified Liabilities arise from the gross negligence or willful misconduct of that Indemnitee as determined by a court of competent jurisdiction in a final, nonappealable order, <u>provided</u> that no Note Party shall indemnify any Holder or its related Indemnitee for claims solely among the Holders (or any combination thereof) to the extent not related to a breach of an obligation of a Note Party as determined by a court of competent jurisdiction by final and nonappealable judgement. To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in this <u>Section 11.03</u> may be unenforceable in whole or in part because they are violative of any law or public policy, the applicable Note Party shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them. The indemnities and waivers set forth in this <u>Section 11.03(a)</u> shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent. All amounts due under this <u>Section 11.03(a)</u> shall be paid within thirty (30) days of receipt by the Issuer of an invoice.

(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the extent permitted by applicable law, no Note Party shall assert (and no Note Party shall permit is Affiliates to assert), and each Note Party hereby waives, releases and agrees not to sue upon any claim against EIG, the Agents and each Holder, their Affiliates and its and their respective officers, members, shareholders, partners, directors, trustees, employees, advisors (including attorneys, accountants and experts), representatives and agents and each of their respective successors and assigns and each Person who controls any of the foregoing (each such Person, a "**Holder-Related Party**") (and agrees to cause its Affiliates to do the same), on any theory of liability, for special, indirect, exemplary, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement, any Note Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the Transactions, any documentation related to any Note or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and each Note Party hereby waives, releases and agrees not to sue any Holder-Related Party upon any such claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor. The waivers set forth in this Section 11.03(b) shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the extent permissible under applicable law, none of the Agents, any Note Party or any Subsidiary shall have any liability for any special, indirect, exemplary, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement, any Note Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the Transactions, any documentation related to any Note or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, in respect of any such damages incurred or paid by an Indemnitee to a third party and for any out-of-pocket expenses in each case subject to the indemnification provisions of this <u>Section 11.03</u>; it being agreed that this sentence shall not limit the obligations of the Note Parties under <u>Section 11.03(a)</u>. The waivers set forth in this <u>Section 11.03(b)</u> shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Note Party hereby acknowledges and agrees that an Indemnitee may now or in the future have certain rights to indemnification provided by other sources ("**Other Sources**"). Each Note Party hereby agrees that (i) it is the indemnitor of first resort (i.e., its obligations to the Indemnitees are primary and any obligation of the Other Sources to provide indemnification for the same Indemnified Liabilities are secondary to any such obligation of the Note Party), (ii) that it shall be liable for the full amount of all Indemnified Liabilities, without regard to any rights the Indemnitees may have against the Other Sources, and (iii) it irrevocably waives, relinquishes and releases the Other Sources and the Indemnitees from any and all claims (A) against the Other Sources for contribution, indemnification, subrogation or any other recovery of any kind in respect thereof and (B) that an Indemnitee must seek expense advancement or reimbursement, or indemnification, from the Other Sources before the Note Party must perform its obligations hereunder. No advancement or payment by the Other Sources on behalf of an Indemnitee with respect to any claim for which such Indemnitee has sought indemnification from a Note Party shall affect the foregoing. The Other Sources shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery which the Indemnitee would have had against a Note Party if the Other Sources had not advanced or paid any amount to or on behalf of the Indemnitee.

**Section 11.04.** <u>Set Off</u>. In addition to any rights now or hereafter granted under applicable law or Governmental Requirement and not by way of limitation of any such rights, upon the occurrence and during the continuance of any Event of Default each Holder and its/their respective Affiliates is hereby authorized by each Note Party at any time or from time to time subject to the consent of Agent (such consent to be given or withheld at the written direction of the Requisite Holders), without notice to any Note Party or to any other Person (other than Agent), any such notice being hereby expressly waived, to set off and to appropriate and to apply any and all deposits (general or special, including Debt evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts (in whatever currency)) and any other Debt at any time held or owing by such Holder to or for the credit or the account of any Note Party (in whatever currency) against and on account of the obligations and liabilities of any Note Party to such Holder hereunder, and under the other Note Documents, including all claims of any nature or description arising out of or connected hereto or any other Note Document, irrespective of whether or not (a) such Holder shall have made any demand hereunder, (b) the principal of or the interest on the Notes or any other amounts due hereunder shall have become due and payable pursuant to <u>Article II</u> and although such obligations and liabilities, or any of them, may be contingent or unmatured, or (c) such obligation or liability is owed to a branch or office of such Holder different from the branch or office holding such deposit or obligation or such Debt.

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**Section 11.05.** <u>[Reserved]</u>.

**Section 11.06.** <u>Amendments and Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Requisite Holders' Consent</u>. Subject to <u>Sections 11.06(b)</u> and <u>11.06(c)</u>, no amendment, modification, termination or waiver of any provision of the Note Documents, or consent to any departure by any Note Party therefrom, shall in any event be effective without the written concurrence of (i) in the case of this Agreement, the Issuer, the Agents and the Requisite Holders or (ii) in the case of any other Note Document (other than the Agent Fee Letter), the Note Parties party thereto and (A) Agents with the consent of the Requisite Holders or (B) the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Affected Holders' Consent</u>. Without the written consent of each Holder that would be directly affected thereby, no amendment, modification, or consent shall be effective if the effect thereof would:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) reduce the principal of the Notes or waive or postpone scheduled final maturity of the Notes or waive, postpone or reduce any fixed and scheduled repayment of the Notes (it being understood that the waiver of (or amendment to the terms of) any mandatory prepayment of the Notes shall not constitute a postponement of any date scheduled for the payment of principal or interest);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject to <u>Section 2.15(b)</u>, (A) reduce the rate of interest on any Note of, or the amounts of fees payable to, such Holder, (B) extend the time for payment of any such interest or fees to such Holder or (C) waive any interest or fee payable hereunder to such Holder (<u>provided</u> that the application of the Default Rate pursuant to <u>Section 2.06(c)</u> may be reduced, extended or waived by the Requisite Holders);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) extend or increase the Commitment of such Holder (it being understood that a waiver of any condition precedent or of any Default or Event of Default, mandatory prepayment or mandatory reduction of the Commitments shall not constitute an extension or increase of any Commitment of any Holder);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) release all or substantially all the Guarantors from the Guarantee or release the Liens securing all or substantially all of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amend, modify, terminate or waive any provision of Sections <u>2.10</u>, <u>2.11(g)</u>, <u>2.12</u>, <u>Section 9.03</u> or this <u>Section 11.06(b)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) amend the definition of "Requisite Holders" or "Pro Rata Share".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Consents</u>. No amendment, modification, termination, or waiver of any provision of the Note Documents, or consent to any departure by any Note Party therefrom, shall materially and adversely amend, modify, terminate or waive any provision of <u>Article IX</u> as the same applies to any Agent or any Indemnitee Agent Party, or any other provision hereof as the same applies to the rights or obligations of any Agent, in each case without the consent of such Agent or such Indemnitee Agent Party. With limiting the foregoing, neither Agent shall be bound to follow or agree to any amendment or supplement to this Agreement that would increase or materially change or affect the duties, obligations or

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liabilities of such Agent (including without limitation the imposition or expansion of discretionary authority with respect to the benchmark), or reduce, eliminate, limit or otherwise change any right, privilege or protection of such Agent, or would otherwise change any right, privilege or protection of such Agent, or would otherwise materially and adversely affect such Agent, in each case in its reasonable judgment, without such party's express written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Execution of Amendments, etc</u>. Agent and Collateral Agent, if applicable, shall at the direction of the applicable Holders, execute amendments, modifications, waivers or consents on behalf of such Holders. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on any Note Party shall entitle any Note Party to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent effected in accordance with this <u>Section 11.06(d)</u> shall be binding upon each Holder at the time outstanding, each future Holder and, if signed by a Note Party, on such Note Party. Agent will deliver executed or true and correct copies of each amendment, modification, waiver, or consent effected pursuant to this <u>Section 11.06</u> to each Holder promptly following the date on which it is executed and delivered, or receives the consent or approval of the requisite percentage of Holders applicable thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Note Parties and Affiliates</u>. No Note Party will, and the Issuer will not permit any of its Subsidiaries, any of the Note Parties or any of their respective Affiliates, to, directly or indirectly, offer to purchase, prepay, Redeem or otherwise acquire any outstanding Notes, except as otherwise expressly permitted under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Amendment Consideration</u>. None of Issuer or any of its Affiliates or any other party to any Note Documents, directly or indirectly, will pay or cause to be paid any consent fees, or grant any security as an inducement for, any proposed amendment or waiver of any of the provisions of this Agreement or any of the other Note Documents unless each Holder of the Notes (irrespective of the kind and amount of Notes then owned by it) shall be informed thereof by Issuer and, if such Holder is entitled to the benefit of any such provision proposed to be amended or waived, shall be afforded the opportunity of considering the same, shall be supplied by Issuer and any other party hereto with sufficient information to enable it to make an informed decision with respect thereto and, to the extent such amendment or waiver is consented to by such Holder, shall be paid such remuneration and granted such security on the same terms. For the avoidance of doubt, nothing in this <u>Section 11.06(f)</u> is intended to restrict or limit the amendment requirements otherwise set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Consent in Contemplation of Transfer</u>. Any consent given pursuant to this <u>Section 11.06</u> or any other Note Document by a Holder that has transferred or has agreed to transfer its Note to any Person in connection with, or in anticipation of, such other Person acquiring, making a tender offer for or merging with the Issuer, any Note Party and/or any of their Affiliates, shall be void and of no force or effect except solely as to such Holder, and any amendments, modifications or terminations effected or waivers or consents granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other Holders that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such Holder.

**Section 11.07.** <u>Successors and Assigns; Assignments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns</u>. This Agreement shall be binding upon the parties hereto and their respective successors and assigns and shall inure to the benefit of the parties hereto and the successors and assigns of Holders. No Note Party's rights or obligations hereunder nor any interest therein may be assigned or delegated by any such Person without the prior written consent of all Holders (and any attempted assignment or transfer by any such Person without such consent shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly contemplated hereby, Affiliates of each of Agent and Holders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignments</u>. Subject to compliance with applicable securities laws, if any, any Holder may at any time sell, assign or otherwise transfer to one or more Eligible Assignees any Notes and all or any portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitments and the Notes held by it).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mechanics</u>. The assigning Holder and the assignee thereof shall execute and deliver to Agent an Assignment Agreement, a processing and recordation fee of $3,500 (other than in the case of an assignment from a Holder to its Affiliate or a Related Fund), all "know your customer" and anti-money laundering rules and regulations, including the USA PATRIOT Act, documents as reasonably requested by the Agent, together with such forms, certificates or other evidence, if any, with respect to United States federal Tax withholding matters as the assignee under such Assignment Agreement may be required to deliver to Agent and Issuer pursuant to <u>Section 2.14(e)</u> and <u>2.14(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notice of Assignment</u>. Upon its receipt and acceptance of a duly executed and completed Assignment Agreement, the processing and recordation fee of $3,500 (which, for the avoidance of doubt, is not required in the case of an assignment from a Holder to its Affiliate or to a Related Fund), any "know your customer" documents reasonably requested by the Agent, and any other forms, certificates or other evidence required by this Agreement in connection therewith, Agent shall record the information contained in such Assignment Agreement in the Register, shall give prompt notice thereof to the Issuer and shall maintain a copy of such Assignment Agreement. The Agent is not, and shall not be deemed to be, acting hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Representations and Warranties of Assignee</u>. Each Holder upon executing and delivering an Assignment Agreement, represents and warrants as of the applicable Effective Date (as defined in the applicable Assignment Agreement) that (i) it has experience and expertise in the making of or investing in notes; and (ii) it will make or invest in, as the case may be, its Notes for its own account in the ordinary course of its business and without a view to distribution of such Notes within the meaning of the Securities Act or the Exchange Act or other applicable securities laws (it being understood that, subject to the provisions of this <u>Section 11.07(e)</u>, the disposition of Notes or any interests therein shall at all times remain within its exclusive control). In addition, each Holder becoming party hereto after the Closing Date, upon executing and delivering an Assignment Agreement, shall be deemed to have made the representations and warranties contained in <u>Article V</u> as of the applicable Effective Date (as defined in the applicable Assignment Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Effect of Assignment</u>. Subject to the terms and conditions of this <u>Section 11.07(f)</u>, as of the "Effective Date" specified in the applicable Assignment Agreement and recordation in the Register: (i) the assignee thereunder shall have the rights and obligations of a "Holder" hereunder to the extent such rights and obligations hereunder have been assigned to it pursuant to such Assignment Agreement and shall thereafter be a party hereto and a "Holder" for all purposes hereof; (ii) the assigning Holder thereunder shall, to the extent that rights and obligations hereunder have been assigned thereby pursuant to such Assignment Agreement, relinquish its rights (other than any rights which survive the termination hereof under <u>Section 11.08</u>) and be released from its obligations hereunder (and, in the case of an Assignment Agreement covering all or the remaining portion of an assigning Holder's rights and obligations hereunder, such Holder shall cease to be a party hereto; <u>provided</u> that such assigning Holder shall continue to be entitled to the benefit of all indemnities and expense reimbursement rights hereunder

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as specified herein with respect to matters arising prior to such assignment); and (iii) if any such assignment occurs after the issuance of any Note hereunder, the assigning Holder shall, upon the effectiveness of such assignment or as promptly thereafter as practicable, surrender its applicable Note to the Issuer for cancellation, and thereupon the Issuer shall issue and deliver a new Note, if so requested by the assignee and/or assigning Holder, to such assignee and/or to such assigning Holder, with appropriate insertions, to reflect the outstanding principal balance under the Notes of the assignee and/or the assigning Holder. Notes shall not be transferred in denominations of less than $100,000 (unless transferred by any Holder to an Affiliate and/or a Related Fund of such Holder), <u>provided</u>, that if necessary to enable the registration of transfer by a Holder of its entire holding of Notes, a Note may be in a denomination of less than $100,000; <u>provided</u> <u>further</u>, that transfers by a Holder, its Affiliates and its Related Funds shall be aggregated for purposes of determining whether or not such $100,000 threshold has been reached.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Participations</u>. Subject to compliance with applicable securities laws, if any, each Holder shall have the right at any time to sell one or more participations to any Person (other than a natural Person, any Note Party or any of their respective Affiliates) (each, a "**Participant**") in all or any part of such Holder's rights and/or obligations under this Agreement (including all or a portion of its Notes or any other Obligation); <u>provided</u> that (i) such Holder's obligations under this Agreement shall remain unchanged, (ii) such Holder shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Issuer, Agents, and the Holders shall continue to deal solely and directly with such Holder in connection with such Holder's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Holder sells such a participation shall provide that such Holder shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u> that such agreement or instrument may provide that such Holder will not, without the consent of the Participant, agree to any amendment, modification or waiver described in <u>Section 11.06(b)</u> that affects such Participant. The Issuer agrees that each Participant shall be entitled to the benefits of <u>Sections 2.13</u> and <u>2.14</u> (subject to the requirements and limitations therein, including the requirements and limitations under <u>Section 2.14(e)</u> and <u>Section 2.14(f)</u>) (it being understood that the documentation required under <u>Section 2.14(e)</u> and <u>Section 2.14(f)</u> shall be delivered by the Participant to the applicable Holder) to the same extent as if it were a Holder and had acquired its interest by assignment pursuant to <u>paragraph (c)</u> of this <u>Section 11.07</u>; <u>provided</u> that such Participant shall not be entitled to receive any greater payment under <u>Section 2.11(h)</u> than the applicable Holder would have been entitled to receive with respect to the participation sold to such Participant, unless such greater payment results from a change in a Governmental Requirement that occurs after the Participant acquired the applicable participation, or is made with the Issuer's prior written consent. To the extent permitted by law, each Participant shall be entitled to the benefits of <u>Section 11.04</u> as though it were a Holder; <u>provided</u> that such Participant agrees to be subject to <u>Section 2.14</u> as though it were a Holder. Each Holder that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Issuer, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Notes or other Obligations under the Note Documents (the "Participant Register"); <u>provided</u> that no Holder shall have any obligation to disclose all or a portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Note Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Treasury Regulation Section 5f.103-1(c), proposed Treasury Regulation Section 1.163-5 or any applicable temporary, final or other successor regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Holder shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register, and the Agent shall be entitled to treat the Holder, and not any Participant, as the Holder all purposes hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Independence of Covenants</u>. All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

**Section 11.08.** <u>Survival of Representations, Warranties and Agreements</u>. All representations, warranties and agreements made herein shall survive the execution and delivery hereof and the making of any Note Purchase. Notwithstanding anything herein or implied by law to the contrary, the agreements of each Note Party set forth in <u>Sections 2.14</u>, <u>11.02</u>, <u>11.03</u> and <u>11.04</u> and the agreements of Holders set forth in <u>Sections 2.12</u>, <u>2.14</u>, <u>10.11</u> and <u>11.03(b)</u> shall survive the payment of the Notes, the termination hereof and the resignation or removal of any Agent.

**Section 11.09.** <u>No Waiver; Remedies Cumulative</u>. No failure or delay on the part of any Agent or any Holder in the exercise of any power, right or privilege (including with respect to any financial covenant calculation or evaluation of the calculation or components thereof) hereunder or under any other Note Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein (including with respect to any future covenant calculation or evaluation of the calculation or components thereof), nor shall any single or partial exercise of any such power, right or privilege preclude further or future exercise thereof or of any other power, right or privilege. The rights, powers and remedies given to Agents and each Holder hereby are cumulative and shall be in addition to and independent of all rights, powers and remedies existing by virtue of any statute or rule of law or in any of the other Note Documents. Any forbearance or failure to exercise, and any delay in exercising, any right or privilege, power or remedy hereunder (including with respect to any financial covenant calculation or evaluation of the calculation or components thereof) shall not impair any such right or privilege, power or remedy or be construed to be a waiver thereof, nor shall it preclude other, further or future exercise of any such right or privilege, power or remedy.

**Section 11.10.** <u>Marshalling; Payments Set Aside</u>. Neither Agent nor any Holder shall be under any obligation to marshal any assets in favor of any Note Party or any other Person or against or in payment of any or all of the Obligations. To the extent that any Note Party makes a payment or payments to any Agent or the Holders (or to any Agent, on behalf of the Holders), or any Agent or the Holders enforce any security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, any other state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred.

**Section 11.11**. <u>Severability</u>. In case any provision in or obligation hereunder or any Note or other Note Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

**Section 11.12.** <u>Obligations Several; Independent Nature of Holders' Rights</u>. The obligations of the Holders hereunder are several and no Holder shall be responsible for the obligations or Commitment of any other Holder hereunder. Nothing contained herein or in any other Note Document, and no action taken by the Holders pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Holder shall be a separate and independent debt, and each Holder shall be entitled to protect and enforce its rights arising out hereof and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose.

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**Section 11.13.** <u>Tax Treatment</u>. The Issuer, the Agent and each Holder intend that the Notes shall be treated as indebtedness for Tax purposes and agree to report the Notes as indebtedness on all Tax returns.

**Section 11.14.** <u>Headings</u>. Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.

**Section 11.15.** <u>APPLICABLE LAW</u>. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

**Section 11.16.** <u>CONSENT TO JURISDICTION</u>. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY HERETO ARISING OUT OF OR RELATING HERETO OR ANY OTHER NOTE DOCUMENT, OR ANY OF THE OBLIGATIONS, SHALL BE BROUGHT IN STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY HERETO, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (A) ACCEPTS GENERALLY AND UNCONDITIONALLY THE JURISDICTION AND VENUE OF SUCH COURTS; (B) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE NOTE PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH <u>SECTION 11.01</u> IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE NOTE PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (D) AGREES THAT AGENTS AND THE HOLDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY NOTE PARTY IN THE COURTS OF ANY OTHER JURISDICTION.

**Section 11.17.** <u>WAIVER OF JURY TRIAL</u>. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER NOTE DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT OR THE HOLDER/ISSUER RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER

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IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS <u>SECTION 11.17</u> AND EXECUTED BY EACH OF THE PARTIES HERETO THAT IS PARTY TO SUCH JUDICIAL PROCEEDING), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER NOTE DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE NOTES PURCHASED HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

**Section 11.18.** <u>Confidentiality</u>. If the Issuer reasonably believes that any information being furnished by it or any other Note Party to Agent or a Holder ("Recipient") relating to it or its business is confidential, the Issuer may so indicate by notice in writing to the Recipient, identifying such information with specificity (such identified information, the "Confidential Information"), in which event the Recipient will use reasonable efforts to maintain the confidentiality thereof; <u>provided</u>, <u>however</u>, that a Recipient may disclose such information (a) to its Affiliates, partners, prospective partners, members and prospective members and its and their respective directors, managers, officers, employees, attorneys, accountants, advisors, auditors, consultants, agents or representatives with a need to know such Confidential Information (collectively "Permitted Recipients"); (b) to any potential assignee, participant, pledgee or transferee of any of its rights or obligations hereunder (including without limitation, in connection with a sale or participation of any or all of the Notes) or any of their related parties, agents and advisors (<u>provided</u> that such potential assignee, participant or transferee agree to be bound by provisions that are substantially similar to the restrictions set forth in this <u>Section 11.18</u>); (c) if such information (i) becomes publicly available other than as a result of a breach of this <u>Section 11.18</u>, (ii) becomes available to a Recipient or any of its Permitted Recipients on a non-confidential basis from a source other than the Note Parties or (iii) is independently developed by the Recipient or any of its Permitted Recipients without the use of or reliance on such information; (d) to enable it to enforce or otherwise exercise any of its rights and remedies under any Note Document; or (e) as consented to in writing by the Issuer. Notwithstanding anything to the contrary set forth in this <u>Section 11.18</u> or otherwise, nothing herein shall prevent a Recipient or its Permitted Recipients from complying with any legal requirements (including, without limitation, pursuant to any rule, regulation, stock exchange requirement, self-regulatory body, supervisory authority, other applicable judicial or governmental order, legal process, fiduciary or similar duties or otherwise) to disclose any Confidential Information. In addition, the Recipient and its Permitted Recipients may disclose Confidential Information if so requested by a governmental, self-regulatory or supervisory authority or examiner (including the National Association of Insurance Commissioners). Each Note Party hereby acknowledges and agrees that, subject to the restrictions on disclosure of Confidential Information as provided in this <u>Section 11.18</u>, the Recipient and their respective Affiliates are in the business of making investments in and otherwise engaging in businesses which may or may not be in competition with the Note Parties or otherwise related to their and their Affiliates' respective business and that nothing herein shall, or shall be construed to, limit the Holders' or their Affiliates' ability to make such investments or engage in such businesses. Notwithstanding any other provision of this <u>Section 11.18</u>, the parties (and each employee, representative, or other agent of the parties) may disclose to any and all Persons, without limitation of any kind, the Tax treatment and any facts that may be relevant to the Tax structure of the transactions contemplated by this Agreement and the other Note Documents; <u>provided</u>, <u>however</u>, that no party (and no employee, representative, or other agent thereof) shall disclose any other information that is not relevant to an understanding of the Tax treatment and Tax structure of the transaction (including the identity of any party and any information that could lead another to determine the identity of any party), or any other information to the extent that such disclosure could reasonably result in a violation of any applicable securities law. Issuer understands and acknowledges that in the regular course of a Holder's business, such Holder may invest in companies that have issued securities that are publicly traded (each, a "**Public**

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 **Company**"). Accordingly, Issuer covenants and agrees that before providing material non-public information about a Public Company ("Public Company Information"), Issuer will provide prior written notice to the applicable compliance personnel indicated in <u>Schedule 11.18</u>. Issuer shall not disclose Public Company Information to such Holder without written authorization from such compliance personnel. Any Holder and Holder-Related Party may disclose the existence of this Agreement, the Transactions and the form of the financing, and place customary advertisements in financial and other news sources or on a home page or similar place and circulate similar promotional materials, in each case, after the effectiveness of this Agreement, including in the form of a "tombstone", which may include the size of the deal, the form of the financing, the Issuer's name, logo and a link to the Issuer's or an Affiliate's website.

**Section 11.19.** <u>Usury Savings Clause</u>. Notwithstanding any other provision herein, the aggregate interest rate charged or agreed to be paid with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest under applicable law shall not exceed the Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence) under this Agreement at any time exceeds the Highest Lawful Rate, the outstanding amount of the Notes purchased hereunder shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect. In addition, if when the Notes purchased hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is less than the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by law, the Issuer shall pay to Agent an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding the foregoing, it is the intention of Holders and the Issuer to conform strictly to any applicable usury laws. Accordingly, if any Holder contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Holder's option be applied to the outstanding amount of the Notes purchased hereunder or be refunded to the Issuer. In determining whether the interest contracted for, charged, or received by Agent or a Holder exceeds the Highest Lawful Rate, such Person may, to the extent permitted by applicable law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest, throughout the contemplated term of the Obligations hereunder.

**Section 11.20.** <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.

**Section 11.21.** <u>USA PATRIOT Act</u>. Each Holder and each Agent (for itself and not on behalf of any Holder) hereby notifies each Note Party that pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record information that identifies such Note Party, which information includes the name and address of such Note Party and other information that will allow such Holder or such Agent, as applicable, to identify such Note Party in accordance with the USA PATRIOT Act.

**Section 11.22.** <u>Disclosure</u>. Each Note Party and each Holder hereby acknowledge and agree that the Agents and/or their Affiliates and their respective Related Funds from time to time may hold investments in, and make loans to, or have other relationships with any of the Note Parties and their respective Affiliates, including the ownership, purchase and sale of Equity Interests in any Note Party and their respective Affiliates and each Holder hereby expressly consents to such relationships.

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**Section 11.23.** <u>Appointment for Perfection</u>. Each Holder hereby appoints each other Holder as its agent for the purpose of perfecting Liens, for the benefit of the Agents and the Holders, in assets which, in accordance with Article 9 of the UCC or any other applicable law can be perfected only by possession. Should any Holder obtain possession of any such Collateral, such Holder shall notify the Collateral Agent thereof, and, promptly upon Collateral Agent's request therefor shall deliver such Collateral to Collateral Agent or otherwise deal with such Collateral in accordance with Collateral Agent's instructions.

**Section 11.24.** <u>Advertising and Publicity</u>. No Note Party shall issue or disseminate to the public (by advertisement, including without limitation any "tombstone" advertisement, press release or otherwise), submit for publication or otherwise cause or seek to publish any information describing the credit or other financial accommodations made available by Holders pursuant to this Agreement and the other Note Documents without the prior written consent of the Requisite Holders. Nothing in the foregoing shall be construed to prohibit any Note Party from making any submission or filing which it is required to make by applicable Governmental Requirement (including securities laws, rules and regulations), stock exchange rules or pursuant to judicial process; <u>provided</u>, that, (a) such filing or submission shall contain only such information as is necessary to comply with such applicable Governmental Requirement, rule or judicial process and (b) unless specifically prohibited by applicable law, rule or court order, the Issuer shall promptly notify Agent of the requirement to make such submission or filing and provide Agent with a copy thereof.

**Section 11.25.** <u>Acknowledgments and Admissions</u>. The Issuer hereby acknowledges and admits that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it has been advised by counsel in the negotiation, execution and delivery of the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has made an independent decision to enter into this Agreement and the other Note Documents to which it is a party, without reliance on any representation, warranty, covenant or undertaking by any Agent or any Holder, whether written, oral or implicit, other than as expressly set out in this Agreement or in another Note Document delivered on or after the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there are no representations, warranties, covenants, undertakings or agreements by the Agents or any Holder as to the Note Documents except as expressly set out in this Agreement and the other Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) none of the Agents or any Holder has any fiduciary obligation toward it with respect to any Note Document or the Transactions contemplated thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) no partnership or joint venture exists with respect to the Note Documents between any Note Party, on the one hand, and the Agents or any Holder, on the other;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Agents are not any Note Party's agent except as otherwise provided herein in <u>Section 2.06</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither Simpson Thacher & Bartlett LLP nor Shipman & Goodwin LLP is counsel for any Note Party;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) should an Event of Default or Default occur or exist, each Holder will determine in its discretion and for its own reasons what remedies and actions it will or will not direct the Agents to exercise or take at that time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) without limiting any of the foregoing, no Note Party is relying upon any representation or covenant by the Agents or any Holder, or any representative thereof, and no such representation or covenant has been made, that any of the Agents or any Holder will, at the time of an Event of Default or Default, or at any other time, waive, negotiate, discuss, or take or refrain from taking any action permitted under the Note Documents with respect to any such Event of Default or Default or any other provision of the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Agents and the Holders have all relied upon the truthfulness of the acknowledgments in this <u>Section 11.25</u> in deciding to execute and deliver this Agreement and to become obligated hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) each Note Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the fair meaning thereof.

**Section 11.26.** <u>Third Party Beneficiaries</u>. There are no third party beneficiaries to this Agreement other than Participants to the extent set forth in <u>Section 11.07(g)</u>, the Secured Hedge Providers and, to the extent set forth herein, the Indemnitees.

**Section 11.27.** <u>Entire Agreement</u>. This Agreement, and the other Note Documents represent the final agreement among the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements among the parties.

**Section 11.28.** <u>Transferability of Securities; Restrictive Legend</u>. Each note, certificate or other instrument evidencing the Notes issued by Issuer shall be stamped or otherwise imprinted with a legend in substantially the following forms:

"THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION."

Notwithstanding the foregoing, the restrictive legend set forth above shall not be required after the date on which the securities evidenced by such note, certificate or other instrument bearing such restrictive legend no longer constitute "restricted securities" (as defined in Rule 144 promulgated under the Securities Act), and upon the request of the Holder of such Notes, Issuer, without expense to such Holder, shall issue a new note, certificate or other instrument as applicable not bearing the restrictive legend otherwise required to be borne thereby. Agent shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on assignment imposed under this Agreement or under applicable law with respect to any assignment of any interest in any Note and Agent shall have no duty or responsibility to determine whether and when the restricted legend may be removed from the Notes.

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**Section 11.29.** <u>Replacement of Notes</u>. Upon receipt by Issuer of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note, and (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (<u>provided</u> that if the Holder of such Note is, or is a nominee for, another Holder with a minimum net worth of at least $5,000,000, such Person's own unsecured agreement of indemnity shall be deemed to be satisfactory), or (b) in the case of mutilation, upon surrender and cancellation thereof, Issuer at its own expense shall execute and deliver, in lieu thereof, a new Note of the same series, dated and, in the case of a Note, bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

**Section 11.30.** <u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>. Notwithstanding anything to the contrary in any Note Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Note Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder that may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Note Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

**Section 11.31.** <u>Hedge Intercreditor Agreement</u>. Notwithstanding anything herein to the contrary, the lien and security interest granted to the Collateral Agent, for the benefit of the Secured Parties, pursuant to this Agreement and the exercise of any right or remedy by the Collateral Agent and the other Secured Parties hereunder are subject to the provisions of the Hedge Intercreditor Agreement, as applicable. In the event of any conflict between the provisions of the Hedge Intercreditor Agreement and this Agreement, other than with respect to the Agent's or the Collateral Agent's own rights, privileges and immunities, the provisions of the Hedge Intercreditor Agreement shall control.

[*Signature Pages Follow.*]

## Exhibit 4.6

**Exhibit 4.6** 

***Execution Version*** 

**FOURTH AMENDMENT TO NOTE PURCHASE AGREEMENT** 

This FOURTH AMENDMENT TO NOTE PURCHASE AGREEMENT (this "<u>Fourth</u> <u>Amendment</u>") dated as of March 26, 2026, is among WhiteHawk Income Corporation, a Delaware corporation (the "<u>Issuer</u>"), U.S. Bank Trust Company, National Association, as agent (in such capacity, together with its successors and permitted assigns in such capacity, "<u>Agent</u>") and collateral agent for the Holders and the Secured Hedge Providers (in such capacity, together with its successors and permitted assigns in such capacity, the "<u>Collateral Agent</u>" and together with the Agent, the "<u>Agents</u>") and the Holders party hereto.

**RECITALS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. WHEREAS, the Issuer, the Agent, the Collateral Agent, the Holders and the other parties party thereto are parties to that certain Note Purchase Agreement, dated as of September 17, 2024 (as amended by that certain First Amendment to Note Purchase Agreement, dated as of March 31, 2025, as further amended by that certain Second Amendment to Note Purchase Agreement, dated as of June 23, 2025, as further amended by that certain Third Amendment to Note Purchase Agreement, dated as of January 27, 2026 and as further amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the "<u>Existing Note Purchase Agreement</u>" and as amended by this Fourth Amendment, the "<u>Note</u> <u>Purchase Agreement</u>"), pursuant to which the Holders purchased Notes from the Issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. WHEREAS, the Issuer has requested that the Holders agree to amend certain provisions of the Note Purchase Agreement to, among other things, increase the amount of payments that may be made, directly or indirectly, in respect of General and Administrative Costs in any given Fiscal Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1. <u>Defined Terms</u>. Each capitalized term which is defined in the Note Purchase Agreement, but which is not defined in this Fourth Amendment, shall have the meaning ascribed such term in the Note Purchase Agreement. Unless otherwise indicated, all section references in this Fourth Amendment refer to sections of the Note Purchase Agreement.

Section 2. <u>Amendments</u><u> </u><u>to</u> <u>Existing</u><u> </u><u>Note</u><u> </u><u>Purchase</u> <u>Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Effective as of the Fourth Amendment Effective Date (as defined below), the Existing Note Purchase Agreement is hereby amended to amend and restate Section 7.18 of the Existing Note Purchase Agreement in its entirety as follows:

**Section 7.18** <u>General</u><u> </u><u>and</u><u> </u><u>Administrative</u><u> </u><u>Costs</u>. The Note Parties shall not, and shall not permit any of their Restricted Subsidiaries to, make, directly or indirectly any payments in respect of General and Administrative Costs in any Fiscal Year other than cash payments which, when aggregated with all other General and Administrative Costs paid in cash by the Note Parties or any of the Restricted Subsidiaries during such Fiscal Year, do not exceed $6,500,000 in the aggregate; <u>provided</u> that, for the purposes of this <u>Section</u> <u>7.18</u>

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only, one-time transaction-related expenses incurred in connection with any amendment to the Note Purchase Agreement or any acquisition permitted hereunder (whether structured as an acquisition, a merger, or otherwise), in each case, shall not constitute General and Administrative Costs.

Section 3. <u>Conditions</u><u> </u><u>Precedent</u>. This Fourth Amendment shall be deemed effective on the date (such date, the "<u>Fourth Amendment Effective Date</u>") when each of the following conditions is satisfied (or waived in accordance with <u>Section</u> <u>11.06</u> of the Note Purchase Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The Agents (or their counsel) shall have received (for prompt delivery to each of the Holders) from the Issuer and each Holder a counterpart of this Fourth Amendment and each other Note Document required to be executed on the Fourth Amendment Effective Date signed on behalf of such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 All fees and expenses required to be paid pursuant to (a) that certain Agency Fee Letter and (b) <u>Section</u> <u>11.02</u> of the Note Purchase Agreement and invoiced at least three (3) Business Days before the Fourth Amendment Effective Date (or such shorter period as may be agreed by the Issuer) shall have been paid in full in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 On the Fourth Amendment Effective Date after giving effect to the transactions contemplated herein, (a) no Default or Event of Default shall have occurred and be continuing, and (b) all representations and warranties made by the Note Parties contained herein or in the other Note Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the Fourth Amendment Effective Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates).

The Agent (at the direction of the Requisite Holders) shall notify the Issuer of the Fourth Amendment Effective Date, and such notice shall be conclusive and binding.

For purposes of determining compliance with the conditions specified in this <u>Section</u> <u>3</u>, each Holder that has signed this Fourth Amendment shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to such Holder, unless the Agent shall have received written notice from such Holder prior to the Fourth Amendment Effective Date specifying its objection thereto.

Section 4. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Confirmation</u>. The provisions of the Existing Note Purchase Agreement, as amended by this Fourth Amendment, shall remain in full force and effect following the Fourth Amendment Effective Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Ratification and Affirmation; Representations and Warranties</u>. The Issuer hereby (a) acknowledges the terms of this Fourth Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Note Document to which it is a party and agrees that each Note Document to which it is a party remains in full force and effect as expressly amended hereby; (c) agrees that from and after the Fourth Amendment Effective Date each reference to the Note Purchase Agreement (including in the other Note Documents) shall be deemed to be a reference to the Existing Note Purchase Agreement, as amended by this Fourth Amendment; and (d) represents and warrants to the Holders and the Agents that as of the date hereof after giving effect to this Fourth Amendment: (i) all of the representations and warranties contained in each Note Document to which it is a party are true and correct in all material respects with the same effect as though such representations and warranties had been made on the Fourth Amendment Effective Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates) and (ii) no Default or Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>No Novation</u>. This Fourth Amendment does not extinguish the obligations for the payment of money outstanding under the Existing Note Purchase Agreement or discharge or release the obligations or the liens or priority of any mortgage, pledge, security agreement or any other security therefor. Nothing herein contained shall be construed as a substitution or novation of the obligations outstanding under the Existing Note Purchase Agreement or instruments securing the same, which shall remain in full force and effect, except as modified hereby or by instruments executed concurrently herewith. Nothing expressed or implied in this Fourth Amendment shall be construed as a release or other discharge of the Note Parties from any of their obligations or liabilities under the Note Purchase Agreement or any of the other Note Documents. The Issuer hereby confirms and agrees that each Note Document to which it or its predecessor in interest is a party or to which it is a successor by operation of law is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that on and after the Fourth Amendment Effective Date, all references in any such Note Document to "the Note Purchase Agreement", "thereto", "thereof", "thereunder" or words of like import referring to the Note Purchase Agreement shall mean the Note Purchase Agreement as amended by this Fourth Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Counterparts</u>. This Fourth Amendment may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Fourth Amendment by signing any such counterpart. Delivery of an executed counterpart of this Fourth Amendment by fax or other electronic transmission (e.g.,.pdf) shall be effective as delivery of a manually executed counterpart of this Fourth Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Integration</u>. This Fourth Amendment, the Note Purchase Agreement and the other Note Documents represent the final agreement between the parties with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Issuer, the Grantors, the Guarantors, either Agent nor any Holder relative to the subject matter hereof not expressly set forth or referred to herein or in the other Note Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>GOVERNING LAW</u>. THIS FOURTH AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Payment of Expenses</u>. <u>Section</u> <u>11.02</u> of the Note Purchase Agreement is hereby incorporated by reference, *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Severability</u>. In case any provision in or obligation hereunder or other Note Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Successors</u><u> </u><u>and</u><u> </u><u>Assigns</u>. <u>Section</u> <u>11.07(a)</u> of the Note Purchase Agreement is hereby incorporated by reference, *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 <u>Note</u><u> </u><u>Document</u>. This Fourth Amendment is a "Note Document" as defined and described in the Note Purchase Agreement, and all of the terms and provisions of the Note Purchase Agreement relating to Note Documents shall apply hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 <u>Direction to the Agents.</u> Pursuant to Sections 10.03 and 11.06 of the Existing Note Purchase Agreement, the undersigned Holders, which constitute all Holders under the Existing Note Purchase Agreement, by their signatures hereto hereby consent to this Fourth Amendment and authorize and direct the Agents to execute and deliver this Fourth Amendment and to perform their duties hereunder (this "<u>Direction</u>"). In entering into this Fourth Amendment, and in taking (or refraining from) any actions under or pursuant to this Amendment, the Agents shall be protected by and shall enjoy all of the rights, immunities, privileges, protections and indemnities granted to it under the Note Purchase Agreement. Each of the undersigned Holders hereby certify that (i) it has the full power and authority to provide this Direction, (ii) this Direction has been duly executed and delivered by such Holder and this Direction constitutes a legal, valid and binding obligation of such Holder, enforceable against the undersigned in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability and (iii) the Agents shall be entitled to rely on this Direction.

***[Signature Pages Follow]***

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IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be duly executed effective as of the Fourth Amendment Effective Date.

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| | |
|:---|:---|
| **WHITEHAWK INCOME CORPORATION** | **WHITEHAWK INCOME CORPORATION** |
| By: | /s/ Jeffrey Slotterback |
| Name: Jeffrey Slotterback | Name: Jeffrey Slotterback |
| Title: Chief Financial Officer and Secretary | Title: Chief Financial Officer and Secretary |

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[*Fourth Amendment Signature Page*]

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| | | |
|:---|:---|:---|
| **AGENT**: | **U.S. BANK TRUST COMPANY,** | **U.S. BANK TRUST COMPANY,** |
|  | **NATIONAL ASSOCIATION**, as Agent | **NATIONAL ASSOCIATION**, as Agent |
|  | By: | /s/ James A. Hanley |
|  | Name: James A. Hanley | Name: James A. Hanley |
|  | Title: Senior Vice President | Title: Senior Vice President |

---

[*Fourth Amendment Signature Page*]

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| | | |
|:---|:---|:---|
| **COLLATERAL AGENT**: | **U.S. BANK TRUST COMPANY,** | **U.S. BANK TRUST COMPANY,** |
|  | **NATIONAL ASSOCIATION**, as Collateral | **NATIONAL ASSOCIATION**, as Collateral |
|  | Agent | Agent |
|  | By: | /s/ Anjum Sarwar |
|  | Name: Anjum Sarwar | Name: Anjum Sarwar |
|  | Title: VP | Title: VP |

---

[*Fourth Amendment Signature Page*]

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| | |
|:---|:---|
| **EIG CUMBERLAND PARTNERS, L.P.**, as a | **EIG CUMBERLAND PARTNERS, L.P.**, as a |
| Second Amendment Incremental Note Holder | Second Amendment Incremental Note Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: Kristin Kelly | Name: Kristin Kelly |
| Title: Managing Director | Title: Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: Kamyar Daneshvar | Name: Kamyar Daneshvar |
| Title: Associate General Counsel | Title: Associate General Counsel |
| **ART ELECTRO, S.C.SP.**, as a Holder and a | **ART ELECTRO, S.C.SP.**, as a Holder and a |
| Second Amendment Incremental Note Holder | Second Amendment Incremental Note Holder |
| By: ART Electro GP S.à r.l., its general partner | By: ART Electro GP S.à r.l., its general partner |
| By: | /s/ Julie Harnett |
| Name: Julie Harnett | Name: Julie Harnett |
| Title: Manager | Title: Manager |
| By: | /s/ Jean-Yves Corneau |
| Name: Jean-Yves Corneau | Name: Jean-Yves Corneau |
| Title: Manager | Title: Manager |
| **EIG UPSTREAM PARTNERS, L.P.**, as a Holder | **EIG UPSTREAM PARTNERS, L.P.**, as a Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: Kristin Kelly | Name: Kristin Kelly |
| Title: Managing Director | Title: Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: Kamyar Daneshvar | Name: Kamyar Daneshvar |
| Title: Associate General Counsel | Title: Associate General Counsel |

---

[*Fourth Amendment Signature Page*]

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| | |
|:---|:---|
| **PACIFIC INDEMNITY COMPANY**, as a Holder | **PACIFIC INDEMNITY COMPANY**, as a Holder |
| and a Second Amendment Incremental Note Holder | and a Second Amendment Incremental Note Holder |
| By: EIG Credit Management Company, LLC, its | By: EIG Credit Management Company, LLC, its |
| manager | manager |
| By: | /s/ Kristin Kelly |
| Name: Kristin Kelly | Name: Kristin Kelly |
| Title: Managing Director | Title: Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: Kamyar Daneshvar | Name: Kamyar Daneshvar |
| Title: Associate General Counsel | Title: Associate General Counsel |
| **CARDINAL ENERGY LP**, as a Holder and a | **CARDINAL ENERGY LP**, as a Holder and a |
| Second Amendment Incremental Note Holder | Second Amendment Incremental Note Holder |
| By: EIG Credit Management Company, LLC, its | By: EIG Credit Management Company, LLC, its |
| manager | manager |
| By: | /s/ Kristin Kelly |
| Name: Kristin Kelly | Name: Kristin Kelly |
| Title: Managing Director | Title: Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: Kamyar Daneshvar | Name: Kamyar Daneshvar |
| Title: Associate General Counsel | Title: Associate General Counsel |
| **EIG RIVER ENERGY PARTNERS L.P.**, as a | **EIG RIVER ENERGY PARTNERS L.P.**, as a |
| Holder | Holder |
| By: EIG Credit Management Company, LLC, its | By: EIG Credit Management Company, LLC, its |
| manager | manager |
| By: | `/s/ Kristin Kelly |
| Name: Kristin Kelly | Name: Kristin Kelly |
| Title: Managing Director | Title: Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: Kamyar Daneshvar | Name: Kamyar Daneshvar |
| Title: Associate General Counsel | Title: Associate General Counsel |

---

[*Fourth Amendment Signature Page*]

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| | |
|:---|:---|
| **EIG BANDELIER PARTNERS, L.P.**, as a | **EIG BANDELIER PARTNERS, L.P.**, as a |
| Holder | Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: Kristin Kelly | Name: Kristin Kelly |
| Title: Managing Director | Title: Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: Kamyar Daneshvar | Name: Kamyar Daneshvar |
| Title: Associate General Counsel | Title: Associate General Counsel |

---

[*Fourth Amendment Signature Page*]

## Exhibit 4.7

**Exhibit 4.7** 

**FIFTH AMENDMENT TO NOTE PURCHASE AGREEMENT** 

This FIFTH AMENDMENT TO NOTE PURCHASE AGREEMENT (this "Fifth A<u>mendment</u>") dated as of March 30, 2026, is among WhiteHawk Income Corporation, a Delaware corporation (the "<u>Issuer</u>"), U.S. Bank Trust Company, National Association, as agent (in such capacity, together with its successors and permitted assigns in such capacity, "Agent") and collateral agent for the Holders and the Secured Hedge Providers (in such capacity, together with its successors and permitted assigns in such capacity, the "<u>Collateral Agent</u>" and together with the Agent, the "<u>Agents</u>") and the Holders party hereto.

**RECITALS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. WHEREAS, the Issuer, the Agent, the Collateral Agent, the Holders and the other parties party thereto are parties to that certain Note Purchase Agreement, dated as of September 17, 2024 (as amended by that certain First Amendment to Note Purchase Agreement, dated as of March 31, 2025, as further amended by that certain Second Amendment to Note Purchase Agreement, dated as of June 23, 2025, as further amended by that certain Third Amendment to Note Purchase Agreement, dated as of January 27, 2026, as further amended by that certain Fourth Amendment to Note Purchase Agreement, dated as of March 26, 2026 and as further amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the "<u>Existing Note Purchase Agreement</u>" and as amended by this Fifth Amendment, the "<u>Note Purchase Agreement</u>"), pursuant to which the Holders purchased Notes from the Issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. WHEREAS, the Issuer intends to authorize and issue 37,780 shares of a new series of preferred stock designated as "Series D Preferred Stock" (the "<u>Series D Preferred Shares</u>") pursuant to the Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation to be dated on or about the date hereof (the "<u>Series D Certificate of Designations</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. WHEREAS, the Issuer has requested that the Holders agree to amend certain provisions of the Note Purchase Agreement to, among other things, permit certain transactions related to the Series D Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1. <u>Defined Terms</u>. Each capitalized term which is defined in the Note Purchase Agreement, but which is not defined in this Fifth Amendment, shall have the meaning ascribed such term in the Note Purchase Agreement. Unless otherwise indicated, all section references in this Fifth Amendment refer to sections of the Note Purchase Agreement.

Section 2. <u>Amendments to Existing Note Purchase Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Effective as of the Fifth Amendment Effective Date (as defined below), the Existing Note Purchase Agreement is hereby amended to (i) delete the stricken text (indicated textually in the same manner as the following example: **stricken text**) and (ii) add the double-underlined text (indicated textually in the same manner as the following example:

------

**<u>double-underlined text</u>**), in each case, as set forth in the pages of the Note Purchase Agreement attached as <u>Exhibit A</u> hereto.

Section 3. <u>Conditions Precedent</u>. This Fifth Amendment shall be deemed effective on the date (such date, the "<u>Fifth Amendment Effective Date</u>") when each of the following conditions is satisfied (or waived in accordance with <u>Section 11.06</u> of the Note Purchase Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The Agents (or their counsel) shall have received (for prompt delivery to each of the Holders) from the Issuer and each Holder a counterpart of this Fifth Amendment and each other Note Document required to be executed on the Fifth Amendment Effective Date signed on behalf of such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The Agent and the Holders shall have received a certificate from a Responsible Officer of the Issuer dated as of the Fifth Amendment Effective Date certifying that attached thereto is a true and correct fully-executed copy of the Series D Certificate of Designations, which shall be in form and substance reasonably satisfactory to the Holders

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 All fees and expenses required to be paid pursuant to (a) that certain Agency Fee Letter and (b) <u>Section 11.02</u> of the Note Purchase Agreement and invoiced at least three (3) Business Days before the Fifth Amendment Effective Date (or such shorter period as may be agreed by the Issuer) shall have been paid in full in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 On the Fifth Amendment Effective Date after giving effect to the transactions contemplated herein, (a) no Default or Event of Default shall have occurred and be continuing, and (b) all representations and warranties made by the Note Parties contained herein or in the other Note Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the Fifth Amendment Effective Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 The Issuer shall have delivered to the Agents and the Holders a certificate of a Financial Officer of the Issuer certifying as to matters set forth in <u>Sections 3.2</u> and <u>3.4</u>.

The Agent (at the direction of the Requisite Holders) shall notify the Issuer of the Fifth Amendment Effective Date, and such notice shall be conclusive and binding.

For purposes of determining compliance with the conditions specified in this <u>Section 3</u>, each Holder that has signed this Fifth Amendment shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to such Holder, unless the Agent shall have received written notice from such Holder prior to the Fifth Amendment Effective Date specifying its objection thereto.

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Section 4. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Confirmation</u>. The provisions of the Existing Note Purchase Agreement, as amended by this Fifth Amendment, shall remain in full force and effect following the Fifth Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Ratification and Affirmation; Representations and Warranties</u>. The Issuer hereby (a) acknowledges the terms of this Fifth Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Note Document to which it is a party and agrees that each Note Document to which it is a party remains in full force and effect as expressly amended hereby; (c) agrees that from and after the Fifth Amendment Effective Date each reference to the Note Purchase Agreement (including in the other Note Documents) shall be deemed to be a reference to the Existing Note Purchase Agreement, as amended by this Fifth Amendment; and (d) represents and warrants to the Holders and the Agents that as of the date hereof after giving effect to this Fifth Amendment: (i) all of the representations and warranties contained in each Note Document to which it is a party are true and correct in all material respects with the same effect as though such representations and warranties had been made on the Fifth Amendment Effective Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates) and (ii) no Default or Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>No Novation</u>. This Fifth Amendment does not extinguish the obligations for the payment of money outstanding under the Existing Note Purchase Agreement or discharge or release the obligations or the liens or priority of any mortgage, pledge, security agreement or any other security therefor. Nothing herein contained shall be construed as a substitution or novation of the obligations outstanding under the Existing Note Purchase Agreement or instruments securing the same, which shall remain in full force and effect, except as modified hereby or by instruments executed concurrently herewith. Nothing expressed or implied in this Fifth Amendment shall be construed as a release or other discharge of the Note Parties from any of their obligations or liabilities under the Note Purchase Agreement or any of the other Note Documents. The Issuer hereby confirms and agrees that each Note Document to which it or its predecessor in interest is a party or to which it is a successor by operation of law is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that on and after the Fifth Amendment Effective Date, all references in any such Note Document to "the Note Purchase Agreement", "thereto", "thereof", "thereunder" or words of like import referring to the Note Purchase Agreement shall mean the Note Purchase Agreement as amended by this Fifth Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Counterparts</u>. This Fifth Amendment may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Fifth Amendment by signing any such counterpart. Delivery of an executed counterpart of this Fifth Amendment by fax or other electronic transmission (e.g.,.pdf) shall be effective as delivery of a manually executed counterpart of this Fifth Amendment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Integration</u>. This Fifth Amendment, the Note Purchase Agreement and the other Note Documents represent the final agreement between the parties with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Issuer, the Grantors, the Guarantors, either Agent nor any Holder relative to the subject matter hereof not expressly set forth or referred to herein or in the other Note Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>GOVERNING LAW</u>. THIS FIFTH AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Payment of Expenses</u>. <u>Section 11.02</u> of the Note Purchase Agreement is hereby incorporated by reference, *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Severability</u>. In case any provision in or obligation hereunder or other Note Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Successors and Assigns</u>. <u>Section 11.07(a)</u> of the Note Purchase Agreement is hereby incorporated by reference, *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 <u>Note Document</u>. This Fifth Amendment is a "Note Document" as defined and described in the Note Purchase Agreement, and all of the terms and provisions of the Note Purchase Agreement relating to Note Documents shall apply hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 <u>Direction to the Agents.</u> Pursuant to Sections 10.03 and 11.06 of the Existing Note Purchase Agreement, the undersigned Holders, which constitute all Holders under the Existing Note Purchase Agreement, by their signatures hereto hereby consent to this Fifth Amendment and authorize and direct the Agents to execute and deliver this Fifth Amendment and to perform their duties hereunder (this "<u>Direction</u>"). In entering into this Fifth Amendment, and in taking (or refraining from) any actions under or pursuant to this Amendment, the Agents shall be protected by and shall enjoy all of the rights, immunities, privileges, protections and indemnities granted to it under the Note Purchase Agreement. Each of the undersigned Holders hereby certify that (i) it has the full power and authority to provide this Direction, (ii) this Direction has been duly executed and delivered by such Holder and this Direction constitutes a legal, valid and binding obligation of such Holder, enforceable against the undersigned in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability and (iii) the Agents shall be entitled to rely on this Direction.

***[Signature Pages Follow]***

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IN WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment to be duly executed effective as of the Fifth Amendment Effective Date.

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| | |
|:---|:---|
| **WHITEHAWK INCOME CORPORATION** | **WHITEHAWK INCOME CORPORATION** |
| By: | /s/ Jeffrey Slotterback |
| Name: | Jeffrey Slotterback |
| Title: | Chief Financial Officer and Secretary |

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[*Fifth Amendment Signature Page*]

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| | | |
|:---|:---|:---|
| **AGENT:** | **U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Agent** | **U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Agent** |
|  | By: | /s/ James A. Hanley |
|  | Name: | James A. Hanley |
|  | Title: | Senior Vice President |

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[*Fifth Amendment Signature Page*]

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| | | |
|:---|:---|:---|
| **COLLATERAL AGENT:** | **U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,** as Collateral Agent | **U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,** as Collateral Agent |
|  | By: | /s/ Anjum Sarwar |
|  | Name: | Anjum Sarwar |
|  | Title: | Vice President |

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[*Fifth Amendment Signature Page*]

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| | |
|:---|:---|
| **EIG CUMBERLAND PARTNERS, L.P.,** as a | **EIG CUMBERLAND PARTNERS, L.P.,** as a |
| Second Amendment Incremental Note Holder | Second Amendment Incremental Note Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: | Kristin Kelly |
| Title: | Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: | Kamyar Daneshvar |
| Title: | Associate General Counsel |
| **ART ELECTRO, S.C.SP.**, as a Holder and a Second Amendment Incremental Note Holder | **ART ELECTRO, S.C.SP.**, as a Holder and a Second Amendment Incremental Note Holder |
| By: | ART Electro GP S.à r.l., its general partner |
| By: | /s/ Julie Harnett |
| Name: | Julie Harnett |
| Title: | Manager |
| By: | /s/ Jean-Yves Corneau |
| Name: | Jean-Yves Corneau |
| Title: | Manager |
| **EIG UPSTREAM PARTNERS, L.P.**, as a Holder | **EIG UPSTREAM PARTNERS, L.P.**, as a Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: | Kristin Kelly |
| Title: | Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: | Kamyar Daneshvar |
| Title: | Associate General Counsel |

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[*Fifth Amendment Signature Page*]

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| | |
|:---|:---|
| **PACIFIC INDEMNITY COMPANY,** as a Holder and a Second Amendment Incremental Note Holder | **PACIFIC INDEMNITY COMPANY,** as a Holder and a Second Amendment Incremental Note Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: | Kristin Kelly |
| Title: | Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: | Kamyar Daneshvar |
| Title: | Associate General Counsel |
| **CARDINAL ENERGY LP**, as a Holder and a Second Amendment Incremental Note Holder | **CARDINAL ENERGY LP**, as a Holder and a Second Amendment Incremental Note Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: | Kristin Kelly |
| Title: | Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: | Kamyar Daneshvar |
| Title: | Associate General Counsel |
| **EIG RIVER ENERGY PARTNERS L.P.**, **as a** Holder | **EIG RIVER ENERGY PARTNERS L.P.**, **as a** Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: | Kristin Kelly |
| Title: | Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: | Kamyar Daneshvar |
| Title: | Associate General Counsel |

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[*Fifth Amendment Signature Page*]

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| | |
|:---|:---|
| **EIG BANDELIER PARTNERS, L.P.,** as a Holder | **EIG BANDELIER PARTNERS, L.P.,** as a Holder |
| By: EIG Credit Management Company, LLC, its manager | By: EIG Credit Management Company, LLC, its manager |
| By: | /s/ Kristin Kelly |
| Name: | Kristin Kelly |
| Title: | Managing Director |
| By: | /s/ Kamyar Daneshvar |
| Name: | Kamyar Daneshvar |
| Title: | Associate General Counsel |

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[*Fifth Amendment Signature Page*]

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**<u>Exhibit A</u>** 

[Attached.]

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***Execution Version<u>L&W Draft 3.26.26</u>***

**WHITEHAWK INCOME CORPORATION** 

SENIOR SECURED FIRST LIEN NOTES DUE 2030

**$251,000,000 NOTE PURCHASE AGREEMENT** 

**DATED AS OF SEPTEMBER 17, 2024** 

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**<u>**TABLE OF CONTENTS**</u>** 

Article I.

DEFINITIONS AND INTERPRETATION

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| | | |
|:---|:---|:---|
|  **Section 1.01** | Terms Defined Above | 1 |
|  **Section 1.02** | Definitions | 1 |
|  **Section 1.03** | Accounting Terms | 48 |
|  **Section 1.04** | Interpretation, etc. | 49 |
|  **Section 1.05** | Calculations of Total PDP PV-10 Value | 50 |
|  **Section 1.06** | Free Cash Flow Distributions and Prepayments Spreadsheet | 53 |
|  Article II. | Article II. |  |
|  PURCHASE AND SALE OF NOTES | PURCHASE AND SALE OF NOTES |  |
|  **Section 2.01** | Note Purchase | 53 |
|  **Section 2.02** | The Notes; Purchases, Conversions and Continuations of Notes | 53 |
|  **Section 2.03** | Requests for Notes | 54 |
|  **Section 2.04** | Use of Proceeds | 54 |
|  **Section 2.05** | Evidence of Debt; Register; Holders' Books and Records; Notes | 55 |
|  **Section 2.06** | Interest; Fees | 55 |
|  **Section 2.07** | Repayment of Notes | 56 |
|  **Section 2.08** | Voluntary Prepayments | 56 |
|  **Section 2.09** | Mandatory Prepayments | 57 |
|  **Section 2.10** | Application of Payments | 61 |
|  **Section 2.11** | General Provisions Regarding Payments | 61 |
|  **Section 2.12** | Ratable Sharing | 63 |
|  **Section 2.13** | Increased Costs | 64 |
|  **Section 2.14** | Taxes; Withholding, etc. | 64 |
|  **Section 2.15** | Alternate Rate of Interest | 68 |
|  **Section 2.16** | Incremental Notes | 70 |
|  Article III.<br> CONDITIONS PRECEDENT | Article III.<br> CONDITIONS PRECEDENT |  |
|  **Section 3.01** | Closing Date | 72 |
|  Article IV.<br> REPRESENTATIONS AND WARRANTIES | Article IV.<br> REPRESENTATIONS AND WARRANTIES |  |
|  **Section 4.01** | Organization; Powers | 76 |
|  **Section 4.02** | Authority; Enforceability | 76 |
|  **Section 4.03** | Approvals; No Conflicts | 77 |
|  **Section 4.04** | Financial Condition; No Material Adverse Effect | 77 |
|  **Section 4.05** | Litigation | 77 |
|  **Section 4.06** | Environmental Matters | 77 |
|  **Section 4.07** | Compliance with Laws and Agreements; No Defaults, Event of Default | 79 |
|  **Section 4.08** | Investment Company Act | 80 |

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| | | |
|:---|:---|:---|
|  **Section 4.09** | Taxes | 80 |
|  **Section 4.10** | ERISA | 80 |
|  **Section 4.11** | Disclosure; No Material Misstatements | 81 |
|  **Section 4.12** | Insurance | 81 |
|  **Section 4.13** | Subsidiaries; Foreign Operations | 82 |
|  **Section 4.14** | Properties; Titles, Etc. | 82 |
|  **Section 4.15** | [Reserved] | 83 |
|  **Section 4.16** | No Operations | 83 |
|  **Section 4.17** | [Reserved] | 83 |
|  **Section 4.18** | Swap Agreements and Qualified ECP Guarantor | 83 |
|  **Section 4.19** | Use of Proceeds | 83 |
|  **Section 4.20** | Solvency | 84 |
|  **Section 4.21** | Anti-Corruption Laws, Sanctions and USA PATRIOT Act | 84 |
|  **Section 4.22** | Affected Financial Institutions | 84 |
|  **Section 4.23** | Collateral Documents | 84 |
|  **Section 4.24** | Senior Debt | 84 |
|  **Section 4.25** | Private Offering | 84 |
|  Article V.<br> REPRESENTATIONS OF HOLDERS | Article V.<br> REPRESENTATIONS OF HOLDERS |  |
|  **Section 5.01** | Organization and Standing | 85 |
|  **Section 5.02** | Authorization; Enforceability | 85 |
|  **Section 5.03** | Investment | 85 |
|  **Section 5.04** | Accredited Investor | 85 |
|  **Section 5.05** | No Resale or Repurchase | 85 |
|  **Section 5.06** | Private Placement | 85 |
|  **Section 5.07** | Knowledge and Experience | 86 |
|  **Section 5.08** | No Materials | 86 |
|  **Section 5.09** | Transfer Restrictions | 86 |
|  **Section 5.10** | Offers and Sales Only in Certain Circumstances | 86 |
|  **Section 5.11** | Subsequent Purchaser Notification | 87 |
|  Article VI.<br> AFFIRMATIVE COVENANTS | Article VI.<br> AFFIRMATIVE COVENANTS |  |
|  **Section 6.01** | Financial Statements; Other Information | 87 |
|  **Section 6.02** | Notices of Material Events | 93 |
|  **Section 6.03** | Existence; Conduct of Business | 93 |
|  **Section 6.04** | Payment of Taxes | 94 |
|  **Section 6.05** | [Reserved] | 94 |
|  **Section 6.06** | Insurance | 94 |
|  **Section 6.07** | Books and Records; Inspection Rights | 94 |
|  **Section 6.08** | Compliance with Laws | 94 |
|  **Section 6.09** | Environmental Matters | 95 |
|  **Section 6.10** | Further Assurances | 96 |
|  **Section 6.11** | Reserve Reports | 97 |

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| | | |
|:---|:---|:---|
|  **Section 6.12** | Title Information | 98 |
|  **Section 6.13** | Collateral and Guaranty Agreements | 98 |
|  **Section 6.14** | ERISA Compliance | 100 |
|  **Section 6.15** | Commodity Exchange Act Keepwell Provisions | 101 |
|  **Section 6.16** | Deposit Accounts and Securities Accounts | 101 |
|  **Section 6.17** | Use of Proceeds | 101 |
|  **Section 6.18** | Swap Agreements | 101 |
|  **Section 6.19** | Post-Closing Covenant | 103 |
|  **Section 6.20** | Minimum Liquidity | 103 |
|  **Section 6.21** | Upstreaming of Cash | 103 |
|  Article VII.<br> NEGATIVE COVENANTS | Article VII.<br> NEGATIVE COVENANTS |  |
|  **Section 7.01** | Financial Covenants | 104 |
|  **Section 7.02** | Debt | 106 |
|  **Section 7.03** | Liens | 107 |
|  **Section 7.04** | Dividends and Distributions | 107 |
|  **Section 7.05** | Investments and Advances | 110 |
|  **Section 7.06** | Nature of Business; Wholly-Owned Subsidiaries; No International Operations | 111 |
|  **Section 7.07** | ERISA Compliance | 112 |
|  **Section 7.08** | Mergers, Etc. | 112 |
|  **Section 7.09** | Sale of Properties and Termination of Swap Agreements | 113 |
|  **Section 7.10** | Transactions with Affiliates | 114 |
|  **Section 7.11** | Subsidiaries | 115 |
|  **Section 7.12** | Negative Pledge Agreements; Dividend Restrictions | 115 |
|  **Section 7.13** | Swap Agreements | 115 |
|  **Section 7.14** | Designation and Conversion of Restricted and Unrestricted Subsidiaries114 | 117 |
|  **Section 7.15** | Organizational Documents | 117 |
|  **Section 7.16** | Changes in Fiscal Year | 117 |
|  **Section 7.17** | Amendments to Material Agreements | 117 |
|  **Section 7.18** | General and Administrative Costs | 118 |
|  Article VIII. | Article VIII. |  |
|  PASSIVE HOLDING COMPANY STATUS OF THE ISSUER | PASSIVE HOLDING COMPANY STATUS OF THE ISSUER |  |
|  Article IX. | Article IX. |  |
|  EVENTS OF DEFAULT; REMEDIES | EVENTS OF DEFAULT; REMEDIES |  |
|  **Section 9.01** | Events of Default | 118 |
|  **Section 9.02** | Treatment of Make-Whole Amount and Prepayment Fee | 121 |
|  **Section 9.03** | Application of Funds | 122 |
|  **Section 9.04** | Credit Bidding | 123 |

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| | | |
|:---|:---|:---|
|  Article X.<br> AGENTS | Article X.<br> AGENTS |  |
|  **Section 10.01** | Appointment of Agents | 125 |
|  **Section 10.02** | Powers and Duties | 125 |
|  **Section 10.03** | General Immunity | 126 |
|  **Section 10.04** | Holders' Representations, Warranties and Acknowledgment | 129 |
|  **Section 10.05** | Successor Agents | 130 |
|  **Section 10.06** | Delegation of Duties | 131 |
|  **Section 10.07** | Collateral Documents | 131 |
|  **Section 10.08** | Posting of Approved Electronic Communications | 132 |
|  **Section 10.09** | Proofs of Claim | 133 |
|  **Section 10.10** | Hedge Intercreditor Agreement | 134 |
|  **Section 10.11** | Indemnification | 134 |
|  Article XI.<br> MISCELLANEOUS | Article XI.<br> MISCELLANEOUS |  |
|  **Section 11.01** | Notices | 135 |
|  **Section 11.02** | Expenses | 135 |
|  **Section 11.03** | Indemnity; Limitation of Liability | 136 |
|  **Section 11.04** | Set Off | 137 |
|  **Section 11.05** | [Reserved] | 138 |
|  **Section 11.06** | Amendments and Waivers | 138 |
|  **Section 11.07** | Successors and Assigns; Assignments | 140 |
|  **Section 11.08** | Survival of Representations, Warranties and Agreements | 143 |
|  **Section 11.09** | No Waiver; Remedies Cumulative | 143 |
|  **Section 11.10** | Marshalling; Payments Set Aside | 143 |
|  **Section 11.11** | Severability | 143 |
|  **Section 11.12** | Obligations Several; Independent Nature of Holders' Rights | 143 |
|  **Section 11.13** | Tax Treatment | 144 |
|  **Section 11.14** | Headings | 144 |
|  **Section 11.15** | APPLICABLE LAW | 144 |
|  **Section 11.16** | CONSENT TO JURISDICTION | 144 |
|  **Section 11.17** | WAIVER OF JURY TRIAL | 144 |
|  **Section 11.18** | Confidentiality | 145 |
|  **Section 11.19** | Usury Savings Clause | 146 |
|  **Section 11.20** | Counterparts | 147 |
|  **Section 11.21** | USA PATRIOT Act | 147 |
|  **Section 11.22** | Disclosure | 147 |
|  **Section 11.23** | Appointment for Perfection | 147 |
|  **Section 11.24** | Advertising and Publicity | 147 |
|  **Section 11.25** | Acknowledgments and Admissions | 148 |
|  **Section 11.26** | Third Party Beneficiaries | 149 |
|  **Section 11.27** | Entire Agreement | 149 |
|  **Section 11.28** | Transferability of Securities; Restrictive Legend | 149 |
|  **Section 11.29** | Replacement of Notes | 149 |
|  **Section 11.30** | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 150 |
|  **Section 11.31** | Hedge Intercreditor Agreement | 150 |

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| | | |
|:---|:---|:---|
| **APPENDICES:** | A | Commitments |
|  | B | Notice Addresses |
|  | C | Free Cash Flow Distributions and Prepayments |
|  | D | Free Cash Flow Distributions and Prepayments Spreadsheet |
| **SCHEDULES:** | 1.02(a) | Guarantors |
|  | 1.02(b) | Material Contracts |
|  | 4.13 | Subsidiaries |
|  | 4.18 | Swap Agreements |
|  | 7.04 | Permitted Restricted Payments |
|  | 7.05 | Existing Investments |
|  | 11.18 | Compliance Personnel |
| **EXHIBITS:** | A | Form of Note Purchase Notice |
|  | B-1 | Form of Note |
|  | B-2 | Form of Incremental Note |
|  | C | Form of Closing Date Certificate |
|  | D | Form of Compliance Certificate |
|  | E | Form of Solvency Certificate |
|  | F | Form of Guaranty Agreement |
|  | G | Form of Pledge and Security Agreement |
|  | H | Form of Assignment Agreement |
|  | I-1-4 | Form of U.S. Tax Compliance Certificate |
|  | J | Form of Reserve Report Certificate |
|  | K | Form of Free Cash Flow Utilization Certificate |
|  | L | Form of Mortgage |

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**WHITEHAWK INCOME CORPORATION** 

This **NOTE PURCHASE AGREEMENT**, dated as of September 17, 2024 (together with any amendments, restatements, amendments and restatements, supplements or other modifications hereto, the "**Agreement**"), is entered into by and among **WHITEHAWK INCOME CORPORATION**, a Delaware corporation (the "**Issuer**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pacific Indemnity Company, as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG River Energy Partners, L.P., as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG Upstream Partners, L.P., as Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG Bandelier Partners, L.P., as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cardinal Energy LP, as a Holder

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ART Electro, S.C.SP., as a Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EIG Cumberland Partners, L.P., as a Holder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. Bank Trust Company, National Association, as agent (in such capacity, the "**Agent**") and
collateral agent for the Holders and the Secured Hedge Providers (in such capacity, the "**Collateral Agent** ").

**W I T N E S E T H:** 

In consideration of the mutual covenants and agreements contained herein and the Notes to be purchased by Holders, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**ARTICLE I.** 

**DEFINITIONS AND INTERPRETATION** 

**Section 1.01** <u>Terms Defined Above</u>. As used in this Agreement, each term defined above has the meaning indicated above.

**Section 1.02** <u>Definitions</u>. The following terms used herein, including in the preamble, recitals, exhibits and schedules hereto, shall have the following meanings:

"**ABR**" means, for any day, a rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day <u>plus</u> <sup>1</sup>⁄<sub>2</sub> of 1% (or if such day is not a Business Day, the immediately preceding Business Day) and (c) if available, the Adjusted Term SOFR Rate as determined two (2) U.S. Government Securities Business Days prior to such day (or if such day is not a Business Day, the immediately preceding Business Day); <u>provided</u> that for the purpose of this definition, the Adjusted Term SOFR Rate for any day shall be based on the Term SOFR Reference Rate at approximately 12:00 p.m., New York time on such day (or any amended publication time for the

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Term SOFR Reference Rate, as specified by the CME Term SOFR Administrator in the Term SOFR Reference Rate methodology). Any change in the ABR due to a change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR Rate shall be effective as of the opening of business on the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR Rate, respectively. For the avoidance of doubt, if the ABR shall be less than 3.75%, such rate shall be deemed to be 3.75% for purposes of this Agreement. In the event the Agent on any interest determination date is required, but unable, to determine a benchmark rate in accordance with at least of the procedures described above, ABR will be the Adjusted Term SOFR Rate as determined on the previous interest determination date.

"**ABR Note**" means Notes the rate of interest applicable to which is based upon the ABR. For the avoidance of doubt, Notes shall constitute ABR Notes only as set forth in <u>Section 2.15(a)</u> or as otherwise expressly set forth herein.

"**Accepting Holder**" as defined in <u>Section 2.09(g)</u>.

"**Acquired Assets**" means the Assets acquired pursuant to the Specified Acquisition Agreement.

"**Acquired Assets Reserve Report**" means that certain reserve report prepared by Encore Analytics, LLC in respect of the Acquired Assets of the Issuer, with an as of date of August 1, 2024.

"**Acquired PHX Assets**" means the rights, properties and assets of the Surviving Corporation (as defined in the Specified PHX Merger Agreement) and its subsidiaries acquired pursuant to the Specified PHX Merger Agreement.

"**Acquired SJM Assets**" means the Assets (as defined in the Specified SJM Acquisition Agreement) acquired pursuant to the Specified SJM Acquisition Agreement.

"**Adjusted Cash Flow from Operating Activities**" means, for any period, (a) Cash Flow from Operating Activities <u>minus</u> (b) to the extent included in Cash Flow From Operating Activities, any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries for such period, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments.

"**Administrative Services Agreement**" means that certain Administrative Services Agreement, dated as of March 1, 2022, between, the Issuer and WhiteHawk Management, LLC.

"**Adjusted Term SOFR Rate**" means an interest rate *per annum* equal to the Term SOFR Rate; <u>provided</u> that if the Adjusted Term SOFR Rate as so determined would be less than 2.75%, such rate shall be deemed to be 2.75% for the purposes of this Agreement.

"**Affected Financial Institution**" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

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"**Affiliate" means**, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified; <u>provided</u> that any Person that directly owns or holds twenty percent (20%) or more of any class of Equity Interests with voting power in such specified Person shall be deemed to be an Affiliate.

"**Affiliated Investor**" means any Person to the extent it owns or holds, directly or indirectly, or its Affiliate (other than the Issuer or any of its Subsidiaries) owns or holds, directly or indirectly, any Equity Interests of the Issuer or any of its Subsidiaries.

"**Agent**" as defined in the preamble hereto. "Agents" means the Agent and the Collateral Agent.

"**Agent Fee Letter**" means that certain Fee Letter dated as of the Closing Date between the Issuer and the Agent.

"**Agent's Account**" means an account designated by Agent from time to time as the account into which Note Parties shall make all payments to Agent for the benefit of the Agent and the Holders under this Agreement and the other Note Documents.

"**Agent's Office**" means the "Agent's Office" as set forth on <u>Appendix B</u> or such other office as Agent may from time to time designate in writing to the Issuer and each Holder.

"**Aggregate Amounts Due**" as defined in <u>Section 2.12</u>. "

**Agreement**" as defined in the preamble.

"**Alternate Offer**" as defined in <u>Section 2.09(h)(iii)</u>.

"**Anti-Corruption Laws**" means all laws, rules, and regulations of any jurisdiction applicable to the Issuer or any of its Restricted Subsidiaries from time to time concerning or relating to bribery or corruption, including the FCPA.

"**Appalachia Gas**" means the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves of gas located within the States of Pennsylvania, Ohio and West Virginia.

"**Applicable Margin**" means, (a) prior to the Second Amendment Pre-Fund Date: (i) with respect to any Note (other than an ABR Note), a rate per annum equal to the Adjusted Term SOFR Rate <u>plus</u> 6.25% and (ii) with respect to any ABR Note, a rate per annum equal to ABR <u>plus</u> 5.25% and (b) on and after the Second Amendment Pre-Fund Date: (i) with respect to any Note (other than an ABR Note), a rate per annum equal to the Adjusted Term SOFR Rate <u>plus</u> 6.50% and (ii) with respect to any ABR Note, a rate per annum equal to ABR <u>plus</u> 5.50%.

"**Applicable Office**" means the office through which a Holder's investment in any Note is made.

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"**Approved Counterparty**" means (a) Citadel Energy Marketing LLC, (b) BP Energy Company or (b) any other Person who, at the time of entering into a Swap Agreement, has a long term senior unsecured debt rating (or whose guaranteeing credit support provider has a long term senior unsecured debt rating) of A-/A3 by S&P or Moody's (or their equivalent) or higher.

"**Approved Petroleum Engineers"** means (a) Netherland, Sewell & Associates, Inc., (b) Ryder Scott Company, L.P., (c) Schaper Energy Consulting LLC and (d) any other nationally recognized independent petroleum engineering firms selected by the Issuer and reasonably acceptable to the Requisite Holders.

"**Asset Coverage Ratio**" means, with respect to any date of determination, the ratio of (a) the Total PDP PV-10 Value as of such date of determination to (b) the Total Net Debt as of such date of determination.

"**Asset Sale**" means a sale, lease or sublease (as lessor or sublessor), sale and leaseback, assignment, conveyance, license, transfer or other disposition to, or any exchange of property with, any Person, in one transaction or a series of related transactions, of all or any part of any Person's businesses, assets or properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, including the Equity Interest owned by such Person (in each case of the foregoing, excluding any Casualty Event).

"**Assignment Agreement**" means an Assignment and Assumption Agreement substantially in form of <u>Exhibit H</u> or such other form reasonably acceptable to the Agent (at the direction of the Requisite Holders).

"**AUM Fee**" means the monthly asset management fee in an amount equal to 1.50% of the Issuer's total assets, payable by the Issuer to WhiteHawk Management, LLC, pursuant to Section 4(a) of the Investment Management Agreement.

"**Bail-In Action**" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"**Bail-In Legislation**" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"**Beneficial Owner**" has the meaning set forth in the definition of "Beneficial Owner" as set forth in the Trust Agreement as of the Third Amendment Effective Date.

"**Beneficial Ownership Certification**" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

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"**Beneficial Ownership Regulation**" means 31 C.F.R. § 1010.230.

"**Bloomberg**" has the meaning set forth in the definition of "Reinvestment Yield". "Board" means the Board of Governors of the Federal Reserve System of the United States of America or any successor Governmental Authority.

"**Board of Directors**" means (a) with respect to a corporation, the board of directors of the corporation or any committee thereof duly authorized to act on behalf of such board; (b) with respect to a partnership, the board of directors of the general partner of the partnership; (c) with respect to a limited liability company, the manager, managers, managing member or members or any controlling committee of managing members thereof; and (d) with respect to any other Person, the board or committee of such Person serving a similar function.

"**Business Day**" means any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the States of New York or Texas or is a day on which banking institutions located in either of such states are authorized or required by law or other governmental action to close.

"**Called Principal**" means, with respect to any Note, the amount of principal of such Note that is to be prepaid pursuant to <u>Section 2.08</u>, <u>Section 2.09(c)</u>, or <u>Section 2.09(d)</u> or has become or is declared to be immediately due and payable pursuant to <u>Section 9.01</u>, as the context requires.

"**Cash Equivalents**" means (a) securities issued or fully guaranteed or insured by the United States Government or any agency thereof and backed by the full faith and credit of the United States having maturities of not more than twelve (12) months from the date of acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits, or bankers' acceptances having in each case a tenor of not more than twelve (12) months from the date of acquisition issued by any Holder or any U.S. commercial bank or any branch or agency of a non-U.S. commercial bank licensed to conduct business in the U.S. having combined capital and surplus of not less than $500,000,000 and having a short term deposit rating of no lower than A2 or P2, as such rating is set forth from time to time by S&P or Moody's, respectively; (c) commercial paper of an issuer rated at least A-1 by S&P or P-1 by Moody's at the time of acquisition, and in either case having a tenor of not more than twelve (12) months; (d) repurchase obligations with a term of not more than one-hundred eighty (180) days for underlying securities of the types described in <u>clauses (a)</u> and <u>(b)</u> entered into with any financial institution or recognized securities dealer meeting the qualifications specified in <u>clause (b)</u> above; and <u>(e)</u> deposits in money market funds and investments investing exclusively in investments described in <u>clauses (a)</u>, <u>(b)</u>, <u>(c)</u> and <u>(d)</u> above.

"**Cash Flow From Operating Activities**" means, for any period, the cash generated from the normal business operations of the Issuer and its Restricted Subsidiaries for such period, determined in a manner consistent with (a) the Issuer's past practice and (b)(i) the line item "Net Cash Flow, Total" contained in the Issuer's precedent lease operating statements (file name "WhiteHawk LOS through May 2024 (August 2024).xlsx") delivered by the Issuer to EIG on or prior to the Closing Date, incorporating the revenue and expenses from ongoing operations of the

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Issuer and its Restricted Subsidiaries including from Oil and Gas Properties and Swap Agreements, <u>minus</u> (ii) General and Administrative Costs of the Issuer and its Restricted Subsidiaries for such period, and <u>minus</u> (iii) Consolidated Interest Expense of the Issuer and its Restricted Subsidiaries for such period.

"**Casualty Event**" means any loss, casualty or other insured damage to, or any nationalization, taking under power of eminent domain or by condemnation or similar proceeding of, any Property of the Issuer or any of its Restricted Subsidiaries.

"**CERCLA**" has the meaning set forth in the definition of "Environmental Laws".

"**Change in Control**" means the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any "person" or "group" (within the meaning of Section 13(d) or 14(d) of the Exchange Act), shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of a percentage of the total voting or economic power of all classes of capital stock of the Issuer entitled to vote generally in the election of directors, of fifty percent (50%) or more on a fully diluted basis,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the occupation of a majority of the seats (other than vacant seats) on the board of directors of the Issuer by Persons who were neither (i) directors of Issuer on the Closing Date, (ii) nominated nor approved by the board of directors of Issuer nor (iii) appointed by WhiteHawk Management LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) WhiteHawk Management LLC shall cease to be one hundred percent (100%) owned and controlled, of record and beneficially, by WhiteHawk Minerals LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) WhiteHawk Minerals LLC shall cease to be owned and controlled, of record and beneficially, fifty-one percent (51%) or more by WhiteHawk Energy LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) WhiteHawk Management LLC shall cease to Control the Issuer, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a "Change in Control" (or equivalent term as defined in any other instrument governing Material Debt) or any functionally equivalent concept under any other instrument governing Material Debt shall have occurred.

"**Closing Date**" means the date on which all of the conditions precedent set forth in <u>Section 3.01</u> have been satisfied or waived.

"**Closing Date Certificate**" means a Closing Date Certificate substantially in the form of <u>Exhibit C</u>.

"**CME Term SOFR Administrator**" means CME Group Benchmark Administration Limited as administrator of the forward-looking term Secured Overnight Financing Rate (SOFR) (or a successor administrator).

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"**Code**" means Title 11 of the United States Code entitled "Bankruptcy," as now and hereafter in effect, or any successor statute.

"**Collateral Agent**" as defined in the preamble hereto.

"**Collateral Coverage Minimum**" as defined in <u>Section 6.13(a)</u>.

"**Collateral Documents**" means Guaranty Agreement, the Pledge and Security Agreement, the Mortgages, the Control Agreements, the Hedge Intercreditor Agreement and all other instruments, documents and agreements executed by any Note Party in connection with this Agreement or any of the other Note Documents that are intended to create, perfect or evidence Liens to secure the Obligations, including, without limitation, all other security agreements, account control agreements, pledge agreements, mortgages, deeds of trust, guarantees, subordination agreements, pledges, powers of attorney and assignments now, or hereafter executed by any Note Party and delivered to the Collateral Agent to secure the Obligations, as such agreements may be amended, restated, amended and restated, modified, supplemented or restated from time to time.

"**Commitment**" means, as to each Holder, its obligation to purchase a Note from the Issuer pursuant to <u>Section 2.01(a)</u> in an aggregate amount not to exceed the amount set forth opposite such Holder's name in <u>Appendix A</u> under the caption "Commitment." The aggregate amount of the Commitments is $251,000,000.

"**Commitments**" means such commitments of all Holders in the aggregate.

"**Commodity Account**" means any "commodity account" as defined in the UCC.

"**Commodity Exchange Act**" means the Commodity Exchange Act (7 U.S.C. § 1 *et seq.*), as amended from time to time, and any successor statute, and any regulations promulgated thereunder.

"**Communications**" as defined in <u>Section 10.08(a)</u>.

"**Compliance Certificate**" means a Compliance Certificate substantially in the form of <u>Exhibit D</u>.

"**Confidential Information**" as defined in <u>Section 11.18</u>.

"**Connection Income Tax**" means Taxes described in (b) of the definition of Tax on the Overall Net Income that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"**Consolidated Interest Expense**" means, for any period, the sum (determined without duplication) of the aggregate gross interest expense of the Note Parties and their Consolidated Restricted Subsidiaries for such period. For purposes of the foregoing, gross interest expense shall be determined after giving effect to any net payments made or received by the Note Parties with respect to interest rate Swap Agreements.

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"**Consolidated Net Income**" means with respect to the Issuer and the Consolidated Restricted Subsidiaries, for any period, the aggregate of the net income (or loss) of the Issuer and the Consolidated Restricted Subsidiaries for such period determined on a consolidated basis in accordance with GAAP; <u>provided</u> that there shall be excluded, without duplication, from such net income (to the extent otherwise included therein) the following: (a) the net income of (i) any Unrestricted Subsidiary and (ii) any Person in which the Issuer or any Consolidated Restricted Subsidiary has an interest (which interest does not cause the net income of such other Person to be consolidated with the net income of the Issuer and the Consolidated Restricted Subsidiaries in accordance with GAAP), except in the case of the foregoing clauses <u>(i)</u> and <u>(ii)</u> to the extent of the amount of dividends or distributions actually paid in cash during such period by such Unrestricted Subsidiary or other Person, as the case may be, to the Issuer or to a Consolidated Restricted Subsidiary, as the case may be, from cash generated by such Person; (b) the net income (but not loss) during such period of any Consolidated Restricted Subsidiary to the extent that the declaration or payment of dividends or similar distributions or transfers or loans by that Consolidated Restricted Subsidiary is not at the time permitted by operation of the terms of its charter or any agreement, instrument or Governmental Requirement applicable to such Consolidated Restricted Subsidiary or is otherwise restricted or prohibited, in each case determined in accordance with GAAP; (c) the net income (or loss) of any Person accrued prior to the date it becomes a Consolidated Restricted Subsidiary or is merged into or consolidated with the Issuer or any of its Consolidated Restricted Subsidiaries; (d) the cumulative effect of a change in accounting principles during such period to the extent included in Consolidated Net Income; (e) any net after tax effect on income (or loss) for such period attributable to the early extinguishment, cancellation, termination or unwinding of any Debt or Swap Agreement; (f) any unrealized income (or loss) for such period attributable to hedging obligations or other derivative instruments; (g) accruals and reserves established or adjusted, or other charges required as a result of, the adoption or modification of accounting policies during such period; (h) any gains or losses attributable to writeups or writedowns of assets; and (i) any non-cash gains or losses (including any positive or negative adjustments under FASB ASC 815 as a result of changes in the fair market value of derivatives).

"**Consolidated Restricted Subsidiaries**" means any Restricted Subsidiaries that are Consolidated Subsidiaries.

"**Consolidated Subsidiaries**" means each Subsidiary of the Issuer (whether now existing or hereafter created or acquired) the financial statements of which shall be (or should have been) consolidated with the financial statements of the Issuer in accordance with GAAP.

"**Consolidated Total Net Leverage Ratio**" means, as of the last day of any fiscal quarter or "**Applicable Distribution Period**", as applicable, the ratio of Total Net Debt as of such date of determination to EBITDA for the Rolling Period or "**Applicable Distribution Period**", as applicable, then ending.

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"**Consolidation**" as defined in <u>Section 7.08</u>.

"**Control**" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "**Controlling**" and "**Controlled**" have meanings correlative thereto.

"**Control Agreement**" means a control agreement, in form and substance reasonably satisfactory to the Collateral Agent and the Requisite Holders, entered into with the Collateral Agent and the bank or securities intermediary at which any Deposit Account, Commodity Account or Securities Account is maintained by any Note Party in accordance with <u>Section 6.16</u>.

"**Conversion Notice**" means a "Conversion Notice" (or substantially similar term) as defined in the applicable Trust Agreement (in the case of the Initial Trust Agreement (the "**Initial Conversion Notice**"), as of the Third Amendment Effective Date).

"**Cure Amount**" as defined in <u>Section 7.01(c)</u>.

"**Cure Period**" as defined in <u>Section 7.01(c)</u>.

"**Debt**" means, for any Person, the sum of the following (without duplication): (a) all obligations of such Person for borrowed money or evidenced by bonds, bankers' acceptances, debentures, notes or other similar instruments; (b) all obligations of such Person (whether contingent or otherwise) in respect of letters of credit, surety or other performance bonds and similar instruments; (c) all accounts payable and all accrued expenses, liabilities or other obligations of such Person to pay the deferred purchase price of Property or services (excluding accounts payable and accrued expenses, liabilities or other obligations to pay the deferred purchase price of Property or services, from time to time incurred in the ordinary course of business which are not greater than ninety (90) days past due or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP); (d) all obligations under Finance Leases; (e) all obligations under Synthetic Leases; (f) all Debt (as defined in the other clauses of this definition) of others secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) a Lien on any Property of such Person, whether or not such Debt is assumed by such Person, to the extent of the lesser of (i) the amount of such Debt and (ii) the fair market value (as determined by the Issuer in good faith) of the Property of such Person securing such Debt; (g) all Debt (as defined in the other clauses of this definition) of others guaranteed by such Person or in which such Person otherwise assures a creditor against loss of the Debt (howsoever such assurance shall be made) to the extent of the lesser of the amount of such Debt and the maximum stated amount of such guarantee or assurance against loss; (h) all obligations or undertakings of such Person to maintain or cause to be maintained the financial position or covenants of others and, to the extent entered into as a means of providing credit support for the obligations of others and not primarily to enable such Person to acquire any such Property, all obligations or undertakings of such Person to purchase the Debt or Property of others; (i) obligations to deliver commodities, goods or services, including, without limitation, Hydrocarbons, in consideration of one or more advance payments, other than gas balancing arrangements in the ordinary course of business; (j) any Debt of a partnership for which such Person is liable either by agreement, by

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"**Declining Holder**" as defined in <u>Section 2.09(g)</u>.

"**Default**" means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

"**Demand Note**" means any non-interest bearing demand note issued by a WH OP to a WH Master Tenant as capitalization of such WH Master Tenant in connection with a particular WH DST Offering, which Demand Note shall not exceed an aggregate Dollar amount equal to six (6) months of the maximum monthly "Base Rent" (as defined in the applicable Master Lease).

"**Default Rate**" means any interest payable pursuant to <u>Section 2.06(c)</u>.

"**Deposit Account**" means any "deposit account" as defined in the UCC.

"**Discounted Value**" means, with respect to the Called Principal of any Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

"**Disqualified Capital Stock**" means any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event, matures or is mandatorily redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock), pursuant to a sinking fund obligation or otherwise, or is convertible or exchangeable for Debt or redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock) at the option of the holder thereof, in whole or in part, on or prior to the date that is ninety-one (91) days (or, if issued to an insider, three hundred sixty-six (366) days) after the Maturity Date.

"**Distributable Free Cash Flow**" means, as of any time of determination for a calendar month set forth under the heading "Distribution Month" in <u>Appendix C</u>, (a) an amount equal to Free Cash Flow (Forward) for such "Applicable CF Period", <u>minus</u> (b) the aggregate amount of Restricted Payments made during the then current period set forth under the heading "Applicable Distribution Period" in <u>Appendix C</u> prior to and at such time of determination under <u>Section 7.04(c)</u>, <u>minus</u> (c) the aggregate amount of Investments made during the then current Applicable Distribution Period prior to and at such time of determination pursuant to <u>Section 7.05(h)</u> (each such use under <u>clause (b)</u> and/or <u>clause (c)</u>, a "**Free Cash Flow Utilization**").

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"**Distribution Period A**" means the period commencing on the First Amendment Effective Date and ending on March 31, 2026.

"**Distribution Period B**" means the period commencing on April 1, 2026 and ending on September 30, 2027.

"**Distribution Period C**" means the period commencing on October 1, 2027 and continuing thereafter.

"**Distribution PF Basis**" means, (a) as to the calculation of the Consolidated Total Net Leverage Ratio, the Asset Coverage Ratio and Liquidity in connection with a Restricted Payment made pursuant to <u>Section 7.04(c)</u> and/or Investment made pursuant to <u>Section 7.05(h)</u>, such calculation will be made (i) on a pro forma basis, including giving pro forma effect (A) to the Restricted Payment and/or Distribution as if such Restricted Payment and/or Distribution occurred immediately prior to such date of determination and (B) to the extent a "CF Sweep Date" occurs during "Applicable CF Period", any prepayment of the Notes pursuant to <u>Section 2.09(a)</u> and (ii) as of (including utilizing Total Net Debt as of) the last Business Day prior to the date of such calculation and (b) as to the calculation of Liquidity in connection with <u>Section 2.09(a)</u>, such calculation will be made (i) on a pro forma basis, including giving pro forma effect to any prepayment of the Notes pursuant to <u>Section 2.09(a)</u> and (ii) as of the last Business Day prior to the date of such calculation. Pro forma calculations made pursuant to the definition of the term "Distribution PF Basis" shall be determined in good faith by a Responsible Officer of the Issuer and with supporting documentation reasonably acceptable to the Requisite Holders and with respect to the Asset Coverage Ratio, made in accordance with <u>Section 1.05</u> and <u>Section 6.01(u)</u>.

"**Dividend Incentive Fee**" means (a) the 12.50% fee of all distributions, including all Dividends (as defined in the Offering Memorandum (as defined in the Investment Management Agreement)) and Dividend Incentive Fees, earned and/or paid out by the Issuer to WhiteHawk Management, LLC during a calendar month pursuant to <u>Section 4(b)</u> of the Investment Management Agreement and (b) the Manager Fee Deferrals (as defined in the Investment Management Agreement) payable by the Issuer to WhiteHawk Management, LLC pursuant to <u>Section 4(c)</u> of the Investment Management Agreement.

"**Dollars**" and the sign "**$**" mean the lawful money of the United States of America.

"**Domestic Subsidiary**" means any Restricted Subsidiary that is organized under the laws of the United States of America or any state or territory thereof or the District of Columbia.

"**DST Agreements**" means, collectively, (a) each Trust Agreement, (b) each Master Lease, (c) each Nominee Agreement and (d) each DST PPM.

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"**DST Sell-Down**" means the syndication of class 1 beneficial interests in a WH DST pursuant to a DST PPM.

"**DST PPM**" means (a) the private placement memorandum describing the terms and conditions of the offering of class 1 beneficial interest in WhiteHawk Royalties I DST, a Delaware Statutory Trust (the "**Initial DST PPM**"), which private placement memorandum shall be in form and substance reasonably satisfactory to the Requisite Holders and (b) each private placement memorandum describing the terms of an offering of class 1 beneficial interest in a WH DST (other than WhiteHawk Royalties I DST) with substantially the same form, terms and conditions as the Initial DST PPM.

"**EBITDA**" means, for any period, Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increased (without duplication) by the following, in each case (other than in the case of <u>clause (a)(v)</u> below) to the extent deducted from or otherwise not included (and not added back) in the determination of Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provision for taxes based on income or profits or capital, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Consolidated Interest Expense for such period (net of interest income of the Issuer and the Consolidated Subsidiaries for such period), <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) depreciation, depletion and amortization expense, including the amortization of intangible assets established through purchase accounting and the, amortization of deferred financing fees for such period, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other non-cash charges reducing Consolidated Net Income for such period (<u>provided</u> that if any such non-cash charges represent an accrual or reserve for potential cash items in any future period, the cash payment in respect thereof in such future period shall be subtracted from EBITDA on a dollar-for-dollar basis to such extent, and excluding amortization of a prepaid cash item that was paid in a prior period), <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) reasonable (A) Transaction Expenses incurred on, prior to or within three (3) months of the Closing Date and (B) costs and expenses incurred in connection with any Investments, acquisitions (or purchases of assets (including those relating to Oil and Gas Properties)), asset dispositions (including those relating to Oil and Gas Properties), recapitalizations, mergers, amalgamations, repayment, refinancing amendment or modification of Debt or similar transactions after the Closing Date permitted hereunder up to an aggregate amount pursuant to this <u>clause (B)</u> not to exceed $3,000,000 in any period, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the amount of AUM Fees and Dividend Incentive Fees for such period, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any net loss from disposed, abandoned or discontinued operations; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) decreased (without duplication) by the following, in each case to the extent included in determining Consolidated Net Income for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) non-cash items increasing Consolidated Net Income for such period, excluding any non-cash items that represent the reversal of an accrual or cash reserve for any anticipated cash charges in any prior period where such accrual or cash reserve is no longer required (other than any such accrual or cash reserve that has been added back to Consolidated Net Income in calculating EBITDA in accordance with this definition), <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any net income from disposed, abandoned or discontinued operations, <u>plus</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any non-cash items with respect to cash actually received in a prior period unless such cash did not increase EBITDA in such prior period.

For the purposes of calculating EBITDA for any Rolling Period or for any "Application Distribution Period" as set forth on Appendix C, (i) if during such Rolling Period or "Application Distribution Period", as applicable, the Issuer or any Consolidated Restricted Subsidiary shall have made a Material Disposition, EBITDA for such Rolling Period or "Application Distribution Period", as applicable, shall be calculated on a Pro Forma Basis, and (ii) if during such Rolling Period or "Application Distribution Period", as applicable, the Issuer or any Consolidated Restricted Subsidiary shall have made a Material Acquisition, EBITDA for such Rolling Period or "Application Distribution Period", as applicable, shall be calculated on a Pro Forma Basis.

Notwithstanding anything to the contrary, (x) for purposes of calculating EBITDA for any Rolling Period or "Application Distribution Period", as applicable, that includes any of the fiscal quarters or calendar months, as applicable, ending July 31, 2025, August 31, 2025, September 30, 2025, October 31, 2025, November 30, 2025, December 31, 2025, January 31, 2026, February 28, 2026, March 31, 2026, April 30, 2026 or May 31, 2026, EBITDA for such fiscal quarters or calendar months, as applicable, shall be (I) for July 31, 2025, EBITDA for the calendar month ending July 31, 2025 multiplied by twelve (12); (II) for August 31, 2025, EBITDA for the two consecutive calendar months ending August 31, 2025 multiplied by six (6); (III) for September 30, 2025, EBITDA for the three consecutive calendar months ending September 30, 2025 multiplied by four (4); (IV) for October 31, 2025, EBITDA for the four consecutive calendar months ending October 31, 2025 multiplied by three (3); (V) for November 30, 2025, EBITDA for the five consecutive calendar months ending November 30, 2025 multiplied by twelve-fifths (12/5); (VI) for December 31, 2025, EBITDA for the six consecutive calendar months ending December 31, 2025 multiplied by two (2); (VII) for January 31, 2026, EBITDA for the seven consecutive calendar months ending January 31, 2026 multiplied by twelve-sevenths (12/7); (VIII) for February 28, 2026, EBITDA for the eight consecutive calendar months ending February 28, 2026 multiplied by three-halves (3/2); (IX) for March 31, 2026, EBITDA for the nine consecutive calendar months ending March 31, 2026 multiplied by four-thirds (4/3); (X) for April 30, 2026, EBITDA for the ten consecutive calendar months ending April 30, 2026 multiplied by six-fifths (6/5) and (XI) for May 31, 2026, EBITDA for the eleven consecutive calendar months ending May 31, 2026 multiplied by twelve-elevenths (12/11) and (y) (i) for purposes of the First Amendment LOS/CF Certificate EBITDA only, EBITDA for the trailing twelve months shall be deemed to be $42,000,000 and (ii) for purposes of the Second Amendment LOS/CF Certificate EBITDA only, EBITDA for the trailing twelve months shall be deemed to be $66,000,000.

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"**EEA Financial Institution**" means (a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country that is a parent of an institution described in <u>clause (a)</u> of this definition, or (c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in <u>clauses (a)</u> or <u>(b)</u> of this definition and is subject to consolidated supervision with its parent.

"**EEA Member Country**" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"**EEA Resolution Authority**" means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"**EIG**" means EIG Credit Management Company, LLC.

"**Eligible Assignee**" means (a) any Holder, (b) any Subsidiary, Related Fund or Affiliate of a Holder and (c) other than a natural Person, any Note Party or any of their respective Affiliates or any Holder or any Subsidiary, Related Fund or Affiliate thereof, any Institutional Investor or other Person, in each such case for such Institutional Investor or other Person in this <u>clause (c)</u> with the consent of the Issuer, such consent not to be unreasonably withheld, conditioned or delayed; <u>provided</u> that, (i) if an Event of Default has occurred and is continuing, the consent of the Issuer will not be required and (ii) the Issuer shall be deemed to have consented to any such Person unless it shall object thereto by written notice to the Agent within ten (10) Business Days after having received notice thereof; <u>provided further</u> that in any event "Eligible Assignee" shall not include any Affiliated Investor.

"**Environmental Claim**" means any notice, notice of noncompliance, violation or potential responsibility, legally binding directive, claim, action, suit, arbitration, complaint, proceeding, demand, abatement order or other order by any Governmental Authority or any other Person, arising (a) pursuant to or in connection with any actual or alleged violation of any Environmental Law; (b) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or (c) in connection with any actual or alleged damage, injury, threat or harm to human health or safety (to the extent relating to exposure to Hazardous Materials), natural resources or the environment.

"**Environmental Laws**" means any and all Governmental Requirements pertaining in any way to the environment, the preservation or reclamation of natural resources (including flora and fauna), induced seismicity, or the management, Release or threatened Release of any Hazardous Materials, including, to the extent applicable, the Oil Pollution Act of 1990, as amended, the Outer Continental Shelf Lands Act, the Clean Air Act, as amended, the Comprehensive Environmental, Response, Compensation, and Liability Act of 1980 ("CERCLA"), as amended, the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act of 1970, as amended, the Resource Conservation and Recovery Act of 1976 ("RCRA"), as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Endangered Species Act, as amended, the Migratory Bird Treaty Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, and the Hazardous Materials Transportation Act, as amended.

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"**Environmental Liability**" means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), directly or indirectly resulting from or based upon (a) any violation of any applicable Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) any exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement to the extent liability is assumed or imposed with respect to any of the foregoing.

"**Environmental Permit**" means any permit, registration, license, notice, approval, consent, exemption, variance, or other authorization required under or issued pursuant to applicable Environmental Laws.

"**Equity Interests**" means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest.

"**ERISA**" means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute.

"**ERISA Affiliate**" means each trade or business (whether or not incorporated) which together with the Issuer or a Restricted Subsidiary would be deemed to be a "single employer" within the meaning of Section 4001(b)(1) of ERISA or Sections 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, under Sections 414(m) or (o) of the Code.

"**ERISA Event**" means (a) the occurrence of a "Reportable Event" described in Section 4043 of ERISA with respect to a Plan subject to Title IV of ERISA (other than a Multiemployer Plan) other than a Reportable Event as to which the provision of thirty (30) days' notice to the PBGC is expressly waived under applicable regulations, (b) the withdrawal of the Issuer, a Restricted Subsidiary or any ERISA Affiliate from a Plan subject to Section 4063 of ERISA during a plan year in which it was a "substantial employer" as defined in Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA, (c) the filing of a notice of intent to terminate a Plan subject to Title IV of ERISA (other than a Multiemployer Plan) or the treatment of a Plan amendment as a termination under Section 4041 of ERISA, (d) the institution of proceedings to terminate a Plan by the PBGC, (e) receipt of a notice of withdrawal liability pursuant to Section 4202 of ERISA, or (f) the occurrence of any other event or condition which would reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan.

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"**ESG Survey**" as defined in <u>Section 6.01(q)</u>.

"**EU Bail-In Legislation Schedule**" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"**Event of Default**" as defined in <u>Section 9.01</u>.

"**Excepted Liens**" means (a) Liens for Taxes, assessments or other governmental charges or levies which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (b) Liens in connection with workers' compensation, unemployment insurance or other social security, old age pension or public liability obligations, which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (c) statutory landlord's liens, operators', vendors', carriers', warehousemen's, repairmen's, mechanics', suppliers', workers', materialmen's, construction or other like Liens, in each case, arising by operation of law in the ordinary course of business each of which is in respect of obligations that are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (d) contractual Liens which arise in the ordinary course of business under operating agreements, joint venture agreements, oil and gas partnership agreements, oil and gas leases, farm-out agreements, farm-in agreements, division orders, contracts for the sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual interest agreements, overriding royalty agreements, marketing agreements, processing agreements, development agreements, gas balancing or deferred production agreements, injection, repressuring and recycling agreements, which are limited to the assets that are subject to the relevant agreement, and seismic or other geophysical permits or agreements, and other agreements, in each case which are usual and customary in the Oil and Gas Business and are for claims which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; <u>provided</u> that any such Lien referred to in this clause does not materially impair the use of any material Property covered by such Lien for the purposes for which such Property is held by the Issuer or any Restricted Subsidiary or materially impair the value of any material Property subject thereto; (e) Liens arising solely by virtue of any statutory or common law provision relating to banker's liens, rights of set-off or similar rights and remedies and burdening only deposit accounts or other funds maintained with a creditor depository institution; <u>provided</u> that no such deposit account is a dedicated cash collateral account or is subject to restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Board and no such deposit account is intended by the Note Parties or any of their Restricted Subsidiaries to provide collateral to the depository institution; (f) easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations in any Property of the Issuer or any Restricted Subsidiary for the purpose of roads, pipelines, transmission lines, transportation lines, distribution lines for the removal of gas, minerals or oil and other like purposes, or for the joint or common use of real estate, rights of way, facilities and equipment, that do not secure any Debt or monetary obligations and which in the aggregate do not materially impair the use of such Property for the purposes of which such Property is held by the Issuer or any Restricted Subsidiary or materially impair the value of such Property subject

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thereto; (g) Liens on cash or securities pledged to secure performance of tenders, surety and appeal bonds, government contracts, performance and return of money bonds, bids, trade contracts, leases, statutory obligations, regulatory obligations and other obligations of a like nature incurred in the ordinary course of business; (h) judgment and attachment Liens not giving rise to an Event of Default; <u>provided</u> that any appropriate legal proceedings which may have been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated shall not have expired and no action to enforce such Lien has been commenced; (i) encumbrances consisting of deed restrictions, zoning restrictions, and other similar restrictions on the use of Oil and Gas Properties, none of which, in the aggregate, materially impairs the use of such property by the Issuer or any Restricted Subsidiary in the operation of its business or materially detracts from the value of such properties; (j) purported Liens evidenced by the filing of UCC financing statements solely as a precautionary measure in connection with operating leases of personal property; <u>provided</u>, <u>further</u>, that no intention to subordinate the first priority status afforded by the Liens granted in favor of the Collateral Agent (for the benefit of the Secured Parties, as provided in the Collateral Documents) is to be hereby implied or expressed by the permitted existence of such Excepted Liens. The parties acknowledge and agree that the term "Excepted Liens" shall not include any Lien securing Debt of the type described in clause (a) of the definition of Debt.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated thereunder.

"**Excluded Accounts**" means (a) each account for which all of the deposits consist of amounts utilized to fund payroll, employee benefit or tax obligations of the Note Parties and their Subsidiaries, (b) escrow, pre-funding, trust and fiduciary accounts, in each case, solely holding amounts held for the benefit of third parties in the ordinary course of business (including, without limitation, escrow accounts in respect of Investments permitted under this Agreement, including under <u>Section 7.05</u>), (c) "zero balance" accounts, and (d) other accounts; <u>provided</u> that the aggregate daily maximum balance for all such bank accounts excluded pursuant to this <u>clause (d)</u> on any day shall not exceed $500,000.

"**Excluded Property**" has the meaning assigned to such term in the Pledge and Security Agreement.

"**Excluded Subsidiaries**" means (a) any Immaterial Subsidiary, (b) each Unrestricted Subsidiary and (c) (i) commencing on the Third Amendment Effective Date until the earlier of (A) to the extent the effective date of the Initial Conversion Notice has not occurred by such time, the twelve (12) month anniversary of the Third Amendment Effective Date and (B) the date of exercise of the FMV Option in accordance with Article 10 of the Initial Trust Agreement, the Initial WH Master Tenant and the Initial WH DST and (ii) commencing on the date of formation of any WH Master Tenant (other than the Initial WH Master Tenant) and any WH DST (other than the Initial WH DST) until the earlier of (A) to the extent the effective date of the Conversion Notice with respect to such WH DST Offering has not occurred by such time, the twelve (12) month anniversary of the date of formation of any such WH Master Tenant (other than the Initial WH Master Tenant) and any WH DST (other than the Initial WH DST) and (B) the date of exercise of the FMV Option in accordance with Article 10 of the applicable Trust Agreement, such WH Master Tenant and such WH DST; <u>provided</u> that no Subsidiary (other than a WH DST until it no longer shall be an Excluded Subsidiary in accordance with <u>clause (c)</u> above) that owns or holds mineral interests, royalty interests or Proved Reserves shall be an "Excluded Subsidiary".

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"**Excluded Taxes**" as defined in <u>Section 2.14(b)</u>.

"**Existing Credit Facility**" means that certain credit facility, established pursuant to that certain Credit Agreement (as amended, restated, amended and restated, supplemented and as otherwise modified from time to time), dated as of August 3, 2023, by and among, *inter alios*, the Issuer, as borrower, the guarantors from time to time party thereto and Citadel Energy Marketing LLC.

"**Exposure**" means, with respect to any Holder, as of any date of determination, the outstanding principal amount of the Notes held by such Holder.

"**Fair Market Value**" means, with respect to any asset or group of assets on any date of determination, the value of the consideration obtainable in a disposition of such asset or group of assets at such date of determination assuming a disposition by a willing seller to a willing purchaser dealing at arm's length and arranged in an orderly manner over a reasonable period of time having regard to the nature and characteristics of such asset or group of assets, as reasonably determined in good faith by the Issuer; <u>provided</u>, <u>however</u>, that to the extent the Requisite Holders disagree with such Fair Market Value as determined in good faith by the Issuer, the Requisite Holders and the Issuer shall determine Fair Market Value pursuant to a dispute resolution process substantially similar to that provided for in <u>Section 1.05</u>.

"**FATCA**" means Sections 1471 through 1474 of the Internal Revenue Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities entered into in connection with the implementation of the foregoing.

"**FCA**" means the U.K. Financial Conduct Authority.

"**FCPA**" means the Foreign Corrupt Practices Act of 1977, as amended.

"**FDIC**" means the Federal Deposit Insurance Corporation.

"**Federal Funds Effective Rate**" means for any day, the rate calculated by the NYFRB based on such day's federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the federal funds effective rate; <u>provided</u> that, if the foregoing rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

"**Fee Letter**" means (a) that certain Fee Letter dated as of the Closing Date between the Issuer, EIG and the other parties named therein, (b) that certain Fee Letter dated as of the First Amendment Effective Date between the Issuer, EIG and the other parties named therein and (c) that certain Fee Letter dated as of May 8, 2025 between the Issuer and EIG.

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"**Finance Leases**" means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, recorded as finance leases on the balance sheet of the Person liable (whether contingent or otherwise) for the payment of rent thereunder; <u>provided</u> that for all purposes hereunder the amount of obligations under any Finance Lease shall be the amount thereof accounted for as a liability on the balance sheet of such Person in accordance with GAAP; <u>provided</u>, <u>further</u>, that for purposes of calculations made pursuant to the terms of this Agreement, GAAP will be deemed to treat leases in a manner consistent with its treatment under GAAP applicable to private companies for fiscal years beginning prior to December 15, 2019, notwithstanding any modifications or interpretative changes thereto that may occur. For the avoidance of doubt, (i) any lease that would be characterized as an operating lease in accordance with GAAP applicable to private companies for fiscal years beginning prior to December 15, 2019 (whether or not such operating lease was in effect on such date) shall continue to be accounted for as an operating lease (and not as a Finance Lease) for purposes of this Agreement regardless of any change in GAAP applicable to private companies for fiscal years beginning after December 15, 2019 that would otherwise require such lease to be re-characterized (on a prospective or retroactive basis or otherwise) as a Finance Lease and (ii) GAAP will be deemed to not take into account ASU 2016-02.

"**Financial Officer**" means, for any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person or authorized signatory of such Person that has similar responsibilities; <u>provided</u> that, if such Person is a limited partnership or limited liability company, any reference to a Financial Officer of such Person shall be a reference to a Financial Officer of such Person or of the general partner or sole member, as applicable, of such Person. Unless otherwise specified, all references herein to a Financial Officer means a Financial Officer of the Issuer.

"**First Amendment**" means that certain First Amendment to Note Purchase Agreement, dated as of March 31, 2025, by and among the Issuer, the other Note Parties, the Agent, the Holders and the First Amendment Incremental Holders.

"**First Amendment Additional Note Holders**" means each person listed on the signature page to the First Amendment as a First Amendment Additional Note Holder.

"**First Amendment Additional Notes**" means the Notes purchased on the First Amendment Effective Date pursuant to <u>Section 2.01(a)(ii)</u>, as evidenced by a promissory note in the form of <u>Exhibit B-1</u>.

"**First Amendment Effective Date**" means March 31, 2025.

"**First Amendment Transaction Expenses**" means any fees or expenses incurred or paid by the Issuer or any of its Restricted Subsidiaries in connection with the First Amendment and the transactions contemplated thereby.

"**First Offer**" as defined in <u>Section 2.09(g)</u>.

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"**Fiscal Quarter**" means a Fiscal Quarter of any Fiscal Year.

"**Fiscal Year**" means the Fiscal Year of the Note Parties ending on December 31 of each calendar year.

"**Flood Insurance Regulations**" means (a) the National Flood Insurance Act of 1968 as now or hereafter in effect or any successor statute thereto, (b) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statute thereto, (c) the National Flood Insurance Reform Act of 1994 (amending 42 USC § 4001, et seq.), as the same may be amended or recodified from time to time, (d) the Flood Insurance Reform Act of 2004 and (e) the Biggert-Waters Flood Insurance Reform Act of 2012, in each case as now or hereafter in effect or any successor statute thereto and including any regulations promulgated thereunder.

"**Flow of Funds**" means the flow of funds instruction letter delivered to the Agent at least one (1) Business Day prior to the Closing Date, directing the Agent to make certain specified disbursements on the Closing Date.

"**FMV Option**" has the meaning set forth in the definition of "FMV Option" (or substantially similar term) in the applicable Trust Agreement (in the case of the Initial Trust Agreement, as of the Third Amendment Effective Date).

"**Foreign Subsidiary**" means any Restricted Subsidiary that is not a Domestic Subsidiary.

"**Free Cash Flow (Back)**" means as of any date of determination, for a calendar month set forth under the heading "Distribution Month" in <u>Appendix</u> C, (a) Adjusted Cash Flow From Operating Activities for the corresponding "Applicable CF Period" in <u>Appendix C plus</u> (b) the amount of net cash proceeds received by the Issuer from the issuance of (i) common equity or (ii) Series B Preferred Shares, in either case issued by the Issuer during such "Applicable Distribution Period", <u>minus</u> (c) any Specified Issuance Proceeds received during such "Applicable Distribution Period" <u>minus</u> (d) to the extent included in Cash Flow From Operating Activities, voluntary cash repayments of the Notes pursuant to <u>Section 2.08</u> during such "Applicable Distribution Period".

"**Free Cash Flow (Forward)**" means, as of any date of determination for a calendar month set forth under the heading "Distribution Month" in <u>Appendix</u> C, (a)(i)(A) Projected Cash Flow From Operating Activities for the corresponding "Applicable CF Period" in <u>Appendix C plus</u> (B) the Prior Period Adjustment from the immediately preceding Applicable CF Period <u>multiplied</u> by (ii) the "Quarterly Factor" in Appendix C for such Distribution Month <u>plus</u> (b) the amount of net cash proceeds received by the Issuer from the issuance of (i) common equity or (ii) Series B Preferred Shares, in either case issued by the Issuer during such "Applicable Distribution Period", <u>minus</u> (c) any Specified Issuance Proceeds received during such "Applicable Distribution Period" <u>minus</u> (d) to the extent included in Cash Flow From Operating Activities, voluntary cash repayments of the Notes pursuant to <u>Section 2.08</u> during such "Applicable Distribution Period".

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"**Free Cash Flow Utilization**" has the meaning set forth in the definition of "Distributable Free Cash Flow".

"**GAAP**" means, subject to the limitations on the application thereof set forth in <u>Section 1.03</u>, United States generally accepted accounting principles in effect as of the date of determination thereof.

"**General and Administrative Costs**" means the general and administrative costs of the Issuer, the other Note Parties and their Restricted Subsidiaries, including utilities, communications, consulting fees, salary, rent, supplies, travel, insurance, accounting, legal, engineering and broker related fees required to manage its affairs and, for the avoidance of doubt, (a) any costs and expenses of an Affiliate of the Issuer, the other Note Parties and their Restricted Subsidiaries that are reimbursed by the Issuer, the other Note Parties and their Restricted Subsidiaries and which are fairly allocable to the Issuer, the other Note Parties and their Restricted Subsidiaries and (b) any management fees, advisory fees or similar fees to any holder of its Equity Interests or any Affiliates thereof (other than a Note Party). Notwithstanding the foregoing, for purposes of this Agreement, AUM Fees and Dividend Incentive Fees shall constitute Restricted Payments and not General and Administrative Costs.

"**Governing Body**" means the Board of Directors or other body having the power to direct or cause the direction of the management and policies of a Person that is a corporation, partnership, trust or limited liability company or other applicable entity.

"**Governmental Authority**" means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

"**Governmental Requirement**" means any law, statute, code, ordinance, order, determination, rule, regulation, judgment, decree, injunction, franchise, permit, certificate, license, rules of common law, authorization or other directive or requirement, whether now or hereinafter in effect, of any Governmental Authority.

"**guarantee**" means, with respect to any Person, any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Debt or other obligation of any other Person in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, that is (a) an obligation of such Person the primary purpose or intent of which is to provide assurance to an obligee that the obligation of the obligor thereof will be paid or discharged, or any agreement relating thereto will be complied with, or the holders thereof will be protected (in whole or in part) against loss in respect thereof; or (b) a liability of such Person for an obligation of another through any agreement (contingent or otherwise) (i) to purchase, repurchase or otherwise acquire such obligation or any security therefor, or to provide funds for the payment or discharge of such obligation (whether in the form of loans, advances, stock purchases, capital contributions or otherwise) or (ii) to maintain the solvency or any balance sheet item, level of income or financial condition of another if, in the case of any agreement described under <u>subclauses (i)</u> or <u>(ii)</u> of this <u>clause (b)</u>, the primary purpose or intent thereof is as described in <u>clause (a)</u> above. "**Guarantee**", unless the context otherwise requires, means the guarantee of each Guarantor set forth in the Guaranty Agreement.

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"**Guarantors**" means (a) WhiteHawk Income Marcellus LLC, a Delaware limited liability company, (b) WhiteHawk Income Haynesville LLC, a Delaware limited liability company, (c) those Persons identified on <u>Schedule 1.02(a)</u> hereto and (d) each other Material Subsidiary and other Subsidiary of a Note Party that guarantees the Obligations pursuant to the Guaranty Agreement or as otherwise required by <u>Section 6.13(b)</u>.

"**Guaranty Agreement**" means an agreement executed by the Guarantors in substantially the form of <u>Exhibit F</u>, absolutely and unconditionally guarantying, on a joint and several basis, payment of the Obligations, as the same may be amended, restated, amended and restated, modified or supplemented from time to time.

"**Hazardous Material**" means any substance regulated or as to which liability might arise under any applicable Environmental Law including: (a) any chemical, compound, material, product, byproduct, substance or waste defined as or included in the definition or meaning of "hazardous substance," "hazardous material," "hazardous waste," "solid waste," "toxic waste," "extremely hazardous substance," "toxic substance," "contaminant," "pollutant" or words of similar meaning or import found in any applicable Environmental Law; (b) Hydrocarbons, petroleum products, petroleum substances, natural gas, oil, oil and gas waste, crude oil, and any components, factions or derivatives thereof; and (c) radioactive materials, explosives, brine, asbestos or asbestos containing materials, polychlorinated biphenyls, per- or polyfluoroalkyl substances, radon, or infectious or medical wastes.

"**Hazardous Materials Activity**" means any past or current activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, Release, threatened Release, discharge, placement, generation, transportation, processing, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.

"**Hedge Intercreditor Agreement**" means that certain Hedge Intercreditor Agreement, dated as of the Closing Date, by and among the Issuer, each other Note Party, Citadel Energy Marketing LLC as Initial Swap Counterparty (as defined therein) and the Collateral Agent, as such agreement may be amended, restated, amended and restated, supplemented or otherwise modified from time to time; <u>provided</u> that the Hedge Intercreditor Agreement shall be in form and substance satisfactory to the Requisite Holders and otherwise on terms customary for financing arrangements of this type, it being understood that the form and terms of the Hedge Intercreditor Agreement on the Closing Date satisfy this proviso.

"**Highest Lawful Rate**" means the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under the laws applicable to any Holder which are presently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than applicable laws now allow.

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"**Holder-Related Party**" as defined in <u>Section 11.03(b)</u>.

"**Holders**" means (a) each Person listed on the signature pages to the original Agreement dated as of September 17, 2024 as a Holder, (b) each Person listed on the signature pages to the First Amendment as a First Amendment Additional Note Holder, (c) each Person listed on the signature pages to the Second Amendment as a Second Amendment Incremental Note Holder and (d) any other Person that becomes a party hereto as a Holder pursuant to an Assignment Agreement, other than any such Person that ceases to be a party hereto as a Holder pursuant to an Assignment Agreement.

"**Hydrocarbon Interests**" means all rights, titles, interests and estates now or hereafter acquired by the Issuer or any Guarantor in and to oil and gas leases, oil, gas and mineral leases, and/or other liquid or gaseous hydrocarbon leases, mineral fee interests, mineral interests, mineral royalty interests, overriding royalty and royalty interests, net profit interests and production payment interests, and other interests and estates including any reserved or residual interests of whatever nature, in each case, including those that are described on the exhibit(s) attached to any Mortgage.

"**Hydrocarbons**" means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all constituents, elements or compounds thereof and all products refined or separated therefrom and all other minerals which may be produced and saved from or attributable to the Oil and Gas Properties, now or hereafter acquired by the Issuer or any Guarantor, including all oil in tanks, and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests or other properties constituting Oil and Gas Properties to the extent allocated to the royalty interest or overriding royalty interests of the Issuer or any Guarantor.

"**Immaterial Subsidiary**" means any Restricted Subsidiary that is not a Material Subsidiary.

"**Improved Mortgaged Property**" means all improved real property acquired by the Issuer or any Guarantor that contains Buildings or Manufactured (Mobile) Homes (as those terms are defined in applicable Flood Insurance Regulations) constituting Collateral, if any.

"**Incremental Commitments**" means the commitments of the Holders to purchase Incremental Notes contemplated by <u>Section 2.16</u>.

"**Incremental Indebtedness**" has the meaning set forth in <u>Section 2.16(b)(i)</u>.

"**Incremental Note**" means any Note purchased by any Holder pursuant to the Incremental Commitments, as evidenced by a promissory note in the form of <u>Exhibit B-2</u>, including each Second Amendment Incremental Note.

"**Incremental Notes Notice**" has the meaning set forth in <u>Section 2.16(a)(i)</u>.

"**Incremental Notes Offer**" has the meaning set forth in <u>Section 2.16(a)(ii)</u>.

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"**Incremental Target Amount**" has the meaning set forth in <u>Section 2.16(a)(i)</u>.

"**Indemnified Liabilities**" means, collectively, any and all fees, liabilities, obligations, losses, damages, penalties, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable fees, disbursements and settlement costs and other charges of counsel for Indemnitees) and of consultants in connection with any proceeding (whether investigative, administrative, judicial or otherwise) commenced or threatened by any Person, whether or not any such Indemnitee shall be designated as a party or a potential party thereto, and any reasonable fees or expenses incurred by Indemnitees in administering and enforcing this Agreement and the other Note Documents and enforcing the indemnity under <u>Section 11.03(a)</u>, whether direct, indirect or consequential and whether based on any federal, state or foreign laws, statutes, rules or regulations (including securities and commercial laws, statutes, rules or regulations and Environmental Laws), on common law or equitable cause or on contract or otherwise, that may be imposed on, incurred by, or asserted against any such Indemnitee, in any manner relating to or arising out of (a) this Agreement or the other Note Documents, the Transactions or any other transactions contemplated hereby or thereby (including the Holders' agreement to make Note Purchases or the use or intended use of the proceeds thereof, or any enforcement of any of the Note Documents (including any sale of, collection from, or other realization upon any of the Collateral or the enforcement of the Guarantee)); or (b) any Environmental Claim relating to or against, or any past or present activity (including any Hazardous Materials Activity), operation, land ownership, or practice of, the Issuer or any of its Subsidiaries or on any of their respective properties. Notwithstanding the foregoing, Indemnified Liabilities shall not include Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

"**Indemnified Taxes**" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any Obligation of any Note Party under any Note Document and (b) to the extent not otherwise described in (a), Other Taxes.

"**Indemnitee**" as defined in <u>Section 11.03(a)</u>.

"**Indemnitee Agent Party**" means each Agent, its Affiliates and its officers, partners, directors, trustees, employees, representatives and agents of the Agents.

"**Initial Conversion Notice**" has the meaning set forth in the definition of "Conversion Notice".

"**Initial DST PPM**" has the meaning set forth in the definition of "DST PPMs".

"**Initial Financial Statements**" means the financial statements described in <u>Section 3.01(u)</u>.

"**Initial Master Lease**" has the meaning set forth in the definition of "Master Leases".

"**Initial Nominee Agreement**" has the meaning set forth in the definition of "Nominee Agreements".

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"**Initial Reserve Report**" means that certain reserve report prepared by Schaper Energy Consulting LLC in respect of Oil and Gas Properties of the Issuer and its Restricted Subsidiaries with an "as of" date of March 14, 2024.

"**Initial Trust Agreement**" has the meaning set forth in the definition of "Trust Agreements".

"**Institutional Investor**" means (a) any Holder of a Note on the Closing Date, (b) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, (c) any Related Fund or Affiliate of any Holder of any Note and (d) any other Person that is a Qualified Institutional Buyer to the extent such Person would not reasonably be considered a competitor of the Issuer.

"**Interest**" as defined in <u>Section 2.06(a)</u>.

"**Interest Payment Date**" means (a) the last day of each Fiscal Quarter, commencing with the Fiscal Quarter ended December 31, 2024, and (b) the Maturity Date.

"**Interest Period**" means (a) from and including the Closing Date to the next Interest Payment Date, and (b) thereafter, from and including each Interest Payment Date to but excluding the next Interest Payment Date.

"**Internal Revenue Code**" means the Internal Revenue Code of 1986, as amended to the date hereof and from time to time hereafter, and any successor statute (except as otherwise provided herein).

"**Investment**" means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of Equity Interests of any other Person or any agreement to make any such acquisition (including, without limitation, any "short sale" or any sale of any securities at a time when such securities are not owned by the Person entering into such short sale); (b) the making of any deposit with, or advance, loan or capital contribution to, guarantee or assumption of Debt of, purchase or other acquisition of any other Debt or equity participation or interest in, or other extension of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such Property to such Person, but excluding any such advance, loan or extension of credit having a term not exceeding one hundred twenty (120) days representing the purchase price of inventory or supplies sold by such Person in the ordinary course of business) or (c) the purchase or acquisition (in one or a series of transactions) of Property (other than Equity Interests) of another Person that constitutes a business unit, line of business or a discrete set of Properties. For purposes of covenant compliance, the amount of any Investment at any time shall be the amount actually invested (measured at the time made), without adjustment for subsequent increases or decreases in the value of such Investment.

"**Investment Agreement**" means that certain Investment Agreement by and among WhiteHawk Income Corporation and the Investors listed in Exhibit A to such agreement, dated as of March 28, 2025.

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"**Investment Management Agreement**" means that certain Investment Management Agreement, dated as of March 1, 2022, between, the Issuer and WhiteHawk Management, LLC.

"**IRS**" as defined in <u>Section 2.14(e)</u>.

"**Issuer**" as defined in the preamble hereto.

"**Lien**" means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to (a) the lien or security interest arising from a deed of trust, mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes or (b) royalty interest payments and the like payable out of Oil and Gas Properties.

"**Liquidity**" means, at any time, Unrestricted Cash at such time.

"**LOS/CF Certificate**" means a certificate of a Responsible Officer pursuant to <u>Section 6.01(o)</u>.

"**Make-Whole Amount**" means, with respect to the Called Principal of any Note, an amount equal to the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note, <u>provided</u> that the Make-Whole Amount shall in no event be less than zero.

"**Make-Whole Expiry Date**" as defined in <u>Section 2.11(g)</u>.

"**Master Leases**" means, collectively (a) the Master Lease Agreement by and between WhiteHawk DST Master Tenant LLC, as Delaware limited liability company, as lessee, and WhiteHawk Royalties I DST, a Delaware Statutory Trust, as lessor (including all amendments, exhibits and schedules thereto) (the "**Initial Master Lease**") in substantially the same form delivered to the Required Lenders on the Third Amendment Effective Date and (b) any master lease agreement entered into between a WH Master Tenant (other than WhiteHawk DST Master Tenant LLC) and WH DST (other than WhiteHawk Royalties I DST) with substantially the same form, terms and conditions as the Initial Master Lease as in effect on the Third Amendment Effective Date.

"**Material Acquisition**" means any acquisition of Property or series of related acquisitions of Property that involves the payment of consideration by the Note Parties and their Consolidated Restricted Subsidiaries in excess of $2,000,000.

"**Material Adverse Effect**" means a material adverse change in, or material adverse effect on (a) the business, operations, Property or financial condition of the Note Parties and their Restricted Subsidiaries taken as a whole, (b) the ability of the Issuer, any Restricted Subsidiary or any Guarantor to perform any of its material obligations under any Note Document, (c) the validity or enforceability of any Note Document, or (d) the rights and remedies of or benefits available to the Agent or any Holder under any Note Document.

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"**Material Contracts**" means (a) the contracts set forth on <u>Schedule 1.02(b)</u> and (b) any other contract and agreement of any Note Party or its Subsidiaries resulting (or projected to result) in such Person being reasonably expected to receive revenue or other consideration or incur liabilities in excess of $2,000,000 during any Fiscal Year.

"**Material Debt**" means Debt (other than the Notes), or obligations in respect of one or more Swap Agreements, of any one or more of the Note Parties and their Restricted Subsidiaries in an aggregate principal amount exceeding $2,000,000. For purposes of determining Material Debt, the "principal amount" of the obligations of the Issuer or any Restricted Subsidiary in respect of any Swap Agreement at any time shall be the Swap Termination Value of such Swap Agreement.

"**Material Disposition**" means any disposition of Property or series of related dispositions of Property that involves the payment of consideration to the Note Parties and their Consolidated Restricted Subsidiaries in excess of $2,000,000.

"**Material Environmental and Social Incident**" means (a) any incident or accident formally elevated to the Board of Directors (or other similar Governing Body) of the Issuer, (b) an accident relating to the Note Parties, their Subsidiaries, or their respective properties resulting in death or serious or multiple injury or (c) a significant and material community or worker related grievance or protest directed at the Note Parties, their Subsidiaries, or their respective properties, in each of the foregoing cases, which has or could reasonably be expected to have (in the good faith determination of the Issuer) a material and adverse impact on health, safety or the environment (including, in each case, as the result of the Release of any Hazardous Material).

"**Material Subsidiary**" means, as of any date, (a) any Subsidiary that, together with its Restricted Subsidiaries, as of the last day of the Fiscal Quarter of the Issuer most recently ended, had net revenues or total assets for such quarter in excess of 0.50% of the consolidated net revenues or total assets, as applicable, of the Issuer and its Restricted Subsidiaries for such quarter and (b) any Subsidiary that owns any Oil and Gas Properties evaluated in the Reserve Report most recently delivered to pursuant to <u>Section 6.11</u>, <u>provided</u> that in the event that the Immaterial Subsidiaries, taken together, had as of the last day of the Fiscal Quarter of the Issuer most recently ended net revenues or total assets in excess of 1.00% of the consolidated revenues or total assets, as applicable, of the Issuer and its Restricted Subsidiaries for such quarter, the Issuer shall designate one or more Immaterial Subsidiaries to be a Material Subsidiary as may be necessary such that the foregoing one percent 1.00% limit shall not be exceeded, and any such Subsidiary shall thereafter be deemed to be a Material Subsidiary hereunder, and the Issuer shall cause such designated Material Subsidiaries to comply with <u>Section 6.13(b)</u>.

"**Maturity Date**" means the earlier of (a) June 23, 2030 and (b) the date that all Notes shall become due and payable in full hereunder, whether by acceleration or otherwise or, in either case, if such day is not a Business Day, the immediately preceding Business Day.

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"**Minimum Liquidity Amount**" means (a) $4,000,000 <u>plus</u> (b) as of any date of determination (i) Interest accrued through the date of determination <u>plus</u> (ii) any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments <u>plus</u> (iii) losses (or <u>minus</u> gains) from Swap Agreements which, as of the date of determination, have settled but for which cash proceeds have not been received by the Issuer or its Restricted Subsidiaries.

"**Minimum Return**" as defined in the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**MIRE Event**" means, if there are any Mortgaged Properties at such time, any increase, extension or renewal of any of the Commitments or Notes (including any other incremental credit facilities hereunder, but excluding (a) any continuation or conversion of Notes or (b) the issuance of any Notes).

"**Monthly Common Equity Dividends**" means dividends made by the Issuer to the holders of its Equity Interests on the account of its common Equity Interests in accordance with the Issuer's Organizational Documents in effect as of the Second Amendment Effective Date, in an amount not to exceed $0.1875 per Equity Interest unit (<u>provided</u> that to the extent (a) the outstanding common Equity Interest of the Issuer shall have been increased, decreased, changed into or exchanged for a different number of shares or different class, in each case, by reason of any reclassification, recapitalization, stock split, split-up, combination or exchange of shares, (b) a stock dividend or dividend payable in any other Equity Interests securities of the Issuer shall have been declared or (c) any similar event shall have occurred, such $0.1875 per Equity Interest unit limit shall be adjusted in a manner to maintain the same economic effect as contemplated by this Agreement prior to such event).

"**Monthly Preferred Equity Dividends**" means dividends made by the Issuer to the holders of its Equity Interests on the account of its (a) Series B Preferred Shares, payable on a monthly basis at an annualized rate of ten percent (10%), in accordance with Section 5 of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 **and<u>,</u>** (b) Series C Preferred Shares, payable on a monthly basis at an annualized rate of (i) fourteen percent (14%) from and including the Closing (as defined in the Investment Agreement) to December 31, 2026 and (ii) eighteen percent (18%) after December 31, 2026, in accordance with Section 1.4(e) of the Investment Agreement**. <u>and (c) Series D Preferred Shares, payable on a monthly basis at an annualized rate of (i) fourteen percent (14%) from and including the date of issuance to December 31, 2027 and (ii) eighteen percent (18%) after December 31, 2027, in accordance with Section 5 of the Series D Certificate of Designations.</u>** 

"**Moody's**" means Moody's Investors Service, Inc. and any successor thereto that is a nationally recognized rating agency.

"**Mortgage**" means all mortgages, deeds of trust and similar documents, instruments and agreements (including amendments and restatements of existing deeds of trust and similar documents, instruments and agreements) creating, evidencing, perfecting or otherwise establishing the Liens on Mortgaged Property to secure payment of the Obligations or any part thereof in substantially the form of <u>Exhibit L</u> (or otherwise in form and substance reasonably acceptable to the Agent (at the direction of the Requisite Holders)).

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"**Mortgaged Property**" means any Property owned by the Issuer or any Guarantor which is subject to the Liens existing and to exist under the terms of the Collateral Documents.

"**Multiemployer Plan**" mean a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

"**Net Asset Sale Proceeds**" means, with respect to any Asset Sale (other than pursuant to <u>Section 7.09(a)</u>, <u>Section 7.09(b)</u>, <u>Section 7.09(e)</u>, <u>Section 7.09(f)</u>, <u>Section 7.09(h)</u>, <u>Section 7.09(i)</u> or <u>Section 7.09(j)</u>), an amount equal to: (a) the sum of cash payments and Cash Equivalents received by the Issuer or any of its Affiliates from such Asset Sale (including any cash or Cash Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received), <u>minus</u> (b) any bona fide costs and expenses (including, without limitation, legal, accounting and investment banking fees, and sales commissions) incurred in connection with such Asset Sale, including income or gains taxes paid or payable as a result of such Asset Sale (after taking into account any available tax credits or deductions and any tax-sharing arrangements) or reserves taken in respect of taxes and (c) a reasonable reserve for any indemnification payments (fixed or contingent) attributable to seller's indemnities and representations and warranties to purchaser in respect of such Asset Sale undertaken by the Issuer or any other Note Party in connection with such Asset Sale; <u>provided</u> that upon release of any such reserve, the amount released shall be considered Net Asset Sale Proceeds.

"**Net Casualty Event Proceeds**" means, with respect to any Casualty Event, an amount equal to: (a) the sum of cash payments and Cash Equivalents received by the Issuer or any of its Affiliates from such Casualty Event <u>minus</u> (b) (i) any bona fide costs and expenses incurred in connection with the adjustment or settlement of any claims of the Issuer or any of its Restricted Subsidiaries in respect thereof and (ii) amounts expended to repair and/or replace property subject to such Casualty Event.

"**Non-U.S. Holder**" as defined in <u>Section 2.14(e)</u>.

"**Nominee Agreements**" means, collectively (a) the Nominee Agreement by and between WhiteHawk DST Master Tenant LLC, a Delaware limited liability company and WhiteHawk Royalties I DST, a Delaware Statutory Trust (including all amendments, exhibits and schedules thereto) (the "**Initial Nominee Agreement**") in substantially the same form delivered to the Required Lenders on the Third Amendment Effective Date and (b) any nominee agreement entered into between a WH Master Tenant (other than WhiteHawk DST Master Tenant LLC) and WH DST (other than WhiteHawk Royalties I DST) with substantially the same form, terms and conditions as the Initial Nominee Agreement as in effect on the Third Amendment Effective Date.

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"**Note**" means (a) the notes purchased by the Holders on the Closing Date pursuant to <u>Section 2.01(a)(i)</u>, as may be evidenced by a promissory note in the form of <u>Exhibit B-1</u>, (b) the notes purchased by the First Amendment Additional Note Holders on the First Amendment Effective Date pursuant to <u>Section 2.01(a)(ii)</u>, as may be evidenced by a promissory note in the form of <u>Exhibit B-1</u>, (c) the notes purchased by the Second Amendment Incremental Note Holders on the Second Amendment Effective Date pursuant to <u>Section 2.01(a)(iii)</u>, as may be evidenced by a promissory note in the form of <u>Exhibit B-2</u> and (d) any Incremental Note purchased by Incremental Holders pursuant to <u>Section 2.16</u> as may be evidenced by a promissory note in the form of <u>Exhibit B-2</u> (in each case, such term shall also include any such notes in substitution therefor pursuant to <u>Section 11.29</u> of this Agreement).

"**Note Document**" means any of this Agreement, the Notes, the Incremental Notes (if any), the Agent Fee Letter, the Fee Letter, the Collateral Documents, the Flow of Funds and all other certificates, documents, instruments or agreements executed and delivered by a Note Party for the benefit of Agents or any Holder in connection herewith or pursuant to any of the foregoing. Any reference in this Agreement or any other Note Document to a Note Document shall include all appendices, exhibits and schedules thereto.

"**Note Party**" means the Issuer and the Guarantors.

"**Note Purchase**" means a purchase by the Holders of Notes pursuant to <u>Section 2.01</u>.

"**Note Purchase Notice**" means a written notice by the Issuer that it intends to issue Notes hereunder, which Note Purchase Notice (a) sets forth the principal amount of Notes to be issued, (b) contains the information required by <u>Section 2.03</u> and (c) is substantially in the form of <u>Exhibit A</u> or such other form reasonably satisfactory to the Requisite Holders.

"**Not for Speculative Purposes**" in the case of Swap Agreements permitted under this Agreement, means the following Swap Agreements: (a) any commodity Swap Agreement intended, at inception of execution, to hedge or manage any of the risks related to existing and or forecasted Hydrocarbon production of the Issuer or its Restricted Subsidiaries (whether or not contracted) and (b) any Swap Agreement intended, at inception of execution, to hedge or manage the interest rate exposure associated with any debt securities, debt facilities or leases (existing or reasonably forecasted) of the Issuer or its Restricted Subsidiaries. It is understood that commodity Agreements that, taken as a whole, "hedge" the same volumes of commodity risk, including those under which one or more such Swap Agreements partially offset one or more other such Swap Agreements, shall not be aggregated together when calculating the foregoing limitations on notional volumes and shall be deemed, both individually and in the aggregate, not to be speculative.

"**NYFRB**" means the Federal Reserve Bank of New York.

"**NYFRB Rate**" means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); <u>provided</u> that, if none of such rates are published for any day that is a Business Day, the term "NYFRB Rate" means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received by the Agent from a federal funds broker of recognized standing selected by the Requisite Holders; <u>provided</u>, further, that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

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"**NYMEX Pricing**" means, as of any date of determination with respect to any month, (a) for crude oil, the closing settlement price for the Light, Sweet Crude Oil futures contract for such month and (b) for natural gas, the closing settlement price for the Henry Hub Natural Gas futures contract for such month, in each case as published by CME Group / NYMEX on its website currently located at www.cmegroup.com, or any successor thereto (as such price may be corrected or revised from time to time by CME Group / NYMEX in accordance with its rules and regulations).

"**Obligations**" means (a) all liabilities and obligations of every nature of each Note Party from time to time owed to the Agents (including any former Agents), the Holders, any Indemnitee or any of them, in each case, under any Note Document, in each case, to which it is a party, whether for principal, interest (including, without limitation, interest accruing at any post-default rate and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), fees (including, without limitation, any Make-Whole Amount or any Prepayment Fee), expenses, penalties, premiums, reimbursements, indemnification or otherwise and whether primary, secondary, direct, indirect, contingent, fixed or otherwise (including obligations of performance) and all renewals, extensions and/or rearrangements of any of the above and (b) all Secured Hedge Obligations of each Note Party.

"**Oil and Gas Business**" means: (a) the business of acquiring, exploring, exploiting, developing, producing, operating and disposing of interests in oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and mineral properties or products produced in association with any of the foregoing; (b) the business of gathering, marketing, distributing, treating, processing, storing, refining, selling and transporting of any production from interests in oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and mineral properties or products produced in association therewith; and the marketing of oil, natural gas, natural gas liquids, liquefied natural gas and other Hydrocarbons and minerals obtained from unrelated Persons; and (c) any business or activity relating to, arising from, or necessary, appropriate, incidental or ancillary to the activities described in the foregoing <u>clauses (a)</u> and <u>(b)</u> of this definition.

"**Oil and Gas Properties**" means: (a) the Hydrocarbon Interests; (b) all of the Issuer's or any Guarantor's interest in the Properties now or hereafter pooled or unitized with Hydrocarbon Interests; (c) all of the Issuer's or any Guarantor's interest in all presently existing or future unitization agreements, pooling agreements and declarations of pooled or unitized units and the units created thereby (including without limitation all units created under orders, regulations and rules of any Governmental Authority) which may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements, including production sharing contracts and agreements, which relate to any of the Hydrocarbon Interests or the production, sale, purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests, to the extent the Issuer or any Guarantor is a party to any such agreement or contract; (e) all Hydrocarbons in and under and which may be produced and saved or

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attributable to the Hydrocarbon Interests; (f) all tenements, hereditaments, appurtenances and Properties in any manner appertaining, belonging, affixed or incidental to the interest of the Issuer or any Guarantor in the Hydrocarbon Interests and (g) all properties, rights, titles, interests and estates described or referred to above, which are now owned or which are hereafter acquired by the Issuer or any Guarantor, including, without limitation, any and all Property, real or personal, immoveable or moveable, now owned or hereinafter acquired, including without limitation, rights-of-way, easements, servitudes, licenses and other surface and subsurface rights, together with all additions, substitutions, replacements, accessions and attachments to any and all of the foregoing.

"**Organizational Documents**" means (a) with respect to any corporation, its certificate or articles of incorporation, amalgamation, formation or organization, as amended, and its bylaws, as amended, (b) with respect to any limited partnership, its certificate of limited partnership or certificate of formation, as amended, and its partnership agreement, as amended, (c) with respect to any general partnership, its partnership agreement, as amended, (d) with respect to any limited liability company, its articles of organization or certificate of formation, as amended, and its operating agreement, as amended and (e) in any other case, the functional equivalent of the foregoing. In the event any term or condition of this Agreement or any other Note Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such "Organizational Document" shall only be to a document of a type customarily certified by such governmental official.

"**Other Taxes**" means any and all present or future stamp, recording, filing, court or documentary, intangible, or similar Taxes arising from any payment made hereunder or from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Note Document, except any such Taxes described in <u>clause (b)</u> of the definition of Tax on the Overall Net Income imposed with respect to any assignment (other than an assignment pursuant to a request by the Issuer).

"**Overnight Bank Funding Rate**" means, for any day, the rate comprised of both overnight federal funds and overnight Adjusted Term SOFR Rate borrowings by U.S.-managed banking offices of depository institutions, (as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time) and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate (from and after such date as the NYFRB shall commence to publish such composite rate).

"**Participant**" as defined in <u>Section 11.07(g)</u>.

"**Participant Register**" as defined in <u>Section 11.07(g)</u>.

"**Payment**" as defined in <u>Section 10.04(c)</u>.

"**Payment in Full**" means (a) the irrevocable payment in full in cash of all principal, interest (including interest accruing during the pendency of an insolvency or liquidation proceeding, regardless of whether allowed or allowable in such insolvency or liquidation proceeding), premium and make-whole, if any, on all Notes outstanding under this Agreement, (b) the irrevocable payment in full in cash in respect of all other Obligations or amounts that are

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outstanding under this Agreement (other than (i) indemnity obligations for which notice of potential claim has not been given and (ii) amounts due under a Secured Hedge Agreement to the extent such Secured Hedge Obligations are cash collateralized or otherwise subject to arrangements satisfactory to the applicable Secured Hedge Provider) and (c) the termination of all Commitments under this Agreement and all Secured Hedge Agreements (other than Secured Hedge Agreements that are cash collateralized or otherwise subject to arrangements satisfactory to the applicable Secured Hedge Provider).

"**Payment Notice**" as defined in <u>Section 10.04(d)</u>.

"**PBGC**" means the Pension Benefit Guaranty Corporation or any successor thereto.

"**Permitted Recipients**" as defined in <u>Section 11.18</u>.

"**Person**" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"**Plan**" means any employee pension benefit plan, as defined in Section 3(2) of ERISA, which (a) is sponsored, maintained or contributed to by the Issuer, a Restricted Subsidiary or, solely with respect to a plan subject to Title IV of ERISA, an ERISA Affiliate or (b) if the Issuer or a Restricted Subsidiary has liability thereunder, was at any time during the six (6) calendar years preceding the Closing Date, sponsored, maintained or contributed to by the Issuer or a Subsidiary or, to which Issuer or a Subsidiary has any liability, including any liability with respect to a plan subject to Title IV of ERISA on account of an ERISA Affiliate.

"**Pledge and Security Agreement**" means a Pledge and Security Agreement among each Note Party and the Collateral Agent in substantially the form of <u>Exhibit G-2</u> (or otherwise in form and substance reasonably acceptable to the Agent (at the direction of the Requisite Holders)) granting Liens and security interests in the Equity Interests of the Subsidiaries directly owned by such Note Parties and the Note Parties' other personal property constituting Collateral (as defined therein) in favor of the Collateral Agent for the benefit of the Secured Parties to secure the Obligations, as the same may be amended, restated, amended and restated, modified, supplemented or restated from time to time.

"**Primary Distributions**" as defined in Section <u>7.04(c)(i)(A)</u>.

"**Prime Rate**" means the rate of interest per annum publicly quoted from time to time by *The Wall Street Journal* (or, if no longer quoted by *The Wall Street Journal*, such other national publication selected by the Requisite Holders in consultation with the Issuer) as the United States "prime rate".

"**Prior Period Adjustment**" means, for any Applicable CF Period, (a) the total Free Cash Flow (Back) from April 30, 2025 through the immediately preceding Applicable Cash Flow Period <u>minus</u> (b) the total Free Cash Flow Utilizations and the total Specified RPs declared, made or distributed from April 30, 2025 (or, in the event any Specified RPs are declared, made or distributed, from the date of declaring, making or distributing the first Specified RP) through the immediately preceding Applicable Cash Flow Period <u>minus</u> (c) any prepayment of the Notes pursuant to <u>Section 2.09(a)</u> from April 30, 2025 through the immediately preceding Applicable Cash Flow Period.

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"**Pro Forma Basis**" means, as to the calculation of the Consolidated Total Net Leverage Ratio, Liquidity and the Asset Coverage Ratio, such calculation will be made on a pro forma basis, including giving pro forma effect to the following events as if such events occurred, for purposes of the Consolidated Total Net Leverage Ratio, on the first date of the then most recently ended period for which financial statements (including monthly financial statements and lease operating statements) are available and, for purposes of the Asset Coverage Ratio, immediately prior to such date of determination: any Asset Sale, any Casualty Event, any Material Acquisition, any Material Disposition, any Restricted Payment or any incurrence of Debt that occurred during such period (or thereafter and through and including the date of such determination, in the case of determinations made with respect to any action the taking of which hereunder is subject to compliance with the Consolidated Total Net Leverage Ratio or the Asset Coverage Ratio). Any cash or Cash Equivalents to be received by the Issuer or any Restricted Subsidiary in connection with the incurrence of Debt shall not be considered Unrestricted Cash in determining compliance on a "Pro Forma Basis" with the Consolidated Total Net Leverage Ratio for the incurrence of such Debt or any transaction substantially contemporaneously therewith. Pro forma calculations made pursuant to the definition of the term "Pro Forma Basis" shall be, with respect to the Consolidated Total Net Leverage Ratio, determined in good faith by a Responsible Officer of the Issuer and with supporting documentation reasonably acceptable to the Agent (at the direction of the Requisite Holders) and, with respect to the Asset Coverage Ratio, made in accordance with <u>Section 1.05</u> and <u>Section 6.01(u)</u>.

"**Pro Rata Share**" means, as to any Holder, with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 2.01(a)</u>, the percentage obtained by <u>dividing</u> (i) the Commitments of that Holder, by (ii) the aggregate Commitments of all Holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all payments, computations and other matters relating to the Notes of any Holder (other than the issuance of the Notes contemplated by <u>Section 2.01(a)</u>), the percentage obtained by <u>dividing</u> (i) the Exposure of that Holder by (ii) the aggregate Exposure of all Holders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) after Payment in Full, then the percentage obtained by <u>dividing</u> (i) the Exposure of that Holder by (ii) the aggregate Exposure of all Holders, in each case, shall be calculated on the last day prior to the Payment in Full that any Holder had an Exposure.

"**Probable Reserves**" means "probable oil and gas reserves" as such term is defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"**Projected Cash Flow From Operating Activities**" means (a) the projected Cash Flow From Operating Activities for the Applicable CF Period prepared by the Issuer in good faith and incorporating the expected revenue and expenses from ongoing operations of the Issuer and its Restricted Subsidiaries, including from Oil and Gas Properties, Swap Agreements, General and Administrative Costs, and interest expenses <u>plus</u> (b) to the extent constituting a General and Administrative Cost and included in Cash Flow From Operating Activities, any AUM Fees and/or Dividend Incentive Fees paid in cash during such period <u>minus</u> (c) to the extent included in Cash Flow From Operating Activities, any extraordinary, unusual or non-recurring cash flow of the Issuer and its Restricted Subsidiaries for such period, including without limitation, any cash proceeds from the unwinding, termination, or monetization of Swap Agreements, Asset Sales, insurance proceeds or indemnity payments. Projected Cash Flow from Operating Activities shall be calculated using the Strip Price as of the date of determination.

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"**Projections**" as defined in <u>Section 6.01(f)</u>.

"**Property**" means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights.

"**Proved Developed Producing Reserves**" means "proved developed producing oil and gas reserves" as such term is defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"**Proved Reserves**" means collectively, "proved oil and gas reserves," "proved developed producing oil and gas reserves," "proved developed non-producing oil and gas reserves" (consisting of proved developed shut-in oil and gas reserves and proved developed behind pipe oil and gas reserves), and "proved undeveloped oil and gas reserves," as such terms are defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"**Public Company**" as defined in <u>Section 11.18</u>.

"**Public Company Information**" as defined in <u>Section 11.18</u>.

"**Purchase Money Debt**" means Debt, the proceeds of which are used to finance the acquisition, construction, or improvement of inventory, equipment or other property in the ordinary course of business.

"**Qualified ECP Guarantor**" means, in respect of any Swap Agreement, each Note Party that (a) has total assets exceeding $10,000,000 at the time any guaranty of obligations under such Swap Agreement or grant of the relevant security interest becomes effective or (b) otherwise constitutes an "eligible contract participant" under the Commodity Exchange Act and can cause another Person to qualify as an "eligible contract participant" at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

**"Qualified Institutional Buyer" as defined in <u>Section 5.11</u>.** 

"**RCRA**" has the meaning set forth in the definition of "**Environmental Laws**".

"**Recipient**" as defined in <u>Section 11.18</u>.

"**Redemption**" means with respect to any Debt, the repurchase, redemption, prepayment, repayment, defeasance or any other acquisition or retirement for value (or the segregation of funds with respect to any of the foregoing) of such Debt. "**Redeem**" has the correlative meaning thereto.

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"**Redemption Offer**" as defined in <u>Section 2.09(h)(i)</u>.

"**Redemption Payment**" as defined in <u>Section 2.09(h)(i)</u>.

"**Redemption Purchase Date**" as defined in <u>Section 2.09(h)(i)</u>.

"**Refinancing**" as defined in <u>Section 2.04</u>.

"**Register**" as defined in <u>Section 2.05(b)</u>.

"**Regulation T**" means Regulation T of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

"**Regulation U**" means Regulation U of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

"**Regulation X**" means Regulation X of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

"**Reinvestment Yield**" means, with respect to the Called Principal of any Note, 50 basis points (one-half of one percent) over the yield to maturity implied by (a) the yields reported as of 10:00 a.m. (New York, New York time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1" (or such other display as may replace Page PX1 on Bloomberg Financial Markets ("**Bloomberg**")) or, if Page PX1 (or its successor screen on Bloomberg) is unavailable, the Telerate Access Service screen which corresponds most closely to Page PX1 for the most recently issued actively traded U.S. Treasury securities having a maturity equal to the Remaining Life of such Called Principal as of such Settlement Date or (b) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (519) (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Life of such Called Principal as of such Settlement Date. Such implied yield will be determined, if necessary, by (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (ii) interpolating linearly between (A) the actively traded U.S. Treasury security with the maturity closest to and greater than such Remaining Life and (B) the actively traded U.S. Treasury security with the maturity closest to and less than such Remaining Life. The Reinvestment Yield shall be rounded to two decimal places.

"**Related Fund**" means, with respect to any Holder that is an investment fund, any other investment fund that is engaged in making, purchasing, holding or otherwise investing in bank loans, commercial loans, private placements and similar extensions of credit in the ordinary course and that is managed, advised or sub-advised by the Holder, an Affiliate of such Holder, or

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an entity that administers, advises, sub-advises or manages such Holder. Related Fund shall, with respect to any Holder, also include any swap, special purpose vehicles purchasing or acquiring security interests in collateralized loan obligations of such Holder or any other vehicle through which such Holder's investment advisors may leverage its investments from time to time.

"**Release**" means any depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping, or disposing.

"**Remaining Life**" means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the Make-Whole Expiry Date.

"**Remaining Scheduled Payments**" means, with respect to the Called Principal of any Note, all payments of Interest in respect of such Called Principal that would be due on or after the Settlement Date through the Make-Whole Expiry Date with respect to such Called Principal if no payment of such Called Principal (or other payment of principal on the Notes) were made (to be calculated assuming the Adjusted Term SOFR Rate at the time the applicable notice of payment is delivered applies through the applicable period or, if no such notice is given, assuming the Adjusted Term SOFR Rate at the time of such payment applies through the applicable period).

"**Remedial Work**" as defined in <u>Section 6.09(a)</u>.

"**Requisite Holders**" means two or more Holders having or holding Exposure representing more than fifty percent (50%) of the sum of the aggregate Exposure of all Holders.

"**Reserve Report**" means (a) the Initial Reserve Report, (b) the Acquired Assets Reserve Report and (c)(i) any other subsequent report, in the form of the Initial Reserve Report (including an Aries database) and/or (ii) any other engineering data acceptable to the Agent (at the direction of the Requisite Holders), setting forth, as of the dates set forth in <u>Section 6.11(a)</u>, the Proved Reserves and Probable Reserves attributable to the Oil and Gas Properties of the Issuer and the other Note Parties, together with a projection of the rate of production and future net revenues, operating expenses (including production taxes and ad valorem expenses, if applicable) and capital expenditures with respect thereto as of such date, based upon pricing assumptions consistent with SEC reporting requirements at the time and reflecting Swap Agreements in place with respect to such production.

"**Reserve Report Certificate**" means a certificate of a Responsible Officer in substantially the form of <u>Exhibit J</u> certifying as to the matters in <u>Section 6.11(b)</u>.

"**Resolution Authority**" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"**Responsible Officer**" means, as to any Person, the chief executive officer, the president, any Financial Officer or any vice president or authorized signatory of such Person; <u>provided</u> that if such person is a limited partnership or limited liability company, any reference to a Responsible Officer of such Person shall be a reference to a Responsible Officer of such limited liability company or of the general partner or sole member, as applicable, of such Person. Unless otherwise specified, all references to a Responsible Officer herein shall mean a Responsible Officer of the Issuer.

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"**Restricted Payment**" means (a) any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in the Issuer or any of its Subsidiaries, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Issuer or any of its Subsidiaries or any option, warrant or other right to acquire any such Equity Interests in the Issuer or any of its Subsidiaries and (b) any payment of management fees, advisory fees, consulting fees or similar fees by the Issuer or any Restricted Subsidiary to any holders of their Equity Interests or any Affiliates thereof. Notwithstanding the foregoing, for purposes of this Agreement, AUM Fees and Dividend Incentive Fees shall constitute Restricted Payments and not General and Administrative Costs.

"**Restricted Subsidiary**" means any Subsidiary of the Issuer that is not an Unrestricted Subsidiary.

"**Rolling Period**" means, as of any date of determination, the most recently ended period of four (4) consecutive Fiscal Quarters for which financial statements have been delivered, or were required to be delivered, pursuant to <u>Section 6.01(a)</u> or <u>Section 6.01(b)</u>, as applicable; <u>provided</u> that, for purposes of <u>Section 7.01</u>, "Rolling Period" means, as of the last day of any Fiscal Quarter, the period of four (4) consecutive Fiscal Quarters ending on such date.

"**S&P**" means Standard & Poor's Ratings Group, a division of The McGraw-Hill Companies, Inc., and any successor thereto that is a nationally recognized rating agency.

"**Sanctioned Country**" means, at any time, a country, region or territory which is itself, or whose government is, the subject or target of any Sanctions broadly restricting or prohibiting dealings with such country, territory or government (at the time of this Agreement, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, the non-government-controlled areas of the Kherson and Zaporizhzhia Regions of Ukraine, the Crimea Region of Ukraine, Cuba, Iran, North Korea and Syria).

"**Sanctioned Person**" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State or by the United Nations Security Council, the European Union, any European Union member state or His Majesty's Treasury of the United Kingdom, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any government that is itself the subject or target of sanctions or (d) any Person 50% or more owned or controlled by any such Person or Persons described in the foregoing <u>clauses (a)</u>, <u>(b)</u> or <u>(c)</u>.

"**Sanctions**" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, the United Nations Security Council, the European Union, any European Union member state, or His Majesty's Treasury.

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"**SEC**" means the United States Securities and Exchange Commission or any Governmental Authority succeeding to any of its principal functions.

"**Second Engineer**" as defined in <u>Section 1.05(d)</u>.

"**Second Amendment**" means that certain Second Amendment to Note Purchase Agreement, dated as of June 23, 2025, by and among the Issuer, the other Note Parties, the Agent, the Holders and the Second Amendment Incremental Note Holders.

"**Second Amendment Effective Date**" means June 23, 2025.

"**Second Amendment Incremental Commitment**" means the commitments of the Second Amendment Incremental Note Holders to purchase the Second Amendment Incremental Notes on the Second Amendment Effective Date. The aggregate amount of the Second Amendment Incremental Commitments is $100,000,000.

"**Second Amendment Incremental Note Holders**" means each person listed on the signature page to the Second Amendment as a Second Amendment Incremental Note Holder.

"**Second Amendment Incremental Notes**" means the Notes purchased on the Second Amendment Effective Date pursuant to <u>Section 2.01(a)(iii)</u>, as evidenced by a promissory note in the form of <u>Exhibit B-2</u>.

"**Second Amendment LOS/CF Certificate**" means the LOS/CF Certificate delivered on July 20, 2025.

"**Second Amendment Pre-Fund Date**" means June 20, 2025.

"**Second Amendment Reserve Report**" means the Reserve Report prepared internally by the Issuer, dated as of January 1, 2025, evaluating the Proved Reserves comprising the Acquired PHX Assets acquired pursuant to the Specified PHX Merger Agreement as of the Second Amendment Effective Date.

"**Second Amendment Transaction Expenses**" means any fees or expenses incurred by the Issuer or any of its Restricted Subsidiaries in connection with the Second Amendment, the Specified PHX Merger Agreement and the transactions contemplated thereby.

"**Second Offer**" as defined in <u>Section 2.09(g)</u>.

"**Secondary Distributions**" as defined in <u>Section 7.04(c)(i)(A)</u>.

"**Secured Hedge Agreement**" means any Swap Agreement between a Note Party and a Secured Hedge Provider entered into (a) substantially concurrently with such Secured Hedge Provider becoming, or after such Secured Hedge Provider has become, party to the Hedge Intercreditor Agreement or (b) prior to the Closing Date, to the extent such Secured Hedge Provider was a Secured Hedge Provider on the Closing Date.

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"**Secured Hedge Obligations**" means all debts, liabilities, obligations, covenants and duties of any Note Party to any Secured Hedge Provider under any Secured Hedge Agreement, so long as such Secured Hedge Provider is party to, and remains subject to, the Hedge Intercreditor Agreement.

"**Secured Hedge Provider**" means, any Approved Counterparty that is party to, and remains subject to, the Hedge Intercreditor Agreement, either by signing the Hedge Intercreditor Agreement directly or by entry into a Joinder Supplement (as defined in the Hedge Intercreditor Agreement) pursuant to the terms and conditions of the Hedge Intercreditor Agreement.

"**Secured Parties**" means, collectively, the Agents, the Holders, the Secured Hedge Providers and any other Person owed Obligations, and "Secured Party" means any of them individually.

"**Securities Account**" means any "securities account" as defined in the UCC.

"**Securities Act**" means the Securities Act of 1933, as amended from time to time, the rules and regulations promulgated thereunder and any successor statute.

"**Seller**" means Three Rivers Royalty II, LLC.

"**Series A Preferred Shares**" means the 44,100 shares of preferred stock designated as "**Series A Preferred Stock**" pursuant to Section 1 of the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**Series B Preferred Shares**" means the 50,000 shares of preferred stock designated as "**Series B Preferred Stock**" pursuant to Section 1 of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024.

"**Series C Preferred Shares**" means the fifty six thousand (56,000) shares of preferred stock designated as "**Series C Preferred Stock**" pursuant to Section 1 of the Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of March 26, 2025.

**<u>"Series D Certificate of Designations" means the Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of March 30, 2026.</u>** 

**<u>"Series D Preferred Shares" means the thirty-seven thousand seven hundred and eighty (37,780) shares of preferred stock designated as "Series D Preferred Stock" pursuant to Section 1 of the Series D Certificate of Designations.</u>** 

"**Settlement Date**" means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be prepaid pursuant to <u>Section 2.08</u> or <u>Section 2.09</u> as the context requires.

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"**SOFR**" means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website.

"**SOFR Administrator**" means the NYFRB (or a successor administrator of the secured overnight financing rate).

"**SOFR Administrator's Website**" means the NYFRB's website, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"**Solvency Certificate**" means a Solvency Certificate of a Financial Officer substantially in the form of <u>Exhibit E</u>.

"**Solvent**" means, with respect to any Person on any date of determination, that on such date (a) the present fair saleable value of the property of such Person and its Subsidiaries on a consolidated basis will be greater than the amount that will be required to pay the probable liability of such Person and its Subsidiaries on a consolidated basis on their debts and other liabilities, as such debts and other liabilities become absolute and matured; (b) such Person and its Subsidiaries on a consolidated basis will be able to pay their debts and liabilities, direct, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (c) such Person and its Subsidiaries on a consolidated basis will not have unreasonably small capital with which to conduct the businesses in which they are engaged as such businesses are conducted as of such date and are proposed to be conducted following such date.

"**Specified Acquisition**" means the acquisition by WhiteHawk Income Marcellus LLC of the Acquired Assets on the Closing Date pursuant to and in accordance with the terms and conditions of the Specified Acquisition Agreement.

"**Specified Acquisition Agreement**" means that certain Purchase and Sale Agreement between Three Rivers Royalty II, LLC, a Colorado limited liability company, as seller (the "**Seller**") and WhiteHawk Income Marcellus LLC, a Delaware limited liability company, as buyer, dated as of and as in effect on September 17, 2024, together with all exhibits, annexes, schedules and other disclosure or other letters thereto, collectively.

"**Specified Equity Contribution**" means, at any time, without duplication, (a) the amount of cash proceeds received by the Issuer as cash capital contributions from one or more holders of the Equity Interests of the Issuer during the Cure Period or (b) the amount of proceeds received from the issuance of common Equity Interests issued by the Issuer (or, on terms reasonably satisfactory to the Requisite Holders, other forms of Equity Interests (it being understood that preferred Equity Interests in form and substance substantially the same as the Series A Preferred Shares or Series B Preferred Shares as of the Closing Date shall be deemed to be on terms reasonably satisfactory to the Requisite Holders)) to one or more of the holders of the Equity Interests of the Issuer during the Cure Period (in each case, other than in connection with an issuance by the Issuer of Disqualified Capital Stock), which is made for the purpose of curing a failure to comply with <u>Sections 7.01(a)</u> or <u>7.01(b)</u> that would otherwise occur, pursuant to the exercise of a cure right pursuant to <u>Section 7.01(c)</u>.

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"**Specified Period A Equity Redemptions**" means redemptions by the Issuer of its (a) common Equity Interests in accordance with the Issuer's Organizational Documents in effect as of the Second Amendment Effective Date, (b) Series B Preferred Shares in accordance with the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 and/or<u>,</u> (c) Series C Preferred Shares in accordance with the Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of March 26, 2025 <u>and/or (d) Series D Preferred Shares in accordance with the Series D Certificate of Designations</u>, in each case as in effect as of the date hereof.

"**Specified Period B/C Level I Equity Redemptions**" means redemptions by the Issuer of its (a) common Equity Interests in accordance with the Issuer's Organizational Documents in effect as of the Second Amendment Effective Date and/or Series B Preferred Shares in accordance with the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024, in each case as in effect as of the date hereof.

"**Specified Period B/C Level II Equity Redemptions**" means redemptions by the Issuer of its (a) Series B Preferred Shares in accordance with the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation, dated as of February 1, 2024 **and/or<u>,</u>** (b) Series C Preferred Shares in accordance with the Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, dated as of March 26, 2025<u>**and/or (c) Series D Preferred Shares in accordance with the Series D Certificate of Designations**</u>, in each case as in effect as of the date hereof.

"**Specified Event**" as defined in <u>Section 9.02</u>.

"**Specified Issuance Proceeds**" as defined in <u>Section 7.04(e)</u>.

"**Specified PHX Merger**" means the acquisition by WhiteHawk Merger Sub, Inc. ("**Merger Sub**") of the outstanding common stock of PHX Minerals Inc., a Delaware corporation (the "**Target**"), by means of a cash tender offer (the "**Offer**") by Merger Sub to acquire any and all of the outstanding shares of common stock of the Target, and, as soon as practicable following the consummation of the Offer, a merger of Merger Sub with and into the Target pursuant to Section 251(h) of the General Corporation Law of the State of Delaware on the Second Amendment Effective Date pursuant to and in accordance with the terms and conditions of the Specified PHX Merger Agreement.

"**Specified PHX Merger Agreement**" means that certain Agreement and Plan of Merger between WhiteHawk Acquisition, Inc., Whitehawk Merger Sub, Inc. and PHX Minerals Inc., dated as of May 8, 2025 and as in effect on June 23, 2025, together with all exhibits, annexes, schedules and other disclosure or other letters thereto, collectively.

"**Specified RPs**" as defined in <u>Section 7.04(d)</u>.

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"**Specified SJM Acquisition**" means the acquisition by Whitehawk Income Marcellus LLC of the Acquired SJM Assets on the First Amendment Effective Date pursuant to and in accordance with the terms and conditions of the Specified SJM Acquisition Agreement.

"**Specified SJM Acquisition Agreement**" means that certain Purchase and Sale Agreement between Three Rivers Royalty, LLC, as seller, and WhiteHawk Income Marcellus LLC, as buyer, dated as of and as in effect on March 31, 2025, together with all exhibits, annexes, schedules and other disclosure or other letters thereto, collectively.

"**Strip Price**" means, at any time, (a) for each remaining month of the current calendar year, the monthly NYMEX Pricing for the remaining contracts in the current calendar year, (b) for each of the succeeding five complete calendar years, the monthly NYMEX Pricing, in each case, for each of the twelve months in each such calendar year, and (c) for the succeeding sixth complete calendar year, and for each calendar year thereafter, the annual monthly average of the NYMEX Pricing of the preceding fifth calendar year.

"**Subsidiary**" means, with respect to any Person (the "**Parent**") at any date, any other Person the accounts of which would be consolidated with those of the Parent in the Parent's consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other Person (a) of which Equity Interests representing more than 50% of the equity or more than 50% of the ordinary voting power (irrespective of whether or not at the time Equity Interests of any other class or classes of such Person shall have or might have voting power by reason of the happening of any contingency) or, in the case of a partnership, any general partnership interests are, as of such date, owned, controlled or held, or (b) the management decisions of which, as of such date, are otherwise controlled, in each case, directly, indirectly through one or more intermediaries, or both, by the Parent. Unless otherwise specified, each reference to "Subsidiary" means a Subsidiary of the Issuer. It is understood and agreed that following each DST Sell-Down, until it becomes a subsidiary of the Issuer in accordance with this definition of "Subsidiary" and this final sentence is no longer necessary, each WH DST shall be deemed to be a Subsidiary.

"**Swap Agreement**" means any swap, forward, collar, future or derivative transaction or option or similar agreement, whether exchange traded, "over-the-counter" or otherwise (and for the avoidance of doubt, including on a prepaid or physically settled basis), involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions (including, but not limited to, as the context dictates, any agreement, contract or transaction that constitutes a "swap" within the meaning of Section 1a(47) of the Commodity Exchange Act); <u>provided</u> that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Issuer or its Restricted Subsidiaries shall be a Swap Agreement.

"**Swap Termination Value**" means, in respect of any one or more Swap Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Agreements, (a) for any date on or after the date such Swap Agreements have been closed out and termination value(s) determined in accordance therewith, such close-out and termination value(s) (including any unpaid amounts) and (b) for any date prior to the date referenced in <u>clause (a)</u>, the amount(s) determined as the mark-to-market value(s) for such Swap Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Agreements.

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"**Synthetic Leases**" means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, treated as operating leases on the financial statements of the Person liable (whether contingently or otherwise) for the payment of rent thereunder and which were properly treated as indebtedness for borrowed money for purposes of United States federal income taxes, if the lessee in respect thereof is obligated to either purchase for an amount in excess of, or pay upon early termination an amount in excess of, 80% of the residual value of the Property subject to such operating lease upon expiration or early termination of such lease.

"**Target Debt Balance**" means the aggregate principal amount of Notes as set forth in the following table:

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| | |
|:---|:---|
|  Closing Date | $65000000.0 |
|  January 31, 2025 | $63375000.0 |
|  April 30, 2025 | $147750000.0 |
|  July 31, 2025 | $243975000.0 |
|  October 31, 2025 | $237700000.0 |
|  January 31, 2026 | $231425000.0 |
|  April 30, 2026 | $225150000.0 |
|  July 31, 2026 | $218875000.0 |
|  October 31, 2026 | $212600000.0 |
|  January 31, 2027 | $206325000.0 |
|  April 30, 2027 | $200050000.0 |
|  July 31, 2027 | $193775000.0 |
|  October 31, 2027 | $187500000.0 |
|  January 31, 2028 | $181225000.0 |
|  April 30, 2028 | $174950000.0 |
|  July 31, 2028 | $168675000.0 |
|  October 31, 2028 | $162400000.0 |
|  January 31, 2029 | $156125000.0 |
|  April 30, 2029 | $149850000.0 |
|  July 31, 2029 | $143575000.0 |
|  October 31, 2029 | $137300000.0 |
|  January 31, 2030 | $131025000.0 |
|  April 30, 2030 | $124750000.0 |

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"**Tax**" or "**Taxes**" means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"**Tax on the Overall Net Income**" of a Person means (a) Taxes imposed on or measured by net income (however denominated), franchise Tax and branch profits Tax, in each case, imposed on a Person by the jurisdiction (or any political subdivision thereof) in which a Person is organized or in which that Person's applicable principal office (and/or, in the case of a Holder, its Applicable Office) is located or in which that Person (and/or, in the case of a Holder, its Applicable Office) is deemed to be doing business, and (b) any Tax imposed as a result of a present or former connection between such Person and the jurisdiction imposing such Tax (other than connections arising from such Person having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Note Document, or sold or assigned an interest in any Note or Note Document).

"**Tax Related Person**" means, with respect to a pass-through entity, any Person who is a beneficial owner of an interest in such pass-through entity who is required to include in income amounts realized (whether or not distributed) by such pass-through entity. The foregoing shall be determined under United States federal income tax principles.

"**Term SOFR Determination Day**" has the meaning assigned to it under the definition of Term SOFR Reference Rate.

"**Term SOFR Rate**" means the three-month Term SOFR Reference Rate at approximately 12:00 p.m., New York time, two (2) U.S. Government Securities Business Days prior to the commencement of the applicable Interest Period, as such rate is published by the CME Term SOFR Administrator.

"**Term SOFR Reference Rate**" means, for any day and time (such day, the "Term SOFR Determination Day"), with respect to any Interest Period, the rate per annum determined by the Agent as the three-month forward-looking term rate based on SOFR. If by 5:00 p.m. (New York City time) on such Term SOFR Determination Day, the "Term SOFR Reference Rate" has not been published by the CME Term SOFR Administrator, then the Term SOFR Reference Rate for such Term SOFR Determination Day will be the Term SOFR Reference Rate as published in respect of the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate was published by the CME Term SOFR Administrator, so long as such first preceding Business Day is not more than three (3) Business Days prior to such Term SOFR Determination Day.

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"**Third Amendment**" means that certain Third Amendment to Note Purchase Agreement, dated as of January 27, 2026, by and among the Issuer, the other Note Parties, the Agents and the Holders.

"**Third Amendment Effective Date**" means January 27, 2026.

"**Total Net Debt**" means, as of any date of determination, (a) the aggregate amount of Debt of the Issuer and its Consolidated Restricted Subsidiaries outstanding on such date, determined on a consolidated basis in accordance with GAAP consisting only of Debt of the Issuer and its Restricted Subsidiaries for borrowed money, drawn but unreimbursed obligations under letters of credit, obligations in respect of Finance Leases and other obligations for borrowed money evidenced by bonds, bankers' acceptances, debentures, notes or other similar instruments (excluding, for the avoidance of doubt, Debt under surety or other performance bonds and similar instruments), <u>minus</u> (b) the aggregate amount of the Note Parties' Unrestricted Cash on hand as of such date in an aggregate amount not to exceed $25,000,000.

"**Total PDP PV-10 Value**" means, as of any date of determination, with respect to the Proved Developed Producing Reserves constituting Oil and Gas Properties of the Note Parties, the net present value of future cash flows (discounted at ten percent (10%) *per annum*) calculated in accordance with <u>Section 1.05</u>.

"**Transaction Expenses**" means any fees or expenses incurred or paid by the Issuer or any of its Restricted Subsidiaries in connection with the Transactions, this Agreement and the other Note Documents and the transactions contemplated hereby.

"**Transactions**" means the transactions contemplated by the Note Documents to occur on or prior to the Closing Date, including (a) the execution, delivery and performance by the Note Parties of the Note Documents to which they are a party and the issuance of the Notes hereunder, (b) the consummation of the Specified Acquisition and the Refinancing and (c) the payment of related fees and expenses.

"**Trust Agreements**" means (a) the Amended and Restated Trust Agreement of WhiteHawk Royalties I DST, a Delaware Statutory Trust (the "Initial Trust Agreement") by and among WhiteHawk DST Depositor LLC, as the depositor, WhiteHawk DST Manager LLC, as the Manager and signatory trustee, and Corporate Creations Network Inc., as the Delaware trustee (including all amendments, exhibits and schedules thereto) in substantially the same form delivered to the Required Lenders on the Third Amendment Effective Date and (b) a trust agreement of a WH DST with substantially the same form, terms and conditions as the Initial Trust Agreement as in effect on the Third Amendment Effective Date.

"**U.S. Tax Compliance Certificate**" as defined in <u>Section 2.14(e)(iii)</u>.

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"**UCC**" means the Uniform Commercial Code as in effect in any applicable jurisdiction.

"**UK Financial Institution**" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"**UK Resolution Authority**" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"**United States Person**" has the meaning in Section 7701(a)(30) of the Internal Revenue Code.

"**Unrestricted Cash**" means cash or Cash Equivalents of the Issuer or any of its Restricted Subsidiaries that would not appear as "restricted" on a consolidated balance sheet of the Issuer or any of its Restricted Subsidiaries; <u>provided</u> that (a) cash or Cash Equivalents that would appear as "restricted" on a consolidated balance sheet of the Issuer or any of its Restricted Subsidiaries solely because such cash or Cash Equivalents are subject to a Control Agreement in favor of the Collateral Agent shall constitute Unrestricted Cash hereunder and (b) cash and Cash Equivalents shall be included in the determination of Unrestricted Cash only to the extent that such cash and Cash Equivalents are maintained in accounts subject to a Control Agreement as required hereunder.

"**Unrestricted Subsidiary**" means any Subsidiary of the Issuer designated as such on <u>Schedule 4.13</u>. Notwithstanding anything to the contrary, there shall be no Unrestricted Subsidiaries under the Note Purchase Agreement or any other Note Document and the Issuer shall not be permitted to designate any Subsidiary as an Unrestricted Subsidiary.

"**U.S. Government Securities Business Day**" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"**USA PATRIOT Act**" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. 107-56), as amended.

"**WH Depositors**" means, collectively (a) WhiteHawk DST Depositor LLC, a Delaware limited liability company and (b) a wholly-owned subsidiary of the Issuer with a substantially similar business purpose and organizational structure as WhiteHawk DST Depositor LLC as in effect on the Third Amendment Effective Date.

"**WH DSTs**" means, collectively (a) WhiteHawk Royalties I DST, a Delaware Statutory Trust and (b) a Delaware statutory trust initially formed and beneficially owned by a WH Depositor with a substantially similar business purpose and organizational structure as WhiteHawk DST Depositor LLC as in effect on the Third Amendment Effective Date.

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"**WH DST Offering**" mean a specific offering and syndication of class 1 beneficial interests in a WH DST to third-party investors pursuant to the applicable DST PPM.

"**WH Master Tenants**" means, collectively (a) WhiteHawk DST Master Tenant LLC, a Delaware limited liability company and (b) a wholly-owned subsidiary of the Issuer with a substantially similar business purpose and organizational structure as WhiteHawk DST Master Tenant LLC as in effect on the Third Amendment Effective Date.

"**WH OPs**" means, collectively (a) WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership and (b) a wholly-owned subsidiary of the Issuer with a substantially similar business purpose and organizational structure as WhiteHawk Income Operating Partnership L.P. as in effect on the Third Amendment Effective Date.

"**Wholly-Owned Subsidiary**" means any Restricted Subsidiary of which all of the outstanding Equity Interests (other than any directors' qualifying shares mandated by applicable law), on a fully-diluted basis, are owned by the Issuer or one or more of the Wholly-Owned Subsidiaries or are owned by the Issuer and one or more of the Wholly-Owned Subsidiaries.

"**Withholding Agent**" means each of the Note Parties or the Agent.

"**Write-Down and Conversion Powers**" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

**Section 1.03** <u>Accounting Terms</u>. Except as otherwise expressly provided herein, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Note Document, and the Issuer or the Requisite Holders shall so request, the Requisite Holders and the Issuer shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; <u>provided</u> that, until so amended, such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and the Issuer shall provide to Agent and Holders reconciliation statements requested by Agent, acting at the written direction of the Requisite Holders, (reconciling the computations of such financial ratios and requirements from then-current GAAP computations to the computations under GAAP prior to such change) in connection therewith. Financial statements and other information required to be delivered by the Issuer to Holders pursuant to <u>Sections 6.01(a)</u> and <u>6.01(b)</u> shall be prepared in accordance with GAAP as in effect at the time of such preparation. Subject to the foregoing, calculations in connection with the definitions, covenants and other provisions hereof shall utilize accounting principles and policies in conformity with those used to prepare the historical financial statements of the Issuer.

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**Section 1.04** <u>Interpretation, etc.</u> Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference. References herein to any Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an Exhibit, as the case may be, hereof unless otherwise specifically provided. References herein to a Schedule shall be considered a reference to such Schedule as of the Closing Date. The use herein of the word "include" or "including," when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not no limiting language (such as "without limitation" or "but not limited to" or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter. The use of the words "repay" and "prepay" and the words "repayment" and "prepayment" herein shall each have identical meanings hereunder. Unless otherwise indicated, any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein (it is understood that the phrase "any functionally equivalent term", when used with respect to another term, means a term with substantially the same meaning as such other term)). The use herein of the phrase "to the knowledge of" with respect to a Note Party shall be a reference to the knowledge of the Responsible Officers of the applicable Note Party. Unless otherwise specified, whenever any obligation required hereunder shall be stated to be due or performed on a day that is not a Business Day, such obligation shall be required on the immediately succeeding Business Day and such extension of time shall be included in the satisfaction of the obligation required hereunder (except as set forth in the definition of "Maturity Date"). The use of the phrase "subject to" or words of like import as used in connection with Liens permitted under <u>Section 7.03</u> or otherwise and the permitted existence of any Liens permitted under <u>Section 7.03</u> or any other Liens shall not be interpreted to expressly or impliedly subordinate any Liens granted in favor of the Collateral Agent or any other Secured Party as there is no intention to subordinate the Liens granted in favor of the Collateral Agent and the other Secured Parties. The words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights. No provision of this Agreement or any other Note Document shall be interpreted or construed against any Person solely because such Person or its legal representative drafted such provision. The words "execution," "signed," "signature," and words of like import in any Note Document or any amendment or other modification thereof shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New

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York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; <u>provided</u> that, notwithstanding anything herein to the contrary, the Agents are under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Agents pursuant to reasonable procedures approved by the Agents. All notices, approvals, consents, requests and any communications hereunder must be in writing, in English (<u>provided</u> that any such communication sent to an Agent hereunder must be delivered by electronic mail (if in such Agent's discretion), or in the form of a document that is signed manually or by way of a digital signature provided by DocuSign or AdobeSign (or such other digital signature provider as specified in writing to the Agents by the Issuer)). The Note Parties agree to assume all risks arising out of the use of using digital signatures and electronic methods to submit communications to an Agent, including without limitation the risk of the Agents acting on unauthorized instructions, and the risk of interception and misuse by third parties. Any reference in the Note Documents to the Agent or Collateral Agent exercising discretion or making determinations shall refer to the Agent or Collateral Agent exercising such discretion or making such determination at the direction of the Requisite Holders. Neither the Agent nor the Collateral Agent shall have any obligation to act in the absence of such direction.

**Section 1.05** <u>Calculations of Total PDP PV-10 Value</u>. Notwithstanding anything to the contrary contained herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for all calculations of Total PDP PV-10 Value hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) appropriate deductions shall be made for severance and ad valorem taxes, obligations and anticipated payments in respect of minimum volume commitments, capital expenditures and for operating, gathering, transportation and marketing costs required for the development, operation, production and sale of such oil and gas properties (including any contractually specified cost increases or escalators), plugging and abandonment (and other asset retirement obligations) or any other expenses in respect of such Oil and Gas properties (including expense incurred after the end of the expected economic lives of such Oil and Gas properties or contractually required increases in or escalators for expenses) in respect of such oil and gas properties,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without prejudice to <u>Section 6.12(c)(ii)</u>, appropriate deductions shall be made for the benefits associated with Proved Developed Producing Reserves constituting Oil and Gas Properties of the Note Parties for which reasonably satisfactory title information as determined by the Requisite Holders has not been provided to the Requisite Holders on at least 90% of the cash flows attributable to such Proved Developed Producing Reserves,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the pricing assumptions used in determining Total PDP PV-10 Value for any Oil and Gas properties shall be based upon the Strip Price as described in <u>clause (c)</u> below, to reflect the Note Parties' commodity Swap Agreements with Approved Counterparties then in effect so that the expected cash flows with respect to such Swap Agreements are included in the determination of Total PDP PV-10 Value, without duplication with the cash flows from the production subject to such Swap Agreements (it being understood that deferred premiums in respect of such Swap Agreements shall be deducted from such expected cash flows),

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the cash flows derived from the pricing assumptions set forth in <u>clause (ii)</u> above shall be further adjusted for basis, quality and gravity differentials based on historical differentials and go-forward expectations,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the methodology applied towards any such calculation shall be consistent with, as reasonably determined by the Requisite Holders, the methodology applied in the Acquired Assets Reserve Report and the Initial Reserve Report, including without limitation the methodology applied to allocate fixed platform expenses to various reserve categories, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) notwithstanding the foregoing, wells shall only be included in the determination of Total PDP PV-10 Value to the extent that the Issuer receives revenue in the form of cash or Cash Equivalents pursuant to its ownership interest in such wells;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any such calculation, other than any calculation made as of the last day of any Fiscal Quarter with respect to <u>clause (i)</u> and <u>clause (iii)</u> below, shall be calculated on a pro forma basis for (i) the roll-off of production since the date of the most recently delivered Reserve Report, (ii) any change in the category of any Oil and Gas Property to another category of Oil and Gas Property (e.g., any "proved undeveloped reserves" becoming "proved developed reserves") and (iii) any disposition or acquisition of Oil and Gas Properties of the Note Parties constituting Proved Developed Producing Reserves, in each case, occurring or consummated by the Note Parties following the "as of" date of the Reserve Report most recently delivered by the Issuer pursuant to <u>Section 6.11</u> (<u>provided</u> that, in the case of <u>clause (ii)</u> and dispositions or acquisitions under <u>clause (iii)</u> above, the Requisite Holders shall have received, and such update shall be based on, updated reserve engineering projections, reasonably acceptable to the Requisite Holders, evaluating the Proved Developed Producing Reserves attributable to the Oil and Gas Properties subject thereto ("**Specified Reserve Updates**")) but prior to the date on which Total PDP PV-10 Value is being calculated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any calculation of Total PDP PV-10 Value (i) on any date other than the last day of any Fiscal Quarter shall be made using (x) the information set forth in the Reserve Report most recently delivered by the Issuer pursuant to <u>Section 6.11</u> (as supplemented by any Specified Reserve Updates) and with an "as of" date that is such date of determination and (y) a Strip Price determined as the Strip Price for the date that is five (5) Business Days prior to such date of determination and (ii) on the last day of any Fiscal Quarter shall be made using (x) the information set forth in the Reserve Report with an "as of" date that is the same as such date and shall be based on reserve categories of the Oil and Gas properties on such date, and (y) a Strip Price determined as of the date that is forty (40) days after the end of the Fiscal Quarter to which the applicable corresponding certificate delivered pursuant to <u>Section 6.01(c)</u> pertains; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) within ten (10) Business Days of receiving an Asset Coverage Ratio certificate provided pursuant to <u>Section 6.01(c)</u> or <u>Section 6.01(u)</u>, the Requisite Holders may, in their sole discretion, (x) request additional information with respect to such Asset Coverage Ratio certificate, its related Reserve Report and/or (y) deliver written notice to the Issuer that the Requisite Holders do not agree with the information set forth in such Reserve Report, Specified Reserve Updates and/or the Issuer's calculation of the Asset Coverage Ratio (including any component thereof). Upon delivery of such written notice by the Requisite Holders, the Issuer and the Requisite Holders shall promptly engage in good faith discussions to come to an agreement with respect to such Reserve Report, Specified Reserve Updates and/or such calculation of the Asset Coverage Ratio (including any component thereof). If the Issuer and the Requisite Holders have not resolved any such disagreements within five (5) Business Days (or such longer period as is mutually agreeable to the Issuer and the Requisite Holders),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Requisite Holders shall have the right to elect within ten (10) Business Days (or such longer period as is mutually agreeable to the Issuer and the Requisite Holders) following the initial five (5) Business Day period to have an Approved Petroleum Engineer selected by the Requisite Holders (a "**Second Engineer**") audit the Reserve Report, Specified Reserve Updates and related calculations delivered by the Issuer; <u>provided</u> that such Second Engineer's audit and preparation of a revised Reserve Report and updated calculations of the Asset Coverage Ratio shall be completed within thirty (30) days of delivery of the Requisite Holder's notice of dispute (or such later date as is mutually agreeable to the Issuer and the Requisite Holders). The Issuer and the Requisite Holders will endeavor that such determination be provided as soon as possible (and agree to promptly provide such information as may be requested by the Second Engineer in connection with such determination). The Second Engineer's determination of fact as to such matters and as to the Total PDP PV-10 Value that will be used in the calculation of Asset Coverage Ratio shall be binding, absent manifest error. If the Second Engineer's calculation of Total PDP PV-10 Value is (x)(1) higher than or (2) lower by less than ten percent (10%) of, the disputed Reserve Report's calculation of Total PDP PV-10 Value, then the fees and expenses of the Second Engineer with respect to such applicable dispute shall be paid by the Requisite Holders and (y) lower by ten percent (10%) or greater of the disputed Reserve Report's calculation of Total PDP PV-10 Value, the fees and expenses of the Second Engineer with respect to such applicable dispute shall be paid by the Issuer, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event the Requisite Holders have not elected to have a Second Engineer audit the Reserve Report, Specified Reserve Updates and related calculations delivered by the Issuer in accordance with <u>clause (i)</u> above, the Issuer and the Requisite Holders shall refer such matters to the Approved Petroleum Engineer that most recently prepared a Reserve Report to make a determination (which shall be binding, absent manifest error) of fact as to such matters and as to the Total PDP PV-10 Value that will be used in the calculation of Asset Coverage Ratio. The Issuer and the Requisite Holders will endeavor that such determination be provided as soon as possible (and agree to promptly provide such information as may be requested by such Approved Petroleum Engineer in connection with such determination), and in any event within thirty (30) days of submission of such request to such Approved Petroleum Engineer (or such later date as is mutually agreeable to the Issuer and the Requisite Holders).

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During any such period of determination by the applicable Second Engineer or Approved Petroleum Engineer, as applicable (x) there shall be no Default or Event of Default arising from any non-compliance with <u>Section 7.01(b)</u> for the applicable test date and (y) no event or transaction that requires the calculation of, and compliance with, an Asset Coverage Ratio on a Pro Forma Basis, Distribution PF Basis or otherwise shall be entered into or consummated by the Issuer and its Restricted Subsidiaries. For the avoidance of doubt, if the final determination by such Second Engineer or Approved Petroleum Engineer, as applicable, would result in a finding that would cause the Issuer to fail to be in compliance with <u>Section 7.01(b)</u>, all rights of the Issuer under <u>Section 7.01(c)</u> shall apply.

**Section 1.06** <u>Free Cash Flow Distributions and Prepayments Spreadsheet</u>. For clarity, <u>Appendix D</u> contains an illustrative example of the calculations set forth in <u>Section 2.09(a)</u>, <u>Section 7.04(e)</u> and <u>Section 7.05(h)</u> and the definitions of "Adjusted Cash Flow from Operating Activities", "Cash Flow From Operating Activities", "Distributable Free Cash Flow", "Distribution PF Basis", "Free Cash Flow (Back)", "Free Cash Flow (Forward)", "Free Cash Flow Utilization", and "Prior Period Adjustment" and the parties hereto agree that the principles and methodologies with respect to the calculations set forth in <u>Appendix D</u> shall, absent manifest error, govern with respect thereto.

**ARTICLE II.** 

**PURCHASE AND SALE OF NOTES** 

**Section 2.01** <u>Note Purchase</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>The Notes</u>. Subject to the terms and conditions hereof (i) on the Closing Date, Issuer shall issue to each Holder, and each Holder shall purchase from Issuer (so long as all conditions precedent required hereby shall have then been satisfied or waived), a Note denominated in Dollars in an aggregate principal amount equal to such Holder's Pro Rata Share of $65,000,000, (ii) on the First Amendment Effective Date, Issuer shall issue to each First Amendment Additional Note Holder, and each First Amendment Additional Note Holder shall purchase from Issuer (so long as all conditions precedent required hereby shall have then been satisfied or waived), a Note denominated in Dollars in an aggregate principal amount equal to such Holder's Pro Rata Share of $86,000,000 and (iii) on the Second Amendment Effective Date, Issuer shall issue to each Second Amendment Incremental Note Holder, and each Second Amendment Incremental Note Holder shall purchase from Issuer (so long as all conditions precedent required under the Second Amendment shall have then been satisfied or waived), a Note denominated in Dollars in an aggregate principal amount equal to such Holder's Pro Rata Share of $100,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notes purchased under this <u>Section 2.01</u> and repaid or prepaid may not be resold, repurchased or reborrowed. In addition, each Holder's Commitment shall be reduced in full and immediately terminated upon giving effect to the purchases of the Notes on the Closing Date.

**Section 2.02** <u>The Notes; Purchases, Conversions and Continuations of Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the absence of manifest error, the obligation of Issuer to repay to each Holder the aggregate amount of all Notes held by such Holder, together with interest accruing in connection therewith, shall be evidenced by the Notes made by Issuer payable to such Holder or its registered assigns with appropriate insertions. Interest on each Note shall accrue and be due and payable as provided herein or in the applicable Note. Each Note shall be due and payable as provided herein and shall be due and payable in full on the Maturity Date. Issuer may not issue, repay, and reissue Notes hereunder or under the Notes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The failure of any Holder to purchase any Note to be purchased by it as part of any purchase of Notes pursuant to <u>Section 2.01</u> shall not relieve any other Holder of its obligation, if any, hereunder to purchase its Notes on the date of such Note Purchase, but no Holder shall be responsible for the failure of any other Holder to purchase the Notes to be purchased by such other Holder on the date of any Purchase.

**Section 2.03** <u>Requests for Notes</u>. Issuer must give to Agent written or electronic notice of any requested Note Purchase of Notes to be issued to, and purchased by, Holders. Each such notice constitutes a "**Note Purchase Notice**" hereunder and must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) specify the aggregate amount of any such Note Purchase and the date on which such Notes are to be purchased; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be received by Agent no later than 12:00 p.m., New York, New York time, ten (10) Business Days prior to the date on which any such Notes are to be purchased (or such earlier date as the Holders may agree (and have notified Agent) in their sole discretion), which Note Purchase Notice shall (i) be sent by the Agent to the Holders no later than 12:00 p.m., New York, New York time one Business Day following receipt by the Agent thereof and (ii) specify the accounts in to which the funds received by Agent on the Closing Date shall be disbursed (which may be in the form of the Flow of Funds).

Each such written request must be made in the form and substance of the Note Purchase Notice, duly completed. Upon receipt of any such Note Purchase Notice, Agent shall give each Holder prompt notice of the terms thereof. If all conditions precedent to such new Notes have been met (or waived), each Holder will on the date requested promptly remit to Agent, at Agent's Account, the amount of such Holder's new Note in immediately available funds, and upon receipt of all such funds, the Agent shall promptly make such funds available to the Issuer and the Issuer will deliver such Notes to the counsel for the Holders who shall promptly make such Notes available to each Holder. The failure of any Holder to purchase any Note hereunder shall not relieve any other Holder of its obligation hereunder, if any, to purchase its Note, but no Holder shall be responsible for the failure of any other Holder to purchase any Note hereunder.

**Section 2.04** <u>Use of Proceeds</u>. (a) The proceeds of the Notes issued on the Closing Date shall be used (i) to pay a portion of the purchase price for the Specified Acquisition and (ii)(A) the repayment in full of the Existing Credit Facility (the "**Refinancing**") and (B) to make redemptions of Series A Preferred Shares and (iii) for general corporate purposes, including to pay the Transaction Expenses; (b) the proceeds of the First Amendment Additional Notes issued on the First Amendment Effective Date shall be used (i) to pay a portion of the purchase price for the Specified SJM Acquisition, (ii) to redeem the Series A Preferred Shares in full and (iii) to pay the First Amendment Transaction Expenses and (c) the proceeds of the Second Amendment Incremental Notes issued on the Second Amendment Effective Date shall be used (i) to pay a portion of the consideration for the Specified PHX Merger and (ii) to pay the Second Amendment Transaction Expenses.

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**Section 2.05** <u>Evidence of Debt; Register; Holders' Books and Records; Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Holders' Evidence of Debt</u>. Each Holder shall maintain in its internal records an account or accounts evidencing the Obligations of the Issuer to such Holder, including the amounts of the Notes held by such Holder and each repayment and prepayment in respect thereof. The failure to make any such recordation, or any error in such recordation, shall not affect any Obligations in respect of any applicable Notes. In the event of any inconsistency between the Register and any Holder's records, the recordations in the Register shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Register</u>. Agent shall maintain at Agent's Office a register for the recordation of the names and addresses of the Holders and principal amounts (and stated interest) of the Notes owing to, each Holder pursuant to the terms hereof from time to time (the "**Register**"). The Register shall be available for inspection by the Issuer and any Holder at any reasonable time and from time to time upon reasonable prior notice. The entries in the Register shall be conclusive and binding on the Note Parties, the Agent and each Holder, absent manifest error; <u>provided</u> that, failure to make any such recordation, or any error in such recordation, shall not affect the Note Parties' Obligations in respect of any Note. The Issuer, the Agent and the Holders shall treat each Person in whose name any Note shall be registered as the owner and the Holder thereof for all purposes hereof. The Issuer hereby designates the entity serving as Agent to serve as the Issuer's non-fiduciary agent solely for purposes of maintaining the Register as provided in this <u>Section 2.05</u>, and the Agent shall be entitled to all of the rights, privileges and immunities afforded to it hereunder in the performance of such duties. Notwithstanding the foregoing, the Agent shall not, or be deemed to, act hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

**Section 2.06** <u>Interest; Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Interest</u>. Each Note shall at all times bear interest at a rate equal to the Applicable Margin then in effect (as such amount may be increased pursuant to <u>Section 2.06(c)</u>), paid in cash ("**Interest**"). For the avoidance of doubt, interest on the Second Amendment Incremental Notes shall begin to accrue commencing on the Second Amendment Pre-Fund Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Interest Payment Dates</u>. Interest on each Note shall be due and payable on each Interest Payment Date to Holders of record in the Register on such Interest Payment Date; <u>provided</u> that, if Interest on any Note is required to be paid on any Settlement Date pursuant to <u>Section 2.08</u> or <u>Section 2.09</u>, and such Settlement Date is not an Interest Payment Date, then the amount of Interest due and payable on the next succeeding Interest Payment Date will be reduced by the amount of interest accrued to such Settlement Date and required to be paid (and is actually paid) on such Settlement Date pursuant to such <u>Section 2.08</u> or <u>Section 2.09</u>. All interest payable hereunder shall be computed on the basis of a year of three hundred sixty (360) days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of three hundred sixty-five (365) days (or three hundred sixty-six (366) days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Default Interest</u>. Notwithstanding the foregoing, (1) automatically upon the occurrence and during the continuance of an Event of Default arising under <u>Section 9.01(a)</u>, <u>Section 9.01(b)</u>, <u>Section 9.01(h)</u> or <u>Section 9.01(i)</u> and (2) if any other Event of Default has occurred and is continuing, then if the Requisite Holders so elect by written notice to the Issuer (with a copy to the Agent), the principal amount of all Notes outstanding and, to the extent permitted by applicable law, any due and unpaid interest payments on the Notes or any unpaid fees or other unpaid amounts owed hereunder (other than default interest occurring under this <u>Section 2.06(c)</u>), shall, commencing on the date of occurrence of the applicable Event of Default, bear interest (including post-petition interest in any proceeding under the Code or other applicable bankruptcy laws, whether or not allowed in such a proceeding) payable in cash on demand at a rate that is two percent (2.0%) per annum in excess of the interest rate otherwise payable hereunder with respect to the Notes to the date of payment to the Agent. Payment or acceptance of the increased rates of interest provided for in this <u>Section 2.06(c)</u> is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Agents or any Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Fees</u>. Issuer will pay to each of the Agents and EIG for their own respective accounts, the fees as set forth in the Agent Fee Letter and the Fee Letter, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Calculations</u>. The Agent shall promptly (but in any event no later than three (3) Business Days to the Issuer and two (2) Business Days to the Holders prior to any Interest Payment Date or the date of any other amount payable under this <u>Section 2.06</u>) notify the Issuer and the Holders of the effective date and the amount of each Interest, fee or other payment under this <u>Section 2.06</u>. Each determination of an interest rate, interest payment amount or fee payment amount by the Agent pursuant to any provision of this Agreement shall be conclusive and binding on the Issuer and the Holders in the absence of manifest error. The Agent shall provide the Issuer notice of the calculation of Term SOFR Rate via email prior to the commencement of the applicable Interest Period.

**Section 2.07** <u>Repayment of Notes</u>. If any principal or interest amount payable under the Notes remains outstanding on the Maturity Date, such amount will be paid in full by the Issuer to the Agent on behalf of the Holders in immediately available funds on the Maturity Date, together with any amounts required to be paid hereunder, including pursuant to <u>Section 2.06</u>.

**Section 2.08** <u>Voluntary Prepayments</u>. The Issuer may prepay the Notes on any Business Day in whole or in part (together with any amounts due pursuant to <u>Section 2.06</u> and <u>Section 2.11(g)</u>) in an aggregate minimum principal amount equal to (a) if being paid in whole, the Obligations and (b) if being paid in part, (A) $1,000,000 and integral multiples of $500,000 in excess of that amount or (B) in an amount equal to the difference of the aggregate outstanding principal amount of the Notes on the date of such prepayment and the immediately subsequent Target Debt Balance. All such prepayments shall be made upon not less than three (3) Business Days' prior written notice, in each case given to Agent by 12:00 p.m. (New York, New York time) on the date required, which, upon receipt by the Agent, shall be promptly delivered to the Holders. Upon the giving of any such notice, the principal amount of the Notes specified in such notice shall become due and payable on the prepayment date specified therein. Any notice of prepayment described above may provide that such prepayment is conditioned upon the satisfaction of one of more conditions precedent. Any such voluntary prepayment shall be applied as specified in <u>Section 2.10</u>.

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**Section 2.09** <u>Mandatory Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>CF Sweep Dates</u>. On each "**CF Sweep Date**" as set forth in <u>Appendix C</u>, commencing with January 31, 2025, the Issuer shall prepay the Notes in an aggregate principal amount equal to the lesser of (i) the difference between (A) the aggregate outstanding principal amount of Notes and (B) the then current Target Debt Balance, in each case as of the date of such prepayment and (ii) Liquidity, calculated on a Distribution PF Basis, in excess of the Minimum Liquidity Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Casualty Events</u>. Upon receipt by the Issuer or any of its Affiliates of any Net Casualty Event Proceeds in excess of $500,000 for any individual Casualty Event or series of related Casualty Events or $1,000,000 in the aggregate, the Issuer shall within three (3) Business Days after the date of receipt of such Net Casualty Event Proceeds prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of the Net Casualty Event Proceeds and/or, so (A) long as no Default or Event of Default has occurred and is continuing and (B) both (I) as of the date of delivery of the certificate of the Responsible Officer of the Issuer described in the proviso below and (II) as of the date of reinvestment of Net Casualty Event Proceeds (as evidenced with a certificate of the Responsible Officer as of the date of such reinvestment delivered by the Issuer to the Agent), the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00, in each case on a Pro Forma Basis, reinvest such Net Casualty Event Proceeds in make Investments in Oil & Gas Properties or Equity Interests of any entity with no material assets other than Oil and Gas Properties; <u>provided further</u> that promptly following any determination by the Issuer of an election to invest Net Casualty Event Proceeds pursuant to this <u>Section 2.09(b)</u>, the Issuer shall, within thirty (30) days after the receipt of such Net Casualty Event Proceeds, deliver to the Agent a certificate of a Responsible Officer of the Issuer specifying that the Issuer intends to reinvest such Net Casualty Event Proceeds; <u>provided</u> that, if any such Net Casualty Event Proceeds are not reinvested within three-hundred sixty (360) days, the Issuer shall prepay the Notes in an amount equal to the amount of any Net Casualty Event Proceeds from Casualty Event(s) that are not applied or (re-)invested as set forth in this Section 2.09(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Issuance of Debt. Upon receipt by or on behalf of any Note Party or any of their Subsidiaries of any cash proceeds from the incurrence of any Debt (other than Debt that is permitted hereunder) by such Person, the Issuer shall prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of such proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Asset Sales</u>. Upon receipt by the Issuer or any of its Affiliates of any Net Asset Sale Proceeds in excess of $1,000,000 for any non-ordinary course individual Asset Sale or series of related Asset Sales or $2,000,000 in the aggregate, the Issuer shall (i) within three (3) Business Days after the date of receipt of such Net Asset Sale Proceeds prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of the Net Asset Sale Proceeds

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and/or, so (A) long as no Default or Event of Default has occurred and is continuing and (B) both (I) as of the date of delivery of the certificate of the Responsible Officer of the Issuer described in the proviso below and (II) as of the date of reinvestment of Net Asset Sale Proceeds (as evidenced with a certificate of the Responsible Officer as of the date of such reinvestment delivered by the Issuer to the Agent), the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00, in each case on a Pro Forma Basis, reinvest such Net Asset Sale Proceeds in make Investments in Oil & Gas Properties or Equity Interests of any entity with no material assets other than Oil and Gas Properties; <u>provided further</u> that promptly following any determination by the Issuer of an election to invest Net Asset Sale Proceeds pursuant to this <u>Section 2.09(d)</u>, the Issuer shall, within thirty (30) days after the receipt of such Net Asset Sale Proceeds, deliver to the Agent a certificate of a Responsible Officer of the Issuer specifying that the Issuer intends to reinvest such Net Asset Sale Proceeds; <u>provided</u> that, if any such Net Asset Sale Proceeds are not reinvested within three-hundred sixty (360) days, the Issuer shall prepay the Notes in an amount equal to the amount of any Net Asset Sale Proceeds from Asset Sale(s) that are not applied or (re-)invested as set forth in this <u>Section 2.09(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Specified Equity Contribution</u>. Not later than five (5) Business Days following receipt by the Issuer of any Cure Amount in accordance with <u>Section 7.01(c)</u>, the Issuer shall prepay the Notes in an aggregate principal amount equal to one hundred percent (100%) of any such Cure Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Prepayment Notice</u>. All prepayments made in accordance with <u>Section 2.09(b)</u> through <u>Section 2.09(e)</u> shall be made upon not less than eight (8) Business Days' prior written notice (or such shorter period as may be consented to by the Requisite Holders, <u>provided</u>, that the time period for any right for the Holders to waive such prepayment pursuant to <u>Section 2.09(g)</u> shall be reduced accordingly), which notice shall be sent by the Agent to the Holders one (1) Business Day following receipt by the Agent thereof. Each such notice shall include the calculation of the amount of the applicable proceeds giving rise to the prepayment, as applicable, and refer to the section under this Agreement relating to such prepayment. In connection with any prepayment required under <u>Section 2.09(b)</u> through <u>Section 2.09(e)</u>, in the event that the Issuer shall subsequently determine that the actual amount received exceeded the amount set forth in such notice, the Issuer shall promptly make an additional prepayment of the Notes in an amount equal to such excess, and the Issuer shall concurrently therewith deliver to Agent a notice of prepayment demonstrating the calculation of such excess. Any notice of prepayment may provide that such prepayment is conditioned upon the satisfaction of one or more conditions precedent. Subject to <u>Section 2.09(g)</u>, the Issuer shall prepay the Notes on the date set forth in the applicable prepayment notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Holder Right to Waive</u>. Notwithstanding anything in this Agreement to the contrary, each Holder, in its sole discretion, may, but is not obligated to, waive the Issuer's requirements to make any prepayments pursuant to <u>Section 2.09(b)</u> through <u>Section 2.09(e)</u> with respect to such Holder's Pro Rata Share of such prepayment. Upon the dates set forth in <u>Section 2.09</u> for the delivery of any such prepayment notice, Issuer shall promptly notify the Agent of the amount that is available to prepay the Notes. Promptly after the date of receipt of such notice, the Agent shall provide written notice (the "**First Offer**") to the Holders of the amount available to prepay the Notes. Any Holder declining such prepayment (a "**Declining**

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 **Holder**") shall give written notice thereof to the Agent by 10:00 a.m. New York, New York time no later than three (3) Business Days prior to such prepayment date. The Agent shall promptly provide written notice (the "Second Offer") to the Holders other than the Declining Holders (such Holders being the "Accepting Holders") of the additional amount available (due to such Declining Holders' declining such prepayment) to prepay Notes owing to such Accepting Holders, such available amount to be allocated on a *pro rata* basis among the Accepting Holders that accept the Second Offer. Any Holders declining prepayment pursuant to such Second Offer shall give written notice thereof to the Agent by 10:00 a.m. New York, New York time one (1) Business Day prior to such prepayment date, and Agent shall promptly notify Issuer of the aggregate amount of the prepayment. Amounts remaining after the allocation of accepted amounts with respect to the First Offer and the Second Offer to Accepting Holders shall be retained by Issuer or the relevant Subsidiary for working capital and general corporate purposes, subject to the other covenants contained in this Agreement. For the avoidance of doubt, any Holder or Accepting Holder that does not deliver a notice declining the applicable payment by the dates and times set forth above shall be deemed to have accepted such prepayment offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Redemption Offer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon the occurrence of the sale of all or substantially all the properties of the Note Parties and their Restricted Subsidiaries, taken as a whole, or a Change in Control, the Issuer shall make an offer to repurchase all the Holders' Notes pursuant to an irrevocable offer ("**Redemption Offer**") on the terms set forth in this <u>Section 2.09(h)</u>; <u>provided</u> that such notice may be conditioned on the consummation of the transactions described in such notice. In the Redemption Offer, Issuer will (A) offer to make a cash payment (a "**Redemption Payment**") equal to the amount that would have been payable with respect to such repurchased Notes had the Issuer prepaid such Notes pursuant to <u>Section 2.08 plus</u>, for the avoidance of doubt, the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or the Prepayment Fee, as applicable, in each case pursuant to <u>Section 2.11(g)</u> and (B) set forth the date for such purchase, which shall be the date when such transaction is consummated, in which case it shall be the next Business Day thereafter (the "**Redemption Purchase Date**"). No less than three (3) Business Days prior to the Redemption Purchase Date, the Issuer will send an irrevocable written notice to each Holder (<u>provided</u> that such notice may be conditioned on the consummation of the transactions described in such notice), with a copy to the Agent, describing the transaction or transactions that constitute the sale of all or substantially all the properties of the Note Parties and their Restricted Subsidiaries, taken as a whole, or a Change of Control (as applicable) and stating:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) that the Redemption Offer is being made pursuant to this <u>Section 2.09(h)</u> and that the Issuer is repurchasing all outstanding Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the purchase price and the Redemption Purchase Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) that, unless the Issuer defaults in the payment of the Redemption Payment, all Notes will cease to accrue interest after the Redemption Purchase Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Issuer will, no later than 12:00 p.m. (New York, New York time) on the Redemption Purchase Date deposit with the Agent an amount equal to the Redemption Payment in respect of all Notes outstanding.

Upon the giving of any such notice, the principal amount of all of the Holders' Notes shall become due and payable on the Redemption Purchase Date (<u>provided</u> that any notice described above may provide that such Redemption Payment is conditioned upon the satisfaction of one or more conditions precedent). Upon receipt of the Redemption Payment from Issuer, the Agent will promptly wire transfer (based on each Holder's wire transfer instructions, which each Holder shall have provided to the Agent (along with completion of Agent's funds transfer requirements) at least five (5) Business Days prior to the Redemption Purchase Date) to each Holder of Notes the Redemption Payment for such Notes. Any Note paid in full will cease to accrue interest on and after the Redemption Purchase Date, unless the Issuer defaults in making the Redemption Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding any provision to the contrary, in lieu of the Issuer making a Redemption Offer (A) a third party may make the Redemption Offer in the manner, at the time and otherwise in compliance with the requirements set forth in <u>Section 2.09(f)</u> hereof applicable to a Redemption Offer made by the Issuer and purchases all Notes outstanding, or (B) in connection with or in contemplation of the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, the Issuer may make an irrevocable offer to purchase (an "**Alternate Offer**") all Notes outstanding at a cash price equal to or higher than the Redemption Payment and purchase all Notes outstanding in accordance with the terms of the Alternate Offer prior to the time when the payment by the Issuer would be required pursuant to a Redemption Offer. Notwithstanding anything to the contrary contained herein, a Redemption Offer or Alternate Offer may be made in advance of the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, conditioned upon the consummation of such sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control, if a definitive agreement is in place for the sale, assignment, conveyance or other transfer of all or substantially all the properties of the Note Parties and their Subsidiaries, taken as a whole, or Change in Control at the time the Redemption Offer or Alternate Offer is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Agreement, the Issuer will comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations described in this Agreement by virtue thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) For the avoidance of doubt, the Issuer may, at its option, prepay all of the Notes pursuant to the provisions of <u>Section 2.08</u> (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or the Prepayment Fee, as applicable, due thereunder) in lieu of making a Redemption Offer pursuant to this <u>Section 2.09(h)</u>.

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**Section 2.10** <u>Application of Payments</u>. Any payment of any Note made pursuant to <u>Sections 2.07</u>, <u>2.08</u>, or <u>2.09</u> shall be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to each of the Agent and Collateral Agent in their capacities as such and Agent-related Indemnitees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations, constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section 11.03</u> or the other Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes being repaid or prepaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u> resulting from the prepayment of principal under <u>clause (e)</u> below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>fifth</u>, *pro rata* to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Issuer at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>sixth</u>, pro rata to any other Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Issuer or as otherwise required by any Governmental Requirement.

**Section 2.11** <u>General Provisions Regarding Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments by the Issuer of principal, interest, fees and other Obligations shall be made in Dollars in same day funds without recoupment, setoff, counterclaim or other defense, and delivered to Agent not later than 1:00 p.m. (New York, New York time) on the date due to Agent's Account for the account of the Holders; the Agent shall give the Holders prompt written notice of amounts due, but not received by the Agent, on such due date and at such time. Funds received by Agent after that time on such due date may be deemed by the Requisite Holders to have been paid by the Issuer on the next Business Day for the purposes of calculating interest thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All prepayments in respect of the principal amount of any Note shall be accompanied by payment of accrued interest on the principal amount being repaid or prepaid and other amounts due and payable thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Agent shall promptly distribute by wire transfer to each Holder to the account indicated in writing to Agent by each applicable Holder, such Holder's applicable Pro Rata Share of all payments and prepayments of principal and interest due hereunder, together with all other amounts due thereto, including all fees payable with respect thereto, to the extent received by Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Whenever any payment to be made hereunder shall be stated to be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Agent may, at the direction of the Requisite Holders, deem any payment by or on behalf of the Issuer hereunder that is not made in same day funds prior to 1:00 p.m. (New York, New York time) to be a non-conforming payment. Any such payment may be deemed by the Requisite Holders to have been received by Agent on the later of (i) the time such funds become available funds and (ii) the applicable next Business Day. Interest and fees shall continue to accrue on any principal as to which a non-conforming payment is made until such funds become available funds (but in no event less than the period from the date of such payment to the next succeeding applicable Business Day) at the applicable rate determined pursuant to <u>Section 2.06(a)</u> from the date such amount was due and payable until the date such amount is paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If an Event of Default shall have occurred and not otherwise been waived, all payments or proceeds received by Agent hereunder in respect of any of the Obligations shall be applied <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Agent, the Collateral Agent and Agent-related Indemnitees (including any costs and expenses related to foreclosure or realization upon, or protecting, Collateral) in its capacity as such, <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section 11.03</u> or the other Note Documents, <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes, <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u> resulting from the prepayment of principal under clause fifth below), <u>fifth</u>, pro rata to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Issuer at such time, <u>sixth</u>, pro rata to any other Obligations, and <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Issuer or as otherwise required by any Governmental Requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Make-Whole Amount; Prepayment Fee</u>. Upon any prepayment of the Notes (except for any prepayment made pursuant to <u>Section 2.07</u> or <u>Section 2.09(a)</u> or <u>Section 2.09(b)</u> or <u>Section 2.09(e)</u>), whether such prepayment occurs as a result of an acceleration of the Notes pursuant to <u>Section 9.01</u> (whether automatic or optional acceleration) following an Event of Default, at the Issuer's option or otherwise), the Issuer shall make an additional payment to the Agent for the account of the Holders in an aggregate amount equal to (i) if such prepayment or acceleration occurs on or prior to June 23, 2027 (the "**Make-Whole Expiry Date**"), the Make-Whole Amount determined for the Settlement Date with respect to such principal amount <u>plus</u> 2.0% of the principal of such prepaid or accelerated amount <u>plus</u> any accrued and unpaid

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interest and other amounts due and payable thereon or (ii) if such prepayment or acceleration occurs thereafter, a fee (the "**Prepayment Fee**"), in an amount equal to the product of (A) if such prepayment or acceleration occurs following the Make-Whole Expiry Date and on or prior to June 23, 2028, 2.00% of the principal of such prepaid or accelerated amount and (B) if such prepayment occurs after June 23, 2028, 0.00% of such prepaid or accelerated amount, <u>plus</u>, in each case for clause (ii), any accrued and unpaid interest and other amounts due and payable thereon. The Agent shall have no obligation to calculate or verify the calculations of the Make-Whole Amount or Prepayment Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Presentment of the Notes by the Holder is not a condition to receipt of payment on the Maturity Date or any earlier redemption.

**Section 2.12** <u>Ratable Sharing</u>. The Holders hereby agree among themselves that if any of them shall, whether by voluntary payment (other than a voluntary prepayment of Notes purchased and applied in accordance with the terms hereof), through the exercise of any right of set off or banker's lien, by counterclaim or cross action or by the enforcement of any right under the Note Documents or otherwise, or as adequate protection of a deposit treated as cash collateral under the Code, receive payment or reduction of a proportion of the aggregate amount of principal, interest, fees and other amounts then due and owing to such Holder hereunder or under the other Note Documents (collectively, the "**Aggregate Amounts Due**" to such Holder) which is greater than the proportion received by any other Holder in respect of the Aggregate Amounts Due to such other Holder, then the Holder receiving such proportionately greater payment shall

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) notify Agent and each other Holder of the receipt of such payment and (b) apply a portion of such payment to purchase Notes (which it shall be deemed to have purchased from each seller of a Note simultaneously upon the receipt by such seller of its portion of such payment) in the ratable Aggregate Amounts Due to the other Holders so that all such recoveries of Aggregate Amounts Due shall be shared by all Holders in proportion to the Aggregate Amounts Due to them; <u>provided</u> that, if all or part of such proportionately greater payment received by such purchasing Holder is thereafter recovered from such Holder upon the bankruptcy or reorganization of the Issuer or otherwise, those purchases to that extent shall be rescinded and the purchase prices paid for such Notes shall be returned to such purchasing Holder ratably to the extent of such recovery, but without interest. The Issuer expressly consents to the foregoing arrangement and agrees (i) that any Holder of a Note so purchased may exercise any and all rights of banker's lien, set off or counterclaim with respect to any and all monies owing by the Issuer to that Holder with respect thereto as fully as if that Holder were owed the amount of the Note held by that Holder and (ii) to the extent it may effectively do so under applicable law, that any Holder acquiring a participation pursuant to the foregoing arrangements may exercise against the Issuer rights of setoff and counterclaim with respect to such participation as fully as if such Holder were a direct creditor of the Issuer in the amount of such participation. The provisions of this <u>Section 2.12</u> shall not be construed to apply to (A) any payment made by the Issuer pursuant to and in accordance with the express terms of this Agreement, or (B) any payment obtained by a Holder as consideration for the assignment of or sale of a participation in any of its Notes or Obligations to any assignee or participant, other than to the Issuer or any Subsidiary thereof (as to which the provisions of this <u>Section 2.12</u> shall apply).

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**Section 2.13** <u>Increased Costs</u>. Subject to the provisions of <u>Section 2.14</u> (which shall be controlling with respect to the matters covered thereby), in the event that any Holder or the Agent shall determine (which determination shall, absent manifest error, be final and conclusive and binding upon all parties hereto) that any Governmental Requirement, or any change therein or in the interpretation, administration or application thereof (including the introduction of any new law, treaty or governmental rule, regulation or order), or any determination of a court or Governmental Authority, in each case that becomes effective after the date hereof, or compliance by such Holder or the Agent with any guideline, request or directive issued or made after the date hereof by any central bank or other Governmental Authority or quasi-Governmental Authority (whether or not having the force of law): (a) subjects such Holder (or its Applicable Office) or the Agent to any additional Tax (excluding any Indemnified Tax, any Connection Income Tax and any Excluded Tax (other than a tax described in clause (a) of Tax on the Overall Net Income)) with respect to this Agreement or any of the other Note Documents or any of its obligations hereunder or thereunder or any payments to such Holder (or its Applicable Office) or the Agent of principal, interest, fees or any other amount payable hereunder or its deposits, reserves or capital attributable thereto; (b) imposes, modifies or holds applicable any reserve (including any marginal, emergency, supplemental, special or other reserve), special deposit, compulsory loan, FDIC insurance or similar requirement against assets held by, or deposits or other liabilities in or for the account of, or advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of such Holder or (c) imposes any other condition (other than with respect to a Tax matter) on or affecting such Holder (or its Applicable Office) or its obligations hereunder; and the result of any of the foregoing is to increase the cost to such Holder or the Agent of agreeing to purchase, purchasing or maintaining Notes hereunder or to reduce any amount received or receivable by such Holder (or its Applicable Office) or the Agent with respect thereto; then, in any such case, Issuer shall promptly pay to such Holder or the Agent, upon receipt of the statement referred to in the next sentence, such additional amount or amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise as such Holder shall reasonably determine) as may be necessary to compensate such Holder or the Agent for any such increased cost or reduction in amounts received or receivable hereunder. Such Holder or the Agent shall deliver to Issuer (and in the case of such Holder, with a copy to Agent) a written statement, setting forth in reasonable detail the basis for calculating the additional amounts owed to such Holder or the Agent under this <u>Section 2.13</u>, which statement shall be conclusive and binding upon all parties hereto absent manifest error; <u>provided</u> that the Issuer shall not be required to compensate such Holder pursuant to this <u>Section 2.13</u> for any increased costs or reductions incurred more than three hundred sixty-five (365) days prior to the date that such Holder delivers written notice to the Issuer pursuant to this <u>Section 2.13</u> setting forth such Holder's intention to claim compensation therefor; <u>provided</u>, <u>further</u>, that if the circumstances giving rise to such increased costs or reductions is retroactive, then the 365-day period referred to above shall be extended to include the period of retroactive effect thereof.

**Section 2.14** <u>Taxes; Withholding, etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payments to Be Free and Clear</u>. All sums payable by or on account of any Note Party hereunder and under the other Note Documents shall (except to the extent otherwise required by law) be paid free and clear of, and without any deduction or withholding on account of, any Tax imposed, levied, collected, withheld or assessed by any Governmental Authority.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Withholding of Taxes</u>. If any Withholding Agent is required by law (as determined in the good faith discretion of the applicable Withholding Agent) to make any deduction or withholding for or on account of any Tax from any sum paid or payable under any of the Note Documents: (i) the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay (or cause to be paid) any such Tax to the relevant Governmental Authority and (ii) if such Tax is an Indemnified Tax, the sum payable by such Note Party in respect of which the relevant deduction or withholding is required shall be increased to the extent necessary to ensure that after any such deduction or withholding of Indemnified Taxes (including such deductions and withholdings applicable to additional sums payable under this Section), the Agent or such Holder, as the case may be, and each of their Tax Related Persons, receives on the due date a net sum equal to what it would have received had no such deduction or withholding of Indemnified Taxes been required; <u>provided</u> that, for the avoidance of doubt, no such additional amount shall be required to be paid to any Holder or the Agent (including any of their Tax Related Persons) under <u>clause (ii)</u> above for, and Indemnified Taxes shall not include, any of the following Taxes, (A) in the case of the Agent or Holder (including any of their Tax Related Persons), any U.S. federal withholding Tax in effect and applicable (x) as of the date on which Agent or Holder becomes a party to this Agreement (except to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder's assignor (including to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder's assignor's Tax Related Persons) immediately before such Holder became a party to this Agreement), and (y) in the case of a new Tax Related Person that becomes a Tax Related Person of an existing Holder after the relevant date described in <u>(x)</u>, above, the date on which such new Tax Related Person becomes a Tax Related Person (except to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such existing Holder described in (x), above, (including to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such existing Holder's existing Tax Related Persons but only to the extent that such new Tax Related Person acquires the interests of such existing Tax Related Person) immediately before such new Tax Related Person became a Tax Related Person of such existing Holder), or (z) the date on which such Holder changes its Applicable Office (except to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder (including to the extent that such amounts were, pursuant to this <u>Section 2.14(b)</u>, payable to such Holder's Tax Related Persons) immediately before it changed its Applicable Office), (B) any Tax on the Overall Net Income of the Holder or Agent (or any of their Tax Related Persons), (C) any U.S. Tax imposed under FATCA or (D) any Tax attributable to the Holder's or the Agent's failure to comply with <u>Section 2.14(e)</u> (all such amounts described in this proviso, "Excluded Taxes"). The Note Parties shall deliver to Agent official receipts (or certified copies of the receipts) or other evidence of such payment reasonably satisfactory to the Requisite Holders in respect of any Taxes payable hereunder within thirty (30) days after payment of such Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Taxes</u>. In addition, and without duplication, the Note Parties shall pay all Other Taxes to the relevant Governmental Authorities in accordance with applicable law. The Note Parties shall deliver to Agent official receipts (or certified copies of the receipts) or other evidence of such payment reasonably satisfactory to the Requisite Holders in respect of Other Taxes payable hereunder as soon as practicable after payment of such Taxes or Other Taxes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification</u>. Without duplication of any Taxes covered by <u>Sections 2.14(b)</u> or <u>(c)</u>, the Note Parties shall indemnify the Agent and each Holder, within ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this <u>Section 2.14</u>) paid or incurred by the Agent or such Holder or their respective Tax Related Persons, as the case may be, relating to, arising out of, or in connection with any Note Document or any payment or transaction contemplated hereby or thereby, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority and all reasonable expenses and costs arising therefrom or with respect thereto. A certificate as to the amount of such payment or liability delivered to the Issuer by a Holder (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Holder, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Administrative Requirements; Forms Provision</u>. Each Holder that is a United States Person for U.S. federal income tax purposes shall deliver to the Issuer and the Agent, on or prior to the Closing Date (in the case of each Holder listed on the signature pages hereof on the Closing Date) or on or prior to the date of the Assignment Agreement pursuant to which it becomes a Holder (in the case of each other Holder), and at such other times as may be necessary in the determination of the Issuer or Agent (each in the reasonable exercise of its discretion), two executed copies of Internal Revenue Service ("**IRS**") Form W-9 certifying that such Holder is exempt from U.S. federal backup withholding Tax. Each Holder that is not a United States Person for U.S. federal income tax purposes (a "**Non-U.S. Holder**") shall, to the extent it is legally entitled to do so, deliver to the Issuer and the Agent (in such number of copies as shall be requested by the recipient), on or prior to the Closing Date (in the case of each Holder listed on the signature pages hereof on the Closing Date) or on or prior to the date of the Assignment Agreement pursuant to which it becomes a Holder (in the case of each other Holder), and at such other times as may be reasonably requested by the Issuer or Agent (each in the reasonable exercise of its discretion), whichever of the following described in <u>clauses (i)</u> through <u>(v)</u> below is applicable, accurately completed and in a manner reasonably acceptable to the Issuer and the Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Non-U.S. Holder claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Note Document, two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty, and (y) with respect to any other applicable payments under any Note Document, two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) two executed copies of IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of a Non-U.S. Holder claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Internal Revenue Code, (A) a certificate substantially in the form of <u>Exhibit I-1</u> to the effect that such Non-U.S. Holder is not a "bank" within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code, a "10 percent shareholder" of the Issuer within the meaning of Section 881(c)(3)(B) of the Internal Revenue Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Internal Revenue Code (a "**U.S. Tax Compliance Certificate**") and (B) two executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to the extent a Non-U.S. Holder is not the beneficial owner of a Note, two executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit I-2</u> or <u>Exhibit I-3</u>, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u> that if the Non-U.S. Holder is a partnership and one or more direct or indirect partners of such Non-U.S. Holder are eligible to claim the portfolio interest exemption, such Non-U.S. Holder shall provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit I-4</u> on behalf of each such direct and indirect partner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Non-U.S. Holder shall deliver to the Issuer and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Non-U.S. Holder becomes a Holder under this Agreement (and from time to time thereafter upon the reasonable request of the Issuer or the Agent), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Issuer or the Agent to determine the withholding or deduction required to be made; <u>provided</u>, <u>however</u>, notwithstanding anything to the contrary in this <u>Section 2.14(e)</u>, the completion, execution and submission of the documentation described in this <u>clause (v)</u> shall not be required if in the Holder's reasonable judgment such completion, execution of submission would subject such Holder to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Holder.

Each Holder required to deliver any forms, certificates or other evidence with respect to U.S. federal income tax withholding matters pursuant to this <u>Section 2.14(e)</u> and <u>Section 2.14(f)</u> hereby agrees, from time to time after the initial delivery by such Holder of such forms, certificates or other evidence, whenever a lapse in time or change in circumstances renders such forms certificates or other evidence obsolete or inaccurate in any respect, that such Holder shall promptly deliver to Agent and the Issuer two new executed copies of IRS Form W-8BEN, IRS Form W-8BEN-E, IRS Form W-8IMY or IRS Form W-8ECI (or any successor form(s) of any of the foregoing), and as applicable, a U.S. Tax Compliance Certificate properly completed and duly executed by such Holder, and such other documentation required under the Internal Revenue Code and reasonably requested by Agent or the Issuer to confirm or establish that such Holder is not subject to deduction or withholding of U.S. federal income Tax with respect to payments to such Holder under the Note Documents or is subject to deduction or withholding at a reduced rate, or notify Agent and the Issuer of its inability to deliver any such forms, certificates or other evidence. Notwithstanding anything to the contrary in this <u>Section 2.14(e)</u>, the completion, execution and submission of such documentation (other than such documentation set forth in clauses (i)-(iv) of this <u>Section 2.14(e)</u>) shall not be required if in the Holder's reasonable judgment such completion, execution or submission would subject such Holder to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Holder. On or before the Closing Date, (or in the case of a successor or replacement Agent, on or before the date on which such successor or replacement Agent

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becomes a party to this Agreement), U.S. Bank Trust Company, National Association (or such successor or replacement Agent), shall deliver to the Issuer two executed copies of IRS Form W-9 establishing that the Issuer can make payments to the Agents without deduction or withholding of any Taxes imposed by the United States, including Taxes imposed under FATCA. Each Holder and Agent agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Issuer and the Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If a payment made to a Holder under any Note Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Holder were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Holder shall deliver to the Issuer and the Agent at the time or times prescribed by law and at such time or times reasonably requested by the Issuer or the Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Issuer or the Agent as may be necessary for the Issuer and the Agent to comply with their obligations under FATCA and to determine that such Holder has complied with such Holder's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this <u>Section 2.14(f)</u>, "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

Each Holder agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Issuer and the Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Defined Term</u>. For purposes of this Section, the term "applicable law" includes FATCA.

**Section 2.15** <u>Alternate Rate of Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If prior to the commencement of any Interest Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Term SOFR Reference Rate for such Interest Period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Agent is advised by the Requisite Holders that Term SOFR Reference Rate for such Interest Period will not adequately and fairly reflect the cost to such Holders (or Holder) of its purchasing or maintaining their Notes (or its Note) for such Interest Period;

then the Agent shall give notice thereof to the Issuer and the Holders by written or electronic notice as promptly as practicable thereafter and, until the Agent notifies the Issuer and the Holders that the circumstances giving rise to such notice no longer exist, (A) any Notes requested to be issued and purchased on the first day of such Interest Period shall be issued and purchased as ABR Notes and (B) any outstanding Notes shall be converted, on the last day of the then-current Interest Period, to ABR Notes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any time (i) the Requisite Holders determine (which determination shall be conclusive and binding absent manifest error) that the circumstances set forth in <u>clause (a)</u> have arisen and such circumstances are unlikely to be temporary or (ii) the Requisite Holders determine (which determination shall be conclusive and binding absent manifest error) that the circumstances set forth in <u>clause (a)</u> have not arisen but either (w) the CME Term SOFR Administrator has made a public statement or published information that the CME Term SOFR Administrator has ceased or is insolvent (and there is no successor administrator that will continue publication of the Term SOFR Reference Rate), (x) the CME Term SOFR Administrator has made a public statement or has published information (or a public statement or information is published on its behalf) which states that Term SOFR Reference Rate will permanently or indefinitely cease to be published by it (and there is no successor administrator that will continue publication of the Term SOFR Reference Rate), (y) the supervisor for the CME Term SOFR Administrator, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the CME Term SOFR Administrator, a resolution authority with jurisdiction over the CME Term SOFR Administrator or a court or an entity with similar insolvency or resolution authority over the CME Term SOFR Administrator has made a public statement or has published information which states that the CME Term SOFR Administrator has ceased or is insolvent or the Term SOFR Reference Rate will permanently or indefinitely cease to be published or (z) the supervisor for CME Term SOFR Administrator or a Governmental Authority has made a public statement identifying or has published information which states that the Term SOFR Reference Rate is no longer representative or the Term SOFR Reference Rate may no longer be used for determining interest rates for notes or other comparable debt instruments, then the Requisite Holders and the Issuer (in consultation with the Agent) shall endeavor to establish an alternate rate of interest as a replacement to the Term SOFR Reference Rate that gives due consideration to the then prevailing or evolving market convention for determining a rate of interest for notes or other comparable debt instruments in the United States at such time and ensuring that Agent will be able to administer such alternate rate of interest, and the Requisite Holders, the Issuer and the Agent shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable; <u>provided</u> that the Requisite Holders and the Issuer shall use commercially reasonable efforts to ensure that such replacement meets the standards set forth under Section 1.1001-6 of the Proposed United States Treasury Regulations (or any successor Untied States Treasury Regulations or other official IRS guidance promulgated that supersedes such Proposed United States Treasury Regulations) so as not to be treated as a "modification" (and therefore an exchange) of any Notes for purposes of Section 1.1001-3 of the United States Treasury Regulations. For the avoidance of doubt, any minimum rate of interest applicable to the Term SOFR Reference Rate hereunder shall also apply to such alternate rate of interest unless otherwise agreed by the Requisite Holders. The Agent and Requisite Holders do not warrant or accept responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the rates in the definition of "Term SOFR Reference Rate" or with respect to any rate that is an alternative or replacement for or successor to any such rate (including, without limitation, any such alternate rate of interest established under this <u>Section 2.15(b)</u>, whether the composition or characteristics of any such alternative, successor or replacement interest rate will be similar to, or produce the same value or economic equivalence of, the existing interest rate being replaced or have the same volume or liquidity as did any existing interest rate prior to its discontinuance or unavailability) or the effect of any of the

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foregoing, or of any other related conforming changes to this Agreement. The Agent and Requisite Holders may select information sources or services in their reasonable discretion to ascertain any interest rate used in this Agreement, any component thereof, or rates referenced in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to the Issuer (and, in the case of Agent, any Holder) or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for selection of such source or service or for any error or calculation of any such rate (or component thereof) provided by any such information source or service. Until an alternate rate of interest shall be determined in accordance with this <u>clause (b)</u>, (x) any Notes requested to be issued and purchased shall be issued and purchased as ABR Notes and (y) any outstanding Notes shall be converted, on the last day of the then-current Interest Period, to ABR Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither Agent shall be under any obligation (i) to monitor, determine or verify the unavailability or cessation of the Term SOFR Rate (or other applicable benchmark rate), or whether or when there has occurred, or to give notice to any other transaction party of the occurrence of, any event or date on which the benchmark shall have transitioned or may no longer be available, (ii) to select, determine or designate any alternative, successor or replacement benchmark index, or whether any conditions to the designation of such a rate have been satisfied, (iii) to select, determine or designate any adjustment to the benchmark or the adjustment spread, or other modifier to any replacement or successor index or (iv) to determine whether or what changes are necessary or advisable, if any, in connection with any of the foregoing. Neither Agent shall be liable for any inability, failure or delay on its part to perform any of its duties set forth in this Agreement as a result of the unavailability of the Term SOFR Rate (or other applicable benchmark rate) and absence of a designated replacement benchmark rate, including as a result of any inability, delay, error or inaccuracy on the part of any other transaction party, including without limitation the Requisite Holders, in providing any direction, instruction, notice or information required or contemplated by the terms of this Agreement and reasonably required for the performance of such duties.

**Section 2.16** <u>Incremental Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms of <u>Section 2.16(b)</u>, the Issuer may from time to time request Incremental Commitments, <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Prior to implementing any new Incremental Commitments, the Issuer shall have provided a written notice to the Agent and the then-existing Holders (such notice, the "<u>Incremental Notes Notice</u>"), specifying the amount of Incremental Commitments being requested (the "<u>Incremental Target Amount</u>"), such amount not to exceed $100,000,000 in aggregate outstanding principal amount during the term of this Agreement (the "<u>Incremental Cap</u>") (it being understood that $100,000,000 of the Incremental Cap has been used by the Second Amendment Incremental Notes);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) following receipt of the Incremental Notes Notice, then-existing Holders at such time may, within thirty (30) days of receipt by the Agent and such Holders of the Incremental Notes Notice (the "<u>Offer Deadline</u>"), deliver to the Issuer a written offer to provide the Incremental Commitments (the "<u>Incremental Notes Offer</u>"; the Holders providing the Incremental Notes Offer, "<u>Electing Holders</u>"), subject to <u>Section 2.16(a)(vi)</u> and <u>Section 2.16(b)</u>, in accordance with the terms and procedures set forth in this <u>Section 2.16</u>, which Incremental Notes Offer shall detail the economic and other material terms of the proposed Incremental Notes, including principal amount, amortization, call protection, maturity date, pricing and any other such term deemed material by such then-existing Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) following receipt of the Incremental Notes Offer, the Issuer may, within five (5) Business Days of receipt of such Incremental Notes Offer, accept or decline such Incremental Notes Offer, subject to the terms and conditions contained herein (<u>provided</u>, that, if the Issuer does not respond to such Incremental Notes Offer within such five (5) Business Day period, the Issuer shall be deemed to have declined such Incremental Notes Offer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if the Issuer accepts such Incremental Notes Offer, then the Issuer and the Electing Holders shall use commercially reasonable efforts to consummate the transaction set forth in the Incremental Notes Offer in accordance with the terms thereof and this <u>Section 2.16</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any then-existing Holder at such time not responding to the Incremental Notes Notice prior to the Offer Deadline shall be deemed to have declined to provide Incremental Commitments and if any then-existing Holder declines to provide Incremental Commitments by an amount equal to such Holder's Pro Rata Share of such requested amount, any Holder electing to provide Incremental Commitments may elect to increase its Incremental Commitment by an amount equal to such then-existing Holder's Pro Rata Share of the aggregate declined portion of such requested increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) for the avoidance of doubt, the Issuer shall not be obligated to accept any Incremental Notes Offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Incremental Commitments and Incremental Notes shall be subject to the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate stated principal amount of such Incremental Notes ("<u>Incremental Indebtedness</u>") shall not exceed $35,000,000 and shall be in a minimum amount of $5,000,000 (<u>provided</u> that such amount may be less than $5,000,000 if such amount represents all remaining availability under the limit set forth in this <u>clause (i)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any such Incremental Indebtedness (A) shall rank pari passu in right of payment and security with, and have the benefit of the same or equivalent guarantees as, the Note Obligations in respect of the other Notes then outstanding, (B) for purposes of prepayments, shall be treated the same as the Initial Notes then outstanding, and (C) shall have the same terms as the Initial Notes then outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no Incremental Indebtedness shall have a final maturity date earlier than the then Maturity Date or a Weighted Average Life to Maturity shorter than the latest Weighted Average Life to Maturity of the Initial Notes then outstanding;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) as of the date of incurring such Incremental Indebtedness, after giving effect to the application of the proceeds thereof, the Note Parties and their respective Subsidiaries (on a consolidated basis) shall be Solvent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the satisfaction or waiver by the Holders providing such Incremental Indebtedness on or prior to the date of the incurrence of such Incremental Indebtedness of each of the conditions precedent set forth in <u>Section 3.02</u>.

**ARTICLE III.** 

**CONDITIONS PRECEDENT** 

**Section 3.01** <u>Closing Date</u>. The obligation of each Holder to purchase Notes on the Closing Date is subject to the satisfaction, or waiver in accordance with <u>Section 11.06</u>, of the following conditions on or before the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Note Documents</u>. Subject to <u>Section 6.19</u>, each Holder and the Agents shall have received sufficient copies of each Note Document executed and delivered by each Note Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organizational Documents; Incumbency</u>. Each Holder and Agent shall have received (i) sufficient copies of each Organizational Document of the Issuer, and of each other Note Party, certified as of a recent date by the appropriate Governmental Authority, for each Holder, each dated the Closing Date or a recent date prior thereto; (ii) signature and incumbency certificates of the officers of the Issuer and of each other Note Party executing the Note Documents; (iii) resolutions of the Board of Directors, the manager(s) or member(s) or similar Governing Body of the Issuer and of each other Note Party approving and authorizing the execution, delivery and performance of this Agreement, the other Note Documents to which it is a party, certified as of the Closing Date by a Responsible Officer as being in full force and effect without modification or amendment; and (iv) a good standing certificate for the Issuer and each other Note Party from the applicable Governmental Authority in such Person's jurisdiction of incorporation, organization or formation and in each jurisdiction in which such Person is qualified as a foreign corporation or other entity to do business, each dated a recent date prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Consents</u>. Each of the Issuer, each other Note Party and their Subsidiaries shall have obtained all authorizations, consents and permits from any Governmental Authority and all consents of other Persons, in each case that are necessary or reasonably deemed by Agent and the Requisite Holders to be advisable in connection with the Transactions and each of the foregoing shall be in full force and effect and in form and substance reasonably satisfactory to Agent and the Requisite Holders. All applicable waiting periods shall have expired without any action being taken or threatened by any competent authority that would restrain, prevent or otherwise impose adverse conditions on the Transactions and no action, request for stay, petition for review or rehearing, reconsideration, or appeal with respect to any of the foregoing shall be pending, and the time for any applicable agency to take action to set aside its consent on its own motion shall have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Purchase Date</u>. The date of purchase of the Notes shall be a Business Day.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Initial Reserve Report; Acquired Assets Reserve Report; Title to Oil and Gas Properties</u>. The Agent and the Requisite Holders shall have received (i) the Initial Reserve Report, (ii) the Acquired Assets Reserve Report and (iii) title information (including usual and customary title opinions, title reports and landman certificates in the Issuer's possession or generated by the Issuer for the Agent and Requisite Holders) setting forth the status of title to at least 90% of PV-10 of the Oil and Gas Properties in the Acquired Assets Reserve Report and the Initial Reserve Report, on a consolidated basis, consistent with usual and customary standards for the geographic regions in which such Oil and Gas Properties are located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Real Property Collateral</u>. Subject to <u>Section 6.19</u>, the Agents and the Requisite Holders shall have received a Mortgage encumbering each Mortgaged Property in favor of the Collateral Agent, duly executed and acknowledged by each Note Party that is the owner of or holder of any interest in such Mortgaged Property, and otherwise in form for recording in the recording office of each applicable jurisdiction where each such Mortgaged Property is deemed located and that will, when properly recorded (or when the applicable financing statements related thereto are properly filed or such other actions needed to perfect are taken) create a valid, perfected first priority security interest (after giving effect to Excepted Liens identified in <u>clauses</u> <u>(a)</u> through <u>(d)</u> and <u>(f)</u> of the definition thereof, but subject to the provisos at the end of such definition) on at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the Acquired Assets Reserve Report and the Initial Reserve Report, on a consolidated basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Personal Property Collateral</u>. In order to create in favor of the Collateral Agent, for the benefit of the Holders a valid, perfected first priority security interest in all personal property Collateral of the Note Parties, the Agents shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) evidence reasonably satisfactory to Agents and the Requisite Holders of the compliance by each Note Party with its respective obligations under the Collateral Documents to which it is party (including its obligation to deliver UCC financing statements, originals of securities, instruments and chattel paper); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) the results of a recent search, by a Person satisfactory to the Requisite Holders, of all effective UCC financing statements made with respect to any personal or mixed property of the Issuer and each Note Party in the applicable jurisdictions, together with copies of all such filings disclosed by such search that will not be terminated on the Closing Date and (B) UCC termination statements for filing in all applicable jurisdictions as may be necessary to terminate any effective UCC financing statements disclosed in such search that do not constitute Liens permitted under <u>Section 7.03</u> or Excepted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>[Reserved].</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Evidence of Insurance</u>. The Holders shall have received evidence satisfactory to them in their reasonable discretion that all insurance required to be maintained pursuant to <u>Section 6.06</u> is in full force and effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Evidence of Swap Agreements</u>. The Holders shall have received evidence satisfactory to them in their reasonable discretion that all Swap Agreements required to be maintained pursuant to <u>Section 6.20</u> are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Opinions of Counsel to Note Parties</u>. Agents and the Holders shall have received executed copies of the favorable written opinions of (i) Weil Gotshal & Manges LLP, counsel for the Issuer and the Note Parties and (ii) to the extent any Mortgages are delivered on the Closing Date, Steptoe & Johnson PLLC and Liskow & Lewis, APLC, as applicable, each as local counsel for the Issuer and the Note Parties, in each case dated as of the Closing Date and in form and substance reasonably satisfactory to the Agent and Requisite Holders (and the Issuer and each Note Party hereby instructs such counsel to deliver such opinions to Agents on behalf of the Holders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Expenses</u>. The Issuer shall have paid to Agents and the Holders all amounts (invoiced at least two (2) Business Days prior to the Closing Date (or such shorter time reasonably acceptable to the Issuer) with reasonable detail) required to be paid pursuant to <u>Section 11.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Solvency Certificate</u>. On the Closing Date, Agent shall have received a Solvency Certificate from a Financial Officer substantially in the form of <u>Exhibit E</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Closing Date Certificate</u>. The Issuer shall have delivered to Agent and the Holders an executed Closing Date Certificate, together with all attachments thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>No Material Adverse Effect</u>. Since December 31, 2023, no event, change or condition shall have occurred that has caused or could reasonably be expected to result in, either individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Funds Flow</u>. Agent shall have received at least one (1) Business Day prior to the Closing Date the Flow of Funds, in form and substance reasonably satisfactory to the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Initial Note Purchase Notice</u>. Agent shall have received a fully-executed Note Purchase Notice at least seven (7) Business Days prior to the Closing Date (or such earlier date as the Holders may agree in their sole discretion (by notice to the Agent)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Other Debt; Payoff of Existing Credit Facility</u>. (i) The Requisite Holders shall be satisfied that the Note Parties and their Subsidiaries have no outstanding Debt except for Debt permitted pursuant to <u>Section 7.02(b)</u> and the Note Parties shall not be in default with respect to such Debt and (ii) the Holders shall have received (A) a duly executed payoff letter, in form and substance reasonably satisfactory to Holders, with respect to the Existing Credit Facility which shall set forth the amount necessary to repay all Indebtedness and discharge all obligations, in each case, under the Existing Credit Facility and (B) evidence reasonably acceptable to the Holders that all Liens and guarantees under the Existing Credit Facility shall have been released

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(including, without limitation, the Holder's receipt of lien release documents and UCC termination statements in connection therewith) (or substantially concurrently with the funding of the Notes on the Closing Date shall be released).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Financial Statements</u>. The Holders shall have received an unaudited consolidated pro forma balance sheet of the Issuer and its Consolidated Subsidiaries as of the Closing Date (giving effect to the Transactions on the Closing Date) (collectively, the "**Initial Financial Statements**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Lease Operating Statements</u>. The Holders shall have received monthly production and accounting lease operating statements for each calendar month for each of the Fiscal Quarters ended after June 30, 2024 and at least forty-five (45) days prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Fees</u>. The Issuer shall have paid any other amounts owed under and as set forth in the Fee Letter and the Agent Fee Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>No Default or Event of Default; Representations and Warranties</u>. On the Closing Date after giving effect to the Transactions, (i) no Default or Event of Default shall have occurred and be continuing, and (ii) all representations and warranties made by the Note Parties contained herein or in the other Note Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the Closing Date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date and except that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Know Your Customer</u>. Agents and the Holders shall have received, at least five (5) Business Days (or such shorter period as the Agents may agree) prior to the Closing Date, all documentation and other information required by regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including, without limitation, the USA PATRIOT Act and, to the extent the Issuer qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to the Issuer, that has been reasonably requested by Holders in writing to the Issuer at least ten (10) Business Days prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Specified Acquisition Agreement</u>. The Agent and the Holders shall have received a certificate from a Financial Officer of the Issuer dated as of the Closing Date certifying (i) that attached thereto is a true and correct fully-executed copy of the Specified Acquisition Agreement (including all amendments, exhibits and schedules thereto) and (ii) the Specified Acquisition has been consummated in accordance with its terms substantially concurrently with the purchase of the Notes under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Unrestricted Cash</u>. As of the Closing Date, the Issuer and its Restricted Subsidiaries shall have Unrestricted Cash in an amount equal to or greater than $3,000,000.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Officer's Certificate</u>. The Issuer shall have delivered to Agent and the Holders a certificate of a Financial Officer of the Issuer certifying as to matters set forth in <u>Section 3.01(c)</u>, <u>Section 3.01(o)</u>, <u>Section 3.01(p)</u>, <u>Section 3.01(q)</u>, <u>Section 3.01(x)</u> and <u>Section 3.01(aa)</u>.

Agent (at the direction of the Requisite Holders) shall notify the Issuer and the Holders of the Closing Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Holders to purchase Notes hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to <u>Section 11.06</u>) at or prior to 5:00 p.m., New York, New York time, on September 17, 2024 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

Without limiting the generality of the provisions of <u>Section 10.03</u>, for purposes of determining compliance with the conditions specified in this <u>Section 3.01</u>, each Holder as of the Closing Date shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required hereunder to be consented to or approved by or acceptable or satisfactory to a Holder unless the Agent shall have received written notice from such Holder prior to the Closing Date specifying its objection thereto.

**ARTICLE IV.** 

**REPRESENTATIONS AND WARRANTIES** 

In order to induce the Agents and Holders to enter into this Agreement and induce the Holders to purchase their respective Notes, the Note Parties represent and warrant to the Agents and each Holder the following:

**Section 4.01** <u>Organization; Powers</u>. Each of the Note Parties and their Restricted Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority, and has all material governmental licenses, authorizations, consents and approvals necessary, to own its assets and to carry on its business as now conducted, and is qualified to do business in, and is in good standing (if applicable) in, every jurisdiction where such qualification is required by Governmental Requirement, except where failure to have such licenses, authorizations, consents, approvals or qualifications could not reasonably be expected to have a Material Adverse Effect.

**Section 4.02** <u>Authority; Enforceability</u>. The Transactions are within the Note Party's and each Restricted Subsidiary's corporate, limited liability company or partnership powers and have been duly authorized by all necessary corporate, limited liability company or partnership action, as applicable, and, if required, stockholder, member or manager action (including, without limitation, any action required to be taken by any class of directors or managers of the Note Parties or any other Person, whether interested or disinterested, in order to ensure the due authorization of the Transactions). Each Note Document to which each Note Party and each Restricted Subsidiary is a party has been duly executed and delivered by the Note Party and such Restricted Subsidiary and constitutes a legal, valid and binding obligation of the Note Party and such Restricted Subsidiary, as applicable, each enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

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**Section 4.04** <u>Financial Condition; No Material Adverse Effect</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Since the December 31, 2023, there has been no event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the Note Parties nor any Restricted Subsidiary has on the Closing Date any Material Debt (including Disqualified Capital Stock) or any contingent liabilities, off-balance sheet liabilities or partnerships, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments.

**Section 4.05** <u>Litigation</u>. There are no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Issuer, threatened in writing against the Note Parties or any Restricted Subsidiary which are not fully covered by insurance (except for customary deductibles) (i) which individually or in the aggregate, if adversely determined, could reasonably be expected to result in liability exceeding $2,500,000, or (ii) that involve any Note Document or the Transactions. None of the Note Parties or any of their Restricted Subsidiaries is in violation of any order, writ, injunction or any decree of any Governmental Authority which individually or in the aggregate, if adversely determined, could reasonably be expected to result in liability exceeding $2,500,000.

**Section 4.06** <u>Environmental Matters</u>. Except for such matters that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties and their Restricted Subsidiaries and each of their respective Properties and respective operations thereon are and have been in compliance with all applicable Environmental Laws; and none of the Note Parties and their Restricted Subsidiaries has received notice of, any conditions, events, or incidents in connection with any such Properties that would reasonably be expected to interfere with or prevent such compliance or continued compliance with Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties and their Restricted Subsidiaries have obtained all Environmental Permits required for their respective operations and respective ownership of their Properties, with all such Environmental Permits being currently in full force and effect, and none of Note Parties or their Restricted Subsidiaries has received any written notice or otherwise has knowledge that any such existing Environmental Permit will be revoked or that any application for any new Environmental Permit or renewal of any existing Environmental Permit will be protested or denied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no Environmental Claims or other claims, demands, suits, orders, inquiries or proceedings concerning any violation of, or liability (including as a potentially responsible party) under, any applicable Environmental Laws pending or, to the Issuer's knowledge, threatened against the Note Parties or any Subsidiary or, to the Issuer's knowledge, any of their respective Properties or as a result of any operations at such Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) None of the Properties of the Note Parties or any Restricted Subsidiary contain or have contained any: (i) underground storage tanks requiring permits under Environmental Law; (ii) asbestos-containing or radioactive materials requiring removal pursuant to Environmental Law; (iii) landfills or dumps requiring an Environmental Permit pursuant to Environmental Law; (iv) hazardous waste management units as defined pursuant to RCRA or any comparable state law or (v) sites on or nominated for the National Priority List promulgated pursuant to CERCLA or any state remedial priority list promulgated or published pursuant to any comparable state law and Note Parties any Restricted Subsidiary is in substantial compliance with all applicable financial responsibility requirements of all Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There has been no Release or, to the Issuer's knowledge, threatened Release of Hazardous Materials at, on, under or from the Note Parties' or any Restricted Subsidiary's Properties in violation of, or as could reasonably be expected to result in liability under, Environmental Law, there are no investigations, remediations, abatements, removals, or monitorings of Hazardous Materials required under applicable Environmental Laws at such Properties and, to the knowledge of the Issuer, none of such Properties are adversely affected by any Release or threatened Release of a Hazardous Material originating or emanating from any other real property, and no Issuer or Restricted Subsidiary has filed or failed to file, any notice required of such Persons under applicable Environmental Law related to a reportable Release of Hazardous Materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Neither the Issuer nor any Restricted Subsidiary has received any written notice asserting an alleged liability or obligation of the Note Parties or any Restricted Subsidiary under any applicable Environmental Laws with respect to the investigation, remediation, abatement, removal, or monitoring of any Hazardous Materials at, under, or Released or threatened to be Released from the Note Parties' or any Restricted Subsidiary's Properties or any real properties

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offsite the Issuer's or any Restricted Subsidiary's Properties, including a letter or request for information under Section 104(e) of CERCLA (42 U.S.C. § 9604) or any comparable state law, and, to the Issuer's knowledge, there are no conditions or circumstances that could reasonably be expected to result in the receipt of such written notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) There has been no exposure of any Person or Property to any Hazardous Materials as a result of or in connection with the operations and businesses of Note Parties or any Restricted Subsidiary, including at any of the Note Parties' or its Restricted Subsidiaries' Properties that could reasonably be expected to form the basis for a claim for damages or compensation for which the Note Parties or any Restricted Subsidiary would be liable under Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the Issuer's knowledge, there are no conditions or circumstances associated with any of the Note Parties' or any Restricted Subsidiary's currently or previously owned or leased real properties that could reasonably be expected to give rise to the imposition of any material liabilities under any Environmental Laws against any Note Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Note Parties and their Restricted Subsidiaries have made available to the Holders complete and correct copies of all environmental site assessment reports, investigations, studies, analyses, and correspondence on environmental matters (including matters relating to any alleged non-compliance with or liability under Environmental Laws) requested by the Agent that are in any of the Note Parties' or the Restricted Subsidiaries' possession or control and relating to their respective Properties or operations.

**Section 4.07** <u>Compliance with Laws and Agreements; No Defaults, Event of Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of Note Parties and each Restricted Subsidiary is in compliance with all Governmental Requirements applicable to it and its Property and all agreements and other instruments binding upon it or its Property, and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business as presently conducted in each case, except where such non-compliance would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Default or Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Material Contract is in full force and effect, and is valid, binding and enforceable upon any Note Party party thereto and, to the knowledge of the Note Parties, upon each of the other parties thereto in accordance with their respective terms, in each case subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. Each Note Party party thereto is in compliance in all material respects with such agreements. The Issuer has delivered or made available to the Agent true, correct and complete copies of each Material Contract (including all amendments, supplements or other modifications thereto) in effect and not previously delivered or made available to the Agent.

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**Section 4.08** <u>Investment Company Act</u>. None of the Note Parties nor any Restricted Subsidiary is required to be registered as an "investment company" under the Investment Company Act of 1940, as amended.

**Section 4.09** <u>Taxes</u>. Each of the Note Parties and their Restricted Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which the Note Parties or such Restricted Subsidiary, as applicable, has set aside on its books adequate reserves in accordance with GAAP or (b) to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Effect. No Tax Lien (other than Tax Liens that constitute Excepted Liens or Tax Liens whose existence would not reasonably be expected to result in a Material Adverse Effect) has been filed.

**Section 4.10** <u>ERISA</u>. Except for such matters that, individually or in the aggregate, could not reasonably be expected to have Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The applicable Note Parties, Restricted Subsidiaries and ERISA Affiliates have complied in all material respects with ERISA and, where applicable, the Internal Revenue Code regarding each Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Plan is, and has been, established and maintained in substantial compliance with its terms, ERISA and, where applicable, the Internal Revenue Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No act, omission or transaction has occurred with respect to a Plan which could reasonably be expected to result in imposition on the Note Parties, any Restricted Subsidiary or any ERISA Affiliate (whether directly or indirectly) of (i) either a civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502 of ERISA or a tax imposed pursuant to Chapter 43 of Subtitle D of the Internal Revenue Code or (ii) breach of fiduciary duty liability damages under Section 409 of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Full payment when due has been made of all amounts which the applicable Note Parties, Restricted Subsidiaries or ERISA Affiliates is required under the terms of each Plan or applicable law to have paid as contributions to such Plan as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Neither the Note Parties, the Restricted Subsidiaries nor any ERISA Affiliate sponsors, maintains, or contributes to an employee welfare benefit plan, as defined in Section 3(1) of ERISA that provides benefits to former employees of such entities and that may not be terminated by the Note Parties, a Restricted Subsidiary or any ERISA Affiliate in its sole discretion at any time without any material liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither the Note Parties, the Restricted Subsidiaries nor any ERISA Affiliate sponsors, maintains or contributes to, or has at any time in the six (6) year period preceding the Closing Date sponsored, maintained or contributed to, any employee pension benefit plan, as defined in Section 3(2) of ERISA, that is subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Internal Revenue Code.

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**Section 4.11** <u>Disclosure; No Material Misstatements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the other reports, financial statements, certificates or other information furnished by or on behalf of the Issuer or any Restricted Subsidiary to the Agent or any Holder or any of their Affiliates in connection with the negotiation of this Agreement or any other Note Document or delivered hereunder or under any other Note Document (as modified or supplemented by other information so furnished), taken as a whole, contains any untrue statement of material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading; <u>provided</u> that, with respect to projected financial information, the Issuer represents only that such information was prepared in good faith based upon assumptions believed by the Issuer to be reasonable at the time it being understood that (i) any such projected financial information is merely a prediction as to future events and its not to be viewed as fact, (ii) such projected financial information is subject to significant uncertainties and contingencies, many of which are beyond the control of the Issuer or any of its Subsidiaries and (iii) no assurance can be given that any particular projections will be realized and that actual results during the period or periods covered by any such projections may differ significantly from the projected results and such differences may be material. There are no statements or conclusions in any Reserve Report which are based upon or include materially misleading information or fail to take into account material information regarding the matters reported therein, it being understood that projections concerning volumes attributable to the Oil and Gas Properties of the Note Parties and their Restricted Subsidiaries and production and cost estimates contained in each Reserve Report are necessarily based upon professional opinions, estimates and projections and that the Note Parties and their Restricted Subsidiaries do not warrant that such opinions, estimates and projections will ultimately prove to have been accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the Closing Date, the information included in the Beneficial Ownership Certification is true and correct in all respects.

**Section 4.12** <u>Insurance</u>. The Note Parties have, and have caused all of their Restricted Subsidiaries to have (a) all insurance policies sufficient for the compliance by each of them with all material Governmental Requirements and all material agreements and (b) insurance coverage in at least amounts and against such risk (including, without limitation, public liability) that are customarily insured against by business entities similarly situated and engaged in the same or a similar business for the assets and operations of the Note Parties and their Restricted Subsidiaries. Such policies provide adequate coverage from reputable and financially sound insurance companies in amounts sufficient to insure the assets and risks of each of the Note Parties and their Restricted Subsidiaries in accordance with prudent business practice in the industry of the Note Parties and their Restricted Subsidiaries. No Note Party has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers at a comparable rate. The Collateral Agent has been named as additional insureds in respect of such liability insurance policies and the Collateral Agent has been named as lender loss payee and mortgagee with respect to property loss insurance. None of the Note Parties or their Restricted Subsidiaries owns

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or holds any Building (as defined in the applicable Flood Insurance Regulation) or Manufactured (Mobile) Home (as defined in the applicable Flood Insurance Regulation) constituting Collateral for which such Person has not delivered to the Agents evidence reasonably satisfactory to the Requisite Holders that (x) such Person maintains flood insurance for such Building or Manufactured (Mobile) Home or (y) such Building or Manufactured (Mobile) Home is not located in a Special Flood Hazard Area (it being understood that Agent will promptly provide any such information received by it to the Holders).

**Section 4.13** <u>Subsidiaries; Foreign Operations</u>. Except as set forth on <u>Schedule 4.13</u> or as disclosed in writing to the Agent (which shall promptly furnish a copy to the Holders), which shall be a supplement to <u>Schedule 4.13</u>, the Issuer has no Subsidiaries or Foreign Subsidiaries. <u>Schedule 4.13</u> identifies each Subsidiary as either a Restricted Subsidiary or Unrestricted Subsidiary. Each Subsidiary listed on <u>Schedule 4.13</u> is a Wholly-Owned Subsidiary. The Note Parties have no Foreign Subsidiaries and no Restricted Subsidiary owns any Oil and Gas Properties not located within the geographic boundaries of the United States of America and subject to the jurisdiction of the United States of America.

**Section 4.14** <u>Properties; Titles, Etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Note Parties and their Restricted Subsidiaries has good and defensible title (as used herein, such term has the meaning commonly ascribed thereto in the Oil and Gas Business) to the Oil and Gas Properties evaluated in the most recently delivered Reserve Report (except for those Oil and Gas Properties that have been disposed of since the date of such Reserve Report in accordance with this Agreement or leases which have expired in accordance with their terms) and valid title to all its material personal Properties, in each case, free and clear of all Liens except Liens permitted by <u>Section 7.03</u>. After giving full effect to the Excepted Liens, the Note Party or the Restricted Subsidiary specified as the owner owns the net interests in production attributable to the Hydrocarbon Interests as reflected in the most recently delivered Reserve Report (except for those Oil and Gas Properties that have been disposed of since the date of such Reserve Report in accordance with this Agreement or leases which have expired in accordance with their terms).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to any real Properties or personal Properties not subject of the preceding <u>clause (a)</u>, each of the Note Parties and their Restricted Subsidiaries have in all material respects (i) good and defensible title to, or valid leasehold or other interests in, its respective real Properties and (ii) good title to all of their personal Properties, in each case, free and clear of all Liens except Liens permitted by <u>Section 7.03</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as could not reasonably be expected to have a Material Adverse Effect, all leases and agreements necessary for the conduct of the business of the Note Parties and their Restricted Subsidiaries are valid and subsisting, in full force and effect, and there exists no default or event or circumstance which with the giving of notice or the passage of time or both would give rise to a default under any such lease or leases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The rights and Properties presently owned, leased or licensed by the Note Parties and their Restricted Subsidiaries including, without limitation, all easements and rights of way, if any, include all rights and Properties necessary to permit the Note Parties and their Restricted Subsidiaries to conduct their business in all material respects in the same manner as its business has been conducted prior to the Closing Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All of the Properties of the Note Parties and their Restricted Subsidiaries which are reasonably necessary for the operation of their businesses are in good working condition and are maintained in accordance with prudent business standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Note Parties and each Restricted Subsidiary owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by the Note Parties and such Restricted Subsidiary does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. The Note Parties and their Restricted Subsidiaries either own or have valid licenses or other rights to use all databases, geological data, geophysical data, engineering data, seismic data, maps, interpretations and other technical information used in their businesses as presently conducted, subject to the limitations contained in the agreements governing the use of the same, with such exceptions as could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No eminent domain proceeding or taking has been commenced or, to the knowledge of any of the Issuer or any of its Subsidiaries, is contemplated with respect to all or any portion of the Property, except to the extent that such proceeding or taking has been previously disclosed by the Issuer in writing to the Agent pursuant to <u>Section 6.02(b).</u>

**Section 4.15** <u>[Reserved]</u>.

**Section 4.16** <u>No Operations</u>. The Note Parties and their Restricted Subsidiaries (a) do not take Hydrocarbons attributable or allocable to their Oil and Gas Properties, in kind, and (b) do not engage in any material operating activities with respect to their Oil and Gas Properties

**Section 4.17** <u>[Reserved]</u>

**Section 4.18** <u>Swap Agreements and Qualified ECP Guarantor</u>. <u>Schedule 4.18</u>, as of the Closing Date, and thereafter included in the most recently delivered report required to be delivered by the Issuer pursuant to <u>Section 6.01(e)</u>, as of the date thereof, sets forth, a true and complete list of all Swap Agreements of the Note Parties and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark to market value thereof, all credit support agreements relating thereto (including any margin required or supplied) and the counterparty to each such agreement. The Note Parties are each a Qualified ECP Guarantor.

**Section 4.19** <u>Use of Proceeds</u>. The proceeds of the Notes shall be used for the purposes set forth in <u>Section 2.04</u>. The Note Parties and their Restricted Subsidiaries are not engaged principally, or as one of its or their important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). No part of the proceeds of any Note will be used for any purpose which violates the provisions of Regulations T, U or X of the Board.

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**Section 4.20** <u>Solvency</u>. Immediately after giving effect to the Transactions, the Note Parties and their Subsidiaries (on a consolidated basis) are Solvent.

**Section 4.21** <u>Anti-Corruption Laws, Sanctions and USA PATRIOT Act</u>. Each Note Party has implemented and maintains in effect policies and procedures reasonably designed to promote compliance by the Note Parties and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Note Parties and, to the knowledge of the Note Parties, their respective officers, directors, employees and agents are in compliance with the USA PATRIOT Act, Anti-Corruption Laws and applicable Sanctions. None of (a) the Note Parties or any of their respective directors, officers or employees, or (b) to the Issuer's knowledge, any agent of the Note Parties that will act in any capacity in connection with or benefit from the proceeds of the Notes, is (i) a Sanctioned Person, or (ii) engaged in any activity that would reasonably be expected to result in any Note Party being designated a Sanctioned Person. No direct use of proceeds of the Notes or other transaction by the Note Parties contemplated by this Agreement will unlawfully violate any Anti-Corruption Law or applicable Sanctions.

**Section 4.22** <u>Affected Financial Institutions</u>. No Note Party is an Affected Financial Institution.

**Section 4.23** <u>Collateral Documents</u>. The Collateral Documents are effective to create in favor of the Collateral Agent, for the benefit of the Secured Parties, a legal, valid and enforceable security interest in the Collateral and proceeds thereof, subject, in the case of enforceability, to applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally and to general principles of equity and principles of good faith and fair dealing. The Obligations are and shall be at all times secured by legal, valid and enforceable, and upon recordation shall be, perfected first priority Liens in favor of the Collateral Agent, covering and encumbering the Collateral (subject only to permitted Liens under <u>Section 7.03</u>).

**Section 4.24** <u>Senior Debt</u>. The Obligations shall constitute senior indebtedness of the Note Parties under and as defined in any documentation documenting any junior indebtedness of the Note Parties.

**Section 4.25** <u>Private Offering</u>. Neither the Note Parties nor anyone acting on their behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other than the Holders, each of which has been offered the Notes at a private sale for investment. Neither the Note Parties nor anyone acting on their behalf has (a) solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Notes by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D of the Securities Act, or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act, or (b) taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.

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**ARTICLE V.** 

**REPRESENTATIONS OF HOLDERS** 

In order to induce Issuer to issue and sell the Notes to the Holders, each Holder hereby represents and warrants to Issuer, on the Closing Date and acknowledges as follows:

**Section 5.01** <u>Organization and Standing</u>. Such Holder is a corporation or other entity duly incorporated or formed and validly existing under the laws of the jurisdiction of its incorporation or formation.

**Section 5.02** <u>Authorization; Enforceability</u>. Such Holder has the full power and authority to enter into this Agreement, and (assuming due execution by the other parties hereto) this Agreement constitutes its valid and legally binding obligation, enforceable against it in accordance with its terms, except to the extent the enforceability thereof may be limited by (a) the effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other similar laws affecting creditors' rights generally, (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (c) implied covenants of good faith and fair dealing.

**Section 5.03** <u>Investment</u>. Such Holder is acquiring each such Note solely for its own account, for investment purposes, with no intention of distributing or reselling such Note in any public offering or in any transaction that would be in violation of applicable securities laws of the United States or any other applicable jurisdiction or any state or province thereof, without prejudice, however, to such Holder's right at all times to sell or otherwise dispose of all or any part of the Notes under an effective registration statement under the Securities Act and applicable state securities or "blue sky" laws (it being understood that Issuer has no obligation or intention to undertake any such registration), or an exemption from such registration requirements and in compliance with applicable securities laws. Such Holder has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Notes by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D of the Securities Act, or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act.

**Section 5.04** <u>Accredited Investor</u>. Such Holder, at the time that it committed to enter into this Agreement was, and now is, an "accredited investor" as that term is defined in Rule 501 of Regulation D under the Securities Act.

**Section 5.05** <u>No Resale or Repurchase</u>. No person has made to such Holder any written or oral representations (a) that any person will resell or repurchase the Notes (except in accordance with the Organizational Documents of Issuer), (b) that any person will refund the purchase price of the Notes, or (c) as to the future price or value of the Notes.

**Section 5.06** <u>Private Placement</u>. Such Holder understands that the Notes are being offered for sale only on a "private placement" basis and that the sale and delivery of the Notes is conditional upon such sale being exempt from the requirements as to the filing of a prospectus or registration statement or delivery of an offering memorandum or upon the issuance of such orders, consents or approvals as may be required to permit such sale without the requirement of

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filing a prospectus or delivering an offering memorandum and, as a consequence, (a) such Holder is restricted from using most of the civil remedies available under applicable securities legislation, (b) such Holder may not receive information that would otherwise be required to be provided to it under applicable securities legislation, and (c) Issuer is relieved from certain obligations that would otherwise apply under applicable securities legislation.

**Section 5.07** <u>Knowledge and Experience</u>. Without limiting the force and effect of the representations and warranties of any party to a Note Document, such Holder (a) has such knowledge and experience in financial and business matters, as to enable it to evaluate the merits and risks of entering into this Agreement and receiving the Notes, (b) is able to bear the economic risk of the transaction, (c) is able to hold its interest indefinitely unless a subsequent disposition thereof is registered under the Securities Act or is exempt from registration and is completed in compliance with applicable securities laws, (d) has been independently advised as to restrictions with respect to trading in the Notes imposed by applicable securities laws, (e) confirms that no representation (written or oral) has been made to it (with respect to trading restrictions imposed by applicable securities laws) by or on behalf of Issuer or Agent with respect thereto, (f) has conducted its own investigation of the Issuer and the terms of the Note, (g) (i) confirms it has had access to information as it deemed necessary to make its decision to purchase the Notes, and (ii) has been offered the opportunity to ask questions of the Issuer and receive answers thereto, as it deemed necessary in connection with the decision to purchase the Notes and (h) acknowledges that it is aware of the characteristics of the Notes, and the risks relating to an investment therein.

**Section 5.08** <u>No Materials</u>. Without limiting the representations and warranties set forth in the Note Documents, such Holder has not received or been provided with, nor has it requested, nor does it have any need to receive, any offering memorandum, any prospectus, sales or advertising literature describing or purporting to describe the business and affairs of Issuer which has been prepared for delivery to, and review by, prospective purchasers in order to assist them in making an investment decision in respect of the Notes.

**Section 5.09** <u>Transfer Restrictions</u>. Such Holder acknowledges and agrees that none of the Notes has been registered under the Securities Act or the securities laws of any country or state, and none of them may be sold or otherwise transferred in the absence of an effective registration thereunder unless an exemption from registration is available. Such Holder also acknowledges and agrees that the Notes are subject to resale restrictions in the United States, may be subject to resale restrictions in jurisdictions other than the United States under applicable securities laws, and that any sale or transfer will be completed in compliance with applicable securities laws.

**Section 5.10** <u>Offers and Sales Only in Certain Circumstances</u>. If such Holder decides to offer, sell, pledge or otherwise transfer any of the Notes, it will not offer, sell, pledge or otherwise transfer any of such Notes, directly or indirectly, unless: (a) the sale is made pursuant to registration of the Notes under the Securities Act; (b) the sale is made to the Issuer in accordance with <u>Section 2.09(g)</u>; (c) the sale is made outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S under the Securities Act and in compliance with applicable local securities laws and regulations; (d) the sale is made pursuant to the exemption from the registration requirements of the Securities Act provided by Rule 144 or

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Rule 144A thereunder, if available, and, in either case, in accordance with any applicable state securities or "blue sky" laws; or (e) the Notes are sold in any other transaction that does not require registration under the Securities Act or any applicable state securities or "blue sky" laws.

**Section 5.11** <u>Subsequent Purchaser Notification</u>. Such Holder will take reasonable steps to inform, and cause each of its Affiliates and Related Funds that is a U.S. person (as defined in Section 902 of Regulation S under the Securities Act) to take reasonable steps to inform, any person acquiring Notes from such Holder, Affiliate or Related Fund, as the case may be, in the United States that the Notes (a) have not been and will not be registered under the Securities Act, (b) are being sold to them without registration under the Securities Act in reliance on Rule 144A or in accordance with another exemption from registration under the Securities Act and (c) may not be offered, sold or otherwise transferred except (i) to the Issuer in accordance with <u>Section 2.09(g)</u>, (ii) outside the United States in accordance with Regulation S and in compliance with applicable local securities laws and regulations or (iii) inside the United States in accordance with (A) Rule 144A to a person whom the seller reasonably believes is a qualified institutional buyer, as defined in Rule 144A ("**Qualified Institutional Buyer**") that is purchasing such Notes for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that the offer, sale or transfer is being made in reliance on Rule 144A or (B) pursuant to another available exemption from registration under the Securities Act.

**ARTICLE VI.** 

**AFFIRMATIVE COVENANTS** 

Commencing on the Closing Date and until Payment in Full, each of the Note Parties covenants and agrees with the Holders and Agents that:

**Section 6.01** <u>Financial Statements; Other Information</u>. The Issuer will furnish to the Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Annual Financial Statements</u>. Not later than ninety–five (95) days after the end of each Fiscal Year of the Issuer, its audited consolidated balance sheet and related statements of operations, members' equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all reported on by independent public accountants of recognized national standing (without a "going concern" or like qualification or exception and without any qualification, exception or explanatory paragraph as to the scope of such audit other than (x) a "going concern" or other qualification that results solely from the Maturity Date being scheduled to occur within one year from the time such opinion is delivered or (y) from any potential inability to satisfy any covenant in <u>Section 7.01</u> on a future date or in a future period), without qualification as to scope of audit to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Issuer and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Quarterly Financial Statements</u>. Not later than sixty-five (65) days after the end of each of the first three (3) Fiscal Quarters of each Fiscal Year (commencing with September 30, 2024) of the Issuer for each Fiscal Quarter ending thereafter, its consolidated balance sheet and related statements of operations, members' equity and cash flows as of the end of and for such

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Fiscal Quarter and the then elapsed portion of the Fiscal Year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous Fiscal Year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Issuer and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificate of Financial Officer – Compliance</u>. Concurrently with any delivery of financial statements under <u>Sections 6.01(a)</u> or <u>6.01(b)</u>, a certificate of a Financial Officer in substantially the form of <u>Exhibit D</u> hereto (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with <u>Section 7.01</u> (including setting forth the Issuer's reasonably detailed and certified calculations of the Consolidated Total Net Leverage Ratio and the Asset Coverage Ratio and demonstrating compliance with the applicable financial covenant requirement), (iii) setting forth any change in the legal name of the Note Parties that occurred (if any) during the applicable fiscal period, and (iv) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in <u>Section 4.04</u> and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certificate of Financial Officer – Swap Agreements</u>. Concurrently with any delivery of financial statements under <u>Sections 6.01(a)</u> and <u>6.01(b)</u>, a certificate of a Financial Officer, in form satisfactory to the Agent and the Requisite Holders, setting forth as of a recent date, a true and complete list of all Swap Agreements of the Issuer and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark-to-market value therefor (to the extent available), any new credit support agreements relating thereto not listed on <u>Schedule 4.18</u>, any margin required or supplied under any credit support document, and the counterparty to each such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Projections</u>. Concurrently with any delivery of financial statements under <u>Sections 6.01(a)</u>, a reasonably detailed consolidated budget for the then-current fiscal year (including a projected consolidated balance sheet of the Issuer and its Subsidiaries as of the end of such fiscal year, the related quarterly consolidated statements of projected cash flow, capital expenditures and income and a summary of the material underlying assumptions applicable thereto) (collectively, the "**Projections**"), which Projections shall have been prepared in good faith on the basis of the assumptions stated therein, which assumptions were believed to be reasonable at the time of preparation of such Projections, it being recognized by the Agent and the Holders that such Projections are as to future events and are not to be viewed as facts, the Projections are subject to significant uncertainties and contingencies, many of which are beyond the control of the Issuer and the Subsidiaries, that no assurance can be given that any particular Projections will be realized and that actual results during the period or periods covered by any such Projections may differ from the projected results and such differences may be material.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Certificate of Insurer – Insurance Coverage</u>. Concurrently with any delivery of financial statements under <u>Section 6.01(a)</u>, a certificate of a Responsible Officer of the Issuer, certifying that (i) the insurance requirements of <u>Section 6.06</u> have been implemented and are being complied with, (ii) the Note Parties have paid or caused to be paid all insurance premiums then due and payable and (iii) the Note Parties are in compliance with the insurance policies, and attaching each certificate of insurance required pursuant to <u>Section 6.06</u>, and, if requested by the Agent or any Holder, all copies of the applicable policies and endorsements to the extent not previously delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Other Accounting Reports</u>. Promptly upon receipt thereof, a copy of each other report or letter submitted to the Note Parties or any of their Subsidiaries by independent accountants (other than customary and standard correspondence) in connection with any annual, interim or special audit made by them of the books of the Note Parties or any such Subsidiary, and a copy of any response by the Note Parties or any such Subsidiary, or the Board of Directors (or comparable Governing Body) of the Note Parties or any such Subsidiary, to such letter or report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Lists of Purchasers</u>. To the extent the Note Parties take any material amount of Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, concurrently with the delivery of any Reserve Report, a list of all Persons purchasing Hydrocarbons from the Note Parties or any Restricted Subsidiary with respect to which such in-kind deliveries are taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Notice of Sales of Oil and Gas Properties and Termination of Swap Agreements</u>. In the event the Note Parties or any Subsidiary intends to sell, transfer, assign or otherwise dispose of (including pursuant to a Casualty Event) any Oil and Gas Properties (other than Hydrocarbons in the ordinary course of business) or any Equity Interests in any Subsidiary in accordance with <u>Section 7.09(d)</u>, in each case, in an aggregate amount in excess of $500,000, at least three (3) Business Days' (or such shorter time as the Requisite Holders may agree in their sole discretion) prior written notice of such disposition prior to consummation of such disposition (other than with respect to pursuant to a Casualty Event), including the price thereof and any other details thereof reasonably requested by the Requisite Holders. In the event that the Note Parties or any Subsidiary receives any notice of early termination of any material Swap Agreement to which it is a party from any of its counterparties, or any material Swap Agreement to which the Note Parties or any Subsidiary is a party is terminated, prompt written notice of the receipt of such early termination notice or such termination, as the case may be, together with a reasonably detailed description thereof and any other details thereof reasonably requested by the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Information Regarding Issuer and Guarantors</u>. Prompt written notice (and in any event within five (5) Business Days thereafter, or such later date as the Requisite Holders may agree in their sole discretion) of any change (i) in the Issuer's or any Guarantor's organizational name, (ii) in the location of the Issuer's or any Guarantor's chief executive office or principal place of business, (iii) in the Issuer's or any Guarantor's identity or organizational structure or in the jurisdiction in which such Person is incorporated or formed, (iv) in the Issuer's or any Guarantor's organizational identification number in such jurisdiction of organization, and (v) in the Issuer's or any Guarantor's federal taxpayer identification number.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Notices of Certain Changes</u>. Promptly, but in any event within five (5) Business Days after the execution thereof (or such later date as the Requisite Holders may agree in their sole discretion), copies of any material amendment, modification or supplement to the certificate or articles of incorporation or formation, bylaws, certificate or articles of organization, regulations or limited liability company agreement, any preferred stock designation or any other Organizational Document of the Note Parties or any Restricted Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>SEC and Other Filings</u>. Promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed by the Note Parties or any Restricted Subsidiary with the SEC, or with any national securities exchange. Notwithstanding the foregoing, the Issuer shall in no event be required to deliver to, or otherwise provide or disclose to, any Holder any information for which the Issuer is requesting (assuming such request has not been denied), or has received, confidential treatment from the Commission, or any correspondence with the SEC. Any such document or report that the Issuer files with the SEC via the SEC's EDGAR system (or any successor thereto) shall be deemed to be delivered to the Holder for purposes of this Section 6.01(m) at the time such documents are filed via the EDGAR system (or such successor).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Beneficial Ownership Certification</u>. Promptly, but in no event later than five (5) Business Days of the occurrence of such change, written notice of any change in the information provided in the Beneficial Ownership Certification delivered to any Holder that would result in a change to the list of beneficial owners identified in such certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Free Cash Flow; Lease Operating Statements</u>. Not later than each "Applicable Updated LOS/CF Delivery Date" as set forth in <u>Appendix C</u>, commencing on April 20, 2025 (such certificate delivered on April 20, 2025, the "**First Amendment LOS/CF Certificate**"), deliver (i) a certificate of a Responsible Officer in substantially the form of <u>Exhibit K</u> setting forth reasonably detailed calculations of (A) (i) for each certificate delivered after the First Amendment LOS/CF Certificate, Free Cash Flow (Back) and (ii) Free Cash Flow (Forward), in each case for the related "Applicable CF Period" set forth in <u>Appendix C</u>, (B) Projected Cash Flow From Operating Activities for the then current "Applicable CF Period" and a summary of the material underlying assumptions applicable thereto, which Projected Cash Flow From Operating Activities shall have been prepared in good faith on the basis of the assumptions stated therein, (C) for each certificate delivered after the First Amendment LOS/CF Certificate, any Prior Period Adjustments, and (D) for each certificate delivered after the First Amendment LOS/CF Certificate, any other components of Free Cash Flow (Back) and Free Cash Flow (Forward) realized as of the date of the certificate, (ii) lease operating statements for the most recently ended fiscal quarter in form and detail substantially consistent with the lease operating statements delivered to Holders pursuant to <u>Section 3.01(v)</u> for each such fiscal quarter from the Oil and Gas Properties and other information reasonably requested by the Requisite Holders with reasonable advance notice (and which includes the volume of production and sales attributable to production (and the prices at which such sales were made and the revenues derived from such sales) for each such fiscal quarter from the Oil and Gas Properties, and sets forth the related ad valorem, severance and production taxes (if applicable), capital expenditures and lease operating expenses attributable thereto and incurred for each such fiscal quarter), in each case for this <u>Section 6.01(o)(ii)</u> certified by a Responsible Officer of the Issuer as presenting fairly in all material respects the information contained therein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Free Cash Flow Utilizations.</u> In the event the Issuer or any Restricted Subsidiary intends to effect a Free Cash Flow Utilization, at least three (3) Business Days' (or such later date as the Requisite Holders may agree in their sole discretion) prior to such intended Free Cash Flow Utilization, deliver a certificate of a Responsible Officer in substantially the form of <u>Exhibit K</u> hereto setting forth reasonably detailed calculations of Distributable Free Cash Flow (after giving effect to such Free Cash Flow Utilization) for the "Applicable CF Period" set forth in <u>Appendix C</u> applicable to the calendar month during which such Free Cash Flow Utilization is proposed to be made (i.e., the applicable "Distribution Month" set forth in <u>Appendix C</u>). The calculations of Distributable Free Cash Flow shall use the Projected Cash Flow From Operating Activities reflected in the most recently delivered LOS/CF Certificate and will use other components of Free Cash Flow (Back) and Free Cash Flow (Forward) to the extent they have been realized prior to the date of the certificate of a Responsible Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Environmental, Social and Governance Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon notice from an operator of a Material Environmental and Social Incident occurs, (A) reasonably prompt notification, but in any event within fifteen (15) Business Days, of such Material Environmental and Social Incident, (B) concurrently deliver a brief statement of the remedial plan such operator has undertaken or plans to undertake to address such Material Environmental and Social Incident and (C) reasonably prompt notification, but in any event within fifteen (15) Business Days, of the completion of such remedial plan or the abandonment thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within sixty (60) days of request by the Requisite Holders, no more than once in any 12-month period, (A) a materially completed environmental, social and governance survey (an "**ESG Survey**") provided to the Issuer by the Requisite Holders in the form substantially consistent with the ESG Survey template provided by the Holders to the Issuer on August 20, 2024, but with the Issuer's previous year's responses updated by the Issuer, as applicable and (B) host a conference call or teleconference at a time mutually acceptable to the Issuer and the Requisite Holders to discuss the emissions and climate related policies and activities of the Issuer and its Restricted Subsidiaries and matters relating to the ESG Survey; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) reasonably promptly following request, any additional material information related to environmental, social and governance matters of the Issuer as the Agent or the Requisite Holders may reasonably request from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Other Requested Information</u>. Promptly following any request therefor, (i) such other information regarding the operations, business affairs and financial condition of the Note Parties or any Subsidiary (including, without limitation, any Plan sponsored by the Issuer or a Restricted Subsidiary and any reports or other information required to be filed with respect thereto under the Internal Revenue Code or under ERISA), or compliance with the terms of this Agreement or any other Note Document, as the Agent or any Holder may reasonably request; or (ii) information and documentation reasonably requested by the Agents or any Holder for purposes of compliance with applicable "know your customer" requirements under the USA PATRIOT Act, other applicable anti-money laundering laws or the Beneficial Ownership Regulation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Material Contract Information</u>. Concurrently with any delivery of financial statements under <u>Section 6.01(a)</u> or <u>Section 6.01(b)</u>, copies of any material amendments, modifications, consents and waivers to, and termination (including rejections) and assignment of, any Material Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Regulatory Notices</u>. Promptly, but in any event within ten (10) Business Days (or such longer period as the Requisite Holders may agree to in their sole discretion) after receipt thereof by the Note Parties or any Subsidiary, a copy of any material notice, summons, citation, proceeding or order received from any Governmental Authority concerning the regulation of the Properties of the Note Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Consolidated Total Net Leverage Ratio; Asset Coverage Ratio</u>. No later than three (3) (or with respect to a Material Disposition, five (5)) Business Days prior to the consummation of any event or transaction that requires the calculation of, and compliance with, a Consolidated Total Net Leverage Ratio and/or an Asset Coverage Ratio, in each case on a Distribution PF Basis, (i) a certificate of a Responsible Officer of the Issuer (A) with respect to the Consolidated Total Net Leverage Ratio, (I) setting forth the Issuer's reasonably detailed and certified calculations of such Consolidated Total Net Leverage Ratio on a Distribution PF Basis and demonstrating compliance with the applicable Consolidated Total Net Leverage Ratio requirement and (II) certifying that the information set forth in the updated lease operating statement referenced in <u>Section 6.01(u)(ii)(A)</u> is true and correct and (B) with respect to the Asset Coverage Ratio, (I) setting forth the Issuer's reasonably detailed and certified calculations of such Asset Coverage Ratio on a Distribution PF Basis and demonstrating compliance with the applicable Asset Coverage Ratio requirement and (II) certifying that information set forth in the updated reserve database referenced in <u>Section 6.01(u)(ii)(B)</u> is true and correct, it being understood by the Agent and the Holders that projections concerning volumes and production and cost estimates contained therein are necessarily based upon opinions, estimates and projections and that neither the Issuer nor such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate and (ii) with respect to the Asset Coverage Ratio tested (A) in connection with a Material Disposition, an updated reserve database with respect to the Oil and Gas Properties of the Issuer and its Restricted Subsidiaries, giving effect to and reflecting such event or transaction and any other items necessary to be taken into account in accordance with the definition of Distribution PF Basis and <u>Section 1.05</u>, including any Specified Reserve Updates, that is in form and detail substantially consistent with the reserve database used in connection with the preparation of each internally prepared Reserve Report delivered pursuant to <u>Section 6.11</u>, including setting for current production figures and estimates with respect to such Oil and Gas Properties as of the date of delivery and (B) otherwise, an updated reserve database with respect to the Oil and Gas Properties of the Issuer and its Restricted Subsidiaries giving effect to the updated Strip Price as set forth in <u>Section 1.05(c)</u>. Any such certificate of a Responsible Officer of the Issuer delivered in accordance with this <u>Section 6.01(u)</u> shall set forth the amount of any Distribution PF Basis adjustment to the extent not set forth in a previously delivered certificate, or any change in the amount of a Distribution PF Basis adjustment set forth in a previously delivered certificate and, in either case, in reasonable detail together with the calculations and basis therefor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>WH Depositor Reporting</u>. On the first Business Day and tenth (10th) Business Day of each calendar month, each WH Depositor shall provide a certificate of a Financial Officer of such WH Depositor setting forth (i) the Dollar amount of any capital contributions actually received by such WH Depositor pursuant to a DST Sell-Down, (ii)(A) the amount of available cash distributed in accordance with Section 7.2 (or a section substantially similar to Section 7.2 of the Initial Trust Agreement) of the applicable Trust Agreement and (B) the Dollar amount of such available cash actually received by such WH Depositor and (iii) the amount of cash invested by a WH Depositor into the applicable WH DST as a result of any Investment made pursuant to <u>Section 7.05(n)</u>, in the case of each of <u>clauses (i)</u>, <u>(ii)(A)</u>, <u>(ii)(B)</u> and <u>(iii)</u> above since the date of the last certificate of a Fiscal Officer of such WH Depositor delivered pursuant to this <u>Section 6.01(v)</u> and together with reasonably detailed calculations thereof.

**Section 6.02** <u>Notices of Material Events</u>. Promptly (and in any event within three (3) Business Days) after a Responsible Officer of the Issuer or any Subsidiary obtains knowledge thereof, the Issuer will furnish to the Agent (which shall make such information available to the Holders) written notice of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the occurrence of any Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the filing or commencement of, or the threat in writing of, any action, suit, proceeding, investigation or arbitration by or before any arbitrator or Governmental Authority against or affecting the Note Parties or any Restricted Subsidiary not previously disclosed in writing to the Holders or any material adverse development in any action, suit, proceeding, investigation or arbitration (whether or not previously disclosed to the Holders) that, in either case, if adversely determined, could reasonably be expected to result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the occurrence of any ERISA Event that results in, or could reasonably be expected to result in, a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.

Each notice delivered under this <u>Section 6.02</u> shall be accompanied by a statement of a Responsible Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

**Section 6.03** <u>Existence; Conduct of Business</u>. The Note Parties will, and will cause each Restricted Subsidiary to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence in a jurisdiction of the United States and the rights, licenses, permits, privileges and franchises material to the conduct of its business and maintain, if necessary, its qualification to do business in each other jurisdiction in which its Properties are located or the ownership of its Properties requires such qualification, except where the failure to so qualify could not reasonably be expected to have a Material Adverse Effect.

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**Section 6.04** <u>Payment of Taxes</u>. The Note Parties will, and will cause each Restricted Subsidiary to, pay all Tax liabilities of the Note Parties and all of their Restricted Subsidiaries before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings and the Note Parties or such Restricted Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) the failure to make payment could not reasonably be expected to result in a Material Adverse Effect.

**Section 6.05** <u>[Reserved]</u>

**Section 6.06** <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will, and will cause each Restricted Subsidiary to, maintain, with financially sound and reputable insurance companies (at the time the relevant coverage is placed or renewed), insurance (i) in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses and (ii) in accordance with all Governmental Requirements. The loss payable clauses or provisions in said insurance policy or policies insuring any of the Collateral for the Obligations shall be endorsed in favor of and made payable to the Agents as its interests may appear and such policies shall name the Agents and the Holders as "additional insureds" (and mortgagee, if applicable) and Agents as lender loss payee and provide that the insurer will endeavor to give at least thirty (30) days' prior notice of any cancellation to the Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will notify the Agents and the Requisite Holders promptly whenever any separate insurance concurrent in form or contributing in the event of loss with that required to be maintained under this <u>Section 6.06</u> is, to the actual knowledge of the Note Parties or a Restricted Subsidiary thereof, taken out by the Note Parties or such Restricted Subsidiary thereof; and promptly deliver to the Agents a duplicate original copy of such policy or policies to the extent available to such Person.

**Section 6.07** <u>Books and Records; Inspection Rights</u>. The Note Parties will, and will cause each Restricted Subsidiary to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Issuer will, and will cause each Restricted Subsidiary to, permit any representatives designated by the Agent or any Holder, upon reasonable prior notice, to visit and inspect its Properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested; <u>provided</u> that so long as no Event of Default has occurred and is continuing, the Note Parties and their Restricted Subsidiaries shall not be required to reimburse the Agent or any Holder for more than one (1) inspection during any Fiscal Year.

**Section 6.08** <u>Compliance with Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will, and will cause each Restricted Subsidiary to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its Property and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business, except where such non-compliance would not reasonably be expected to result in a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will, and will cause each of their Subsidiaries to, maintain in effect and enforce such policies and procedures reasonably designed to promote compliance by the Note Parties and their Subsidiaries and each of their respective directors, officers, employees and agents with Anti-Corruption Laws, applicable Sanctions and the USA PATRIOT Act.

**Section 6.09** <u>Environmental Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties shall: (i) comply, and shall cause its Properties and operations and each Restricted Subsidiary and each Restricted Subsidiary's Properties and operations to comply, with all applicable Environmental Laws, except where the failure to so comply could not be reasonably expected to have a Material Adverse Effect; (ii) handle, store, and prevent any Release or threatened Release of, and shall cause each Restricted Subsidiary to handle, store and prevent any Release or threatened Release of, any Hazardous Material on, under, about or from any of the Note Parties' or their Restricted Subsidiaries' Properties or any other property offsite the Property to the extent caused by the Note Parties' or any of their Restricted Subsidiaries' operations in compliance with applicable Environmental Laws, except in each case, where the failure to do so could not reasonably be expected to have a Material Adverse Effect; (iii) timely obtain or file, and shall cause each Restricted Subsidiary to timely obtain or file, all Environmental Permits, if any, required under applicable Environmental Laws to be obtained or filed in connection with its operation or use of the Note Parties' or their Restricted Subsidiaries' Properties, except, in each case, where the failure to obtain or file could not reasonably be expected to have a Material Adverse Effect; (iv) promptly commence and diligently prosecute to completion, and shall cause each Restricted Subsidiary to promptly commence and diligently prosecute to completion, any assessment, evaluation, investigation, monitoring, containment, cleanup, removal, repair, restoration, remediation or other remedial obligations to the extent required under Environmental Law (collectively, the "**Remedial Work**") because of or in connection with the actual or suspected past, present or future Release or threatened Release of any Hazardous Material on, under, about or from any of the Note Parties' or their Restricted Subsidiaries' Properties, which failure to commence and diligently prosecute to completion could reasonably be expected to have a Material Adverse Effect; (v) conduct, and cause its Restricted Subsidiaries to conduct, their respective operations and businesses in a manner that will not expose any Property or Person to Hazardous Materials in violation of Environmental Law or as would result in liability under Environmental Law, if such exposure could reasonably be expected to have a Material Adverse Effect; and (vi) establish and implement, and shall cause each Restricted Subsidiary to establish and implement, such procedures as may be necessary to regularly determine and assure that the Note Parties' and their Restricted Subsidiaries' obligations under this <u>Section 6.09(a)</u> are timely and fully satisfied, which failure to establish and implement could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties will promptly, but in no event later than fifteen (15) days after any Note Party obtains knowledge thereof, notify the Agent and the Holders in writing of any threatened (in writing) action, investigation or inquiry by any Governmental Authority or any threatened demand (in writing) or lawsuit by any Person against the Note Parties or their

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Restricted Subsidiaries or their Properties of which the Note Party has knowledge in connection with any Environmental Laws if the Note Parties could reasonably anticipate that any of the foregoing will result in liability (whether individually or in the aggregate), if not covered by insurance, to the extent such liability could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent available, the Note Parties will, and will cause each Restricted Subsidiary to, provide environmental assessments, audits and tests obtained by the Note Parties or any Restricted Subsidiary in connection with any future acquisition of Oil and Gas Properties or other Properties to the Agent, other than an acquisition of additional interests in Oil and Gas Properties in which the Note Parties or any Restricted Subsidiary previously held an interest.

**Section 6.10** <u>Further Assurances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Note Parties at its sole expense will, and will cause each Restricted Subsidiary to, promptly execute and deliver to the Agents all such other documents, agreements and instruments reasonably requested by the Agents or the Requisite Holders to comply with, cure any defects or accomplish the conditions precedent, covenants and agreements of the Note Parties or any Restricted Subsidiary, as the case may be, in the Note Documents, including the Notes, or to further evidence and more fully describe the Collateral intended as security for the Obligations, or to correct any omissions in this Agreement or the Collateral Documents, or to state more fully the obligations secured therein, or to perfect, protect or preserve any Liens created pursuant to this Agreement or any of the Collateral Documents or the priority thereof, or to make any recordings, file any notices or obtain any consents, all as may be reasonably necessary or appropriate, in the sole discretion of the Agent or the Requisite Holders, in connection therewith. In addition, at any Agent's request, each Note Party, at its sole expense, shall provide any information requested to identify any Collateral pledged by it, exhibits to Mortgages in form and substance reasonably satisfactory to such Agent (at the direction of the Requisite Holders) (which such exhibits shall be in recordable form for the applicable jurisdiction) or any other information requested in connection with the identification of any Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Note Parties hereby authorizes the Collateral Agent to file one or more financing or continuation statements, and amendments thereto, relative to all or any part of the Mortgaged Property without the signature of the Note Parties or any other Guarantor where permitted by law. A carbon, photographic or other reproduction of the Collateral Documents or any financing statement covering the Mortgaged Property or any part thereof shall be sufficient as a financing statement where permitted by law. Each of the Note Parties acknowledges and agrees that any such financing statement may describe the collateral as "all assets" or "all assets of Debtor, whether now owned or hereafter acquired and wherever located" of the applicable Note Party or words of similar effect as may be required by the Collateral Agent or the Requisite Holders. The grant of authority to the Collateral Agent under this <u>Section 6.10(b)</u> shall not be construed as a duty on any Agent to make any filings or otherwise perfect or maintain the perfection of the Collateral Agent's security interest, for the benefit of the Secured Parties, in the Collateral.

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**Section 6.11** <u>Reserve Reports</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before March 3rd, May 1st, August 1st and November 1st of each year, commencing November 1, 2024, the Issuer shall furnish to the Agent and the Holders a Reserve Report evaluating, as of December 31 (for each March delivery), March 31 (for each May delivery), June 30 (for each August delivery) and September 30 (for each November delivery), the Proved Reserves of the Issuer and the Note Parties located within the geographic boundaries of the United States of America. The Reserve Report as of December 31 (for each March delivery) of each year starting with December 31, 2024 shall be prepared by one or more Approved Petroleum Engineers, and the Reserve Report as of March 31 (for each May delivery), June 30 (for each August delivery) and September 30 (for each November delivery) of each year (beginning March 31, 2024), shall be a report prepared by or under the supervision of the chief engineer or qualified agent of the Issuer who shall, in each case, certify such Reserve Report to be true and accurate in all material respects and to have been prepared in accordance with the procedures used (x) with respect to each March delivery, the Reserve Report as of December 31, 2023 and (y) with respect to each May, August and November delivery, the immediately preceding December 31 Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With the delivery of each Reserve Report, the Issuer shall provide to the Agent and the Holders a Reserve Report Certificate from a Responsible Officer certifying that in all material respects: (i) the information contained in the Reserve Report and any other information delivered in connection therewith is true and correct to the best knowledge of the Issuer, it being understood by the Agent and the Holders that projections concerning volumes and production and cost estimates contained in each Reserve Report are necessarily based upon opinions, estimates and projections and that neither the Issuer nor such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate, (ii) the Issuer or another Note Party has good and defensible title to the Oil and Gas Properties evaluated in such Reserve Report (other than those (A) disposed of since the date of such Reserve Report as permitted in accordance with the terms hereof and (B) leases that have expired in accordance with their terms) and such Oil and Gas Properties are free of all Liens except for Liens permitted by <u>Section 7.03</u>, (iii) except as set forth on an exhibit to the certificate or previously disclosed to the Agent and the Requisite Holders in writing, to the extent the Note Parties take Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, on a net basis there are no gas imbalances, take or pay or other prepayments, the value of which exceed the volume threshold specified in <u>Section 4.16</u>, with respect to the Note Parties' Oil and Gas Properties evaluated in such Reserve Report which would require the Issuer or any other Note Party to deliver Hydrocarbons either generally or produced from such Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor, (iv) none of the Note Parties, Oil and Gas Properties have been sold since the "as of" date of the last Reserve Report except (A) those Note Parties, Oil and Gas Properties listed on such certificate as having been disposed or (B) as previously disclosed to the Agent and the Requisite Holders in writing, (v) [reserved] and (vi) attached thereto is a schedule demonstrating compliance (calculated at the time of delivery of such Reserve Report) with the Collateral Coverage Minimum.

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**Section 6.12** <u>Title Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before the delivery to the Agent and the Holders of each Reserve Report required by <u>Section 6.11(a)</u>, the Issuer will deliver title information (in form and substance reasonably acceptable to the Requisite Holders) covering enough of the Oil and Gas Properties evaluated by such Reserve Report that were not included in the immediately preceding Reserve Report, so that the Requisite Holders shall have received together with title information previously delivered to the Requisite Holders, reasonably satisfactory title information on at least 90% on the PV-10 of the Oil and Gas Properties evaluated by such Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Issuer has provided title information for additional Properties under <u>Section 6.12(a)</u>, the Issuer shall, within forty-five (45) days after notice from the Requisite Holders that title defects or exceptions exist with respect to such additional Properties, either (i) cure any such title defects or exceptions (including defects or exceptions as to priority) which are not permitted by <u>Section 7.03</u> raised by such information, (ii) substitute acceptable Mortgaged Properties with no title defects or exceptions except for those permitted by <u>Section 7.03</u> having an equivalent value or (iii) deliver title information in form and substance reasonably acceptable to the Requisite Holders so that the Requisite Holders shall have received, together with title information previously delivered to the Requisite Holders, reasonably satisfactory title information on at least 90% of the PV-10 of the Oil and Gas Properties evaluated by such Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Issuer is unable to cure any title defect requested by the Requisite Holders to be cured within the forty-five (45) day period or the Issuer does not comply with the requirements to provide acceptable title information covering 90% of the PV-10 of the Oil and Gas Properties evaluated in the most recent Reserve Report, such default shall not be a Default, but instead the Agent and/or the Requisite Holders shall have the right to exercise the following remedy in their sole discretion from time to time, and any failure to so exercise this remedy at any time shall not be a waiver as to future exercise of the remedy by the Agent or the Requisite Holders. To the extent that Agent or the Requisite Holders are not satisfied with title to any Oil and Gas Properties evaluated in such Reserve Report after the periods described in <u>Section 6.12(b)</u> have elapsed, the Issuer shall, at the request of Agent (acting at the direction of Requisite Holders) or the Requisite Holders, (i) resubmit a revised Reserve Report to the Agent (for delivery to the Holders) removing such unacceptable Oil and Gas Property and such revised Reserve Report shall constitute the most recently delivered Reserve Report for all purposes under this Agreement and (ii) the Asset Coverage Ratio shall be recalculated and compliance with respect to such ratio shall be based upon the revised Reserve Report delivered under <u>clause</u> <u>(i)</u> above (and, with respect to such Oil and Gas Property that is unacceptable, the Asset Coverage Ratio shall be calculated and compliance with respect to such ratio shall be subject to the terms of <u>Section 1.05(a)(ii)</u> for so long as title to such Oil and Gas Property continues to be unacceptable).

**Section 6.13** <u>Collateral and Guaranty Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the delivery of each Reserve Report hereunder, the Note Parties shall review the applicable Reserve Report, if any, and the list of current Mortgaged Properties (as described in <u>Section 6.11(b)</u>) to ascertain whether the Mortgaged Properties represent at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the most recently completed Reserve Report (the "**Collateral Coverage Minimum**"). In the event that the PV-10

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of the Mortgaged Properties (calculated at the time of redetermination) does not satisfy the Collateral Coverage Minimum, then the Note Parties shall, and shall cause their Restricted Subsidiaries to, grant, within thirty (30) days of delivery of the certificate required under <u>Section 6.11(b)</u> (or such longer period as the Requisite Holders may agree in their sole discretion, but not to extend beyond a total of ninety (90) days following the delivery of such certificate), to the Collateral Agent as security for the Obligations a first priority Lien interest subject to Liens permitted under <u>Section 7.03</u> on additional Oil and Gas Properties of the Note Parties not already subject to a Lien of the Collateral Documents such that after giving effect thereto, the PV-10 of the Mortgaged Properties (calculated at the time of such redetermination) meets the Collateral Coverage Minimum. All such Liens will be created and perfected by and in accordance with the provisions of deeds of trust, mortgages, security agreements and financing statements or other Collateral Documents, all in form and substance reasonably satisfactory to the Requisite Holders and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes. In order to comply with the foregoing, if any Restricted Subsidiary places a Lien on its Oil and Gas Properties and such Restricted Subsidiary is not a Guarantor, then it shall become a Guarantor and comply with <u>Section 6.13(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that (i) the Issuer or any other Note Party creates or acquires any Restricted Subsidiary that is a Material Subsidiary or any Restricted Subsidiary is a Material Subsidiary or (ii) any Subsidiary incurs or guarantees any Debt, the applicable Note Party shall, within thirty (30) days from the date of such creation, acquisition, incurrence, or guarantee (or such later date as the Requisite Holders may agree in their sole discretion), cause such Restricted Subsidiary to execute and deliver the Guaranty Agreement and the Pledge and Security Agreement (or a supplement to such documents, as applicable) pursuant to which such Restricted Subsidiary shall guaranty the Obligations and grant a security interest in such Restricted Subsidiary's Collateral; <u>provided</u> that such Restricted Subsidiary will not own any Oil and Gas Properties until delivery of such Guaranty Agreement or Pledge and Security Agreement (or a supplement to such documents, as applicable); <u>provided</u>, <u>further</u>, that notwithstanding the foregoing, Excluded Subsidiaries shall not be required to become Guarantors or pledge any Collateral. In the event that the Issuer or any other Note Party creates or acquires any Restricted Subsidiary, the Note Party that owns the Equity Interests in such new Restricted Subsidiary shall execute and deliver a supplement to the Pledge and Security Agreement, pursuant to which such Note Party will ratify the pledge of all of the Equity Interests of such new Restricted Subsidiary to secure the Obligations. In connection with the foregoing, the Note Parties shall deliver to the Collateral Agent original certificates, if any, evidencing the Equity Interests of such new Restricted Subsidiary, together with appropriate undated stock powers for each certificate duly executed in blank by the registered owner thereof, and execute and deliver such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Agents or the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) With respect to the Initial WH DST, within thirty (30) days of the earlier of (A) to the extent the effective date of the Conversion Notice has not occurred by such time, the twelve (12) month anniversary of the Third Amendment Effective Date and (B) the date of exercise of the FMV Option in accordance with Article 10 of the Initial Trust Agreement, the Initial WH DST shall to execute and deliver the Guaranty Agreement and the Pledge and Security Agreement (or a supplement to such documents, as applicable) pursuant to which the Initial WH DST shall guaranty the Obligations and grant a security interest in its Collateral and

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(ii) with respect to any other WH DST, within thirty (30) days of the earlier of (A) to the extent the effective date of the Conversion Notice has not occurred by such time, the twelve (12) month anniversary of the date of formation of such WH DST and (B) the date of exercise of the FMV Option in accordance with Article 10 of the Trust Agreement, such WH DST shall to execute and deliver the Guaranty Agreement and the Pledge and Security Agreement (or a supplement to such documents, as applicable) pursuant to which such WH DST shall guaranty the Obligations and grant a security interest in its Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Agent, without the consent of the Requisite Holders, shall enter into any Mortgage in respect of any real property acquired by any Note Party after the Closing Date until the date that is, (A) if the Mortgage relating to such Mortgaged Property contains standard exclusionary language with respect to Improved Mortgaged Property, the date of acquisition of such Mortgaged Property or (B) if the Mortgage relating to such Mortgaged Property does not contain standard exclusionary language with respect to Improved Mortgaged Property, the date that is thirty (30) days after the Agent (acting at the direction of the Requisite Holders) has delivered to the Holders the following documents in respect of such real property: (1) a completed flood hazard determination from a third party vendor; (2) if such real property is located in a "special flood hazard area", (I) a notification to the applicable Note Parties of that fact and (if applicable) notification to the applicable Note Parties that flood insurance coverage is not available and (II) evidence of the receipt by the applicable Note Parties of such notice; and (3) if required by Flood Insurance Regulations, evidence of required flood insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No MIRE Event may be closed, without the consent of the Requisite Holders, until the date that is, (A) if the Mortgage relating to all Mortgaged Properties contains standard exclusionary language with respect to Improved Mortgaged Property, the date of such MIRE Event or (B) if the Mortgage relating to all Mortgaged Properties does not contain standard exclusionary language with respect to Improved Mortgaged Property, thirty (30) days after the Agent (acting at the direction of the Requisite Holders) has delivered to the Holders the following documents in respect of such real property: (1) a completed flood hazard determination from a third party vendor; (2) if such real property is located in a "special flood hazard area", (I) a notification to the applicable Note Parties of that fact and (if applicable) notification to the applicable Note Parties that flood insurance coverage is not available and (II) evidence of the receipt by the applicable Note Parties of such notice; and (3) if required by Flood Insurance Regulations, evidence of required flood insurance.

**Section 6.14** <u>ERISA Compliance</u>. The Note Parties will promptly furnish and will cause the Restricted Subsidiaries to promptly furnish to the Holders if specifically requested in writing by any Holder, promptly after the filing thereof with the United States Secretary of Labor or the Internal Revenue Service, copies of each annual report (Form 5500 series) with respect to each Plan sponsored by the Issuer or a Restricted Subsidiary or any trust created thereunder.

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**Section 6.15** <u>Commodity Exchange Act Keepwell Provisions</u>. The Note Parties hereby guarantees the payment and performance of all of the Obligations of each Note Party (other than the Issuer) and absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Note Party (other than the Issuer) in order for such Note Party to honor its obligations under its respective Guaranty Agreement including obligations with respect to Swap Agreements (<u>provided</u>, <u>however</u>, that the Issuer shall only be liable under this <u>Section 6.15</u> for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this <u>Section 6.15</u>, or otherwise under this Agreement or any Note Document, as it relates to such other Note Parties, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of the Note Parties under this <u>Section 6.15</u> shall remain in full force and effect until Payment in Full. The Note Parties intend that this <u>Section 6.15</u> constitute, and this <u>Section 6.15</u> shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each other Note Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

**Section 6.16** <u>Deposit Accounts and Securities Accounts</u>. Subject to <u>Section 6.19</u>, each of the Issuer and the other Note Parties shall (at its own expense) cause each of its Deposit Accounts, each of its Commodity Accounts and each of its Securities Accounts to be subject to a Control Agreement; <u>provided</u>, no such Control Agreement shall be required for Excluded Accounts.

**Section 6.17** <u>Use of Proceeds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The proceeds of the Notes will be used for the purposes set forth in <u>Section 2.04</u>, and not, for the avoidance of doubt, any Restricted Payment, any return of capital to the Issuer's Equity Interest holders or any other distribution. No part of the proceeds of the Notes will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties shall not use, and the Note Parties shall procure that their Subsidiaries and their and their respective directors, officers, employees and agents shall not use, the proceeds of the Notes (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, to the extent that such activities, businesses or transaction would be prohibited by Sanctions if conducted by a corporation incorporated in the U.S. or the European Union or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

**Section 6.18** <u>Swap Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or prior to the Closing Date the Note Parties shall enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Closing

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Date, seventy-five percent (75%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Note Parties shall prior to the end of each Fiscal Quarter enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the end of the applicable Fiscal Quarter, sixty-five percent (65%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of (i) gas and (ii) at all times when the Note Parties are producing more than 200 net barrels of oil per day, oil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or prior to the Closing Date the Note Parties shall enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Closing Date, fifty percent (50%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of Appalachia Gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Note Parties shall prior to the end of each Fiscal Quarter enter into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the end of the applicable Fiscal Quarter, forty percent (40%) of the reasonably anticipated projected production from the Note Parties' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) of Appalachia Gas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) On or prior to the Second Amendment Effective Date, the Second Amendment Incremental Note Holders shall have received evidence satisfactory to them that as of the Second Amendment Effective Date, the Note Parties shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) have entered into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an Approved Counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Second Amendment Effective Date, seventy-five percent (75%) of the reasonably anticipated projected production from the Acquired PHX Assets and Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the Second Amendment Reserve Report and the most recently delivered Reserve Report pursuant to the terms of this Agreement) of gas; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) have entered into and thereafter maintain at all times one or more Swap Agreements for Fair Market Value, with an approved counterparty in respect of commodities entered into Not for Speculative Purposes and in the form of fixed price swaps (at market prices), the notional volumes of which are at least, for each month during the forty-eight (48) calendar month period immediately following the Second Amendment Effective Date, fifty percent (50%) of the reasonably anticipated projected production from the Acquired PHX Assets and Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the Second Amendment Reserve Report and the most recently delivered Reserve Report pursuant to the terms of this Agreement) of Appalachia Gas.

**Section 6.19** <u>Post-Closing Covenant</u>. Within thirty (30) days of the Closing Date (or such later date with the consent of the Requisite Holders in their sole discretion), the Agent and the Holders shall have received (a) a Mortgage encumbering each Mortgaged Property in favor of the Collateral Agent, duly executed and acknowledged by each Note Party that is the owner of or holder of any interest in such Mortgaged Property, and otherwise in form for recording in the recording office of each applicable jurisdiction where each such Mortgaged Property is situated and that will, when properly recorded (or when the applicable financing statements related thereto are properly filed or such other actions needed to perfect are taken) create a valid, perfected first priority security interest (after giving effect to Excepted Liens identified in <u>clauses (a)</u> through <u>(d)</u>, <u>(f)</u> and <u>(i)</u> of the definition thereof, but subject to the provisos at the end of such definition) on at least 90% of the PV-10 of the Oil and Gas Properties evaluated in the Initial Reserve Report and Acquired Assets Reserve Report on a consolidated basis, (b) customary legal opinions of local counsel for the relevant Note Parties in the jurisdiction where such Mortgaged Property is located and (c) Control Agreements for each of the Note Parties' Deposit Accounts, Commodity Accounts and Securities Accounts required to be delivered pursuant to <u>Section 6.16</u>.

**Section 6.20** <u>Minimum Liquidity</u>. On the Second Amendment Effective Date, after giving effect to the transactions in connection with the Specified PHX Merger the Issuer and its Restricted Subsidiaries shall have Unrestricted Cash in an amount equal to or greater than $4,000,000.

**Section 6.21** <u>Upstreaming of Cash</u>. Following the effective date of the applicable Conversion Notice until the date the applicable WH DST becomes a wholly-owned Subsidiary of the applicable WH OP or another Note Party in accordance with the terms of Article 10 (or an article substantially similar to Article 10 of the Initial Trust Agreement) of the applicable Trust Agreement, each WH Depositor shall have received (i) all cash received from its associated WH DST pursuant to such WH Depositor's beneficial ownership, including via class 2 beneficial interest, in such WH DST, and (ii) all cash received from the redemptions of such WH Depositor's class 2 beneficial interest in its associated WH DST after paying reasonable and necessary costs of the applicable offering and sale of trust interests (not to exceed fifteen percent (15%) of the purchase price of class 1 beneficial interests in such WH DST as specified in the applicable DST PPM).

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**ARTICLE VII.** 

**NEGATIVE COVENANTS** 

Each Note Party covenants and agrees with the Agents and each of the Holders that, until Payment in Full, each Note Party will not, and will cause its Subsidiaries not to:

**Section 7.01** <u>Financial Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Consolidated Total Net Leverage Ratio</u>. The Issuer will not, (i) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on December 31, 2024) permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 3.50 to 1.00, (ii) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on June 30, 2025) permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 4.00 to 1.00, (iii) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on March 31, 2026), permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 3.50 to 1.00 and (iv) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on March 31, 2027), permit its Consolidated Total Net Leverage Ratio for the Rolling Period then ending to be greater than 3.25 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Asset Coverage Ratio</u>. The Issuer will not permit the Asset Coverage Ratio (determined by reference to the most recently delivered Reserve Report on a Pro Forma Basis) (i) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending December 31, 2024) to be less than 1.00 to 1.00 and (ii) as of the last day of any Fiscal Quarter (commencing with the Fiscal Quarter ending on March 31, 2027) to be less than 1.10 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Right to Cure</u>. In the event the Issuer fails to comply with the requirements of <u>Sections 7.01(a)</u> or <u>7.01(b)</u>, beginning on the first date after the last day of the Fiscal Quarter for which the financial covenants in <u>Sections 7.01(a)</u> or <u>7.01(b)</u> are being tested, until the expiration of the tenth Business Day subsequent to the date the compliance certificate for calculating the Consolidated Total Net Leverage Ratio and the Asset Coverage Ratio is required to be delivered pursuant to <u>Section 6.01(c)</u> (the "**Cure Period**"), the Issuer shall be permitted to cure such failure to comply by requesting that the Consolidated Total Net Leverage Ratio and/or the Asset Coverage Ratio be recalculated by reducing the Issuer's Total Net Debt as the result of a prepayment of the Notes in accordance with <u>Section 2.09(a)</u> for the Fiscal Quarter most recently ended by an amount equal to the proceeds received by the Issuer from a Specified Equity Contribution during a Cure Period (such amount, with respect to any Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default, a "**Cure Amount**"); <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Issuer delivers written notice to the Agent (for delivery to the Holders) on or prior to the date of a timely delivered certificate required by <u>Section 6.01(c)</u> that it has elected to cure the failure to comply and clearly setting forth such Specified Equity Contribution in the computation required by <u>Section 6.01(c)(ii)</u>;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the amount of the Cure Amount shall not be greater than the amount required to cause the Issuer to be in compliance with <u>Section 7.01(a)</u> or <u>7.01(b)</u>, as applicable, and a Cure Amount may be applied to more than one financial covenant during the same Cure Period;

(iii)(A) any such reduction in the Issuer's Total Net Debt shall be taken into account in calculating the Consolidated Total Net Leverage Ratio for the purpose of determining compliance or noncompliance with <u>Section 7.01(a)</u> of the last day of any Rolling Period that includes the last Fiscal Quarter of the four (4) quarter period with respect to which such cure right was exercised; and (B) any such reduction in the Issuer's Total Net Debt taken into account in calculating the Asset Coverage Ratio shall only be applied for such single quarterly testing of the Asset Coverage Ratio, in each case, pursuant to this <u>Section 7.01(c)</u>, and in each case shall be applied solely for the purpose of determining compliance or non-compliance with <u>Section 7.01(a)</u> and/or <u>7.01(b)</u> as of the last day of any Rolling Period that includes such Fiscal Quarter or as of the last day of such Fiscal Quarter, as applicable, and not for any other purpose under any Note Document (including any determination of *pro forma* compliance with the Consolidated Total Net Leverage Ratio or Asset Coverage Ratio for the purposes of making any Restricted Payment or any other purpose (even if the proceeds of any Specified Equity Contribution are actually used to reduce Debt, including in connection with any Cure Amount applied to cure the Asset Coverage Ratio or the Consolidated Total Net Leverage Ratio));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Issuer may not cure any Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default by an equity cure more than (A) two (2) times during any period of four (4) consecutive Fiscal Quarters or (B) five (5) times prior to the Maturity Date (<u>provided</u> that, if the Issuer exercises its cure right prior to the date financial statements are required to be delivered for a relevant Fiscal Quarter solely with respect to an anticipated Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default and the Cure Amount associated therewith is insufficient to cure a Consolidated Total Net Leverage Ratio or Asset Coverage Ratio default with respect to such Fiscal Quarter, any subsequent exercise of a cure right prior to the expiration of the applicable Cure Period to "top-up" such Cure Amount shall not count as an additional exercise of the cure right); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If after giving effect to the foregoing recalculations, the Issuer would then be in compliance with <u>Sections 7.01(a)</u> and/or <u>7.01(b)</u>, the Issuer shall be deemed to have satisfied the requirements of <u>Sections 7.01(a)</u> and <u>7.01(b)</u> as of the relevant earlier required date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable Event of Default under any such covenant that had occurred shall be deemed cured for the purpose of this Agreement and the other Note Documents.

If the Issuer has certified in writing to the Agents and Holders that it will provide a Specified Equity Contribution to cure each Event of Default having occurred under <u>Sections 7.01(a)</u> or <u>7.01(b)</u> for such Cure Period, neither the Agents nor any Holder shall exercise the right to accelerate the Obligations or terminate the Commitments and none

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of Agents, any Holder or any Secured Party shall exercise any right to foreclose on or take possession of the Collateral or exercise any other remedy pursuant to <u>Section 9.01</u>, the other Note Documents or applicable law prior to the end of the applicable Cure Period solely on the basis of an Event of Default having occurred and continuing under <u>Sections 7.01(a)</u> or <u>7.01(b)</u>; <u>provided</u> that, for avoidance of doubt, such an Event of Default shall be understood to have occurred and be continuing until cured in accordance with and in the time frame permitted by this <u>Section 7.01(c)</u>.

**Section 7.02** <u>Debt</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, incur, create, assume or suffer to exist any Debt, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Notes or other Obligations arising under the Note Documents or any guaranty of or suretyship arrangement for the Notes or other Obligations arising under the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Debt under Finance Leases and Purchase Money Debt not to exceed $500,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Debt associated with bonds, guarantees, letters of credit or surety obligations, in each case required by Governmental Requirements or third parties incurred in the ordinary course of business, in each case in connection with the operation of the Oil and Gas Properties and not in connection with money borrowed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) intercompany Debt between the Note Parties or between Restricted Subsidiaries to the extent permitted by <u>Section 7.05(d)</u>; <u>provided</u> that such Debt is not held, assigned, transferred, negotiated or pledged to any Person other than the Note Parties, and, <u>provided</u>, <u>further</u>, that any such Debt owed by either the Issuer or a Guarantor shall be subordinated to the Obligations on terms set forth in the Guaranty Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) endorsements of negotiable instruments for collection in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Debt constituting a guarantee by any Note Party of any Debt incurred by another Note Party so long as the incurrence of such Debt by such other Note Party is otherwise permitted by this <u>Section 7.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Debt arising under (i) Swap Agreements permitted by <u>Section 7.13</u> and (ii) customary bank products incurred in the ordinary course of business of the Issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Debt owed pursuant to any Demand Note in an aggregate principal amount for all such Demand Notes not to exceed $1,500,000; **and**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>(i) the Series A Preferred Shares, Series B Preferred Shares, Series C Preferred Shares and Series D Preferred Shares; and</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>(j)</u>** (i) other additional unsecured Debt (excluding any Debt set forth in <u>clause (a)</u> of the definition thereof) in an aggregate outstanding principal amount not to exceed $1,000,000; <u>provided</u> that no Indebtedness incurred, created, assumed or suffered to exist with respect to WhiteHawk – Equity Holdings, LP, any WH Master Tenant or any WH DST shall be permitted under this <u>Section 7.02(h)</u>.

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**Section 7.03** <u>Liens</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, create, incur, assume or permit to exist any Lien on any of its Properties (now owned or hereafter acquired), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens securing the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Excepted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens in respect of Debt permitted by <u>Section 7.02(b)</u>, but only to the Property under lease or the Property purchased, constructed or improved with such Debt; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) other Liens affecting property or assets of the Note Parties or any of their Restricted Subsidiaries securing obligations in an aggregate principal amount outstanding not to exceed $1,000,000.

Notwithstanding anything to the contrary in any Note Documents, (a) none of the Liens permitted pursuant to this <u>Section 7.03</u> (other than Excepted Liens and Liens securing the Notes) may at any time attach to any Oil and Gas Properties of the Note Parties and their Restricted Subsidiaries, (b) none of the Liens permitted pursuant to this <u>Section 7.03</u> (other than Liens permitted pursuant to this <u>Section 7.03</u> which have priority by operation of Law) shall be superior to the Lien of the Collateral Agent on any mineral interests and mineral royalty interests and similar holdings of the Note Parties and their Restricted Subsidiaries and (c) no intent to subordinate the first priority status afforded by the Liens granted in favor of the Collateral Agent (for the benefit of the Secured Parties, as provided in the Collateral Documents) is to be hereby implied or expressed by the permitted existence of the Liens permitted pursuant to this <u>Section 7.03</u>.

**Section 7.04** <u>Dividends and Distributions</u>. The Note Parties will not, and will not permit any of their Restricted Subsidiaries to, declare or make, directly or indirectly, any Restricted Payment, return any capital to its Equity Interest holders, or make any distribution of its Property to its Equity Interest holders, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the proviso set forth in the definition of "Monthly Common Equity Dividends", the Issuer may declare and pay dividends with respect to its common Equity Interests payable solely in additional shares of its common Equity Interests (other than Disqualified Capital Stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Restricted Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to (x) no Default or Event of Default continuing or resulting from such Restricted Payment, (y) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (z) the Issuer being in pro forma compliance with <u>Article VI</u> and Article VII (including, without limitation, the Issuer providing the notices, certificates and financial information required by Section 6.01,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) during Distribution Period A for any "Applicable Distribution Period" as set forth in <u>Appendix C</u>, prior to the "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first*, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.75 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.05 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Monthly Common Equity Dividends and Monthly Preferred Equity Dividends to the holders of its Equity Interests, (II) pay AUM Fees and/or Dividend Incentive Fees (clauses (I) and (II), collectively, "**Primary Distributions**") and (III) make Specified Period A Equity Redemptions with Distributable Free Cash Flow only and (B) *second*, in the event Distributable Free Cash Flow is positive following the application of <u>Section 7.04(c)(i)(A)</u>, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.00 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.20 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests with Distributable Free Cash Flow only;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) during Distribution Period B for any "Applicable Distribution Period" as set forth in <u>Appendix C</u> prior to "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first*, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 3.25 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.10 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Primary Distributions and/or Specified Period B/C Level II Equity Redemptions with Distributable Free Cash Flow only and (B) *second*, in the event Distributable Free Cash Flow is positive following the application thereof under <u>Section 7.04(c)(ii)(A)</u>, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than **2.75<u>3.00</u>** to 1.00 and (2) an Asset Coverage Ratio of greater than 1.30<u>1.20</u> to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make Specified Period B/C Level II Equity Redemptions and make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests, in each case with Distributable Free Cash Flow only; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) during Distribution Period C for any "Applicable Distribution Period" as set forth in <u>Appendix C</u> prior to "CF Sweep Date" for such "Applicable Distribution Period", the Issuer may (A) *first*, further subject to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.75 to 1.00 and (2) an Asset Coverage Ratio of greater than 1.15 to 1.00, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), (I) make Primary Distributions and/or Specified Period B/C Level II Equity Redemptions with Distributable Free Cash Flow only, (B) *second*, in the event Distributable Free Cash Flow is positive following the application thereof under <u>Section 7.04(c)(iii)(A)</u>, further subject

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to the Issuer being in compliance with (1) a Consolidated Total Net Leverage Ratio of less than 2.00 to 1.00, (2) an Asset Coverage Ratio of greater than 1.35 to 1.00 and (3) the aggregate principal amount of Notes outstanding as of such date of distribution is equal to or less than the Target Debt Balance as of such date of distribution, in each case on a Distribution PF Basis (including any incurrence of Debt in connection with such Restricted Payment), make Specified Period B/C Level II Equity Redemptions with Distributable Free Cash Flow only and make additional dividends to the holders of its Equity Interests on the account of its common Equity Interests, in each case with Distributable Free Cash Flow only;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to (i) no Default or Event of Default continuing or resulting from such Restricted Payment, (ii) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (iii) the Issuer being in pro forma compliance with <u>Article VI</u> and <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01</u>), Restricted Payments set forth on <u>Schedule 7.04</u> (the "<u>Specified RPs</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) During Distribution Period B, the Issuer may make Redemptions of Series C <u>**Preferred Shares or Series D**</u> Preferred Shares in an aggregate amount not to exceed $20,000,000 with the proceeds of common equity or Series B Preferred Share issuances made following the First Amendment Effective Date (the "Specified Issuance Proceeds") and applied towards such Redemptions of Series C Preferred Shares <u>or Series D Preferred Shares</u> within thirty (30) days of any such common equity or Series B Preferred Share issuances subject to (i) no Default or Event of Default continuing or resulting from such Restricted Payment, (ii) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (iii) the Issuer being in pro forma compliance with <u>Article VI</u> and, subject to <u>clause (iv)</u> below, <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01(o)</u> and <u>Section 6.01(u)</u>) and (iv) the Issuer being in compliance on a Pro Forma Basis with (A) a Consolidated Total Net Leverage Ratio of less than 3.25 to 1.00 and (B) an Asset Coverage Ratio of greater than 1.10 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) During Distribution Period C, the Issuer may make Redemptions of Series C <u>**Preferred Shares or Series D**</u> Preferred Shares in an aggregate amount not to exceed $20,000,000 with Specified Issuance Proceeds and applied towards such Redemptions of Series C Preferred Shares <u>or Series D Preferred Shares</u> within thirty (30) days of any such common equity or Series B Preferred Share issuances subject to (i) no Default or Event of Default continuing or resulting from such Restricted Payment, (ii) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (iii) the Issuer being in pro forma compliance with <u>Article VI</u> and, subject to <u>clause (iv)</u> below, <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01(o)</u> and <u>Section 6.01(u)</u>) and (iv) the Issuer being in compliance on a Pro Forma Basis with (A) a Consolidated Total Net Leverage Ratio of less than 2.75 to 1.00 and (B) an Asset Coverage Ratio of greater than 1.15 to 1.00.

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Notwithstanding anything to the contrary, any Restricted Payment declared, made or agreed to be declared or made in reliance on clause <u>(c)</u> of this <u>Section 7.04</u> shall be made with Distributable Free Cash Flow only.

Notwithstanding anything to the contrary contained herein or any other Note Document, (a) no Restricted Payment shall be made under this <u>Section 7.04</u> to any Unrestricted Subsidiary or to any WH Master Tenant, (b) Restricted Payments to WhiteHawk – Equity Holdings, LP shall not be permitted except, to the extent such Investment constitutes a Restricted Payment, Investments made pursuant to <u>Section 7.05(k)</u> and (c) Restricted Payments to any WH DST shall not be permitted except, to the extent such Investment constitutes a Restricted Payment, Investments made pursuant to <u>Section 7.05(n)</u>.

**Section 7.05** <u>Investments and Advances</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, make or permit to remain outstanding any Investments in or to any Person, except that the foregoing restriction shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investments as of the Closing Date which are disclosed to the Holders in <u>Schedule 7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) accounts receivable arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Investments in Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investments (i) made by the Issuer in or to the Guarantors (including any new Restricted Subsidiary that becomes a Guarantor in compliance herewith substantially contemporaneously with such Investment being made), (ii) made by any Guarantor in or to the Issuer or any other Guarantor and (iii) made by any Restricted Subsidiary in or to the Issuer or the Guarantors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Investments in stock, obligations or securities received in settlement of debts arising from Investments permitted under this <u>Section 7.05</u> and accounts receivable owing to the Issuer or any Restricted Subsidiary as a result of a bankruptcy or other insolvency proceeding of the obligor in respect of such debts or upon the enforcement of any Lien in favor of the Issuer or any of its Restricted Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Investments pursuant to Swap Agreements otherwise permitted under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Investments consisting of non-cash consideration received in connection with dispositions or transfers permitted pursuant to <u>Section 7.09</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Subject to (x) no Default or Event of Default continuing or resulting from such Investment, (y) Liquidity on a Distribution PF Basis being greater than the Minimum Liquidity Amount and (z) the Issuer being in pro forma compliance with <u>Article VI</u> and <u>Article VII</u> (including, without limitation, the Issuer providing the notices, certificates and financial information required by <u>Section 6.01(o)</u> and <u>Section 6.01(u)</u>), in the event Distributable Free Cash Flow is positive following the application thereof under (i) <u>Section 7.04(c)(i)(A)</u> and <u>Section 7.04(c)(i)(B)</u> during Distribution Period A, (ii) <u>Section 7.04(c)(ii)(A)</u> and

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 <u>Section 7.04(c)(ii)(B)</u> during Distribution Period B or (iii) <u>Section 7.04(c)(iii)(A)</u> and <u>Section 7.04(c)(iii)(B)</u> during Distribution Period C and the aggregate principal amount of Notes outstanding as of such date of distribution is equal to or less than the Target Debt Balance as of such date of distribution, as applicable, make Investments constituting the acquisition of (x) Oil & Gas Properties or (y) Equity Interests of any entity with no material assets other than Oil and Gas Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Investments to the extent constituting Debt, distributions or dispositions permitted under <u>Sections 7.02</u>, <u>7.04</u> or <u>7.09</u>, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) acquisitions of Oil & Gas Properties so long as (i) the Issuer is in pro forma compliance with <u>Section 7.01</u> and (ii) such acquisitions are funded solely with the proceeds of common equity issuances<u>**, Series A Preferred Shares, Series B Preferred Shares, Series C Preferred Shares or Series D Preferred Shares**</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Investments in an aggregate amount not to exceed $500,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the Specified SJM Acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the Specified PHX Merger; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) so long as no Event of Default exists or would result as a result of such Investment, Investments by a WH Depositor in the applicable WH DST in the form of cash for the purposes of such WH DST acquiring Oil and Gas Properties after the Third Amendment Effective Date, <u>provided</u> that the aggregate amount of Investments made pursuant to this Section 7.05(n) shall not exceed during the term of this Agreement the sum of (x) $25,000,000 plus (y) the Dollar amount of any capital contributions received by WH Depositors pursuant to a DST Sell-Down (net of any fees, costs and expenses owed or paid by WH Depositor or any other Note Party in connection with such DST Sell-Down) as certified 6.01(v)(i); <u>provided</u> that the sum of clauses (x) and (y) above shall not in any event exceed $25,000,000.

Notwithstanding anything to the contrary contained herein or any other Note Document, (a) no Investments in Unrestricted Subsidiaries or any WH Master Tenant shall be permitted under this <u>Section 7.05</u>, (b) no Investments in WhiteHawk – Equity Holdings, LP shall be permitted except for pursuant to <u>Section 7.05(k)</u> and (c) no Investments in any WH DST shall be permitted except for pursuant to <u>Section 7.05(n)</u>.

**Section 7.06** <u>Nature of Business; Wholly-Owned Subsidiaries; No International Operations</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, (a) allow any material change to be made in the character of its business as owners of minerals interests and mineral royalty interests and other non-operating interests in upstream Oil and Gas Properties or with respect to any WH Master Tenant and any WH DST, the character of its business conducting activities facilitating like kind exchanges under Section 1031 of the Code or the provision of services in connection therewith, or (b) allow any Guarantor to cease to be a Wholly-Owned Subsidiary of the Issuer other than as a result of a sale of all of the Equity Interests of such Guarantor or a merger of such Guarantor permitted under <u>Section 7.08</u> or <u>7.09</u>, <u>provided</u>, that notwithstanding anything to the contrary contained in this <u>Section 7.06(b)</u>, the

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DST Sell-Down with respect to WH DSTs shall be permitted. Without limiting the foregoing, the Note Parties and their Restricted Subsidiaries shall not permit, including after giving effect to any disposition, Investment or acquisition permitted hereunder, the portion of the Total PDP PV-10 Value of their Oil and Gas Properties directly attributable to the ownership of the Note Parties and their Restricted Subsidiaries in mineral interests and mineral royalty interests to be less than 95% of the Total PDP PV-10 Value of the Note Parties' and their Restricted Subsidiaries' Oil and Gas Properties, and the remaining 5% or less of the Total PDP PV-10 Value of their Oil and Gas Properties shall be comprised of non-operating interests in upstream Oil and Gas Properties; <u>provided</u> that, solely for purposes of this <u>Section 7.06</u>, "Total PDP PV-10 Value" shall include the book value of any Oil and Gas Property that does not have PV-10 Value. From and after the Closing Date, the Issuer and its Restricted Subsidiaries will not acquire or make any other expenditure (whether such expenditure is capital, operating or otherwise) in or related to, any Oil and Gas Properties not located within the geographical boundaries of and subject to the jurisdiction of the United States of America. The Note Parties and their Restricted Subsidiaries shall at all times remain organized under the laws of the United States of America or any State thereof or the District of Columbia.

**Section 7.07** <u>ERISA Compliance</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) engage in, or permit any ERISA Affiliate to engage in, any transaction in connection with which the Note Parties, a Restricted Subsidiary or any ERISA Affiliate could reasonably be expected to be subjected to either a civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502 of ERISA or a tax imposed by Chapter 43 of Subtitle D of the Code with respect to a Plan that, in either case, could reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) fail to make, or permit any ERISA Affiliate to fail to make, full payment when due of all amounts which, under the provisions of any Plan, agreement relating thereto or applicable law, the Note Parties, a Restricted Subsidiary or any ERISA Affiliate is required to pay as contributions thereto, if a Material Adverse Effect would result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) contribute to or assume an obligation to contribute to any employee welfare benefit plan, as defined in Section 3(1) of ERISA that provides benefits to former employees of such entities other than as required by applicable law and that may not be terminated by such entities in their sole discretion at any time without resulting in a Material Adverse Effect.

**Section 7.08** <u>Mergers, Etc.</u> The Note Parties will not, and will not permit any Restricted Subsidiary to, merge into or with or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of its Property to any other Person (whether now owned or hereafter acquired) (any such transaction, a "Consolidation"), or liquidate or dissolve; <u>provided</u> that (a) any Restricted Subsidiary may participate in a Consolidation with the Issuer or any Guarantor (<u>provided</u> that the Issuer shall be the continuing or surviving entity in any such transaction involving the Issuer, and a Guarantor shall be the continuing or surviving entity of any such transaction not involving the Issuer), (b) any Guarantor may participate in a Consolidation with another Guarantor, (c) any Restricted

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Subsidiary that is not a Guarantor may consolidated into any other Restricted Subsidiary that is not a Guarantor or (d) any Restricted Subsidiary may liquidate or dissolve so long as its assets (if any) are distributed to the Issuer or another Guarantor prior to such liquidation or dissolution.

**Section 7.09** <u>Sale of Properties and Termination of Swap Agreements</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, dispose, sell, assign, farm-out, convey or otherwise transfer any Property or to terminate or otherwise monetize any Swap Agreement in respect of commodities except for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sale of Hydrocarbons in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) farm-outs of undeveloped acreage to which no proved reserves are attributed in the most recently delivered Reserve Report and assignments in connection with such farmouts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the sale or transfer of equipment that is no longer necessary for the business of the Note Parties or such Restricted Subsidiary or that is replaced by equipment of at least comparable value and use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the sale or other disposition (including Casualty Events resulting in the transfer of any Oil and Gas Property or any interest therein) of (i) any Oil and Gas Property or any interest therein or any Restricted Subsidiary owning Oil and Gas Properties and (ii) the termination or monetization of any Swap Agreement in respect of commodities; <u>provided</u> that:

(i)(A) no Event of Default exists or results from such sale or disposition of Property or the termination or monetization of any Swap Agreement (after giving effect to the substantially concurrent use of proceeds therefrom) and (B) all such sales or other dispositions are for Fair Market Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) not less than one hundred percent (100%) of the consideration received in respect of such sale or other disposition shall be cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) it is understood that <u>Section 7.09(d)</u> shall not impair the obligation to satisfy <u>Section 6.20</u> at all times, including the obligation to maintain the Swap Agreements entered into pursuant thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the consideration received in respect of such sale or other disposition shall be for Fair Market Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no Event of Default exists or results from such sale or disposition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if any such disposition is of a Restricted Subsidiary owning Oil and Gas Properties, such disposition shall include all the Equity Interests of such Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) non-exclusive licenses of intellectual property, none of which, in the aggregate, materially impair the operation of the business of the Note Parties or any Restricted Subsidiary;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the abandonment of intellectual property that is no longer material to the operation of the business of the Note Parties or any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Equity Interests of any Restricted Subsidiary of the Note Parties transferred to any Note Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) assets of any Note Party to another Note Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any disposition in the form of a Restricted Payment permitted pursuant to <u>Section 7.04</u> or an Investment permitted pursuant to <u>Section 7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the termination or unwind of any Swap Agreements in respect of commodities solely to the extent required to comply with <u>Section 7.13(d)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) to the extent constituting a disposition, so long as no Event of Default exists or would result from such disposition, an Investment permitted pursuant to <u>Section 7.05(n)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) dispositions having a fair market value not to exceed $500,000 in the aggregate.

Notwithstanding anything to the contrary herein or any other Note Document, (x) no sale, arrangement, farm-out, conveyance or other transfer shall be permitted under this <u>Section 7.09</u> to any Unrestricted Subsidiary, (y) the Note Parties will not, and will not permit any Restricted Subsidiary, to sell, grant, issue or otherwise enter into any volumetric production payments, dollar-denominated production payment (or any other "VPP" financing), "drillcos" and other similar synthetic financings, or otherwise dispose of or sell Hydrocarbons in place that would require the Note Parties or their Restricted Subsidiaries to deliver Hydrocarbons at some future time without then or thereafter receiving full prepayment therefor and (z) no sale, disposition, assignment, farm-out, conveyance or other transfer, directly or indirectly, to any WH DST shall be permitted except for pursuant to <u>Section 7.09(k)</u>.

**Section 7.10** <u>Transactions with Affiliates</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of Property or the rendering of any service, with any Affiliate (other than transactions between the Issuer and any Guarantor and transactions between Guarantors) unless such transactions are not prohibited under this Agreement and are upon fair and reasonable terms no less favorable to it than it would obtain in a comparable arm's length transaction with a Person not an Affiliate <u>provided</u> that the foregoing restrictions shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) equity issuances, distributions or other acquisitions or retirements of Equity Interests by the Issuer to the extent permitted by <u>Section 7.04</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the payment of expenses and management fees pursuant to the Administrative Services Agreement and Investment Management Agreement.

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**Section 7.11** <u>Subsidiaries</u>. No Note Party or its Subsidiaries shall (a) form or acquire any Subsidiary, except any wholly-owned Domestic Subsidiary subject to compliance with <u>Section 6.11(c)</u>, or (b) enter into any partnership, joint venture or similar arrangement other than as set forth on <u>Schedule 7.11</u>; <u>provided</u>, that (x) notwithstanding anything to the contrary contained in this <u>Section 7.11</u>, the applicable DST Sell-Down with respect to a WH DST shall be permitted and (y) no WH Master Tenant nor any WH DST shall form or acquire any Subsidiary.

**Section 7.12** <u>Negative Pledge Agreements; Dividend Restrictions</u>. The Note Parties will not, and will not permit any Restricted Subsidiary to, create, incur, assume or suffer to exist any contract, agreement or understanding which in any way prohibits or restricts the granting, conveying, creation or imposition of any Lien on any of their Property in favor of the Collateral Agent and the Secured Parties or restricts any Restricted Subsidiary from paying dividends or making distributions to any Note Party, which requires the consent of or notice to other Persons in connection therewith, or other than pursuant to the terms of the DST Agreements, restricts any WH DST from transferring Property to the Issuer and its Subsidiaries, other than (a) this Agreement and the Collateral Documents, (b) with respect to the ability of a Restricted Subsidiary to make dividends or distributions to a Note Party, agreements or arrangements evidencing Excepted Liens permitted by <u>Section 7.03</u> to the extent such restriction applies only to the property subject to such Lien, (c) customary restrictions and conditions with respect to the sale or disposition of Property or Equity Interests permitted under <u>Section 7.09</u> pending the consummation of such sale or disposition, (d) with respect to the ability of a Restricted Subsidiary to make dividends or distributions to a Note Party, any leases or licenses or similar contracts as they affect any Property (other than Oil and Gas Properties) subject to such lease or license and customary prohibitions on assignment contained in software license agreements, (e) customary provisions restricting subletting or assignment of any lease governing a leasehold interest (other than any Oil and Gas Property) of the Issuer or any Restricted Subsidiary, (f) as it relates to the assets that are the subject thereof, purchase money obligations for property acquired in the ordinary course of business and obligations under Finance Leases that impose restrictions on transferring the property so acquired, (g) prohibitions or restrictions imposed by any Governmental Requirement, and encumbrances or restrictions imposed by any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings referred to in <u>clauses (a)</u> through <u>(g)</u> above; <u>provided</u> that such amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings are no more restrictive in any material respect with respect to such encumbrance and other restrictions taken as a whole than those prior to such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing.

**Section 7.13** <u>Swap Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Note Parties will not, and will not permit any Restricted Subsidiary to, enter into any Swap Agreements with any Person other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Swap Agreements entered into Not for Speculative Purposes by the Note Parties with an Approved Counterparty in respect of commodities (at market prices) the net notional volumes for which (when aggregated with other commodity Swap Agreements then in effect, other than puts, floors and basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date the latest hedging transaction is entered into under a Swap Agreement, 85% of the reasonably anticipated Hydrocarbon production of oil, gas and natural gas liquids, calculated separately, from the Note Parties' total Proved Reserves for the sixty (60) month period from the date of creation of such hedging arrangement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Swap Agreements entered into Not for Speculative Purposes by the Note Parties in respect of interest rates with an Approved Counterparty, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Swap Agreements effectively converting interest rates from fixed to floating, the notional amounts of which (when aggregated with all other Swap Agreements of the Note Parties and their Restricted Subsidiaries then in effect effectively converting interest rates from fixed to floating) do not exceed 75% of the anticipated outstanding principal amount of the Note Parties' Debt for borrowed money which bears interest at a fixed rate, and which Swap Agreements shall not, in any case, have a tenor beyond the maturity date of such Debt, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Swap Agreements effectively converting interest rates from floating to fixed, the notional amounts of which (when aggregated with all other Swap Agreements of the Note Parties and their Restricted Subsidiaries then in effect effectively converting interest rates from floating to fixed) do not exceed 75% of the anticipated outstanding principal amount of the Note Parties' Debt for borrowed money which bears interest at a floating rate, and which Swap Agreements shall not, in any case, have a tenor beyond the maturity date of such Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In no event shall any Swap Agreement contain any requirement, agreement or covenant for the Note Parties or any Restricted Subsidiary to post collateral, credit support (including in the form of letters of credit) or margin to secure their obligations under such Swap Agreement or to cover market exposures (other than pursuant to the Collateral Documents); for the avoidance of doubt, this <u>Section 7.13(b)</u> shall not prohibit the granting of security to secure the Secured Hedge Obligations pursuant to the Collateral Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of entering into or maintaining Swap Agreement trades or transactions under <u>Section 7.13(a)</u>, forecasts of reasonably anticipated production from the Note Parties' and their Restricted Subsidiaries' Oil and Gas Properties constituting Proved Reserves as set forth on the most recent Reserve Report delivered pursuant to the terms of this Agreement shall be revised to account for any increase or decrease therein anticipated because of information obtained by the Note Parties or any of their Restricted Subsidiaries and delivered to the Agent subsequent to the publication of such Reserve Report including the Note Parties' or any of their Restricted Subsidiaries' internal forecasts of production decline rates for existing wells and additions to or deletions from anticipated future production from new or existing wells and completed acquisitions coming on stream or failing to come on stream as well as completed dispositions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If, as of the last day of any calendar quarter, the notional volumes of all Swap Agreements then in effect in respect of commodities for such calendar quarter (other than the notional volumes of (x) puts, options, or floors with respect to which neither the Note Parties nor any Restricted Subsidiaries have any payment obligation other than premiums and other charges (it being understood that the payment of such obligations may be deferred but that the total

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amount of which are fixed and known at the time such transaction is entered into) and (y) basis differential swaps on volumes already hedged pursuant to other Swap Agreements for Hydrocarbons) exceed 100% of actual production of Hydrocarbons in such calendar quarter for oil, gas and natural gas liquids, calculated separately, then the Note Parties (i) shall promptly send notice to the Agent (for distribution to the Holders) and (ii) shall, within ten (10) Business Days of such determination, enter into offsetting Swap Agreements or terminate or unwind such Swap Agreements such that, at such time, future hedging volumes will not exceed 100% of reasonably anticipated projected production for the then-current and any succeeding calendar quarters for oil, gas and natural gas liquids, calculated separately.

**Section 7.14** <u>Designation and Conversion of Restricted and Unrestricted Subsidiaries</u>. Notwithstanding anything to the contrary contained herein or any other Note Document, no Note Party may designate any Restricted Subsidiary, including a newly formed or newly acquired Subsidiary, as an Unrestricted Subsidiary.

**Section 7.15** <u>Organizational Documents</u>. Neither the Issuer nor any Restricted Subsidiary shall amend, modify or change its Organizational Documents, including the operating agreement, in any manner materially adverse to the rights or interests of the Holders (it being understood that (a) any amendment, modification or change of Organizational Documents that would impair or restrict the Liens of the Secured Parties on the Equity Interests of such Persons or their value (including after foreclosure), or the ability of the Secured Parties to exercise their rights and remedies with respect thereto under the Collateral Documents and (b) any amendment, modification or change, or waiver or consent to Section 4(b), Section 5, Section 6 and any provision relating to the assignment or termination thereof of the Amended and Restated Certificate of Designations of Preferred Stock of WhiteHawk Income Corporation, (c) Section 5, Section 6(a) and Section 6(b) of the Certificate of Designations of Series B Preferred Stock of WhiteHawk Income Corporation and (d) Section 6.04 or any provision relating to the pledge of equity in the Issuer's bylaws, in each shall be materially adverse to the rights and interests of the Holders).

**Section 7.16** <u>Changes in Fiscal Year</u>. The Note Parties shall not, and shall not permit any Restricted Subsidiary to have its Fiscal Year end on a date other than December 31 or change its method of determining Fiscal Quarters.

**Section 7.17** <u>Amendments to Material Agreements</u>. Neither the Issuer nor any Restricted Subsidiary shall amend, modify or change, or waive or consent to an amendment or modification of any material provision to, the Investment Management Agreement, the Administrative Services Agreement or any DST Agreement, in each case in any manner materially adverse to the rights or interests of the Holders (it being understood that any amendment, modification or change, or waiver or consent to (x) Sections 4(a), (b) and (c) of the Investment Management Agreement or (y) Section 5.5, Article 7, Article 9 and Article 10 of the Initial Trust Agreement (and equivalent sections and articles of any other Trust Agreement) shall be deemed materially adverse to the rights and interests of the Holders).

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**Section 7.18** <u>General and Administrative Costs</u>. The Note Parties shall not, and shall not permit any of their Restricted Subsidiaries to, make, directly or indirectly any payments in respect of General and Administrative Costs in any Fiscal Year other than cash payments which, when aggregated with all other General and Administrative Costs paid in cash by the Note Parties or any of the Restricted Subsidiaries during such Fiscal Year, do not exceed $6,500,000 in the aggregate; <u>provided</u> that, for the purposes of this <u>Section 7.18</u> only, one-time transaction-related expenses incurred in connection with any amendment to the Note Purchase Agreement or any acquisition permitted hereunder (whether structured as an acquisition, a merger, or otherwise), in each case, shall not constitute General and Administrative Costs.

**ARTICLE VIII.** 

**PASSIVE HOLDING COMPANY STATUS OF THE ISSUER** 

Commencing on the Closing Date and until Payment in Full, the Issuer covenants and agrees with the Holders that it will not create, incur, assume or suffer to exist any Debt other than the Obligations or Lien other than Liens securing the Obligations, nor will it engage at any time in any business or business activity or hold or own any Property other than (a) the ownership of Equity Interests in WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC, (b) performance of its obligations under and in connection with the Note Documents, (c) issuing, selling and redeeming its Equity Interests, (d) paying Taxes in the ordinary course of business, (e) holding directors' and shareholders' meetings, preparing corporate and similar records and other activities (including the ability to incur fees, costs and expenses relating to such maintenance) required to maintain its corporate or other legal structure or to participate in tax, accounting or other administrative matters as a member of the consolidated group of the Issuer and its Subsidiaries, (f) preparing reports to, and preparing and making notices to and filings with, Governmental Authorities and to its holders of Equity Interests, (g) receiving, and holding proceeds of, Restricted Payments from its Subsidiaries and distributing the proceeds thereof to the extent not prohibited by <u>Sections 7.04</u> and <u>7.10</u>, (h) activities required by Governmental Requirements and (i) activities incidental to the business or activities described in each foregoing clauses of this <u>Article VIII</u>. The Issuer shall at all times pledge all of the Equity Interests of WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC (and shall, if such Equity Interests are certificated deliver to the Collateral Agent original stock certificates evidencing the Equity Interests of WhiteHawk Income Marcellus LLC and WhiteHawk Income Haynesville LLC, together with appropriate undated stock powers for each certificate duly executed in blank by the Issuer).

**ARTICLE IX.** 

**EVENTS OF DEFAULT; REMEDIES** 

**Section 9.01** <u>Events of Default</u>. In case of the happening of any of the following events ("**Events of Default**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Note Parties shall fail to pay any principal of (or associated make-whole or premium on) any Note when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof, by acceleration or otherwise;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Note Parties shall fail to pay any interest on any Note or any fee or any other amount (other than an amount referred to in <u>Section 9.01(a)</u>) payable under any Note Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any representation or warranty made or deemed made by or on behalf of the Note Parties or any Restricted Subsidiary in or in connection with any Note Document or any amendment or modification of any Note Document or waiver under such Note Document, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with any Note Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made (or if already qualified by materiality or Material Adverse Effect, incorrect in any respect when made or deemed made);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (i) the Note Parties or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in <u>Sections 6.01(k)</u>, <u>6.01(o)</u>, <u>6.01(u)</u>, <u>6.02</u>, <u>6.03</u> (solely in respect of the Issuer), <u>6.13</u>, <u>6.16</u>, <u>6.19</u>, or <u>Article VII</u> or (ii) the Issuer shall fail to observe or perform any covenant, condition or agreement contained in <u>Article VIII-A</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Note Parties or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement (i) contained in <u>Section 6.11</u>, and such failure shall continue unremedied for a period of twenty-five (25) days or (ii) otherwise contained in this Agreement (other than those specified in <u>Sections 9.01(a)</u>, <u>9.01(b)</u>, <u>9.01(d)</u>, or <u>9.01(e)(i)</u>) or in any other Note Document to which it is a party, and such failure shall continue unremedied for a period of thirty (30) days, in each case after the earlier to occur (i) notice thereof from the Agent to the Issuer (which notice will be given at the request of any Holder) or (ii) a Responsible Officer of the Issuer or such Restricted Subsidiary otherwise becoming aware of such default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Note Parties or any Restricted Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Debt, when and as the same shall become due and payable and such failure continues beyond any applicable grace period set forth in such Material Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any event or condition occurs (including the termination of any Swap Agreement prior to its scheduled maturity as a result of an "Event of Default" or "Termination Event" (as such terms are defined in the relevant Swap Agreement)) that results in any Material Debt becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Debt or any trustee or agent on its or their behalf to cause any Material Debt to become due (other than by a regularly scheduled required prepayment), or to require the Redemption thereof or any offer to Redeem to be made in respect thereof, prior to its scheduled maturity or require the Note Parties or any Restricted Subsidiary to make an offer in respect thereof (other than any event requiring prepayment pursuant to customary asset sale or change of control provisions);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Note Parties or any Restricted Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Note Parties or any Restricted Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Note Party or any Restricted Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in <u>Section 9.01(h)</u>, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for a Note Party or any Restricted Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) (i) one (1) or more judgments or settlements (or order by a Governmental Authority) for the payment of money (as reduced by (x) insurance proceeds covering such settlements, judgments or orders which are received or as to which the relevant insurance carriers have been notified of, and have not disputed coverage and (y) the amount by which such liability is cash collateralized and bonded) in an aggregate amount in excess of $2,000,000 shall be rendered against any Note Party, any Restricted Subsidiary or any combination thereof, and (A) there shall be a period of thirty (30) consecutive days during which the execution of such judgment or order is not subject to an effective stay of enforcement, or (B) action is legally taken by a judgment creditor or judgment creditors or the applicable Governmental Authority to attach or levy upon any assets of a Note Party or any of its Restricted Subsidiaries to enforce any such judgment or order, or (ii) one (1) or more non-monetary judgments or orders shall be rendered against any Note Party or Restricted Subsidiary which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, and there shall be a period of thirty (30) consecutive days during which such judgment is not subject to an effective stay of enforcement, by reason of a pending appeal or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Note Documents after delivery thereof shall for any reason, except to the extent permitted by the terms thereof, cease to be in full force and effect and valid, binding and enforceable in accordance with their terms against the Issuer or a Guarantor party thereto or shall be repudiated by any of them, or cease to create a valid and perfected first priority Lien in favor of the Collateral Agent on any material portion of the Collateral purported to be covered thereby, except to the extent permitted by the terms of this Agreement, or the Note Parties or any Restricted Subsidiary or any of their Affiliates shall so state or assert in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) a Change in Control shall occur and the Issuer fails to pay the Redemption Payment when due or otherwise consummate a redemption of the Notes as required by <u>Section 2.09(h)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) an ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in liability of the Note Parties and their Restricted Subsidiaries in an aggregate amount exceeding $2,000,000 that is not covered by independent third party insurance provided by insurers of the highest claims paying rating or financial strength as to which the insurer does not dispute coverage and is not subject to an insolvency proceeding;

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then, and in every such event (other than an event with respect to a Note Party or its Subsidiaries described in <u>paragraph (h)</u> or <u>(i)</u> above), and at any time thereafter during the continuance of such event, the Agent shall, at the direction of the Requisite Holders, by notice to the Issuer, take either or both of the following actions, at the same or different times: (i) terminate the Commitments and thereupon the Commitments shall terminate immediately and (ii) declare the Notes then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), whereupon the principal of the Notes so declared to be due and payable, together with accrued interest thereon, any unpaid accrued fees, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, and all other liabilities of the Issuer or any other Note Party accrued hereunder and under any other Note Document, shall become due and payable immediately, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Issuer and the other Note Parties, anything contained herein or in any other Note Document to the contrary notwithstanding; and in any event with respect to any Note Party or its Subsidiaries described in <u>paragraph (h)</u> or <u>(i)</u> above, the Commitments shall automatically terminate and the principal of the Notes then outstanding, together with accrued interest thereon, any unpaid accrued fees, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or other amount due and payable pursuant to <u>Section 2.11(g)</u>, and all other liabilities of the Issuer or any other Note Party accrued hereunder and under any other Note Document, shall automatically become due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Issuer and the other Note Parties, anything contained herein or in any other Note Document to the contrary notwithstanding. In the case of the occurrence of an Event of Default, the Agents and the Holders will have all other rights and remedies available at law and equity. All proceeds realized from the liquidation or other disposition of Collateral or otherwise received after maturity of the Notes, whether by acceleration or otherwise, shall be applied in the order provided in <u>Section 2.11(f)</u>.

**Section 9.02** <u>Treatment of Make-Whole Amount and Prepayment Fee</u>. Without limiting the terms of the last paragraph of <u>Section 9.01</u>, it is understood and agreed that (a) if the Notes are accelerated or otherwise become due, in each case, in respect of any Event of Default (including, but not limited to, upon the occurrence of a bankruptcy or insolvency related event (including acceleration of claims by operation of law)) or (b) upon the occurrence of the Board of Directors (or similar Governing Body or any committee thereof) of any Note Party or of any Person having Control of the Issuer adopting any resolution or otherwise authorizing any action to approve any bankruptcy or insolvency related event (each of the foregoing in <u>clauses (a)</u> and <u>(b)</u> and as contemplated by the penultimate paragraph of this paragraph, a "Specified Event"), the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, that would have applied if, at the time the Notes are accelerated or otherwise become due, the Issuer had prepaid, repaid, Redeemed, refinanced, substituted or replaced all of the Notes as contemplated in <u>Section 2.08</u> and <u>2.11(g)</u> will also be automatically and immediately due and payable without further action or notice and the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or shall

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constitute part of the Obligations, in view of the impracticability and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of the Holders' damages as a result thereof. Any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee payable hereunder shall be presumed to be the liquidated damages (and not, for avoidance of doubt, unmatured interest or a penalty) sustained by the Holders as the result of such Specified Event and the Issuer and the other Note Parties agree that the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) and Prepayment Fee, as applicable, are reasonable under the circumstances currently existing. In the event that the Obligations are reinstated in connection with or following any Specified Event, it is understood and agreed that the Obligations shall include any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, payable in accordance with this <u>Section 9.02</u>. The Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, shall also be payable in the event the Obligations (and/or this Agreement) are satisfied or released by foreclosure (whether by power of judicial proceeding), deed in lieu of foreclosure or by any other similar means.

THE ISSUER AND EACH OTHER NOTE PARTY EXPRESSLY WAIVES (TO THE FULLEST EXTENT IT MAY LAWFULLY DO SO) THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW THAT PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING MAKE-WHOLE AMOUNT (<u>PLUS</u> ANY PREMIUM PAYABLE IN CONNECTION THEREWITH) OR PREPAYMENT FEE IN CONNECTION WITH ANY SUCH SPECIFIED EVENT.

The Issuer and each other Note Party expressly agrees (to the fullest extent that it may lawfully do so) that: (i) the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) and Prepayment Fee, as applicable, are reasonable and are the product of an arm's length transaction between sophisticated business people, ably represented by counsel; (ii) the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, or shall be payable notwithstanding the then prevailing market rates at the time payment is made; (iii) there has been a course of conduct between the Holders and the Issuer and the other Note Parties giving specific consideration in this transaction for such agreement to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable; and (iv) the Issuer and each other Note Party shall each be estopped hereafter from claiming differently than as agreed to in this paragraph.

The Issuer and each other Note Party expressly acknowledges that its agreement to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or Prepayment Fee, as applicable, to the Holders as herein described is a material inducement to the Holders to provide the Commitments and purchase the Notes.

**Section 9.03** <u>Application of Funds</u>. All proceeds realized from the liquidation or other disposition of Collateral or otherwise received after maturity of the Notes, whether by acceleration or otherwise, shall be applied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>first</u>, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to each of the Agent and the Collateral Agent in their capacities as such and Agent-related Indemnitee (including any costs and expenses related to foreclosure or realization upon, or protecting, Collateral);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>second</u>, pro rata to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Holders and the other Indemnitees listed under <u>Section 11.03</u> under the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>third</u>, pro rata to payment of accrued Interest (including interest at the Default Rate, if any) on the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>fourth</u>, pro rata to pay the Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or other amount due and payable pursuant to <u>Section 2.11(g)</u> or <u>Section 9.02</u>, if any, on the Notes (including, for the avoidance of doubt, any Make-Whole Amount (<u>plus</u> any premium payable in connection therewith) or other amount due and payable pursuant to <u>Section 2.11(g)</u> or <u>Section 9.02</u> resulting from the payment of principal under <u>clause fifth</u> below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>fifth</u>, pro rata to payment of principal outstanding on the Notes which have not yet been reimbursed by or on behalf of the Note Parties at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>sixth</u>, pro rata to any other Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>seventh</u>, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Note Parties or as otherwise required by any Governmental Requirement.

**Section 9.04** <u>Credit Bidding</u>. In addition to any other rights and remedies granted to the Agents and the Holders in the Note Documents, the Collateral Agent (acting at the direction of the Requisite Holders) on behalf of the Holders may exercise all rights and remedies of a secured party under the UCC or any other applicable law. Without limiting the generality of the foregoing, the Collateral Agent (acting at the direction of the Requisite Holders), without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Note Party or any other Person (all and each of which demands, defenses, advertisements and notices are hereby waived by each of the Note Parties on behalf of itself and its Subsidiaries), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, or consent to the use by any Note Party of any cash collateral arising in respect of the Collateral on such terms as the Collateral Agent deems reasonable, and/or may forthwith sell, lease, assign give an option or options to purchase or otherwise dispose of and deliver, or acquire by credit bid on behalf of the Holders, the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales (including, without limitation, any sale conducted under the provisions of the Code, including under Sections 363, 1123 or 1129 of the Code, or any similar laws in any other jurisdictions to which a Note Party is subject), at any exchange, broker's board or office of the Collateral Agent or any Holder or elsewhere, upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery, all without assumption of any credit risk. In connection with any such credit bid and purchase, the Obligations owed to the Holders shall be entitled to

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be, and shall be, credit bid by the Collateral Agent at the direction of the Requisite Holders on a ratable basis (with Obligations with respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that shall vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) for the asset or assets so purchased (or for the equity interests or debt instruments of the acquisition vehicle or vehicles that are issued in connection with such purchase). In connection with any such bid (i) the Collateral Agent shall be authorized to form one or more acquisition vehicles and to assign any successful credit bid to such acquisition vehicle or vehicles, (ii) each of the Holders' ratable interests in the Obligations which were credit bid shall be deemed without any further action under this Agreement to be assigned to such vehicle or vehicles for the purpose of closing such sale, (iii) the Collateral Agent shall be authorized to adopt documents providing for the governance of the acquisition vehicle or vehicles (<u>provided</u> that any actions by the Collateral Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or equity interests thereof, shall be governed, directly or indirectly, by, and the governing documents shall provide for, control by the vote of the Requisite Holders or their permitted assignees under the terms of the Note Documents or the governing documents of the applicable acquisition vehicle or vehicles, as the case may be, irrespective of the termination of the Note Documents and without giving effect to the limitations on the actions by the Requisite Holders contained <u>Section 11.06</u>), (iv) the Collateral Agent on behalf of such acquisition vehicle or vehicles shall be authorized to issue to each of the Holders, ratably on account of the relevant Obligations which were credit bid, interests, whether as equity, partnership, limited partnership interests or membership interests, in any such acquisition vehicle and/or debt instruments issued by such acquisition vehicle, all without the need for any Holder or acquisition vehicle to take any further action, and (v) to the extent that Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any reason (as a result of another bid being higher or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of Obligations credit bid by the acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Holders pro rata with their original interest in such Obligations and the equity interests and/or debt instruments issued by any acquisition vehicle on account of such Obligations shall automatically be cancelled, without the need for any Holder or any acquisition vehicle to take any further action. Notwithstanding that the ratable portion of the Obligations of each Holder are deemed assigned to the acquisition vehicle or vehicles as set forth in <u>clause (ii)</u> above, each Holder shall execute such documents and provide such information regarding the Holder (and/or any designee of the Holder which will receive interests in or debt instruments issued by such acquisition vehicle) as the Collateral Agent acting at the direction of the Requisite Holders, may reasonably request in connection with the formation of any acquisition vehicle, the formulation or submission of any credit bid or the consummation of the transactions contemplated by such credit bid. The Collateral Agent or any Holder shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in any Note Party, which right or equity is hereby waived and released by each of the Note Parties on behalf of itself and its Subsidiaries. Each of the Note Parties further agrees on behalf of itself and its Subsidiaries, at the Collateral Agent's request, to assemble the Collateral and make it available to the Collateral Agent at places which the Collateral Agent shall reasonably select, whether at the premises of the Issuer, another Note Party or elsewhere. The Collateral Agent shall apply the

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net proceeds of any action taken by it pursuant to this <u>Section 9.04</u>, after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any other way relating to the Collateral or the rights of the Agents and the Holders hereunder, including reasonable attorneys' fees and disbursements, to the payment in whole or in part of the obligations of the Note Parties under the Note Documents, in such order as the Collateral Agent may elect, and only after such application and after the payment by the Collateral Agent of any other amount required by any provision of law, including Section 9-615(a)(3) of the UCC, need the Collateral Agent account for the surplus, if any, to any Note Party. To the extent permitted by applicable law, each of the Note Parties on behalf of itself and its Subsidiaries waives all claims, damages and demands it may acquire against the Agents or any Holder arising out of the exercise by them of any rights hereunder. If any notice of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least ten (10) days before such sale or other disposition. Notwithstanding anything provided in this <u>Section 9.04</u>, the Collateral Agent may delegate any or all of its rights to credit bid under this Section, this Agreement and the other Note Documents to EIG or the Requisite Holders or their designee, who will act as "Agent" or "Collateral Agent" for purposes of this <u>Section 9.04</u>.

**ARTICLE X.** 

**AGENTS** 

**Section 10.01** <u>Appointment of Agents</u>. U.S. Bank Trust Company, National Association is hereby appointed Agent and Collateral Agent hereunder and under the other Note Documents and each Holder hereby authorizes U.S. Bank Trust Company, National Association, in such capacities, to act as its agent (including as collateral agent) in accordance with the terms hereof and the other Note Documents. Each Agent hereby agrees to act upon the express conditions contained herein and the other Note Documents, as applicable. The provisions of this <u>Article X</u> are solely for the benefit of the Agents and the Holders and no Note Party shall have any rights as a primary or third party beneficiary of any of the provisions thereof, except as expressly set forth herein. In performing its functions and duties hereunder, each Agent shall act solely as an agent of the Holders and does not assume and shall not be deemed to have assumed any obligation towards or relationship of agency or trust with or for any Note Party or any Affiliate thereof.

**Section 10.02** <u>Powers and Duties</u>. Each Holder irrevocably authorizes each Agent to take such action on such Holder's behalf and to exercise such powers, rights and remedies and perform such duties hereunder and under the other Note Documents as are specifically delegated or granted to each Agent by the terms hereof and thereof, together with such actions, powers, rights and remedies as are reasonably incidental thereto. Each Agent shall have only those duties and responsibilities that are expressly specified herein and the other Note Documents. Without limiting the generality of the foregoing, each Agent shall not have or be deemed to have, by reason hereof or any of the other Note Documents, a fiduciary relationship in respect of any Holder, any Note Party or any other Person, whether before or after the occurrence of any Default or Event of Default; and nothing herein or any of the other Note Documents, expressed or implied, is intended to or shall be so construed as to impose upon either Agent any obligations in respect hereof or any of the other Note Documents except as expressly set forth herein or therein. The use of the term "agent" herein and in the other Note Documents with reference to

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any Agent is not intended to connote any fiduciary or the other implied (or express) obligations arising under agency doctrine of any applicable law; rather, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. Neither Agent is, and shall not be deemed to be, acting hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

**Section 10.03** <u>General Immunity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Responsibility for Certain Matters</u>. Neither Agent shall be responsible for the execution, effectiveness, genuineness, validity, enforceability, collectability or sufficiency hereof or any other Note Document or for any representations, warranties, recitals or statements made herein or therein or made in any written or oral statements or in any financial or other statements, instruments, reports or certificates or any other documents furnished or made by either Agent or by or on behalf of any Note Party to an Agent or any Holder in connection with the Note Documents and the transactions contemplated hereby and thereby or for the financial condition or business affairs of any Note Party or any other Person liable for the payment of any Obligations, nor shall either Agent be required to ascertain or inquire as to the performance or observance of any of the terms, conditions, provisions, covenants or agreements contained in any of the Note Documents or as to the use of the proceeds of the Notes or as to the existence or possible existence of any Event of Default or Default or to make any disclosures with respect to the foregoing. Neither Agent shall be responsible for the satisfaction of any condition set forth in <u>Article III</u> or elsewhere in any Note Document, other than to confirm receipt of items expressly required to be delivered to such Agent. Neither Agent will be required to take any action that is contrary to applicable law or any provision of this Agreement or any Note Document or that may expose it to personal liability for which it is not indemnified. Anything contained herein to the contrary notwithstanding, neither Agent shall have any liability arising from confirmations of the amount of outstanding Notes or the component amounts thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exculpatory Provisions</u>. Subject to the remainder of this <u>clause (b)</u> hereof further limiting the liability of the Agents, neither Agent nor any of their officers, partners, directors, employees or agents shall be liable for any action taken or omitted by an Agent under or in connection with any of the Note Documents, except to the extent caused by such Agent's gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final, nonappealable order. Each Agent shall be entitled to refrain from any act or the taking of any action (including the failure to take an action) in connection herewith or any of the other Note Documents or from the exercise of any power, discretion or authority vested in it hereunder or thereunder, except powers and authority expressly contemplated hereby or thereby, unless and until such Agent shall have received written instructions in respect thereof from Requisite Holders (or such other Holders as may be required to give such instructions under <u>Section 11.06</u>) or in accordance with the applicable Note Document, and, upon receipt of such instructions from Requisite Holders (or such other Holders, as the case may be), or in accordance with the other applicable Note Document, as the case may be, such Agent shall act or (where so instructed) refrain from acting, or to exercise or refrain from exercising such power, discretion or authority, in accordance with such instructions. The permissive rights of each Agent hereunder and under the other Note Documents shall not be construed as duties. Without prejudice to the generality of the foregoing, (i) each Agent shall be entitled to rely, and shall be fully protected in relying and

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free from liability in relying, upon any communication, instrument, document, judgment, order or decree believed by it to be genuine and correct and to have been signed or sent by the proper Person or Persons, and shall be entitled to rely and shall be protected and free from liability in relying on opinions, advice and judgments of attorneys (who may be attorneys for the Note Parties), accountants, experts and other professional advisors selected by it; (ii) no Holder shall have any right of action whatsoever against an Agent as a result of such Agent acting or (where so instructed) refraining from acting hereunder or any of the other Note Documents in accordance with the instructions of Requisite Holders (or such other Holders as may be required to give such instructions under <u>Section 11.06</u>) or in accordance with the applicable Note Document; and (iii) neither Agent shall be liable for any action taken, or errors in judgment made, in good faith by it or any of its officers, employees or agents, unless such Agent shall have been grossly negligent in ascertaining the pertinent facts. Each Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Note Document unless such Agent shall first receive such advice or concurrence of the Requisite Holders or the Holders (as the case may be, as required by this Agreement), accompanied by, if requested, indemnity satisfactory to such Agent, and until such instructions and indemnity (if any) are received, each Agent shall have no duty to act, or refrain from acting, and shall have no liability to any Holder, any Note Party or any other Person for so doing. If an Agent so requests, it shall first be indemnified to its satisfaction by the Holders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. Each Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Note Document in accordance with a request or consent of the Requisite Holders and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Holders. No provision of this Agreement or any other Note Document or any agreement or instrument contemplated hereby or thereby, the Transactions contemplated hereby or thereby shall require an Agent to: (i) expend or risk its own funds or provide indemnities in the performance of any of its duties hereunder or the exercise of any of its rights or power or (ii) otherwise incur any financial liability in the performance of its duties or the exercise of any of its rights or powers. Neither Agent shall be responsible for (i) perfecting, maintaining, monitoring, preserving or protecting the security interest or Lien granted under this Agreement, any other Note Document or any agreement or instrument contemplated hereby or thereby, (ii) the filing, re-filing, recording, re-recording or continuing of any document, financing statement, continuation statement, amendment, mortgage, assignment, notice, instrument of further assurance or other instrument in any public office at any time or times, or (iii) providing, maintaining, monitoring or preserving insurance on or the payment of Taxes with respect to any of the Collateral. The actions described in <u>clauses (i)</u> through <u>(iii)</u> of the immediately preceding sentence shall be the responsibility of the Holders and the Note Parties. Neither Agent shall be required to qualify in any jurisdiction in which it is not presently qualified to perform its obligations as an Agent. Each Agent has accepted and is bound by the Note Documents executed by such Agent as of the date of this Agreement and, as directed in writing by the Requisite Holders, each Agent shall execute additional Note Documents delivered to it after the date of this Agreement; <u>provided</u>, <u>however</u>, that such additional Note Documents do not adversely affect the rights, privileges, benefits, immunities and indemnities of the Agents, in which case, the Agents may, but shall not be obligated to, enter into such Note Documents. Neither Agent will otherwise be bound by, or be held obligated by, the provisions of any loan agreement, indenture or other agreement governing the Obligations (other than this Agreement and the other Note Documents

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to which such Agent is a party). No written direction given to an Agent by the Requisite Holders or any Note Party that in the sole judgment of such Agent imposes, purports to impose or might reasonably be expected to impose upon such Agent any obligation or liability not set forth in or arising under this Agreement and the other Note Documents will be binding upon an Agent unless such Agent elects, at its sole option, to accept such direction. Neither Agent shall be responsible or liable for any failure or delay in the performance of its obligations under this Agreement or the other Note Documents arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of God; earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics; riots; business interruptions; loss or malfunctions of utilities, computer (hardware or software) or communication services; accidents; labor disputes; acts of civil or military authority and governmental action. Beyond the exercise of reasonable care in the custody of the Collateral in the possession or control of the Collateral Agent or its bailee, the Collateral Agent will not have any duty as to any other Collateral or any income thereon or as to preservation of rights against prior parties or any other rights pertaining thereto. The Collateral Agent will be deemed to have exercised reasonable care in the custody of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which it accords its other corporate trust customers, and the Collateral Agent will not be liable or responsible for any loss or diminution in the value of any of the Collateral by reason of the act or omission of any carrier, forwarding agency or other agent or bailee selected by the Collateral Agent in good faith. Neither Agent shall be responsible for or have any duty to ascertain or inquire into (1) any statement, warranty or representation made in or in connection with this Agreement or any other Note Document, (2) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith or (3) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default or Event of Default. Neither Agent will be responsible for the existence, genuineness or value of any of the Collateral or for the validity, perfection, priority or enforceability of the Liens in any of the Collateral, whether impaired by operation of law or by reason of any action or omission to act on its part hereunder, for the validity or sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of the title of any grantor to the Collateral, for insuring the Collateral or for the payment of Taxes or Liens upon the Collateral or otherwise as to the maintenance of the Collateral. Each Agent hereby disclaims any representation or warranty to the present and future holders of the Obligations concerning the perfection of the Liens granted hereunder or in the value of any of the Collateral. In the event that either Agent is required to acquire title to an asset for any reason, or take any managerial action of any kind in regard thereto, in order to carry out any obligation for the benefit of another, which in any Agent's sole discretion may cause such Agent to be considered an "owner or operator" under any Environmental Laws or otherwise cause such Agent to incur, or be exposed to, any Environmental Liability or any liability under any other Governmental Requirement, each Agent reserves the right, instead of taking such action, either to resign as an Agent or to arrange for the transfer of the title or control of the asset to a court appointed receiver. Neither Agent will be liable to any person for any Environmental Liability or any Environmental Claims or contribution actions under any Governmental Requirement by reason of such Agent's actions and conduct as authorized, empowered and directed hereunder or relating to any kind of discharge or Release or threatened discharge or Release of any Hazardous Materials into the environment at any property or facility that any Agent is required to acquire title to hereunder.

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Each Holder authorizes and directs each Agent to enter into this Agreement and the other Note Documents to which it is a party. Each Holder agrees that any action taken by an Agent or Requisite Holders in accordance with the terms of this Agreement or the other Note Documents and the exercise by an Agent or Requisite Holders of their respective powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice of Default</u>. Neither Agent shall be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to Events of Default in the payment of principal, interest and fees required to be paid to each Agent for the account of the Holders, unless each Agent shall have received written notice from a Holder or the Issuer in accordance with the notice requirements of <u>Section 11.01</u> herein referring to this Agreement, describing such Default or Event of Default and stating that such notice is a "notice of default." Agent will notify the Holders of its receipt of any such notice. Neither Agent shall have any liability for any interest rate published by any publication that is the source for determining the interest rates of the Notes, including but not limited to the SOFR Administrator's Website (or any successor source), or for any rates compiled by the CME Term SOFR Administrator or any successor thereto, or for any rates published on any of the foregoing cases for any delay, error or inaccuracy in the publication of any such rates, or for any subsequent correction or adjustment thereto.

**Section 10.04** <u>Holders' Representations, Warranties and Acknowledgment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Holder represents and warrants to each Agent that it has made its own independent investigation of the financial condition and affairs of each Note Party, without reliance upon either Agent or any other Holder and based on such documents and information as it has deemed appropriate, in connection with Note Purchases hereunder and that it has made and shall continue to make its own appraisal of the creditworthiness of each Note Party. Neither Agent shall have any duty or responsibility, either initially or on a continuing basis, to make any such investigation or any such appraisal on behalf of the Holders or to provide any Holder with any credit or other information with respect thereto, whether coming into its possession before the purchase of the Notes or at any time or times thereafter, and neither Agent shall have any responsibility with respect to the accuracy of or the completeness of any information provided to the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Holder, by delivering its signature page to this Agreement, an Assignment Agreement or a joinder agreement and funding its Note, shall be deemed to have acknowledged receipt of, and consented to and approved, each Note Document and each other document required to be approved by each Agent, Requisite Holders or Holders, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Holder hereby agrees that (i) if any Agent notifies such Holder that such Agent has determined in its sole discretion that any funds received by such Holder from such Agent or any of its Affiliates (whether as a payment, prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, a "**Payment**") were erroneously transmitted to such Holder (whether or not known to such Holder), and demands the return of such Payment (or a portion thereof), such Holder shall promptly, but in no event later than one Business Day thereafter, return to such Agent the amount of any such Payment (or portion

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thereof) as to which such a demand was made in same day funds, and (ii) to the extent permitted by applicable law, such Holder shall not assert, and hereby waives, as to such Agent, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by such Agent for the return of any Payments received, including without limitation any defense based on "discharge for value" or any similar doctrine. A notice of any Agent to any Holder under this <u>Section 10.04</u> shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Holder hereby further agrees that if it receives a Payment from an Agent or any of its Affiliates (i) that is in a different amount than, or on a different date from, that specified in a notice of payment sent by such Agent (or any of its Affiliates) with respect to such Payment (a "**Payment Notice**") or (ii) that was not preceded or accompanied by a Payment Notice, it shall be on notice, in each such case, that an error has been made with respect to such Payment, and to the extent permitted by applicable law, such Holder shall not assert any right or claim to the Payment, and hereby waives, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by such Agent for the return of any Payments received, including without limitation waiver of any defense based on "discharge for value" or any similar doctrine. Each Holder agrees that, in each such case, or if it otherwise becomes aware that a Payment (or portion thereof) may have been sent in error, such Holder shall promptly notify such Agent of such occurrence and, upon demand from such Agent, it shall promptly, but in no event later than three (3) Business Days thereafter, return to such Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Issuer and each other Note Party hereby agrees that (i) in the event an erroneous Payment (or portion thereof) are not recovered from any Holder that has received such Payment (or portion thereof) for any reason, the Agents shall be subrogated to all the rights of such Holder with respect to such amount and (ii) an erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Issuer or any other Note Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each party's obligations under this <u>Section 10.04</u> shall survive the resignation or replacement of the Agents or any transfer of rights or obligations by, or the replacement of, a Holder, the termination of the Commitments or the repayment, satisfaction or discharge of all Obligations under any Note Document.

**Section 10.05** <u>Successor Agents</u>. Subject to the appointment and acceptance of a successor Agent as provided in this <u>Section 10.05</u>, either Agent may resign at any time by giving thirty (30) days' prior written notice thereof to the Requisite Holders, and the Issuer. Any Agent may be removed as an Agent at the request of the Requisite Holders. Upon any such notice of resignation or removal, Requisite Holders shall have the right (with the consent of the Issuer (not to be unreasonably withheld, delayed or conditioned) unless an Event of Default shall have occurred and is continuing), to appoint a successor Agent; <u>provided</u> that such successor Agent shall be a nationally-recognized third party agent for similarly situated financings. If no successor shall have been so appointed by the Requisite Holders and shall have accepted such appointment within thirty (30) days after the retiring Agent gives notice of its resignation, then the retiring Agent's resignation shall nevertheless thereupon become effective and the Requisite Holders shall perform all of the duties of such Agent, as applicable, hereunder until such time, if any, as the Requisite Holders appoint a successor Agent as provided for above. In such case, the

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Requisite Holders shall appoint one Person to act as Agent for purposes of any communications with the Issuer, and until the Issuer shall have been notified in writing of such Person and such Person's notice address as provided for in <u>Section 11.01</u>, the Issuer shall be entitled to give and receive communications to/from the resigning Agent. Upon the acceptance of any appointment as Agent hereunder by a successor Agent and the payment of the outstanding fees and expenses of the resigning or removed Agent, at the Issuer's expense, that successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Agent and the retiring or removed Agent shall promptly (i) transfer to such successor Agent all sums and other items of Collateral held under the Collateral Documents, together with all records and other documents necessary or appropriate in connection with the performance of the duties of the successor Agent under the Note Documents, and (ii) execute and deliver to such successor Agent such amendments to financing statements, and take such other actions, as may be reasonably requested in connection with the assignment to such successor Agent of the security interests created under the Collateral Documents (the reasonable out-of-pocket expenses of which shall be borne by the Issuer), whereupon such retiring or removed Agent shall be discharged from its duties and obligations hereunder. After any retiring Agent's resignation or any Agent's removal hereunder as Agent or Collateral Agent, the provisions of this <u>Article X</u> and <u>Section 11.03</u> shall inure to its benefit as to any actions taken or omitted to be taken by it while it was an Agent hereunder. Any organization or other entity into which an Agent may be merged or converted or with which it may be consolidated, or any organization or other entity resulting from any merger, conversion or consolidation to which any Agent shall be a party, or any organization or other entity succeeding to all or substantially all of the corporate trust business of the Agents, shall be the successor to the Agents hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto.

**Section 10.06** <u>Delegation of Duties</u>. Each Agent may perform any and all of its duties and exercise its rights and powers under this Agreement or under any other Note Document by or through any one or more sub-agents appointed by such Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Affiliates. Neither Agent shall be responsible for the acts or omissions of its sub-agents so long as they are appointed with due care. The exculpatory, indemnification and other provisions of <u>Article X</u> and <u>Section 11.03</u> shall apply to any Affiliates of each Agent and shall apply to their respective activities in connection with the syndication of the Notes issued hereby. All of the rights, benefits and privileges (including the exculpatory and indemnification provisions) of <u>Article X</u> and <u>Section 11.03</u> shall apply to any such sub-agent and to the Affiliates of any such sub-agent, and shall apply to their respective activities as sub-agent.

**Section 10.07** <u>Collateral Documents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Agent under Collateral Documents</u>. Each Holder and other Indemnitee hereby further irrevocably authorizes the Collateral Agent, on behalf of and for the benefit of the Holders, to be the agent for and representative of Holders with respect to the Collateral Documents and to enter into such other agreements with respect to the Collateral (including intercreditor agreements) as it may deem necessary with the consent of the Requisite Holders. Subject to <u>Section 11.06</u>, the Collateral Agent may execute any documents or instruments necessary to (i) release any Lien encumbering any item of Collateral that is the subject of a sale or other disposition of assets permitted hereby and with respect to which release the Requisite

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Holders (or such other Holders as may be required to give such consent under <u>Section 11.06</u>) have consented or (ii) release any Guarantor from the Guarantee pursuant to the Guaranty Agreement with respect to which release the Requisite Holders (or such other Holders as may be required to give such consent under <u>Section 11.06</u>) have consented, in each case upon delivery by the Issuer to the Agent and Collateral Agent with a certificate of a Responsible Officer certifying that such release is authorized and permitted under by the Note Documents, and such other certifications or documents as the Agent or Collateral Agent (in each case, at the direction of the Requisite Holders) shall request. Whether or not expressly provided therein, the Agent and the Collateral Agent shall be entitled to all of the rights, privileges, immunities and indemnities provided in this Agreement in entering into and performing under the Collateral Documents and any other Note Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Right to Realize on Collateral and Enforce Guarantee</u>. Anything contained in any of the Note Documents to the contrary notwithstanding, the Issuer, the Agents and each Holder hereby agree that (i) no Holder shall have any right individually to realize upon any of the Collateral or to enforce any Guarantee or exercise any other remedy provided under the Note Documents (other than the right of set-off provided in <u>Section 11.04</u>), it being understood and agreed that all powers, rights and remedies hereunder may be exercised solely by the Collateral Agent (acting at the written direction of the Requisite Holders), on behalf of the Holders in accordance with the terms hereof and all powers, rights and remedies under this Agreement and the Collateral Documents may be exercised solely by the Collateral Agent (acting at the written direction of the Requisite Holders), and (ii) in the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale, the Collateral Agent or its nominee may be the purchaser of any or all of such Collateral at any such sale and the Collateral Agent, as agent for and representative of Holders (but not any Holder or Holders in its or their respective individual capacities unless the Requisite Holders shall otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the Obligations arising under the Note Documents as a credit on account of the purchase price for any collateral payable by the Collateral Agent at such sale.

**Section 10.08** <u>Posting of Approved Electronic Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Delivery of Communications</u>. Each Note Party hereby agrees, unless directed otherwise by an Agent or unless the electronic mail address referred to below has not been provided by an Agent to such Person, that it will provide to each Agent all information, documents and other materials that it is obligated to furnish to such Agent or to the Holders pursuant to the Note Documents, including all notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding any such communication that (i) is or relates to a Note Purchase Notice, (ii) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice of any Default or Event of Default under this Agreement or any other Note Document, or (iv) is required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement and/or any Note or other Note Purchase hereunder (all such non-excluded communications being referred to herein collectively as "**Communications**"), by transmitting the Communications in an electronic/soft medium that is properly identified in a format acceptable to the Issuer and each Agent to an electronic mail address as directed by each Agent. In addition, each Note Party agrees to continue to provide the Communications to each Agent or the Holders, as the case may be, in the manner specified in the Note Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Prejudice to Notice Rights</u>. Nothing herein shall prejudice the right of any Agent or any Holder to give any notice or other communication pursuant to any Note Document in any other manner specified in such Note Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>The Platform</u>. Each Note Party acknowledges that Agent will make available to Holders materials and/or information by posting such materials and/or information on IntraLinks/IntraAgency, Syndtrack or another similar electronic system (the "<u>Platform</u>"). THE PLATFORM IS PROVIDED "AS IS" AND "AS AVAILABLE." AGENT DOES NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE NOTE PARTIES' COMMUNICATIONS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIMS LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE NOTE PARTIES' COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. In no event shall Agent have any liability to the Note Parties, any Holder or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Note Parties' or the Agent's transmission of materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of Agent. In no event shall Agent have any liability for any damages arising from the use by others of any information or other materials obtained through the Platform.

**Section 10.09** <u>Proofs of Claim</u>. The Holders and each Note Party hereby agree that after the occurrence of an Event of Default pursuant to <u>Section 9.01(h)</u> or <u>9.01(i)</u>, in case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Note Party, Agent (acting at the direction of Requisite Holders) (irrespective of whether the principal of any Note shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether Agent shall have made any demand on any Note Party) shall be entitled and empowered, by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Notes and any other Obligations that are owing and unpaid and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Holders, the Agents and other agents (including any claim for the reasonable compensation, expenses, disbursements and advances of the Holders, the Agents and other agents and their agents and counsel and all other amounts due Holders, the Agents and other agents hereunder) allowed in such judicial proceeding; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, interim trustee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to Agent and, in the event that Agent shall consent to the making of such payments directly to the Holders, to pay to Agent and Collateral Agent, as applicable, any amount due for the compensation, expenses, disbursements and advances of each Agent, Collateral Agent and their agents and counsel, and any other amounts due Agents and other agents hereunder. Nothing herein contained shall be deemed to authorize any Agent to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Holders or to authorize any Agent to vote in respect of the claim of any Holder in any such proceeding. Further, nothing contained in this <u>Section 10.09</u> shall affect or preclude the ability of any Holder to (i) file and prove such a claim in the event that an Agent has not acted within ten (10) days prior to any applicable bar date and (ii) require an amendment of the proof of claim to accurately reflect such Holder's outstanding Obligations.

**Section 10.10** <u>Hedge Intercreditor Agreement</u>. Each Holder (and each Person that becomes a Holder hereunder pursuant to <u>Section 11.07</u>) hereby authorizes the Agent to enter into, join or otherwise become party to the Hedge Intercreditor Agreement on behalf of such Holder, in each case, as needed to effectuate the transactions permitted by this Agreement and agrees that the Agent may take such actions on its behalf as is contemplated by the terms of Hedge Intercreditor Agreement. Without limiting the provisions of <u>Section 10.02</u>, <u>11.02</u> and <u>11.03</u>, each Holder hereby consents to each of the Agent and any successor serving in such capacities and agrees not to assert any claim (including as a result of any conflict of interest) against the any Agent, or any such successor, arising from the role of any Agent or such successor under the Note Documents or any such intercreditor agreement so long as it is either acting in accordance with the terms of such documents and otherwise has not engaged in gross negligence or willful misconduct (as determined in a final and non-appealable judgment by a court of competent jurisdiction). In addition, the Agent and Collateral Agent, or any such successors, shall be authorized, with the consent of the Requisite Holders, to execute or to enter into amendments of, and amendments and restatements of, the Collateral Documents, the Hedge Intercreditor Agreement and any additional and replacement intercreditor agreements, as is contemplated by the terms of the Hedge Intercreditor Agreement.

**Section 10.11** <u>Indemnification</u>. To the extent that the Agents are not promptly reimbursed and indemnified by any Note Party, and after the Agents have made demand on any Note Party for the same, the Holders will, within five (5) days of written demand by the Agents, reimburse the Agents for, and indemnify and hold harmless the Agents from and against, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including client charges and expenses of counsel or any other advisor to Agents), advances or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against the Agents in any way relating to or arising out of this Agreement or any of the other Note Documents or any action taken or omitted by the Agents under this Agreement or any of the other Note Documents, in proportion to each Holder's Pro Rata Share; <u>provided</u>, <u>however</u>, that no Holder shall be liable for any portion of such liabilities, obligations, losses, damages,

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penalties, actions, judgments, suits, costs, expenses, advances or disbursements for which there has been a final non-appealable judicial determination that such liability resulted from such applicable Agent's gross negligence or willful misconduct. The obligations of the Holders under this Section 10.11 shall survive the Payment in Full of the Obligations, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

**ARTICLE XI.** 

**MISCELLANEOUS** 

**Section 11.01** <u>Notices</u>. Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given to a Note Party or the Agents, shall be sent to such Person's address as set forth on <u>Appendix B</u> or in the other relevant Note Document, and in the case of any Holder, the address as indicated on <u>Appendix B</u> or otherwise indicated to Agents in writing. Each notice hereunder shall be in writing and may be personally served, sent by telefacsimile, electronic transmission or United States certified or registered mail or courier service and shall be deemed to have been given when delivered and signed for against receipt thereof, or upon confirmed receipt of telefacsimile or electronic transmission (which confirmation shall be made by telephone call by the sender to the Agents; confirmation by electronic messaging shall not be deemed to be confirmation of receipt).

**Section 11.02** <u>Expenses</u>. Each Note Party shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Agents, the Holders and their Affiliates (including, without limitation, the reasonable fees, charges and disbursements of (A) one primary firm of counsel to the Holders, (B) one primary firm of counsel to the Agent and Collateral Agent, (C) one local counsel and one regulatory counsel in each relevant jurisdiction, if any and (D) reasonable travel, photocopy, mailing, courier, telephone and other similar expenses, in connection with the issuance of the Notes provided for herein, the preparation, negotiation, execution, delivery and administration (both before and after the execution hereof and including advice of counsel to the Agents and the Holders as to the rights and duties of any Agent and the Holders with respect thereto) of this Agreement and the other Note Documents and any amendments, modifications or waivers of or consents related to the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all costs, expenses, Taxes, assessments and other charges incurred by the Agents or any Holder in connection with any filing, registration, recording or perfection of any security interest contemplated by this Agreement or any Collateral Document or any other document referred to therein and (iii) all out-of-pocket expenses incurred by the Agents or any Holder, including the fees, charges and disbursements of counsel and other experts, in connection with the enforcement or protection of its rights in connection with this Agreement or any other Note Document, including its rights under this <u>Section 11.02</u>, or in connection with the Notes issued hereunder, including, without limitation, all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Notes. All amounts due under this <u>Section 11.02</u> shall be paid within thirty (30) days of receipt by the Issuer of an invoice. The agreements in this Section 11.02 shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

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**Section 11.03** <u>Indemnity; Limitation of Liability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to the payment of expenses pursuant to <u>Section 11.02</u>, whether or not any or all of the Transactions shall be consummated, each Note Party agrees to defend (subject to Indemnitees' selection of counsel), indemnify, pay and hold harmless, EIG, the Agents and each Holder, their Affiliates and its and their respective officers, members, shareholders, partners, directors, trustees, employees, advisors (including attorneys, accountants and experts), representatives and agents and each of their respective successors and assigns and each Person who controls any of the foregoing (each, an "**Indemnitee**"), from and against any and all Indemnified Liabilities, **IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY, OR SOLE NEGLIGENCE OF SUCH INDEMNITEE**; <u>provided</u> that, no Note Party shall have any obligation to an Indemnitee hereunder with respect to any Indemnified Liabilities if such Indemnified Liabilities arise from the gross negligence or willful misconduct of that Indemnitee as determined by a court of competent jurisdiction in a final, nonappealable order, <u>provided</u> that no Note Party shall indemnify any Holder or its related Indemnitee for claims solely among the Holders (or any combination thereof) to the extent not related to a breach of an obligation of a Note Party as determined by a court of competent jurisdiction by final and nonappealable judgement. To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in this <u>Section 11.03</u> may be unenforceable in whole or in part because they are violative of any law or public policy, the applicable Note Party shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them. The indemnities and waivers set forth in this <u>Section 11.03(a)</u> shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent. All amounts due under this <u>Section 11.03(a)</u> shall be paid within thirty (30) days of receipt by the Issuer of an invoice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the extent permitted by applicable law, no Note Party shall assert (and no Note Party shall permit is Affiliates to assert), and each Note Party hereby waives, releases and agrees not to sue upon any claim against EIG, the Agents and each Holder, their Affiliates and its and their respective officers, members, shareholders, partners, directors, trustees, employees, advisors (including attorneys, accountants and experts), representatives and agents and each of their respective successors and assigns and each Person who controls any of the foregoing (each such Person, a "**Holder-Related Party**") (and agrees to cause its Affiliates to do the same), on any theory of liability, for special, indirect, exemplary, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement, any Note Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the Transactions, any documentation related to any Note or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and each Note Party hereby waives, releases and agrees not to sue any Holder-Related Party upon any such claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor. The waivers set forth in this Section 11.03(b) shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the extent permissible under applicable law, none of the Agents, any Note Party or any Subsidiary shall have any liability for any special, indirect, exemplary, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement, any Note Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the Transactions, any documentation related to any Note or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, in respect of any such damages incurred or paid by an Indemnitee to a third party and for any out-of-pocket expenses in each case subject to the indemnification provisions of this <u>Section 11.03</u>; it being agreed that this sentence shall not limit the obligations of the Note Parties under <u>Section 11.03(a)</u>. The waivers set forth in this <u>Section 11.03(b)</u> shall survive the Payment in Full, the discharge of any Liens granted under the Note Documents, the termination of this Agreement and the resignation or removal of any Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Note Party hereby acknowledges and agrees that an Indemnitee may now or in the future have certain rights to indemnification provided by other sources ("**Other Sources**"). Each Note Party hereby agrees that (i) it is the indemnitor of first resort (i.e., its obligations to the Indemnitees are primary and any obligation of the Other Sources to provide indemnification for the same Indemnified Liabilities are secondary to any such obligation of the Note Party), (ii) that it shall be liable for the full amount of all Indemnified Liabilities, without regard to any rights the Indemnitees may have against the Other Sources, and (iii) it irrevocably waives, relinquishes and releases the Other Sources and the Indemnitees from any and all claims (A) against the Other Sources for contribution, indemnification, subrogation or any other recovery of any kind in respect thereof and (B) that an Indemnitee must seek expense advancement or reimbursement, or indemnification, from the Other Sources before the Note Party must perform its obligations hereunder. No advancement or payment by the Other Sources on behalf of an Indemnitee with respect to any claim for which such Indemnitee has sought indemnification from a Note Party shall affect the foregoing. The Other Sources shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery which the Indemnitee would have had against a Note Party if the Other Sources had not advanced or paid any amount to or on behalf of the Indemnitee.

**Section 11.04** <u>Set Off</u>. In addition to any rights now or hereafter granted under applicable law or Governmental Requirement and not by way of limitation of any such rights, upon the occurrence and during the continuance of any Event of Default each Holder and its/their respective Affiliates is hereby authorized by each Note Party at any time or from time to time subject to the consent of Agent (such consent to be given or withheld at the written direction of the Requisite Holders), without notice to any Note Party or to any other Person (other than Agent), any such notice being hereby expressly waived, to set off and to appropriate and to apply any and all deposits (general or special, including Debt evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts (in whatever currency)) and any

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other Debt at any time held or owing by such Holder to or for the credit or the account of any Note Party (in whatever currency) against and on account of the obligations and liabilities of any Note Party to such Holder hereunder, and under the other Note Documents, including all claims of any nature or description arising out of or connected hereto or any other Note Document, irrespective of whether or not (a) such Holder shall have made any demand hereunder, (b) the principal of or the interest on the Notes or any other amounts due hereunder shall have become due and payable pursuant to <u>Article II</u> and although such obligations and liabilities, or any of them, may be contingent or unmatured, or (c) such obligation or liability is owed to a branch or office of such Holder different from the branch or office holding such deposit or obligation or such Debt.

**Section 11.05** <u>[Reserved]</u>.

**Section 11.06** <u>Amendments and Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Requisite Holders' Consent</u>. Subject to <u>Sections 11.06(b)</u> and <u>11.06(c)</u>, no amendment, modification, termination or waiver of any provision of the Note Documents, or consent to any departure by any Note Party therefrom, shall in any event be effective without the written concurrence of (i) in the case of this Agreement, the Issuer, the Agents and the Requisite Holders or (ii) in the case of any other Note Document (other than the Agent Fee Letter), the Note Parties party thereto and (A) Agents with the consent of the Requisite Holders or (B) the Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Affected Holders' Consent</u>. Without the written consent of each Holder that would be directly affected thereby, no amendment, modification, or consent shall be effective if the effect thereof would:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) reduce the principal of the Notes or waive or postpone scheduled final maturity of the Notes or waive, postpone or reduce any fixed and scheduled repayment of the Notes (it being understood that the waiver of (or amendment to the terms of) any mandatory prepayment of the Notes shall not constitute a postponement of any date scheduled for the payment of principal or interest);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject to <u>Section 2.15(b)</u>, (A) reduce the rate of interest on any Note of, or the amounts of fees payable to, such Holder, (B) extend the time for payment of any such interest or fees to such Holder or (C) waive any interest or fee payable hereunder to such Holder (<u>provided</u> that the application of the Default Rate pursuant to <u>Section 2.06(c)</u> may be reduced, extended or waived by the Requisite Holders);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) extend or increase the Commitment of such Holder (it being understood that a waiver of any condition precedent or of any Default or Event of Default, mandatory prepayment or mandatory reduction of the Commitments shall not constitute an extension or increase of any Commitment of any Holder);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) release all or substantially all the Guarantors from the Guarantee or release the Liens securing all or substantially all of the Collateral;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amend, modify, terminate or waive any provision of Sections <u>2.10</u>, <u>2.11(g)</u>, <u>2.12</u>, <u>Section 9.03</u> or this <u>Section 11.06(b)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) amend the definition of "Requisite Holders" or "Pro Rata Share".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Consents</u>. No amendment, modification, termination, or waiver of any provision of the Note Documents, or consent to any departure by any Note Party therefrom, shall materially and adversely amend, modify, terminate or waive any provision of <u>Article IX</u> as the same applies to any Agent or any Indemnitee Agent Party, or any other provision hereof as the same applies to the rights or obligations of any Agent, in each case without the consent of such Agent or such Indemnitee Agent Party. With limiting the foregoing, neither Agent shall be bound to follow or agree to any amendment or supplement to this Agreement that would increase or materially change or affect the duties, obligations or liabilities of such Agent (including without limitation the imposition or expansion of discretionary authority with respect to the benchmark), or reduce, eliminate, limit or otherwise change any right, privilege or protection of such Agent, or would otherwise change any right, privilege or protection of such Agent, or would otherwise materially and adversely affect such Agent, in each case in its reasonable judgment, without such party's express written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Execution of Amendments, etc</u>. Agent and Collateral Agent, if applicable, shall at the direction of the applicable Holders, execute amendments, modifications, waivers or consents on behalf of such Holders. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on any Note Party shall entitle any Note Party to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent effected in accordance with this <u>Section 11.06(d)</u> shall be binding upon each Holder at the time outstanding, each future Holder and, if signed by a Note Party, on such Note Party. Agent will deliver executed or true and correct copies of each amendment, modification, waiver, or consent effected pursuant to this <u>Section 11.06</u> to each Holder promptly following the date on which it is executed and delivered, or receives the consent or approval of the requisite percentage of Holders applicable thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Note Parties and Affiliates</u>. No Note Party will, and the Issuer will not permit any of its Subsidiaries, any of the Note Parties or any of their respective Affiliates, to, directly or indirectly, offer to purchase, prepay, Redeem or otherwise acquire any outstanding Notes, except as otherwise expressly permitted under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Amendment Consideration</u>. None of Issuer or any of its Affiliates or any other party to any Note Documents, directly or indirectly, will pay or cause to be paid any consent fees, or grant any security as an inducement for, any proposed amendment or waiver of any of the provisions of this Agreement or any of the other Note Documents unless each Holder of the Notes (irrespective of the kind and amount of Notes then owned by it) shall be informed thereof by Issuer and, if such Holder is entitled to the benefit of any such provision proposed to be amended or waived, shall be afforded the opportunity of considering the same, shall be supplied by Issuer and any other party hereto with sufficient information to enable it to make an informed decision with respect thereto and, to the extent such amendment or waiver is consented to by such Holder, shall be paid such remuneration and granted such security on the same terms. For the avoidance of doubt, nothing in this <u>Section 11.06(f)</u> is intended to restrict or limit the amendment requirements otherwise set forth herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Consent in Contemplation of Transfer</u>. Any consent given pursuant to this <u>Section 11.06</u> or any other Note Document by a Holder that has transferred or has agreed to transfer its Note to any Person in connection with, or in anticipation of, such other Person acquiring, making a tender offer for or merging with the Issuer, any Note Party and/or any of their Affiliates, shall be void and of no force or effect except solely as to such Holder, and any amendments, modifications or terminations effected or waivers or consents granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other Holders that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such Holder.

**Section 11.07** <u>Successors and Assigns; Assignments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns</u>. This Agreement shall be binding upon the parties hereto and their respective successors and assigns and shall inure to the benefit of the parties hereto and the successors and assigns of Holders. No Note Party's rights or obligations hereunder nor any interest therein may be assigned or delegated by any such Person without the prior written consent of all Holders (and any attempted assignment or transfer by any such Person without such consent shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly contemplated hereby, Affiliates of each of Agent and Holders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignments</u>. Subject to compliance with applicable securities laws, if any, any Holder may at any time sell, assign or otherwise transfer to one or more Eligible Assignees any Notes and all or any portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitments and the Notes held by it).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mechanics</u>. The assigning Holder and the assignee thereof shall execute and deliver to Agent an Assignment Agreement, a processing and recordation fee of $3,500 (other than in the case of an assignment from a Holder to its Affiliate or a Related Fund), all "know your customer" and anti-money laundering rules and regulations, including the USA PATRIOT Act, documents as reasonably requested by the Agent, together with such forms, certificates or other evidence, if any, with respect to United States federal Tax withholding matters as the assignee under such Assignment Agreement may be required to deliver to Agent and Issuer pursuant to <u>Section 2.14(e)</u> and <u>2.14(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notice of Assignment</u>. Upon its receipt and acceptance of a duly executed and completed Assignment Agreement, the processing and recordation fee of $3,500 (which, for the avoidance of doubt, is not required in the case of an assignment from a Holder to its Affiliate or to a Related Fund), any "know your customer" documents reasonably requested by the Agent, and any other forms, certificates or other evidence required by this Agreement in connection therewith, Agent shall record the information contained in such Assignment Agreement in the Register, shall give prompt notice thereof to the Issuer and shall maintain a copy of such Assignment Agreement. The Agent is not, and shall not be deemed to be, acting hereunder or under any other Note Documents, as transfer agent or registrar within the meaning of Article 8 of the UCC or Section 17A(c) of the Exchange Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Representations and Warranties of Assignee</u>. Each Holder upon executing and delivering an Assignment Agreement, represents and warrants as of the applicable Effective Date (as defined in the applicable Assignment Agreement) that (i) it has experience and expertise in the making of or investing in notes; and (ii) it will make or invest in, as the case may be, its Notes for its own account in the ordinary course of its business and without a view to distribution of such Notes within the meaning of the Securities Act or the Exchange Act or other applicable securities laws (it being understood that, subject to the provisions of this <u>Section 11.07(e)</u>, the disposition of Notes or any interests therein shall at all times remain within its exclusive control). In addition, each Holder becoming party hereto after the Closing Date, upon executing and delivering an Assignment Agreement, shall be deemed to have made the representations and warranties contained in <u>Article V</u> as of the applicable Effective Date (as defined in the applicable Assignment Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Effect of Assignment</u>. Subject to the terms and conditions of this <u>Section 11.07(f)</u>, as of the "Effective Date" specified in the applicable Assignment Agreement and recordation in the Register: (i) the assignee thereunder shall have the rights and obligations of a "Holder" hereunder to the extent such rights and obligations hereunder have been assigned to it pursuant to such Assignment Agreement and shall thereafter be a party hereto and a "Holder" for all purposes hereof; (ii) the assigning Holder thereunder shall, to the extent that rights and obligations hereunder have been assigned thereby pursuant to such Assignment Agreement, relinquish its rights (other than any rights which survive the termination hereof under <u>Section 11.08</u>) and be released from its obligations hereunder (and, in the case of an Assignment Agreement covering all or the remaining portion of an assigning Holder's rights and obligations hereunder, such Holder shall cease to be a party hereto; <u>provided</u> that such assigning Holder shall continue to be entitled to the benefit of all indemnities and expense reimbursement rights hereunder as specified herein with respect to matters arising prior to such assignment); and (iii) if any such assignment occurs after the issuance of any Note hereunder, the assigning Holder shall, upon the effectiveness of such assignment or as promptly thereafter as practicable, surrender its applicable Note to the Issuer for cancellation, and thereupon the Issuer shall issue and deliver a new Note, if so requested by the assignee and/or assigning Holder, to such assignee and/or to such assigning Holder, with appropriate insertions, to reflect the outstanding principal balance under the Notes of the assignee and/or the assigning Holder. Notes shall not be transferred in denominations of less than $100,000 (unless transferred by any Holder to an Affiliate and/or a Related Fund of such Holder), <u>provided</u>, that if necessary to enable the registration of transfer by a Holder of its entire holding of Notes, a Note may be in a denomination of less than $100,000; <u>provided</u> <u>further</u>, that transfers by a Holder, its Affiliates and its Related Funds shall be aggregated for purposes of determining whether or not such $100,000 threshold has been reached.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Participations</u>. Subject to compliance with applicable securities laws, if any, each Holder shall have the right at any time to sell one or more participations to any Person (other than a natural Person, any Note Party or any of their respective Affiliates) (each, a "**Participant**") in all or any part of such Holder's rights and/or obligations under this Agreement (including all or a portion of its Notes or any other Obligation); <u>provided</u> that (i) such Holder's obligations under this Agreement shall remain unchanged, (ii) such Holder shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Issuer, Agents, and the Holders shall continue to deal solely and directly with such Holder in connection with such Holder's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Holder sells such a participation shall provide that such Holder shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u> that such agreement or instrument may provide that such Holder will not, without the consent of the Participant, agree to any amendment, modification or waiver described in <u>Section 11.06(b)</u> that affects such Participant. The Issuer agrees that each Participant shall be entitled to the benefits of <u>Sections 2.13</u> and <u>2.14</u> (subject to the requirements and limitations therein, including the requirements and limitations under <u>Section 2.14(e)</u> and <u>Section 2.14(f)</u>) (it being understood that the documentation required under <u>Section 2.14(e)</u> and <u>Section 2.14(f)</u> shall be delivered by the Participant to the applicable Holder) to the same extent as if it were a Holder and had acquired its interest by assignment pursuant to <u>paragraph (c)</u> of this <u>Section 11.07</u>; <u>provided</u> that such Participant shall not be entitled to receive any greater payment under <u>Section 2.11(h)</u> than the applicable Holder would have been entitled to receive with respect to the participation sold to such Participant, unless such greater payment results from a change in a Governmental Requirement that occurs after the Participant acquired the applicable participation, or is made with the Issuer's prior written consent. To the extent permitted by law, each Participant shall be entitled to the benefits of <u>Section 11.04</u> as though it were a Holder; <u>provided</u> that such Participant agrees to be subject to <u>Section 2.14</u> as though it were a Holder. Each Holder that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Issuer, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Notes or other Obligations under the Note Documents (the "Participant Register"); <u>provided</u> that no Holder shall have any obligation to disclose all or a portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Note Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Treasury Regulation Section 5f.103-1(c), proposed Treasury Regulation Section 1.163-5 or any applicable temporary, final or other successor regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Holder shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register, and the Agent shall be entitled to treat the Holder, and not any Participant, as the Holder all purposes hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Independence of Covenants</u>. All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

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**Section 11.08** <u>Survival of Representations, Warranties and Agreements</u>. All representations, warranties and agreements made herein shall survive the execution and delivery hereof and the making of any Note Purchase. Notwithstanding anything herein or implied by law to the contrary, the agreements of each Note Party set forth in <u>Sections 2.14</u>, <u>11.02</u>, <u>11.03</u> and <u>11.04</u> and the agreements of Holders set forth in Sections 2.12, 2.14, 10.11 and 11.03(b) shall survive the payment of the Notes, the termination hereof and the resignation or removal of any Agent.

**Section 11.09** <u>No Waiver; Remedies Cumulative</u>. No failure or delay on the part of any Agent or any Holder in the exercise of any power, right or privilege (including with respect to any financial covenant calculation or evaluation of the calculation or components thereof) hereunder or under any other Note Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein (including with respect to any future covenant calculation or evaluation of the calculation or components thereof), nor shall any single or partial exercise of any such power, right or privilege preclude further or future exercise thereof or of any other power, right or privilege. The rights, powers and remedies given to Agents and each Holder hereby are cumulative and shall be in addition to and independent of all rights, powers and remedies existing by virtue of any statute or rule of law or in any of the other Note Documents. Any forbearance or failure to exercise, and any delay in exercising, any right or privilege, power or remedy hereunder (including with respect to any financial covenant calculation or evaluation of the calculation or components thereof) shall not impair any such right or privilege, power or remedy or be construed to be a waiver thereof, nor shall it preclude other, further or future exercise of any such right or privilege, power or remedy.

**Section 11.10** <u>Marshalling; Payments Set Aside</u>. Neither Agent nor any Holder shall be under any obligation to marshal any assets in favor of any Note Party or any other Person or against or in payment of any or all of the Obligations. To the extent that any Note Party makes a payment or payments to any Agent or the Holders (or to any Agent, on behalf of the Holders), or any Agent or the Holders enforce any security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, any other state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred.

**Section 11.11** <u>Severability</u>. In case any provision in or obligation hereunder or any Note or other Note Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

**Section 11.12** <u>Obligations Several; Independent Nature of Holders' Rights</u>. The obligations of the Holders hereunder are several and no Holder shall be responsible for the obligations or Commitment of any other Holder hereunder. Nothing contained herein or in any other Note Document, and no action taken by the Holders pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Holder shall be a separate and independent debt, and each Holder shall be entitled to protect and enforce its rights arising out hereof and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose.

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**Section 11.13** <u>Tax Treatment</u>. The Issuer, the Agent and each Holder intend that the Notes shall be treated as indebtedness for Tax purposes and agree to report the Notes as indebtedness on all Tax returns.

**Section 11.14** <u>Headings</u>. Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.

**Section 11.15** <u>APPLICABLE LAW</u>. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

**Section 11.16** <u>CONSENT TO JURISDICTION</u>. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY HERETO ARISING OUT OF OR RELATING HERETO OR ANY OTHER NOTE DOCUMENT, OR ANY OF THE OBLIGATIONS, SHALL BE BROUGHT IN STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY HERETO, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (A) ACCEPTS GENERALLY AND UNCONDITIONALLY THE JURISDICTION AND VENUE OF SUCH COURTS; (B) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE NOTE PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH <u>SECTION 11.01</u> IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE NOTE PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (D) AGREES THAT AGENTS AND THE HOLDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY NOTE PARTY IN THE COURTS OF ANY OTHER JURISDICTION.

**Section 11.17** <u>WAIVER OF JURY TRIAL</u>. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER NOTE DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT OR THE HOLDER/ISSUER RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT

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CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS <u>SECTION 11.17</u> AND EXECUTED BY EACH OF THE PARTIES HERETO THAT IS PARTY TO SUCH JUDICIAL PROCEEDING), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER NOTE DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE NOTES PURCHASED HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

**Section 11.18** <u>Confidentiality</u>. If the Issuer reasonably believes that any information being furnished by it or any other Note Party to Agent or a Holder ("Recipient") relating to it or its business is confidential, the Issuer may so indicate by notice in writing to the Recipient, identifying such information with specificity (such identified information, the "Confidential Information"), in which event the Recipient will use reasonable efforts to maintain the confidentiality thereof; <u>provided</u>, <u>however</u>, that a Recipient may disclose such information (a) to its Affiliates, partners, prospective partners, members and prospective members and its and their respective directors, managers, officers, employees, attorneys, accountants, advisors, auditors, consultants, agents or representatives with a need to know such Confidential Information (collectively "Permitted Recipients"); (b) to any potential assignee, participant, pledgee or transferee of any of its rights or obligations hereunder (including without limitation, in connection with a sale or participation of any or all of the Notes) or any of their related parties, agents and advisors (<u>provided</u> that such potential assignee, participant or transferee agree to be bound by provisions that are substantially similar to the restrictions set forth in this <u>Section 11.18</u>); (c) if such information (i) becomes publicly available other than as a result of a breach of this <u>Section 11.18</u>, (ii) becomes available to a Recipient or any of its Permitted Recipients on a non-confidential basis from a source other than the Note Parties or (iii) is independently developed by the Recipient or any of its Permitted Recipients without the use of or reliance on such information; (d) to enable it to enforce or otherwise exercise any of its rights and remedies under any Note Document; or (e) as consented to in writing by the Issuer. Notwithstanding anything to the contrary set forth in this <u>Section 11.18</u> or otherwise, nothing herein shall prevent a Recipient or its Permitted Recipients from complying with any legal requirements (including, without limitation, pursuant to any rule, regulation, stock exchange requirement, self-regulatory body, supervisory authority, other applicable judicial or governmental order, legal process, fiduciary or similar duties or otherwise) to disclose any Confidential Information. In addition, the Recipient and its Permitted Recipients may disclose Confidential Information if so requested by a governmental, self-regulatory or supervisory

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authority or examiner (including the National Association of Insurance Commissioners). Each Note Party hereby acknowledges and agrees that, subject to the restrictions on disclosure of Confidential Information as provided in this <u>Section 11.18</u>, the Recipient and their respective Affiliates are in the business of making investments in and otherwise engaging in businesses which may or may not be in competition with the Note Parties or otherwise related to their and their Affiliates' respective business and that nothing herein shall, or shall be construed to, limit the Holders' or their Affiliates' ability to make such investments or engage in such businesses. Notwithstanding any other provision of this <u>Section 11.18</u>, the parties (and each employee, representative, or other agent of the parties) may disclose to any and all Persons, without limitation of any kind, the Tax treatment and any facts that may be relevant to the Tax structure of the transactions contemplated by this Agreement and the other Note Documents; <u>provided</u>, <u>however</u>, that no party (and no employee, representative, or other agent thereof) shall disclose any other information that is not relevant to an understanding of the Tax treatment and Tax structure of the transaction (including the identity of any party and any information that could lead another to determine the identity of any party), or any other information to the extent that such disclosure could reasonably result in a violation of any applicable securities law. Issuer understands and acknowledges that in the regular course of a Holder's business, such Holder may invest in companies that have issued securities that are publicly traded (each, a "Public Company"). Accordingly, Issuer covenants and agrees that before providing material non-public information about a Public Company ("Public Company Information"), Issuer will provide prior written notice to the applicable compliance personnel indicated in <u>Schedule 11.18</u>. Issuer shall not disclose Public Company Information to such Holder without written authorization from such compliance personnel. Any Holder and Holder-Related Party may disclose the existence of this Agreement, the Transactions and the form of the financing, and place customary advertisements in financial and other news sources or on a home page or similar place and circulate similar promotional materials, in each case, after the effectiveness of this Agreement, including in the form of a "tombstone", which may include the size of the deal, the form of the financing, the Issuer's name, logo and a link to the Issuer's or an Affiliate's website.

**Section 11.19** <u>Usury Savings Clause</u>. Notwithstanding any other provision herein, the aggregate interest rate charged or agreed to be paid with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest under applicable law shall not exceed the Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence) under this Agreement at any time exceeds the Highest Lawful Rate, the outstanding amount of the Notes purchased hereunder shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect. In addition, if when the Notes purchased hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is less than the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by law, the Issuer shall pay to Agent an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding the foregoing, it is the intention of Holders and the Issuer to conform strictly to any applicable usury laws. Accordingly, if any Holder contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if

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previously paid, shall at such Holder's option be applied to the outstanding amount of the Notes purchased hereunder or be refunded to the Issuer. In determining whether the interest contracted for, charged, or received by Agent or a Holder exceeds the Highest Lawful Rate, such Person may, to the extent permitted by applicable law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest, throughout the contemplated term of the Obligations hereunder.

**Section 11.20** <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.

**Section 11.21** <u>USA PATRIOT Act</u>. Each Holder and each Agent (for itself and not on behalf of any Holder) hereby notifies each Note Party that pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record information that identifies such Note Party, which information includes the name and address of such Note Party and other information that will allow such Holder or such Agent, as applicable, to identify such Note Party in accordance with the USA PATRIOT Act.

**Section 11.22** <u>Disclosure</u>. Each Note Party and each Holder hereby acknowledge and agree that the Agents and/or their Affiliates and their respective Related Funds from time to time may hold investments in, and make loans to, or have other relationships with any of the Note Parties and their respective Affiliates, including the ownership, purchase and sale of Equity Interests in any Note Party and their respective Affiliates and each Holder hereby expressly consents to such relationships.

**Section 11.23** <u>Appointment for Perfection</u>. Each Holder hereby appoints each other Holder as its agent for the purpose of perfecting Liens, for the benefit of the Agents and the Holders, in assets which, in accordance with Article 9 of the UCC or any other applicable law can be perfected only by possession. Should any Holder obtain possession of any such Collateral, such Holder shall notify the Collateral Agent thereof, and, promptly upon Collateral Agent's request therefor shall deliver such Collateral to Collateral Agent or otherwise deal with such Collateral in accordance with Collateral Agent's instructions.

**Section 11.24** <u>Advertising and Publicity</u>. No Note Party shall issue or disseminate to the public (by advertisement, including without limitation any "tombstone" advertisement, press release or otherwise), submit for publication or otherwise cause or seek to publish any information describing the credit or other financial accommodations made available by Holders pursuant to this Agreement and the other Note Documents without the prior written consent of the Requisite Holders. Nothing in the foregoing shall be construed to prohibit any Note Party from making any submission or filing which it is required to make by applicable Governmental Requirement (including securities laws, rules and regulations), stock exchange rules or pursuant to judicial process; <u>provided</u>, that, (a) such filing or submission shall contain only such information as is necessary to comply with such applicable Governmental Requirement, rule or judicial process and (b) unless specifically prohibited by applicable law, rule or court order, the Issuer shall promptly notify Agent of the requirement to make such submission or filing and provide Agent with a copy thereof.

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**Section 11.25** <u>Acknowledgments and Admissions</u>. The Issuer hereby acknowledges and admits that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it has been advised by counsel in the negotiation, execution and delivery of the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has made an independent decision to enter into this Agreement and the other Note Documents to which it is a party, without reliance on any representation, warranty, covenant or undertaking by any Agent or any Holder, whether written, oral or implicit, other than as expressly set out in this Agreement or in another Note Document delivered on or after the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there are no representations, warranties, covenants, undertakings or agreements by the Agents or any Holder as to the Note Documents except as expressly set out in this Agreement and the other Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) none of the Agents or any Holder has any fiduciary obligation toward it with respect to any Note Document or the Transactions contemplated thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) no partnership or joint venture exists with respect to the Note Documents between any Note Party, on the one hand, and the Agents or any Holder, on the other;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Agents are not any Note Party's agent except as otherwise provided herein in <u>Section 2.06</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither Simpson Thacher & Bartlett LLP nor Shipman & Goodwin LLP is counsel for any Note Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) should an Event of Default or Default occur or exist, each Holder will determine in its discretion and for its own reasons what remedies and actions it will or will not direct the Agents to exercise or take at that time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) without limiting any of the foregoing, no Note Party is relying upon any representation or covenant by the Agents or any Holder, or any representative thereof, and no such representation or covenant has been made, that any of the Agents or any Holder will, at the time of an Event of Default or Default, or at any other time, waive, negotiate, discuss, or take or refrain from taking any action permitted under the Note Documents with respect to any such Event of Default or Default or any other provision of the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Agents and the Holders have all relied upon the truthfulness of the acknowledgments in this <u>Section 11.25</u> in deciding to execute and deliver this Agreement and to become obligated hereunder; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) each Note Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the fair meaning thereof.

**Section 11.26** <u>Third Party Beneficiaries</u>. There are no third party beneficiaries to this Agreement other than Participants to the extent set forth in <u>Section 11.07(g)</u>, the Secured Hedge Providers and, to the extent set forth herein, the Indemnitees.

**Section 11.27** <u>Entire Agreement</u>. This Agreement, and the other Note Documents represent the final agreement among the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements among the parties.

**Section 11.28** <u>Transferability of Securities; Restrictive Legend</u>. Each note, certificate or other instrument evidencing the Notes issued by Issuer shall be stamped or otherwise imprinted with a legend in substantially the following forms:

"THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION."

Notwithstanding the foregoing, the restrictive legend set forth above shall not be required after the date on which the securities evidenced by such note, certificate or other instrument bearing such restrictive legend no longer constitute "restricted securities" (as defined in Rule 144 promulgated under the Securities Act), and upon the request of the Holder of such Notes, Issuer, without expense to such Holder, shall issue a new note, certificate or other instrument as applicable not bearing the restrictive legend otherwise required to be borne thereby. Agent shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on assignment imposed under this Agreement or under applicable law with respect to any assignment of any interest in any Note and Agent shall have no duty or responsibility to determine whether and when the restricted legend may be removed from the Notes.

**Section 11.29** <u>Replacement of Notes</u>. Upon receipt by Issuer of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note, and (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (<u>provided</u> that if the Holder of such Note is, or is a nominee for, another Holder with a minimum net worth of at least $5,000,000, such Person's own unsecured agreement of indemnity shall be deemed to be satisfactory), or (b) in the case of mutilation, upon surrender and cancellation thereof, Issuer at its own expense shall execute and deliver, in lieu thereof, a new Note of the same series, dated and, in the case of a Note, bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

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**Section 11.30** <u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>. Notwithstanding anything to the contrary in any Note Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Note Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder that may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Note Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

**Section 11.31** <u>Hedge Intercreditor Agreement</u>. Notwithstanding anything herein to the contrary, the lien and security interest granted to the Collateral Agent, for the benefit of the Secured Parties, pursuant to this Agreement and the exercise of any right or remedy by the Collateral Agent and the other Secured Parties hereunder are subject to the provisions of the Hedge Intercreditor Agreement, as applicable. In the event of any conflict between the provisions of the Hedge Intercreditor Agreement and this Agreement, other than with respect to the Agent's or the Collateral Agent's own rights, privileges and immunities, the provisions of the Hedge Intercreditor Agreement shall control.

[*Signature Pages Follow*.]

## Exhibit 10.1

**Exhibit 10.1** 

**ADMINISTRATIVE SERVICES AGREEMENT** 

THIS ADMINISTRATIVE SERVICES AGREEMENT (the "**Agreement**") is entered into as of the 1<sup>st</sup> day of March, 2022, by and between **WHITEHAWK INCOME CORPORATION**, a Delaware corporation (the "**Company**"), and **WHITEHAWK MANAGEMENT, LLC** a Delaware limited liability company (the "**Administrator**").

**WHEREAS**, the Company is a newly organized Delaware corporation that was formed to acquire, own and manage mineral and royalty interests with the objective of generating cash flow from operations with the potential for capital appreciation in accordance with the business strategies, policies, and restrictions that are set forth in the Company's Confidential Offering Memorandum, as the same may be amended, supplemented, or restated from time to time (the "**Offering Memorandum**");

**WHEREAS**, the Company desires to avail itself of the experience, assistance and certain facilities of the Administrator and to have the Administrator undertake the duties and responsibilities to provide the Company certain administrative services hereinafter set forth, all as provided herein; and

**WHEREAS**, the Administrator is willing to undertake to render such services on the terms and conditions hereinafter set forth, subject to the terms and conditions thereof and the supervision and direction of the proper officers of the Company (each, an "**Officer**") and the Company's board of directors (the "**Board**").

**NOW, THEREFORE**, in consideration of the premises and for other good and valuable consideration, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Duties of the Administrator**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Retention of Administrator**. The Company hereby engages and retains the Administrator to furnish, or arrange for others to furnish, the administrative services, personnel and facilities described below for the period and on the terms and conditions set forth in this Agreement. The Administrator hereby accepts such engagement and retention and agrees during such period to render, or arrange for the rendering of, such services and to assume the obligations herein set forth, subject to the reimbursement of costs and expenses provided for below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Services**. The Administrator shall perform (or oversee, or arrange for, the performance of) the administrative services necessary for the operation of the Company. Without limiting the generality of the foregoing, the Administrator shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provide the Company with office facilities and equipment, and provide clerical, bookkeeping, general ledger accounting, fund accounting and recordkeeping services, , investor services and shall provide all such other services, except investment advisory services, as the Administrator, shall from time to time determine to be necessary or useful to perform its obligations under this Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) on behalf of the Company, enter into agreements and/or conduct relations with custodians, depositories, transfer agents, distribution disbursing agents, the dividend reinvestment

plan administrator, shareholder servicing agents, accountants, auditors, tax consultants, advisers and experts, investment advisers, compliance officers, engineers, environmental experts, tax consultants, advisers, escrow agents, attorneys, underwriters, managing dealer, brokers and dealers, investor custody and share transaction clearing platforms, marketing, sales and advertising materials contractors, public relations firms, investor communication agents, printers, insurers, banks, independent valuers, and such other persons in any such other capacity deemed to be necessary or desirable by the Administrator and the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) furnish advice and recommendations with respect to such other aspects of the business and affairs of the Company as the Administrator reasonably shall determine to be desirable; provided that nothing herein shall be construed to require the Administrator to, and the Administrator shall not pursuant to this Agreement, provide any advice or recommendation relating to the assets that the Company should acquire or dispose of or any other investment advisory services to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) assist the Company in the preparation of the financial and other records that the Company will maintain and the preparation, printing and dissemination of reports that the Company will furnish to shareholders, supplements to the Offering Memorandum, and, to the extent applicable, reports and other materials filed with the Securities and Exchange Commission (the "**SEC**"), and states and jurisdictions where there is a duty to file information with one or more states on an ongoing basis in connection with either one or more offerings which are registered or exempt from registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) from time to time, or at any time reasonably requested by the Company, make reports to the Officers (or, as applicable, the Board) regarding the Administrator's performance of services to the Company under the terms of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) manage investor communications; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) oversee the performance of other professional services rendered to the Company by others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Power and Authority**. To facilitate the Administrator's performance of these undertakings, but subject to the restrictions contained herein, the Company and its subsidiaries hereby delegate to the Administrator, and the Administrator hereby accepts, the power and authority on behalf of the Company and its subsidiaries to effectuate its decisions relating to the administration of the Company. The Company may, at any time upon the giving of notice to the Administrator, modify or revoke the authority set forth in this Section 1(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Acceptance of Appointment**. The Administrator hereby accepts such appointment and agrees during the term hereof to render the services described herein for the consideration provided herein, subject to the limitations contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Independent Contractor Status**. The Administrator shall, for all purposes herein provided, be deemed to be an independent contractor and, except as expressly provided or authorized herein, shall have no authority to act for or represent the Company in any way or otherwise be deemed an agent of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Confidentiality**.

The parties hereto agree that each shall treat confidentially all information provided by each party to the other regarding its business and operations. All confidential information provided by a party hereto, including all "nonpublic personal information," as defined under the Gramm-Leach-Bliley Act of 1999 (Public law 106-102, 113 Stat. 1138), shall be used by the other party hereto solely for the purpose of rendering services pursuant to this Agreement and, except as may be required in carrying out this Agreement, shall not be disclosed to any third party, without the prior consent of such providing party, except that such confidential information may be disclosed to an affiliate or agent of the disclosing party to be used for the sole purpose of providing the services set forth herein. The foregoing shall not be applicable to any information that is publicly available when provided or thereafter becomes publicly available other than through a breach of this Agreement, or that is required to be disclosed to any regulatory authority, by judicial or administrative process or otherwise by applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Record Retention**. Subject to review by and the overall control of the Company, the Administrator shall at all times have access to and maintain all books and records that relate to activities performed by the Administrator hereunder, and shall make such records available for inspection by the Company and its authorized agents, at any time and from time to time during normal business hours. The Administrator agrees that all records that it maintains for the Company are the property of the Company and shall surrender promptly to the Company any such records upon the Company's request and upon termination of this Agreement pursuant to Section 8; **provided that** the Administrator may retain a copy of such records, subject to observance of its confidentiality obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Approved Budget**.

The Administrator shall use commercially reasonable efforts to prepare, prior to each fiscal year end of the Company, an estimated budget (as may be amended and approved by the Company from time to time, the "**Approved Budget**") that includes anticipated third-party costs and expenses related to the services to be provided by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Reimbursement of Expenses**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall reimburse Administrator for the actual costs and expenses paid for administrative services provided on behalf of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All third-party Company expenses paid by the Administrator shall be reimbursed by the Company promptly following the Administrator's presentation to the Company of the corresponding written invoice documenting such Company expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Limitation of Liability of the Administrator; Indemnification**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Indemnification**. The Administrator and the respective officers, managers, partners, members, agents, employees, controlling persons, shareholders and any other person or entity affiliated with the Administrator (collectively, the "**Indemnified Parties**") shall be held harmless by the Company from and against all damages, liabilities, costs and expenses (including reasonable attorneys' fees and amounts reasonably paid in settlement) incurred by the Indemnified Parties in or

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by reason of any pending, threatened or completed action, suit, investigation or other proceeding (including an action or suit by or in the right of the Company or its security holders) arising out of or otherwise based upon the performance of any of the Administrator's duties or obligations under this Agreement or otherwise as an administrator of the Company. Notwithstanding the preceding sentence of this paragraph to the contrary, nothing contained herein shall protect or be deemed to protect the Indemnified Parties against or entitle or be deemed to entitle the Indemnified Parties to indemnification in respect of, any liability to the Company or any of its subsidiaries, to the Company or any subsidiary's members, stockholders or partners to which the Indemnified Parties would otherwise be subject by reason of negligence or misconduct in the performance of the Administrator's or a Service Provider's duties or by reason of the reckless disregard of the Administrator's duties and obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrator shall indemnify the Company (and its officers, managers, partners, members, agents employees, controlling persons and any other person or entity affiliated with the Company) for any losses that the Company (and its officers, managers, partners, members, agents, employees, controlling persons and any other person or entity affiliated with the Company) may sustain primarily as a result of the Administrator's willful misfeasance, bad faith, gross negligence or reckless disregard of its duties hereunder or violation of applicable law, including without limitation, the federal and state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Activities of the Administrator**.

The services provided by the Administrator to the Company are not exclusive, and the Administrator may engage in any other business or render similar or different services to others, so long as its services to the Company hereunder are not impaired thereby and nothing in this Agreement shall limit or restrict the right of any officer, director, shareholder (and their shareholders or members, including the owners of their shareholders or members), officer or employee of the Administrator to engage in any other business or to devote his or her time and attention in part to any other business, whether of a similar or dissimilar nature, or to receive any fees or compensation in connection therewith. The Administrator assumes no responsibility under this Agreement other than to render the services set forth herein. It is understood that directors, officers, employees and members of the Company are or may become interested in the Administrator and its affiliates, as directors, officers, employees, partners, members, managers or otherwise, and that the Administrator and its directors, officers, employees, partners, stockholders, members and managers, and the Administrator's affiliates are or may become similarly interested in the Company and/or its subsidiaries as members or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Duration and Termination of this Agreement**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Term and Effectiveness**. This Agreement shall become effective as of the date first written above, and shall remain in effect for one year (the "**Initial Term**"), and thereafter shall continue automatically for successive annual periods (a "**Renewal Term**"); **provided that** such continuance is specifically approved at least annually by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Termination**. This Agreement may be terminated at any time, without the payment of any penalty by either party upon 120 days written notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Payments to and Duties of Administrator upon Termination**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) After the termination of this Agreement, the Administrator shall not be entitled to compensation for further services provided hereunder, except that it shall be entitled to receive from the Company within 90 days after the effective date of such termination all unpaid third-party reimbursements payable to the Administrator prior to termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Administrator shall promptly upon termination:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Deliver to the Company a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Deliver to the Company all assets and documents of the Company then in custody of the Administrator; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Cooperate with the Company's reasonable request to provide an orderly administration transition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Notices**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All notices, requests, claims, demands and other communications hereunder which relate to this Agreement shall be in writing and shall deemed to be delivered, (i) upon delivery in person, (ii) one day after deposit with Federal Express or similar overnight courier service, (iii) three

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) days after being mailed by registered or certified mail (postage prepaid, return receipt requested), or (iv) one day after sending an e-mail provided such e-mail is followed by deposit with Federal Express or similar overnight courier no later than the following day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Amendments**.

This Agreement shall not be amended, changed, modified or discharged, in whole or in part, except by an instrument in writing signed by the parties hereto, or their respective successors or permitted assignees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Severability**.

If any provision of this Agreement shall be declared illegal, invalid, or unenforceable in any jurisdiction, then such provision shall be deemed to be severable from this Agreement (to the extent permitted by law) and in any event such illegality, invalidity or unenforceability shall not affect the remainder hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Counterparts**.

This Agreement may be executed in counterparts, each of which shall be deemed to be an original copy and all of which together shall constitute one and the same instrument binding on all parties hereto, notwithstanding that all parties shall not have signed the same counterpart.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Entire Agreement; Governing Law**.

This Agreement contains the entire agreement of the parties and supersedes all prior agreements, understandings and arrangements with respect to the subject matter hereof. Notwithstanding the place where this Agreement may be executed by any of the parties hereto, this Agreement shall be construed in accordance with the laws of the State of Delaware, and any action brought to enforce the agreements made hereunder or any action which arises out of the relationship created hereunder shall be brought exclusively in the federal or state courts for Philadelphia, Pennsylvania . Each party hereby irrevocably waives its rights to trial by jury in any action or proceeding arising out of this Agreement or the transactions relating to its subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Waivers**.

Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Third Party Beneficiaries**.

Except for any Indemnified Party, such Indemnified Party being an intended beneficiary of this Agreement, this Agreement is for the sole benefit of the parties hereto and their permitted assigns and nothing herein shall give or be construed to give any person, other than the parties hereto and such assigns, any legal or equitable rights hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **Survival**.

The provisions of Sections 5, 6, 8, 13, 14 and this Section 16 shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **Gender**.

Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **Titles not to Affect Interpretation**.

The titles of paragraphs and subparagraphs contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **Representations, Warranties and Covenants of the Administrator**. The Administrator represents, warrants and covenants to the Company as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrator is a limited liability company duly organized and validly existing under the laws of the State of Delaware with the power to own and possess its assets and carry on its business as the business is now being conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery and performance by the Administrator of this Agreement is within the Administrator's powers and has been duly authorized by all necessary actions on the part of the Administrator and its members and managers and no action by or in respect of, or filing with, any governmental body, agency or official is required on the part of the Administrator for the execution, delivery or performance of this Agreement by the Administrator. The execution, delivery and performance of this Agreement by the Administrator does not violate, contravene or constitute a default under (i) any provision of any applicable law, rule or regulation, (ii) the Administrator's limited liability company operating agreement or certificate of formation, or (iii) any agreement, judgment, injunction, order, decree or other instruments binding upon the Administrator or any of the Administrator's property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrator has met, in all material respects, and will continue to meet, in all material respects, for the duration of this Agreement, any applicable federal or state requirements, or the applicable requirements of any regulatory or industry self-regulatory agency, necessary to be met by the Administrator in order for the Administrator to perform the services contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrator will carry out its responsibilities under this Agreement in compliance in all material respects with (i) any applicable federal or state laws, rules or regulations, including securities laws, rules and regulations, (ii) the Company's guidelines, policies and limitations as may be set by the Company from time to time and (iii) such other policies or directives as the Company may from time to time establish or issue and that the Company communicates to the Administrator in writing, provided that the Company will promptly notify the Administrator in writing of changes to the matters identified in (ii) or (iii) above.

*[Remainder of page intentionally left blank.]* 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date and year first above written.

---

| | |
|:---|:---|
| **WHITEHAWK MANAGEMENT, LLC** | **WHITEHAWK MANAGEMENT, LLC** |
| By: | /s/ Jeff Smith |
|  | Name: Jeff Smith |
|  | Title: President |
|  Address: 2400 Market Street | Address: 2400 Market Street |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Offsite Suite 230 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Offsite Suite 230 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Philadelphia, PA 19103 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Philadelphia, PA 19103 |
| **WHITEHAWK INCOME CORPORATION** | **WHITEHAWK INCOME CORPORATION** |
| By: | /s/ Daniel Herz |
|  | Name: Daniel Herz |
|  | Title: Chief Executive Officer |
|  Address: 2400 Market Street | Address: 2400 Market Street |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Offsite Suite 230 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Offsite Suite 230 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Philadelphia, PA 19103 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Philadelphia, PA 19103 |

---

[*Signature Page to Administrative Services Agreement*]

## Exhibit 10.2

**Exhibit 10.2** 

***Execution Version***

**AMENDED AND RESTATED INVESTMENT MANAGEMENT AGREEMENT** 

THIS **AMENDED AND RESTATED INVESTMENT MANAGEMENT AGREEMENT**

(the "**Agreement**") is entered into as of the 3<sup>rd</sup> day of October, 2025, by and between **WHITEHAWK INCOME CORPORATION**, a Delaware corporation (the "**Company**"), and **WHITEHAWK MANAGEMENT, LLC** a Delaware limited liability company (the "**Manager**").

**WHEREAS,** the Company and the Manager entered into that certain Investment

Management Agreement dated March 1, 2022 (the "**Original Agreement**");

**WHEREAS**, this Agreement shall amend, restate and supersede the Original Agreement for all purposes from and after the date hereof;

**WHEREAS**, the Company is a Delaware corporation that was formed to acquire, own and manage mineral and royalty interests with the objective of generating cash flow from operations with the potential for capital appreciation in accordance with the business strategies, policies, and restrictions that are set forth in the Company's Confidential Offering Memorandum, as the same may be amended, supplemented, or restated from time to time (the "**Offering Memorandum**");

**WHEREAS**, the Company desires to avail itself of the experience, source of information, advice, assistance and certain facilities of the Manager and to have the Manager undertake the duties and responsibilities hereinafter set forth, all as provided herein; and

**WHEREAS**, the Manager is willing to undertake to render such services on the terms and conditions hereinafter set forth, subject to the terms and conditions thereof and the supervision and direction of the proper officers of the Company (each, an "**Officer**") and the Company's board of directors (the "**Board**").

**NOW, THEREFORE**, in consideration of the premises and for other good and valuable consideration, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Duties of the Manager**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Retention of Manager**. The Company hereby retains the Manager to act as the manager to the Company and its subsidiaries and to manage the day-to-day operations of the Company, subject at all times to the supervision of the Board and the Officers of the Company, or a committee thereof which has been properly delegated oversight authority over the Manager (a "**Committee**") for the period set forth in this Agreement and in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the business strategies, policies, and restrictions that are set forth in the Offering Memorandum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Compliance with applicable U.S. federal and state laws, rules and regulations, and the Company's Articles and Bylaws, in each case as may be amended from time to time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such business policies and directives that the Board or a Committee may from time to time establish or issue and communicate to the Manager in writing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Responsibilities of Manager**. Without limiting the generality of the foregoing, the Manager shall, during the term and subject to the provisions of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provide the investment advisory and management services necessary for the operations of the Company, including the establishment and implementation of a continuous program for managing the Company's investments, including any temporary investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) investigate, select, and, on behalf of the Company, engage and conduct business with such persons as the Manager deems necessary to the proper performance of its obligations hereunder, including but not limited to consultants, accountants, correspondents, lenders, technical advisers, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers, insurance agents, banks, securities investment advisors, mortgagors, and any and all agents for any of the foregoing, including Affiliates of the Manager, and persons acting in any other capacity deemed by the Manager necessary or desirable for the performance of any of the foregoing services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (a) locate, analyze, perform due diligence on and select potential assets; (b) structure and negotiate the terms and conditions of transactions pursuant to which asset acquisitions and dispositions will be made including, without limitation, the formation and qualification of wholly owned subsidiaries and special purpose vehicles; (c) make asset acquisitions and dispositions on behalf of the Company in compliance with the business strategy and policies of the Company; and (d) arrange for financing and refinancing and make other changes in the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with asset acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) determine the composition of the Company's assets, the nature and

timing of the changes therein and the manner of implementing such changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Assist the Board with Asset valuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Arrange for Company leverage if determined to be utilized;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) service and monitor the Company's assets, whether such assets are held directly or indirectly; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) arrange for the payment of Company expenses.

"**Affiliate**" means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with such Person. For the purpose of this definition, the term "control" (including, with correlative meanings, the terms "controlling", "controlled by" and "under common control with"), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

"**Person**" means any individual, partnership, corporation, limited liability company, trust, estate or designated beneficiary or other entity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Power and Authority**. To facilitate the Manager's performance of these undertakings, but subject to the Company's investment policies and the restrictions contained herein, the Company and its subsidiaries hereby delegate to the Manager, and the Manager hereby accepts, the power and authority to act on behalf of the Company and its subsidiaries to effectuate its decisions relating to the Company's assets, including the execution and delivery of all documents relating to the Company's assets. The Company also grants to the Manager power and authority to engage in all activities and transactions (and anything incidental thereto) that the Manager reasonably deems, in its sole discretion, appropriate, necessary, or advisable to carry out its duties pursuant to this Agreement. All investment decisions shall comply in all respects with the Company's policies including required investment approvals by the Company's Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Acceptance of Appointment**. The Manager hereby accepts such appointment and agrees during the term hereof to render the services described herein for the compensation provided herein, subject to the limitations contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Independent Contractor Status**. The Manager shall, for all purposes herein provided, be deemed to be an independent contractor and, except as expressly provided or authorized herein, shall have no authority to act for or represent the Company in any way or otherwise be deemed an agent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Books and Records**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Record Retention**. The Manager shall maintain and keep all books, accounts and other records of the Manager that relate to activities performed by the Manager hereunder as required under applicable law, including financial and corporate records. Subject to review by and the overall control of the Board, the Officers of the Company, or a Committee thereof, the Manager shall at all times have access to and maintain all books and records with respect to the Company's transactions and shall render such periodic and special reports as the Board, the Officers of the Company, or a Committee thereof may reasonably request or as may be required under applicable federal and state law, and shall make such records available for inspection by the Board, the Officers of the Company, or a Committee thereof and each of their authorized agents, at any time and from time to time during normal business hours. The Manager agrees that all records that it maintains for the Company are the property of the Company and shall surrender promptly to the Company any such records upon the Company's request and upon termination of this Agreement pursuant to <u>Section</u> <u>9</u>; **provided that** the Manager may retain a copy of such records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Bank Accounts**. The Manager may establish and maintain one or more bank accounts in its own name for the account of the Company or in the name of the Company and may collect and deposit into any such account or accounts, any money on behalf of the Company, under such terms and conditions as the Board, the Officers of the Company, or a Committee thereof may approve, provided that no funds shall be comingled with the funds of the Manager; and the Manager shall from time to time render appropriate accountings of such collections and payment to the Board, the Officers of the Company, or a Committee thereof, and to the auditors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Company's Responsibilities and Expenses Payable by the Company**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Costs**. In addition to the compensation payable to the Manager pursuant to <u>Section</u> <u>4</u> or pursuant to any other agreement, the Company, either directly or through reimbursement to the Manager, shall bear all fees, costs, expenses, liabilities and obligations relating to the Company's activities, acquisitions, dispositions, financings and business of its operations and transactions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Periodic Reimbursement**. The Company will be responsible for all costs and expenses relating to the Company's activities, investments and ongoing business, including the following (but excluding Organization and Offering Expenses) and will reimburse the Manager for such costs and expenses incurred on behalf of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all costs and expenses attributable to acquiring, holding, managing, and disposing of the Company's investments, including general and administrative expenses of investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all reasonable out-of-pocket fees and expenses incurred by the Company or the Manager or the agents, officers, and employees of the Manager related to investment and disposition opportunities of the Company not consummated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all costs of personnel employed or otherwise engaged by the Company and directly involved in the operation of the Company; expenses of insurance required in connection with the operation of the Company; taxes and assessments on the Company investments and other taxes, including, without limitation, sales taxes allocable to the Company as an entity; travel expenses related to the Company's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) costs of any services performed for the Company; if and when valuations commence, the costs of calculating the net asset value of Shares, including the cost of any third party valuation services; all accounting, legal, audit, consulting, and other professional and reporting fees and expenses, which may include, but are not limited to, preparation and documentation of the Company's bookkeeping, accounting and audits, and services necessary for the maintenance of the books and records of the Company; preparation and documentation of budgets, economic surveys, cash flow projections, and working capital requirements; preparation and documentation of the Company's state and federal tax returns; printing and other expenses and taxes incurred in connection with the issuance, distribution, transfer, and recordation of documents in connection with the business of the Company; the costs of preparation and dissemination of informational material and documentation relating to the potential sale or other disposition of the Company's investments and other assets; and the costs of supervision and the expenses of professionals employed by the Company in connection with any of the foregoing, including attorneys, accountants, and appraisers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) expenses in connection with dividends made by the Company to, and communications, bookkeeping and clerical work necessary in maintaining relations with, the Stockholders, including expenses in connection with preparing and mailing information required to be furnished to the Stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) expenses of revising, amending, or modifying the Governance Documents, and of dissolving, terminating, reforming, liquidating, or winding up the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) costs incurred in connection with any litigation in which the Company is involved as well as any examination, investigation, or other proceeding conducted by any governmental agency of the Company, including legal and accounting fees incurred in connection therewith; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any taxes, fees, and other government charges levied against the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Reimbursement Statement and Process**. Third-party out-of-pocket expenses incurred by the Manager on behalf of the Company and payable pursuant to this <u>Section</u> <u>3</u> shall be reimbursed no less than monthly to the Manager. The Manager shall prepare a statement (the "**Reimbursement Statement**") documenting such expenses of the Company paid by the Manager and the calculation of the reimbursement and shall deliver such statement to the Company prior to full reimbursement. Such reimbursement shall be made in cash within 30 calendar days following the Manager's delivery to the Company of the Reimbursement Statement documenting expenses incurred by the Manager. The Manager may elect, in its sole discretion, to defer or waive all or a portion of such reimbursement. Any portion of such deferred reimbursement not taken as to any period shall be deferred without interest and may be taken by the Manager in any other period prior to the occurrence of a liquidity event as the Manager may determine in its sole discretion. The Manager may use its own officers, employees or employees of any of its affiliates to provide accounting, tax, data processing, engineering, market research or other professional services to the Company that would otherwise be performed by third parties and, in such event, the Company will reimburse the cost of performing such services. Such reimbursements may include employment costs and related overhead expenses allocable thereto, as reasonably determined by the Manager based on the time expended by the employees who render such services, provided that no such reimbursement shall exceed the amount that would be payable by the Company if the services were provided in an arm's-length transaction with an independent third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Organization and Offering Expenses**. In addition, the Company will reimburse the Manager or an affiliate for all reasonable and direct expenses incurred in connection with (i) the organization of the Company, the Manager, and related entities, and (ii) the preparation of all materials in connection with this Offering of the Shares (collectively, "**Organization and Offering Expenses**"). Organization and Offering Expenses shall include, but are not limited to, legal, tax, private letter rulings, accounting, printing, mailing, travel, meals, due diligence costs, training and education costs, and other costs and expenses associated with organizing and marketing the Company, including fees, costs, and expenses of or incurred by the Placement Agent (as defined in the Offering Memorandum). The cumulative Organization and Offering Expenses paid by the Company will be limited to 1.5% of gross Offering proceeds. All Classes of Shares will be responsible for the pro rata portion of Organization and Offering Expenses attributable to such Class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Compensation of the Manager**.

The Manager will earn a monthly asset management fee (the "**Base Management Fee**"), a dividend incentive fee (the "**Dividend Incentive Fee**") and an incentive fee upon a Liquidity Event (as defined in the Company's Offering Memorandum) for the Company assets (the "**Liquidity Incentive Fee**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Base Management Fee**. The Base Management Fee is calculated at an annual rate of one and one-half percent (1.5%) of our total assets. The Base Management Fee is payable monthly in arrears and is calculated based on the arithmetic average value of our total assets as of the last day of (1) a calendar month and (2) the immediately preceding calendar month.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Dividend Incentive Fee.** The Dividend Incentive Fee entitles the Manager to earn a fee of 12.5% of all distributions, including all Dividends (as defined in the Offering Memorandum) and Dividend Incentive Fees, earned and/or paid out during a calendar month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If in any calendar month the Manager elects to defer receipt of its Dividend Incentive Fee to a future month, then the Manager will still earn its fee in any calendar month where Dividends are paid to the Stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Liquidity Incentive Fee**. The Liquidity Incentive Fee entitles the Manager to receive a portion of the proceeds from a Company Liquidity Event after Stockholders have received 100% of their initial invested capital plus a 7.5% annualized non-compounded return (the "**Hurdle**"). The Manager will receive 12.5% of all amounts above the Hurdle.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Deferral, Waiver and Additional Terms**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Defer or Waiver of Fees**. The Manager may elect to defer or waive all or a portion of the Management or Dividend Incentive Fee and any portion of a fee not taken as to any quarter or year will be deferred without interest and may be taken in any such other quarter prior to the occurrence of a Liquidity Event upon notice to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Restrictions Applicable to October 1, 2025 and January 1, 2026 Incentive Fee Shares**. The Company (a) acknowledges and agrees that the Manager, in consideration of past, current, and future services to the Company pursuant to <u>Section</u> <u>1</u> (the "**Services**"), is eligible to receive Dividend Incentive Fees as of October 1, 2025 and January 1, 2026, respectively, (each a "**Grant Date**") in the form of shares of common stock of the Company, pursuant to that certain Unanimous Written Consent dated August 13, 2025, (such shares the "**2025 Shares**") and (b) intends that the 2025 Shares be subject to certain terms, conditions, and restrictions, including related to the Manager's performance of future services under this Agreement. In furtherance of the foregoing, the Company hereby grants to the Manager, effective as of either Grant Date, as applicable, the 2025 Shares subject to the restrictions set forth in this <u>Section</u> <u>5(b)</u>, which restrictions shall expire in accordance with the terms of this <u>Section</u> <u>5(b)</u>. While such terms, conditions, and restrictions are in effect, the 2025 Shares subject to such restrictions shall be referred to herein as "**2025 Restricted Stock**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Vesting of 2025 Restricted Stock**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Subject to <u>Section</u> <u>5(b)(i)(B)</u> below, the 2025 Shares shall vest and cease to be 2025 Restricted Stock (but shall remain subject to the other terms of this Agreement) on the earlier of (i) the occurrence of a Company Liquidity Event and (ii) January 1, 2031 (the "**Vesting Date**"), provided that the Manager is continuing to provide Services to the Company, and this Agreement has not been terminated, as of the Vesting Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Upon termination of the Manager's Service pursuant to <u>Section</u> <u>9</u> (or otherwise), for any reason or no reason, any then-unvested shares of 2025 Restricted Stock will be forfeited immediately, automatically, and without consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Restrictions on Transfer of 2025 Restricted Stock**. The Manager shall not transfer, assign, encumber, pledge, charge, or otherwise dispose of the shares of 2025 Restricted Stock or grant any proxy with respect thereto. Any attempted transfer in violation of this <u>Section</u> <u>5(b)</u> shall be void and of no effect and the Company shall have the right to disregard the same on its books and records and to issue "stop transfer" instructions to its transfer agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **Rights as a Holder of 2025 Restricted Stock**. The Manager shall have, with respect to the shares of 2025 Restricted Stock, all of the rights of a holder of shares of the Company's common stock, including, without limitation, the right to vote such shares, to receive and retain all regular cash dividends payable to holders of such shares of record on and after either Grant Date, as applicable, and to exercise all other rights, powers and privileges of a holder of such shares. Notwithstanding the foregoing, (a) the Manager shall not be entitled to delivery of the stock certificate or certificates representing the 2025 Restricted Stock until the 2025 Shares are no longer 2025 Restricted Stock, (b) if applicable, the Company (or its designated agent) will maintain custody of the stock certificate or certificates representing the 2025 Restricted Stock and any other property ("**2025 RS Property**") issued in respect of the 2025 Restricted Stock, including stock dividends, at all times the 2025 Shares are 2025 Restricted Stock, (c) no 2025 RS Property will bear interest or be segregated in separate accounts, and (d) the Manager shall not, directly or indirectly, transfer the 2025 Restricted Stock in any manner whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **Section 83(b)**. The Company and the Manager acknowledge and agree that the Manager intends to not, and will not, make an election pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, with respect to the 2025 Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **Not an Employment or Service Agreement**. The issuance of 2025 Shares shall not constitute an agreement by the Company to employ or retain or to continue to employ or retain the Manager during the entire, or any portion of, the term of the Agreement (or any other period), including but not limited to any period during which the 2025 Shares (or any portion thereof) are outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Other Activities of the Manager.** The services of the Manager to the Company are not exclusive, and the Manager may engage in any other business or render the same, similar or different services to others including, without limitation, businesses that may directly or indirectly compete with the Company, so long as its services to the Company hereunder are not impaired thereby, nothing in this Agreement shall limit or restrict the right of any manager, partner, member (including its members and the owners of its members), officer or employee of the Manager to engage in any other business or to devote his or her time and attention in part to any other business, whether of a similar or dissimilar nature, or to receive any fees or compensation in connection therewith, provided, however, that the Manager shall notify the Company prior to being engaged to serve as a manager to a fund or another company that has a similar business strategy to the Company's business strategy. The Manager assumes no responsibility under this Agreement other than to render the services called for hereunder. It is understood that directors, officers, employees and members of the Company are or may become interested in the Manager and its Affiliates, as directors, officers, employees, partners, members, managers or otherwise, and that the Manager and its directors, officers, employees, partners, stockholders, members and managers, and the Manager's Affiliates are or may become similarly interested in the Company and/or its subsidiaries as members or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Responsibility of Dual Directors, Officers and/or Employees.** If any person who is a manager, partner, member, officer or employee of the Manager is or becomes a director, officer and/or employee of the Company and/or its subsidiaries and acts as such in any business of the Company and/or its subsidiaries, then such manager, partner, member, officer and/or employee of the Manager shall be deemed to be acting in such capacity solely for the Company and/or its subsidiaries, and not as a manager, partner, member, officer or employee of the Manager or under the control or direction of the Manager, even if paid by the Manager.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Indemnification**. The Manager, their respective Affiliates, and their respective officers, managers, partners, members, agents, employees, controlling persons and any other person or entity affiliated with the Manager each of whom shall be deemed a third party beneficiary hereof (collectively, the "**Indemnitee**") shall be exculpated from liability hereunder to the extent permissible under Delaware Law. The Company will indemnify the Indemnitee from and against any and all losses, claims, damages, liabilities, joint or several, expenses (including, without limitation, attorneys' fees and other legal fees and expenses), judgments, fines, settlements, and other amounts incurred by such Indemnitee arising from any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative matters in which such Indemnitee may be involved, or is threatened to be involved, as a party or otherwise, unless it is established that (i) the act or omission of the Indemnitee was material to the matter giving rise to the proceedings and either was committed in bad faith or was the result of active and deliberate dishonesty; (ii) the Indemnitee actually received an improper personal benefit in money, property or services; or (iii) in the case of any criminal proceeding, the Indemnitee had reasonable cause to believe that the act or omission was unlawful. As part of the indemnification obligation, the Company will advance the expenses of an Indemnitee before final disposition of any action involving an Indemnitee upon receipt of any undertaking by the Indemnitee to repay such advance amounts if it is determined that the Indemnitee is entitled to indemnification. The Company will not indemnify an Indemnitee for any losses, damages, liabilities, expenses, or other amounts arising from or out of an alleged violation of federal or state securities laws unless the following conditions are met: (i) there has been a successful adjudication on the merits of each count involving alleged securities law violations as to the particular Indemnitee, (ii) such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the particular Indemnitee, or (iii) a court of competent jurisdiction approves a settlement of the claims against a particular Indemnitee and finds that indemnification of the settlement and related costs should be made. None of the Manager, any of their affiliates, any of their respective directors, officers, managers, partners, members, agents, employees, or controlling persons, nor any other person affiliated with the Manager shall be liable for monetary damages to any Stockholder for losses sustained or liabilities incurred as a result of errors in judgment or of any act or omission if such person acted in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Effectiveness, Duration and Termination of Agreement**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Term and Effectiveness**. This Agreement shall become effective as of the date hereof, and shall remain in effect for one year (the "**Initial Term**"), and thereafter shall continue automatically for successive annual periods (a "**Renewal Term**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Termination for Cause**. This Agreement may be terminated at any time, without the payment of any penalty by either of the Company, on the one hand, or the Manager, on the other hand, if an event occurs constituting "Cause" upon thirty (30) days' prior written notice of the incident giving rise to the Cause (the "**Cause Notice Period**") and an opportunity to cure the Cause referenced in such notice prior to termination. If the reasons giving rise to such removal are cured or resolved within the Cause Notice Period, then the removal will be deemed to be withdrawn. "**Cause**" means (a) conviction of a party of the sale of any felony or misdemeanor in connection with the purchase or sale of any security or involving making any false filing with the Securities and

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Exchange Commission ("**SEC**"); (b) a party becoming subject to any final order, judgment or decree entered into that restrains or enjoins such party from engaging or continuing to engage in any conduct or practice in connection with the purchase or sale of a security, involving the making of a false SEC filing; or (c) a party becoming subject to any order of the SEC that orders such party or any of its Affiliates to cease and desist from committing or causing a violation of any scienter-based anti-fraud provision of the federal securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Termination Not for Cause**. This Agreement may be terminated at any time, without Cause and without the payment of any penalty: (i) by either of the Company upon sixty (60) days' prior written notice to Manager; or (ii) by the Manager upon not less than one hundred and twenty (120) days' prior written notice to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Assignment**. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors. This Agreement may not be assigned by the Manager without the consent of the Company **provided** that the Manager may, to the extent permitted by applicable law, assign this Agreement to any Affiliate of the Manager that direct or indirectly through one or more intermediaries is under common control with the Manager without the consent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Payments to and Duties of Manager upon Termination**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event of the termination or non-renewal of the Management Agreement or removal of the Manager as the investment manager of the Company, the Manager will cooperate with the Company and take all reasonable steps requested to assist the Company in making an orderly transition of the advisory function. After the termination or non-renewal of this Agreement, the Manager shall not be entitled to compensation for further services provided hereunder except that it shall be entitled to receive from the Company within ninety (90) days after the effective date of such termination all unpaid reimbursements and all earned but unpaid fees payable to the Manager prior to termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Manager shall as soon as reasonably practicable following termination:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Deliver to the Company a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, in each case in connection with the performance of its duties under this Agreement, covering the period following the date of the last accounting furnished to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Deliver to Company all assets and documents of the Company then in custody of the Manager; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Cooperate with the Company's reasonable request to provide an orderly management transition, including payment of the cost of such termination as required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Survival.** The provisions of <u>Section</u> <u>9</u> of this Agreement shall remain in full force and effect, and the Manager shall remain entitled to the benefits thereof, notwithstanding any termination of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Notices**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All notices, requests and other communications to any party hereunder shall be in writing (including telex, facsimile, electronic transmission or similar writing) and shall be given to such party at its address (including electronic mail address) set forth below. Each such notice, request or other communication shall be effective (1) if given by mail, 72 hours after such communication is deposited in the mails with first class postage prepaid, addressed as aforesaid or (2) if given by any other means, when delivered (including by electronic delivery) at the address set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless otherwise notified in writing, all notices, request, claims, demands and other communications shall be given to the respective parties at the addresses provided on the signature page to this Agreement or at such other address for a party as shall be specified in a notice given in accordance this Section

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Amendments**. This Agreement shall not be amended, modified or discharged, in whole or in part, except by an instrument in writing signed by the parties hereto, or their respective successors or permitted assignees. The Manager and the Company agree to cooperate in good faith to amend this Agreement to include revisions required for regulatory purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Severability**. If any provision of this Agreement shall be declared illegal, invalid, or unenforceable by any law or public policy in any jurisdiction, then such provision shall be deemed to be severable from this Agreement (to the extent permitted by law) and in any event such illegality, invalidity or unenforceability shall not affect the remainder hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Counterparts**. This Agreement may be executed in counterparts, each of which shall be deemed to be an original copy and all of which together shall constitute one and the same instrument binding on all parties hereto, notwithstanding that all parties shall not have signed the same counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Entire Agreement**. This Agreement contains the entire agreement of the parties and supersedes all prior agreements, understandings and arrangements with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **Waivers**. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **Third Party Beneficiaries**. Except for any Indemnified Party, being an intended beneficiary of this Agreement, this Agreement is for the sole benefit of the parties hereto and their permitted assigns and nothing herein shall give or be construed to give any person, other than the parties hereto and such assigns, any legal or equitable rights hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **Survival**. The provisions of <u>Sections 4(d),</u> <u>8</u>, <u>9</u>, and<u> </u><u>14</u>, and this <u>Section</u> <u>17</u> shall survive the termination of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **Gender**. Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **Titles not to Affect Interpretation**. The titles of paragraphs and subparagraphs contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **Governing Law**. This Agreement and all disputes or controversies arising out of or related to this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, and all rights and remedies shall be governed by such laws, without regard to conflict of laws principles. Subject to <u>Section</u> <u>21</u>, in the event that any dispute arises between the parties relating to or in connection with this Agreement, the parties shall attempt to resolve such dispute by discussion and negotiation within thirty (30) days after the date one such party (the "<u>Initiating Party</u>") initially raises such dispute in writing to the other party (the "<u>Responding Party</u>") and referring to this <u>Section</u> <u>20</u>. If the parties are unable to settle the dispute within thirty (30) days, the parties agree first to try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Commercial Mediation Procedures. Any and all disputed issues that are not resolved during mediation shall be finally settled by binding arbitration to be held in Philadelphia, PA unless the parties mutually agree to another location and such arbitration is to be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association, as from time to time amended and in effect. The arbitration shall be conducted by a three-person panel of neutral arbitrators. If the Initiating Party and the Responding Party are unable to agree upon the arbitrators within thirty (30) days of the date mediation was concluded, then the arbitrators shall be appointed by the American Arbitration Association. Each arbitrator shall be a person who is knowledgeable about and has recognized ability and experience in dealing with the subject matter of the dispute. The arbitrators will decide the dispute in accordance with Delaware law. If the arbitrators declare that any term or provision of this Agreement is invalid or unenforceable, the parties agree that the arbitrators making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration, or area of the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified. The decision shall be rendered in writing. An award of damages shall be limited to direct damages and shall not include an award of consequential, punitive or exemplary damages. Finally, the arbitrators will determine the expenses of the arbitration and the party who shall be charged therewith or the allocation of the expenses between the parties in the discretion of the arbitrators. Additionally, the arbitrators shall specify procedures intended to expedite the arbitration process, such as page limits on pleadings and limitations on the number of depositions and other forms of discovery. The arbitration decision shall be final and binding upon all parties. Judgment upon any award rendered by the arbitration panel may be entered in any court having jurisdiction thereof or having jurisdiction over the party against whom enforcement is sought or having jurisdiction over any of such party's assets. To the maximum extent permitted by law, the parties hereby waive (and agree to cause their respective Affiliates to waive) any right of appeal from any judgment rendered upon an award, particularly including (but not limited to) appeals with respect to any question of law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **Specific Performance**. The parties hereto agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof, in addition to any other remedy to which they are entitled at law or in equity. The parties agree that any suit, action or proceeding seeking such injunction(s) or specific performance shall be brought in the federal courts located in the State of Delaware or the Delaware Court of Chancery, so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and that any cause of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of Delaware, and each party hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each party agrees that service of process on such party as provided in <u>Section</u> <u>10</u> shall be deemed effective service of process on such party. For the avoidance of doubt, the parties hereto agree that any application under this <u>Section</u> <u>21</u> would be sought only for interim orders pending resolution of the dispute in accordance with <u>Section</u> <u>20</u> and all disputes between the parties hereto shall be finally disposed of in accordance with <u>Section</u> <u>20</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. **Representations, Warranties and Covenants of the Manager**. The Manager represents, warrants and covenants to the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Manager is a limited liability company duly organized and validly existing under the laws of the State of Delaware with the power to own and possess its assets and carry on its business as the business is now being conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery and performance by the Manager of this Agreement is within the Manager's powers and has been duly authorized by all necessary actions on the part of the Manager and its members and managers and no action by or in respect of, or filing with, any governmental body, agency or official is required on the part of the Manager for the execution, delivery or performance of this Agreement by the Manager. The execution, delivery and performance of this Agreement by the Manager does not violate, contravene or constitute a default under (i) any provision of any applicable law, rule or regulation, (ii) the Manager's limited liability company operating agreement or certificate of formation, or (iii) any agreement, judgment, injunction, order, decree or other instruments binding upon the Manager or any of the Manager's property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Manager has met, in all material respects, and will continue to meet, in all material respects, for the duration of this Agreement, any applicable federal or state requirements, or the applicable requirements of any regulatory or industry self-regulatory agency, necessary to be met by the Manager in order for the Manager to perform the services contemplated by this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Manager will carry out its responsibilities under this Agreement in compliance in all material respects with (i) any applicable federal or state laws, rules or regulations, including securities laws, rules and regulations, (ii) the Company's business objectives, guidelines, strategy, policies and limitations as may be set by the Board, the Officers of the Company, or a Committee thereof from time to time and (iii) such other policies or directives as the Board, the Officers of the Company, or a Committee thereof may from time to time establish or issue and that the Company communicates to the Manager in writing, provided that the Company will promptly notify the Manager in writing of changes to the matters identified in (ii) or (iii) above.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date and year first above written.

---

| | |
|:---|:---|
| **WHITEHAWK MANAGEMENT, LLC** | **WHITEHAWK MANAGEMENT, LLC** |
| By: | /s/ Jeffrey Slotterback |
|  | Name: Jeffrey Slotterback |
|  | Title: Chief Financial Officer |
| Address: | 2000 Market Street |
|  | Office Suite 910 |
|  | Philadelphia, PA 19103 |
| **WHITEHAWK INCOME CORPORATION** | **WHITEHAWK INCOME CORPORATION** |
| By: | /s/ Daniel Herz |
|  | Name: Daniel Herz |
|  | Title: Chief Executive Officer |
| Address: | 2000 Market Street |
|  | Office Suite 910 |
|  | Philadelphia, PA 19103 |

---

## Exhibit 10.3

**Exhibit 10.3** 

***Execution Version***

PURCHASE AND SALE AGREEMENT

by and between

THREE RIVERS ROYALTY, LLC

as Seller,

and

WHITEHAWK INCOME MARCELLUS LLC

as Buyer

Dated as of March 31, 2025

------

**TABLE OF CONTENTS** 

Page

---

| | |
|:---|:---|
|  **ARTICLE 1** DEFINITIONS | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Definitions | 1 |
|  **ARTICLE 2** PURCHASE AND SALE OF ASSETS | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Purchase and Sale of the Assets | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Excluded Assets | 2 |
|  **ARTICLE 3** PURCHASE PRICE | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Purchase Price | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Adjustment to Purchase Price | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Payment | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Closing Statement | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 Post-Closing Adjustment | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 Right to Proceeds | 5 |
|  **ARTICLE 4** REPRESENTATIONS AND WARRANTIES OF SELLER | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Organization of Seller | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Authorization; Approval; Enforceability | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 No Conflicts | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 Bankruptcy | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 Litigation | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 Taxes | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 Material Contracts | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 Preferential Purchase Rights; Required Consents | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 No Brokers | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 No Judgments | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 Suspense Funds | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12 Affiliate Contracts | 8 |
|  **ARTICLE 5** REPRESENTATIONS AND WARRANTIES OF BUYER | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Organization of Buyer | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Authorization; Approval; Enforceability | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 No Conflicts | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 Litigation | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 Securities Law Compliance | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 Buyer's Independent Investigation | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 Bankruptcy | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 No Brokers | 10 |
|  **ARTICLE 6** COVENANTS | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Further Assurances | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Fees and Expenses | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 Assumed Obligations | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 Termination of Participation Right | 10 |

---

i

------

---

| | |
|:---|:---|
|  **ARTICLE 7** TAX MATTERS | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 Allocation of Property Taxes | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 Payment of Taxes; Filing of Tax Returns | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 Tax Refunds | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 Transfer Taxes | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 Tax Cooperation | 11 |
|  **ARTICLE 8** CLOSING | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Closing | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 Closing Deliverables by Seller | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 Closing Deliverables by Buyer | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 Records; Recording | 13 |
|  **ARTICLE 9** INDEMNIFICATION AND WAIVERS | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 Indemnification | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Limitations on Liability | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 Procedures | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 Waiver of Consequential Damages | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 Waivers and Disclaimers | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 Exclusive Remedy and Release | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 Express Negligence Rule | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 No Duplication | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 Tax Treatment of Post-Closing Payments | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 Special Warranty | 19 |
|  **ARTICLE 10** GOVERNING LAW; ARBITRATION; JURY TRIAL WAIVER | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 Governing Law | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 Jurisdiction; Venue; Waiver of Jury Trial | 19 |
|  **ARTICLE 11** OTHER PROVISIONS | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 Notices | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 Assignment | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 Rights of Third Parties | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 Counterparts | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 Entire Agreement; Appendices, Exhibits and Schedules; Preparation of Agreement | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6 Disclosure Schedules | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7 Amendments | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8 Publicity | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9 Severability | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.10 Waivers | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.11 Rules of Construction | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12 No Recourse | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.13 Confidentiality | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.14 Specific Performance | 23 |

---

ii

------

**<u>List of Appendices, Exhibits and Schedules</u>** 

---

| | |
|:---|:---|
| <u>Appendices</u>: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appendix A | Definitions |
| <u>Exhibits</u>: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit A-1 | Fee Minerals |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit A-2 | ORRIs |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit A-3 | NPRIs |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit A-4 | Wells |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit B | Closing Statement |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit C-1 | Form of Assignment |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit C-2 | Form of Deed |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit D | Form of Letter in Lieu |
| <u>Schedules</u>: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 1(a) | Seller Knowledge Individuals |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 1(b) | Buyer Knowledge Individuals |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 4.5 | Litigation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 4.6 | Taxes |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 4.7 | Material Contracts |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 4.11 | Suspense Funds |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 4.12 | Affiliate Contracts |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule EA | Excluded Assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule MR | Seller Mortgages |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule PE | Permitted Encumbrances |

---

iii

------

**PURCHASE AND SALE AGREEMENT** 

THIS PURCHASE AND SALE AGREEMENT (this "<u>Agreement</u>"), dated as of March 31, 2025 (the "<u>Execution Date</u>"), is by and between Three Rivers Royalty, LLC, a Texas limited liability company ("<u>Seller</u>") and WhiteHawk Income Marcellus LLC, a Delaware limited liability company ("<u>Buyer</u>"). Seller and Buyer are sometimes referred to herein individually as a "<u>Party</u>" and collectively as the "<u>Parties</u>."

**Recitals:** 

WHEREAS, Seller desires to sell and convey to Buyer, and Buyer desires to purchase and acquire from Seller, all of Seller's right, title and interest in and to the Assets (as hereinafter defined) in the manner and on the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements hereinafter set forth, for the monetary consideration hereinafter set forth, and subject to the terms and provisions herein contained, the Parties agree as follows:

**ARTICLE 1** 

**Definitions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Definitions</u>. In addition to the terms defined in the preamble of this Agreement, for purposes hereof, the capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in <u>Appendix A.</u>

**ARTICLE 2** 

**Purchase and Sale of Assets** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Purchase and Sale of the Assets</u>. Subject to the terms and conditions of this Agreement, Seller agrees to sell, assign and deliver to Buyer, and Buyer agrees to purchase and acquire from Seller at the Closing, but effective as of the Effective Time, all of Seller's right, title and interest in and to the following, other than the Excluded Assets (subject to such exclusion, collectively, the "<u>Assets</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all mineral interests, fee mineral interests, other mineral rights (of any kind and however defined), fee oil and gas rights, and other mineral and/or oil and gas assets based upon, derived from or measured by a fee oil and gas estate in and to the tracts of land within the Target Area, including those described on <u>Exhibit A-1</u> (the "<u>Fee Properties</u>"), including those subject to one or more oil and gas leases as described on <u>Exhibit A-1</u> (each, a "<u>Fee Mineral Lease</u>"), together with all associated (i) rights, benefits and powers conferred upon Buyer as the holder of the Fee Properties, including appurtenant surface rights and water rights with respect to the Fee Properties executive rights, including the right to execute leases, and other rights to produce minerals in place, (ii) all lessor rights under the Fee Mineral Leases (including reversionary rights), and (iii) rights to receive all royalties (including lessor royalties), production payments, bonuses, rentals and all other profits, income or payments attributable to the foregoing and/or the Wells, in each case, to the extent attributable to periods from and after the Effective Time (and, if applicable, to the extent payable under the terms of the relevant Fee Mineral Lease or any subsequent oil and gas lease covering the applicable property) (collectively, the "<u>Fee Minerals</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all overriding royalty interests in the oil and gas leases within the Target Area, including those listed on <u>Exhibit A-2</u> (the "<u>ORRI Leases</u>"), together with any and all associated rights, to the extent applicable, to receive profits or income attributable to the ownership thereof and/or the Wells, in each case, to the extent attributable to periods and payable under the terms of the relevant instruments (the "<u>ORRI Instruments</u>") from and after the Effective Time (collectively, the "<u>ORRIs</u>");

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all non-participating royalty interests in and to Hydrocarbons in, on and under or produced, saved or sold from the lands within the Target Area, including those described on <u>Exhibit A-3</u> (the "<u>NPRI Properties</u>"), together with all associated rights to receive all royalties (including lessor royalties), production payments and all other profits or income attributable to the foregoing and/or the Wells, in each case, to the extent attributable to periods from and after the Effective Time (collectively, the "<u>NPRIs</u>", and together with the Fee Minerals and the ORRIs, collectively the "<u>Mineral Properties</u>" and each, a "<u>Mineral Property</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all proceeds, revenues, or other benefits attributable to production from or the ownership of the Mineral Properties, including all rights to receive Hydrocarbons underlying, produced from or otherwise allocable or attributable to the Mineral Properties and the oil and/or gas wells within the Target Area, including those described on <u>Exhibit A-4</u> (the "<u>Wells</u>"), in each case, to the extent attributable to periods from and after the Effective Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) to the extent assignable (with consent, if applicable), all presently existing Contracts, if any, to which Seller or any of its Affiliates is a party to the extent applicable to the Mineral Properties, rights and interests described in subsections (a) through (d) of this <u>Section 2.1;</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) copies of all files, records and data in Seller's possession, solely to the extent that they relate to the Mineral Properties and the rights and interests described in subsections (a) through (e) of this <u>Section 2.1,</u> excluding (i) the general corporate files and records of Seller insofar as they relate to Seller's business generally (including, for purposes of clarity, those related to Seller's Taxes) and are not required for the future ownership of the Assets, (ii) any files, records or data to the extent disclosure or transfer would result in a violation of applicable Law or is subject to any Required Consent that is not obtained, (iii) reserve studies and evaluations, (iv) records relating to the negotiation and consummation of the purchase and sale of the Assets, (v) any files, records or data relating to Income Taxes of Seller or any of its Affiliates, (vi) any files, records or data attributable to any oil, gas and/or mineral lease burdening the Assets in which any Affiliate of Seller owns an interest, other than such files, records or data appertaining to an Asset to which the owner thereof is expressly entitled pursuant to the terms of such oil, gas and/or mineral lease and (vii) any files, records or data relating to lead generation for the acquisition of the Assets or any other properties or assets (collectively, and subject to such exclusions, the "<u>Records</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all rights, claims, interests and causes of action (including rights to trade credits, receivables, warranties, audit rights (including rights to receive refunds and revenues in connection therewith) and rights to receive indemnity, funds, reimbursements or other payments and rights under policies or agreements of insurance), in each case to the extent attributable to the other Assets with respect to any period of time prior to, on or after the Effective Time, except, in each case, to the extent relating to any Excluded Asset or any matter for which Seller has an indemnification obligation under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Excluded Assets</u>. Notwithstanding anything to the contrary in <u>Section 2.1</u> or elsewhere in this Agreement, Seller specifically excludes, reserves and retains the following from the transactions contemplated by this Agreement (collectively, the "<u>Excluded Assets</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all rights, claims, interests, and causes of action to the extent related to any other Excluded Assets, any Retained Liabilities or any other matter for which Seller has an indemnification obligation under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any data, software and records to the extent disclosure or transfer is prohibited or subjected to payment of a fee or other consideration by any license agreement or other agreement with a Person other than an Affiliate of Seller, or by applicable Law, and for which no consent to transfer has been received or for which Buyer has not agreed in writing to pay the fee or other consideration, as applicable;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all rights to proceeds, revenues, income, receipts and credits attributable to any of the Assets that are attributable to the time period prior to the Effective Time (including, for purposes of clarity, any such proceeds or revenues that are or may be held in suspense and all security or other deposits made with respect thereto), as well as all claims or causes of action (whether asserted as of the Execution Date or not) for mispayment, nonpayment or miscalculation of such proceeds and revenues and all audit rights and rights to reimbursement with respect to such proceeds, revenues, income, receipts and credits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all claims for refunds of, credits attributable to, loss carry forwards with respect to, or similar Tax assets relating to, (i) Property Taxes attributable to the Assets with respect to any Pre-Effective Time Tax Period or the portion of any Straddle Period ending on the day before the date on which the Effective Time occurs (as determined in accordance with the principles set forth in <u>Section 7.1</u>), (ii) Income Taxes of Seller or any of its Affiliates, (iii) Taxes attributable to the Excluded Assets or (iv) any other Taxes relating to the acquisition, ownership or operation of the Assets that are attributable to any Tax period (or portion of any Straddle Period) ending prior to the Effective Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all of Seller's proprietary computer software, patents, trade secrets, copyrights, names, trademarks, logos and other intellectual property, including for purposes of clarity, any and all of Seller's algorithms, interpretive and extrapolative data, information and projections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all documents and instruments of Seller that may be protected by attorney-client privilege, excluding title opinions and title memoranda;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all rights, title and interest in and to any Mineral and Royalty Interest of any type (whether recorded or unrecorded, vested, contingent or otherwise) owned by Three Rivers Royalty II, LLC, a Colorado limited liability company, Three Rivers Royalty III, LLC, a Delaware limited liability company, or Three Rivers Royalty IV, LLC, a Delaware limited liability company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all assets, properties and interests more particularly described in <u>Schedule EA</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all personal property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) all hedges, futures, swaps and other derivatives, including rights relating thereto, arising pursuant to hedging arrangements of Seller or any of its Affiliates or otherwise affecting the Assets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) all (i) agreements and correspondence between any Seller, on the one hand, and TenOaks Energy Advisors, LLC or any of its Affiliates (collectively, the "<u>Advisor</u>"), on the other hand, relating to the transactions contemplated in this Agreement, (ii) lists of and bids submitted by prospective purchasers for such transactions, (iii) correspondence and confidentiality agreements between or among Seller or Advisor, or any of their respective Representatives, and any prospective purchaser other than Buyer and (iv) offering materials prepared by the Advisor and circulated to prospective purchasers.

**ARTICLE 3** 

**Purchase Price** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Purchase Price</u>. In consideration for the purchase of the Assets, Buyer agrees to pay to Seller, One Hundred Eighteen Million Dollars ($118,000,000) (the "<u>Purchase Price</u>"), subject to adjustment as set forth in this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Adjustment to Purchase Price</u>. The Purchase Price for the Assets shall be adjusted as follows: (a) reduced (without duplication) by (i) the amount of any income, proceeds, revenues, receipts or credits allocable to Buyer under <u>Section 3.6</u> which are paid to Seller and (ii) the amount of Property Taxes allocated to Seller pursuant to <u>Section 7.1,</u> but that are paid or otherwise economically borne by Buyer or any of its Affiliates; and (b) increased (without duplication) by (i) the amount of any income, proceeds, revenues, receipts or credits allocable to Seller under <u>Section 3.6</u> which are paid to Buyer and (ii) the amount of Property Taxes allocated to Buyer pursuant to <u>Section 7.1,</u> but that are paid or otherwise economically borne by Seller or any of its Affiliates. The Purchase Price, adjusted as set forth in this Agreement (including this <u>Section 3.2</u>), shall be referred to as the "<u>Adjusted Purchase Price</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Payment</u>. At the Closing, Buyer shall pay to Seller, in cash by wire transfer of immediately available funds, to the account or accounts designated by Seller, an amount equal to the Closing Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Closing Statement</u>. The statement attached hereto as <u>Exhibit B</u> (the "<u>Closing Statement</u>") will be used to calculate the Adjusted Purchase Price at the Closing and be subject to further adjustment as provided in <u>Section 3.5.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Post-Closing Adjustment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revised Closing Statement</u>. On or before the date that is one hundred twenty (120) days after the Closing Date, Seller shall prepare and deliver to Buyer a revised version of the Closing Statement setting forth the final Adjusted Purchase Price (the "<u>Revised Closing Statement</u>"), which shall be accompanied by the supporting documentation (if, and to the extent, in Seller's possession) reasonably necessary for Buyer to review and verify any adjustments set forth thereunder. The Adjusted Purchase Price reflected in the Revised Closing Statement shall take into account any prior payments made under <u>Section 3.6.</u> The Revised Closing Statement shall become final and binding upon the Parties on the date (the "<u>Final Settlement Date</u>") that is thirty (30) days following receipt thereof by Buyer, unless Buyer delivers to Seller a Notice of its disagreement ("<u>Notice of Disagreement</u>") with respect to any matters set forth in the Revised Closing Statement prior to such date, which Notice of Disagreement shall specify in reasonable detail the basis of any disagreement so asserted. If a Notice of Disagreement is received by Seller by the date specified in the immediately preceding sentence, then the Final Settlement Date shall be the earlier of (i) the date upon which Seller and Buyer agree in writing with respect to all matters specified in the Notice of Disagreement and (ii) the date upon which the final statement is issued by the Accounting Referee. Seller shall provide such assistance (including, to the extent applicable, access to the Records) as Buyer may reasonably request in connection with its preparation of a Notice of Disagreement and, in furtherance of the foregoing, shall provide Buyer with prompt written notice following receipt by Seller of any income, proceeds, revenues, receipts or credits allocable to Buyer under <u>Section 3.6,</u> including any amounts which may be held in suspense as of the Closing Date; and Buyer shall provide such assistance (including, to the extent applicable, access to the Records) as Seller may reasonably request in connection with its preparation of the Revised Closing Statement and, in furtherance of the foregoing, shall provide Seller with prompt written notice following receipt by Buyer of any income, proceeds, revenues, receipts or credits allocable to Seller under <u>Section 3.6,</u> including any amounts which may be held in suspense as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Revised Closing Statement Resolution</u>. During the thirty (30) day period following the date on which Seller receives a Notice of Disagreement, Seller and Buyer shall use their respective commercially reasonable efforts to attempt in good faith to resolve in writing any differences that they may have with respect to all matters specified in the Notice of Disagreement. If at the end of such thirty (30) day period (or earlier by mutual agreement), Buyer and Seller have not reached agreement in writing on such matters, upon any Party's request, the Parties shall submit the matters that remain in dispute to the Houston, Texas office of an independent, nationally recognized accounting firm mutually agreed

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upon by the Parties (and absent agreement by the Parties as to such arbitrator within ten (10) Business Days after the end of such thirty (30) days period, the arbitrator shall be selected by the Houston, Texas office of the American Arbitration Association) (the "<u>Accounting Referee</u>") for review and final and binding resolution. The Accounting Referee shall render a decision choosing either Seller's position or Buyer's position with respect to each item or amount in the Revised Closing Statement which was identified in the Notice of Disagreement and which remains in dispute and the Accounting Referee's decision resolving the matters in dispute shall be consistent with the terms and conditions in this Agreement and the other applicable Transaction Documents. The decision of the Accounting Referee shall be (i) final and binding on the Parties and (ii) final and non-appealable for all purposes hereunder. The Accounting Referee shall have no *ex parte* communications with the Parties concerning the Notice of Disagreement presented to it. The Accounting Referee shall act as an expert for the limited purpose of determining the specific Revised Closing Statement disputes presented to it and shall not act as an arbitrator or consider, hear or decide any matters except the specific Revised Closing Statement disputes presented and shall not award damages, interest or penalties (including punitive or exemplary damages, lost profits, consequential, special or indirect damages) to either Party. In addition, the Accounting Referee shall agree in writing to keep strictly confidential the specifics and existence of any matters submitted as well as all proprietary records of the Parties, if any, reviewed by the Accounting Referee in the process of resolving such disputes. Notwithstanding anything to the contrary herein, the Parties acknowledge and agree that the fees and expenses of the Accounting Referee under this <u>Section 3.5(b)</u> shall be borne one-half (1/2) by Buyer and one-half (1/2) by Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Final Settlement</u>. If the amount of the Final Purchase Price exceeds the amount of the Closing Payment, then, within five (5) days after the Final Settlement Date, Buyer shall pay to Seller the amount by which the Final Purchase Price exceeds the amount of the Closing Payment. If the amount of the Final Purchase Price is less than the amount of the Closing Payment, then Seller shall pay to Buyer, within five (5) days after the Final Settlement Date, the amount by which the Final Purchase Price is less than the amount of the Closing Payment. Any such post-Closing payment made pursuant to this <u>Section 3.5(c)</u> shall be made by means of a wire transfer of immediately available funds to a bank account designated by the applicable Party entitled to receive such funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Right to Proceeds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Entitlement</u>. Without limitation of <u>Section 6.2</u>: (i) Buyer shall be entitled to all royalties, bonuses, rentals and other proceeds and revenues from or related or attributable to production from the Assets from and after the Effective Time and to all other income, proceeds, revenues, receipts and credits earned with respect to the Assets from and after the Effective Time (collectively, the "<u>Buyer Entitlements</u>"), in each case, including (A) any bonuses which may result from new leases, amendments, ratifications or renewals of leases affecting and applicable to the Assets executed after the Effective Time and (B) any other amounts that constitute the Assets under this Agreement; and (ii) Seller shall be entitled to all royalties, bonuses, rentals and other proceeds and revenues from or related or attributable to production from the Assets prior to the Effective Time and to all other income, proceeds, revenues, receipts and credits earned with respect to the Assets prior to the Effective Time (collectively, the "<u>Seller Entitlements</u>"), in each case, including (A) any amounts which may be held in suspense as of the Closing Date and (B) giving effect to any such amounts that constitute Excluded Assets under this Agreement. Without duplication of any adjustments made to the Purchase Price pursuant to <u>Section 3.2,</u> in furtherance of the foregoing provisions of this <u>Section 3.6,</u> the Parties shall periodically account to one another in accordance with the procedures set forth in this <u>Section 3.6.</u> Notwithstanding the foregoing, all matters with respect to the allocation of, and responsibility for, Taxes pursuant to this Agreement shall be addressed in <u>Article 7.</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Statement Procedure</u>. For the period that begins on the Closing Date and runs through the end of the twelfth full calendar month following the month in which the Closing occurs (such period, the "<u>Post-Closing Statement Period</u>"), each Party shall, beginning with the first full month following the month in which the Closing occurs (and including, in that instance, the partial month in which the Closing occurs), prepare and deliver to the other Party a statement of all revenues, income, proceeds, receipts and credits received by the delivering Party with respect to the Assets within thirty (30) days after the end of each such calendar month (the "<u>Monthly Statements</u>"), whether attributable to production from the Assets related to the time period prior to, on or after the Effective Time. Each Monthly Statement shall clearly identify all such revenues, income, proceeds, receipts and credits received by the delivering Party with respect to the Assets during the applicable period and the delivering Party shall provide all supporting documentation reasonably necessary for the other Party to verify such Monthly Statements. The receiving Party shall review each received Monthly Statement within thirty (30) days of receipt and the Parties shall endeavor in good faith to mutually agree on the final Monthly Statement for each month within such thirty (30) day period. When the Parties have mutually agreed on the final Monthly Statement for a month during the Post-Closing Statement Period, the owing Party shall pay the owed Party any owed amounts within three (3) Business Days of such finalization of the Monthly Statement.

**ARTICLE 4** 

**Representations and Warranties of Seller** 

Seller represents and warrants to Buyer, except as disclosed on the Disclosure Schedules, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Organization of Seller</u>. Seller is duly formed, validly existing and in good standing under the Laws of the state of its formation and is duly qualified, authorized, registered and/or licensed, as applicable, to do business in each other jurisdiction in which the conduct of its business or ownership or leasing of its properties is such as to require it to be so qualified, authorized, registered and/or licensed, except where the failure to be so qualified, authorized, registered and/or licensed would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Authorization; Approval; Enforceability</u>. Seller has all requisite organizational power and authority to execute and deliver this Agreement and each other Transaction Document to be executed or delivered by Seller at the Closing and to perform its obligations hereunder and thereunder. The execution, delivery and performance of this Agreement and each other Transaction Document executed and delivered by Seller at the Closing and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized and approved by Seller, and no other action on the part of Seller is necessary to authorize this Agreement or any other Transaction Document executed or delivered by Seller. This Agreement has been duly and validly executed and delivered by Seller, and each other Transaction Document executed by Seller at the Closing has been duly and validly executed and delivered by Seller, and this Agreement and each other Transaction Document executed by Seller at the Closing, assuming the execution and delivery by Buyer, constitutes a valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws affecting creditors' rights generally and to general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>No Conflicts</u>. The execution, delivery, and performance by Seller of this Agreement and each other Transaction Document executed by Seller and the consummation by Seller of the transactions contemplated hereby and thereby, do not and will not (a) conflict with or result in a violation of any provision of the Organizational Documents of Seller or (b) conflict with or result in a violation of any provision of, or constitute a default under, or give rise to any right of acceleration under, any material bond, debenture, note, mortgage or indenture to which Seller is a party or by which Seller may be bound (subject to such contractual Consents or approvals which (i) Seller has obtained prior to the Closing or (ii) constitute Customary Consents).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Bankruptcy</u>. There are no bankruptcy or receivership Proceedings pending before any Governmental Authority, being contemplated by or, to Seller's Knowledge, Threatened against Seller or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Litigation</u>. As of the Execution Date, except as set forth on <u>Schedule 4.5</u>, there is no Proceeding pending, or, to Seller's Knowledge, Threatened (a) against Seller that would adversely affect the execution, delivery or consummation of this Agreement by Seller or (b) against Seller that relates to the Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Taxes</u>. Except as set forth on <u>Schedule 4.6</u>, (a) all material Tax Returns required to be filed by Seller with respect to Property Taxes have been timely (taking into account valid extensions of time to file) and properly filed, each such Tax Return is true, correct and complete in all material respects and all material Property Taxes that have become due and payable by Seller have been properly paid in full, other than such Property Taxes being contested in good faith in appropriate proceedings set forth on <u>Schedule 4.6</u>, (b) there are no Liens (other than Permitted Encumbrances) on any of the Assets attributable to any unpaid Taxes, and (c) no audit, administrative, judicial or other proceeding with respect to material Property Taxes has been commenced by any Governmental Authority or, to Seller's Knowledge, is presently pending.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Material Contracts</u>. To Seller's Knowledge, except as set forth on <u>Schedule 4.7,</u> there are no Contracts to which Seller is a party that are material to, or binding upon, the Assets (and that will, from and after the Closing, be binding upon Buyer) ("<u>Material Contracts</u>"). There exists no material breach or default under any Material Contract by Seller or its Affiliates or, to Seller's Knowledge, by any other Person that is a party to any such Material Contract, and no event has occurred that with notice or lapse of time or both would constitute any breach or default under any such Material Contract by Seller, any of Seller's Affiliates, or, to Seller's Knowledge, any other Person who is a party to such Material Contract, and none of Seller or any of Seller's Affiliates has given or received any unresolved written notice of any actual, potential or threatened termination, cancellation, breach, violation or default with respect to any Material Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Preferential Purchase Rights; Required Consents</u>. There are no preferential purchase rights, rights of first refusal or similar rights that are applicable to the transfer of the Assets in connection with the transactions contemplated hereby (each, a "<u>Preferential Purchase Right</u>") and there are no Required Consents that are applicable to the transfer of the Assets in connection with the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>No Brokers</u>. Neither Seller nor any of its Affiliates has entered into any Contract with any Person that would require the payment by Buyer or any of its Affiliates of any brokerage fee, finders' fee or other commission in connection with the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 <u>No Judgments</u>. There are no unsatisfied judgments or injunctions issued by a court of competent jurisdiction or other Governmental Authority outstanding against Seller related to the Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 <u>Suspense Funds</u>. To the Knowledge of Seller, as of the Execution Date, <u>Schedule 4.11</u> identifies each Well for which any amounts are being held in suspense by Third Parties and which may be owing to Seller as the owner of mineral, lessor royalty, ORRI, NPRI or other interests in respect of past production of oil, gas or other Hydrocarbons attributable to the Assets.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12 <u>Affiliate Contracts</u>. <u>Schedule 4.12</u> sets forth a true and complete list of all Contracts between the Seller, on the one hand, and any Affiliate of Seller, on the other hand, that are material to, or binding upon, the Assets.

**ARTICLE 5** 

**Representations and Warranties of Buyer** 

Buyer hereby represents and warrants to Seller as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Organization of Buyer</u>. Buyer is duly formed, validly existing and in good standing under the Laws of the state of its formation and is duly qualified, authorized, registered and/or licensed, as applicable, to do business in each jurisdiction in which the conduct of its business or ownership or leasing of its properties makes such qualification, authorization, registration and/or licensing necessary, and, as of Closing, will be qualified, authorized, registered and/or licensed, as applicable, to do business and in good standing in each jurisdiction in which any of the Assets are located if so required in order to own any of the Assets, in each case except where the failure to be so qualified, authorized, registered and/or licensed would not have a material adverse effect on Buyer's ability to proceed with Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Authorization; Approval; Enforceability</u>. Buyer has all requisite organizational power and authority to execute and deliver this Agreement and each other Transaction Document to be executed or delivered by Buyer at Closing and to perform its obligations hereunder and thereunder. The execution, delivery and performance of this Agreement and each other Transaction Document executed and delivered by Buyer at Closing and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized and approved by Buyer, and no other action on the part of Buyer is necessary to authorize this Agreement or any other Transaction Document executed or delivered by Buyer. This Agreement has been duly and validly executed and delivered by Buyer, and each other Transaction Document executed by Buyer at Closing has been duly and validly executed and delivered by Buyer, and this Agreement and each other Transaction Document executed by Buyer at Closing, assuming the execution and delivery by Seller, constitutes a valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws affecting creditors' rights generally and to general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>No Conflicts</u>. The execution, delivery, and performance by Buyer of this Agreement and each other Transaction Document executed by Buyer and the consummation by Buyer of the transactions contemplated hereby and thereby, do not and will not (a) conflict with or result in a violation of any provision of the Organizational Documents of Buyer or (b) conflict with or result in a violation of any provision of, or constitute a default under, or give rise to any right of acceleration under, any bond, debenture, note, mortgage or indenture to which Buyer is a party or by which Buyer may be bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Litigation</u>. There are no Proceedings pending or, to Buyer's Knowledge, Threatened against Buyer or any of its Affiliates, that would adversely affect the execution, delivery or consummation of this Agreement by Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Securities Law Compliance</u>. Buyer is an "accredited investor," as such term is defined in Regulation D of the Securities Act of 1933, as amended. Buyer is acquiring the Assets for its own account for use in its trade or business, and not with a view toward or for sale associated with any distribution thereof, nor with any present intention of making a distribution thereof within the meaning of the Securities Act of 1933, as amended, any applicable state blue sky Laws or any other applicable securities Law without in any way limiting the other terms and provisions of this Agreement. Buyer has substantial knowledge and experience in financial and business matters and the oil and gas industry such that Buyer is capable of evaluating, and has evaluated, the merits and risks inherent in purchasing the Assets and is able to bear the economic risks of such investment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Buyer's Independent Investigation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to executing this Agreement, Buyer has (or its Representatives have) (i) been afforded an opportunity to (A) examine and evaluate the Assets and such materials as it has requested to be made available to it by Seller or Seller's Representatives and (B) discuss with Seller and its Representatives such materials and the nature of the Assets and (ii) satisfied itself through its own due diligence as to the condition of, and contractual arrangements and regulatory and other matters affecting or relating to, the Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Buyer is (or its Representatives are) (i) sophisticated in the investigation, inspection, evaluation, review, purchase and ownership of oil and gas properties and related interests, including those located in the areas where the Assets are located and (ii) a party capable of making such investigation, inspection, evaluation and review of the Assets as a reasonably prudent purchaser would deem appropriate under the circumstances with respect to all matters relating to the Assets, including their value, operation and suitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In making its decision to enter into this Agreement and to consummate the transactions contemplated hereby, Buyer has relied solely on the express representations of Seller set forth in <u>Article 4</u> of this Agreement, its independent investigation of, and judgment with respect to, the Assets and the advice of its own Representatives and has not been induced by and has not relied on (and Buyer expressly acknowledges that it is not entitled to rely on) any comments, statements or information (whether written or oral or express or implied) provided by or on behalf of Seller or any Representative of Seller (including, for purposes of clarity, the Advisor).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Buyer acknowledges and agrees that none of Seller or any Representative of Seller makes or has made any comments, statements, representations or warranties (whether written or oral or express or implied), as to the accuracy and completeness of any of the information provided by or made available to Buyer or its Representatives in data rooms, management presentations or supplemental due diligence information provided to Buyer (including its Representatives) in connection with discussions or access to management of Seller or its Representatives or in any other form in expectation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Buyer acknowledges and agrees that (i) the due diligence information includes certain projections, estimates and other forecasts, and certain business plan information, (ii) there are uncertainties inherent in attempting to make such projections, estimates and other forecasts and plans and Buyer is familiar with such uncertainties and (iii) Buyer is taking full responsibility for making its own evaluation of the adequacy and accuracy of all projections, estimates and other forecasts and plans so furnished to it and any use of or reliance by Buyer on such projections, estimates and other forecasts and plans shall be at its sole risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Buyer agrees to the fullest extent permitted by Law, that none of Seller or any of its Representatives shall have any liability or responsibility whatsoever to Buyer or its Representatives on any basis (including in contract or tort, under federal or state securities laws or otherwise) resulting from the distribution to Buyer, or Buyer's use of, any due diligence information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Bankruptcy</u>. There are no bankruptcy or receivership Proceedings pending before any Governmental Authority, being contemplated by or, to Buyer's Knowledge, Threatened against Buyer or any of its Affiliates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>No Brokers</u>. Neither Buyer nor any of its Affiliates has entered into any Contract with any Person that would require the payment by Seller or any of its Affiliates of any brokerage fee, finders' fee or other commission in connection with the transactions contemplated by this Agreement.

**ARTICLE 6** 

**Covenants** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Further Assurances</u>. Subject to the terms of this Agreement, each Party shall (a) use commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary or desirable, under applicable Law, contract or otherwise, to consummate the transactions contemplated by this Agreement and (b) from and after the Closing, execute and deliver such other documents, and take such other actions as may be reasonably requested by the other Party in order to carry out the purposes of this Agreement and the other Transaction Documents executed or delivered at the Closing in accordance with their respective terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Fees and Expenses</u>. Except as otherwise provided in this Agreement, all fees and expenses, including, without limitation, fees and expenses of counsel, financial advisors, accountants and consultants incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the Party incurring such fee or expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Assumed Obligations</u>. From and after the Closing, Buyer shall assume and hereby agrees to assume, fulfill, perform, pay and discharge the Assumed Obligations with respect to or otherwise attributable or related to the Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Termination of Participation Right</u>. Seller and Buyer hereby acknowledge and agree that, following the Closing, Section 6.4(a) of that certain Purchase and Sale Agreement, dated November 13, 2023, by and between Seller, Buyer, and Whitehawk Finco Holdings LLC (for the limited purposes set forth therein) shall terminate and be of no further force or effect.

**ARTICLE 7** 

**Tax Matters** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Allocation of Property Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With respect to any Assets purchased by Buyer: Seller shall be allocated and bear all Property Taxes attributable to such Assets with respect to (a) any Pre-Effective Time Tax Period and (b) the portion of any Straddle Period ending on the day before the date on which the Effective Time occurs, and Buyer shall be allocated and bear all Property Taxes attributable to such Assets with respect to (x) any Post-Effective Time Tax Period and (y) the portion of any Straddle Period beginning on the date on which the Effective Time occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of determining the allocations described in <u>Section 7.1(a)</u>, Property Taxes shall be allocated by (a) in the case of Property Taxes imposed on a periodic basis, prorating each such Property Tax based on the number of days in the Straddle Period that occur before the date on which the Effective Time occurs, on the one hand, and the number of days in such Straddle Period that occur on or after the date on which the Effective Time occurs, on the other hand, (b) in the case of Property Taxes attributable to the severance or production of Hydrocarbons (other than such Property Taxes described in clause (a) above), allocating such Property Taxes to the period (or portion of the Straddle Period) in which the severance or production giving rise to such Property Taxes occurred, and (c) in the case of Property Taxes that are based upon or related to sales or receipts or imposed on a transactional basis (other than Taxes described in <u>clauses (a)</u> or <u>(b)</u>), allocating to the taxable period in which the transaction giving rise

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to such Property Taxes occurred. To the extent the actual amount of a Property Tax is not determinable at the time an adjustment to the Purchase Price is to be made with respect to such Property Tax pursuant to <u>Section 3.2,</u> (x) Seller and Buyer shall utilize the most recent information available in estimating the amount of such Property Tax for purposes of such adjustment and (y) upon the later determination of the actual amount of such Property Tax, timely payments will be made from Seller to Buyer or from Buyer to Seller, as applicable, to the extent necessary to cause Seller and Buyer to bear the amount of such Property Tax that is allocable to it under this <u>Section 7.1.</u> With respect to clause (y) of the preceding sentence, each Party shall send to the other Party a statement that apportions each Property Tax in accordance with this <u>Section 7.1</u> based upon the amount of Property Taxes actually invoiced and paid to the applicable Governmental Authority by such Party and such statement shall be accompanied by proof of such Party's actual payment of such Taxes. For purposes of applying this <u>Section 7.1</u> to Property Taxes imposed on a periodic basis, the period for such Property Taxes shall begin on the date on which ownership of the applicable Asset gives rise to liability for the particular Property Tax and shall end on the day before the next such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Payment of Taxes; Filing of Tax Returns</u>. With respect to any Assets purchased by Buyer, (a) Buyer shall be responsible for paying all Taxes with respect to such Assets that become due and payable after the Closing Date applicable thereto and shall file with the appropriate Governmental Authority any and all Tax Returns required to be filed after the Closing Date with respect to such Taxes, (b) Buyer shall submit each such Tax Return that relates to a Pre-Effective Time Tax Period or a Straddle Period to Seller for its review and comment reasonably in advance of the due date therefor and (c) Buyer shall timely file any such Tax Return, incorporating any reasonable comments received from Seller prior to the due date therefor. The Parties agree that (1) this <u>Section 7.2</u> is intended to solely address the timing and manner in which certain Tax Returns relating to Property Taxes are filed and the Property Taxes shown thereon are paid to the applicable Governmental Authority, and (2) nothing in this <u>Section 7.2</u> shall be interpreted as altering the manner in which Property Taxes are allocated to and economically borne by the Parties (except for any penalties, interest or additions to Tax imposed as a result of any breach by Buyer of its obligations under this <u>Section 7.2,</u> which shall be borne solely by Buyer).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Tax Refunds</u>. The Parties and their respective Affiliates shall reasonably cooperate with the other Party in connection with obtaining any refund of, credits in respect of, or offset in respect of Taxes. If Buyer (or its Affiliate) receives or otherwise realizes a refund, credit, or other amount which constitutes an Excluded Asset pursuant to this Agreement, Buyer (or its Affiliate) shall pay such amount (including any interest thereon) to Seller within ten (10) Business Days after such receipt. If Seller (or its Affiliate) receives or otherwise realizes a refund, credit, or other amount which constitutes an Asset that Buyer has purchased pursuant to this Agreement, Seller (or its Affiliate) shall pay such amount (including any interest thereon) to Buyer within ten (10) Business Days after such receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Transfer Taxes</u>. To the extent that any sales, purchase, transfer, stamp, documentary stamp, registration, use or similar taxes ("<u>Transfer Taxes</u>") are payable by reason of the purchase by Buyer of any Assets under this Agreement, such Transfer Taxes shall be borne and timely paid by Buyer. Seller and Buyer will cooperate with each other in determining the amount of any such Transfer Taxes, if any, that are due in connection with the transactions contemplated by this Agreement and, if required by applicable Law, Buyer will pay any such Transfer Tax to Seller and Seller shall remit such Transfer Taxes to the appropriate Governmental Authority and any such payment shall not be considered a reduction in the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Tax Cooperation</u>. The Parties shall cooperate fully, as and to the extent reasonably requested by the other Party, in connection with the filing of Tax Returns and any audit, litigation or other Proceeding with respect to Taxes relating to the Assets (including, for the avoidance of doubt, obtaining any refund, credit, or other offset in respect of a Tax). Such cooperation shall include the retention and (upon another Party's request) the provision of records and information that are relevant to any such Tax

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Return or audit, litigation or other Proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided under this Agreement. Seller and Buyer agree to retain all books and records with respect to Tax matters pertinent to the Assets relating to any Tax period beginning before the Closing Date until the expiration of the statute of limitations of the respective Tax periods and to abide by all record retention agreements entered into with any Governmental Authority. Notwithstanding anything to the contrary in this Agreement (including <u>Article</u> <u>9</u>), Seller shall be entitled to direct and control any controversy, examination, audit, dispute, or other proceeding relating to Taxes (a "<u>Tax Contest</u>") for which Seller could be liable, in whole or in part, under this Agreement; *provided*, that (a) Buyer shall have the right to participate in such Tax Contest at its own expense, (b) Seller shall keep Buyer reasonably informed of all material matters that come to its attention in respect of such Tax Contest and (c) if the settlement, compromise, or other disposition of such Tax Contest reasonably is expected to have an adverse effect on Buyer (or any of its Affiliates) Seller shall not consent to the entry of any judgment or enter into any compromise or settlement with respect to such Tax Contest without the prior written consent of Buyer (which shall not be unreasonably conditioned, withheld or delayed).

**ARTICLE 8** 

**Closing** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Closing</u>. The closing of the sale and transfer of the Assets to Buyer as contemplated by this Agreement (the "<u>Closing</u>") shall take place at the offices of Gibson, Dunn & Crutcher LLP, 811 Main Street, Suite 3000, Houston, Texas, 77002, at 10:00 a.m. (prevailing central time) on the Execution Date (the "<u>Closing Date</u>"), or in such other manner and/or place as Seller and Buyer may agree upon in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Closing Deliverables by Seller</u>. At the Closing, Seller has caused the following documents to be delivered and the following events to have occurred, each being a condition precedent to the other and each being deemed to have occurred simultaneously with the others and the execution of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) duly executed and acknowledged counterparts to the Instruments of Conveyance for the Assets, in sufficient duplicate originals to facilitate recording in all appropriate jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a validly executed form W-9 in respect of Seller (or, if Seller is an entity disregarded as separate from its regarded owner for federal income tax purposes, in respect of the regarded owner of Seller for federal income tax purposes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) duly executed and acknowledged counterparts to the Mortgage Releases for the Assets, in sufficient duplicate originals to facilitate recording in all appropriate jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) duly executed letters-in-lieu for the Assets, in the form attached hereto as <u>Exhibit</u> <u>D</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) such other documents or other agreements provided for herein or that are necessary to effectuate the transactions contemplated hereby as Buyer may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Closing Deliverables by Buyer</u>. At the Closing, Buyer has caused the following documents to be delivered and the following events to have occurred, each being a condition precedent to the others and each being deemed to have occurred simultaneously with the others and the execution of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) duly executed and acknowledged counterparts to the Instruments of Conveyance for the Assets, in sufficient duplicate originals to facilitate recording in all appropriate jurisdictions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Closing Payment by wire transfer of immediately available funds to the account(s) previously designated in writing to Buyer by Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) duly executed letters-in-lieu for the Assets, in the form attached hereto as <u>Exhibit</u> <u>D</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) such other documents or other agreements provided for herein or that are necessary to effectuate the transactions contemplated hereby as Seller may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <u>Records; Recording</u>. Within thirty (30) days following the Closing, Seller shall make available to Buyer copies of the Records in their current form and format, for pickup from Seller's offices (or download to the extent maintained electronically) during normal business hours (at Buyer's sole cost and expense); *provided*, that (a) Seller shall not be required to conduct processing, conversion, compiling or any other further work with respect to the delivery of the Records pursuant to this <u>Section 8.4</u> and (b) Seller shall retain originals and/or copies of any or all of the Records. Promptly after Closing, Buyer shall, at its sole cost and expense (including, for purposes of clarity, the payment of any applicable stamp taxes or other similar fees or taxes), file and record all documents and instruments for which filing of record is appropriate (including, for purposes of clarity, the Instruments of Conveyance) that are executed and delivered at the Closing in the public records of each applicable Governmental Authority and provide Seller with file-stamped copies of all such recorded and approved documents reasonably promptly following Buyer's receipt thereof.

**ARTICLE 9** 

**Indemnification and Waivers** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Indemnification by Seller</u>. From and after the Closing, Seller shall indemnify, defend and hold harmless Buyer, its Affiliates, and each of its and their respective members, partners, directors, managers, officers, employees, agents, consultants, advisers and other Representatives (the "<u>Buyer Indemnified Parties</u>") from and against any and all Losses actually incurred by the Buyer Indemnified Parties as a result of, relating to or arising out of (i) any Breach of any representation or warranty made by Seller in <u>Article 4</u>, (ii) any Breach of any covenant or agreement made or to be performed by Seller under this Agreement with respect to or related to the Assets and (iii) the Retained Liabilities applicable to, arising out of or related to the Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by Buyer</u>. From and after the Closing, Buyer shall indemnify, defend, and hold harmless Seller, its Affiliates, and each of its and their respective members, partners, directors, managers, officers, employees, agents, consultants, advisers and other Representatives (the "<u>Seller Indemnified Parties</u>") from and against any and all Losses actually incurred by the Seller Indemnified Parties as a result of, relating to or arising out of (i) any Breach of any representation or warranty made by Buyer in <u>Article 5,</u> (ii) any Breach of any covenant or agreement made or to be performed by Buyer under this Agreement with respect to or related to the Assets and (iii) the Assumed Obligations applicable to, arising out of or related to the Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Indemnification by Buyer (Investor Claims)</u>. From and after the Closing, Buyer shall indemnify, defend, and hold harmless the Seller Indemnified Parties from and against any and all Losses actually incurred by the Seller Indemnified Parties as a result of, relating to or arising out of any Proceeding or other claim brought against Seller or any of its Affiliates by or on behalf of any investor (or potential investor) of Buyer, Buyer Fund, Sponsor or any of its or their respective Affiliates related to the transactions contemplated by this Agreement (including, for purpose of clarity, Buyer's acquisition of an interest in the Assets as contemplated under this Agreement) and/or Buyer's, Sponsor's, Daniel Herz's or any of its or their respective Affiliates' fundraising activities and/or any other related actions and activities taken in connection therewith.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Limitations on Liability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Threshold</u>. The Buyer Indemnified Parties shall not be entitled to indemnity under <u>Section 9.1(a),</u> for Losses with respect to any claim for Breach of any representation or warranty of Seller set forth in this Agreement (other than Losses arising from a Breach of a Fundamental Representation) unless the Losses incurred with respect to such claim exceed the Indemnity Threshold, at which time all such Losses shall be fully indemnified subject to other limitations set forth in this Agreement. For purposes of clarity, Losses disallowed pursuant to this <u>Section 9.2(a)</u> shall not be counted toward the Indemnity Deductible under <u>Section 9.2(b).</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnity Deductible</u>. The Buyer Indemnified Parties will not be entitled to indemnity under <u>Section 9.1(a)</u> for Losses with respect to any claim for Breach of any representation or warranty of Seller set forth in this Agreement (other than Losses arising from a Breach of a Fundamental Representation) until the aggregate amount of all such Losses exceeds the Indemnity Deductible, and thereafter, the Buyer Indemnified Parties shall only be entitled to indemnity for the aggregate amount of such Losses in excess of the Indemnity Deductible, subject to the other limitations set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Seller Liability Cap</u>. Notwithstanding anything to the contrary contained elsewhere in this Agreement, Seller shall not be required to indemnify the Buyer Indemnified Parties under <u>Section 9.1(a),</u> in the aggregate, for an amount of Losses (other than Losses arising from a Breach of a Fundamental Representation or Seller's representations and warranties set forth in <u>Section 4.6</u>) exceeding an amount equal to ten percent (10%) of the Adjusted Purchase Price; *provided, however*, that in no event shall Seller be required to indemnify the Buyer Indemnified Parties under this Agreement, in the aggregate, for an amount of Losses exceeding an amount equal to one hundred percent (100%) of the Adjusted Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Survival</u>. Subject to the terms of this <u>Section 9.2(d)</u>, the respective indemnification obligations of Buyer and Seller under this Agreement for any Breach of any of their respective representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing as follows: (i) the representations and warranties of Seller contained in this Agreement, and the indemnification obligations of Seller under this Agreement for any Breach by Seller thereof pursuant to <u>Section 9.1(a)</u> or otherwise, shall terminate on the date that is twelve (12) months after the Closing Date; *provided, however*, that any such indemnification obligations of Seller pursuant to <u>Section 9.1(a)</u> for any Breach of (A) its representations and warranties set forth in <u>Section 4.6</u> shall survive until thirty (30) days after the expiration of the applicable statute of limitations and (B) the Fundamental Representations shall survive until the expiration of the applicable statute of limitations; (ii) the representations and warranties of Buyer contained in this Agreement, and the indemnification obligations of Buyer under this Agreement for any Breach by Buyer thereof pursuant to <u>Section 9.1(b)</u>, shall terminate upon the expiration of the applicable statute of limitations; (iii) the indemnification obligations of Buyer pursuant to <u>Section 9.1(b)(iii)</u> and <u>Section 9.1(c)</u> shall survive from and after the Closing without time limit; (iv) all respective indemnification obligations with respect to a failure to comply with the covenants and agreements of Buyer and Seller set forth in this Agreement (other than those contained in <u>Article 7</u>) pursuant to <u>Section 9.1</u> or otherwise that, by their nature, constitute a Post-Closing Covenant or Agreement with respect to the Closing, shall survive the Closing until the applicable covenant and/or agreement is fully performed in accordance with its terms hereunder; (v) all of the respective indemnification obligations with respect to a failure to comply with the covenants and agreements of Buyer and Seller set forth in <u>Article 7</u> pursuant to

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<u>Section 9.1</u> or otherwise shall survive until thirty (30) days after the expiration of the applicable statute of limitations and (vi) Seller's indemnification obligations set forth in <u>Section 9.1(a)(iii)</u> with respect to the Retained Liabilities shall survive the Closing until the date that is twelve (12) months following the Closing. Notwithstanding anything to the contrary contained in this Agreement, (x) as a condition precedent to any rights to indemnification or defense under this <u>Article 9,</u> any claim made by any Party must be made in a Notice delivered to the other Party on or prior to the expiration of the applicable survival period, if any, with respect to the applicable representation, warranty, covenant or agreement (y) neither Seller nor Buyer shall have any liability or obligation under <u>Section 9.1</u> with respect to any applicable representation, warranty, covenant or agreement (including for Breaches thereof) if such claim is not so made on or prior to the expiration of the applicable survival period and Seller's or Buyer's respective indemnification and defense obligations under <u>Section 9.1,</u> and the rights of the Buyer Indemnified Parties or the Seller Indemnified Parties to indemnification and defense under <u>Section 9.1,</u> as it relates thereto, as applicable, shall be deemed to terminate at such time and (z) the indemnification obligations of Buyer and Seller under or with respect to each of their respective representations, warranties, covenants or agreements (including for Breaches thereof) shall be of no further force and effect after the applicable date of expiration set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Rescission</u>. Seller and Buyer acknowledge that, after the Closing, the payment of money, as limited by the terms of this Agreement and without limitation of rights to equitable remedies hereunder, shall be adequate compensation for Breach of any representation, warranty, covenant or agreement contained in this Agreement or for any other claim arising in connection with or with respect to the transactions contemplated in this Agreement. As the payment of money shall be adequate compensation, Buyer and Seller waive any right to rescind this Agreement or any of the transactions consummated hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Knowledge</u>. Notwithstanding anything in this Agreement to the contrary in no event shall the Buyer Indemnified Parties be entitled to assert the Breach or failure of any representation, warranty or covenant of Seller or any condition precedent of Buyer in this Agreement or Transaction Document as a basis for a claim for indemnification or defense under this <u>Article 9</u> to the extent that any Buyer Indemnified Party had Knowledge of such Breach or failure prior to the Closing Date and the Buyer Indemnified Parties shall be deemed to have waived any claim for Breach of a covenant, representation or warranty or for indemnity hereunder related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Mitigation</u>. From and after the Closing, to the extent and in the manner required to do so under applicable Law, each Party shall seek to mitigate and minimize Losses under or in relation to this Agreement upon and after becoming aware of any event or condition that would reasonably be expected to give rise to any Losses that are indemnifiable under this <u>Article 9.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Insurance</u>. The amount of any liabilities for which any member of the Buyer Indemnified Parties are entitled to indemnification under this Agreement or in connection with or with respect to the transactions contemplated by this Agreement shall be reduced by any corresponding insurance proceeds from insurance policies carried by any member of the Buyer Indemnified Parties actually realized (net of any collection costs and excluding the proceeds of any insurance policy issued or underwritten by the Buyer Indemnified Parties).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Procedures</u>. Except as otherwise set forth in <u>Section 7.2</u> or <u>Section 7.3</u>, claims for indemnification under this Agreement shall be asserted and resolved as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Third Party Claim</u>. If any Party entitled to seek indemnification under this Agreement (an "<u>Indemnified Party</u>") receives Notice of the assertion or commencement of any claim asserted against an Indemnified Party by a Third Party ("<u>Third Party Claim</u>"), the Indemnified Party shall as soon as reasonably practicable, but in no event more than thirty (30) days after receipt of such Notice, (i) notify the Party obligated to indemnify such Indemnified Party pursuant hereto (the "<u>Indemnifying Party</u>") of the Third Party Claim and (ii) transmit to the Indemnifying Party a Notice ("<u>Claim Notice</u>") describing in reasonable detail the nature of the Third Party Claim, a copy of all papers served with respect to such claim (if any), the amount or estimated amount of damages, and the specific basis of the Indemnified Party's request for indemnification under this Agreement. Failure to timely provide such Claim Notice shall not affect the right of the Indemnified Party's indemnification hereunder, except to the extent the Indemnifying Party is actually prejudiced by such delay or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnifying Party</u>. In the case of a claim for indemnification based upon a Third Party Claim, the Indemnifying Party shall have thirty (30) days from its receipt of the relevant Claim Notice to notify the Indemnified Party whether it admits or denies its liability to the Indemnified Party with respect to such Third Party Claim. If the Indemnifying Party admits liability with respect to such Third Party Claim, the Indemnifying Party shall have the right to defend the Indemnified Party against such Third Party Claim only if such Indemnifying Party provides Notice to the Indemnified Party of its election to defend the Indemnified Party against such Third Party Claim at its sole cost and expense within thirty (30) days from the Indemnifying Party's receipt of the relevant Claim Notice. The Indemnified Party is authorized, prior to and during such thirty (30)-day period, at the expense of the Indemnifying Party, to file any motion, answer or other pleading that it shall deem necessary or appropriate to protect its interests or those of the Indemnifying Party and that is not prejudicial to the Indemnifying Party. If the Indemnifying Party notifies the Indemnified Party of its desire to defend the Indemnified Party against such Third Party Claims in accordance with the foregoing, then such Indemnifying Party (the "<u>Assuming Indemnifying Party</u>") shall have the right and the obligation to diligently defend, at its sole cost and expense, such Third Party Claim, with counsel reasonably selected by the Assuming Indemnifying Party, to a final conclusion or settlement at the discretion of the Assuming Indemnifying Party in accordance with this <u>Section 9.3(b)</u>. The Assuming Indemnifying Party shall have full control of such defense and proceedings, including any compromise or settlement thereof; *provided, however*, that the Assuming Indemnifying Party shall not settle any Third Party Claim or consent to the entry of any judgment with respect thereto without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed); *provided further*, that such consent shall not be required if (i) the settlement agreement or judgment contains a complete and unconditional general release by the Third Party asserting the claim to all Indemnified Parties affected by the claim, (ii) the settlement agreement or judgment does not contain or impose any obligation, limitation, liability, sanction or restriction upon the Indemnified Party or its Affiliates or the conduct of any business by the Indemnified Party or its Affiliates, and (iii) the settlement agreement or judgement does not adversely impact the Indemnified Parties or the Assets (including the value thereof). If requested by the Assuming Indemnifying Party, the Indemnified Party agrees, at the sole cost and expense of the Assuming Indemnifying Party, to cooperate with the Assuming Indemnifying Party and its counsel in contesting any Third Party Claim which the Assuming Indemnifying Party elects to contest, including (1) the making of any related reasonable counterclaim against the Person asserting the Third Party Claim or any cross complaint against any Person and (2) making reasonably available business records and employees relevant to the Third Party Claim. The Indemnified Party may participate in, but not control, any defense or settlement of any Third Party Claim controlled by the Assuming Indemnifying Party pursuant to this <u>Section 9.3(b)</u>, and, except in accordance with the preceding sentence, the Indemnified Party shall bear its own costs and expenses with respect to such participation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Indemnified Party</u>. If the Indemnifying Party does not notify the Indemnified Party that the Indemnifying Party elects to defend the Indemnified Party pursuant to <u>Section 9.3(b)</u> or if the Indemnifying Party so elects to defend the Indemnified Party but fails to diligently prosecute or settle such Third Party Claim within five (5) days after receiving written notice from the Indemnified Party to the effect that the Indemnifying Party has so failed, then the Indemnified Party shall have the right to defend, and be reimbursed for its reasonable costs and expenses (but only if the Indemnified Party is actually entitled to

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indemnification hereunder) in regard to the Third Party Claim with counsel selected by the Indemnified Party. In such circumstances, the Indemnified Party shall defend the Third Party Claim in good faith and have full control of such defense and proceedings; *provided, however*, that the Indemnified Party may not enter into any compromise or settlement of such Third Party Claim if indemnification is to be sought hereunder, without the Indemnifying Party's prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed). The Indemnifying Party may participate in, but not control, any defense or settlement controlled by the Indemnified Party pursuant to this <u>Section 9.3(c),</u> and the Indemnifying Party shall bear its own costs and expenses with respect to such participation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Direct Claim</u>. Any claim by an Indemnified Party on account of Losses that does not result from a Third Party Claim (a "<u>Direct Claim</u>") shall be asserted by giving the Indemnifying Party reasonably prompt Notice thereof, but in any event not later than thirty (30) days after the Indemnified Party obtains actual knowledge of such Direct Claim; *provided, however*, that failure to timely provide such Notice shall not affect the right of the Indemnified Party to indemnification hereunder, except to the extent the Indemnifying Party is actually prejudiced by such delay or omission. Such Notice by the Indemnified Party shall (i) describe the Direct Claim in reasonable detail, (ii) describe the specific basis of the Indemnified Party's request for indemnification under this Agreement, (iii) include copies of all written background material relevant thereto and (iv) indicate the actual amount of Losses that have been sustained and the estimated amount of Losses that may be sustained by the Indemnified Party. The Indemnifying Party shall have a period of thirty (30) days within which to respond in writing and to either accept or reject such Direct Claim. If the Indemnifying Party does not so respond within such thirty (30) day period, the Indemnifying Party shall be deemed to have rejected such claim, in which event the Indemnified Party shall be free to pursue such remedies as may be available to the Indemnified Party on the terms and subject to the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Waiver of Consequential Damages</u>. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, NEITHER BUYER, SELLER NOR ANY OF THEIR RESPECTIVE AFFILIATES SHALL BE LIABLE HEREUNDER TO ANY INDEMNIFIED PARTY FOR ANY (a) PUNITIVE OR EXEMPLARY DAMAGES OR (b) LOST PROFITS, DIMINUTION IN VALUE OR CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES, IN EACH CASE IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND ALL OF WHICH ARE HEREBY WAIVED, EXCEPT IN EACH CASE OF THE FOREGOING <u>CLAUSES (a)</u> AND <u>(b)</u>, TO THE EXTENT ANY SUCH LOST PROFITS, DIMINUTION IN VALUE OR DAMAGES ARE INCLUDED IN ANY ACTION BY A THIRD PARTY AGAINST SUCH INDEMNIFIED PARTY AND SUCH LOST PROFITS, DIMINUTION IN VALUE OR DAMAGES ARE OTHERWISE INDEMNIFIABLE OR RECOVERABLE LOSSES UNDER THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>Waivers and Disclaimers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Title and Environmental Matters</u>. Except for the express and specific representations and warranties of Seller set forth in <u>Article 4</u> and the Special Warranty set forth in <u>Section 9.10</u> and contained in the Instruments of Conveyance, as applicable, Seller expressly disclaims and negates, and Buyer hereby waives any liability or responsibility of Seller for, all representations, warranties, or covenants related to title or the environmental or physical condition of the Assets of any kind or nature, either express, implied or statutory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Defects</u>. Except for the express and specific representations and warranties of Seller set forth in <u>Article 4</u> and the Special Warranty set forth in <u>Section 9.10</u> and contained in the Instruments of Conveyance, as applicable, (i) the Assets are being conveyed and assigned to and accepted by Buyer in their "as is, where is" condition and state of repair, and with all faults and defects, without any representation, warranty or covenant of any kind or nature, express, implied or statutory, including, but not

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limited to, warranties of marketability, quality, condition, conformity to samples, merchantability and/or fitness for a particular purpose, all of which are expressly disclaimed and negated by Seller and waived by Buyer and (ii) Buyer hereby waived for all purposes (A) all defects, irregularities, objections and other matters associated with the title to the Assets under this Agreement or any of the other Transaction Documents or otherwise and (B) any defect, irregularity, objection or other matter associated with the title to the Assets of which Buyer had Knowledge prior to the Execution Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Additional Disclaimers</u>. Other than the representations and warranties of Seller set forth in <u>Article 4</u> and the Special Warranty set forth in <u>Section 9.10</u> and contained in the Instruments of Conveyance, Seller expressly disclaims and negates, and Buyer hereby waives, any liability or responsibility for, (i) all representations and warranties, express or implied, at Law or in equity and (ii) any statement or information orally or in writing made or communicated to Buyer, any of its Affiliates or any of its or their respective Representatives, including but not limited to, (A) any statement or information orally or in writing made or communicated to Buyer, any of its Affiliates or any of its or their respective Representatives by Seller, any of its Affiliates or any of its or their respective Representative (including, for purposes of clarity, the Advisor), (B) as to the accuracy, materiality or completeness of any data or records made available to Buyer, its Affiliates or any of its or their respective Representatives with respect to the Assets or (C) concerning the quality or quantity of Hydrocarbon reserves, if any, attributable to the Assets, or the ability of the Assets to produce Hydrocarbons, or the product prices which Buyer or any other Person is or will be entitled to receive from the sale of any such Hydrocarbons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>Exclusive Remedy and Release</u>. Without limiting a Party's express rights pursuant to this Agreement and the other Transaction Documents, the indemnification remedies set forth in this <u>Article 9</u> shall, from and after the Closing, constitute the sole and exclusive remedies of the Parties with respect to any and all claims (whether arising before or after the Closing) relating to the transactions consummated pursuant to this Agreement or any other Transaction Document at or in connection with the Closing (including, for purposes of clarity, Breaches of any representations, warranties, covenants or agreements of the Parties contained in this Agreement or any other Transaction Document), the Assets or Seller's ownership or operation of the Assets or the condition of the Assets, including statutory or other claims arising under any Law. Except as specified in <u>Section 9.1(a)</u> and the Special Warranty set forth in <u>Section 9.10</u> and contained in the Instruments of Conveyance, effective as of the Closing, Buyer, on its own behalf and on behalf of the Buyer Indemnified Parties, hereby releases, remises and forever discharges Seller and its Affiliates and all of such Persons' respective equityholders, partners, members, directors, officers, employees, agents, advisors, and other Representatives from any and all suits, legal or administrative Proceedings, claims, demands, damages, costs, liabilities, Losses interest or causes of action whatsoever, at law or in equity, known or unknown, which Buyer or the Buyer Indemnified Parties might now or subsequently have, based on, relating to or arising out of this Agreement or any other Transaction Document, the transactions contemplated by this Agreement or any other Transaction Document, the ownership, use or operation of any of the Assets prior to the Closing or the condition, quality, status or nature of any of the Assets prior to the Closing, including rights to contribution under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, and any similar environmental Law, Breaches of statutory or implied warranties, nuisance or other tort actions, rights to punitive damages, common law rights of contribution and rights under insurance maintained by Seller or any of its Affiliates, in each case with respect to the Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 <u>Express Negligence Rule</u>. THE INDEMNIFICATION AND WAIVER PROVISIONS IN THIS AGREEMENT SHALL BE ENFORCEABLE REGARDLESS OF WHETHER ANY PERSON (INCLUDING THE PERSON FROM WHOM INDEMNIFICATION IS SOUGHT) ALLEGES OR PROVES THE SOLE, CONCURRENT, CONTRIBUTORY OR COMPARATIVE NEGLIGENCE OF THE PERSON SEEKING INDEMNIFICATION OR THE SOLE OR CONCURRENT STRICT LIABILITY IMPOSED UPON THE PERSON SEEKING INDEMNIFICATION. BUYER AND SELLER ACKNOWLEDGE THAT THIS STATEMENT COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND IS CONSPICUOUS.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 <u>No Duplication</u>. Any liability for indemnification hereunder shall be determined without duplication of recovery by reason of the state of facts giving rise to such liability constituting a Breach of more than one representation, warranty, covenant, obligation, or agreement herein. Neither Buyer nor Seller shall be liable for indemnification with respect to any Losses to the extent the Purchase Price has been adjusted pursuant to <u>Section 3.2</u> with respect to such Losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 <u>Tax Treatment of Post-Closing Payments</u>. The Parties agree that any payments made by one Party to the other Party pursuant to this <u>Article 9</u> or <u>Article 7</u> shall be treated for all Tax purposes as an adjustment to the Purchase Price for the Assets unless otherwise required by applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 <u>Special Warranty</u>. From and after the Closing Date, Seller hereby warrants and agrees to defend in this Agreement and the Instruments of Conveyance, Defensible Title to the Assets, unto Buyer, its successors and assigns, against every Person whomsoever claiming or to claim the same or any part thereof, by, through or under Seller, but not otherwise (the "<u>Special Warranty</u>"). The Parties acknowledge and agree that the foregoing Special Warranty shall constitute and be considered a special warranty of title by, through and under Seller (and not a general warranty of title). To assert a claim for breach of Seller's Special Warranty, Buyer shall be required to provide Notice to Seller, which shall set forth the matters asserted to have resulted in such a breach, on or before the date that is twelve (12) months following the Closing Date. For all purposes of this Agreement and the Instruments of Conveyance, Buyer shall be deemed to have waived, and Seller shall not have any further liability for, any breach of Seller's Special Warranty that Buyer fails to assert in a Notice delivered to Seller prior to the date that is twelve (12) months following the Closing Date.

**ARTICLE 10** 

**Governing Law; Arbitration; Jury Trial Waiver** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Governing Law</u>. This Agreement shall be governed and construed in accordance with the Laws of the State of Texas, without regard to the Laws that might be applicable under conflicts of Laws principles; *provided*, *however* that determinations regarding the validity, transfer and vesting of title to any interest in or to any Asset, shall apply the law of the applicable jurisdiction(s) where such Asset is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Jurisdiction; Venue; Waiver of Jury Trial</u>. Jurisdiction and venue with respect to all disputes or controversies arising under, in relation to or involving this Agreement, any of the Transaction Documents or any of the transactions contemplated hereby or thereby (each, subject to such exceptions set forth above, a "<u>Dispute</u>") shall be proper only in the federal courts of the United States located in Harris County, Texas or, if not permissible in federal courts, the state courts located in Harris County, Texas, and each Party irrevocably agrees that all Disputes permitted to be commenced in court shall be heard and determined exclusively in such courts. The Parties hereby irrevocably waive, to the fullest extent permitted by Law, any objection which they may now or hereafter have to the venue of any Dispute brought in such court or any defense of inconvenient forum for the maintenance of such Dispute. A judgment in any such Dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. EACH OF THE PARTIES AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF ANY OTHER PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF.

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**ARTICLE 11** 

**Other Provisions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 <u>Notices</u>. All notices and other communications that are required or that may be given pursuant to this Agreement (including notices to change the below information) ("<u>Notice</u>" or "<u>Notices</u>") shall be (a) sufficient in all respects if given in writing, in English, and delivered by recognized courier service (including registered or certified mail or by overnight delivery, including by Federal Express) or by e-mail transmission to the Party to be noticed pursuant to the contact information below that corresponds with the applicable form of notice and (b) deemed received when actually delivered (as reflected by the courier's receipt, evidence of delivery or written confirmation of successful transmission, as applicable):

If to Buyer, to:

WhiteHawk Income Marcellus LLC

2000 Market Street, Suite 910

Philadelphia, PA 19103

Attention: Jeffrey M. Slotterback

Email: jslotterback@whitehawkenergy.com

With a copy (which shall not constitute Notice) to:

Weil, Gotshal & Manges LLP

700 Louisiana Street, Suite 3700

Houston, Texas 77002

Attention: Omar Samji

E-mail: omar.samji@weil.com

If to Seller, to:

Three Rivers Royalty, LLC

5990 Greenwood Plaza Blvd., Ste. 120

Greenwood Village, CO 80111

Attention: Nick Reiland

E-mail: nick@sanjacintominerals.com

With a copy (which shall not constitute Notice) to:

Gibson, Dunn & Crutcher LLP

811 Main Street, Suite 3000

Houston, Texas 77002

Attention: Michael De Voe Piazza

E-mail: mpiazza@gibsondunn.com

or to such other address or addresses as the Parties may from time to time designate in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 <u>Assignment</u>. No Party shall assign this Agreement or any part hereof without the prior written consent of the other Party and any assignment made without such consent shall be void. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the Parties and their respective permitted successors and assigns.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 <u>Rights of Third Parties</u>. Notwithstanding anything contained in this Agreement to the contrary, nothing expressed or implied in this Agreement or in any other Transaction Document is intended or shall be construed to confer upon or give any Person, other than the Parties (and their respective successors and permitted assigns), or the Parties' respective related Indemnified Parties hereunder, any right or remedies under or by reason of this Agreement or the Transaction Documents; *provided*, that, for purposes of clarity, only a Party (and its permitted successors and assigns) will have the right to enforce the provisions of this Agreement and each other Transaction Document on its own behalf or on behalf of its respective Indemnified Parties (including, for purposes of clarity, with respect to any indemnity claims that may be pursued pursuant to <u>Article 9</u> hereof), but shall not be obligated to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Any .pdf or other electronic transmission hereof or signature hereon shall, for all purposes, be deemed originals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 <u>Entire Agreement; Appendices, Exhibits and Schedules; Preparation of Agreement</u>. This Agreement (together with the Appendices, Exhibits and Schedules to this Agreement), the other Transaction Documents constitute the entire agreement between the Parties and supersede any other agreements, whether written or oral, that may have been entered into by the Parties or any of their respective Affiliates relating to the transactions contemplated hereby. All of the Appendices, Exhibits and Schedules referred to in this Agreement are hereby incorporated into this Agreement by reference and constitute a part of this Agreement. Each Party has received a complete set of Appendices, Exhibits and Schedules prior to and as of the execution of this Agreement. Both Seller and Buyer and their respective counsel participated in the preparation of this Agreement. In the event of any ambiguity in this Agreement, no presumption shall arise based on the identity of the draftsman of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6 <u>Disclosure Schedules</u>. Unless the context otherwise requires, all capitalized terms used in the Disclosure Schedules shall have the respective meanings ascribed thereto in this Agreement. No reference to or disclosure of any item or other matter in the Disclosure Schedules shall be construed as an admission or indication that such item or other matter is material or that such item or other matter is required to be referred to or disclosed in the Disclosure Schedules. No disclosure in the Disclosure Schedules relating to any possible breach or violation of any agreement or Law shall be construed as an admission or indication that any such breach or violation exists or has actually occurred. The statements and disclosures in the Disclosure Schedules qualify and relate to the corresponding provisions in the Sections or subsections of this Agreement to which they expressly refer and to each other provision of this Agreement to which the applicability of such statements and disclosures is reasonably apparent on its face. The inclusion of any information in the Disclosure Schedules shall not be deemed to be an admission or acknowledgment by Seller, in and of itself, that such information is material to or outside the ordinary course of the business of Seller or required to be disclosed on the Disclosure Schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7 <u>Amendments</u>. This Agreement may be amended or modified in whole or in part, and terms and conditions may be waived, only by a duly authorized agreement in writing which makes reference to this Agreement executed by each Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8 <u>Publicity</u>. At or after the Closing, the content of any press release or public announcement announcing the consummation of the transactions contemplated by this Agreement by either Party is subject to the prior written consent of the non-releasing Party (which consent may be withheld in such non-releasing Party's sole discretion); *provided* that such consent of the non-releasing Party is not required for any press release or public announcement that does not include the Purchase Price and/or the name of the non-releasing Party; *provided, further*, that the foregoing does not restrict disclosures by Buyer or Seller that are required by applicable securities or other Laws or regulations or the applicable rules of any stock exchange having jurisdiction over the disclosing Party or its Affiliates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9 <u>Severability</u>. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement shall remain in full force and effect. In addition, any such invalid or unenforceable provision shall be replaced by a provision that comes closest to the business objective intended by such invalid or unenforceable provision without being invalid or unenforceable itself.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.10 <u>Waivers</u>. Any failure by any Party to comply with any of its obligations, agreements or conditions herein contained may be waived by the Party to whom such compliance is owed by an instrument signed by the Party to whom compliance is owed and expressly identified as a waiver, but not in any other manner. No waiver of, or consent to a change in or modification of, any of the provisions of this Agreement shall be deemed or shall constitute a waiver of, or consent to a change in or modification of, any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.11 <u>Rules of Construction</u>. All article, section, appendix, exhibit and schedule references used in this Agreement are to articles and sections of, and Appendices, Exhibits and Schedules to, this Agreement, unless otherwise specified. If a term is defined as one part of speech (such as a noun), it shall have a corresponding meaning when used as another part of speech (such as a verb). Terms defined in the singular have the corresponding meanings in the plural, and vice versa. The words "include," "includes" or "including" do not limit the preceding terms and shall be deemed to be followed by the words "without limitation." The words "hereof," "hereto," "hereby," "herein," "hereunder" and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular section or article in which such words appear. The term "or" is not exclusive. The terms "day" and "days" mean and refer to calendar day(s). The terms "year" and "years" mean and refer to calendar year(s). If any action is to be taken or given on or by a particular calendar day, and such calendar day is not a Business Day, then such action shall be deferred until the next Business Day. The phrases "made available", "delivered" or "provided" mean that Buyer, one of its Affiliates or one of its or their respective Representatives has had the opportunity prior to the applicable or relevant date to review such documents or materials at the offices of Seller or any of its Affiliates or electronically by virtue of the data room or any other electronic means provided by or on behalf of Advisor, Seller or one of their respective Affiliates or Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12 <u>No Recourse</u>. Notwithstanding anything that may be expressed or implied in this Agreement or any Transaction Document, Buyer, by its acceptance of the benefits of this Agreement, covenants, agrees and acknowledges that no Person other than Seller (and its successors and assigns, collectively, the "<u>Recourse Parties</u>") shall have any obligation hereunder and that Buyer has no rights of recovery hereunder against, and no recourse hereunder or under any Transaction Document or in respect of any oral representations made or alleged to be made in connection herewith or therewith, against (a) any former, current or future director, officer, agent, Affiliate, manager, incorporator, controlling Person, fiduciary, representative or employee of Seller (or any of the foregoing Persons' successors or permitted assignees), (b) any former, current, or future general or limited partner, owner, manager, stockholder or member of Seller (or any of the foregoing Persons' successors or permitted assignees) or any Affiliate thereof or (c) any former, current or future director, owner, officer, agent, employee, Affiliate, manager, incorporator, controlling Person, fiduciary, representative, general or limited partner, stockholder, manager or member of any of the foregoing, but in each case not including Seller (each, but excluding for the avoidance of doubt, the Recourse Parties, a "<u>Party Affiliate</u>"), whether by or through attempted piercing of the corporate veil, by or through a claim (whether in tort, contract or otherwise) by or on behalf of Buyer against the Party Affiliates, by the enforcement of any assessment or by any legal or equitable Proceeding, or by virtue of any Law, or otherwise; it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on, or otherwise be incurred by any Party Affiliate, as such, for any obligations of Seller under this Agreement or the transactions contemplated hereby, under any Transaction Document or the transactions contemplated thereby, in respect of any oral representations made or alleged to be made in connection herewith or therewith, or for any claim (whether in tort, contract or otherwise) based on, in respect of, or by reason of, such obligations or their creation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.13 <u>Confidentiality</u>. Buyer acknowledges that confidential information of Seller and its Affiliates may have been disclosed to, made available to, or otherwise obtained by Buyer, whether prior to or after the date of this Agreement. Buyer shall hold such information in accordance with the terms of the Confidentiality Agreement. Notwithstanding anything to the contrary contained therein, if the Closing should occur, the Confidentiality Agreement shall terminate, except as to the Excluded Assets, *provided, however*, subject to <u>Section 11.8, the</u> Parties shall keep, to the extent permitted by Law, strictly confidential this Agreement and the terms hereof and shall not disclose the same to any Person other than to their respective Representatives without prior consent from the non-disclosing Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.14 <u>Specific Performance</u>. From and after Closing, each Party shall have the right to seek to enforce specifically the obligations of the other Party under this Agreement to the extent arising after the Closing. Each Party further agrees that, notwithstanding anything herein to the contrary, (a) no Party or any other Person shall be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to in this <u>Section 11.14</u> and each Party irrevocable waives any right it may have to require the obtaining, furnishing or posting of any such bond or similar instrument, and (b) in no event will this <u>Section 11.14</u> be used, along or together with any other provision of this Agreement, to require either Party to remedy any Breach of any representation or warranty of such Party in this Agreement.

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IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by each of the Parties as of the Execution Date.

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| | |
|:---|:---|
| **<u>BUYER</u>:**<br>WHITEHAWK INCOME MARCELLUS LLC | **<u>BUYER</u>:**<br>WHITEHAWK INCOME MARCELLUS LLC |
| By: | /s/ Jeffrey Slotterback |
| Name: | Jeffrey Slotterback |
| Title: | Chief Financial Officer |

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[*Signature Page to Purchase and Sale Agreement*]

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| | |
|:---|:---|
| <u>**SELLER**:</u> | <u>**SELLER**:</u> |
| THREE RIVERS ROYALTY, LLC | THREE RIVERS ROYALTY, LLC |
| By: | /s/ Nick Reiland |
| Name: | Nick Reiland |
| Titie: | Managing Member |

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[*Signature Page to Purchase and Sale Agreement*]

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**<u>Appendix A</u>**

**Definitions** 

"<u>Accounting Referee</u>" has the meaning set forth in <u>Section 3.5(b).</u>

"<u>Adjusted Purchase Price</u>" has the meaning set forth in <u>Section 3.2.</u>

"<u>Advisor</u>" has the meaning set forth in <u>Section 2.2(k).</u>

"<u>Affiliate</u>" means, with respect to any Person, any other Person that, directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, another Person.

The term "<u>control</u>" and its derivatives with respect to any Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract, or otherwise. Notwithstanding anything to the contrary contained herein, (a) other than for purposes of <u>Section 9.1(b)</u>, <u>Section 9.1(c)</u> and <u>Section</u> <u>11.12</u>, (i) Lime Rock Management LP, (ii) any of Lime Rock Management LP's Affiliates and (iii) any fund, investment account or other investment vehicle managed, advised or sponsored by Lime Rock Management LP or any of its Affiliates (other than Seller and any Person directly or indirectly controlled by San Jacinto Minerals, LLC), in each case, shall not be deemed to be an Affiliate of Seller for any purposes of this Agreement, and (b) for the avoidance of doubt, BCA-WHE, LLC and its members, employees and beneficial owners shall not be deemed to be an Affiliate of Buyer for any purposes of this Agreement; *provided* that, in the event Daniel Herz (or any Person that is controlled by or under common control with Daniel Herz) directly or indirectly acquires, owns or holds any direct or beneficial interest in or to, or the ability to otherwise control, BCA-WHE, LLC, then BCA-WHE, LLC and its members, employees and beneficial owners shall be deemed an Affiliate of Buyer for all purposes of this Agreement.

"<u>Agreement</u>" has the meaning set forth in the preamble to this Agreement.

"<u>Assets</u>" has the meaning set forth in <u>Section 2.1.</u>

"<u>Assignment</u>" means the Assignment and Bill of Sale from Seller to Buyer, substantially in the form attached hereto as <u>Exhibit C-1</u>, with respect to the ORRIs and the other Assets (excluding any Assets covered by the Deed).

"<u>Assumed Obligations</u>" means all obligations and liabilities of Seller, known or unknown, to the extent arising from, based upon, associated with or attributable or related to the Assets (or applicable portion thereof or interest therein) conveyed to Buyer pursuant to the terms hereof, regardless of whether such obligations and liabilities arose, or are otherwise attributable to periods occurring, prior to, on or after the Effective Time; *provided, however*, that the Assumed Obligations shall expressly exclude the Retained Liabilities.

"<u>Assuming Indemnifying Party</u>" has the meaning set forth in <u>Section 9.3(b).</u>

"<u>Breach</u>" means, with respect to any representation, warranty, covenant, obligation or other provision of this Agreement, any event that shall be deemed to have occurred if there is or has been any inaccuracy in or breach of, or any failure to perform or comply with, such representation, warranty, covenant, obligation or other provision.

"<u>Business Day</u>" means any day that is not a Saturday, Sunday or legal holiday in the State of New York and that is not otherwise a federal holiday in the United States.

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"<u>Buyer</u>" has the meaning set forth in the preamble to this Agreement.

"<u>Buyer Entitlements</u>" has the meaning set forth in <u>Section 3.6(a).</u>

"<u>Buyer Fund</u>" means any fund or investment vehicle launched, sponsored, managed or advised by Buyer, Sponsor or Daniel Herz or any of their respective Affiliates, whether launched, sponsored, managed or advised by any such Person(s) or together with any other Person(s).

"<u>Buyer Indemnified Parties</u>" has the meaning set forth in <u>Section 9.1(a).</u>

"<u>Claim Notice</u>" has the meaning set forth in <u>Section 9.3(a).</u>

"<u>Closing</u>" has the meaning set forth in <u>Section 8.1.</u>

"<u>Closing Date</u>" has the meaning set forth in <u>Section 8.1.</u>

"<u>Closing Payment</u>" means the Adjusted Purchase Price set forth in the Closing Statement in accordance with <u>Section 3.4</u> for the Closing.

"<u>Closing Statement</u>" has the meaning set forth in <u>Section 3.4.</u>

"<u>Confidentiality Agreement</u>" means that certain confidentiality agreement, dated as of February 7, 2025, by and between San Jacinto Minerals I, LLC and WhiteHawk Energy LLC, as may be amended or otherwise modified.

"<u>Consent</u>" means any consent, approval, authorization or permit of, or filing with or notification to, any Governmental Authorities or any other Person which are required to be obtained, made or complied with for or in connection with the sale, assignment or transfer of any Assets in connection with the transactions contemplated hereunder.

"<u>Contract</u>" means any currently existing written contract, agreement or other legally binding arrangement, but excluding any instrument pursuant to which Seller derives its ownership interest in any of the Fee Minerals, ORRIs and NPRIs.

"<u>Customary Consent</u>" means any Consent to the assignment or conveyance of all or any part of any of the Assets in connection with the transactions contemplated by this Agreement that (a) is not required to be obtained from, or waived by, the applicable Person (including, for purposes of clarity, any Governmental Authority) that is the holder thereof prior to the Closing (or that is customarily obtained thereafter) or (b) cannot be unreasonably withheld, conditioned and/or delayed; *provided, however*, that Customary Consent shall not include any Required Consent.

"<u>Deed</u>" means the Mineral and Royalty Deed from Seller to Buyer, substantially in the form attached hereto as <u>Exhibit C-2</u>, with respect to the Fee Minerals and the NPRIs.

"<u>Defensible Title</u>" means such title of Seller to the Fee Minerals, ORRIs, NPRIs and Wells comprising the Assets that is deducible of record and/or provable title evidenced by documentation, which, although not constituting perfect, merchantable or marketable title, is reasonably probable to be successfully defended if challenged and which, subject to Permitted Encumbrances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for each Fee Property, entitles Seller to not less than the number of Net Royalty Acres for such Fee Property as set forth in <u>Exhibit A-1</u> for such Fee Property without reduction or termination over the period of ownership thereof (unless a shorter term is otherwise specified on <u>Exhibit A-1</u>);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for each ORRI Lease, entitles Seller to not less than the number of Net Royalty Acres for such ORRI Lease as set forth in <u>Exhibit A-2</u> for such ORRI Lease for the productive life of such ORRI Lease (unless a shorter term is otherwise specified on <u>Exhibit A-2</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) for each NPRI Property, entitles Seller to not less than the number of Net Royalty Acres for such NPRI Property as set forth in <u>Exhibit A-3</u> for such NPRI Property without reduction or termination over the period of ownership thereof (unless a shorter term is otherwise specified on <u>Exhibit A-3</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) for each Well, entitles Seller to receive not less than the Revenue Interest as set forth in <u>Exhibit A-4</u> over the productive life of such Well, except as a result of decreases due to the establishment or amendment of pools or units after the Execution Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) is free and clear of all Liens.

"<u>Direct Claim</u>" has the meaning set forth in <u>Section 9.3(d).</u>

"<u>Disclosure Schedules</u>" means the schedules attached hereto.

"<u>Dispute</u>" has the meaning set forth in <u>Section 10.2.</u>

"<u>Dollars</u>" and "<u>$</u>" mean the lawful currency of the United States.

"<u>Effective Time</u>" means 12:01 a.m. (prevailing eastern time) on January 1, 2025.

"<u>Excluded Assets</u>" has the meaning set forth in <u>Section 2.2.</u>

"<u>Execution Date</u>" has the meaning set forth in the preamble of this Agreement.

"<u>Fee Mineral Lease</u>" has the meaning set forth in <u>Section 2.1(a).</u>

"<u>Fee Minerals</u>" has the meaning set forth in <u>Section 2.1(a).</u>

"<u>Fee Properties</u>" has the meaning set forth in <u>Section 2.1(a).</u>

"<u>Final Closing Statement</u>" means, as applicable, (a) the Revised Closing Statement described in <u>Section 3.5(a),</u> as prepared by Seller and as may be subsequently adjusted to reflect any subsequent written agreement among the Parties with respect thereto or (b) if any disputed matters are submitted to the Accounting Referee in accordance with <u>Section 3.5(b)</u> and are not subsequently withdrawn or otherwise resolved by the Parties, the updated Revised Closing Statement as is finally determined and issued by the Accounting Referee.

"<u>Final Purchase Price</u>" means the remainder of the Adjusted Purchase Price set forth in the Final Closing Statement.

"<u>Final Settlement Date</u>" has the meaning set forth in <u>Section 3.5(a).</u>

"<u>Fundamental Representations</u>" means the representations and warranties of Seller set forth in <u>Section 4.1, Section</u> <u>4.2, Section</u> <u>4.</u>3(a) and <u>Section 4.9.</u>

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"<u>GAAP</u>" means generally accepted accounting principles of the United States, consistently applied.

"<u>Governmental Authority</u>" means any federal, state, municipal, local, tribal or other similar governmental authority, regulatory or administrative agency, commission, court or arbitral body or any subdivision of any of the foregoing, including any tribal authority having or asserting jurisdiction.

"<u>Hydrocarbons</u>" means all of the oil, liquid hydrocarbons, gas, and any and all other liquid or gaseous hydrocarbons, as well as their respective constituent products.

"<u>Income Tax</u>" or "<u>Income Taxes</u>" means any U.S. federal, state or local or foreign income Tax or Tax based on profits, net profits, margin, revenues, gross receipts or similar measure.

"<u>Indemnified Party</u>" has the meaning set forth in <u>Section 9.3(a).</u>

"<u>Indemnifying Party</u>" has the meaning set forth in <u>Section 9.3(a).</u>

"<u>Indemnity Deductible</u>" means an amount equal to two and one-half percent (2.5%) of the unadjusted Purchase Price.

"<u>Indemnity Threshold</u>" means One Hundred Thousand Dollars ($100,000).

"<u>Instruments of Conveyance</u>" means, collectively, the Assignment and the Deed.

"<u>Knowledge</u>" means (a) with respect to Seller, the actual, conscious knowledge of any individual identified on <u>Schedule 1(a)</u> without requirement of investigation or inquiry and (b) with respect to Buyer, the actual, conscious knowledge of any individual identified on <u>Schedule 1(b)</u> without requirement of investigation or inquiry.

"<u>Law</u>" means any applicable statute, law, rule, regulation, ordinance, Order, judgment, injunction, award, decree or other official act of a Governmental Authority.

"<u>Liens</u>" means liens, pledges, mortgages, deeds of trust or security interests or any other preferential arrangement having the practical effect of any of the foregoing (including any agreement to give any of the foregoing).

"<u>Losses</u>" means any loss, damage, notice of violation, investigation by any Governmental Authority, payment, deficiency, injury, harm, detriment, decline or diminution in value, Taxes, liability, exposure, claim, demand, Proceeding, settlement, judgment, award, fine, penalty, fee, charge, cost or expense (including costs of attempting to avoid or in opposing the imposition thereof, interest, penalties, costs of preparation and investigation, and the fees, disbursements and expenses of attorneys, accountants and other professional advisors).

"<u>Material Adverse Effect</u>" means, any circumstance, change, effect, condition, development, event or occurrence that has resulted in a material adverse effect on (x) the ownership, operation, financial condition or value of the Assets, taken as a whole, or (y) the ability of Seller to consummate the transactions contemplated by this Agreement; *provided, however*, that none of the following circumstances, changes, effects, conditions, developments, events or occurrences shall be deemed to constitute a Material Adverse Effect, or shall be taken into account in determining whether a Material Adverse Effect has occurred: (a) any changes in commodity prices or in general conditions in the oil and gas industry, financial or securities markets, the economy or political conditions; (b) changes, events, effects or developments generally applicable to the oil and gas industry; (c) seasonal reductions in revenues and/or earnings of Seller

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in the ordinary course of its business; (d) changes in Law, GAAP, or the interpretation thereof from and after the Execution Date; (e) any failure to meet internal or third party projections or forecasts or revenue or earnings or reserve predictions, including as a result of the failure of any Third Party operator or working interest owner to develop all or a portion of any Underlying Property or any other action taken or failed to be taken by a Third Party operator or owner or working interests with respect to an Underlying Property; (f) acts or failures to act of any Governmental Authorities (where not caused by a non-compliance with Law by Seller); (g) entering into this Agreement, the announcement or pendency of this Agreement, actions contemplated by this Agreement or the other Transaction Documents, or the consummation of the transactions contemplated hereby; (h) natural declines in well performance or any reclassification of reserves in the ordinary course of business; (i) acts of God, including hurricanes, tornadoes, storms, diseases and viruses, including COVID-19 and other epidemics or pandemics, in each case, including the outbreak and continuation thereof (j) civil unrest, any outbreak of hostilities, terrorist activities or war or any similar disorder; and (k) matters that are cured or no longer exist as of the Closing.

"<u>Material Contracts</u>" has the meaning set forth in <u>Section 4.7.</u>

"<u>Mineral and Royalty Interest</u>" means any (a) mineral interest, mineral fee interest, mineral classified lease, other mineral rights (of any kind and however derived), lessor royalty interests and other mineral assets based upon, derived from or measured by a fee mineral estate and (b) fee royalty interest, non-participating royalty interest, overriding royalty interest, term royalty interest, net profits interest, reversionary interest, production payment and other similar royalty interests (of any kind and however derived).

"<u>Mineral Property</u>" or "<u>Mineral Properties</u>" has, in any such case, the meaning set forth in <u>Section 2.1(c).</u>

"<u>Monthly Statements</u>" has the meaning set forth in <u>Section 3.6(b).</u>

"<u>Mortgage Releases</u>" means the release and/or termination (including all applicable UCC-3 termination statements) of the mortgages, deeds of trust, assignments of proceeds of production, security agreements, collateral assignments and/or financing statements, and other similar encumbrances put in place by Seller or any of its Affiliates, in each case, burdening Seller's interest in the Assets, including those described on <u>Schedule MR</u>.

"<u>Net Mineral Acres</u>" means, for each Mineral Property:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to a Fee Property only, (i) the number of gross acres of land included in such Fee Property, *multiplied by* (ii) Seller's undivided interest in and to the mineral estate of such Fee Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to an ORRI Lease only, (i) the number of gross acres of land covered by such ORRI Lease, *multiplied by* (ii) the lessor's undivided percentage interest ownership in the mineral estate of such ORRI Lease, *multiplied by* (iii) the aggregate undivided working interest in such ORRI Lease owned by the lessee of the leasehold estate burdened by the applicable ORRI; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to an NPRI Property only, (i) the number of gross acres of land covered by such NPRI Property, *multiplied by* (i) Seller's undivided interest in and to the royalty grantor's undivided ownership in the right to receive lessor royalties with respect to the applicable mineral estate.

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"<u>Net Royalty Acres</u>" means, for each Mineral Property:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to a Fee Property, (i) the number of Net Mineral Acres for such Fee Property, *multiplied by* (ii)(1) for those Fee Properties that are subject to a Fee Mineral Lease, the lessor's royalty percentage under the applicable Fee Mineral Lease, if any, expressed on an 8/8ths basis to the Fee Mineral Lease, *divided by* 1/8<sup>th</sup> or (2) for those Fee Properties that are not subject to a Fee Mineral Lease, eighteen percent (18%), *divided by* 1/8<sup>th</sup>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to an ORRI Lease, (i) the number of Net Mineral Acres covered by such ORRI Lease, *multiplied by* (ii) the applicable overriding royalty percentage for the applicable ORRI in such ORRI Lease, expressed on an 8/8ths basis, *divided by* (iii) 1/8<sup>th</sup>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to an NPRI Property, (i) the number of Net Mineral Acres covered by such NPRI Property, *multiplied by* (ii) the applicable non-participating royalty percentage for the applicable NPRI in such NPRI Property, expressed on an 8/8ths basis, *divided by* (iii) 1/8<sup>th</sup>.

"<u>Notice</u>" or "<u>Notices</u>" has the meaning set forth in <u>Section 11.1.</u>

"<u>Notice of Disagreement</u>" has the meaning set forth in <u>Section 3.5(a).</u>

"<u>NPRI Properties</u>" has the meaning set forth in <u>Section 2.1(c).</u>

"<u>NPRIs</u>" has the meaning set forth in <u>Section 2.1(c).</u>

"<u>Order</u>" means any order, judgment, injunction or award issued, made, entered or rendered by any court, Governmental Authority or arbitrator.

"<u>Organizational Documents</u>" means any applicable charter, certificate of incorporation, certificate of formation, partnership agreement, limited liability company agreement, bylaws, operating agreement or similar formation or governing documents applicable to any Person.

"<u>ORRI Instruments</u>" has the meaning set forth in <u>Section 2.1(b).</u>

"<u>ORRI Leases</u>" has the meaning set forth in <u>Section 2.1(b).</u>

"<u>ORRIs</u>" has the meaning set forth in <u>Section 2.1(b).</u>

"<u>Party</u>" and "<u>Parties</u>" are defined in the preamble of this Agreement.

"<u>Party Affiliate</u>" has the meaning set forth in <u>Section 11.12.</u>

"<u>Permitted Encumbrances</u>" means any or all of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) lessors' royalties and any overriding royalties, reversionary interests, payments out of production, net profits interests and other burdens to the extent they do not, individually or in the aggregate, operate to (i) reduce Seller's Net Royalty Acres below the amount shown in <u>Exhibit A-1</u> for any Fee Property, <u>Exhibit A-2</u> for any ORRI Lease or <u>Exhibit A-3</u> for any NPRI Property, as applicable, or (ii) reduce Seller's Revenue Interest below the amount shown in <u>Exhibit A-4</u> for any Well;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all deeds, conveyances, leases, unit agreements, pooling agreements, operating agreements, and other Contracts applicable to any of the Assets, including the terms and conditions thereof and provisions for penalties, suspensions or forfeitures contained therein, to the extent that any of them do not, individually or in the aggregate, operate to (i) reduce Seller's Net Royalty Acres below the amount shown in <u>Exhibit A-1</u> for any Fee Property, <u>Exhibit A-2</u> for any ORRI Lease or <u>Exhibit A-3</u> for any NPRI Property, as applicable, or (ii) reduce Seller's Revenue Interest below the amount shown in <u>Exhibit A-4</u> for any Well;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any preferential rights to purchase and Third Party consents to assignment and similar arrangements with respect to which waivers or consents are obtained prior to the Closing or which are typically obtained after the Closing (including any applicable approval(s) from Governmental Authorities and any Customary Consents);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens for Taxes not delinquent or with respect to Taxes being contested in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) materialman's, mechanic's, repairman's, employee's, contractor's, operator's and other similar Liens or charges which, in each case, are not delinquent (or being actively contested in good faith);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) conventional rights of reassignment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) easements, rights of way, covenants, servitudes, permits, surface leases and other rights in respect of surface operations or pipelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all rights, titles and interests of a common owner or cotenant to the extent they do not, individually or in the aggregate, operate to (i) reduce Seller's Net Royalty Acres below the amount shown in <u>Exhibit A-1</u> for any Fee Property, <u>Exhibit A-2</u> for any ORRI Lease or <u>Exhibit A-3</u> for any NPRI Property, as applicable, or (ii) reduce Seller's Revenue Interest below the amount shown in <u>Exhibit A-4</u> for any Well;

(j)(i) all rights reserved to or vested in any Governmental Authorities to (A) control or regulate (1) any of the Assets in any manner or to assess Taxes with respect to the Assets or (2) the ownership, operation, development or use of any of the Assets, or the revenue, income or capital gains with respect thereto or (B) use all or any portion of any of the Assets in a manner which does not materially impair the use of such Asset for the purposes for which it is currently owned and (ii) all obligations and duties under all applicable Laws of or under any franchise, grant, license, order or permit issued by any such Governmental Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any Lien, defect, burden or irregularity on or affecting any of the Assets which (i) is expressly waived or assumed in writing by Buyer at or prior to the Closing, (ii) is otherwise discharged by Seller or any of its Affiliates at their cost at or prior to the Closing or (iii) affecting any Well or Mineral Property and has not prevented Seller from receiving its share of the proceeds of production from any Well or Mineral Property at any time and which would be accepted by a reasonably prudent person engaged in the business of owning mineral and royalty interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) any lien or trust arising in connection with workers' compensation, unemployment insurance, pension or employment Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any matters or items identified or referenced on any of the Disclosure Schedules or <u>Exhibit A-1</u>, <u>Exhibit A-2</u>, <u>Exhibit A-3</u> or <u>Exhibit A-4</u>, as applicable;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) any defects arising from (i) any leases for which the Underlying Properties are subject having no pooling provision, or an inadequate horizontal pooling provision or (ii) the absence of any lease amendment or consent authorizing the pooling of any Underlying Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) defects based on a gap in the chain of title of the Assets, unless such gap is affirmatively shown to exist in the county records by an abstract or title or title opinion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) defects based on the inability of Seller to locate an unrecorded instrument of which Buyer has constructive or inquiry notice by virtue of a reference to such unrecorded instrument in a recorded instrument, if no claim has been made under such unrecorded instruments within the last ten (10) years;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) any Liens, defects, burdens or irregularities arising out of, or related to, the existence (at any time prior to, on or after the Effective Time) of any waterway (whether navigable or otherwise) located on, under, abutting, touching, crossing or otherwise affecting any Underlying Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) the terms and conditions of this Agreement, any other Transaction Document or any Material Contract or division order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) rights of reassignment arising upon final intention to abandon or release any of the Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) any defect solely arising by the failure to obtain verification of identity of people in a class, heirship, or intestate succession;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) the conveyance of any properties prior to the Execution Date as set forth on <u>Schedule PE</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any other encumbrances, Contracts, obligations, defects and irregularities affecting any of the Assets that (i) would not be considered material when applying general standards in the oil and gas industry or (ii) would be accepted by a reasonably prudent person engaged in the business of owning mineral and royalty interests.

"<u>Person</u>" means any individual, corporation, partnership, limited liability company, joint venture, Governmental Authority or other entity of any kind.

"<u>Post-Closing Covenant or Agreement</u>" means any and all covenants and agreements that, by their terms, are contemplated to be performed by or on behalf of a Party from and after the Closing with respect to the Assets acquired by Buyer at and in connection with the Closing.

"<u>Post-Closing Statement Period</u>" has the meaning set forth in <u>Section 3.6(b).</u>

"<u>Post-Effective Time Tax Period</u>" means a taxable period that begins on or after the day on which the Effective Time occurs.

"<u>Pre-Effective Time Tax Period</u>" means a taxable period that ends before the day on which the Effective Time occurs.

"<u>Preferential Purchase Right</u>" has the meaning set forth in <u>Section 4.8.</u>

"<u>Proceeding</u>" means any action, litigation, arbitration, lawsuit, proceeding, hearing, investigation, examination, audit or dispute, whether civil, criminal, administrative or otherwise, commenced, conducted or heard by or before any Governmental Authority or any arbitrator.

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"<u>Property Taxes</u>" shall mean ad valorem, property, severance, production and similar Taxes based upon or measured by the Assets or the receipt of proceeds therefrom, but excluding, for the avoidance of doubt, Income Taxes and Transfer Taxes.

"<u>Purchase Price</u>" has the meaning set forth in <u>Section 3.1.</u>

"<u>Records</u>" has the meaning set forth in <u>Section 2.1(f).</u>

"<u>Recourse Parties</u>" has the meaning set forth in <u>Section 11.12.</u>

"<u>Representatives</u>" means, with respect to a Person, such Person's Affiliates and its and their respective directors, officers, partners, members, managers, employees, agents or advisors, and any representatives of any such agents or advisors.

"<u>Required Consent</u>" means any Consent that expressly provides in the applicable Contract that the sale or transfer of any applicable Asset without compliance with the terms of such applicable Contract would result in the express termination, or right to terminate, any rights or benefits of Seller (or Buyer, as Seller's successor-in-interest) in relation to such Asset.

"<u>Retained Liabilities</u>" means all obligations and liabilities, known or unknown, to the extent arising from, based upon, associated with or attributable or related to (i) any of the Excluded Assets, (ii) any of the Assets not conveyed to Buyer pursuant to the terms hereof, and (iii) any Losses pertaining to the overpayment of amounts previously paid to Seller relating to periods before the Effective Time; *provided* that from and after the date that is twelve (12) months after the Closing Date, the obligations and liabilities described in this <u>clause (iii)</u> shall thereafter no longer be deemed to constitute Retained Liabilities for all purposes of this Agreement and any underpayment, netting or reversal (or any other similar claim or action) related to such obligations and liabilities will be borne by the Parties *pro rata* based on each such Party's then-applicable relative ownership interests in and to the Assets.

"<u>Revenue Interest</u>" means, with respect to a Well, the interest (expressed as a percentage or decimal) to which Seller is entitled, based on its aggregate ownership of the Fee Minerals, ORRIs and/or NPRIs and any pooling applicable to such Well, in and to all Hydrocarbons produced, saved and sold from or allocated to such Well.

"<u>Revised Closing Statement</u>" has the meaning set forth in <u>Section 3.5(a).</u>

"<u>Seller</u>" has the meaning set forth in the preamble to this Agreement.

"<u>Seller Entitlements</u>" has the meaning set forth in <u>Section 3.6(a).</u>

"<u>Seller Indemnified Parties</u>" has the meaning set forth in <u>Section 9.1(b).</u>

"<u>Sponsor</u>" means WhiteHawk Minerals, LLC, a Delaware limited liability company.

"<u>Straddle Period</u>" means any taxable period that begins before the date on which the Effective Time occurs and ends on or after the date on which the Effective Time occurs.

"<u>Target Area</u>" means Allegheny, Beaver, Fayette, Greene, Indiana, Lycoming, Tioga, Washington, and Westmoreland Counties, Pennsylvania, and Marion, Marshall, Monongalia, Ohio, and Wetzel Counties, West Virginia.

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"<u>Tax</u>" or "<u>Taxes</u>" means (a) all federal, state, local and foreign taxes, assessments, duties, fees or other similar charges imposed by a Governmental Authority, including all income, franchise, profits, margins, capital gains, capital stock, transfer, gross receipts, sales, use, transfer, service, occupation, ad valorem, real or personal property, excise, severance, production, windfall profits, customs, premium, stamp, license, payroll, employment, social security, unemployment, disability, environmental, alternative minimum, add-on, value-added, withholding and other taxes, assessments, duties, fees or other similar charges of any kind and (b) all estimated taxes, deficiency assessments, additions to tax, penalties and interest with respect to any item described in <u>clause (a)</u> of this definition.

"<u>Tax Contest</u>" has the meaning set forth in <u>Section 7.5.</u>

"<u>Tax Return</u>" or "<u>Tax Returns</u>" means any report, return, election, document, estimated Tax filing, declaration, claim for refund, information return, or other filing provided to any Governmental Authority with respect to Taxes, including any schedules or attachments thereto and any amendment thereof.

"<u>Third Party</u>" means any Person other than Seller, Buyer or any of their respective Affiliates.

"<u>Third Party Claim</u>" has the meaning set forth in <u>Section 9.3(a).</u>

"<u>Threatened</u>" means, with respect to any claim, Proceeding, dispute, action or other matter, an event that shall be deemed to have occurred if any demand, statement or claim has been made in writing to a Party or any of its officers, directors or employees that would lead a prudent Person to expect that such claim, Proceeding, dispute, action or other matter would reasonably be expected to be asserted, commenced, taken or otherwise pursued in the future.

"<u>Transaction Documents</u>" means this Agreement, the Instruments of Conveyance and any other agreement that Buyer and Seller deem to be a Transaction Document in writing.

"<u>Transfer Taxes</u>" has the meaning set forth in <u>Section 7.4.</u>

"<u>Underlying Property</u>" means any Fee Property, ORRI Lease, NPRI Property or Well from which either (a) any Net Royalty Acres or (b) a Revenue Interest, as applicable, is derived with respect to any Asset.

"<u>Wells</u>" has the meaning set forth in <u>Section 2.1(d).</u>

[*End of Appendix A*]

## Exhibit 10.4

**Exhibit 10.4** 

***Final*** 

**AGREEMENT AND PLAN OF MERGER** 

by and among

**WHITEHAWK ACQUISITION, INC.**, a Delaware corporation,

**WHITEHAWK MERGER SUB, INC.**, a Delaware corporation,

and

**PHX MINERALS INC.**, a Delaware corporation

Dated as of May 8, 2025

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**TABLE OF CONTENTS** 

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| | |
|:---|:---|
| ARTICLE 1 THE OFFER | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 The Offer | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Company Actions | 8 |
| ARTICLE 2 THE MERGER | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The Merger | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Closing and Effective Time of the Merger | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Governance Matters | 11 |
| ARTICLE 3 CONVERSION OF SECURITIES IN THE MERGER | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Conversion of Securities | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Payment for Securities; Surrender of Certificates | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Dissenting Shares | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Treatment of Company Equity Awards | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 Withholding Rights | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 Further Actions | 18 |
| ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE COMPANY | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Organization and Qualification; Subsidiaries | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Capitalization | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 Authority | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 No Conflict | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 Required Filings and Consents | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 Permits; Compliance with Law | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 SEC Filings; Financial Statements | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 Internal Controls | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 No Undisclosed Material Liabilities | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 Absence of Certain Changes or Events | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 Employee Benefit Plans | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12 Labor Matters | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13 Contracts | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14 Litigation | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15 Environmental Matters | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.16 Intellectual Property; Privacy and Data Security | 30 |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.17 Tax Matters | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.18 Real Property | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.19 Insurance | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.20 Opinion of Financial Advisor | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.21 Schedule 14D-9; Schedule TO | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.22 Brokers | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.23 State Takeover Statutes | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.24 Affiliate Transactions | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.25 Corrupt Practices; Sanctions | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.26 No Other Representations or Warranties | 37 |
| ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Organization and Qualification | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Authority | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 No Conflict | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 Required Filings and Consents | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 Litigation | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 Schedule TO; Schedule 14D-9 | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 Brokers | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 Ownership of Company Capital Stock | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 Ownership of Merger Sub | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 Solvency | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 Absence of Certain Arrangements | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 Financing | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 No Other Representations or Warranties | 43 |
| ARTICLE 6 COVENANTS | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Conduct of Business by the Company and Parent Pending the Closing | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Access to Information; Confidentiality | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 No Solicitation by the Company | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 Efforts | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 Merger | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 Public Announcements | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 Employee Benefit Matters | 56 |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 Indemnification of Directors and Officers | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 Takeover Statutes | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 Section 16 Matters | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 Stockholder Litigation | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 Stock Exchange Delisting and Deregistration | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 14D-10 Matters | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.14 Payoff Letter | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.15 Financing Cooperation | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.16 Financing | 62 |
| ARTICLE 7 CONDITIONS TO CONSUMMATION OF THE MERGER | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 Purchase of Company Shares | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 No Injunctions or Restraints; Illegality | 66 |
| ARTICLE 8 TERMINATION, AMENDMENT AND WAIVER | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Termination | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 Effect of Termination | 68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 Fees and Expenses | 68 |
| ARTICLE 9 GENERAL PROVISIONS | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 Amendment | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Waiver | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 Non-Survival of Representations and Warranties | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 Fees and Expenses | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 Notices | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 Certain Definitions | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 Terms Defined Elsewhere | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 Headings | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 Severability | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 Entire Agreement | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11 Assignment | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12 No Third-Party Beneficiaries | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.13 Mutual Drafting; Interpretation | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.14 Governing Law; Consent to Jurisdiction; Waiver of Trial by Jury | 87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.15 Counterparts | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.16 Specific Performance | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.17 Non-Recourse | 90 |

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| |
|:---|
| Annex A – Conditions to the Offer |
| Exhibit A – Form Tender and Support Agreement |
| Exhibit B – Form of Amended and Restated Certificate of Incorporation |

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- iv -

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**AGREEMENT AND PLAN OF MERGER** 

This AGREEMENT AND PLAN OF MERGER, dated as of May 8, 2025 (this "<u>Agreement</u>"), is made by and among WhiteHawk Acquisition, Inc., a Delaware corporation ("<u>Parent</u>"); Whitehawk Merger Sub, Inc., a Delaware corporation and a wholly owned, direct subsidiary of Parent ("<u>Merger Sub</u>"); and PHX Minerals Inc., a Delaware corporation (the "<u>Company</u>"). All capitalized terms used in this Agreement shall have the meanings assigned to such terms in <u>Section 9.6</u> or as otherwise defined elsewhere in this Agreement, unless the context clearly indicates otherwise.

**W I T N E S S E T H :** 

WHEREAS, Parent has agreed to cause Merger Sub to, and Merger Sub has agreed to, commence a cash tender offer (as it may be extended, amended or supplemented from time to time in accordance with this Agreement, the "<u>Offer</u>") to acquire any and all of the outstanding shares of common stock, par value $0.01666 per share, of the Company (the "<u>Company Common Shares</u>"), at a price of $4.35 per Company Common Share, net to the holder thereof, in cash, without interest thereon (such amount, or any other amount per Company Common Share that may be paid pursuant to the Offer or the Merger in accordance with this Agreement, being hereinafter referred to as the "<u>Offer Price</u>"), and subject to any Tax withholding pursuant to <u>Section 3.5</u>, all upon the terms and subject to the conditions set forth herein;

WHEREAS, as soon as practicable following the consummation of the Offer, Merger Sub will merge with and into the Company (the "<u>Merger</u>") in accordance with the General Corporation Law of the State of Delaware (the "<u>DGCL</u>"), without a vote or approval of the Company Stockholders in accordance with Section 251(h) of the DGCL, and each Company Common Share that is not validly tendered and irrevocably accepted pursuant to the Offer (other than Cancelled Shares and Dissenting Shares) will thereupon be cancelled and converted into the right to receive cash in an amount equal to the Offer Price, and the Company will survive the Merger as a wholly owned Subsidiary of Parent, all upon the terms and subject to the conditions set forth herein;

WHEREAS, the Merger shall be governed by, and effected as soon as practicable following the consummation (as defined in Section 251(h) of the DGCL) of the Offer under, Section 251(h) of the DGCL pursuant to the terms of this Agreement;

WHEREAS, the board of directors of the Company (the "<u>Company Board</u>") has unanimously, at a meeting duly called and held prior to the execution hereof, upon the terms and subject to the conditions set forth herein: (i) determined that this Agreement and the transactions contemplated hereby, including the Offer and the Merger, are advisable, fair to and in the best interests of the Company and the Company Stockholders, and declared it advisable for the Company to enter into this Agreement; (ii) approved and declared advisable the execution and delivery by the Company of this Agreement, the performance by the Company of its covenants and agreements contained herein and the consummation of the Offer and the Merger and the other transactions contemplated by this Agreement upon the terms and subject to the conditions contained herein; (iii) resolved that this Agreement and the Merger be governed by Section 251(h) of the DGCL and (iv) recommended that the Company Stockholders accept the Offer and tender their Company Common Shares to Merger Sub pursuant to the Offer (the "<u>Company Board Recommendation</u>");

------

WHEREAS, the board of directors of Parent and the board of directors of Merger Sub have (i) declared it advisable for Parent and Merger Sub, respectively, to enter into this Agreement; and (ii) approved the execution and delivery by Parent and Merger Sub, respectively, of this Agreement, the performance by Parent and Merger Sub, respectively, of their respective covenants and agreements contained herein and the consummation of the Offer and the Merger upon the terms and subject to the conditions contained herein;

WHEREAS, the sole stockholder of Merger Sub has delivered a written consent as the sole stockholder of Merger Sub in accordance with the DGCL and the certificate of incorporation and bylaws of Merger Sub, approving and adopting this Agreement and the transactions contemplated hereby, including the Offer and the Merger, which consent by its terms is effective immediately following the execution and delivery of this Agreement in accordance with Section 228 of the DGCL;

WHEREAS, concurrently with the execution and delivery of this Agreement, each of the Company Stockholders identified on <u>Exhibit A</u> of the Company Disclosure Schedule (the "<u>Specified Stockholders</u> ") and Parent have entered into separate tender and support agreements substantially in the form attached hereto as <u>Exhibit A</u> (each, a "<u>Tender and Support Agreement</u>"), each of which provides, among other things, that each of the Specified Stockholders will, upon the terms and subject to the conditions set forth in the Tender and Support Agreements, tender the Company Common Shares held by them in the Offer;

WHEREAS, concurrently with the execution of this Agreement, and as a condition for the Company's willingness to enter into this Agreement, Omega Capital Partners, L.P., Wayne Cooperman, Foxhill Family Partnership, L.P., Richard Kopelman, WhiteHawk Holdings, Inc., Ari Levy, Simeon Wallis, Timothy Won, and WhiteHawk Income Corporation (such Persons, in such capacity, each an "<u>Investor</u>" and collectively, the "<u>Investors</u>") have each entered into an equity commitment letter (collectively, the "<u>Equity Commitment Letters</u>"), dated as of the date hereof, committing the Investors to provide funds equal to the applicable portion of the Required Amount set forth therein in connection with the consummation of the Equity Financing, subject to the terms and conditions set forth therein and herein;

WHEREAS, concurrently with the execution of this Agreement, and as a condition for the Company's willingness to enter into this Agreement, WhiteHawk Income Corporation, a Delaware corporation (the "<u>Guarantor</u>") is entering into the Limited Guarantee with respect to certain obligations of Parent and Merger Sub under this Agreement; and

WHEREAS, Parent, Merger Sub and the Company desire to make certain representations, warranties, covenants and agreements in connection with the Merger and also to prescribe various conditions to the consummation of the Offer and the Merger.

NOW, THEREFORE, in consideration of the foregoing, and the covenants, premises, representations and warranties and agreements contained in this Agreement and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound, the parties to this Agreement agree as follows:

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**ARTICLE 1** 

**THE OFFER** 

1.1 <u>The Offer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Terms and Conditions of the Offer</u>. Provided that this Agreement shall not have been terminated pursuant to <u>Article 8,</u> as promptly as practicable after the date hereof (but in no event earlier than 10 Business Days following the date hereof and no later than three Business Days following the date that the Company provides Parent and Merger Sub with the substantially final Schedule 14D-9 pursuant to <u>Section 1.2(a)</u>, and all of the information reasonably requested by Parent to be included in the Schedule TO pursuant to <u>Section 1.1(g)</u>), Merger Sub shall (and Parent shall cause Merger Sub to) commence (within the meaning of Rule 14d-2 promulgated under the Exchange Act) the Offer to purchase any and all of the outstanding Company Common Shares at a price per Company Common Share, subject to the terms of <u>Section 1.1(c),</u> equal to the Offer Price, without interest; <u>provided</u>, <u>however</u>, that Merger Sub shall not be required (and Parent shall not be required to cause Merger Sub) to commence the Offer unless and until the Company is prepared to file with the SEC the Schedule 14D-9 immediately following the filing of the Schedule TO. The Offer shall be made by means of an offer to purchase (the "<u>Offer to Purchase</u>") that is disseminated to all of the Company Stockholders as and to the extent required by United States federal securities laws and contains the terms and conditions set forth in this Agreement, including in <u>Annex A</u>. Merger Sub shall (and Parent shall cause Merger Sub to) consummate the Offer, subject to the terms and conditions hereof and thereof. The obligation of Merger Sub to, and of Parent to cause Merger Sub to, irrevocably accept for payment and pay for any Company Common Shares validly tendered (and not withdrawn) pursuant to the Offer at the Expiration Time shall be subject only to the satisfaction or (if permitted by applicable Law) waiver of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the condition (the "<u>Minimum Condition</u>") that, as of immediately prior to the Expiration Time, there be validly tendered and not withdrawn in accordance with the terms of the Offer, and "received" by the "depository" for the Offer (as such terms are defined in Section 251(h) of the DGCL), a number of Company Common Shares that, together with the Company Common Shares then owned, if any, by Parent, Merger Sub and any of their respective Affiliates (excluding shares tendered pursuant to guaranteed delivery procedures that have not yet been "received" (as defined by Section 251(h) of the DGCL), represents at least a majority of the sum of (x) the aggregate number of issued and outstanding Company Common Shares as of immediately prior to the Expiration Time *plus* (y) an additional number of shares equal to the aggregate number of Company Common Shares issuable upon the conversion, exchange or exercise, as applicable, of all Company Equity Awards, and any other options, warrants or other rights to acquire, or securities convertible into or exchangeable for, Company Common Shares that, in each case, are outstanding immediately prior to the Expiration Time and are vested or otherwise exercisable, convertible or exchangeable at or immediately prior to the Expiration Time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the other conditions set forth in <u>Annex A</u> (as they may be amended in accordance with this Agreement).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Waiver of Conditions</u>. Parent and Merger Sub expressly reserve the right (but are not obligated to) at any time and from time to time in their sole discretion (subject to this <u>Section</u> <u>1.1(b)</u>) and to the extent permitted by applicable Law, to waive, in whole or in part, any of the conditions to the Offer, to make any change in the terms of or conditions to the Offer or to increase the Offer Price; <u>provided</u>, <u>however</u>, that notwithstanding the foregoing or anything to the contrary set forth herein, without the prior written consent of the Company, Merger Sub shall not (and Parent shall not permit Merger Sub to) (i) waive or modify the Minimum Condition or the Termination Condition, or (ii) make any change in the terms of or conditions to the Offer that: (A) changes the form of consideration to be paid in the Offer; (B) decreases the Offer Price or the number of Company Common Shares sought in the Offer; (C) extends the Offer or extends or otherwise changes the Expiration Time, except as required or permitted by <u>Section 1.1(d)</u>; (D) imposes conditions to the Offer other than those set forth in <u>Annex A</u>; (E) provides for any "subsequent offering period" within the meaning of Rule 14d-11 under the Exchange Act; or (F) otherwise amends, modifies or supplements the Offer in any manner materially adverse to the Company Stockholders or in any manner that materially delays or materially interferes with, hinders or impairs the consummation of the Offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Adjustments to the Offer Price</u>. Notwithstanding anything in this Agreement to the contrary, if, at any time occurring on or after the date hereof and prior to the Acceptance Time, any change in the outstanding Equity Interests of the Company shall occur as a result of any reorganization, reclassification, recapitalization, stock split (including a reverse stock split), subdivision or combination, exchange or readjustment of shares, or any stock dividend or stock distribution (including any dividend or other distribution of securities convertible into Company Common Shares) with a record date during such period, the Offer Price will be equitably adjusted to reflect such change and provide the holders of each Company Common Share the same economic effect as contemplated by this Agreement prior to such event; <u>provided</u>, that nothing in this <u>Section 1.1(c)</u> shall be construed to permit the Company or any of its Subsidiaries to take any such action without the consent of Parent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Expiration and Extension of the Offer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Unless the Offer is extended pursuant to and in accordance with this Agreement, the Offer shall initially expire at 12:00 midnight, New York City time, at the end of the 20th Business Day following (and including the day of) the commencement of the Offer (determined pursuant to Rule 14(d)-1(g)(3) promulgated under the Exchange Act) (as such date and time may be extended, the "<u>Expiration Time</u>"), unless otherwise agreed to in writing by Parent and the Company. In the event that the Offer is extended pursuant to and in accordance with this Agreement, then the Offer shall expire on the date and at the time to which the Offer has been so extended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the provisions of <u>Section 1.1(d)(i)</u> or anything to the contrary set forth in this Agreement, but subject to <u>Section 1.1(d)(v)</u>, unless this Agreement has been terminated in accordance with its terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Merger Sub shall extend the Offer for any period required by any Law or Order, or any rule, regulation, interpretation or position of the SEC or its staff or the NYSE (including in order to comply with Exchange Act Rule 14e-1(b) in respect of any change in the Offer Price) or as may be necessary to resolve any comments of the SEC or the staff or the NYSE, in each case, as applicable to the Offer (including, for the avoidance of doubt, the Schedule 14D-9 or the Offer Documents);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) if, as of any then-scheduled Expiration Time, all the conditions to the Offer set forth in <u>Annex A</u> are not satisfied or waived (if permitted by applicable Law), Merger Sub may (in its sole discretion), and Parent may (in its sole discretion) cause Merger Sub to, extend the Offer for one or more successive extension periods of up to 10 Business Days each (with each such period to end at 12:00 midnight (New York City time) at the end of the last Business Day of such period) (or any other period as may be approved in advance in writing by the Company) in order to permit the satisfaction of all of the conditions to the Offer; <u>provided</u>, <u>however</u>, that if the sole then-unsatisfied condition to the Offer is the Minimum Condition, Merger Sub shall be required to extend the Offer for no more than three occasions in consecutive periods of 10 Business Days each (each such period to end at 12:00 midnight (New York City time) at the end of the last Business Day of such period) (or such other period as may be approved in advance by the parties hereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) if, at the then-scheduled Expiration Time, the Company brings or shall have brought any action in accordance with <u>Section 9.16</u> that is pending to enforce specifically the performance of the terms and provisions of this Agreement by Parent or Merger Sub, the Expiration Time shall be extended, subject to <u>Section 1.1(d)(v)</u>, (x) for the period during which such action is pending or (y) by such other time period established by the court presiding over such action, as the case may be; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if, as of any then-scheduled Expiration Time, (1) all of the conditions to the Offer set forth in <u>Annex A</u> have been satisfied (or as permitted by applicable Law, waived) and (2) the full amount of the Debt Financing necessary to pay the Required Amount has not been funded and will not be available to be funded pursuant to the terms thereof so as to enable Parent and Merger Sub to comply with their obligations under <u>Section 1.1(e)</u>, then Merger Sub shall have the right to (and Parent shall have the right to cause Merger Sub to) extend the Offer for one period of up to five Business Days, so long as such extension would not result in the Offer being extended beyond the third Business Day immediately preceding the Outside Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Neither Parent nor Merger Sub shall extend the Offer in any manner other than pursuant to and in accordance with the provisions of <u>Section 1.1(d)(ii)</u> without the prior written consent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Neither Parent nor Merger Sub shall terminate or withdraw the Offer prior to the then-scheduled Expiration Time of the Offer unless this Agreement is validly terminated in accordance with <u>Article</u> <u>8</u>, in which case Merger Sub shall (and Parent shall cause Merger Sub to) irrevocably and unconditionally terminate the Offer promptly (but in no event more than one Business Day) after such termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notwithstanding any other provision in this Agreement to the contrary, (A) in no event shall Parent or Merger Sub be required to extend the Offer beyond the Outside Date; and (B) any extension made pursuant to <u>Section 1.1(d)(ii)</u> shall not be deemed to impair, limit, or otherwise restrict in any manner the rights of the parties hereto to terminate this Agreement pursuant to the terms of <u>Article 8.</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) If the Offer is terminated or withdrawn by Merger Sub, or this Agreement is terminated in accordance with <u>Article</u> <u>8</u>, prior to the Acceptance Time, Merger Sub shall, and Parent shall cause Merger Sub to, promptly return or cause to be returned, in accordance with applicable Law, all tendered Company Common Shares to the registered holders thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The Company agrees that no Company Common Shares held by the Company or any of its Subsidiaries will be tendered pursuant to the Offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payment for Company Common Shares</u>. On the terms and subject to the conditions set forth in this Agreement and the Offer, including the satisfaction or waiver (if permitted) of all conditions to the Offer set forth in <u>Annex A</u>, Merger Sub shall (and Parent shall cause Merger Sub to), at or as promptly as practicable under Law following the Expiration Time (as it may be extended in accordance with <u>Section 1.1(d)(ii)</u>), but in any event within one Business Day thereof, irrevocably accept for payment, and, at or as promptly as practicable following the Acceptance Time, but in any event within one Business Day thereof, pay for, all Company Common Shares that are validly tendered and not withdrawn pursuant to the Offer; <u>provided</u> that with respect to Company Common Shares tendered pursuant to guaranteed delivery procedures that have not yet been delivered in settlement or satisfaction of such guarantee, Merger Sub shall be under no obligation to make any payment for such Company Common Shares unless and until such Company Common Shares are delivered in settlement or satisfaction of such guarantee. Without limiting the generality of the foregoing, Parent shall provide or cause to be provided to Merger Sub on a timely basis the funds that are necessary to pay for any and all Company Common Shares that Merger Sub becomes obligated to purchase pursuant to the Offer. For the avoidance of doubt, Merger Sub shall not, without the prior written consent of the Company, accept for payment or pay for any Company Common Shares if, as a result, Merger Sub would acquire less than the number of Company Common Shares necessary to satisfy the Minimum Condition. The Offer Price payable in respect of each Company Common Share validly tendered and not withdrawn pursuant to the Offer shall be paid without interest, net to the holder thereof in cash, subject to applicable Law, the terms and conditions of the Offer, and reduction for any withholding Taxes payable in respect thereof pursuant to <u>Section 3.5</u>. The Company shall register the transfer of any Company Common Shares irrevocably accepted for payment effective immediately after the Acceptance Time; <u>provided</u> that Merger Sub shall have paid for such Company Common Shares concurrently with such transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Schedule TO; Offer Documents</u>. On the date the Offer is first commenced (within the meaning of Rule 14d-2 promulgated under the Exchange Act), Parent and Merger Sub shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) file with the SEC a Tender Offer Statement on Schedule TO (together with all amendments and supplements thereto, and including all exhibits thereto, the "<u>Schedule TO</u>") with respect to the Offer in accordance with Rule 14d-3(a) promulgated under the Exchange Act, which Schedule TO shall contain or incorporate by reference as an exhibit the Offer to Purchase and forms of the letter of transmittal and summary advertisement, if any, and other required ancillary documents and exhibits, in each case, in respect of the Offer (together with any supplements or amendments thereto, and including all exhibits thereto, the "<u>Offer Documents</u>");

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) deliver a copy of the Offer Documents to the Company at its principal executive offices in accordance with Rule 14d-3(a) promulgated under the Exchange Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) give telephonic notice of the information required by Rule 14d-3 promulgated under the Exchange Act, and mail by means of first class mail a copy of the Offer Documents, to the NYSE in accordance with Rule 14d-3(a) promulgated under the Exchange Act.

Promptly following the filing with the SEC of the Offer Documents, Parent and Merger Sub shall cause the Offer Documents to be disseminated to all Company Stockholders as and to the extent required by applicable Law (including the Exchange Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Review; Comment Period</u>. Parent and Merger Sub shall use reasonable best efforts to cause the Schedule TO and the Offer Documents to comply as to form in all material respects with the requirements of applicable Law. The Company shall promptly furnish in writing to Parent and Merger Sub all information concerning the Company, its Subsidiaries, the Company Stockholders and the directors and officers of the Company that is required by applicable Law or is reasonably requested by Parent to be included in the Schedule TO or the other Offer Documents, in each case, no later than seven Business Days following the date hereof, so as to enable Parent and Merger Sub to comply with their obligations under <u>Section 1.1(a)</u>, <u>Section 1.1(f)</u> and this <u>Section 1.1(g)</u> and, unless the Company Board has effected a Company Change of Board Recommendation in accordance with <u>Section 6.3</u>, shall allow Parent and Merger Sub to include the Company Board Recommendation in the Offer Documents. Parent, Merger Sub and the Company shall cooperate in good faith to determine the information regarding the Company, its Subsidiaries, the stockholders of the Company and the directors and officers of the Company that is necessary or is reasonably requested by Parent and Merger Sub to include in the Schedule TO and the Offer Documents in order to satisfy applicable Law. Each of Parent, Merger Sub and the Company shall promptly correct any information provided by it or any of its respective Representatives for use in the Schedule TO or the Offer Documents if and to the extent such information shall have become false or misleading in any material respect. Parent and Merger Sub shall take all reasonable steps necessary to cause the Schedule TO and the Offer Documents, as so corrected, to be filed with the SEC and the Offer Documents, as so corrected, to be disseminated to the Company Stockholders, in each case, as and to the extent required by applicable Law, or by the SEC or its staff or the NYSE. Unless the Company Board has effected a Company Change of Board Recommendation, Parent and Merger Sub shall provide the Company and its counsel a reasonable opportunity to review and comment on the Schedule TO and the Offer Documents prior to the filing thereof with the SEC, and Parent and Merger Sub shall give reasonable and good faith consideration to any comments made by the Company and its counsel (it being understood that the Company and its counsel shall provide any comments thereon as soon as reasonably practicable). Unless the Company Board has effected a Company Change of Board Recommendation, Parent and Merger Sub shall provide in writing to the Company and its counsel any and all written comments or other substantive communications (and shall orally describe any oral comments or other substantive oral communications) that Parent, Merger Sub or their counsel may receive from the SEC or any other Governmental Entity or its staff with respect to the Schedule TO and the Offer Documents promptly after such receipt, and, unless the Company Board has effected a Company Change of Board Recommendation, Parent and Merger Sub shall provide the Company and its counsel a reasonable opportunity to participate in the formulation of any response to any such comments of the SEC or any other Governmental Entity or its staff (including by providing

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a reasonable opportunity for the Company and its counsel to review and comment on any such response, which comments Parent and Merger Sub shall consider reasonably and in good faith). Parent and Merger Sub shall use reasonable best efforts to (i) respond promptly to any such comments and (ii) take all other actions necessary to resolve the issues raised therein.

1.2 <u>Company Actions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Schedule 14D-9</u>. The Company shall (i) promptly prepare and file with the SEC, substantially concurrently with (and in any event on the same day as) the filing by Parent and Merger Sub of the Schedule TO and the Offer Documents, a Schedule 14D-9 containing (x) except as permitted by <u>Section 6.3</u>, the Company Board Recommendation and (y) a notice of appraisal rights in accordance with Section 262 of the DGCL, and (ii) take all steps necessary to disseminate the Schedule 14D-9 promptly after commencement of the Offer to the Company Stockholders as and to the extent required by Rule 14d-9 promulgated under the Exchange Act and any other applicable United States federal securities Laws. The Company shall use reasonable best efforts to cause the Schedule 14D-9 to comply as to form in all material respects with the requirements of applicable Law. Parent and the Company shall cause the Schedule 14D-9 to be mailed or otherwise disseminated to the Company Stockholders together with the Offer Documents. Each of Parent and Merger Sub shall promptly furnish in writing to the Company (or its legal counsel) all information concerning Parent and Merger Sub and their respective Subsidiaries, the stockholders of Parent or Merger Sub and the directors and officers of Parent or Merger Sub that is required by applicable Law or is reasonably requested by the Company to be included in the Schedule 14D-9 so as to enable the Company to comply with its obligations under this <u>Section 1.2(a).</u> Parent, Merger Sub and the Company shall cooperate in good faith to determine the information regarding Parent and Merger Sub and their respective Subsidiaries, the stockholders of Parent or Merger Sub and the directors and officers of Parent or Merger Sub that is necessary to include in the Schedule 14D-9 in order to satisfy applicable Law. Each of the Company, Parent and Merger Sub shall promptly correct any information provided by it or any of its respective Representatives for use in the Schedule 14D-9 if and to the extent that such information shall have become false or misleading in any material respect. The Company shall take all reasonable steps necessary to cause the Schedule 14D-9, as so corrected, to be filed with the SEC and disseminated to the Company Stockholders, in each case, as and to the extent required by applicable Law, or by the SEC or its staff or the NYSE. Unless the Company Board has effected a Company Change of Board Recommendation, the Company shall provide Parent, Merger Sub and their counsel a reasonable opportunity to review and comment on a substantially complete draft of the Schedule 14D-9 prior to the filing thereof with the SEC (and in any case, no later than seven Business Days following the date hereof), and the Company shall give reasonable and good faith consideration to any comments made by Parent, Merger Sub and their counsel (it being understood that Parent, Merger Sub and their counsel shall provide any comments thereon as soon as reasonably practicable). Unless the Company Board has effected a Company Change of Board Recommendation, the Company shall provide in writing to Parent, Merger Sub and their counsel any and all written comments or other substantive communications (and shall orally describe any oral comments or other substantive oral communications) that the Company or its counsel may receive from the SEC or any other Governmental Entity or its staff with respect to the Schedule 14D-9 promptly after such receipt, and unless the Company Board has effected a Company Change of Board Recommendation, the Company shall provide Parent, Merger Sub and their counsel a reasonable opportunity to participate in the formulation of any response to any such comments of the SEC or

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any other Governmental Entity or its staff (including by providing a reasonable opportunity for Parent, Merger Sub and their counsel to review and comment on any such response, which comments the Company shall consider reasonably and in good faith). The Company shall use reasonable best efforts to (i) respond promptly to any such comments and (ii) take all other actions necessary to resolve the issues raised therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Company Information</u>. In connection with the Offer, the Company shall, or shall cause its transfer agent to, promptly after the date of this Agreement and from time to time thereafter as reasonably requested by Parent, furnish Parent and Merger Sub with such assistance and such information available to the Company as Parent or its Representatives may reasonably request in order to disseminate and otherwise communicate the Offer to the record and beneficial holders of Company Common Shares, including an accurate and complete list as of the most recent practicable date (which shall be as of as of a date no later than ten Business Days prior to the date on which the Offer Documents and Schedule 14D-9 are first disseminated to the Company Stockholders, (such date, the "<u>Stockholder List Date</u>")), of the Company Stockholders, non-objecting beneficial owners, mailing labels and any available listing or computer files containing the names and addresses of all record and beneficial holders of Company Common Shares (including updated lists of stockholders, mailing labels, listings or files of securities positions (including lists of securities positions held in stock depositaries)). Prior to the filing with the SEC of the Schedule 14D-9, the Company shall set the Stockholder List Date as the record date for the purpose of receiving the notice required by Section 262(d)(2) of the DGCL. Subject to applicable Law, and except for such steps as are necessary to disseminate the Offer Documents and any other documents necessary to consummate the Merger, Parent and Merger Sub (and their respective Representatives) shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) hold in confidence in accordance with the Confidentiality Agreement the information contained in any such lists of stockholders, mailing labels and listings or files of securities positions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) use such information only in connection with the Offer and the Merger and only in the manner permitted by this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if this Agreement or the Offer is terminated, promptly return (and shall use their respective reasonable efforts to cause their agents to deliver) to the Company or destroy any and all copies and any extracts or summaries from such information then in their possession or control.

**ARTICLE 2** 

**THE MERGER** 

2.1 <u>The Merger</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the terms and subject to the conditions set forth in this Agreement, and in accordance with the DGCL, at the Effective Time, Merger Sub shall be merged with and into the Company. As a result of the Merger, the separate corporate existence of Merger Sub shall cease, and the Company shall continue as the surviving corporation of the Merger and a Subsidiary of Parent (the "<u>Surviving Corporation</u>"). The Merger shall be governed by and effected pursuant to

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Section 251(h) of the DGCL without a vote on the adoption of this Agreement by the Company Stockholders and shall have the effects set forth in this Agreement and the applicable provisions of the DGCL. Without limiting the generality of the foregoing, at the Effective Time, all of the property, rights, privileges, immunities, powers and franchises of the Company and Merger Sub shall vest in the Surviving Corporation, and all of the debts, liabilities and duties of the Company and Merger Sub shall become the debts, liabilities and duties of the Surviving Corporation, in each case, as provided under the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At the Effective Time, by virtue of the Merger and without the necessity of further action by the Company or any other Person, (i) the certificate of incorporation of the Company as in effect immediately prior to the Effective Time shall be amended and restated to read in its entirety in the form set forth on <u>Exhibit B</u> and, as so amended and restated, shall be the certificate of incorporation of the Surviving Corporation until thereafter changed or amended as provided therein or by applicable Law (subject to <u>Section 6.8</u>); and (ii) the bylaws of the Company as in effect immediately prior to the Effective Time shall be amended and restated to read in their entirety in the form of the bylaws of Merger Sub as in effect immediately prior to the Effective Time and, as so amended and restated, shall be the bylaws of the Surviving Corporation until thereafter changed or amended as provided therein and in the certificate of incorporation of the Surviving Corporation and by applicable Law (subject to <u>Section 6.8</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything in this Agreement to the contrary, if, at any time occurring on or after the Acceptance Time until the Effective Time, any change in the outstanding Equity Interests of the Company shall occur as a result of any reorganization, reclassification, recapitalization, stock split (including a reverse stock split), subdivision or combination, exchange or readjustment of shares, or any stock dividend or stock distribution (including any dividend or other distribution of securities convertible into Company Common Shares) with a record date during such period, the Merger Consideration and any other similarly dependent items, as the case may be, will be equitably adjusted to reflect such change and provide the holders of each Company Common Share and Company Equity Award the same economic effect as contemplated by this Agreement prior to such event.

2.2 <u>Closing and Effective Time of the Merger</u>. The closing of the Merger (the "<u>Closing</u>") will take place as soon as practicable following the Acceptance Time (but in any event on the same Business Day as the Acceptance Time), subject to the satisfaction or waiver of all of the applicable conditions set forth in <u>Article 7</u> (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the fulfillment or waiver (if permitted by applicable Law) of those conditions at the Closing) or at such other date and time as Parent and the Company may mutually agree in writing (the "<u>Closing Date</u>"), by electronic exchange of documents, unless another time, date or place is agreed to in writing by the parties hereto. Upon the terms and subject to the conditions set forth in this Agreement, at the Closing, the Company shall cause a certificate of merger with respect to the Merger (the "<u>Certificate of Merger</u>") to be executed and filed with the Secretary of State of the State of Delaware in accordance with the relevant provisions of the DGCL, and the Company and Merger Sub shall make all other deliveries, filings or recordings required under the DGCL in connection with the consummation of the Merger. The Merger shall become effective at the time the Certificate of Merger shall have been duly filed with the Secretary of State of the State of Delaware, or such later date and time as is agreed upon by the parties hereto and specified in the Certificate of Merger (such date and time at which the Merger becomes effective is hereinafter referred to as the "<u>Effective Time</u>").

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2.3 <u>Governance Matters</u>. At the Effective Time, the Company and the Surviving Corporation shall take all necessary action such that the directors of Merger Sub immediately prior to the Effective Time, or such other individuals designated by Parent as of the Effective Time, shall become the directors of the Surviving Corporation, each to hold office, from and after the Effective Time, in accordance with the certificate of incorporation and bylaws of the Surviving Corporation until their respective successors shall have been duly elected, designated or qualified, or until their earlier death, resignation or removal in accordance with the certificate of incorporation and bylaws of the Surviving Corporation.

**ARTICLE 3** 

**CONVERSION OF SECURITIES IN THE MERGER** 

3.1 <u>Conversion of Securities</u>. Upon the terms and subject to the conditions set forth in this Agreement, at the Effective Time, by virtue of the Merger and without any action on the part of Parent, Merger Sub, the Company or the holders of any of the securities of Parent, Merger Sub or the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conversion of Company Common Shares</u>. Each Company Common Share issued and outstanding immediately prior to the Effective Time, other than (A) any Dissenting Shares, (B) any Cancelled Shares and (C) any Company Restricted Shares (which shall be treated in accordance with <u>Section 3.4</u>), shall be converted into the right to receive cash in an amount equal to the Offer Price (the "<u>Merger Consideration</u>"), without interest and less any applicable withholding Tax pursuant to <u>Section 3.5</u>. From and after the Effective Time, all such Company Common Shares shall no longer be outstanding and shall automatically be cancelled and shall cease to exist, and each applicable holder of such Company Common Shares shall cease to have any rights with respect thereto, except the right to receive the Merger Consideration therefor upon surrender of Certificates or Book-Entry Shares in accordance with <u>Section 3.2</u> or <u>Section 3.4.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Merger Sub Equity Interests</u>. Each share of common stock, par value $0.01 per share, of Merger Sub issued and outstanding immediately prior to the Effective Time shall be converted into and become one validly issued, fully paid and nonassessable share of common stock, par value $0.01 per share, of the Surviving Corporation and shall constitute the only outstanding shares of capital stock of the Surviving Corporation. From and after the Effective Time, all certificates representing the common stock of Merger Sub shall be deemed for all purposes to represent the number of shares of common stock of the Surviving Corporation into which they were converted in accordance with the immediately preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Cancelled Shares</u>. Each Company Common Share that is owned directly by the Company (or any wholly owned Subsidiary of the Company), Parent, Merger Sub or any of their respective Affiliates (in each case, to the extent applicable) immediately prior to the Effective Time (the "<u>Cancelled Shares</u>") shall be cancelled and retired and shall cease to exist, and no consideration shall be delivered in exchange for such cancellation and retirement.

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3.2 <u>Payment for Securities; Surrender of Certificates</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Acceptance and Payment</u>. On the terms and conditions set forth in this Agreement, and pursuant to the procedures set forth in <u>Section 1.1(e),</u> following the Acceptance Time, Merger Sub shall (and Parent shall cause Merger Sub to) pay for all Company Common Shares that are validly tendered and not withdrawn pursuant to the Offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Paying Agent</u>. Prior to the Acceptance Time, Parent or Merger Sub shall designate a reputable U.S. bank or trust company to act as the paying agent for the Company Stockholders entitled to receive Merger Consideration pursuant to <u>Section 3.1(a)</u> (the identity and terms of designation and appointment of which shall be subject to the prior written consent of the Company, such consent not to be unreasonably withheld, conditioned or delayed) (the "<u>Paying Agent</u>"). Prior to the Acceptance Time, the Company and Parent shall enter into a paying agent agreement with the Paying Agent, which agreement shall set forth the duties, responsibilities and obligations of the Paying Agent consistent with the terms of this Agreement and otherwise reasonably acceptable to the Company and Parent. Parent shall pay, or cause to be paid, the fees and expenses of the Paying Agent. At or prior to the Effective Time, Parent shall deposit, or cause to be deposited, with the Paying Agent cash in immediately available funds in an amount equal to the aggregate Merger Consideration payable pursuant to <u>Section 3.1(a)</u> (such cash amounts, the "<u>Exchange Fund</u>") for the sole benefit of the holders of Company Common Shares entitled to receive Merger Consideration. Parent shall cause the Paying Agent to make delivery of the Merger Consideration out of the Exchange Fund in accordance with this Agreement. In the event the Exchange Fund shall at any time be insufficient to pay the aggregate amounts contemplated by <u>Section 3.1(a)</u>, Parent shall, or shall cause Merger Sub to, promptly deposit additional cash in immediately available funds, as applicable, with the Paying Agent in an amount that is equal to the deficiency in the amount required to make such payment. The Exchange Fund shall not be used for any purpose that is not expressly provided for in this Agreement. The Exchange Fund shall be invested by the Paying Agent as directed by Parent or Merger Sub, in its sole discretion, pending payment thereof by the Paying Agent to the holders of the Company Common Shares entitled to receive Merger Consideration; <u>provided</u> that, unless otherwise agreed by Parent and the Company prior to the Closing, any such investments shall be in obligations of, or guaranteed by, the United States government or any agency or instrumentality thereof, in commercial paper obligations rated A-1 or P-1 or better by Moody's Investors Service, Inc. or Standard & Poor's Corporation, respectively, or in certificates of deposit, bank repurchase agreements or banker's acceptances of commercial banks with capital exceeding $5.0 billion (based on the most recent financial statements of such bank that are then publicly available). Earnings from such investments shall be the sole and exclusive property of Parent or Merger Sub, and no part of such earnings shall accrue to the benefit of holders of Company Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Procedures for Exchange Fund</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Certificates*. As promptly as practicable after the Effective Time (and following receipt by the Paying Agent from the Company's transfer agent of all information reasonably necessary to enable the Paying Agent to effect the mailings set forth in this <u>Section</u> <u>3.2(c)</u>; provided, that Parent and the Surviving Corporation shall use reasonable best efforts to obtain all information necessary to enable such mailing to occur no later than five Business Days after the Effective Time), Parent or the Surviving Corporation shall cause the Paying Agent to mail

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to each Person that was, immediately prior to the Effective Time, a holder of record of Company Common Shares represented by certificates (the "<u>Certificates</u>"), which Company Common Shares were converted into the right to receive the Merger Consideration at the Effective Time pursuant to this Agreement: (A) a letter of transmittal, which shall be in a customary form reasonably acceptable to the Company and Parent prior to the Effective Time and shall specify that delivery shall be effected, and risk of loss and title to the Certificates shall pass, only upon delivery of the Certificates to the Paying Agent and shall otherwise be in such form as the Company, Parent and the Paying Agent shall reasonably agree upon (a "<u>Letter of Transmittal</u>"); and (B) instructions for effecting the surrender of the Certificates (or affidavits of loss in lieu of the Certificates as provided in <u>Section 3.2(f)</u>) in exchange for payment of the Merger Consideration, the forms of which instructions shall be subject to the approval of the Company (not to be unreasonably withheld, conditioned or delayed) prior to the Effective Time. Upon surrender of a Certificate (or affidavit of loss in lieu of the Certificate as provided in <u>Section 3.2(f)</u>) to the Paying Agent or to such other agent or agents as may be appointed in writing by Parent or Merger Sub, and upon delivery of a Letter of Transmittal, duly executed and in proper form, with respect to such Certificates, the holder of such Certificates shall be entitled to receive the Merger Consideration for each Company Common Share formerly represented by such Certificates (after giving effect to any required Tax withholdings as provided in <u>Section 3.5</u>), and any Certificate so surrendered shall forthwith be cancelled. If payment of the Merger Consideration is to be made to a Person other than the Person in whose name any surrendered Certificate is registered, it shall be a condition precedent of payment that the Certificate so surrendered shall be properly endorsed or shall be otherwise in proper form for transfer, and the Person requesting such payment shall have paid any Transfer Taxes required by reason of the payment of the Merger Consideration to a Person other than the registered holder of the Certificate so surrendered and shall have established to the satisfaction of the Surviving Corporation that such Taxes either have been paid or are not required to be paid. No interest will be paid or accrued on any amount payable upon due surrender of the Certificates. Until surrendered as contemplated hereby, each Certificate shall be deemed at any time after the Effective Time to represent only the right to receive the Merger Consideration as contemplated by this Agreement, except for Certificates representing any Dissenting Shares, which shall represent the right to receive payment of the fair value of such Company Common Shares in accordance with and to the extent provided by Section 262 of the DGCL, or any Cancelled Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Book-Entry Shares*. Notwithstanding anything to the contrary contained in this Agreement, no holder of non-certificated Company Common Shares represented by book-entry ("<u>Book-Entry Shares</u>") shall be required to deliver a Certificate or, in the case of holders of Book-Entry Shares held through The Depository Trust Company, an executed Letter of Transmittal to the Paying Agent to receive the Merger Consideration that such holder is entitled to receive pursuant to <u>Section 3.1(a)</u>. In lieu thereof, each holder of record of one or more Book-Entry Shares held through The Depository Trust Company whose Company Common Shares were converted into the right to receive the Merger Consideration shall upon the Effective Time, in accordance with The Depository Trust Company's customary procedures (including receipt by the Paying Agent of an "agent's message" (or such other evidence of transfer or surrender as the Paying Agent may reasonably request)) and such other procedures as agreed by the Company, Parent, the Paying Agent and The Depository Trust Company, be entitled to receive, and Parent shall cause the Paying Agent to pay and deliver to The Depository Trust Company or its nominee, for the benefit of the holder of such Book-Entry Shares held through it, as promptly as practicable after the Effective Time, in respect of each such Book-Entry Share, the Merger Consideration for

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each such Book- Entry Share (after giving effect to any required Tax withholdings as provided in <u>Section 3.5</u>) and such Book-Entry Shares of such holder shall forthwith be cancelled. As soon as practicable after the Effective Time (and in no event later than three Business Days after the Effective Time), the Surviving Corporation shall cause the Paying Agent to mail to each Person that was, immediately prior to the Effective Time, a holder of record of Book-Entry Shares not held through The Depository Trust Company (A) a Letter of Transmittal and (B) instructions for returning such Letter of Transmittal in exchange for the Merger Consideration, the forms of which Letter of Transmittal and instructions shall be subject to the approval of the Company (not to be unreasonably withheld, conditioned or delayed) prior to the Effective Time. Upon delivery of such Letter of Transmittal, in accordance with the terms of such Letter of Transmittal, duly executed and in proper form, the holder of such Book-Entry Shares shall be entitled to receive in exchange therefor the Merger Consideration, for each such Book-Entry Share (after giving effect to any required Tax withholdings as provided in <u>Section 3.5</u>), and such Book-Entry Shares so surrendered shall forthwith be cancelled. Payment of the Merger Consideration with respect to Book-Entry Shares shall only be made to the Person in whose name such Book-Entry Shares are registered. No interest will be paid or accrued on any amount payable upon due surrender of Book-Entry Shares. Until paid or surrendered as contemplated hereby, each Book-Entry Share shall be deemed at any time after the Effective Time to represent only the right to receive the Merger Consideration as contemplated by this Agreement, except for Book-Entry Shares representing Dissenting Shares, which shall be deemed to represent the right to receive payment in accordance with and to the extent provided by Section 262 of the DGCL, or Cancelled Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Transfer Books; No Further Ownership Rights in Company Common Shares</u>. At the Effective Time, the stock transfer books of the Company shall be closed, and thereafter there shall be no further recording or registration of transfers of Company Common Shares on the records of the Company. From and after the Effective Time, the holders of Certificates and Book-Entry Shares outstanding immediately prior to the Effective Time (other than holders of Certificates and Book-Entry Shares representing Dissenting Shares, and holders of Certificates and Book-Entry Shares representing Cancelled Shares) shall cease to have any rights with respect to such Company Common Shares, except the right to receive the Merger Consideration payable therefor upon the surrender thereof in accordance with the provisions of this <u>Section 3.2</u>. The Merger Consideration paid to such Company Stockholders in accordance with the terms of this <u>Article 3</u> shall be deemed to have been paid in full satisfaction of all rights pertaining to such Company Common Shares. From and after the Effective Time, the holders of Certificates and Book-Entry Shares representing Dissenting Shares shall cease to have any rights with respect to such Company Common Shares, except for the right to receive payment in accordance with and to the extent provided by Section 262 of the DGCL. From and after the Effective Time, the holders of Certificates and Book-Entry Shares representing Cancelled Shares shall cease to have any rights with respect to such Company Common Shares as provided for by <u>Section 3.1(c).</u> Notwithstanding the foregoing, if, after the Effective Time, Certificates or any other valid evidence of ownership of Company Common Shares that have not previously been surrendered are presented to the Surviving Corporation for any reason, they shall be cancelled and exchanged for the applicable Merger Consideration as provided in this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Termination of Exchange Fund; Abandoned Property; No Liability</u>. Any portion of the Exchange Fund (including any interest received with respect thereto) made available to the Paying Agent that remains unclaimed by the holders of Certificates or Book-Entry Shares on the 12-month anniversary of the Effective Time will be returned to the Surviving Corporation, upon demand, and any such holder who has not tendered its Certificates or Book-Entry Shares for the Merger Consideration in accordance with <u>Section 3.2(c)</u> prior to such time shall thereafter look only to the Surviving Corporation (subject to abandoned property, escheat or other similar Laws) for delivery of the Merger Consideration, in each case without interest and subject to any withholding of Taxes required by applicable Law, in respect of such holder's surrender of its Certificates or Book-Entry Shares and compliance with the procedures in <u>Section 3.2(c)</u>. Any Merger Consideration remaining unclaimed by the holders of Certificates or Book-Entry Shares immediately prior to such time as such amounts would otherwise escheat to, or become property of, any Governmental Entity will, to the extent permitted by applicable Law, become the property of the Surviving Corporation free and clear of any claims or interest of any Person previously entitled thereto. None of the Surviving Corporation, the Company, Merger Sub, Parent or the Paying Agent, or any employee, officer, director, agent or Affiliate of any of them, shall be liable to any Person in respect of any part of the Merger Consideration made available to the Paying Agent delivered to a public official pursuant to any applicable abandoned property, escheat or similar Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Lost, Stolen or Destroyed Certificates</u>. In the event that any Certificates shall have been lost, stolen or destroyed, the Paying Agent shall issue in exchange for such lost, stolen or destroyed Certificates, upon the making of an affidavit, in customary form, reasonably acceptable to Parent (which shall contain an agreement in customary form to indemnify Parent, Merger Sub, the Surviving Corporation and their respective Affiliates against any claim that may be made against Parent, Merger Sub, the Surviving Corporation or their respective Affiliates on account of the alleged loss, theft or destruction of such Certificates) of that fact by the holder thereof, the Merger Consideration payable in respect thereof pursuant to <u>Section 3.1(a)</u>, without interest and subject to any withholding Taxes required by applicable Law. In addition, Parent may, in its reasonable discretion and as a condition precedent to the payment of such Merger Consideration, require the owner(s) of such lost, stolen or destroyed Certificates to deliver a bond in a customary and reasonable sum as it may reasonably direct as indemnity against any claim that may be made against Parent, Merger Sub, the Surviving Corporation or the Paying Agent with respect to the Certificates alleged to have been lost, stolen or destroyed.

3.3 <u>Dissenting Shares</u>. Notwithstanding anything to the contrary contained in this Agreement (but subject to the provisions of this <u>Section 3.3</u>), if required by the DGCL (but only to the extent required thereby), all Company Common Shares issued and outstanding immediately prior to the Effective Time and held by a holder who is entitled to demand, and has properly demanded, appraisal for such Company Common Shares in accordance with, and who complies in all respects with, Section 262 of the DGCL (such Company Common Shares, the "<u>Dissenting Shares</u>"), shall not be converted into the right to receive the Merger Consideration. At the Effective Time, all Dissenting Shares shall be cancelled and cease to exist, and the holders of Dissenting Shares shall only be entitled to the rights specifically granted to them under the DGCL with respect to Dissenting Shares. If any such holder of Dissenting Shares fails to perfect or otherwise waives, withdraws or loses its right to appraisal under Section 262 of the DGCL or other applicable Law, then such Dissenting Shares shall be deemed to have been converted into, as of the Effective Time, and shall be exchangeable for, subject to compliance with the procedures in <u>Section 3.2(c)</u>, solely the right to receive the Merger Consideration, without interest and subject to any withholding Taxes pursuant to <u>Section 3.5</u>. The Company shall give Parent: (i) prompt notice (and in any event

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within one Business Day following receipt) of any written demand for appraisal received by the Company prior to the Effective Time pursuant to the DGCL, any withdrawal of any such demand and any other demand, notice or instrument delivered to the Company prior to the Effective Time pursuant to the DGCL that relates to such demand; and (ii) the right to participate in and direct all negotiations and proceedings with respect to any such demand, notice or instrument. The Company shall not pay or settle, or make any payment or settlement offer, prior to the Effective Time with respect to any such demand, notice or instrument or agree to do any of the foregoing unless Parent shall have given its written consent to such payment or settlement, or payment or settlement offer.

3.4 <u>Treatment of Company Equity Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Company Time-Based Restricted Shares</u>. The Company shall take all requisite action so that each Company Time-Based Restricted Share that is outstanding under any Company Equity Plan as of immediately prior to the Effective Time shall, by virtue of the Merger, automatically and without any action on the part of the Company, Parent or the holder thereof, cease to represent a Company Time-Based Restricted Share and shall be cancelled and converted into a right to receive an amount in cash, without interest (a "<u>Restricted Cash Award</u>") equal to the sum of (A) the product of (i) the number of shares of Company Common Stock subject to such Company Time-Based Restricted Share immediately prior to the Effective Time and (ii) the Merger Consideration, plus (B) the Company Restricted Share Accrued Dividends with respect to such Company Time-Based Restricted Share. Except as set forth in this <u>Section 3.4(a),</u> each Restricted Cash Award shall be governed by substantially similar terms and conditions (including vesting and forfeiture terms) as were applicable to the corresponding Company Time-Based Restricted Shares immediately prior to the Effective Time, provided, that each Restricted Cash Award shall vest and become payable upon the earlier of (i) the date the corresponding Company Time-Based Restricted Share would have vested pursuant to the terms thereof and (ii) the date that is 90 days following the Closing Date. On the Closing Date, Parent shall pay by wire transfer of immediately available funds to the account of the Company's payroll provider ("<u>Payroll Provider</u>") identified in writing by the Company to Parent (which shall be so identified no later than two Business Days prior to the Closing Date) the aggregate amount of the Restricted Cash Awards payable under this <u>Section 3.4(a),</u> and the Surviving Corporation shall, or Parent shall cause the Surviving Corporation to, cause the Payroll Provider to make payment of each Restricted Cash Award to the holder thereof, through the Surviving Corporation's normal payroll procedures via a special payroll run as soon as reasonably practicable following the date such Restricted Cash Award becomes payable in accordance with this <u>Section 3.4(a)</u> (but in any event no later than three Business Days thereafter and less any applicable withholding Taxes pursuant to <u>Section 3.5</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Company Performance-Based Restricted Shares</u>. The Company shall take all requisite action so that each Company Performance-Based Restricted Share that is outstanding under any Company Equity Plan as of immediately prior to the Effective Time shall, by virtue of the Merger automatically and without any action on the part of the Company, Parent or the holder thereof, vest in full (assuming achievement of maximum performance) and become free of restrictions and shall be cancelled and terminated automatically and converted into the right to receive from the Surviving Corporation an amount in cash (without interest) equal to sum of (i) the Merger Consideration *plus* (ii) the Company Restricted Share Accrued Dividends with respect to such Company Performance-Based Restricted Share (the "<u>Performance-Based Restricted Share Consideration</u>"). On the Closing Date, Parent shall pay by wire transfer of immediately available

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funds to the account of the Payroll Provider identified in writing by the Company to Parent pursuant to <u>Section 3.4(a)</u>, and the Surviving Corporation shall, or Parent shall cause the Surviving Corporation to, cause the Payroll Provider to pay to each holder of a Company Performance-Based Restricted Share, through the Company's normal payroll procedures via a special payroll run as soon as reasonably practicable following the Closing Date (but in any event no later than three Business Days thereafter), the applicable Performance-Based Restricted Share Consideration (less any applicable withholding Taxes pursuant to <u>Section 3.5</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Company DCP Units</u>. The Company shall take all requisite action so that, effective as of immediately prior to the Effective Time, each Company DCP Unit that is outstanding under any Company Equity Plan as of immediately prior thereto shall, by virtue of the Merger automatically and without any action on the part of the Company, Parent or the holder thereof, be cancelled and terminated automatically and converted into the right to receive from the Surviving Corporation (without interest) as soon as reasonably practicable after the Effective Time (but in any event no later than five Business Days after the Effective Time), an amount in cash equal to (i) the number of Company Common Shares subject to such Company DCP Unit immediately prior to the Effective Time *multiplied by* (ii) the Merger Consideration (the "<u>DCP Unit Consideration</u>"); provided, that, with respect to any Company DCP Units that constitute nonqualified deferred compensation subject to Section 409A of the Code and that are not permitted to be paid at the Effective Time without triggering a Tax or penalty under Section 409A of the Code, such payment shall be made at the earliest time permitted under the applicable Company Equity Plan and deferral election form that will not trigger a Tax or penalty under Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Company Actions</u>. At or prior to the Effective Time, the Company or the Company Board (or a committee thereof), as applicable, shall adopt any resolutions and take any actions that are necessary to (i) effectuate the treatment of the Company Time-Based Restricted Shares, the Company Performance-Based Restricted Shares and the Company DCP Units in <u>Sections 3.4(a),</u> (b) and <u>(c),</u> and (ii) cause the Company Equity Plans to terminate at or prior to the Effective Time.

3.5 <u>Withholding Rights</u> . Parent, Merger Sub, the Surviving Corporation, the Company and the Paying Agent, as the case may be, shall be entitled to deduct and withhold from any amounts otherwise payable pursuant to this Agreement, such amounts that Parent, Merger Sub, the Surviving Corporation, the Company or the Paying Agent is required to deduct and withhold with respect to the making of such payment under the Code, the rules and regulations promulgated thereunder or any provision of applicable Tax Law; <u>provided</u>, <u>however</u>, that, except (i) with respect to amounts treated as compensation for Tax purposes or (ii) as a result of the failure of any holder of Company Common Shares to provide Internal Revenue Service Form W-9 or W-8, as applicable, demonstrating that such holder is exempt from withholding, Parent shall provide the Company commercially reasonable notice of any applicable payor's intention to make such deduction or withholding and provide the Company with a reasonable opportunity to obtain reduction of or relief from such deduction or withholding. Parent shall reasonably cooperate with the Company to obtain such reduction of or relief from such deduction or withholding. To the extent that amounts are so withheld and timely paid over to the applicable Governmental Entity, such amounts shall be treated for all purposes of this Agreement as having been paid to the Person in respect of which such deduction and withholding was made.

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3.6 <u>Further Actions</u>. As of the Effective Time, the officers and directors of Parent and the Surviving Corporation shall have taken all actions required to authorize the execution and delivery, in the name and on behalf of the Company and Merger Sub, any deeds, bills of sale, assignments or assurances and the taking and doing, in the name and on behalf of the Company and Merger Sub, of any other actions and things to vest, perfect or confirm of record or otherwise in the Surviving Corporation any and all right, title and interest in, to and under any of the rights, properties or assets acquired or to be acquired by the Surviving Corporation as a result of, or in connection with, the Merger.

**ARTICLE 4** 

**REPRESENTATIONS AND WARRANTIES OF THE COMPANY** 

Except as set forth in (i) the Company SEC Documents filed on or after January 1, 2023 (the "<u>Applicable Date</u>") and publicly available prior to the date hereof (other than any disclosures contained under the captions "Risk Factors" or "Forward-Looking Statements," and any other disclosures that are predictive, cautionary or forward-looking in nature but, for the purpose of clarification, including and giving effect to any factual or historical statements included in any such statements), but it being understood that this clause (i) shall not be applicable to any of <u>Sections 4.1</u>, <u>4.2</u> or <u>4.4</u>, or (ii) the corresponding sections of the disclosure schedule delivered by the Company to Parent and Merger Sub concurrently with the execution of this Agreement (the "<u>Company Disclosure Schedule</u>") (it being acknowledged and agreed that disclosure in any Section or Subsection of the Company Disclosure Schedule shall be deemed disclosed with respect to all sections of this Agreement and all other sections or subsections of the Company Disclosure Schedule to the extent that the relevance of such disclosure to such other Section or subsection is reasonably apparent on the face of such disclosure), the Company hereby represents and warrants to Parent and Merger Sub as follows:

4.1 <u>Organization and Qualification; Subsidiaries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company is a corporation, duly incorporated and validly existing under the Laws of Delaware and has requisite corporate power and authority to carry on its business as it is now being conducted, except for such failures to have such power or authority that would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. The Company is in good standing under the Laws of Delaware and has requisite corporate power and authority to carry on its business as it is now being conducted, except for such failures to be in good standing that would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Each of the Company's Subsidiaries (each, a "<u>Company Subsidiary</u>") is a corporation or other legal entity duly organized, validly existing and in good standing (with respect to jurisdictions that recognize such concept) under the Laws of the jurisdiction of its incorporation or organization and has the requisite corporate or organizational, as the case may be, power and authority to own, lease or operate its property or assets or carry on its business as it is now being conducted, in each case, except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. The Company and each of its "significant subsidiaries" (as defined in Regulation S-X promulgated under the Securities Act) (each, a "<u>Significant Company Subsidiary</u>") is duly qualified to do business and is in good standing (with respect to jurisdictions that recognize such concept) in each jurisdiction where the ownership, leasing or operations of its properties or assets or the conduct of its business requires such qualification, except where the failure to be so qualified or in good standing would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has made available or caused to be made available to Parent true, correct and complete copies of (i) any amendments to the Certificate of Incorporation of the Company (the "<u>Company Charter</u>") not filed prior to the date hereof with the SEC, (ii) any amendments to the Amended and Restated Bylaws of the Company (the "<u>Company Bylaws</u>") not filed prior to the date hereof with the SEC and (iii) the certificates of incorporation and bylaws, or equivalent organizational or governing documents, of each Significant Company Subsidiary. The Company is in compliance in all material respects with the provisions of the Company Charter and the Company Bylaws and each Significant Company Subsidiary is in compliance in all material respects with its organizational and governing documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Section 4.1(c)</u> of the Company Disclosure Schedule sets forth as of the date hereof a true, correct and complete list of the Company Subsidiaries, together with the jurisdiction of organization or incorporation, as the case may be, of each Company Subsidiary. Neither the Company nor any Company Subsidiary, directly or indirectly, owns any Equity Interest in any Person other than the Company Subsidiaries. All of the outstanding shares of capital stock of, or other Equity Interests in, each Company Subsidiary have been duly authorized and validly issued and are fully paid and nonassessable. Except as set forth in <u>Section 4.1(c)</u> of the Company Disclosure Schedule, all of the outstanding shares of capital stock of, or other Equity Interests in, each Company Subsidiary are owned, directly or indirectly, by the Company free and clear of all Liens, other than Permitted Liens.

4.2 <u>Capitalization</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The authorized capital stock of the Company consists of (i) 75,000,000 Company Common Shares, of which, as of the close of business on May 6, 2025 (the "<u>Capitalization Date</u>"), there were 37,922,368 Company Common Shares issued and outstanding (inclusive of 395,362 Company Time-Based Restricted Shares and 1,004,996 Company Performance-Based Restricted Shares (assuming achievement of applicable performance metrics at the target performance level and which would vest in respect of 1,884,368 Company Common Shares in the aggregate assuming achievement of applicable performance metrics at the maximum performance levels) and (ii) 10,000 shares of preferred stock, par value of $0.01666 per share ("<u>Company Preferred Shares</u>"), of which, as of the close of business on the Capitalization Date, there were no shares issued and outstanding. No Company Subsidiary owns any Company Common Shares or Company Preferred Shares or has any option or warrant to purchase any Company Common Shares or Company Preferred Shares or any other Equity Interest in the Company. No shares of the Company Subsidiaries are held by the Company or any other Company Subsidiary. All of the outstanding capital stock of the Company has been duly authorized and validly issued and is fully paid, nonassessable and free of preemptive rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Section 4.2(b) of the Company Disclosure Schedule sets forth a correct and complete listing of all outstanding Company Equity Awards as of the Capitalization Date, setting forth, with respect to the Company Restricted Shares, the amount of the related Company Restricted Share Accrued Dividends. As of the close of business on the Capitalization Date, (i)

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1,400,358 Company Restricted Shares were granted and outstanding under the Company Equity Plans (which, for the avoidance of doubt, does not include additional Company Performance-Based Restricted Shares issuable upon achievement of performance metrics beyond the target performance level), which are entitled to an aggregate of $267,300 of Company Restricted Share Accrued Dividends, (ii) 299,255 Company DCP Units were granted and outstanding under the Company Equity Plans and (iii) 2,001,233 Company Common Shares were reserved for future issuance under the Company Equity Plans for awards not yet granted. All Company Common Shares subject to issuance under the Company Equity Plans, upon issuance prior to the Effective Time on the terms and conditions specified in the instruments pursuant to which they are issuable, will be duly authorized, validly issued, fully paid, nonassessable and free of preemptive rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As of the close of business on the Capitalization Date, other than the Company Equity Awards, there are no outstanding Equity Interests or other options, warrants or other rights, relating to or based on the value of any Equity Interests of the Company or any Company Subsidiary or obligating the Company or any Company Subsidiary to issue, acquire or sell any Equity Interests of the Company or any Company Subsidiary. Since the close of business on the Capitalization Date, the Company has not issued any Company Common Shares (inclusive of Company Restricted Shares), Company Preferred Shares, Company DCP Units or other Equity Interests other than Company Common Shares issued upon the settlement of Company DCP Units outstanding as of the close of business on the Capitalization Date in accordance with their terms or as permitted pursuant to <u>Section 6.1.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Other than the Company Equity Awards, there are no obligations (whether outstanding or authorized) of the Company or any Company Subsidiary requiring the redemption or repurchase of, or containing any right of first refusal with respect to, or granting any preemptive rights with respect to, any Company Common Shares or other Equity Interests of the Company or any Company Subsidiary. There are no voting trusts or other agreements or understandings to which the Company or any Company Subsidiary is a party with respect to the voting of Company Common Shares or other Equity Interests of the Company or any Company Subsidiary, other than any such agreements solely between and among the Company and any Company Subsidiary or solely between and among two or more Company Subsidiaries. There are no outstanding bonds, debentures, notes or other indebtedness of the Company having the right to vote (or convertible into, or exchangeable for, securities having the right to vote) on any matters on which holders of Company Common Shares may vote.

4.3 <u>Authority</u>. The Company has all requisite corporate power and authority necessary to execute and deliver this Agreement and, assuming the Merger is consummated in accordance with Section 251(h) of the DGCL, to perform (subject to the conditions contained herein) its obligations hereunder and to consummate the transactions contemplated by the Agreement, including the Merger and the Offer. The Company Board has properly elected to enter into this Agreement and consummate the transaction contemplated hereby pursuant to Section 251(h) of the DGCL. The Company Board, at a meeting duly called and held prior to the execution hereof, has by unanimous vote (the "<u>Company Board Approval</u>") (i) determined that this Agreement and the transactions contemplated hereby, including the Offer and the Merger, are advisable, fair to and in the best interests of the Company and its stockholders, and declared it advisable for the Company to enter into this Agreement; (ii) approved and declared advisable the execution and delivery by the Company of this Agreement, the performance by the Company of its covenants and agreements

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contained herein and the consummation of the Offer and the Merger and the other transactions contemplated by this Agreement upon the terms and subject to the conditions contained herein; (iii) resolved that this Agreement and the Merger be governed by Section 251(h) of the DGCL; and (iv) made the Company Board Recommendation. Assuming that the Merger is consummated in accordance with Section 251(h) of the DGCL, no other corporate proceedings on the part of the Company (including any stockholder vote) are necessary to adopt this Agreement or to consummate the Offer or the Merger. No provision of the Company Charter or Company Bylaws prohibits the Company and Parent from completing the Merger pursuant to Section 251(h) of the DGCL. Absent Section 251(h) of the DGCL, the affirmative vote of the holders of not less than a majority of the voting power of the outstanding Company Common Shares would be the only vote of the Company Stockholders necessary to adopt this Agreement and approve the other transactions contemplated hereby under Delaware Law, the Company Charter and Company Bylaws. Immediately prior to the execution hereof, the Company Common Shares are listed on a national securities exchange or are held of record by more than 2,000 holders. This Agreement has been duly and validly executed and delivered by the Company and, assuming due and valid authorization, execution and delivery by Parent and Merger Sub, constitutes a legally valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other similar Laws of general applicability relating to or affecting creditors' rights, and to general equitable principles, including specific performance and injunctive and other forms of equitable relief (the "<u>Enforceability Exceptions</u>").

4.4 <u>No Conflict</u>. None of the execution, delivery or performance of this Agreement by the Company or the consummation by the Company of the Merger or any other transaction contemplated by this Agreement will (with or without notice or lapse of time, or both) conflict with or violate any provision of the Company Charter or the Company Bylaws. Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, none of the execution, delivery or performance of this Agreement by the Company or the consummation by the Company of the Merger, the Offer or any other transaction contemplated by this Agreement will (with or without notice or lapse of time, or both), (a) assuming that all consents, approvals, authorizations and permits described in <u>Section 4.5</u> have been obtained and all filings and notifications described in <u>Section 4.5</u> have been made and any waiting periods thereunder have terminated or expired, and any other condition precedent to such consent, approval, authorization or waiver has been satisfied, conflict with or violate any Law applicable to the Company or any Company Subsidiary or any of their respective properties or assets or (b) require any consent or approval under, violate, conflict with, result in any breach of, any loss of benefit under, or constitute a change of control or default under, or result in termination or give to others any right of termination, vesting, amendment, acceleration or cancellation of, any Company Material Contract or Company Real Property Lease to which the Company or any Company Subsidiary is a party or by which they or any of their respective properties or assets may be bound or any Company Permit.

4.5 <u>Required Filings and Consents</u>. Assuming the accuracy of the representations and warranties of Parent and Merger Sub in <u>Section 5.4</u>, none of the execution, delivery or performance of this Agreement by the Company or the consummation by the Company of the Merger, the Offer or any other transaction contemplated by this Agreement will require (with or without notice or lapse of time, or both) any consent, approval, authorization or permit of, or filing or registration

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with or notification to, any Governmental Entity, other than (a) the filing of the Certificate of Merger as required by the DGCL; (b) compliance with any applicable foreign, federal or state securities or blue sky Laws, including pursuant to the applicable requirements of the Securities Act and the Exchange Act; (c) such filings as may be required under the rules and regulations of the NYSE; (d) the filing with the SEC of the Schedule TO, Schedule 14D-9 and the Offer Documents and such other reports required in connection with the transactions pursuant to this Agreement under, and such other compliance with, the Exchange Act and the Securities Act and the rules and regulations thereunder; and (e) consents, approvals, authorizations or permits of, filings, registrations with or notifications to, any Governmental Entity (including with respect to any Competition Laws), the failure of which to obtain or make would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

4.6 <u>Permits; Compliance with Law</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company and the Company Subsidiaries hold the authorizations, licenses, permits, certificates, variances, exemptions, approvals, orders, registrations and clearances of any Governmental Entity listed in <u>Section 4.6</u> of the Company Disclosure Schedule for the Company and the Company Subsidiaries to own, lease and operate their properties and assets, and to carry on and operate their businesses as currently conducted (collectively, the "<u>Company Permits</u>"), except where the failure to comply with, to obtain or have, or the suspension or cancellation of, or failure to be valid or to be in full force and effect of, any of the Company Permits, would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. The Company Permits are the only such authorizations, licenses, permits, certificates, variances, exemptions, approvals, orders, registrations and clearances of any Governmental Entity required for the Company and the Company Subsidiaries to own, lease and operate their properties and assets, and to carry on and operate their businesses as currently conducted, except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Company and each of the Company Subsidiaries is in compliance with the terms and requirements of such Company Permits and the Company Permits are not subject to any pending or threatened Proceeding by any Governmental Entity to suspend, cancel, modify, terminate or revoke any such Company Permit. Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, since the Applicable Date, there has occurred no violation by the Company or any of the Company Subsidiaries of, default (with or without notice or lapse of time, or both) that would reasonably be expected to result in any suspension, cancellation, modification, termination or revocation of any Company Permit. The Company and the Company Subsidiaries have paid all fees and assessments due and payable in connection with the Company Permits, except where the failure to make such a payment would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Company nor any Company Subsidiary is, and since the Applicable Date has not been, in conflict with, default under or violation of any Law applicable to the Company or any Company Subsidiary or by which any property or asset of the Company or any Company Subsidiary is bound or affected, except for any conflicts, defaults or violations as have not been or would not reasonably be expected to be material to the Company and the Company Subsidiaries, taken as a whole.

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4.7 <u>SEC Filings; Financial Statements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Since the Applicable Date, the Company has, in all material respects, timely filed with or otherwise furnished (as applicable) to the SEC all registration statements, prospectuses, forms, reports, certifications, proxy statements, schedules, statements and documents required to be filed or furnished by it with the SEC under the Securities Act or the Exchange Act, as the case may be (such documents and any other documents filed or furnished by the Company with the SEC since the Applicable Date as have been supplemented, modified or amended since the time of filing, collectively, the "<u>Company SEC Documents</u>"). As of their respective filing dates or, if supplemented, modified or amended prior to the date hereof, as of the date of the most recent supplement, modification or amendment, the Company SEC Documents (i) did not (or, with respect to the Company SEC Documents filed after the date hereof and prior to the Acceptance Time, will not) contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading and (ii) complied (or, with respect to the Company SEC Documents filed after the date hereof and prior to the Acceptance Time, will comply), as of such date, as to form in all material respects with the applicable requirements of the Exchange Act, the Securities Act or the Sarbanes-Oxley Act, as the case may be, and the applicable rules and regulations of the SEC thereunder and the listing and corporate governance rules and regulations of the NYSE, <u>provided</u>, <u>however</u>, in each case, that no representation is made as to the accuracy of any financial projections or forward-looking statements or the completeness of any information filed or furnished by the Company to the SEC solely for the purposes of complying with Regulation FD promulgated under the Exchange Act. None of the Company's Subsidiaries is required to file periodic reports with the SEC. As of the date of this Agreement, there are no outstanding or unresolved comments in any comment letters of the staff of the SEC received by the Company or any Company Subsidiary relating to the Company SEC Documents. To the Knowledge of the Company, as of the date hereof, none of the Company SEC Documents is the subject of ongoing SEC review or outstanding SEC investigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The audited financial statements and unaudited interim financial statements of the Company (including, in each case, any related notes thereto) included in the Company SEC Documents (collectively, the "<u>Company Financial Statements</u>") (i) when filed complied as to form (or, in the case of Company Financial Statements filed after the date of this Agreement and prior to the Acceptance Time, will comply) in all material respects with the published rules and regulations of the SEC with respect thereto and (ii) fairly present in all material respects the financial position and the results of operations, cash flows and changes in stockholders' equity of the Company as of the dates and for the periods referred to therein in accordance with GAAP applied on a consistent basis during the periods involved (subject, in the case of interim financial statements, to normal and recurring year-end adjustments none of which would be material, individually or in the aggregate, and the absence of notes, none of which if presented would materially differ from those presented in the audited Company Financial Statements and except as may be indicated in the notes thereto).

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4.8 <u>Internal Controls</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Since the Applicable Date, the Company has designed and maintained in all material respects a system of internal control over financial reporting (as defined in Rules 13a- 15(f) and 15d-15(f) of the Exchange Act) to provide reasonable assurances regarding the reliability of financial reporting for the Company and the Company Subsidiaries and the preparation of financial statements for external purposes in accordance with GAAP. Since the Applicable Date the Company (i) has maintained in all material respects "disclosure controls and procedures" (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) that are designed to ensure that material information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and is accumulated and communicated to the Company's management as appropriate to allow timely decisions regarding required disclosure and to make the certifications of the chief executive officer and chief financial officer of the Company required under the Exchange Act with respect to such reports; and (ii) based on its most recent evaluation of internal controls over financial reporting prior to the date hereof, has disclosed to the Company's auditors and the audit committee of the Company Board (A) any significant deficiencies or material weaknesses in the design or operation of internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that have not been remediated and are reasonably likely to adversely affect in any material respect the Company's ability to record, process, summarize and report financial information; (B) any fraud that involves management or other employees who have a significant role in the Company's internal control over financial reporting and (C) since the Applicable Date, the principal executive officer and the principal financial officer of the Company have made all certifications required by the Sarbanes-Oxley Act, the Exchange Act and any related rules and regulations promulgated by the SEC with respect to the Company SEC Documents, and the statements contained in such certifications were complete and correct as of the dates they were made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Company nor any of the Company Subsidiaries has made any prohibited loans to any executive officer of the Company (as defined in Rule 3b-7 under the Exchange Act) or director of the Company. There are no, and since the Applicable Date there have not been any, outstanding loans or other extensions of credit made by the Company or any of its Subsidiaries to any executive officer of the Company (as defined in Rule 3b-7 under the Exchange Act and Section 402 of the Sarbanes-Oxley Act) or director of the Company.

4.9 <u>No Undisclosed Material Liabilities</u>. Except for those liabilities and obligations (a) specifically disclosed or reflected and adequately reserved against or provided for in the Company Financial Statements filed as of December 31, 2024, (b) incurred in the ordinary course of business consistent with past practice since December 31, 2024 (none of which is a liability resulting from a breach of contract, breach of warranty, tort, infringement or misappropriation), (c) incurred in accordance with this Agreement or in connection with any transaction contemplated by this Agreement or (d) that otherwise are not or would not be reasonably expected to be material to the Company and the Company Subsidiaries, taken as a whole, neither the Company nor any Company Subsidiary is, as of the date of this Agreement, subject to any material liabilities or obligations, of any kind whatsoever, whether accrued, contingent or otherwise.

4.10 <u>Absence of Certain Changes or Events</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Since December 31, 2024 through the date of this Agreement, the Company and the Company Subsidiaries have conducted their respective businesses in all material respects in the ordinary course of business consistent with past practice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Since December 31, 2024 through the date of this Agreement, there has not occurred any Effect that has had or would be reasonably expected to have, individually or in the aggregate, a Company Material Adverse Effect.

4.11 <u>Employee Benefit Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 4.11(a)</u> of the Company Disclosure Schedule lists all material Benefit Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has made available to Parent, with respect to each material Benefit Plan, (i) each writing constituting the plan document of such Benefit Plan, including all amendments thereto, and all trust agreements, and insurance contracts and other funding vehicles, (ii) the most recent Annual Report (Form 5500 Series) and accompanying schedules, if any, (iii) the current summary plan description and any material modifications thereto, if any, (iv) the most recent annual financial report, trustee report, audit report or actuarial report, if any, and (v) the most recent determination or opinion letter from the IRS (if applicable) for such Benefit Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Benefit Plan has been maintained, operated, registered and administered, in all material respects, in compliance with its terms and with applicable Law, including ERISA and the Code to the extent applicable thereto. Each Benefit Plan intended to be "qualified" within the meaning of Section 401(a) of the Code has received a favorable determination letter from the IRS or is entitled to rely upon a favorable opinion issued by the IRS, and to the Knowledge of the Company, there are no circumstances likely to result in the loss of the qualification of such plan under Section 401(a) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Benefit Plan provides medical, life insurance or other welfare benefits with respect to Company Employees beyond their retirement or other termination of service, other than coverage mandated by applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All contributions or other amounts payable by the Company or the Company Subsidiaries with respect to each Benefit Plan in respect of current or prior plan years have been paid or accrued in accordance with GAAP (other than with respect to amounts not yet due).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) None of the Company, any of the Company Subsidiaries, any Company Employees or any Benefit Plan that is subject to ERISA, or any trust created thereunder or any trustee or administrator thereof, has engaged in a nonexempt "prohibited transaction" (as such term is defined in Section 406 of ERISA and Section 4975 of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) There are no pending or, to the Knowledge of the Company, threatened complaints, lawsuits or claims (other than claims for benefits in accordance with the terms of the Benefit Plans) by, on behalf of or against any of the Benefit Plans or any trusts related thereto, or against any fiduciary of any Benefit Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) None of the Company, any Company Subsidiary or any ERISA Affiliate has now or at any time within the previous six years contributed to, sponsored or maintained (or has been required to contribute to, sponsor or maintain) (i) a plan that is subject to Section 302 or Title IV of ERISA or Section 412 or 4971 of the Code or (ii) a "multiemployer plan" within the meaning of Section 4001(a) of ERISA or a plan that has two or more contributing sponsors at least two of

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whom are not under common control within the meaning of Section 4063 of ERISA. No liability under Title IV of ERISA has been incurred, or is reasonably expected to be incurred, by the Company, any of the Company Subsidiaries or any ERISA Affiliate with respect to any Benefit Plan, in each case, that has not been satisfied in full (other than with respect to amounts not yet due).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Neither the execution of this Agreement nor the consummation of the transactions contemplated by this Agreement will, either alone or in combination with another event, (i) entitle any Company Employee to severance, change of control or other pay or benefits, (ii) cause any payment or funding (through a grantor trust or otherwise) to become due or accelerate the time of payment or vesting, or increase the amount of compensation or benefits due to any Company Employee, or increase the amount payable, pursuant to any Benefit Plan, (iii) result in any forgiveness of Indebtedness of any Company Employee, (iv) limit or restrict the right to merge, materially amend, terminate or transfer the assets of any Benefit Plan on or following the Effective Time or (v) result in the payment of any amount that could, individually or in combination with any other such payment, constitute an "excess parachute payment" as defined in Section 280G(b)(1) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Company has made available to Parent or Parent's Representatives preliminary calculations under Section 280G of the Code which (based on the assumptions stated forth therein) are true and correct as of the date of such calculations with respect to any "disqualified individual" within the meaning of Section 280G of the Code. Neither the Company nor any Company Subsidiary has any obligation to gross up, indemnify or otherwise reimburse any Company Employee for any Taxes incurred pursuant to Sections 409A or 4999 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Company Board has determined that each member of the compensation committee of the Company Board is an "independent director" as defined in Section 303A.02(a) of the NYSE Listed Company Manual and is an "independent director" in accordance with the requirements of Rule 14d-10(d)(2) under the Exchange Act. The compensation committee of the Company Board has: (i) at a meeting duly called and held, duly adopted resolutions approving each employment, compensation severance and employee benefit agreement, arrangement or understanding entered into on or before the date hereof by the Company or any of its Affiliates with current or future directors, officers or employees of the Company and its Affiliates as an "employment compensation, severance or other employee benefit arrangement" within the meaning of Rule 14d-10(d)(2) under the Exchange Act; and (ii) taken all other actions and made all other determinations necessary or advisable to ensure that any such arrangements fall within the safe harbor provisions of Rule 14d-10(d).

4.12 <u>Labor Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each of the Company and the Company Subsidiaries currently complies, and since the Applicable Date has complied, with all applicable Laws respecting labor, employment, immigration, and employment practices in connection with employees and independent contractors, including all laws respecting terms and conditions of employment, hiring, promotion, termination, workers' compensation, health and occupational safety, non-discrimination, harassment, retaliation, whistleblowing, child labor, privacy, disability

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rights or benefits, equal opportunity, plant closings, mass layoffs, affirmative action, payment of social security dues and contributions, profit sharing, labor relations, right to organize and to bargain collectively, pay equity, overtime pay, employee leave issues, worker classification, exempt and non-exempt classification, compensation and benefits, unemployment insurance, wages and hours, and the Worker Adjustment and Retraining Notification Act of 1988, as amended, and state and local equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, all individuals who perform or have performed services for the Company or any Company Subsidiary have been properly classified under applicable Law since the Applicable Date (i) as employees or individual independent contractors and (ii) for employees, as an "exempt" employee or a "non-exempt" employee (within the meaning of the Fair Labor Standards Act and applicable state Law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) Neither the Company nor any Company Subsidiary is a party to or bound by any labor agreement, collective bargaining agreement, or any other labor-related agreements or arrangements with any labor union, labor organization or works council (each, a "<u>Labor Agreement</u>") and no such agreements or arrangements are currently being negotiated by the Company or any Company Subsidiary; (ii) no labor union or organization, works council or group of employees of the Company or any Company Subsidiary has made a pending written demand for recognition or certification and (iii) there are no, and there have not been since the Applicable Date, any representation or certification proceedings or petitions seeking a representation proceeding or, to the Knowledge of the Company, threatened to be brought or filed with the National Labor Relations Board or any other applicable labor relations authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, since the Applicable Date, (i) there have been no grievances, hand-billing, picketing, work stoppage, lock-out, slowdown or labor strike or, to the Knowledge of the Company, threatened against the Company or any Company Subsidiary and (ii) there is no labor dispute proceeding pending, or to the Knowledge of the Company, threatened against the Company or any Company Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No notice, consent or consultation obligations with respect to any employee of the Company or any Company Subsidiary, or any labor or other employee representative body of employees of the Company or any Company Subsidiary, will be a condition precedent to, or triggered by, the execution of this Agreement or the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the Knowledge of the Company, since the Applicable Date, no allegations of sexual harassment or sexual misconduct have been made against any officer or director of the Company or any Company Subsidiary.

4.13 <u>Contracts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 4.13(a)</u> of the Company Disclosure Schedule sets forth, as of the date hereof, a true, correct and complete list of each Contract (other than any Company Real Property Lease or Benefit Plan) that is in effect and to which the Company or any Company Subsidiary is a party or which binds their respective properties or assets, and that falls within any of the following categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any "material contract" (as such term is defined in Item 601(b)(10) of Regulation S-K promulgated by the SEC);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Contract that grants "most favored nation" or "most favored customer" status to any Person in each case that is material to the Company or any Company Subsidiary, taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Contract entered into since the Applicable Date (A) relating to the disposition or acquisition of assets by the Company or any Company Subsidiary with a value greater than $500,000; or (B) pursuant to which the Company or any Company Subsidiary acquired or will acquire any ownership interest in any other Person or other business enterprise other than the Company or any Company Subsidiary that is material to the Company and the Company Subsidiaries, taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any joint venture, partnership, strategic alliance or similar Contract with a third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Contract that contains any covenant limiting in any material respect the ability of the Company or the Company Subsidiaries to engage in any line of business or compete with any Person, in each case, in any geographic area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any Contract relating to Indebtedness of the Company or any Company Subsidiary in an initial principal amount in excess of five million dollars ($5,000,000), other than any such Contract solely between the Company or any Company Subsidiary, on the one hand, and any other Company Subsidiary, on the other hand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any Contract mortgaging, pledging or otherwise granting any Person a Lien on any material portion of equity or assets of the Company or any Company Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any contract providing for indemnification of any officer, director or employee of the Company or any Company Subsidiary with respect to service in such capacities, other than Contracts entered into on substantially the same form as the Company's standard forms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) any Contract (A) pursuant to which the Company or any Company Subsidiary receives a license, right, consent, or covenant not to assert, under or with respect to any material Intellectual Property (other than licenses for open source, "off-the-shelf" or other Software widely available on generally standard terms and conditions for a one-time or annual fee (whichever is higher) of no more than $200,000) or (B) pursuant to which the Company or any Company Subsidiary grants to a third party a license, right, consent, or covenant not to assert, under or with respect to any Intellectual Property (other than non- exclusive licenses granted to customers in the ordinary course of business consistent with past practices that do not permit further resale or distribution) (each such Contract described in (A) and (B), an "<u>IP License</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) any Labor Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) any Contract providing for preferential purchase rights, consents to assignment, or similar transfer restrictions that will be triggered as a result of the entry into this Agreement or the consummation of the Offer and the Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) all bonds, letters of credit, guaranties and other similar credit support instruments that are maintained by Company or any of its Affiliates with any Governmental Entity or other Person with respect to the Mineral Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) any contracts, operating agreements, sales agreements, or other agreements, in each case materially affecting the amounts of royalty payments or other payments to which the Company is entitled in relation to the Mineral Interests (excluding pooling authorizations, production sharing agreements, allocation agreements, division orders, and similar agreements relating to the division of proceeds of production); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) any Contract not otherwise set forth in <u>Section 4.13(a)</u> of the Company Disclosure Schedule that obligates the Company or any Company Subsidiary for payments in excess of $50,000 annually.

Each Contract of the type described in this <u>Section 4.13(a)</u> is referred to herein as a "<u>Company Material Contract</u>." True and complete copies of each Company Material Contract in effect as of the date hereof have been made available to Parent (including pursuant to agreed-upon procedures to protect competitively sensitive information) or publicly filed with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) each Company Material Contract is a legal, valid, binding and enforceable obligation of the Company or the Company Subsidiary party thereto and is in full force and effect (except as may be limited by the Enforceability Exceptions); (ii) none of the Company, any Company Subsidiary or, to the Knowledge of the Company, any counterparty is in breach or default under any Company Material Contract; (iii) to the Knowledge of the Company, no event has occurred, and no circumstances or condition exists, that (with or without notice or lapse of time) would be reasonably expected to result in the termination of any Company Material Contract and (iv) since the Applicable Date, none of the Company or any Company Subsidiary has received any notice or communication regarding any termination of any Company Material Contract.

4.14 <u>Litigation</u>. There is no Proceeding to which the Company or any Company Subsidiary is a party pending or, to the Knowledge of the Company, threatened, that would have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Neither the Company nor any Company Subsidiary is (i) subject to any outstanding Order that would have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect or (ii) has received any written claims, notices, petitions or communications alleging adverse title to any of the Mineral Interests. Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, there are no Proceedings pending or, to the Knowledge of the Company, threatened with respect to the taking of any Mineral Interests or any material portion thereof in condemnation or under right of eminent domain.

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4.15 <u>Environmental Matters</u>. Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (a) each of the Company, the Company Subsidiaries, and the facilities, assets, operations and business of the Company and the Company Subsidiaries is, and since the Applicable Date has been, in compliance with applicable Environmental Laws; (b) none of the Company or any Company Subsidiary has received in the past five years or is subject to any written notice, demand, letter, investigation or Proceeding that remains outstanding and that alleges that the Company or such Company Subsidiary is in violation of, or has liability under, any Environmental Law; (c) none of the Company or any Company Subsidiary, nor to the Knowledge of the Company, any other Person, has in the past five years released any Hazardous Substances at, on, from or under any Company Leased Real Property or property currently or formerly owned, operated, used or leased by the Company or any Company Subsidiary that would reasonably be expected to result in the Company or any Company Subsidiary incurring material liability under applicable Environmental Laws, and (d) neither the Company nor any Company Subsidiary has entered into or agreed to any Order, judgment, decree or other order or is subject to any Order, judgment, decree or other order relating to Environmental Laws, Environmental Permits or Hazardous Substances.

Notwithstanding anything in this <u>Section 4.15</u> or elsewhere in this Agreement to the contrary, the Company makes no representation or warranty regarding compliance with Environmental Laws related to exploration and production activities with respect to the Mineral Interests or any assets or properties constituting any portion thereof, and the representations and warranties included in this <u>Section 4.15</u> shall constitute the sole and exclusive representations and warranties of the Company in this Agreement with respect to Environmental Laws and other environmental matters.

4.16 <u>Intellectual Property; Privacy and Data Security</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except for Internet Domain Names and corporate names, there are no registrations, issuances or pending applications for the Company Intellectual Property with any Governmental Entity, and payment of all renewal, maintenance and other necessary fees and expenses in respect of the material Internet Domain Names and corporate names that are Company Intellectual Property have been timely submitted and duly made. All such Internet Domain Names and corporate names are subsisting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company or one of the Company Subsidiaries (i) solely and exclusively owns all right, title and interest in and to all Company Intellectual Property and has valid rights to use all Company Licensed Intellectual Property that are used in the operations of the Company and the Company Subsidiaries, in all cases, free and clear of all Liens (other than Permitted Liens), and (ii) has taken commercially reasonable actions to maintain and protect each item of such Company Intellectual Property, except, in each case, as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. The Company and each Company Subsidiary has taken commercially reasonable actions to maintain and protect the confidentiality of all material Trade Secrets included in the Company Intellectual Property and all Trade Secrets included in all Company Licensed Intellectual Property with respect to which the Company or any Company Subsidiary has any confidentiality obligations. To the Knowledge of the Company, no Person to whom any material Trade Secret included in the Company Intellectual Property has been disclosed is in violation of any agreement restricting the disclosure or use of such Trade Secret or any fiduciary or ethical duty to maintain the confidentiality of such Trade Secret.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, none of the Company, any Company Subsidiary or the conduct or operation of the business of the Company or any Company Subsidiary has, in the past six years, infringed, misappropriated, diluted or otherwise violated, and do not currently infringe, misappropriate, dilute or otherwise violate, any Intellectual Property of any Person. Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, no Proceedings are pending against the Company or any Company Subsidiary or, to the Knowledge of the Company, are threatened against the Company or any Company Subsidiary, alleging that the Company or any Company Subsidiary is infringing, misappropriating, diluting or otherwise violating any Intellectual Property of any Person or otherwise challenging the ownership, use, validity or enforceability of any of the Company Intellectual Property or Company Licensed Intellectual Property, and no such Proceedings have been brought since the Applicable Date. Since the Applicable Date, neither the Company nor any Company Subsidiary has received written notice of any such threatened claim or challenge. Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, to the Knowledge of the Company, no Person has infringed, misappropriated, diluted, used in an unauthorized manner or otherwise violated, or is infringing, misappropriating, diluting, using in an unauthorized manner or otherwise violating, any Company Intellectual Property, and neither the Company nor any Company Subsidiary has instituted or threatened to institute any Proceeding against any Person with respect to the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Company and each Company Subsidiary has executed valid and enforceable written agreements with each of its former and current founders, officers, directors, employees, consultants and independent contractors who have created or developed, or are creating or developing, any Intellectual Property for or on behalf of the Company or any Company Subsidiary, pursuant to which each such Person has validly assigned to the Company or such Company Subsidiary all of such Person's rights, title and interest in and to all such Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company and each Company Subsidiary takes and has taken reasonable measures to maintain and protect the performance, confidentiality, integrity and security of the IT Assets. The IT Assets (i) are sufficient (including with respect to working condition and capacity) in all material respects for the operation of the business of the Company and each Company Subsidiary as currently conducted, and (ii) do not, to the Knowledge of the Company, contain any defect, viruses, worms, Trojan horses, bugs, faults or other devices, errors, contaminants or effects that: (A) materially disrupt or adversely affect the functionality of any IT Assets; or (B) enable or assist any Person to access without authorization any IT Systems. Neither the Company nor any Company Subsidiary owns or purports to own any proprietary Software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, since the Applicable Date: the Company and the Company Subsidiaries have maintained (x) policies and procedures regarding data security, privacy and Processing of data that are commercially reasonable and (y) reasonable and

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appropriate security measures, to protect Personal Information stored in the Company's and the Company Subsidiaries' computer systems or under the control of the Company or any of the Company Subsidiaries from unlawful use, access or disclosure by any third party or any other use by a third party that would violate such policies. The Company and the Company Subsidiaries have taken reasonable steps to ensure that any third party that Processes Personal Information for or on behalf of the Company or any of the Company Subsidiaries maintains reasonable and appropriate security measures to protect such information from unlawful use, access or disclosure. To the Knowledge of the Company, no third party has provided any Personal Information to the Company in violation of applicable Privacy Requirements. Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Company and the Company Subsidiaries and, to the Knowledge of the Company, any Persons acting for or on behalf of the Company or any Company Subsidiary, have been, since the Applicable Date, in compliance in all respects with all Privacy Requirements, and neither the Company nor any Company Subsidiary, nor, to the Knowledge of the Company, any third party acting on behalf of the Company or any Company Subsidiary, has received a written notice of any complaint, claim, charge, investigation or regulatory inquiry from any Governmental Entity or any other third party regarding its Processing of Personal Information that is pending or unresolved and, to the Knowledge of the Company, there are no facts or circumstances that would give rise to any such complaints, claims, charges, investigations or inquiries. Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, in the past five years, there has been (i) no loss or theft of data or security breach relating to data or the IT Assets used in the business of the Company and the Company Subsidiaries; (ii) no material violation of any security policy regarding any such data; (iii) no unauthorized access or unauthorized use of any data or the IT Assets; (iv) no failures, breakdowns, continued substandard performance, outages or unscheduled downtime or other adverse events affecting any of the IT Assets that have caused or resulted in a material disruption to the operation of the business; and (v) no unintended, improper or unauthorized access to, use or disclosure of any Personal Information in the possession, custody or control, or Processed on behalf of the Company or a Company Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Company and the Company Subsidiaries are not subject to any legal obligation that, following the Closing, would prohibit the Company or any Company Subsidiary from Processing any Personal Information in the manner in which the Company or such Company Subsidiary Processed such Personal Information prior to the Closing.

4.17 <u>Tax Matters</u>. Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Tax Returns that are required to be filed by the Company or the Company Subsidiaries have been timely filed with the appropriate Governmental Entity (taking into account any extension of time within which to file), and all such Tax Returns are true, complete and accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company and the Company Subsidiaries have timely paid all Taxes due and owing by any of them (whether or not shown) on all such Tax Returns, other than Taxes and deficiencies for which, or with respect to which, adequate reserves have been established on or reflected in the financial statements of the Company and the Company Subsidiaries in accordance with GAAP.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company and the Company Subsidiaries have withheld and timely paid all Taxes required to have been withheld and paid in connection with any amounts paid or owing to any employee, independent contractor, creditor, shareholder or other third party (including, without limitation, Sections 1441 and 1442 of the Code or similar provisions under any state, local, or foreign Laws), and complied with all information reporting and back-up withholding provisions of applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) There are no pending, ongoing or, to the Knowledge of the Company, threatened in writing, audits, examinations, investigations or other proceedings with respect to any Taxes or Tax Return of the Company or the Company Subsidiaries. Neither the Company nor any of the Company Subsidiaries has waived any statute of limitations with respect to Taxes or agreed to or is the beneficiary of any extension of time with respect to any Tax assessment, deficiency or collection, which waiver or extension currently remains in effect (other than such extension that arises solely as a result of an extension of time to file a Tax Return obtained in the ordinary course of business).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Neither the Company nor any of the Company Subsidiaries will be required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Effective Time as a result of (i) any installment sale or open transaction disposition made prior to the Effective Time, (ii) any prepaid amount received on or prior to the Effective Time, (iii) Section 481(a) of the Code (or an analogous provision of state, local, or foreign Law) by reason of a change in accounting method made prior to the Effective Time, or (iv) any "closing agreement" as described in Section 7121 of the Code (or any corresponding or similar provision of state, local or foreign Law) executed prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Neither the Company nor any of the Company Subsidiaries has ever been a member of a consolidated, combined or unitary Tax group (other than such a group comprised solely of the Company or any Company Subsidiary or such a group of which the Company is the common parent), and neither the Company nor any Company Subsidiary has any liability for Taxes of any other Person (other than Taxes of the Company or any Company Subsidiary) in accordance with U.S. Treasury Regulation Section 1.1502-6 (or any similar provision of state, local, or foreign Law), as a transferee or successor, or by Contract (other than customary commercial Contracts entered into in the ordinary course of business and the principal subject matter of which is not Taxes).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither the Company nor any of the Company Subsidiaries has made a request for an advance tax ruling, request for technical advice, a request for a change of any method of accounting or any similar request that is in progress or pending with any Governmental Entity with respect to any amount of Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Neither the Company nor any of the Company Subsidiaries has entered into, participated in, or been a party to any "listed transaction" within the meaning of U.S. Treasury Regulation Section 1.6011-4(b)(2).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Neither the Company nor any of the Company Subsidiaries has constituted a "distributing corporation" or a "controlled corporation" (within the meaning of Section 355(a)(1)(A) of the Code) in a distribution of stock intended to qualify for tax-free treatment under Section 355 of the Code in the two years prior to the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Neither the Company nor any of the Company Subsidiaries is a party to any Tax allocation, sharing or indemnity agreement (other than any Tax indemnification provisions in commercial agreements that are not primarily related to Taxes and other than any agreement solely between or among any of the Company and the Company Subsidiaries).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) There are no Liens for Taxes (other than Permitted Liens) upon the assets of the Company or any of the Company Subsidiaries.

4.18 <u>Real Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company and Company Subsidiaries do not own any real property other than the Mineral Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Section 4.18(b)</u> of the Company Disclosure Schedule sets forth a true and complete list of each Company Real Property Lease, under which the Company or any Company Subsidiary uses or occupies or has the right to use or occupy any real property at which operations of the Company and the Company Subsidiaries are conducted (the "<u>Company Leased Real Property</u>"). Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) each Company Real Property Lease is valid, binding and in full force and effect; (ii) none of the Company, any Company Subsidiary or, to the Knowledge of the Company, any counterparty is in material breach or default under any Company Real Property Lease, and no event has occurred or circumstance exists which, with or without notice, lapse of time, or both, would constitute a material default by the Company, any Company Subsidiary or any counterparty under any Company Real Property Lease or permit termination, modification or acceleration by any third party thereunder, and to the Knowledge of the Company, neither the Company nor any Company Subsidiary has received notice that it has breached, violated or defaulted under any Company Real Property Lease, in each case, other than such items, if any, that have been cured; and (iii) the Company or the applicable Company Subsidiary has a good and valid leasehold interest, subject to the terms of the Company Real Property Lease applicable thereto, in each parcel of Company Leased Real Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as set forth on <u>Section 4.18(c)</u> of the Company Disclosure Schedule, as of the date of this Agreement, none of the Company Leased Real Property have been leased or subleased to any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, neither the Company nor any Company Subsidiary has received any written notice of any condemnation, eminent domain, requisition or taking by any Governmental Entity with respect to any Company Leased Real Property, or negotiations for the purchase of any Company Leased Real Property in lieu of condemnation, and, to the Knowledge of the Company, no condemnation, eminent domain, requisition or taking has been commenced or threatened in connection with any of the foregoing.

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4.19 <u>Insurance</u>. Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Company and the Company Subsidiaries maintain policies of insurance with reputable carriers covering the Company, the Company Subsidiaries and their respective employees, properties or assets (collectively, "<u>Insurance Policies</u>") in a coverage amount that is adequate for the operation of the Company's and the Company Subsidiaries' businesses and contains terms and conditions that are reasonable and customary for Persons engaged in similar businesses as the Company and the Company Subsidiaries and subject to the same or similar perils or hazards. The Insurance Policies are in full force and effect and all premiums due with respect thereto have been paid. Neither the Company nor any Company Subsidiary nor, to the Knowledge of the Company, any other insured under the Insurance Policies (a) is, or with the giving or notice or lapse of time or both would be, in breach or default of any of the Insurance Policies or (b) has received any written notice of termination, cancellation, denial of coverage, premium increase or modification with respect to any Insurance Policy, and all such insurance is outstanding and in force, except in each case, which would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

4.20 <u>Opinion of Financial Advisor</u>. RBC Capital Markets, LLC has rendered to the Company Board an oral opinion, which will be confirmed by a written opinion, to the effect that, as of the date of such opinion and based on and subject to the various qualifications, assumptions and limitations set forth therein, the Offer Price and the Merger Consideration to be received in the Offer and the Merger by the holders of Company Common Shares are fair, from a financial point of view, to such holders. The oral opinion has not been amended or rescinded as of the date of this Agreement. A signed, correct and complete copy of such written opinion will promptly be made available to Parent, for informational purposes only, following receipt thereof by the Company.

4.21 <u>Schedule 14D-9; Schedule TO</u>. The Schedule 14D-9, when filed with the SEC, at the time of any amendment of or supplement thereto, at the time of the commencement of the Offer and at the Acceptance Time, as applicable, will comply as to form in all material respects with the applicable requirements of the Exchange Act and all other applicable Laws and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; <u>provided</u>, <u>however</u>, that no representation or warranty is made by the Company with respect to (i) statements included or incorporated by reference in the Schedule 14D-9 based on information supplied by or on behalf of Parent or Merger Sub or any of their directors, officers, employees, Affiliates, agents or other Representatives, or (ii) any financial projections or forward-looking statements. None of the information provided or to be provided in writing by or on behalf of the Company or any of its Representatives for inclusion or incorporation by reference in the Schedule TO or the Offer Documents, when filed with the SEC, at the time of any amendment of or supplement thereto, at the time of any publication, distribution or dissemination thereof, at the time of the commencement of the Offer and at the Acceptance Time, as applicable, will contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; <u>provided</u>, <u>however</u>, that no representation or warranty is made by the Company with respect to statements included or incorporated by reference in the Schedule TO or the Offer Documents based on information supplied by or on behalf of Parent or Merger Sub or any of their directors, officers, employees, Affiliates, agents or other Representatives.

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4.22 <u>Brokers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except for the Company's obligations to RBC Capital Markets, LLC, Intrepid Financial Partners, LLC and Blank Rome LLP, no broker, investment banker, financial advisor or other Person (each such advisor, a "<u>Company Advisor</u>") is entitled to any brokerage, finders', advisory or similar fee in connection with the transactions contemplated by this Agreement, including the Merger, based upon arrangements made by or on behalf of the Company or any Company Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Company Advisor is entitled to any brokerage, finders', advisory or similar fee in connection with any other change in control of the Company or any of the Company Subsidiaries or the sale, transfer or disposition of any assets of the Company or any of the Company Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Section 4.22(c)</u> of the Company Disclosure Schedule sets forth all agreements or other arrangements under which any fees, commissions or other amounts have been paid or may become payable and all indemnification or other agreements or arrangements related to the engagement of the Company Advisors (the "<u>Company Advisor Agreements</u>"). The Company has made available to Parent complete and correct copies of each Company Advisor Agreement.

4.23 <u>State Takeover Statutes</u>. Assuming the accuracy of the representations contained in <u>Section</u> <u>5.8</u>, no "moratorium," "fair price," "business combination," "control share acquisition" or similar provision of any state anti-takeover Law (including Section 203 of the DGCL) or any similar anti-takeover provision in the Company Charter or the Company Bylaws is, or at the Acceptance Time or the Effective Time will be, applicable to this Agreement, the Tender and Support Agreements, the Merger, the Offer, or any of the other transactions contemplated hereby.

4.24 <u>Affiliate Transactions</u>. There have not been since the Applicable Date any transactions, Contracts, agreements, arrangements or understandings or series of related transactions, Contracts, agreements, arrangements or understandings, nor are there any of the foregoing currently proposed, that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Securities Act that have not been disclosed in the Company SEC Documents filed prior to the date hereof.

4.25 <u>Corrupt Practices; Sanctions</u>. Except as would not have or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, in the course of operating the business of the Company and the Company Subsidiaries since the Applicable Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the Company, the Company Subsidiaries, nor, any director, officer, manager, employee, or, the Knowledge of the Company, agent acting for or on behalf of the Company or any of the Company Subsidiaries has (i) used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to political activity; (ii) made any unlawful payment to foreign or domestic government officials or employees or to foreign or domestic political parties or campaigns; (iii) directly or indirectly offered, promised, given or authorized any payment or anything else of value to foreign or domestic government officials or employees

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in violation of applicable Anti-Corruption Laws; or (iv) otherwise violated any applicable Anti-Corruption Laws. The Company and the Company Subsidiaries have since the Applicable Date maintained accurate books and records and a system of internal controls in each case as required by applicable Anti-Corruption Laws, including the U.S. Foreign Corrupt Practices Act of 1977, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Company, the Company Subsidiaries, nor any director, officer, manager, employee, or, to the Knowledge of the Company, agent acting for or on behalf of the Company or any of the Company Subsidiaries (i) has been nor is a Sanctioned Person, or (ii) has transacted business with or for the benefit of any Sanctioned Person or violated applicable Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the Company nor the Company Subsidiaries has (i) been fined or penalized, (ii) received any notice from a Governmental Entity concerning any actual or possible violation with respect to the Company or any of the Company Subsidiaries, or (iii) received any other allegation or report or conducted any internal investigation, in each case with respect to any applicable Sanctions or Anti-Corruption Laws.

4.26 <u>No Other Representations or Warranties</u>. Except for the representations and warranties contained in this <u>Article</u> <u>4</u>, neither the Company nor any Representative or other Person on behalf of either makes any express or implied representation or warranty with respect to them or with respect to any other information provided to Parent and Merger Sub or any of their directors, officers, employees, Affiliates, agents or other Representatives in connection with the transactions contemplated hereby. The Company (on its own behalf and on behalf of its Affiliates and each of its Representatives) acknowledges and agrees that, except for the representations and warranties expressly set forth in <u>Article 5</u> of this Agreement (as qualified by the Parent Disclosure Schedule) or the Limited Guarantee, (a) neither Parent nor Merger Sub, nor any of their respective Affiliates or Representatives makes, or has made, any representations or warranties relating to itself or its business or otherwise in connection with the Merger or the Offer, the other matters contemplated by this Agreement and the entry into this Agreement by the parties hereto, and none of the Company, its Affiliates and its respective Representatives are relying on or has relied on any representation or warranty of Parent, Merger Sub, or any of their respective Subsidiaries, Representatives or Affiliates except for those expressly set forth in <u>Article 5</u> of this Agreement (as qualified by the Parent Disclosure Schedule) or the Limited Guarantee and (b) no Person has been authorized by Parent, Merger Sub or any of their respective Subsidiaries, Representatives or Affiliates to make any representation or warranty relating to such entities or their businesses or otherwise in connection with the Merger or the Offer, and if made, such representation or warranty must not be relied upon by the Company as having been authorized by such party.

**ARTICLE 5** 

**REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB** 

Except as set forth in the corresponding sections of the disclosure schedule delivered by Parent and Merger Sub to the Company concurrently with the execution of this Agreement (the "<u>Parent Disclosure Schedule</u>") (it being acknowledged and agreed that disclosure in any Section or Subsection of the Parent Disclosure Schedule shall be deemed disclosed with respect to all sections of this Agreement and all other sections or subsections of the Parent Disclosure Schedule to the extent that the relevance of such disclosure to such other Section or subsection is reasonably apparent on the face of such disclosure), Parent and Merger Sub each hereby, jointly and severally, represent and warrant to the Company as follows:

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5.1 <u>Organization and Qualification</u>. Each of Parent and Merger Sub is a corporation, duly incorporated and validly existing and in good standing under the Laws of its respective jurisdiction of incorporation and each has requisite corporate power and authority to carry on its business as it is now being conducted, except for such failures to be in good standing or to have such power or authority that would not have or reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect. Parent and Merger Sub are each duly qualified to do business and are in good standing (with respect to jurisdictions that recognize such concept) in each jurisdiction where the conduct of their business requires such qualification, except where the failure to be so qualified or in good standing would not have or reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect. Both Parent and Merger Sub are in compliance in all material respects with the provisions of their respective certificates of incorporation and bylaws (or other similar governing documents), in each case, except for violations which would not have or reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.

5.2 <u>Authority</u>. Each of Parent and Merger Sub has all requisite corporate power and authority necessary to execute and deliver this Agreement and, assuming the Merger is consummated in accordance with Section 251(h) of the DGCL, to perform (subject to the conditions contained herein) their respective obligations hereunder and to consummate the transactions contemplated hereby, including the Merger and the Offer. The execution and delivery by Parent and Merger Sub of this Agreement and the consummation by Parent and Merger Sub of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of Parent or Merger Sub (subject to, in the case of the Merger, obtaining the vote or consent of Parent as sole stockholder of Merger Sub). Assuming that the Merger is consummated in accordance with Section 251(h) of the DGCL, no other corporate proceedings on the part of Parent or Merger Sub are necessary to adopt this Agreement or to consummate the Offer or the Merger. This Agreement has been duly and validly executed and delivered by each of Parent and Merger Sub and, assuming due and valid authorization, execution and delivery by the Company, constitutes a legally valid and binding obligation of each of Parent and Merger Sub, enforceable against Parent and Merger Sub in accordance with its terms, except as may be limited by the Enforceability Exceptions.

5.3 <u>No Conflict</u>. None of the execution, delivery or performance of this Agreement by Parent or Merger Sub, or the consummation by Parent or Merger Sub of the Merger or any other transaction contemplated by this Agreement, will (with or without notice or lapse of time, or both) conflict with or violate any provision of the organizational or governing documents of Merger Sub or Parent in any material respect. Except as would not have or reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect, none of the execution, delivery or performance of this Agreement by Parent or Merger Sub, the consummation by Parent or Merger Sub of the Merger, the Offer or any other transaction contemplated by this Agreement will (with or without notice or lapse of time, or both) (a) assuming that all consents, approvals, authorizations and permits described in <u>Section 5.4</u> have been obtained and all filings and notifications described in <u>Section 5.4</u> have been made and any waiting periods thereunder have terminated or expired, and any other condition precedent to such consent, approval, authorization or waiver has been satisfied,

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conflict with or violate any Law applicable to Parent or Merger Sub or any Subsidiary of Parent or Merger Sub or any of their respective properties or assets or (b) to the Knowledge of Parent or Merger Sub, as applicable, require any consent or approval under, violate, conflict with, result in any breach of, or constitute a default under, or result in termination or give to others any right of termination, vesting, amendment, acceleration or cancellation of, any Contract to which Parent, Merger Sub or any Subsidiary of Parent or Merger Sub is a party or by which they or any of their respective properties or assets may be bound.

5.4 <u>Required Filings and Consents</u>. Assuming the accuracy of the representations and warranties of the Company in <u>Section 4.5</u>, none of the execution, delivery or performance of this Agreement by Parent and Merger Sub, or the consummation by Parent and Merger Sub of the Merger, the Offer or any other transaction contemplated by this Agreement, will require (with or without notice or lapse of time, or both) any consent, approval, authorization or permit of, or filing or registration with, or notification to, any Governmental Entity, other than (a) the filing of the Certificate of Merger as required by the DGCL; (b) compliance with any applicable foreign, federal or state securities or blue sky Laws, including pursuant to the applicable requirements of the Securities Act and the Exchange Act; (c) such filings as may be required under the rules and regulations of the NYSE; (d) the filing with the SEC of the Schedule 14D-9, the Schedule TO and the Offer Documents and such other reports required in connection with the transactions pursuant to this Agreement under, and such other compliance with, the Exchange Act and the Securities Act and the rules and regulations thereunder and (e) consents, approvals, authorizations or permits of, filings, registrations with or notifications to, any Governmental Entity (including with respect to any Competition Laws), the failure of which to obtain or make would not have or reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.

5.5 <u>Litigation</u>. There is no Proceeding to which Parent or Merger Sub or any Subsidiary of Parent or Merger Sub is a party pending or, to the Knowledge of Parent or Merger Sub, as applicable, threatened that would have, individually or in the aggregate, a Parent Material Adverse Effect. Neither Parent nor Merger Sub nor any Subsidiary of Parent or Merger Sub is subject to any outstanding Order that would have, individually or in the aggregate, a Parent Material Adverse Effect.

5.6 <u>Schedule TO; Schedule 14D-9</u>. The Schedule TO and the Offer Documents, when filed with the SEC, at the time of any amendment of or supplement thereto, at the time of any publication, distribution or dissemination thereof, at the time of the commencement of the Offer and at the Acceptance Time, will comply as to form in all material respects with the applicable requirements of the Exchange Act and all other applicable Laws and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; <u>provided</u>, <u>however</u>, that no representation or warranty is made by Parent or Merger Sub with respect to (i) statements included or incorporated by reference in the Schedule TO or the Offer Documents based on information supplied by or on behalf of the Company or any of its directors, officers, employees, Affiliates, agents or other Representatives, or (ii) any financial projections or forward-looking statements. None of the information provided or to be provided in writing by or on behalf of Parent, Merger Sub, or any of their respective Representatives for inclusion or incorporation by reference in the Schedule 14D-9, when filed with the SEC, at the time of any amendment of or supplement thereto, at the time of any publication, distribution or

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dissemination thereof, at the time of the commencement of the Offer and at the Acceptance Time, as applicable, will contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; <u>provided</u>, <u>however</u>, that no representation or warranty is made by Parent or Merger Sub with respect to statements included or incorporated by reference in the Schedule 14D-9 based on information supplied by or on behalf of the Company or any of its directors, officers, employees, Affiliates, agents or other Representatives.

5.7 <u>Brokers</u>. Other than Stephens Inc., no broker, investment banker, financial advisor or other Person is entitled to any brokerage, finders', advisory or similar fee in connection with the transactions contemplated by this Agreement, including the Merger, based upon arrangements made by or on behalf of Parent or Merger Sub.

5.8 <u>Ownership of Company Capital Stock</u>. None of Parent, Merger Sub or any other Affiliate or Subsidiary of Parent beneficially owns (as such term is used in Rule 13d-3 promulgated under the Exchange Act) any Company Common Shares or Company Preferred Shares or is party to any derivative or hedging arrangement, short position, borrowing or lending of Company Common Shares or Company Preferred Shares or other Contract or understanding, the effect or intent of which is to mitigate loss to, or to manage the risk or benefit from, share price changes for, or to increase or decrease the voting power of, Parent, Merger Sub or any other Affiliate of Parent, in each case, with respect to Company Common Shares or Company Preferred Shares. None of Parent, Merger Sub or any Affiliate is, or at any time during the last three years has been, an "interested stockholder" of the Company (as defined in Section 203 of the DGCL).

5.9 <u>Ownership of Merger Sub</u>. All of the outstanding Equity Interests of Merger Sub have been duly authorized and validly issued and are wholly owned by Parent. Merger Sub was formed solely for purposes the Merger, the Offer, and the transactions contemplated by this Agreement, and, except for matters incidental to formation and execution and delivery of this Agreement and the performance of the transactions contemplated hereby, Merger Sub has not prior to the date hereof engaged in (and will not prior to the Effective Time engage in) any business or other activities other than those contemplated by this Agreement.

5.10 <u>Solvency</u>. Neither Parent nor Merger Sub is entering into this Agreement with the intent to hinder, delay or defraud either present or future creditors. Assuming (a) that the conditions to the obligations of Parent and Merger Sub to consummate the Offer and the Merger have been satisfied or waived and (b) the accuracy in all material respects of the representations and warranties set forth in <u>Article</u> <u>4</u>, and after giving effect to the transactions contemplated by this Agreement and the payment of all amounts required to be paid in connection with the consummation of the transactions contemplated by this Agreement, including the aggregate Offer Price and Merger Consideration, any repayment or refinancing of debt contemplated in this Agreement and payment of all related fees and expenses of Parent and Merger Sub, the Surviving Corporation will be Solvent as of immediately after the consummation of the transactions contemplated by this Agreement. For purposes of this <u>Section 5.10,</u> the term "<u>Solvent</u>" with respect to the Surviving Corporation means that, as of any date of determination, (a) the amount of the fair value of the assets of the Surviving Corporation and its Subsidiaries, taken as a whole, at a fair valuation, exceeds, as of such date, the value of all liabilities of the Surviving Corporation and its

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Subsidiaries, taken as a whole, including contingent and other liabilities, as of such date, as such quoted terms are generally determined in accordance with the applicable Laws governing determinations of the solvency of debtors; (b) the present fair saleable value of the assets of the Surviving Corporation and its Subsidiaries, taken as a whole, exceeds, as of such date, the value of all probable liabilities of the Surviving Corporation and its Subsidiaries, taken as a whole, including contingent and other liabilities, as such debts and other liabilities become absolute and matured; (c) the Surviving Corporation will not have, as of such date, an unreasonably small amount of capital for the operation of the business in which it is engaged or proposed to be engaged by Parent following such date; and (d) the Surviving Corporation will be able to pay its liabilities, including contingent and other liabilities, as they mature.

5.11 <u>Absence of Certain Arrangements</u>. As of the date of this Agreement, other than this Agreement and the Tender and Support Agreements, neither Parent or Merger Sub nor any of their respective Affiliates is a party to any Contract, or has authorized, made or entered into or committed or agreed to enter into, any formal or informal arrangements or other understandings (whether or not binding) with any stockholder, director, officer, employee or other Affiliate of the Company or any of its Subsidiaries (a) relating to (i) this Agreement, the Merger or the Offer or (ii) the Surviving Corporation or any of its Subsidiaries, businesses or operations (including as to continuing employment) from and after the Effective Time; or (b) pursuant to which any (i) such holder of Company Common Shares would be entitled to receive consideration of a different amount nature than the Offer Price or Merger Consideration in respect of such holder's Company Common Shares, (ii) such holder of Company Common Shares has agreed to tender its Company Common Shares in the Offer or vote against any Superior Company Proposal or (iii) such stockholder, director, officer, employee or other Affiliate of the Company has agreed to provide, directly or indirectly, equity investment to Parent, Merger Sub or the Company to finance any portion of the Merger.

5.12 <u>Financing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the date of this Agreement, Parent has provided to the Company true, correct and complete copies, dated as of the date of this Agreement, of (i) the Equity Commitment Letters from the Investors, pursuant to which the Investors have, severally (and not jointly) committed to provide, subject only to the terms and conditions contained therein, funds equal to the applicable portion of the Required Amount set forth therein (the "<u>Equity Financing</u>"), and (ii) the Debt Commitment Letter from the Debt Financing Sources party thereto (together with the Equity Commitment Letters, the "<u>Financing Letters</u>") pursuant to which such Debt Financing Sources have committed to provide, subject only to the terms and conditions therein, the applicable portion of the Required Amount set forth therein, which amounts together with the amounts contemplated by the Equity Commitment Letters shall equal the Required Amount (the debt financing contemplated by the Debt Commitment Letter being collectively referred to as the "<u>Debt Financing</u>"; and, together with the Equity Financing, the "<u>Financing</u>"). As of the date of this Agreement, there are no other side letters or agreements to which Parent or Merger Sub is a party relating to the Financing, other than as expressly set forth in the Financing Letters. As of the date of this Agreement, (A) each Financing Letter, in the form provided to the Company, (i) is in full force and effect, (ii) has not been amended, withdrawn, supplemented, terminated, rescinded or modified (and no waiver of any provision thereof has been granted) and, to the Knowledge of Parent or Merger Sub, as applicable, no such amendment, withdrawal, supplement, termination,

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rescission or modification is contemplated, and (iii) is a legal, valid and binding obligation of each of Parent, Merger Sub, the Investors and, to the Knowledge of Parent, the applicable Debt Financing Sources, as applicable, is in full force and effect, and is enforceable in accordance with the terms thereof against Parent, Merger Sub, the Investors and, to the Knowledge of Parent, the applicable Debt Financing Sources, subject, in each case, to the Enforceability Exceptions. As of the date of this Agreement, no event has occurred which would reasonably be expected to result in any breach of or constitute a default under (or an event which with notice or lapse of time or both would result in any breach of or constitute a default under) or reasonably be expected to result in a failure to satisfy a condition precedent, in each case, on the part of Parent, Merger Sub, the Investors and the applicable Debt Financing Sources, as applicable, or would reasonably be expected to permit any party to such Financing Letter to terminate, or to not make the initial funding in an amount required to satisfy the applicable portion of the Required Amount under such Financing Letter. As of the date of this Agreement, assuming the conditions set forth in <u>Annex A</u> and <u>Article 7</u> have been satisfied (other than those conditions that by their terms are to be satisfied as of immediately prior to the Expiration Time or the Closing, as applicable, but subject to such conditions being able to be satisfied) or waived by the Closing, neither Parent nor Merger Sub believes, to their reasonable understanding, that any of the conditions to the Debt Financing will not be satisfied or that (subject to the satisfaction of such conditions) the full amount of the Debt Financing contemplated by the Debt Commitment Letter to be funded pursuant to the terms thereof will not be available to Parent or Merger Sub so as to enable Parent or Merger Sub to comply with their respective obligations pursuant to <u>Section 1. 1(e)</u>, <u>Section 3.2</u> and <u>Section 3.4</u>. Each of Parent and Merger Sub, as applicable, has fully paid, or caused to be fully paid, any and all commitment fees or other fees to the extent required to be paid on or prior to the date hereof in connection with the Financing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Parent and Merger Sub's cash on hand plus the aggregate proceeds contemplated by the Financing Letters, taken together, will be sufficient for Parent and Merger Sub to pay the amounts due from Parent or Merger Sub to consummate the transactions contemplated by this Agreement, including (i) paying the aggregate Offer Price and Merger Consideration and any other amounts required to be paid by Parent or Merger Sub in connection with the consummation of the transactions contemplated hereby (whether payable before, at or after the Closing Date, and including any fees and expenses of or payable by Parent or Merger Sub on the Closing Date in connection with the transactions contemplated hereby) (such amount, the "<u>Required Amount</u>"); (ii) paying all related reasonable and documented fees, costs and expenses incurred by Parent and Merger Sub in connection with the transactions contemplated hereby; and (iii) satisfying all of their other respective obligations under this Agreement and any ancillary document or agreement delivered in connection herewith or therewith ((i), (ii) and (iii), collectively, the "<u>Financing Purposes</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As of the date of this Agreement, each Financing Letter contains all of the conditions precedent to the obligations of the Investors and the applicable Debt Financing Sources to make the applicable portion of the Required Amount available to Parent and Merger Sub on the terms set forth therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Equity Commitment Letters provide, and will continue to provide, that the Company is an express third-party beneficiary of such Equity Commitment Letters, and the Company is (on its own behalf and on behalf of the Company Stockholders) entitled to enforce, directly or indirectly, such Equity Commitment Letters in accordance with their terms against the Investors.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Parent and Merger Sub each acknowledge and agree that Parent and Merger Sub's obligation to consummate the transactions contemplated by this Agreement is not in any way contingent upon or otherwise subject to Parent and Merger Sub's consummation of any financing arrangements (including the Equity Financing or the Debt Financing), Parent and Merger Sub's obtaining of any financing or the availability, grant, provision or extension of any financing to Parent and Merger Sub.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Concurrently with the execution of this Agreement, Parent has delivered to the Company a true, correct and complete copy of the duly executed limited guarantee of the Guarantor, dated as of the date of this Agreement, in favor of the Company in respect of Parent's obligations to pay the Parent Termination Fee and Parent's and Merger Sub's other payment or reimbursement obligations specified therein, up to the aggregate amount specified therein (the "<u>Limited Guarantee</u>"). The Limited Guarantee is (a) a legal, valid and binding obligation of the Guarantor, (b) enforceable against the Guarantor in accordance with its terms, and (c) in full force and effect. As of the date hereof, no event has occurred which, with or without notice, lapse of time or both, would or would reasonably be expected to constitute a default or breach on the part of the Guarantor under the Limited Guarantee.

5.13 <u>No Other Representations or Warranties</u>. Except for the representations and warranties contained in this <u>Article</u> <u>5</u>, none of Parent, Merger Sub or any of their respective Representatives or Affiliates or any other Person on behalf of such Persons makes any express or implied representation or warranty with respect to them or with respect to any other information provided to the Company in connection with the transactions contemplated hereby. Parent and Merger Sub (on their own behalf and on behalf of their respective Affiliates and each of their respective Representatives) each acknowledges and agrees that, except for the representations and warranties expressly set forth in <u>Article 4</u> of this Agreement (as qualified by the Company Disclosure Schedule), (a) neither the Company, its Subsidiaries nor any of their respective Affiliates or Representatives makes, or has made, any representations or warranties relating to itself or its business or otherwise in connection with the Merger or the Offer, the other matters contemplated by this Agreement and the entry into this Agreement by the parties hereto, and none of Parent, Merger Sub, their Affiliates and their respective Representatives are relying on or has relied on any representation or warranty of the Company or any of its Subsidiaries except for those expressly set forth in <u>Article 4</u> of this Agreement; (b) no Person has been authorized by the Company or any of its Subsidiaries to make any representation or warranty relating to the Company or any of its Subsidiaries or their businesses or otherwise in connection with the Merger or the Offer, and if made, such representation or warranty must not be relied upon by Parent or Merger Sub as having been authorized by such party; and (c) any estimates, projections, predictions, data, financial information, memoranda, presentations or any other materials or information provided, addressed or otherwise made available to Parent, Merger Sub or any of their Representatives are not and shall not be deemed to be or include representations or warranties of the Company or any of its Subsidiaries (and no such representation or warranty has been made or relied on with respect thereto) unless and only to the extent any such materials or information is the subject of any express representation or warranty set forth in <u>Article 4</u> of this Agreement (as qualified by the Company Disclosure Schedule).

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**ARTICLE 6** 

**COVENANTS** 

6.1 <u>Conduct of Business by the Company and Parent Pending the Closing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company agrees that, between the date of this Agreement and the earlier of the Effective Time and the valid termination of this Agreement in accordance with <u>Article 8,</u> except as set forth in <u>Section 6.1(a)</u> of the Company Disclosure Schedule, as required by applicable Law or as expressly required by this Agreement, or otherwise with the prior written consent of Parent, the Company will, and will cause each Company Subsidiary to, (1) conduct its operations in all material respects in the ordinary course of business, consistent with past practice; (2) use its commercially reasonable efforts to maintain and preserve substantially intact its business organization; (3) use its commercially reasonable efforts to preserve its relationships with key employees, customers, suppliers, vendors, contractors, lessors, lessees and others having significant business dealings with the Company or any of the Company Subsidiaries and (4) comply in all material respects with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, except (x) as set forth in <u>Section 6.1(b)</u> of the Company Disclosure Schedule, (y) as required or prohibited by applicable Law or (z) as expressly required by this Agreement, or otherwise with the prior written consent of Parent, the Company shall not, and shall not permit any Company Subsidiary to, between the date of this Agreement and the earlier of the Effective Time and the valid termination of this Agreement in accordance with <u>Article 8:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) amend, modify, waive, rescind or otherwise change the Company Charter or the Company Bylaws or the comparable organizational and governance documents of any Company Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) issue, sell, pledge, split, dispose of, grant, transfer or encumber any shares of capital stock of, or other Equity Interests in, the Company or any Company Subsidiary, or any rights based on the value of any such Equity Interests (except for transactions between the Company and any wholly owned Company Subsidiaries or between wholly owned Company Subsidiaries), other than the vesting or settlement of Company Equity Awards outstanding as of the date hereof or granted after the date hereof and not in violation of this Agreement, in each case, in accordance with the terms of the applicable Company Equity Plan and award agreements thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) except in the ordinary course of business consistent with past practice, directly or indirectly, sell, lease, license, sell and leaseback, abandon, mortgage or otherwise encumber or dispose of or subject to any Lien (other than any Permitted Lien or any Lien of the type contemplated pursuant to <u>Section 6.1(b)(ix)(A)(ii)</u>) in whole or in part any of its properties, assets (other than any Intellectual Property) or rights or any interest therein (in each case, other than for any sale, lease, license, sale and leaseback, abandonment (other than with respect to terminations of Mineral Interests based on the expiration thereof without any affirmative action by the Company or any Affiliates of Company), mortgage or other encumbrance or disposal that would be immaterial to the Company); <u>provided</u>, that the foregoing does not restrict (A) any such transaction between or among the Company and any wholly owned Company Subsidiaries (or between or among any such Subsidiaries), or (B) any such transaction pursuant to requirements of Contracts of the Company or any of its Subsidiaries that are in existence of the date hereof and on the terms in effect on the date hereof that have been made available to Parent;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) sell, lease, license, sublicense, assign, transfer, abandon, allow to lapse or expire, or otherwise dispose of, or grant a third Person any rights under or with respect to, any Company Intellectual Property (other than non-exclusive licenses granted to customers in the ordinary course of business or with respect to immaterial or obsolete Intellectual Property) or disclose any material Trade Secrets of the Company or any Company Subsidiary to any other Person (other than in the ordinary course of business to a Person bound by adequate confidentiality obligations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) authorize, declare, set aside, make or pay any dividend or other distribution (whether payable in cash, stock, property or a combination thereof) with respect to any of its capital stock or other Equity Interests (other than dividends paid by a wholly owned Company Subsidiary to the Company or another wholly owned Company Subsidiary), other than regular quarterly cash dividends with customary record and payment dates on the Company Common Shares not in excess of $0.04 per Company Common Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) reclassify, combine, split, subdivide or make any similar change or amend the terms of, or redeem, purchase or otherwise acquire, directly or indirectly, any of the Company's capital stock or other Equity Interests or the Equity Interests of any Company Subsidiary, except (A) the withholding or disposition of Company Common Shares to satisfy withholding Tax obligations with respect to Company Equity Awards in accordance with the terms of the applicable Company Equity Plan and the award agreements evidencing such Company Equity Awards, (B) upon the forfeiture of outstanding Company Equity Awards or (C) cash dividends paid to the Company or any wholly owned Company Subsidiaries by a wholly owned Company Subsidiary with regard to its capital stock or other Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) merge, amalgamate or consolidate the Company or any Company Subsidiary with any Person or adopt a plan of complete or partial liquidation or resolutions providing for a complete or partial liquidation, dissolution, restructuring, recapitalization or other reorganization of the Company or any Company Subsidiary, other than transactions solely between or among any such Company Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) acquire (including by merger, amalgamation, consolidation or acquisition of stock or assets) any Equity Interest in any Person or the assets of any Person or business, or make any loan, advance or capital contribution to, or investment in, any Person or business in each case in an amount in excess of $100,000 in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) (A) incur any Indebtedness or issue any debt securities or assume or guarantee the obligations in respect of Indebtedness for borrowed money or debt securities of any Person or enter into any "keep well" or other agreement to maintain any financial statement condition of another Person, except for (i) transactions solely between the Company and any wholly owned Company Subsidiary or between wholly owned Company Subsidiaries or (ii) letters of credit that are cash collateralized solely by the Company Credit Facility in an amount not to exceed $500,000 in the aggregate, surety bonds and similar instruments issued in the ordinary

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course of the Company's business consistent with past practice, including the pledging of cash or other security as may be required by the issuer in connection therewith, (B) incur any Indebtedness or issue any letters of credit under the Company Credit Facility or (C) make any loans or capital contributions to, or investments in, any other Person, other than to any wholly owned Company Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) (A) enter into any Contract (other than a Benefit Plan or a Contract that would be a Benefit Plan if in effect on the date of this Agreement) that includes a change of control or similar provision that would require any payment in an amount in excess of $50,000 to or would give rise to any material rights (including termination rights) of the other party or parties thereto as a result of the consummation of the Merger or the other transactions contemplated by this Agreement or that would reasonably be expected to require any payment in excess of $50,000 to or would give rise to any material rights (including termination rights) of the other party or parties if a change of control of Parent were to occur immediately following consummation of the Merger; (B) enter into any Contract that would have been a Company Material Contract or a Company Real Property Lease if in effect as of the date hereof, other than in the ordinary course of business, or (C) modify or amend in a manner adverse to the Company, cancel or terminate or waive, release or assign any rights or claims with respect to, any Company Material Contract or Company Real Property Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) except as required by any Benefit Plan as in effect on the date of this Agreement, (A) increase the compensation or benefits of any Company Employee whose annual base salary or wage rate exceeds $150,000, except for increases in annual salary or wage rate in the ordinary course of business consistent with past practice for Company Employees who are not executive officers that do not exceed 3% individually or 5% in the aggregate; (B) adopt or provide any new rights to severance, change of control, retention or termination pay to any Company Employee; (C) establish, adopt, enter into, amend in any material respect or terminate any Benefit Plan or any Labor Agreement; (D) grant any Company Equity Awards, or amend or modify the terms of any outstanding awards under any Company Equity Plan; (E) take any action to amend or waive any performance or vesting criteria or accelerate the vesting, lapse of restrictions, payment, exercisability or funding under any Benefit Plan; or (F) hire or terminate (other than for cause or due to death or disability) any Company Employee or independent contractor (who is a natural Person) whose annual base salary or wage rate exceeds $150,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) make any material change in financial accounting policies, practices, principles, methods or procedures, other than as required by GAAP or Regulation S-X promulgated under the Exchange Act or other applicable rules and regulations of the SEC or Law including any interpretations thereof or any changes to any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) (A) make, revoke or change any material Tax election or adopt or change any material method of Tax accounting; (B) file any material amended Tax Return; (C) settle or compromise any claim relating to a material amount of Taxes of the Company or any Company Subsidiary; (D) agree to an extension or waiver of the statute of limitations with respect to any claim or assessment with respect to material Taxes (other than such extension that arises solely as a result of an extension of time to file a Tax Return obtained in the ordinary course of business); (E) enter into any "closing agreement" within the meaning of in Section 7121 of the Code (or any analogous provision of state, local or foreign Law), Tax allocation agreement or Tax sharing agreement (other than any commercial agreement entered into in the ordinary course of business that does not related primarily to Taxes) relating to a material amount of Taxes; or (F) surrender any right to claim a refund, offset, credit, or other reduction in a material Tax liability;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) waive, release, assign, settle or compromise any claims, liabilities or obligations arising out of, related to or in connection with litigation (other than litigation arising in connection with this Agreement or the transactions contemplated hereby, which is governed by <u>Section 6.11</u>) or other Proceedings other than settlements of, or compromises for, any such litigation or other Proceedings (A) funded, subject to payment of a deductible or self-insured retention not to exceed $250,000, solely by insurance coverage maintained by the Company or the Company Subsidiaries or (B) for less than $500,000 (net of any insurance coverage maintained by the Company or the Company Subsidiaries) in the aggregate, in each case that would not grant any material injunctive or equitable relief or impose any material restrictions or changes on the business or operations of the Company or any Company Subsidiary and without any admission of wrongdoing or liability on the Company or Parent or any of their respective Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) make any capital expenditures in excess of $50,000 in the aggregate per fiscal quarter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) enter into any Contract or transaction between the Company or any of its Subsidiaries, on the one hand, and any Affiliate or director or officer of the Company on the other hand, or enter into any other Contract or transaction with any other Person, in each case, that would be required to be reported by the Company pursuant to Item 404 of Regulation S-K under the Exchange Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) make any loans, advances or capital contributions (other than advances in the ordinary course of business consistent with past practice for travel and other normal business expenses or any advancement of expenses under the Company Charter or Company Bylaws or equivalent governing documents of any Company Subsidiary) to stockholders, directors, officers or employees of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) commence any new line of business in which it is not engaged on the date of this Agreement or discontinue any existing line of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) fail to maintain, cancel or materially change coverage under, in a manner materially detrimental to the Company or any of the Company Subsidiaries, any Insurance Policy maintained with respect to the Company and the Company Subsidiaries and their assets and properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) enter into, adopt or authorize the adoption of any stockholder rights agreement, "poison pill" or similar antitakeover agreement or plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) enter into any Contract or arrangement that would have been a Company Advisor Agreement if in effect as of the date hereof or amend any of the Company Advisor Agreements in a manner that would result in the total fees owed thereunder by the Company being increased; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) authorize, agree or commit, in writing or otherwise, to do any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Company or any of its Subsidiaries desires to take an action that would be prohibited pursuant to the foregoing <u>Section 6.1(a)</u> or (b) without the written consent of Parent, prior to taking such action, the Company may request such written consent by sending a written request to the representative of Parent listed on <u>Section 6.1(c)</u> of the Company Disclosure Schedule.

6.2 <u>Access to Information; Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From the date of this Agreement to the earlier of the Effective Time and the termination of this Agreement in accordance with <u>Article</u> <u>8</u>, the Company shall, and shall cause the Company Subsidiaries to (i) provide to Parent and Merger Sub and their respective Representatives reasonable access, during normal business hours in such a manner as not to interfere unreasonably with the operation of any business conducted by the Company and the Company Subsidiaries, and upon reasonable prior written notice to the Company, to the officers, employees, properties, Company Permits, offices and other facilities of the Company and the Company Subsidiaries and to the books and records thereof and (ii) use reasonable best efforts to furnish to Parent and Merger Sub and their respective Representatives, during normal business hours upon prior reasonable notice such information concerning the business, properties, Contracts, Company Permits, personnel, books and records (including Tax records), assets and liabilities of the Company and the Company Subsidiaries as Parent or Parent's Representatives may reasonably request; <u>provided</u> that the Company shall not be required to (or to cause any Company Subsidiary to) afford such access or furnish such information to the extent that the Company believes, in its reasonable good faith judgment, that doing so would (A) result in the loss of attorney-client, work product or other privilege, (B) result in the disclosure of any Trade Secrets of Third Parties or violate any obligations of the Company or any Company Subsidiary with respect to confidentiality to any Third Party, or otherwise breach, contravene or violate any such effective Contract to which the Company or any Company Subsidiary is a party, or (C) violate any applicable Law (including Competition Laws); <u>provided</u>, that the Company shall give notice to Parent of the fact that it is withholding such information or documents and thereafter the Company shall reasonably cooperate with Parent to, and use its reasonable best efforts to, cause such information (or portions of such information) to be provided in a manner that would not violate the foregoing. Any access to the properties of the Company or any of its Subsidiaries or investigations conducted by Parent or Merger Sub pursuant to this <u>Section 6.2</u> (1) shall be conducted in a manner that does not unreasonably interfere with the conduct of the business of the Company or any Company Subsidiaries or create a reasonably likely risk of damage or destruction to any property or assets of the Company or any Company Subsidiaries, (2) shall be subject to the Company's reasonable security measures and insurance requirements, and (3) shall not include the right to perform invasive testing without the Company's prior written consent, in its sole discretion. Nothing in this <u>Section 6.2</u> shall be construed to require the Company, any of its Subsidiaries or any Representatives of any of the foregoing to prepare any reports, analyses, appraisals or opinions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of Parent and Merger Sub hereby agrees that all information provided to it or any of their Representatives in connection with this Agreement and the consummation of the transactions contemplated hereby shall be deemed to be "Confidential Information," as such term is used in, and shall be treated in accordance with, the confidentiality agreement, dated as of January 23, 2025 between the Company and WhiteHawk – Equity Holdings, LP (the "<u>Confidentiality Agreement</u>").

6.3 <u>No Solicitation by the Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the other provisions of this <u>Section 6.3</u>, from and after the date hereof until the Effective Time or, if earlier, the termination of this Agreement pursuant to <u>Article</u> <u>8</u>, and except as otherwise expressly permitted by this Agreement, the Company, the Company Subsidiaries, their respective directors and officers, and the Company's financial advisors shall not, and shall cause their other Representatives (acting on behalf of the Company or the Company Subsidiaries, as applicable) not to, directly or indirectly, (i) initiate, solicit, knowingly facilitate or knowingly encourage any inquiries, proposal or offer that constitutes a Company Acquisition Proposal or that could be reasonably expected to lead to a Company Acquisition Proposal or enter into, continue or otherwise participate or engage in any discussions or negotiations with respect thereto (including by furnishing any non-public information relating to the Company or the Company Subsidiaries); (ii) approve, endorse or recommend, or publicly propose to approve, endorse or recommend, any Company Acquisition Proposal; (iii) enter into any agreement in principle, merger agreement, acquisition agreement, letter of intent or other similar agreement or arrangement relating to any Company Acquisition Proposal; or (iv) authorize any of, or commit, resolve or agree to do any of the foregoing. Subject to the other provisions of this <u>Section 6.3</u>, promptly (and in any event within 24 hours) following the execution of this Agreement, the Company shall, and shall cause the Company Subsidiaries and the Company's Representatives (on behalf of the Company or the Company Subsidiaries) to, (A) cease any discussion or negotiation with any Persons (other than Parent and its Affiliates and Representatives on its behalf) by the Company, the Company Subsidiaries or any of the Company's Representatives with respect to any Company Acquisition Proposal, and (B) terminate access by any Third Party to any physical or electronic data room maintained by or on behalf of the Company and use their respective reasonable best efforts to cause any such Third Party (or its agents or advisors) in possession of non-public information in respect of the Company or any of the Company Subsidiaries that was furnished by or on behalf of the Company and the Company Subsidiaries to return or destroy (and confirm destruction of) all such information. Notwithstanding anything to the contrary contained in this <u>Section 6.3(a),</u> the Company and the Company's Representatives may inform any Third Party that has made a Company Acquisition Proposal or an inquiry, proposal or offer that could reasonably be expected to lead to a Company Acquisition Proposal of the provisions of this <u>Section</u> 6.3. Without limiting the foregoing, it is understood that any action taken by any Company Subsidiary or any of the Company's Representatives that would constitute a breach of this <u>Section 6.3</u> if taken by the Company, shall constitute a breach by the Company of this <u>Section 6.3.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary contained in <u>Section 6.3(a),</u> if, at any time following the date hereof and prior to the Effective Time, (i) the Company receives a bona fide written Company Acquisition Proposal from a Third Party, which Company Acquisition Proposal was made or renewed on or after the date of this Agreement that did not result from a breach (other than a *de minimis* breach) of the obligations set forth in <u>Section 6.3(a)</u> and (ii) the Company Board determines in good faith, after consultation with its financial advisors and outside counsel, that such Company Acquisition Proposal constitutes or could reasonably be expected to lead to a

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Superior Company Proposal and that failure to take the following action would be inconsistent with the directors' fiduciary duties under applicable Law, then the Company may enter into an Acceptable Confidentiality Agreement with and, following entry into such Acceptable Confidentiality Agreement and providing such Acceptable Confidentiality Agreement to Parent, (A) furnish information with respect to the Company and the Company Subsidiaries (including nonpublic information) to the Third Party making such Company Acquisition Proposal or its Representatives, and (B) participate in discussions or negotiations with such Third Party making such Company Acquisition Proposal and its Representatives regarding such Company Acquisition Proposal (subject to the notification and other requirements of <u>Section 6.3(c)</u>); <u>provided</u> that the Company shall provide to Parent any nonpublic information concerning the Company or the Company Subsidiaries provided or made available to such other Person that was not previously provided or made available to Parent concurrently with the provision of such information to such other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall promptly (and in any event within 24 hours after receipt by the Company) notify Parent in writing in the event that the Company receives any Company Acquisition Proposal or inquiry, proposal or offer that could be reasonably expected to lead to a Company Acquisition Proposal, which notice shall include the material terms and conditions of such Company Acquisition Proposal, inquiry, proposal or offer, including the identity of the counterparty and copies of any material documentation and other written materials (or, where such Company Acquisition Proposal, inquiry, proposal or offer is not in writing, a summary of the material terms and conditions of such Company Acquisition Proposal, inquiry, proposal or offer). Thereafter, the Company shall keep Parent informed on a prompt basis of the status and material details (including amendments or proposed amendments) of any such Company Acquisition Proposal, inquiry, proposal or offer (including providing copies of any written documentation material relating to such Company Acquisition Proposal, inquiry, proposal or offer, including relating to the financing thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company Board shall not effect a Company Change of Board Recommendation except as provided in <u>Section 6.3(e)</u> or <u>Section 6.3(f)</u> (or, in the case <u>Section</u> <u>6.3(e)</u>, terminate this Agreement pursuant to <u>Section 8.1(e)</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary contained in <u>Section 6.3(a),</u> if (i) the Company has received a bona fide written Company Acquisition Proposal that has not been withdrawn and did not result from a breach (other than a *de minimis* breach) of the obligations set forth in <u>Section 6.3</u>, (ii) the Company Board determines in good faith, after consultation with outside counsel and its financial advisors, (A) that such Company Acquisition Proposal constitutes a Superior Company Proposal and (B) in light of such Superior Company Proposal, and absent any further revisions to the terms and conditions of this Agreement, that the failure to take the actions set forth in clauses (x) or (y) below would be inconsistent with the directors' fiduciary duties under applicable Law, (iii) the Company shall have provided (the "<u>Company Notice</u>") to Parent at least five Business Days' prior written notice (such period, the "<u>Company Notice Period</u>") of the Company's intention to take such action, which Company Notice shall specify the material terms and conditions of such Company Acquisition Proposal (and include a copy of the most current proposed transaction agreement to be entered into in respect of such Company Acquisition Proposal) and state that the Company Board has determined in good faith, after consultation with its financial advisors and outside counsel, that failure to take the actions set forth

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in clauses (x) or (y) below would be inconsistent with the directors' fiduciary duties under applicable Law, and that the Company Board intends to effect a Company Change of Board Recommendation or, if applicable, terminate this Agreement pursuant to <u>Section 8.1(e)</u> absent revisions to the terms and conditions of this Agreement that would cause such Company Acquisition Proposal to cease to constitute a Superior Company Proposal; (iv) during the Company Notice Period, if requested by Parent, the Company shall have, and shall have caused its legal and financial advisors to, engaged or engage, as applicable, in good faith negotiations with Parent regarding any adjustment or amendment to this Agreement or any other agreement proposed in writing by Parent with the objective of causing such Company Acquisition Proposal to cease to constitute a Superior Company Proposal (it being understood that any material revision to the terms of a Superior Company Proposal, including any revision in price, shall cause the Company Notice Period to be extended to ensure that at least three Business Days remain in the Company Notice Period subsequent to the time the Company notifies Parent of any such material revision, and that the Company Notice Period may be extended multiple times) (for the avoidance of doubt, the intent and purpose of such negotiations is to amend this Agreement in such a manner that obviates the need for the actions set forth in clauses (x) or (y) below), (v) the Company Board has considered in good faith any revisions to the terms of this Agreement proposed by Parent as a result of the negotiations required by <u>clause (iv)</u> or otherwise; and (vi) at the end of the Company Notice Period, such Company Acquisition Proposal has not been withdrawn, and the Company Board reaffirms in good faith after consultation with its financial advisors and outside counsel that such Company Acquisition Proposal continues to constitute a Superior Company Proposal (taking into account any changes to this Agreement proposed by Parent as a result of the negotiations required by <u>clause (iv)</u> or otherwise) such that the Company Board's failure to take the actions set forth in clauses (x) or (y) below would be inconsistent with the directors' fiduciary duties under applicable Law, the Company Board may at any time prior to the Acceptance Time, (x) effect a Company Change of Board Recommendation with respect to such Superior Company Proposal or (y) terminate this Agreement to concurrently enter into a definitive agreement with respect to such Superior Company Proposal in accordance with <u>Section 8.1(e)</u>, and, in the case of clause (y), <u>provided</u>, that the Company pays, or causes to be paid, to Parent the Company Termination Fee payable pursuant to <u>Section 8.3(a)</u> prior to or concurrently with such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything to the contrary contained in <u>Section 6.3(a)</u>, the Company Board may, at any time prior to the Acceptance Time, effect a Company Change of Board Recommendation in response to a Company Intervening Event if (i) the Company has provided to Parent written notice, at least five Business Days prior to any meeting of the Company Board at which the Company Board will consider whether such Company Intervening Event requires the Company Board to take such action, specifying the date and time of such meeting and the reasons for holding such meeting, including a reasonably detailed description of facts relating to the underlying Company Intervening Event; (ii) the Company Board has determined in good faith, after consultation with its financial advisors and outside counsel, that the failure to effect a Company Change of Board Recommendation absent any revision to the terms and conditions of this Agreement would be inconsistent with the directors' fiduciary duties under applicable Law; (iii) following such meeting, the Company provides to Parent written notice (a "<u>Notice of Intervening Event</u>") to the effect that the Company Board has determined in good faith, after consultation with its financial advisors and outside counsel, that the Company Board proposes to effect a Company Change of Board Recommendation absent any revision to the terms and conditions of this Agreement; (iv) during the period from the time the Notice of Intervening Event

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is provided until the end of the fifth Business Day thereafter (such period, the "<u>Notice of Intervening Event Period</u>") (it being understood and agreed that each material development with respect to a Company Intervening Event shall cause the Notice of Intervening Event period to be extended to ensure that at least three Business Days remain in the Notice of Intervening Event Period subsequent to the time the Company notifies Parent of any such material development, and that the Notice of Intervening Event Period may be extended multiple times), if requested by Parent, the Company shall have, and shall have caused its legal and financial advisors to, engaged or engage, as applicable, in good faith negotiations with Parent regarding any amendments to this Agreement proposed by Parent (for the avoidance of doubt, the intent and purpose of such negotiations is to amend this Agreement in such a manner that obviates the need for such Company Change of Board Recommendation); (v) the Company Board has considered in good faith any revisions to the terms of this Agreement proposed by Parent as a result of the negotiations required by <u>clause (iv)</u> or otherwise and (vi) the Company Board has determined in good faith (taking into account any changes to the terms of this Agreement proposed by Parent as a result of the negotiations required by <u>clause (iv)</u> or otherwise), after consultation with its financial advisors and outside counsel, that the failure to make a Company Change of Board Recommendation in response to such Company Intervening Event would be inconsistent with the directors' fiduciary duties under applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Nothing contained in this Agreement shall prohibit the Company or the Company Board from (i) taking and disclosing to the stockholders of the Company a position contemplated by Rule 14e-2(a) promulgated under the Exchange Act, and complying with Rule 14d-9 promulgated under the Exchange Act and Item 1012(a) of Regulation M-A promulgated under the Exchange Act; (ii) making any legally required disclosure to the Company Stockholders or (iii) making a "stop, look and listen" statement (or substantially similar communication) pending disclosure of its position, as contemplated by Rules 14d-9 and 14e-2(a) promulgated under the Exchange Act, <u>provided</u>, that such statement will constitute a Company Change of Board Recommendation if the Company Board fails to expressly and publicly reaffirm the Company Board Recommendation in such disclosure or communication.

6.4 <u>Efforts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Company, Parent and Merger Sub shall use its respective reasonable best efforts to, subject to the terms and conditions of this <u>Section 6.4,</u> (i) take, or cause to be taken, all appropriate action and do, or cause to be done, and to assist and cooperate with the other parties hereto in doing, all things necessary, proper or advisable under applicable Law or otherwise to consummate and make effective the Merger, the Offer and the other transactions contemplated by this Agreement as promptly as practicable; (ii) take all such actions (if any) as may be required to cause the expiration of the notice periods under Competition Laws with respect to such transactions as promptly as practicable after the execution of this Agreement; (iii) (I) obtain as promptly as practicable (A) from any Governmental Entity any and all consents, notices, licenses, permits, waivers, approvals, authorizations, orders, registrations, rulings and clearances required to be obtained by Parent, Merger Sub or the Company, or any of their respective Subsidiaries, to effect the Closing as promptly as practicable, and in any event not later than three Business Days prior to the Outside Date, and to avoid any action or proceeding by any Governmental Entity or any other Person, in connection with the authorization, execution and delivery of this Agreement and the consummation of the transactions contemplated hereby, including the Merger and the

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Offer, and (B) from any Third Party any and all consents, notices, licenses, permits, waivers, approvals, authorizations and registrations that are required to be obtained or made by Parent, Merger Sub or the Company, or any of their respective Subsidiaries, in connection with the transactions contemplated by this Agreement, and in the case of this clause (B), only to the extent that Parent, Merger Sub and the Company reasonably determine, after consultation and cooperation with one another, that such consent or notice should be obtained or made; and (II) prepare and file as promptly as practicable all documentation to effect all necessary applications, notices, petitions, filings, ruling requests, and other documents necessary to obtain the consents, approvals and other deliverables set forth in clauses (A) and (B) above, and take all reasonable steps as may be necessary to obtain all such consents, approvals and other deliverables; (iv) cause the satisfaction of all conditions to the Offer set forth in <u>Annex A</u> and cause the satisfaction of all conditions to the Merger set forth in <u>Article</u> <u>7</u>, in each case, within its control; and (v) as promptly as reasonably practicable after the date hereof, make all necessary filings, and thereafter make any other required submissions, and pay any fees due in connection therewith, with respect to this Agreement, the Merger and the Offer required under any other applicable Law, provided that all filing fees related to the filings by the parties hereto under any Competition Laws, if any, shall borne by Parent. Notwithstanding anything to the contrary herein, the Company shall not be required prior to the Effective Time to pay any consent or other similar fee, "profit-sharing" or other similar payment or other consideration (including increased rent or other similar payments or any amendments, supplements or other modifications to (or waivers of) the existing terms of any Contract), or the provision of additional security (including a guaranty) or otherwise incur or assume or agree to incur or assume any liability that is not conditioned upon the consummation of the Merger, to obtain any consent, waiver or approval of any Person (including any Governmental Entity) under any Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything in the Agreement to the contrary, it is expressly understood and agreed that none of Parent, Merger Sub nor any of their respective Affiliates, including Guarantor, shall be under any obligation to do any of the following: (A) sell or otherwise dispose of, or hold separate or agree to sell or otherwise dispose of, specific assets or categories of assets or areas of business of the Company or any Company Subsidiary or any other assets or areas of business that are (1) currently owned by Parent, Merger Sub or any of their respective Affiliates, including Guarantor, or (2) presently or hereafter sought to be acquired by Parent, Merger Sub or any of their respective Affiliates, including Guarantor; (B) terminate any existing relationships and contractual rights and obligations; (C) amend or terminate such existing licenses or other Intellectual Property agreements or enter into such new licenses or other Intellectual Property agreements (or enter into agreements with the relevant Governmental Entity giving effect thereto); (D) take any actions or make any behavioral commitments, whether or not they limit or modify Parent's, Merger Sub's, their respective Affiliates' (including Guarantor's), or the Company's or any Company Subsidiary's assets or ability to conduct the business of one or more of its or their operations, divisions, businesses, or product lines or with any of its or their customers, including, after the Closing, the business of the Company and the Company Subsidiaries; (E) enter into agreements, including with the relevant Governmental Entity, giving effect to the foregoing clauses (A) through (D); or (F) litigate or contest any action, lawsuit or other legal, regulatory or other Proceeding or any decree, judgment, injunction or other order, whether temporary, preliminary or permanent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each of Parent and the Company agrees that, between the date of this Agreement and the Effective Time, each of Parent the Company shall not (and the Company shall cause the Company Subsidiaries not to) (i) enter into or consummate any agreements or arrangements for an acquisition (via stock purchase, merger, consolidation, purchase of assets or otherwise) of any ownership interest in, or assets of, any Person, if such ownership interest or assets would reasonably be expected to result in any material delay in obtaining, or the failure to obtain, any regulatory approvals required in connection with the transactions contemplated hereby (including the Merger and the Offer), or (ii) take or agree to take any other action (including entering into agreements with respect to any equity investments, joint ventures, acquisitions, mergers, consolidations or business combinations) which would reasonably be expected to result in any material delay in obtaining, or which would reasonably be expected to result in the failure to obtain, any approvals of any Governmental Entity required in connection with the transactions contemplated hereby (including the Merger and the Offer), or which would otherwise reasonably be expected to materially prevent or materially delay the Merger or the Offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Without limiting the generality of anything contained in this <u>Section 6.4</u>, each party hereto shall (i) give the other parties hereto prompt notice of the making or commencement of any request, inquiry, investigation, action or Proceeding by or before any Governmental Entity with respect to the Merger, the Offer or any of the other transactions contemplated by this Agreement, (ii) keep the other parties hereto notified as to the status of any such request, inquiry, investigation, action or other Proceeding, (iii) promptly notify the other parties hereto of any oral or written communication to or from any Governmental Entity regarding the Merger, the Offer or any of the other transactions contemplated by this Agreement and (iv) promptly provide to the other parties hereto copies of any written communications received or provided by such party, or any of its Subsidiaries, from or to any Governmental Entity with respect to the Merger, the Offer or any other transactions contemplated by this Agreement (excluding notification and report forms filed under the HSR Act, if any); <u>provided</u> that Parent and the Company may, as each reasonably and in good faith deems advisable and necessary, designate any competitively sensitive material provided to the other under this Section as "Antitrust Counsel Only Material." Such materials and the information contained therein shall be given only to the outside antitrust counsel of the recipient and will not be disclosed by such outside counsel to employees, officers or directors of the recipient unless express permission is obtained in advance from the source of the materials (Parent or the Company, as the case may be) or its legal counsel. Each party hereto will consult and cooperate with the other parties hereto with respect to and provide any necessary information and assistance as the other parties hereto may reasonably request with respect to all notices, submissions, or filings made by such party with any Governmental Entity or any other information supplied by such party to, or correspondence with, a Governmental Entity in connection with this Agreement or any transactions contemplated by this Agreement and will permit the other parties hereto to review and discuss in advance and consider in good faith the views of the other parties hereto in connection with any filing, analysis, appearance, presentation, memorandum, brief, argument, opinion or proposal made or submitted in connection with the Merger, the Offer or any of the other transactions contemplated by this Agreement, *provided*, *however*, the final determination as to the appropriate course of action shall be made by Parent. In addition, except as may be prohibited by any Governmental Entity or by any applicable Law, in connection with any such request, inquiry, investigation, action or other Proceeding other than the matters contemplated by <u>Section 6.11</u>, in connection with or related to the Merger, the Offer or the other transactions contemplated hereby, each party hereto will consult with the other parties hereto in

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advance and give the other parties hereto or their authorized Representatives the opportunity to be present at each meeting or teleconference relating to such request, inquiry, investigation, action or other Proceeding and to have access to and be consulted in connection with any document, opinion or proposal made or submitted to any Governmental Entity in connection with such request, inquiry, investigation, action or other Proceeding. Each of the Company and Parent shall approve the content of any presentations, white papers or other written materials to be submitted to any Governmental Entity in advance of any such submission.

6.5 <u>Merger</u>. Following the Acceptance Time, each of Parent, Merger Sub and the Company shall take all necessary and appropriate actions to cause the Merger to become effective as soon as practicable after the Acceptance Time, without a meeting or vote of the Company Stockholders, in accordance with Section 251(h) of the DGCL and upon the terms and subject to the conditions of this Agreement. In furtherance, and without limiting the generality, of the foregoing, neither Parent nor Merger Sub nor the Company shall, and shall not permit and shall cause their respective Affiliates or Representatives not to, take any action that could render Section 251(h) of the DGCL inapplicable to the Merger.

6.6 <u>Public Announcements</u>. So long as this Agreement is in effect, Parent and Merger Sub, on the one hand, and the Company, on the other, shall not, and shall cause their respective controlled Affiliates not to, issue any press release or make any public statement with respect to the Merger, the Offer or this Agreement without the prior written consent of the other party (which consent shall not be unreasonably withheld, conditioned or delayed), except (a) as may be required by applicable Law or the rules or regulations of any applicable United States securities exchange or regulatory or governmental body to which the relevant party is subject, in which case, to the extent permitted by applicable Law and practicable under the circumstances, the party proposing to issue such press release or make such public announcement shall consult in good faith with the other party before making any such public announcement; (b) with respect to any press release or other public statement by the Company permitted by <u>Section 6.3</u> (including to announce a Company Change of Board Recommendation that is not in breach of <u>Section 6.3</u>); (c) statements consistent in all material respects with any release, disclosure or other public statement previously made in accordance with this <u>Section 6.6</u>; (d) public statements regarding the transactions contemplated hereby in response to specific questions from the press, analysts, investors or those attending industry conferences to the extent that such statements are not inconsistent with previous press releases, public disclosures or public statements made jointly by the parties to this Agreement or approved by the parties to this Agreement, (e) internal announcements to employees to the extent that such statements are not inconsistent with previous press releases, public disclosures or public statements made jointly by the parties to this Agreement or approved by the parties to this Agreement, and otherwise in compliance with this <u>Section 6.6</u>, and provided that such public statements do not reveal material nonpublic information regarding this Agreement or the transactions contemplated hereby and (f) Parent, Merger Sub and their respective Affiliates, without consulting with the Company, may provide ordinary course communications regarding this Agreement and the transactions contemplated by this Agreement to existing or prospective general partners, limited partners, equity holders, members, managers and investors of any Affiliates of such Person, in each case, who are subject to customary confidentiality restrictions. Parent and the Company have agreed to the text of a joint press release announcing the signing of this Agreement.

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6.7 <u>Employee Benefit Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From and after the Effective Time, the Company shall, and Parent shall cause the Surviving Corporation to, honor all Benefit Plans in accordance with their terms as in effect immediately prior to the Effective Time or as such terms may be amended in accordance with the applicable Benefit Plan after the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the generality of the foregoing, for a period commencing on the Closing Date and ending on December 31, 2025, Parent shall provide, or shall cause to be provided, to each Company Employee who is employed by the Company or the Company Subsidiaries immediately prior to the Effective Time who continues in the employ of Parent, the Surviving Corporation or any of their respective Affiliates on or after the Effective Time (each, a "<u>Continuing Employee</u>"), excluding any employee of the Company listed on <u>Section 6.7(c)(i)</u> of the Company Disclosure Schedule: (i) a base salary or wage rate and short-term incentive cash compensation opportunities that, in each case, are no less favorable than were provided to the Continuing Employee immediately before the Effective Time, (ii) severance benefits and protections that are no less favorable than those provided to such Continuing Employee immediately prior to the Effective Time and (iii) retirement, health, welfare and employee and fringe benefits (excluding severance, post-employment welfare, equity or equity-based compensation and defined benefit pension benefits), that are no less favorable in the aggregate than those provided to the Continuing Employee pursuant to the Benefit Plans made available to Parent as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Parent hereby acknowledges that a "Change in Control" (or similar phrase) within the meaning of the Benefit Plans will occur at the Effective Time. The parties hereto agree that, effective as of the Closing, the Company shall terminate the employment of each of the employees of the Company listed on <u>Section 6.7(c)(i)</u> of the Company Disclosure Schedule. From and after the Closing, Parent shall cause the Company to comply in all respects with the terms of the severance agreements and policies of the Company in effect as of immediately prior to the Closing as set forth on <u>Section 6.7(c)(ii)</u> of the Company Disclosure Schedule, including, for the avoidance of doubt, to make the payments set forth on <u>Section 6.7(c)(iii)</u> of the Company Disclosure Schedule at the time and in the manner required by the applicable Benefit Plan. On the Closing Date, Parent shall make payment of the applicable amounts set forth on <u>Sections 6.7(c)(iii)</u> of the Company Disclosure Schedule by wire transfer of immediately available funds to the account of the Payroll Provider identified in writing by the Company to Parent pursuant to <u>Section 3.4(a)</u>, and the Surviving Corporation shall, or Parent shall cause the Surviving Corporation to, cause the Payroll Provider to pay to each recipient, through the Surviving Corporation's normal payroll procedures at the time and in the manner required by the applicable Benefit Plan (less any applicable withholding Taxes pursuant to <u>Section 3.5</u>). On the Closing Date, Parent shall pay by wire transfer of immediately available funds to the account of the Payroll Provider identified in writing by the Company to Parent pursuant to <u>Section 3.4(a)</u> the aggregate amount of the Pro-Rated STI Cash Bonuses set forth in <u>Section 6.7(c)(iv)</u> of the Company Disclosure Schedule, and the Surviving Corporation shall, or Parent shall cause the Surviving Corporation to, cause the Payroll Provider to make payment of each such Pro-Rated STI Cash Bonus to the holder thereof, through the Surviving Corporation's normal payroll procedures via a special payroll run as soon as reasonably practicable following the date such Pro-Rated STI Cash Bonus becomes payable in accordance with <u>Section 6.7(c)(iv)</u> of the Company Disclosure Schedule (but in any event no later than three Business Days thereafter and less any applicable withholding Taxes pursuant to <u>Section 3.5</u>).

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Notwithstanding anything in this Agreement to the contrary, payment of the Restricted Cash Awards, the Performance-Based Restricted Share Consideration and any payments required to be made pursuant to the agreements and policies set forth on <u>Section 6.7(c)(ii)</u> of the Company Disclosure Schedule shall be subject to the holder thereof timely executing (and not revoking) a general release of claims in the form mutually agreed to by Parent and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of vesting, eligibility to participate and for calculating severance and vacation entitlements under the employee benefit plans of Parent and its Subsidiaries (each, a "<u>New Plan</u>"), each Continuing Employee shall be credited with his or her years of service with the Company and the Company Subsidiaries and their respective predecessors before the Effective Time, to the same extent as such Continuing Employee was entitled before the Effective Time, to credit for such service under any similar Benefit Plan in which such Continuing Employee participated or was eligible to participate immediately prior to the Effective Time; <u>provided</u> that the foregoing shall not apply (x) for purposes of qualifying for subsidized early retirement benefits or retiree medical benefits, (y) under any defined benefit plan or (z) to the extent that its application would result in a duplication of benefits. In addition and without limiting the generality of the foregoing, (A) each Continuing Employee shall be immediately eligible to participate, without any waiting time, in any and all New Plans to the extent that coverage under such New Plans is comparable to a Benefit Plan in which such Continuing Employee participated immediately prior to the Effective Time (such plans, collectively, the "<u>Old Plans</u>") and (B) for purposes of each New Plan providing medical, dental, pharmaceutical or vision benefits to any Continuing Employee, Parent shall use its commercially reasonable efforts to cause all eligibility waiting periods, pre-existing condition exclusions and actively-at-work requirements of such New Plan to be waived for such employee and his or her covered dependents, unless such conditions would not have been waived under the comparable Old Plans, and Parent shall use its commercially reasonable efforts to cause any eligible expenses incurred by such employee and his or her covered dependents during the portion of the plan year of the Old Plans ending on the date such employee's participation in the corresponding New Plan begins to be taken into account under such New Plan for purposes of satisfying all deductible, coinsurance and maximum out-of-pocket requirements applicable to such employee and his or her covered dependents for the applicable plan year as if such amounts had been paid in accordance with such New Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If requested by Parent in writing and delivered to the Company with at least five Business Days prior notice to the Closing Date, the Company and each of the Company Subsidiaries shall, as applicable, adopt resolutions and take all such corporate action as is necessary to terminate each 401(k) plan maintained or sponsored by the Company or any Company Subsidiary (collectively, the "<u>Company 401(k) Plans</u>"), in each case, effective as of the day immediately prior to the Closing Date. The Company shall provide Parent with evidence that such Company 401(k) Plans have been properly terminated, and the form of such termination documents shall be subject to the reasonable approval of Parent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Prior to making any written or other material communications to the employees of the Company or the Company Subsidiaries pertaining to post-Closing compensation or benefit matters that are affected by the transactions contemplated by this Agreement, the Company shall provide Parent with a copy of the intended communication, Parent shall have a reasonable period of time to review and comment on the communication, and the Company shall consider any such comments in good faith.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Nothing in this Agreement shall: (i) limit the ability of the Company or any of its Affiliates (including, following the Effective Time, the Surviving Corporation and its Subsidiaries) to amend, modify or terminate in accordance with its terms any benefit or compensation plan, program, agreement, contract, policy or arrangement at any time assumed, established, sponsored or maintained by any of them, (ii) be deemed or construed to amend, establish, or modify any benefit or compensation plan, program, agreement, contract, policy or arrangement or (iii) create any third-party beneficiary rights or obligations in any person (including any current or former service provider or employee of Parent or any of its Subsidiaries (or any beneficiaries or dependents thereof)) or (iv) confer upon any Continuing Employee or other Person any right to employment or continued employment or to a particular term or condition of employment with the Company or any of its Affiliates (including, following the Effective Time, the Surviving Corporation and its Subsidiaries).

6.8 <u>Indemnification of Directors and Officers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For six years from and after the Effective Time, the Surviving Corporation shall, and Parent shall cause the Surviving Corporation to, assume, honor and fulfill in all respects the obligations of the Company and its Subsidiaries to indemnify, hold harmless and advance the costs, fees and expenses of all past and present directors and officers of the Company and each Company Subsidiary and each Person who served as a director, officer, member, trustee or fiduciary of another corporation, partnership, joint venture, trust, pension or other employee benefit plan or enterprise at the request or for the benefit of the Company or any of the Company Subsidiaries (collectively, the "<u>Covered Persons</u>") under and to the same extent such Persons are indemnified as of the date of this Agreement by the Company or such Company Subsidiary pursuant to (i) indemnification, expense advancement and exculpation provisions in the Company Charter, the Company Bylaws, the certificate of incorporation and bylaws, or equivalent organizational or governing documents, of any Company Subsidiary, and (ii) any indemnification agreements in existence on the date of this Agreement with any Covered Person and made available to Parent prior to the date of this Agreement (collectively, the "<u>Existing Indemnification Agreements</u>"), in each case, to the fullest extent permitted by applicable Law, from and against all costs and expenses (including advancing attorneys' fees and expenses in advance of the final disposition of any actual or threatened Proceeding or investigation to each Covered Person to the fullest extent permitted by Law), judgments, fines, losses, claims, damages, liabilities and amounts paid in settlement in connection with any actual or threatened Proceeding or investigation, whether civil, criminal, administrative or investigative, arising out of acts or omissions in their capacity as directors and officers of the Company or a Company Subsidiary or as a director, officer, member, trustee or fiduciary of another corporation, partnership, joint venture, trust, pension or other employee benefit plan or enterprise at the request or for the benefit of the Company or any of the Company Subsidiaries, in each case occurring at or prior to the Effective Time. Parent shall cause the Surviving Corporation to advance expenses (including reasonable legal fees and expenses) incurred in the defense of any Proceeding or investigation with respect to the matters subject to indemnification pursuant to this <u>Section 6.8</u> in accordance with the procedures (if any) set forth in the Company Charter, the Company Bylaws, the certificate of incorporation and bylaws, or equivalent organizational documents, of any Company Subsidiary, and any Existing Indemnification Agreements, as applicable. Notwithstanding anything herein to the contrary, if any Proceeding (whether arising before, at or after the Effective Time) is made against such Persons with respect to matters subject to indemnification, expense advancement or exculpation hereunder on or prior to the sixth anniversary of the Effective Time, the provisions of this <u>Section</u> <u>6.8</u> shall continue in effect until the final disposition of such Proceeding or investigation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For not less than six years from and after the Effective Time, the certificate of incorporation and bylaws of the Surviving Corporation and the equivalent governing documents of the Company Subsidiaries shall contain provisions no less favorable with respect to exculpation, indemnification of and advancement of expenses to Covered Persons for periods at or prior to the Effective Time than are currently set forth in the Company Charter and the Company Bylaws and the equivalent governing documents of the Company Subsidiaries, as applicable. Following the Effective Time, the Existing Indemnification Agreements shall be assumed by the Surviving Corporation, without any further action, and shall continue in full force and effect in accordance with their terms and shall not be amended, modified or terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For not less than six years from and after the Effective Time, the Surviving Corporation shall, and Parent shall cause the Surviving Corporation to, maintain for the benefit of the directors and officers of the Company and the Company Subsidiaries, as of the date of this Agreement and as of the Effective Time, an insurance and indemnification policy that provides coverage for events occurring prior to the Effective Time (the "<u>D&O Insurance</u>") that is substantially equivalent to and in any event providing coverage not less favorable in the aggregate than the existing policies of the Company and the Company Subsidiaries; <u>provided</u> that the Surviving Corporation shall not be required to pay an annual premium for the D&O Insurance in excess of 300% of the last annual premium paid prior to the date of this Agreement, but in such case shall purchase as favorable of coverage as is available for such amount. The provisions of the immediately preceding sentence shall be deemed to have been satisfied if prepaid policies have been obtained by the Company prior to the Effective Time and provide such directors and officers with coverage for an aggregate period of at least six years with respect to claims arising from facts or events that occurred on or before the Effective Time, including in connection with the adoption and approval of this Agreement and the transactions contemplated by this Agreement. If such prepaid policies have been obtained prior to the Effective Time, the Company and the Surviving Corporation, as applicable, shall, and Parent shall cause the Surviving Corporation to, maintain such policies in full force and effect, and continue to honor the obligations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that the Surviving Corporation (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to any Person, then, in each case, proper provision shall be made so that such continuing or surviving corporation or entity or transferee of such assets, as the case may be, shall assume the obligations set forth in this <u>Section 6.8.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The obligations under this <u>Section 6.8</u> are in addition to, and not in substitution for, any other rights to indemnification or contribution that any such individual may have under any certificate of incorporation or bylaws, or by any Contract disclosed on <u>Section 6.8</u> of the Company Disclosure Schedule. The obligations of Parent and the Surviving Corporation under this <u>Section</u> <u>6.8</u> shall not be terminated or modified in any manner that is adverse to the Covered Persons (and their respective successors and assigns); it being expressly agreed that the Covered Persons (including successors and assigns) shall be third-party beneficiaries of this <u>Section 6.8.</u> In the event of any breach by the Surviving Corporation or Parent of this <u>Section 6.8</u>, the Surviving Corporation shall pay all reasonable and out-of-pocket expenses, including reasonable attorneys' fees, that may be incurred by Covered Persons in enforcing the indemnity and other obligations provided in this <u>Section 6.8</u> as such fees are incurred upon the written request of such Covered Person.

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6.9 <u>Takeover Statutes</u>. If any state takeover Law or state Law or any similar anti-takeover provision in the Company Charter or the Company Bylaws that purports to limit or restrict business combinations or the ability to acquire or vote Company Common Shares (including any "control share acquisition," "fair price," "moratorium," "business combination" or other similar takeover Law) becomes or is deemed to be applicable to the Company, Parent, Merger Sub, this Agreement, the Merger, the Offer or any other transactions contemplated by this Agreement, then Parent, Merger Sub and the Company shall cooperate and take all action reasonably available to render such Law or provision inapplicable to the foregoing. Neither Parent, Merger Sub nor the Company will take any action that would cause this Agreement, the Merger, the Offer or the other transactions contemplated by this Agreement to be subject to the requirements imposed by any such Laws or provisions. No Company Change of Board Recommendation shall change the approval of the Company Board for purposes of causing any such Law or provision to be inapplicable to the transactions contemplated by this Agreement.

6.10 <u>Section 16 Matters</u>. Prior to the Effective Time, the Company Board, or an appropriate committee of non-employee directors thereof, shall adopt a resolution consistent with the interpretive guidance of the SEC so that the disposition by any officer or director of the Company who is a "covered person" of the Company for purposes of Section 16 of the Exchange Act, and the rules and regulations thereunder ("<u>Section 16</u>"), of Company Common Shares and Company Equity Awards pursuant to this Agreement and the Merger shall be an exempt transaction for purposes of Section 16.

6.11 <u>Stockholder Litigation</u>. Prior to the earlier of the Effective Time or the termination of this Agreement, the Company shall promptly notify Parent of any Proceeding brought by any of the Company Stockholders or other Persons (other than Parent, Merger Sub, or its Affiliates) against the Company or any of its directors, officers or the Representatives of the Company arising out of or relating to this Agreement or the transactions contemplated hereby, and shall keep Parent reasonably informed with respect to the status thereof, including, by promptly providing Parent with copies of all proceedings and correspondence relating to such Proceeding. Without limiting the preceding sentence, subject to the preservation of privilege and confidential information, prior to the earlier of the Effective Time or the termination of this Agreement, the Company shall give Parent the right to fully participate in (but not control) the defense (including by allowing for advanced review and comment on all filings or responses to be made in connection therewith) or settlement (including the right to participate in (at the participating party's expense) the negotiations, arbitrations or mediations with respect thereto) of any such Proceeding, and the Company will in good faith give consideration to Parent's advice with respect to such Proceeding and the underlying strategy documentation with respect thereto. Prior to the earlier of the Effective Time or the termination of this Agreement, the Company shall not cease to defend, settle or agree to settle any Proceeding relating to this Agreement or the transactions contemplated hereby without Parent's prior written consent (not to be unreasonably withheld, conditioned or delayed).

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6.12 <u>Stock Exchange Delisting and Deregistration</u>. Prior to the Effective Time, the Company shall use reasonable best efforts to cooperate with Parent and use reasonable best efforts to take, or cause to be taken, all actions, and do or cause to be done all things, reasonably necessary, proper or advisable on its part under applicable Laws and rules and policies of the NYSE to enable the delisting of the Company and of the Company Common Shares from the NYSE as promptly as practicable after the Effective Time and the deregistration of the Company Common Shares under the Exchange Act as promptly as practicable after such delisting.

6.13 <u>14D-10 Matters</u>. Prior to the consummation of the Offer, the Compensation Committee of the Company Board will take such steps to cause each employment compensation, severance or other employee benefit arrangement pursuant to which consideration is payable to any officer, director or employee who is a holder of any security of the Company to be approved by the Compensation Committee of the Company Board in accordance with the requirements of Rule 14d-10(d)(2) under the Exchange Act and the instructions thereto as an "employment compensation, severance or other employee benefit arrangement" within the meaning of Rule 14d-10(d)(2) under the Exchange Act and satisfy the requirements of the non-exclusive safe harbor set forth in Rule 14d-10(d) of the Exchange Act.

6.14 <u>Payoff Letter</u>. The Company shall deliver to Parent at least five Business Days prior to the Closing Date an appropriate and customary payoff letter with respect to the Company Credit Facility (the "<u>Payoff Letter</u>"), specifying the aggregate payoff amount of the Company's obligations (including principal, interest, fees, expenses, premium (if any) and other amounts payable in respect of such Indebtedness) that will be outstanding under such Indebtedness as of the Closing and providing for a release of all guarantees and Liens granted thereunder upon the receipt of the payoff amounts specified in the Payoff Letter and in form and substance reasonably acceptable to Parent.

6.15 <u>Financing Cooperation</u>. Prior to the Closing, the Company shall use reasonable best efforts, at Parent's sole expense, to cooperate with Parent as necessary in connection with the arrangement of the Debt Financing as may be customary and reasonably requested by Parent, including using reasonable best efforts to (a) cause the senior management of the Company to participate at reasonable times in a commercially reasonable number of meetings, drafting sessions, presentations, road shows, and rating agency and other due diligence sessions, in each case, upon reasonable advance notice, (b) furnish Parent and its Debt Financing Sources with financial and other pertinent information regarding the Company as shall be reasonably requested by Parent (<u>provided</u>, that, for the avoidance of doubt, the Company shall not be required to provide, and Parent shall be solely responsible for, (i) the preparation of any pro forma financial information, including pro forma cost savings, synergies, capitalization or other pro forma adjustments desired to be incorporated into any pro forma financial information, (ii) any description of all or any component of the Debt Financing, including any such description to be included in any liquidity or capital resources disclosure or any "description of notes," or (iii) projections, risk factors or other forward-looking statements relating to all or any component of the Debt Financing), (c) assist Parent and its Debt Financing Sources in the preparation of offering documents, private placement memoranda, bank information memoranda, loan and collateral documents, prospectuses and similar documents (including any schedules) for the Debt Financing, (d) cooperate with the marketing efforts of Parent and its Debt Financing Sources for the Debt Financing as reasonably requested by Parent, (e) cooperate with Parent's legal counsel in connection with any legal opinions that such legal counsel may be required to deliver in connection with the Debt Financing as reasonably requested by Parent, (f) facilitate the obtaining of guarantees and pledging of

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collateral in connection with the Debt Financing, including executing and delivering any customary guarantee, pledge and security documents, or other customary certificates or documents as may be reasonably requested by Parent to facilitate any guarantee, obtaining and perfection of security interest in collateral from and after the Closing and (g) provide, no later than five Business Days prior to the Expiration Time, (x) all documentation required by applicable "know your customer" and anti-money laundering Laws, including the USA PATRIOT Act, that has been requested in writing at least 10 Business Days prior to the Expiration Time and (y) certifications regarding beneficial ownership required by 31 C.F.R. § 1010.230 that has been requested in writing at least 10 Business Days prior to the Expiration Time; <u>provided</u>, in each case, that (i) neither the Company nor any Company Subsidiary shall be required to incur any liability (including the payment of any fees) in connection with the Debt Financing prior to the Closing Date, (ii) the pre-Closing board of directors of the Company (and the equivalent governing body of any Company Subsidiary) shall not be required to adopt resolutions approving the agreements, documents and instruments pursuant to which the Debt Financing is obtained, (iii) neither the Company nor any Company Subsidiary shall be required to execute effective prior to the Closing Date any definitive financing documents, including any credit or other agreements, pledge or security documents, or other certificates, legal opinions or documents in connection with the Debt Financing, (iv) except as expressly provided above, neither the Company nor any Company Subsidiary shall be required to take any corporate actions prior to the Closing Date to permit the consummation of the Debt Financing, (v) neither the Company nor any Company Subsidiary shall be required to take any action that would reasonably be expected to conflict with, or result in a violation or breach of, or default (with or without notice or lapse of time) under the Company Charter, the Company Bylaws, or the certificate of incorporation and bylaws, or equivalent organizational documents, of any Company Subsidiary, any applicable Law or any Contract to which the Company or any Company Subsidiary is a party and (vi) neither the Company nor any Company Subsidiary shall be required to provide any assistance or cooperation that would (1) unreasonably interfere with its respective business operations, (2) cause any representation or warranty in this Agreement made by the Company to be breached, or (3) cause the conditions set forth in <u>Annex A</u> or <u>Article 7</u> to fail to be satisfied. Except for the representations and warranties of the Company set forth in <u>Article 4</u> of this Agreement, neither the Company nor any Company Subsidiary shall have any liability to Parent in respect of any financial statements, other financial information, or data or other information provided pursuant to this <u>Section 6.15</u>. Notwithstanding anything to the contrary in this Agreement, the condition set forth in clause (c) of <u>Annex A</u>, as it applies to the Company's obligations under this <u>Section 6.15</u>, shall be deemed satisfied unless the Company has knowingly, willfully and materially breached its obligations under this <u>Section 6.15</u> and such breach has been the primary cause of the Debt Financing not being obtained.

6.16 <u>Financing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Equity Financing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of Parent and Merger Sub shall use their respective reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to arrange, obtain and consummate the Equity Financing in an amount required to satisfy the applicable portion of the Required Amount contemplated by the Equity Commitment Letters so as to enable Parent and Merger Sub to comply with their obligations under <u>Section 1.1(e)</u> on the terms and conditions described in or contemplated by the Equity Commitment Letters. Each

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of Parent and Merger Sub will not permit any amendment or modification to be made to, or any waiver of any provision or remedy pursuant to, the Equity Commitment Letters if such amendment, modification or waiver would, or would reasonably be expected to (A) impose new or additional conditions precedent to the funding of the Equity Financing or would otherwise adversely change, amend, modify or expand any of the conditions precedent to the funding of the Equity Financing, (B) be reasonably expected to prevent or delay the availability of all or a portion of the Equity Financing necessary to pay the applicable portion of the Required Amount contemplated by the Equity Commitment Letters or the consummation of the transactions contemplated by this Agreement, (C) reduce the aggregate amount of the Equity Financing below the amount necessary to pay the applicable portion of the Required Amount contemplated by the Equity Commitment Letters or (D) otherwise adversely affect the ability of Parent or Merger Sub to enforce their rights under the Equity Commitment Letters, including using reasonable best efforts to (i) maintain in full force and effect the Equity Commitment Letters and the Limited Guarantee, (ii) satisfy and comply with on a timely basis all conditions and covenants to the funding or investing of the Equity Financing required to pay the applicable portion of the Required Amount contemplated by the Equity Commitment Letters that are to be satisfied by Parent or Merger Sub, (iii) cause to be consummated the Equity Financing in an amount required to pay the applicable portion of the Required Amount contemplated by the Equity Commitment Letters so as to enable Parent and Merger Sub to comply with their obligations under <u>Section 1.1(e)</u>, (iv) enforce its rights under the Equity Commitment Letters and the Limited Guarantee and (v) cooperate with and assist the Company in enforcing its third-party beneficiary rights under the Equity Commitment Letters. Neither Parent nor Merger Sub shall release or consent to the termination of the obligations of any Investor to provide the Equity Financing in an amount required to pay the applicable portion of the Required Amount contemplated by the Equity Commitment Letters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding anything to the contrary contained in this Agreement, nothing contained in this <u>Section 6.16</u> will require, and in no event will the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to seek the Equity Financing from any source other than a counterparty to, or in any amount in excess of that contemplated by, the Equity Commitment Letters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Parent shall give the Company prompt written notice after Parent's Knowledge (i) of any default or breach (or any event that, with or without notice, lapse of time or both, would, or would reasonably be expected to, give rise to any default or breach) by any party under the Equity Commitment Letters of which Parent or Merger Sub becomes aware, (ii) of any termination of an Equity Commitment Letter, (iii) of the receipt by Parent or Merger Sub of any written notice or other written communication from any Investor with respect to any (A) actual or potential default, breach, termination or repudiation of an Equity Commitment Letter, or any material provision thereof, in each case by any party thereto, or (B) material dispute or disagreement between or among any parties to an Equity Commitment Letter that would reasonably be expected to prevent or materially delay the Closing or make the funding of the Equity Financing required to pay the applicable portion of the Required Amount contemplated by the Equity Commitment Letters less likely to occur or give rise to a right of termination under any such arrangement, and (iv) of the occurrence of an event or development that would reasonably be expected to adversely impact the ability of Parent or Merger Sub to obtain all or any portion of the Equity Financing necessary to pay the applicable portion of the Required Amount contemplated by the Equity Commitment Letters. Without limitation of the foregoing, upon the request of the

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Company from time to time, Parent will promptly update the Company on the material activity and developments of its efforts to arrange and obtain the Equity Financing, including by providing copies of all definitive agreements (and drafts of all offering documents and marketing materials) related to the Equity Financing, and any amendments, modifications or replacements to the Equity Commitment Letters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Debt Financing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of Parent and Merger Sub shall use their respective reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to arrange and obtain the Debt Financing on the terms and conditions described in the Debt Commitment Letter, including using its reasonable best efforts to (i) maintain in full force and effect the Debt Commitment Letter, (ii) satisfy, or cause to be satisfied, on a timely basis, all conditions to Parent and Merger Sub obtaining the Debt Financing set forth therein (including the payment of any fees required as a condition to the Debt Financing) required to pay the applicable portion of the Required Amount contemplated by the Debt Commitment Letter that are to be satisfied by Parent or Merger Sub, (iii) negotiate and enter into definitive agreements with respect to the Debt Financing on the terms and conditions contemplated by the Debt Commitment Letter (including any related flex provisions) or on other terms that are in the aggregate not materially less favorable, taken as a whole, to Parent (including with respect to conditions set forth in the Debt Commitment Letter) so that such agreements are in effect not later than the Acceptance Time so as to enable Parent and Merger Sub to comply with their obligations under <u>Section 1.1(e)</u>, and (iv) using its reasonable best efforts to cause the Debt Financing Sources to provide the Debt Financing in accordance with the terms thereof, and so as to enable Parent and Merger Sub to comply with their obligations under <u>Section 1.1(e)</u>, to the extent the proceeds thereof are required for the Financing Purposes. Parent and Merger Sub shall give the Company prompt written notice (and in any event within one Business Day) (A) of any breach or default (or any event or circumstance that, with or without notice, lapse of time or both, would reasonably be expected to result in breach or default) by any party to the Debt Commitment Letter of which Parent or Merger Sub becomes aware, (B) if and when Parent and/or Merger Sub becomes aware that any portion of the Debt Financing contemplated by the Debt Commitment Letter would not reasonably be expected to be available for the Financing Purposes, (C) of the receipt of any written notice or other written communication from any Person with respect to any (1) actual or potential breach, default, termination or repudiation by any party to the Debt Commitment Letter or (2) material dispute or disagreement between or among any parties to the Debt Commitment Letter (but excluding, for the avoidance of doubt, any ordinary course negotiations with respect to the terms of the Debt Financing) and (D) of any expiration or termination of the Debt Commitment Letter. As soon as reasonably practicable, each of Parent and/or Merger Sub shall provide any information available to such party that is reasonably requested by the Company relating to any circumstance referred to in clause (A), (B), (C) or (D) of the immediately preceding sentence. Without limiting the foregoing, upon reasonable request by the Company, Parent and Merger Sub shall keep the Company informed on a reasonably current basis and in reasonable detail of the status of their efforts to arrange the Debt Financing. If any portion of the Debt Financing becomes, or would reasonably be expected to become, unavailable (whether through expiration, termination or otherwise) on the terms and conditions contemplated in the Debt Commitment Letter (after taking into account flex terms), Parent and Merger Sub shall use their respective reasonable best efforts to arrange and obtain alternative financing, including from alternative sources, on terms that in the

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aggregate are not materially less favorable to Parent and Merger Sub (including with respect to any conditions to the Debt Financing) than the Debt Financing contemplated by the Debt Commitment Letter and in an amount that is sufficient to replace any unavailable portion of the Debt Financing ("<u>Alternative Financing</u>") as promptly as practicable following the occurrence of such event (and in no event later than one Business Day prior to the Acceptance Time or such earlier time as may be necessary so as to enable Parent and Merger Sub to comply with their obligations under <u>Section 1.1(e)</u>), and the provisions of this <u>Section 6.16(b)</u> shall be applicable to the Alternative Financing, and all references to the Debt Financing shall be deemed to include such Alternative Financing and all references to the Debt Commitment Letter shall include the applicable documents for the Alternative Financing. Parent and Merger Sub shall (1) comply with the Debt Commitment Letter, (2) use reasonable best efforts to (x) enforce their rights under the Debt Commitment Letter and (y) subject to the satisfaction or waiver of the conditions precedent thereto, cause the Debt Financing Sources to fund the Debt Financing pursuant to the terms thereof (it being understood and agreed that neither Parent nor Merger Sub shall have any obligation to litigate or contest any action, lawsuit or other legal, regulatory or other Proceeding in respect thereof) and (3) not permit, without the prior written consent of the Company, any material amendment or modification to be made to, or any termination, rescission or withdrawal of, or any material waiver of any provision or remedy under, the Debt Commitment Letter or the fee letter referred to in the Debt Commitment Letter that (individually or in the aggregate with any other amendments, modifications or waivers) would reasonably be expected to (x) reduce the aggregate amount of the Debt Financing available thereunder (including by changing the amount of fees to be paid or original issue discount thereof), or (y) impose any new or additional condition, or otherwise amend, modify or expand any condition, to the receipt of any portion of the Debt Financing in a manner that would reasonably be expected to (I) delay or prevent the Closing Date, (II) make the funding of any portion of the Debt Financing (or satisfaction of any condition to obtaining any portion of the Debt Financing) less likely to occur or (III) adversely impact (a) the ability of Parent or Merger Sub to enforce their respective rights against any other party to the Debt Commitment Letter or (b) the ability of Parent or Merger Sub to consummate the transactions contemplated hereby. Notwithstanding anything to the contrary in this Agreement, compliance by Parent and Merger Sub with this <u>Section 6.16(b)</u> shall not relieve Parent and Merger Sub of their respective obligation to consummate the transactions contemplated by this Agreement, whether or not the Debt Financing or Alternative Financing is available. Parent shall promptly deliver to the Company true and complete copies of all agreements pursuant to which any such Alternative Financing source shall have committed to provide Parent and/or Merger with any portion of such Alternative Financing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Parent and Merger Sub shall indemnify, defend and hold harmless the Company and the Company Subsidiaries, and their respective directors, officers, employees and other Representatives, from and against any and all damages incurred, directly or indirectly, in connection with the Debt Financing or any information provided in connection therewith. Parent shall promptly reimburse the Company and the Company Subsidiaries, as applicable, for all reasonable and documented out-of-pocket costs (including reasonable attorneys' fees and ratings agencies' fees) incurred by the Company or the Company Subsidiaries in connection with the cooperation described in <u>Section 6.15</u> or otherwise in connection with the Debt Financing.

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**ARTICLE 7** 

**CONDITIONS TO CONSUMMATION OF THE MERGER** 

The respective obligations of each of Parent, Merger Sub and the Company to effect the Merger shall be subject to the satisfaction at or prior to the Effective Time of each of the following conditions, any and all of which may be waived in whole or in part by mutual consent of Parent, Merger Sub and the Company, as the case may be, to the extent permitted by applicable Law:

7.1 <u>Purchase of Company Shares</u>. Merger Sub shall have irrevocably accepted for payment all of the Company Common Shares validly tendered and not withdrawn pursuant to the Offer and Merger Sub shall have consummated the Offer.

7.2 <u>No Injunctions or Restraints; Illegality</u>. No Governmental Entity having jurisdiction over any of the parties hereto shall have (i) enacted, issued or promulgated any Law that is in effect as of immediately prior to the Effective Time and has the effect of making the Merger illegal or which has the effect of prohibiting or otherwise preventing the consummation of the Merger, or (ii) issued or granted any Order that is in effect as of immediately prior to the Effective Time and has the effect of making the Merger illegal or which has the effect of prohibiting or otherwise preventing the consummation of the Merger.

**ARTICLE 8** 

**TERMINATION, AMENDMENT AND WAIVER** 

8.1 <u>Termination</u>. This Agreement may be terminated and the transactions contemplated hereby may be abandoned (with respect to <u>Sections 8.1(b)</u> through <u>8.1(i)</u>, by written notice by the terminating party to the other party) at any time prior to the Effective Time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by mutual written agreement of Parent and the Company, by action of their respective Boards of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by either the Company or Parent, if the Acceptance Time shall not have occurred on or before November 10, 2025 (as such date may be extended by the mutual written consent of the parties hereto, the "<u>Outside Date</u>"); <u>provided</u> that the right to terminate this Agreement pursuant to this <u>Section 8.1(b)</u> shall not be available to any party whose material breach of this Agreement (including, in the case of Parent, any material breach by Merger Sub) is the principal cause of the failure of the Acceptance Time to occur by the Outside Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by either the Company or Parent, if any court of competent jurisdiction or any other Governmental Entity having jurisdiction over any of the parties hereto shall have issued any Order, or any Law shall be in effect that was enacted, promulgated or deemed applicable to the Offer or the Merger by any Governmental Entity having jurisdiction over the parties hereto, in each case, permanently restraining, enjoining, preventing or otherwise prohibiting or making illegal (1) prior to the Acceptance Time, the consummation of the Offer, or (2) prior to the Effective Time, the consummation of the Merger, and, in each case, such Order or Law shall have become final and nonappealable; <u>provided</u>, that the right to terminate this Agreement pursuant to this <u>Section 8.1(c)</u> shall not be available to any party whose material breach of this Agreement (including, in the case of Parent, any material breach by Merger Sub) has been the principal cause of the existence, enactment, promulgation or deemed applicability such Order or Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by Parent, at any time prior to the Acceptance Time, if the Company Board shall have effected a Company Change of Board Recommendation;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) by the Company, at any time prior to the Acceptance Time, in order to enter into a definitive agreement with respect to a Superior Company Proposal, but only if the Company has complied with its obligations under <u>Section 6.3(e)</u> and has not breached (other than a *de minimis* breach) its obligations under <u>Section 6.3</u>; <u>provided</u>, that the Company (i) pays, or causes to be paid, to Parent the Company Termination Fee payable pursuant to <u>Section 8.3(a)</u> prior to or concurrently with such termination; and (ii) concurrently with such termination, enters into a definitive acquisition agreement that documents the terms and conditions of such Superior Company Proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) by Parent at any time prior to the Acceptance Time if: (i) there has been a breach by the Company of its representations, warranties or covenants contained in this Agreement such that any condition set forth in clauses (ii)(b) or (ii)(c) of <u>Annex A</u> is not capable of being satisfied, (ii) Parent shall have delivered to the Company written notice of such breach and (iii) such breach is not capable of cure or shall not have been cured within the earlier of the Outside Date or 45 days from the date of delivery of such written notice to the Company; <u>provided</u>, that Parent shall not be permitted to terminate this Agreement pursuant to this <u>Section 8.1(f)</u> if either Parent or Merger Sub are then in material breach of their respective obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) by the Company if: (i) there has been a breach by Parent or Merger Sub of any of their representations, warranties or covenants contained in this Agreement such that any condition set forth in <u>Sections 7.1</u> or <u>7.2</u> is not capable of being satisfied, (ii) the Company shall have delivered to Parent written notice of such breach and (iii) such breach is not capable of cure or shall not have been cured within the earlier of the Outside Date or 45 days from the date of delivery of such written notice to Parent; <u>provided</u>, that the Company shall not be permitted to terminate this Agreement pursuant to this <u>Section 8.1(g)</u> if the Company is then in material breach of its obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) by either the Company or Parent at any time prior to the Acceptance Time if (1) a condition to the Offer set forth in <u>Annex A</u> has failed during the pendency of the Offer (other than a condition that by its nature is to be satisfied as of immediately prior to the Expiration Time) and such condition is not waived by Merger Sub, (2) the Offer shall have expired (without having been extended) without the Minimum Condition having been satisfied or the other conditions to the Offer set forth in <u>Annex A</u> having been satisfied or (if permitted by applicable Law) waived, in each case without Merger Sub having accepted Company Common Shares for payment pursuant to the Offer; or (3) the Offer shall have been terminated in accordance with the terms of this Agreement without Merger Sub having accepted Company Common Shares for payment pursuant to the Offer; *provided*, *however*, in each case, that the right to terminate this Agreement pursuant to this <u>Section 8.1(h)</u> shall not be available to any party whose material breach of this Agreement (including, in the case of Parent, any such breach by Merger Sub) is the principal cause of the failure of such condition (including the Minimum Condition); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) by the Company if, at any time following the Expiration Time, (1) the conditions set forth in <u>Annex A</u> have been satisfied or (if permitted by applicable Law) waived at or prior to the Expiration Time (after giving effect to any extensions thereof in accordance with this Agreement); (2) Merger Sub shall have failed to consummate (as defined in Section 251(h) of the DGCL) the Offer in accordance with <u>Article</u> <u>1</u>; (3) the Company provides written notice to Parent following such failure (A) of the Company's intention to terminate the Agreement pursuant to this

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<u>Section 8.1(i)</u> if Merger Sub fails to accept to purchase Company Common Shares validly tendered (and not validly withdrawn) in accordance with <u>Article 1</u> and (B) that the Company is ready, willing and able to consummate the Closing on such date of notice and at all times during the three Business Day period immediately thereafter; and (4) Merger Sub fails to consummate (as defined in Section 251(h) of the DGCL) the Offer prior to the expiration of such three Business Day period; <u>provided</u>, that the right to terminate this Agreement pursuant to this <u>Section 8.1(i)</u> shall not be available to the Company if the Company is then in material breach of its obligations under this Agreement.

8.2 <u>Effect of Termination</u>. Notwithstanding anything to the contrary in this Agreement, in the event of valid termination of this Agreement as provided in <u>Section 8.1,</u> this Agreement shall immediately become void and there shall be no liability or obligation on the part of Parent, the Company, Merger Sub or their respective Related Parties; <u>provided</u> that, subject in all respects to <u>Section 8.3</u> and <u>Section 9.17</u> (including, in each case, the limitations set forth therein), (a) any such termination shall not relieve the Company, Parent or Merger Sub from liability for any fraud or Willful Breach prior to such termination of this Agreement (which, in each case, the parties hereto acknowledge and agree will not be limited to reimbursement of expenses or out-of-pocket costs, and in the case of any damages sought by the non-breaching party, including any Willful Breach, such damages will include the benefit of the bargain lost by the non-breaching party, taking into consideration relevant matters, including opportunity costs, lost profits and the time value of money) and (b) the provisions of <u>Section 6.2(b), Section</u> <u>6.6,</u> this <u>Section 8.2</u>, <u>Section 8.3, Section</u> <u>9.6</u>, <u>Section 9.7</u> and <u>Article 9</u> of this Agreement and the Confidentiality Agreement shall remain in full force and effect and survive any termination of this Agreement, in each case, in accordance with and subject to their respective terms and conditions in all respects. For the avoidance of doubt, any valid termination by Parent shall also be an effective termination by Merger Sub.

8.3 <u>Fees and Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties hereto agree that if this Agreement is validly terminated by Parent in accordance with <u>Section 8.1(d)</u> or by the Company in accordance with <u>Section 8.1(e),</u> then the Company shall pay (or cause to be paid) to Parent (or its designee) prior to or concurrently with such termination, in the case of a termination by the Company, or within three Business Days thereafter, in the case of a termination by Parent, the Company Termination Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The parties hereto agree that (i) if this Agreement is validly terminated by (A) either Parent or the Company in accordance with <u>Section 8.1(b)</u> and at such time the conditions set forth in clause (ii)(a) of Annex A and <u>Section 7.2</u> shall have been satisfied or (B) by Parent pursuant to <u>Section 8.1(f)</u>; and, after the date of this Agreement and prior to the date of such termination, a bona fide Company Acquisition Proposal shall have been made to the Company Board and shall have become publicly known or shall have been publicly made, and (ii) within 12 months after such termination the Company enters into a definitive agreement with respect to any Company Acquisition Proposal which is later consummated or the transactions contemplated by any Company Acquisition Proposal are consummated (which need not be the same Company Acquisition Proposal that was made publicly known or disclosed publicly prior to the termination of this Agreement), then the Company shall pay (or cause to be paid) the Company Termination Fee to Parent (or its designee), by wire transfer of same-day funds upon consummation of such transaction. For purposes of this <u>Section 8.3(b)</u>, the term "Company Acquisition Proposal" shall

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have the meaning assigned to such term in <u>Section 9.6</u>, except that the references to "15% or more" shall be deemed to be references to "more than 50%." In no event shall the Company be required to pay the Company Termination Fee on more than one occasion, whether or not the Company Termination Fee may be payable under more than one provision of this Agreement at the same or at different times and the occurrence of different events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The parties hereto agree that if this Agreement is terminated by the Company pursuant to (x) <u>Section 8.1(i)</u> or (y) <u>Section 8.1(b)</u> under circumstances in which the Company would have been entitled to terminate the Agreement pursuant to <u>Section 8.1(i),</u> Parent shall pay to the Company, within two Business Days following such termination, the Parent Termination Fee, it being understood that in no event shall Parent be required to pay the Parent Termination Fee on more than one occasion, whether or not the Parent Termination Fee may be payable under more than one provision of this Agreement at the same or at different times and the occurrence of different events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company, Parent and Merger Sub acknowledge that the agreements contained in this <u>Section 8.3</u> are an integral part of this Agreement and that, without this <u>Section 8.3</u>, the Company, Parent and Merger Sub would not have entered into this Agreement, and that each of the Company Termination Fee and the Parent Termination Fee is not a penalty, but is liquidated damages, in a reasonable amount that will compensate Parent or the Company, as applicable, in the circumstances in which such fee is payable pursuant to <u>Section 8.3(a), Section</u> <u>8.3(b)</u> or <u>Section</u> <u>8.3(c)</u>, as applicable, for the efforts and resources expended and opportunities foregone while negotiating this Agreement and in reliance on this Agreement and on the expectation of the consummation of the transactions contemplated by this Agreement, which amount would otherwise be impossible to calculate with precision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary in this Agreement or any ancillary document or agreement delivered in connection herewith or otherwise, subject in all respects to <u>Section 8.2</u>, this <u>Section 8.3</u>, <u>Section 9.16</u> and <u>Section 9.17</u> (including, in each case, the limitations set forth therein), (i) in the event that this Agreement is terminated under circumstances where the Company Termination Fee is payable, payment of the Company Termination Fee shall constitute the sole and exclusive remedy (whether at Law, in equity, in Contract, in tort or otherwise) of Parent, Merger Sub, any Parent Related Party and any other Person for all losses and damages in connection with any termination of this Agreement or any ancillary document or agreement delivered in connection herewith or otherwise in the circumstances in which such Company Termination Fee became payable, and upon payment of such amount, (A) none of the Company Related Parties shall have any further liability or obligation relating to or arising out of this Agreement or the transactions contemplated by this Agreement and (B) none of Parent, Merger Sub, any Parent Related Party and any other Person shall have any rights or claims against any of the Company Related Parties under this Agreement or any ancillary document or agreement delivered in connection herewith or otherwise, whether at law or equity, in contract, in tort or otherwise, and in such event, Parent and Merger Sub shall not seek to recover any monetary damages or obtain equitable relief from any of the Company Related Parties; and (ii) in the event that this Agreement is terminated under circumstances where the Parent Termination Fee is payable, payment of the Parent Termination Fee shall constitute the sole and exclusive remedy (whether at Law, in equity, in Contract, in tort or otherwise) of the Company, any Company Related Party and any other Person for all losses and damages in connection with any termination

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of this Agreement or any ancillary document or agreement delivered in connection herewith or otherwise in the circumstances in which such Parent Termination Fee became payable, and upon payment of such amount, (A) none of the Parent Related Parties shall have any further liability or obligation relating to or arising out of this Agreement or the transactions contemplated by this Agreement and (B) none of the Company, any Company Related Party and any other Person shall have any rights or claims against any of the Parent Related Parties under this Agreement or any ancillary document or agreement delivered in connection herewith or otherwise, whether at law or equity, in contract, in tort or otherwise, and in such event, the Company shall not seek to recover any monetary damages or obtain equitable relief from the Parent Related Parties. Notwithstanding the foregoing, payment of the Company Termination Fee or the Parent Termination Fee, as applicable, will not relieve the Company Related Parties or the Parent Related Parties, respectively, from liability for any fraud.

**ARTICLE 9** 

**GENERAL PROVISIONS** 

9.1 <u>Amendment</u>. This Agreement may be amended at any time prior to the Effective Time only by execution of an instrument in writing signed by each of the Company, Parent and Merger Sub. Notwithstanding anything else to the contrary herein, no amendment, modification or alteration to the provisions set forth in <u>Sections 8.2</u> and <u>8.3</u> (solely to the extent relating to the Debt Financing Sources), this sentence of <u>Section 9.1, Section</u> <u>9.11</u>(solely to the extent that it relates to the Debt Financing Sources), <u>Section 9.12</u> (solely to the extent it relates to the Debt Financing Sources), <u>Section 9.14</u> (solely to the extent that it relates to the Debt Financing Sources), and <u>Section 9.16</u> (solely to the extent that it relates to the Debt Financing Sources) (and any related definitions to the extent an amendment, modification or alteration of such definitions would modify the substance of any of the foregoing provisions) in any manner materially adverse to the Debt Financing Sources shall not be effective as to the Debt Financing Sources without the prior written consent of the Debt Financing Sources party to the Debt Commitment Letters.

9.2 <u>Waiver</u>. At any time prior to the Effective Time, Parent and Merger Sub, on the one hand, and the Company, on the other hand, may (a) extend the time for the performance of any of the obligations or other acts of the other, (b) waive any breach of the representations and warranties of the other contained herein or in any document delivered pursuant hereto or (c) waive compliance by the other with any of the agreements or covenants contained herein. Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the party or parties to be bound thereby, but such extension or waiver or failure to insist on strict compliance with an obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure. Any delay in exercising any right under this Agreement shall not constitute a waiver of such right.

9.3 <u>Non-Survival of Representations and Warranties</u>. None of the representations, warranties, covenants or other agreements in this Agreement or in any instrument delivered pursuant to this Agreement, or any rights arising out of any breach of any of the foregoing, shall survive the Effective Time, except that this <u>Section 9.3</u> shall not limit any covenant or agreement of the parties hereto that by its terms contemplates performance after the Effective Time, which shall survive to the extent expressly provided for herein.

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9.4 <u>Fees and Expenses</u>. Except as otherwise expressly provided in this Agreement, all Expenses incurred by the parties hereto shall be borne solely and entirely by the party that has incurred the same, whether or not the Offer and/or the Merger is consummated.

9.5 <u>Notices</u>. Any notices or other communications required or permitted under, or otherwise given in connection with, this Agreement shall be in writing and shall be deemed to have been duly given (a) when delivered or sent if delivered in Person, (b) on the next Business Day if transmitted by national overnight courier or (c) on the date delivered if sent by email (to the extent that no "bounceback" or similar message indicating non-delivery is received with respect thereto), in each case, as follows (or to such other Persons or addressees as may be designated in writing by the party to receive such notice):

If to Parent or Merger Sub, addressed to it at:

c/o WhiteHawk Income Corporation

2000 Market Street, Suite 910

Attention: Daniel Herz

Email: dherz@whitehawkenergy.com

with a copy (which shall not constitute notice) to:

Weil, Gotshal & Manges LLP

200 Crescent Court, Suite 300

Dallas, Texas 75201

Attention: James R. Griffin

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claudia Lai

Email: james.griffin@weil.com

claudia.lai@weil.com

and

Weil, Gotshal & Manges LLP

700 Louisiana Street, Suite 3700

Houston, Texas 77002

Attention: Omar Samji

Email: omar.samji@weil.com

If to the Company, addressed to it at:

PHX Minerals Inc.

1320 South University Drive, Suite 720

Fort Worth, TX 76107

Attention: Chad L. Stephens

Email: chad@phxmin.com

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with a copy (which shall not constitute notice) to:

Blank Rome LLP

1271 Avenue of the Americas

New York, New York 10020

Attention: Robert J. Mittman, Peter Schnur

Email: Robert.Mittman@blankrome.com; Peter.Schnur@blankrome.com

9.6 <u>Certain Definitions</u>. For purposes of this Agreement, the term:

"<u>Acceptable Confidentiality Agreement</u>" means a confidentiality agreement that contains confidentiality, non-use and other provisions that are no less favorable in the aggregate to the Company than those contained in the Confidentiality Agreement, <u>provided</u>, that any such confidentiality agreement need not contain any standstill or similar provision.

"<u>Acceptance Time</u>" shall mean the date and time of the irrevocable acceptance for payment by Merger Sub of Company Common Shares pursuant to and subject to the conditions of the Offer.

"<u>Affiliate</u>" when used with respect to any Person, means any other Person who is an "affiliate" of that first Person within the meaning of Rule 405 promulgated under the Securities Act.

"<u>Anti-Corruption Laws</u>" means any Laws prohibiting bribery or corruption (governmental or commercial) which apply to the Company and Company Subsidiaries from time to time, including the U.S. Foreign Corrupt Practices Act of 1977, as amended.

"<u>Benefit Plan</u>" means each "employee benefit plan" (as defined in Section 3(3) of ERISA) (whether or not such plan is subject to ERISA), each bonus, incentive or deferred compensation or equity or equity-based compensation plan, program, policy, agreement or arrangement, and each employment, consulting, severance, change in control, retention, termination, pension, retirement, disability benefit, health, welfare, vacation, life insurance, fringe benefit, supplemental benefit plan, program, policy, agreement, scheme or arrangement, in each case, sponsored, maintained, contributed to or required to be contributed to by the Company or any Company Subsidiary for the benefit of any Company Employee, or between the Company or any Company Subsidiary, on the one hand, and any Company Employee, on the other hand, or with respect to which the Company or any Company Subsidiary has any direct or indirect liability, excluding any "multiemployer plan" (within the meaning of Section 4001(a) of ERISA).

"<u>Business Day</u>" means any day other than a Saturday, Sunday or any day on which commercial banks in New York, New York are authorized or required by applicable Law to close.

"<u>CERCLA</u>" means the Comprehensive Environmental Response, Compensation, and Liability Act, as amended (42 U.S.C. § 9601 et seq.), and the rules and regulations promulgated thereunder.

"<u>Code</u>" means the United States Internal Revenue Code of 1986, as amended.

"<u>Company Acquisition Proposal</u>" means any bona fide offer or proposal from a Third Party (other than Parent, Merger Sub or their respective Affiliates) concerning (a) a merger, amalgamation, consolidation, share exchange, joint venture, partnership or other business combination transaction or series of related transactions involving the Company in which any Person or group (as defined in Section 13(d) of the Exchange Act) would acquire beneficial ownership of Equity Interests

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representing 15% or more of the voting power of the Company; (b) a sale, lease, license, mortgage, pledge or other disposition, directly or indirectly, by merger, amalgamation, consolidation, business combination, share exchange, joint venture, partnership, share issuance, share purchase or otherwise, of assets of the Company (including Equity Interests of a Company Subsidiary) or the Company Subsidiaries representing 15% or more of the consolidated assets of the Company and the Company Subsidiaries, taken as a whole; (c) an issuance or sale (including by way of merger, consolidation, business combination, amalgamation, joint venture, partnership, share exchange or otherwise) of Equity Interests representing 15% or more of the voting power of the Company or a tender offer or exchange offer in which any Person or group (as defined in Section 13(d) of the Exchange Act) would acquire beneficial ownership, or the right to acquire beneficial ownership, of Equity Interests representing 15% or more of the voting power of the Company; (d) any liquidation, dissolution, recapitalization, extraordinary dividend or other significant corporate reorganization of the Company or any of the Company Subsidiaries, the business of which constitutes 15% or more of the consolidated net revenues or assets of the Company and the Company Subsidiaries; or (e) any combination of the foregoing (in each case, other than the Merger).

"<u>Company Change of Board Recommendation</u>" means the Company Board (a) fails to make, withholds or withdraws (or changes, modifies, amends or qualifies) (or publicly proposes to fail to make, withhold or withdraw (or change, modify, amend or qualify)) the Company Board Recommendation, (b) approves, endorses, adopts, recommends or otherwise declares advisable (or publicly proposes, or announces an intention, to approve, endorse, adopt, recommend or otherwise declare advisable), any Company Acquisition Proposal, (c) fails to include the Company Board Recommendation in the Schedule 14D-9, (d) if any Company Acquisition Proposal has been made public, fails to reaffirm the Company Board Recommendation upon request of Parent within the earlier of two Business Days prior to the then-scheduled Expiration Time or three Business Days after Parent requests in writing such reaffirmation with respect to such Company Acquisition Proposal, (e) fails to recommend, in a Solicitation/Recommendation Statement on Schedule 14D-9, against any Company Acquisition Proposal subject to Regulation 14D under the Exchange Act within 10 Business Days after the commencement of such Company Acquisition Proposal, (f) resolves or agrees to change or modify the election that this Agreement and the Merger be governed pursuant to Section 251(h) of the DGCL or (g) resolves or agrees to take any of the foregoing actions; <u>provided</u>, *however*, that (i) any written notice of the Company's intention to make a Company Change of Board Recommendation prior to effecting such Company Change of Board Recommendation in accordance with <u>Section 6.3(e)</u> and <u>Section 6.3(f)</u> and in and of itself shall not be deemed a Company Change of Board Recommendation, and (ii) Parent may make such request pursuant to subsection (d) only once with respect to such Company Acquisition Proposal unless such Company Acquisition Proposal is subsequently publicly modified in which case Parent may make such request once each time such a modification is made.

"<u>Company Credit Facility</u>" means that certain Credit Agreement, dated as of September 1, 2021, among the Company, each lender from time to time party thereto, and Independent Bank, as Administrative Agent and L/C Issuer, as amended, restated, amended and restated, supplemented or otherwise modified.

"<u>Company DCP Unit</u>" means each right to receive Company Common Shares in accordance with the Company's Deferred Compensation Plan for Non-Employee Directors.

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"<u>Company Employee</u>" means each current employee of the Company or any of the Company Subsidiaries.

"<u>Company Equity Awards</u>" means the Company DCP Units and the Company Restricted Shares.

"<u>Company Equity Plan</u>" means the PHX Minerals Inc. Amended 2010 Restricted Stock Plan, the PHX Minerals Inc. Amended and Restated 2021 Long-Term Incentive Plan, and the PHX Minerals Inc. Deferred Compensation Plan for Non-Employee Directors.

"<u>Company Intellectual Property</u>" means all Intellectual Property owned or purported to be owned by the Company or any Company Subsidiary.

"<u>Company Intervening Event</u>" means a material fact, event, change, condition, occurrence, effect, development, circumstance or set of circumstances with respect to the Company and the Company Subsidiaries, taken as a whole, that (a) was not known or reasonably foreseeable (with respect to substance or timing) to the Company Board as of or prior to the date of this Agreement and (b) first becomes known to the Company Board after the execution of this Agreement and at any time prior to the Acceptance Time; <u>provided</u>, <u>however</u>, that none of the following will be deemed to constitute, or, in and of itself be considered in determining whether there has been, a Company Intervening Event: (x) the receipt, existence of or terms of a Company Acquisition Proposal or a Superior Company Proposal or any inquiry or communications or any matters relating thereto or consequence thereof or (y) changes in the market price or trading volume of the Company Common Shares or the fact that the Company meets or exceeds internal or published projections, budgets, forecasts or estimates or revenues, earnings or other financial results for any period.

"<u>Company Licensed Intellectual Property</u>" means all material Intellectual Property that is used, practiced or held for use or practice by the Company or any Company Subsidiary, except for any Company Intellectual Property.

"<u>Company Material Adverse Effect</u>" shall mean any state of facts, change, condition, occurrence, effect, event, circumstance or development (each an "<u>Effect</u>", and collectively, "<u>Effects</u>"), individually or in the aggregate, that (a) has had, or would reasonably be expected to have, a material adverse effect on the business, assets, properties, condition (financial or otherwise) or results of operations of the Company and its Subsidiaries, taken as a whole or (b) would reasonably be expected to prevent the Company from consummating, or to materially impair or materially delay the ability of the Company to consummate, the Merger or any of the other transactions contemplated by this Agreement; <u>provided</u>, <u>however</u>, that, solely in the case of clause (a), no Effect (by itself or when aggregated or taken together with any and all other effects) to the extent directly resulting from any of the following shall be taken into account when determining whether a "Company Material Adverse Effect" has occurred, except to the extent any Effect directly results from the matters described in following clauses (i) through (vi), to the extent such Effect disproportionately and adversely affects the Company and its Subsidiaries relative to other companies operating in the oil or natural gas industry (in which case, only the incremental disproportionate impact or impacts to the Company or its Subsidiaries shall be taken into account in determining whether there has been, or would reasonably be expected to be, a "Company Material Adverse Effect"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) general economic conditions (or adverse changes in such conditions) in the United States or conditions in the global economy generally;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) general conditions (or changes in such conditions) in the securities markets, capital markets, credit markets, currency markets or other financial markets in the United States or any other country or region in the world, including (A) changes in interest rates in the United States or any other country or region in the world and changes in exchange rates for the currencies of any countries and (B) any suspension of trading in securities (whether equity, debt, derivative or hybrid securities) generally on any securities exchange or over-the-counter market operating in the United States or any other country or region in the world;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) general conditions (or changes in such conditions) in the oil or natural gas industries or any other industries in which the Company or its Subsidiaries operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) political conditions (or changes in such conditions) in the United States or any other country or region in the world, or acts of war, sabotage or terrorism (including any escalation or general worsening of any such acts of war, sabotage or terrorism) in the United States or any other country or region in the world;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) earthquakes, hurricanes, tsunamis, tornadoes, floods, epidemics, pandemics, cyberattacks, mudslides, wildfires or other natural disasters, weather conditions and other force majeure events in the United States or any other country or region in the world;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) changes or proposed changes in Law after the date of this Agreement (or the interpretation thereof), including with respect to tariffs, or changes or proposed changes in GAAP or other accounting standards (or the interpretation thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the pendency or consummation of the transactions contemplated by this Agreement, including the identity of Parent, Merger Sub or their Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) changes in oil or natural gas prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) losses directly arising from the consummation of the hedging transactions set forth on <u>Section 6.1(a)</u> of the Company Disclosure Schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) changes in the Company's stock price or the trading volume of the Company's stock, in and of itself, or any failure by the Company to meet any estimates or expectations of the Company's revenue, earnings or other financial performance or results of operations for any period, in and of itself, or any failure by the Company to meet any internal budgets, plans or forecasts of its revenues, earnings or other financial performance or results of operations, in and of itself (but not, in each case, the underlying cause of such changes or failures, unless the underlying cause of such changes or failures would otherwise be excepted from the definition of a "Company Material Adverse Effect").

"<u>Company Performance-Based Restricted Share</u>" means a Company Restricted Share subject to vesting conditions based on specified stock price or other performance metrics.

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"<u>Company Real Property Lease</u>" means any lease agreement, together with any amendments, renewals and guarantees thereof or thereto, under which the Company or any Company Subsidiary uses or occupies or has the right to use or occupy any real property at which operations of the Company and the Company Subsidiaries are conducted, excluding, for the avoidance of doubt, the Mineral Interests.

"<u>Company Related Party</u>" means the Company and its Subsidiaries and any of their respective former, current or future officers, employees, directors, partners, stockholders, managers, members or Affiliates.

"<u>Company Restricted Share</u>" means any Company Common Share subject to vesting, repurchase or other lapse of restrictions issued under any of the Company Equity Plans.

"<u>Company Restricted Share Accrued Dividends</u>" means any dividends with respect to a Company Restricted Share that are accrued but unpaid as of immediately prior to the Effective Time.

"<u>Company Stockholders</u>" means holders of Company Common Shares in their respective capacities as such.

"<u>Company Termination Fee</u>" means an amount in cash equal to $6,800,000.00.

"<u>Company Time-Based Restricted Share</u>" means a Company Restricted Share subject only to vesting conditions based on a time or designated period of service with the Company.

"<u>Competition Laws</u>" means applicable supranational, national, federal, state, provincial or local Law designed or intended to prohibit, restrict or regulate actions having the purpose or effect of monopolizing or restraining trade or lessening competition in any country or jurisdiction, including the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder, the Sherman Act, the Clayton Act and the Federal Trade Commission Act, in each case, as amended.

"<u>Contract</u>" or "<u>Contracts</u>" means any of the agreements, arrangements, contracts, leases (whether for real or personal property), powers of attorney, notes, bonds, mortgages, indentures, deeds of trust, loans, evidences of Indebtedness, letters of credit, settlement agreements, franchise agreements and licenses to which in each case a Person is a party or to which any of the properties or assets of such Person or its Subsidiaries are subject that is legally binding (in each case, whether written or oral); <u>provided</u>, that "Contracts" shall not include any Benefit Plan.

"<u>Debt Commitment Letter</u>" means that certain executed debt commitment letter (including all exhibits, annexes, schedules and term sheets attached thereto), dated as of the date hereof, and the related fee letter, among WhiteHawk Income Corporation, a Delaware corporation, and the Debt Financing Sources party thereto, committing the Debt Financing Sources to provide funds equal to the applicable portion of the Required Amount set forth therein, subject to the terms and conditions set forth therein, copies of which have been provided to the Company on or prior to the date hereof (it being understood that each such copy is unredacted in the case of the commitment letter, and in the case of each such fee letter redacted solely as to fee amounts, "flex" terms and other commercially sensitive economic terms customarily redacted, and such redactions do not relate to any terms that may adversely affect the conditionality, enforceability, availability or termination of the Debt Commitment Letters or reduce the aggregate principal amount of the Debt Financing below the amount required to pay the applicable portion of the Required Amount set forth therein).

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"<u>Debt Financing Sources</u>" means the Persons that have committed to provide the Debt Financing (including the Persons party to any joinder agreements, credit agreements, purchase agreements, indentures or other definitive agreements relating thereto).

"<u>Environmental Laws</u>" means any and all Laws which (a) regulate or relate to the environment; Hazardous Substances; or waterways, groundwater, wetlands, drinking water, air, wildlife, plants or other natural resources; or (b) impose liability or responsibility with respect to any of the foregoing, including CERCLA, RCRA, the Clean Water Act, as amended (33 U.S.C. § 1251 et seq.), the Clean Air Act, as amended (42 U.S.C. § 7401 et seq.), and rules and regulations promulgated under each of the foregoing.

"<u>Environmental Permits</u>" means any permit, certificate, registration, notice, approval, identification number, license or other authorization required under any applicable Environmental Law.

"<u>Equity Interest</u>" means any share, capital stock, partnership, limited liability company, member or similar equity interest in any Person, and any option, share of restricted stock, restricted stock unit, stock appreciation right, phantom stock, performance share or unit, warrant, right or other security (including debt securities) convertible, exchangeable or exercisable into or for any such share, capital stock, partnership, limited liability company, member or similar equity interest.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

"<u>ERISA Affiliate</u>" means, with respect to any entity, trade or business, any other entity, trade or business that is, or was at the relevant time, a member of a group described in Section 414(b), (c), (m) or (o) of the Code or Section 4001(b)(1) of ERISA that includes or included the first entity, trade or business, or that is, or was at the relevant time, a member of the same "controlled group" as the first entity, trade or business pursuant to Section 4001(a)(14) of ERISA.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>Expenses</u>" includes all out-of-pocket expenses (including all fees and expenses of counsel, accountants, investment bankers, financing sources, experts and consultants to a party hereto and its Affiliates) incurred by a party or on its behalf in connection with or related to the authorization, preparation, negotiation, execution and performance of this Agreement and the transactions contemplated hereby, including the preparation, printing, filing and mailing of the Schedule TO, Schedule 14D-9 and the Offer Documents and all other matters related to the transactions contemplated by this Agreement.

"<u>GAAP</u>" means generally accepted accounting principles, as applied in the United States.

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"<u>Governmental Entity</u>" means any supranational, national, federal, state, county, municipal, local or foreign government or other political subdivision thereof, any court, any arbitral body, any entity or instrumentality exercising executive, legislative, judicial, regulatory, taxing, administrative, prosecutorial or arbitral functions of or pertaining to government, or any other governmental or quasi-governmental authority of any nature or any political or other subdivision or part of any of the foregoing or any self-regulatory organization, in each case of competent jurisdiction and with authority to act with respect to the matter in question.

"<u>Hazardous Substances</u>" means (i) any pollutant, contaminant, hazardous or toxic substance or material, or other substance, material or waste, whether solid, liquid or gas, that is subject to regulation, control or remediation under any Environmental Law, including any quantity of asbestos in any form, asbestos containing materials, urea formaldehyde, PCBs, radon gas, crude oil or any fraction thereof, all forms of natural gas, any petrochemical, hydrocarbon or petroleum, any product, byproduct or breakdown product thereof, or any derivative thereof or synthetic substitute therefor, and radioactive materials; and (ii) per- and polyfluoroalkyl substances.

"<u>HSR Act</u>" means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder.

"<u>Indebtedness</u>" means, with respect any Person: (i) (A) the amount of indebtedness of such Person for borrowed money and (B) indebtedness of such Person evidenced by any note, bond, debenture or other debt security, in the case of clauses (A) and (B), whether incurred, assigned, granted or unsecured (which, for the avoidance of doubt, shall not include accounts payable, accrued liabilities or "earn-outs"); (ii) obligations of such Person with respect to swaps, options, derivatives, hedging agreements, interest rate and currency swap arrangements and any other arrangements designed to protect against fluctuations in interest or currency rates be payable upon termination thereof (assuming they were terminated as of such date); and (iii) reimbursement obligations of such Person with respect to any performance bonds, bank overdrafts, letters of credit and similar charges (to the extent drawn) (which, for the avoidance of doubt, shall not include customer deposits, "earn-outs," escrow and other similar contingent payment obligations).

"<u>Intellectual Property</u>" means, with respect to any Person, all intellectual property rights and similar proprietary rights, whether registered or unregistered, including all (a) patents, patent applications, patentable inventions and other patent rights (including any divisions, continuations, continuations-in-part, reissues, revisions, substitutions, provisionals, renewals, extensions, reexaminations and interferences thereof), and all rights to claim priority from any of the foregoing, (b) trademarks, service marks, and trademark rights in trade dress, logos, slogans, brand names, trade names, taglines, corporate names and other indicia of origin, and all applications, registrations, renewals and extensions in connection therewith and all goodwill related thereto, (c) copyrights and copyrightable works, database and design rights, and corresponding rights in works of authorship (including Software), data collections, "moral" rights, mask works and designs, and all applications, registrations, renewals, extensions and reversions in connection therewith, (d) trade secret rights, know-how, inventions, processes, procedures, databases, technology, Software, ideas, discoveries, improvements, methods, techniques, formulae, drawings, designs, models, plans and corresponding rights in confidential and other non-public and proprietary information ("<u>Trade Secrets</u>"), (e) Internet domain names, electronic addresses, uniform resource locators and alphanumeric designations associated therewith and all registrations for any of the foregoing, and all social media identifiers and related accounts (collectively, "<u>Internet Domain Names</u>"); and (f) any corresponding or equivalent intellectual property rights recognized anywhere in the world.

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"<u>IRS</u>" means the United States Internal Revenue Service.

"<u>IT Assets</u>" means all technology, computer systems and communications systems, computers, Software, databases, hardware, servers, workstations, routers, hubs, switches, circuits, networks, data communications lines and all other information technology equipment (including communications equipment, terminals and hook-ups that interface with third-party Software or systems) owned, operated, licensed, leased or otherwise used by the Company or any Company Subsidiary.

"<u>Knowledge</u>" means (a) when used with respect to the Company and the Company Subsidiaries, the actual knowledge of the individuals listed in <u>Section 9.6(a)</u> of the Company Disclosure Schedule after reasonable inquiry of such individual's direct reports and (b) when used with respect to Parent or Merger Sub, the actual knowledge of the named executive officers of Parent after reasonable inquiry of such individual's direct reports.

"<u>Law</u>" means any international, national, provincial, state, municipal, local and common laws, treaties, statutes, ordinances, decrees, codes, bylaws, rules, regulations or other requirements, legally binding guidance, Orders, consent decrees, permits, policies, restrictions or licenses of any Governmental Entity, in each case, having the force of law.

"<u>Lien</u>" means any lien, mortgage, pledge, conditional or installment sale agreement, title or survey defect, encumbrance, covenant, condition, claim, restriction, charge, option or other third-party right, right of first refusal or first offer, easement, security interest, deed of trust, right-of-way, encroachment, occupancy right, preemptive right, community property interest or other restriction of any nature, whether voluntarily incurred or arising by operation of Law, including any restriction on the voting of any security, any restriction on the transfer of any security or other asset, and any restriction or defect on the possession, exercise or transfer of any other attribute of ownership of any asset.

"<u>Mineral Interests</u>" means all oil, gas and other fee mineral interests, together with any leasehold or royalty interests (including overriding royalty interests), owned by the Company or any Company Subsidiary.

"<u>NYSE</u>" means the New York Stock Exchange LLC.

"<u>Order</u>" means any judgment, order, decision, writ, injunction, decree, legal or arbitration award, settlement, stipulation, ruling, SEC requirement or settlement or consent agreement, in each case, with a Governmental Entity of competent jurisdiction that is binding on the applicable Person under applicable Law.

"<u>Parent Material Adverse Effect"</u> means any Effect that, individually or in the aggregate with all other Effects, would prevent the consummation of the Offer or the Merger prior to the Outside Date or materially delay consummation of the Offer or the Merger.

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"<u>Parent Related Party</u>" means Parent, Merger Sub, and any equity financing sources of Parent or Merger Sub and any of the foregoing's respective former, current or future Affiliates and any of the foregoing's respective former, current or future, direct or indirect, officers, directors, employees, Affiliates, stockholders, equity holders, managers, members, partners, agents, attorneys, advisors or other Representatives or any of the foregoing's respective successors or assigns.

"<u>Parent Termination Fee</u>" means an amount in cash equal to $6,800,000.00.

"<u>Permitted Liens</u>" means, with respect a Person, (a) Liens for Taxes not yet due and payable or that are being contested in good faith by appropriate Proceedings and in each case for which appropriate reserves have been established on or reflected in the consolidated financial statements of such Person in accordance with GAAP, (b) Liens in favor of vendors, carriers, warehousemen, repairmen, mechanics, workmen, materialmen, construction or similar liens or encumbrances, in each case, arising by operation of Law in the ordinary course of business for amounts not yet due and payable or that are being contested in good faith by appropriate Proceedings and for which appropriate reserves have been established on the consolidated financial statements of such Person in accordance with GAAP, (c) Liens arising from transfer restrictions under securities Laws, (d) with respect to any Company Leased Real Property, as applicable, all easements, encroachments, restrictions, rights-of-way and any other non-monetary title defects, whether or not of record, that would not reasonably be expected to, individually or in the aggregate, materially interfere with the ordinary conduct of the business of such Person and such Person's Subsidiaries as currently conducted or materially detract from the development, use, occupancy, value or marketability of the affected property, (e) zoning, building, land use, environmental regulations and other similar restrictions promulgated by any Governmental Entity, that, in the case of Company Leased Real Property, would not reasonably be expected to, individually or in the aggregate, materially interfere with the ordinary conduct of the business of such Person and such Person's Subsidiaries as currently conducted or materially detract from the development, use, occupancy, value or marketability of the affected property, (f) Liens arising from the ordinary course of business with respect to surety bonds and supporting letters of credit, (g) non-exclusive licenses of Intellectual Property granted to customers in the ordinary conduct of the business of such Person or such Person's Subsidiaries or (h) such other non-monetary Liens which would not, individually or in the aggregate, materially interfere with the ordinary conduct of business of such Person and such Person's Subsidiaries or, if the same affect Company Leased Real Property, as applicable, materially detract from the development, use, occupancy, value or marketability of the affected property.

"<u>Person</u>" means an individual, corporation, limited liability company, partnership, association, trust, unincorporated organization, other entity or group (as defined in Section 13(d) of the Exchange Act).

"<u>Personal Information</u>" means any information that, alone or in combination with other information held by or on behalf of the Company or any of the Company Subsidiaries, identifies, or could reasonably be used to identify an individual or household, and any other personal information that is subject to or defined by any applicable Laws, in addition to any similar term provided by Privacy Requirements.

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"<u>Privacy Requirements</u> " means all applicable Laws relating to the Processing of any Personal Information, including any and all applicable Laws relating to breach notification, the use of biometric identifiers, or the use of Personal Information for marketing purposes and all of the Company's and the Company Subsidiaries' policies, notices and contractual obligations relating to the Processing of any Personal Information.

"<u>Proceedings</u>" means all actions, suits, claims (or counterclaims), hearings, arbitrations, investigations, inquiries, litigations, mediations, grievances, audits, examinations or other proceedings, in each case, by or before any Governmental Entity.

"<u>Processing</u>" means any operation or set of operations performed on Personal Information, whether or not by automated means, including but not limited to receipt, collection, compilation, use, storage, combination, sharing, safeguarding, disposal, erasure, destruction, disclosure or transfer (including cross-border transfer).

"<u>RCRA</u>" means the Solid Waste Disposal Act (as amended by the Resource Conservation and Recovery Act), as amended (42 U.S.C. § 6901 et seq.), and the rules and regulations promulgated thereunder.

"<u>Related Party</u>" means a Company Related Party or a Parent Related Party, as applicable.

"<u>Representatives</u>" means, as to any Person, such Person's directors, officers, employees, controlled Affiliates, accountants, consultants, legal counsel, investment bankers, advisors, agents and other representatives.

"<u>Sanctioned Person</u>" means at any time any Person: (i) listed on any Sanctions-related list of designated or blocked persons; (ii) a Governmental Entity of, resident in, or organized under the laws of a country or territory that is the subject of comprehensive restrictive Sanctions from time to time (which includes, as of the date of this Agreement, Belarus, Cuba, Iran, North Korea, Russia, Syria, Venezuela and the Crimea, Donetsk and Luhansk regions of Ukraine); or (iii) majority-owned or controlled by any of the foregoing.

"<u>Sanctions</u>" means those trade, economic and financial sanctions Laws, regulations, embargoes, and restrictive measures administered or enforced by (i) the United States (including the U.S. Treasury Office of Foreign Assets Control), (ii) the European Union and enforced by its member states, (iii) the United Nations, and (iv) Her Majesty's Treasury.

"<u>Sarbanes-Oxley Act</u>" means the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations promulgated thereunder.

"<u>Schedule 14D-9</u>" means a Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the Offer (together with all amendments and supplements thereto, and including all exhibits thereto, but not including any "stop, look and listen" communication by the Company Board or any committee thereof to the Company Stockholders pursuant to Rule 14d-9(f) of the Exchange Act).

"<u>SEC</u>" means the U.S. Securities and Exchange Commission.

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"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Software</u>" means all: (i) software and computer programs of any type, including all software implementations of algorithms, models and methodologies, whether in source code or object code; and (ii) documentation and other materials related to any of the foregoing, including user manuals and training materials.

"<u>Subsidiary</u>" of Parent, the Company or any other Person means any corporation, partnership, joint venture or other legal entity of which Parent, the Company or such other Person, as the case may be, owns, directly or indirectly, a majority of the capital stock or other Equity Interests the holders of which are generally entitled to vote for the election of the board of directors or other governing body of such corporation, limited liability company, partnership, joint venture or other legal entity, or otherwise owns, directly or indirectly, such capital stock or other Equity Interests that would confer control of any such corporation, limited liability company, partnership, joint venture or other legal entity (which shall include, but not be limited to, the control conferred by serving as managing member, general partner or similar such position with respect to any such entity), any Person that would otherwise be deemed a "subsidiary" under Rule 12b-2 promulgated under the Exchange Act or, with respect the Company, any entity that is a "Subsidiary" (as defined above) of the Company as of the date hereof; <u>provided</u>, <u>however</u>, that in no event shall any unconsolidated joint venture of the Company be deemed a Subsidiary of the Company for purposes of this Agreement.

"<u>Superior Company Proposal</u>" means a bona fide, unsolicited, written Company Acquisition Proposal (except the references therein to "15% or more" shall be replaced by "more than 50%") which did not result from or arise out of a breach of <u>Section 6.3</u> (other than a *de minimis* breach) made by a Third Party which the Company Board has determined, in the good faith judgment of the Company Board (after consultation with its financial advisors and outside legal counsel), taking into account all of the terms and conditions of such Company Acquisition Proposal (including any termination or break-up fees, expense reimbursement provisions and conditions to consummation), and after taking into account all financial, legal, regulatory, and other aspects of such Company Acquisition Proposal (including the financing terms and the ability of such Third Party to finance such Company Acquisition Proposal) and such other factors as the Company Board considers in good faith to be appropriate (including the conditionality, timing and likelihood of consummation of such Company Acquisition Proposal and/or any financing thereof), (i) would result in a transaction that is more favorable from a financial point of view to the Company Stockholders (in their capacity as such) than the Merger and the other transactions contemplated by this Agreement and (ii) if accepted, is reasonably likely to be consummated (or, alternatively, at least as likely as the Merger to be consummated).

"<u>Tax Return</u>" means any report, return (including information return), claim for refund, election, notice, estimated tax filing, declaration, statement, form or other document required to be filed or actually filed with a Governmental Entity with respect to Taxes, including any schedule or attachment thereto, and including any amendments thereof.

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"<u>Taxes</u>" means any and all U.S. federal, state, local or foreign taxes, fees, levies, duties, tariffs, imposts and other similar charges imposed by any Governmental Entity, including any income,gross income, estimated, franchise, windfall or other profits, gross receipts, property (real, tangible or intangible), sales, use, escheat, unclaimed property, net worth, capital stock, alternative or add-on minimum, environmental, use, payroll, employment, social security (or similar, including FICA), workers' compensation, unemployment compensation, disability, severance, excise, withholding, *ad valorem*, stamp, transfer, value-added, gains tax or other tax, fee or other like assessment or charge of any kind whatsoever in the nature of a tax, including any interest, penalty, fine, assessment or addition to any of the foregoing.

"<u>Third Party</u>" shall mean any Person other than the Company, Parent or Merger Sub.

"<u>Transfer Taxes</u>" means all transfer, documentary, sales, use, stamp, registration and other similar Taxes, and all conveyance fees, recording charges and other similar fees and charges incurred in connection with the consummation of the Merger and the other transactions contemplated by this Agreement.

"<u>Willful Breach</u>" shall mean a material breach of this Agreement that is the consequence of a deliberate and intentional act or omission by the breaching party with the actual knowledge that the taking of such action or failure to take such action would reasonably be expected to result in or constitute such a material breach (it being agreed by the parties hereto that Merger Sub's failure to purchase all Company Common Shares validly tendered (and not validly withdrawn) when required to do so in accordance with the terms of this Agreement shall be deemed to be a "Willful Breach" by Parent and Merger Sub).

9.7 <u>Terms Defined Elsewhere</u>. The following terms are defined elsewhere in this Agreement, as indicated below:

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| | |
|:---|:---|
| **Term** | **Section** |
| Agreement | Preamble |
| Alternative Financing | 6.16(b)(i) |
| Antitrust Counsel Only |  |
| Material | 6.4(d) |
| Applicable Date | Article 4 |
| Book-Entry Shares | 3.2(c)(ii) |
| Cancelled Shares | 3.1(c) |
| Capitalization Date | 4.2(a) |
| Certificate of Merger | 2.2 |
| Certificates | 3.2(c)(i) |
| Closing | 2.2 |
| Closing Date | 2.2 |
| Company | Preamble |
| Company 401(k) Plan | 6.7(e) |
| Company Advisor | 4.22(a) |
| Company Board | Recitals |
| Company Board Approval | 4.3 |
| Company Board |  |
| Recommendation | Recitals |

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| | |
|:---|:---|
|  Company Bylaws | 4.1(b) |
|  Company Charter | 4.1(b) |
|  Company Disclosure |  |
|  Schedule | Article 4 |
|  Company Financial |  |
|  Statements | 4.7(b) |
|  Company Leased Real |  |
|  Property | 4.18(b) |
|  Company Material |  |
|  Contract | 4.13(a) |
|  Company Notice | 6.3(e) |
|  Company Notice Period | 6.3(e) |
|  Company Permits | 4.6(a) |
|  Company Preferred Shares | 4.2(a) |
|  Company SEC Documents | 4.7(a) |
|  Company Common Shares | Recitals |
|  Company Subsidiary | 4.1(a) |
|  Confidential Information | 6.2(b) |
|  Confidentiality Agreement | 6.2(b) |
|  Continuing Employee | 6.7(a) |
|  Contracting Party | 9.17 |
|  Covered Persons | 6.8(a) |
|  D&O Insurance | 6.8(c) |
|  DCP Unit Consideration | 3.4(c) |
|  Debt Financing | 5.12(a) |
|  DGCL | Recitals |
|  Dissenting Shares | 3.3 |
|  Effective Time | 2.2 |
|  Effect | 9.6 |
|  Enforceability Exceptions | 4.3 |
|  Equity Commitment Letter | Recitals |
|  Equity Financing | 5.12(a) |
|  Exchange Fund | 3.2(a) |
|  Existing Indemnification |  |
|  Agreements | 6.8(a) |
|  Expiration Time | 1.1(d)(i) |
|  Financing | 5.12(a) |
|  Financing Letters | 5.12(a) |
|  Financing Purposes | 5.12(b) |
|  Insurance Policies | 4.19 |
|  Investor | Recitals |
|  Investors | Recitals |
|  Internet Domain Names | 9.6 |
|  Labor Agreement | 4.12(c)(i) |
|  Letter of Transmittal | 3.2(c)(i) |

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| | |
|:---|:---|
|  Limited Guarantee | 5.12(f) |
|  Merger | Recitals |
|  Merger Consideration | 3.1(a) |
|  Merger Sub | Preamble |
|  Minimum Condition | 1.1(a)(i) |
|  New Plan | 6.7(d) |
|  Non-Recourse Party | 9.17 |
|  Notice of Intervening |  |
|  Event Period | 6.3(f) |
|  Offer | Recitals |
|  Offer Documents | 1.1(f)(i) |
|  Offer Price | Recitals |
|  Offer to Purchase | 1.1(a) |
|  Old Plans | 6.7(d) |
|  Outside Date | 8.1(b) |
|  Parent | Preamble |
|  Parent Disclosure Schedule | Article 5 |
|  Paying Agent | 3.2(b) |
|  Payoff Letter | 6.14 |
|  Performance-Based |  |
|  Restricted Share |  |
|  Consideration | 3.4(b) |
|  Restricted Cash Award | 3.4(a) |
|  Required Amount | 5.12(b) |
|  Schedule 14D-9 | 1.2(a) |
|  Schedule TO | 1.1(f)(i) |
|  Section 16 | 6.10 |
|  Significant Company |  |
|  Subsidiary | 4.1(a) |
|  Solvent | 5.10 |
|  Specified Stockholders | Recitals |
|  Stockholder List Date | 1.2(b) |
|  Surviving Corporation | 2.1(a) |
|  Tender and Support |  |
|  Agreements | Recitals |
|  Termination Condition | Annex A |
|  Trade Secrets | 9.6 |

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9.8 <u>Headings</u>. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

9.9 <u>Severability</u>. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any such term or other provision is invalid, illegal or

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incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties hereto as closely as possible in an mutually acceptable manner that will achieve, to the maximum extent possible, the economic, business and other purposes of such void or unenforceable provision.

9.10 <u>Entire Agreement</u>. This Agreement (together with the Annexes, Parent Disclosure Schedule and Company Disclosure Schedule and the other documents delivered pursuant hereto), the Tender and Support Agreements and the Confidentiality Agreement constitute the entire agreement of the parties hereto and supersede all prior agreements (except the Confidentiality Agreement) and understandings, both written and oral, among the parties hereto, or any of them, with respect to the subject matter hereof.

9.11 <u>Assignment</u>. This Agreement shall not be assigned by any party by operation of Law or otherwise without the prior written consent of the other parties hereto; *provided*, that each of Parent and Merger Sub shall have the right, without the prior written consent of the Company, to assign all or any portion of their respective rights, interests and obligations hereunder to a wholly owned direct or indirect Subsidiary of Parent or to any of their respective Affiliates, or to any debt financing sources (including the Debt Financing Sources) for purposes of creating a security interest herein or otherwise assigning as collateral in respect of any debt financing (including the Debt Financing), but no such assignment shall relieve Parent or Merger Sub of any of its obligations hereunder. Subject to the preceding sentence, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Any purported assignment in violation of this Agreement will be void *ab initio*.

9.12 <u>No Third-Party Beneficiaries</u>. This Agreement shall be binding upon and inure solely to the benefit of each party hereto and their respective successors and assigns, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement, other than (a) from and after the Effective Time, the right of the holders of Company Common Shares to receive the Merger Consideration, and the rights of the holders of Company Equity Awards to receive the consideration therefor, in accordance with the terms of this Agreement, (b) any Persons entitled to indemnification, advancement of expenses, exculpation or insurance benefits under the provisions of <u>Section 6.8</u> following the Effective Time, with respect to such provisions and (c) as set forth in or contemplated by the terms of <u>Section 8.2</u>, <u>Section 8.3</u> and <u>Section 9.17</u>. In addition to the foregoing, the Debt Financing Sources shall be third party beneficiaries of, and shall be entitled to enforce the provisions of <u>Section 8.3</u> (solely to the extent that it relates to the Debt Financing Sources), the last sentence of <u>Section 9.1, Section</u> <u>9.11,</u> this <u>Section 9.12</u>, <u>Section 9.14</u>, and <u>Section 9.16</u>(in each case, solely to the extent that such section relates to the Debt Financing Sources). The representations and warranties in this Agreement are the product of negotiations among the parties hereto and are for the sole benefit of the parties hereto.

9.13 <u>Mutual Drafting; Interpretation</u>. Each party hereto has participated in the drafting of this Agreement, which each party acknowledges is the result of extensive negotiations between the parties hereto. If an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision. For purposes of this Agreement, whenever the context requires: the singular number shall include the plural,

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and vice versa; the masculine gender shall include the feminine and neuter genders; the feminine gender shall include the masculine and neuter genders; and the neuter gender shall include masculine and feminine genders. As used in this Agreement, the words "include" and "including" and variations thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words "without limitation." Except as otherwise indicated, all references in this Agreement to "Sections" and "Annexes" are intended to refer to Sections of this Agreement and Annexes to this Agreement. The Parent Disclosure Schedule, the Company Disclosure Schedule and exhibits attached to this Agreement constitute a part of this Agreement and are incorporated herein for all purposes. The words "hereof," "hereto," "hereby," "herein," "hereunder" and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular Section or Article in which such words appear. All references in this Agreement to "$" are intended to refer to U.S. dollars. Unless otherwise specifically provided for herein, the term "or" shall not be deemed to be exclusive. Disclosure of any item on the Parent Disclosure Schedule or the Company Disclosure Schedule by reference to any particular Section or Subsection of this Agreement shall be deemed to constitute disclosure with respect to any other Section or Subsection of this Agreement if the relevance of such disclosure to such other Section or Subsection is reasonably apparent on the face of such disclosure. Except as otherwise indicated, "made available," "provided to" or terms of similar import mean (i) made continuously available without removal beginning at least two Business Days prior to the date hereof to Parent and its advisors in the electronic data room maintained prior to the date hereof by the Company for purposes of the transactions contemplated by this Agreement, or (ii) as publicly filed or furnished by the Company with the SEC at least two Business Days prior to the date hereof.

9.14 <u>Governing Law; Consent to Jurisdiction; Waiver of Trial by Jury</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement and all claims and causes of action arising in connection herewith shall be governed by, and construed in accordance with, the Laws of the State of Delaware, without regard to Laws that may be applicable under conflicts of laws principles (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of Delaware; <u>provided</u>, <u>however</u>, that in any action brought against any of Parent's Debt Financing Sources pursuant to this Agreement, the foregoing shall be governed by, and construed in accordance with, the laws of the State of New York, including its statutes of limitation, without giving effect to any choice of Law or conflict of Law rules or provisions (whether of the State of New York or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the parties hereto irrevocably agrees that any Proceeding with respect to this Agreement and the rights and obligations arising in connection herewith or any claim or cause of action arising in connection with this Agreement or the negotiation hereof, and any Proceeding for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by any other party hereto or its successors or assigns, will be brought and determined exclusively in the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of Chancery does not have subject matter jurisdiction over a particular matter, any state or federal court within the State of Delaware). Each of the parties hereto hereby irrevocably submits with regard to any such Proceeding for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action relating to or arising

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from this Agreement or any of the transactions contemplated hereby or the negotiation hereof in any court other than the aforesaid courts. Each of the parties hereto hereby irrevocably waives, and agrees not to assert as a defense, counterclaim or otherwise, in any Proceeding with respect to this Agreement or the transactions contemplated hereby, (i) any claim that it is not personally subject to the jurisdiction of the above named courts for any reason other than the failure to serve in accordance with this <u>Section 9.14</u>, (ii) any claim that it or its property is exempt or immune from the jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (iii) to the fullest extent permitted by applicable Law, any claim that (A) the Proceeding in such court is brought in an inconvenient forum, (B) the venue of such Proceeding is improper or (C) this Agreement, or the subject matter hereof, may not be enforced in or by such courts. Each of the parties hereto agrees that a final judgment in any such Proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable Law. Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in <u>Section</u> <u>9.5</u> and agrees that service made in such manner shall have the same legal force and effect as if served upon such party personally within the State of Delaware. Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT AND ANY OF THE AGREEMENTS DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (II) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS, (III) IT MAKES SUCH WAIVERS VOLUNTARILY AND (IV) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS <u>SECTION</u> <u>9.14(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything in this Agreement to the contrary, each of the parties hereto agrees that (i) it will not bring or support any Proceedings against the Debt Financing Sources arising out of or relating to this Agreement, including any dispute arising out of relating in any way to the Debt Financing or the performance thereof, in any forum other than a court of competent jurisdiction located within the Borough of Manhattan in the City of New York, New York, whether a state or Federal court and (ii) the provisions of this <u>Section 9.14</u> relating to the waiver of jury trial shall apply to any such Proceedings. The provisions of this <u>Section 9.14</u> shall be enforceable by each Debt Financing Source, its Affiliates and their respective successors and permitted assigns.

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9.15 <u>Counterparts</u>. This Agreement may be signed in any number of counterparts, including electronic signature and transmission methods, including .pdf files or DocuSign, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when the Company, on the one hand, and Parent and Merger Sub, on the other hand, shall have received a counterpart hereof signed by the other party hereto. Until and unless the Company, on the one hand, and Parent and Merger Sub, on the other hand, shall have received a counterpart hereof signed by the other party hereto, this Agreement shall have no effect and no party shall have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication). The exchange of a fully executed Agreement (in counterparts or otherwise) by electronic transmission in .pdf format, or via DocuSign shall be sufficient to bind the parties hereto to the terms and conditions of this Agreement.

9.16 <u>Specific Performance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties hereto agree that if the Company, Parent or Merger Sub were to breach any of their respective obligations under this Agreement (including failing to take such actions as are required of them hereunder to consummate the Merger, the Offer and the other transactions contemplated hereby) in accordance with its specified terms or otherwise breach such provision, irreparable damage would occur, no adequate remedy at law would exist and damages would be difficult to determine, and accordingly, prior to any valid termination of this Agreement in accordance with <u>Section 8.1,</u> subject to <u>Section 9.16(b),</u> (a) the parties hereto shall be entitled to an injunction or injunctions to prevent or remedy breaches of this Agreement and to specific performance of the terms hereof, in each case in the Delaware Court of Chancery or, if such court shall not have jurisdiction, in any federal court located in the State of Delaware or any Delaware state court, this being in addition to any other remedy to which they are entitled at law or in equity, (b) the parties hereto waive any requirement for the securing or posting of any bond or other security in connection with the obtaining of any specific performance or injunctive relief and (c) the parties hereto will waive, in any action for specific performance, the defense of adequacy of a remedy at law. Subject to <u>Section 8.3(e),</u> either party's pursuit of specific performance at any time will not be deemed an election of remedies or waiver of the right to pursue any other right or remedy to which such party may be entitled, including the right to pursue remedies for liabilities or damages incurred or suffered by a party in the case of a breach of this Agreement involving Willful Breach or fraud.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It is explicitly agreed that the Company shall have the right to an injunction, specific performance or other equitable remedies in connection with enforcing Parent's and Merger Sub's obligations to consummate the Offer (including, subject to the satisfaction (or to the extent waivable, the waiver) of the conditions to the Offer set forth in <u>Annex A</u>, Merger Sub's obligation to accept for payment, and pay for, the Company Common Shares tendered in the Offer) and the Merger (including, subject to the satisfaction (or to the extent waivable, the waiver) of the conditions to the Merger set forth in <u>Article 7</u> (other than those conditions that by their terms are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions at the Closing), Parent's obligation to pay or cause to be paid the Merger Consideration and the consideration payable in respect of Company Equity Awards as set forth herein) and cause the Equity Financing to be funded to fund the Offer and the Merger (including to cause Parent to enforce the obligations of any guarantor under the Equity Commitment Letters in order to cause the Equity Financing to be timely completed in accordance with and subject to the terms and conditions set forth in the Equity Commitment Letters), in each case in the event and only in the event that each of the following requirements have been satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the conditions set forth in <u>Annex A</u> have been satisfied or (if permitted by applicable Law) waived at or prior to the Expiration Time;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no party hereto shall have validly terminated this Agreement in accordance with <u>Article 8;</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Debt Financing has been funded in accordance with the terms thereof or will or would be funded in accordance with the terms thereof so as to enable Parent and Merger Sub to comply with their obligations under <u>Section 1.1(e),</u> if the Equity Financing were funded in accordance with the terms thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Company has irrevocably confirmed in writing to Parent that the Company stands ready, willing and able to effect the Closing if specific performance is granted and the Equity Financing and Debt Financing are funded; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Merger Sub shall have failed to consummate (as defined in Section 251(h) of the DGCL) the Offer in accordance with <u>Article 1</u> following written notice from the Company in accordance with clause (iv) above.

9.17 <u>Non-Recourse</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except for the liabilities and obligations of the parties to the Confidentiality Agreement, the Debt Commitment Letters, the Equity Commitment Letters, the Limited Guarantee and the Tender and Support Agreements under any of the foregoing Contracts to which they are expressly identified as parties, all claims, obligations, liabilities, or causes of action (whether in contract or in tort, in law or in equity, or granted by statute) that may be based upon, in respect of, arise under, out or by reason of, be connected with, or relate in any manner to this Agreement, the Offer or the Merger, or the negotiation, execution, or performance of this Agreement (including any representation or warranty made in, in connection with, or as an inducement to, this Agreement), may be made only against (and such representations and warranties are those solely of) the Persons that are expressly identified as the parties in the preamble to this Agreement (the "<u>Contracting Parties</u>"). No Person who is not a Contracting Party, including any current, former or future incorporator, member, partner, manager, director, officer, stockholder, equityholder, Affiliate, Representative or assignee of, and any financial advisor or lender to, any Contracting Party, or any current, former or future incorporator, member, partner, manager, director, officer, stockholder, equityholder, Affiliate, Representative or assignee of any of the foregoing and the Debt Financing Sources, the Investors and the Guarantor (each, a "<u>Non-Recourse Party</u>"), shall have any liability (whether in contract or in tort, in law or in equity, or granted by statute) for any claims, causes of action, obligations, or liabilities arising under, out of, in connection with, or related in any manner to this Agreement, the Offer or the Merger or based on, in respect of, or by reason of this Agreement, the Offer or the Merger or the negotiation, execution, performance, or breach of this Agreement (other than, in each case, the liabilities and obligations of the parties to the Confidentiality Agreement, the Debt Commitment Letters, the Equity Commitment Letters,

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the Limited Guarantee and the Tender and Support Agreements under any of the foregoing Contracts to which they are expressly identified as parties), and, to the maximum extent permitted by applicable Laws, each Contracting Party, on behalf of itself and its Affiliates, hereby waives and releases all such liabilities, claims, causes of action, and obligations against any such Non-Recourse Party. Without limiting the foregoing, to the maximum extent permitted by applicable Laws, except as provided in the Confidentiality Agreement, the Debt Commitment Letters, the Equity Commitment Letters, the Limited Guarantee and the Tender and Support Agreements, (i) each Contracting Party hereby waives and releases any and all rights, claims, demands, or causes of action that may otherwise be available at law or in equity, or granted by statute, to avoid or disregard the entity form of a Contracting Party or otherwise impute or extend the liability of a Contracting Party to any Non-Recourse Party, whether based on statute or based on theories of equity, agency, control, instrumentality, alter ego, domination, sham, single business enterprise, piercing the veil, unfairness, undercapitalization, or otherwise; and (ii) each Contracting Party disclaims any reliance upon any Non-Recourse Party with respect to the performance of this Agreement or any representation or warranty made in, in connection with, or as an inducement to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting the foregoing, subject to the rights of the parties to the Debt Commitment Letter under the terms thereof, none of the parties hereto, solely in their respective capacities as parties to this Agreement, nor or any of their respective Related Parties, shall have any rights or claims against Debt Financing Sources, solely in their respective capacities as lenders in connection with the Debt Financing, and the Debt Financing Sources, solely in their respective capacities as such lenders, shall not have any rights or claims against any party or any of their respective Related Parties in connection with this Agreement or the Financing, whether at law or in equity, in contract, in tort or otherwise.

[*Signature page follows*]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the date first written above by their respective officers thereunto duly authorized.

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| | |
|:---|:---|
| **WHITEHAWK ACQUISITION, INC.** | **WHITEHAWK ACQUISITION, INC.** |
| By: | /s/ Jeffrey Slotterback |
|  | Name: Jeffrey Slotterback |
|  | Title: President |
| **WHITEHAWK MERGER SUB, INC.** | **WHITEHAWK MERGER SUB, INC.** |
| By: | /s/ Jeffrey Slotterback |
|  | Name: Jeffrey Slotterback |
|  | Title: President |
| **PHX MINERALS INC.** | **PHX MINERALS INC.** |
| By: |  |
|  | Name: |
|  | Title: |

---

[*Signature Page to Agreement and Plan of Merger*]

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IN WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the date first written above by their respective officers thereunto duly authorized.

---

| | |
|:---|:---|
| **WHITEHAWK ACQUISITION, INC.** | **WHITEHAWK ACQUISITION, INC.** |
| By: |  |
|  | Name: |
|  | Title: |
| **WHITEHAWK MERGER SUB, INC.** | **WHITEHAWK MERGER SUB, INC.** |
| By: |  |
|  | Name: |
|  | Title: |
| **PHX MINERALS INC.** | **PHX MINERALS INC.** |
| By: | /s/Chad L. Stephens |
|  | Name: Chad L. Stephens |
|  | Title: President and Chief Executive Officer |

---

[*Signature Page to Agreement and Plan of Merger*]

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**<u>Annex A</u>** 

**Conditions to the Offer** 

The obligation of Merger Sub to accept for payment and pay for Company Common Shares validly tendered (and not withdrawn) pursuant to the Offer is subject to the satisfaction of the Minimum Condition and the additional conditions set forth in clauses (a) through (g) below. Accordingly, notwithstanding any other provision of the Offer or this Agreement to the contrary, Merger Sub shall not be required to accept for payment or (subject to any applicable rules and regulations of the SEC, including Rule 14e-1(c) under the Exchange Act) pay for, and may delay the acceptance for payment or (subject to any such rules and regulations) the payment for, any tendered shares of Company Common Shares, and may terminate the Offer at any scheduled Expiration Time or amend or terminate the Offer in each case as permitted by this Agreement, if: (i) the Minimum Condition shall not be satisfied by the then-scheduled Expiration Time of the Offer; or (ii) any of the following additional conditions shall not be satisfied:

(a) (i) no Governmental Entity having jurisdiction over any of the parties hereto shall have (A) enacted, issued or promulgated any Law that is in effect as of immediately prior to the Expiration Time that has the effect of making the Offer, the acquisition of Company Common Shares by Parent or Merger Sub, or the Merger illegal or which has the effect of prohibiting or otherwise preventing the consummation of the Offer, the acquisition of Company Common Shares by Parent or Merger Sub, or the Merger, or (B) issued or granted any Order that is in effect as of immediately prior to the Expiration Time that has the effect of making the Offer, the acquisition of Company Common Shares by Parent or Merger Sub, or the Merger illegal or which has the effect of prohibiting or otherwise preventing the consummation of the Offer, the acquisition of Company Common Shares by Parent or Merger Sub, or the Merger or (ii) there shall not be pending or threatened by any Governmental Entity any action, inquiry, request for information, or investigation, challenging or seeking to restrain, prohibit, prevent, enjoin, investigate, alter or delay the consummation of the Offer, the acquisition of Company Common Shares by Parent or Merger Sub, or the Merger;

(b) (i) (A) each of the representations and warranties contained in <u>Section 4.3</u>, and <u>Section 4.11(k)</u> shall be true in all respects when made and as of immediately prior to the Expiration Time as if made at and as of such time (other than any such representation or warranty that is made as of a specified date, which need only be true in all respects as of such specified date), (B) the representation and warranty contained in <u>Section 4.10(b)</u> shall be true in all respects when made, (C) the representations and warranties contained in <u>Sections 4.2(a)</u>, <u>(b)</u>, and <u>(c)</u> shall be true in all respects when made and as of immediately prior to the Expiration Time as if made at and as of such time (other than such representation or warranty that is made as of a specified date, which need only be true in all respects as of such specified date), except that any *de minimis* inaccuracies shall be disregarded, and (D) each of the representations and warranties in <u>Section 4.1</u>, <u>Section 4.2(d)</u>, the first sentence of <u>Section 4.4</u>, <u>Section 4.20</u>, <u>Section 4.22</u> and <u>Section 4.23</u>, to the extent not qualified as to materiality or "Company Material Adverse Effect," shall be true in all material respects, and to the extent so qualified shall be true in all respects, when made and as of immediately prior to the Expiration Time as if made at and as of such time (other than any of the foregoing representations and warranties referenced in this clause "(D)" that is made only as of a specified date, which need only be true, to the extent not qualified as to materiality or "Company

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Material Adverse Effect," in all material respects, and to the extent so qualified, in all respects, in each case as of such specified date), and (ii) each of the representations and warranties in <u>Article 4</u> (other than the representations and warranties referred to in clause "(i)" of this clause "(b)"), disregarding any materiality or Company Material Adverse Effect qualifications contained therein, shall be true when made and as of immediately prior to the Expiration Time as if made at and as of such time (other than any of the foregoing representations and warranties referenced in this clause "(ii)" that are made only as of a specified date, which need only to be true as of such specified date), except where the failure to be so true and correct would not have, or reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect;

(c) the Company shall have complied with or performed in all material respects its agreements, obligations and covenants required to be complied with or performed by it prior to the Expiration Time under the Agreement;

(d) since the date of the Agreement, there shall not have been any Effect that has had, or would reasonably be expected to have, a Company Material Adverse Effect;

(e) the Company shall have delivered to Parent a certificate, signed on behalf of the Company by its chief executive officer, certifying that the conditions set forth in clauses (b), (c) and (d) shall have been satisfied;

(f) the Company Board shall not have effected a Company Change of Board Recommendation; and

(g) the Agreement shall not have been terminated in accordance with its terms (the "<u>Termination Condition</u>").

The foregoing conditions are for the sole benefit of Parent and Merger Sub, may be asserted by Parent or Merger Sub and may be waived by Parent or Merger Sub in whole or in part at any time and from time to time in the sole discretion of Parent or Merger Sub, subject in each case to the terms of the Agreement and the applicable rules and regulations of the SEC and except for the Minimum Condition and the Termination Condition (each of which may only be waived with the prior written consent of the Company). The failure by Parent or Merger Sub at any time to exercise any of the foregoing rights shall not be deemed a waiver of any such right and, each such right shall be deemed an ongoing right which may be asserted at any time and from time to time.

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## Exhibit 10.6

**Exhibit 10.6** 

**<u>FORM OF INDEMNIFICATION AND ADVANCEMENT AGREEMENT</u>**

This Indemnification and Advancement Agreement ("<u>Agreement</u>") is made as of [*insert date*] by and between [WhiteHawk Minerals Corp.], a Delaware corporation (the "<u>Company</u>"), and [*insert name*], [a member of the Board of Directors/an officer] of the Company ("<u>Indemnitee</u>"). This Agreement supersedes and replaces any and all previous agreements between the Company and Indemnitee covering indemnification and advancement of expenses.

**RECITALS** 

WHEREAS, the Board of Directors of the Company (the "<u>Board</u>") believes that highly competent persons have become more reluctant to serve publicly-held corporations as directors, officers, or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification and advancement of expenses against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the Company;

WHEREAS, the Board has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself. The Company's Amended and Restated Bylaws (as further amended and/or restated, the "<u>Bylaws</u>") and Amended and Restated Certificate of Incorporation (as further amended and/or restated, the "<u>Certificate of Incorporation</u>") require indemnification of the officers and directors of the Company. Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (the "<u>DGCL</u>"). The Bylaws, the Certificate of Incorporation, and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and its directors, officers, and other persons with respect to indemnification and advancement of expenses;

WHEREAS, the uncertainties relating to such insurance, to indemnification, and to advancement of expenses may increase the difficulty of attracting and retaining such persons;

WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company and its stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified;

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WHEREAS, this Agreement is a supplement to, and in furtherance of, the Bylaws, the Certificate of Incorporation and any resolutions adopted pursuant thereto, as well as any rights of Indemnitee under any directors' and officers' liability insurance policy, and is not a substitute therefor, and does not diminish or abrogate any rights of Indemnitee thereunder; and

WHEREAS, Indemnitee does not regard the protection available under the Bylaws, the Certificate of Incorporation, and available insurance as adequate in the present circumstances, and may not be willing to serve or continue to serve as a/an [officer/director/employee/agent] without adequate additional protection, and the Company desires Indemnitee to serve or continue to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that Indemnitee be so indemnified and be advanced expenses.

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

Section 1. <u>Services to the Company.</u> Indemnitee agrees to serve as [a/an] [director/officer] of the Company. Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law). This Agreement does not create any obligation on the Company to continue Indemnitee in such position and is not an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee.

Section 2. <u>Definitions.</u> As used in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Agent</u>" means any person who is authorized by the Company or an Enterprise to act for or represent the interests of the Company or an Enterprise, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A "<u>Change in Control</u>" occurs upon the earliest to occur after the date of this Agreement of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Acquisition of Stock by Third Party</u>. Any Person (as defined below) becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company's then outstanding securities unless the change in relative beneficial ownership of the Company's securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Change in Board of Directors</u>. During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 2(b)(i), 2(b)(iii) or 2(b)(iv) of this Agreement) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Corporate Transactions</u>. The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Liquidation</u>. The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>Other Events</u>. There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. For purposes of this Section 2(b), the following terms have the following meanings:

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| | |
|:---|:---|
| 1 | "<u>Person</u>" has the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person excludes (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any entity owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.  |

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| | |
|:---|:---|
| 2 | "<u>Beneficial Owner</u>" has the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner excludes any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with another entity.  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Corporate Status</u>" describes the status of a person who is or was acting as a director, officer, employee, or Agent of the Company or an Enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Disinterested Director</u>" means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Enterprise</u>" means any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other entity for which Indemnitee is or was serving at the request of the Company as a director, officer, employee, or Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Expenses</u>" includes all reasonable attorneys' fees, retainers, court costs, transcript costs, fees and other costs of experts and other professionals, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, excise taxes and penalties under the Employee Retirement Income Security Act of 1974, as amended, and all other disbursements, obligations, or expenses of the types customarily incurred in connection with preparing for or participating in a Proceeding. Expenses also include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 14 of this Agreement only, Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement, Indemnitee's other rights to indemnification or advancement of Expenses from the Company, or concerning any directors' and officers' liability insurance policies maintained by the Company, by litigation or otherwise. The parties agree that for the purposes of any advancement of Expenses for which Indemnitee has made written demand to the Company in accordance with this Agreement, all Expenses included in such demand that are certified by affidavit of Indemnitee's counsel as being reasonable in the good faith judgment of such counsel will be presumed conclusively to be reasonable. Expenses, however, do not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Independent Counsel</u>" means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the five years prior to its selection or appointment has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements) or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" does not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement. The Company agrees to pay the reasonable fees and expenses of the Independent Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Proceeding</u>" includes any threatened, pending or completed action, suit, claim, counterclaim, cross claim, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing, or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative, legislative, regulatory, or investigative (formal or informal) nature, including any appeal therefrom, in which Indemnitee was, is, or will be involved as a party, potential party, non-party witness, or otherwise by reason of Indemnitee's Corporate Status or by reason of any action taken by Indemnitee (or a failure to take action by Indemnitee) or of any action (or failure to act) on Indemnitee's part while acting pursuant to Indemnitee's Corporate Status, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification, reimbursement, or advancement of Expenses can be provided under this Agreement. A Proceeding also includes a situation the Indemnitee believes in good faith may lead to, or culminate in, the institution of a Proceeding.

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Section 3. <u>Indemnity in Third-Party Proceedings.</u> The Company will indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, the Company will indemnify Indemnitee to the fullest extent permitted by applicable law against all Expenses, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with, or in respect of, such Expenses, judgments, fines and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with such Proceeding or any claim, issue, or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding, had no reasonable cause to believe that Indemnitee's conduct was unlawful.

Section 4. <u>Indemnity in Proceedings by or in the Right of the Company.</u> The Company will indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 4, the Company will indemnify Indemnitee to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in, or not opposed to, the best interests of the Company. The Company will not indemnify Indemnitee for Expenses under this Section 4 related to any claim, issue, or matter in a Proceeding for which Indemnitee has been finally adjudged by a court to be liable to the Company, unless, and only to the extent that, the Court of Chancery of the State of Delaware (the "Delaware Court") or any court in which the Proceeding was brought determines upon application by Indemnitee that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.

Section 5. <u>Indemnification for Expenses of a Party Who is Wholly or Partly Successful.</u> To the fullest extent permitted by applicable law, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with any Proceeding to the extent that Indemnitee is successful, on the merits or otherwise. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues, or matters in such Proceeding, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with or related to each successfully resolved claim, issue or matter to the fullest extent permitted by law. For purposes of this Section 5 and without limitation, the termination of any claim, issue, or matter in such a Proceeding by dismissal, with or without prejudice, will be deemed to be a successful result as to such claim, issue, or matter.

Section 6. <u>Indemnification for Expenses of a Witness.</u> To the fullest extent permitted by applicable law, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with any Proceeding to which Indemnitee is not a party but to which Indemnitee is a witness, deponent, interviewee, or otherwise asked to participate or provide information.

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Section 7. <u>Partial Indemnification.</u> If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company will indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

Section 8. <u>Additional Indemnification.</u> Notwithstanding any limitation in Sections 3, 4, or 5 of this Agreement, the Company will indemnify Indemnitee to the fullest extent permitted by applicable law (including but not limited to, the DGCL as it presently exists or may hereafter be amended) if Indemnitee is a party to or participant in, or threatened to be made a party to or participant in, any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all liability and loss suffered and Expenses (including attorneys' fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) reasonably incurred by Indemnitee in connection with any such Proceeding.

Section 9. <u>Exclusions.</u> Notwithstanding any provision in this Agreement, the Company is not obligated under this Agreement to indemnify Indemnitee for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any amount actually paid to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except to the extent provided in Section 15(b) of this Agreement and except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reimbursement of the Company by Indemnitee of any compensation pursuant to any compensation recoupment or clawback policy adopted by the Board or the compensation committee of the Board, including but not limited to any such policy adopted to comply with stock exchange listing requirements implementing Section 10D of the Exchange Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Proceeding initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Proceeding or part of any Proceeding is to enforce Indemnitee's rights to indemnification or advancement of Expenses, including a Proceeding (or any part of any Proceeding) initiated pursuant to Section 14 of this Agreement, (ii) the Proceeding was authorized in the specific case by the Board or (iii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

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Section 10. <u>Advances of Expenses.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company will advance, to the extent not prohibited by law, the Expenses incurred by Indemnitee in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. any Proceeding (or any part of any Proceeding) not initiated by Indemnitee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. any Proceeding (or any part of any Proceeding) initiated by Indemnitee if

1 the Proceeding or part of any Proceeding is to enforce Indemnitee's rights to obtain indemnification or advancement of Expenses from the Company or Enterprise, including a proceeding initiated pursuant to Section 14 of this Agreement, or

2 the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company will advance the Expenses within thirty (30) days after the receipt by the Company of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding eligible for advancement of expenses. Indemnitee hereby undertakes to repay all amounts so advanced if it should be ultimately determined that Indemnitee is not entitled to be indemnified under this Article or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Advanced Expenses will be unsecured and interest free. No other form of undertaking is required other than the execution of this Agreement. The Company will make advances without regard to Indemnitee's ability to repay the Expenses and without regard to Indemnitee's ultimate entitlement to indemnification under the other provisions of this Agreement.

Section 11. <u>Procedure for Notification of Claim for Indemnification or Advancement.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Indemnitee will notify the Company in writing of any Proceeding with respect to which Indemnitee intends to seek indemnification or advancement of Expenses hereunder as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof. Indemnitee will include in the written notification to the Company a description of the nature of the Proceeding and the facts underlying the Proceeding and provide such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such Proceeding. Indemnitee's failure to notify the Company will not relieve the Company from any obligation it may have to Indemnitee under this Agreement, and any delay or defect in so notifying the Company will not constitute a waiver by Indemnitee of any rights under this Agreement. The Secretary of the Company will, promptly upon receipt of such a request for indemnification or advancement of Expenses, advise the Board in writing that Indemnitee has requested indemnification or advancement of Expenses.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company will be entitled to participate in the Proceeding at its own expense.

Section 12. <u>Procedure Upon Application for Indemnification.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless a Change in Control has occurred, the determination of Indemnitee's entitlement to indemnification will be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. by a majority vote of the Disinterested Directors, even though less than a quorum of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by written opinion provided by Independent Counsel selected by the Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. if so directed by the Board, by the stockholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a Change in Control has occurred, the determination of Indemnitee's entitlement to indemnification will be made by written opinion provided by Independent Counsel selected by Indemnitee (unless Indemnitee requests such selection be made by the Board).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The party selecting Independent Counsel pursuant to subsection (a)(iii) or (b) of this Section 12 will provide written notice of the selection to the other party. The notified party may, within ten (10) days after receiving written notice of the selection of Independent Counsel, deliver to the selecting party a written objection to such selection; <u>provided</u>, <u>however</u>, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of "Independent Counsel" as defined in Section 2 of this Agreement, and the objection will set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected will act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or the Delaware Court has determined that such objection is without merit. If, within thirty (30) days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 11(a) of this Agreement and the final disposition of the Proceeding, Independent Counsel has not been selected or, if selected, any objection to such selection has not been resolved, either the Company or Indemnitee may petition the Delaware Court for resolution of any objection made by the Company or Indemnitee to the other's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person as such court designates. The Company will retain and pay the reasonable fees and expenses incurred by Independent Counsel so selected or appointed. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 14(a) of this Agreement, Independent Counsel will be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Indemnitee will cooperate with the person, persons or entity making the determination with respect to Indemnitee's entitlement to indemnification, including providing to such person, persons, or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. The Company will advance and pay any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making the indemnification determination irrespective of the determination as to Indemnitee's entitlement to indemnification and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. The Company promptly will advise Indemnitee in writing of the determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied and providing a copy of any written opinion provided to the Board by Independent Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If it is determined that Indemnitee is entitled to indemnification, the Company will make payment to Indemnitee within sixty (60) days after a written claim therefor has been received by the Company following the final disposition of such Proceeding.

Section 13. <u>Presumptions and Effect of Certain Proceedings.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In making a determination with respect to entitlement to indemnification under this Agreement, the person, persons, or entity making such determination will, to the fullest extent not prohibited by law, presume Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 11(a) of this Agreement, and the Company will, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption. Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper under the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, will be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the determination of the Indemnitee's entitlement to indemnification has not been made pursuant to Section 12 of this Agreement within sixty (60) days after the later of (i) receipt by the Company of Indemnitee's request for indemnification pursuant to Section 11(a) of this Agreement and (ii) the final disposition of the Proceeding for which Indemnitee requested indemnification (the "<u>Determination Period</u>"), the requisite determination of entitlement to indemnification will, to the fullest extent not prohibited by law, be deemed to have been made and Indemnitee will be entitled to such indemnification absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification or (ii) a prohibition of such indemnification under applicable law. The Determination Period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such

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additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, the Determination Period will not apply (i) if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 12(a)(iv) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The termination of any Proceeding or of any claim, issue, or matter therein by judgment, order, settlement or conviction, or upon a plea of <u>nolo</u> <u>contendere</u> or its equivalent, will not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee's conduct was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of any determination of good faith, Indemnitee will be deemed to have acted in good faith if Indemnitee acted based on (i) the records or books of account of the Company, its subsidiaries, or an Enterprise, including financial statements, (ii) information supplied to Indemnitee by the directors or officers of the Company, its subsidiaries, or an Enterprise in the course of their duties, (iii) the advice of legal counsel for the Company, its subsidiaries, or an Enterprise or (iv) information or records given or reports made to the Company or an Enterprise by an independent certified public accountant or by an appraiser, financial advisor or other expert selected with reasonable care by or on behalf of the Company, its subsidiaries, or an Enterprise. Further, Indemnitee will be deemed to have acted in a manner "not opposed to the best interests of the Company," as referred to in this Agreement if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan. The provisions of this Section 13(d) are not exclusive and do not limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The knowledge and/or actions, or failure to act, of any other person affiliated with the Company or an Enterprise (including, but not limited to, a director, officer, trustee, partner, managing member, Agent or employee) may not be imputed to Indemnitee for purposes of determining Indemnitee's right to indemnification under this Agreement.

Section 14. <u>Remedies of Indemnitee.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Indemnitee may commence litigation against the Company in the Delaware Court to obtain indemnification or advancement of Expenses provided by this Agreement in the event that (i) a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) the Company does not advance Expenses pursuant to Section 10 of this Agreement, (iii) the determination of entitlement to indemnification

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is not made pursuant to Section 12 of this Agreement within the Determination Period, (iv) the Company does not indemnify Indemnitee pursuant to Section 5 or 6 or the second to last sentence of Section 12(d) of this Agreement within sixty (60) days after receipt by the Company of a written request therefor following the final disposition of such Proceeding, (v) the Company does not indemnify Indemnitee pursuant to Section 3, 4, 7, or 8 of this Agreement within sixty (60) days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder. Alternatively, Indemnitee or the Company may seek an award or resolution in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association; <u>provided</u>, <u>that</u>, both Indemnitee and the Company must first consent to arbitration. Indemnitee must commence such Proceeding seeking an adjudication or an award in arbitration within one hundred and eighty (180) days following the date on which Indemnitee first has the right to commence such Proceeding pursuant to this Section 14(a); <u>provided</u>, <u>however</u>, that the foregoing clause does not apply in respect of a Proceeding brought by Indemnitee to enforce Indemnitee's rights under Section 5 of this Agreement. The Company will not oppose Indemnitee's right to seek any such adjudication or award in arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 14 will be conducted in all respects as a *de novo* trial or arbitration on the merits and Indemnitee may not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 14 the Company will have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be, and will not introduce evidence of the determination made pursuant to Section 12 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a determination is made pursuant to Section 12 of this Agreement that Indemnitee is entitled to indemnification, the Company will be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 14 unless (i) Indemnitee made a misstatement of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with Indemnitees' request for indemnification, or (ii) the Company is prohibited from indemnifying Indemnitee under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company is, to the fullest extent not prohibited by law, precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 that the procedures and presumptions of this Agreement are not valid, binding, or enforceable and will stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) It is the intent of the Company that, to the fullest extent permitted by law, the Indemnitee not be required to incur legal fees or other Expenses associated with the interpretation, enforcement, or defense of Indemnitee's rights under this Agreement, by litigation or otherwise, because the cost and expense thereof would substantially detract from the benefits

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intended to be extended to the Indemnitee under this Agreement. The Company, to the fullest extent permitted by law, will (within thirty (30) days after receipt by the Company of a written request therefor) advance to Indemnitee such Expenses which are incurred by Indemnitee in connection with a Proceeding concerning this Agreement, Indemnitee's other rights to indemnification or advancement of Expenses from the Company, or concerning any directors' and officers' liability insurance policies maintained by the Company, and will indemnify Indemnitee against any and all such Expenses unless the court determines that Indemnitee's claims in such Proceeding were made in bad faith or frivolous, or that the Company is prohibited by law from indemnifying Indemnitee for such Expenses.

Section 15. <u>Non-exclusivity; Survival of Rights; Insurance; Subrogation; Bar Order.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The rights to indemnification and advancement of Expenses provided by this Agreement are not exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or Disinterested Directors or otherwise. The indemnification and advancement of Expenses provided by this Agreement may not be limited or restricted by any amendment, alteration or repeal of this Agreement in any way with respect to any action taken or omitted by Indemnitee in Indemnitee's Corporate Status occurring prior to any amendment, alteration or repeal of this Agreement. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Bylaws, the Certificate of Incorporation, or this Agreement, it is the intent of the parties hereto that Indemnitee enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy is cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, will not prevent the concurrent assertion or employment of any other right or remedy. The rights to indemnification and to prepayment of expenses provided by, or granted pursuant to, this Agreement shall continue notwithstanding that the person has ceased to be a director or officer of the Company and shall inure to the benefit of the estate, heirs, executors, administrators, legatees and distributees of such person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company hereby acknowledges that Indemnitee may have certain rights to indemnification, advancement of Expenses and/or insurance provided by one or more other Persons with whom or which Indemnitee may be associated. The relationship between the Company and such other Persons, other than an Enterprise, with respect to Indemnitee's rights to indemnification, advancement of Expenses, and insurance is described by this subsection, subject to the provisions of subsection (d) of this Section 15 with respect to a Proceeding concerning Indemnitee's Corporate Status with an Enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Company hereby acknowledges and agrees:

1) the Company's obligations to Indemnitee are primary and any obligation of any other Persons, other than an Enterprise, are secondary (i.e., the Company is the indemnitor of first resort) with respect to any request for indemnification or advancement of Expenses made pursuant to this Agreement concerning any Proceeding;

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3) any obligation of any other Persons with whom or which Indemnitee may be associated to indemnify Indemnitee and/or advance Expenses to Indemnitee in respect of any proceeding are secondary to the Company's obligations; and

4) the Company will indemnify Indemnitee and advance Expenses to Indemnitee hereunder to the fullest extent provided herein without regard to any rights Indemnitee may have against any other Person with whom or which Indemnitee may be associated or an insurer of any such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. the Company irrevocably waives, relinquishes and releases (A) any other Person with whom or which Indemnitee may be associated from any claim of contribution, subrogation, reimbursement, exoneration or indemnification, or any other recovery of any kind in respect of amounts paid by the Company to Indemnitee pursuant to this Agreement and (B) any right to participate in any claim or remedy of Indemnitee against any Person, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from any Person, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. In the event any other Person with whom or which Indemnitee may be associated or their insurers advances or extinguishes any liability or loss for Indemnitee, the payor has a right of subrogation against the Company or its insurers for all amounts so paid which would otherwise be payable by the Company or its insurers under this Agreement. In no event will payment by any other Person with whom or which Indemnitee may be associated or their insurers affect the obligations of the Company hereunder or shift primary liability for the Company's obligation to indemnify or advance Expenses to any other Person with whom or which Indemnitee may be associated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Any indemnification or advancement of Expenses provided by any other Person with whom or which Indemnitee may be associated is specifically in excess over the Company's obligation to indemnify and advance Expenses or any valid and collectible insurance (including but not limited to any malpractice insurance or professional errors and omissions insurance) provided by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or Agents of the Company or other persons serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, enterprise or non-profit entity, the Company will obtain a policy or policies covering Indemnitee to the maximum extent of the coverage available for any such director, officer, employee or Agent under such policy or policies, including coverage in the event the Company does not or cannot, for any reason, indemnify or advance Expenses to Indemnitee as required by this Agreement. The Company may purchase and maintain such insurance on behalf of any person who is or was a director, officer, employee or Agent of the

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Company, or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust enterprise or non-profit entity against any liability asserted against such person and incurred by such person in any such capacity, or arising out of such person's status as such, whether or not the Company would have the power to indemnify such person against such liability under the provisions of the DGCL. If, at the time of the receipt of a notice of a claim pursuant to this Agreement, the Company has directors' and officers' liability insurance in effect, the Company will give prompt notice of such claim or of the commencement of a Proceeding, as the case may be, to the insurers in accordance with the procedures set forth in the respective policies. The Company will thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies. Indemnitee agrees to assist the Company's efforts to cause the insurers to pay such amounts and will comply with the terms of such policies, including selection of approved panel counsel, if required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company's obligation to indemnify or advance Expenses hereunder to Indemnitee for any Proceeding concerning Indemnitee's Corporate Status with an Enterprise will be reduced by any amount Indemnitee has actually received as indemnification or advancement of Expenses from such Enterprise. The Company's obligation, if any, to indemnify or advance expenses to any person who was or is serving at its request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, enterprise or non-profit entity shall be reduced by any amount such person may collect as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, enterprise or non-profit enterprise. The Company and Indemnitee intend that any such Enterprise (and its insurers) be the indemnitor of first resort with respect to indemnification and advancement of Expenses for any Proceeding related to or arising from Indemnitee's Corporate Status with such Enterprise. The Company's obligation to indemnify and advance Expenses to Indemnitee is secondary to the obligations the Enterprise or its insurers owe to Indemnitee. Indemnitee agrees to take all reasonably necessary and desirable action to obtain from an Enterprise indemnification and advancement of Expenses for any Proceeding related to, or arising from, Indemnitee's Corporate Status with such Enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event of any payment made by the Company under this Agreement, the Company will be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee from any Enterprise or its insurance carrier. Indemnitee will execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company will not seek from a court, or agree to, a "bar order" which would have the effect of prohibiting or limiting the Indemnitee's rights to be indemnified or to receive advancement of Expenses under this Agreement. The Company will not contend or claim in any proceeding to enforce the Indemnitee's rights under the Agreement that any bar order prohibits or limits Indemnitee's rights under this Agreement and expressly waives any such contention or claim.

Section 16. <u>Duration of Agreement.</u> The indemnification and advancement of Expenses rights provided by or granted pursuant to this Agreement (i) are binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), (ii) continue as to an Indemnitee who has ceased to be a director, officer, employee or Agent of the Company or of any Enterprise, and (iii) inure to the benefit of Indemnitee and Indemnitee's spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

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Section 17. <u>Severability.</u> If any provision or provisions of this Agreement is held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) will not in any way be affected or impaired thereby and will remain enforceable to the fullest extent permitted by law; (b) such provision or provisions will be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) will be construed so as to give effect to the intent manifested thereby.

Section 18. <u>Interpretation</u>. Any ambiguity in the terms of this Agreement will be resolved in favor of Indemnitee and in a manner to provide the maximum indemnification and advancement of Expenses permitted by law. The Company and Indemnitee intend that this Agreement provide to the fullest extent permitted by law for indemnification and advancement of Expenses in excess of that expressly provided, without limitation, by the Certificate of Incorporation, the Bylaws, vote of the Company's stockholders or Disinterested Directors, or applicable law.

Section 19. <u>Enforcement.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director, officer, employee, or Agent of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving or continuing to serve as director, officer, employee, or Agent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws, any directors' and officers' liability insurance maintained by the Company, and applicable law, is not a substitute therefor, and does not diminish or abrogate any rights of Indemnitee thereunder.

Section 20. <u>Modification and Waiver.</u> No supplement, modification or amendment of this Agreement is binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement will be valid unless executed in writing by the party entitled to enforce the provision to be waived and any such waiver will not be deemed to constitute a waiver of any other provisions of this Agreement nor will any waiver constitute a continuing waiver.

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Section 21. <u>Notice by Indemnitee.</u> Indemnitee agrees to promptly notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company does not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise.

Section 22. <u>Notices.</u> All notices, requests, demands and other communications under this Agreement will be in writing and will be deemed to have been duly given if (a) delivered by hand to the other party, (b) sent by reputable overnight courier to the other party or (c) sent by facsimile transmission or electronic mail, with receipt of oral confirmation that such communication has been received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee provides to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Company to:

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| |
|:---|
| Name: |
| Address: |
| Attention: |
| Email: |

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or to any other address as may have been furnished to Indemnitee by the Company.

Section 23. <u>Contribution.</u> To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, will contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (a) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (b) the relative fault of the Company (and its directors, officers, employees and Agents) and Indemnitee in connection with such event(s) and/or transaction(s).

Section 24. <u>Applicable Law and Consent to Jurisdiction.</u> This Agreement and the legal relations among the parties are governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 14(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (a) agree that any action, claim, or proceeding between the parties arising out of or in connection with this Agreement may be brought only in the Court of Chancery of the State of Delaware (or, in the event that the Court of Chancery does not have jurisdiction, the federal district court for the District of Delaware or other state courts of the State of Delaware) and not in any other state or federal court in the United States of America or any court in any other country, (b) consent to submit to the exclusive jurisdiction of such courts for purposes of any action, claim, or proceeding arising out of or in connection with

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this Agreement, (c) waive any objection to the laying of venue of any such action, claim, or proceeding in such courts, and (d) waive, and agree not to plead or to make, any claim that any such action, claim, or proceeding brought in such courts has been brought in an improper or inconvenient forum.

Section 25. <u>Identical Counterparts.</u> This Agreement may be executed in one or more counterparts, each of which will for all purposes be deemed to be an original but all of which together constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

Section 26. <u>Headings.</u> The headings of this Agreement are inserted for convenience only and do not constitute part of this Agreement or affect the construction thereof.

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written.

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| | |
|:---|:---|
| **[WHITEHAWK MINERALS CORP.]** | **INDEMNITEE** |
| By: | By: |
| Name: | Name: |
| Office: | Address: |

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## Exhibit 10.7

**Exhibit 10.7** 

**WHITEHAWK EQUITY INCENTIVE PLAN** 

**2026 EQUITY INCENTIVE PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Purpose**. The purpose of this WhiteHawk 2026 Equity Incentive Plan is to provide a means through which WhiteHawk Income Corporation (the "Company") and the other members of the Company Group may attract and retain key personnel and to provide a means whereby directors, officers, employees, consultants and advisors of the Company and the other members of the Company Group can acquire and maintain an equity interest in the Company, or be paid incentive compensation, including incentive compensation measured by reference to the value of Common Stock, thereby strengthening their commitment to the welfare of the Company Group and aligning their interests with those of the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Definitions**. The following definitions shall be applicable throughout the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Absolute Share Limit**" has the meaning given to such term in Section 5(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Adjustment Event**" has the meaning given to such term in Section 13(a) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Affiliate**" means, as to any specified Person, (i) any Person directly or indirectly
owning, controlling or holding, with power to vote, ten percent or more of the outstanding voting securities of such other Person, (ii) any Person, ten percent or more of whose outstanding voting securities are directly or indirectly owned,
controlled or held, with power to vote, by such other Person, (iii) any Person directly or indirectly controlling, controlled by or under common control with such other Person, (iv) any executive officer, director, trustee or general
partner of such Person and (v) any legal entity for which such Person acts as an executive officer, director, trustee or general partner. An indirect relationship shall include circumstances in which a Person's spouse, children, parents,
siblings or mother, father, sister- or brother-in-law is or has been associated with a Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Award**" means, individually or collectively, any Incentive Stock Option, Nonqualified Stock
Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Other Equity-Based Award and Cash-Based Incentive Award granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Award Agreement**" means the document or documents by which each Award (other than a
Cash-Based Incentive Award) is evidenced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Beneficial Owner**" has the meaning ascribed to such term in Rule 13d-3 under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, as the same may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Board**" means the Board of Directors of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Cash-Based Incentive Award**" means an Award denominated in cash that is granted under
Section 12 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Cause**" means, as to any Participant, unless the applicable Award Agreement states
otherwise, (i) "Cause," as defined in any employment or consulting agreement between the Participant and the Service Recipient in effect at the time of the Participant's Termination; or (ii) in the absence of any such
employment or consulting agreement (or the absence of any definition of "Cause" contained therein), the Participant's (A) willful neglect in the performance of the Participant's duties for the Service Recipient or
willful or repeated failure or refusal to perform such duties; (B) engagement in conduct in connection with the Participant's employment or service with the Service Recipient, which results in, or could reasonably be expected to result
in, material harm to the business or reputation of the Company or any other member of the Company Group; (C) conviction of, or plea of guilty or no contest to, (I) any felony; or (II) any other crime that results in, or could
reasonably be expected to result in, material harm to the business or reputation of the Company or any other member of the Company Group; (D) material violation of the written policies of the Service Recipient, including, but not limited to,
those relating to sexual harassment or the disclosure or misuse of confidential information, or those set forth in the manuals or statements of policy of the Service Recipient; (E) fraud or misappropriation, embezzlement or misuse of funds or
property belonging to the Company or any other member of the Company Group; or (F) act of personal dishonesty that involves personal profit in connection with the Participant's employment or service to the Service Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Change in Control**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Person (other than the Company, any trustee or other fiduciary holding securities under any employee
benefit plan of the Company, or any company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of shares of Common Stock), becomes the Beneficial Owner, directly or indirectly,
of securities of the Company representing 50% or more of the combined voting power of the Company's then outstanding securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) during any period of two consecutive years (the "**Board Measurement Period**") individuals who
at the beginning of such period constitute the Board and any new director (other than a director designated by a Person who has entered into an agreement with the Company to effect a transaction described in paragraph (a), (c), or (d) of this <u>Section</u> <u>11.3</u>, or a director initially elected or nominated as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on
behalf of any Person other than the Board) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still
in office, who either were directors at the beginning of the Board Measurement Period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the Board;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which
would result in any of the holders of voting securities of the Company immediately prior thereto continuing to hold (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined
voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; provided, however, that a merger or consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no Person (other than those covered by the exceptions in (i) below) acquires more than 50% of the combined voting power of the Company's then outstanding securities shall not constitute a Change in Control of
the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the consummation of the sale or disposition by the Company of all or substantially all of the Company's
assets other than (i) the sale or disposition of all or substantially all of the assets of the Company to a Person or Persons who beneficially own, directly or indirectly, more than 50% of the combined voting power of the outstanding voting
securities of the Company at the time of the sale or disposition or (ii) pursuant to a spinoff type transaction, directly or indirectly, of such assets to the stockholders of the Company.

Notwithstanding the foregoing, to the extent necessary to comply with Section 409A of the Code with respect to the payment of "nonqualified deferred compensation," "Change in Control" shall be limited to a "change in control event" as defined under Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Code**" means the Internal Revenue Code of 1986, as amended, and any successor thereto.
Reference in the Plan to any section of the Code shall be deemed to include any regulations or other interpretative guidance under such section, and any amendments or successor provisions to such section, regulations or guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Committee**" means the Compensation Committee of the Board or any properly delegated
subcommittee thereof or, if no such Compensation Committee or subcommittee thereof exists, the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Common Stock**" means the Class I Common Stock of the Company and any stock or other
securities into which such Common Stock may be converted or into which it may be exchanged).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Company**" means WhiteHawk Income Corporation, and **Company Group**" means,
collectively, the Company and its Subsidiaries."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Continuous Service**" means that the Participant's service with the Company or an
Affiliate, whether as an employee, consultant or director, is not interrupted or terminated. The Participant's Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant
renders service to the Company or an Affiliate as an employee, consultant or director or a change in the entity for which the Participant renders such service, *provided that* there is no interruption or termination of the
Participant's Continuous Service; *provided further that* if any Award is subject to Section 409A of the Code, this sentence shall only be given effect to the extent consistent with Section 409A of the Code. For
example, a change in status from an employee of the Company to a director of an Affiliate will not constitute an interruption of Continuous Service. The Committee or its delegate, in its sole discretion, may determine whether Continuous Service
shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal or family leave of absence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Date of Grant**" means the date on which the granting of an Award is authorized, or such
other date as may be specified in such authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Designated Foreign Subsidiaries**" means all members of the Company Group that are organized
under the laws of any jurisdiction or country other than the United States of America that may be designated by the Board or the Committee from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Disability**" means, as to any Participant, unless the applicable Award Agreement states
otherwise, (i) "Disability," as defined in any employment or consulting agreement between the Participant and the Service Recipient in effect at the time of the Participant's Termination; or (ii) in the absence of any such
employment or consulting agreement (or the absence of any definition of "Disability" contained therein), a condition entitling the Participant to receive benefits under a long-term disability plan of the Service Recipient or other member
of the Company Group in which such Participant is eligible to participate, or, (iii) in the absence of such a plan, the Participant's becoming disabled within the meaning of Section 22(e)(3) of the Code. Any determination of whether
Disability exists in the absence of a long-term disability plan shall be made by the Company (or its designee) in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Effective Date**" means January [__], 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Eligible Person**" means any (i) individual employed by any member of the Company Group; **provided**, **that** no such employee covered by a collective bargaining agreement shall be an Eligible Person unless and to the extent that such eligibility is set forth in such collective bargaining agreement or in an agreement or
instrument relating thereto; (ii) director or officer of any member of

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the Company Group; or (iii) consultant or advisor to any member of the Company Group who may be offered securities registrable pursuant to a registration statement on Form S-8 under the Securities Act, who, in the case of each of clauses (i) through (iii) above has entered into an Award Agreement or who has received written notification from the Committee or its designee that they have been selected to participate in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Exchange Act**" means the Securities Exchange Act of 1934, as amended, and any successor
thereto. Reference in the Plan to any section of (or rule promulgated under) the Exchange Act shall be deemed to include any rules, regulations or other interpretative guidance under such section or rule, and any amendments or successor provisions
to such section, rules, regulations or guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Exercise Price**" has the meaning given to such term in Section 7(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Fair Market Value**" means, on a given date, (i) if the Common Stock is listed on a
national securities exchange, the closing sales price of the Common Stock reported on the primary exchange on which the Common Stock is listed and traded on such date, or, if there are no such sales on that date, then on the last preceding date on
which such sales were reported; (ii) if the Common Stock is not listed on any national securities exchange but is quoted in an inter-dealer quotation system on a last sale basis, the average between the closing bid price and ask price reported
on such date, or, if there is no such sale on that date, then on the last preceding date on which a sale was reported; or (iii) if the Common Stock is not listed on a national securities exchange or quoted in an inter-dealer quotation system on
a last sale basis, the amount determined by the Committee in good faith to be the fair market value of the Common Stock; **provided**, **that**, as to any Awards granted on or with a Date of Grant of the date of the pricing an initial public
offering of the Company's Common Stock, "Fair Market Value" shall be equal to the per share price at which the Common Stock is offered to the public in connection with such initial public offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**GAAP**" has the meaning given to such term in Section 7(d) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**Immediate Family Members**" has the meaning given to such term in Section 15(b) of the
Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Incentive Stock Option**" means an Option which is designated by the Committee as an
incentive stock option as described in Section 422 of the Code and otherwise meets the requirements set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**Indemnifiable Person**" has the meaning given to such term in Section 4(e) of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**Initial Public Offering**" means the initial declaration of effectiveness by the Securities
and Exchange Commission of a registration statement relating to the Company's Common Stock and the Common Stock being listed for trading on a National Securities Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "**Liquidity Event**" means: (i) the listing of Company stock on a national securities
exchange or a quotation through a national quotation system, (ii) a Change in Control or (iii) such other event as determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "**National Securities Exchange**" means the New York Stock Exchange, the NYSE American, the
Nasdaq Stock Market or any similar national securities exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "**Nonqualified Stock Option**" means an Option which is not designated by the Committee as an
Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "**Non-Employee Director**" means a member of the Board
who is not an employee of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "**Option**" means an Award granted under Section 7 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "**Option Period**" has the meaning given to such term in Section 7(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Other Equity-Based Award**" means an Award that is not an Option, Stock Appreciation Right,
Restricted Stock or Restricted Stock Unit that is granted under Section 10 of the Plan and is (i) payable by delivery of Common Stock, (ii) measured by reference to the value of Common Stock or (iii) is payable as dividends on
Common Stock or is paid as dividend equivalents in respect of dividends paid on Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "**Participant**" means an Eligible Person who has been selected by the Committee to participate
in the Plan and to receive an Award pursuant to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "**Performance Criteria**" means specific levels of performance of the Company (and/or one or
more of the Company's Affiliates, divisions or operational and/or business units, business segments, administrative departments, or any combination of the foregoing) or any Participant, which may be determined in accordance with GAAP or on a non-GAAP basis including, but not limited to, one or more of the following measures: (i) terms relative to a peer group or index; (ii) basic, diluted, or adjusted earnings per share; (iii) sales or
revenue; (iv) earnings before interest, taxes, and other adjustments (in total or on a per share basis); (v) cash available for distribution; (vi) basic or adjusted net income; (vii) returns on equity, assets, capital, revenue or
similar measure; (viii) level and growth of dividends; (ix) the price or increase in price of Common Stock; (x) total shareholder return; (xi) total assets; (xii) growth in assets, new originations of assets, or financing of
assets; (xiii) equity market capitalization; (xiv) reduction or other quantifiable goal with respect to general and/or specific expenses; (xv) equity capital raised; (xvi) mergers, acquisitions, increase in enterprise value of
Affiliates, Subsidiaries, divisions or business units or sales of assets of Affiliates, Subsidiaries, divisions or business units or sales of assets; and

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(xvii) any combination of the foregoing. Any one or more of the Performance Criteria may be stated as a percentage of another Performance Criteria, or used on an absolute or relative basis to measure the performance of the Company and/or one or more Affiliates as a whole or any divisions or operational and/or business units, business segments, administrative departments of the Company and/or one or more Affiliates or any combination thereof, as the Committee may deem appropriate, or any of the above Performance Criteria may be compared to the performance of a selected group of comparison companies, or a published or special index that the Committee, in its sole discretion, deems appropriate, or as compared to various stock market indices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "**Permitted Transferee**" has the meaning given to such term in Section 15(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "**Person**" means any individual, partnership, corporation, limited liability company, trust,
unincorporated organization, government or agency or political subdivision thereof, or any other legal entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "**Plan**" means this WhiteHawk 2026 Equity Incentive Plan, as it may be amended and/or restated
from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "**Qualifying Director**" means a person who is, with respect to actions intended to obtain an
exemption from Section 16(b) of the Exchange Act pursuant to Rule 16b-3 under the Exchange Act, a "non-employee director" within the meaning of Rule 16b-3 under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "**Restricted Period**" means the period of time determined by the Committee during which an
Award is subject to restrictions, including vesting conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) "**Restricted Stock**" means Common Stock, subject to certain specified restrictions (which may
include, without limitation, a requirement that the Participant remain continuously employed or provide continuous services for a specified period of time), granted under Section 9 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) "**Restricted Stock Unit**" means an unfunded and unsecured promise to deliver shares of Common
Stock, cash, other securities or other property, subject to certain restrictions (which may include, without limitation, a requirement that the Participant remain continuously employed or provide continuous services for a specified period of time),
granted under Section 9 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) "**SAR Period**" has the meaning given to such term in Section 8(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) "**Securities Act**" means the Securities Act of 1933, as amended, and any successor thereto.
Reference in the Plan to any section of (or rule promulgated under) the Securities Act shall be deemed to include any rules, regulations or other interpretative guidance under such section or rule, and any amendments or successor provisions to such
section, rules, regulations or guidance.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) "**Service Recipient**" means, with respect to a Participant holding a given Award, the member
of the Company Group by which the original recipient of such Award is, or following a Termination was most recently, principally employed or to which such original recipient provides, or following a Termination was most recently providing, services,
as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) "**Stock Appreciation Right**" or "**SAR**" means an Award granted under
Section 8 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) "**Strike Price**" has the meaning given to such term in Section 8(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) "**Subsidiary**" means, with respect to any specified Person, and unless otherwise set forth in
an Award Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any corporation, association or other business entity of which more than fifty percent (50%) of the total
voting power of shares of such entity's voting securities (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders' agreement that effectively transfers voting power) is at the
time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any partnership (or any comparable foreign entity) (A) the sole general partner (or functional equivalent
thereof) or the managing general partner of which is such Person or Subsidiary of such Person or (B) the only general partners (or functional equivalents thereof) of which are that Person or one or more Subsidiaries of that Person (or any
combination thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) "**Substitute Awards**" has the meaning given to such term in Section 5(e) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz) "**Sub-Plans**" means any sub-plan to the Plan that has been adopted by the Board or the Committee for the purpose of permitting the offering of Awards to employees of certain Designated Foreign Subsidiaries or otherwise outside the
United States of America, with each such sub-plan designed to comply with local laws applicable to offerings in such foreign jurisdictions. Although any Sub-Plan may be
designated a separate and independent plan from the Plan in order to comply with applicable local laws, the Absolute Share Limit and the other limits specified in Section 5(b) shall apply in the aggregate to the Plan and any Sub-Plan adopted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa) "**Termination**" means the termination of a Participant's employment or service, as
applicable, with the Service Recipient for any reason (including death).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Effective Date; Duration**. The Plan shall be effective as of the Effective Date. The expiration date of the Plan, on and after which date no Awards may be granted hereunder, shall be the tenth (10th) anniversary of the Effective Date; **provided**, **that** such expiration shall not affect Awards then outstanding, and the terms and conditions of the Plan shall continue to apply to such Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Administration**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **General**. The Committee shall administer the Plan. To the extent required to comply with the provisions of Rule 16b-3 promulgated under the Exchange Act (if the Board is not acting as the Committee under the Plan), it is intended that each member of the Committee shall, at the time such member takes any action with respect to an Award under the Plan that is intended to qualify for the exemptions provided by Rule 16b-3 promulgated under the Exchange Act, be a Qualifying Director. However, the fact that a Committee member shall fail to qualify as a Qualifying Director shall not invalidate any Award granted by the Committee that is otherwise validly granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Committee Authority**. Subject to the provisions of the Plan and applicable law, the Committee shall have the sole and plenary authority, in addition to other express powers and authorizations conferred on the Committee by the Plan, to (i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of shares of Common Stock to be covered by, or with respect to which payments, rights, or other matters are to be calculated in connection with, Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled in, or exercised for, cash, shares of Common Stock, other securities, other Awards or other property, or cancelled, forfeited, suspended or accelerated and the method or methods by which Awards may be settled, exercised, cancelled, forfeited, suspended or accelerated; (vi) determine whether, to what extent, and under what circumstances the delivery of cash, shares of Common Stock, other securities, other Awards or other property and other amounts payable with respect to an Award shall be deferred either automatically or at the election of the Participant or of the Committee; (vii) interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any instrument or agreement relating to, or Award granted under, the Plan; (viii) establish, amend, suspend, or waive any rules and regulations and appoint such agents as the Committee shall deem appropriate for the proper administration of the Plan; (ix) adopt Sub-Plans; and (x) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Delegation**. Except to the extent prohibited by applicable law or the applicable rules and regulations of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or traded, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers to any Person or Persons selected by it. Any such allocation or delegation may be revoked by the Committee at any time. Without limiting the generality of the foregoing, the Committee may delegate to one or more officers of any member of the Company Group, the authority to act on behalf of the Committee with respect to any matter, right, obligation, or election which is the responsibility of, or which is allocated to, the Committee herein, and which may be so delegated as a matter of law, except with respect to grants of Awards to persons (i) who are Non-Employee Directors, or (ii) who are subject to Section 16 of the Exchange Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Finality of Decisions**. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan, any Award or any Award Agreement shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive and binding upon all Persons, including, without limitation, any member of the Company Group, any Participant, any holder or beneficiary of any Award, and any stockholder of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Indemnification**. No member of the Board, the Committee or any employee or agent of any member of the Company Group (each such Person, an "**Indemnifiable Person**") shall be liable for any action taken or omitted to be taken or any determination made with respect to the Plan or any Award hereunder (unless constituting fraud or a willful criminal act or omission). Each Indemnifiable Person shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense (including attorneys' fees) that may be imposed upon or incurred by such Indemnifiable Person in connection with or resulting from any action, suit or proceeding to which such Indemnifiable Person may be a party or in which such Indemnifiable Person may be involved by reason of any action taken or omitted to be taken or determination made with respect to the Plan or any Award hereunder and against and from any and all amounts paid by such Indemnifiable Person with the Company's approval, in settlement thereof, or paid by such Indemnifiable Person in satisfaction of any judgment in any such action, suit or proceeding against such Indemnifiable Person, and the Company shall advance to such Indemnifiable Person any such expenses promptly upon written request (which request shall include an undertaking by the Indemnifiable Person to repay the amount of such advance if it shall ultimately be determined, as provided below, that the Indemnifiable Person is not entitled to be indemnified); **provided**, **that** the Company shall have the right, at its own expense, to assume and defend any such action, suit or proceeding and once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense with counsel of the Company's choice. The foregoing right of indemnification shall not be available to an Indemnifiable Person to the extent that a final judgment or other final adjudication (in either case not subject to further appeal) binding upon such Indemnifiable Person determines that the acts, omissions or determinations of such Indemnifiable Person giving rise to the indemnification claim resulted from such Indemnifiable Person's fraud or willful criminal act or omission or that such right of indemnification is otherwise prohibited by law or by the organizational documents of any member of the Company Group. The foregoing right of indemnification shall not be exclusive of or otherwise supersede any other rights of indemnification to which such Indemnifiable Persons may be entitled under the organizational documents of any member of the Company Group, as a matter of law, under an individual indemnification agreement or contract or otherwise, or any other power that the Company may have to indemnify such Indemnifiable Persons or hold such Indemnifiable Persons harmless.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Board Authority**. Notwithstanding anything to the contrary contained in the Plan, the Board may, in its sole discretion, at any time and from time to time, grant Awards and administer the Plan with respect to any Awards. Any such actions by the Board shall be subject to the applicable rules of the securities exchange or inter-dealer quotation system on which the Common Stock is listed or quoted. In any such case, the Board shall have all the authority granted to the Committee under the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Grant of Awards; Shares Subject to the Plan; Limitations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Grants**. The Committee may, from time to time, grant Awards to one or more Eligible Persons. All Awards granted under the Plan shall vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee, including, without limitation, attainment of Performance Criteria. Awards may be granted in respect of shares of Common Stock, as well as shares issued by any of the Company, its Subsidiaries and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Share Reserve and Limits**. Awards granted under the Plan shall be subject to the following limitations: (i) subject to Section 13 of the Plan, no more than 200,000 shares of Common Stock (the "**Absolute Share Limit**") shall be available for Awards under the Plan; (ii) subject to Section 13 of the Plan, no more than the number of shares of Common Stock equal to the Absolute Share Limit may be issued in the aggregate pursuant to the exercise of Incentive Stock Options granted under the Plan; and (iii) the maximum number of shares of Common Stock subject to Awards granted during a single fiscal year to any Non-Employee Director, for services rendered as a Non-Employee Director, taken together with any cash fees paid to such Non-Employee Director during the fiscal year, shall not exceed $100,000 in total value in respect of any fiscal year occurring after the first year of the Non-Employee Director's service on the Board and $100,000 in respect of the first fiscal year of the Non-Employee Director's service on the Board (calculating the value of any such Awards based on the grant date fair value of such Awards for financial reporting purposes). For purposes of the preceding sentence, any Awards granted to and any cash fees paid to a Non-Employee Director shall be taken into account in the fiscal year in which such Awards and/or fees are granted and/or are earned, rather than settled or paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Share Counting**. If any shares of Common Stock subject to an Award are forfeited, an Award expires or otherwise terminates without issuance of shares of Common Stock, or an Award is settled for cash (in whole or in part) or otherwise does not result in the issuance of all or a portion of the shares of Common Stock subject to such Award (including on payment in shares of Common Stock on exercise of a Stock Appreciation Right), such shares of Common Stock shall, to the extent of such forfeiture, expiration, termination, cash settlement or non-issuance, be added to the shares of Common Stock available for grant under the Plan on a one-for-one basis. In the event that (i) any Option or other Award granted hereunder is exercised through the tendering of shares of Common Stock (either actually or by attestation) or by the withholding of shares of Common Stock by the Company, or (ii) withholding tax liabilities arising from such Option or other Award are satisfied by the tendering of shares of Common Stock (either actually or by attestation) or by the withholding of Shares by the Company, then in each such case the shares of Common Stock so tendered or withheld shall be added to the shares of Common Stock available for grant under the Plan on a one-for-one basis. No shares shall be deemed to have been issued in settlement of a SAR or Restricted Stock Unit that provides for settlement only in cash and settles only in cash or in respect of any Cash-Based Incentive Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Source of Shares**. Shares of Common Stock issued by the Company in settlement of Awards may be authorized and unissued shares, shares held in the treasury of the Company, shares purchased on the open market or by private purchase or a combination of the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Substitute Awards**. Awards may, in the sole discretion of the Committee, be granted under the Plan in assumption of, or in substitution for, outstanding awards previously granted by an entity directly or indirectly acquired by the Company or with which the Company combines ("**Substitute Awards**"). Substitute Awards shall not be counted against the Absolute Share Limit; **provided**, **that** Substitute Awards issued in connection with the assumption of, or in substitution for, outstanding options intended to qualify as "incentive stock options" within the meaning of Section 422 of the Code shall be counted against the aggregate number of shares of Common Stock available for Awards of Incentive Stock Options under the Plan. Subject to applicable stock exchange requirements, available shares under a stockholder-approved plan of an entity directly or indirectly acquired by the Company or with which the Company combines (as appropriately adjusted to reflect the acquisition or combination transaction) may be used for Awards under the Plan and shall not reduce the number of shares of Common Stock available for issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Eligibility**. Participation in the Plan shall be limited to Eligible Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Options**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **General**. Each Option granted under the Plan shall be evidenced by an Award Agreement, which agreement need not be the same for each Participant. Each Option so granted shall be subject to the conditions set forth in this Section 7, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. All Options granted under the Plan shall be Nonqualified Stock Options unless the applicable Award Agreement expressly states that the Option is intended to be an Incentive Stock Option. Incentive Stock Options shall be granted only to Eligible Persons who are employees of a member of the Company Group, and no Incentive Stock Option shall be granted to any Eligible Person who is ineligible to receive an Incentive Stock Option under the Code. No Option shall be treated as an Incentive Stock Option unless the Plan has been approved by the stockholders of the Company in a manner intended to comply with the stockholder approval requirements of Section 422(b)(1) of the Code; **provided**, **that** any Option intended to be an Incentive Stock Option shall not fail to be effective solely on account of a failure to obtain such approval, but rather such Option shall be treated as a Nonqualified Stock Option unless and until such approval is obtained. In the case of an Incentive Stock Option, the terms and conditions of such grant shall be subject to, and comply with, such rules as may be prescribed by Section 422 of the Code. If for any reason an Option intended to be an Incentive Stock Option (or any portion thereof) shall not qualify as an Incentive Stock Option, then, to the extent of such nonqualification, such Option or portion thereof shall be regarded as a Nonqualified Stock Option appropriately granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Exercise Price**. Except as otherwise provided by the Committee in the case of Substitute Awards, the exercise price ("**Exercise Price**") per share of Common Stock for each Option shall not be less than one hundred percent (100%) of the Fair Market Value of such share (determined as of the Date of Grant); **provided**, **that**, in the case of an Incentive Stock Option granted to an employee who, at the time of the grant of such Option, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of any member of the Company Group, the Exercise Price per share shall be no less than one hundred ten percent (110%) of the Fair Market Value per share on the Date of Grant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Vesting and Expiration**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Options shall vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Options shall expire upon a date determined by the Committee, not to exceed ten (10) years from the Date of Grant (the "**Option Period**"); **provided**, **that**, if the Option Period (other than in the case of an Incentive Stock Option) would expire at a time when trading in the shares of Common Stock is prohibited by the Company's insider trading policy (or Company-imposed" "blackout period"), then the Option Period shall be automatically extended until the thirtieth (30th) day following the expiration of such prohibition. Notwithstanding the foregoing, in no event shall the Option Period exceed five (5) years from the Date of Grant in the case of an Incentive Stock Option granted to a Participant who on the Date of Grant owns stock representing more than ten percent (10%) of the voting power of all classes of stock of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Method of Exercise and Form of Payment**. No shares of Common Stock shall be issued pursuant to any exercise of an Option until payment in full of the Exercise Price therefor is received by the Company and the Participant has paid to the Company an amount equal to any Federal, state, local and non-U.S. income, employment and any other applicable taxes required to be withheld. Options which have become exercisable may be exercised by delivery of written or electronic notice of exercise to the Company (or telephonic instructions to the extent provided by the Committee) in accordance with the terms of the Option accompanied by payment of the Exercise Price. The Exercise Price shall be payable: (i) in cash, check, cash equivalent and/or shares of Common Stock valued at the Fair Market Value at the time the Option is exercised (including, pursuant to procedures approved by the Committee, by means of attestation of ownership of a sufficient number of shares of Common Stock in lieu of actual issuance of such shares to the Company); **provided**, **that** such shares of Common Stock are not subject to any pledge or other security interest and have been held by the Participant for at least six (6) months (or such other period as established from time to time by the Committee in order to avoid adverse accounting treatment applying generally accepted accounting principles ("**GAAP**")); or (ii) by such other method as the Committee may permit, in its sole discretion, including, without limitation (A) in other property having a fair market value on the date of exercise equal to the Exercise Price; (B) if there is a public market for the shares of Common Stock at such time, by means of a broker-assisted "cashless exercise" pursuant to which the Company is delivered (including telephonically to the extent permitted by the Committee) a copy of irrevocable instructions to a stockbroker to sell the shares of Common Stock otherwise issuable upon the exercise of the Option and to deliver promptly to the Company an amount equal to the Exercise Price; or (C) a "net exercise" procedure effected by withholding the minimum number of shares of Common Stock otherwise issuable in respect of an Option that are needed to pay the Exercise Price. Any fractional shares of Common Stock shall be settled in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Notification upon Disqualifying Disposition of an Incentive Stock Option**. Each Participant awarded an Incentive Stock Option under the Plan shall notify the Company in writing immediately after the date the Participant makes a disqualifying disposition of any Common Stock acquired pursuant to the exercise of such Incentive Stock Option. A disqualifying disposition is any disposition (including, without limitation, any sale) of such

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Common Stock before the later of (i) the date that is two (2) years after the Date of Grant of the Incentive Stock Option, or (ii) the date that is one (1) year after the date of exercise of the Incentive Stock Option. The Company may, if determined by the Committee and in accordance with procedures established by the Committee, retain possession, as agent for the applicable Participant, of any Common Stock acquired pursuant to the exercise of an Incentive Stock Option until the end of the period described in the preceding sentence, subject to complying with any instructions from such Participant as to the sale of such Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Compliance With Laws, etc**. Notwithstanding the foregoing, in no event shall a Participant be permitted to exercise an Option in a manner which the Committee determines would violate applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Stock Appreciation Rights**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **General**. Each SAR granted under the Plan shall be evidenced by an Award Agreement. Each SAR so granted shall be subject to the conditions set forth in this Section 8, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. Any Option granted under the Plan may include tandem SARs. The Committee also may award SARs to Eligible Persons independent of any Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Strike Price**. Except as otherwise provided by the Committee in the case of Substitute Awards, the strike price ("**Strike Price**") per share of Common Stock for each SAR shall not be less than one hundred percent (100%) of the Fair Market Value of such share (determined as of the Date of Grant). Notwithstanding the foregoing, a SAR granted in tandem with (or in substitution for) an Option previously granted shall have a Strike Price equal to the Exercise Price of the corresponding Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Vesting and Expiration**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A SAR granted in connection with an Option shall become exercisable and shall expire according to the same vesting schedule and expiration provisions as the corresponding Option. A SAR granted independent of an Option shall vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) SARs shall expire upon a date determined by the Committee, not to exceed ten (10) years from the Date of Grant (the "**SAR Period**"); **provided**, **that**, if the SAR Period would expire at a time when trading in the shares of Common Stock is prohibited by the Company's insider trading policy (or a Company-imposed "blackout period"), then the SAR Period shall be automatically extended until the thirtieth (30th) day following the expiration of such prohibition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Method of Exercise**. SARs which have become exercisable may be exercised by delivery of written or electronic notice of exercise to the Company in accordance with the terms of the Award, specifying the number of SARs to be exercised and the date on which such SARs were awarded.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Payment**. Upon the exercise of a SAR, the Company shall pay to the Participant an amount equal to the number of shares subject to the SAR that is being exercised multiplied by the excess of the Fair Market Value of one (1) share of Common Stock on the exercise date over the Strike Price, less an amount equal to any Federal, state, local and non-U.S. income, employment and any other applicable taxes required to be withheld. The Company shall pay such amount in cash, in shares of Common Stock valued at Fair Market Value, or any combination thereof, as determined by the Committee. Any fractional shares of Common Stock shall be settled in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Restricted Stock and Restricted Stock Units**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **General**. Each grant of Restricted Stock and Restricted Stock Units shall be evidenced by an Award Agreement. Each Restricted Stock and Restricted Stock Unit so granted shall be subject to the conditions set forth in this Section 9, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Stock Certificates and Book-Entry; Escrow or Similar Arrangement**. Upon the grant of Restricted Stock, the Committee shall cause a stock certificate registered in the name of the Participant to be issued or shall cause share(s) of Common Stock to be registered in the name of the Participant and held in book-entry form subject to the Company's directions and, if the Committee determines that the Restricted Stock shall be held by the Company or in escrow rather than issued to the Participant pending the release of the applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the Company (i) an escrow agreement satisfactory to the Committee, if applicable; and (ii) the appropriate stock power (endorsed in blank) with respect to the Restricted Stock covered by such agreement. If a Participant shall fail to execute and deliver (in a manner permitted under Section 15(a) of the Plan or as otherwise determined by the Committee) an agreement evidencing an Award of Restricted Stock and, if applicable, an escrow agreement and blank stock power within the amount of time specified by the Committee, the Award shall be null and void. Subject to the restrictions set forth in this Section 9, Section 15(c) of the Plan and the applicable Award Agreement, a Participant generally shall have the rights and privileges of a stockholder as to shares of Restricted Stock, including, without limitation, the right to vote such Restricted Stock. To the extent shares of Restricted Stock are forfeited, any stock certificates issued to the Participant evidencing such shares shall be returned to the Company, and all rights of the Participant to such shares and as a stockholder with respect thereto shall terminate without further obligation on the part of the Company. A Participant shall have no rights or privileges as a stockholder as to Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Vesting**. Restricted Stock and Restricted Stock Units shall vest, and any applicable Restricted Period shall lapse, in such manner and on such date or dates or upon such event or events as determined by the Committee and noted in the Award Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Issuance of Restricted Stock and Settlement of Restricted Stock Units**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon the expiration of the Restricted Period with respect to any shares of Restricted Stock, the restrictions set forth in the applicable Award Agreement shall be of no further force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement is used, upon such expiration, the Company shall issue to the Participant, or the Participant's beneficiary, without charge, the stock certificate (or, if applicable, a notice evidencing a book-entry notation) evidencing the shares of Restricted Stock which have not then been forfeited and with respect to which the Restricted Period has expired (rounded down to the nearest full share). Dividends, if any, that may have been withheld by the Committee and attributable to any particular share of Restricted Stock shall be distributed to the Participant in cash or, in the sole discretion of the Committee, in shares of Common Stock having a Fair Market Value (on the date of distribution) equal to the amount of such dividends, upon the release of restrictions on such share and, if such share is forfeited, the Participant shall have no right to such dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unless otherwise provided by the Committee in an Award Agreement or otherwise, upon the expiration of the Restricted Period with respect to any outstanding Restricted Stock Units, the Company shall issue to the Participant or the Participant's beneficiary, without charge, one (1) share of Common Stock (or other securities or other property, as applicable) for each such outstanding Restricted Stock Unit; **provided***,* **that** the Committee may, in its sole discretion, elect to (A) pay cash or part cash and part shares of Common Stock in lieu of issuing only shares of Common Stock in respect of such Restricted Stock Units; or (B) defer the issuance of shares of Common Stock (or cash or part cash and part shares of Common Stock, as the case may be) beyond the expiration of the Restricted Period if such extension would not cause adverse tax consequences under Section 409A of the Code. If a cash payment is made in lieu of issuing shares of Common Stock in respect of such Restricted Stock Units, the amount of such payment shall be equal to the Fair Market Value per share of the Common Stock as of the date on which the Restricted Period lapsed with respect to such Restricted Stock Units. Dividends, if any, that may have been withheld by the Committee and attributable to any particular share of Common Stock underlying a Restricted Stock Unit shall be distributed to the Participant in cash or, in the sole discretion of the Committee, in shares of Common Stock having a Fair Market Value (on the date of distribution) equal to the amount of such dividends, upon the settlement of such Restricted Stock Unit and, if such Restricted Stock Unit is forfeited, the Participant shall have no right to such dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Legends on Restricted Stock**. Each certificate, if any, or book entry representing Restricted Stock awarded under the Plan, if any, shall bear a legend or book entry notation substantially in the form of the following, in addition to any other information the Company deems appropriate, until the lapse of all restrictions with respect to such shares of Common Stock:

TRANSFER OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY IS RESTRICTED PURSUANT TO THE TERMS OF THE WHITEHAWK 2025 EQUITY INCENTIVE PLAN AND A RESTRICTED STOCK AWARD AGREEMENT BETWEEN WHITEHAWK INCOME CORPORATION AND PARTICIPANT. A COPY OF SUCH PLAN AND AWARD AGREEMENT IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF WHITEHAWK INCOME CORPORATION.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Other Equity-Based Awards**. The Committee may grant Other Equity-Based Awards under the Plan to Eligible Persons, alone or in tandem with other Awards, in such amounts and dependent on such conditions as the Committee shall from time to time in its sole discretion determine. Each Other Equity-Based Award granted under the Plan shall be evidenced by an Award Agreement and shall be subject to such conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **[Reserved.]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Cash-Based Incentive Awards**. The Committee may grant Cash-Based Incentive Awards under the Plan to any Eligible Person. Each Cash-Based Incentive Award granted under the Plan shall be evidenced in such form as the Committee may determine from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Changes in Capital Structure and Similar Events**. Notwithstanding any other provision in the Plan to the contrary, the following provisions shall apply to all Awards granted hereunder (other than Cash-Based Incentive Awards):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **General**. In the event of (i) any dividend (other than regular cash dividends) or other distribution (whether in the form of cash, shares of Common Stock, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, split-off, spin-off, combination, repurchase or exchange of shares of Common Stock or other securities of the Company, issuance of warrants or other rights to acquire shares of Common Stock or other securities of the Company, or other similar corporate transaction or event that affects the shares of Common Stock (including a Change in Control); or (ii) unusual or nonrecurring events affecting the Company, including changes in applicable rules, rulings, regulations or other requirements, that the Committee determines, in its sole discretion, could result in substantial dilution or enlargement of the rights intended to be granted to, or available for, Participants (any event in (i) or (ii), an "**Adjustment Event**"), the Committee shall, in respect of any such Adjustment Event, make such proportionate substitution or adjustment, if any, as it deems equitable, to any or all of (A) the Absolute Share Limit, or any other limit applicable under the Plan with respect to the number of Awards which may be granted hereunder; (B) the number of shares of Common Stock or other securities of the Company (or number and kind of other securities or other property) which may be issued in respect of Awards or with respect to which Awards may be granted under the Plan or any Sub-Plan; and (C) the terms of any outstanding Award, including, without limitation, (I) the number of shares of Common Stock or other securities of the Company (or number and kind of other securities or other property) subject to outstanding Awards or to which outstanding Awards relate; (II) the Exercise Price or Strike Price with respect to any Award; or (III) any applicable performance measures (including, without limitation, Performance Criteria); **provided**, **that**, in the case of any "equity restructuring" (within the meaning of the Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any successor pronouncement thereto)), the Committee shall make an equitable or proportionate adjustment to outstanding Awards to reflect such equity restructuring.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Change in Control**. Without limiting the foregoing, and unless provided otherwise in an Award Agreement, in connection with any Change in Control, the Committee may, in its sole discretion, provide for any one or more of the following:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) substitution or assumption of Awards, or to the extent that the surviving entity (or Affiliate thereof) of such Change in Control does not substitute or assume the Awards, full acceleration of vesting of, exercisability of, or lapse of restrictions on, as applicable, any Awards; **provided**, **that**, with respect to any performance-vested Awards, any such acceleration of vesting, exercisability, or lapse of restrictions shall be based on the greater of target performance and actual performance through the date of such Change in Control; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) cancellation of any one or more outstanding Awards and payment to the holders of such Awards that are vested as of such cancellation (including, without limitation, any Awards that would vest as a result of the occurrence of such event but for such cancellation or for which vesting is accelerated by the Committee in connection with such event pursuant to clause (i) above), the value of such Awards, if any, as determined by the Committee (which value, if applicable, may be based upon the price per share of Common Stock received or to be received by other stockholders of the Company in such event), including, without limitation, in the case of an outstanding Option or SAR, a cash payment in an amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the Committee) of the shares of Common Stock subject to such Option or SAR over the aggregate Exercise Price or Strike Price of such Option or SAR (it being understood that, in such event, any Option or SAR having a per share Exercise Price or Strike Price equal to, or in excess of, the Fair Market Value of a share of Common Stock subject thereto may be cancelled and terminated without any payment or consideration therefor).

For purposes of clause (i) above, an award will be considered granted in substitution of an Award if it has an equivalent value (as determined consistent with clause (ii) above) with the original Award, whether designated in securities of the acquiror in such Change in Control transaction (or an Affiliate thereof), or in cash or other property (including in the same consideration that other stockholders of the Company receive in connection with such Change in Control transaction), and retains the vesting schedule applicable to the original Award.

Payments to holders pursuant to clause (ii) above shall be made in cash or, in the sole discretion of the Committee, in the form of such other consideration necessary for a Participant to receive property, cash, or securities (or combination thereof) as such Participant would have been entitled to receive upon the occurrence of the transaction if the Participant had been, immediately prior to such transaction, the holder of the number of shares of Common Stock covered by the Award at such time (less any applicable Exercise Price or Strike Price).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Other Requirements**. Prior to any payment or adjustment contemplated under this Section 13, the Committee may require a Participant to (i) represent and warrant as to the unencumbered title to the Participant's Awards; (ii) bear such Participant's pro rata share of any post-closing indemnity obligations, and be subject to the same post-closing purchase price adjustments, escrow terms, offset rights, holdback terms, and similar conditions as the other holders of Common Stock, subject to any limitations or reductions as may be necessary to comply with Section 409A of the Code; and (iii) deliver customary transfer documentation as reasonably determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Fractional Shares**. Any adjustment provided under this Section 13 may provide for the elimination of any fractional share that might otherwise become subject to an Award.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Binding Effect**. Any adjustment, substitution, determination of value or other action taken by the Committee under this Section 13 shall be conclusive and binding for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Initial Public Offering.** In the event of an Initial Public Offering, Awards granted hereunder may be assumed under an equity incentive plan adopted by the Company (or issuer) in connection with such public offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Amendments and Termination**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Amendment and Termination of the Plan**. The Board or Committee may amend, alter, suspend, discontinue, or terminate the Plan or any portion thereof at any time; **provided**, **that** no such amendment, alteration, suspension, discontinuance or termination shall be made without stockholder approval if such approval is necessary to comply with any regulatory requirement applicable to the Plan (including, without limitation, as necessary to comply with any rules or regulations of any securities exchange or inter-dealer quotation system on which the securities of the Company may be listed or quoted) or for changes in GAAP to new accounting standards; **provided***,* **further**, **that** any such amendment, alteration, suspension, discontinuance or termination that would materially and adversely affect the rights of any Participant or any holder or beneficiary of any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant, holder or beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Amendment of Award Agreements**. The Committee may, to the extent consistent with the terms of the Plan and any applicable Award Agreement, waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate, any Award theretofore granted or the associated Award Agreement, prospectively or retroactively (including after a Participant's Termination); **provided**, **that**, other than pursuant to Section 13, any such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would materially and adversely affect the rights of any Participant with respect to any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **No Repricing**. Except as otherwise permitted under Section 13 of the Plan, (i) no amendment or modification may reduce the Exercise Price of any Option or the Strike Price of any SAR; (ii) the Committee may not cancel any outstanding Option or SAR and replace it with a new Option or SAR (with a lower Exercise Price or Strike Price, as the case may be) or other Award or cash payment that is greater than the intrinsic value (if any) of the cancelled Option or SAR; and (iii) the Committee may not take any other action which is considered a "repricing" for purposes of the stockholder approval rules of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or quoted.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **General**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Award Agreements**. Each Award (other than a Cash-Based Incentive Award) under the Plan shall be evidenced by an Award Agreement, which shall be delivered to the Participant to whom such Award was granted and shall specify the terms and conditions of the Award and any rules applicable thereto, including, without limitation, the effect on such Award of the death, Disability or Termination of a Participant, or of such other events as may be determined by the Committee. For purposes of the Plan, an Award Agreement may be in any such form (written or electronic) as determined by the Committee (including, without limitation, a Board or Committee resolution, an employment agreement, a notice, a certificate or a letter) evidencing the Award. The Committee need not require an Award Agreement to be signed by the Participant or a duly authorized representative of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Nontransferability**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Award shall be exercisable only by such Participant to whom such Award was granted during the Participant's lifetime, or, if permissible under applicable law, by the Participant's legal guardian or representative. No Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant (unless such transfer is specifically required pursuant to a domestic relations order or by applicable law) other than by will or by the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against any member of the Company Group; **provided**, **that** the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, the Committee may, in its sole discretion, permit Awards (other than Incentive Stock Options) to be transferred by a Participant, without consideration, subject to such rules as the Committee may adopt consistent with any applicable Award Agreement to preserve the purposes of the Plan, to (A) any person who is a "family member" of the Participant, as such term is used in the instructions to Form S-8 under the Securities Act or any successor form of registration statement promulgated by the Securities and Exchange Commission (collectively, the "**Immediate Family Members**"); (B) a trust solely for the benefit of the Participant and the Participant's Immediate Family Members; (C) a partnership or limited liability company whose only partners or stockholders are the Participant and the Participant's Immediate Family Members; or (D) a beneficiary to whom donations are eligible to be treated as "charitable contributions" for federal income tax purposes (each transferee described in clauses (A), (B), (C) and (D) above is hereinafter referred to as a "**Permitted Transferee**"); **provided**, **that** the Participant gives the Committee advance written notice describing the terms and conditions of the proposed transfer and the Committee notifies the Participant in writing that such a transfer would comply with the requirements of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The terms of any Award transferred in accordance with clause (ii) above shall apply to the Permitted Transferee and any reference in the Plan, or in any applicable Award Agreement, to a Participant shall be deemed to refer to the Permitted Transferee, except that (A) Permitted Transferees shall not be entitled to transfer any Award, other than by will or the laws of descent and distribution; (B) Permitted Transferees shall not be entitled to exercise any transferred Option unless there shall be in effect a registration statement on an appropriate form covering the shares of Common Stock to be acquired pursuant to the exercise of such Option if the Committee determines, consistent with any applicable Award Agreement, that such a registration statement is necessary or appropriate; (C) neither the Committee nor the Company shall be required to provide any notice to a Permitted Transferee, whether or not such notice is or would otherwise have been required to be given to the Participant under the Plan or otherwise; and (D) the consequences of a Participant's Termination under the terms of the Plan and the applicable Award Agreement shall continue to be applied with respect to the Participant, including, without limitation, that an Option shall be exercisable by the Permitted Transferee only to the extent, and for the periods, specified in the Plan and the applicable Award Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Dividends and Dividend Equivalents**. The Committee may, in its sole discretion, provide a Participant as part of an Award (other than an Option or SAR) with dividends, dividend equivalents, or similar payments in respect of Awards, payable in cash, shares of Common Stock, other securities, other Awards or other property, on such terms and conditions as may be determined by the Committee in its sole discretion, including, without limitation, payment at the same time such dividend is otherwise paid to a holder of Common Stock, payment to the Participant when an Award vests and withholding of such amounts by the Company subject to vesting of the Award, or reinvestment in additional shares of Common Stock, Restricted Stock or other Awards. Any dividend or dividend equivalent otherwise payable in respect of any share of Restricted Stock or other Award that remains subject to vesting conditions at the time of payment of such dividend or dividend equivalent may be retained by the Company and remain subject to the same vesting conditions and risks of forfeiture as the underlying Award to which the dividend or dividend equivalent relates, at the discretion of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Tax Withholding**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A Participant shall be required to pay to the Company or one or more of its Subsidiaries, as applicable, an amount in cash (by check or wire transfer) equal to the aggregate amount of any income, employment and/or other applicable taxes that are statutorily required to be withheld in respect of an Award. Alternatively, the Company or any of its Subsidiaries may elect, in its sole discretion, to satisfy this requirement by withholding such amount from any cash compensation or other cash amounts owing to a Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the foregoing, the Committee may (but is not obligated to), in its sole discretion, permit or require a Participant to satisfy, all or any portion of the minimum income, employment and/or other applicable taxes that are statutorily required to be withheld with respect to an Award by (A) the delivery of shares of Common Stock (which are not subject to any pledge or other security interest) that have been both held by the Participant and vested for at least six (6) months (or such other period as established from time to time by the Committee in order to avoid adverse accounting treatment under applicable accounting standards) having an aggregate Fair Market Value equal to such minimum statutorily required withholding liability (or portion thereof); or (B) having the Company withhold from the shares of Common Stock otherwise issuable or deliverable to, or that would otherwise be retained by, the Participant upon the grant, exercise, vesting or settlement of the Award, as applicable, a number of shares of Common Stock with an aggregate Fair Market Value equal to an amount, subject to clause (iii) below, not in excess of such minimum statutorily required withholding liability (or portion thereof).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Committee has full discretion to allow Participants to satisfy, in whole or in part, any additional income, employment and/or other applicable taxes payable by them with respect to an Award by electing to have the Company withhold from the shares of Common Stock otherwise issuable or deliverable to, or that would otherwise be retained by, a Participant upon the grant, exercise, vesting or settlement of the Award, as applicable, shares of Common Stock having an aggregate Fair Market Value that is greater than the applicable minimum required statutory withholding liability (but such withholding may in no event be in excess of the maximum statutory withholding amount(s) in a Participant's relevant tax jurisdictions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Data Protection**. By participating in the Plan or accepting any rights granted under it, each Participant consents to the collection and processing of personal data relating to the Participant so that the Company and its Affiliates can fulfill their obligations and exercise their rights under the Plan and generally administer and manage the Plan. This data will include, but may not be limited to, data about participation in the Plan and shares offered or received, purchased, or sold under the Plan from time to time and other appropriate financial and other data (such as the date on which the Awards were granted) about the Participant and the Participant's participation in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **No Claim to Awards; No Rights to Continued Employment; Waiver**. No employee of any member of the Company Group, or other Person, shall have any claim or right to be granted an Award under the Plan or, having been selected for the grant of an Award, to be selected for a grant of any other Award. There is no obligation for uniformity of treatment of Participants or holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee's determinations and interpretations with respect thereto need not be the same with respect to each Participant and may be made selectively among Participants, whether or not such Participants are similarly situated. Neither the Plan nor any action taken hereunder shall be construed as giving any Participant any right to be retained in the employ or service of the Service Recipient or any other member of the Company Group, nor shall it be construed as giving any Participant any rights to continued service on the Board. The Service Recipient or any other member of the Company Group may at any time dismiss a Participant from employment or discontinue any consulting relationship, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan or any Award Agreement. By accepting an Award under the Plan, a Participant shall thereby be deemed to have waived any claim to continued exercise or vesting of an Award or to damages or severance entitlement related to non-continuation of the Award beyond the period provided under the Plan or any Award Agreement, except to the extent of any provision to the contrary in any written employment contract or other agreement between the Service Recipient and/or any member of the Company Group and the Participant, whether any such agreement is executed before, on or after the Date of Grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **International Participants**. With respect to Participants who reside or work outside of the United States of America, the Committee may, in its sole discretion, amend the terms of the Plan and create or amend Sub-Plans or amend outstanding Awards with respect to such Participants in order to conform such terms with the requirements of local law or to obtain more favorable tax or other treatment for a Participant or any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Designation and Change of Beneficiary**. Each Participant may file with the Committee a written designation of one or more Persons as the beneficiary or beneficiaries, as applicable, who shall be entitled to receive the amounts payable with respect to an Award, if any, due under the Plan upon the Participant's death. A Participant may, from time to time, revoke or change the Participant's beneficiary designation without the consent of any prior beneficiary by filing a new designation with the Committee. The last such designation received by the

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Committee shall be controlling; **provided**, **that** no designation, or change or revocation thereof, shall be effective unless received by the Committee prior to the Participant's death, and in no event shall it be effective as of a date prior to such receipt. If no beneficiary designation is filed by a Participant, the beneficiary shall be deemed to be the Participant's spouse or, if the Participant is unmarried at the time of death, the Participant's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Termination**. Except as otherwise provided in an Award Agreement, unless determined otherwise by the Committee at any point following such event: (i) neither a temporary absence from employment or service due to illness, vacation or leave of absence (including, without limitation, a call to active duty for military service through a Reserve or National Guard unit) nor a transfer from employment or service with one Service Recipient to employment or service with another Service Recipient (or vice-versa) shall be considered a Termination; and (ii) if a Participant undergoes a Termination of employment, but such Participant continues to provide services to the Company Group in a non-employee capacity, such change in status shall not be considered a Termination for purposes of the Plan. Further, unless otherwise determined by the Committee, in the event that any Service Recipient ceases to be a member of the Company Group (by reason of sale, divestiture, spin-off or other similar transaction), unless a Participant's employment or service is transferred to another entity that would constitute a Service Recipient immediately following such transaction, such Participant shall be deemed to have suffered a Termination hereunder as of the date of the consummation of such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **No Rights as a Stockholder**. Except as otherwise specifically provided in the Plan or any Award Agreement, no Person shall be entitled to the privileges of ownership in respect of shares of Common Stock which are subject to Awards hereunder until such shares have been issued or delivered to such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Government and Other Regulations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The obligation of the Company to settle Awards in shares of Common Stock or other consideration shall be subject to all applicable laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or selling, any shares of Common Stock pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities Act with the Securities and Exchange Commission or unless the Company has received an opinion of counsel (if the Company has requested such an opinion), satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to register for sale under the Securities Act any of the shares of Common Stock to be offered or sold under the Plan. The Committee shall have the authority to provide that all shares of Common Stock or other securities of any member of the Company Group issued under the Plan shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the Plan, the applicable Award Agreement, the Federal securities laws, or the rules, regulations and other requirements of the Securities and Exchange Commission, any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or quoted and any

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other applicable Federal, state, local or non-U.S. laws, rules, regulations and other requirements, and, without limiting the generality of Section 9 of the Plan, the Committee may cause a legend or legends to be put on certificates representing shares of Common Stock or other securities of any member of the Company Group issued under the Plan to make appropriate reference to such restrictions or may cause such Common Stock or other securities of any member of the Company Group issued under the Plan in book-entry form to be held subject to the Company's instructions or subject to appropriate stop-transfer orders. Notwithstanding any provision in the Plan to the contrary, the Committee reserves the right to, at any time, add any additional terms or provisions to any Award granted under the Plan that the Committee, in its sole discretion, deems necessary or advisable in order that such Award complies with the legal requirements of any governmental entity to whose jurisdiction the Award is subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Committee may cancel an Award or any portion thereof if it determines, in its sole discretion, that legal or contractual restrictions and/or blockage and/or other market considerations would make the Company's acquisition of shares of Common Stock from the public markets, the Company's issuance of Common Stock to the Participant, the Participant's acquisition of Common Stock from the Company and/or the Participant's sale of Common Stock to the public markets, illegal, impracticable or inadvisable. If the Committee determines to cancel all or any portion of an Award in accordance with the foregoing, the Company shall, subject to any limitations or reductions as may be necessary to comply with Section 409A of the Code, (A) pay to the Participant an amount equal to the excess of (I) the aggregate Fair Market Value of the shares of Common Stock subject to such Award or portion thereof cancelled (determined as of the applicable exercise date, or the date that the shares would have been vested or issued, as applicable); over (II) the aggregate Exercise Price or Strike Price (in the case of an Option or SAR, respectively) or any amount payable as a condition of issuance of shares of Common Stock (in the case of any other Award). Such amount shall be delivered to the Participant as soon as practicable following the cancellation of such Award or portion thereof, or (B) in the case of Restricted Stock, Restricted Stock Units or Other Equity-Based Awards, provide the Participant with a cash payment or equity subject to deferred vesting and delivery consistent with the vesting restrictions applicable to such Restricted Stock, Restricted Stock Units or Other Equity-Based Awards, or the underlying shares in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **No Section 83(b) Elections Without Consent of Company**. No election under Section 83(b) of the Code or under a similar provision of law may be made unless expressly permitted by the terms of the applicable Award Agreement or by action of the Company in writing prior to the making of such election. If a Participant, in connection with the acquisition of shares of Common Stock, under the Plan or otherwise, is expressly permitted to make such election and the Participant makes the election, the Participant shall notify the Company of such election within ten (10) days of filing notice of the election with the Internal Revenue Service or other governmental authority, in addition to any filing and notification required pursuant to Section 83(b) of the Code or other applicable provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **Payments to Persons Other Than Participants**. If the Committee shall find that any Person to whom any amount is payable under the Plan is unable to care for the Participant's affairs because of illness or accident, or is a minor, or has died, then any payment due to such Person or the Participant's estate (unless a prior claim therefor has been made by a duly appointed legal representative) may, if the Committee so directs the Company, be paid to the Participant's spouse, child, relative, an institution maintaining or having custody of such Person, or any other Person deemed by the Committee to be a proper recipient on behalf of such Person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **Nonexclusivity of the Plan**. Neither the adoption of the Plan by the Committee nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Committee or Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of equity-based awards otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **No Trust or Fund Created**. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between any member of the Company Group, on the one hand, and a Participant or other Person, on the other hand. No provision of the Plan or any Award shall require the Company, for the purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company be obligated to maintain separate bank accounts, books, records or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights under the Plan other than as unsecured general creditors of the Company, except that insofar as they may have become entitled to payment of additional compensation by performance of services, they shall have the same rights as other service providers under general law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **Reliance on Reports**. Each member of the Committee and each member of the Board shall be fully justified in acting or failing to act, as the case may be, and shall not be liable for having so acted or failed to act in good faith, in reliance upon any report made by the independent public accountant of any member of the Company Group and/or any other information furnished in connection with the Plan by any agent of the Company or the Committee or the Board, other than himself or herself.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **Relationship to Other Benefits**. No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically provided in such other plan or as required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) **Governing Law**. The Plan shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws provisions thereof. EACH PARTICIPANT WHO ACCEPTS AN AWARD IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION, OR OTHER PROCEEDING INSTITUTED BY OR AGAINST SUCH PARTICIPANT IN RESPECT OF THE PARTICIPANT'S RIGHTS OR OBLIGATIONS HEREUNDER.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) **Severability**. If any provision of the Plan or any Award or Award Agreement is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be construed or deemed stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) **Obligations Binding on Successors**. The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to substantially all of the assets and business of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) **Section 409A of the Code**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding any provision of the Plan to the contrary, it is intended that the provisions of the Plan comply with Section 409A of the Code, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code. Each Participant is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or in respect of such Participant in connection with the Plan (including any taxes and penalties under Section 409A of the Code), and neither the Service Recipient nor any other member of the Company Group shall have any obligation to indemnify or otherwise hold such Participant (or any beneficiary) harmless from any or all of such taxes or penalties. With respect to any Award that is considered "deferred compensation" subject to Section 409A of the Code, references in the Plan to "termination of employment" (and substantially similar phrases) shall mean "separation from service" within the meaning of Section 409A of the Code. For purposes of Section 409A of the Code, each of the payments that may be made in respect of any Award granted under the Plan is designated as a separate payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding anything in the Plan to the contrary, if a Participant is a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) of the Code, to the extent necessary to avoid the imposition of additional taxes thereunder, no payments in respect of any Awards that are "deferred compensation" subject to Section 409A of the Code and which would otherwise be payable upon the Participant's "separation from service" (as defined in Section 409A of the Code) shall be made to such Participant prior to the date that is six (6) months after the date of such Participant's "separation from service" or, if earlier, the date of the Participant's death. Following any applicable six (6) month delay, all such delayed payments will be paid in a single lump sum on the earliest date permitted under Section 409A of the Code that is also a business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) Notwithstanding the foregoing, to the extent that any Award constitutes a deferral of compensation subject to Section 409A of the Code, and if that Award provides for payment or a change in the time or form of payment based upon a Change in Control, then, solely for purposes of applying such payment or a change in the time or form of payment provision (and, for the avoidance of doubt, not for purposes of determining whether the Award shall benefit from the vesting acceleration resulting from a Change In Control), a Change in Control shall not be deemed to have occurred upon an event described in this definition unless

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the event would also constitute a change in ownership or effective control of, or a change in ownership of a substantial portion of the assets of, the Company under Section 409A of the Code, and if the Award is not payable upon or by reference to a Change in Control, the Award shall instead be paid based on the general distribution date or event provided for in the Award Agreement, and in any event in compliance with Section 409A of the Code; and (B) unless otherwise provided by the Committee in an Award Agreement or otherwise, in the event that the timing of payments in respect of any Award (that would otherwise be considered "deferred compensation" subject to Section 409A of the Code) would be accelerated upon the occurrence of a Disability, no such acceleration shall be permitted unless the Disability also satisfies the definition of "Disability" pursuant to Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **Clawback/Repayment**. All Awards shall be subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with (i) any clawback, forfeiture or other similar policy adopted by the Board or the Committee and as in effect from time to time; and (ii) applicable law. Further, to the extent that the Participant receives any amount in excess of the amount that the Participant should otherwise have received under the terms of the Award for any reason (including, without limitation, by reason of a financial restatement, mistake in calculations or other administrative error), the Participant shall be required to repay any such excess amount to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) **Right of Offset**. The Company will have the right to offset against its obligation to deliver shares of Common Stock (or other property or cash) under the Plan or any Award Agreement any outstanding amounts (including, without limitation, travel and entertainment or advance account balances, loans, repayment obligations under any Awards, or amounts repayable to the Company pursuant to tax equalization, housing, automobile or other employee programs) that the Participant then owes to any member of the Company Group and any amounts the Committee otherwise deems appropriate pursuant to any tax equalization policy or agreement. Notwithstanding the foregoing, if an Award is "deferred compensation" subject to Section 409A of the Code, the Committee will have no right to offset against its obligation to deliver shares of Common Stock (or other property or cash) under the Plan or any Award Agreement if such offset could subject the Participant to the additional tax imposed under Section 409A of the Code in respect of an outstanding Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) **Expenses; Titles and Headings**. The expenses of administering the Plan shall be borne by the Company Group. The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

## Exhibit 10.10

**Exhibit 10.10** 

**WHITEHAWK INCOME CORPORATION** 

**RESTRICTED STOCK UNIT GRANT AGREEMENT** 

**EMPLOYEE** 

THIS RESTRICTED STOCK UNIT GRANT AGREEMENT (this "**Agreement**") is made as of ____________________ (the "**Date of Grant**") by and between WhiteHawk Income Corporation, a Delaware corporation (the "**Company**"), and ____________________ (the "**Grantee**").

**WHEREAS**, the Company has adopted the WhiteHawk 2026 Equity Incentive Plan (the "**Plan**") pursuant to which awards of Restricted Stock Units may be granted; and

**WHEREAS**, the Board of Directors of the Company (the "**Board**") has determined that it would be in the best interest of the Company to grant to Grantee the Restricted Stock Units described herein on the terms and conditions hereinafter set forth; and

**WHEREAS**, the Board has determined that it is in the best interests of the Company and its shareholders to grant the award of Restricted Stock Units provided for herein.

NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant of Restricted Stock Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Pursuant to Section 9 of the Plan, the Company hereby issues to the Grantee on the Date of Grant an Award consisting of, in the aggregate, ____________________ Restricted Stock Units (the "**Restricted Stock Units**"). Each Restricted Stock Unit granted under this Agreement represents the right to receive one share of Common Stock (each a "**Share**" of "**Stock**"), subject to the terms and conditions set forth in this Agreement and the Plan. Capitalized terms that are used but not defined herein have the meaning ascribed to them in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 The Restricted Stock Units shall be credited to a separate account maintained for the Grantee on the books and records of the Company (the "**Restricted Stock Unit Account**"). The Restricted Stock Units represent an unfunded, unsecured obligation of the Company. Neither the Restricted Stock Units nor any amounts credited to the Restricted Stock Unit Account represent any interest in or claim to any fund or specific assets of the Company. Unless and until the Restricted Stock Units vest and Shares are issued and delivered in respect of the vested Restricted Stock Units as provided in Section 3 and Section 6 hereof, the Restricted Stock Units represent hypothetical Shares of Stock. While the Restricted Share Units are granted to Grantee as of the Date of Grant, the Grantee shall not have any rights and/or privileges of a stockholder with respect to any Shares that may be issued in respect of the Restricted Stock Units unless and until the Restricted Stock Units shall have vested and the underlying Shares have been issued and delivered to Grantee in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Consideration</u>. The grant of the Restricted Stock Units is made in consideration of the services to be rendered by the Grantee to the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Vesting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Except as otherwise provided herein, provided that the Grantee remains in Continuous Service through the applicable vesting date(s), the Restricted Stock Units, or equivalent value units as mutually agreed upon by the Company and Grantee, will vest in accordance with the following schedule (the period during which restrictions apply, the "**Restricted Period**"):

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| | |
|:---|:---|
| **Vesting Date** | **Number of Restricted Stock Units That Vest** |
|  One Year Anniversary of the Vesting Commencement Date | 25.00% |
|  Two Year Anniversary of the Vesting Commencement Date | 25.00% |
|  Three Year Anniversary of the Vesting Commencement Date | 25.00% |
|  Four Year Anniversary of the Vesting Commencement Date | 25.00% |

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Once vested, the Restricted Stock Units become "**Vested Units**." "**Vesting Commencement Date**" shall mean the Date of Grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The foregoing vesting schedule notwithstanding, if the Grantee's Continuous Service terminates for any reason other than due to death or Disability at any time before all of their Restricted Stock Units have vested, the Grantee's unvested Restricted Stock Units shall be automatically forfeited upon such termination of Continuous Service and neither the Company nor any Affiliate shall have any further obligations to the Grantee under this Agreement; provided that, if the Grantee's Continuous Service is terminated by the Company other than for Cause, the unvested Restricted Stock Units shall remain outstanding and eligible to vest for ninety (90) days following such termination if there is a Change of Control consummated during such ninety (90) day period and if a Change of Control is not consummated during such period, any Restricted Stock Units that were unvested as of such termination shall be forfeited. If the Grantee's Continuous Service terminates as a result of the Grantee's death or Disability, 100% of the unvested Restricted Stock Units shall vest as of the date of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 The foregoing vesting schedule notwithstanding, 100% of the Grantee's unvested Restricted Stock Units shall vest as of the date of: (i) (x) a Change of Control and (y) within ninety (90) days of such Change of Control, the termination of Grantee's Continuous Service by the Company other than for Cause or (ii) such other transaction or event as may be determined by the Board in its sole discretion. If the Restricted Stock Units do not vest as provided above, then the Restricted Share Units shall be forfeited as of the applicable termination date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Restrictions</u>. Subject to any exceptions set forth in this Agreement or the Plan, during the Restricted Period and until such time as the Restricted Stock Units are settled in accordance with Section 6, the Restricted Stock Units or the rights relating thereto may not be assigned, alienated, pledged, attached, sold, or otherwise transferred or encumbered by the Grantee. Any attempt to assign, alienate, pledge, attach, sell, or otherwise transfer or encumber the Restricted Stock Units or the rights relating thereto shall be wholly ineffective, and if any such attempt is made, the Restricted Stock Units will be forfeited by the Grantee and all of the Grantee's rights to such units shall immediately terminate without any payment or consideration by the Company. Prior to a Liquidity Event, no Shares acquired on settlement of the RSUs may be transferred or disposed of in any way by the Grantee, except by will or the laws of descent and distribution, or pursuant to this Agreement. In the event of any attempted transfer or disposition in violation of this Agreement, including, without limitation, levy or attachment, execution, or similar process upon the rights or interests hereby conferred, the Board may terminate the Shares subject to such attempted transfer or disposition by notice to the Grantee and those Shares, in which case all rights hereunder with respect thereto shall thereupon become null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Rights as Shareholder; Dividends</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 The Grantee shall not have any rights of a shareholder with respect to the shares of Common Stock underlying the Restricted Stock Units unless and until the Restricted Stock Units vest and are settled by the issuance of such shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Upon and following the settlement of the Restricted Stock Units, the Grantee shall be the record owner of the shares of Common Stock underlying the Restricted Stock Units unless and until such shares are sold or otherwise disposed of, and as record owner shall be entitled to all rights of a shareholder of the Company (including voting rights).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 If, prior to the settlement date, the Company declares a cash or stock dividend on the shares of Common Stock, then, on the payment date of the dividend, the Grantee shall be paid an amount in cash or stock, depending on the type of dividend paid to holders of Common Stock, equal to the dividend per share of Common Stock with respect to each Restricted Stock Unit granted hereunder

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Settlement of Restricted Stock Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Subject to Section 9 hereof, promptly following the vesting date, and in any event no later than two and one half months after the end of the calendar year in which such vesting occurs, the Company shall (a) issue and deliver to the Grantee the number of shares of Common Stock equal to the number of Vested Units; and (b) enter the Grantee's name on the books of the Company as the shareholder of record with respect to the shares of Common Stock delivered to the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 To the extent that the Grantee does not vest in any Restricted Stock Units, all interest in such Restricted Stock Units shall be forfeited. The Grantee has no right or interest in any Restricted Stock Units that are forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>No Right to Continued Service</u>. Neither the Plan nor this Agreement shall confer upon the Grantee any right to be retained in any position, as an Employee, Consultant, or Director of the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Grantee's Continuous Service at any time, with or without Cause.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Adjustments</u>. If any change is made to the outstanding Common Stock or the capital structure of the Company, if required, the Restricted Stock Units shall be adjusted or terminated in any manner as contemplated by Section 13 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Tax Liability and Withholding</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 The Grantee shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid to the Grantee pursuant to the Plan, the amount of any required withholding taxes in respect of the Restricted Stock Units and to take all such other action as the Board deems necessary to satisfy all obligations for the payment of such withholding taxes. The Board may permit the Grantee to satisfy any federal, state, or local tax withholding obligation by any of the following means, or by a combination of such means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) tendering a cash payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable or deliverable to the Grantee as a result of the vesting of the Restricted Stock Units; provided, however, that no shares of Common Stock shall be withheld with a value exceeding the maximum amount of tax required to be withheld by law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) delivering to the Company previously owned and unencumbered shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding ("**Tax-Related Items**"), the ultimate liability for all Tax-Related Items is and remains the Grantee's responsibility and the Company (a) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting, or settlement of the Restricted Stock Units or the subsequent sale of any shares; and (b) does not commit to structure the Restricted Stock Units to reduce or eliminate the Grantee's liability for Tax-Related Items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Public Offering and Lock-Up Agreement</u>. The Grantee agrees that upon the listing of any Company stock on a national securities exchange or a quotation through a national quotation system, the Company (or a representative of the underwriters) may require that the Grantee not sell or otherwise dispose of any shares of Common Stock during such period (not to exceed 180 days) following the effective date of the registration statement. The Grantee further understands that the Company may impose stop-transfer restrictions with respect to securities subject to these restrictions until the end of such period. This Award may be assumed under any equity incentive plan adopted by the Company (or the issuer) in connection with such public offering.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Compliance with Law</u>. The issuance and transfer of shares of Common Stock shall be subject to compliance by the Company and the Grantee with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company's shares of Common Stock may be listed. No shares of Common Stock shall be issued or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. The Grantee understands that the Company is under no obligation to register the shares of Common Stock with the Securities and Exchange Commission, and any state securities commission or any stock exchange to effect such compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Notices</u>. Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to an executive officer the Company at the Company's principal corporate offices. Any notice required to be delivered to the Grantee under this Agreement shall be in writing and addressed to the Grantee at the Grantee's address as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Governing Law</u>. This Agreement will be construed and interpreted in accordance with the laws of the State of Delaware without regard to conflict of law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Clawback</u><u>/Forfeiture</u>. By accepting the Restricted Stock Units, the Grantee acknowledges that the Restricted Stock Units are subject to clawback or forfeiture in accordance with this Section 14 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 <u>Detrimental Activity</u>. If the Grantee has engaged or engages in Detrimental Activity, the Board may cancel the Restricted Stock Units or require the Grantee to forfeit any gain realized on the settlement of the Restricted Stock Units and repay the gain to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 <u>Repayment of Excess Amounts</u>. If the Grantee receives any amount in excess of what the Grantee should have received under the terms of the Plan and this Agreement for any reason (including by reason of a financial restatement), then the Grantee shall be required to repay any such excess amount to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3 <u>Compliance with Applicable Laws</u>. The Restricted Stock Units are subject to reduction, cancellation, forfeiture, or recoupment to the extent necessary to comply with Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Interpretation</u>. Any dispute regarding the interpretation of this Agreement shall be submitted by the Grantee or the Company to the Board for review. The resolution of such dispute by the Board shall be final and binding on the Grantee and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Restricted Stock Units Subject to Plan</u>. This Agreement is subject to the Plan as approved by the Company's shareholders. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon the Grantee and the Grantee's beneficiaries, executors, and administrators and the person(s) to whom the Restricted Stock Units may be transferred by will or the laws of descent or distribution.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Severability</u>. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Discretionary Nature of Plan</u>. The Plan is discretionary and may be amended, cancelled, or terminated by the Company at any time, in its discretion. The grant of the Restricted Stock Units in this Agreement does not create any contractual right or other right to receive any Restricted Stock Units or other Awards in the future. Future Awards, if any, will be at the sole discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Grantee's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Amendment</u>. The Board has the right to amend, alter, suspend, discontinue, or cancel the Restricted Stock Units, prospectively or retroactively; provided, that no such amendment shall adversely affect the Grantee's material rights under this Agreement without the Grantee's consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Section 409A</u>. This Agreement is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Grantee on account of non-compliance with Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>No Impact on Other Benefits</u>. The value of the Grantee's Restricted Stock Units is not part of the Grantee's normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance, or similar employee benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Acceptance</u>. The Grantee hereby acknowledges receipt of a copy of the Plan and this Agreement. The Grantee has read and understands the terms and provisions thereof and accepts the Restricted Stock Units subject to all of the terms and conditions of the Plan and this Agreement. The Grantee acknowledges that there may be adverse tax consequences upon the vesting or settlement of the Restricted Stock Units or disposition of the underlying shares and that the Grantee has been advised to consult a tax advisor prior to such vesting, settlement, or disposition.

[SIGNATURE PAGE FOLLOWS]

------

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

---

| |
|:---|
| Grantor: |
| WHITEHAWK INCOME CORPORATION |
| By: |
| Name: |
| Title: |
| Grantee: |
| Name: |

---

**Acknowledgment and Agreement of Spouse** 

The undersigned spouse of the Grantee acknowledges that they have read this Agreement and agree to be bound by its terms to the extent that the Grantee has executed such document.

Name:

**Declaration of Unmarried Status** 

The Grantee hereby declares that they are not married as of the date hereof.

Name:

## Exhibit 10.11

**Exhibit 10.11** 

**WHITEHAWK INCOME CORPORATION** 

**RESTRICTED STOCK UNIT GRANT AGREEMENT** 

**NON-EMPLOYEE DIRECTOR** 

THIS RESTRICTED STOCK UNIT GRANT AGREEMENT (this "**Agreement**") is made as of ____________________ (the "**Date of Grant**") by and between WhiteHawk Income Corporation, a Delaware corporation (the "**Company**"), and ____________________ (the "**Grantee**").

**WHEREAS**, the Company has adopted the WhiteHawk 2026 Equity Incentive Plan (the "**Plan**") pursuant to which awards of Restricted Stock Units may be granted; and

**WHEREAS**, the Board of Directors of the Company (the "**Board**") has determined that it would be in the best interest of the Company to grant to Grantee the Restricted Stock Units described herein on the terms and conditions hereinafter set forth; and

**WHEREAS**, the Board has determined that it is in the best interests of the Company and its shareholders to grant the award of Restricted Stock Units provided for herein.

NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant of</u><u> </u><u>Restricted Stock</u> <u>Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Pursuant to Section 9 of the Plan, the Company hereby issues to the Grantee on the Date of Grant an Award consisting of, in the aggregate, ____________________ Restricted Stock Units (the "**Restricted Stock Units**"). Each Restricted Stock Unit granted under this Agreement represents the right to receive one share of Common Stock (each a "**Share**" of "**Stock**"), subject to the terms and conditions set forth in this Agreement and the Plan. Capitalized terms that are used but not defined herein have the meaning ascribed to them in the Plan. Grantee acknowledges and agrees that this Agreement supersedes any equity incentive awards purported to be granted to the Grantee prior to the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 The Restricted Stock Units shall be credited to a separate account maintained for the Grantee on the books and records of the Company (the "**Restricted Stock Unit Account**"). The Restricted Stock Units represent an unfunded, unsecured obligation of the Company. Neither the Restricted Stock Units nor any amounts credited to the Restricted Stock Unit Account represent any interest in or claim to any fund or specific assets of the Company. Unless and until the Restricted Stock Units vest and Shares are issued and delivered in respect of the vested Restricted Stock Units as provided in Section 3 and Section 6 hereof, the Restricted Stock Units represent hypothetical Shares of Stock. While the Restricted Share Units are granted to Grantee as of the Date of Grant, the Grantee shall not have any rights and/or privileges of a stockholder with respect to any Shares that may be issued in respect of the Restricted Stock Units unless and until the Restricted Stock Units shall have vested and the underlying Shares have been issued and delivered to Grantee in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Consideration</u>. The grant of the Restricted Stock Units is made in consideration of the services to be rendered by the Grantee to the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Vesting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Participant's Restricted Stock Units shall fully vest upon the earlier of: (a) the removal of Participant as an independent director by the Company following the first anniversary of the Vesting Commencement Date; or (ii) a Liquidity Event (the period during which restrictions apply, the "**Restricted Period**"). "**Vesting Commencement Date**" means ____________________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 If the Restricted Stock Units do not vest as provided in Section 3, then the Restricted Stock Units shall be forfeited as of the termination date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Notwithstanding Section 3.1, upon the Participant's termination of services as a director by reason of her death or disability, the Restricted Stock Units shall immediately fully vest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Restrictions</u>. Subject to any exceptions set forth in this Agreement or the Plan, during the Restricted Period and until such time as the Restricted Stock Units are settled in accordance with Section 6, the Restricted Stock Units or the rights relating thereto may not be assigned, alienated, pledged, attached, sold, or otherwise transferred or encumbered by the Grantee. Any attempt to assign, alienate, pledge, attach, sell, or otherwise transfer or encumber the Restricted Stock Units or the rights relating thereto shall be wholly ineffective, and if any such attempt is made, the Restricted Stock Units will be forfeited by the Grantee and all of the Grantee's rights to such units shall immediately terminate without any payment or consideration by the Company. Prior to a Liquidity Event, no Shares acquired on settlement of the RSUs may be transferred or disposed of in any way by the Grantee, except by will or the laws of descent and distribution, or pursuant to this Agreement. In the event of any attempted transfer or disposition in violation of this Agreement, including, without limitation, levy or attachment, execution, or similar process upon the rights or interests hereby conferred, the Board may terminate the Shares subject to such attempted transfer or disposition by notice to the Grantee and those Shares, in which case all rights hereunder with respect thereto shall thereupon become null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Rights</u><u> </u><u>as</u><u> </u><u>Shareholder;</u> <u>Dividends</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 The Grantee shall not have any rights of a shareholder with respect to the shares of Common Stock underlying the Restricted Stock Units unless and until the Restricted Stock Units vest and are settled by the issuance of such shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Upon and following the settlement of the Restricted Stock Units, the Grantee shall be the record owner of the shares of Common Stock underlying the Restricted Stock Units unless and until such shares are sold or otherwise disposed of, and as record owner shall be entitled to all rights of a shareholder of the Company (including voting rights).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 If, prior to the settlement date, the Company declares a cash or stock dividend on the shares of Common Stock, then, on the payment date of the dividend, the Grantee shall be paid an amount in cash or stock, depending on the type of dividend paid to holders of Common Stock, equal to the dividend per share of Common Stock with respect to each Restricted Stock Unit granted hereunder

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Settlement</u><u> </u><u>of</u><u> </u><u>Restricted Stock</u><u> </u><u>Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Subject to Section 9 hereof, promptly following the vesting date, and in any event no later than two and one half months after the end of the calendar year in which such vesting occurs, the Company shall (a) issue and deliver to the Grantee the number of shares of Common Stock equal to the number of Vested Units; and (b) enter the Grantee's name on the books of the Company as the shareholder of record with respect to the shares of Common Stock delivered to the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 To the extent that the Grantee does not vest in any Restricted Stock Units, all interest in such Restricted Stock Units shall be forfeited. The Grantee has no right or interest in any Restricted Stock Units that are forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>No Right to</u> <u>Continued Service</u>. Neither the Plan nor this Agreement shall confer upon the Grantee any right to be retained in any position, as an Employee, Consultant, or Director of the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Grantee's Continuous Service at any time, with or without Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Adjustments</u>. If any change is made to the outstanding Common Stock or the capital structure of the Company, if required, the Restricted Stock Units shall be adjusted or terminated in any manner as contemplated by Section 13 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Tax Liability</u><u> </u><u>and</u><u> </u><u>Withholding</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 To the extent applicable, Grantee shall be solely responsible for the payment and withholding of all income, payroll and other taxes attributable to Grantee under this Agreement, and Grantee shall timely remit all taxes to the Internal Revenue Service and any other required governmental agencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding ("**Tax-Related Items**"), the ultimate liability for all Tax-Related Items is and remains the Grantee's responsibility and the Company (a) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting, or settlement of the Restricted Stock Units or the subsequent sale of any shares; and (b) does not commit to structure the Restricted Stock Units to reduce or eliminate the Grantee's liability for Tax-Related Items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Public Offering and Lock-Up Agreement</u>. The Grantee agrees that upon the listing of any Company stock on a national securities exchange or a quotation through a national quotation system, the Company (or a representative of the underwriters) may require that the Grantee not sell or otherwise dispose of any shares of Common Stock during such period (not to exceed 180 days) following the effective date of the registration statement. The Grantee further understands that the Company may impose stop-transfer restrictions with respect to securities subject to these restrictions until the end of such period. This Award may be assumed under any equity incentive plan adopted by the Company (or the issuer) in connection with such public offering

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Compliance with Law</u>. The issuance and transfer of shares of Common Stock shall be subject to compliance by the Company and the Grantee with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company's shares of Common Stock may be listed. No shares of Common Stock shall be issued or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. The Grantee understands that the Company is under no obligation to register the shares of Common Stock with the Securities and Exchange Commission, and any state securities commission or any stock exchange to effect such compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Notices</u>. Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to an executive officer the Company at the Company's principal corporate offices. Any notice required to be delivered to the Grantee under this Agreement shall be in writing and addressed to the Grantee at the Grantee's address as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Governing Law</u>. This Agreement will be construed and interpreted in accordance with the laws of the State of Delaware without regard to conflict of law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Clawback</u><u>/Forfeiture</u>. By accepting the Restricted Stock Units, the Grantee acknowledges that the Restricted Stock Units are subject to clawback or forfeiture in accordance with this Section 14 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 <u>Detrimental Activity</u>. If the Grantee has engaged or engages in Detrimental Activity, the Board may cancel the Restricted Stock Units or require the Grantee to forfeit any gain realized on the settlement of the Restricted Stock Units and repay the gain to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 <u>Repayment</u><u> </u><u>of</u><u> </u><u>Excess</u><u> </u><u>Amounts</u>. If the Grantee receives any amount in excess of what the Grantee should have received under the terms of the Plan and this Agreement for any reason (including by reason of a financial restatement), then the Grantee shall be required to repay any such excess amount to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3 <u>Compliance with Applicable Laws</u>. The Restricted Stock Units are subject to reduction, cancellation, forfeiture, or recoupment to the extent necessary to comply with Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Interpretation</u>. Any dispute regarding the interpretation of this Agreement shall be submitted by the Grantee or the Company to the Board for review. The resolution of such dispute by the Board shall be final and binding on the Grantee and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Restricted Stock Units Subject to Plan</u>. This Agreement is subject to the Plan as approved by the Company's shareholders. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon the Grantee and the Grantee's beneficiaries, executors, and administrators and the person(s) to whom the Restricted Stock Units may be transferred by will or the laws of descent or distribution.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Severability</u>. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Discretionary</u><u> </u><u>Nature</u><u> </u><u>of</u><u> </u><u>Plan</u>. The Plan is discretionary and may be amended, cancelled, or terminated by the Company at any time, in its discretion. The grant of the Restricted Stock Units in this Agreement does not create any contractual right or other right to receive any Restricted Stock Units or other Awards in the future. Future Awards, if any, will be at the sole discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Grantee's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Amendment</u>. The Board has the right to amend, alter, suspend, discontinue, or cancel the Restricted Stock Units, prospectively or retroactively; provided, that no such amendment shall adversely affect the Grantee's material rights under this Agreement without the Grantee's consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Section</u><u> </u><u>409A</u>. This Agreement is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Grantee on account of non-compliance with Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>No Impact on Other Benefits</u>. The value of the Grantee's Restricted Stock Units is not part of the Grantee's normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance, or similar employee benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Acceptance</u>. The Grantee hereby acknowledges receipt of a copy of the Plan and this Agreement. The Grantee has read and understands the terms and provisions thereof and accepts the Restricted Stock Units subject to all of the terms and conditions of the Plan and this Agreement. The Grantee acknowledges that there may be adverse tax consequences upon the vesting or settlement of the Restricted Stock Units or disposition of the underlying shares and that the Grantee has been advised to consult a tax advisor prior to such vesting, settlement, or disposition.

[SIGNATURE PAGE FOLLOWS]

------

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

---

| |
|:---|
| Grantor: |
| WhiteHawk Income Corporation |
| By: |
| Name: |
| Title: |
| Grantee: |
| Name: |

---

**Acknowledgment and Agreement of Spouse** 

The undersigned spouse of the Grantee acknowledges that they have read this Agreement and agree to be bound by its terms to the extent that the Grantee has executed such document.

Name:

**Declaration of Unmarried Status** 

The Grantee hereby declares that they are not married as of the date hereof.

Name:

## Exhibit 10.12

**Exhibit 10.12** 

***Execution Version***

**CREDIT AGREEMENT** 

**DATED AS OF MAY 10, 2026** 

**AMONG** 

**WHITEHAWK INCOME CORPORATION** 

**AS PARENT,** 

**WHITEHAWK INCOME OPERATING PARTNERSHIP L.P.** 

**AS BORROWER,** 

**CAPITAL ONE, NATIONAL ASSOCIATION,** 

**AS ADMINISTRATIVE AGENT AND** 

**ISSUING BANK** 

**AND** 

**THE LENDERS PARTY HERETO** 

**CAPITAL ONE, NATIONAL ASSOCIATION,** 

**AS JOINT LEAD ARRANGER AND SOLE BOOKRUNNER** 

**U.S. BANK NATIONAL ASSOCIATION,** 

**AS JOINT LEAD ARRANGER** 

------

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| **ARTICLE I**<br> **DEFINITIONS AND ACCOUNTING MATTERS** | **ARTICLE I**<br> **DEFINITIONS AND ACCOUNTING MATTERS** | **ARTICLE I**<br> **DEFINITIONS AND ACCOUNTING MATTERS** |
| **ARTICLE I**<br> **DEFINITIONS AND ACCOUNTING MATTERS** | **ARTICLE I**<br> **DEFINITIONS AND ACCOUNTING MATTERS** | **ARTICLE I**<br> **DEFINITIONS AND ACCOUNTING MATTERS** |
|  Section 1.01 | Terms Defined Above | 1 |
|  Section 1.02 | Certain Defined Terms | 1 |
|  Section 1.03 | Types of Loans and Borrowings | 48 |
|  Section 1.04 | Terms Generally; Rules of Construction | 48 |
|  Section 1.05 | Accounting Terms and Determinations; GAAP | 48 |
|  Section 1.06 | Rates | 49 |
|  Section 1.07 | Divisions | 49 |
| **ARTICLE II**<br> **THE CREDITS** | **ARTICLE II**<br> **THE CREDITS** | **ARTICLE II**<br> **THE CREDITS** |
|  Section 2.01 | Commitments | 49 |
|  Section 2.02 | Loans and Borrowings | 49 |
|  Section 2.03 | Requests for Borrowings | 50 |
|  Section 2.04 | Interest Elections | 52 |
|  Section 2.05 | Funding of Borrowings | 53 |
|  Section 2.06 | Termination and Reduction of Aggregate Maximum Credit Amounts; Increase, Reduction and Termination of Aggregate Elected Commitment Amounts | 53 |
|  Section 2.07 | Borrowing Base | 57 |
|  Section 2.08 | Letters of Credit | 61 |
|  Section 2.09 | Defaulting Lenders | 67 |
| **ARTICLE III** | **ARTICLE III** | **ARTICLE III** |
| **PAYMENTS OF PRINCIPAL AND INTEREST; PREPAYMENTS; FEES** | **PAYMENTS OF PRINCIPAL AND INTEREST; PREPAYMENTS; FEES** | **PAYMENTS OF PRINCIPAL AND INTEREST; PREPAYMENTS; FEES** |
|  Section 3.01 | Repayment of Loans | 68 |
|  Section 3.02 | Interest | 68 |
|  Section 3.03 | Inability to Determine Rates; Effect of Benchmark Transition Event | 69 |
|  Section 3.04 | Prepayments | 72 |
|  Section 3.05 | Fees | 75 |
| **ARTICLE IV** | **ARTICLE IV** | **ARTICLE IV** |
| **PAYMENTS; PRO RATA TREATMENT; SHARING OF SET-OFFS** | **PAYMENTS; PRO RATA TREATMENT; SHARING OF SET-OFFS** | **PAYMENTS; PRO RATA TREATMENT; SHARING OF SET-OFFS** |
|  Section 4.01 | Payments Generally; Pro Rata Treatment; Sharing of Set-offs | 76 |
|  Section 4.02 | Presumption of Payment by the Borrower | 77 |
|  Section 4.03 | Certain Deductions by the Administrative Agent. | 77 |
|  Section 4.04 | Disposition of Proceeds | 78 |

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i

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---

| | | |
|:---|:---|:---|
|  | **ARTICLE V** |  |
| **INCREASED COSTS; BREAK FUNDING PAYMENTS; TAXES; ILLEGALITY** | **INCREASED COSTS; BREAK FUNDING PAYMENTS; TAXES; ILLEGALITY** | **INCREASED COSTS; BREAK FUNDING PAYMENTS; TAXES; ILLEGALITY** |
|  Section 5.01 | Increased Costs | 78 |
|  Section 5.02 | Break Funding Payments | 80 |
|  Section 5.03 | Taxes | 80 |
|  Section 5.04 | Mitigation Obligations; Replacement of Lenders | 84 |
|  | **ARTICLE VI** |  |
|  | **CONDITIONS PRECEDENT** |  |
|  Section 6.01 | Signing Date | 85 |
|  Section 6.02 | Effective Date | 86 |
|  Section 6.03 | Each Credit Event | 91 |
|  | **ARTICLE VII** |  |
|  | **REPRESENTATIONS AND WARRANTIES** |  |
|  Section 7.01 | Organization; Powers | 92 |
|  Section 7.02 | Authority; Enforceability | 92 |
|  Section 7.03 | Approvals; No Conflicts | 93 |
|  Section 7.04 | Financial Condition; No Material Adverse Effect | 93 |
|  Section 7.05 | Litigation | 94 |
|  Section 7.06 | Environmental Matters | 94 |
|  Section 7.07 | Compliance with the Laws and Agreements; No Defaults or Borrowing Base Deficiency | 95 |
|  Section 7.08 | Investment Company Act | 96 |
|  Section 7.09 | Taxes | 96 |
|  Section 7.10 | ERISA | 96 |
|  Section 7.11 | Disclosure; No Material Misstatements | 97 |
|  Section 7.12 | Insurance | 98 |
|  Section 7.13 | Subsidiaries | 98 |
|  Section 7.14 | Properties; Defensible Title | 98 |
|  Section 7.15 | Maintenance of Properties | 99 |
|  Section 7.16 | Gas Imbalances; Prepayments | 100 |
|  Section 7.17 | Marketing of Production | 100 |
|  Section 7.18 | Swap Agreements and Qualified ECP Guarantor. | 100 |
|  Section 7.19 | Use of Loans and Letters of Credit | 100 |
|  Section 7.20 | Solvency | 101 |
|  Section 7.21 | Anti-Corruption Laws, Sanctions and Patriot Act | 101 |
|  Section 7.22 | Affected Financial Institution. No Credit Party is an Affected Financial Institution. | 101 |
|  Section 7.23 | Security Instruments | 101 |
|  Section 7.24 | Senior Indebtedness Status | 101 |
|  Section 7.25 | Beneficial Ownership | 101 |
|  Section 7.26 | Outbound Investment Rules | 101 |

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ii

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---

| | | |
|:---|:---|:---|
| **ARTICLE VIII**<br> **AFFIRMATIVE COVENANTS** | **ARTICLE VIII**<br> **AFFIRMATIVE COVENANTS** | **ARTICLE VIII**<br> **AFFIRMATIVE COVENANTS** |
|  Section 8.01 | Financial Statements; Other Information | 102 |
|  Section 8.02 | Notices of Material Events | 106 |
|  Section 8.03 | Existence; Conduct of Business | 107 |
|  Section 8.04 | Payment of Taxes | 107 |
|  Section 8.05 | Operation and Maintenance of Properties | 107 |
|  Section 8.06 | Insurance | 108 |
|  Section 8.07 | Books and Records; Inspection Rights | 108 |
|  Section 8.08 | Compliance with Laws | 108 |
|  Section 8.09 | Environmental Matters | 109 |
|  Section 8.10 | Further Assurances | 110 |
|  Section 8.11 | Reserve Reports | 110 |
|  Section 8.12 | Title Information | 111 |
|  Section 8.13 | Additional Collateral; Additional Guarantors | 112 |
|  Section 8.14 | ERISA Compliance | 114 |
|  Section 8.15 | Commodity Exchange Act Keepwell Provisions | 114 |
|  Section 8.16 | Deposit Accounts, Commodity Accounts, and Securities Accounts | 115 |
|  Section 8.17 | Marketing Activities | 115 |
|  Section 8.18 | Sanctions | 115 |
|  Section 8.19 | Unrestricted Subsidiaries | 116 |
|  Section 8.20 | Minimum Hedging | 116 |
|  Section 8.21 | Depositary Arrangements | 117 |
|  Section 8.22 | Reserved | 117 |
|  Section 8.23 | More Favorable Terms | 117 |
| **ARTICLE IX**<br> **NEGATIVE COVENANTS** | **ARTICLE IX**<br> **NEGATIVE COVENANTS** | **ARTICLE IX**<br> **NEGATIVE COVENANTS** |
|  Section 9.01 | Financial Covenants | 119 |
|  Section 9.02 | Debt | 120 |
|  Section 9.03 | Liens | 122 |
|  Section 9.04 | Dividends and Distributions and Payments in Respect of Second Lien Notes and Permitted Senior Notes; Amendments to Second |  |
|  | Lien Note Documents and Senior Note Documents | 123 |
|  Section 9.05 | Investments, Loans and Advances | 125 |
|  Section 9.06 | Nature of Business; No Foreign Subsidiaries or International Operations | 127 |
|  Section 9.07 | Proceeds of Loans | 127 |
|  Section 9.08 | Mergers, Etc. | 127 |
|  Section 9.09 | Sale of Properties and Termination of Swap Agreements | 128 |
|  Section 9.10 | Environmental Matters | 130 |
|  Section 9.11 | Transactions with Affiliates | 130 |
|  Section 9.12 | ERISA Compliance | 130 |
|  Section 9.13 | Negative Pledge Agreements; Dividend Restrictions | 131 |

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iii

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---

| | | |
|:---|:---|:---|
|  Section 9.14 | Swap Agreements | 131 |
|  Section 9.15 | Designation and Conversion of Restricted and Unrestricted Subsidiaries | 133 |
|  Section 9.16 | Limitation on Changes in Fiscal Periods | 134 |
|  Section 9.17 | Amendments to Organizational Documents and Citadel Permitted Existing Trade Documents | 134 |
|  Section 9.18 | Outbound Investment Rules | 135 |
|  Section 9.19 | Passive Holding Company | 135 |
| **ARTICLE X** | **ARTICLE X** | **ARTICLE X** |
| **EVENTS OF DEFAULT; REMEDIES** | **EVENTS OF DEFAULT; REMEDIES** | **EVENTS OF DEFAULT; REMEDIES** |
|  Section 10.01 | Events of Default | 136 |
|  Section 10.02 | Remedies | 138 |
| **ARTICLE XI**<br> **THE AGENTS** | **ARTICLE XI**<br> **THE AGENTS** | **ARTICLE XI**<br> **THE AGENTS** |
|  Section 11.01 | Appointment; Powers | 140 |
|  Section 11.02 | Duties and Obligations of Administrative Agent | 140 |
|  Section 11.03 | Action by Administrative Agent | 141 |
|  Section 11.04 | Reliance by Administrative Agent | 142 |
|  Section 11.05 | Subagents | 142 |
|  Section 11.06 | Resignation of Administrative Agent | 142 |
|  Section 11.07 | Agents as Lenders | 143 |
|  Section 11.08 | No Reliance | 143 |
|  Section 11.09 | Administrative Agent May File Proofs of Claim | 144 |
|  Section 11.10 | Authority of Administrative Agent to Release Collateral, Liens and Guarantors | 144 |
|  Section 11.11 | The Arrangers and the Agents | 145 |
|  Section 11.12 | Certain ERISA Matters | 145 |
|  Section 11.13 | Credit Bidding | 147 |
|  Section 11.14 | Erroneous Payments. | 148 |
| **ARTICLE XII**<br> **MISCELLANEOUS** | **ARTICLE XII**<br> **MISCELLANEOUS** | **ARTICLE XII**<br> **MISCELLANEOUS** |
|  Section 12.01 | Notices | 151 |
|  Section 12.02 | Waivers; Amendments | 152 |
|  Section 12.03 | Expenses, Indemnity; Damage Waiver | 154 |
|  Section 12.04 | Successors and Assigns | 158 |
|  Section 12.05 | Survival; Revival; Reinstatement | 163 |
|  Section 12.06 | Counterparts; Integration; Effectiveness | 164 |
|  Section 12.07 | Severability | 165 |
|  Section 12.08 | Right of Setoff | 165 |
|  Section 12.09 | Governing Law; Jurisdiction; Consent to Service of Process | 165 |
|  Section 12.10 | Headings | 167 |

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iv

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| | | |
|:---|:---|:---|
|  Section 12.11 | Non-Public Information; Confidentiality | 167.0 |
|  Section 12.12 | Interest Rate Limitation | 169.0 |
|  Section 12.13 | Exculpation Provisions | 170.0 |
|  Section 12.14 | Collateral Matters; Swap Agreements; Action by Secured Parties | 170.0 |
|  Section 12.15 | No Third Party Beneficiaries | 170.0 |
|  Section 12.16 | USA Patriot Act Notice; Anti-Money Laundering Laws | 170.0 |
|  Section 12.17 | No Advisory or Fiduciary Responsibility | 171.0 |
|  Section 12.18 | Acknowledgement and Consent to Bail-In of Affected Financial Institution | 171.0 |
|  Section 12.19 | Acknowledgement Regarding Any Supported QFCs | 172.0 |
|  Section 12.20 | Intercreditor Agreement | 173.0 |

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**THIS CREDIT AGREEMENT** dated as of May 9, 2026, is among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"); WhiteHawk Income Corporation, a Delaware corporation (the "<u>Parent</u>"); WhiteHawk Income OP GP LLC, a Delaware limited liability company, in its capacity as the general partner of the Borrower (the "<u>General Partner</u>"); each of the Lenders from time to time party hereto; and Capital One, National Association, as administrative agent and collateral agent for the Lenders (in such capacity, together with its successors in such capacity, the "<u>Administrative Agent</u>") and as the Issuing Bank.

**<u>R E C I T A L S</u>**

(A) The Borrower has requested that the Lenders and the Issuing Bank provide certain loans to and extensions of
credit on behalf of the Borrower.

(B) The Lenders and the Issuing Bank have agreed to make such loans and extensions of credit subject to the terms
and conditions of this Agreement.

(C) In consideration of the mutual covenants and agreements herein contained and of the loans, extensions of credit
and commitments hereinafter referred to, the parties hereto agree as follows:

**ARTICLE I** 

**DEFINITIONS AND ACCOUNTING MATTERS** 

**Section 1.01 <u>Terms Defined Above</u>**. As used in this Agreement, each term defined above has the meaning indicated above.

**Section 1.02 <u>Certain Defined Terms</u>**. As used in this Agreement, the following terms have the meanings specified below:

"<u>ABR</u>", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate.

"<u>Acquired EBITDAX</u>" shall mean, with respect to any Acquired Entity or Business with an acquisition price in excess of $1,000,000 or any Converted Restricted Subsidiary with a fair market value (as determined by the Borrower in good faith) in excess of $1,000,000 for any period, the amount for such period of EBITDAX of such Acquired Entity or Business or Converted Restricted Subsidiary (determined as if references to the Borrower and the Restricted Subsidiaries or Consolidated Restricted Subsidiaries in the definition of EBITDAX (and in the component definitions used therein) were references to such Acquired Entity or Business and its Subsidiaries or to such Converted Restricted Subsidiary and its Subsidiaries), as applicable, all as determined on a consolidated basis for such Acquired Entity or Business or Converted Restricted Subsidiary, as applicable; *provided* that if (a) the acquisition consideration of the Acquired Entity or Business, or the fair market value of the Converted Restricted Subsidiary exceeds $30,000,000 (each, a "<u>Material Acquisition</u>"), (b) the Borrower shall have delivered to the Administrative Agent a certificate of a Responsible Officer of the Borrower setting forth the proposed Acquired EBITDAX for such Acquired Entity or Business or Converted Restricted Subsidiary, as applicable, and attaching thereto reasonably detailed calculations of Acquired EBITDAX for such Acquired Entity

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or Business or Converted Restricted Subsidiary, as applicable, and such other information as the Administrative Agent shall reasonably request, which shall, in each case, be in form and substance reasonably satisfactory to the Administrative Agent; and (c) the Administrative Agent shall have approved of (such approval not to be unreasonably withheld), in writing, after delivery by the Borrower of the certificate described in the foregoing clause (b) of the Acquired EBITDAX Acquired Entity or Business or Converted Restricted Subsidiary, as applicable, then solely for the purpose of calculating the Consolidated Net Leverage Ratio hereunder for any date on or after such Acquired Entity or Business was acquired or any Converted Restricted Subsidiary was converted, (i) for the fiscal quarter in which such Acquired Entity or Business was acquired or any Converted Restricted Subsidiary was converted, Acquired EBITDAX shall be calculated by multiplying EBITDAX of such Acquired Entity or Business or Converted Restricted Subsidiary for the most recent fiscal quarter by 4, (ii) for the fiscal quarter in which such Acquired Entity or Business was acquired or any Converted Restricted Subsidiary was converted and the immediately following fiscal quarter, Acquired EBITDAX shall be calculated by multiplying EBITDAX of such Acquired Entity or Business or Converted Restricted Subsidiary for the two most recent fiscal quarters by 2, (iii) for the fiscal quarter in which such Acquired Entity or Business was acquired or any Converted Restricted Subsidiary was converted and the two immediately following fiscal quarters, Acquired EBITDAX shall be calculated by multiplying EBITDAX of such Acquired Entity or Business or Converted Restricted Subsidiary for the three most recent fiscal quarters by 4/3 and (iv) thereafter, Acquired EBITDAX of such Acquired Entity or Business was acquired or any Converted Restricted Subsidiary shall be EBITDAX for the four most recent fiscal quarters.

"<u>Acquired Entity or Business</u>" has the meaning set forth in the definition of the term "EBITDAX".

"<u>Additional Lender</u>" has the meaning set forth in <u>Section</u> <u>2.06(c)(i)</u>.

"<u>Additional Lender Certificate</u>" has the meaning set forth in <u>Section</u> <u>2.06(c)(ii)(F)</u>.

"<u>Administrative Questionnaire</u>" means an Administrative Questionnaire in a form supplied by the Administrative Agent.

"<u>Affected Financial Institution</u>" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"<u>Affiliate</u>" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

"<u>Agents</u>" means, collectively, the Administrative Agent and any syndication or documentation agent hereunder from time to time; and "<u>Agent</u>" shall mean any of them individually, as the context requires.

"<u>Aggregate Elected Commitment Amounts</u>" means, at any time, an amount equal to the sum of the Elected Commitments of the Lenders, as the same may be increased, reduced or terminated pursuant to <u>Section</u> <u>2.06(c)</u>. As of the Effective Date, the Aggregate Elected Commitment Amounts is $150,000,000.

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"<u>Aggregate Maximum Credit Amounts</u>" means, at any time, an amount equal to the sum of the Maximum Credit Amounts, as the same may be reduced or terminated pursuant to <u>Section</u> <u>2.06</u>. As of the Effective Date, the Aggregate Maximum Credit Amounts are $500,000,000.

"<u>Agreement</u>" means this Credit Agreement, as the same may from time to time be amended, restated, amended and restated, supplemented or otherwise modified.

"<u>Alternate Base Rate</u>" means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day *plus* <sup>1</sup>⁄<sub>2</sub> of 1% and (c) Term SOFR for a one month Interest Period beginning on such day (or if such day is not a Business Day, the immediately preceding Business Day) *plus* 1.0% (*provided* that clause (c) shall not be applicable during any period in which Term SOFR is unavailable or unascertainable). Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Rate or Term SOFR shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Rate or Term SOFR, respectively. Notwithstanding the foregoing, in no event shall the Alternate Base Rate be less than 1.00%.

"<u>Annualized EBITDAX</u>" means, for the purposes of calculating the Consolidated Net Leverage Ratio, (i) for the first fiscal quarter ending after the Effective Date, EBITDAX shall be calculated by multiplying EBITDAX for such fiscal quarter by 4, (ii) for the first two fiscal quarters ending after the Effective Date, EBITDAX shall be calculated by multiplying EBITDAX for such two fiscal quarters by 2 and (iii) for the first three fiscal quarters ending after the Effective Date, EBITDAX shall be calculated by multiplying EBITDAX for such three fiscal quarters by 4/3; *provided* that for the fiscal quarters identified in clauses (i) through (iii) hereof, Acquired EBITDAX (other than as set forth in the proviso to the definition of Acquired EBITDAX) and Disposed EBITDAX shall, be included in the calculation of EBITDAX before giving effect to the annualization set forth herein, without duplication of any annualization calculation applied pursuant to the definition of Acquired EBITDAX.

"<u>Anti-Corruption Laws</u>" means all laws, rules, and regulations of any jurisdiction applicable to the Parent, the General Partner, the Borrower or any of its Subsidiaries from time to time concerning or relating to bribery or corruption, including the U.S. Foreign Corrupt Practices Act, as amended.

"<u>Anti-Money Laundering Laws</u>" means any and all laws, statutes, regulations or obligatory government orders, decrees, ordinances or rules related to terrorism financing or money laundering, including any applicable provision of The Currency and Foreign Transactions Reporting Act (also known as the "Bank Secrecy Act," 31 U.S.C. §§ 5311-5330 and 12 U.S.C. §§ 1818(s), 1820(b) and 1951-1959), as amended by the Patriot Act.

"<u>Applicable Margin</u>" means, for any day, with respect to any ABR Loan or SOFR Loan, or with respect to the commitment fee rate (the "<u>Commitment Fee Rate</u>"), as the case may be, the rate per annum set forth in the Borrowing Base Utilization Grid below based upon the Utilization Percentage then in effect:

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***Borrowing Base Utilization Grid***

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  Utilization Percentage | > 25% | > 25% but ≤<br>50% | > 50% but ≤<br>75% | > 75% but ≤<br>90% | > 90% |
|  SOFR Loans | 2.50% | 2.75% | 3.00% | 3.25% | 3.50% |
|  ABR Loans | 1.50% | 1.75% | 2.00% | 2.25% | 2.50% |
|  Commitment Fee Rate | 0.375% | 0.375% | 0.50% | 0.50% | 0.50% |

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Each change in the Applicable Margin and the Commitment Fee Rate shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change.

"<u>Applicable Percentage</u>" means, with respect to any Lender at any time, the percentage of the Aggregate Maximum Credit Amounts represented by such Lender's Maximum Credit Amount; *provided* that in the case of <u>Section</u> <u>2.09</u> when a Defaulting Lender shall exist, "Applicable Percentage" as used in such <u>Section</u> <u>2.09</u> shall mean the percentage of the Aggregate Maximum Credit Amounts (disregarding any Defaulting Lender's Maximum Credit Amounts) represented by such Lender's Maximum Credit Amount; *provided further* that if the Commitments have terminated or expired, each Lender's "Applicable Percentage" shall be determined based upon the Commitments most recently in effect.

"<u>Approved Counterparty</u>" means (a) any Person who, at the time of entering into a Swap Agreement, is a Lender or an Affiliate of a Lender and (b) any other Person (or the credit support provider of such Person who guarantees all obligations of such Person under such Swap Agreement) who, at the time of entering into a Swap Agreement, has a long term senior unsecured debt rating of A-/A3 by S&P or Moody's (or their equivalent) or higher.

"<u>Approved Fund</u>" means any Person (other than a natural person (or any holding company, investment vehicle, or trust owned and operated for the primary benefit of a natural person)) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

"<u>Approved Petroleum Engineers</u>" means (a) Netherland, Sewell & Associates, Inc., (b) DeGolyer and MacNaughton, (c) Cawley Gillespie and Associates, Inc., (d) Ryder Scott Company, L.P., (e) Wright & Company, Inc. or (f) any other regionally or nationally recognized independent petroleum engineering firms reasonably acceptable to the Administrative Agent.

"<u>Arranger</u>" means each of (a) Capital One, National Association, in its capacity as joint lead arranger and sole bookrunner hereunder, and (b) U.S. Bank National Association, in its capacity as joint lead arranger hereunder.

"<u>ASC</u>" means the Financial Accounting Standards Board Accounting Standards Codification, as in effect from time to time.

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"<u>Assignment and Assumption</u>" means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by <u>Section</u> <u>12.04(b)</u>), and accepted by the Administrative Agent, in the form of <u>Exhibit</u> <u>H</u> or any other form approved by the Administrative Agent.

"<u>Availability Period</u>" means the period from and including the Effective Date to but excluding the Termination Date.

"<u>Available Tenor</u>" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (a) if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement or (b) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark, in each case, as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of "Interest Period" pursuant to <u>Section</u> <u>3.03(c)(iv)</u>.

"<u>Bail-In Action</u>" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"<u>Bail-In Legislation</u>" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"<u>Bank Price Deck</u>" means the Administrative Agent's most recent internal price deck (or such prior internal price deck as specified herein) on a forward curve basis for each of oil, natural gas and other Hydrocarbons, as applicable.

"<u>Bankruptcy Code</u>" means the United States Bankruptcy Code, Title 11 U.S.C.

"<u>Benchmark</u>" means, initially, the Term SOFR Reference Rate; *provided* that if a Benchmark Transition Event has occurred with respect to the Term SOFR Reference Rate or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to <u>Section</u> <u>3.03(c)(i)</u>.

"<u>Benchmark Replacement</u>" means, with respect to any Benchmark Transition Event, the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated syndicated credit facilities and (b) the related Benchmark Replacement Adjustment; *provided* that, if such Benchmark Replacement as so determined would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

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"<u>Benchmark Replacement Adjustment</u>" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Available Tenor, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities.

"<u>Benchmark Replacement Date</u>" means the earlier to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of clause (a) or (b) of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of clause (c) of the definition of "Benchmark Transition Event," the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; *provided* that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Event</u>" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely; *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Board, the NYFRB, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.

For the avoidance of doubt, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Start Date</u>" means, in the case of a Benchmark Transition Event, the earlier of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication).

"<u>Benchmark Unavailability Period</u>" means the period (if any) (x) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with <u>Section</u> <u>3.03(c)(i)</u> and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with <u>Section</u> <u>3.03(c)(i)</u>.

"<u>Beneficial Ownership Certification</u>" means a certification regarding beneficial ownership required by the Beneficial Ownership Regulation, which certification shall be substantially similar in form and substance to the form of Certification Regarding Beneficial Owners of Legal Entity Customers published jointly, in May 2018, by the Loan Syndications and Trading Association and Securities Industry and Financial Markets Association.

"<u>Beneficial Ownership Regulation</u>" means 31 C.F.R. § 1010.230.

"<u>Benefit Plan</u>" means any of (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA, (b) a "plan" as defined in Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such "employee benefit plan" or "plan".

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"<u>Board</u>" means the Board of Governors of the Federal Reserve System of the United States of America or any successor Governmental Authority.

"<u>Borrowing</u>" means Loans of the same Type, made, converted or continued on the same date and, in the case of SOFR Loans, as to which a single Interest Period is in effect.

"<u>Borrowing Base</u>" means at any time an amount equal to the amount determined in accordance with <u>Section</u> <u>2.07</u>, as the same may be adjusted from time to time pursuant to <u>Section</u> <u>2.07(e)</u>, <u>Section</u> <u>2.07(f)</u> or <u>Section</u> <u>8.12(c)</u> or otherwise pursuant to this Agreement.

"<u>Borrowing Base Deficiency</u>" occurs if at any time (a) the Total Revolving Credit Exposures exceeds (b) the Borrowing Base then in effect.

"<u>Borrowing Base Properties</u>" means the Proved Oil and Gas Properties of the Borrower and its Restricted Subsidiaries included in the most recently delivered Reserve Report hereunder.

"<u>Borrowing Base Value</u>" means, (a) with respect to any Borrowing Base Property, the value the Administrative Agent attributed to such Borrowing Base Property in connection with the most recent determination of the Borrowing Base hereunder (which Borrowing Base has been approved by the Required Lenders) and (b) with respect to any Swap Agreement in respect of commodities, the Swap PV of such Swap Agreement.

"<u>Borrowing Request</u>" means a request by the Borrower for a Borrowing in accordance with <u>Section</u> <u>2.03</u>.

"<u>Business Day</u>" means any day that (a) is not a Saturday, Sunday or other day on which the NYFRB is closed and (b) is not a day on which commercial banks in Houston, Texas are closed.

"<u>Capital Leases</u>" means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, recorded as capital leases on the balance sheet of the Person liable (whether contingent or otherwise) for the payment of rent thereunder; *provided* that for all purposes hereunder the amount of obligations under any Capital Lease shall be the amount thereof accounted for as a liability on the balance sheet of such Person in accordance with GAAP; *provided*, *further*, that for purposes of calculations made pursuant to the terms of this Agreement, GAAP will be deemed to treat leases in a manner consistent with its treatment under GAAP as of the Reference Date, notwithstanding any modifications or interpretative changes thereto that may occur. For the avoidance of doubt, any lease that would be characterized as an operating lease in accordance with GAAP on the Reference Date (whether or not such operating lease was in effect on such date) shall continue to be accounted for as an operating lease (and not as a Capital Lease) for purposes of this Agreement regardless of any change in GAAP following the Reference Date that would otherwise require such lease to be re-characterized (on a prospective or retroactive basis or otherwise) as a Capital Lease.

"<u>Cash Collateralize</u>" means, to pledge and deposit with or deliver to the Administrative Agent (in a manner reasonably satisfactory to the Administrative Agent, which may require such deposit to be made into a controlled account), for the benefit of any Issuing Bank or the Lenders, as collateral for LC Exposure or obligations of the Lenders to fund participations in respect of LC Exposure, cash or deposit account balances or, if the Administrative Agent and each Issuing Bank

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shall agree, in their sole discretion, other credit support, in each case pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent and each Issuing Bank. "<u>Cash Collateral</u>" shall have a meaning correlative to the foregoing and shall include the proceeds of such Cash Collateral and other credit support.

"<u>Cash Management Agreement</u>" means any agreement to provide cash management services, including treasury, depository, overdraft, credit or debit card, electronic funds transfer and other cash management services.

"<u>Cash Equivalents</u>" means: (a) securities issued or fully guaranteed or insured by the United States Government or any agency thereof and backed by the full faith and credit of the United States having maturities of not more than twenty four (24) months from the date of acquisition; *provided* that, for the avoidance of doubt, treasury securities issued by the United States Government or any agency thereof shall be deemed to be Cash Equivalents for purposes of this clause (a); (b) certificates of deposit, time deposits, or bankers' acceptances having in each case a tenor of not more than twelve (12) months from the date of acquisition issued by any Lender or any U.S. commercial bank or any branch or agency of a non-U.S. commercial bank licensed to conduct business in the U.S. having combined capital and surplus of not less than Five Hundred Million Dollars ($500,000,000); (c) commercial paper of an issuer rated at least A-1 by S&P or P-1 by Moody's at the time of acquisition, and in either case having a tenor of not more than twelve (12) months; (d) Investments, classified in accordance with GAAP as current assets of the Borrower or any of its Restricted Subsidiaries, in money market investment programs registered under the Investment Company Act of 1940, which are administered by financial institutions that have the highest rating assigned at that time from either Moody's or S&P, and the portfolios of which are limited solely to Investments of the character, quality and maturity described in clauses (a), (b) and (c) of this definition; (e) repurchase obligations with a term of not more than one-hundred eighty (180) days for underlying securities of the types described in clauses (a) and (b) entered into with any financial institution or recognized securities dealer meeting the qualifications specified in clause (b) above; and (f) deposits in money market funds and investments investing at least 95% in investments described in clauses (a), (b), (c), (d) and (e) above.

"<u>Cash Receipts</u>" means all cash received by or on behalf of the Borrower or any Restricted Subsidiary, including without limitation: (a) amounts payable under or in connection with any Oil and Gas Properties; (b) cash representing operating revenue earned or to be earned by the Borrower or any Restricted Subsidiary; (c) proceeds from Loans; and (d) any other cash received by or on behalf of the Borrower or any Restricted Subsidiary from whatever source (including amounts received in respect of the Liquidation of any Swap Agreement and amounts received in respect of any disposition of Property).

"<u>Casualty Event</u>" means, with respect to any Property, (a) any damage to, destruction of, or other casualty or loss involving, any property or asset or (b) any seizure, condemnation, confiscation or taking under the power of eminent domain of, or any requisition of title or use of, or relating to, or any similar event in respect of, any property or asset.

"<u>CERCLA</u>" has the meaning set forth in the definition of "<u>Environmental Laws</u>".

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"<u>Change in Control</u>" means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the Signing Date) (directly or indirectly, including through one or more holding companies), other than the Permitted Holders, of Equity Interests representing more than thirty-five percent (35%) of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Parent (including, for the avoidance of doubt, the Class A common stock and Class B common stock issued by the Parent), (b) the occupation of a majority of the seats (other than vacant seats) on the board of directors of the Parent by Persons who were neither (i) directors of the Parent on the Effective Date or nominated, appointed or approved for consideration by shareholders for election by the board of directors of the Parent or (ii) appointed by directors so nominated, appointed or approved, (c) the Parent ceases to directly own 65% of the economic interests represented by the issued and outstanding Equity Interests of the Borrower, (d) the Parent ceases to Control the General Partner and the Borrower, (e) the Parent at any time ceases to hold of record and have beneficial ownership of 100% of the aggregate ordinary voting power and 100% of the economic interests represented by the issued and outstanding Equity Interests of the General Partner, (f) the General Partner at any time ceases to directly own 100% of the general partner interests of the Borrower or ceases to be the sole general partner of the Borrower, (g) any Guarantor ceases to be a Wholly-Owned Subsidiary of the Borrower other than as a result of a transaction permitted under <u>Section</u> <u>9.08</u> or <u>Section</u> <u>9.09</u>, (h) the occurrence of a "Change in Control" (as defined in the Second Lien Note Purchase Agreement), or (i) the occurrence of a "change of control" or "change in control" under the definitive documentation governing any debt for borrowed money constituting Material Debt.

"<u>Change in Law</u>" means (a) the adoption or implementation of any law, rule or regulation after the Signing Date, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the Signing Date or (c) compliance by any Lender or the Issuing Bank (or, for purposes of <u>Section</u> <u>5.01(b)</u>, by any lending office of such Lender or by such Lender's or the Issuing Bank's holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the Signing Date; *provided*, *however*, for the purposes of this Agreement, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, guidelines or directives in connection therewith or promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision or the United States or foreign regulatory authorities, in each case, pursuant to Basel III, are deemed to have gone into effect and to have been adopted and implemented after the Signing Date.

"<u>Citadel</u>" means Citadel Energy Marketing LLC, a Delaware limited liability company.

"<u>Citadel Permitted Existing Confirmations</u>" means the confirmations between Citadel and the Parent evidencing the trades listed on Schedule 1.02, as amended, modified, supplemented or restated on or prior to the Effective Date, and as the same may from time to time be amended, modified, supplemented or restated to the extent permitted by <u>Section</u> <u>9.17</u>.

"<u>Citadel Permitted Existing Trade Documents</u>" means, (a) the ISDA Master Agreement, dated as of May 25, 2023, between Citadel and the Parent, including the Schedule thereto, as amended, modified, supplemented or restated on or prior to the Effective Date, and as the same may from time to time be amended, modified, supplemented or restated to the extent permitted by <u>Section</u> <u>9.17</u> and (b) the Citadel Permitted Existing Confirmations.

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"<u>Citadel Permitted Existing Trades</u>" means the transactions evidenced by the Citadel Permitted Existing Confirmations identified on Schedule 7.18, as any such transaction may from time to time be amended, modified, supplemented or restated to the extent permitted by <u>Section</u> <u>9.17</u>.

"<u>Citadel Swap Counterparty Acknowledgment</u>" means a Swap Counterparty Acknowledgment, in form and substance satisfactory to the Administrative Agent, to be entered into between the Administrative Agent, as collateral agent, the Borrower, and Citadel, as amended, modified, supplemented or restated from time to time.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute.

"<u>Collateral Coverage Minimum</u>" has the meaning assigned to such term in <u>Section</u> <u>8.13(a)</u>.

"<u>Commitment</u>" means, with respect to each Lender, the commitment of such Lender to make Loans and to acquire participations in Letters of Credit hereunder, expressed as an amount representing the maximum aggregate amount of such Lender's Revolving Credit Exposure hereunder, as such commitment may be (i) modified from time to time pursuant to <u>Section</u> <u>2.06</u>, (ii) modified from time to time pursuant to assignments by or to such Lender pursuant to <u>Section</u> <u>12.04(b)</u> or (iii) modified by any other amendment or modification of such Commitments permitted under this Agreement. The amount representing each Lender's Commitment shall at any time be the least of (a) such Lender's Maximum Credit Amount, (b) such Lender's Applicable Percentage of the then effective Borrowing Base and (c) such Lender's Elected Commitment. The total Commitments is the aggregate amount of the Commitments of all the Lenders.

"<u>Commitment Fee Rate</u>" has the meaning set forth in the definition of "<u>Applicable Margin</u>".

"<u>Commodity Account</u>" shall have the meaning set forth in Article 9 of the UCC.

"<u>Commodity Exchange Act</u>" means the Commodity Exchange Act (7 U.S.C. § 1 *et seq.*), as amended from time to time, and any successor statute, and any regulations promulgated thereunder.

"<u>Conforming Changes</u>" means, with respect to either the use or administration of Term SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Alternate Base Rate," the definition of "Business Day," the definition of "U.S. Government Securities Business Day," the definition of "Interest Period" or any similar or analogous definition (or the addition of a concept of "interest period"), timing and frequency of determining rates and making

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payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of <u>Section</u> <u>5.02</u> and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

"<u>Connection Income Taxes</u>" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"<u>Consolidated Cash Balance</u>" means, at any time, the aggregate amount of cash and Cash Equivalents, in each case, held or owned by (whether directly or indirectly), credited to the account of, or otherwise reflected as an asset on the balance sheet of, the Borrower and its Restricted Subsidiaries other than, without duplication, (i) any cash or Cash Equivalents constituting Cash Collateral held by the Administrative Agent pursuant to this Agreement or any other Loan Document, (ii) any cash or Cash Equivalents of the Borrower or any Restricted Subsidiary to be used by the Borrower or any Restricted Subsidiary within five (5) Business Days to pay the purchase price for any acquisition of any Property (including Equity Interests) permitted hereunder by the Borrower or any Restricted Subsidiary pursuant to a binding and enforceable purchase and sale agreement or in connection with a "sign and close" purchase and sale agreement reasonably anticipated within such five (5) Business Days, in each case, with an unaffiliated third party, (iii) any cash or Cash Equivalents constituting purchase price deposits held in escrow by an unaffiliated third party pursuant to a binding and enforceable purchase and sale agreement containing customary provisions regarding the payment and refunding of such deposits, (iv) any cash or Cash Equivalents of the Borrower or any of its Restricted Subsidiaries set aside to make any Investment within five (5) Business Days of such time, in each case, to the extent such Investment is then permitted to be made under this Agreement at such time and in an amount not to exceed the amount of such Investment permitted to be made pursuant thereto, (v) cash allocated for, reserved or otherwise set aside for and solely used for payroll or employee benefit payment obligations and (vi) any cash or cash equivalents of the Borrower or any of its Restricted Subsidiaries held by the Borrower or any of its Restricted Subsidiaries constituting the reasonably estimated amount of any cash distributions with respect to the Borrower's Equity Interests that the Borrower intends to make to holders of its Equity Interests, in each case which distributions are expressly permitted pursuant to <u>Section</u> <u>9.04(a)(iv)</u> and which distributions shall be made within the next succeeding five (5) Business Days. To the extent such amounts specified in the foregoing clauses (ii), (iv) and (vi) are financed with the proceeds of a Borrowing, such use of proceeds must be certified to by the Borrower in the applicable Borrowing Request.

"<u>Consolidated Cash Balance Threshold</u>" means, at any time, the greater of (a) $25,000,000 and (b) ten percent (10%) of the Borrowing Base then in effect.

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"<u>Consolidated Interest Expense</u>" means, for any period, the sum (determined without duplication) of the aggregate gross interest expense of the Borrower and the Consolidated Restricted Subsidiaries for such period, including to the extent included in interest expense under GAAP: (a) amortization of debt discount, (b) capitalized interest and (c) the portion of any payments or accruals under Capital Leases allocable to interest expense.

"<u>Consolidated Net Income</u>" means with respect to the Borrower and the Consolidated Restricted Subsidiaries, for any period, the aggregate of the net income (or loss) of the Borrower and the Consolidated Restricted Subsidiaries after allowances for taxes for such period determined on a consolidated basis in accordance with GAAP; *provided* that there shall be excluded, without duplication, from such net income (to the extent otherwise included therein) the following: (a) the net income of any Person in which the Borrower or any Consolidated Restricted Subsidiary has an interest (which interest does not cause the net income of such other Person to be consolidated with the net income of the Borrower and the Consolidated Restricted Subsidiaries in accordance with GAAP), except to the extent of the amount of dividends or distributions actually paid in cash during such period by such other Person to the Borrower or to a Consolidated Restricted Subsidiary, as the case may be; (b) the net income (but not loss) during such period of any Consolidated Restricted Subsidiary to the extent that the declaration or payment of dividends or similar distributions or transfers or loans by that Consolidated Restricted Subsidiary is not at the time permitted by operation of the terms of its charter or any agreement, instrument or Governmental Requirement applicable to such Consolidated Restricted Subsidiary or is otherwise restricted or prohibited, in each case determined in accordance with GAAP, but in each case only to the extent of such prohibition or restriction; (c) the net income (or loss) of any Person accrued prior to the date it becomes a Consolidated Restricted Subsidiary or is merged into or consolidated with the Borrower or any of its Consolidated Restricted Subsidiaries; (d) any extraordinary or non-recurring gains or losses during such period, (e) any gains or losses attributable to writeups or writedowns of assets, (f) any gain or loss from the sale of assets other than in the ordinary course of business, (g) any income attributable to the early extinguishment of any Debt of the Borrower or a Consolidated Restricted Subsidiary; and (h) the cumulative effect of a change in accounting principles and changes as a result of the adoption or modification of accounting policies during such period whether effected through a cumulative effect adjustment or a retroactive application, in each case, in accordance with GAAP.

"<u>Consolidated Net Leverage Ratio</u>" means, as of the last day of any fiscal quarter (or any other date of determination for purposes of <u>Sections</u> <u>8.20</u>, <u>9.02(i)</u>, <u>9.04(a)(iv)</u>, <u>9.04(b)(i)</u>, and <u>9.05(n</u>)), the ratio of Total Net Debt as of such day to EBITDAX (or (a) in the case of each of the first three fiscal quarters ending after the Effective Date, Annualized EBITDAX or (b) prior to the initial delivery of financial statements pursuant to <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u>, Specified EBITDAX) for most recently ended Rolling Period.

"<u>Consolidated Restricted Subsidiary</u>" means any Restricted Subsidiaries that are Consolidated Subsidiaries.

"<u>Consolidated Subsidiary</u>" means each Subsidiary of the Borrower (whether now existing or hereafter created or acquired) the financial statements of which shall be (or should have been) consolidated with the financial statements of the Borrower in accordance with GAAP.

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"<u>Consolidated Total Assets</u>" means, as of any date of determination, the total assets of the Borrower and its Consolidated Restricted Subsidiaries, determined on a consolidated basis in accordance with GAAP, as shown on (x) the most recent balance sheet of the Borrower delivered pursuant to <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u> or, with respect to the Initial Financial Statements, <u>Section</u> <u>6.02</u> or (y) a balance sheet of the Borrower (i) prepared by a Financial Officer of the Borrower, (ii) certified by a Financial Officer as presenting fairly in all material respects the financial position of the Borrower and its Consolidated Restricted Subsidiaries (excluding Unrestricted Subsidiaries) on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes and (iii) delivered to the Administrative Agent and each Lender.

"<u>Consolidated Unrestricted Subsidiaries</u>" means any Unrestricted Subsidiaries that are Consolidated Subsidiaries.

"<u>Control</u>" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "<u>Controlling</u>" and "<u>Controlled</u>" have meanings correlative thereto.

"<u>Control Agreement</u>" means a control agreement, in form and substance reasonably satisfactory to the Administrative Agent, providing for the Administrative Agent's exclusive control of a Deposit Account, Securities Account or Commodity Account, as applicable, after notice, executed and delivered by the Borrower or a Restricted Subsidiary, as applicable, and the applicable securities intermediary (with respect to a Securities Account), bank (with respect to a Deposit Account) or commodity intermediary (with respect to a Commodity Account), in each case at which such relevant account is maintained.

"<u>Controlled Investment Affiliate</u>" shall mean, as to any Person, any other Person which directly or indirectly is in control of, is controlled by, or is under common control with such Person and is organized by such Person (or any Person controlling such Person) primarily for making direct or indirect equity or debt investments in the Borrower and/or other companies.

"<u>Control Agreement Delivery Date</u>" shall have the meaning set forth in <u>Section</u> <u>8.16</u>.

"<u>Converted Restricted Subsidiary</u>" has the meaning set forth in the definition of the term "EBITDAX".

"<u>Converted Unrestricted Subsidiary</u>" has the meaning set forth in the definition of the term "EBITDAX".

"<u>Credit Parties</u>" means, collectively, the Borrower and each Guarantor, and "<u>Credit Party</u>" means any one of the foregoing.

"<u>Cure Amount</u>" has the meaning assigned to such term in <u>Section</u> <u>9.01(c)</u>.

"<u>Cure Period</u>" has the meaning assigned to such term in <u>Section</u> <u>9.01(c)</u>.

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"<u>Current Assets</u>" means, as at any date of determination, without duplication, the sum of all amounts that would, in conformity with GAAP, be set forth opposite the caption "total current assets" (or any like caption) on a consolidated balance sheet of the Borrower and its Consolidated Restricted Subsidiaries at such date, *plus* Unused Availability (but only to the extent that the Borrower is then permitted to borrow such amount under the terms of this Agreement, including, without limitation, <u>Section</u> <u>6.03</u> hereof (but excluding Section 6.03(d))), but excluding (a) all non-cash assets under ASC 815 and (b) assets to the extent resulting from non-cash gains required under ASC 410.

"<u>Current Liabilities</u>" means, as at any date of determination, without duplication, the sum of all amounts that would, in conformity with GAAP, be set forth opposite the caption "total current liabilities" (or any like caption) on a consolidated balance sheet of the Borrower and its Consolidated Restricted Subsidiaries on such date, but excluding, without duplication, (a) all non-cash obligations under ASC 815, and (b) the current maturities under this Agreement.

"<u>Current Ratio</u>" means, as of any date of determination, the ratio of (a) Current Assets to (b) Current Liabilities.

"<u>Debt</u>" means, for any Person, the sum of the following (without duplication): (a) all obligations of such Person for borrowed money or evidenced by bonds, bankers' acceptances, debentures, notes or other similar instruments; (b) all obligations of such Person (whether contingent or otherwise) in respect of letters of credit, surety or other bonds and similar instruments; (c) all accounts payable and all accrued expenses, liabilities or other obligations of such Person to pay the deferred purchase price of Property or services (excluding accounts payable and accrued expenses, liabilities or other obligations to pay the deferred purchase price of Property or services, from time to time incurred in the ordinary course of business which are not greater than ninety (90) days past due or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP); (d) all obligations of such Person under Capital Leases; (e) all obligations of such Person under Synthetic Leases; (f) all Debt (as defined in the other clauses of this definition) of others secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) a Lien on any Property of such Person, whether or not such Debt is assumed by such Person, to the extent of the lesser of (i) the amount of such Debt and (ii) the fair market value (as determined by the Borrower in good faith) of the Property of such Person securing such Debt; (g) all Debt (as defined in the other clauses of this definition) of others guaranteed by such Person (directly or indirectly) or in respect of which such Person otherwise assures a creditor against loss of the Debt (howsoever such assurance shall be made) to the extent of the lesser of the amount of such Debt and the maximum stated amount of such guarantee or assurance against loss; (h) all obligations or undertakings of such Person to maintain or cause to be maintained the financial position or covenants of others and, to the extent entered into as a means of providing credit support for the obligations of others and not primarily to enable such Person to acquire any such Property, all obligations or undertakings of such Person to purchase the Debt or Property of others; (i) any Debt of a partnership for which such Person is liable either by agreement, by operation of law or by a Governmental Requirement but only to the extent of such liability; and (j) obligations of such Person with respect to Disqualified Capital Stock. Except as explicitly set forth above, the Debt of any Person shall include all obligations of such Person of the character described above to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is not included as a liability of such Person under GAAP.

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"<u>Deposit Account</u>" shall have the meaning set forth in Article 9 of the UCC.

"<u>Default</u>" means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

"<u>Defaulting Lender</u>" means any Lender that (a) has failed, within two (2) Business Days of the date required to be funded or paid, to (i) fund any portion of its Loans hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's good faith determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, (ii) fund any portion of its participations in Letters of Credit or (iii) pay over to the Administrative Agent, the Issuing Bank or any other Lender any other amount required to be paid by it hereunder; (b) has notified the Borrower or the Administrative Agent, the Issuing Bank or any other Lender in writing, or has made a public statement, to the effect that it does not intend or expect to comply with any of its funding obligations under this Agreement or generally under other agreements in which it commits to extend credit (unless such writing or public statement relates to such Lender's obligation to fund a Loan hereunder and states that such position is based on such Lender's good faith determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied); (c) has failed, within three (3) Business Days after request by the Administrative Agent, the Issuing Bank or any Lender, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it will comply with its obligations to fund prospective Loans and participations in then outstanding Letters of Credit under this Agreement; *provided* that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon the Administrative Agent's, the Issuing Bank or such Lender's receipt of such certification in form and substance satisfactory to it and the Administrative Agent; or (d) has (or whose bank holding company has) been placed into receivership, conservatorship or bankruptcy or has become the subject of a Bail-In Action.

"<u>Discharge of Second Lien Obligations</u>" means the "Discharge of Second Lien Obligations" as defined in the Second Lien Intercreditor Agreement.

"<u>Disposed EBITDAX</u>" shall mean, with respect to any Sold Entity or Business with a sale price in excess of $1,000,000 or any Converted Unrestricted Subsidiary with a fair market value (as reasonably determined by the Borrower) in excess of $1,000,000 for any period, the amount for such period of EBITDAX of such Sold Entity or Business (determined as if references to the Borrower and the Restricted Subsidiaries in the definition of EBITDAX (and in the component definitions used therein) were references to such Sold Entity or Business and its Subsidiaries or such Converted Unrestricted Subsidiary and its Subsidiaries) or such Converted Unrestricted Subsidiary, all as determined on a consolidated basis for such Sold Entity or Business or such Converted Unrestricted Subsidiary.

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"<u>Disposition</u>" means any conveyance, sale, lease, sale and leaseback, assignment, farm-out, transfer or other disposition of any Property, and includes, for the avoidance of doubt, any Casualty Event. "<u>Dispose</u>" has a correlative meaning thereto.

"<u>Disqualified Capital Stock</u>" means any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event (other than upon a "change in control"; *provided* that the terms of such Equity Interest require that any payment in connection therewith be made only after the occurrence of the Release Date), matures or is mandatorily redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock), pursuant to a sinking fund obligation or otherwise, or is convertible or exchangeable for Debt or redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock) at the option of the holder thereof, in whole or in part, on or prior to the date that is ninety-one (91) days after the earlier of (a) the Maturity Date and (b) the date on which there are no Loans, LC Exposure or other obligations hereunder outstanding and all of the Commitments are terminated.

"<u>Disqualified Institution</u>" means any Person that is (a) designated by the Borrower by written notice delivered to the Administrative Agent on or prior to May 9, 2026, as a (i) "Disqualified Institution" or (ii) a competitor of the Borrower or any of its Subsidiaries (a "<u>Competitor</u>") or (b) clearly identifiable, solely on the basis of such Person's name, as an Affiliate of any Person referred to in clause (a)(i) or (a)(ii) above; *provided*, however, that Disqualified Institutions shall (A) exclude any Person that the Borrower has designated as no longer being a Disqualified Institution by written notice delivered to Agent from time to time and (B) include (I) any Person that is added as a Competitor and (II) any Person that is clearly identifiable, solely on the basis of such Person's name, as an Affiliate of any Person referred to in clause (B)(I), pursuant to a written supplement to the list of Competitors that are Disqualified Institutions, that is delivered by the Borrower after the date hereof to Agent. Such supplement shall become effective two (2) Business Days after the date that such written supplement is delivered to Agent, but which shall not apply retroactively to disqualify any Persons that have previously acquired an assignment or participation interest in the Loans and/or Commitments as permitted herein. In no event shall any Persons, Subsidiaries or Affiliates that are bona fide fixed income investors, debt funds, regulated bank entities or unregulated lending entities generally engaged in making, purchasing, holding or otherwise investing in commercial loans, debt securities or similar extensions of credit in the ordinary course of business be a Disqualified Institution unless such Person is identified under clause (a)(i) above.

"<u>dollars</u>" or "<u>$</u>" refers to lawful money of the United States of America.

"<u>Domestic Subsidiary</u>" means any Restricted Subsidiary that is organized under the laws of the United States of America or any state thereof or the District of Columbia.

"<u>E-System</u>" means any electronic system approved by the Administrative Agent, including Syndtrak<sup>®</sup>, Intralinks<sup>®</sup> and ClearPar<sup>®</sup> and any other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by the Administrative Agent, any of its Related Persons or any other Person, providing for access to data protected by passcodes or other security system.

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"<u>EBITDAX</u>" means, for any period, the sum of (a) Consolidated Net Income for such period plus (without duplication) (b) the following expenses or charges to the extent deducted from Consolidated Net Income in such period: (i) interest expense, (ii) income tax expense, (iii) depreciation, depletion, amortization, and exploration expenses and other similar noncash charges, (iv) any other non-cash charges, including any write-offs or write-downs, reducing Consolidated Net Income for such period (provided that if any such non-cash charges represent an accrual or reserve for potential cash items in any future period, (1) the Borrower may determine not to add back such non-cash charge in the current period and (2) to the extent the Borrower does decide to add back such non-cash charge in the current period, the cash payment in respect thereof in such future period shall be subtracted from EBITDAX to such extent, and excluding amortization of a prepaid cash item that was paid in a prior period), (v) losses on asset Dispositions, disposals and abandonments, (vi) (x) Transaction Expenses incurred prior to or on or about the Effective Date in connection with the Transactions, and (y) any Transaction Expenses after the Effective Date and any costs and expenses incurred in connection with any Investments, acquisitions (or purchases of assets), incurrence of Debt or expenses incurred in connection with Public Company Compliance after the Effective Date; *provided* that the aggregate amount of add backs under this clause (y) and clause (vii) below shall not exceed 10% of EBITDAX (calculated prior to giving effect to such add-backs) for such period, and (vii) the amount of any restructuring charges or reserves, equity-based or non-cash compensation charges or expenses including any such charges or expenses arising from grants of stock appreciation or similar rights, stock options, restricted stock or other rights, retention charges (including charges or expenses in respect of incentive plans), severance costs, costs relating to initiatives aimed at profitability improvement, costs or reserves associated with improvements to IT and accounting functions and integration and facilities opening costs or any one-time costs incurred in connection with acquisitions and investments *provided* that the aggregate amount of add backs under this (vii) and clause (vi)(y) above shall not exceed 10% of EBITDAX (calculated prior to giving effect to such add-backs) for such period;

minus (without duplication) (c) to the extent included in the statement of Consolidated Net Income for such period, the sum of (i) interest income, (ii) income tax credits (to the extent not netted from income tax expense), (iii) all non-cash gains increasing Consolidated Net Income for such period, excluding any non-cash gains that represent the reversal of an accrual or reserve for any anticipated cash charges in any prior period (other than any such accrual or reserve that has been added back to Consolidated Net Income in calculating EBITDAX in accordance with this definition) and (iv) gains on asset Dispositions, disposals and abandonments (other than the sale of Hydrocarbons in the ordinary course of business, but including any gain from the Liquidation of any Swap Agreement). If the Effective Date occurs on or prior to the date on which unaudited statements of income and cash flows of the Borrower and its Consolidated Subsidiaries as of and for the fiscal quarter ended June 30, 2026 are available, for any calculation of EBITDAX on or prior to the delivery of financial statements for the fiscal quarter ending June 30, 2026 pursuant to <u>Section</u> <u>8.01(b)</u>, EBITDAX (prior to giving effect to any Pro Forma Basis adjustments) shall be deemed to be Specified EBITDAX.

There may, at the Borrower's option, be included in determining EBITDAX for any period of four consecutive fiscal quarters (each a "<u>Reference Period</u>"), without duplication, the positive amount of Acquired EBITDAX of any Person, property, business or asset acquired by the Borrower or any Restricted Subsidiary during such Reference Period (but not the Acquired

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EBITDAX of any related Person, property, business or assets to the extent not so acquired), to the extent not subsequently sold, transferred or otherwise disposed by the Borrower or such Restricted Subsidiary during such Reference Period (each such Person, property, business or asset acquired and not subsequently so disposed of, an "<u>Acquired Entity or Business</u>") and the Acquired EBITDAX of any Unrestricted Subsidiary that is converted into a Restricted Subsidiary during such Reference Period (each, a "<u>Converted Restricted Subsidiary</u>"), based on the actual Acquired EBITDAX of such Acquired Entity or Business or Converted Restricted Subsidiary for such Reference Period (including the portion thereof occurring prior to such acquisition). There shall be excluded in determining EBITDAX for any Reference Period (a) the negative amount of Acquired EBITDAX of any Acquired Entity or Business or Converted Restricted Subsidiary during such Reference Period and (b) the Disposed EBITDAX of any Person, property, business or asset (other than an Unrestricted Subsidiary) sold, transferred or otherwise disposed of or, closed or classified as discontinued operations (but if such operations are classified as discontinued due to the fact that they are subject to an agreement to dispose of such operations, only when and to the extent such operations are actually disposed of) by the Borrower or any Restricted Subsidiary during such Reference Period (each such Person, property, business or asset so sold or disposed of, a "<u>Sold Entity or Business</u>") and the Disposed EBITDAX of any Restricted Subsidiary that is converted into an Unrestricted Subsidiary during such Reference Period (each a "<u>Converted Unrestricted Subsidiary</u>"), based on the actual Disposed EBITDAX of such Sold Entity or Business or Converted Unrestricted Subsidiary for such Reference Period (including the portion thereof occurring prior to such sale, transfer or disposition). For the avoidance of doubt, Acquired EBITDAX (in the case of any Acquired Entity or Business or Converted Restricted Subsidiary) and Disposed EBITDAX (in the case of any Disposed Entity or Business or Converted Unrestricted Subsidiary) shall be included in the calculation of EBITDAX for such Reference Period, as though Acquired EBITDAX were acquired and Disposed EBITDAX were disposed, as applicable, in each case, on the first day of such Reference Period. For the avoidance of doubt, and notwithstanding anything to the contrary contained herein, this paragraph shall not apply to any Acquired EBITDAX with respect to any Material Acquisition that is being annualized pursuant to the proviso to the definition of "Acquired EBITDAX".

"<u>EEA Financial Institution</u>" means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clause (a) or clause (b) of this definition and is subject to consolidated supervision with its parent.

"<u>EEA Member Country</u>" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"<u>EEA Resolution Authority</u>" means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"<u>Effective Date</u>" means the date on which the conditions specified in <u>Section</u> <u>6.02</u> are satisfied (or waived in accordance with <u>Section</u> <u>12.02</u>).

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"<u>Effective Date Initial Public Offering</u>" means the initial public offering of Equity Interests of the Parent as described in the Registration Statement.

"<u>Elected Commitment</u>" means, as to each Lender, the amount set forth opposite such Lender's name on <u>Annex I</u> under the caption "Elected Commitment", as the same may be increased, reduced or terminated from time to time in connection with an optional increase, reduction or termination of the Aggregate Elected Commitment Amounts pursuant to <u>Section</u> <u>2.06(c)</u>.

"<u>Elected Commitment Increase Certificate</u>" has the meaning assigned to such term in <u>Section</u> <u>2.06(c)(ii)(D)</u>.

"<u>Electronic Record</u>" has the meaning assigned to such term in, and shall be interpreted in accordance with, 15 U.S.C. 7006.

"<u>Electronic Signature</u>" has the meaning assigned to such term in, and shall be interpreted in accordance with, 15 U.S.C. 7006.

"<u>Engineering Reports</u>" has the meaning assigned to such term in <u>Section</u> <u>2.07(c)(i)</u>.

"<u>Environmental Laws</u>" means any and all Governmental Requirements pertaining to human or worker health and safety (to the extent relating to exposure to Hazardous Materials), the environment, the preservation or reclamation of natural resources, or the management, Release or threatened Release of any Hazardous Materials, in effect and applicable to the operations of the Borrower or any Restricted Subsidiary, including, the Oil Pollution Act of 1990 ("OPA"), as amended, the Clean Air Act, as amended, the Comprehensive Environmental, Response, Compensation, and Liability Act of 1980 ("CERCLA"), as amended, the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act of 1970, as amended, the Resource Conservation and Recovery Act of 1976 ("RCRA"), as amended, the Pipeline Safety Statutes 49 U.S.C. Chapters 601 & 603 and regulations at 49 CFR Parts 190-199, as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, and the Hazardous Materials Transportation Act, as amended.

"<u>Environmental Permit</u>" means any permit, registration, license, approval, consent, exemption, variance, or other authorization required under or issued to the Borrower or any Restricted Subsidiary pursuant to applicable Environmental Laws.

"<u>Equity Interests</u>" means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute.

"<u>ERISA Affiliate</u>" means each trade or business (whether or not incorporated) which together with the Borrower or a Subsidiary would be deemed to be a "single employer" within the meaning of Section 4001(b)(1) of ERISA or subsections (b), (c), (m) or (o) of Section 414 of the Code.

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"<u>ERISA Event</u>" means (a) the occurrence of a "Reportable Event" described in Section 4043 of ERISA with respect to a Plan subject to Title IV of ERISA (other than a Multiemployer Plan), other than a Reportable Event as to which the provision of thirty (30) days' notice to the PBGC is expressly waived under applicable regulations, (b) the withdrawal of the Borrower, a Subsidiary or any ERISA Affiliate from a Plan subject to Title IV of ERISA during a plan year in which it was a "substantial employer" as defined in Section 4001(a)(2) of ERISA, (c) the filing of a notice of intent to terminate a Plan subject to Title IV of ERISA (other than a Multiemployer Plan) or the treatment of a Plan amendment as a termination under Section 4041 of ERISA, (d) the institution of proceedings to terminate a Plan by the PBGC, (e) receipt of a notice of withdrawal liability pursuant to Section 4202 of ERISA, (f) the occurrence of any other event or condition which would reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or (g) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower, a Subsidiary or any ERISA Affiliate.

"<u>Erroneous Payment</u>" has the meaning assigned to such term in <u>Section</u> <u>11.14(a)</u>.

"<u>Erroneous Payment Deficiency Assignment</u>" has the meaning assigned to such term in <u>Section</u> <u>11.14(d)</u>.

"<u>Erroneous Payment Impacted Class</u>" has the meaning assigned to such term in <u>Section</u> <u>11.14(d)</u>.

"<u>Erroneous Payment Return Deficiency</u>" has the meaning assigned to such term in <u>Section</u> <u>11.14(d)</u>.

"<u>Erroneous Payment Subrogation Rights</u>" has the meaning assigned to such term in <u>Section</u> <u>11.14(d)</u>.

"<u>EU Bail-In Legislation Schedule</u>" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"<u>Event of Default</u>" has the meaning assigned to such term in <u>Section</u> <u>10.01</u>.

"<u>Excepted Liens</u>" means: (a) Liens for Taxes, assessments or other governmental charges or levies which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (b) Liens (i) in connection with workers' compensation, unemployment insurance or other social security, old age pension, public liability obligations or similar legislation, and deposits securing liabilities to insurance carriers under insurance arrangements in respect of such obligations, in each case, in the ordinary course of business, or (ii) to secure (or secure the Lien securing) liability for reimbursement or indemnification obligations of (including obligations in respect of letters of credit or bank guarantees for the benefit of) insurance carriers providing property, casualty or liability insurance to the Borrower or any Restricted Subsidiary, in each case, which are not delinquent or which are being contested in good faith by appropriate action and for which adequate

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reserves have been maintained in accordance with GAAP; (c) statutory landlord's liens, operators', vendors', carriers', warehousemen's, repairmen's, mechanics', suppliers', workers', materialmen's, construction or other like Liens, in each case, arising by operation of law in the ordinary course of business or incident to the exploration, development, operation and maintenance of Oil and Gas Properties each of which is in respect of obligations that are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (d) contractual Liens which arise in the ordinary course of business under operating agreements, joint venture agreements, oil and gas partnership agreements, oil and gas leases, farm-out agreements, farm-in agreements, division orders, contracts for the sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual interest agreements, overriding royalty agreements, marketing agreements, processing agreements, net profits agreements, development agreements, service agreements, supply agreements, gas balancing or deferred production agreements, injection, repressuring and recycling agreements, seismic or other geophysical permits or agreements, and other agreements which are or have become usual and customary in the oil and gas business and are for claims which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; *provided* that any such Lien referred to in this clause (d) does not materially impair the use of any material Property covered by such Lien for the purposes for which such Property is held by the Borrower or any Restricted Subsidiary or materially impair the value of any material Property subject thereto; (e) Liens arising solely by virtue of any statutory or common law provision relating to banker's liens, rights of set-off or similar rights and remedies arising in the ordinary course of business and burdening only deposit accounts or other funds maintained with a creditor depository institution; *provided* that no such deposit account is a dedicated cash collateral account or is subject to restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Board and no such deposit account is intended by the Borrower or any of its Restricted Subsidiaries to provide collateral to the depository institution; (f) zoning and land use requirements, easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations in any Property of the Borrower or any Restricted Subsidiary for the purpose of roads, pipelines, shared facilities, transmission lines, transportation lines, distribution lines for the removal of gas, oil, coal or other minerals or timber, and other like purposes, or for the joint or common use of real estate, rights of way, facilities and equipment, that do not secure any monetary obligations and which in the aggregate do not materially impair the use of any material Property for the purposes of which such Property is held by the Borrower or any Restricted Subsidiary or materially impair the value of any material Property subject thereto; (g) Liens on cash or securities pledged to secure performance of tenders, surety and appeal bonds, government contracts, performance and return of money bonds, bids, trade contracts, leases, statutory obligations, regulatory obligations and other obligations of a like nature incurred in the ordinary course of business; (h) judgment and attachment Liens not giving rise to an Event of Default; *provided* that any appropriate legal proceedings which may have been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated shall not have expired and no action to enforce such Lien has been commenced; (i) purported Liens evidenced by the filing of UCC financing statements solely as a precautionary measure in connection with operating leases of personal property; (j) any interest or title of a lessor, sublessor, licensor or

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sublicensor or secured by a lessor's, sublessor's, licensor's or sublicensor's interest under any lease, sublease, license or sublicense permitted by this Agreement; (k) Immaterial Title Deficiencies; (l) contractual restrictions and prohibitions on encumbrances and transferability with respect to software licensed to the Borrower and/or to any Restricted Subsidiary; and (m) Liens in favor of depository banks arising under documentation governing deposit accounts which Liens secure the payment of returned items, settlement item amounts, customary bank fees for maintaining deposit accounts and other related services, and similar items and fees; *provided further*, that, notwithstanding the foregoing or anything to the contrary contained herein, (x) no intention to subordinate the first priority afforded by the Liens granted in favor of the Administrative Agent, for the benefit of the Secured Parties, under the Security Instruments is to be hereby implied or expressed by the permitted existence of such Excepted Liens, (y) Liens described in <u>clauses (a)</u> through <u>(e)</u> and <u>(g)</u> shall remain "Excepted Liens" only for so long as no action to enforce such Lien has been commenced (or if commenced, has been stayed), and (z) the term "Excepted Liens" shall not include any Lien securing Debt for borrowed money other than the Obligations.

"<u>Excluded Accounts</u>" means (a) each account for which the deposits consist solely of amounts utilized to fund payroll, healthcare, employee benefit or tax obligations of the Borrower and its Restricted Subsidiaries, (b) segregated deposit accounts the balance of which consists exclusively of cash constituting purchase price deposits held in escrow by or on behalf of any Borrower or any of its Restricted Subsidiaries pursuant to a binding and enforceable purchase and sale agreement with an unaffiliated third party containing customary provisions regarding the payment and refunding of such deposits, (c) deposit accounts of any Person acquired by the Borrower or any Restricted Subsidiary in connection with any acquisition permitted hereunder during a thirty (30) day period following such acquisition (or such longer period as approved by the Administrative Agent); *provided* that (1) no proceeds of any Borrowing shall be deposited into any such account and (2) no additional funds shall be deposited into any such account other than revenues and other amounts required to be deposited therein pursuant to existing contractual arrangements or in the ordinary course of the business of the acquired Person as conducted prior to such acquisition and (d) other accounts so long as the aggregate average daily maximum balance in any such other account over a 30-day period does not at any time exceed $1,250,000; *provided* that the aggregate daily maximum balance for all such bank accounts excluded pursuant to this <u>clause</u> <u>(d)</u> on any day shall not exceed $2,500,000.

"<u>Excluded Property</u>" has the meaning assigned to such term in the Guarantee and Collateral Agreement.

"<u>Excluded Swap Obligation</u>" means, with respect to the General Partner or any Subsidiary Guarantor individually determined on a Subsidiary Guarantor by Subsidiary Guarantor basis, any obligation in respect of any Swap Agreement if, and solely to the extent that, all or a portion of the guarantee by the General Partner or such Subsidiary Guarantor of, or the grant by such Person of a security interest to secure, such obligation in respect of any Swap Agreement (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Person's failure for any reason to constitute an "eligible contract participant" as defined in the Commodity Exchange Act at the time such guarantee or grant of a security interest becomes effective with respect to such related obligation in respect of any Swap Agreement. If any obligation in respect of any Swap Agreement arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such obligation in respect of any Swap Agreement that is attributable to swaps for which such guarantee or security interest is or becomes illegal.

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"<u>Excluded Taxes</u>" means, with respect to the Administrative Agent, any Lender (including for purposes of this definition the Issuing Bank) or any other recipient of any payment to be made by or on account of any obligation of the Borrower or any Guarantor hereunder or under any other Loan Document, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under <u>Section</u> <u>5.04(b)</u>) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to <u>Section</u> <u>5.03</u>, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such recipient's failure to comply with <u>Section</u> <u>5.03(f)</u> or <u>(g)</u> and (d) any U.S. federal withholding Taxes imposed under FATCA.

"<u>Existing Note Purchase Agreement</u>" means that certain Note Purchase Agreement, dated as of September 17, 2024, by and among the Parent, as issuer, U.S. Bank Trust Company, National Association, as agent for the holders, and the other parties thereto from time to time, as amended, restated, amended and restated, supplemented or otherwise modified prior to the Effective Date.

"<u>Existing Notes Prepayment</u>" has the meaning assigned to such term in <u>Section</u> <u>6.02(k)(vi)</u>.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the Signing Date (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code and any fiscal or regulatory legislation, rules or official administrative practices adopted pursuant to such intergovernmental agreement.

"<u>Federal Funds Rate</u>" means, for any day, the greater of (a) the rate calculated by Federal Reserve Bank of New York based on such day's Federal funds transactions by depositary institutions (as determined in such manner as the Federal Reserve Bank of New York shall set forth on its public website from time to time) and published on the next succeeding Business Day by the Federal Reserve Bank of New York as the Federal effective rate and (b) 0%.

"<u>Fee Letter</u>" means any fee letter that may hereafter be entered into between the Borrower, the Administrative Agent and/or any Arranger.

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"<u>Financial Officer</u>" means, for any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person. Unless otherwise specified, all references herein to a Financial Officer means a Financial Officer of the Borrower.

"<u>Financial Performance Covenants</u>" shall mean the covenants of the Borrower set forth in <u>Section</u> <u>9.01(a)</u> and <u>(b)</u>.

"<u>Flood Insurance Regulations</u>" means, collectively, (a) the National Flood Insurance Act of 1968, (b) the Flood Disaster Protection Act of 1973, (c) the National Flood Insurance Reform Act of 1994, (d) the Flood Insurance Reform Act of 2004 and (e) the Biggert-Waters Flood Insurance Reform Act of 2012, as each of the foregoing is now or hereafter in effect and any successor statute to any of the foregoing.

"<u>Floor</u>" means a rate of interest equal to (a) prior to the Discharge of Second Lien Obligations, 2.50% and (b) following the Discharge of Second Lien Obligations, 0.00%.

"<u>Foreign Lender</u>" means any Lender that is not a U.S. Person.

"<u>Foreign Subsidiary</u>" means any Restricted Subsidiary that is not a Domestic Subsidiary.

"<u>Fronting Exposure</u>" means, at any time there is a Defaulting Lender, with respect to the Issuing Bank, such Defaulting Lender's LC Exposure other than LC Exposure as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof.

"<u>GAAP</u>" means generally accepted accounting principles in the United States of America as in effect from time to time subject to the terms and conditions set forth in <u>Section</u> <u>1.05</u>.

"<u>Governance Documents</u>" has the meaning assigned to such term in <u>Section</u> <u>6.01(b)</u>.

"<u>Governmental Authority</u>" means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

"<u>Governmental Requirement</u>" means any law, statute, code, ordinance, order, determination, rule, regulation, judgment, decree, injunction, rules of common law, authorization or other legally binding directive or requirement, whether now or hereinafter in effect, of any Governmental Authority.

"<u>Guarantee and Collateral Agreement</u>" means a Guarantee and Collateral Agreement among the Borrower and the other Credit Parties from time to time party thereto and the Administrative Agent in form and substance satisfactory to the Administrative Agent (a) granting Liens on the Credit Parties' personal property constituting Collateral (as defined therein) in favor of the Administrative Agent for the benefit of the Secured Parties to secure the Obligations and (b) unconditionally guaranteeing on a joint and several basis, payment of the Obligations, as the same may be amended, restated, amended and restated, supplemented or modified from time to time.

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"<u>Guarantors</u>" means each Restricted Subsidiary that is a party to the Guarantee and Collateral Agreement as a "Guarantor" and "Grantor" (as such terms are defined in the Guarantee and Collateral Agreement) and guarantees the Obligations (including pursuant to <u>Section</u> <u>6.02</u> and <u>Section</u> <u>8.13(b)</u>).

"<u>Hazardous Material</u>" means any substance regulated due to its deleterious properties or as to which liability might arise under any applicable Environmental Law, including: (a) any chemical, compound, material, product, byproduct, substance or waste defined as or included in the definition or meaning of "hazardous substance," "hazardous material," "hazardous waste," "solid waste," "toxic waste," "extremely hazardous substance," "toxic substance," "contaminant," "pollutant," or any other similar term or expression intended to define, list or classify substances by reason of properties harmful to health, safety or the indoor or outdoor environment (including harmful properties such as ignitability, corrosivity, reactivity, carcinogenicity, toxicity, reproductive toxicity, "TCLP toxicity" or "EP toxicity" or words of similar import under any applicable Environmental Laws); (b) petroleum products, petroleum substances, natural gas, oil, oil and gas waste, crude oil, and any components, fractions, or derivatives thereof; and (c) radioactive materials, explosives, asbestos or asbestos containing materials, per- and polyfluoroalkyl substances, polychlorinated biphenyls, radon, infectious or medical wastes.

"<u>Highest Lawful Rate</u>" means, with respect to each Lender, the maximum nonusurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charged or received on the Loans or on other Obligations under laws applicable to such Lender which are presently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than applicable laws allow as of the Signing Date.

"<u>Hydrocarbon Interests</u>" means all rights, titles, interests and estates now or hereafter acquired in and to oil and gas leases, oil, gas and mineral leases, or other liquid or gaseous hydrocarbon leases, mineral fee interests, term mineral interests, overriding royalty, non-participating royalty and royalty interests, net profit interests and production payment interests, including any reserved or residual interests of whatever nature.

"<u>Hydrocarbons</u>" means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all products refined or separated therefrom.

"<u>Illegality Notice</u>" has the meaning set forth in <u>Section</u> <u>3.03(b)</u>.

"<u>Immaterial Subsidiary</u>" means any Restricted Subsidiary that is not a Material Subsidiary.

"<u>Immaterial Title Deficiencies</u>" means, with respect to Oil and Gas Properties, minor defects or deficiencies in title, and discrepancies in reported net revenue and working interest ownership percentages, which do not, individually or in the aggregate, affect Oil and Gas Properties with a value (which, for purposes hereof, shall mean the value attributed to any such Oil and Gas Properties in the most recently delivered Reserve Report) greater than one percent (1%) of the most recent Borrowing Base.

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"<u>Immediate Family Members</u>" shall mean with respect to any individual, such individual's child, stepchild, grandchild or more remote descendant, parent, stepparent, grandparent, spouse, former spouse, qualified domestic partner, sibling, mother-in-law, father-in-law, son-in-law and daughter-in-law (including adoptive relationships) and any trust, partnership or other bona fide estate-planning vehicle the only beneficiaries of which are any of the foregoing individuals or any private foundation or fund that is controlled by any of the foregoing individuals or any donor-advised fund of which any such individual is the donor.

"<u>Indemnified Taxes</u>" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower or any Guarantor hereunder or under any other Loan Document or (b) to the extent not otherwise described in clause (a) above, Other Taxes.

"<u>Indemnitee</u>" has the meaning set forth in <u>Section</u> <u>12.03(b)</u>.

"<u>Information</u>" has the meaning set forth in <u>Section</u> <u>12.11</u>.

"<u>Initial Financial Statements</u>" has the meaning set forth in <u>Section</u> <u>6.02(s)</u>.

"<u>Initial Reserve Report</u>" means the report of Cawley Gillespie and Associates, Inc., dated as of December 31, 2025, with respect to the Oil and Gas Properties of the Borrower and the Restricted Subsidiaries as of January 1, 2026.

"<u>Interest Election Request</u>" means a request by the Borrower to convert or continue a Borrowing in accordance with <u>Section</u> <u>2.04</u>.

"<u>Interest Payment Date</u>" means (a) with respect to any ABR Loan, the last Business Day of each March, June, September and December and the Termination Date and (b) with respect to any SOFR Loan, the last Business Day of each Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a SOFR Borrowing with an Interest Period of more than three months' duration, each day prior to the last day of such Interest Period that occurs at intervals of three months' duration after the first day of such Interest Period and the Termination Date.

"<u>Interest Period</u>" means, with respect to any SOFR Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, three or six months thereafter, as the Borrower may elect; *provided* that (a) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day; (b) any Interest Period pertaining to a SOFR Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period; (c) no Interest Period shall extend beyond the Maturity Date; and (d) no tenor that has been removed from this definition pursuant to <u>Section</u> <u>3.03(c)</u> shall be available for specification in any Borrowing Request or any Interest Election Request. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.

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"<u>Interim Redetermination</u>" has the meaning assigned to such term in <u>Section</u> <u>2.07(b)</u>.

"<u>Interim Redetermination Date</u>" means the date on which a Borrowing Base that has been redetermined pursuant to an Interim Redetermination becomes effective as provided in <u>Section</u> <u>2.07(d)</u>.

"<u>Investment</u>" means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of Equity Interests of any other Person or any agreement to make any such acquisition (including, without limitation, any "short sale" or any sale of any securities at a time when such securities are not owned by the Person entering into such short sale); (b) the making of any deposit with, or advance, loan or capital contribution to, assumption of Debt of, purchase or other acquisition of any other Debt or equity participation or interest in, or other extension of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such Property to such Person) and made in the ordinary course of business and consistent with past practice); (c) the purchase or acquisition (in one or a series of transactions) of Property (other than Equity Interests) of another Person that constitutes a business unit; or (d) the entering into of any guarantee of, or other contingent obligation (including the deposit of any Equity Interests to be sold) with respect to, Debt or other liability of any other Person and (without duplication) any amount committed to be advanced, lent or extended to such Person.

"<u>IRS</u>" means the United States Internal Revenue Service.

"<u>Issuing Bank</u>" means Capital One, National Association, in its capacity as issuer of Letters of Credit hereunder, and each of its successors in such capacity as provided in <u>Section</u> <u>2.08(i)</u>. The Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case the term "Issuing Bank" shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate. Notwithstanding anything herein to the contrary, Capital One, National Association, shall only be required to issue standby letters of credit.

"<u>LC Commitment</u>" means $10,000,000.

"<u>LC Disbursement</u>" means a payment made by the Issuing Bank pursuant to a Letter of Credit.

"<u>LC Exposure</u>" means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time *plus* (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

"<u>Lenders</u>" means the Persons listed on <u>Annex</u> <u>I</u>, any Person that shall have become a party hereto pursuant to an Assignment and Assumption or any amendment or modification to this Agreement, and any Person that shall have become a party hereto as an Additional Lender pursuant to <u>Section</u> <u>2.06(c)</u>, other than, in each case, any such Person that ceases to be a party hereto

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pursuant to an Assignment and Assumption. Unless the context otherwise requires, the term "Lenders" includes the Issuing Bank. For the avoidance of doubt, any Person that is a Lender shall, unless such Lender ceases to be a party hereto pursuant to an Assignment and Assumption, remain a Lender whether or not the Commitments are $0 and regardless of the occurrence of the Maturity Date.

"<u>Lending Office</u>" means, with respect to any Lender, the office of such Lender maintaining such Lender's Revolving Credit Exposure, which office may, to the extent the applicable Lender notifies the Administrative Agent in writing, include an office of any Affiliate of such Lender or any domestic or foreign branch of such Lender or Affiliate.

"<u>Letter of Credit</u>" means any letter of credit issued pursuant to this Agreement.

"<u>Letter of Credit Agreements</u>" means all letter of credit applications and other agreements (including any amendments, modifications or supplements thereto) submitted by the Borrower, or entered into by the Borrower, with the Issuing Bank relating to any Letter of Credit.

"<u>Lien</u>" means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to (a) the lien or security interest arising from a deed of trust, mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes or (b) production payments and the like payable out of Oil and Gas Properties. The term "Lien" shall include easements, restrictions, servitudes, permits, conditions, covenants, exceptions and reservations.

"<u>Liquidate</u>" means, with respect to any Swap Agreement, the sale, assignment, novation, unwind, monetization or early termination of all or any part of such Swap Agreement or the creation of an offsetting position against all or any part of such Swap Agreement. The terms "<u>Liquidating</u>", "<u>Liquidated</u>" and "<u>Liquidation</u>" have a correlative meaning thereto.

"<u>Liquidity</u>" shall mean, as of any date of determination, the sum of (a) the Unused Availability on such date to the extent that the Borrower is otherwise permitted to borrow such amounts under the terms of this Agreement, including, without limitation, <u>Section</u> <u>6.03</u> hereof but excluding <u>Section</u> <u>6.03(d)</u>, and (b) the aggregate amount of Unrestricted Cash of the Borrower and the Restricted Subsidiaries, *minus* (c) the amount of any Borrowing Base Deficiency as of such date.

"<u>Loan Documents</u>" means this Agreement, the Fee Letter, the Notes, the Letter of Credit Agreements, the Letters of Credit, the Security Instruments, any Notes issued by the Borrower pursuant hereto and any other document, agreement or letter agreed in writing by the Borrower and the Administrative Agent and/or the Lenders to be a Loan Document.

"<u>Loan Limit</u>" means, at any time, the least of (a) the Aggregate Maximum Credit Amounts, (b) the then effective Borrowing Base and (c) the then effective Aggregate Elected Commitment Amounts.

"<u>Loans</u>" means the loans made by the Lenders to the Borrower pursuant to this Agreement.

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"<u>Majority Lenders</u>" means (a) if there are fewer than three Lenders at such time, all Non-Defaulting Lenders, and (b) if there are three or more Lenders at such time, (i) at any time while no Loans or LC Exposure is outstanding, Non-Defaulting Lenders having more than fifty percent (50%) of the Aggregate Maximum Credit Amounts of all Non-Defaulting Lenders and (ii) at any time while any Loans or LC Exposure is outstanding, Non-Defaulting Lenders holding more than fifty percent (50%) of the outstanding aggregate principal amount of the Loans and participation interests in Letters of Credit of all Non-Defaulting Lenders (without regard to any sale by a Non-Defaulting Lender of a participation in any Loan under <u>Section</u> <u>12.04(c)</u>).

"<u>Material Adverse Effect</u>" means a material adverse change in, or material adverse effect on (a) the business, operations, Property or financial condition of the Parent, the General Partner, the Borrower and the Restricted Subsidiaries taken as a whole, (b) the ability of the Borrower, the Parent, the General Partner, any Restricted Subsidiary or any Guarantor to perform any of its obligations under any Loan Document, (c) the validity or enforceability of any Loan Document, or (d) the rights and remedies of or benefits available to the Administrative Agent, any other Agent, the Issuing Bank or any Lender under any Loan Document.

"<u>Material Acquisition</u>" has the meaning assigned to such term in the definition of "Acquired EBITDAX".

"<u>Material Debt</u>" means: (a) any Debt (other than the Loans and Letters of Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the Borrower and its Restricted Subsidiaries in an aggregate principal amount exceeding the Threshold Amount and (b) Debt (and any guarantees thereof) under the Second Lien Notes and the other Second Lien Note Documents. For purposes of determining Material Debt, the "principal amount" of the obligations of the Borrower or any Restricted Subsidiary in respect of any Swap Agreement at any time shall be the Swap Termination Value of such Swap Agreement.

"<u>Material Subsidiary</u>" means, as of any date, any Restricted Subsidiary that (a) incurs or is otherwise liable on any Debt or guarantees any Debt or grants any Lien on any Property to secure any Debt, (b) owns any Borrowing Base Properties, or (c) whose revenues or total assets, when taken together with its Subsidiaries, as of the last day of the most recent fiscal quarter for which financial statements are required to have been delivered pursuant to <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u> or, with respect to the Initial Financial Statements, <u>Section</u> <u>6.02</u>, were equal to or greater than 2.5% of the consolidated total revenues or consolidated total assets, respectively, of the Borrower and the Consolidated Restricted Subsidiaries as of such date, determined in accordance with GAAP; *provided* that, if, as of the last day of the most recent fiscal quarter for which financial statements are required to have been delivered pursuant to <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u> or, with respect to the Initial Financial Statements, <u>Section</u> <u>6.02</u>, the aggregate revenues or aggregate assets attributable to all Restricted Subsidiaries that are not Material Subsidiaries exceed 5.0% of the consolidated revenues or consolidated total assets, respectively, of the Borrower and the Consolidated Restricted Subsidiaries as of such date, then the Borrower shall designate in the compliance certificate required to be delivered pursuant to Section 8.01(c) for such fiscal quarter or fiscal year, as applicable, one or more Restricted Subsidiaries that are not Material Subsidiaries as Material Subsidiaries as may be necessary to eliminate such excess, and upon the delivery of such compliance certificate to the Administrative Agent, such designated Restricted Subsidiaries shall for all purposes of this Agreement constitute Material Subsidiaries; *provided further* that, in

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the event that the Borrower fails to so designate sufficient additional Subsidiaries as "Material Subsidiaries" as aforesaid, the Administrative Agent may, by prior written notice to the Borrower, designate sufficient additional Restricted Subsidiaries as "Material Subsidiaries" on the Borrower's behalf, whereupon such Restricted Subsidiaries shall constitute "Material Subsidiaries" for all purposes of this Agreement.

"<u>Maturity Date</u>" means May 9, 2030.

"<u>Maximum Credit Amount</u>" means, as to each Lender, the amount set forth opposite such Lender's name on <u>Annex</u> <u>I</u> under the caption "Maximum Credit Amounts", as the same may be (a) reduced or terminated from time to time in connection with a reduction or termination of the Aggregate Maximum Credit Amounts pursuant to <u>Section</u> <u>2.06(b)</u>, (b) modified from time to time pursuant to <u>Section</u> <u>2.06(c)</u> or (c) modified from time to time pursuant to any assignment permitted by <u>Section</u> <u>12.04(b)</u>.

"<u>Moody's</u>" means Moody's Investors Service, Inc. and any successor thereto that is a nationally recognized rating agency.

"<u>Mortgaged Property</u>" means any Property owned by the Borrower or any Guarantor which is subject to the Liens existing and to exist under the terms of the Security Instruments.

"<u>Mortgages</u>" means all mortgages, deeds of trust and similar documents, instruments and agreements creating, evidencing, perfecting or otherwise establishing the Liens on Mortgaged Property to secure payment of the Obligations or any part thereof in form and substance satisfactory to the Administrative Agent.

"<u>Multiemployer Plan</u>" means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

"<u>New Borrowing Base Notice</u>" has the meaning assigned to such term in <u>Section</u> <u>2.07(d)</u>.

"<u>Non-Consenting Lender</u>" means any Lender that (a) does not approve any consent, waiver or amendment that (i) requires the approval of all affected Lenders or all Lenders in accordance with the terms of <u>Section</u> <u>12.02</u> and (ii) has been approved by the Majority Lenders and (b) does not approve an increase in the Borrowing Base that has been approved by the Supermajority Lenders.

"<u>Non-Defaulting Lenders</u>" means, at any time, each Lender that is not a Defaulting Lender.

"<u>Note Purchase Agreement Amendment</u>" means an amendment or amendment and restatement to the Existing Note Purchase Agreement among Parent, the Borrower, as issuer, U.S. Bank Trust Company, National Association, as agent for the holders, the Second Lien Agent, and the other parties thereto from time to time, which shall be in form and substance satisfactory to the Administrative Agent.

"<u>Notes</u>" means the promissory notes of the Borrower described in <u>Section</u> <u>2.02(d)</u> and being substantially in the form of <u>Exhibit</u> <u>A</u>, together with all amendments, modifications, replacements, extensions and rearrangements thereof.

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"<u>NYFRB</u>" means the Federal Reserve Bank of New York.

"<u>Obligations</u>" means any and all amounts owing or to be owing by the Parent, the General Partner, the Borrower, any Restricted Subsidiary or any Guarantor (whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising): (a) to any Agent, the Issuing Bank or any Lender under any Loan Document, including, without limitation, all applicable fees and expenses hereunder, and all interest on any of the Loans (including any interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of any Credit Party (or could accrue but for the operation of applicable bankruptcy or insolvency laws), whether or not such interest is allowed or allowable as a claim in any such case, proceeding or other action); (b) to any Secured Swap Party under any Secured Swap Agreement; (c) to any Secured Cash Management Provider under any Secured Cash Management Agreement; and (d) all renewals, extensions and/or rearrangements of any of the above; *provided* that solely with respect to (i) any Subsidiary Guarantor that is not and (ii) the General Partner, if such Subsidiary Guarantor or the General Partner is not, an "eligible contract participant" under the Commodity Exchange Act, Excluded Swap Obligations of such Person shall in any event be excluded from "Obligations" owing by such Person. Without limitation of the foregoing, the term "Obligations" shall include the unpaid principal of and interest on the Loans and LC Exposure (including, without limitation, interest accruing at the then applicable rate provided in this Agreement after the maturity of the Loans and LC Exposure and interest accruing at the then applicable rate provided in this Agreement after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Parent, the General Partner, the Borrower, any of its Subsidiaries or any Guarantor, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), reimbursement obligations (including, without limitation, to reimburse LC Disbursements), obligations to post cash collateral in respect of Letters of Credit, any Erroneous Payment Subrogation Rights, payments in respect of an early termination of Secured Swap Obligations and unpaid amounts, fees, expenses, indemnities, costs, and all other obligations and liabilities of every nature of the Parent, the General Partner, the Borrower, any Subsidiary or any Guarantor, whether absolute or contingent, due or to become due, now existing or hereafter arising under this Agreement, the other Loan Documents, any Secured Swap Agreement or any Secured Cash Management Agreement.

"<u>OFAC</u>" means the U.S. Department of the Treasury's Office of Foreign Assets Control.

"<u>Oil and Gas Properties</u>" means (a) Hydrocarbon Interests; (b) the Properties now or hereafter pooled or unitized with Hydrocarbon Interests; (c) all presently existing or future unitization agreements, pooling agreements and declarations of pooled or unitized units and the units created thereby (including without limitation all units created under orders, regulations and rules of any Governmental Authority) which may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements, including farmout agreements, farm in agreements, area of mutual interest agreements, equipment leases and production sharing contracts and other agreements, which relate to any of the Hydrocarbon Interests or the production, sale, purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests; (e) all Hydrocarbons in and under and which may be produced and saved or attributable to the Hydrocarbon Interests, including all oil in tanks, and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to the

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Hydrocarbon Interests; (f) all tenements, hereditaments, appurtenances and Properties in any manner appertaining, belonging, affixed or incidental to the Hydrocarbon Interests; and (g) all Properties, rights, titles, interests and estates described or referred to above, including any and all Property, real or personal, immovable or moveable, now owned or hereafter acquired and situated upon, used, held for use or useful in connection with the operating, working or development of any of such Hydrocarbon Interests or Property (excluding drilling rigs, automotive equipment, rental equipment or other personal Property which may be on such premises for the purpose of drilling a well or for other similar temporary uses) and including any and all wellbores, oil wells, gas wells, injection wells, disposal wells or other wells, buildings, structures, fuel separators, liquid extraction plants, plant compressors, pumps, pumping units, gathering systems, field gathering systems, gas processing plants and pipeline systems and any related infrastructure to any thereof, tanks and tank batteries, fixtures, valves, fittings, machinery and parts, engines, boilers, meters, apparatus, equipment, appliances, tools, implements, cables, wires, towers, casing, tubing and rods, surface leases, rights-of-way, easements and servitudes together with all additions, substitutions, replacements, accessions and attachments to any and all of the foregoing. Unless otherwise expressly provided herein, all references in this Agreement to "Oil and Gas Properties" refer to Oil and Gas Properties owned by the Borrower and/or its Restricted Subsidiaries, as the context requires.

"<u>Ongoing Hedges</u>" has the meaning assigned to such term in <u>Section</u> <u>9.14(a)</u>.

"<u>OPA</u>" has the meaning set forth in the definition of "<u>Environmental Laws</u>".

"<u>Other Connection Taxes</u>" means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan, Letter of Credit or Loan Document).

"<u>Other Taxes</u>" means any and all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes arising from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, this Agreement and any other Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to <u>Section</u> <u>5.04(b)</u>).

"<u>Outbound Investment Rules</u>" means the regulations administered and enforced, together with any related public guidance issued, by the United States Treasury Department under U.S. Executive Order 14105 of August 9, 2023, or any similar law or regulation; as of the Signing Date, and as codified at 31 C.F.R. § 850.101 et seq.

"<u>Participant</u>" has the meaning assigned to such term in <u>Section</u> <u>12.04(c)(i)</u>.

"<u>Participant Register</u>" has the meaning assigned to such term in <u>Section</u> <u>12.04(c)(i)</u>.

"<u>Patriot Act</u>" has the meaning assigned to such term in <u>Section</u> <u>12.16</u>.

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"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation, or any successor thereto.

"<u>Permitted Holder</u>" means officers and directors of the Borrower (or the Parent) who on the Effective Date are holders of Equity Interests of the Borrower (or the Parent) (and their Controlled Investment Affiliates and Immediate Family Members).

"<u>Permitted Refinancing Debt</u>" means, with respect to Debt of any Person (for purposes of this definition, the "<u>Refinanced Debt</u>"), any refinancing, renewal or replacement of such Refinanced Debt (for purposes of this definition, "<u>new Debt</u>"); *provided* that (a) the principal amount of such new Debt does not exceed the principal amount then outstanding of the Refinanced Debt *plus* an amount necessary to pay accrued and unpaid interest thereon *plus* reasonable fees and expenses incurred in connection with such refinancing, renewal or replacement of such Refinanced Debt; (b) such new Debt has a final maturity date equal to or later than the final maturity date of, and has a weighted average life to maturity equal to or greater than the weighted average life to maturity of, the Refinanced Debt; (c) (i) to the extent the Refinanced Debt is subordinated in right of payment to the Obligations, such new Debt is subordinated in right of payment to the Obligations on terms and conditions satisfactory to the Administrative Agent and (ii) such new Debt is incurred by the Person who is the obligor of, and does not have greater guarantees or security than, the Refinanced Debt; and (d) if the Refinanced Debt constitutes Second Lien Notes or Senior Notes, then the new Debt must be Senior Notes incurred or issued pursuant to and in accordance with the terms of <u>Section</u> <u>9.02(i)</u>.

"<u>Permitted Senior Notes</u>" means Senior Notes and Permitted Refinancing Debt, in each case, issued or incurred by the Borrower and permitted to remain outstanding pursuant to <u>Section</u> <u>9.02(i)</u>.

"<u>Permitted Tax Distributions</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) for any taxable period (or portion thereof) ending prior to Effective Date for which Borrower was wholly-owned by Parent for U.S. federal income tax purposes, distributions in an aggregate amount not to exceed the product of (x) the highest combined marginal federal, state and/or local statutory income Tax rate applicable to Parent (as estimated by the Borrower in good faith) and (y) the taxable income attributable to the Borrower and its Subsidiaries for such taxable period allocated to Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) for any taxable period (or portion thereof) ending after the Effective Date for which the Borrower is treated as a partnership (or disregarded as an entity separate from a partnership) that is not wholly-owned by a corporation for U.S. federal income tax purposes, distributions in an aggregate amount for such taxable period not to exceed the product of (1) the taxable income of the Borrower and its Subsidiaries for such taxable period (determined without regard to any adjustments pursuant to Section 734 or 743 of the Code) that is allocated to the direct and indirect equityholders of the Borrower and (2) the highest combined marginal U.S. federal, state and/or local income tax rate (taking into account the character of the taxable income in question (e.g., long term capital gain, qualified dividend income, etc.)) applicable to any direct or indirect equityholder of the Borrower (as estimated by the Borrower in good faith); provided that, to the extent a direct or indirect equityholder of the Borrower would be entitled to receive less than its pro rata share (in accordance with relative economic ownership of the Borrower) of the amounts

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of tax distributions otherwise distributable by the Borrower pursuant to this clause (B) on any given date, the amounts of Permitted Tax Distributions otherwise permitted pursuant to this clause (B) shall be increased to ensure that the direct and indirect equityholders of the Borrower shall receive an amount pursuant to this clause (B) so that all tax distributions by the Borrower are made to its direct and indirect equityholders pro rata in accordance with relative economic ownership; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) for any taxable year ending after the Effective Date for which (i) the Borrower is treated as a corporation that is a member of a consolidated, combined, unitary or similar income tax group for U.S. federal or applicable foreign, state and/or local income tax purposes of which Parent or any other direct or indirect parent company of the Borrower is the common parent (a "Tax Group") or (ii) the Borrower is a pass-through or disregarded entity for U.S. federal or applicable foreign, state or local income tax purposes that is wholly-owned (directly or indirectly) by a corporation for U.S. federal income tax purposes, distributions to fund the portion of the U.S. federal, foreign, state and/or local income taxes of such Tax Group or such corporation (as applicable) for such taxable period that is attributable to the taxable income of the Borrower and/or the applicable Subsidiaries.

"<u>Person</u>" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"<u>Plan</u>" means any employee pension benefit plan, as defined in Section 3(2) of ERISA, which (a) is currently or hereafter sponsored, maintained or contributed to by the Borrower, a Subsidiary or, solely with respect to a plan subject to Title IV of ERISA, an ERISA Affiliate or (b) if the Borrower or a Subsidiary has liability thereunder, was at any time during the current calendar year or the six calendar years preceding the Signing Date and the Effective Date, sponsored, maintained or contributed to by the Borrower or a Subsidiary or, to which Borrower or a Subsidiary has any liability, including any liability with respect to a plan subject to Title IV of ERISA on account of an ERISA Affiliate.

"<u>Prime Rate</u>" means the rate of interest per annum publicly announced from time to time by the Administrative Agent as its prime rate in effect at its principal office in New York, New York; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective. Such rate is set by the Administrative Agent as a general reference rate of interest, taking into account such factors as the Administrative Agent may deem appropriate; it being understood that many of the Administrative Agent's commercial or other loans are priced in relation to such rate, that it is not necessarily the lowest or best rate actually charged to any customer and that the Administrative Agent may make various commercial or other loans at rates of interest having no relationship to such rate.

"<u>Pro Forma Basis</u>" means, for purposes of calculating Consolidated Net Leverage Ratio pursuant to <u>Section</u> <u>9.02(i)</u>, <u>Section</u> <u>9.04(a)(iv)</u>, <u>Section</u> <u>9.04(b)(i)</u> and <u>Section</u> <u>9.05(n</u>), that solely with respect to any Material Acquisition, the Acquired EBITDAX with respect to such Material Acquisition (and any prior Material Acquisitions consummated after the most recently ended Rolling Period, and through but excluding the date on which compliance with the Consolidated Net Leverage Ratio for purposes <u>Section</u> <u>9.02(i)</u>, <u>Section</u> <u>9.04(a)(iv)</u>, <u>Section</u> <u>9.04(b)(i)</u> and <u>Section</u> <u>9.05(n</u>), as applicable, is being tested) shall be included in the calculation of EBITDAX.

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"<u>Property</u>" means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights.

"<u>Proposed Acquisition</u>" has the meaning assigned to such term in <u>Section</u> <u>9.14(a)(i)</u>.

"<u>Proposed Borrowing Base</u>" has the meaning assigned to such term in <u>Section</u> <u>2.07(c)(i)</u>.

"<u>Proposed Borrowing Base Notice</u>" has the meaning assigned to such term in <u>Section</u> <u>2.07(c)(ii)</u>.

"<u>Proved Developed Producing Reserves</u>" means "proved developed producing oil and gas reserves" as such term is defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"<u>Proved Oil and Gas Properties</u>" means Oil and Gas Properties to which Proved Reserves are attributed.

"<u>Proved Reserves</u>" means collectively, "proved oil and gas reserves," "proved developed producing oil and gas reserves," "proved developed non-producing oil and gas reserves" (consisting of proved developed shut-in oil and gas reserves and proved developed behind pipe oil and gas reserves), and "proved undeveloped oil and gas reserves," as such terms are defined in the Definitions for Oil as Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

"<u>PTE</u>" means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"<u>Public Company Compliance</u>" means compliance with the requirements of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith, the provisions of the Securities Act and the Exchange Act, and the rules of national securities exchange listed companies (in each case, as applicable to companies with equity or debt securities held by the public), including procuring directors' and officers' insurance, legal and other professional fees, and listing fees.

"<u>PV-9</u>" means, with respect to any Proved Reserves expected to be produced from any Borrowing Base Properties, the net present value, discounted at 9% per annum, of the future net revenues expected to accrue to the Borrower's and the Restricted Subsidiaries' collective interests in such reserves during the remaining expected economic lives of such reserves, calculated in accordance with the Bank Price Deck.

"<u>Qualified ECP Guarantor</u>" means, in respect of any Swap Agreement, each Credit Party that (a) has total assets exceeding $10,000,000 at the time any guaranty of obligations under such Swap Agreement or grant of the relevant security interest to secure such Swap Agreement becomes effective or (b) otherwise constitutes an "eligible contract participant" under the Commodity Exchange Act and can cause another Person to qualify as an "eligible contract participant" at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

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"<u>RCRA</u>" has the meaning set forth in the definition of "<u>Environmental Laws</u>".

"<u>Recipient</u>" means (a) the Administrative Agent, (b) any Lender or (c) the Issuing Bank, as applicable.

"<u>Redemption</u>" means with respect to any Debt, the repurchase, redemption, prepayment, repayment, defeasance or any other acquisition or retirement for value (or the segregation of funds with respect to any of the foregoing) of such Debt. "<u>Redeem</u>" has the correlative meaning thereto.

"<u>Redetermination Date</u>" means, with respect to any Scheduled Redetermination or any Interim Redetermination, the date that the redetermined Borrowing Base related thereto becomes effective pursuant to <u>Section</u> <u>2.07(d)</u>.

"<u>Reference Date</u>" means February 1, 2015.

"<u>Register</u>" has the meaning assigned to such term in <u>Section</u> <u>12.04(b)(iv)</u>.

"<u>Registration Statement</u>" means that certain Form S-1 Registration Statement in the form provided to the Administrative Agent on the Signing Date and to be initially filed with the U.S. Securities and Exchange Commission on or about May 11, 2026.

"<u>Regulation</u> <u>D</u>" means Regulation D of the Board, as the same may be amended, supplemented or replaced from time to time.

"<u>Related Parties</u>" means, with respect to any specified Person, such Person's Affiliates and the respective directors, officers, employees, agents and advisors (including attorneys, accountants and experts) of such Person and such Person's Affiliates.

"<u>Release</u>" means any depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying, discharging, injecting, leaching, dumping, or disposing.

"<u>Release Date</u>" means the date upon which (i) all Obligations (including, without limitation, all principal, LC Exposure, interest (including interest accruing during the pendency of an insolvency or liquidation proceeding, regardless of whether allowed or allowable in such insolvency or liquidation proceeding) and premium, if any, on all Loans, and all fees, costs, expenses and other amounts due and payable under this Agreement and the other Loan Documents) shall have been paid in full in cash (other than contingent indemnification obligations, obligations under Secured Swap Agreements and Secured Cash Management Obligations), (ii) no Letter of Credit is outstanding (other than Letters of Credit that have been cash collateralized or otherwise secured, in each case, to the satisfaction of the Issuing Bank), (iii) all of the Commitments have been terminated, (iv) each Secured Swap Agreement (including each ISDA Master Agreement) shall have been terminated in writing by the parties thereto and all amounts due and payable by the Borrower or any Restricted Subsidiary to any Secured Swap Party under each such Secured Swap Agreement shall have been paid in full in cash, or if any Secured Swap Agreement is outstanding, credit support arrangements acceptable in the sole discretion of the Secured Swap Party party thereto have been made to secure or provide credit support for such Secured Swap Obligations and (v) the payment in full in cash of all amounts owing under and the termination of all Secured Cash Management Obligations has occurred (other than contingent indemnification obligations and Secured Cash Management Obligations as to which arrangements satisfactory to the applicable Secured Cash Management Provider shall have been made).

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"<u>Relevant Governmental Body</u>" means the Board or the NYFRB, or a committee officially endorsed or convened by the Board or the NYFRB or any successor thereto.

"<u>Remedial Work</u>" has the meaning assigned to such term in <u>Section</u> <u>8.09(a)</u>.

"<u>Required Lenders</u>" means (a) if there are fewer than three Lenders at such time, all Non-Defaulting Lenders, and (b) if there are three or more Lenders at such time, (i) at any time while no Loans or LC Exposure is outstanding, Non-Defaulting Lenders having at least sixty-six and two-thirds percent (66<sup>2</sup>⁄<sub>3</sub>%) of the Aggregate Maximum Credit Amounts of all Non-Defaulting Lenders, and (ii) at any time while any Loans or LC Exposure is outstanding, Non-Defaulting Lenders holding at least sixty-six and two-thirds percent (66<sup>2</sup>⁄<sub>3</sub>%) of the outstanding aggregate principal amount of the Loans and participation interests in Letters of Credit of all Non-Defaulting Lenders (without regard to any sale by a Non-Defaulting Lender of a participation in any Loan under <u>Section</u> <u>12.04(c)</u>).

"<u>Required Mortgage Percentage</u>" means, (a) prior to the Discharge of Second Lien Obligations, 90% and (b) following the Discharge of Second Lien Obligations, 85%.

"<u>Required Title Percentage</u>" means, (a) prior to the Discharge of Second Lien Obligations, 90% and (b) following the Discharge of Second Lien Obligations, 85%.

"<u>Reserve Report</u>" means (a) a report, in form and substance reasonably satisfactory to the Administrative Agent, setting forth, as of each January 1st or July 1st (or such other date in the event of an Interim Redetermination) the oil and gas reserves attributable to the Oil and Gas Properties of the Borrower and the Restricted Subsidiaries, together with a projection of the rate of production and future net income, Taxes, operating expenses and capital expenditures with respect thereto as of such date, based upon the pricing assumptions consistent with the Administrative Agent's lending requirements at the time and (b) the Initial Reserve Report.

"<u>Reserve Report Certificate</u>" means a certificate of a Responsible Officer in substantially the form of <u>Exhibit</u> <u>N</u> certifying as to the matters in <u>Section</u> <u>8.11(c)</u>.

"<u>Resolution Authority</u>" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"<u>Responsible Officer</u>" means, as to any Person, the Chief Executive Officer, the President, any Financial Officer or any Vice President of such Person. Unless otherwise specified, all references to a Responsible Officer of the Borrower herein shall mean a Responsible Officer of the General Partner with respect to the General Partner's capacity as the general partner of the Borrower.

"<u>Restricted Payment</u>" means (a) any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in the Borrower or any of its Restricted Subsidiaries, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,

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acquisition, cancellation or termination of any such Equity Interests in the Borrower or any of its Restricted Subsidiaries or any option, warrant or other right to acquire any such Equity Interests in the Borrower or any of its Restricted Subsidiaries and (b) any payment of management fees, advisory fees or similar fees by the Borrower or any Restricted Subsidiary to any holders of their Equity Interests or any Affiliates thereof.

"<u>Restricted Subsidiary</u>" means any Subsidiary of the Borrower that is not an Unrestricted Subsidiary.

"<u>Revolving Credit Exposure</u>" means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender's Loans and its LC Exposure at such time.

"<u>Rolling Period</u>" means (a) for each of the first three (3) fiscal quarters ending after the Effective Date, the applicable period commencing on the first day of the first fiscal quarter ending after the Effective Date and ending on the last day of such applicable fiscal quarter, and (b) for the fourth (4th) fiscal quarter ending after the Effective Date, and for each fiscal quarter thereafter, any period of four (4) consecutive fiscal quarters ending on the last day of such applicable fiscal quarter; provided that when used in connection with Specified EBITDAX, "Rolling Period" shall refer to the four (4) consecutive fiscal quarters ending on the last day of the fiscal quarter prior to the Effective Date.

"<u>S&P</u>" means S&P Global Ratings, a division of S&P Global Inc., and any successor thereto that is a nationally recognized rating agency.

"<u>Sanctioned Country</u>" means, at any time, a country, region or territory which is itself the target of comprehensive Sanctions (which include, as of the Signing Date, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, the Crimea region of Ukraine, Cuba, Iran, and North Korea).

"<u>Sanctioned Person</u>" means, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC (including OFAC's Specially Designated Nationals and Blocked Persons List and OFAC's Consolidated Non-SDN List), the U.S. Department of State, the United Nations Security Council, the European Union, any European Union member state, or His Majesty's Treasury (b) any Person operating, organized or ordinarily resident in a Sanctioned Country, (c) a government or governmental authority of a Sanctioned Country or Venezuela, (d) any Person owned or controlled by as "owned" and "controlled" are defined or interpreted under the relevant Sanctions, or acting or purporting to act for or on behalf of, directly or indirectly, any such Person or Persons described in clauses (a), (b) and (c), including a Person that is deemed by OFAC to be a Sanctions target based on the ownership of such legal entity by Sanctioned Person(s), or (e) any Person otherwise a target of Sanctions, including vessels and aircraft, that are designated under any Sanctions program.

"<u>Sanctions</u>" means any and all economic or financial sanctions, sectoral sanctions, secondary sanctions, trade embargoes and restrictions imposed, administered or enforced from time to time by the U.S. government (including those administered by OFAC or the U.S. Department of State), the United Nations Security Council, the European Union, any European Union member state, and His Majesty's Treasury.

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"<u>Same Day Funds</u>" means with respect to disbursements and payments in Dollars, immediately available funds.

"<u>Scheduled Redetermination</u>" has the meaning assigned to such term in <u>Section</u> <u>2.07(b)</u>.

"<u>Scheduled Redetermination Date</u>" means the date on which a Borrowing Base that has been redetermined pursuant to a Scheduled Redetermination becomes effective as provided in <u>Section</u> <u>2.07(d)</u>.

"<u>SEC</u>" means the Securities and Exchange Commission or any successor Governmental Authority.

"<u>Second Lien Agent</u>" means U.S. Bank Trust Company, National Association, as agent and collateral agent for the holders of the Notes under the Second Lien Note Purchase Agreement, together with its successors and assigns in such capacity under the applicable Second Lien Note Documents.

"<u>Second Lien Intercreditor Agreement</u>" means that certain Intercreditor Agreement, dated as of the Effective Date, between the Administrative Agent, as administrative agent for the First Lien Secured Parties (as defined therein), and the Second Lien Agent, as administrative agent for the Second Lien Secured Parties (as defined therein), and acknowledged and agreed by the Borrower and the Guarantors, which shall be in form and substance satisfactory to the Administrative Agent, as the same may from time to time be amended, amended and restated, supplemented or otherwise modified in accordance with the terms thereof.

"<u>Second Lien Note Documents</u>" means the Second Lien Note Purchase Agreement and each other "Note Document" as defined in the Second Lien Note Purchase Agreement, and any other note documents entered into in connection therewith, including, without limitation, the Second Lien Intercreditor Agreement, any promissory notes, mortgages, deeds of trust, security agreements and instruments, guarantees, collateral or credit support documents, and any other agreements, instruments consents or certificates executed by the Parent, the General Partner, the Borrower, or any of the Restricted Subsidiaries or any Guarantor in connection with, or as security for the payment or performance of, any Second Lien Notes, which, in each case, shall be in form and substance satisfactory to the Administrative Agent, in each case, as the same may from time to time be amended, amended and restated, supplemented or otherwise modified to the extent permitted by <u>Section</u> <u>9.04(b)(ii)</u>.

"<u>Second Lien Note Purchase Agreement</u>" means that certain Note Purchase Agreement, dated as of September 17, 2024, by and among the Borrower, as issuer (as successor in interest to the Parent), the Second Lien Agent, and the other parties thereto from time to time, as amended, restated, amended and restated, supplemented or otherwise modified (a) prior to the Effective Date and (b) on the Effective Date pursuant to the Note Purchase Agreement Amendment, and as the same may from time to time be amended, amended and restated, supplemented or otherwise modified to the extent permitted by <u>Section</u> <u>9.04(b)(ii)</u>.

"<u>Second Lien Notes</u>" means the "Notes" as defined in the Second Lien Note Purchase Agreement, which Debt is intended to be secured on a junior basis by any Collateral securing the Obligations; provided that such Debt is permitted to be incurred and remain outstanding hereunder pursuant to <u>Section</u> <u>9.02(j)</u> and any Liens securing such Debt are permitted pursuant to <u>Section</u> <u>9.03(d)</u>, as the same may from time to time be amended, amended and restated, supplemented or otherwise modified to the extent permitted by <u>Section</u> <u>9.04(b)(ii)</u>.

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"<u>Second Lien Obligations</u>" means the Second Lien Notes and any other obligations of the Borrower or any of its Restricted Subsidiaries under the Second Lien Note Documents.

"<u>Secured Cash Management Agreement</u>" means a Cash Management Agreement between (a) the Borrower or any Restricted Subsidiary and (b) a Secured Cash Management Provider.

"<u>Secured Cash Management Obligations</u>" means any and all amounts and other obligations owing by the Borrower or any Restricted Subsidiary to any Secured Cash Management Provider under any Secured Cash Management Agreement.

"<u>Secured Cash Management Provider</u>" means a Lender, an Affiliate of a Lender, the Administrative Agent or an Affiliate of the Administrative Agent.

"<u>Secured Parties</u>" means, collectively, the Agents, the Lenders, the Issuing Bank, the Secured Cash Management Providers and Secured Swap Parties, and "<u>Secured Party</u>" means any of them individually.

"<u>Secured Swap Agreement</u>" means (a) any Swap Agreement between the Borrower or any Restricted Subsidiary and any Person that is entered into prior to the time, or during the time, that such Person was, a Lender or an Affiliate of a Lender (including any such Swap Agreement in existence prior to the Signing Date and the Effective Date), even if such Person subsequently ceases to be a Lender (or an Affiliate of a Lender) for any reason (any such Person, a "<u>Secured Swap Party</u>"); *provided* that, for the avoidance of doubt, the term "Secured Swap Agreement" shall not include any Swap Agreement or transactions under any Swap Agreement entered into after the time that such Secured Swap Party ceases to be a Lender or an Affiliate of a Lender; and (b) the Citadel Permitted Existing Trades.

"<u>Secured Swap Obligations</u>" means all amounts and other obligations owing to any Secured Swap Party under any Secured Swap Agreement (other than Excluded Swap Obligations) including the Citadel Permitted Existing Trades.

"<u>Secured Swap Party</u>" has the meaning assigned to such term in the definition of Secured Swap Agreement; *provided* that, solely with respect to the Citadel Permitted Existing Trades, "Secured Swap Party" means Citadel.

"<u>Securities Account</u>" shall have the meaning set forth in Article 8 of the UCC.

"<u>Security Instruments</u>" means the Guarantee and Collateral Agreement, the Mortgages, the Control Agreements, the Second Lien Intercreditor Agreement, and any and all other agreements, instruments, consents or certificates now or hereafter executed and delivered by the Borrower or any other Person (other than Swap Agreements with the Lenders or any Affiliate of a Lender or participation or similar agreements between any Lender and any other lender or creditor with respect to any Obligations pursuant to this Agreement) in connection with, or as security for the payment or performance of the Obligations, the Notes, this Agreement, or reimbursement obligations under the Letters of Credit, as such agreements may be amended, modified, supplemented or restated from time to time.

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"<u>Senior Note Documents</u>" means any indenture or other loan agreement governing any Senior Notes or any Permitted Refinancing Debt, all guarantees thereof and all other agreements, documents, instruments and notes executed and delivered by the Parent, the General Partner, the Borrower or any Restricted Subsidiary or any Guarantor in connection with, or pursuant to, the incurrence of any such Debt, as the same may be amended, modified or supplemented to the extent permitted by <u>Section</u> <u>9.04(b)(ii)</u>.

"<u>Senior Notes</u>" has the meaning assigned to such term in <u>Section</u> <u>9.02(i)</u>.

"<u>Series B Preferred Shares</u>" means the 50,000 shares of preferred stock designated as "Series B Preferred Stock" pursuant to Section 1 of the Certificate of Designations of Series B Preferred Stock of the Parent, dated as of February 1, 2024, as the same may from time to time be amended or modified to the extent permitted by <u>Section</u> <u>9.17</u>.

"<u>Series D Preferred Shares</u>" means the 37,780 shares of preferred stock designated as "Series D Preferred Stock" pursuant to Section 1 of the Certificate of Designations of Series D Preferred Stock of the Parent, dated as of March 30, 2026, as the same may from time to time be amended or modified to the extent permitted by <u>Section</u> <u>9.17</u>.

"<u>Signing Date</u>" means the date on which the conditions specified in <u>Section</u> <u>6.01</u> are satisfied (or waived in accordance with <u>Section</u> <u>12.02</u>).

"<u>SOFR</u>" means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

"<u>SOFR Administrator</u>" means the NYFRB (or a successor administrator of the secured overnight financing rate).

"<u>SOFR Loan</u>" means any Loan bearing interest at a rate based on Term SOFR as provided in <u>Section</u> <u>3.02(b)</u> (but excluding for the avoidance of doubt any ABR Loan bearing interest based on Term SOFR pursuant to clause (c) of the definition of Alternate Base Rate).

"<u>Sold Entity or Business</u>" has the meaning set forth in the definition of the term "EBITDAX".

"<u>Solvent</u>" means, with respect to any Person(s) as of any date, that (a) the aggregate value of the assets of such Person(s) (after giving effect to amounts that could reasonably be expected to be received by reason of indemnity, offset, insurance or any similar arrangement) (both at fair value and present fair saleable value) is, on the date of determination, greater than the total amount of liabilities (including contingent and unliquidated liabilities) of such Person(s) as of such date, (b) as of such date, such Person(s) is able to pay all liabilities (after taking into account the timing and amounts of cash it reasonably expects could be received and the amounts that it reasonably expects could be payable on or in respect of its liabilities, and giving effect to amounts that could reasonably be expected to be received by reason of indemnity, offset, insurance or any similar arrangement) of such Person(s) as such liabilities mature, and (c) as of such date, such Person(s)

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does not have unreasonably small capital given the nature of its business. In computing the amount of contingent or unliquidated liabilities at any time, such liabilities shall be computed at the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

"<u>Specified EBITDAX</u>" means (prior to giving effect to any Pro Forma Basis adjustments) (a) prior to the date when the financial statements for the fiscal quarter ended March 31, 2026 are delivered, $82,800,000 and (b) thereafter until the first delivery of financial statements pursuant to Section 8.01(b), Specified EBITDAX shall be calculated by multiplying EBITDAX for the fiscal quarter ended March 31, 2026 times four. 

"<u>Specified Equity Contribution</u>" means, an amount equal to, without duplication, the amount of any capital contributions made in cash to, or any cash proceeds of an issuance of Equity Interests of the Borrower (other than Disqualified Capital Stock) received by, the Borrower during the applicable Cure Period that are made for the purpose of exercising the equity cure rights set forth in <u>Section</u> <u>9.01(c)</u>.

"<u>Subsidiary</u>" means, with respect to any Person (the "<u>parent</u>") at any date, any other Person the accounts of which would be consolidated with those of the parent in the parent's consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other Person (a) of which Equity Interests representing more than 50% of the equity or more than 50% of the ordinary voting power (irrespective of whether or not at the time Equity Interests of any other class or classes of such Person shall have or might have voting power by reason of the happening of any contingency) or, in the case of a partnership, any general partnership interests are, as of such date, owned, controlled or held, or (b) the management decisions of which, as of such date, are otherwise controlled, in each case, directly, indirectly through one or more intermediaries, or both, by the parent. Unless otherwise specified, each reference to "Subsidiary" shall mean a Subsidiary of the Borrower.

"<u>Subsidiary Guarantor</u>" means any Restricted Subsidiary of the Borrower that is a Guarantor.

"<u>Supermajority Lenders</u>" means (a) if there are fewer than three Lenders at such time, all Non-Defaulting Lenders, and (b) if there are three or more Lenders at such time, (i) at any time while no Loans or LC Exposure is outstanding, Non-Defaulting Lenders having more than eighty-five percent (85%) of the Aggregate Maximum Credit Amounts of all Non-Defaulting Lenders and (ii) at any time while any Loans or LC Exposure is outstanding, Non-Defaulting Lenders holding more than eighty-five percent (85%) of the outstanding aggregate principal amount of the Loans and participation interests in Letters of Credit of all Non-Defaulting Lenders (without regard to any sale by a Non-Defaulting Lender of a participation in any Loan under <u>Section</u> <u>12.04(c)</u>).

"<u>Swap Agreement</u>" means any agreement with respect to any swap, forward, collar, future or derivative transaction or option or similar agreement, whether exchange traded, "over-the-counter" or otherwise (for the avoidance of doubt, including on a prepaid basis), involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions (including any

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agreement, contract or transaction that constitutes a "swap" within the meaning of section 1a(47) of the Commodity Exchange Act); *provided* that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or its Subsidiaries shall be a Swap Agreement.

"<u>Swap Agreement Certificate</u>" has the meaning assigned to such term in <u>Section</u> <u>8.01(e)</u>.

"<u>Swap PV</u>" means, with respect to any Swap Agreement in respect of commodities, the present value, discounted at 9% per annum, of the future receipts expected to be paid to the Borrower or its Restricted Subsidiaries under such Swap Agreement based on the Bank Price Deck; *provided*, that the "Swap PV" shall never be less than $0.00.

"<u>Swap Termination Value</u>" means, in respect of any one or more Swap Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Agreements, (a) for any date on or after the date such Swap Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s) and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Agreements, as determined by the counterparties to such Swap Agreements.

"<u>Synthetic Leases</u>" means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, treated as operating leases on the financial statements of the Person liable (whether contingently or otherwise) for the payment of rent thereunder and which were properly treated as indebtedness for borrowed money for purposes of United States federal income taxes, if the lessee in respect thereof is obligated to either purchase for an amount in excess of, or pay upon early termination an amount in excess of, 80% of the residual value of the Property subject to such operating lease upon expiration or early termination of such lease.

"<u>Tax</u>" or "<u>Taxes</u>" means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"<u>Term SOFR</u>" means,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any calculation with respect to a SOFR Loan, the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Period on the day (such day, the "<u>Periodic Term SOFR Determination Day</u>") that is two (2) U.S. Government Securities Business Days prior to the first day of such Interest Period, as such rate is published by the Term SOFR Administrator; *provided*, *however*, that if as of 5:00 p.m. (Eastern time) on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any calculation with respect to an ABR Loan on any day, the Term SOFR Reference Rate for a tenor of one month on the day (such day, the "<u>Alternate Base Rate Term SOFR Determination Day</u>") that is two (2) U.S. Government Securities Business Days prior to such day, as such rate is published by the Term SOFR Administrator; *provided*, *however*, that if as of 5:00 p.m. (Eastern time) on any Alternate Base Rate Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Alternate Base Rate Term SOFR Determination Day;

*provided*, *further*, that if Term SOFR determined as provided above (including pursuant to the proviso under <u>clause (a)</u> or <u>clause (b)</u> above) shall be less than the Floor, then Term SOFR shall be deemed to be the Floor.

"<u>Term SOFR Administrator</u>" means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion).

"<u>Term SOFR Reference Rate</u>" means the forward-looking term rate based on SOFR.

"<u>Termination Date</u>" means the earlier of the Maturity Date and the date of termination of the Commitments.

"<u>Threshold Amount</u>" means, at any time, the greater of (A) $10,000,000 and (B) 5% of the Borrowing Base then in effect.

"<u>Total Debt</u>" means, as of any date of determination, the sum of (without duplication) the aggregate principal amount of Debt of the Borrower and its Consolidated Restricted Subsidiaries outstanding on such date, but consisting only of Debt (i) of the type described in clauses (a) (including the Loans), (b) (but only to the extent such letters of credit, surety or other bonds and similar agreements have been drawn and have not been reimbursed within two (2) Business Days after the date of such drawing), (c), (d), (e) and (j) of the definition of "Debt"; (ii) of the type described in clause (f) of the definition of "Debt" to the extent such Liens secure Debt of the type described in clauses (a), (b), (d), (e) and (j) of the definition of "Debt"; and (iii) of the type described in clause (g) of the definition of "Debt" to the extent such guarantee is of Debt of the type described in clauses (a), (b), (d), (e) and (j) of the definition of "Debt".

"<u>Total Net Debt</u>" means, on any date of determination, (a) Total Debt <u>minus</u> (b) the positive difference (if any) of (i) the aggregate amount of Unrestricted Cash not to exceed the lesser of (A) 10% of the Borrowing Base in effect on such date and (B) $25,000,000 <u>minus</u> (ii) the amount of any Borrowing Base Deficiency existing as of such date of determination.

"<u>Total Revolving Credit Exposures</u>" means, at any time, the amount of the Revolving Credit Exposures of all of the Lenders.

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"<u>Transaction Expenses</u>" means any out-of-pocket fees or expenses incurred or paid by the Borrower or any of its Restricted Subsidiaries in connection with the Transactions, this Agreement and the other Loan Documents.

"<u>Transactions</u>" means (a) with respect to the Borrower, the execution, delivery and performance by the Borrower of this Agreement and each other Loan Document to which it is a party, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of Credit hereunder, and the grant of Liens by the Borrower on its Properties (including Mortgaged Properties) pursuant to the Security Instruments, (b) with respect to each Guarantor, the execution, delivery and performance by such Guarantor of each Loan Document to which it is a party, the guaranteeing of the Obligations and the other obligations under the Guarantee and Collateral Agreement by such Guarantor and such Guarantor's grant of Liens on its Properties (including Mortgaged Properties) pursuant to the Security Instruments, (c) with respect to the Parent, the execution, delivery and performance by the Parent of each Loan Document to which it is a party, (d) with respect to the General Partner, the execution, delivery and performance by the General Partner of each Loan Document to which it is a party, (e) the execution, delivery and performance by the Borrower of the Second Lien Notes and by the Parent, the General Partner, the Borrower, and each Guarantor of each other Second Lien Note Document to which it is a party, the issuance of the Second Lien Notes thereunder, the use of proceeds thereof and the grant of second-priority Liens by the Parent, the General Partner, the Borrower, and the Guarantors pursuant to the Second Lien Note Documents, (f) the Effective Date Initial Public Offering and the use of proceeds thereof, (g) the Existing Notes Prepayment, and (h) the payment of Transaction Expenses.

"<u>Type</u>", when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Alternate Base Rate or Term SOFR.

"<u>U.S.</u> <u>Government Securities Business Day</u>" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities; *provided*, that for purposes of notice requirements in <u>Section</u> <u>2.03</u>, <u>Section</u> <u>2.04(b)</u> and <u>Section</u> <u>2.09(b)</u>, in each case, such day is also a Business Day.

"<u>U.S.</u> <u>Person</u>" means (a) for purposes of <u>Section</u> <u>7.26</u> and <u>Section</u> <u>9.18</u> of this Agreement, any United States citizen, lawful permanent resident, entity organized under the laws of the United States or any jurisdiction within the United States, including any foreign branch of any such entity, or any person in the United States, and (b) for all other purposes, any Person that is a "United States Person" as defined in Section 7701(a)(30) of the Code.

"<u>U.S.</u> <u>Tax Compliance Certificate</u>" has the meaning assigned to such term in <u>Section</u> <u>5.03(f)(ii)(B)(3)</u>.

"<u>UK Financial Institution</u>" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

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"<u>UK Resolution Authority</u>" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"<u>Unadjusted Benchmark Replacement</u>" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"<u>Unrestricted Cash</u>" means cash or Cash Equivalents of the Borrower or any of its Restricted Subsidiaries that would not appear as "restricted" on a consolidated balance sheet of the Borrower or any of its Restricted Subsidiaries; *provided* that cash or Cash Equivalents that would appear as "restricted" on a consolidated balance sheet of the Borrower or any of its Restricted Subsidiaries solely because such cash or Cash Equivalents are subject to a Control Agreement shall constitute Unrestricted Cash hereunder.

"<u>Unrestricted Subsidiary</u>" means any Subsidiary of the Borrower designated as such on <u>Schedule</u> <u>7.13</u> or which the Borrower has designated in writing to the Administrative Agent to be an Unrestricted Subsidiary pursuant to <u>Section</u> <u>9.15</u>.

"<u>Unused Availability</u>" means at any time an amount equal to (a) the Loan Limit at such time, *<u>minus</u>* (b) the Total Revolving Credit Exposure of all Lenders at such time.

"<u>Utilization Percentage</u>" means, as of any day, the fraction expressed as a percentage, the numerator of which is the Total Revolving Credit Exposures on such day, and the denominator of which is the Loan Limit in effect on such day.

"<u>WhiteHawk Minerals</u>" means WhiteHawk Minerals LLC, a Delaware limited liability company.

"<u>Wholly-Owned Subsidiary</u>" means any Restricted Subsidiary of which all of the outstanding Equity Interests (other than any directors' qualifying shares mandated by applicable law), on a fully-diluted basis, are owned by the Borrower or one or more of the Wholly-Owned Subsidiaries or are owned by the Borrower and one or more of the Wholly-Owned Subsidiaries.

"<u>Withholding Agent</u>" means any Credit Party or the Administrative Agent.

"<u>Write-Down and Conversion Powers</u>" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

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**Section 1.03 <u>Types of Loans and Borrowings</u>**. For purposes of this Agreement, Loans and Borrowings, respectively, may be classified and referred to by Type (*e.g.*, a "SOFR Loan" or a "SOFR Borrowing").

**Section 1.04 <u>Terms Generally; Rules of Construction</u>**. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" as used in this Agreement shall be deemed to be followed by the phrase "without limitation". The word "will" as used in this Agreement shall be construed to have the same meaning and effect as the word "shall". Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented, restated or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth in the Loan Documents), (b) any reference herein to any law shall be construed as referring to such law as amended, modified, codified or reenacted, in whole or in part, and in effect from time to time, (c) any reference herein to any Person shall be construed to include such Person's successors and assigns (subject to the restrictions contained in the Loan Documents), (d) the words "herein", "hereof" and "hereunder", and words of similar import as used in this Agreement, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e) with respect to the determination of any time period, the word "from" as used in this Agreement means "from and including" and the word "to" means "to and including," and (f) any reference herein to Articles, Sections, Annexes, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Annexes, Exhibits and Schedules to, this Agreement. No provision of this Agreement or any other Loan Document shall be interpreted or construed against any Person solely because such Person or its legal representative drafted such provision.

**Section 1.05 <u>Accounting Terms and Determinations; GAAP</u>**. Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all determinations with respect to accounting matters hereunder shall be made, and all financial statements and certificates and reports as to financial matters required to be furnished to the Administrative Agent or the Lenders hereunder shall be prepared, in accordance with GAAP, applied on a consistent basis, except for changes in which Borrower's independent certified public accountants concur and which are disclosed to Administrative Agent on the next date on which financial statements are required to be delivered to the Lenders pursuant to <u>Section</u> <u>8.01(a)</u>; *provided* that, unless the Borrower and the Majority Lenders shall otherwise agree in writing, no such change shall modify or affect the manner in which compliance with the covenants contained herein is computed such that all such computations shall be conducted utilizing financial information presented consistently with prior periods. Notwithstanding anything herein to the contrary, for the purposes of calculating any of the ratios tested under <u>Section</u> <u>9.01</u>, and the components of each of such ratios, all Unrestricted Subsidiaries, and their Subsidiaries (including their assets, liabilities, income, losses, cash flows, and the elements thereof) shall be excluded, except for any cash dividends or distributions actually paid in cash by any Unrestricted Subsidiary or any of its Subsidiaries to the Borrower or any Restricted Subsidiary, which shall be deemed to be income to the Borrower or such Restricted Subsidiary when actually received by it.

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**Section 1.06 <u>Rates</u>**. The Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, (a) the continuation of, administration of, submission of, calculation of or any other matter related to the Term SOFR Reference Rate or Term SOFR, or any component definition thereof or rates referred to in the definition thereof, or with respect to any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement), as it may or may not be adjusted pursuant to <u>Section</u> <u>3.03(c)</u>, will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, the Term SOFR Reference Rate, Term SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. The Administrative Agent and its Affiliates or other related entities may engage in transactions that affect the calculation of the Term SOFR Reference Rate, Term SOFR, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto and such transactions may be adverse to the Borrower. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain the Term SOFR Reference Rate or Term SOFR, or any other Benchmark, any component definition thereof or rates referred to in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

**Section 1.07 <u>Divisions</u>**. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.

**ARTICLE II** 

**THE CREDITS** 

**Section 2.01 <u>Commitments</u>**. Subject to the terms and conditions set forth herein, each Lender severally agrees to make Loans in dollars to the Borrower during the Availability Period in an aggregate principal amount that will not result in (a) such Lender's Revolving Credit Exposure exceeding such Lender's Commitment or (b) the Total Revolving Credit Exposures exceeding the Loan Limit then in effect. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, repay and reborrow the Loans.

**Section 2.02 <u>Loans and Borrowings</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Borrowings; Several Obligations</u>. Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance with their respective Commitments. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; *provided* that the Commitments are several and no Lender shall be responsible for any other Lender's failure to make Loans as required.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Types of Loans</u>. Subject to <u>Section 3.03</u>, each Borrowing shall be comprised entirely of ABR Loans or SOFR Loans as the Borrower may request in accordance herewith. Each Lender at its option may make any SOFR Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; *provided* that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Minimum Amounts; Limitation on Number of Borrowings</u>. At the commencement of each Interest Period for any SOFR Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less than $500,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less than $500,000; *provided* that an ABR Borrowing may be in an aggregate amount that is equal to the entire Unused Availability or that is required to finance the reimbursement of an LC Disbursement as contemplated by <u>Section</u> <u>2.08(e)</u>. Borrowings of more than one Type may be outstanding at the same time, *provided* that there shall not at any time be more than a total of seven (7) SOFR Borrowings outstanding. Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any SOFR Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notes</u>. If requested by a Lender, the Loans made by each Lender shall be evidenced by a single promissory note of the Borrower in substantially the form of <u>Exhibit</u> <u>A</u>, dated, in the case of (i) any Lender party hereto as of the Effective Date, as of the Effective Date, (ii) any Lender that becomes a party hereto pursuant to an Assignment and Assumption or amendment or other modification to this Agreement, as of the effective date of the Assignment and Assumption, amendment or other modification, or (iii) any Additional Lender that becomes a party hereto in connection with an increase in the Aggregate Elected Commitment Amounts pursuant to <u>Section</u> <u>2.06(c)</u>, as of the effective date of such increase, as applicable, payable to such Lender or its registered assigns in a principal amount equal to its Maximum Credit Amount as in effect on such date, and otherwise duly completed. In the event that any Lender's Maximum Credit Amount increases or decreases for any reason, the Borrower shall, upon request by a Lender then holding a Note, deliver or cause to be delivered, to the extent such Lender is then holding a Note, on the effective date of such increase or decrease and upon the agreement of such Lender to promptly return or destroy its original Note, a new Note payable to such Lender or its registered assigns in a principal amount equal to its Maximum Credit Amount after giving effect to such increase or decrease, and otherwise duly completed. The date, amount, Type, interest rate and, if applicable, Interest Period of each Loan made by each Lender, and all payments made on account of the principal thereof, shall be recorded by such Lender on its books or its Note(s). Failure to make any such recordation shall not affect any Lender's or the Borrower's rights or obligations in respect of such Loans or affect the validity of such transfer by any Lender of its Note(s).

**Section 2.03 <u>Requests for Borrowings</u>**. To request a Borrowing, the Borrower shall notify the Administrative Agent of such request by submitting a Borrowing Request in writing (a) in the case of a SOFR Borrowing, not later than 12:00 noon, Houston, Texas time, three

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U.S. Government Securities Business Days before the date of the proposed Borrowing (or in the case of any Borrowing on the Effective Date, no later than 12:00 noon, Houston, Texas time on the Business Day immediately preceding the Effective Date) or (b) in the case of an ABR Borrowing, not later than 12:00 noon, Houston, Texas time, on the date of the proposed Borrowing; *provided* that no such notice shall be required for any deemed request of an ABR Borrowing to finance the reimbursement of an LC Disbursement as provided in <u>Section</u> <u>2.08(e)</u>. Each such Borrowing Request shall be irrevocable and shall be signed by a Responsible Officer of the Borrower. Each such Borrowing Request shall specify the following information in compliance with <u>Section</u> <u>2.02</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate amount of the requested Borrowing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the date of such Borrowing, which shall be a Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) whether such Borrowing is to be an ABR Borrowing or a SOFR Borrowing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the case of a SOFR Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term "<u>Interest Period</u>";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the amount of the then effective Borrowing Base, the amount of the then effective Aggregate Elected Commitment Amounts, the current Total Revolving Credit Exposures (without regard to the requested Borrowing), and the Total Revolving Credit Exposures, on a pro forma basis (giving effect to the requested Borrowing);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Consolidated Cash Balance (without regard to the requested Borrowing) and the *pro forma* Consolidated Cash Balance (giving effect to the requested Borrowing and identifying in reasonable detail any amounts to be excluded from Consolidated Cash Balance pursuant to clauses (ii) and (iv) of the definition of Consolidated Cash Balance); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the location and number of the Borrower's account to which funds are to be disbursed, which shall comply with the requirements of <u>Section</u> <u>2.05</u>.

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested SOFR Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month's duration. Each Borrowing Request shall constitute a representation by the Borrower that (a) the amount of the requested Borrowing shall not cause the Total Revolving Credit Exposures to exceed the Loan Limit and (b) after giving *pro forma* effect to such requested Borrowing and the use of proceeds thereof, the Consolidated Cash Balance shall not exceed the Consolidated Cash Balance Threshold.

Promptly following receipt of a Borrowing Request in accordance with this <u>Section</u> <u>2.03</u>, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender's Loan to be made as part of the requested Borrowing.

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**Section 2.04 <u>Interest Elections</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conversion and Continuance</u>. Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a SOFR Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a SOFR Borrowing, may elect Interest Periods therefor, all as provided in this <u>Section</u> <u>2.04</u>. The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Interest Election Requests</u>. To make an election pursuant to this <u>Section</u> <u>2.04</u>, the Borrower shall notify the Administrative Agent of such election by submitting an Interest Election Request in writing by the time that a Borrowing Request would be required under <u>Section</u> <u>2.03</u> if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election. Each such Interest Election Request shall be irrevocable and shall be signed by a Responsible Officer of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Information in Interest Election Requests</u>. Each telephonic and written Interest Election Request shall specify the following information in compliance with <u>Section</u> <u>2.02</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to <u>Section</u> <u>2.04(c)(iii)</u> and (iv) shall be specified for each resulting Borrowing);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) whether the resulting Borrowing is to be an ABR Borrowing or a SOFR Borrowing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if the resulting Borrowing is a SOFR Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term "Interest Period".

If any such Interest Election Request requests a SOFR Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month's duration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notice to Lenders by the Administrative Agent</u>. Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lender's portion of each resulting Borrowing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Effect of Failure to Deliver Timely Interest Election Request and Events of Default on Interest Election</u>. If the Borrower fails to deliver a timely Interest Election Request with respect to a SOFR Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be

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continued as of the last day of the Interest Period applicable to such Borrowing as a SOFR Borrowing having an Interest Period with a tenor of the same length as such immediately preceding Interest Period applicable thereto and then ended. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing: (i) no outstanding Borrowing may be converted to or continued as a SOFR Borrowing (and any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a SOFR Borrowing shall be ineffective) and (ii) unless repaid, each SOFR Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.

**Section 2.05 <u>Funding of Borrowings</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Funding by Lenders</u>. Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 1:00 p.m., Houston, Texas time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders. The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower subject, from and after the Control Agreement Delivery Date, to a Control Agreement and designated by the Borrower in the applicable Borrowing Request; *provided* that ABR Loans made to finance the reimbursement of an LC Disbursement as provided in <u>Section</u> <u>2.08(e)</u> shall be remitted by the Administrative Agent to the Issuing Bank. Nothing herein shall be deemed to obligate any Lender to obtain the funds for its Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for its Loan in any particular place or manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Presumption of Funding by the Lenders</u>. Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with <u>Section</u> <u>2.05(a)</u> and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to ABR Loans. If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender's Loan included in such Borrowing.

**Section 2.06 <u>Termination and Reduction of Aggregate Maximum Credit Amounts; Increase, Reduction and Termination of Aggregate Elected Commitment Amounts</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Scheduled Termination of Commitments</u>. Unless previously terminated, the Commitments shall terminate on the Maturity Date. If the Aggregate Maximum Credit Amounts, the Aggregate Elected Commitment Amounts or the Borrowing Base is terminated or reduced to zero, then the Commitments shall terminate on the effective date of such termination or reduction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Optional Termination and Reduction of Aggregate Maximum Credit Amounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower may at any time terminate, or from time to time reduce, the Aggregate Maximum Credit Amounts; *provided* that (A) each reduction of the Aggregate Maximum Credit Amounts shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000, (B) the Borrower shall not terminate or reduce the Aggregate Maximum Credit Amounts if, (1) after giving effect to any concurrent prepayment of the Loans in accordance with <u>Section</u> <u>3.04(c)</u>, the Total Revolving Credit Exposures would exceed the Loan Limit or (2) the Aggregate Maximum Credit Amounts would be less than $10,000,000 (unless, with respect to this clause (2), the Aggregate Maximum Credit Amounts are reduced to $0.00), and (C) upon any reduction of the Aggregate Maximum Credit Amounts that would otherwise result in the Aggregate Maximum Credit Amounts being less than the Aggregate Elected Commitment Amounts, the Aggregate Elected Commitment Amounts shall be automatically reduced (ratably among the Lenders in accordance with each Lender's Applicable Percentage) so that they equal the Aggregate Maximum Credit Amounts as so reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Aggregate Maximum Credit Amounts under <u>Section</u> <u>2.06(b)(i)</u> at least three (3) Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this <u>Section</u> <u>2.06(b)(ii)</u> shall be irrevocable; *provided* that a notice of termination of the Aggregate Maximum Credit Amounts delivered by the Borrower may state that such notice is conditioned upon the occurrence of one or more specified events (including the effectiveness of other credit facilities), in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such specified event(s) do not occur. Any termination or reduction of the Aggregate Maximum Credit Amounts shall be permanent and may not be reinstated. Each reduction of the Aggregate Maximum Credit Amounts shall be made ratably among the Lenders in accordance with each Lender's Applicable Percentage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Optional Increases, Reductions and Terminations of Aggregate Elected Commitment Amounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the conditions set forth in <u>Section</u> <u>2.06(c)(ii)</u>, the Borrower may, from time to time, increase the Aggregate Elected Commitment Amounts then in effect by increasing the Elected Commitment of a Lender or by causing a Person that is reasonably acceptable to the Administrative Agent and the Issuing Bank that at such time is not a Lender to become a Lender (any such Person that is not at such time a Lender and becomes a Lender, an "<u>Additional Lender</u>"). Notwithstanding anything to the contrary contained in this Agreement, in no case shall an Additional Lender be the Borrower, an Affiliate of the Borrower or a natural person (or any holding company, investment vehicle, or trust owned and operated for the primary benefit of a natural person).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any increase in the Aggregate Elected Commitment Amounts shall be subject to the following additional conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such increase shall not be less than $5,000,000 (and shall be in increments of $1,000,000 above such minimum amount) unless the Administrative Agent otherwise consents, and no such increase shall be permitted if after giving effect thereto the Aggregate Elected Commitment Amounts exceed the lesser of the Aggregate Maximum Credit Amounts or the Borrowing Base then in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) no Default, Event of Default or Borrowing Base Deficiency shall have occurred and be continuing on the effective date of such increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) to the extent that there are any SOFR Borrowings outstanding, the effective date of such increase shall be, at the option of the Borrower, either (x) the last day of the Interest Period in respect of such SOFR Borrowings or (y) such earlier date selected by the Borrower *provided* that the Borrower shall pay compensation as required by <u>Section</u> <u>5.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) no Lender's Elected Commitment may be increased without the consent of such Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) if the Borrower elects to increase the Aggregate Elected Commitment Amounts by increasing the Elected Commitment of a Lender, the Borrower and such Lender shall execute and deliver to the Administrative Agent a certificate substantially in the form of <u>Exhibit</u> <u>I</u> (an "<u>Elected Commitment Increase Certificate</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) if the Borrower elects to increase the Aggregate Elected Commitment Amounts by causing an Additional Lender to become a party to this Agreement, then the Borrower and such Additional Lender shall execute and deliver to the Administrative Agent a certificate substantially in the form of <u>Exhibit</u> <u>J</u> (an "<u>Additional Lender Certificate</u>"), together with an Administrative Questionnaire and a processing and recordation fee of $3,500 (*provided* that the Administrative Agent may, in its discretion, elect to waive such processing and recordation fee in connection with any such increase), and the Borrower shall (1) if requested by the Additional Lender, deliver a Note payable to such Additional Lender (or its registered assigns) in a principal amount equal to its Maximum Credit Amount, and otherwise duly completed and (2) pay any applicable fees as may have been agreed to between the Borrower and the Additional Lender and, to the extent applicable, the Administrative Agent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) the Borrower shall deliver or cause to be delivered any customary legal opinions or other documents (including, without limitation, a resolution duly adopted by the board of directors (or equivalent governing body) of each Credit Party authorizing such increase in the Aggregate Elected Commitment Amounts) reasonably requested by Administrative Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Subject to acceptance and recording thereof pursuant to <u>Section</u> <u>2.06(c)(iv)</u>, from and after the effective date specified in the Elected Commitment Increase Certificate or the Additional Lender Certificate (or if any SOFR Borrowings are outstanding, then the last day of the Interest Period in respect of such SOFR Borrowings, unless the Borrower has paid any compensation required by <u>Section</u> <u>5.02</u>): (A) the amount of the Aggregate Elected Commitment Amounts shall be increased as set forth therein, (B) in the case of an Additional Lender Certificate, any Additional Lender party thereto shall become a party to this Agreement and have the rights and obligations of a Lender under this Agreement and the other Loan Documents and (C) the Lender or the Additional Lender, as applicable, shall purchase a pro rata portion of the outstanding Loans (and participation interests in Letters of Credit) of each of the other Lenders (and such Lenders hereby agree to sell and to take all such further action to effectuate such sale) such that each Lender (including any Additional Lender, if applicable) shall hold its Applicable Percentage of the outstanding Loans (and participation interests) after giving effect to the increase in the Aggregate Elected Commitment Amounts (and the resulting modifications of each Lender's Maximum Credit Amount pursuant to <u>Section</u> <u>2.06(c)(iv)</u> or <u>Section</u> <u>2.06(c)(v)</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Upon its receipt of a duly completed Elected Commitment Increase Certificate or an Additional Lender Certificate, executed by the Borrower and the Lender or by the Borrower and the Additional Lender party thereto, as applicable, the processing and recording fee referred to in <u>Section</u> <u>2.06(c)(ii)</u>, the Administrative Questionnaire referred to in <u>Section</u> <u>2.06(c)(ii)</u> and the break-funding payments from the Borrower, if any, required by <u>Section</u> <u>5.02</u>, if applicable, the Administrative Agent shall accept such Elected Commitment Increase Certificate or Additional Lender Certificate and record the information contained therein in the Register required to be maintained by the Administrative Agent pursuant to <u>Section</u> <u>12.04(b)(iv)</u>. No increase in the Aggregate Elected Commitment Amounts shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this <u>Section</u> <u>2.06(c)(iv)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Upon any increase in the Aggregate Elected Commitment Amounts pursuant to this <u>Section</u> <u>2.06(c)</u>, (A) each Lender's Maximum Credit Amount shall be automatically deemed amended to the extent necessary so that each such Lender's Applicable Percentage equals the percentage of the Aggregate Elected Commitment Amounts represented by such Lender's Elected Commitment, in each case after giving effect to such increase, and (B) <u>Annex I</u> to this Agreement shall be deemed amended to reflect the Elected Commitment of each Lender (including any Additional Lender) as thereby increased, any changes in the Lenders' Maximum Credit Amounts pursuant to the foregoing clause (A), and any resulting changes in the Lenders' Applicable Percentages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The Borrower may from time to time terminate or reduce the Aggregate Elected Commitment Amounts; *provided* that (A) each reduction of the Aggregate Elected Commitment Amounts shall be in an amount that is an integral multiple of $1,000,000 and not less than $1,000,000 and (B) the Borrower shall not reduce the Aggregate Elected Commitment Amounts if, after giving effect to any concurrent prepayment of the Loans in accordance with <u>Section</u> <u>3.04(c)</u>, the Total Revolving Credit Exposures would exceed the Aggregate Elected Commitment Amounts as reduced.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Aggregate Elected Commitment Amounts under <u>Section</u> <u>2.06(c)(vi)</u> at least three (3) Business Days prior to the effective date of such termination or reduction (or such lesser period as may be reasonably acceptable to the Administrative Agent), specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this <u>Section</u> <u>2.06(c)(vii)</u> shall be irrevocable; provided that such notice may state that it is conditioned upon the occurrence of one or more specified events (including the effectiveness of other credit facilities), in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such specified event(s) do not occur. Any termination or reduction of the Aggregate Elected Commitment Amounts shall be permanent and may not be reinstated, except pursuant to <u>Section</u> <u>2.06(c)(i)</u>. Each reduction of the Aggregate Elected Commitment Amounts shall be made ratably among the Lenders in accordance with each Lender's Applicable Percentage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Upon any redetermination or other adjustment in the Borrowing Base pursuant to this Agreement that would otherwise result in the Borrowing Base becoming less than the Aggregate Elected Commitment Amounts, the Aggregate Elected Commitment Amounts shall be automatically reduced (ratably among the Lenders in accordance with each Lender's Applicable Percentage) so that they equal such redetermined Borrowing Base (and <u>Annex I</u> shall be deemed amended to reflect such amendments to each Lender's Elected Commitment and the Aggregate Elected Commitment Amounts).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Contemporaneously with any increase in the Borrowing Base pursuant to this Agreement (or if any SOFR Borrowings are outstanding, then the last day of the Interest Period in respect of such SOFR Borrowings, unless the Borrower has paid any compensation required by <u>Section</u> <u>5.02</u>), if (A) the Borrower elects to increase the Aggregate Elected Commitment Amounts and (B) each Lender has consented to such increase in its Elected Commitment, then the Aggregate Elected Commitment Amounts shall be increased (ratably among the Lenders in accordance with each Lender's Applicable Percentage) by the amount requested by the Borrower (subject to the limitations set forth in <u>Section</u> <u>2.06(c)(ii)(A)</u>) without the requirement that any Lender deliver an Elected Commitment Increase Certificate, and <u>Annex I</u> shall be deemed amended to reflect such amendments to each Lender's Elected Commitment and the Aggregate Elected Commitment Amounts. The Administrative Agent shall record the information regarding such increases in the Register required to be maintained by the Administrative Agent pursuant to <u>Section</u> <u>12.04(b)(iv)</u>.

**Section 2.07 <u>Borrowing Base</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Effective Date Borrowing Base</u>. For the period from (and including) the Effective Date to (but excluding) the first Redetermination Date, the amount of the Borrowing Base shall be $150,000,000. Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments between the Effective Date and the first Scheduled Redetermination and in between subsequent Scheduled Redeterminations from time to time pursuant to <u>Section</u> <u>2.07(e)</u>, <u>Section</u> <u>2.07(f)</u> or <u>Section</u> <u>8.12(c)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Scheduled and Interim Redeterminations</u>. The Borrowing Base shall be redetermined semi-annually in accordance with this <u>Section</u> <u>2.07</u> (each, a "<u>Scheduled Redetermination</u>"), and, subject to <u>Section</u> <u>2.07(d)</u>, such redetermined Borrowing Base shall become effective and applicable to the Borrower, the Administrative Agent, the Issuing Bank and the Lenders semi-annually on April 15th and October 15th of each year (or, in each case, such date promptly thereafter as reasonably practicable) commencing October 15, 2026. In addition (i)(A) the Borrower may, by notifying the Administrative Agent thereof, and (B) the Administrative Agent may, following the first Scheduled Redetermination hereunder, at the direction of the Required Lenders, by notifying the Borrower thereof, each elect one time to cause the Borrowing Base to be redetermined between Scheduled Redeterminations and (ii) the Borrower may elect, by notifying the Administrative Agent of any acquisition or acquisitions (including in connection with the designation of an Unrestricted Subsidiary as a Restricted Subsidiary) of Oil and Gas Properties by the Borrower or any other Credit Party with a PV-9 in the aggregate of at least five percent (5%) of the then effective Borrowing Base, to cause the Borrowing Base to be redetermined between Scheduled Redeterminations. Each redetermination of the Borrowing Base pursuant to the immediately preceding sentence is referred to herein as an "<u>Interim Redetermination</u>" and shall be effectuated in accordance with this <u>Section</u> <u>2.07</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Scheduled and Interim Redetermination Procedure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Scheduled Redetermination and each Interim Redetermination shall be effectuated as follows: upon receipt by the Administrative Agent of (A) the Reserve Report and the Reserve Report Certificate, in the case of a Scheduled Redetermination, pursuant to <u>Section</u> <u>8.11(a)</u> and <u>(c)</u>, and, in the case of an Interim Redetermination, pursuant to <u>Section</u> <u>8.11(b)</u> and <u>(c)</u>, and (B) such other reports, data and supplemental information, including, without limitation, the information provided pursuant to <u>Section</u> <u>8.11(c)</u>, as may, from time to time, be reasonably requested by the Administrative Agent or the Majority Lenders (the Reserve Report, such Reserve Report Certificate and such other reports, data and supplemental information being the "<u>Engineering Reports</u>"), the Administrative Agent shall evaluate the information contained in the Engineering Reports and shall, in good faith and in its sole discretion, propose a new Borrowing Base (the "<u>Proposed Borrowing Base</u>") based upon such information and such other information (including, without limitation, the status of title information with respect to the Oil and Gas Properties as described in the Engineering Reports and the existence of any other Debt, the Credit Parties' other assets, liabilities, fixed charges, cash flow, business, properties, prospects, management and ownership, hedged and unhedged exposure to price, price and production scenarios, interest rate and operating cost changes) as the Administrative Agent deems appropriate in its sole discretion and consistent with its usual and customary oil and gas lending criteria as it exists at the particular time. In no event shall the Proposed Borrowing Base exceed the Aggregate Maximum Credit Amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Administrative Agent shall notify the Lenders of the Proposed Borrowing Base (the "<u>Proposed Borrowing Base Notice</u>") after the Administrative Agent has received complete Engineering Reports from the Borrower and has had a reasonable opportunity to determine the Proposed Borrowing Base in accordance with <u>Section</u> <u>2.07(c)(i)</u>; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any Proposed Borrowing Base that would increase the Borrowing Base then in effect must be approved by all of the Lenders as provided in this <u>Section</u> <u>2.07(c)(iii)</u>, and any Proposed Borrowing Base that would decrease or maintain the Borrowing Base then in effect must be approved or be deemed to have been approved by the Required Lenders as provided in this <u>Section</u> <u>2.07(c)(iii)</u> (in each case, in each Lender's sole discretion consistent with its usual and customary oil and gas lending criteria as they exist at the particular time). Upon receipt of the Proposed Borrowing Base Notice, each Lender shall have fifteen (15) days to agree with the Proposed Borrowing Base or disagree with the Proposed Borrowing Base by proposing an alternate Borrowing Base. If, in the case of any Proposed Borrowing Base that would decrease or maintain the Borrowing Base then in effect, at the end of such fifteen (15) days, any Lender has not communicated its approval or disapproval in writing to the Administrative Agent, such silence shall be deemed to be an approval of the Proposed Borrowing Base. If, in the case of any Proposed Borrowing Base that would increase the Borrowing Base then in effect, at the end of such fifteen (15) days, any Lender has not communicated its approval or disapproval in writing to the Administrative Agent, such silence shall be deemed to be a disapproval of the Proposed Borrowing Base. If, at the end of such fifteen (15) day period, all of the Lenders, in the case of a Proposed Borrowing Base that would increase the Borrowing Base then in effect, or the Required Lenders, in the case of a Proposed Borrowing Base that would decrease or maintain the Borrowing Base then in effect, have approved or, in the case of a decrease or reaffirmation, deemed to have approved, as aforesaid, then the Proposed Borrowing Base shall become the new Borrowing Base, effective on the date specified in <u>Section</u> <u>2.07(d)</u>. If, however, at the end of such 15-day period, all of the Lenders or the Required Lenders, as applicable, have not approved or, in the case of a decrease or reaffirmation, deemed to have approved, as aforesaid, then the Administrative Agent shall poll the Lenders to ascertain the highest Borrowing Base then acceptable to (A) in the case of a decrease or reaffirmation, a number of Lenders sufficient to constitute the Required Lenders and (B) in the case of an increase, all of the Lenders, and such amount shall become the new Borrowing Base, effective on the date specified in <u>Section</u> <u>2.07(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Effectiveness of a Redetermined Borrowing Base</u>. After a redetermined Borrowing Base is approved or is deemed to have been approved by all of the Lenders or the Required Lenders, as applicable, pursuant to <u>Section</u> <u>2.07(c)(iii)</u>, the Administrative Agent shall notify the Borrower and the Lenders of the amount of the redetermined Borrowing Base (the "<u>New Borrowing Base Notice</u>"), and such amount shall become the new Borrowing Base, effective and applicable to the Borrower, the Administrative Agent, the Issuing Bank and the Lenders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Scheduled Redetermination, (A) if the Administrative Agent shall have received the Engineering Reports required to be delivered by the Borrower pursuant to <u>Section</u> <u>8.11(a)</u> and <u>(c)</u> in a timely and complete manner, then on April 15th or October 15th (or, in each case, such date promptly thereafter as reasonably practicable), as applicable, following such notice, or (B) if the Administrative Agent shall not have received the Engineering Reports required to be delivered by the Borrower pursuant to <u>Section</u> <u>8.11(a)</u> and <u>(c)</u> in a timely and complete manner, then on the next Business Day succeeding delivery of such notice; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of an Interim Redetermination, on the next Business Day succeeding delivery of such notice.

Such amount shall then become the Borrowing Base until the next Scheduled Redetermination Date, the next Interim Redetermination Date or the next adjustment to the Borrowing Base under <u>Section</u> <u>2.07(e)</u>, <u>Section</u> <u>2.07(f)</u> or <u>Section</u> <u>8.12(c)</u>, whichever occurs first. Notwithstanding the foregoing, no Scheduled Redetermination or Interim Redetermination shall become effective until the New Borrowing Base Notice related thereto is received by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Reduction of Borrowing Base upon Sale of Properties or Termination of Swap Agreements</u>. In addition to the other redeterminations or adjustments of the Borrowing Base provided for herein, if at any time the sum of (a) the aggregate PV-9 (calculated using the Bank Price Deck in effect at the time of the most recent redetermination) of Borrowing Base Properties Disposed of (including, for the avoidance of doubt, as described in <u>Section</u> <u>9.15(b)</u>) and (b) the Swap PV (calculated using the Bank Price Deck in effect at the time of the most recent redetermination) of Swap Agreements in respect of commodities Liquidated (after giving effect to any other Swap Agreements executed by the Credit Parties contemporaneously with the termination or monetization of such Swap Agreements or subsequent to the most recent Redetermination Date), in each case pursuant to <u>Section</u> <u>9.09(d)</u>, in any period since the most recent Redetermination Date, exceeds five percent (5%) of the Borrowing Base then in effect, individually or in the aggregate, then, in each case, the Borrowing Base shall be automatically reduced by an amount equal to the Borrowing Base Value of such Properties Disposed of and Swap Agreements Liquidated, and, in each case, the Borrowing Base as so reduced shall become the new Borrowing Base immediately upon such Disposition (or, in the case of a Swap Agreement, Liquidation), effective and applicable to the Borrower, the Administrative Agent, the Issuing Bank and the Lenders until the next redetermination or other adjustment of the Borrowing Base pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Automatic Reduction of Borrowing Base upon Issuance of Permitted Senior Notes</u>. In addition to the other redeterminations of and adjustments to the Borrowing Base provided for herein, and notwithstanding anything to the contrary set forth herein, upon the issuance or incurrence of any Permitted Senior Notes, the Borrowing Base shall be automatically reduced by an amount equal to 25% of the aggregate stated principal amount of such Permitted Senior Notes (without regard to any original issue discount) incurred or issued at such time. Such decrease in the Borrowing Base shall occur automatically upon the incurrence of such Permitted Senior Notes on the date of incurrence, without any vote of the Lenders or action by the Administrative Agent. For the avoidance of doubt, if any such Permitted Senior Notes are being incurred in order to refinance outstanding Permitted Senior Notes or Second Lien Notes, then the foregoing automatic reduction shall only apply to the portion of the newly issued or incurred Permitted Senior Notes that is in excess of the principal amount of the Permitted Senior Notes or Second Lien Notes so refinanced. The Borrowing Base so reduced shall become the new Borrowing Base immediately upon the date of such issuance or incurrence, effective and applicable to the Borrower, the Administrative Agent, the Issuing Bank and the Lenders on such date until the next redetermination or other adjustment of the Borrowing Base pursuant to this Agreement. Upon any such reduction in the Borrowing Base, the Administrative Agent shall promptly deliver a New Borrowing Base Notice to the Borrower and the Lenders.

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**Section 2.08 <u>Letters of Credit</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Subject to the terms and conditions set forth herein, the Borrower may request the issuance of dollar denominated Letters of Credit for its own account or for the account of any of its Restricted Subsidiaries, in a form reasonably acceptable to the Administrative Agent and the Issuing Bank, at any time and from time to time during the period from and including the Effective Date through and including the date which is ten (10) Business Days prior to the end of the Availability Period in an aggregate amount not to exceed the LC Commitment; *provided* that the Borrower may not request the issuance, amendment, renewal or extension of Letters of Credit hereunder if a Borrowing Base Deficiency exists at such time or would exist as a result thereof. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control. Notwithstanding anything herein to the contrary, the Issuing Bank shall have no obligation hereunder to issue, and (in the case of clause (i)) shall not issue, any Letter of Credit (i) the proceeds of which would be made available to any Person (A) to fund any activity or business of or with any Sanctioned Person, or in any Sanctioned Country, in violation of Sanctions or (B) in any manner that would result in a violation of any Sanctions by any party to this Agreement (<u>provided</u> that, for the avoidance of doubt, this clause (i) shall not operate to invalidate any Letter of Credit or impose any liability on the applicable Issuing Bank for issuing same if the proceeds of such Letter of Credit are ultimately used in contravention of the representations and warranties made by the Borrower to such Issuing Bank at the time of the issuance, amendment, renewal or extension of such Letter of Credit), (ii) if any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the Issuing Bank from issuing such Letter of Credit, or any Governmental Requirement relating to the Issuing Bank or any Governmental Authority with jurisdiction over the Issuing Bank shall prohibit, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the Issuing Bank with respect to such Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Bank is not otherwise compensated hereunder) not in effect on the Effective Date, or shall impose upon the Issuing Bank any unreimbursed loss, cost or expense which was not applicable on the Effective Date and which the Issuing Bank in good faith deems material to it or (iii) if the issuance of such Letter of Credit would violate one or more policies of the Issuing Bank applicable to letters of credit generally; <u>provided</u> that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements or directives thereunder or issued in connection therewith or in the implementation thereof, and (y) all requests, rules, guidelines, requirements or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed not to be in effect on the Effective Date for purposes of <u>clause (ii)</u> above, regardless of the date enacted, adopted, issued or implemented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions</u>. To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or facsimile (or transmit by electronic communication, if arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the Administrative Agent (not less than five (5) Business Days (or such shorter period agreed to by the Issuing Bank) in advance of the requested date of issuance, amendment, renewal or extension) a notice:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) requesting the issuance of a Letter of Credit or identifying the Letter of Credit to be amended, renewed or extended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) specifying the date on which such Letter of Credit is to expire (which shall comply with <u>Section</u> <u>2.08(c)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) specifying the amount of such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) specifying the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) specifying the amount of the then effective Borrowing Base and the then effective Aggregate Elected Commitment Amounts and whether a Borrowing Base Deficiency exists at such time, the current Total Revolving Credit Exposures (without regard to the requested Letter of Credit or the requested amendment, renewal or extension of an outstanding Letter of Credit), and the Total Revolving Credit Exposures, on a pro forma basis (giving effect to the requested Letter of Credit or the requested amendment, renewal or extension of an outstanding Letter of Credit).

Each notice shall constitute a representation and warranty by the Borrower that after giving effect to the requested issuance, amendment, renewal or extension, as applicable, (x) the LC Exposure shall not exceed the LC Commitment and (y) the Total Revolving Credit Exposures shall not exceed the then effective Loan Limit.

The Issuing Bank shall not issue any Letters of Credit unless the Issuing Bank shall have received notice from the Administrative Agent that the conditions to such issuance have been met, which notice shall be deemed given (1) if the Issuing Bank has not received notice from the Administrative Agent that the conditions to such issuance have been met within two Business Days after the date of the applicable request or (2) if the aggregate stated amount of Letters of Credit issued by the Issuing Bank then outstanding does not exceed the amount theretofore agreed to by the Borrower, the Administrative Agent and the Issuing Bank, and the Administrative Agent has not otherwise notified the Issuing Bank that it may no longer rely on clause (1).

If requested by the Issuing Bank, the Borrower also shall submit a letter of credit application on the Issuing Bank's standard form in connection with any request for a Letter of Credit; *provided* that, in the event of any conflict between such application or any Letter of Credit Agreement and the terms of this Agreement, the terms of this Agreement shall control.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Expiration Date</u>. Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date that is one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (ii) the date that is five Business Days prior to the Maturity Date. If the Borrower so requests in any applicable notice given pursuant to <u>Section</u> <u>2.08(b)</u> and the Issuing Bank agrees to do so, the Issuing Bank may issue a Letter of Credit that has automatic renewal provisions; *provided*, *however*, that any Letter of Credit that has automatic renewal provisions must permit the Issuing Bank to prevent any such renewal at least once in each twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day in each such twelve-month period to be agreed upon by the Borrower and the Issuing Bank at the time such Letter of Credit is issued and any such Letter of Credit may not have an expiration date later than the date that is five (5) Business Days prior to the Maturity Date (except to the extent Cash Collateralized or backstopped at least five (5) Business Days prior to the Maturity Date pursuant to arrangements acceptable to the Issuing Bank). Once any such Letter of Credit that has automatic renewal provisions has been issued, the Lenders shall be deemed to have authorized (but may not require) the Issuing Bank to permit the renewal of such Letter of Credit at any time to an expiry date not later than thirty (30) days prior to the Maturity Date; *provided*, *further*, that the Issuing Bank shall not permit any such renewal if (A) the Issuing Bank has determined that it would have no obligation at such time to issue such Letter of Credit in its renewed form under the terms hereof, or (B) it has received notice (which may be by telephone or in writing) on or before the day that is two (2) Business Days before the date that the Issuing Bank is permitted to send a notice of non-renewal from the Administrative Agent, any Lender or the Borrower that one or more of the applicable conditions specified in <u>Section</u> <u>6.03</u> is not then satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Participations</u>. By the issuance of a Letter of Credit (including any amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and each Lender hereby acquires from the Issuing Bank, a participation in such Letter of Credit equal to such Lender's Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank, such Lender's Applicable Percentage of each LC Disbursement made by the Issuing Bank and not reimbursed by the Borrower on the date due as provided in <u>Section</u> <u>2.08(e)</u>, or of any reimbursement payment required to be refunded to the Borrower for any reason. Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this <u>Section</u> <u>2.08(d)</u> in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default, the existence of a Borrowing Base Deficiency or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Reimbursement</u>. If the Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 12:00 noon, Houston, Texas time, on the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC Disbursement prior to 11:00 a.m., Houston, Texas time, on such date,

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or, if such notice has not been received by the Borrower prior to such time on such date, then not later than 12:00 noon, Houston, Texas time, on the Business Day immediately following the day that the Borrower receives such notice; *provided* that the Borrower shall, subject to the conditions to Borrowing set forth herein, be deemed to have requested, and the Borrower does hereby request under such circumstances, that such payment be financed with an ABR Borrowing in an equivalent amount and, to the extent so financed, the Borrower's obligation to make such payment shall be discharged and replaced by the resulting ABR Borrowing. If the Borrower fails to make such payment when due or such ABR Borrowing cannot be made for whatever reason, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof and such Lender's Applicable Percentage thereof. Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the Borrower, in the same manner as provided in <u>Section</u> <u>2.05</u> with respect to Loans made by such Lender (and <u>Section</u> <u>2.05</u> shall apply, *mutatis mutandis*, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the amounts so received by it from the Lenders. Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to this <u>Section</u> <u>2.08(e)</u>, the Administrative Agent shall distribute such payment to the Issuing Bank or, to the extent that Lenders have made payments pursuant to this <u>Section</u> <u>2.08(e)</u> to reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as their interests may appear. Any payment made by a Lender pursuant to this <u>Section</u> <u>2.08(e)</u> to reimburse the Issuing Bank for any LC Disbursement (other than the funding of ABR Loans as contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Obligations Absolute</u>. The Borrower's obligation to reimburse LC Disbursements as provided in <u>Section</u> <u>2.08(e)</u> shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit, any Letter of Credit Agreement, this Agreement, or any other Loan Document, or any term or provision herein or therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit or any Letter of Credit Agreement, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this <u>Section</u> <u>2.08(f)</u>, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower's obligations hereunder. Neither the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their Related Parties shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Issuing Bank; *provided* that the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank's failure to exercise care when determining whether drafts and other

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documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised all requisite care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Disbursement Procedures</u>. The Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit. The Issuing Bank shall promptly notify the Administrative Agent and the Borrower by telephone (confirmed by facsimile or electronic communication) of such demand for payment and whether the Issuing Bank has made or will make an LC Disbursement thereunder; *provided* that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Bank and the Lenders with respect to any such LC Disbursement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Interim Interest</u>. If the Issuing Bank shall make any LC Disbursement, then, until the Borrower shall have reimbursed the Issuing Bank for such LC Disbursement (either with its own funds or a Borrowing under <u>Section</u> <u>2.08(e)</u>), the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum then applicable to ABR Loans. Interest accrued pursuant to this <u>Section</u> <u>2.08(h)</u> shall be for the account of the Issuing Bank, except that interest accrued on and after the date of payment by any Lender pursuant to <u>Section</u> <u>2.08(e)</u> to reimburse the Issuing Bank shall be for the account of such Lender to the extent of such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Replacement of the Issuing Bank</u>. The Issuing Bank may be replaced at any time by written agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement of the Issuing Bank. At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to <u>Section</u> <u>3.05(b)</u>. From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term "Issuing Bank" shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Bank, as the context shall require. After the replacement of the Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of the Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Cash Collateralization</u>. If (i) any Event of Default shall occur and be continuing and the Borrower receives notice from the Administrative Agent or the Majority Lenders demanding the deposit of Cash Collateral pursuant to this <u>Section</u> <u>2.08(j)</u>, (ii) the LC Exposure

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exceeds the LC Commitment at any time, (iii) the Borrower is required to pay to the Administrative Agent the excess attributable to an LC Exposure in connection with any prepayment pursuant to <u>Section</u> <u>3.04(c)</u> or (iv) the Borrower is required to cash collateralize a Defaulting Lender's LC Exposure pursuant to <u>Section</u> <u>2.09(b)</u>, then the Borrower shall deposit, in the case of clause (i) or (ii), on demand, in the case of clause (iii), by the date specified therefor in <u>Section</u> <u>3.04(c)</u>, and in the case of clause (iv), by the date specified therefor in <u>Section</u> <u>2.09(b)</u>, in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Issuing Bank, an amount in cash equal to, (A) in the case of an Event of Default, 103% of the LC Exposure, (B) in the case of the LC Exposure exceeding the LC Commitment, the amount of such excess, (C) in the case of a payment required by <u>Section</u> <u>3.04(c)</u>, the amount of such excess as provided in <u>Section</u> <u>3.04(c)</u>, as of such date *plus* any accrued and unpaid interest thereon and (D) in the case of the Borrower's requirement to cash collateralize a Defaulting Lender's LC Exposure pursuant to <u>Section</u> <u>2.09(b)</u>, the amount required pursuant to <u>Section</u> <u>2.09(b)</u>; *provided* that the obligation to deposit such Cash Collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower or any Restricted Subsidiary described in <u>Section</u> <u>10.01(h)</u> or <u>Section</u> <u>10.01(i)</u>. The Borrower hereby grants to the Administrative Agent, for the benefit of the Issuing Bank and the Lenders, an exclusive first priority and continuing perfected security interest in and Lien on such account and all cash, checks, drafts, certificates and instruments, if any, from time to time deposited or held in such account, all deposits or wire transfers made thereto, any and all investments purchased with funds deposited in such account, all interest, dividends, cash, instruments, financial assets and other Property from time to time received, receivable or otherwise payable in respect of, or in exchange for, any or all of the foregoing, and all proceeds, products, accessions, rents, profits, income and benefits therefrom, and any substitutions and replacements therefor. The Borrower's obligation to deposit amounts pursuant to this <u>Section</u> <u>2.08(j)</u> shall be absolute and unconditional, without regard to whether any beneficiary of any such Letter of Credit has attempted to draw down all or a portion of such amount under the terms of a Letter of Credit, and, to the fullest extent permitted by applicable law, shall not be subject to any defense or be affected by a right of set-off, counterclaim or recoupment which the Borrower or any of its Subsidiaries may now or hereafter have against any such beneficiary, the Issuing Bank, the Administrative Agent, the Lenders or any other Person for any reason whatsoever. Such deposit shall be held as collateral securing the payment and performance of the Borrower's and the Guarantors' obligations under this Agreement and the other Loan Documents. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Borrower's risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated, be applied to satisfy other obligations of the Borrower and the Guarantors under this Agreement or the other Loan Documents. If the Borrower is required to provide an amount of Cash Collateral hereunder as a result of the occurrence of an Event of Default or pursuant to <u>Section</u> <u>2.09(b)</u> as a result of a Defaulting Lender, and the Borrower is not otherwise required to pay to the Administrative Agent the excess attributable to

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an LC Exposure in connection with any prepayment pursuant to <u>Section</u> <u>3.04(c)</u>, then such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three Business Days after all Events of Default have been cured or waived or the events giving rise to such Cash Collateralization pursuant to <u>Section</u> <u>2.09(b)</u> have been satisfied or resolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>LC Exposure Determination</u>. For all purposes of this Agreement, the amount of a Letter of Credit that, by its terms or the terms of any document related thereto, provides for one or more automatic increases in the stated amount thereof shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at the time of determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Reports from Issuing Bank</u>. The Issuing Bank (other than the Administrative Agent or any of its Affiliates) shall, at the reasonable request of the Administrative Agent, provide the Administrative Agent with a list of all Letters of Credit issued by the Issuing Bank that are outstanding at such time.

**Section 2.09 <u>Defaulting Lenders</u>**. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, and any Fronting Exposure exists at the time a Lender becomes a Defaulting Lender, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all or any part of such Fronting Exposure shall automatically be reallocated among the Non-Defaulting Lenders in accordance with their respective Applicable Percentages but only to the extent (i) the sum of all Non-Defaulting Lenders' Revolving Credit Exposures does not exceed the total of all Non-Defaulting Lenders' Commitments, (ii) any Non-Defaulting Lender's Revolving Credit Exposure does not exceed its Commitment, and (iii) the conditions set forth in <u>Section</u> <u>6.03</u> are satisfied at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the reallocation described in clause (a) above cannot, or can only partially, be effected, the Borrower shall, within one (1) Business Day following notice by the Administrative Agent, Cash Collateralize such Defaulting Lender's LC Exposure (after giving effect to any partial reallocation pursuant to clause (a) above) in accordance with the procedures set forth in <u>Section</u> <u>2.08(j)</u> for so long as such LC Exposure is outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Borrower Cash Collateralizes any portion of such Defaulting Lender's LC Exposure pursuant to this <u>Section</u> <u>2.09</u>, the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to <u>Section</u> <u>3.05(b)</u> with respect to such Defaulting Lender's LC Exposure during the period such Defaulting Lender's LC Exposure is Cash Collateralized;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if the LC Exposure of the Non-Defaulting Lenders is reallocated pursuant to this <u>Section</u> <u>2.09</u>, then the fees payable to the Lenders pursuant to <u>Section</u> <u>3.05(a)</u> and <u>Section</u> <u>3.05(b)</u> shall be adjusted in accordance with such Non-Defaulting Lenders' Applicable Percentages; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) if any Defaulting Lender's LC Exposure is neither Cash Collateralized nor reallocated pursuant to this <u>Section</u> <u>2.09</u>, then, without prejudice to any rights or remedies of the Issuing Bank or any Lender hereunder, all commitment fees that otherwise would have been payable to such Defaulting Lender (solely with respect to the portion of such Defaulting Lender's Commitment that was utilized by such LC Exposure) under <u>Section</u> <u>3.05(a)</u> and letter of credit fees payable under <u>Section</u> <u>3.05(b)</u> with respect to such Defaulting Lender's LC Exposure shall be payable to the Issuing Bank until such LC Exposure is Cash Collateralized and/or reallocated.

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Notwithstanding any provision of this Agreement to the contrary, so long as any Lender is a Defaulting Lender, the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit unless it is satisfied that the related Fronting Exposure will be 100% covered by the Commitments of the Non-Defaulting Lenders and/or Cash Collateral will be provided by the Borrower in accordance with <u>Section</u> <u>2.08(j)</u>, and participating interests in any such newly issued or increased Letter of Credit shall be allocated among Non-Defaulting Lenders in a manner consistent with <u>Section</u> <u>2.09(a)</u> (and any Defaulting Lender shall not participate therein).

If the Borrower, the Administrative Agent and the Issuing Bank agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any cash collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit to be held pro rata by the Lenders in accordance with the Commitments (without giving effect to paragraph (a)(i) above), whereupon, such Lender will cease to be a Defaulting Lender; *provided* that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and *provided*, *further*, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

**ARTICLE III** 

**PAYMENTS OF PRINCIPAL AND INTEREST; PREPAYMENTS; FEES** 

**Section 3.01 <u>Repayment of Loans</u>**. The Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Loan on the Termination Date.

**Section 3.02 <u>Interest</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>ABR Loans</u>. The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>SOFR Loans</u>. The Loans comprising each SOFR Borrowing shall bear interest at Term SOFR for the Interest Period in effect for such Borrowing plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Post-Event of Default Rate</u>. Notwithstanding the foregoing, (i) if any Event of Default of the type described in <u>Section</u> <u>10.01(a)</u>, <u>Section</u> <u>10.01(b)</u>, <u>Section</u> <u>10.01(h)</u> or <u>Section</u> <u>10.01(i)</u> occurs, then all outstanding principal shall automatically bear interest at a rate per annum of two percent (2%) plus the rate applicable to ABR Loans or SOFR Loans, as applicable, as provided in <u>Section</u> <u>3.02(a)</u> or <u>Section</u> <u>3.02(b)</u> (including the Applicable Margin), as applicable,

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but in no event to exceed the Highest Lawful Rate, and shall be payable on demand by the Administrative Agent and (ii) if any Event of Default occurs (other than an Event of Default described in <u>Section</u> <u>10.01(a)</u>, <u>Section</u> <u>10.01(b)</u>, <u>Section</u> <u>10.01(h)</u> or <u>Section</u> <u>10.01(i)</u>), then at the election of the Majority Lenders (or the Administrative Agent at the direction of the Majority Lenders), all outstanding principal shall automatically bear interest at a rate per annum of two percent (2%) plus the rate applicable to ABR Loans or SOFR Loans, as applicable, as provided in <u>Section</u> <u>3.02(a)</u> or <u>Section</u> <u>3.02(b)</u> (including the Applicable Margin), as applicable, but in no event to exceed the Highest Lawful Rate, and shall be payable on demand by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Interest Payment Dates</u>. Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and on the Termination Date; *provided* that (i) interest accrued pursuant to <u>Section</u> <u>3.02(c)</u> shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than an optional prepayment of an ABR Loan prior to the Termination Date), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment, and (iii) in the event of any conversion of any SOFR Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Interest Rate Computations</u>. All interest hereunder shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), except that interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day). All interest hereunder on any Loan shall be computed on a daily basis based upon the outstanding principal amount of such Loan as of the applicable date of determination. The applicable Alternate Base Rate or Term SOFR shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error, and be binding upon the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Term SOFR Conforming Changes</u>. In connection with the use or administration of Term SOFR, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document. The Administrative Agent will promptly notify the Borrower and the Lenders of the effectiveness of any Conforming Changes in connection with the use or administration of Term SOFR.

**Section 3.03 <u>Inability to Determine Rates; Effect of Benchmark Transition Event</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Circumstances Affecting Benchmark Availability</u>. Subject to <u>clause (b)</u> below, in connection with any request for a SOFR Loan or a conversion to or continuation thereof or otherwise, if for any reason (i) the Administrative Agent shall determine (which determination shall be conclusive and binding absent manifest error) that reasonable and adequate means do not exist for ascertaining Term SOFR for the applicable Interest Period with respect to a proposed SOFR Loan on or prior to the first day of such Interest Period or (ii) the Majority Lenders shall

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determine (which determination shall be conclusive and binding absent manifest error) that Term SOFR does not adequately and fairly reflect the cost to such Lenders of making or maintaining such Loans for such Interest Period and the Majority Lenders have provided notice of such determination to the Administrative Agent, then, in each case, the Administrative Agent shall promptly give notice thereof to the Borrower by telephone, facsimile or other electronic transmission acceptable to the Borrower. Upon notice thereof by the Administrative Agent to the Borrower, any obligation of the Lenders to make SOFR Loans, and any right of the Borrower to convert any Loan to or continue any Loan as a SOFR Loan, shall be suspended (to the extent of the affected SOFR Loans or the affected Interest Periods) until the Administrative Agent (with respect to clause (ii), at the instruction of the Majority Lenders) revokes such notice. Upon receipt of such notice, (A) the Borrower may revoke any pending request for a borrowing of, conversion to or continuation of SOFR Loans (to the extent of the affected SOFR Loans or the affected Interest Periods) or, failing that, the Borrower will be deemed to have converted any such request into a request for a borrowing of or conversion to ABR Loans in the amount specified therein and (B) any outstanding affected SOFR Loans will be deemed to have been converted into ABR Loans at the end of the applicable Interest Period. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted, together with any additional amounts required pursuant to <u>Section</u> <u>5.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Laws Affecting SOFR Availability</u>. If, after the Signing Date, the introduction of, or any change in, any applicable law or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any of the Lenders (or any of their respective Lending Offices) with any request or directive (whether or not having the force of law) of any such Governmental Authority, central bank or comparable agency, shall make it unlawful or impossible for any of the Lenders (or any of their respective Lending Offices) to honor its obligations hereunder to make or maintain any SOFR Loan, or to determine or charge interest based upon SOFR, the Term SOFR Reference Rate or Term SOFR, such Lender shall promptly give notice thereof to the Administrative Agent and the Administrative Agent shall promptly give notice to the Borrower and the other Lenders ("<u>Illegality Notice</u>"). Thereafter, until each affected Lender notifies the Administrative Agent and the Administrative Agent notifies the Borrower that the circumstances giving rise to such determination no longer exist, (i) any obligation of the Lenders to make SOFR Loans, and any right of the Borrower to convert any Loan to a SOFR Loan or continue any Loan as a SOFR Loan, shall be suspended and (ii) if necessary to avoid such illegality, the Administrative Agent shall compute the Alternate Base Rate without reference to clause (c) of the definition of "Alternate Base Rate", in each case until each such affected Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist. Upon receipt of an Illegality Notice, the Borrower shall, if necessary to avoid such illegality, upon demand from any Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all SOFR Loans to ABR Loans (in each case, if necessary to avoid such illegality, the Administrative Agent shall compute the Alternate Base Rate without reference to clause (c) of the definition of "Alternate Base Rate"), on the last day of the Interest Period therefor, if all affected Lenders may lawfully continue to maintain such SOFR Loans, to such day, or immediately, if any Lender may not lawfully continue to maintain such SOFR Loans to such day. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted, together with any additional amounts required pursuant to <u>Section</u> <u>5.02</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Benchmark Replacement Setting.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Benchmark Replacement</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event, the Administrative Agent and the Borrower may amend this Agreement to replace the then-current Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5<sup>th</sup>) Business Day after the Administrative Agent has posted such proposed amendment to all affected Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Majority Lenders. No replacement of a Benchmark with a Benchmark Replacement pursuant to this <u>Section</u> <u>3.03(c)(i)</u> will occur prior to the applicable Benchmark Transition Start Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Benchmark Replacement Conforming Changes</u>. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Conforming Changes (in consultation with the Borrower) from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Notices; Standards for Decisions and Determinations</u>. The Administrative Agent will promptly notify the Borrower and the Lenders of (A) the implementation of any Benchmark Replacement and (B) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. The Administrative Agent will promptly notify the Borrower of the removal or reinstatement of any tenor of a Benchmark pursuant to <u>Section</u> <u>3.03(c)(iv)</u>. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this <u>Section</u> <u>3.03(c)</u>, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this <u>Section</u> <u>3.03(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Unavailability of Tenor of Benchmark</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (A) if the then-current Benchmark is a term rate (including the Term SOFR Reference Rate) and either (1) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (2) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is not or will not be representative, then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such unavailable or non-representative

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tenor and (B) if a tenor that was removed pursuant to clause (A) above either (1) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (2) is not, or is no longer, subject to an announcement that it is not or will not be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Benchmark Unavailability Period</u>. Upon the Borrower's receipt of notice of the commencement of a Benchmark Unavailability Period, (A) the Borrower may revoke any pending request for a borrowing of, conversion to or continuation of SOFR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a borrowing of or conversion to ABR Loans and (B) any outstanding affected SOFR Loans will be deemed to have been converted to ABR Loans at the end of the applicable Interest Period. During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of the Alternate Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of the Alternate Base Rate.

**Section 3.04 <u>Prepayments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Optional Prepayments</u>. The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with <u>Section</u> <u>3.04(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice and Terms of Optional Prepayment</u>. The Borrower shall provide written notice to the Administrative Agent of any prepayment hereunder (i) in the case of prepayment of a SOFR Borrowing, not later than 12:00 noon, Houston, Texas time, three U.S. Government Securities Business Days before the date of prepayment or (ii) in the case of prepayment of an ABR Borrowing, not later than 12:00 noon, Houston, Texas time, one Business Day before the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; *provided* that, if a notice of prepayment is given in connection with a conditional notice of termination of the Commitments as contemplated by Section 2.06(b), then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.06(b). Promptly following receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.02. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section 3.02.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mandatory Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If, after giving effect to any termination or reduction of the Aggregate Maximum Credit Amounts pursuant to <u>Section</u> <u>2.06(b)</u> or any reduction in the Aggregate

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Elected Commitment Amounts pursuant to <u>Section</u> <u>2.06(c)</u>, the Total Revolving Credit Exposures exceeds the then effective Loan Limit, then the Borrower shall (A) prepay the Borrowings of Loans on the date of such termination or reduction in an aggregate principal amount equal to such excess, and (B) if any excess remains after prepaying all of the Borrowings of Loans as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as Cash Collateral as provided in <u>Section</u> <u>2.08(j)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon any redetermination of the Borrowing Base pursuant to <u>Section</u> <u>2.07(c)</u> or any adjustment to the amount of the Borrowing Base in accordance with <u>Section</u> <u>8.12(c)</u>, if the Total Revolving Credit Exposures exceed the Loan Limit after giving effect to the redetermined or adjusted Borrowing Base, then the Borrower shall, within ten (10) Business Days after written notice from the Administrative Agent to the Borrower of such Borrowing Base Deficiency, notify the Administrative Agent of its election to take one or more of the following actions to cure the Borrowing Base Deficiency and shall take such actions within the periods specified herein: (A) deliver to the Administrative Agent within thirty (30) days after receipt of such New Borrowing Base Notice, petroleum engineering information and Mortgages covering additional Oil and Gas Properties of the Credit Parties not included in the immediately preceding Reserve Report with a value and quality satisfactory to all of the Lenders in their sole discretion sufficient to eliminate such Borrowing Base Deficiency or (B) prepay the Borrowings in an aggregate principal amount equal to such excess, and if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as Cash Collateral as provided in <u>Section</u> <u>2.08(j)</u>. The Borrower may make such prepayment either, at its election, (1) in one lump sum payment on or before the date that is 30 days following the receipt by the Borrower of the New Borrowing Base Notice in accordance with <u>Section</u> <u>2.07(d)</u> or (2) in six equal payments, the first of which being due on the date that is 30 days following the date of receipt by the Borrower of the New Borrowing Base Notice in accordance with <u>Section</u> <u>2.07(d)</u> and each subsequent payment being due and payable on the same day in each of the subsequent calendar months; *provided* that all payments required to be made pursuant to this <u>Section</u> <u>3.04(c)(ii)</u> must be made on or prior to the Termination Date. The Borrower may also undertake a combination of clauses (A) and (B); *provided* that the Borrower shall notify the Administrative Agent in writing of the Borrower's election in respect of clause (A) or (B) or the combination of clause (A) or (B) as provided in the immediately preceding sentence within ten (10) days following the receipt of the New Borrowing Base Notice in accordance with <u>Section</u> <u>2.07(d)</u> (and any failure to deliver such notice shall be deemed to be an election by the Borrower to eliminate such deficiency as provided in clause (1)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Upon any adjustment to the amount of the Borrowing Base in accordance with <u>Section</u> <u>2.07(e)</u> or <u>Section</u> <u>2.07(f)</u>, if the Total Revolving Credit Exposures exceeds the Borrowing Base after giving effect to such Borrowing Base adjustment, then the Borrower shall (A) prepay the Borrowings in an aggregate principal amount equal to such excess and (B) if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as Cash Collateral as provided in <u>Section</u> <u>2.08(j)</u>. The Borrower shall be obligated to make such prepayment in one lump sum payment no later than one (1) Business Day following the dates of any applicable adjustment of the Borrowing Base.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If: (a) in calculating the Consolidated Cash Balance for the purpose of determining whether the condition contained in <u>Section</u> <u>6.03(d)</u> was satisfied at the time of and immediately after giving effect to any Borrowing or the issuance, amendment, renewal, increase or extension of any Letter of Credit, as applicable (the date of such Borrowing or such issuance, amendment, renewal, increase or extension, the "<u>Applicable Test Date</u>"), the Consolidated Cash Balance was reduced by any cash set aside or to be used to make any payments to be due and owing within ten (10) Business Days from the Applicable Test Date pursuant to <u>clauses (ii)</u> <u>(iv)</u> and/or <u>(vi)</u> of the definition of Consolidated Cash Balance (the aggregate amount of such reduction, the "<u>Expected Payment Amount</u>"); (b) at the end of the tenth (10<sup>th</sup>) Business Day after the Applicable Test Date (any such date, a "<u>Measurement Date</u>"), any portion of the Expected Payment Amount was not (x) paid by the Borrower or any Restricted Subsidiary as contemplated by <u>clauses (ii)</u> and/or <u>(iv)</u> of the definition of Consolidated Cash Balance, (y) applied as a prepayment of the Loans or to Cash Collateralize the LC Exposure or (z) applied to payments made in the ordinary course of business permitted by this Agreement (such unpaid portion, the "<u>Unpaid Amount</u>"); and (c) the Consolidated Cash Balance would have exceeded the Consolidated Cash Balance Threshold (the amount of such excess, "<u>Excess Cash</u>") immediately after giving effect to any Borrowing or the issuance, amendment, renewal, increase or extension of any Letter of Credit, as applicable, and the use of proceeds thereof on such Applicable Test Date (as the Consolidated Cash Balance is recalculated as of the Applicable Test Date by increasing Consolidated Cash Balance by the Unpaid Amount), then, such event shall not be a Default, but instead the Borrower shall, on the Business Day immediately following the Measurement Date, prepay the Borrowings in an aggregate principal amount equal to such Excess Cash. To the extent that (A) such payment has not been made on the Business Day immediately following the Measurement Date, and (B) there are funds of the Borrower or any of its Subsidiaries on deposit in, or credited to, any Deposit Account, Securities Account or other account maintained with the Administrative Agent (or any Affiliate thereof) or any Lender (or any Affiliate thereof) on any date that the Borrower is required to prepay Loans pursuant to this <u>Section</u> <u>3.04(c)(iv)</u>, the Borrower (on its own behalf and on behalf of the Credit Parties) hereby irrevocably authorizes and instructs the Administrative Agent or such Lender to apply such funds to the prepayment of such Loans on and after the second Business Day immediately following the Measurement Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Each prepayment of Borrowings pursuant to this <u>Section</u> <u>3.04(c)</u> shall be applied, first, ratably to any ABR Borrowings then outstanding, and, second, to any SOFR Borrowings then outstanding, and if more than one SOFR Borrowing is then outstanding, to each such SOFR Borrowing in order of priority beginning with the SOFR Borrowing with the least number of days remaining in the Interest Period applicable thereto and ending with the SOFR Borrowing with the most number of days remaining in the Interest Period applicable thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Each prepayment of Borrowings pursuant to this <u>Section</u> <u>3.04(c)</u> shall be applied ratably to the Loans included in the prepaid Borrowings. Prepayments pursuant to this <u>Section</u> <u>3.04(c)</u> shall be accompanied by accrued interest to the extent required by <u>Section</u> <u>3.02</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Premium or Penalty</u>. Prepayments permitted or required under this <u>Section</u> <u>3.04</u> shall be without premium or penalty, except as required under <u>Section</u> <u>5.02</u>.

**Section 3.05 <u>Fees</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Commitment Fees</u>. Except as otherwise provided in <u>Section</u> <u>3.05(d)</u>, the Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall accrue at the applicable Commitment Fee Rate on the daily amount of the unused amount of the Commitment of such Lender during the period from and including the Effective Date to but excluding the Termination Date. Accrued commitment fees shall be payable in arrears on the third Business Day following the last day of March, June, September and December of each year and on the Termination Date, commencing on the first such date to occur after the Effective Date. All commitment fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case commitment fees shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Letter of Credit Fees</u>. Except as otherwise provided in <u>Section</u> <u>3.05(d)</u>, the Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender a participation fee with respect to its participations in each outstanding Letter of Credit which shall accrue at the same Applicable Margin used to determine the interest rate applicable to SOFR Loans on the average daily amount of such Lender's LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Lender's Commitment terminates and the date on which such Lender ceases to have any LC Exposure, (ii) to the Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date of termination of the Commitments and the date on which there ceases to be any LC Exposure; *provided* that in no event shall such fee be less than $500 during any fiscal year; and (iii) to the Issuing Bank, for its own account, its standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder or any other customary or administrative fees. Participation fees and fronting fees accrued through and including the last day of March, June, September and December of each year shall be payable on the third Business Day following the last day of such month end, commencing on the first such date to occur after the Effective Date; *provided* that all such fees shall be payable on the Termination Date and any such fees accruing after the Termination Date shall be payable on demand. Any other fees payable to the Issuing Bank pursuant to this <u>Section</u> <u>3.05(b</u>) shall be payable within ten (10) days after demand. All participation fees and fronting fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Administrative Agent and Other Fees</u>. The Borrower agrees to pay to the Administrative Agent (i) fees payable in the amounts and at the times set forth in the Fee Letter and (ii) any other fees payable in the amounts and at the times separately agreed upon between the Borrower and the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Defaulting Lender Fees</u>. Subject to <u>Section</u> <u>2.09</u>, the Borrower shall not be obligated to pay the Administrative Agent any Defaulting Lender's ratable share of the fees described in <u>Section</u> <u>3.05(a)</u> and <u>(b)</u> for the period commencing on the day such Defaulting Lender becomes a Defaulting Lender and continuing for so long as such Lender continues to be a Defaulting Lender.

**ARTICLE IV** 

**PAYMENTS; PRO RATA TREATMENT; SHARING OF SET-OFFS** 

**Section 4.01 <u>Payments Generally; Pro Rata Treatment; Sharing of Set-offs</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payments by the Borrower</u>. The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under <u>Section</u> <u>5.01</u>, <u>Section</u> <u>5.02</u>, <u>Section</u> <u>5.03</u> or otherwise) prior to 12:00 noon, Houston, Texas time, on the date when due, in immediately available funds, without defense, deduction, recoupment, set-off or counterclaim. Fees, once paid, shall be fully earned and shall not be refundable under any circumstances. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices specified in <u>Section</u> <u>12.01</u>, except payments to be made directly to the Issuing Bank as expressly provided herein and except that payments pursuant to <u>Section</u> <u>5.01</u>, <u>Section</u> <u>5.02</u>, <u>Section</u> <u>5.03</u> and <u>Section</u> <u>12.03</u> shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder shall be made in dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Application of Insufficient Payments</u>. If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Sharing of Payments by Lenders</u>. If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in LC Exposure resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC Exposure and

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accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC Exposure of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and participations in LC Exposure; *provided* that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this <u>Section</u> <u>4.01(c)</u> shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Exposure to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this <u>Section</u> <u>4.01(c)</u> shall apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

**Section 4.02 <u>Presumption of Payment by the Borrower</u>**. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

**Section 4.03 <u>Certain Deductions by the Administrative Agent</u>**. If a Defaulting Lender (or a Lender who would be a Defaulting Lender but for the expiration of the relevant grace period) as a result of the exercise of a set off shall have received a payment in respect of its Revolving Credit Exposure which results in its Revolving Credit Exposure being less than its Applicable Percentage of the aggregate Revolving Credit Exposures, then no payment will be made to such Defaulting Lender until all amounts due and owing to the Lenders have been equalized in accordance with each Lender's respective pro rata share of the Obligations. Further, if any Lender shall fail to make any payment required to be made by it pursuant to <u>Section</u> <u>2.05(a)</u>, <u>Section</u> <u>2.08(d)</u>, <u>Section</u> <u>2.08(e)</u> or <u>Section</u> <u>4.02</u>, or otherwise hereunder, then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender's obligations under such Sections until all such unsatisfied obligations are fully paid. If at any time prior to the acceleration or maturity of the Loans, the Administrative Agent shall receive any payment in respect of principal of a Loan or a reimbursement of an LC Disbursement while one or more Defaulting Lenders shall be party to this Agreement, the Administrative Agent shall apply such payment first to the Borrowing(s) for which such Defaulting Lender(s) shall have failed

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to fund its pro rata share until such time as such Borrowing(s) are paid in full or each Lender (including each Defaulting Lender) is owed its Applicable Percentage of the Loans then outstanding, as applicable. After acceleration or maturity of the Loans, all principal will be paid ratably as provided in <u>Section</u> <u>10.02(c)</u>.

**Section 4.04 <u>Disposition of Proceeds</u>**. The Security Instruments contain an assignment by the Borrower and/or the Guarantors unto and in favor of the Administrative Agent for the benefit of the Secured Parties of all of the Borrower's or each Guarantor's interest in and to production and all proceeds attributable thereto which may be produced from or allocated to the Mortgaged Property. The Security Instruments further provide in general for the application of such proceeds to the satisfaction of the Obligations and other obligations described therein and secured thereby. Notwithstanding the assignment contained in such Security Instruments, until the occurrence of an Event of Default, (a) the Administrative Agent and the Lenders agree that they will neither notify the purchaser or purchasers of such production nor take any other action to cause such proceeds to be remitted to the Administrative Agent or the Lenders, but the Lenders will instead permit such proceeds to be paid to the Borrower and its Restricted Subsidiaries and (b) the Lenders hereby authorize the Administrative Agent to take such actions as may be necessary to cause such proceeds to be paid to the Borrower and/or such Restricted Subsidiaries.

**ARTICLE V** 

**INCREASED COSTS; BREAK FUNDING PAYMENTS; TAXES; ILLEGALITY** 

**Section 5.01 <u>Increased Costs</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Changes in Law</u>. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve including pursuant to regulations issued from time to time by the Federal Reserve Board for determining the maximum reserve requirement (including any emergency, special, supplemental or other marginal reserve requirement) with respect to eurocurrency funding (currently referred to as "Eurocurrency liabilities" in Regulation D), special deposit, compulsory loan, insurance charge, or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender or any Issuing Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Lender (including any Issuing Bank), Administrative Agent, or any other recipient of any payment to be made by or on account of any obligation of the Borrower or any Guarantor hereunder or under any other Loan Document ****to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender or Issuing Bank or the London interbank market any other condition, cost or expense affecting this Agreement or SOFR Loans made by such Lender or such Issuing Bank;

and the result of any of the foregoing shall be to increase the cost to such Lender or other recipient of making, converting into, continuing or maintaining any SOFR Loan (or of maintaining its

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obligation to make any such Loan), to insurance the cost to such Lender, such Issuing Bank or such other recipient of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or other recipient (whether of principal, interest or otherwise), then the Borrower will pay to such Lender or other recipient such additional amount or amounts as will compensate such Lender or other recipient for such additional costs incurred or reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Capital Requirements</u>. If any Lender or the Issuing Bank determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender's or the Issuing Bank's capital or on the capital of such Lender's or the Issuing Bank's holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding company could have achieved but for such Change in Law (taking into consideration such Lender's or the Issuing Bank's policies and the policies of such Lender's or the Issuing Bank's holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding company for any such reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificates</u>. A certificate of a Lender, the Issuing Bank or the Administrative Agent setting forth the amount or amounts necessary to compensate such Lender, the Issuing Bank or its holding company, or the Administrative Agent, as the case may be, as specified in <u>Section</u> <u>5.01(a)</u> or <u>(b)</u> shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender, the Issuing Bank or the Administrative Agent, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Effect of Failure or Delay in Requesting Compensation</u>. Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this <u>Section</u> <u>5.01</u> shall not constitute a waiver of such Lender's or the Issuing Bank's right to demand such compensation; *provided* that the Borrower shall not be required to compensate a Lender or the Issuing Bank pursuant to this <u>Section</u> <u>5.01</u> for any increased costs or reductions incurred more than 365 days prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender's or the Issuing Bank's intention to claim compensation therefor; *provided further* that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 365-day period referred to above shall be extended to include the period of retroactive effect thereof.

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**Section 5.02 <u>Break Funding Payments</u>**. In the event of (a) the payment of any principal of any SOFR Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any SOFR Loan into an ABR Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any SOFR Loan on the date specified in any notice delivered pursuant hereto, or (d) the assignment of any SOFR Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to <u>Section</u> <u>5.04(b)</u>, then, in any such event, and unless waived by the applicable Lender, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this <u>Section</u> <u>5.02</u> shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

**Section 5.03 <u>Taxes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payments Free of Taxes</u>. Any and all payments by or on account of any obligation of the Borrower or any Guarantor under any Loan Document shall be free and clear of and without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of the applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by any Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and if such Tax is an Indemnified Tax, then the sum payable shall be increased as necessary by the Borrower or any Guarantor so that after making all required deductions or withholdings (including deductions and withholdings applicable to additional sums payable under this <u>Section</u> <u>5.03(a)</u>), the applicable Recipient receives an amount equal to the sum it would have received had no such deductions or withholdings been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payment of Other Taxes by the Borrower</u>. The Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Indemnification by the Borrower</u>. The Borrower shall indemnify the Administrative Agent and each Lender, within 10 days after demand therefor, for the full amount of any Indemnified Taxes payable or paid by, or required to be withheld or deducted from a payment to, the Administrative Agent or such Lender, as the case may be, on or with respect to any payment to such Administrative Agent or Lender (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this <u>Section</u> <u>5.03</u>) and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate of the Administrative Agent (on its own behalf or on behalf of a Lender) or a Lender (with a copy to the Administrative Agent) as to the amount of such payment or liability under this <u>Section</u> <u>5.03</u> shall be delivered to the Borrower and shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification by the Lenders</u>. Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that Borrower has not already indemnified the

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Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender's failure to comply with the provisions of <u>Section</u> <u>12.04(c)</u> relating to the maintenance of a Participant Register, and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by the Borrower or a Guarantor to a Governmental Authority pursuant to <u>Section</u> <u>5.03</u>, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Status of Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, ****shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in <u>Section</u> <u>5.03(f)(ii)(A)</u> and <u>Section</u> <u>5.03(f)(ii)(B)</u> and <u>Section</u> <u>5.03(g)</u> below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Withholding Agent), an executed copy of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding Tax;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower and the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, an executed copy of IRS Form W-8BEN or IRS Form W-8BEN-E (as applicable) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E (as applicable) establishing an exemption from, or reduction of, U.S. federal withholding tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) an executed copy of IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of <u>Exhibit</u> <u>K-1</u> to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" related to the Borrower as described in Section 871(h)(3)(C) of the Code (a "<u>U.S.</u> <u>Tax Compliance Certificate</u>") and (y) an executed copy of IRS Form W-8BEN or IRS Form W-8BEN-E (as applicable); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to the extent a Foreign Lender is not the beneficial owner, an executed copy of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, or IRS Form W-8BEN-E (as applicable), a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit</u> <u>K-2</u> or <u>Exhibit</u> <u>K-3</u>, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; *provided* that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit</u> <u>K-4</u> on behalf of each such direct and indirect partner; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), an executed copy of any other form prescribed by applicable law as a basis for

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claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>FATCA</u>. If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender fails to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower or the Administrative Agent, at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent, such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower and the Administrative Agent as may be necessary for the Borrower or the Administrative Agent to comply with their obligations under FATCA, to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this <u>Section</u> <u>5.03(g)</u>, "FATCA" shall include any amendments made to FATCA after the Signing Date.

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Withholding Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) On or before the date on which Capital One becomes the Administrative Agent hereunder, it shall deliver to the Borrower two (2) executed copies of IRS Form W-9 certifying that it is exempt from U.S. federal backup withholding tax. On or before the date on which any successor or replacement Administrative Agent shall, on or before the date on which it becomes the Administrative Agent hereunder, it shall deliver to the Borrower two (2) executed copies of either IRS Form W-9 or the applicable IRS Form W-8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Treatment of Certain Refunds</u>. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this <u>Section</u> <u>5.03</u> (including by the payment of additional amounts pursuant to this <u>Section</u> <u>5.03</u>), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, under this <u>Section</u> <u>5.03</u> with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this clause (i) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this clause (i), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this clause (i) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Survival</u>. Each party's obligations under this <u>Section</u> <u>5.03</u> shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments, and the repayment, satisfaction or discharge of all obligations under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Defined Terms</u>. For purposes of this <u>Section</u> <u>5.03</u>, the term "applicable law" includes FATCA and the term "Lender" includes the Issuing Bank.

**Section 5.04 <u>Mitigation Obligations; Replacement of Lenders</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Designation of Different Lending Office</u>. If any Lender requests compensation under <u>Section</u> <u>5.01</u>, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>5.03</u>, or if any Lender's obligation to make or maintain SOFR Loans is suspended pursuant to <u>Section</u> <u>3.03(b)</u>, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to <u>Section</u> <u>5.01</u> or <u>Section</u> <u>5.03</u>, as the case may be, in the future or would allow the Lender to make SOFR Loans and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Replacement of Lenders</u>. If any Lender requests compensation under <u>Section</u> <u>5.01</u>, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>5.03</u> and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with <u>Section</u> <u>5.04(a)</u>, or if any Lender's obligation to make or maintain SOFR Loans is suspended pursuant to <u>Section</u> <u>3.03(b)</u>, or if any Lender becomes a Defaulting Lender or Non-Consenting Lender hereunder, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in <u>Section</u> <u>12.04(b)</u>), all its interests, rights (other than its existing rights to payments pursuant to <u>Section</u> <u>5.01</u> or <u>Section</u> <u>5.03</u>) and obligations under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); *provided* that (i) the Borrower shall have received the prior written consent of the Administrative Agent and the Issuing Bank, which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts), (iii) in the case of any such assignment resulting from a claim for compensation under <u>Section</u> <u>5.01</u> or payments required to

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be made pursuant to <u>Section</u> <u>5.03</u>, such assignment will result in a reduction in such compensation or payments, and (iv) in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. Notwithstanding the foregoing, a Lender shall not be required to make any such assignment and delegation if such Lender (or its Affiliate) is a Secured Swap Party with any outstanding Secured Swap Agreements, unless on or prior thereto, all such Swap Agreements have been terminated or novated to another Person and such Lender (or its Affiliate) shall have received payment of all amounts, if any, payable to it in connection with such termination or novation.

**ARTICLE VI** 

**CONDITIONS PRECEDENT** 

**Section 6.01 <u>Signing Date</u>**. The obligations of the Lenders to enter into this Agreement are subject to the satisfaction (or waiver in accordance with <u>Section</u> <u>12.02</u>) of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent shall have received from each party hereto counterparts (in such number as may be requested by the Administrative Agent) of this Agreement signed on behalf of such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall have received a certificate of the Secretary, Assistant Secretary or Responsible Officer of the Parent, the General Partner, the Borrower and each Guarantor setting forth (i) resolutions of its board of directors (or comparable governing body) with respect to the authorization of the Parent, the General Partner, the Borrower or such Guarantor to execute and deliver the Loan Documents to which it is a party and to enter into the transactions contemplated in those documents, (ii) the officers of the Parent, the General Partner, the Borrower or such Guarantor (A) who are authorized to sign the Loan Documents to which the Borrower or such Guarantor is a party and (B) who will, until replaced by another officer or officers duly authorized for that purpose, act as its representative for the purposes of signing documents and giving notices and other communications in connection with this Agreement and the transactions contemplated hereby, (iii) specimen signatures of such authorized officers, and (iv) (A) the by-laws and certificate of incorporation of the Parent and (B) the certificate of formation and limited liability company agreements or limited partnership agreements (or comparable organizational documents for any Credit Parties that are not limited liability companies or limited partnerships) of the Borrower, the General Partner and such Guarantor (this <u>clause (iv)</u>, collectively, the "**Governance Documents**"), in the case of each of the foregoing clauses (A) and (B) certified as being true, accurate and complete. The Administrative Agent and the Lenders may conclusively rely on such certificate until the Administrative Agent receives notice in writing from the Borrower to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall have received customary certificates as of a recent date prior to the Signing Date reasonably satisfactory to the Administrative Agent of the appropriate state agencies where such entity is formed or incorporated with respect to the existence, qualification and good standing of the Parent, the General Partner, the Borrower and each Guarantor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall have received a certificate of a Responsible Officer of the Borrower certifying:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) that the representations and warranties set forth in <u>Article VII</u> are true and correct in all material respects on the Signing Date except to the extent any such representations and warranties (A) are expressly limited to an earlier date, in which case, on and as of Signing Date, such representations and warranties shall continue to be true and correct in all material respects as of such specified earlier date or (B) are already qualified by materiality, Material Adverse Effect or a similar qualification, in which case, such representations and warranties shall be true and correct in all respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that since December 31, 2025, there has been no event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) that, as of the Signing Date, no Default or Event of Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Administrative Agent shall have received from the Credit Parties at least three (3) Business Days prior to the Signing Date, to the extent reasonably requested in writing by the Lenders or the Administrative Agent at least ten (10) Business Days prior to the Signing Date, (i) all documentation and other information that they reasonably determine is required by regulatory authorities under applicable "know your customer" and Anti-Money Laundering Laws, including the Patriot Act and the Beneficial Ownership Regulation and (ii) a Beneficial Ownership Certification

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Administrative Agent shall have received customary UCC search results reflecting no prior Liens encumbering the Properties of the Borrower and its Restricted Subsidiaries for each jurisdiction requested by the Administrative Agent other than those being assigned or released or to be assigned or released on or prior to the Effective Date or Liens permitted by <u>Section</u> <u>9.03</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Administrative Agent shall have received a solvency certificate from a Financial Officer of the Borrower substantially in the form of <u>Exhibit</u> <u>M</u>.

**Section 6.02 <u>Effective Date</u>**. The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with <u>Section</u> <u>12.02</u>):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent, the Arrangers and the Lenders shall have received all commitment, upfront and agency fees and all other fees and amounts due and payable on or prior to the Effective Date, and to the extent invoiced at least two (2) Business Days prior to the Effective Date, reimbursement or payment of all reasonable and documented out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder (including, without limitation, the reasonable and documented out-of-pocket fees and expenses of Sidley Austin LLP, counsel to the Administrative Agent).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall have received customary certificates as of a recent date prior to the Effective Date reasonably satisfactory to the Administrative Agent of the appropriate state agencies where such entity is formed or incorporated with respect to the existence, qualification and good standing of the Parent, the General Partner, the Borrower and each Guarantor and from the appropriate state agencies where such entity owns any Mortgaged Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall have received a certificate of the Secretary, Assistant Secretary or Responsible Officer of the Parent, the General Partner, the Borrower and each Guarantor setting forth (i) resolutions of its board of directors (or comparable governing body) with respect to the authorization of the Parent, the General Partner, the Borrower or such Guarantor to execute and deliver the Loan Documents to which it is a party and to enter into the transactions contemplated in those documents, (ii) the officers of the Parent, the General Partner, the Borrower or such Guarantor (A) who are authorized to sign the Loan Documents to which the Borrower or such Guarantor is a party and (B) who will, until replaced by another officer or officers duly authorized for that purpose, act as its representative for the purposes of signing documents and giving notices and other communications in connection with this Agreement and the transactions contemplated hereby, (iii) specimen signatures of such authorized officers, and (iv) the Governance Documents, in the case of each of the foregoing clauses (A) and (B) certified as being true, accurate and complete; provided, such certificate may certify that there has been no change to the Governance Documents or to the name and title of each officer executing the Loan Documents, in each case since those delivered pursuant to <u>Section</u> <u>6.01(b)</u> on the Signing Date The Administrative Agent and the Lenders may conclusively rely on such certificate until the Administrative Agent receives notice in writing from the Borrower to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Administrative Agent shall have received duly executed Notes payable to each Lender (or its registered assigns) requesting a Note, if any, in a principal amount equal to its Maximum Credit Amount and dated as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Administrative Agent shall have received from each party thereto duly executed counterparts (in such number as may be requested by the Administrative Agent) of the Security Instruments and the other Loan Documents, in form and substance satisfactory to the Administrative Agent, including the Guarantee and Collateral Agreement, the Mortgages and the other Security Instruments described in <u>Exhibit</u> <u>G</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In connection with the execution and delivery of the Security Instruments, the Administrative Agent shall have received (i) Mortgages (with appropriate acknowledgements and in sufficient counterparts for recordation) in form and substance reasonably satisfactory to the Administrative Agent that will, when properly recorded (or when the applicable financing statements related thereto are properly filed or such other actions needed to perfect are taken) create first priority, perfected Liens (subject only to Excepted Liens identified in clauses (a) through (d) and (f) of the definition thereof, but subject to the provisos at the end of such definition)

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on Oil and Gas Properties representing at least 90% of the PV-9 of the Proved Oil and Gas Properties evaluated by the Initial Reserve Report and (ii) certificates, together with undated, blank stock powers for each such certificate, representing all of the issued and outstanding Equity Interests of each Subsidiary owned by the Credit Parties that are evidenced by certificates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Administrative Agent shall have received title information in form and substance reasonably acceptable to the Administrative Agent covering enough of the Oil and Gas Properties evaluated by the Initial Reserve Report, so that the Administrative Agent shall have received reasonably satisfactory title information on at least 90% of the PV-9 of the Proved Oil and Gas Properties evaluated by the Initial Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Administrative Agent shall have received (a) an opinion of Latham & Watkins LLP, New York and Texas special counsel to the Parent, the General Partner, the Borrower and the Guarantors, (b) an opinion of local counsel to the Credit Parties in the State of Louisiana, (c) an opinion of local counsel to the Credit Parties in the Commonwealth of Pennsylvania, (d) an opinion of local counsel to the Credit Parties in the State of West Virginia, and (e) an opinion of local counsel to the Credit Parties in the State of Oklahoma, in each case, in form and substance acceptable to the Administrative Agent and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Administrative Agent shall have received (i) customary UCC search results reflecting no prior Liens encumbering the Properties of the Parent, the General Partner, the Borrower and its Restricted Subsidiaries for each jurisdiction requested by the Administrative Agent other than those being assigned or released on or prior to the Effective Date or Liens permitted by <u>Section</u> <u>9.03</u> and (ii) evidence satisfactory to it (including mortgage releases and UCC-3 financing statement terminations) that all Liens (other than Liens permitted under <u>Section</u> <u>9.03</u> but including all Liens securing the obligations under the Existing Note Purchase Agreement) on its Properties have been released or terminated, or will be released and terminated subject only to the filing of applicable terminations and releases, and that duly executed recordable releases and terminations in form and substance reasonably acceptable to the Administrative Agent with respect thereto have been obtained by the Borrower or its Subsidiaries and delivered to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Administrative Agent shall have received a certificate of a Responsible Officer of the Borrower certifying:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) that the representations and warranties set forth in <u>Article VII</u> are true and correct in all material respects on the Effective Date except to the extent any such representations and warranties (A) are expressly limited to an earlier date, in which case, on and as of Effective Date, such representations and warranties shall continue to be true and correct in all material respects as of such specified earlier date or (B) are already qualified by materiality, Material Adverse Effect or a similar qualification, in which case, such representations and warranties shall be true and correct in all respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that since December 31, 2025, there has been no event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) that, after giving effect to the Transactions on the Effective Date, the Borrower is in *pro forma* compliance with <u>Sections 9.01(a)</u> and <u>9.01(b)</u>, and setting forth reasonably detailed calculations demonstrating such compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) that all approvals of any Governmental Authority or any other third Person required in connection with the Transactions have been obtained and are in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) that, after giving effect to the Transactions on the Effective Date, no Default or Event of Default shall have occurred and be continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) that prior to giving effect to the Note Purchase Agreement Amendment, notes under the Existing Note Purchase Agreement have been, or substantially contemporaneously with the proceeds of the initial Borrowings on the Effective Date and the Transactions to occur on the Effective Date are being, prepaid in an aggregate principal amount such that, after giving effect to such prepayment, the aggregate principal amount of notes under the Existing Note Purchase Agreement is no greater than $75,000,000 (the "<u>Existing Notes Prepayment</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) after giving effect to the Transactions contemplated to occur on the Effective Date, the Borrower and its Restricted Subsidiaries shall have no Debt for borrowed money other than (A) the Loans and other extensions of credit hereunder, (B) the Second Lien Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Administrative Agent shall have received (i) a fully executed copy of (A) the Note Purchase Agreement Amendment, the Second Lien Note Purchase Agreement, each other material Second Lien Note Document, and in each case, including all amendments, restatements, supplements and modifications thereto prior to the Effective Date, (B) the Second Lien Intercreditor Agreement, and (C) amendments to or amendments and restatements of existing Collateral Documents (as defined in the Existing Note Purchase Agreement) pursuant to which the Borrower and the Guarantors grant second priority Liens and security interests in favor of the Second Lien Agent to secure the Second Lien Obligations, which, in the case of each of the foregoing clauses (A), (B) and (C), shall be in form and substance satisfactory to the Administrative Agent and the Lenders, and (ii) evidence satisfactory to it that (A) the "Effective Date" under the Note Purchase Agreement Amendment has occurred (or shall occur substantially concurrently with the Effective Date), and (B) the outstanding principal amount of Second Lien Notes does not exceed $75,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Administrative Agent shall have received from the Credit Parties at least three (3) Business Days prior to the Effective Date, to the extent reasonably requested in writing by the Lenders or the Administrative Agent at least ten (10) Business Days prior to the Effective Date, (i) all documentation and other information that they reasonably determine is required by regulatory authorities under applicable "know your customer" and Anti-Money Laundering Laws, including the Patriot Act and the Beneficial Ownership Regulation and (ii) a Beneficial Ownership Certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Effective Date Initial Public Offering shall have been consummated substantially simultaneously with the Effective Date in accordance with the Registration Statement and in compliance with applicable law, the Parent has received gross proceeds in respect of the

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Effective Date Initial Public Offering of at least $150,000,000, (ii) the Parent has contributed to the Borrower, and the Borrower has received from the Parent, an amount equal to $150,000,000 of such proceeds, and (iii) and the Administrative Agent shall have received evidence satisfactory to it that the Parent has consummated the Effective Date Initial Public Offering and contributed the proceeds to the Borrower as described in the foregoing clauses (i) and (ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Borrower shall have (i) entered into Swap Agreements in the form of (x) swaps, (y) two-way collars and/or (z) costless collars with only one floor, with one or more Approved Counterparties; hedging minimum notional volumes of at least 50% of the reasonably projected production of crude oil and natural gas, each calculated separately from the Borrower and its Restricted Subsidiaries' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the Initial Reserve Report) for each full calendar month during the period from and including the Effective to and including the 24th full calendar month following the Effective Date (the "<u>Effective Date Required Swap Agreements</u>") and (ii) provided evidence to the Administrative Agent, in form and substance reasonably satisfactory to the Administrative Agent, that the Borrower has entered into the Effective Date Required Swap Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) After giving effect to the Transactions on the Effective Date, Liquidity shall be at least the greater of (i) $30,000,000 and 20% of the Borrowing Base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Administrative Agent shall have received a true, correct and complete copy of the Initial Reserve Report accompanied by the third party audit letter with respect thereto and a Reserve Report Certificate covering the matters described in <u>Section</u> <u>8.11(c)</u> (other than <u>Section</u> <u>8.11(c)(iv)</u> and <u>Section</u> <u>8.11(c)(v)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Administrative Agent shall have received a solvency certificate from a Financial Officer of the Borrower substantially in the form of <u>Exhibit</u> <u>M</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) The Administrative Agent shall have received (i) an unaudited pro forma balance sheet of the Parent and its Consolidated Subsidiaries as of the Effective Date after giving effect to the Transactions, (ii) consolidated monthly financial projections and budgets for the Borrower and its Restricted Subsidiaries for the then-current fiscal year, (iii) audited consolidated balance sheet and related statements of operations, shareholders' equity and cash flows of the Borrower as of and for the fiscal year ended December 31, 2025 and (iv) the unaudited statements of income and cash flows of the Borrower and its Consolidated Subsidiaries as of and for the fiscal quarter and March 31, 2026 and the then elapsed portion of the fiscal year (collectively, the "<u>Initial Financial Statements</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) The Administrative Agent shall have received updated Schedules to this Agreement (the "<u>Updated Schedules</u>") reflecting the occurrence of the Effective Date which Updated Schedules shall be in form and substance satisfactory to the Administrative Agent (it being understood and agreed that the Updated Schedules shall be deemed to amend and restate in their entirety the corresponding Schedules delivered on the Signing Date, and all representations and warranties made by the Borrower and the other Loan Parties in this Agreement that refer to or are qualified by reference to the Schedules shall, from and after the Effective Date, be deemed to refer to the Updated Schedules).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The Administrative Agent shall (i) be reasonably satisfied with the terms and conditions of the Citadel Permitted Existing Trades and the Citadel Permitted Existing Trade Documents, (ii) the Citadel Permitted Existing Trades and the Citadel Permitted Existing Trade Documents shall have been transferred by novation by Parent, as transferor, to the Borrower, as transferee, pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent, and (iii) have received a certificate of a Responsible Officer of the Borrower certifying that attached thereto is a true, complete and correct copy of each Citadel Permitted Existing Trade Document (in each case, together with all amendments or supplements thereto, and all agreements that have the effect of amending, modifying or supplementing any Citadel Permitted Existing Trade Document through the Effective Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Administrative Agent shall have received certificates of insurance coverage of the Borrower and the Restricted Subsidiaries evidencing that Borrower and the Restricted Subsidiaries are carrying insurance in accordance with <u>Section</u> <u>7.12</u>.

Without limiting the generality of the provisions of <u>Section</u> <u>11.04</u>, for purposes of determining compliance with the conditions specified in this <u>Section</u> <u>6.02</u>, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required under this <u>Section</u> <u>6.02</u> to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the Effective Date specifying its objection thereto. The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to Section 12.02) at or prior to 6:00 p.m., Houston, Texas time, on August 8, 2026 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time). The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding.

**Section 6.03 <u>Each Credit Event</u>**. The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of the Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default, Event of Default, or Borrowing Base Deficiency shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The representations and warranties of the Parent, the General Partner, the Borrower and the Restricted Subsidiaries set forth in this Agreement and in the other Loan Documents shall be true and correct in all material respects on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, except to the extent any such representations and warranties (i) are expressly limited to an earlier date, in which case, on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, such representations and warranties shall continue to be true and correct in all material respects as of such specified earlier date, or (ii) are already qualified by materiality, Material Adverse Effect or a similar qualification, in which case under this <u>clause</u> <u>(ii)</u>, such representations and warranties shall be true and correct in all respects.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The receipt by the Administrative Agent of a Borrowing Request in accordance with <u>Section</u> <u>2.03</u> or a request for a Letter of Credit (or an amendment, extension or renewal of a Letter of Credit) in accordance with <u>Section</u> <u>2.08(b)</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With respect to any Borrowing or the issuance, amendment, renewal or extension of any Letter of Credit, as applicable, at the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, the Consolidated Cash Balance shall not exceed the Consolidated Cash Balance Threshold.

Each request for a Borrowing and each request for the issuance, amendment, renewal or extension of any Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in <u>Section</u> <u>6.03(a)</u>, <u>Section</u> <u>6.03(b)</u> and <u>Section</u> <u>6.03(d)</u>.

**ARTICLE VII** 

**REPRESENTATIONS AND WARRANTIES** 

The Borrower (and each of the Parent and the General Partner solely with respect to <u>Sections 7.01</u>, <u>7.02</u>, <u>7.03</u>, <u>7.04(b)</u>, <u>7.04(c)</u>, <u>7.05</u>, <u>7.07(a)</u>, <u>7.08</u>, <u>7.09</u>, <u>7.11</u>, <u>7.12</u>, <u>7.19</u>, <u>7.20</u>, <u>7.21</u>, <u>7.23</u>, <u>7.24</u>, <u>7.25</u> and <u>7.26</u>) represents and warrants to the Lenders on the Signing Date, the Effective Date (*provided* that any representation and warranty made with respect to the Effective Date shall not be deemed made until the occurrence of the Effective Date) and on each other date specified in this Agreement for representations and warranties to be made or deemed made that:

**Section 7.01 <u>Organization; Powers</u>**. Each of the Borrower, the Parent, the General Partner and each of the Restricted Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority, and has all material governmental licenses, authorizations, consents and approvals necessary, to own its assets and to carry on its business as now conducted, and is qualified to do business in, and is in good standing (if applicable) in, every jurisdiction where such qualification is required by Governmental Requirement, except where failure to have such power, authority, licenses, authorizations, consents, approvals and qualifications or be in good standing could not reasonably be expected to have a Material Adverse Effect.

**Section 7.02 <u>Authority; Enforceability</u>**. The Transactions are within the Parent's, the General Partner's, the Borrower's and each Restricted Subsidiary's corporate, limited liability company or partnership powers and have been duly authorized by all necessary corporate, limited liability company or partnership action, as applicable, and, if required, stockholder, member or manager action (including, without limitation, any action required to be taken by any class of directors or managers of the Parent, the General Partner, the Borrower or any other Person, whether interested or disinterested, in order to ensure the due authorization of the Transactions). Each Loan Document to which the Parent, the General Partner, the Borrower and each Restricted Subsidiary is a party that has been executed and delivered by the Parent, the General Partner, the Borrower and such Restricted Subsidiary as of the Signing Date and the Effective Date has been duly executed and delivered by the Parent, the General Partner, the Borrower and such Restricted Subsidiary and constitutes a legal, valid and binding obligation of the Parent, the General Partner,

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the Borrower and such Restricted Subsidiary, as applicable, each enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

**Section 7.04 <u>Financial Condition; No Material Adverse Effect</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the Effective Date, the Borrower has furnished to the Lenders the Initial Financial Statements. Such financial statements present fairly in all material respects the financial position and results of operations and cash flows of the Borrower and its Consolidated Restricted Subsidiaries as of such dates and for such periods in accordance with GAAP, and do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements contained therein not misleading at such time, subject to year-end audit adjustments and the absence of footnotes in the case of the unaudited quarterly financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Since December 31, 2025, (i) there has been no event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect, and (ii) the business of the Parent, the General Partner, the Borrower and its Restricted Subsidiaries has been conducted only in the ordinary course, in all material respects, consistent with past business practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) None of the Parent, the General Partner, the Borrower nor any Restricted Subsidiary (as in existence at the time of the Effective Date) has on the Effective Date any material Debt (including Disqualified Capital Stock) or any contingent liabilities off-balance sheet liabilities or partnerships, material liabilities for Taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments, except as permitted under this Agreement and adequate reserves for such items have been made in accordance with GAAP.

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**Section 7.05 <u>Litigation</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth on <u>Schedule</u> <u>7.05</u>, there are no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Parent, the General Partner or the Borrower, threatened in writing against the Parent, the General Partner, the Borrower or any Restricted Subsidiary not fully covered by insurance (except for normal deductibles and customary policy exclusions) that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in liability in excess of $5,000,000 or a Material Adverse Effect or that involve any Loan Document or the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Since the Signing Date and the Effective Date, there has been no change in the status of the matters disclosed in <u>Schedule</u> <u>7.05</u> that, individually or in the aggregate, has resulted in, or could reasonably be expected to result in, a Material Adverse Effect.

**Section 7.06 <u>Environmental Matters</u>**. Except for such matters that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower and its Restricted Subsidiaries and each of their respective Properties and respective operations thereon (i) are and for the past three (3) years have been in compliance with all applicable Environmental Laws; and (ii) have not received written notice of any conditions, events, or incidents in connection with any operation at such Properties that would reasonably be expected to interfere with or prevent such compliance or continued compliance with Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower and its Restricted Subsidiaries have obtained all Environmental Permits required for their respective operations and respective ownership of their Properties as currently owned and operated, with all such Environmental Permits being currently in full force and effect, and none of Borrower or its Restricted Subsidiaries has received any written notice or otherwise has knowledge that any such existing Environmental Permit will be revoked or that any application for any new Environmental Permit or renewal of any existing Environmental Permit will be denied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no claims, demands, suits, orders, inquiries, or proceedings concerning any violation of, or any liability (including as a potentially responsible party) under, any applicable Environmental Laws that is pending or, to Borrower's knowledge, threatened against the Borrower or any Restricted Subsidiary or, to the knowledge of Borrower, in relation to any of their respective Properties or as a result of any operations at such Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the knowledge of Borrower, none of the Properties of the Borrower or any Restricted Subsidiary contain or have contained: (i) underground storage tanks requiring an Environmental Permit pursuant to Environmental Law; (ii) asbestos-containing materials requiring removal pursuant to Environmental Law; (iii) landfills or dumps requiring an Environmental Permit pursuant to Environmental Law; (iv) hazardous waste management units as defined pursuant to RCRA or any comparable state law; or (v) sites on or nominated for the National Priority List promulgated pursuant to CERCLA or any state remedial priority list promulgated or published pursuant to any comparable state law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There has been no Release or, to the Borrower's knowledge, threatened Release of Hazardous Materials by Borrower or, to Borrower's knowledge, any third party, at, on, under or from the Borrower's or any Restricted Subsidiary's Properties in violation of, or that has given or could reasonably be expected to give rise to liability under, Environmental Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No Borrower or Restricted Subsidiary has failed to file any notice required of such Persons under applicable Environmental Law related to a reportable Release of Hazardous Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither the Borrower nor any Restricted Subsidiary has received any written notice asserting an alleged liability or obligation of the Borrower or any Restricted Subsidiary under any applicable Environmental Laws with respect to the investigation, remediation, abatement, removal, or monitoring of any Hazardous Materials at, under, or Released or threatened to be Released from the Borrower's or any Restricted Subsidiary's Properties or any real properties offsite the Borrower's or any Restricted Subsidiary's Properties, including a letter or request for information under Section 104(e) of CERCLA (42 U.S.C. § 9604) or any comparable state law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) There has been no exposure of any Person or Property to any Hazardous Materials as a result of or in connection with the Borrower or any Restricted Subsidiary's operations of their respective businesses at any of the Borrower's or its Restricted Subsidiaries' Properties that could reasonably be expected to form the basis for a claim for damages or compensation for which the Borrower or any Restricted Subsidiary would be liable under Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower and its Restricted Subsidiaries have made available to the Lenders complete and correct copies of all material environmental site assessment reports, investigations, studies, analyses, and correspondence on environmental matters relating to any alleged non-compliance with or liability under Environmental Laws requested by the Administrative Agent that are in any of the Borrower's or the Restricted Subsidiaries' possession or control and relating to their respective Properties or operations thereon.

**Section 7.07 <u>Compliance with the Laws and Agreements; No Defaults or Borrowing Base Deficiency</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Parent, the General Partner, the Borrower and each Restricted Subsidiary is in compliance with all Governmental Requirements applicable to it or its Property and all agreements and other instruments binding upon it or its Property, and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Default, Event of Default or Borrowing Base Deficiency has occurred and is continuing.

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**Section 7.08 <u>Investment Company Act</u>**. None of the Parent, the General Partner, the Borrower or any Restricted Subsidiary is required to be registered as an "investment company" under the Investment Company Act of 1940, as amended.

**Section 7.09 <u>Taxes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Parent, the General Partner, the Borrower and its Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes levied or imposed upon it or its properties, income or assets otherwise due and payable, except (i) Taxes that are being contested in good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable, has set aside on its books adequate reserves in accordance with GAAP or (ii) to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The charges, accruals and reserves on the books of the Parent, the General Partner, the Borrower and its Restricted Subsidiaries in respect of Taxes and other governmental charges are, in the reasonable opinion of the Parent, the General Partner, and the Borrower, adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Tax Lien (other than Tax Liens that constitute Excepted Liens) has been filed.

**Section 7.10 <u>ERISA</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except for such matters that, individually or in the aggregate, could not reasonably be expected to have Material Adverse Effect :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower, its Subsidiaries and each ERISA Affiliate have complied with ERISA and, where applicable, the Code and other applicable laws regarding each Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each Plan (other than Multiemployer Plan) is, and has been, established and maintained in substantial compliance with its terms, ERISA and, where applicable, the Code and other applicable laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no act, omission or transaction has occurred with respect to a Plan which could reasonably be expected to result in imposition on the Borrower, or any Subsidiary (whether directly or indirectly) of (A) either a civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502 of ERISA or a tax imposed pursuant to Chapter 43 of Subtitle D of the Code or (B) breach of fiduciary duty liability damages under Section 409 of ERISA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) full payment when due has been made of all amounts which the Borrower, its Subsidiaries or any ERISA Affiliate is required under the terms of each Plan or applicable law to have paid as contributions to such Plan as of the Signing Date and the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no ERISA Event has occurred or is reasonably expected to occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) neither the Borrower, nor its Subsidiaries sponsors, maintains, or contributes to an employee welfare benefit plan, as defined in Section 3(1) of ERISA that provides benefits to former employees of such entities other than as required by applicable law and that may not be terminated by the Borrower, a Subsidiary or any ERISA Affiliate in its sole discretion at any time without liability; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) neither the Borrower, its Subsidiaries nor any ERISA Affiliate sponsors, maintains or contributes to, or has at any time during the current calendar year or the six calendar years preceding the Signing Date and the Effective Date sponsored, maintained or contributed to, any employee pension benefit plan, as defined in Section 3(2) of ERISA, that is subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Credit Party satisfies an exception set forth in 29 C.F.R. Section 2510.3-101 (as modified by Section 3(42) of ERISA) so that its underlying assets do not constitute assets of a Benefit Plan and the Transactions are neither prohibited transactions (as defined in Section 406 of ERISA or Section 4975 of the Code) nor in violation of any state statutes, applicable to a Credit Party that regulate investments of, and fiduciary obligations with respect to, governmental plans, that are similar to the provisions of Section 406 of ERISA or Section 4975 of the Code.

**Section 7.11 <u>Disclosure; No Material Misstatements</u>**. Each of the Parent, the General Partner and the Borrower has disclosed or made available to the Administrative Agent and the Lenders all agreements, instruments and corporate or other restrictions to which it or any of the Restricted Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. None of the other reports, financial statements, certificates or other factual information furnished by or on behalf of the Parent, the General Partner, the Borrower or any Restricted Subsidiary in writing to the Administrative Agent or any Lender or any of their Affiliates in connection with the negotiation of this Agreement or any other Loan Document or delivered hereunder or under any other Loan Document (as modified or supplemented by other information so furnished), taken as a whole, contains any untrue statement of material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading as of the date made or deemed made; *provided* that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed by the Borrower to be reasonable at the time it being understood that (i) any such projected financial information is merely a prediction as to future events and it's not to be viewed as fact, (ii) such projected financial information is subject to significant uncertainties and contingencies, many of which are beyond the control of the Borrower or any of its Subsidiaries and (iii) no assurance can be given that any particular projections will be realized and that actual results during the period or periods covered by any such projections may differ significantly from the projected results and such differences may be material and that the Borrower makes no representation that such projections will be realized. There are no statements or conclusions in any Reserve Report which are based upon or include materially misleading information or fail to take into account material information regarding the matters reported therein, it being understood that projections concerning volumes attributable to the Oil and Gas Properties of the Borrower and its Restricted Subsidiaries and production and cost estimates contained in each Reserve Report are necessarily based upon professional opinions, estimates and projections and that the Borrower and its Restricted Subsidiaries do not warrant that such opinions, estimates and projections will ultimately prove to have been accurate.

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**Section 7.12 <u>Insurance</u>**. Each of the Parent, the General Partner and the Borrower has, and has caused all of the Restricted Subsidiaries to have with respect to its business and properties, (a) all insurance policies sufficient for the compliance by each of them with all material Governmental Requirements and all material agreements and (b) insurance coverage in at least amounts and against such risk (including, without limitation, public liability) that are customarily insured against by business entities similarly situated and engaged in the same or a similar business for the assets and operations of the Parent, the General Partner, the Borrower and its Restricted Subsidiaries (as determined in the reasonable business judgment of the senior management of the Borrower). The Administrative Agent and the Lenders have been named as additional insureds in respect of such liability insurance policies and the Administrative Agent has been named as lender loss payee and mortgagee with respect to Property loss insurance.

**Section 7.13 <u>Subsidiaries</u>**. Except as set forth on <u>Schedule</u> <u>7.13</u> or as disclosed in writing after the Signing Date and the Effective Date to the Administrative Agent (which shall promptly furnish a copy to the Lenders and which shall be a supplement to <u>Schedule</u> <u>7.13</u>), the Borrower has no Subsidiaries. <u>Schedule</u> <u>7.13</u> (as supplemented as contemplated by this <u>Section</u> <u>7.13</u>) identifies each Subsidiary as either a Restricted Subsidiary or an Unrestricted Subsidiary. The Borrower has no Foreign Subsidiaries. Each Subsidiary is a Wholly-Owned Subsidiary.

**Section 7.14 <u>Properties; Defensible Title</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except for Immaterial Title Deficiencies, each of the Borrower and the Restricted Subsidiaries has good and defensible title to the Oil and Gas Properties evaluated in the most recently delivered Reserve Report (except for those Oil and Gas Properties that have been Disposed of since the date of such Reserve Report in accordance with this Agreement or leases which have expired in accordance with their terms) and valid title to all its material personal Properties, in each case, free and clear of all Liens except Liens permitted by <u>Section</u> <u>9.03</u>. After giving full effect to the Excepted Liens, the Borrower or the Restricted Subsidiary specified as the owner owns the net interests in production attributable to the Hydrocarbon Interests as reflected in the most recently delivered Reserve Report (except for those Oil and Gas Properties that have been Disposed of since the date of such Reserve Report in accordance with this Agreement or leases which have expired in accordance with their terms), and the ownership of such Properties shall not in the aggregate in any material respect obligate the Borrower or such Restricted Subsidiary to bear the costs and expenses relating to the maintenance, development and operations of each such Property in an amount in excess of the working interest of each Property set forth in the most recently delivered Reserve Report that is not offset by a corresponding proportionate increase in the Borrower's or such Restricted Subsidiary's net revenue interest in such Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All material leases and agreements necessary for the conduct of the business of the Borrower and its Restricted Subsidiaries are valid and subsisting, in full force and effect, and there exists no default or event or circumstance which with the giving of notice or the passage of time or both would give rise to a default under any such lease or leases, which could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The rights and Properties presently owned, leased or licensed by the Borrower and its Restricted Subsidiaries including, without limitation, all easements and rights of way, include all rights and Properties necessary to permit the Borrower and its Restricted Subsidiaries to conduct their business as currently conducted, except to the extent any failure to have any such rights or Properties could not reasonably be expected to have a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All of the Properties of the Borrower and its Restricted Subsidiaries which are reasonably necessary for the operation of their businesses are in good working condition and are maintained in accordance with prudent business standards, except to the extent any failure to satisfy the foregoing could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Borrower and each Restricted Subsidiary owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by the Borrower and such Subsidiary does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. The Borrower and its Restricted Subsidiaries either own or have valid licenses or other rights to use all databases, geological data, geophysical data, engineering data, seismic data, maps, interpretations and other technical information used in their businesses as presently conducted, subject to the limitations contained in the agreements governing the use of the same, which limitations are customary for companies engaged in the business of the exploration and production of Hydrocarbons, with such exceptions as could not reasonably be expected to have a Material Adverse Effect.

**Section 7.15 <u>Maintenance of Properties</u>**. Except for such acts or failures to act as could not be reasonably expected to have a Material Adverse Effect, the Oil and Gas Properties with respect to which the Borrower and its Restricted Subsidiaries own any executive rights (and Properties unitized therewith) of the Borrower and its Restricted Subsidiaries have been maintained, operated and developed in a good and workmanlike manner and in conformity with all Governmental Requirements and in conformity with the provisions of all leases, subleases or other contracts comprising a part of the Hydrocarbon Interests and other contracts and agreements forming a part of the Oil and Gas Properties of the Borrower and its Restricted Subsidiaries. Specifically in connection with the foregoing, except for those as could not be reasonably expected to have a Material Adverse Effect, (a) no Oil and Gas Property of the Borrower or any Restricted Subsidiary is subject to having allowable production reduced below the full and regular allowable (including the maximum permissible tolerance) because of any overproduction (whether or not the same was permissible at the time) and (b) none of the wells comprising a part of the Oil and Gas Properties (or Properties unitized therewith) of the Borrower or any Restricted Subsidiary is deviated from the vertical more than the maximum permitted by Governmental Requirements, and such wells are, in fact, bottomed under and are producing from, and the well bores are wholly within, the Oil and Gas Properties (or in the case of wells located on Properties unitized therewith, such unitized Properties) of the Borrower or such Restricted Subsidiary. All pipelines, wells, gas processing plants, platforms and other material improvements, fixtures and equipment with respect to which the Borrower or any of its Restricted Subsidiaries own any executive rights and that are necessary to conduct normal operations are being, or, in the case of such pipelines, wells, gas processing plants, platforms and other material improvements, fixtures and equipment the maintenance of which is performed by a third-party operator, the Borrower is using its commercially reasonable efforts to cause such items to be, and to the Borrower's knowledge such items are maintained in a state adequate to conduct normal operations, and with respect to such of the foregoing which are operated by the Borrower or any of its Restricted Subsidiaries, in a manner consistent with the Borrower's or its Restricted Subsidiaries' past practices (other than those the failure of which to maintain in accordance with this <u>Section</u> <u>7.15</u> could not reasonably be expected to have a Material Adverse Effect).

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**Section 7.16 <u>Gas Imbalances; Prepayments</u>**. To the extent the Borrower or any of its Restricted Subsidiaries take Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, except as set forth on <u>Schedule</u> <u>7.16,</u> as of the Signing Date and the Effective Date, and thereafter either disclosed in writing to the Administrative Agent and the Lenders or included in the most recent Reserve Report Certificate, as of the date thereof, on a net basis there are no imbalances, take or pay or other prepayments which would require the Borrower or any of its Restricted Subsidiaries to deliver Hydrocarbons produced from their Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor other than imbalances, take-or-pay or other prepayments and balancing rights incurred in the ordinary course of business and which imbalances, take-or-pay, or other prepayments and balancing rights, in the aggregate, do not exceed $1,000,000.

**Section 7.17 <u>Marketing of Production</u>**. To the extent the Borrower or any of its Restricted Subsidiaries take Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, except for contracts listed and in effect on the Signing Date and the Effective Date on <u>Schedule</u> <u>7.17</u>, or hereafter either disclosed in writing to the Administrative Agent or included in the most recently delivered Reserve Report, as of the date thereof, (with respect to all of which contracts the Borrower represents that it or its Restricted Subsidiaries are receiving a price for all production sold thereunder which is computed substantially in accordance with the terms of the relevant contract), no material agreements exist which are not cancelable on 60 days' notice or less without penalty or detriment, for the sale of production from the Borrower's and its Restricted Subsidiaries' Hydrocarbons (including, calls on or other rights to purchase, production, whether or not the same are currently being exercised) that pertain to the sale of production at a fixed price and have a maturity or expiry date of longer than six (6) months from the date thereof or the date of delivery of such Reserve Report Certificate.

**Section 7.18 Swap Agreements and Qualified ECP Guarantor.** The most recently delivered report required to be delivered by the Borrower pursuant to <u>Section</u> <u>8.01(e)</u>, as of the date thereof, sets forth a true and complete list of all Swap Agreements of the Borrower and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark to market value thereof, all credit support agreements relating thereto (including any margin required or supplied) and the counterparty to each such agreement. The Borrower is a Qualified ECP Guarantor.

**Section 7.19 <u>Use of Loans and Letters of Credit</u>**. The proceeds of the Loans and the Letters of Credit shall be used (i) to provide working capital and for acquisitions of Oil and Gas Properties permitted hereunder, (ii) for general corporate purposes of the Borrower and its Restricted Subsidiaries and (iii) to pay fees and expenses incurred in connection with the Transactions. The Borrower and its Restricted Subsidiaries are not engaged principally, or as one of its or their important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). No part of the proceeds of any Loan or Letter of Credit will be used for any purpose which violates the provisions of Regulations T, U or X of the Board.

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**Section 7.20 <u>Solvency</u>**. After giving effect to the Transactions and each Borrowing made hereunder and each issuance, amendment, extension or renewal of any Letter of Credit hereunder, (a) the Borrower is Solvent and (b) the Parent, the General Partner, the Borrower and the other Credit Parties, on a consolidated basis, are Solvent.

**Section 7.21 <u>Anti-Corruption Laws, Sanctions and Patriot Act</u>**. Each of the Parent, the General Partner, and the Borrower has implemented and maintains in effect policies and procedures reasonably designed to promote and achieve compliance by the Borrower and its directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Parent, the General Partner, the Borrower, its Subsidiaries, and their respective directors, officers, employees and, to the Borrower's knowledge, agents are in compliance with all Anti-Corruption Laws, Anti-Money Laundering Laws, and applicable Sanctions and are not in violation of any laws prohibiting transactions involving proceeds of specified unlawful activity within the meaning of 18 U.S.C. § 1956. None of (a) the Parent, the General Partner, the Credit Parties or any of their respective directors, officers or employees, or (b) to the Borrower's direct knowledge, any agent of the Parent, the General Partner, the Credit Parties that will act in any capacity in connection with the credit facility established hereby, is a Sanctioned Person. No Borrowing or Letter of Credit, direct use of proceeds or other transaction by the Parent, the General Partner, and/or the Credit Parties contemplated by this Agreement will violate any Anti-Corruption Law or applicable Sanctions.

**Section 7.22 <u>Affected Financial Institution</u>**. No Credit Party is an Affected Financial Institution.

**Section 7.23 <u>Security Instruments</u>**. As of the Effective Date, the Security Instruments are effective to create in favor of the Administrative Agent, for the benefit of the Secured Parties, a legal, valid and enforceable security interest in the Mortgaged Properties and proceeds thereof, subject, in the case of enforceability, to applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally and to general principles of equity and principles of good faith and fair dealing. The Obligations are and shall be at all times secured by legal, valid and enforceable, perfected first priority Liens in favor of the Administrative Agent, covering and encumbering the Collateral (*provided* that Liens permitted under <u>Section</u> <u>9.03</u> may exist).

**Section 7.24 <u>Senior Indebtedness Status</u>**. The Obligations of each Credit Party under this Agreement and each of the other Loan Documents ranks and shall continue to rank at least senior in priority of payment to all subordinated Debt and all senior unsecured Debt of each such Person and is designated as "Senior Indebtedness" under all instruments and documents, now or in the future, relating to all subordinated Debt and all senior unsecured Debt of such Person.

**Section 7.25 <u>Beneficial Ownership</u>**. As of the Signing Date and the Effective Date, the information included in each Beneficial Ownership Certification, if any, is true and correct in all material respects.

**Section 7.26 <u>Outbound Investment Rules</u>**. None of the Parent, the General Partner, the Borrower or any of its Subsidiaries is a 'covered foreign person' as that term is used in the Outbound Investment Rules. None of the Parent, the General Partner, the Borrower or any of its Subsidiaries currently engages, or has any present intention to engage in the future, directly or

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indirectly, in (i) a "covered activity" or a "covered transaction", as each such term is defined in the Outbound Investment Rules, (ii) any activity or transaction that would constitute a "covered activity" or a "covered transaction", as each such term is defined in the Outbound Investment Rules, if the Parent, the General Partner and the Borrower were a U.S. Person or (iii) any other activity that would cause the Administrative Agent or the Lenders to be in violation of the Outbound Investment Rules or cause the Administrative Agent or the Lenders to be legally prohibited by the Outbound Investment Rules from performing under this Agreement.

**ARTICLE VIII** 

**AFFIRMATIVE COVENANTS** 

On and after the Effective Date, until the Release Date, the Borrower (and (i) each of the Parent and the General Partner solely with respect to <u>Sections 8.03</u>, <u>8.04</u>, <u>8.06</u>, <u>8.08</u>, <u>8.10</u>, <u>8.13(c)</u>, <u>8.18</u>, <u>8.21</u> and <u>8.23</u> and (ii) the Parent with respect to <u>Sections 8.01(a)</u>, <u>8.01(b)</u>, <u>8.01(c)</u> and <u>8.22</u>), for itself and for each of its Restricted Subsidiaries, covenants and agrees with the Lenders that:

**Section 8.01 <u>Financial Statements; Other Information</u>**. The Borrower (and the Parent, with respect to <u>Sections 8.01(a)</u>, <u>8.01(b)</u> and <u>8.01(c)</u>) will furnish to the Administrative Agent and each Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Annual Financial Statements</u>. As soon as available and in any event no later than the date on which such financial statements are required to be filed with the SEC (after giving effect to any permitted extensions) (but in any event on or before the date that is ninety (90) days after the end of each such fiscal year of the Borrower), beginning with the fiscal year ending December 31, 2026, the audited consolidated balance sheet and related statements of operations, shareholders' equity and cash flows of the Borrower as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year (except with respect to the audited financial statements as of and for the period ending December 31, 2026), all reported on by independent public accountants of recognized national standing (without a "going concern" or like qualification or exception and without any qualification or exception as to the scope of such audit other than a "going concern" or other qualification that results solely from the Maturity Date being scheduled to occur within one year from the time such opinion is delivered) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied (other than changes pursuant to <u>Section</u> <u>1.05</u>). Notwithstanding the foregoing, the obligations set forth in this <u>Section</u> <u>8.01(a)</u> may be satisfied with respect to the delivery of financial statements of the Borrower and its Consolidated Subsidiaries by furnishing to the Administrative Agent and each Lender: (A) the Parent's audited consolidated balance sheet and related statements of operations, stockholders' equity and cash flows as of the end of and for such year, setting forth in each case, where available, in comparative form the figures for the previous fiscal year, all reported on by independent public accountants of recognized national standing (without a "going concern" or like qualification or exception and without any qualification or exception as to the scope of such audit other than a "going concern" or other qualification that results solely from the Maturity Date being scheduled to occur within one year from the time such opinion is delivered) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of such Person and its consolidated subsidiaries on a consolidated basis in accordance with GAAP

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consistently applied (other than changes pursuant to <u>Section</u> <u>1.05</u>) and (B) concurrently with the financial information required by this <u>clause (a)</u>, consolidating information that explains in reasonable detail the differences between the information relating to the Parent and its Consolidated Subsidiaries, on the one hand, and the information relating to the Borrower and its Consolidated Restricted Subsidiaries, on the other hand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Quarterly Financial Statements</u>. As soon as available and in any event no later than the date on which such financial statements are required to be filed with the SEC (after giving effect to any permitted extensions) with respect to each of the first three quarterly accounting periods in each fiscal year of the Borrower and the Parent (but in any event on or before the date that is sixty (60) days after the end of each such quarterly accounting period), commencing with the fiscal quarter ending June 30, 2026, (i) the consolidated balance sheet and related statements of operations, shareholders' equity and cash flows of the Parent and (ii) the consolidated balance sheet and related statement of operations partners' equity and cash flows of the Borrower, in each case, as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year (except for any fiscal year or fiscal quarters ending on or prior to December 31, 2026 for which no comparisons will be delivered), in each case, all certified by one of its Financial Officers as presenting fairly in all material respects the financial position and results of operations of (A) in the case of the financial statements described in clause (i) above, the Parent and its Consolidated Subsidiaries and (b) in the case of the financial statements described in clause (ii) above, the Borrower and its Consolidated Subsidiaries, in each case, on a consolidated basis in accordance with GAAP consistently applied (other than changes pursuant to <u>Section</u> <u>1.05</u>), subject to normal year-end adjustments and the absence of footnotes. Notwithstanding the foregoing, the obligations set forth in this <u>Section</u> <u>8.01(b)</u> may be satisfied with respect to the delivery of financial statements of the Borrower and its Consolidated Restricted Subsidiaries by furnishing to the Administrative Agent and each Lender: (A) the Parent's consolidated balance sheet and related statements of operations, stockholders' equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Parent and its consolidated subsidiaries on a consolidated basis in accordance with GAAP consistently applied (other than changes pursuant to <u>Section</u> <u>1.05</u>), subject to normal year-end audit adjustments and the absence of footnotes, and (B) concurrently with the financial information required by this <u>clause (b)</u>, consolidating information that explains in reasonable detail the differences between the information relating to Parent and its Consolidated Subsidiaries, on the one hand, and the information relating to the Borrower and its Consolidated Restricted Subsidiaries, on the other hand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificate of Financial Officer – Compliance</u>. Concurrently with any delivery of financial statements under <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u>, a certificate of a Financial Officer of each of the Borrower and the Parent in substantially the form of <u>Exhibit</u> <u>D</u> hereto (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with <u>Section</u> <u>9.01</u>, (iii) stating whether any change

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in GAAP or in the application thereof has occurred since the Effective Date and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate, and (iv) listing each Restricted Subsidiary and specifying whether such Restricted Subsidiary is or is not a Guarantor (and (A) specifying the identity of each Immaterial Subsidiary and each Material Subsidiary as of the end of such fiscal quarter or fiscal year, as applicable (and including reasonable detail, in form and substance satisfactory to the Administrative Agent, with respect thereto) and (B) if necessary, designating sufficient additional Subsidiaries as Material Subsidiaries so as to comply with the definition of "Material Subsidiary").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Certificate of Financial Officer – Consolidating Information</u>. If, at any time, all of the Consolidated Subsidiaries of the Borrower are not Consolidated Restricted Subsidiaries, then concurrently with any delivery of financial statements under <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u>, a certificate of a Financial Officer setting forth consolidating spreadsheets that show all Consolidated Unrestricted Subsidiaries and the eliminating entries, in such form as would be presentable to the auditors of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certificate of Financial Officer – Swap Agreements</u>. Concurrently with any delivery of financial statements under <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u>, a certificate of a Financial Officer (each, a "<u>Swap Agreement Certificate</u>"), in form and substance satisfactory to the Administrative Agent, setting forth (i) as of a recent date, a true and complete list of all Swap Agreements of the Borrower and each Restricted Subsidiary, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark-to-market value therefor, any margin required or supplied under any credit support document, and the counterparty to each such agreement, (ii) reasonably detailed calculations of the reasonably anticipated forecasted production of crude oil and natural gas calculated separately, from the Oil and Gas Properties of the Borrower and the Restricted Subsidiaries for each month during the immediately succeeding twelve-month period and (iii) reasonably detailed calculations setting forth the Borrower's compliance with <u>Section</u> <u>9.14(b)</u> for the most recent Test Quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Business and Financial Plan</u>. On or before the date that is sixty (60) days after the end of each fiscal year of the Borrower, consolidated quarterly financial projections and budgets for the Borrower and its Restricted Subsidiaries for the then-current fiscal year, which shall be in form and detail reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Certificate of Insurer – Insurance Coverage</u>. Concurrently with any delivery of financial statements under <u>Section</u> <u>8.01(a)</u>, a certificate of insurance coverage from each insurer with respect to the insurance required by <u>Section</u> <u>8.06</u>, in form and substance reasonably satisfactory to the Administrative Agent, and, if requested by the Administrative Agent or any Lender, all copies of the applicable policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Other Accounting Reports</u>. Promptly upon receipt thereof, a copy of each other report or letter submitted to the Parent, the General Partner, the Borrower or any of its Subsidiaries by independent accountants (other than customary and standard correspondence) in connection with any annual, interim or special audit made by them of the books of the Borrower or any such Subsidiary, and a copy of any response by the Parent, the General Partner, the Borrower or any such Subsidiary, or the board of directors (or comparable governing body) of the Borrower or any such Subsidiary, to such letter or report.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>List of Operators</u>. If requested by the Administrative Agent, concurrently with the delivery of any Reserve Report to the Administrative Agent under <u>Section</u> <u>8.11(a)</u>, a list of all Persons operating the Borrower's or any Restricted Subsidiaries' Oil and Gas Properties which account for greater than 10% of the revenues resulting from the sale of all Hydrocarbons from the Borrower's or any Restricted Subsidiaries' Oil and Gas Properties during the most recently ended fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Notice of Sales of Oil and Gas Properties and Termination of Swap Agreements</u>. In the event the Borrower or any Restricted Subsidiary intends to Dispose of any Oil and Gas Properties (other than Hydrocarbons in the ordinary course of business) or any Equity Interests in any Restricted Subsidiary in accordance with <u>Section</u> <u>9.09(d)</u>, in each case, that would result in a Borrowing Base reduction pursuant to <u>Section</u> <u>2.07(e)</u>, written notice of such disposition no later than two (2) Business Days prior to such disposition (or such later date as the Administrative Agent may agree in its sole discretion), the price thereof and any other details thereof reasonably requested by the Administrative Agent. In the event that the Borrower or any Subsidiary receives any notice of early termination of any material Swap Agreement to which it is a party from any of its counterparties, or any material Swap Agreement to which the Borrower or any Subsidiary is a party is terminated, prompt written notice of the receipt of such early termination notice or such termination, as the case may be, together with a reasonably detailed description thereof and any other details thereof reasonably requested by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Patriot Act and Beneficial Ownership</u>. Promptly following any request therefor, information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable "know your customer" requirements under the Patriot Act, the Beneficial Ownership Regulation or other applicable anti-money laundering laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Information Regarding the Parent, the General Partner, the Borrower and Guarantors</u>. Prompt written notice (and in any event within three (3) Business Days thereafter or such later date as the Administrative Agent may agree in its sole discretion) of any change (i) in the Parent's, the General Partner's, the Borrower's or any Guarantor's organizational name, (ii) in the location of the Parent's, the General Partner's, the Borrower's or any Guarantor's chief executive office or principal place of business, (iii) in the Parent's, the General Partner's, the Borrower's or any Guarantor's identity or organizational structure or in the jurisdiction in which such Person is incorporated or formed, (iv) in the Parent's, the General Partner's, the Borrower's or any Guarantor's organizational identification number in such jurisdiction of organization, and (v) in the Parent's, the General Partner's, the Borrower's or any Guarantor's federal taxpayer identification number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Production Report and Lease Operating Statements</u>. Concurrently with any delivery of financial statements under <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b)</u>, a report setting forth, for each month during the 12-month period ending on the last day of such fiscal quarter, (i) the volume of production and sales attributable to production (and the prices at which such sales were made and the revenues derived from such sales) from the Oil and Gas Properties and (ii) the ad valorem, severance and production taxes and lease operating expenses attributable to the Oil and Gas Properties and setting forth the operator of record for the Oil and Gas Properties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Notices of Certain Changes</u>. Promptly, but in any event within three (3) Business Days after the execution thereof (or such later date as the Administrative Agent may agree in its sole discretion), copies of any amendment, modification or supplement to the certificate or articles of incorporation or formation, bylaws, certificate or articles of organization, regulations or limited liability company agreement, any preferred stock designation or any other organizational document of the Parent, the General Partner, the Borrower or any Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Incurrence of Permitted Senior Notes</u>. (i) In the event the Borrower or any Restricted Subsidiary intends to incur any Permitted Senior Notes in reliance on <u>Section</u> <u>9.02(j)</u>, at least five (5) Business Days' (or such shorter notice as the Administrative Agent may agree in its sole discretion) prior written notice of such intended incurrence, the intended principal amount thereof and the anticipated date of closing and (ii) no later than five (5) Business Days after the offering of any Permitted Senior Notes, a copy of the preliminary offering memorandum (if any) and the final offering memorandum (if any) and any other material documents relating to such Permitted Senior Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Other Requested Information</u>. Promptly following any reasonable request therefor, such other information regarding the operations, business affairs and financial condition of the Borrower or any Subsidiary (including, without limitation, any Plan sponsored by the Borrower or a Subsidiary and any reports or other information required to be filed with respect thereto under the Code or under ERISA), or compliance with the terms of this Agreement or any other Loan Document, as the Administrative Agent or any Lender may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Amendments and Notices Under Material Instruments</u>. Promptly, but in any event within three (3) Business Days after the execution or actual receipt thereof (or such later date as the Administrative Agent may agree in its sole discretion), (i) copies of any amendment, modification or supplement to any of the Second Lien Note Documents, Senior Note Documents or any documentation governing Debt for borrowed money constituting Material Debt and (ii) copies of any financial statement, certificate, report, notice or other information furnished to or by the Parent, the General Partner, the Borrower or any Restricted Subsidiary pursuant to the terms of the Second Lien Note Documents, any Senior Note Documents, or any other Debt for borrowed money constituting Material Debt, in each case to the extent not otherwise required to be furnished to the Lenders pursuant to any other provision of this <u>Section</u> <u>8.01</u>.

Documents required to be delivered pursuant to <u>Section</u> <u>8.01(a)</u>, <u>(b)</u>, <u>(g)</u> or <u>(h)</u> may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Parent's or the Borrower's public website; or (ii) on which such documents are posted on the Borrower's behalf on an Internet or intranet website (including the SEC's EDGAR website), if any, to which each Lender and the Administrative Agent have been provided access (whether a commercial, third-party website or whether sponsored by the Administrative Agent).

**Section 8.02 <u>Notices of Material Events</u>**. Promptly (and in any event within three (3) Business Days) after a Responsible Officer of the Borrower or any Subsidiary obtains knowledge thereof, the Borrower will furnish to the Administrative Agent (which shall make such information available to the Lenders) written notice of the following:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the occurrence of any Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the filing or commencement of, or the threat in writing of, any action, suit, proceeding, investigation or arbitration by or before any arbitrator or Governmental Authority against or affecting the Borrower or any Restricted Subsidiary not previously disclosed in writing to the Lenders or any material adverse development in any action, suit, proceeding, investigation or arbitration (whether or not previously disclosed to the Lenders) that, in either case, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.

Each notice delivered under this <u>Section</u> <u>8.02</u> shall be accompanied by a statement of a Responsible Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

**Section 8.03 <u>Existence; Conduct of Business</u>**. Each of the Parent, the General Partner and the Borrower will, and will cause each Restricted Subsidiary to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect (a) its legal existence in a jurisdiction of the United States and (b) the rights, licenses, permits, privileges and franchises material to the conduct of its business and maintain, if necessary, its qualification to do business in each other jurisdiction in which its Oil and Gas Properties are located or the ownership of its Properties requires such qualification, except where the failure to so qualify could not reasonably be expected to have a Material Adverse Effect; *provided* that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under <u>Section</u> <u>9.08</u>.

**Section 8.04 <u>Payment of Taxes</u>**. Each of the Parent, the General Partner and the Borrower will, and will cause each Subsidiary to, file (or cause to be filed) all federal, state and other tax returns and reports required to be filed and shall pay (or cause to be paid) when due all Taxes levied or imposed upon them or their properties, income or assets, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings and the Parent, the General Partner, the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) the failure to make payment could not reasonably be expected to result in a Material Adverse Effect or result in the seizure or levy of any Borrowing Base Property or other material Property of the Parent, the General Partner, the Borrower or any Subsidiary.

**Section 8.05 <u>Operation and Maintenance of Properties</u>**. Except, in each case, where the failure to comply could not reasonably be expected to have a Material Adverse Effect, the Borrower, at its own expense, will, and will cause each Restricted Subsidiary to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the extent the Borrower or any Restricted Subsidiary owns any executive rights with respect thereto, operate its Oil and Gas Properties and other material Properties or cause such Oil and Gas Properties and other Properties to be operated in a careful and efficient manner in accordance with the practices of the industry and in compliance with all applicable contracts and agreements and in compliance with all Governmental Requirements, including, without limitation, applicable proration requirements and Environmental Laws, and all applicable laws, rules and regulations of every other Governmental Authority from time to time constituted to regulate the development and operation of its Oil and Gas Properties and the production and sale of Hydrocarbons and other minerals therefrom;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent the Borrower or any Restricted Subsidiary owns any executive rights with respect thereto, maintain and keep in good repair, working order and efficiency (ordinary wear and tear excepted) all of its Oil and Gas Properties and other Properties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to the extent the Borrower or any Restricted Subsidiary owns any executive rights with respect thereto, to the extent the Borrower is not the operator of any Property, the Borrower shall use commercially reasonable efforts to cause the operator to comply with this <u>Section</u> <u>8.05</u>.

**Section 8.06 <u>Insurance</u>**. Each of the Parent, the General Partner and the Borrower will, and will cause each Restricted Subsidiary to, maintain, with financially sound and reputable insurance companies (at the time the relevant coverage is placed or renewed), insurance (a) in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations and (b) in accordance with all Governmental Requirements. The loss payable clauses or provisions in said insurance policy or policies insuring any of the Collateral for the Loans shall be endorsed in favor of and made payable to the Administrative Agent as its interests may appear and such policies shall name the Administrative Agent and the Lenders as "additional insureds" and the Administrative Agent as lender loss payee (and mortgagee, if applicable) and provide that the insurer will endeavor to give at least thirty (30) days' prior notice of any cancellation to the Administrative Agent.

**Section 8.07 <u>Books and Records; Inspection Rights</u>**. The Borrower will, and will cause each Restricted Subsidiary to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Borrower will, and will cause each Restricted Subsidiary to, permit any representatives designated by the Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its Properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested; *provided*, that so long as no Event of Default has occurred and is continuing and no Borrowing Base Deficiency exists, the Borrower and its Restricted Subsidiaries shall not be required to reimburse the Administrative Agent for more than one (1) inspection during any fiscal year.

**Section 8.08 <u>Compliance with Laws</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parent, the General Partner and the Borrower will, and will cause each Restricted Subsidiary to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its Property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parent, the General Partner and the Borrower will, and will cause each of its Subsidiaries to, maintain in effect such policies and procedures reasonably designed to promote and achieve compliance by the Parent, the General Partner, the Borrower and its Subsidiaries and each of their respective directors, officers, employees and agents with Anti-Corruption Laws, Anti-Money Laundering Laws and applicable Sanctions.

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**Section 8.09 <u>Environmental Matters</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall: (i) comply, and shall cause its Properties and operations and each Restricted Subsidiary and each Restricted Subsidiary's Properties and operations to comply (with respect to Oil and Gas Properties, solely to the extent such Person has executive rights therein), with all applicable Environmental Laws, except where the failure to so comply could not reasonably be expected to have a Material Adverse Effect; (ii) not Release or threaten to Release, and shall cause each Restricted Subsidiary not to Release or threaten to Release, any Hazardous Material on, under, about or from any of the Borrower's or its Restricted Subsidiaries' Properties or any other property offsite the Property to the extent caused by the Borrower's or any of its Restricted Subsidiaries' operations except in compliance with applicable Environmental Laws, in each case such Release or threatened Release of which could reasonably be expected to have a Material Adverse Effect; (iii) timely obtain or file, and shall cause each Restricted Subsidiary to timely obtain or file, all Environmental Permits, if any, required under applicable Environmental Laws to be obtained or filed in connection with its operation or use of the Borrower's or its Restricted Subsidiaries' Properties, which failure to obtain or file could reasonably be expected to have a Material Adverse Effect; (iv) promptly commence and diligently prosecute to completion, and shall cause each Restricted Subsidiary to promptly commence and diligently prosecute to completion, any assessment, evaluation, investigation, monitoring, containment, cleanup, removal, repair, restoration, remediation or other remedial obligations to the extent required to be completed by the Borrower or any Restricted Subsidiary under Environmental Law (collectively, the "<u>Remedial Work</u>") in the event any Remedial Work is required by the Borrower or any Restricted Subsidiary under applicable Environmental Laws because of or in connection with the actual or suspected past, present or future Release or threatened Release of any Hazardous Material on, under, about or from any of the Borrower's or its Restricted Subsidiaries' Properties, which failure to commence and diligently prosecute to completion could reasonably be expected to have a Material Adverse Effect; (v) conduct, and cause its Restricted Subsidiaries to conduct, their respective operations and businesses in a manner that will not expose any Property or Person to Hazardous Materials in violation of Environmental Law, if such exposure could reasonably be expected to have a Material Adverse Effect; and (vi) establish and implement, and shall cause each Restricted Subsidiary to establish and implement, such procedures as may be deemed reasonably necessary by the Borrower and its Restricted Subsidiaries to regularly determine and assure that the Borrower's and its Restricted Subsidiaries' obligations under this <u>Section</u> <u>8.09(a)</u> are timely and fully satisfied, which failure to establish and implement could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower will promptly, but in no event later than fifteen (15) days after the Borrower obtains knowledge thereof, notify the Administrative Agent and the Lenders in writing of any threatened (in writing) action, investigation or inquiry by any Governmental Authority or any threatened demand (in writing) or lawsuit by any Person against the Borrower or its Restricted Subsidiaries or their Properties of which the Borrower has knowledge in connection with any Environmental Laws if the Borrower reasonably anticipates that such action will result in liability (whether individually or in the aggregate), if not covered by insurance, which could reasonably be expected to have a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower will, and will cause each Restricted Subsidiary to, provide all environmental assessments, audits and tests obtained by the Borrower or any Restricted Subsidiary in connection with any future acquisition of Oil and Gas Properties or other Properties to the Administrative Agent and the Lenders.

**Section 8.10 <u>Further Assurances</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Parent, the General Partner and the Borrower at its sole expense will, and will cause each Restricted Subsidiary to, promptly execute and deliver to the Administrative Agent all documents, agreements and instruments reasonably requested by the Administrative Agent to comply with, cure any defects or accomplish the conditions precedent, covenants and agreements of the Parent, the General Partner, the Borrower or any Restricted Subsidiary, as the case may be, in the Loan Documents, including the Notes, or to further evidence and more fully describe the Collateral intended as security for the Obligations, or to correct any omissions in this Agreement or the Security Instruments, or to state more fully the obligations secured therein, or to perfect, protect or preserve any Liens created pursuant to this Agreement or any of the Security Instruments or the priority thereof, or to make any recordings, file any notices or obtain any consents, all as may be reasonably necessary or appropriate, in the sole discretion of the Administrative Agent, in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Parent, the General Partner and the Borrower hereby authorizes the Administrative Agent to file one or more financing or continuation statements, and amendments thereto, relative to all or any part of the Mortgaged Property without the signature of the Parent, the General Partner, the Borrower or any Guarantor where permitted by law. A carbon, photographic or other reproduction of the Security Instruments or any financing statement covering the Mortgaged Property or any part thereof shall be sufficient as a financing statement where permitted by law. The Borrower acknowledges and agrees that any such financing statement may describe the collateral as "all assets" of the applicable Credit Party or words of similar effect as may be required by the Administrative Agent.

**Section 8.11 <u>Reserve Reports</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before March 15th and September 15th of each year, commencing with the first such date to occur after the Effective Date, the Borrower shall furnish to the Administrative Agent and the Lenders a Reserve Report evaluating, as of the immediately preceding July 1st (for each September 15th delivery) and January 1st (for each March 15th delivery), the Proved Reserves of the Borrower and the Restricted Subsidiaries located within the geographic boundaries of the United States of America. The Reserve Report as of January 1st (for each March 15th delivery) of each year shall be prepared by one or more Approved Petroleum Engineers, and the Reserve Report as of July 1st (for each September 15th delivery) of each year shall be prepared by or under the supervision of the chief engineer or qualified agent of the Borrower who shall certify such Reserve Report to be true and accurate in all material respects and to have been prepared in accordance with the procedures used in the immediately preceding January 1st Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of an Interim Redetermination, the Borrower shall furnish to the Administrative Agent and the Lenders a Reserve Report prepared, at the election of the Borrower, (i) by one or more Approved Petroleum Engineers or (ii) by or under the supervision of the chief

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engineer or qualified agent of the Borrower who shall certify such Reserve Report to be true and accurate in all material respects and to have been prepared in accordance with the procedures used in the immediately preceding January 1st Reserve Report. For any Interim Redetermination requested by the Administrative Agent or the Borrower pursuant to <u>Section</u> <u>2.07(b)</u>, the Borrower shall provide such Reserve Report with an "as of" date as required by the Administrative Agent as soon as possible, but in any event no later than forty-five (45) days following the receipt of such request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With the delivery of each Reserve Report, the Borrower shall provide to the Administrative Agent a Reserve Report Certificate from a Responsible Officer certifying that in all material respects: (i) the information contained in the Reserve Report and any other information delivered in connection therewith is true and correct, it being understood by the Administrative Agent and the Lenders that projections concerning volumes and production and cost estimates contained in each Reserve Report are necessarily based upon opinions, estimates and projections and that neither the Borrower nor such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate, (ii) the Borrower or another Credit Party has good and defensible title to the Oil and Gas Properties evaluated in such Reserve Report (other than those (x) to be acquired in connection with an acquisition, (y) Disposed of since the date of such Reserve Report as permitted in accordance with the terms hereof, and (z) leases that have expired in accordance with their terms) and such Oil and Gas Properties are free (or will be at the time of the acquisition thereof) of all Liens except for Liens permitted by <u>Section</u> <u>9.03</u>, (iii) to the extent the Credit Parties take Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, except as set forth on an exhibit to the certificate or previously disclosed to the Administrative Agent in writing, on a net basis there are no gas imbalances, take or pay or other prepayments, the value of which exceed the dollar threshold specified in <u>Section</u> <u>7.16</u>, with respect to the Credit Parties' Oil and Gas Properties evaluated in such Reserve Report which would require the Borrower or any other Credit Party to deliver Hydrocarbons either generally or produced from such Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor, (iv) none of the Borrowing Base Properties have been sold since the date of the last Borrowing Base determination except (A) those Borrowing Base Properties listed on such certificate as having been Disposed, or (B) as previously disclosed to the Administrative Agent in writing, (v) attached to the certificate is a list of all material marketing agreements (which are not cancellable on 120 days' notice or less without penalty or detriment) entered into subsequent to the later of the Effective Date or the most recently delivered Reserve Report which the Borrower could reasonably be expected to have been obligated to list on <u>Schedule</u> <u>7.17</u> had such agreement been in effect on the Effective Date, and (vi) attached thereto is a schedule demonstrating compliance or noncompliance (calculated at the time of delivery of such Reserve Report) with the Collateral Coverage Minimum and, in the case of noncompliance, the steps that will be taken to comply with this <u>Section</u> <u>8.11</u>.

**Section 8.12 <u>Title Information</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or before the delivery to the Administrative Agent and the Lenders of each Reserve Report required by <u>Section</u> <u>8.11(a)</u>, the Borrower will deliver title information in form and substance reasonably acceptable to the Administrative Agent covering enough of the Oil and Gas Properties evaluated by such Reserve Report that were not included in the immediately preceding Reserve Report, so that the Administrative Agent shall have received together with title

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information previously delivered to the Administrative Agent, reasonably satisfactory title information on at least the Required Title Percentage of the PV-9 of the Proved Oil and Gas Properties evaluated by such Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Borrower has provided title information for additional Properties under <u>Section</u> <u>8.12(a)</u>, the Borrower shall, within sixty (60) days after notice from the Administrative Agent that title defects or exceptions exist with respect to such additional Properties, either (i) cure any such title defects or exceptions (including defects or exceptions as to priority) which are not permitted by <u>Section</u> <u>9.03</u> raised by such information, (ii) substitute acceptable Mortgaged Properties with no title defects or exceptions (provided that Excepted Liens of the type described in clauses (a) through (d) and (f) of the definition thereof may exist, but subject to the provisos at the end of such definition) having an equivalent value, or (iii) deliver title information in form and substance reasonably acceptable to the Administrative Agent so that the Administrative Agent shall have received, together with title information previously delivered to the Administrative Agent, satisfactory title information on at least the Required Title Percentage of the PV-9 of the Proved Oil and Gas Properties evaluated by such Reserve Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Borrower is unable to cure any title defect requested by the Administrative Agent or the Lenders to be cured within the 60-day period or the Borrower does not comply with the requirements to provide acceptable title information covering the Required Title Percentage of the PV-9 of the Proved Oil and Gas Properties evaluated in the most recent Reserve Report, such failure shall not be a Default, but instead the Administrative Agent and/or the Required Lenders shall have the right to exercise the following remedy in their sole discretion from time to time, and any failure to so exercise this remedy at any time shall not be a waiver as to future exercise of the remedy by the Administrative Agent or the Lenders. To the extent that the Administrative Agent or the Required Lenders are not reasonably satisfied with title to any Mortgaged Property after the 60-day period has elapsed, such unacceptable Mortgaged Property shall not count for purposes of the Required Title Percentage requirements, and the Administrative Agent may send a notice to the Borrower and the Lenders that the then outstanding Borrowing Base shall be reduced by an amount as determined by the Required Lenders to cause the Borrower to be in compliance with the requirement to provide reasonably acceptable title information on the Required Title Percentage of the PV-9 of the Proved Oil and Gas Properties. This new Borrowing Base shall become effective immediately after receipt of such notice.

**Section 8.13 <u>Additional Collateral; Additional Guarantors</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with each redetermination of the Borrowing Base (each of the events described in the foregoing clauses (i) and (ii), a "<u>Collateral Review Event</u>"), the Borrower shall review the Reserve Report and the list of current Mortgaged Properties (as described in <u>Section</u> <u>8.11(c)(vi</u>)), to ascertain whether the Mortgaged Properties represent at least the Required Mortgage Percentage of the PV-9 of the Proved Oil and Gas Properties evaluated in the most recently completed Reserve Report after giving effect to exploration and production activities, acquisitions, Dispositions and production (the "<u>Collateral Coverage Minimum</u>"). In the event that the PV-9 of the Mortgaged Properties (calculated at the time of such Collateral Review Event) does not satisfy the Collateral Coverage Minimum, then the Borrower shall, and shall cause its Restricted Subsidiaries to, grant, within thirty (30) days of delivery of the certificate required under <u>Section</u> <u>8.11(c)</u> (or such longer period as the Administrative Agent may agree in its sole discretion

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but not to extend beyond a total of ninety (90) days following the delivery of such certificate), to the Administrative Agent as security for the Obligations a first-priority Lien interest (provided that Liens permitted under <u>Section</u> <u>9.03</u> may exist) on additional Oil and Gas Properties of the Borrower and the Restricted Subsidiaries not already subject to a Lien of the Security Instruments such that after giving effect thereto, the PV-9 of the Mortgaged Properties (calculated at the time of such Collateral Review Event) meets the Collateral Coverage Minimum. All such Liens will be created and perfected by and in accordance with the provisions of deeds of trust, mortgages, security agreements and financing statements or other Security Instruments, all in form and substance reasonably satisfactory to the Administrative Agent and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes. In order to comply with the foregoing, if any Restricted Subsidiary places a Lien on its Oil and Gas Properties and such Restricted Subsidiary is not a Guarantor, then it shall become a Guarantor and comply with <u>Section</u> <u>8.13(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that (i) the Borrower or any Restricted Subsidiary creates or acquires any Material Subsidiary, (ii) any Immaterial Subsidiary becomes a Material Subsidiary (whether pursuant to the definition of Material Subsidiary or otherwise), (iii) the Borrower designates an Unrestricted Subsidiary to be a Restricted Subsidiary pursuant to <u>Section</u> <u>9.15(c)</u> and such Restricted Subsidiary constitutes a Material Subsidiary, or (iv) any Restricted Subsidiary incurs or guarantees any Debt or grants any Lien on any Property to secure any Debt, the Borrower shall promptly, but in any event no later than thirty (30) days from the date of such creation, acquisition, designation, determination, incurrence, cessation, incurrence, guarantee or grant (or such longer period as the Administrative Agent may agree in its sole discretion): (A) cause such Restricted Subsidiary to become a Guarantor by executing and delivering to the Administrative Agent a duly executed supplement to the Guarantee and Collateral Agreement (or a supplement or joinder thereto, as applicable), (B) pledge, or cause any Credit Party that owns any Equity Interests of the new Restricted Subsidiary to pledge, in each case, all of the Equity Interests of such new Restricted Subsidiary that are owned by any Credit Party (including delivery of original certificates evidencing the Equity Interests of such Restricted Subsidiary, together with an appropriate undated stock powers for each certificate duly executed in blank by the registered owner thereof) and (C) execute and deliver such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that the Parent, the General Partner, the Borrower, any Subsidiary or any Guarantor intends to grant any Lien on any Property to secure any Second Lien Obligations, the Borrower will provide at least five (5) Business Days' prior written notice thereof to the Administrative Agent (or such shorter time as the Administrative Agent may agree in its sole discretion), and each of the Parent, the General Partner and the Borrower will, and will cause the Restricted Subsidiaries to, first grant to the Administrative Agent to secure the Obligations a prior Lien on the same Property pursuant to Security Instruments in form and substance satisfactory to the Administrative Agent (and for the avoidance of doubt, whether or not such Property constitutes "Excluded Property" pursuant to the terms of any Loan Document) to the extent a prior Lien has not already been granted to the Administrative Agent on such Property. In connection therewith, the Borrower shall, or shall cause its Subsidiaries to, execute and deliver such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Administrative Agent. The Borrower will cause any Subsidiary guaranteeing any Second Lien Obligations to contemporaneously guarantee the Obligations pursuant to the Guarantee and Collateral Agreement and execute a joinder to the Guarantee and Collateral Agreement to the extent such Subsidiary is not already a party to the Guarantee and Collateral Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding any provision in any of the Loan Documents to the contrary, in no event is any Building (as defined in the applicable Flood Insurance Regulations) or Manufactured (Mobile) Home (as defined in the applicable Flood Insurance Regulations) owned by any Credit Party included in the Mortgaged Property and no Building or Manufactured (Mobile) Home shall be encumbered by any Security Instrument; *provided*, that (i) the applicable Credit Party's interests in all lands and Hydrocarbons situated under any such Building or Manufactured (Mobile) Home shall be included in the Mortgaged Property and shall be encumbered by the Security Instruments and (ii) the Borrower shall not, and shall not permit any of its Restricted Subsidiaries to, permit to exist any Lien on any Building or Manufactured (Mobile) Home except Liens permitted by <u>Section</u> <u>9.03</u> (other than <u>Section</u> <u>9.03(a)</u>).

**Section 8.14 <u>ERISA Compliance</u>**. The Borrower will promptly furnish and will cause the Restricted Subsidiaries to promptly furnish to the Administrative Agent (a) if specifically requested by the Administrative Agent, promptly after the filing thereof with the United States Secretary of Labor or the Internal Revenue Service, copies of each annual report (Form 5500 series) with respect to each Plan (other than a Multiemployer Plan), (b) if specifically requested by the Administrative Agent, following receipt thereof, if specifically requested by the Administrative Agent copies of any documents described in Sections 101(k) or 101(l) of ERISA that the Borrower, a Subsidiary or any ERISA Affiliate may request with respect to any Multiemployer Plan to which the Borrower, a Subsidiary or any ERISA Affiliate is obligated to contribute or has any liability; provided that if the Borrower, a Subsidiary or any ERISA Affiliate has not requested such documents or notices from the administrator or sponsor of the applicable Multiemployer Plan, then, upon the specific request of the Administrative Agent, the Borrower, a Subsidiary or any ERISA Affiliate shall promptly make a request for such documents or notices from such administrator or sponsor and the Borrower shall provide copies of such documents and notices to the Administrative Agent promptly after receipt thereof, and (c) promptly upon becoming aware of the occurrence of any ERISA Event that could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, a written notice signed by the Borrower specifying the nature thereof, what action the Borrower, a Subsidiary or any ERISA Affiliate taking or proposes to take with respect thereto, and, when known, any action taken or proposed by the Internal Revenue Service or the Department of Labor with respect thereto.

**Section 8.15 <u>Commodity Exchange Act Keepwell Provisions</u>**. Each of the Parent and the Borrower hereby guarantees the payment and performance of all Obligations of each Credit Party (other than the Borrower) and absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Credit Party (other than the Borrower) in order for such Credit Party to honor its obligations under the Guarantee and Collateral Agreement including obligations with respect to Swap Agreements (*provided*, *however*, that the Parent and the Borrower shall only be liable under this <u>Section</u> <u>8.15</u> for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this <u>Section</u> <u>8.15</u>, or otherwise under this Agreement or any Loan Document, as it relates to such other Credit Parties, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of the Borrower under this <u>Section</u> <u>8.15</u> shall remain in full force and effect until the Release Date. The

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Borrower intends that this <u>Section</u> <u>8.15</u> constitute, and this <u>Section</u> <u>8.15</u> shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each other Credit Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

**Section 8.16 <u>Deposit Accounts, Commodity Accounts, and Securities Accounts</u>**. The Borrower shall, and shall cause each Restricted Subsidiary to: (i) deposit or cause to be deposited directly, all Cash Receipts into one or more Deposit Accounts in which the Administrative Agent has been granted a first-priority Lien and that, in each case, is subject to a Control Agreement, (ii) deposit or credit or cause to be deposited or credited directly, all securities and financial assets held or owned by (whether directly or indirectly), credited to the account of, or otherwise reflected as an asset on the balance sheet of, the Borrower and its Restricted Subsidiaries (including, without limitation, all marketable securities, treasury bonds and bills, certificates of deposit, investments in money market funds and commercial paper) into one or more Securities Accounts in which the Administrative Agent has been granted a first-priority Lien and that is subject to a Control Agreement and (iii) cause all commodity contracts held or owned by (whether directly or indirectly), credited to the account of, or otherwise reflected as an asset on the balance sheet of, the Borrower and its Restricted Subsidiaries, to be carried or held in one or more Commodity Accounts in which the Administrative Agent has been granted a first-priority Lien and that is subject to a Control Agreement; *provided* that with respect to Deposit Accounts, Commodity Accounts, and Securities Accounts maintained by the Borrower and the Guarantors as of the Effective Date, the Borrower and the Guarantors shall have until the date that is sixty (60) days after the Effective Date (as such date may be extended by the Administrative Agent in its sole discretion) to deliver Control Agreements covering such accounts (such date, the "<u>Control Agreement Delivery Date</u>"). In no event shall the Borrower or any Restricted Subsidiary be required to obtain a Control Agreement on any Excluded Account.

**Section 8.17 <u>Marketing Activities</u>**. The Borrower will not, and will not permit any of its Restricted Subsidiaries to, engage in marketing activities for any Hydrocarbons or enter into any contracts related thereto other than (a) contracts for the sale of Hydrocarbons scheduled or reasonably estimated to be produced from their Oil and Gas Properties during the period of such contract and (b) contracts for the sale of Hydrocarbons scheduled or reasonably estimated to be produced from Oil and Gas Properties of third parties during the period of such contract associated with the Oil and Gas Properties of the Borrower and its Restricted Subsidiaries that the Borrower or one of its Restricted Subsidiaries has the right or obligation to market pursuant to joint operating agreements, unitization agreements or other similar contracts (or contracts executed in connection therewith) that are usual and customary in the oil and gas business.

**Section 8.18 <u>Sanctions</u>**. The Borrower will not request any Borrowing or Letter of Credit, and the Borrower shall not use, and shall procure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Borrowing or Letter of Credit directly (a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (b) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, except to the extent permissible for a Person required to comply with Sanctions, or (c) in any manner that would result in the violation of Sanctions, Anti-Corruption Laws, or Anti-Money Laundering Laws applicable to any party hereto.

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**Section 8.19 <u>Unrestricted Subsidiaries</u>.** The Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) will cause the management, business and affairs of each of the Borrower and its Restricted Subsidiaries to be conducted in such a manner (including by keeping separate books of account, furnishing separate financial statements of the Unrestricted Subsidiaries to creditors and potential creditors thereof and by not permitting Properties of the Borrower and its Restricted Subsidiaries to be commingled) so that each Unrestricted Subsidiary that is a corporation will be treated as a corporate entity separate and distinct from the Borrower and any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) will not, and will not permit any of the Restricted Subsidiaries to, incur, assume, guarantee or be or become liable for any Debt of any of the Unrestricted Subsidiaries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) will not permit any Unrestricted Subsidiary to hold any Equity Interest in, or any Debt of, the Borrower or any Restricted Subsidiary.

**Section 8.20 <u>Minimum Hedging</u>**. On the last day of each fiscal quarter (each, a "<u>Minimum Hedging Requirement Date</u>"), the Borrower shall have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) entered into Swap Agreements (i) in the form of (x) swaps, (y) two-way collars and/or (z) costless collars with only one floor, (ii) with one or more Approved Counterparties, (iii) hedging minimum notional volumes of (A) if on any Minimum Hedging Requirement Date the Consolidated Net Leverage Ratio on such Minimum Hedging Requirement Date is greater than or equal to 1.50 to 1.00 (as such ratio is recomputed using Total Net Debt as of such date and EBITDAX (or Annualized EBITDAX, as applicable) for the Rolling Period most recently ended for which financial statements have been delivered pursuant to <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b),</u> as applicable), (1) if natural gas does not equal or exceed 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 50% of the reasonably projected production of crude oil and natural gas, each calculated separately and (2) if natural gas equals or exceeds 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 50% of the reasonably projected production of natural gas, in each case from the Borrower's and the Restricted Subsidiaries' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recently delivered Reserve Report) for each full calendar month during the period from and including such Minimum Hedging Requirement Date to and including the 24th full calendar month following such Minimum Hedging Requirement Date; (B) if on any Minimum Hedging Requirement Date the Consolidated Net Leverage Ratio on such Minimum Hedging Requirement Date is greater than or equal to 1.00 to 1.00 but less than 1.50 to 1.00 (as such ratio is recomputed using Total Net Debt as of such date and EBITDAX (or Annualized EBITDAX, as applicable) for the Rolling Period most recently ended for which financial statements have been delivered pursuant to <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b),</u> as applicable), (1) (x) if natural gas does not equal or exceed 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 50% of the reasonably projected production of crude oil and natural gas, each calculated separately and (y) if natural gas equals or exceeds 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 50% of the reasonably projected production of natural gas, in each case, from the Borrower's and the Restricted Subsidiaries' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recently delivered Reserve Report) for each full calendar month during the period from and including the first full calendar month following such Minimum Hedging Requirement Date to and including the 12<sup>th</sup> full

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calendar month following such Minimum Hedging Requirement Date; and (2) (x) if natural gas does not equal or exceed 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 25% of the reasonably projected production of crude oil and natural gas, each calculated separately and (y) if natural gas equals or exceeds 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 25% of the reasonably projected production of natural gas, in each case, from the Borrower's and the Restricted Subsidiaries' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recently delivered Reserve Report) for each full calendar month during the period from and including the 13<sup>th</sup> full calendar month following such Minimum Hedging Requirement Date to and including the 24<sup>th</sup> full calendar month following such Minimum Hedging Requirement Date; or (C) if on any Minimum Hedging Requirement Date the Consolidated Net Leverage Ratio on such Minimum Hedging Requirement Date is less than 1.00 to 1.00 (as such ratio is recomputed using Total Net Debt as of such date and EBITDAX (or Annualized EBITDAX, as applicable) for the Rolling Period most recently ended for which financial statements have been delivered pursuant to <u>Section</u> <u>8.01(a)</u> or <u>Section</u> <u>8.01(b),</u> as applicable), (1) if natural gas does not equal or exceed 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 50% of the reasonably projected production of crude oil and natural gas, each calculated separately and (2) if natural gas equals or exceeds 90% of the aggregate production calculated on a barrel of oil equivalent basis, at least 50% of the reasonably projected production of natural gas, in each case, from the Borrower's and the Restricted Subsidiaries' Oil and Gas Properties constituting Proved Developed Producing Reserves (as set forth in the most recently delivered Reserve Report) for each full calendar month during the period from and including such Minimum Hedging Requirement Date to and including the 12th full calendar month following such Minimum Hedging Requirement Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) provided evidence to the Administrative Agent, in form and substance reasonably satisfactory to the Administrative Agent, that the Borrower is in compliance with each of the requirements of <u>clauses (i)</u>, <u>(ii)</u> and <u>(iii)</u> of <u>Section</u> <u>8.20(a)</u>.

**Section 8.21 <u>Depositary Arrangements</u>**. Each Credit Party shall, and shall cause each of its Subsidiaries to, maintain Capital One, National Association as its primary depositary bank in the United States, including for operating, administrative, cash management and collection activity and for all primary deposit accounts and traditional bank accounts. Notwithstanding the foregoing, in no event shall the Borrower or any Restricted Subsidiary be required to maintain its Excluded Accounts (other than of the type described in clause (a) of the definition thereof) with Capital One, National Association.

**Section 8.22 <u>Reserved</u>**.

**Section 8.23 <u>More Favorable Terms</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, at any time, any documentation governing the Second Lien Note Documents includes any representation, warranty, covenant (including financial covenants) or event of default or other term (but excluding "Applicable Margin") that is more restrictive as to the Parent, the General Partner, the Borrower or any Restricted Subsidiary than the terms of this Agreement and the other Loan Documents (each, a "More Restrictive Term"), then (i) other than with respect to any More Restrictive Terms in the Second Lien Note Documents in existence on the Effective

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Date, on or prior to the third Business Day following the effectiveness of any such More Restrictive Term, as applicable, the Borrower shall notify the Administrative Agent thereof, and (ii) whether or not the Borrower provides such notice, the terms of this Agreement shall, without any further action on the part of the Borrower, the Administrative Agent or any Lender, be deemed to be amended automatically to include each More Restrictive Term in this Agreement, mutatis mutandis effective as of the date when such More Restrictive Term became effective under the Second Lien Note Documents. The Parent, the General Partner and the Borrower shall, and shall cause each Restricted Subsidiary to, promptly execute and deliver, each at its sole expense, an amendment to this Agreement and/or any Loan Document in form and substance reasonably satisfactory to the Administrative Agent evidencing the amendment of this Agreement and/or such other Loan Document to include such More Restrictive Terms in this Agreement; provided that the execution and delivery of such amendment shall not be a precondition to the effectiveness of such amendment as provided for this Section 8.23(a), but shall merely be for the convenience of the parties hereto. In addition, the Parent, the General Partner and the Borrower shall, and shall cause each Restricted Subsidiary to, promptly execute and deliver, each at its sole expense, an amendment to this Agreement in form and substance reasonably satisfactory to the Administrative Agent evidencing the amendment of this Agreement to include any changes to the terms of this Agreement to correct or address any incorrect section references, descriptions of documentation, use of defined terms and other similar matters between this Agreement and the terms of the Second Lien Note Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any time after this Agreement or any Loan Document is amended pursuant to <u>Section</u> <u>8.23(a)</u> to include any More Restrictive Term contained in the Second Lien Note Documents (each, an "<u>Incorporated Provision</u>"), such Incorporated Provision ceases to be in effect under, or is deleted from, the Second Lien Note Documents, or is amended or modified for the purposes of the Second Lien Note Documents, so as to become less restrictive with respect to the Parent, the General Partner, the Borrower or its Subsidiaries, then (i) on or prior to the third Business Day following the effectiveness of any such cessation, deletion, amendment or modification, the Borrower shall notify the Administrative Agent thereof, and (ii) whether or not the Borrower provides such notice, so long as no Default or Event of Default in respect of such Incorporated Provision shall be in existence, the terms of this Agreement shall, without any further action on the part of the Borrower, the Administrative Agent or any Lender, be deemed to be amended automatically to delete such Incorporated Provision or incorporate the same amendments or modifications to such Incorporated Provision, as applicable, *mutatis mutandis* effective as of the date when such Incorporated Provision ceased to be in effect under, or was deleted from, or was amended or modified in the Second Lien Note Documents. Upon the request of the Borrower, the Majority Lenders will execute and deliver an amendment to this Agreement to delete or similarly amend or modify, as the case may be, such Incorporated Provision as in effect in this Agreement. Notwithstanding the foregoing, no amendment to this Agreement pursuant to this <u>Section</u> <u>8.23(b)</u> as the result of any Incorporated Provision ceasing to be in effect or being deleted, amended or otherwise modified shall cause any covenant or Event of Default in this Agreement to be less restrictive as to the Parent, the General Partner, the Borrower or any Subsidiary than such covenant or Event of Default as contained in this Agreement as in effect on the Effective Date, and as amended, supplemented or otherwise modified thereafter (other than as the result of the application of <u>Section</u> <u>8.23(a)</u>).

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**ARTICLE IX** 

**<u>NEGATIVE COVENANTS</u>**

On and after the Effective Date, until the Release Date, the Borrower (and in the case of each of <u>Sections 9.07</u>, <u>9.16</u>, <u>9.17</u>, <u>9.18</u> and <u>9.19</u>, each of the Parent and the General Partner), for itself and for each of its Restricted Subsidiaries, covenants and agrees with the Lenders that:

**Section 9.01 <u>Financial Covenants</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Consolidated Net Leverage Ratio</u>. The Borrower will not, as of the last day of any fiscal quarter (commencing with the first full fiscal quarter ending after the Effective Date) permit the Consolidated Net Leverage Ratio for the Rolling Period then ending to be greater than 3.50 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Current Ratio</u>. The Borrower will not permit the Current Ratio as of the last day of any fiscal quarter (commencing with the first full fiscal quarter ending after the Effective Date) to be less than 1.0 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Right to Cure</u>. In the event the Borrower fails to comply with the requirements of <u>Section</u> <u>9.01(a)</u> or <u>Section</u> <u>9.01(b)</u> as of the last day of any fiscal quarter of the Borrower, then during the period from and including the first day after the last day of such fiscal quarter through and including the 10th Business Day after the date the compliance certificate for such fiscal quarter is required to be delivered pursuant to <u>Section</u> <u>8.01(c)</u> (such period, the "<u>Cure Period</u>"), the Borrower shall be permitted to cure such failure to comply by requesting that the Consolidated Net Leverage Ratio and/or the Current Ratio be recalculated by increasing EBITDAX and/or the consolidated current assets for such fiscal quarter by an amount up to the cash proceeds received by the Borrower from a Specified Equity Contribution during the Cure Period (such amount, a "<u>Cure Amount</u>"); *provided* that (i) the Borrower delivers written notice to the Administrative Agent on or prior to the date of a timely delivered certificate required by <u>Section</u> <u>8.01(c)</u> that it has elected to cure the failure to comply and clearly setting forth such Specified Equity Contribution in the computation required by <u>clause</u> <u>(ii)</u> of such <u>Section</u> <u>8.01(c)</u>; (ii) the amount of the Cure Amount added to EBITDAX and/or the consolidated current assets shall not be greater than the amount required to cause the Borrower to be in compliance with <u>Section</u> <u>9.01(a)</u> or <u>Section</u> <u>9.01(b)</u>, as applicable; (iii) any such increase pursuant to this <u>Section</u> <u>9.01(c)</u> to EBITDAX and/or the consolidated current assets for any fiscal quarter shall be applied solely for the purpose of determining compliance or non-compliance with <u>Section</u> <u>9.01(a)</u> or <u>Section</u> <u>9.01(b)</u> as of the last day of any Rolling Period that includes such fiscal quarter and not for any other purpose under any Loan Document (including any determination of *pro forma* compliance with the Consolidated Net Leverage Ratio for the purposes of making any Restricted Payment or Investment or any other purpose); (iv) (A) there shall be no more than two fiscal quarters during any period of four consecutive fiscal quarters for which the Borrower cures any Consolidated Net Leverage Ratio or Current Ratio default by an equity cure and (B) there shall be no more than four fiscal quarters prior to the Maturity Date for which the Borrower cures any Consolidated Net Leverage Ratio or Current Ratio default by an equity cure; (v) such increase in EBITDAX and/or consolidated current assets shall be taken into account in calculating the Consolidated Net Leverage Ratio or Current Ratio for any Rolling Period that includes the last fiscal quarter of the four quarter period with respect to which such cure right was exercised; (vi) Total Net Debt as of the last day of any fiscal

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quarter for which the foregoing cure right is exercised shall not be deemed reduced by the amount of any Specified Equity Contribution made with respect to such fiscal quarter (even if the proceeds of such Specified Equity Contribution are actually used to repay Debt); (vii) for any period during which EBITDAX is calculated on an annualized basis in accordance with the definition thereof, any Cure Amount shall be taken into account after multiplying EBITDAX by the applicable annualization factor for such fiscal quarter (i.e. the Cure Amount shall not be annualized); and (viii) the same dollars of the Cure Amount may not be applied to both increase EBITDAX and increase consolidated current assets if the Borrower elects to cure the failure to comply with both <u>Section</u> <u>9.01(a)</u> and <u>Section</u> <u>9.01(b)</u> in the same fiscal quarter (i.e. separate Cure Amounts shall be required for each such cure). If after giving effect to the foregoing recalculation, the Borrower would then be in compliance with <u>Section</u> <u>9.01(a)</u> or <u>Section</u> <u>9.01(b)</u>, as applicable, the Borrower shall be deemed to have satisfied the requirements of <u>Section</u> <u>9.01(a)</u> or <u>Section</u> <u>9.01(b)</u>, as applicable, as of the relevant earlier required date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of such covenant that had occurred shall be deemed cured for the purpose of this Agreement and the other Loan Documents. Neither the Administrative Agent nor any Lender shall exercise the right to accelerate the Loans or terminate the Commitments and none of Administrative Agent, any Lender or any Secured Party shall exercise any right to foreclose on or take possession of the Collateral or exercise any other remedy pursuant to <u>Section</u> <u>10.02</u>, the other Loan Documents or applicable law prior to the end of the applicable Cure Period solely on the basis of an Event of Default having occurred and continuing under <u>Section</u> <u>9.01(a)</u> or <u>Section</u> <u>9.01(b)</u> (except to the extent that the Borrower has confirmed in writing that it does not intend to provide a Specified Equity Contribution); *provided* that no Lender or Issuing Bank shall be required to make any extension of credit hereunder during the Cure Period unless the Borrower shall have received the Cure Amount.

**Section 9.02 <u>Debt</u>**. The Borrower will not, and will not permit any Restricted Subsidiary to, incur, create, assume or suffer to exist any Debt, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Loans and other Obligations arising under the Loan Documents or any guaranty of or suretyship arrangement for the Notes or other Obligations arising under the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Debt of the Borrower and its Restricted Subsidiaries existing on the Signing Date that is reflected on <u>Schedule</u> <u>9.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Debt under Capital Leases not to exceed the greater of (i) $5,000,000 and (ii) 2.0% of Consolidated Total Assets (measured as of the date of incurrence of such Debt based upon the financial statements most recently available prior to such date), in each case, in the aggregate at any one time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Debt associated with bonds or surety obligations required by Governmental Requirements incurred in connection with the operation of the Oil and Gas Properties and not in connection with money borrowed, or Debt associated with guarantees or surety obligations delivered by the Borrower to any provider of such bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) intercompany Debt between the Borrower and any Restricted Subsidiary or between Restricted Subsidiaries to the extent permitted by <u>Section</u> <u>9.05(d)</u>; *provided* that such

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Debt is not held, assigned, transferred, negotiated or pledged to any Person other than the Borrower or one of its Wholly-Owned Subsidiaries that is a Restricted Subsidiary, and, *provided further*, that any such Debt owed by either the Borrower or a Guarantor shall be subordinated to the Obligations on the terms set forth in the Guarantee and Collateral Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) endorsements of negotiable instruments for collection in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Debt constituting a guarantee by any Credit Party of any Debt incurred by another Credit Party so long as the incurrence of such Debt by such other Credit Party is otherwise permitted by this <u>Section</u> <u>9.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) other Debt not otherwise permitted pursuant to this <u>Section</u> <u>9.02</u> not to exceed the greater of (i) $10,000,000 and (ii) 5% of Consolidated Total Assets (measured as of the date of incurrence of such Debt based upon the financial statements most recently available prior to such date), in each case, in the aggregate at any one time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (i) unsecured senior notes, unsecured subordinated notes or unsecured senior subordinated notes ("<u>Senior Notes</u>") of the Borrower, and any guarantees thereof, so long as (x) after giving effect to the issuance or incurrence of such Debt, the application of the proceeds thereof, and any automatic reduction of the Borrowing Base pursuant to <u>Section</u> <u>2.07(f)</u> on account thereof, (A) the Consolidated Net Leverage Ratio (as such ratio is recomputed using Total Net Debt as of such date and EBITDAX (or Annualized EBITDAX, as applicable) on a Pro Forma Basis) does not exceed 3.50 to 1.00, (B) no Default or Event of Default shall exist and (C) Unused Availability shall be equal to or greater than 10% of the Loan Limit; and (y) on the same day as the issuance or incurrence of such Senior Notes, the Borrowing Base shall be adjusted to the extent required by <u>Section</u> <u>2.07(f)</u> and prepayment is made to the extent required by <u>Section</u> <u>3.04(c)(iii)</u> and no Borrowing Base Deficiency would then exist after giving effect to such adjustment and prepayment; and (ii) Permitted Refinancing Debt in respect of any Senior Notes issued or incurred in reliance on this <u>Section</u> <u>9.02(i)</u>; *provided* that in the case of the Debt described in each of the foregoing clauses (i) and (ii): (A) such Debt (1) does not have any scheduled principal amortization, a scheduled maturity date or a date of mandatory Redemption in full, in each case, sooner than the date which is 180 days after the Maturity Date and (2) such Debt does not have any mandatory Redemption, tender or sinking fund provisions (other than (a) a customary change of control tender offer provision and (b) a customary asset sale tender offer provision to the extent any amounts required to be Redeemed are permitted to be applied first to prepayment or repayment of the Obligations), (B) such Debt and any guarantees thereof are on terms, taken as a whole, at least as favorable to the Borrower and its Restricted Subsidiaries as market terms for issuers of similar size and credit quality given the then prevailing market conditions as reasonably determined by the Borrower, (C) such Debt (or the documents governing such Debt) shall not contain (1) any financial maintenance covenants or (2) any covenants or events of default, taken as a whole, that are more restrictive or onerous with respect to the Borrower or any of its Restricted Subsidiaries than the covenants and events of default herein, (D) none of the Parent, the General Partner, or any Subsidiary shall be required to guarantee such Debt unless the Parent, the General Partner, or such Subsidiary has guaranteed the Obligations pursuant to the Guarantee and Collateral Agreement; (E) the Borrower shall have complied with <u>Section</u> <u>8.01(o)</u>; (F) the Borrowing Base then in effect shall be adjusted to the extent required by <u>Section</u> <u>2.07(f)</u> and the

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Borrower shall make any prepayment required by <u>Section</u> <u>3.04(c)(iii)</u> and (G) the proceeds of the initial issuance or incurrence of Senior Notes pursuant to this <u>Section</u> <u>9.02(i)</u> shall be used to cause the Discharge of Second Lien Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Second Lien Notes issued by the Borrower pursuant to the Second Lien Note Documents (and any guarantees thereof) and outstanding on the Effective Date in an aggregate principal amount not to exceed (i) $75,000,000 <u>minus</u> (ii) the aggregate amount of all prepayments and repayments of principal of Second Lien Notes made since the Effective Date; *provided* that such Debt does not have a scheduled maturity date or a date of mandatory Redemption in full, in each case, sooner than the date which is 180 days after the Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Debt associated with worker's compensation claims, bonds or surety obligations required by Governmental Requirements or by third parties in the ordinary course of business in connection with the operation of, or provision for the abandonment and remediation of, the Oil and Gas Properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Debt of any Credit Party consisting of obligations to pay insurance premiums; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Debt in an aggregate not to exceed $1,000,000 at any time outstanding representing deferred compensation (whether such deferred compensation is to be cash or stock-based compensation) of employees or directors of the Borrower or its Affiliates incurred in the ordinary course of business.

**Section 9.03 <u>Liens</u>**. The Borrower will not, and will not permit any Restricted Subsidiary to, create, incur, assume or permit to exist any Lien on any of its Properties (now owned or hereafter acquired), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens securing the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Excepted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens securing Capital Leases permitted by <u>Section</u> <u>9.02(c)</u> but only on the Property under lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens securing the Second Lien Obligations; *provided* that (i) such Liens are subordinate to the Liens securing the Obligations pursuant to the Second Lien Intercreditor Agreement and (ii) both before and immediately after giving effect to the incurrence of any such Lien, the Borrower is in compliance with <u>Section</u> <u>8.14(c)</u> and the Second Lien Intercreditor Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Liens on Property not constituting Collateral and not otherwise permitted by the foregoing clauses of this <u>Section</u> <u>9.03</u>; *provided* that the aggregate principal or face amount of all Debt secured under this <u>Section</u> <u>9.03(e)</u> shall not exceed the greater of (i) $10,000,000 and (ii) 5.0% of Consolidated Total Assets (measured as of the date of attachment of such Lien based upon the financial statements most recently available prior to such date) at any time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Liens encumbering insurance policies and the proceeds thereof securing the financing of premiums with respect thereto; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Liens on cash earnest money deposits or escrowed amounts made in connection with a binding purchase agreement to acquire Oil and Gas Properties, in each case to the extent such acquisition is permitted by this Agreement; *provided* that the aggregate of cash secured by Liens pursuant to this <u>Section</u> <u>9.03(g)</u> shall not exceed $10,000,000 (or $15,000,000, as approved in writing by the Administrative Agent in its sole discretion) at any time.

Notwithstanding the foregoing, none of the Liens permitted pursuant to this <u>Section</u> <u>9.03</u> (other than Excepted Liens and Liens securing the Obligations and Liens securing the Second Lien Obligations) may at any time attach to any Borrowing Base Properties.

**Section 9.04 <u>Dividends and Distributions and Payments in Respect of</u> <u>Second Lien Notes and Permitted Senior Notes</u><u>; Amendments to</u> <u>Second Lien Note Documents and Senior Note Documents</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Dividends and Distributions</u>. The Borrower will not, and the Borrower will not permit any of its Restricted Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, return any capital to its Equity Interest holders, or make any distribution of its Property to its Equity Interest holders, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower may declare and pay dividends with respect to its Equity Interests payable solely in additional shares of its Equity Interests (other than Disqualified Capital Stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Restricted Subsidiaries may declare and pay cash dividends ratably with respect to their Equity Interests and pay management, advisory or similar fees to Guarantors or the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) so long as no Default, Event of Default or Borrowing Base Deficiency is continuing or would result therefrom, the Borrower may make Restricted Payments pursuant to and in accordance with, and may repurchase its (or such direct or indirect parent entity's) Equity Interests issued to former employees under, stock option plans or other benefit plans for management or employees of the Borrower and its Restricted Subsidiaries; *provided* that the aggregate amount of payments made pursuant to this clause (iii) do not exceed $1,000,000 in the aggregate in any fiscal year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) each of the Borrower may make Restricted Payments in cash so long as both before and immediately after giving effect to any such Restricted Payment, (A) no Default, Event of Default, or Borrowing Base Deficiency exists, (B) Unused Availability is at least 10% of the Loan Limit and (C) the Consolidated Net Leverage Ratio (as such ratio is recomputed using Total Net Debt as of such date and EBITDAX (or Annualized EBITDAX, as applicable) on a Pro Forma Basis) is less than or equal to 3.00 to 1.00; provided that, if the Borrower may elect to measure the foregoing tests at the time it or the Parent declares such Restricted Payment so long as such Restricted Payment is paid within 30 days after the date of declaration thereof and such Restricted Payment would have been permitted to be paid if such distribution had been paid as of such date of declaration;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) so long as no Event of Default under <u>Section</u> <u>10.01(a)</u>, <u>Section</u> <u>10.01(b)</u>, <u>Section</u> <u>10.01(h)</u> or <u>Section</u> <u>10.01(i)</u> is continuing or would result therefrom, the Borrower may make Permitted Tax Distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Borrower may make distributions to the Parent to pay Public Company Compliance costs, operating expenses incurred in the ordinary course of business and other corporate overhead costs and expenses (including, without limitation, administrative, legal, accounting, and similar expenses payable to third parties), which are reasonable and customary and incurred in the ordinary course of business, plus any reasonable and customary indemnification claims made by directors or officers of the Parent, in each case to the extent such expenses and costs are directly attributable to the ownership or operations of the Parent, the Borrower and their respective Subsidiaries; *provided* that the aggregate amount of payments made pursuant to this clause (vi) do not exceed $3,000,000 in the aggregate in any fiscal year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) redemptions in whole or in part of any of its Equity Interests for Class A common stock of the Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) so long as no Default, Event of Default or Borrowing Base Deficiency is continuing or would result therefrom, Restricted Payments to repurchase Equity Interests from directors or employees of the Borrower or its Affiliates (or from the estate, family members, spouse or former spouse of directors or employees of the Borrower or its Affiliates); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) so long as no Default, Event of Default or Borrowing Base Deficiency is continuing or would result therefrom, cash payments in lieu of the issuance of fractional shares of Equity Interests in connection with any dividend, option, split, warrant or combination thereof, or any transaction permitted hereunder;

*provided* that, in each case of the preceding clauses (i) through (viii), prior to the Discharge of Second Lien Obligations, such Restricted Payments shall be permitted only to the extent such Restricted Payments are also permitted under the Second Lien Note Documents as in effect on the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Redemption of Second Lien Notes and Permitted Senior Notes; Amendment of Terms of Second Lien Note Documents and Senior Note Documents</u>. The Borrower will not, and will not permit any Restricted Subsidiary to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) call, make or offer to make any optional, voluntary or mandatory Redemption of, or otherwise optionally, voluntarily or mandatorily Redeem (other than any repayment of Second Lien Notes constituting a regularly scheduled amortization payment pursuant to the terms of the Second Lien Note Purchase Agreement as in effect on the Effective Date) (whether in whole or in part), any Second Lien Notes or any Permitted Senior Notes, *provided*, that the Borrower may voluntarily Redeem Second Lien Notes or Permitted Senior Notes (A) with cash proceeds from any incurrence of Permitted Senior Notes so long as such Redemption occurs substantially contemporaneously with the receipt of such proceeds, (B) with cash proceeds of the issuance of Equity Interests (other

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than Disqualified Capital Stock) in the Parent, so long as, in the case of this clause (B), no Event of Default or Borrowing Base Deficiency has occurred and is continuing both before and immediately after giving effect to such Redemption and such Redemption occurs within 10 days following, the receipt of such proceeds, and (C) with cash on hand so long as, both before and immediately after giving effect to such Redemption, (w) no Default, Event of Default or Borrowing Base Deficiency exists, (x) Unused Availability is at least 10% of the Loan Limit and (y) the Consolidated Net Leverage Ratio (as such ratio is recomputed using Total Net Debt as of such date and EBITDAX (or Annualized EBITDAX, as applicable) on a Pro Forma Basis) is less than or equal to 3.00 to 1.00; *provided* that, in each case of the preceding clauses (A) through (C), prior to the Discharge of Second Lien Obligations, Redemptions of Permitted Senior Notes or Permitted Refinancing Debt in respect thereof shall be permitted only to the extent such Redemptions are also permitted under the Second Lien Note Documents as in effect on the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) amend, modify, waive or otherwise change, consent or agree to any amendment, modification, waiver or other change to, any of the terms of any Permitted Senior Notes, Senior Note Documents, Second Lien Notes or any Second Lien Note Documents, if the effect thereof would be to (A) shorten the maturity or average life or increase the amount of any payment of principal thereof or increase the rate or shorten any period for payment of interest thereon, (B) increase the amount of any payment of principal thereof (including any principal amortization payment), (C) in the case of any Permitted Senior Notes, such action requires the payment of a consent fee (howsoever described); provided that the foregoing shall not prohibit the execution of supplemental indentures associated with the issuance of additional Permitted Senior Notes to the extent permitted by <u>Section</u> <u>9.02(i)</u> or the execution of supplemental indentures to add guarantors if required by the terms of the Senior Note Documents, provided such Person complies with <u>Section</u> <u>8.14</u>, (D) violate the Second Lien Intercreditor Agreement, (E) cause any Permitted Senior Notes to no longer be permitted under <u>Section</u> <u>9.02(i)</u>, (F) cause any Second Lien Notes to no longer be permitted under <u>Section</u> <u>9.02(j)</u>, or (G) with respect to any Permitted Senior Notes that is subordinated to the Obligations or any other Debt, designate any such Debt (other than obligations of the Borrower and the Restricted Subsidiaries pursuant to the Loan Documents) as "Specified Senior Indebtedness" or "Specified Guarantor Senior Indebtedness" or give any such other Debt any other similar designation for the purposes of any Senior Note Documents.

**Section 9.05 <u>Investments, Loans and Advances</u>**. The Borrower will not, and will not permit any Restricted Subsidiary to, make or permit to remain outstanding any Investments in or to any Person, except that the foregoing restriction shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investments as of the Signing Date which are disclosed to the Lenders in <u>Schedule</u> <u>9.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) accounts receivable arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Investments constituting Cash Equivalents;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investments (i) made by the Borrower in or to any Person that, prior to such Investment, is a Subsidiary Guarantor, (ii) made by any Subsidiary Guarantor in or to the Borrower or any other Subsidiary Guarantor and (iii) made by any Restricted Subsidiary in or to the Borrower or the Subsidiary Guarantors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) subject to the limits in <u>Section</u> <u>9.06</u>, Investments of the type described in <u>clause</u> <u>(c)</u> of the definition thereof in direct ownership interests in additional Oil and Gas Properties located within the geographic boundaries of the United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Investments in stock, obligations or securities received in settlement of debts arising from Investments permitted under this <u>Section</u> <u>9.05</u> and accounts receivable owing to the Borrower or any Restricted Subsidiary as a result of a bankruptcy or other insolvency proceeding of the obligor in respect of such debts or upon the enforcement of any Lien in favor of the Borrower or any of its Restricted Subsidiaries; provided that the Borrower shall give the Administrative Agent prompt written notice in the event that the aggregate amount of all Investments held at any one time under this <u>Section</u> <u>9.05(f)</u> exceeds $5,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) loans or advances to employees, officers or directors of the Borrower or any of its Restricted Subsidiaries, in each case only as permitted by applicable law, including Section 402 of the Sarbanes Oxley Act of 2002, but in any event not to exceed $1,000,000 in the aggregate at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) guarantees of Debt permitted by <u>Section</u> <u>9.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Investments consisting of non-cash consideration received in connection with Dispositions permitted pursuant to <u>Section</u> <u>9.09</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) other Investments; *provided* that both before and immediately after giving effect to any such Investment: (i) no Default, Event of Default or Borrowing Base Deficiency exists, (ii) Unused Availability is at least 10% of the Loan Limit and (iii) the Consolidated Net Leverage Ratio (as such ratio is recomputed using Total Net Debt as of such date and EBITDAX (or Annualized EBITDAX, as applicable) on a Pro Forma Basis) is less than or equal to 3.00 to 1.00; *provided further* that Investments pursuant to this <u>clause (j)</u> that result in the acquisition of all or substantially all of the business or line of business (whether by the acquisition of Equity Interests, assets or any combination thereof) of any other Person, in each case, satisfy the following: (x) such acquisition is not hostile and (y) in the case of any acquisition of a Restricted Subsidiary, such Restricted Subsidiary complies with <u>Sections</u> <u>8.13</u> and <u>9.06</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) to the extent constituting Investments, cash earnest money deposits or escrowed amounts made in connection with a binding purchase agreement to acquire Oil and Gas Properties, in each case to the extent such acquisition is permitted by this Agreement and to the extent that such cash earnest money deposits or escrowed amounts are permitted pursuant to <u>Section</u> <u>9.03(g)</u>;

*provided* that, in each case of the preceding clauses (a) through (l), prior to the Discharge of Second Lien Obligations, such Investments shall be permitted only to the extent such Investments are also permitted under the Second Lien Note Documents as in effect on the Effective Date.

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**Section 9.06 <u>Nature of Business; No Foreign Subsidiaries or International Operations</u>**. The Borrower will not, and will not permit any Restricted Subsidiary to, allow any material change to be made in the character of its business as owners of minerals interests and mineral royalty interests and, subject to the last sentence of this <u>Section</u> <u>9.06</u>, other non-operating interests in upstream Oil and Gas Properties. The Borrower will not, and will not permit any Restricted Subsidiary to, acquire or make any other expenditure (whether such expenditure is capital, operating or otherwise) in or related to, any Oil and Gas Properties not located within the geographical boundaries of the United States and will not create or acquire any Subsidiaries that are Foreign Subsidiaries. The Borrower shall at all times remain organized under the laws of the United States of America or any State thereof or the District of Columbia. Notwithstanding the foregoing or anything to the contrary contained herein, the Borrower will not permit, at any time, the aggregate PV-9 attributable to the Borrower's and the Restricted Subsidiaries' ownership interests in: (a) mineral interests and mineral royalty interests to be less than ninety-two and one half percent (92.5%); or (b) non-operating interests in upstream Oil and Gas Properties to be greater than seven and one half percent (7.5%), in the case of each of the foregoing clauses (a) and (b), of the total value of the Oil and Gas Properties of the Borrower and the Restricted Subsidiaries (defined, solely for purpose of this <u>Section</u> <u>9.06</u>, as the sum of the PV-9 attributable to the Proved Developed Producing Reserves of the Borrower and the Restricted Subsidiaries <u>plus</u> the book value of Oil and Gas Properties of the Borrower and the Restricted Subsidiaries that do not have PV-9 attributable to them). The Borrower shall not, and shall not permit any Restricted Subsidiary to, own any operating interests in, or be an operator of, any Oil and Gas Properties. So long as the Equity Interests issued by the Borrower are not pledged as Collateral for the benefit of the Administrative Agent and the other Secured Parties pursuant to a Security Instrument, the Borrower shall not directly own any Oil and Gas Properties.

**Section 9.07 <u>Proceeds of Loans</u>**. The Borrower will not permit the proceeds of the Loans to be used for any purpose other than those permitted by <u>Section</u> <u>7.19</u>. None of the Parent, the General Partner, the Borrower or any Person acting on behalf of the Parent, the General Partner or the Borrower has taken or will take any action which might cause any of the Loan Documents to violate Regulations T, U or X or any other regulation of the Board or to violate Section 7 of the Securities Exchange Act of 1934 or any rule or regulation thereunder, in each case as now in effect or as the same may hereinafter be in effect. If requested by the Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender a statement to the foregoing effect in conformity with the requirements of FR Form U-1 or such other form referred to in Regulation U, Regulation T or Regulation X of the Board, as the case may be.

**Section 9.08 <u>Mergers, Etc</u><u>.</u>** The Borrower will not, and will not permit any Restricted Subsidiary to, merge into or with, divide or consolidate with any other Person, or permit any other Person to merge into, divide or consolidate with it, or sell, transfer, lease or otherwise Dispose of (whether in one transaction or in a series of transactions) all or substantially all of its Property to any other Person (whether now owned or hereafter acquired) (any such transaction, a "<u>consolidation</u>"), or liquidate or dissolve; *provided* that (a) any Restricted Subsidiary may participate in a consolidation with the Borrower or any Subsidiary Guarantor (*provided* that the Borrower shall be the continuing or surviving entity in any such transaction involving the Borrower, and a Subsidiary Guarantor shall be the continuing or surviving entity of any such transaction not involving the Borrower), (b) any Subsidiary Guarantor may participate in a consolidation with another Subsidiary Guarantor, (c) any Restricted Subsidiary may liquidate or

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dissolve so long as its assets (if any) are distributed to the Borrower or a Subsidiary Guarantor prior to such liquidation or dissolution, (d) a Restricted Subsidiary may merge or consolidate with another Person in connection with an Investment permitted under <u>Section</u> <u>9.05</u>, so long as such Restricted Subsidiary is the continuing or surviving entity and (e) any Person may merge into the Borrower or any Guarantor in connection with any Investment permitted hereunder.

**Section 9.09 <u>Sale of Properties and Termination of Swap Agreements</u>**. The Borrower will not, and will not permit any Restricted Subsidiary to, sell, assign, farm-out, convey, transfer or otherwise Dispose of any Property or to Liquidate any Swap Agreement except for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sale of Hydrocarbons and the lease of Oil and Gas Properties in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) farmouts of undeveloped acreage and assignments in connection with such farmouts and assignments in connection with such farmouts or the abandonment, farmout, trade, exchange, lease, sublease or other Disposition in the ordinary course of business of Oil and Gas Properties not containing proved reserves and which are not included in the most recently delivered Reserve Report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the sale or transfer of equipment that is obsolete, worn-out or no longer necessary for the business of the Borrower or such Restricted Subsidiary or is replaced by equipment of at least comparable value and use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Disposition of any Oil and Gas Property or any interest therein or any Restricted Subsidiary owning Oil and Gas Properties and the Liquidation of any Swap Agreement in respect of commodities; *provided* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) other than in the case of any Liquidation of any Swap Agreement in respect of commodities pursuant to <u>Section</u> <u>9.14(a)(ii)</u>, no Event of Default or Borrowing Base Deficiency exists or results from such Disposition of Property or the Liquidation of any Swap Agreement in respect of commodities (unless the net cash proceeds of such Dispositions, together with Unrestricted Cash, are concurrently applied to eliminate any Borrowing Base Deficiency that exists or results therefrom);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) in the case of any Liquidation of any Swap Agreement in respect of commodities, such Swap Agreement shall be "in the money" to the Borrower or any of the Restricted Subsidiaries, as applicable, and 100% of the consideration received in respect of such Liquidation shall be cash, and (B) in the case of any Disposition of Oil and Gas Properties or any interest therein or any Restricted Subsidiary owning Oil and Gas Properties, not less than 75% of the consideration received in respect of such sale or other disposition is cash; *provided* that, with respect to any Disposition, notwithstanding the foregoing requirement of this clause (B) (but, for the avoidance of doubt, subject to the other terms and conditions of this <u>Section</u> <u>9.09(d)</u>), the Borrower and/or its Restricted Subsidiaries may exchange Hydrocarbon Interests for other Hydrocarbon Interests with the same or better reserve classification, reserve characteristics, reserve lives and decline profiles so long as (1) the aggregate Borrowing Base value, as determined by the Administrative Agent, of all proved Oil and Gas Properties of the Borrower and the

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Restricted Subsidiaries exchanged for such other proved Oil and Gas Properties during any period between two successive Scheduled Redeterminations does not exceed two percent (2%) of the Borrowing Base then in effect, (2) to the extent that a Borrowing Base Deficiency could result from an adjustment to the Borrowing Base resulting from such Disposition, after the consummation of such Disposition(s), the Borrower shall have received net cash proceeds, or shall have cash on hand, sufficient to eliminate any such potential Borrowing Base Deficiency pursuant to <u>Section</u> <u>3.04(c)(iii)</u>, and (3) substantially contemporaneously with the closing of any such exchange, the Borrower or the applicable Restricted Subsidiary shall provide title information reasonably requested by the Administrative Agent with respect to, and grant a first-priority Lien (provided that Excepted Liens of the type described in clauses (a), (b), (c), (d), and (f) of the definition thereof may exist, but subject to the provisos at the end of such definition) on, any proved Oil and Gas Properties acquired in such exchange pursuant to Security Instruments in form and substance reasonably satisfactory to the Administrative Agent and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the consideration received in respect of such Disposition of any Borrowing Base Property or Liquidation of any Swap Agreement in respect of commodities shall be equal to or greater than the fair market value of the Borrowing Base Property, interest therein or Restricted Subsidiary subject of such Disposition, or Swap Agreement subject of such Liquidation (as reasonably determined by the board of directors (or equivalent body) of the Borrower and, if requested by the Administrative Agent, the Borrower shall deliver a certificate of a Responsible Officer of the Borrower certifying to that effect);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Borrowing Base shall be reduced, effective immediately upon such Disposition, by an amount and to the extent required by <u>Section</u> <u>2.07(e)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if any such Disposition is of a Restricted Subsidiary owning Oil and Gas Properties, such Disposition shall include all the Equity Interests of such Restricted Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) licenses of intellectual property, none of which, in the aggregate, materially impair the operation of the business of the Borrower or any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Disposition of Properties among the Credit Parties (including pursuant to a division or plan of division under Delaware law); *provided* that (i) with respect to any transfers of Equity Interests in any Restricted Subsidiaries of the Borrower, the requirements of <u>Section</u> <u>8.13(a)</u> are satisfied (without giving effect to any grace period for compliance provided for therein) and (ii) with respect to any transfer of Proved Oil and Gas Properties, the transferee delivers mortgages or other Security Instruments in favor of the Administrative Agent concurrently with such transfer, to the extent necessary to satisfy the requirements of <u>Section</u> <u>8.13</u> (without giving effect to any grace period for compliance provided for therein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any Liquidation of Swap Agreements required by <u>Section</u> <u>9.14(b)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Disposition of cash and Cash Equivalents in the ordinary course of business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) transfers of Property subject to a Casualty Event; *provided* that with respect to any Casualty Event involving a Borrowing Base Property, such transfer shall be considered a Disposition under <u>Section</u> <u>2.07(e)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Dispositions of the non-cash portion of consideration (other than any Oil and Gas Properties) received for any Disposition permitted by this <u>Section</u> <u>9.09</u>; provided that the consideration received in respect of such Disposition shall be cash or Cash Equivalents and for fair market value; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Restricted Payments permitted by <u>Section</u> <u>9.04</u> and Investments permitted by <u>Section</u> <u>9.05</u>.

**Section 9.10 <u>Environmental Matters</u>**. Except as could not reasonably be expected to have a Material Adverse Effect: the Borrower will not, and will not permit any Restricted Subsidiary to, cause or permit any of its Property to be in violation of, or do anything or permit anything to be done that could reasonably be expected to subject any such Property to a Release or threatened Release of Hazardous Materials or exposure to any Hazardous Materials in violation of Environmental Law, or to any Remedial Work under any Environmental Laws.

**Section 9.11 <u>Transactions with Affiliates</u>**. The Borrower will not, and will not permit any Restricted Subsidiary to, enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of Property or the rendering of any service, with any Affiliate unless such transactions are not prohibited under this Agreement and are upon fair and reasonable terms no less favorable to it than it would obtain in a comparable arm's length transaction with a Person not an Affiliate, other than (a) transactions by and among the Borrower and the Guarantors, (b) any Restricted Payment permitted by <u>Section</u> <u>9.04</u>, (c) Investments permitted under <u>Section</u> <u>9.05</u>, (d) the performance of employment, equity award, equity option or equity appreciation agreements, plans or other similar compensation or benefit plans or arrangements (including vacation plans, health and insurance plans, deferred compensation plans and retirement or savings plans) entered into by the Borrower or any Restricted Subsidiary in the ordinary course of its business with its employees, officers and directors, (e) fees and compensation to, and indemnity provided on behalf of, officers, directors, and employees of the Borrower (or any direct or indirect parent thereof) or any Restricted Subsidiary in their capacity as such, to the extent such fees and compensation are customary, (f) the payment of fees and expenses related to the Transactions and Public Company Compliance, and (g) issuances of Equity Interests of the Borrower to the extent otherwise permitted by this Agreement.

**Section 9.12 <u>ERISA Compliance</u>**. Except for actions that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, the Borrower will not, and will not permit any Subsidiary to, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) engage in, or permit any ERISA Affiliate to engage in, any transaction in connection with which the Borrower, a Subsidiary or any ERISA Affiliate could be subjected to either a civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502 of ERISA or a tax imposed by Chapter 43 of Subtitle D of the Code;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) fail to make, or permit any ERISA Affiliate to fail to make, full payment when due of all amounts which, under the provisions of any Plan, agreement relating thereto or applicable law, the Borrower, a Subsidiary or any ERISA Affiliate is required to pay as contributions thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) contribute to or assume an obligation to contribute to, or permit any ERISA Affiliate to contribute to or assume an obligation to contribute to (i) any employee welfare benefit plan, as defined in Section 3(1) of ERISA that provides benefits to former employees of such entities other than as required by applicable law that may not be terminated by such entities in their sole discretion at any time without liability, or (ii) any employee pension benefit plan, as defined in Section 3(2) of ERISA, that is subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Code.

**Section 9.13 <u>Negative Pledge Agreements; Dividend Restrictions</u>**. Borrower will not, and will not permit any Restricted Subsidiary to, create, incur, assume or suffer to exist any contract, agreement or understanding which in any way prohibits or restricts (or which requires the consent of or notice to other Persons in connection therewith) (a) the granting, conveying, creation or imposition of any Lien on any of its Property in favor of the Administrative Agent and the Secured Parties, (b) any Subsidiary from paying dividends or making distributions in respect of its Equity Interests to the Borrower or any Guarantor, (c) paying any Debt owed to the Borrower or any other Restricted Subsidiary, (d) making loans or advances to, or other Investments in, the Borrower or any other Restricted Subsidiary, or (e) transferring any of its Property to the Borrower or any other Restricted Subsidiary, other than (i) this Agreement, the Security Instruments, and the Second Lien Note Documents, (ii) customary restrictions and conditions with respect to the sale or disposition of Property or Equity Interests permitted under <u>Section</u> <u>9.09</u> pending the consummation of such sale or disposition, (iii) customary prohibitions on assignment contained in software license agreements, (iv) agreements and understandings contained in joint venture agreements or other similar agreements entered into in the ordinary course of business in respect of the disposition or distribution of assets of such joint venture, (v) any restrictions or conditions set forth in any agreement in effect at any time any Person becomes a Restricted Subsidiary by an acquisition permitted by this Agreement (but not any modification or amendment expanding the scope of any such restriction or condition), *provided* that such agreement was not entered into in contemplation of such Person becoming a Restricted Subsidiary and the restriction or condition set forth in such agreement does not apply to the Borrower or any other Restricted Subsidiary, (vi) customary provisions restricting subletting or assignment of any lease governing a leasehold interest (other than any Oil and Gas Property) of the Borrower or any Restricted Subsidiary, (vii) any restrictions set forth in any agreements with respect to Capital Leases permitted hereunder to the extent such restrictions only apply to the Property securing such Debt, (viii) restrictions on cash and other deposits or net worth imposed by customers under contracts entered into in the ordinary course of business, and (ix) restrictions that are imposed by any Governmental Requirement.

**Section 9.14 <u>Swap Agreements</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower will not, and will not permit any Restricted Subsidiary to, enter into any Swap Agreements with any Person other than:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Swap Agreements in the form of (x) swaps, (y) two-way collars and/or (z) costless collars with only one floor, with an Approved Counterparty in respect of commodities entered into not for speculative purposes the notional volumes for which (when aggregated with other commodity Swap Agreements then in effect other than basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date such Swap Agreement is entered into, (A) for the 24-month period (and for each month during such period) from the date such Swap Agreement is entered into, 90% of the reasonably anticipated projected production (measured on an MMBtu basis with respect to natural gas and a Bbl basis with respect to crude oil, as applicable, and not, for the avoidance of doubt, on an Mcf or volumetric basis) from the Borrower and the Restricted Subsidiaries' Oil and Gas Properties constituting Proved Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) for each of crude oil and natural gas, calculated separately and (B) for the 36-month period (and for each month during such period) commencing with the 25th month following the date such Swap Agreement is entered into, 85% of the reasonably anticipated projected production (measured on an MMBtu basis with respect to natural gas and a Bbl basis with respect to crude oil, as applicable, and not, for the avoidance of doubt, on an Mcf or volumetric basis) from the Borrower and the Restricted Subsidiaries' Oil and Gas Properties constituting Proved Reserves (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) for each of crude oil and natural gas, calculated separately; *provided*, *however*, that such Swap Agreements shall not, in any case, have a tenor of greater than 60 months (the "<u>Ongoing Hedges</u>"). In addition to the Ongoing Hedges, in connection with a proposed or pending acquisition permitted hereunder (a "<u>Proposed Acquisition</u>"), the Credit Parties may also enter into Swap Agreements in respect of commodities with Approved Counterparties and not for speculative purposes the notional volumes for which do not exceed for each month during the period during which such Swap Agreement is in effect, 10% of the Borrower and the Restricted Subsidiaries' existing projected production from Proved Oil and Gas Properties (as set forth in the most recent Reserve Report delivered pursuant to the terms of this Agreement) prior to the consummation of such Proposed Acquisition (such that the aggregate shall not be more than 100% of the reasonably anticipated projected production from the Credit Parties' Proved Oil and Gas Properties prior to the consummation of such Proposed Acquisition) for a period not exceeding 36 months from the date such Swap Agreement is entered into during the period between (x) the date on which such Credit Party signs a definitive acquisition agreement in connection with a Proposed Acquisition and (y) the earliest of (I) the date such Proposed Acquisition is consummated, (II) the date such Proposed Acquisition is terminated and (III) 90 days after such definitive acquisition agreement was executed (or such longer period as to which the Administrative Agent may agree in its sole discretion). If such Proposed Acquisition is terminated, all such Swap Agreements entered into with respect to a Proposed Acquisition must be terminated or unwound within 90 days following the date such Proposed Acquisition is terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Swap Agreements in respect of interest rates with an Approved Counterparty effectively converting interest rates from floating to fixed, the notional amounts of which (when aggregated with all other Swap Agreements of the Borrower and its Restricted Subsidiaries then in effect effectively converting interest rates from floating to fixed) do not exceed, as of the date such Swap Agreement is entered into, 75% of the then outstanding principal amount of the Borrower's Debt for borrowed money which bears interest at a floating rate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower will not, and will not permit any Restricted Subsidiary to, allow the aggregate notional volumes of all Swap Agreements in respect of commodities for any fiscal quarter (a "<u>Test Quarter</u>") (other than basis differential swaps on volumes already hedged pursuant to other Swap Agreements) to exceed 100% of actual production of crude oil and natural gas, as applicable, for such Test Quarter; *provided*, that, if the foregoing limit is exceeded, it shall not constitute a violation of this <u>Section</u> <u>9.14(b)</u> if the Borrower shall, (i) shall promptly, but in any event no later than three days after the end of such Test Quarter, notify the Administrative Agent of such excess and (ii) no later than thirty (30) days after the end of such Test Quarter, Liquidate existing Swap Agreements such that, at such date of Liquidation (the "<u>Swap Liquidation Date</u>"), after giving effect to any such Liquidation, hedged volumes for each calendar month succeeding such Test Quarter will comply with the requirements of <u>Section</u> <u>9.14(a)</u>, and for this purpose, <u>Section</u> <u>9.14(a)</u> shall be recalculated and tested as of the Swap Liquidation Date as if all outstanding Swap Agreements in respect of commodities (after giving effect to any such Liquidation) were being entered into on such Swap Liquidation Date (or provide the Administrative Agent other evidence satisfactory to it in its reasonable discretion demonstrating such compliance).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In no event shall any Swap Agreement contain any requirement, agreement or covenant for the Borrower or any Restricted Subsidiary to post collateral, credit support (including in the form of letters of credit) or margin to secure their obligations under such Swap Agreement or to cover market exposures (other than pursuant to the Security Instruments).

**Section 9.15 <u>Designation and Conversion of Restricted and Unrestricted Subsidiaries</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless designated as an Unrestricted Subsidiary on <u>Schedule</u> <u>7.13</u> as of the Signing Date or thereafter, assuming compliance with <u>Section</u> <u>9.15(b)</u>, any Person that becomes a Subsidiary of the Borrower or any of its Restricted Subsidiaries shall be classified as a Restricted Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower may designate, by written notification thereof to the Administrative Agent, any Restricted Subsidiary, including a newly formed or newly acquired Subsidiary, as an Unrestricted Subsidiary if (i) immediately prior, and immediately after giving effect, to such designation, no Event of Default or Borrowing Base Deficiency shall have occurred and be continuing, (ii) such designation is deemed to be an Investment in an Unrestricted Subsidiary in an amount equal to the fair market value as of the date of such designation of the Borrower's direct and indirect ownership interest in such Subsidiary and such Investment would be permitted to be made at the time of such designation under <u>Section</u> <u>9.05(k)</u> and (iii) such designation shall be deemed to be a Disposition of any Borrowing Base Properties owned by such Subsidiary pursuant to which the provisions of <u>Section</u> <u>9.09</u> and <u>Section</u> <u>2.07(e)</u> shall apply. Except as provided in this <u>Section</u> <u>9.15(b)</u>, no Restricted Subsidiary may be redesignated as an Unrestricted Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower may designate any Unrestricted Subsidiary to be a Restricted Subsidiary if after giving effect to such designation, (i) the representations and warranties of the

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Parent, the General Partner, the Borrower and its Restricted Subsidiaries contained in each of the Loan Documents are true and correct on and as of such date as if made on and as of the date of such redesignation (or, if stated to have been made expressly as of an earlier date, were true and correct as of such date), (ii) no Event of Default would exist, (iii) the Borrower shall be in compliance on a Pro Forma Basis with each financial covenant set forth in <u>Section</u> <u>9.01</u>, (iv) the Borrower complies with the requirements of <u>Section</u> <u>8.13</u>, (v) the designation of any Unrestricted Subsidiary as a Restricted Subsidiary shall constitute the incurrence at the time of designation of any Investment, Debt, or Liens of such Subsidiary existing at such time, and the Borrower shall be in compliance with <u>Article IX</u> after giving effect to such designation, (v) immediately after giving effect to such designation, the Borrower and such Subsidiary shall be in compliance with the requirements of <u>Section</u> <u>8.13</u> (without giving effect to any grace period for compliance provided for therein) and (vi) the Administrative Agent shall have received a certificate of a Responsible Officer, in form and substance reasonably satisfactory to the Administrative Agent, certifying as to the satisfaction of the conditions and matters set forth in clauses (i)-(iv) above (and in the case of clause (ii) above, setting forth reasonably detailed calculations demonstrating compliance on a Pro Forma Basis with the covenants set forth in <u>Section</u> <u>9.01</u>). Any such designation shall be treated as a cash dividend in an amount equal to the lesser of the fair market value of the Borrower's direct and indirect ownership interest in such Subsidiary or the amount of the Borrower's cash investment previously made for purposes of the limitation on Investments under <u>Section</u> <u>9.05(k)</u>.

**Section 9.16 <u>Limitation on Changes in Fiscal Periods</u>**. None of the Parent, the General Partner or the Borrower will make any change to the end of its fiscal year to end on a day other than December 31 or change any method of determining fiscal quarters.

**Section 9.17 <u>Amendments to Organizational Documents and Citadel Permitted Existing Trade Documents</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the Parent, the General Partner or the Borrower will, and the Borrower will not permit any of the other Credit Parties to directly or indirectly amend, modify or otherwise change, or permit any amendment, modification or other change to (pursuant to a waiver or otherwise), any organizational or governing document of the Parent, the General Partner, the Borrower or any of its Restricted Subsidiaries (including by the filing or modification of any certificate of designation (including, with respect to the Parent, the Series B Preferred Shares and the Series D Preferred Shares (to the extent outstanding as of the Effective Date)) or certificate formation or articles of incorporation, or any agreement or arrangement (including any shareholders' agreement) entered into, with respect to any of its Equity Interests), or enter into any new agreement with respect to any of its Equity Interests, except (a) (other than with respect to the Parent, the Series B Preferred Shares and the Series D Preferred Shares (to the extent outstanding as of the Effective Date)) in the case of any such amendments, modifications or changes or any such agreements or arrangements that do not materially adversely affect any right, privilege or interest of Administrative Agent or the Lenders under the Loan Documents or in the Collateral or (b) with respect to the Parent in the case of the Series B Preferred Shares and the Series D Preferred Shares (to the extent outstanding as of the Effective Date), such amendments, modifications or changes or any such agreements or arrangements that do not adversely affect the Administrative Agent or the Lenders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without the prior written consent of the Administrative Agent in its reasonable discretion, the Borrower will not amend, modify, waive or otherwise change, any of the terms of the Citadel Permitted Existing Trades or the Citadel Permitted Existing Trade Documents, and provided that the Borrower promptly furnishes to the Administrative Agent a copy of such amendment, modification, supplement or agreement; *provided* that this <u>Section</u> <u>9.17(b)</u> shall not prohibit the Liquidation of any Citadel Permitted Existing Trade or the assignment or novation of any Citadel Permitted Existing Trade from Citadel to a Lender (with the Borrower being the "remaining party" for purposes of such assignment or novation), in each case to the extent such Liquidation, assignment or novation is otherwise permitted by this Agreement.

**Section 9.18 <u>Outbound Investment Rules</u>**. Each of the Parent, the General Partner, the Borrower will not, and will not permit any of its Subsidiaries to, (a) be or become a "covered foreign person", as that term is defined in the Outbound Investment Rules, or (b) engage, directly or indirectly, in (i) a "covered activity" or a "covered transaction", as each such term is defined in the Outbound Investment Rules, (ii) any activity or transaction that would constitute a "covered activity" or a "covered transaction", as each such term is defined in the Outbound Investment Rules, if the Parent, the General Partner and the Borrower were a U.S. Person or (iii) any other activity that would cause the Administrative Agent or the Lenders to be in violation of the Outbound Investment Rules or cause the Administrative Agent or the Lenders to be legally prohibited by the Outbound Investment Rules from performing under this Agreement.

**Section 9.19 <u>Passive Holding Company</u>**. Neither the Parent nor the General Partner shall engage in any material operating or business activities; *provided* that the following and activities incidental thereto shall be permitted in any event: (a) its ownership of the Equity Interests of the Borrower and the Parent's ownership of the General Partner, (b) the maintenance of its legal existence (including the ability to incur fees, costs and expenses related thereto), (c) the performance of its obligations with respect to the Loan Documents and the Second Lien Note Documents, (d) solely in the case of the Parent, any public offering of its common stock or any other issuance or sale of its Equity Interests, (e) payment of taxes and dividends and making contributions to the capital of the Credit Parties, (f) participating in tax, accounting and other administrative matters or the making and filing of any reports required by any Governmental Authority, (g) holding any cash incidental to any activities permitted under this <u>Section</u> <u>9.19</u>, (h) providing indemnification to officers, managers and directors, (i) in the case of the General Partner, carrying out its obligations as the sole general partner of the Borrower and (j) managing, through its board, directors, officers and managers, the business of the Borrower and its Subsidiaries. For the avoidance of doubt, neither the Parent nor the General Partner shall (i) incur, create, assume or suffer to exist any Debt or other material liabilities or material financial obligations, except (A) nonconsensual obligations imposed by operation of law, (B) pursuant to any Loan Documents or Second Lien Note Documents to which it is a party, (C) obligations with respect to its Equity Interests, (ii) incur or suffer to exist any Liens on its Properties (now owned or hereafter acquired), except (A) Excepted Liens of the type described in clauses (a) through (d) and (f) of the definition thereof, but subject to the provisos at the end of such definition and (B) in the case of the General Partner, Liens securing the Obligations and Liens securing the Second Lien Obligations, (iii) own Equity Interests in any Person other than (A) in the case of the Parent, the Equity Interests in the Borrower and Equity Interests in the General Partner and (B) in the case of the General Partner, general partnership interests of the Borrower, or (iv) issue or permit to remain outstanding any preferred stock or series of preferred stock other than (A) preferred stock or series of preferred

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stock of the Parent that does not constitute Disqualified Capital Stock and provided that the proceeds of the issuance of such preferred stock or series of preferred stock are contributed to the Borrower contemporaneously with the issuance thereof and (B) with respect to the Parent, the Series B Preferred Shares and the Series D Preferred Shares, in each case, outstanding on the Effective Date. The Parent will not, and will not permit any of its Subsidiaries to, create, incur, assume or suffer to exist any contract, agreement or understanding which in any way prohibits or restricts (or which requires the consent of or notice to other Persons in connection therewith) the Borrower or any of its Restricted Subsidiaries from (a) granting, conveying or creating any Lien on any of their Properties, (b) paying dividends or making distributions in respect of its Equity Interests to the Borrower or any Guarantor or (c) incurring, creating, assuming or suffering to exist any Debt.

**ARTICLE X** 

**EVENTS OF DEFAULT; REMEDIES** 

**Section 10.01 <u>Events of Default</u>**. One or more of the following events shall constitute an "<u>Event of Default</u>":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LC Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof, by acceleration or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in <u>Section</u> <u>10.01(a)</u>) payable under any Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any representation or warranty made or deemed made by or on behalf of the Parent, the General Partner, the Borrower or any Restricted Subsidiary in or in connection with any Loan Document or any amendment or modification of any Loan Document or waiver under such Loan Document, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with any Loan Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made (or if already qualified by materiality or Material Adverse Effect, incorrect in any respect when made or deemed made);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Parent, the General Partner, the Borrower or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in <u>Section</u> <u>8.01(l)</u>, <u>Section</u> <u>8.02</u>, <u>Section</u> <u>8.03</u> (solely in respect of the Borrower), <u>Section</u> <u>8.13</u>, <u>Section</u> <u>8.16</u>, <u>Section</u> <u>8.20</u>, <u>Section</u> <u>8.21</u> or in <u>ARTICLE</u> <u>IX</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Parent, the General Partner, the Borrower or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in <u>Section</u> <u>10.01(a)</u>, <u>Section</u> <u>10.01(b)</u> or <u>Section</u> <u>10.01(d)</u>) or any other Loan Document, and such failure shall continue unremedied for a period of thirty (30) days after the earlier to occur of (i) receipt of notice thereof by the Borrower from the Administrative Agent

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(which notice will be given at the request of any Lender) or (ii) a Responsible Officer of the Parent, the General Partner, the Borrower or any Restricted Subsidiary otherwise becoming aware of such default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower or any Restricted Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Debt, when and as the same shall become due and payable and such failure continues beyond any applicable grace period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any event or condition occurs that results in any Material Debt becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Debt or any trustee or agent on its or their behalf to cause any Material Debt to become due (other than by a regularly scheduled required prepayment), or to require the Redemption thereof or any offer to Redeem to be made in respect thereof, prior to its scheduled maturity or require the Borrower or any Restricted Subsidiary to make an offer in respect thereof (other than any event requiring prepayment pursuant to customary asset sale or change of control provisions); *provided* that notwithstanding anything to the contrary contained in this Agreement, any "Event of Default" occurring under the Second Lien Note Purchase Agreement (each a "<u>Second Lien Event of Default</u>") shall constitute a continuing Event of Default under this <u>Section</u> <u>10.01(g)</u> (for the avoidance of doubt, irrespective of whether such Second Lien Event of Default has been waived pursuant to and in accordance with the terms of the Second Lien Note Purchase Agreement) unless (i) such Second Lien Event of Default is waived in writing by the Majority Lenders or (ii) solely in the case of any Second Lien Event of Default as a result of the Borrower's violation of Section 7.01(b) of the Second Lien Note Purchase Agreement (an "<u>Asset Coverage Ratio Default</u>"), the Borrower has exercised a cure right with respect to such Asset Coverage Ratio Default within the "Cure Period" (as defined in the Second Lien Note Purchase Agreement as in effect on the Effective Date (without giving effect to any waiver, amendment or modification thereto)) pursuant to and strictly in accordance with terms of Section 7.01(c) of the Second Lien Note Purchase Agreement as in effect on the Effective Date (without giving effect to any waiver, amendment or modification thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Parent, the General Partner, the Borrower or any Restricted Subsidiary as of such date or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Parent, the General Partner, the Borrower or any Restricted Subsidiary as of such date or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Parent, the General Partner, the Borrower or any Restricted Subsidiary as of such date shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in <u>Section</u> <u>10.01(h)</u>, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Parent, the General Partner, the Borrower or

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any Restricted Subsidiary as of such date or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) (i) one or more judgments for the payment of money in an aggregate amount in excess of the greater of (A) $10,000,000 and (B) 5.0% of the Borrowing Base then in effect (to the extent not covered by independent third-party insurance provided by insurers of the highest claims paying rating or financial strength as to which the insurer does not dispute coverage and is not subject to an insolvency proceeding) or (ii) any one or more non-monetary judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, shall be rendered against the Parent, the General Partner, the Borrower, any Restricted Subsidiary or any combination thereof and the same shall remain undischarged for a period of thirty (30) consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of the Parent, the General Partner, the Borrower or any Restricted Subsidiary to enforce any such judgment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Loan Documents after delivery thereof shall for any reason, except to the extent permitted by the terms thereof, cease to be in full force and effect and valid, binding and enforceable in accordance with their terms against the Parent, the General Partner, the Borrower or a Guarantor party thereto or shall be repudiated by any of them in writing, or cease to create a valid and perfected Lien of the priority required thereby in favor of the Administrative Agent on any material portion of the Collateral purported to be covered thereby, except to the extent permitted by the terms of this Agreement, or the Parent, the General Partner, the Borrower or any Restricted Subsidiary or any of their Affiliates shall so state in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) a Change in Control shall occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) an ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a liability of the Borrower and its Restricted Subsidiaries in an aggregate amount in excess of the greater of (A) $10,000,000 and (B) 5.0% of the Borrowing Base then in effect that is not covered by independent third party insurance provided by insurers of the highest claims paying rating or financial strength as to which the insurer does not dispute coverage and is not subject to an insolvency proceeding; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) the Second Lien Intercreditor Agreement shall for any reason, except to the extent permitted by the terms thereof, cease to be in full force and effect and valid, binding and enforceable in accordance with its terms against the Parent, the General Partner, the Borrower, any Guarantor, the Second Lien Agent, or any other party thereto, or shall be repudiated by any of them, or cease to establish the relative Lien priorities required or purported thereby, or the Borrower, any Guarantor, the Second Lien Agent, or any of their respective Affiliates shall so state in writing.

**Section 10.02 <u>Remedies</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the case of an Event of Default other than one described in <u>Section</u> <u>10.01(h)</u> or <u>Section</u> <u>10.01(i)</u>, at any time thereafter during the continuance of such Event of Default, the

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Administrative Agent may, and at the request of the Majority Lenders, shall, by notice to the Borrower, take either or both of the following actions, at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Notes and the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the General Partner, the Borrower and the Guarantors accrued hereunder and under the Notes and the other Loan Documents (including, without limitation, the payment of Cash Collateral to secure the LC Exposure as provided in <u>Section</u> <u>2.08(j)</u>), shall become due and payable immediately, without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other notice of any kind, all of which are hereby waived by the General Partner, the Borrower and each Guarantor; and in case of an Event of Default described in <u>Section</u> <u>10.01(h)</u> or <u>Section</u> <u>10.01(i)</u>, the Commitments shall automatically terminate and the Notes and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and the other obligations of the General Partner, the Borrower and the Guarantors accrued hereunder and under the Notes and the other Loan Documents (including, without limitation, the payment of Cash Collateral to secure the LC Exposure as provided in <u>Section</u> <u>2.08(j)</u>), shall automatically become due and payable, without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other notice of any kind, all of which are hereby waived by the General Partner, the Borrower and each Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of the occurrence of an Event of Default, the Administrative Agent and the Lenders will have all other rights and remedies available at law and equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All proceeds realized from the liquidation or other disposition of Collateral or otherwise received after maturity of the Loans, whether by acceleration or otherwise, shall be applied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *first*, to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Administrative Agent in its capacity as such;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *second*, pro rata to payment or reimbursement of that portion of the Obligations constituting fees, expenses and indemnities payable to the Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *third*, pro rata to payment of accrued interest on the Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *fourth*, pro rata to payment of (A) principal outstanding on the Loans, (B) LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time, (C) to serve as Cash Collateral to be held by the Administrative Agent to secure the remaining LC Exposure, (D) Obligations under Secured Swap Agreements owing to Secured Swap Parties, and (E) Secured Cash Management Obligations owing to Secured Cash Management Providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *fifth*, pro rata to any other Obligations; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *sixth*, any excess, after all of the Obligations shall have been indefeasibly paid in full in cash (other than contingent indemnity obligations for which no claims have been made), shall be paid to the Borrower or as otherwise required by any Governmental Requirement.

Notwithstanding the foregoing, amounts received from the Borrower or any Guarantor that is not an "eligible contract participant" under the Commodity Exchange Act shall not be applied to any Excluded Swap Obligations (it being understood, that in the event that any amount is applied to Obligations other than Excluded Swap Obligations as a result of this clause, the Administrative Agent shall make such adjustments as it determines are appropriate to distributions pursuant to clause *fourth* above from amounts received from "eligible contract participants" under the Commodity Exchange Act to ensure, as nearly as possible, that the proportional aggregate recoveries with respect to Obligations described in clause *fourth* above by the holders of any Excluded Swap Obligations are the same as the proportional aggregate recoveries with respect to other Obligations pursuant to clause *fourth* above).

**ARTICLE XI** 

**THE AGENTS** 

**Section 11.01 <u>Appointment; Powers</u>**. Each of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof and the other Loan Documents, together with such actions and powers as are reasonably incidental thereto.

**Section 11.02 <u>Duties and Obligations of Administrative Agent</u>**. The Administrative Agent shall not have any duties or obligations except those expressly set forth in the Loan Documents. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing (the use of the term "agent" herein and in the other Loan Documents with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law; rather, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties), (b) the Administrative Agent shall have no duty to take any discretionary action or exercise any discretionary powers, except as provided in <u>Section</u> <u>11.03</u>, and (c) except as expressly set forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Parent, the General Partner, the Borrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall be deemed not to have (A) notice of any of the events or circumstances set forth or described in <u>Section</u> <u>8.</u>02 unless and until written notice thereof stating that it is a "notice under Section 8.02" in respect of this Agreement and identifying the specific clause under said Section is given to the Administrative Agent by the Borrower or a Lender or (B) knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by the Borrower or a Lender, and shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered

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hereunder or under any other Loan Document or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or in any other Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, (v) the satisfaction of any condition set forth in <u>ARTICLE</u> <u>VI</u> or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent or as to those conditions precedent expressly required to be to the Administrative Agent's satisfaction, (vi) the existence, value, perfection or priority of any collateral security or the financial or other condition of the Borrower and its Subsidiaries or any other obligor or guarantor, or (vii) any failure by the Borrower or any other Person (other than itself) to perform any of its obligations hereunder or under any other Loan Document or the performance or observance of any covenants, agreements or other terms or conditions set forth herein or therein. For purposes of determining compliance with the conditions specified in <u>ARTICLE</u> <u>VI</u>, each Lender shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received written notice from such Lender prior to the proposed closing date specifying its objection thereto.

**Section 11.03 <u>Action by Administrative Agent</u>**. The Administrative Agent shall have no duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise in writing as directed by the Majority Lenders (or such other number, percentage or class of the Lenders as shall be necessary under the circumstances as provided in <u>Section</u> <u>12.02</u>) and in all cases the Administrative Agent shall be fully justified in failing or refusing to act hereunder or under any other Loan Documents unless it shall (a) receive written instructions from the Majority Lenders or the Lenders, as applicable, (or such other number, percentage or class of the Lenders as shall be necessary under the circumstances as provided in <u>Section</u> <u>12.02</u>) specifying the action to be taken and (b) be indemnified to its satisfaction by the Lenders against any and all liability and expenses which may be incurred by it by reason of taking or continuing to take any such action. The instructions as aforesaid and any action taken or failure to act pursuant thereto by the Administrative Agent shall be binding on all of the Lenders. If a Default has occurred and is continuing, then the Administrative Agent shall take such action with respect to such Default as shall be directed by the requisite Lenders in the written instructions (with indemnities) described in this <u>Section</u> <u>11.03</u>, *provided* that, unless and until the Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default as it shall deem advisable in the best interests of the Lenders. In no event, however, shall the Administrative Agent be required to take any action which exposes the Administrative Agent to personal liability or which is contrary to this Agreement, the Loan Documents or applicable law. If a Default has occurred and is continuing, no Arranger nor any Agent (other than the Administrative Agent) shall have any obligation to perform any act in respect thereof. The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Majority Lenders or the Lenders (or such other number, percentage or class of the Lenders as shall be necessary under the circumstances as provided in <u>Section</u> <u>12.02</u>), and otherwise the Administrative Agent shall not be liable for any action taken or not taken by it hereunder or under any other Loan Document or under any other document or instrument referred to or provided for herein or therein or in connection herewith or therewith

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INCLUDING ITS OWN ORDINARY NEGLIGENCE, except for its own gross negligence or willful misconduct.

**Section 11.04 <u>Reliance by Administrative Agent</u>**. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon and each of the Borrower, the Lenders and the Issuing Bank hereby waives the right to dispute the Administrative Agent's record of such statement, except in the case of gross negligence or willful misconduct by the Administrative Agent. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. The Administrative Agent may deem and treat the payee of any Note as the holder thereof for all purposes hereof unless and until a written notice of the assignment or transfer thereof permitted hereunder shall have been filed with the Administrative Agent.

**Section 11.05 <u>Subagents</u>**. The Administrative Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions of the preceding Sections of this <u>ARTICLE</u> <u>XI</u> shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.

**Section 11.06 <u>Resignation of Administrative Agent</u>**. Subject to the appointment and acceptance of a successor Administrative Agent as provided in this <u>Section</u> <u>11.06</u>, the Administrative Agent may resign at any time by notifying the Lenders, the Issuing Bank and the Borrower. Upon any such resignation, the Majority Lenders shall have the right, in consultation with the Borrower, and with the consent of the Borrower if no Event of Default has occurred and is then continuing, to appoint a successor. If no successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the Administrative Agent's resignation hereunder, the provisions of this <u>ARTICLE</u> <u>XI</u> and <u>Section</u> <u>12.03</u> shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent.

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**Section 11.07 <u>Agents as Lenders</u>**. Each bank serving as an Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not an Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Parent, the General Partner, the Borrower or any Subsidiary or other Affiliate thereof as if it were not an Agent hereunder.

**Section 11.08 <u>No Reliance</u>**. Each Lender and the Issuing Bank expressly acknowledges that none of the Administrative Agent, any Arranger or any of their respective Related Parties has made any representations or warranties to it and that no act taken or failure to act by the Administrative Agent, any Arranger or any of their respective Related Parties, including any consent to, and acceptance of any assignment or review of the affairs of the Borrower and any of its Subsidiaries or Affiliates shall be deemed to constitute a representation or warranty of the Administrative Agent or any of its Related Parties to any Lender, any Issuing Bank or any other Secured Party as to any matter, including whether the Administrative Agent or its Related Parties have disclosed material information in its (or its Related Parties') possession. Each Lender and the Issuing Bank expressly acknowledges, represents and warrants to the Administrative Agent and each Arranger that (a) the Loan Documents set forth the terms of a commercial lending facility, (b) it is engaged in making, acquiring, purchasing or holding commercial loans in the ordinary course and is entering into this Agreement and the other Loan Documents to which it is a party as a Lender for the purpose of making, acquiring, purchasing and/or holding the commercial loans set forth herein as may be applicable to it, and not for the purpose of investing in the general performance or operations of the Borrower and its Subsidiaries, or for the purpose of making, acquiring, purchasing or holding any other type of financial instrument such as a security, (c) it is sophisticated with respect to decisions to make, acquire, purchase or hold the commercial loans applicable to it and either it or the Person exercising discretion in making its decisions to make, acquire, purchase or hold such commercial loans is experienced in making, acquiring, purchasing or holding commercial loans, (d) it has, independently and without reliance upon the Administrative Agent, any Arranger, any other Lender or any of their respective Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and appraisal of, and investigations into, the business, prospects, operations, property, assets, liabilities, financial and other condition and creditworthiness of the Borrower and its Subsidiaries, all applicable bank or other regulatory laws relating to the Transactions and the transactions contemplated by this Agreement and the other Loan Documents and (e) it has made its own independent decision to enter into this Agreement and the other Loan Documents to which it is a party and to extend credit hereunder and thereunder. Each Lender and the Issuing Bank also acknowledges and agrees that (i) it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their respective Related Parties (A) continue to make its own credit analysis, appraisals and decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder based on such documents and information as it shall from time to time deem appropriate and its own independent investigations and (B) continue to make such investigations and inquiries as it deems necessary to inform itself as to the Borrower and its Subsidiaries and (ii) it will not assert any claim under any federal or state securities law or otherwise in contravention of this <u>Section</u> <u>11.08</u>. The Agents shall not be required to keep themselves informed as to the performance or observance by the Borrower or any of its Subsidiaries of this Agreement, the Loan Documents or any other document referred to or provided for herein or to inspect the Properties or books of the Borrower or its Subsidiaries. Except for

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notices, reports and other documents and information expressly required to be furnished to the Lenders by the Administrative Agent hereunder, no Agent or Arranger shall have any duty or responsibility to provide any Lender with any credit or other information concerning the affairs, financial condition or business of the Borrower (or any of its Affiliates) which may come into the possession of such Agent or any of its Affiliates. In this regard, each Lender acknowledges that Sidley Austin LLP is acting in this transaction as special counsel to the Administrative Agent only, except to the extent otherwise expressly stated in any legal opinion or any Loan Document. Each other party hereto will consult with its own legal counsel to the extent that it deems necessary in connection with the Loan Documents and the matters contemplated therein.

**Section 11.09 <u>Administrative Agent May File Proofs of Claim</u>**. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Parent, the General Partner, the Borrower or any of its Subsidiaries, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under <u>Section</u> <u>12.03</u>) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under <u>Section</u> <u>12.03</u>.

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

**Section 11.10 <u>Authority of Administrative Agent to Release Collateral, Liens and Guarantors</u>**. Each Lender (for itself and on behalf of any of its Affiliates that are or may become Secured Cash Management Providers and/or Secured Swap Parties) and the Issuing Bank hereby authorizes the Administrative Agent to (a) release any Collateral that is permitted to be sold or released pursuant to the terms of the Loan Documents (including, without limitation, any Collateral

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owned by a Restricted Subsidiary that is redesignated as an Unrestricted Subsidiary in accordance with <u>Section</u> <u>9.15(b)</u>), (b) release the Guarantee of any Subsidiary Guarantor and any Collateral owned by such Subsidiary Guarantor if 100% of the Equity Interests in such Subsidiary Guarantor are sold in a transaction permitted under the Loan Documents, (c) subordinate (or release) any Lien on any Property granted to or held by the Administrative Agent under any Loan Document to any Lien on such Property that is permitted by <u>Section</u> <u>9.03(c)</u>, (d) release any Subsidiary Guarantor if such Subsidiary becomes an Unrestricted Subsidiary, and (e) release all Liens on all Collateral and all Guarantees of Guarantors upon termination of this Agreement, termination of all Secured Swap Agreements (other than such Swap Agreements as to which arrangements satisfactory to the applicable counterparty in its sole discretion have been made), termination of all Letters of Credit (other than Letters of Credit as to which arrangements satisfactory to the Issuing Bank in its sole discretion have been made), and the payment in full in cash of all outstanding Loans, LC Disbursements, all other Obligations, and all other obligations payable under this Agreement and under any other Loan Document. Each Lender (for itself and on behalf of any of its Affiliates that are or may become Secured Cash Management Providers and/or Secured Swap Parties)and the Issuing Bank hereby authorizes the Administrative Agent to execute and deliver to the Borrower, at the Borrower's sole cost and expense, any and all releases of Liens, termination statements, assignments or other documents reasonably requested by the Borrower in connection with any sale or other disposition of Property to the extent such sale or other disposition is permitted by the terms of <u>Section</u> <u>9.09</u> or is otherwise authorized by the terms of the Loan Documents.

**Section 11.11 <u>The Arrangers and the Agents</u>**. The Arrangers and the Agents (other than the Administrative Agent) shall have no duties, responsibilities or liabilities under this Agreement and the other Loan Documents other than their duties, responsibilities and liabilities in their capacity as Lenders hereunder.

**Section 11.12 <u>Certain ERISA Matters</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender (i) represents and warrants, as of the date such Person became a Lender party hereto, to, and (ii) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, each Arranger, and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that at least one of the following is and will be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Benefit Plans in connection with the Loans, the Letters of Credit, or the Commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is

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applicable with respect to such Lender's entrance into, participation in, administration of, and performance of the Loans, the Letters of Credit, the Commitments, and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Section VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer, and perform the Loans, the Letters of Credit, the Commitments, and this Agreement, (C) the entrance into, participation in, administration of, and performance of the Loans, the Letters of Credit, the Commitments, and this Agreement satisfies the requirements of Section I(b) through (k) of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of Section I(a) of PTE 84-14 are satisfied with respect to such Lender's entrance into, participation in, administration of, and performance of the Loans, the Letters of Credit, the Commitments, and this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty, and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless subclause (i) in the immediately preceding clause (a) is true with respect to a Lender or such Lender has not provided another representation, warranty, and covenant as provided in subclause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, each Arranger, and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) none of the Administrative Agent, any Arranger, or any of their respective Affiliates is a fiduciary with respect to the assets of such Lender (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document, or any documents related to hereto or thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of, and performance of the Loans, the Letters of Credit, the Commitments, and this Agreement is independent (within the meaning of 29 CFR § 2510.3-21) and is a bank, an insurance carrier, an investment adviser, a broker-dealer, or other person that holds, or has under management or control, total assets of at least $50,000,000, in each case, as described in 29 CFR § 2510.3-21(c)(1)(i)(A)-(E);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of, and performance of the Loans, the Letters of Credit, the Commitments, and this Agreement is capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies (including in respect of the Obligations);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of, and performance of the Loans, the Letters of Credit, the Commitments, and this Agreement is a fiduciary under ERISA or the Code, or both, with respect to the Loans, the Letters of Credit, the Commitments, and this Agreement and is responsible for exercising independent judgment in evaluating the transactions hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no fee or other compensation is being paid directly to the Administrative Agent, any Arranger, or any of their respective Affiliates for investment advice (as opposed to other services) in connection with the Loans, the Letters of Credit, the Commitments, or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent and each Arranger hereby inform the Lenders that each such Person is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with the transactions contemplated hereby, and that such Person has a financial interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest or other payments with respect to the Loans, the Letters of Credit, the Commitments, and this Agreement, (ii) may recognize a gain if it extended the Loans, the Letters of Credit, or the Commitments for an amount less than the amount being paid for an interest in the Loans, the Letters of Credit, or the Commitments by such Lender or (iii) may receive fees or other payments in connection with the transactions contemplated hereby, the Loan Documents, or otherwise, including structuring fees, commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter of credit fees, fronting fees, deal-away or alternate transaction fees, amendment fees, processing fees, term out premiums, banker's acceptance fees, breakage or other early termination fees, or fees similar to the foregoing.

**Section 11.13 <u>Credit Bidding</u>**. The Secured Parties hereby irrevocably authorize the Administrative Agent, at the direction of the Majority Lenders, to credit bid all or any portion of the Obligations (including by accepting some or all of the Collateral in satisfaction of some or all of the Obligations pursuant to a deed in lieu of foreclosure or otherwise) and in such manner purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral (a) at any sale thereof conducted under the provisions of the Bankruptcy Code, including under Sections 363, 1123 or 1129 of the Bankruptcy Code, or any similar laws in any other jurisdictions to which a Credit Party is subject, or (b) at any other sale, foreclosure, or acceptance of collateral in lieu of debt conducted by (or with the consent or at the direction of) the Administrative Agent (whether by judicial action or otherwise) in accordance with any applicable law. In connection with any such credit bid and purchase, the Obligations owed to the Secured Parties shall be entitled to be, and shall be, credit bid by the Administrative Agent at the direction of the Majority Lenders on a ratable basis (with Obligations with respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that shall vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) for the asset or assets so purchased (or for the equity interests or debt instruments of the acquisition vehicle or vehicles that are issued in connection with such purchase). In connection with any such bid, (i) the Administrative Agent shall be authorized to form one or more acquisition vehicles and to assign any successful credit bid to such acquisition vehicle or vehicles, (ii) each of the Secured Parties'

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ratable interests in the Obligations which were credit bid shall be deemed without any further action under this Agreement to be assigned to such vehicle or vehicles for the purpose of closing such sale, (iii) the Administrative Agent shall be authorized to adopt documents providing for the governance of the acquisition vehicle or vehicles (*provided* that any actions by the Administrative Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or equity interests thereof, shall be governed, directly or indirectly, by, and the governing documents shall provide for, control by the vote of the Majority Lenders or their permitted assignees under the terms of this Agreement or the governing documents of the applicable acquisition vehicle or vehicles, as the case may be, irrespective of the termination of this Agreement and without giving effect to the limitations on actions by the Majority Lenders contained in <u>Section</u> <u>12.02</u> of this Agreement), (iv) the Administrative Agent on behalf of such acquisition vehicle or vehicles shall be authorized to issue to each of the Secured Parties, ratably on account of the relevant Obligations which was credit bid, interests, whether as equity, partnership, limited partnership interests, or membership interests, in any such acquisition vehicle and/or debt instruments issued by such acquisition vehicle or vehicles, all without the need for any Secured Party or acquisition vehicle to take any further action, and (v) to the extent that Obligations that is assigned to an acquisition vehicle is not used to acquire Collateral for any reason (as a result of another bid being higher or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of Obligations credit bid by the acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Secured Parties pro rata and the equity interests and/or debt instruments issued by any acquisition vehicle on account of such Obligations shall automatically be cancelled, without the need for any Secured Party or any acquisition vehicle to take any further action. Notwithstanding that the ratable portion of the Obligations of each Secured Party is deemed assigned to the acquisition vehicle or vehicles as set forth in clause (ii) above, each Secured Party shall execute such documents and provide such information regarding the Secured Party (and/or any designee of the Secured Party which will receive interests in or debt instruments issued by such acquisition vehicle or vehicles) as the Administrative Agent may reasonably request in connection with the formation of any acquisition vehicle, the formulation or submission of any credit bid, or the consummation of the transactions contemplated by such credit bid.

**Section 11.14 <u>Erroneous Payments</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Administrative Agent notifies a Lender, Issuing Bank or Secured Party, or any Person who has received funds on behalf of a Lender, Issuing Bank or Secured Party such Lender or Issuing Bank (any such Lender, Issuing Bank, Secured Party or other recipient, a "<u>Payment Recipient</u>") that the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice under immediately succeeding <u>clause (b)</u>) that any funds received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, Issuing Bank, Secured Party or other Payment Recipient on its behalf) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "<u>Erroneous Payment</u>") and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such Lender, Issuing Bank or Secured Party shall (or, with respect to any Payment Recipient

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who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two (2) Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this <u>clause (a)</u> shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting immediately preceding <u>clause (a)</u>, each Lender, Issuing Bank or Secured Party, or any Person who has received funds on behalf of a Lender, Issuing Bank or Secured Party such Lender or Issuing Bank, hereby further agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) that such Lender, Issuing Bank or Secured Party, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part) in each case:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of immediately preceding <u>clauses (x)</u> or <u>(y)</u>, an error shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) an error has been made (in the case of immediately preceding <u>clause (z)</u>), in each case, with respect to such payment, prepayment or repayment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender, Issuing Bank or Secured Party shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one (1) Business Day of its knowledge of such error) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this <u>Section</u> <u>11.14(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Lender, Issuing Bank or Secured Party hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender, Issuing Bank or Secured Party under any Loan Document, or otherwise payable or distributable by the Administrative Agent to such Lender, Issuing Bank or Secured Party from any source, against any amount due to the Administrative Agent under immediately preceding <u>clause (a)</u> or under the indemnification provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with immediately preceding <u>clause (a)</u>, from any Lender or Issuing Bank that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf) (such unrecovered amount, an "<u>Erroneous Payment Return Deficiency</u>"), upon the Administrative Agent's notice to

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such Lender or Issuing Bank at any time, (i) such Lender or Issuing Bank shall be deemed to have assigned its Loans (but not its Commitments) with respect to which such Erroneous Payment was made (the "<u>Erroneous Payment Impacted Class</u>") in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Loans (but not Commitments) of the Erroneous Payment Impacted Class, the "<u>Erroneous Payment Deficiency Assignment</u>") at par <u>plus</u> any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance), and is hereby (together with the Borrower) deemed to execute and deliver an Assignment and Assumption (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to electronic communications as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and such Lender or Issuing Bank shall deliver any Notes evidencing such Loans to the Borrower or the Administrative Agent, (ii) the Administrative Agent as the assignee Lender shall be deemed to acquire the Erroneous Payment Deficiency Assignment, (iii) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender or Issuing Bank, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender or assigning Issuing Bank shall cease to be a Lender or Issuing Bank, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement and its applicable Commitments which shall survive as to such assigning Lender or assigning Issuing Bank and (iv) the Administrative Agent may reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. The Administrative Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender or Issuing Bank shall be reduced by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender or Issuing Bank (and/or against any recipient that receives funds on its respective behalf). For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender or Issuing Bank and such Commitments shall remain available in accordance with the terms of this Agreement. In addition, each party hereto agrees that except to the extent that the Administrative Agent has sold a Loan (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether the Administrative Agent may be equitably subrogated, the Administrative Agent shall be contractually subrogated to all the rights and interests of the applicable Lender, Issuing Bank or Secured Party under the Loan Documents with respect to each Erroneous Payment Return Deficiency (the "<u>Erroneous Payment Subrogation Rights</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The parties hereto agree that an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower or any other Credit Party, except, in each case, to the extent such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrower or any other Credit Party for the purpose of making such Erroneous Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent permitted by applicable law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim

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or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including without limitation waiver of any defense based on "discharge for value" or any similar doctrine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each party's obligations, agreements and waivers under this <u>Section</u> <u>11.1</u><u>4</u> shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a Lender or Issuing Bank, the termination of the Commitments and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.

**ARTICLE XII** 

**MISCELLANEOUS** 

**Section 12.01 <u>Notices</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except in the case of notices and other communications expressly permitted to be given by telephone (and subject to <u>Section</u> <u>12.01(b)</u>), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Parent, the General Partner or the Borrower, to it at:

2000 Market Street, Suite 910

Philadelphia, PA 19103

Attention: Jeffrey Slotterback

Email: jslotterback@whitehawkenergy.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Administrative Agent or to the Issuing Bank, to it at:

Capital One, National Association

800 Capitol Street, Suite 3400

Houston, Texas 77002

Attention: Mason McGurrin, Head of Oil & Gas Banking

Email: mason.mcgurrin@capitalone.com

With a copy to:

Capital One, National Association

800 Capitol Street, Suite 3400

Houston, Texas 77002

Attention: Christopher Kuna, Senior Director

Email: christopher.kuna@capitalone.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if to any other Lender, to it at its address (or facsimile number or email address) set forth in its
Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative

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Agent; *provided* that the foregoing shall not apply to notices pursuant to <u>ARTICLE</u> <u>II</u>, <u>ARTICLE</u> <u>III</u>, <u>ARTICLE</u> <u>IV</u> and <u>ARTICLE</u> <u>V</u> unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; *provided* that approval of such procedures may be limited to particular notices or communications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by fax shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered through electronic communications, to the extent provided in <u>Section</u> <u>12.01(b)</u>, shall be effective as provided in <u>Section</u> <u>12.01(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing <u>clause (i)</u>, of notification that such notice or communication is available and identifying the website address therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any party hereto may change its address, facsimile number or email address for notices and other communications hereunder by notice to the other parties hereto.

**Section 12.02 <u>Waivers; Amendments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No failure on the part of the Administrative Agent, any other Agent, the Issuing Bank or any Lender to exercise and no delay in exercising, and no course of dealing with respect to, any right, power or privilege, or any abandonment or discontinuance of steps to enforce such right, power or privilege, under any of the Loan Documents shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege under any of the Loan Documents preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies of the Administrative Agent, any other Agent, the Issuing Bank and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or any other Loan Document or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by <u>Section</u> <u>12.02(b)</u>, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any other Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default at the time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither this Agreement nor any provision hereof nor any Security Instrument nor, in each case, any provision thereof may be waived, amended or modified except pursuant to an

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agreement or agreements in writing entered into by the Borrower and the Majority Lenders or by the Borrower and the Administrative Agent with the consent of the Majority Lenders; *provided* that no such agreement shall (i) (A) increase the Commitment, Elected Commitment or the Maximum Credit Amount of any Lender without the written consent of such Lender, or (B) increase the Aggregate Maximum Credit Amounts without the consent of each Lender (other than any Defaulting Lender), (ii) increase the Borrowing Base without the written consent of each Lender (other than any Defaulting Lender), decrease or maintain the Borrowing Base without the consent of the Required Lenders, or modify <u>Section</u> <u>2.07</u> in any manner that results in an increase in the Borrowing Base without the consent of each Lender (other than any Defaulting Lender) (it being understood that (A) a Scheduled Redetermination may be postponed by the Required Lenders and (B) any waiver, consent, amendment or other modification to <u>Section</u> <u>2.07(e)</u> or <u>Section</u> <u>2.07(f)</u> that would waive, amend, postpone or modify the implementation of any reduction of the Borrowing Base that would otherwise occur pursuant to <u>Section</u> <u>2.07(e)</u> or <u>Section</u> <u>2.07(f)</u>, as the case may be, shall only require the written consent of the Required Lenders), (iii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, or reduce any other Obligations hereunder or under any other Loan Document, without the written consent of each Lender affected thereby (other than default rate interest provided hereunder which may be amended, reduced or waived by the Majority Lenders), (iv) postpone the scheduled date of payment or prepayment of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder, or any other Obligations hereunder or under any other Loan Document, or reduce the amount of, waive or excuse any such payment, or postpone or extend the Maturity Date without the written consent of each Lender affected thereby, (v) change <u>Section</u> <u>2.06</u> in a manner that would alter the ratable reduction of Commitments required thereby or <u>Section</u> <u>4.01(b)</u> or <u>Section</u> <u>4.01(c)</u> in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, (vi) waive or amend <u>Section</u> <u>3.04(c)(i)</u>, <u>Section</u> <u>6.02</u>, <u>Section</u> <u>8.13</u>, <u>Section</u> <u>10.02(c)</u> (or amend any of the defined terms in such Section if the result would be to alter the priority of payments in respect of Collateral proceeds) or <u>Section</u> <u>12.14</u> or change the definition of the terms "Domestic Subsidiary", "Foreign Subsidiary", "Applicable Percentage", or "Subsidiary", without the written consent of each Lender (other than any Defaulting Lender), (vii) release any Guarantor (except as set forth in <u>Section</u> <u>11.10</u> or in the Guarantee and Collateral Agreement) or release any of the Liens securing the Collateral (other than as provided in <u>Section</u> <u>11.10)</u>, or reduce the percentages set forth in <u>Section</u> <u>8.13(a)</u> to less than (a) prior to the Discharge of Second Lien Obligations, 90% and (b) following the Discharge of Second Lien Obligations, 85%, in each case, without the written consent of each Lender (other than any Defaulting Lender), (viii) change any of the provisions of this <u>Section</u> <u>12.02(b)</u> or the definition of the terms "Majority Lenders", "Required Lenders", "Supermajority Lenders" or any other provision hereof specifying the number, percentage or class of Lenders required to waive, amend or modify any rights hereunder or under any other Loan Documents or make any determination or grant any consent hereunder or any other Loan Documents, without the written consent of each Lender (other than any Defaulting Lender), (ix) amend or otherwise modify any Security Instrument in a manner that results in the Secured Swap Obligations or Secured Cash Management Obligations secured by such Security Instrument no longer being secured thereby on an equal and ratable basis with the principal of the Loans, or amend or otherwise change the definition of "Citadel Permitted Existing Trades," "Secured Swap Agreement," "Secured Swap Obligations" or "Secured Swap Party", or, in each case, the defined terms referenced in any such definition, without the written consent of each

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Secured Swap Party adversely affected thereby, or the definition of "Collateral", "Obligations", "Secured Parties", "Secured Cash Management Agreement," "Secured Cash Management Obligations" or "Secured Cash Management Provider," without the written consent of each Secured Cash Management Provider adversely affected thereby, or (x) (A) contractually subordinate the Obligations in right of payment to any other Debt for borrowed money or (B) contractually subordinate the liens in the Collateral to the liens securing any other Debt for borrowed money; *provided further* that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent, any other Agent or the Issuing Bank hereunder or under any other Loan Document without the prior written consent of the Administrative Agent, such other Agent or the Issuing Bank, as the case may be. Notwithstanding the foregoing, (A) any supplement to <u>Schedule</u> <u>7.13</u> (Subsidiaries) shall be effective simply by delivering to the Administrative Agent a supplemental schedule clearly marked as such and, upon receipt, the Administrative Agent will promptly deliver a copy thereof to the Lenders, (B) the Borrower and the Administrative Agent may amend this Agreement or any other Loan Document without the consent of the Lenders in order to correct, amend or cure any ambiguity, inconsistency or defect or correct any typographical error or other manifest error in any Loan Document, (C) the Administrative Agent and the Borrower (or other applicable Credit Party) may enter into any amendment, modification or waiver of this Agreement or any other Loan Document or enter into any agreement or instrument to effect the granting, perfection, protection, expansion or enhancement of any security interest in any Mortgaged Property or Property to become Mortgaged Property to secure the Obligations for the benefit of the Lenders or as required by any Governmental Requirement to give effect to, protect or otherwise enhance the rights or benefits of any Lender under the Loan Documents without the consent of any Lender, (D) the Administrative Agent and the Borrower may, without the consent of any Lender, enter into amendments or modifications to this Agreement or any of the other Loan Documents or to enter into additional Loan Documents as the Administrative Agent reasonably deems appropriate in order to implement any Benchmark Replacement or any Conforming Changes or otherwise effectuate the terms of <u>Section</u> <u>3.03(c)</u> in accordance with the terms of <u>Section</u> <u>3.03(c)</u>, (E) any fee letter may be amended solely with the written consent of the parties thereto and (F) each Lender hereby irrevocably authorizes the Administrative Agent on its behalf, and without further consent of any Lender (but with the consent of the Borrower and the Administrative Agent), to amend and restate this Agreement if, upon giving effect to such amendment and restatement, such Lender shall no longer be a party to this Agreement (as so amended and restated), the Commitment of such Lender shall have terminated, such Lender shall have no other commitment or other obligation hereunder and shall have been paid in full all principal, interest, and other amounts owing to it or accrued for its account under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary herein the Administrative Agent and the Borrower may amend and restate the Schedules to this Agreement delivered as of the Signing Date to reflect the Updated Schedules in accordance with <u>Section</u> <u>6.02(t)</u>.

**Section 12.03 <u>Expenses, Indemnity; Damage Waiver</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including, without limitation, the reasonable and documented fees, charges and disbursements of counsel and other outside consultants for the Administrative Agent, the reasonable travel, photocopy, mailing, courier,

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telephone and other similar expenses in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration (both before and after the execution hereof and including advice of counsel to the Administrative Agent as to the rights and duties of the Administrative Agent and the Lenders with respect thereto) of this Agreement and the other Loan Documents and any amendments, modifications or waivers of or consents related to the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated) (it being understood that for purposes of this clause (a)(i), legal fees and expenses shall be limited to the reasonable and documented out-of-pocket fees and expenses of Sidley Austin LLP and one local counsel as reasonably necessary in any relevant jurisdiction (and solely in the case of any actual conflict of interest, one additional counsel and (if reasonably necessary) one local counsel in each relevant jurisdiction to the affected Indemnitees similarly situated)), (ii) all costs, expenses and Other Taxes incurred by any Agent or any Lender in connection with any filing, registration, recording or perfection of any security interest contemplated by this Agreement or any Security Instrument or any other document referred to therein, (iii) all reasonable out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder, and (iv) all out-of-pocket expenses incurred by any Agent, the Issuing Bank or any Lender, including the fees, charges and disbursements of any counsel for any Agent, the Issuing Bank or any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement or any other Loan Document, including its rights under this <u>Section</u> <u>12.03</u>, or in connection with the Loans made or Letters of Credit issued hereunder, including, without limitation, all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit (including all respective legal fees and expenses), except in the case of out-of-pocket expenses described in this <u>Section</u> <u>12.03(a)</u> to the extent that <u>Section</u> <u>12.03(b)</u> expressly provides that the Borrower or any other Credit Party shall not indemnify such party for such out-of-pocket expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) THE BORROWER SHALL INDEMNIFY EACH AGENT, EACH ARRANGER, THE ISSUING BANK AND EACH LENDER, AND EACH RELATED PARTY OF ANY OF THE FOREGOING PERSONS (EACH SUCH PERSON BEING CALLED AN "<u>INDEMNITEE</u>") AGAINST, AND DEFEND AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES, PENALTIES, LIABILITIES AND RELATED EXPENSES, (INCLUDING ALL RESPECTIVE LEGAL FEES AND EXPENSES, WHICH SHALL BE LIMITED TO THE REASONABLE AND DOCUMENTED OUT-OF-POCKET FEES AND EXPENSES OF ONE COUNSEL TO ALL INDEMNITEES TAKEN AS A WHOLE AND ONE LOCAL COUNSEL IN EACH RELEVANT JURISDICTION (AND SOLELY IN THE CASE OF AN ACTUAL CONFLICT OF INTEREST, ONE ADDITIONAL COUNSEL TO THE AFFECTED INDEMNITEES, TAKEN AS A WHOLE AND (IF REASONABLY NECESSARY) ONE LOCAL COUNSEL, IN ANY RELEVANT JURISDICTION)), INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF (i) THE EXECUTION OR DELIVERY OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR THEREBY, THE PERFORMANCE BY THE PARTIES HERETO OR THE PARTIES TO ANY OTHER LOAN DOCUMENT OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR THEREUNDER OR THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY OR BY ANY OTHER LOAN DOCUMENT, (ii) THE FAILURE OF THE PARENT, THE GENERAL

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PARTNER, THE BORROWER OR ANY SUBSIDIARY TO COMPLY WITH THE TERMS OF ANY LOAN DOCUMENT, INCLUDING THIS AGREEMENT, OR WITH ANY GOVERNMENTAL REQUIREMENT, (iii) ANY INACCURACY OF ANY REPRESENTATION OR ANY BREACH OF ANY WARRANTY OR COVENANT OF THE PARENT, THE GENERAL PARTNER, THE BORROWER OR ANY RESTRICTED SUBSIDIARY SET FORTH IN ANY OF THE LOAN DOCUMENTS OR ANY INSTRUMENTS, DOCUMENTS OR CERTIFICATIONS DELIVERED IN CONNECTION THEREWITH, (iv) ANY LOAN OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS THEREFROM, INCLUDING, WITHOUT LIMITATION, (A) ANY REFUSAL BY THE ISSUING BANK TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF CREDIT IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY COMPLY WITH THE TERMS OF SUCH LETTER OF CREDIT, OR (B) THE PAYMENT OF A DRAWING UNDER ANY LETTER OF CREDIT NOTWITHSTANDING THE NON-COMPLIANCE, NON-DELIVERY OR OTHER IMPROPER PRESENTATION OF THE DOCUMENTS PRESENTED IN CONNECTION THEREWITH, (v) ANY OTHER ASPECT OF THE LOAN DOCUMENTS, (vi) THE OPERATIONS OF THE BUSINESS OF THE PARENT, THE GENERAL PARTNER, THE BORROWER AND ITS SUBSIDIARIES BY THE PARENT, THE GENERAL PARTNER, THE BORROWER AND ITS SUBSIDIARIES, (vii) ANY ASSERTION THAT THE LENDERS WERE NOT ENTITLED TO RECEIVE THE PROCEEDS RECEIVED PURSUANT TO THE SECURITY INSTRUMENTS, (viii) ANY LIABILITY OF THE BORROWER OR ANY SUBSIDIARY UNDER ENVIRONMENTAL LAW APPLICABLE TO THE BORROWER OR ANY SUBSIDIARY OR ANY OF THEIR PROPERTIES OR OPERATIONS, INCLUDING, THE PRESENCE, GENERATION, STORAGE, RELEASE, THREATENED RELEASE, USE, TRANSPORT, DISPOSAL, ARRANGEMENT OF DISPOSAL OR TREATMENT OF HAZARDOUS MATERIALS ON OR AT ANY OF THEIR PROPERTIES, (ix) THE BREACH OR NON-COMPLIANCE BY THE BORROWER OR ANY SUBSIDIARY WITH ANY ENVIRONMENTAL LAW APPLICABLE TO THE BORROWER OR ANY SUBSIDIARY, (x) THE PAST OWNERSHIP BY THE BORROWER OR ANY SUBSIDIARY OF ANY OF THEIR PROPERTIES OR PAST ACTIVITY ON ANY OF THEIR PROPERTIES WHICH, THOUGH LAWFUL AND FULLY PERMISSIBLE AT THE TIME, COULD RESULT IN PRESENT LIABILITY, (xi) THE PRESENCE, USE, RELEASE, STORAGE, TREATMENT, DISPOSAL, GENERATION, THREATENED RELEASE, TRANSPORT, ARRANGEMENT FOR TRANSPORT OR ARRANGEMENT FOR DISPOSAL OF HAZARDOUS MATERIALS ON, AT OR FROM ANY OF THE PROPERTIES OWNED OR OPERATED BY THE BORROWER OR ANY SUBSIDIARY OR ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS MATERIALS ON OR FROM ANY PROPERTY OWNED OR OPERATED BY THE BORROWER OR ANY OF ITS SUBSIDIARIES, (xii) ANY ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO THE BORROWER OR ANY OF ITS SUBSIDIARIES OR IN CONNECTION WITH THE LOAN DOCUMENTS, OR (xiii) ANY ACTUAL OR PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY, WHETHER BROUGHT BY A THIRD PARTY OR BY ANY CREDIT PARTY, AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY THERETO, AND SUCH INDEMNITY SHALL EXTEND TO EACH INDEMNITEE NOTWITHSTANDING THE SOLE OR CONCURRENT NEGLIGENCE OF EVERY KIND OR

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CHARACTER WHATSOEVER, WHETHER ACTIVE OR PASSIVE, WHETHER AN AFFIRMATIVE ACT OR AN OMISSION, INCLUDING WITHOUT LIMITATION, ALL TYPES OF NEGLIGENT CONDUCT IDENTIFIED IN THE RESTATEMENT (SECOND) OF TORTS OF ONE OR MORE OF THE INDEMNITEES OR BY REASON OF STRICT LIABILITY IMPOSED WITHOUT FAULT ON ANY ONE OR MORE OF THE INDEMNITEES INCLUDING ORDINARY NEGLIGENCE; *PROVIDED* THAT SUCH INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR RELATED EXPENSES (A) ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL AND NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE OR ANY OF ITS RELATED PARTIES OR (B) RESULT FROM A PROCEEDING SOLELY BETWEEN OR AMONG INDEMNITEES THAT DOES NOT INVOLVE ANY ACTION OR OMISSION BY THE PARENT, THE GENERAL PARTNER, THE BORROWER OR ANY RESTRICTED SUBSIDIARY, OTHER THAN CLAIMS AGAINST ANY OF THE ADMINISTRATIVE AGENT OR THE LENDERS OR ANY OF THEIR AFFILIATES SOLELY IN ITS CAPACITY OR IN FULFILLING ITS ROLE AS THE ADMINISTRATIVE AGENT, ISSUING BANK, AN ARRANGER, AN AGENT OR ANY SIMILAR ROLE UNDER THIS AGREEMENT. THIS <u>SECTION</u> <u>12.03(b)</u> SHALL NOT APPLY WITH RESPECT TO TAXES OTHER THAN ANY TAXES THAT REPRESENT LOSSES, CLAIMS, DAMAGES, ETC. ARISING FROM ANY NON-TAX CLAIM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent that the Borrower fails to pay any amount required to be paid by it to any Agent, any Arranger, the Issuing Bank or any Related Party of any of the foregoing under <u>Section</u> <u>12.03(a)</u>, <u>(b)</u> or <u>(d)</u>, each Lender severally agrees to pay to such Agent, such Arranger such Issuing Bank or such Related Party (each, an "<u>Agent-Related Person</u>"), as the case may be, such Lender's Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought or, if such payment is sought after the Release Date, ratably in accordance with such Applicable Percentage immediately prior to such date) of such unpaid amount and agrees to indemnify and hold each Agent-Related Person harmless from and against any and all losses, claims (including intraparty claims), demands, damages or liabilities of any kind and related expenses, including the fees, charges and disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted against such Agent-Related Person in any way relating to or arising out of the Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent-Related Person under or in connection with any of the foregoing; <u>provided</u> that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against such Agent, such Arranger or the Issuing Bank in its capacity as such. The agreements in this <u>Section</u> <u>12.03(c)</u> shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All amounts due under this <u>Section</u> <u>12.03</u> shall be payable promptly after written demand therefor.

**Section 12.04 <u>Successors and Assigns</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) none of the Parent, the General Partner or the Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Parent, the General Partner, the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this <u>Section</u> <u>12.04</u>. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in <u>Section</u> <u>12.04(c)</u>) and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Subject to the conditions set forth in <u>Section</u> <u>12.04(b)(ii)</u> below, any Lender may assign to one or more assignees (other than the Borrower, any Affiliate of the Borrower, any Defaulting Lender, any Disqualified Institution or any natural person (or any holding company, investment vehicle, or trust owned and operated for the primary benefit of a natural person)) all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld, conditioned or delayed) of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Borrower, *provided* that no consent of the Borrower shall be required if such assignment is to an existing Lender, an Affiliate of an existing Lender, an Approved Fund or, if any Event of Default has occurred and is continuing, is to any other assignee; *provided*, *further* that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Administrative Agent and the Issuing Bank, *provided* that no consent of the Administrative Agent shall be required for an assignment to an assignee that is a Lender immediately prior to giving effect to such assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Assignments shall be subject to the following additional conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund or an assignment of the entire remaining amount of the assigning Lender's Commitment or Loans, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $2,500,000 unless each of the Borrower and the Administrative Agent otherwise consent, *provided* that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) each total assignment shall be made as an assignment of all the assigning Lender's rights and obligations under this Agreement, including, without limitation, its Commitment, Maximum Credit Amount, LC Exposure, participations in Letters of Credit, and outstanding Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) in no event may any Lender assign all or a portion of its rights and obligations under this Agreement to the Borrower, any Affiliate of the Borrower, any Defaulting Lender, any Disqualified Institution or any natural person (or any holding company, investment vehicle, or trust owned and operated for the primary benefit of a natural person).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Subject to <u>Section</u> <u>12.04(b)(iv)</u> and the acceptance and recording thereof, from and after the effective date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of <u>Section</u> <u>5.01</u>, <u>Section</u> <u>5.02</u>, <u>Section</u> <u>5.03</u> and <u>Section</u> <u>12.03</u>). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this <u>Section</u> <u>12.04</u> shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with <u>Section</u> <u>12.04(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Maximum Credit Amount and Elected Commitment of, and principal

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amount (and stated interest) of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the "<u>Register</u>"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent, the Issuing Bank and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower, the Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable prior notice. In connection with any changes to the Register, if necessary, the Administrative Agent will reflect the revisions on <u>Annex</u> <u>I</u> and forward a copy of such revised <u>Annex</u> <u>I</u> to the Borrower, the Issuing Bank and each Lender. This <u>Section</u> <u>12.04(b)(iv)</u> shall be construed so that the Loans are at all times maintained in "registered form" within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code and any related regulations (and any successor provisions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the assignee's completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in <u>Section</u> <u>12.04(b)</u> and any written consent to such assignment required by <u>Section</u> <u>12.04(b)</u>, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this <u>Section</u> <u>12.04(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) Any Lender may, without the consent of the Parent, the General Partner, the Borrower, the Administrative Agent or the Issuing Bank, sell participations to one or more banks or other Persons (other than the Borrower, any Affiliate of the Borrower, any Defaulting Lender, any Disqualified Institution or any natural person (or any holding company, investment vehicle, or trust owned and operated for the primary benefit of a natural person)) (a "<u>Participant</u>") in all or a portion of such Lender's rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); *provided* that (A) such Lender's obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (C) the Borrower, the Administrative Agent, the Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; *provided* that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the proviso to <u>Section</u> <u>12.02</u> that affects such Participant. Subject to <u>Section</u> <u>12.04(c)(ii)</u>, the Borrower agrees that each Participant shall be entitled to the benefits of <u>Section</u> <u>5.01</u>, <u>Section</u> <u>5.02</u> and <u>Section</u> <u>5.03</u> to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to <u>Section</u> <u>12.04(b)</u>. To the extent permitted by law, each Participant also shall be entitled to the benefits of <u>Section</u> <u>12.08</u> as though it were a Lender, provided such Participant agrees to be subject to <u>Section</u> <u>4.01(c)</u> as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of

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each Participant's interest in the Loans or other obligations under the Loan Documents (the "<u>Participant Register</u>"); *provided* that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Participant agrees (A) to be subject to the provisions of <u>Section</u> <u>5.03</u> (subject to the requirements and limitations therein, including the requirements under Section 5.03(f) (it being understood that the documentation required under <u>Section</u> <u>5.03(f)</u> shall be delivered to the participating Lender)) as if it were an assignee under paragraph (b) of this Section; and (B) that it shall not be entitled to receive any greater payment under <u>Section</u> <u>5.01</u> or <u>Section</u> <u>5.03</u>, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including, without limitation, any pledge or assignment to secure obligations to a Federal Reserve Bank or other central bank having jurisdiction over such Lender, and this <u>Section</u> <u>12.04</u> shall not apply to any such pledge or assignment of a security interest; *provided* that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding any other provisions of this <u>Section</u> <u>12.04</u>, no transfer or assignment of the interests or obligations of any Lender or any grant of participations therein shall be permitted if such transfer, assignment or grant would require the Borrower and the Guarantors to file a registration statement with the SEC or to qualify the Loans under the "Blue Sky" laws of any state.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Disqualified Institutions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No assignment or participation shall be made to any Person that was a Disqualified Institution as of the date (the "<u>Trade Date</u>") on which the assigning or transferring Lender entered into a binding agreement to sell and assign, or grant a participation in, all or a portion of its rights and obligations under this Agreement, as applicable, to such Person unless the Administrative Agent and the Borrower have consented in writing in their sole and absolute discretion to such assignment or participation, in which case such Person will not be considered a Disqualified Institution

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for the purpose of such assignment or participation. For the avoidance of doubt, (x) no assignment or participation shall be retroactively invalidated pursuant to this <u>Section</u> <u>12.04(f)</u> if the Trade Date therefor occurred prior to the assignee's or participant's becoming a Disqualified Institution (including as a result of the delivery of a notice pursuant to, and/or the expiration of the notice period referred to in, the definition of "Disqualified Institution"), and (y) the execution by the Borrower or Administrative Agent of an Assignment and Assumption with respect to such an assignment will not by itself result in such assignee no longer being considered a Disqualified Institution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Administrative Agent and each assignor of a Loan or seller of a participation hereunder shall be entitled to rely conclusively on a representation of the assignee Lender or Participant in the relevant Assignment or participation agreement, as applicable, that such assignee or purchaser is not a Disqualified Institution. The Administrative Agent shall have the right, and the Borrower hereby expressly authorizes the Administrative Agent, to (A) post the list of Disqualified Institutions provided by the Borrower and any updates thereto from time to time (collectively, the "<u>DQ List</u>") on an E-System, including that portion of such E-System that is designated for "public side" Lenders and/or (B) provide the DQ List to each Lender requesting the same. Any assignment to a Disqualified Institution or grant or sale of participation to a Disqualified Institution in violation of this <u>Section</u> <u>12.04(f)</u> shall not be void, but the other provisions of this <u>Section</u> <u>12.04(f)</u> shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If any assignment or participation is made to any Disqualified Institution without the consents required by this <u>Section</u> <u>12.04(f)</u> and/or <u>Section</u> <u>12.04(b)</u>, or if any Person becomes a Disqualified Institution after the applicable Trade Date, the Borrower may, at its sole expense and effort, upon notice to the applicable Disqualified Institution and the Administrative Agent, (1) terminate the Commitment of such Disqualified Institution and pay or cause to be paid all Obligations of the Borrower owing to such Disqualified Institution in connection with such Commitment, (2) in the case of outstanding Loans held by Disqualified Institutions, purchase or prepay (or cause to be purchased or prepaid) such Term Loan by paying the lesser of (x) the principal amount thereof and (y) the amount that such Disqualified Institution paid to acquire such Term Loans, in each case plus accrued interest, accrued fees and all other amounts (other than principal amounts) payable to it hereunder and/or (C) require such Disqualified Institution to assign, without recourse (in accordance with and subject to the restrictions and conditions contained in this <u>Section</u> <u>12.04</u>), all of its interest, rights and obligations under this Agreement and the other Loan Documents to one or more assignees at the lesser of (x) the principal amount thereof and (y) the amount that such Disqualified Institution paid to acquire such interests, rights and obligations of such Loans, in each case plus accrued interest, accrued fees and all other amounts (other than principal amounts) payable to it hereunder. Any Loan so purchased by a Borrower under this <u>Section</u> <u>12.04(f)</u> shall upon such purchase be deemed to be irrevocably prepaid, terminated, extinguished, cancelled and of no further force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding anything to the contrary contained in this Agreement, Disqualified Institutions (1) will not have the right to (x) receive information, reports or other materials provided to the Administrative Agent or Lenders by the Borrower, the Administrative Agent or any other Lender, (y) attend or participate (including by

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telephone) in meetings attended by any of the Lenders and/or the Administrative Agent, or (z) access any electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders and (2) (x) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) under this Agreement or any other Loan Document, each Disqualified Institution will be deemed to have consented in the same proportion as the Lenders that are not Disqualified Institutions consented to such matter, and (y) for purposes of voting on any plan of reorganization pursuant to Section 1126 of the Bankruptcy Code or any similar plan, each Disqualified Institution party hereto hereby agrees (1) not to vote on such plan, (2) if such Disqualified Institution does vote on such plan notwithstanding the restriction in the immediately foregoing clause (1), such vote will be deemed not to be in good faith and shall be "designated" pursuant to Section 1126(e) of the Bankruptcy Code (or any similar provision in any other similar federal, state or foreign law affecting creditor's rights), and such vote shall not be counted in determining whether the applicable class has accepted or rejected such plan in accordance with Section 1126(c) of the Bankruptcy Code (or any similar provision in any other similar federal, state or foreign law affecting creditor's rights) and (3) not to contest any request by any party for a determination by the Bankruptcy Court (or other applicable court of competent jurisdiction) effectuating the foregoing clause (2).

**Section 12.05 <u>Survival; Revival; Reinstatement</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All covenants, agreements, representations and warranties made by the Parent, the General Partner, the Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, any other Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The provisions of <u>Section</u> <u>5.01</u>, <u>Section</u> <u>5.02</u>, <u>Section</u> <u>5.03</u> and <u>Section</u> <u>12.03</u> and <u>ARTICLE</u> <u>XI</u> shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement, any other Loan Document or any provision hereof or thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent that any payments on the Obligations or proceeds of any Collateral are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, debtor in possession, receiver or other Person under any bankruptcy law, common law or equitable cause, then to such extent, the Obligations so satisfied shall be revived and continue as if such payment or proceeds had not been received and the Administrative Agent's and the Lenders' Liens, security interests, rights, powers and remedies under this Agreement and each Loan Document shall continue in full force and effect. In such event, each Loan Document shall be automatically reinstated and the Borrower shall take such action as may be reasonably requested by the Administrative Agent and the Lenders to effect such reinstatement.

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**Section 12.06 <u>Counterparts; Integration; Effectiveness</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof and thereof. **THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT WITH RESPECT TO THE SUBJECT MATTER CONTAINED HEREIN AND THEREIN AMONG THE PARTIES HERETO AND THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as provided in <u>Section</u> <u>6.02</u>, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic transmission (*e.g.*,.pdf) shall be effective as delivery of a manually executed counterpart of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Electronic Execution</u>. The words "execute," "execution," "signed," "signature," "delivery" and words of like import in or related to this Agreement, any other Loan Document or any document, amendment, approval, consent, waiver, modification, information, notice, certificate, report, statement, disclosure, or authorization to be signed or delivered in connection with this Agreement or any other Loan Document or the transactions contemplated hereby shall be deemed to include Electronic Signatures or execution in the form of an Electronic Record, and contract formations on electronic platforms approved by the Administrative Agent, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. Each party hereto agrees that any Electronic Signature or execution in the form of an Electronic Record shall be valid and binding on itself and each of the other parties hereto to the same extent as a manual, original signature. For the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or acceptance by the parties of a manually signed paper which has been converted into electronic form (such as scanned into PDF format), or an electronically signed paper converted into another format, for transmission, delivery and/or retention. Notwithstanding anything contained herein to the contrary, the

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Administrative Agent is under no obligation to accept an Electronic Signature in any form or in any format unless expressly agreed to by the Administrative Agent pursuant to procedures approved by it; *provided* that, without limiting the foregoing, (a) to the extent the Administrative Agent has agreed to accept such Electronic Signature from any party hereto, the Administrative Agent and the other parties hereto shall be entitled to rely on any such Electronic Signature purportedly given by or on behalf of the executing party without further verification and (b) upon the request of the Administrative Agent or any Lender, any Electronic Signature shall be promptly followed by an original manually executed counterpart thereof. Without limiting the generality of the foregoing, each party hereto hereby (i) agrees that, for all purposes, including without limitation, in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among the Administrative Agent, the Lenders and any of the Credit Parties, electronic images of this Agreement or any other Loan Document (in each case, including with respect to any signature pages thereto) shall have the same legal effect, validity and enforceability as any paper original, and (ii) waives any argument, defense or right to contest the validity or enforceability of the Loan Documents based solely on the lack of paper original copies of any Loan Documents, including with respect to any signature pages thereto.

**Section 12.07 <u>Severability</u>**. Any provision of this Agreement or any other Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof or thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

**Section 12.08 <u>Right of Setoff</u>**. Subject to <u>Section</u> <u>12.14</u>, if an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations (of whatsoever kind, including, without limitations obligations under Swap Agreements) at any time owing by such Lender or Affiliate to or for the credit or the account of the Borrower or any Restricted Subsidiary against any of and all the obligations of the Borrower or any Restricted Subsidiary owed to such Lender now or hereafter existing under this Agreement or any other Loan Document, irrespective of whether or not such Lender shall have made any demand under this Agreement or any other Loan Document and although such obligations may be unmatured. The rights of each Lender under this <u>Section</u> <u>12.08</u> are in addition to other rights and remedies (including other rights of setoff) which such Lender or its Affiliates may have. Each Lender and Issuing Bank agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff and application.

**Section 12.09 <u>Governing Law; Jurisdiction; Consent to Service of Process</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THE LOAN DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR

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OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EITHER CASE LOCATED IN NEW YORK COUNTY, NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS NON-EXCLUSIVE AND DOES NOT PRECLUDE A PARTY FROM OBTAINING JURISDICTION OVER ANOTHER PARTY IN ANY COURT OTHERWISE HAVING JURISDICTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) EACH PARTY HEREBY (i) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN; (ii) IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; (iii) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS; AND (iv) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS <u>SECTION</u> <u>12.09</u>; *PROVIDED* THAT THE FOREGOING SHALL NOT LIMIT THE INDEMNITY AND REIMBURSEMENT OBLIGATIONS TO THE EXTENT SET FORTH IN <u>SECTION 12.03(b)</u> IN RESPECT OF ANY THIRD PARTY CLAIMS ALLEGING SUCH SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) EACH PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT THE ADDRESS SPECIFIED IN SECTION 12.01 OR SUCH OTHER ADDRESS AS IS SPECIFIED PURSUANT TO <u>SECTION 12.01</u> (OR ITS ASSIGNMENT AND ASSUMPTION), SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY OR ANY HOLDER OF A NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANOTHER PARTY IN ANY OTHER JURISDICTION.

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**Section 12.10 <u>Headings</u>**. Article and Section headings and the **Table of Contents** used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

**Section 12.11 <u>Non-Public Information; Confidentiality</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Public Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Distribution of Materials to Lenders and the Issuing Bank</u>. The Borrower acknowledges and agrees that (A) the Loan Documents and all reports, notices, communications and other information or materials provided or delivered by, or on behalf of, the Credit Parties hereunder (collectively, the "<u>Borrower Materials</u>") may be disseminated by, or on behalf of, the Administrative Agent, and made available, to the Lenders and the Issuing Bank by posting such Borrower Materials on an E-System; and (B) certain of the Lenders (each a "<u>Public Lender</u>") may have personnel who do not wish to receive material non-public information ("<u>MNPI</u>") with respect to the Borrower or its Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons' securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Material Non-Public Information</u>. The Borrower shall (A) identify in writing, and (B) to the extent reasonably practicable, clearly and conspicuously mark all Borrower Materials that contain only information that is publicly available or that is not material for purposes of United States federal and state securities laws as "PUBLIC". The Borrower agrees that by identifying such Borrower Materials as "PUBLIC" or publicly filing such Borrower Materials with the Securities and Exchange Commission, then the Administrative Agent, the Lenders and the Issuing Bank shall be entitled to treat such Borrower Materials as not containing any MNPI for purposes of United States federal and state securities laws. The Borrower further represents, warrants, acknowledges and agrees that the following documents and materials shall be deemed to be PUBLIC, whether or not so marked, and do not contain any MNPI: (I) the Loan Documents, including the schedules and exhibits attached thereto, and (II) administrative materials of a customary nature prepared by the Borrower or any of its Subsidiaries or the Administrative Agent (including, Borrowing Requests, Interest Election Requests, requests for the issuance, amendment, renewal or extension of Letters of Credit, and any similar requests or notices posted on or through an E-System). Before distribution of Borrower Materials, the Borrower agrees to execute and deliver to the Administrative Agent a letter authorizing distribution of the evaluation materials to prospective Lenders and their employees willing to receive MNPI, and a separate letter authorizing distribution of evaluation materials that do not contain MNPI and represent that no MNPI is contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Administrative Agent, each Lender and the Issuing Bank acknowledges and agrees that it may receive MNPI hereunder concerning the Credit Parties and their Affiliates and agrees to use such information in compliance with all relevant policies, procedures and applicable laws (including United States federal and state securities laws and regulations). Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the "Private Side Information" or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender's compliance procedures and applicable

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law, including United States Federal and state securities Laws, to make reference to Borrower Materials that are not made available through the "Public Side Information" portion of the E-System and that may contain material non-public information with respect to the Parent or its securities for purposes of United States Federal or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Confidentiality</u>. Each of the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates' directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority or self-regulatory authority (including the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement or any other Loan Document, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this <u>Section</u> <u>12.11</u>, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement, (ii) any actual or prospective counterparty (or its advisors) to any Swap Agreement relating to the Borrower or any Restricted Subsidiary and their obligations or (iii) any actual or potential insurer or reinsurer, (g) with the consent of the Borrower, (h) to any nationally recognized rating agency that requires access to information about a Lender's investment portfolio in connection with ratings issued with respect to such Lender or to any collector of market data or (i) to the extent such Information (i) becomes publicly available other than as a result of a breach of this <u>Section</u> <u>12.11</u> or (ii) becomes available to the Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis from a source other than the Borrower. For the purposes of this <u>Section</u> <u>12.11</u>, "Information" means all information received from the Borrower or any Restricted Subsidiary relating to the Parent, the General Partner, the Borrower or any Restricted Subsidiary and their businesses, other than any such information that is available to the Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by the Parent, the General Partner, the Borrower or a Restricted Subsidiary; *provided* that, in the case of information received from the Parent, the General Partner, the Borrower or any Restricted Subsidiary after the Signing Date, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this <u>Section</u> <u>12.11</u> shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. Notwithstanding anything herein to the contrary, "Information" shall not include, and the Parent, the General Partner, the Borrower, the Borrower's Restricted Subsidiaries, the Administrative Agent, each Lender and the respective Affiliates of each of the foregoing (and the respective partners, directors, officers, employees, agents, advisors and other representatives of the aforementioned Persons), and any other party, may disclose to any and all Persons, without limitation of any kind (A) any information with respect to the United States federal and state income tax treatment of the transactions contemplated hereby and any facts that may be relevant to understanding the United States federal or state income tax treatment of such transactions ("tax structure"), which facts shall not include for this purpose the names of the parties or any other person named herein, or information that would permit identification of the

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parties or such other persons, or any pricing terms or other nonpublic business or financial information that is unrelated to such tax treatment or tax structure, and (B) all materials of any kind (including opinions or other tax analyses) that are provided to the Borrower, the Administrative Agent or such Lender relating to such tax treatment or tax structure. For the avoidance of doubt, nothing herein prohibits any individual from communicating or disclosing information regarding suspected violations of laws, rules or regulations to a governmental, regulatory or self-regulatory authority without any notification to any Person.

**Section 12.12 <u>Interest Rate Limitation</u>**. It is the intention of the parties hereto that each Lender shall conform strictly to usury laws applicable to it. Accordingly, if the transactions contemplated hereby would be usurious as to any Lender under laws applicable to it (including the laws of the United States of America and the State of New York or any other jurisdiction whose laws may be mandatorily applicable to such Lender notwithstanding the other provisions of this Agreement), then, in that event, notwithstanding anything to the contrary in any of the Loan Documents or any agreement entered into in connection with or as security for the Loans, it is agreed as follows: (a) the aggregate of all consideration which constitutes interest under law applicable to any Lender that is contracted for, taken, reserved, charged or received by such Lender under any of the Loan Documents or agreements or otherwise in connection with the Loans shall under no circumstances exceed the maximum amount allowed by such applicable law, and any excess shall be canceled automatically and if theretofore paid shall be credited by such Lender on the principal amount of the Obligations (or, to the extent that the principal amount of the Obligations shall have been or would thereby be paid in full, refunded by such Lender to the Borrower); and (b) in the event that the maturity of the Loans is accelerated by reason of an election of the holder thereof resulting from any Event of Default under this Agreement or otherwise, or in the event of any required or permitted prepayment, then such consideration that constitutes interest under law applicable to any Lender may never include more than the maximum amount allowed by such applicable law, and excess interest, if any, provided for in this Agreement or otherwise shall be canceled automatically by such Lender as of the date of such acceleration or prepayment and, if theretofore paid, shall be credited by such Lender on the principal amount of the Obligations (or, to the extent that the principal amount of the Obligations shall have been or would thereby be paid in full, refunded by such Lender to the Borrower). All sums paid or agreed to be paid to any Lender for the use, forbearance or detention of sums due hereunder shall, to the extent permitted by law applicable to such Lender, be amortized, prorated, allocated and spread throughout the stated term of the Loans evidenced by the Loan Documents until payment in full so that the rate or amount of interest on account of any Loans hereunder does not exceed the maximum amount allowed by such applicable law. If at any time and from time to time (i) the amount of interest payable to any Lender on any date shall be computed at the Highest Lawful Rate applicable to such Lender pursuant to this <u>Section</u> <u>12.12</u> and (ii) in respect of any subsequent interest computation period the amount of interest otherwise payable to such Lender would be less than the amount of interest payable to such Lender computed at the Highest Lawful Rate applicable to such Lender, then the amount of interest payable to such Lender in respect of such subsequent interest computation period shall continue to be computed at the Highest Lawful Rate applicable to such Lender until the total amount of interest payable to such Lender shall equal the total amount of interest which would have been payable to such Lender if the total amount of interest had been computed without giving effect to this <u>Section</u> <u>12.12</u>.

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**Section 12.13 <u>Exculpation Provisions</u>**. EACH OF THE PARTIES HERETO SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND AGREES THAT IT IS CHARGED WITH NOTICE AND KNOWLEDGE OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; THAT IT HAS IN FACT READ THIS AGREEMENT AND IS FULLY INFORMED AND HAS FULL NOTICE AND KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS OF THIS AGREEMENT; THAT IT HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND HAS RECEIVED THE ADVICE OF ITS ATTORNEY IN ENTERING INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND THAT IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS RESULT IN ONE PARTY ASSUMING THE LIABILITY INHERENT IN SOME ASPECTS OF THE TRANSACTION AND RELIEVING THE OTHER PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY. EACH PARTY HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ON THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION IS NOT "CONSPICUOUS."

**Section 12.14 <u>Collateral Matters; Swap Agreements; Action by Secured Parties</u>**. The benefit of the Security Instruments and of the provisions of this Agreement relating to any Collateral securing the Obligations shall also extend to and be available to Secured Swap Parties and Secured Cash Management Providers on a pro rata basis (but subject to the terms of the Loan Documents, including, without limitation, provisions thereof relating to the application and priority of payments to the Persons entitled thereto) in respect of Secured Swap Obligations and Secured Cash Management Obligations. Except as provided in Section <u>12.02(b)</u>, no Secured Swap Party or Secured Cash Management Provider shall have any voting rights under any Loan Document as a result of the existence of any Secured Swap Obligation or Secured Cash Management Obligation owed to it.

**Section 12.15 <u>No Third Party Beneficiaries</u>**. This Agreement, the other Loan Documents, and the agreement of the Lenders to make Loans and the Issuing Bank to issue, amend, renew or extend Letters of Credit hereunder are solely for the benefit of the Borrower, and no other Person (including, without limitation, the Parent, the General Partner or any Subsidiary of the Borrower, any obligor, contractor, subcontractor, supplier or materialsman) shall have any rights, claims, remedies or privileges hereunder or under any other Loan Document against the Administrative Agent, any other Agent, the Issuing Bank or any Lender for any reason whatsoever. There are no third party beneficiaries other than to the extent contemplated by the last sentence of <u>Section</u> <u>12.04(a)</u>, Persons indemnified hereunder and other Secured Parties not party hereto.

**Section 12.16 <u>USA Patriot Act Notice</u><u>; Anti-Money Laundering Laws</u>**. Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "Patriot Act") or any other Anti-Money Laundering Laws, it is required to (i) obtain, verify and record information that identifies the Credit Parties, which information includes the name and address of the Credit Parties and other information that will allow such Lender to identify the Credit Parties in accordance with the Patriot Act or such Anti-Money Laundering Laws and (ii) obtain Beneficial Ownership Certification in relation to the Borrower to the extent that it qualifies as a "legal entity customer" under the Beneficial Ownership Regulation.

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**Section 12.17 <u>No Advisory or Fiduciary Responsibility</u>**. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), each of the Parent, the General Partner and the Borrower acknowledges and agrees, and acknowledges its Subsidiaries' understanding, that: (a)(i) no fiduciary, advisory or agency relationship between the Parent, the General Partner, the Borrower and its Subsidiaries and the Administrative Agent or any Lender is intended to be or has been created in respect of the transactions contemplated hereby or by the other Loan Documents, irrespective of whether the Administrative Agent or any Lender has advised or is advising the Parent, the General Partner, the Borrower or any Subsidiary on other matters; (ii) the arranging and other services regarding this Agreement provided by the Administrative Agent and the Lenders are arm's-length commercial transactions between the Parent, the General Partner, the Borrower and its Subsidiaries, on the one hand, and the Administrative Agent and the Lenders, on the other hand; (iii) each of the Parent, the General Partner and the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent that it has deemed appropriate; and (iv) each of the Parent, the General Partner and the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; and (b)(i) the Administrative Agent and the Lenders each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Parent, the General Partner, the Borrower or any of its Subsidiaries, or any other Person; (ii) neither the Administrative Agent nor the Lenders has any obligation to the Parent, the General Partner, the Borrower or any of its Subsidiaries with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent and the Lenders and their respective Affiliates may be engaged, for their own accounts or the accounts of customers, in a broad range of transactions that involve interests that differ from those of the Parent, the General Partner, the Borrower and its Subsidiaries, and neither the Administrative Agent nor the Lenders has any obligation to disclose any of such interests to the Parent, the General Partner, the Borrower or its Subsidiaries. To the fullest extent permitted by Law, each of the Parent, the General Partner and the Borrower hereby waives and releases any claims that it may have against the Administrative Agent and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

**Section 12.18 <u>Acknowledgement and Consent to Bail-In of</u> <u>Affected Financial Institution</u>**. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

**Section 12.19 <u>Acknowledgement Regarding Any Supported QFCs</u>**. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for any Swap Agreement or any other agreement or instrument that is a QFC (such support, "<u>QFC Credit Support</u>", and each such QFC, a "<u>Supported QFC</u>"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "U<u>.S.</u> <u>Special Resolution Regimes</u>") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event a Covered Entity that is party to a Supported QFC (each, a "<u>Covered Party</u>") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As used in this <u>Section</u> <u>12.19</u>, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>BHC Act Affiliate</u>" of a party means an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Covered Entity</u>" means any of the following: (i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "<u>Default Right</u>" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "<u>QFC</u>" has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

**Section 12.20 <u>Intercreditor Agreement</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **EACH LENDER HEREBY (I) INSTRUCTS AND AUTHORIZES THE ADMINISTRATIVE AGENT TO EXECUTE AND DELIVER THE SECOND LIEN INTERCREDITOR AGREEMENT ON ITS BEHALF, (II) AUTHORIZES AND DIRECTS THE ADMINISTRATIVE AGENT TO EXERCISE ALL OF THE ADMINISTRATIVE AGENT'S RIGHTS AND TO COMPLY WITH ALL OF ITS OBLIGATIONS UNDER THE SECOND LIEN INTERCREDITOR AGREEMENT, (III) AGREES THAT THE ADMINISTRATIVE AGENT MAY TAKE ACTIONS ON ITS BEHALF AS IS CONTEMPLATED BY THE TERMS OF THE SECOND LIEN INTERCREDITOR AGREEMENT, AND (IV) UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT AT ALL TIMES FOLLOWING THE EXECUTION AND DELIVERY OF THE SECOND LIEN INTERCREDITOR AGREEMENT SUCH LENDER (AND EACH OF ITS SUCCESSORS AND ASSIGNS) SHALL BE BOUND BY THE TERMS THEREOF.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **EACH LENDER ACKNOWLEDGES THAT IT HAS REVIEWED AND IS SATISFIED WITH THE TERMS AND PROVISIONS OF THE SECOND LIEN INTERCREDITOR AGREEMENT AND ACKNOWLEDGES AND AGREES THAT SUCH LENDER IS RESPONSIBLE FOR MAKING ITS OWN ANALYSIS AND REVIEW OF THE SECOND LIEN INTERCREDITOR AGREEMENT AND THE TERMS AND PROVISIONS THEREOF, AND NO AGENT OR ANY OF ITS AFFILIATES MAKES ANY REPRESENTATION TO ANY LENDER AS TO THE SUFFICIENCY OR ADVISABILITY OF THE PROVISIONS CONTAINED IN THE SECOND LIEN INTERCREDITOR AGREEMENT.**

[SIGNATURES BEGIN NEXT PAGE]

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The parties hereto have caused this Agreement to be duly executed and delivered as of the day and year first above written.

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| | | |
|:---|:---|:---|
| BORROWER: | **WHITEHAWK INCOME OPERATING**<br> **PARTNERSHIP L.P.**, a Delaware limited<br> partnership<br> By: WhiteHawk Income OP GP LLC, its<br> general partner | **WHITEHAWK INCOME OPERATING**<br> **PARTNERSHIP L.P.**, a Delaware limited<br> partnership<br> By: WhiteHawk Income OP GP LLC, its<br> general partner |
|  | By: | /s/ Jeffrey Slotterback |
|  | Name: | Jeffrey Slotterback |
|  | Title: | Chief Financial Officer and Secretary |
| PARENT: | **WHITEHAWK INCOME CORPORATION**,<br> a Delaware corporation | **WHITEHAWK INCOME CORPORATION**,<br> a Delaware corporation |
|  | By: | /s/ Jeffrey Slotterback |
|  | Name: | Jeffrey Slotterback |
|  | Title: | Chief Financial Officer and Secretary |
| GENERAL PARTNER: | **WHITEHAWK INCOME OP GP LLC**, a<br> Delaware limited liability company | **WHITEHAWK INCOME OP GP LLC**, a<br> Delaware limited liability company |
|  | By: | /s/ Jeffrey Slotterback |
|  | Name: | Jeffrey Slotterback |
|  | Title: | Chief Financial Officer and Secretary |

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[SIGNATURE PAGE TO CREDIT AGREEMENT]

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| | | |
|:---|:---|:---|
| ADMINISTRATIVE AGENT, ISSUING<br> BANK AND A LENDER: | **CAPITAL ONE, NATIONAL**<br> **ASSOCIATION**, as Administrative<br> Agent, Issuing Bank and a Lender | **CAPITAL ONE, NATIONAL**<br> **ASSOCIATION**, as Administrative<br> Agent, Issuing Bank and a Lender |
|  | By: | /s/ David Lee Garza |
|  | Name: | David Lee Garza |
|  | Title: | Director |

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[SIGNATURE PAGE TO CREDIT AGREEMENT]

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| | | |
|:---|:---|:---|
| LENDER: | **U.S. BANK NATIONAL**<br> **ASSOCIATION**, as a Lender | **U.S. BANK NATIONAL**<br> **ASSOCIATION**, as a Lender |
|  | By: | /s/ Elizabeth Johnson |
|  | Name: | Beth Johnson |
|  | Title: | Senior Vice President |

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[SIGNATURE PAGE TO CREDIT AGREEMENT]

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**Annex I** 

**LIST OF MAXIMUM CREDIT AMOUNTS AND ELECTED COMMITMENTS** 

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| | | | |
|:---|:---|:---|:---|
| **Name of Lender** | **Applicable<br>Percentage** | **Elected<br>Commitment** | **Maximum**<br>**Credit Amount** |
|  Capital One, National Association | 50.000000000% | $75000000.00 | $250000000.00 |
|  U.S. Bank National Association | 50.000000000% | $75000000.00 | $250000000.00 |
|  **TOTAL** | **100.000000000%** | $**150000000.00** | $**500000000.00** |

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**EXHIBIT A** 

**FORM OF NOTE** 

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| | |
|:---|:---|
| $[ ] | [ ], 20[__] |

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FOR VALUE RECEIVED, WHITEHAWK INCOME OPERATING PARTNERSHIP L.P., a Delaware limited partnership (the "Borrower"), hereby promises to pay to [ ] (the "Lender"), at the principal office of CAPITAL ONE, NATIONAL ASSOCIATION, as administrative agent (together with its successors or assigns, the "Administrative Agent"), the principal sum of [ ] Dollars ($[ ]) (or such lesser amount as shall equal the aggregate unpaid principal amount of the Loans made by the Lender to the Borrower under the Credit Agreement, as hereinafter defined), in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest on the unpaid principal amount of each such Loan, at such office, in like money and funds, for the period commencing on the date of such Loan until such Loan shall be paid in full, at the rates per annum and on the dates provided in the Credit Agreement.

The date, amount, Type, interest rate, and, if applicable, Interest Period of each Loan made by the Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Lender on its books. Failure to make any such recordation shall not affect any Lender's or the Borrower's rights or obligations in respect of such Loans or affect the validity of such transfer by any Lender of this Note pursuant to <u>Section 12.04</u> of the Credit Agreement.

This Note is one of the Notes referred to in the Credit Agreement dated as of May 10, 2026, among the Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, the Administrative Agent, and the lenders (including the Lender) and other agents from time to time party thereto, and evidences Loans made by the Lender thereunder (such Credit Agreement as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "Credit Agreement"). Capitalized terms used but not defined in this Note have the respective meanings assigned to them in the Credit Agreement.

This Note is issued pursuant to, and is subject to the terms and conditions set forth in, the Credit Agreement and is entitled to the benefits provided for in the Credit Agreement and the other Loan Documents. The Credit Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events, for prepayments of Loans upon the terms and conditions specified therein and other provisions relevant to this Note.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

[Signature page follows]

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| |
|:---|
| WHITEHAWK INCOME OPERATING PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
| Name: |
| Title: |

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**EXHIBIT B** 

**FORM OF BORROWING REQUEST** 

[ ], 20[__]<sup>1</sup>

WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"), pursuant to <u>Section 2.03</u> of the Credit Agreement dated as of May 10, 2026 (together with all amendments, restatements, amendments and restatements, supplements or other modifications thereto, the "<u>Credit Agreement</u>"), among the Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as Administrative Agent, and the lenders (the "<u>Lenders</u>") and other agents which are or become parties thereto (unless otherwise defined herein, each capitalized term used herein is defined in the Credit Agreement), hereby requests a Borrowing as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Aggregate amount of the requested Borrowing is $[ ]<sup>2</sup>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Date of such Borrowing is [ ], 20[__];<sup>3</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Requested Borrowing is to be [an ABR Borrowing] [a SOFR Borrowing];<sup>4</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In the case of a SOFR Borrowing, the initial Interest Period applicable thereto is [ ]<sup>5</sup><sup>6</sup>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Amount of Borrowing Base in effect on the date hereof is $[ ];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The amount of the Aggregate Elected Commitment Amounts in effect on the date hereof is $[ ];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Total Revolving Credit Exposures on the date hereof (i.e., outstanding principal amount of Loans and total LC Exposure) is $[ ];

<sup>1</sup> For a SOFR Borrowing, the Borrowing Request must be delivered no later than 12:00 noon, Houston, Texas time, three U.S. Government Securities Business Days before the date of the proposed Borrowing. For an ABR Borrowing, the Borrowing Request must be delivered no later than 12:00 noon, Houston, Texas time, on the date of the proposed Borrowing. 

<sup>2</sup> At the commencement of each Interest Period for any SOFR Borrowing, such Borrowing shall be in integral multiples of $100,000 and not less than $500,000. Each ABR Borrowing shall be in integral multiples of $100,000 and not less than $500,000, *provided* that an ABR Borrowing may be in an aggregate amount that is equal to the entire Unused Availability or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.08(e) of the Credit Agreement. 

<sup>3</sup> Must be a Business Day.

<sup>4</sup> If no Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing.

<sup>5</sup> This shall be a period contemplated by the definition of the term "Interest Period" in the Credit Agreement. As of the Effective Date, that is one, three or six months.

<sup>6</sup> If no Interest Period is specified, then the Borrower shall be deemed to have selected an Interest Period of one month.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) *Pro forma* Total Revolving Credit Exposures (giving effect to the requested Borrowing) is $[ ];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the Consolidated Cash Balance (without regard to the requested Borrowing) is $[ ] and the pro forma Consolidated Cash Balance (giving effect to the requested Borrowing<sup>7</sup>) is $[ ];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Location and number of the Borrower's account to which funds are to be disbursed, which shall comply with the requirements of <u>Section 2.05</u> of the Credit Agreement, is as follows:

[ ]

[ ]

[ ]

[ ]

[ ]

The undersigned certifies that he/she is the [ ] of the General Partner, and that as such he/she is authorized to execute this certificate on behalf of the Borrower. The undersigned further certifies, represents, and warrants on behalf of the Borrower (and not individually) that the Borrower is entitled to receive the requested Borrowing under the terms and conditions of the Credit Agreement.<sup>8</sup>

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| |
|:---|
| WHITEHAWK INCOME OPERATING PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
| Name: |
| Title: |

---

<sup>7</sup> Must identify in reasonable detail any amounts to be excluded from Consolidated Cash Balance pursuant to clauses (ii) and (iv) of the definition of Consolidated Cash Balance. 

<sup>8</sup> Each Borrowing Request shall constitute a representation by the Borrower that (a) the amount of the requested Borrowing shall not cause the Total Revolving Credit Exposures to exceed the Loan Limit and (b) after giving *pro forma* effect to such requested Borrowing and the use of proceeds thereof, the Consolidated Cash Balance shall not exceed the Consolidated Cash Balance Threshold. 

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**EXHIBIT C** 

**FORM OF INTEREST ELECTION REQUEST** 

[_______], 20[__]<sup>9</sup>

WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"), pursuant to <u>Section 2.04</u> of the Credit Agreement dated as of May 10, 2026 (together with all amendments, restatements, amendments and restatements, supplements or other modifications thereto, the "<u>Credit Agreement</u>"), among the Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as Administrative Agent, and the lenders (the "<u>Lenders</u>") and other agents which are or become parties thereto (unless otherwise defined herein, each capitalized term used herein is defined in the Credit Agreement), hereby makes an Interest Election Request as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrowing to which this Interest Election Request applies, and if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information specified pursuant to (iii) and (iv) below shall be specified for each resulting Borrowing) are [ ];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The effective date of the election made pursuant to this Interest Election Request is [ ], 20[__]<sup>10</sup>;[and]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The resulting Borrowing is to be [an ABR Borrowing] [a SOFR Borrowing][; and]

[(iv) [If the resulting Borrowing is a SOFR Borrowing] The Interest Period applicable to the resulting Borrowing after giving effect to such election is [ ] <sup>11</sup><sup>12</sup>].

The undersigned certifies, represents, and warrants on behalf of the Borrower (and not individually) that (a) he/she is the [ ] of the General Partner, and that as such he/she is authorized to execute this Interest Election Request on behalf of the Borrower and (b) that the Borrower is entitled to receive the requested continuation or conversion under the terms and conditions of the Credit Agreement.

<sup>9</sup> If the Interest Election Request is for the continuation of a SOFR Borrowing or a conversion to a SOFR Borrowing, the Interest Election Request must be delivered no later than 12:00 noon, Houston, Texas time, 3 U.S. Government Securities Business Days before the date of the proposed continuation or conversion. If the Interest Election Request is for the continuation of an ABR Borrowing or a conversion to an ABR Borrowing, the Interest Election Request must be delivered no later than 12:00 noon., Houston, Texas time, on the date of the proposed continuation or conversion. 

<sup>10</sup> Must be a Business Day.

<sup>11</sup> This shall be a period contemplated by the definition of the term "Interest Period" in the Credit Agreement. As of the Effective Date, that is one, three or six months.

<sup>12</sup> If no Interest Period is specified, then the Borrower shall be deemed to have selected an Interest Period of one month.

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| |
|:---|
| WHITEHAWK INCOME OPERATING PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
| Name: |
| Title: |

---

------

**EXHIBIT D** 

**FORM OF COMPLIANCE CERTIFICATE** 

The undersigned hereby certifies that he/she is the [ ] of WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"), and that as such he/she is authorized to execute this certificate on behalf of the Borrower. With reference to the Credit Agreement dated as of May 10, 2026 (together with all amendments, restatements, amendments and restatements, supplements or other modifications thereto being the "<u>Credit Agreement</u>"), among the Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as Administrative Agent, and the lenders (the "<u>Lenders</u>") and other agents which are or become a party thereto, the undersigned represents and warrants (solely in his/her capacity as an officer of the Borrower and not in any personal capacity) to the Administrative Agent and the Lenders as follows (each capitalized term used herein having the same meaning given to it in the Credit Agreement unless otherwise specified):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The financial statements for the [fiscal year/fiscal quarter] ended [ , 20__], delivered with this certificate in accordance with <u>Section [8.01(a)/8.01(b)]</u> of the Credit Agreement fairly present in all material respects the financial condition and results of operations of the Borrower and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied[, subject to normal year-end audit adjustments and the absence of footnotes].<sup>13</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There exists no Default or Event of Default [or specify Default or Event of Default and describe the details thereof and any action taken or proposed to be taken with respect thereto].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Attached hereto are the reasonably detailed computations necessary to determine whether the Borrower is in compliance with <u>Section 9.01</u> of the Credit Agreement as of the end of the [fiscal quarter][fiscal year] ending [ ].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [The Borrower hereby elects to exercise its cure right under Section 9.01(c) with respect to the fiscal quarter ending [ ]. The Cure Amount is $[ ], which has been added to [EBITDAX][consolidated current assets] for purposes of calculating compliance with [Section 9.01(a)][Section 9.01(b)] for said fiscal quarter.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No change in GAAP or in the application thereof has occurred since the Effective Date [or if any such change has occurred, specifying the effect of such change on the financial statements accompanying this certificate].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Attached hereto is a list identifying each of the Restricted Subsidiaries, which list specifies whether such Restricted Subsidiary is or is not a Guarantor (and (A) specifying the identity of each Immaterial Subsidiary and each Material Subsidiary as of the end of such fiscal quarter or fiscal year, as applicable (and including reasonable detail, in form and substance satisfactory to the Administrative Agent, with respect thereto) and (B) if necessary, designating sufficient additional Subsidiaries as Material Subsidiaries so as to comply with the definition of "Material Subsidiary").

<sup>13</sup> Insert bracketed phrase when financial statements delivered with this Compliance Certificate are delivered pursuant to Section 8.01(b) of the Credit Agreement.

------

EXECUTED AND DELIVERED this [ ] day of [ ], 20[__].

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| |
|:---|
| WHITEHAWK INCOME OPERATING PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
| Name: |
| Title: |
| WHITEHAWK INCOME CORPORATION, a Delaware corporation |
| By: |
| Name: |
| Title: |

---

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**EXHIBIT E** 

**[RESERVED]** 

[attached]

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**EXHIBIT F** 

**[RESERVED]** 

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**EXHIBIT G** 

**SECURITY INSTRUMENTS** 

1. The Guarantee and Collateral Agreement.

2. UCC-1 Financing Statements in respect of item #1.

3. The Mortgage

4. UCC-1 Financing Statements in respect of item #3.

5. The Control Agreements.

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**EXHIBIT H** 

**FORM OF ASSIGNMENT AND ASSUMPTION** 

This Assignment and Assumption (the "<u>Assignment and Assumption</u>") is dated as of the Effective Date set forth below and is entered into by and between [*Insert name of Assignor*] (the "<u>Assignor</u>") and [*Insert name of Assignee*] (the "<u>Assignee</u>"). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in <u>Annex 1</u> attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor's rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including any letters of credit and guarantees included in such facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the "<u>Assigned Interest</u>"). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

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| | |
|:---|:---|
| 1. Assignor: |  |
| 2. Assignee: |  |
|  | [and is an Affiliate/Approved Fund of [*identify Lender*]<sup>14</sup> ] |
| 3. Borrower: | WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership |
| 4. Administrative Agent: | Capital One, National Association, as the administrative agent under the Credit Agreement |

---

<sup>14</sup> Select as applicable.

------

---

| | |
|:---|:---|
| 5. Credit Agreement: | The Credit Agreement dated as of May 10, 2026, among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, the Lenders party thereto, Capital One, National Association, as Administrative Agent, and the other agents party thereto |
| 6. Assigned Interest: |  |

---

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| | |
|:---|:---|
| **Maximum Credit Amount Assigned<sup>15</sup>** | **Percentage Assigned of Aggregate Maximum<br>Credit Amounts** |
|  | % |
|  | % |
|  | % |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effective Date: , 20 [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

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| |
|:---|
| <u>ASSIGNOR</u> |
| [NAME OF ASSIGNOR] |
| By: |
| Name: |
| Title: |

---

---

| |
|:---|
| <u>ASSIGNEE</u> |
| [NAME OF ASSIGNEE] |
| By: |
| Name: |
| Title: |

---

<sup>15</sup> Except in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund or an assignment of the entire remaining amount of the assigning Lender's Commitment or Loans, the amount of the Commitment or Loans subject to such assignment shall not be less than $2,500,000 unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing. 

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| |
|:---|
| [Consented to and]<sup>16</sup> Accepted: |
| CAPITAL ONE, NATIONAL ASSOCIATION |
| as Administrative Agent |
| By: |
| Name: |
| Title: |

---

---

| |
|:---|
| [Consented to:]<sup>17</sup> |
| [NAME OF RELEVANT PARTY] |
| By: |
| Name: |
| Title: |

---

<sup>16</sup> To be added only if the consent of the Administrative Agent is required by Section 12.04(b) of the Credit Agreement.

<sup>17</sup> To be added only if the consent of the Borrower and/or other parties (e.g., Issuing Bank) is required by Section 12.04(b) of the Credit Agreement.

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ANNEX 1

**STANDARD TERMS AND CONDITIONS FOR** 

**ASSIGNMENT AND ASSUMPTION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Assignor</u>. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Assignee</u>. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 8.01(a) or Section 8.01(b) thereof<u>,</u> as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign Lender, attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payments</u>. From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>General Provisions</u>. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by facsimile or other electronic transmission (*e.g.*,.pdf) shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

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**EXHIBIT I** 

**FORM OF ELECTED COMMITMENT INCREASE CERTIFICATE** 

[ ], 20[ ]

To: Capital One, National Association,

as Administrative Agent

WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"), WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, the Administrative Agent and certain Lenders and other agents have heretofore entered into a Credit Agreement, dated as of May 10, 2026 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"). Capitalized terms not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement.

This Elected Commitment Increase Certificate is being delivered pursuant to <u>Section 2.06(c)(ii)(E)</u> of the Credit Agreement.

Please be advised that the undersigned has agreed (a) to increase its Elected Commitment under the Credit Agreement effective [ ], 20[__] (the "<u>Increase Effective Date</u>") from $[ ] to $[ ] and (b) that it shall continue to be a party in all respects to the Credit Agreement and the other Loan Documents to which it is a party.

With reference to <u>Section 2.06(c)(ii)(C)</u> of the Credit Agreement, the Borrower hereby confirms that [Check Applicable Box]:

[ ] There are, or if the Increase Effective Date is after the date hereof, there will be, no SOFR Borrowings outstanding on the Increase Effective Date.

[ ] There are, or if the Increase Effective Date is after the date hereof, there will be, SOFR Borrowings outstanding on the Increase Effective Date and the Borrower will pay any compensation required by <u>Section 5.02</u> of the Credit Agreement on the Increase Effective Date.

---

| |
|:---|
| Very truly yours, |
| WHITEHAWK INCOME OPERATING PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
| Name: |
| Title: |

---

------

---

| |
|:---|
| Accepted and Agreed: |
| CAPITAL ONE, NATIONAL ASSOCIATION, |
| as Administrative Agent |
| By: |
| Name: |
| Title: |

---

---

| |
|:---|
| Accepted and Agreed: |
| [Additional Lender] |
| By: |
| Name: |
| Title: |

---

------

**EXHIBIT J** 

**FORM OF ADDITIONAL LENDER CERTIFICATE** 

[ ], 20[ ]

To: Capital One, National Association, as Administrative Agent

WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"), WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, the Administrative Agent and certain Lenders and other agents have heretofore entered into a Credit Agreement, dated as of May 10, 2026 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"). Capitalized terms not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement.

This Additional Lender Certificate is being delivered pursuant to <u>Section 2.06(c)(ii)(F)</u> of the Credit Agreement.

Please be advised that the undersigned has agreed (a) to become a Lender under the Credit Agreement effective [ ], 20[ ] (the "<u>Additional Lender Effective Date</u>") with a Maximum Credit Amount of $[ ] and an Elected Commitment of $[ ] and (b) that it shall be a party in all respects to the Credit Agreement and the other Loan Documents to which it is a party.

This Additional Lender Certificate is being delivered to the Administrative Agent together with (i) if requested by the Additional Lender, an executed Note payable to such Additional Lender (or its registered assigns) in a principal amount equal to its Maximum Credit Amount, (ii) if the Additional Lender is a Foreign Lender, any documentation required to be delivered by such Additional Lender pursuant to Section 5.03(f) of the Credit Agreement, duly completed and executed by the Additional Lender, and (iii) an Administrative Questionnaire in the form supplied by the Administrative Agent, duly completed by the Additional Lender.

With reference to <u>Section 2.06(c)(ii)(C)</u> of the Credit Agreement, the Borrower hereby confirms that [Check Applicable Box]:

[ ] There are, or if the Additional Lender Effective Date is after the date hereof, there will be, no SOFR Borrowings outstanding on the Additional Lender Effective Date.

[ ] There are, or if the Additional Lender Effective Date is after the date hereof, there will be, SOFR Borrowings outstanding on the Additional Lender Effective Date and the Borrower will pay any compensation required by <u>Section 5.02</u> of the Credit Agreement on the Additional Lender Effective Date. 

[Remainder of page intentionally left blank; signature pages follow.]

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| |
|:---|
| Very truly yours, |
| WHITEHAWK INCOME OPERATING PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
|  Name: |
|  Title: |

---

------

---

| |
|:---|
| Accepted and Agreed: |
| CAPITAL ONE, NATIONAL ASSOCIATION,<br> as Administrative Agent |
|  By: |
|  Name: |
|  Title: |

---

---

| |
|:---|
| Accepted and Agreed: |
| [Name of Increasing Lender]  |
|  By: |
|  Name: |
|  Title: |

---

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**EXHIBIT K-1** 

**FORM OF U.S. TAX COMPLIANCE CERTIFICATE** 

**(FOR FOREIGN LENDERS THAT ARE NOT PARTNERSHIPS FOR U.S. FEDERAL** 

**INCOME TAX PURPOSES)** 

Reference is hereby made to the Credit Agreement dated as of May 10, 2026 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership, as Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as Administrative Agent, the financial institutions from time to time party thereto as Lenders, and the other Agents party thereto.

Pursuant to the provisions of <u>Section 5.03</u> of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

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| |
|:---|
| [NAME OF LENDER] |
| By: |
| Name: |
| Title: |
|  Date:<u> </u>, 20[ ] |

---

------

**EXHIBIT K-2** 

**FORM OF U.S. TAX COMPLIANCE CERTIFICATE** 

**(FOR FOREIGN PARTICIPANTS THAT ARE NOT PARTNERSHIPS FOR** 

**U.S. FEDERAL INCOME TAX PURPOSES)** 

Reference is hereby made to the Credit Agreement dated as of May 10, 2026 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership, as Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as Administrative Agent, the financial institutions from time to time party thereto as Lenders, and the other Agents party thereto.

Pursuant to the provisions of <u>Section 5.03</u> of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

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| |
|:---|
| [NAME OF PARTICIPANT] |
| By: |
| Name: |
| Title: |
|  Date:<u> </u>, 20[ ] |

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------

**EXHIBIT K-3** 

**FORM OF U.S. TAX COMPLIANCE CERTIFICATE** 

**(FOR FOREIGN PARTICIPANTS THAT ARE PARTNERSHIPS FOR U.S.** 

**FEDERAL INCOME TAX PURPOSES)** 

Reference is hereby made to the Credit Agreement dated as of May 10, 2026 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership, as Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as Administrative Agent, the financial institutions from time to time party thereto as Lenders, and the other Agents party thereto.

Pursuant to the provisions of <u>Section 5.03</u> of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner's/member's beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

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| |
|:---|
| [NAME OF PARTICIPANT] |
| By: |
| Name: |
| Title: |
|  Date:<u> </u>, 20[ ] |

---

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**EXHIBIT K-4** 

**FORM OF U.S. TAX COMPLIANCE CERTIFICATE** 

**(FOR FOREIGN LENDERS THAT ARE PARTNERSHIPS FOR U.S. FEDERAL** 

**INCOME TAX PURPOSES)** 

Reference is hereby made to the Credit Agreement dated as of May 10, 2026 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership, as Borrower, WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as Administrative Agent, the financial institutions from time to time party thereto as Lenders, and the other Agents party thereto.

Pursuant to the provisions of <u>Section 5.03</u> of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner's/member's beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

---

| |
|:---|
| [NAME OF LENDER] |
| By: |
| Name: |
| Title: |
|  Date:<u> </u>, 20[ ] |

---

------

**EXHIBIT L** 

**[RESERVED]** 

------

**EXHIBIT M** 

**FORM OF EFFECTIVE DATE SOLVENCY CERTIFICATE** 

SOLVENCY CERTIFICATE

[ • ], 2026

This Solvency Certificate (this "<u>Certificate</u>") is delivered pursuant to [<u>Section 6.01(g)][Section 6.02(r)]</u> of the Credit Agreement (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>") dated as of the date hereof among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"), WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, Capital One, National Association, as the Administrative Agent, and the Lenders parties thereto. Unless otherwise defined herein, capitalized terms used in this Certificate shall have the meanings set forth in the Credit Agreement.

I, [ ], solely in my capacity as the [ ] of the General Partner, do hereby certify to the Administrative Agent and the Lenders on behalf of the Borrower that as of the date hereof, after giving effect to the consummation of the Transactions contemplated by the Credit Agreement and the Borrowings made and the issuance of any Letters of Credit under the Credit Agreement (a) the Borrower is Solvent and (b) the Parent, the General Partner, the Borrower and the other Credit Parties, on a consolidated basis, are Solvent.

For purposes hereof, the term "Solvent" with respect to any Person(s) as of any date, that (a) the aggregate value of the assets of such Person(s) (after giving effect to amounts that could reasonably be expected to be received by reason of indemnity, offset, insurance or any similar arrangement) (both at fair value and present fair saleable value) is, on the date of determination, greater than the total amount of liabilities (including contingent and unliquidated liabilities) of such Person(s) as of such date, (b) as of such date, such Person(s) is able to pay all liabilities (after taking into account the timing and amounts of cash it reasonably expects could be received and the amounts that it reasonably expects could be payable on or in respect of its liabilities, and giving effect to amounts that could reasonably be expected to be received by reason of indemnity, offset, insurance or any similar arrangement) of such Person(s) as such liabilities mature, and (c) as of such date, such Person(s) does not have unreasonably small capital given the nature of its business. In computing the amount of contingent or unliquidated liabilities at any time, such liabilities shall be computed at the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

[Signature Page Follows]

------

**IN WITNESS WHEREOF**, I have executed this certificate as of the date first written above.

---

| |
|:---|
| WHITEHAWK INCOME OPERATING PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general<br>partner |
| By: |
| Name: |
| Title: |

---

------

**EXHIBIT N** 

**FORM OF RESERVE REPORT CERTIFICATE** 

This Reserve Report Certificate (this "<u>Certificate</u>"), dated as of [ ], 20[ ], relates to the Reserve Report dated as of [January 1][July 1], 20[ ] [other date in the event of an Interim Redetermination] (the "<u>Subject Reserve Report</u>"), delivered pursuant to <u>Section 8.11 [(a)] [(b)</u>] of that certain Credit Agreement dated as of May 10, 2026 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), by and among WhiteHawk Income Operating Partnership L.P., a Delaware limited partnership (the "<u>Borrower</u>"), WhiteHawk Income Corporation, a Delaware corporation, WhiteHawk Income OP GP LLC, a Delaware limited liability company, the lenders from time to time party thereto (the "<u>Lenders</u>"), and Capital One, National Association, as Administrative Agent. Each capitalized term used herein has the same meaning given to it in the Credit Agreement unless otherwise specified. The undersigned certifies he/she is a Responsible Officer of the Borrower and, on behalf of the Borrower, in his/her capacity as a Responsible Officer of the Borrower and not in his/her individual capacity, certifies that in all material respects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the information contained in the Subject Reserve Report and any other information delivered in connection herewith is true and correct, it being understood by the Administrative Agent and the Lenders that projections concerning volumes and production and cost estimates contained in the Subject Reserve Report are necessarily based upon opinions, estimates and projections and that neither the Borrower nor such Responsible Officer warrants that such opinions, estimates and projections will ultimately prove to have been accurate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower or another Credit Party has good and defensible title to the Oil and Gas Properties evaluated in the Subject Reserve Report (other than those (x) to be acquired in connection with an acquisition, (y) disposed of since the date of the Subject Reserve Report as permitted in accordance with the terms of the Credit Agreement and (z) leases that have expired in accordance with their terms) and such Oil and Gas Properties are free (or will be at the time of the acquisition thereof) of all Liens except for Liens permitted by <u>Section 9.03</u> of the Credit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to the extent the Credit Parties take Hydrocarbons attributable or allocable to their Oil and Gas Properties in-kind, except as set forth on <u>Annex I</u> hereto or previously disclosed to the Administrative Agent in writing, on a net basis there are no gas imbalances, take or pay or other prepayments, the value of which exceed the dollar threshold specified in Section 7.16 of the Credit Agreement, with respect to the Credit Parties' Oil and Gas Properties evaluated in the Subject Reserve Report delivered herewith which would require the Borrower or any other Credit Party to deliver Hydrocarbons either generally or produced from such Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Borrowing Base Properties have been sold since the date of the last Borrowing Base determination except (x) those Borrowing Base Properties listed on <u>Annex II</u> hereto and (y) as previously disclosed to the Administrative Agent in writing;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Annex III</u> sets forth a list of all material marketing agreements (which are not cancellable on 120 days' notice or less without penalty or detriment) entered into subsequent to the later of the Effective Date or the most recently delivered Reserve Report which the Borrower could reasonably be expected to have been obligated to list on <u>Schedule 7.17</u> to the Credit Agreement had such agreement been in effect on the Effective Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Annex IV</u> sets forth a schedule demonstrating [compliance][noncompliance] (calculated at the time of delivery of this Certificate) with the Collateral Coverage Minimum [and the steps that will be taken to comply with this Collateral Coverage Minimum<u>]</u>.<sup>18</sup>

[Remainder of page intentionally left blank; signature page follows]

<sup>18</sup> Language added if non-compliant.

------

EXECUTED AND DELIVERED as of the date first set forth above.

---

| |
|:---|
| WHITEHAWK INCOME OPERATING PARTNERSHIP L.P., a Delaware limited partnership |
| By: WhiteHawk Income OP GP LLC, its general partner |
| By: |
| Name: |
| Title: |

---

## Exhibit 16.1

**Exhibit 16.1** 

Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549

**Re: WHITEHAWK INCOME CORPORATION** 

Commissioners:

We have read the statements made by WhiteHawk Income Corporation under the caption "CHANGE IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM" included in the Form S-1 filed with the Securities and Exchange Commission on May 11, 2026, and we agree with such statements insofar as they relate to our firm.

Very truly yours,

/s/ Whitley Penn LLP

## Exhibit 23.1

**Exhibit 23.1** 

**Consent of Independent Registered Public Accounting Firm** 

We consent to the use in this Registration Statement on Form S-1 of WhiteHawk Income Corporation (the "Company") of our report dated March 31, 2026, except for Note 3, as to which the date is May 6, 2026, relating to the consolidated financial statements of the Company (which report expresses an unqualified opinion and includes an explanatory paragraph relating to a restatement of the 2025 consolidated financial statements). We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ Baker Tilly US, LLP

Dallas, Texas

May 11, 2026

## Exhibit 23.2

**Exhibit 23.2** 

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

We consent to the inclusion in this Registration Statement on Form S-1 of WhiteHawk Income Corporation and subsidiaries of our report dated March 31, 2025, relating to our audit of the consolidated financial statements of WhiteHawk Income Corporation and subsidiaries for the year ended December 31, 2024. We also consent to the reference to our firm under the heading "Experts" in this Registration Statement on Form S-1.

/s/ Whitley Penn LLP

Houston, Texas

May 11, 2026

## Exhibit 23.3

**Exhibit 23.3** 

**CONSENT OF INDEPENDENT AUDITOR** 

We consent to the use in this Registration Statement of our report dated January 20, 2026, relating to the financial statements of Three Rivers Royalty, LLC as of and for the years ended December 31, 2024 and 2023. We also consent to the reference to our firm under the caption "Experts" in this Prospectus.

/s/ Plante & Moran, PLLC

Denver, Colorado

May 11, 2026

## Exhibit 23.4

**Exhibit 23.4** 

Consent of Independent Registered Public Accounting Firm

We consent to the reference to our firm under the caption "Experts" and to the use of our reports dated March 12, 2025, with respect to the financial statements of PHX Minerals, Inc. included in the Registration Statement (Form S-1) and related Prospectus of WhiteHawk Income Corporation for the registration of its common stock.

---

| |
|:---|
|  /s/ Ernst & Young LLP |
|  Oklahoma City, Oklahoma |
|  May 11, 2026 |

---

## Exhibit 23.5

**Exhibit 23.5** 

<u>CONSENT OF INDEPENDENT PETROLEUM ENGINEERING CONSULTANTS</u> 

As independent petroleum engineering consultants, we hereby consent to the references to our firm, in the context in which they appear, and to the references to, and the inclusion of, our report, dated December 12, 2025, for WhiteHawk Income Corporation (the "Company") included in or made part of this Registration Statement on Form S-1 of the Company, including any amendments thereto (the "Registration Statement"). We also hereby consent to the references to our firm contained in the Registration Statement, including in the prospectus under the heading "Experts."

---

| |
|:---|
|  **Schaper Energy Consulting, LLC** |
|  Texas Registered Engineering Firm |
|  /s/ Schaper Energy Consulting, LLC |

---

Houston, Texas <br> May 11, 2026

## Exhibit 23.6

**Exhibit 23.6** 

<u>CONSENT OF INDEPENDENT PETROLEUM ENGINEERING CONSULTANTS</u> 

As independent petroleum engineering consultants, we hereby consent to the references to our firm, in the context in which they appear, and to the references to, and the inclusion of, our report, dated January 13, 2025, for PHX Minerals, Inc. included in or made part of this Registration Statement on Form S-1 of WhiteHawk Income Corporation, including any amendments thereto (the "Registration Statement"). We also hereby consent to the references to our firm contained in the Registration Statement, including in the prospectus under the heading "Experts."

---

| |
|:---|
|  **Cawley, Gillespie and**<br> **Associates, Inc.** |
|  Texas Registered Engineering Firm |
|  /s/ Cawley, Gillespie and Associates, Inc. |

---

Houston, Texas <br> May 11, 2026

## Exhibit 23.7

**Exhibit 23.7** 

<u>CONSENT OF INDEPENDENT PETROLEUM ENGINEERING CONSULTANTS</u> 

As independent petroleum engineering consultants, we hereby consent to the references to our firm, in the context in which they appear, and to the references to, and the inclusion of, our report, dated March 31, 2026, for Three Rivers Royalty, LLC included in or made part of this Registration Statement on Form S-1 of WhiteHawk Income Corporation, including any amendments thereto (the "Registration Statement"). We also hereby consent to the references to our firm contained in the Registration Statement, including in the prospectus under the heading "Experts."

---

| |
|:---|
|  **Ryder Scott Company, L.P.** |
|  Texas Registered Engineering Firm |
|  /s/ Ryder Scott Company, L.P. |

---

Houston, Texas <br> May 11, 2026

## Exhibit 23.8

**Exhibit 23.8** 

<u>CONSENT OF INDEPENDENT PETROLEUM ENGINEERING CONSULTANTS</u> 

As independent petroleum engineering consultants, we hereby consent to the references to our firm, in the context in which they appear, and to the references to, and the inclusion of, our report for WhiteHawk Income Corporation (the "Company") and with respect to the Company's estimated reserves and related future net cash flows related to its properties as of December 31, 2025 included in or made part of this Registration Statement on Form S-1 of the Company, including any amendments thereto (the "Registration Statement"). We also hereby consent to the references to our firm contained in the Registration Statement, including in the prospectus under the heading "Experts."

---

| |
|:---|
|  **Cawley, Gillespie and**<br> **Associates, Inc.** |
|  Texas Registered Engineering Firm |
|  /s/ Cawley, Gillespie and Associates, Inc. |

---

Houston, Texas <br> May 11, 2026

## Exhibit 99.1

**Exhibit 99.1**![LOGO](g86452dsp1.jpg)

WhiteHawk Energy

Reserves Estimate Letter

**Estimate of Reserves & Future Revenue** 

to the

**WhiteHawk Energy** 

in

**Certain Oil & Gas Assets** 

located in the

**Lower 48 United States** 

as of

**December 31, 2024** 

**SE LLC** 

------

![LOGO](g86452dsp2.jpg)

**Section 1** 

Reserves Cover Letter

---

| | |
|:---|:---|
| **SE LLC** | 1 |

---

------

![LOGO](g86452dsp2.jpg)

February 4, 2025

Mr. Mike Downs

WhiteHawk Energy

2400 Market Street, Suite 230

Philadelphia, PA 19103

Dear Mr. Downs:

As you have requested, this report was completed on February 4, 2025 for the purpose of submitting our estimates of proved reserves and forecasts of economics attributable to the WhiteHawk Energy ("WhiteHawk") interests and for inclusion as an exhibit in a filing made with the U.S. Securities and Exchange Commission ("SEC").

In accordance with your request, we have estimated the reserves and future net cash flows, as of December 31, 2024, to WhiteHawk interests in certain oil and gas properties (the "Properties") located in the United States, as listed in the accompanying tabulations. This report has been prepared using price and cost parameters as discussed in subsequent paragraphs of this letter. The estimates in this report have been prepared in accordance with the definitions and guidelines set forth in the SEC Rule 4-10(a) of Regulation S-X.

RESERVES

As presented in the accompanying summary projections in Section 2, we estimate the oil and gas reserves and future net cash flow to the WhiteHawk interests in these Properties, as of December 31, 2024, and reflecting <u>SEC YE24 Pricing</u> to be:

**Table 1.1 – Summary of Reserves & Future Cash Flows (SEC YE24 Pricing)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Net Reserves | Net Reserves | Net Reserves | Net Reserves | Future Net Cash Flow ($M) | Future Net Cash Flow ($M) |
|  | Gas | NGL | Oil | | Total | Present Worth |
|  | Reserves | Reserves | Reserves | Equivalent | Undiscounted | @ 10% |
| Category | (MMcf) | (Mbbls) | (Mbbls) | (MMcfe) | (M$) | Discount (M$) |
|  **Total Proved Reserves** | **81720** | **876** | **39** | **87213** | $**149001** | $**72153** |
|  **Marcellus** | **75272** | **876** | **39** | **80766** | $**139170** | $**66433** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proved Developed Producing (1PDP) | 61003 | 690 | 23 | 65280 | $105305 | $49587 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proved Developed Non-Producing (3PDNP) | 443 | 11 | 0 | 508 | $992 | $539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proved Undeveloped (4PUD) | 13827 | 176 | 16 | 14977 | $32873 | $16308 |
|  **Haynesville** | **6448** | **—** | **—** | **6448** | $**9830** | $**5720** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proved Developed Producing (1PDP) | 3780 |  |  | 3780 | $5760 | $3131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proved Developed Non-Producing (3PDNP) | 26 |  |  | 26 | $40 | $25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proved Undeveloped (4PUD) | 2642 |  |  | 2642 | $4031 | $2564 |

---

This report includes 100% of WhiteHawk's proved reserves, which are made up of oil and gas properties in various states. Oil volumes are expressed in thousands of barrels (Mbbls). Natural Gas Liquids volumes are expressed in thousands of barrels (Mbbls). Gas volumes are expressed in millions of cubic feet (MMcf) at standard temperature and pressure bases. Revenue estimates are expressed in thousands of United States dollars ($M).

This report does not attribute any reserves, future net cash flows or discounted value to unproven properties or leasehold / mineral interests which are not contemplated to be developed within a five-year time horizon. Reserves categorization conveys the relative degree of certainty. The estimates of reserves and future revenue included herein have not been adjusted for risk. The assumptions, data, methods, and procedures are appropriate for the purpose served by the report. We have used all methods and procedures that we consider necessary under the circumstances to prepare this report.

Future net cash flow is after deductions for operating costs and production taxes. The future net cash flow has been discounted at an annual rate of ten (10) percent to determine its present worth. The present worth is shown to indicate the effect of time on the value of money and should not be construed as being the fair market value of the properties. Unless otherwise stated, estimates of future net cash flow provided herein assume costs to plug and abandon a producing well are offset by surface equipment and tubular salvage costs.

---

| | |
|:---|:---|
| **SE LLC** | 2.0 |

---

------

![LOGO](g86452dsp2.jpg)

As requested for SEC purposes, the base oil and gas prices calculated for December 31, 2024 were $75.48/BBL and $2.13/MMBTU, respectively. As specified by the SEC, a company must use a 12-month average price, calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period. The base oil price is based upon WTI-Cushing spot prices (EIA) during January 2024 through December 2024 and the base gas price is based upon Henry Hub prices (Platts Gas Daily) during January 2024 through December 2024. NGL prices were adjusted on a per-property basis and averaged 27.8% of the oil price on a composite basis.

The base prices were adjusted for differentials on a per-property basis, which may include local basis differential, treating cost, transportation, gas shrinkage, gas heating value (BTU content) and/or crude quality and gravity corrections. After these adjustments, the net realized prices for the SEC price case over the life of the proved properties was estimated to be $65.26 per barrel for oil, $1.788 per MCF for natural gas and $26.32 per barrel for NGL. All economic factors were held constant in accordance with SEC guidelines.

**WhiteHawk Energy – SEC YE24 Pricing** 

---

| | | |
|:---|:---|:---|
| Date Ending | Gas Price<br>($/MMBtu) | Oil Price<br>($/bbl) |
| 12-31-2025 | 2.13 | 75.48 |
| 12-31-2026 | 2.13 | 75.48 |
| 12-31-2027 | 2.13 | 75.48 |
| 12-31-2028 | 2.13 | 75.48 |
| 12-31-2029 | 2.13 | 75.48 |
| 12-31-2030 | 2.13 | 75.48 |
| 12-31-2031 | 2.13 | 75.48 |
| 12-31-2032 | 2.13 | 75.48 |
| 12-31-2033 | 2.13 | 75.48 |
| 12-31-2034 | 2.13 | 75.48 |
| 12-31-2035 | 2.13 | 75.48 |
| 12-31-2036 | 2.13 | 75.48 |
|  | Flat @ | Flat @ |
|  Thereafter | $2.13 | $75.48 |

---

Lease and well operating costs used in this report are estimates of WhiteHawk based on lease operating statements from the respective fields in question. Well operating costs are not being escalated for the Base Scenario.

---

| | |
|:---|:---|
| **SE LLC** | 3.0 |

---

------

![LOGO](g86452dsp2.jpg)

SUMMARY

As shown in the Attachments to this report, the reserves and economics section includes a summary projection of reserves and future net cash flow for each reserve category.

For the purposes of this report, SE LLC did not perform any field inspection of the properties, nor did we examine the mechanical operation or condition of the wells and facilities. SE LLC has not investigated possible environmental liability related to the properties; therefore, our estimates do not include any costs due to such possible liability.

The reserves and resources shown in this report are estimates only and should not be construed as exact quantities. Proved reserves are those quantities of oil and gas which, by analysis of engineering and geoscience data, can be estimated with reasonable certainty to be commercially recoverable. If the reserves are recovered, the revenues therefrom and the costs related thereto could be more or less than the estimated amounts. Because of governmental policies and uncertainties of supply and demand, the sales rates, prices received for the reserves, and costs incurred in recovering such reserves may vary from the assumptions made while preparing this report. Also, estimates of reserves may increase or decrease as a result of future operations.

The reserve classifications and the economic considerations used herein conform to the criteria of the SEC as defined in SEC Rule 4-10(a) of Regulation S-X. The reserves and economics are predicated on regulatory agency classifications, rules, policies, laws, taxes and royalties currently in effect except as noted herein. Federal, state, and local laws and regulations, which are currently in effect and that govern the development and production of oil and natural gas, have been considered in the evaluation of proved reserves for this report. The possible effects of changes in legislation or other Federal or State restrictive actions which could affect the reserves and economics have not been considered. These possible changes could have an effect on the reserves and economics. However, we do not anticipate nor are we aware of any legislative changes or restrictive regulatory actions that may impact the recovery of reserves.

For the purposes of this report, we used technical and economic data including, but not limited to, production data, well test data, historical price and cost information, and property ownership interests. The reserves and resources in this report have been estimated using deterministic methods; these estimates have been prepared in accordance with generally accepted petroleum engineering and evaluation principles. We used standard engineering and geoscience methods, or a combination of methods, such as performance analysis, that we considered to be appropriate and necessary to establish reserves quantities and reserves categorization that conform to the SEC Rule 4-10(a) of Regulation S-X definitions and guidelines. In evaluation the information at our disposal concerning this report, we have excluded from our consideration all matters as to which the controlling interpretation may be political, socioeconomic, legal, or accounting, rather than engineering and geoscience. As in all aspects of oil and gas evaluation, there are uncertainties inherent in the interpretation of engineering and geoscience data; therefore, our conclusions necessarily represent only informed professional judgment. The data used in our estimates were obtained from public data sources, investor presentations, third party research reports, and the non-confidential files of WhiteHawk and were accepted as accurate.

Sincerely,

![LOGO](g86452dsp61.jpg)

**Andrew Schaper, P.E.** 

Principal, SIPC LLC

T.B.P.E. Lic. #132924

3006 Brazos St., Ste 200

Houston, TX 77006

O: (713) 669-0775

C: (713) 515-4620

<u>andrew@schaperintl.com</u>

---

| | |
|:---|:---|
| **SE LLC** | 4.0 |

---

------

**Section 2** 

Cash Flows – Base Pricing

------

---

| | | | |
|:---|:---|:---|:---|
| YE24_RSV_CAT = 1PDP | DATE | : | 02/04/2025 |
| BASIN = MARCELLUS | TIME | : | 11:06:31 |
|  | DBS | : | WHK |
|  | SETTINGS | : | SE |
|  | SCENARIO | : | SE_WH_0125 |

---

SCHAPER ENERGY

RESERVES AND ECONOMICS

AS OF DATE: 12/31/2024

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | GROSS OIL<br>PROD<br>MBBLS | GROSS GAS<br>PROD<br>MMCF | GROSS NGL<br>PROD<br>MBBLS | NET OIL<br>PROD<br>MBBLS | NET GAS<br>PROD<br>MMCF | NET NGL<br>PROD<br>MBBLS | NET EQUIV<br>PROD<br>MBOE | NET EQU<br>RATE<br>BOEPD | OIL<br>PRICE<br>$/BBL | GAS<br>PRICE<br>$/MCF | NGL<br>PRICE<br>$/BBL |
| 12-2025 | 2176.4 | 2318459.1 | 26237.4 | 3 | 6351.9 | 58.5 | 1120.1 | 3068.7 | 66.27 | 1.690 | 25.35 |
| 12-2026 | 1420.9 | 1767051.9 | 20957.6 | 2 | 4873.2 | 49.4 | 863.6 | 2366 | 65.67 | 1.701 | 24.73 |
| 12-2027 | 1086.9 | 1459733.4 | 17742.8 | 1.6 | 4072.7 | 43.4 | 723.7 | 1982.8 | 65.47 | 1.701 | 24.41 |
| 12-2028 | 888.1 | 1256890.2 | 15566.7 | 1.3 | 3544.2 | 38.9 | 631 | 1728.7 | 65.39 | 1.700 | 24.24 |
| 12-2029 | 753.3 | 1109596.4 | 13951.9 | 1.2 | 3158 | 35.5 | 563 | 1542.3 | 65.35 | 1.699 | 24.19 |
| 12-2030 | 655 | 996066.6 | 12681.6 | 1 | 2857.3 | 32.6 | 509.9 | 1396.8 | 65.35 | 1.699 | 24.12 |
| 12-2031 | 579.5 | 904773.8 | 11639.6 | 0.9 | 2612.4 | 30.2 | 466.5 | 1278.1 | 65.37 | 1.700 | 24.07 |
| 12-2032 | 519.2 | 828501.4 | 10753.2 | 0.9 | 2401.9 | 28.1 | 429.2 | 1176 | 65.37 | 1.701 | 24.04 |
| 12-2033 | 469.7 | 762600.1 | 9974.3 | 0.8 | 2213.2 | 26.1 | 395.8 | 1084.4 | 65.38 | 1.701 | 24.02 |
| 12-2034 | 428 | 705557.6 | 9275.1 | 0.7 | 2054.8 | 24.4 | 367.6 | 1007.1 | 65.39 | 1.702 | 24.01 |
| 12-2035 | 392.1 | 654459.5 | 8639.1 | 0.7 | 1911.7 | 22.8 | 342 | 937.1 | 65.39 | 1.702 | 24.00 |
| 12-2036 | 360.6 | 608131.1 | 8056.4 | 0.6 | 1780.8 | 21.2 | 318.7 | 873.1 | 65.40 | 1.702 | 24.01 |
| 12-2037 | 332.8 | 565929.9 | 7519.8 | 0.6 | 1660.2 | 19.8 | 297.1 | 814 | 65.40 | 1.702 | 24.01 |
| 12-2038 | 307.9 | 527189.1 | 7023.4 | 0.5 | 1548.5 | 18.5 | 277.2 | 759.3 | 65.40 | 1.702 | 24.02 |
| 12-2039 | 285.4 | 491467 | 6563 | 0.5 | 1444.8 | 17.3 | 258.6 | 708.6 | 65.40 | 1.702 | 24.03 |
| 12-2040 | 265 | 458273.6 | 6135.3 | 0.5 | 1348.1 | 16.2 | 241.3 | 661.1 | 65.40 | 1.702 | 24.03 |
| 12-2041 | 246.3 | 427412.9 | 5736.9 | 0.4 | 1257.8 | 15.1 | 225.2 | 616.9 | 65.40 | 1.702 | 24.04 |
| 12-2042 | 229.2 | 398714.9 | 5364.7 | 0.4 | 1174.2 | 14.1 | 210.2 | 576 | 65.40 | 1.702 | 24.05 |
| 12-2043 | 213.4 | 372130 | 5016.8 | 0.4 | 1096.4 | 13.2 | 196.3 | 537.8 | 65.39 | 1.702 | 24.06 |
| 12-2044 | 198.9 | 347292.7 | 4691.6 | 0.4 | 1023.4 | 12.3 | 183.2 | 502 | 65.39 | 1.702 | 24.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 11808.5 | 16960230.4 | 213527.1 | 18.5 | 48385.6 | 537.6 | 8620.3 | 1180.8 | 65.56 | 1.700 | 24.30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 2304.2 | 4268025.9 | 59308.8 | 4.2 | 12617.3 | 152.6 | 2259.8 | 104.9 | 65.36 | 1.703 | 24.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 14112.7 | 21228257.3 | 272835.9 | 22.7 | 61003 | 690.2 | 10880 | 377.3 | 65.53 | 1.700 | 24.27 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | TOTAL NET<br>REVENUE<br>M$ | WELL<br>CNT | AD VAL<br>TAX<br>M$ | PROD<br>TAX<br>M$ | DIRECT<br>OPEX<br>M$ | OPER.<br>CASHFLOW<br>M$ | NET<br>CAPEX<br>M$ | FREE<br>CASHFLOW<br>M$ | CUM. FREE<br>CASHFLOW<br>M$ | CUM. DISC.<br>FCF.<br>M$ |
| 12-2025 | 12415.7 | 2066.3 | 0 | 9.1 | 1607.2 | 10799.5 | 0 | 10799.5 | 10799.5 | 10326 |
| 12-2026 | 9640.5 | 2067 | 0 | 5.8 | 1271.5 | 8363.2 | 0 | 8363.2 | 19162.6 | 17589.6 |
| 12-2027 | 8090.2 | 2067 | 0 | 4 | 1082.8 | 7003.4 | 0 | 7003.4 | 26166 | 23117 |
| 12-2028 | 7057.9 | 2067 | 0 | 3.1 | 954.1 | 6100.7 | 0 | 6100.7 | 32266.8 | 27493.3 |
| 12-2029 | 6299.6 | 2067 | 0 | 2.6 | 857.8 | 5439.2 | 0 | 5439.2 | 37706 | 31039.8 |
| 12-2030 | 5710.6 | 2067 | 0 | 2.2 | 781.3 | 4927.1 | 0 | 4927.1 | 42633.1 | 33960 |
| 12-2031 | 5229.5 | 2067 | 0 | 1.9 | 718 | 4509.6 | 0 | 4509.6 | 47142.6 | 36389.6 |
| 12-2032 | 4815.9 | 2067 | 0 | 1.6 | 663.1 | 4151.1 | 0 | 4151.1 | 51293.8 | 38422.8 |
| 12-2033 | 4445.7 | 2067 | 0 | 1.5 | 613.5 | 3830.7 | 0 | 3830.7 | 55124.5 | 40128.3 |
| 12-2034 | 4130 | 2067 | 0 | 1.3 | 570.8 | 3557.9 | 0 | 3557.9 | 58682.4 | 41568.3 |
| 12-2035 | 3844 | 2066.4 | 0 | 1.2 | 531.8 | 3310.9 | 0 | 3310.9 | 61993.3 | 42786.6 |
| 12-2036 | 3582 | 2064.2 | 0 | 1.1 | 495.9 | 3085 | 0 | 3085 | 65078.3 | 43818.5 |
| 12-2037 | 3340.4 | 2063.2 | 0 | 1 | 462.6 | 2876.8 | 0 | 2876.8 | 67955.1 | 44693.3 |
| 12-2038 | 3116.5 | 2063 | 0 | 1 | 431.7 | 2683.8 | 0 | 2683.8 | 70638.9 | 45435.2 |
| 12-2039 | 2908.5 | 2063 | 0 | 0.9 | 402.9 | 2504.7 | 0 | 2504.7 | 73143.7 | 46064.7 |
| 12-2040 | 2714.1 | 2061.2 | 0 | 0.8 | 376 | 2337.3 | 0 | 2337.3 | 75480.9 | 46598.6 |
| 12-2041 | 2532.8 | 2059.2 | 0 | 0.8 | 350.9 | 2181.2 | 0 | 2181.2 | 77662.1 | 47051.6 |
| 12-2042 | 2364.8 | 2056.8 | 0 | 0.7 | 327.6 | 2036.5 | 0 | 2036.5 | 79698.5 | 47436.1 |
| 12-2043 | 2208.5 | 2056 | 0 | 0.7 | 305.9 | 1901.9 | 0 | 1901.9 | 81600.4 | 47762.6 |
| 12-2044 | 2061.9 | 2055.3 | 0 | 0.6 | 285.5 | 1775.7 | 0 | 1775.7 | 83376.1 | 48039.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 96508.9 | 2063.9 | 0 | 41.8 | 13090.9 | 83376.1 | 0 | 83376.1 | 83376.1 | 48039.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 25451 | 1030.4 | 0 | 8 | 3513.9 | 21929.1 | 0 | 21929.1 | 105305.2 | 49586.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 121959.8 | 1292 | 0 | 49.8 | 16604.8 | 105305.2 | 0 | 105305.2 | 105305.2 | 49586.5 |

---

---

| | | |
|:---|:---|:---|
|  | OIL | GAS |
|  GROSS WELLS | 102.0 | 1966.0 |
|  GROSS ULT., MB & MMF | 39223.352 | 35416199.168 |
|  GROSS CUM., MB & MMF | 25110.682 | 14187943.936 |
|  GROSS RES., MB & MMF | 14112.670 | 21228255.232 |
|  NET RES., MB & MMF | 22.704 | 61002.956 |
|  NET REVENUE, M$ | 1487.682 | 103722.088 |
|  INITIAL PRICE, $ | 65.062 | 1.697 |
|  INITIAL N.I., PCT. | 0.085 | 0.140 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | P.W.% | P.W., M$ |
|  LIFE, YRS. | 79.00 | 8.00 | 55014.424 |
|  DISCOUNT % | 10.00 | 9.00 | 52134.508 |
|  UNDISCOUNTED PAYOUT, YRS. | 0.00 | 10.00 | 49586.492 |
|  DISCOUNTED PAYOUT, YRS. | 0.00 | 12.00 | 45279.364 |
|  UNDISCOUNTED NET/INVEST. | 0.00 | 15.00 | 40255.596 |
|  DISCOUNTED NET/INVEST. | 0.00 | 20.00 | 34300.104 |
|  RATE-OF-RETURN, PCT. | 100.00 | 25.00 | 30144.626 |
|  INITIAL W.I., PCT. | 0.000 | 30.00 | 27065.830 |
|  |  | 50.00 | 19922.816 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| YE24_RSV_CAT = 3PDNP | DATE | : | 02/04/2025 |
| BASIN = MARCELLUS | TIME | : | 11:06:32 |
|  | DBS | : | WHK |
|  | SETTINGS | : | SE |
|  | SCENARIO | : | SE_WH_0125 |

---

SCHAPER ENERGY

RESERVES AND ECONOMICS

AS OF DATE: 12/31/2024

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | GROSS OIL<br>PROD<br>MBBLS | GROSS GAS<br>PROD<br>MMCF | GROSS NGL<br>PROD<br>MBBLS | NET OIL<br>PROD<br>MBBLS | NET GAS<br>PROD<br>MMCF | NET NGL<br>PROD<br>MBBLS | NET EQUIV<br>PROD<br>MBOE | NET EQU<br>RATE<br>BOEPD | OIL<br>PRICE<br>$/BBL | GAS<br>PRICE<br>$/MCF | NGL<br>PRICE<br>$/BBL |
| 12-2025 | 92.6 | 68356.1 | 1703.3 | 0.1 | 77.4 | 2.1 | 15.0 | 41.2 | 75.47 | 1.934 | 24.81 |
| 12-2026 | 33.5 | 41733.2 | 1097.3 | 0.0 | 46.2 | 1.2 | 8.9 | 24.4 | 75.46 | 1.939 | 24.86 |
| 12-2027 | 20.5 | 29655.6 | 762.8 | 0.0 | 33.0 | 0.8 | 6.4 | 17.4 | 75.45 | 1.939 | 24.70 |
| 12-2028 | 14.5 | 23194.1 | 584.1 | 0.0 | 25.9 | 0.7 | 5.0 | 13.6 | 75.45 | 1.937 | 24.76 |
| 12-2029 | 11.1 | 19132.2 | 472.6 | 0.0 | 21.4 | 0.5 | 4.1 | 11.3 | 75.45 | 1.936 | 25.46 |
| 12-2030 | 9.0 | 16329.4 | 396.5 | 0.0 | 18.4 | 0.4 | 3.5 | 9.6 | 75.45 | 1.934 | 25.46 |
| 12-2031 | 7.5 | 14273.2 | 341.2 | 0.0 | 16.1 | 0.4 | 3.1 | 8.4 | 75.45 | 1.932 | 25.47 |
| 12-2032 | 6.4 | 12697.4 | 299.2 | 0.0 | 14.3 | 0.3 | 2.7 | 7.5 | 75.45 | 1.930 | 25.47 |
| 12-2033 | 5.6 | 11449.6 | 266.2 | 0.0 | 13.0 | 0.3 | 2.5 | 6.8 | 75.44 | 1.929 | 25.47 |
| 12-2034 | 4.9 | 10435.9 | 239.7 | 0.0 | 11.8 | 0.3 | 2.2 | 6.2 | 75.44 | 1.927 | 25.47 |
| 12-2035 | 4.4 | 9595.5 | 217.9 | 0.0 | 10.9 | 0.2 | 2.1 | 5.7 | 75.44 | 1.926 | 25.47 |
| 12-2036 | 4.0 | 8886.8 | 199.7 | 0.0 | 10.1 | 0.2 | 1.9 | 5.2 | 75.44 | 1.924 | 25.47 |
| 12-2037 | 3.6 | 8277.0 | 184.2 | 0.0 | 9.4 | 0.2 | 1.8 | 4.9 | 75.44 | 1.923 | 25.47 |
| 12-2038 | 3.3 | 7733.8 | 170.9 | 0.0 | 8.8 | 0.2 | 1.7 | 4.6 | 75.44 | 1.922 | 25.47 |
| 12-2039 | 3.1 | 7243.3 | 159.4 | 0.0 | 8.3 | 0.2 | 1.6 | 4.3 | 75.44 | 1.922 | 25.47 |
| 12-2040 | 2.8 | 6797.7 | 149.3 | 0.0 | 7.8 | 0.2 | 1.5 | 4.0 | 75.44 | 1.921 | 25.47 |
| 12-2041 | 2.6 | 6388.0 | 140.2 | 0.0 | 7.3 | 0.2 | 1.4 | 3.8 | 75.44 | 1.921 | 25.47 |
| 12-2042 | 2.5 | 6004.7 | 131.8 | 0.0 | 6.9 | 0.2 | 1.3 | 3.5 | 75.44 | 1.921 | 25.47 |
| 12-2043 | 2.3 | 5644.4 | 123.9 | 0.0 | 6.4 | 0.1 | 1.2 | 3.3 | 75.44 | 1.921 | 25.47 |
| 12-2044 | 2.2 | 5305.8 | 116.5 | 0.0 | 6.1 | 0.1 | 1.1 | 3.1 | 75.44 | 1.921 | 25.47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 236.4 | 319133.8 | 7756.7 | 0.1 | 359.4 | 8.9 | 68.9 | 9.4 | 75.46 | 1.932 | 25.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 33.2 | 74652.1 | 1724.5 | 0.0 | 83.1 | 1.8 | 15.7 | 0.7 | 75.44 | 1.934 | 25.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 269.6 | 393785.9 | 9481.1 | 0.2 | 442.5 | 10.7 | 84.6 | 2.9 | 75.45 | 1.932 | 25.22 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | TOTAL NET<br>REVENUE<br>M$ | WELL<br>CNT | AD VAL<br>TAX<br>M$ | PROD<br>TAX<br>M$ | DIRECT<br>OPEX<br>M$ | OPER.<br>CASHFLOW<br>M$ | NET<br>CAPEX<br>M$ | FREE<br>CASHFLOW<br>M$ | CUM. FREE<br>CASHFLOW<br>M$ | CUM. DISC.<br>FCF.<br>M$ |
| 12-2025 | 205.2 | 16.0 | 0.0 | 0.1 | 25.4 | 179.7 | 0.0 | 179.7 | 179.7 | 172.2 |
| 12-2026 | 121.0 | 16.0 | 0.0 | 0.1 | 15.0 | 105.9 | 0.0 | 105.9 | 285.6 | 264.3 |
| 12-2027 | 85.8 | 16.0 | 0.0 | 0.0 | 10.7 | 75.2 | 0.0 | 75.2 | 360.7 | 323.7 |
| 12-2028 | 67.1 | 16.0 | 0.0 | 0.0 | 8.4 | 58.7 | 0.0 | 58.7 | 419.4 | 365.8 |
| 12-2029 | 55.5 | 16.0 | 0.0 | 0.0 | 6.9 | 48.6 | 0.0 | 48.6 | 468.0 | 397.5 |
| 12-2030 | 47.3 | 16.0 | 0.0 | 0.0 | 6.0 | 41.3 | 0.0 | 41.3 | 509.3 | 422.0 |
| 12-2031 | 41.2 | 16.0 | 0.0 | 0.0 | 5.2 | 36.0 | 0.0 | 36.0 | 545.2 | 441.4 |
| 12-2032 | 36.6 | 16.0 | 0.0 | 0.0 | 4.7 | 31.9 | 0.0 | 31.9 | 577.1 | 457.0 |
| 12-2033 | 32.9 | 16.0 | 0.0 | 0.0 | 4.3 | 28.7 | 0.0 | 28.7 | 605.8 | 469.7 |
| 12-2034 | 29.9 | 16.0 | 0.0 | 0.0 | 3.9 | 26.0 | 0.0 | 26.0 | 631.8 | 480.3 |
| 12-2035 | 27.5 | 16.0 | 0.0 | 0.0 | 3.6 | 23.9 | 0.0 | 23.9 | 655.7 | 489.1 |
| 12-2036 | 25.4 | 16.0 | 0.0 | 0.0 | 3.3 | 22.0 | 0.0 | 22.0 | 677.7 | 496.4 |
| 12-2037 | 23.6 | 16.0 | 0.0 | 0.0 | 3.1 | 20.5 | 0.0 | 20.5 | 698.2 | 502.7 |
| 12-2038 | 22.0 | 16.0 | 0.0 | 0.0 | 2.9 | 19.1 | 0.0 | 19.1 | 717.3 | 507.9 |
| 12-2039 | 20.6 | 16.0 | 0.0 | 0.0 | 2.8 | 17.9 | 0.0 | 17.9 | 735.2 | 512.4 |
| 12-2040 | 19.4 | 16.0 | 0.0 | 0.0 | 2.6 | 16.8 | 0.0 | 16.8 | 751.9 | 516.3 |
| 12-2041 | 18.2 | 16.0 | 0.0 | 0.0 | 2.4 | 15.8 | 0.0 | 15.8 | 767.7 | 519.5 |
| 12-2042 | 17.1 | 16.0 | 0.0 | 0.0 | 2.3 | 14.8 | 0.0 | 14.8 | 782.5 | 522.3 |
| 12-2043 | 16.1 | 16.0 | 0.0 | 0.0 | 2.1 | 13.9 | 0.0 | 13.9 | 796.4 | 524.7 |
| 12-2044 | 15.1 | 16.0 | 0.0 | 0.0 | 2.0 | 13.1 | 0.0 | 13.1 | 809.5 | 526.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 927.5 | 16.0 | 0.0 | 0.4 | 117.6 | 809.5 | 0.0 | 809.5 | 809.5 | 526.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 209.7 | 11.1 | 0.0 | 0.1 | 26.7 | 182.9 | 0.0 | 182.9 | 992.4 | 538.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 1137.2 | 12.3 | 0.0 | 0.5 | 144.3 | 992.4 | 0.0 | 992.4 | 992.4 | 538.7 |

---

---

| | | |
|:---|:---|:---|
|  | OIL | GAS |
|  GROSS WELLS | 7.0 | 9.0 |
|  GROSS ULT., MB & MMF | 281.396 | 396544.672 |
|  GROSS CUM., MB & MMF | 11.841 | 2758.740 |
|  GROSS RES., MB & MMF | 269.555 | 393785.920 |
|  NET RES., MB & MMF | 0.163 | 442.497 |
|  NET REVENUE, M$ | 12.296 | 855.038 |
|  INITIAL PRICE, $ | 75.477 | 2.006 |
|  INITIAL N.I., PCT. | 0.060 | 0.065 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | P.W.% | P.W., M$ |
|  LIFE, YRS. | 79.00 | 8.00 | 583.157 |
|  DISCOUNT % | 10.00 | 9.00 | 559.628 |
|  UNDISCOUNTED PAYOUT, YRS. | 0.00 | 10.00 | 538.676 |
|  DISCOUNTED PAYOUT, YRS. | 0.00 | 12.00 | 502.883 |
|  UNDISCOUNTED NET/INVEST. | 0.00 | 15.00 | 460.342 |
|  DISCOUNTED NET/INVEST. | 0.00 | 20.00 | 408.352 |
|  RATE-OF-RETURN, PCT. | 100.00 | 25.00 | 370.692 |
|  INITIAL W.I., PCT. | 0.000 | 30.00 | 341.823 |
|  |  | 50.00 | 270.521 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| YE24_RSV_CAT = 4PUD | DATE | : | 02/04/2025 |
| BASIN = MARCELLUS | TIME | : | 11:06:52 |
|  | DBS | : | WHK |
|  | SETTINGS | : | SE |
|  | SCENARIO | : | SE_WH_0125 |

---

SCHAPER ENERGY

RESERVES AND ECONOMICS

AS OF DATE: 12/31/2024

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | GROSS OIL<br>PROD<br>MBBLS | GROSS GAS<br>PROD<br>MMCF | GROSS NGL<br>PROD<br>MBBLS | NET OIL<br>PROD<br>MBBLS | NET GAS<br>PROD<br>MMCF | NET NGL<br>PROD<br>MBBLS | NET EQUIV<br>PROD<br>MBOE | NET EQU<br>RATE<br>BOEPD | OIL<br>PRICE<br>$/BBL | GAS<br>PRICE<br>$/MCF | NGL<br>PRICE<br>$/BBL |
| 12-2025 | 1592.7 | 413465.8 | 5064.8 | 3.8 | 890.3 | 11.6 | 163.7 | 448.6 | 65.95 | 1.906 | 29.16 |
| 12-2026 | 1648.1 | 737742.9 | 11468.0 | 3.8 | 1736.4 | 21.5 | 314.7 | 862.1 | 65.13 | 2.078 | 35.80 |
| 12-2027 | 752.2 | 541558.1 | 7947.4 | 1.7 | 1346.1 | 15.0 | 241.1 | 660.5 | 64.62 | 2.229 | 35.15 |
| 12-2028 | 468.8 | 392257.3 | 5974.9 | 1.1 | 960.9 | 11.5 | 172.8 | 473.3 | 64.35 | 2.150 | 34.74 |
| 12-2029 | 334.3 | 313090.3 | 4839.7 | 0.8 | 764.4 | 9.5 | 137.7 | 377.1 | 64.14 | 2.093 | 34.65 |
| 12-2030 | 256.8 | 262794.7 | 4093.5 | 0.6 | 641.4 | 8.1 | 115.6 | 316.7 | 64.06 | 2.082 | 34.57 |
| 12-2031 | 206.8 | 227640.9 | 3562.0 | 0.5 | 556.1 | 7.1 | 100.3 | 274.7 | 64.03 | 2.077 | 34.57 |
| 12-2032 | 172.2 | 201528.1 | 3162.4 | 0.4 | 492.9 | 6.4 | 88.9 | 243.6 | 64.01 | 2.073 | 34.57 |
| 12-2033 | 146.8 | 181285.5 | 2850.1 | 0.3 | 444.0 | 5.8 | 80.1 | 219.4 | 63.99 | 2.070 | 34.57 |
| 12-2034 | 127.6 | 165087.1 | 2598.8 | 0.3 | 404.9 | 5.3 | 73.1 | 200.2 | 63.97 | 2.067 | 34.58 |
| 12-2035 | 112.5 | 151802.2 | 2391.7 | 0.3 | 372.9 | 4.9 | 67.3 | 184.3 | 63.95 | 2.065 | 34.58 |
| 12-2036 | 100.4 | 140690.8 | 2218.0 | 0.2 | 346.1 | 4.5 | 62.4 | 171.1 | 63.93 | 2.064 | 34.59 |
| 12-2037 | 90.6 | 131226.1 | 2069.5 | 0.2 | 323.2 | 4.3 | 58.3 | 159.8 | 63.92 | 2.062 | 34.60 |
| 12-2038 | 82.3 | 122887.5 | 1937.3 | 0.2 | 303.1 | 4.0 | 54.7 | 149.8 | 63.90 | 2.061 | 34.61 |
| 12-2039 | 75.3 | 115281.8 | 1816.2 | 0.2 | 284.7 | 3.7 | 51.4 | 140.7 | 63.89 | 2.061 | 34.62 |
| 12-2040 | 69.3 | 108244.6 | 1704.5 | 0.2 | 267.5 | 3.5 | 48.3 | 132.2 | 63.88 | 2.061 | 34.62 |
| 12-2041 | 64.1 | 101706.7 | 1601.3 | 0.1 | 251.4 | 3.3 | 45.3 | 124.2 | 63.86 | 2.061 | 34.62 |
| 12-2042 | 59.6 | 95598.0 | 1505.1 | 0.1 | 236.3 | 3.1 | 42.6 | 116.8 | 63.85 | 2.061 | 34.62 |
| 12-2043 | 55.6 | 89862.0 | 1414.7 | 0.1 | 222.1 | 2.9 | 40.1 | 109.8 | 63.84 | 2.061 | 34.62 |
| 12-2044 | 52.0 | 84470.3 | 1329.9 | 0.1 | 208.8 | 2.7 | 37.7 | 103.2 | 63.83 | 2.061 | 34.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 6468.1 | 4578220.0 | 69549.7 | 14.9 | 11053.4 | 138.8 | 1995.9 | 273.4 | 64.87 | 2.085 | 34.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 667.5 | 1137391.4 | 18150.4 | 1.5 | 2773.1 | 36.7 | 500.4 | 23.2 | 63.84 | 2.062 | 34.58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 7135.6 | 5715611.6 | 87700.1 | 16.3 | 13826.5 | 175.5 | 2496.3 | 86.6 | 64.78 | 2.080 | 34.44 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | TOTAL NET<br>REVENUE<br>M$ | WELL<br>CNT | AD VAL<br>TAX<br>M$ | PROD<br>TAX<br>M$ | DIRECT<br>OPEX<br>M$ | OPER.<br>CASHFLOW<br>M$ | NET<br>CAPEX<br>M$ | FREE<br>CASHFLOW<br>M$ | CUM. FREE<br>CASHFLOW<br>M$ | CUM. DISC.<br>FCF.<br>M$ |
| 12-2025 | 2282.5 | 84.4 | 0 | 2.9 | 260.1 | 2019.5 | 0 | 2019.5 | 2019.5 | 1898.5 |
| 12-2026 | 4622.8 | 175.7 | 0 | 4 | 372.8 | 4246 | 0 | 4246 | 6265.6 | 5569.1 |
| 12-2027 | 3640 | 191 | 0 | 2.5 | 257.4 | 3380.1 | 0 | 3380.1 | 9645.6 | 8244.2 |
| 12-2028 | 2536.7 | 191 | 0 | 1.9 | 192.3 | 2342.5 | 0 | 2342.5 | 11988.2 | 9927.2 |
| 12-2029 | 1977.8 | 191 | 0 | 1.5 | 156.2 | 1820.1 | 0 | 1820.1 | 13808.3 | 11115.2 |
| 12-2030 | 1653.7 | 191 | 0 | 1.2 | 132.8 | 1519.6 | 0 | 1519.6 | 15327.9 | 12016.3 |
| 12-2031 | 1430.9 | 191 | 0 | 1 | 116.1 | 1313.7 | 0 | 1313.7 | 16641.6 | 12724.4 |
| 12-2032 | 1266.5 | 191 | 0 | 0.9 | 103.6 | 1161.9 | 0 | 1161.9 | 17803.6 | 13293.6 |
| 12-2033 | 1139.5 | 191 | 0 | 0.8 | 93.8 | 1044.9 | 0 | 1044.9 | 18848.4 | 13758.9 |
| 12-2034 | 1038.1 | 191 | 0 | 0.7 | 85.9 | 951.5 | 0 | 951.5 | 19799.9 | 14144 |
| 12-2035 | 955.1 | 191 | 0 | 0.6 | 79.4 | 875.1 | 0 | 875.1 | 20675 | 14466 |
| 12-2036 | 885.7 | 191 | 0 | 0.6 | 73.9 | 811.3 | 0 | 811.3 | 21486.2 | 14737.4 |
| 12-2037 | 826.7 | 191 | 0 | 0.5 | 69.2 | 757 | 0 | 757 | 22243.2 | 14967.6 |
| 12-2038 | 774.6 | 191 | 0 | 0.5 | 65 | 709.2 | 0 | 709.2 | 22952.3 | 15163.6 |
| 12-2039 | 727.2 | 191 | 0 | 0.5 | 61.1 | 665.6 | 0 | 665.6 | 23617.9 | 15330.9 |
| 12-2040 | 683 | 191 | 0 | 0.4 | 57.4 | 625.2 | 0 | 625.2 | 24243.1 | 15473.7 |
| 12-2041 | 641.8 | 191 | 0 | 0.4 | 54 | 587.4 | 0 | 587.4 | 24830.5 | 15595.7 |
| 12-2042 | 603.2 | 191 | 0 | 0.4 | 50.7 | 552 | 0 | 552 | 25382.6 | 15699.9 |
| 12-2043 | 566.9 | 191 | 0 | 0.4 | 47.7 | 518.8 | 0 | 518.8 | 25901.4 | 15789 |
| 12-2044 | 532.8 | 191 | 0 | 0.3 | 44.8 | 487.7 | 0 | 487.7 | 26389.1 | 15865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 28785.6 | 184.9 | 0 | 22.1 | 2374.4 | 26389.1 | 0 | 26389.1 | 26389.1 | 15865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 7081.1 | 110.4 | 0 | 5.1 | 592.5 | 6483.5 | 0 | 6483.5 | 32872.6 | 16308.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 35866.7 | 129.3 | 0 | 27.2 | 2966.9 | 32872.6 | 0 | 32872.6 | 32872.6 | 16308.1 |

---

---

| | | |
|:---|:---|:---|
|  | OIL | GAS |
|  GROSS WELLS | 39.0 | 152.0 |
|  GROSS ULT., MB & MMF | 7135.608 | 5717217.792 |
|  GROSS CUM., MB & MMF | 0.000 | 1606.769 |
|  GROSS RES., MB & MMF | 7135.607 | 5715611.136 |
|  NET RES., MB & MMF | 16.330 | 13826.452 |
|  NET REVENUE, M$ | 1057.874 | 28763.768 |
|  INITIAL PRICE, $ | 66.722 | 2.113 |
|  INITIAL N.I., PCT. | 0.000 | 0.152 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | P.W.% | P.W., M$ |
|  LIFE, YRS. | 79.00 | 8.00 | 17961.916 |
|  DISCOUNT % | 10.00 | 9.00 | 17087.328 |
|  UNDISCOUNTED PAYOUT, YRS. | 0.00 | 10.00 | 16308.091 |
|  DISCOUNTED PAYOUT, YRS. | 0.00 | 12.00 | 14976.363 |
|  UNDISCOUNTED NET/INVEST. | 0.00 | 15.00 | 13393.504 |
|  DISCOUNTED NET/INVEST. | 0.00 | 20.00 | 11460.728 |
|  RATE-OF-RETURN, PCT. | 100.00 | 25.00 | 10063.802 |
|  INITIAL W.I., PCT. | 0.000 | 30.00 | 8996.537 |
|  |  | 50.00 | 6390.413 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| BASIN = MARCELLUS | DATE | : | 02/04/2025 |
|  | TIME | : | 11:06:52 |
|  | DBS | : | WHK |
|  | SETTINGS | : | SE |
|  | SCENARIO | : | SE_WH_0125 |

---

SCHAPER ENERGY

RESERVES AND ECONOMICS

AS OF DATE: 12/31/2024

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | GROSS OIL<br>PROD<br>MBBLS | GROSS GAS<br>PROD<br>MMCF | GROSS NGL<br>PROD<br>MBBLS | NET OIL<br>PROD<br>MBBLS | NET GAS<br>PROD<br>MMCF | NET NGL<br>PROD<br>MBBLS | NET EQUIV<br>PROD<br>MBOE | NET EQU<br>RATE<br>BOEPD | OIL<br>PRICE<br>$/BBL | GAS<br>PRICE<br>$/MCF | NGL<br>PRICE<br>$/BBL |
| 12-2025 | 3861.7 | 2800281.1 | 33005.5 | 6.8 | 7319.6 | 72.1 | 1298.8 | 3558.4 | 66.17 | 1.719 | 25.95 |
| 12-2026 | 3102.5 | 2546528 | 33522.9 | 5.8 | 6655.8 | 72.1 | 1187.2 | 3252.5 | 65.35 | 1.801 | 28.04 |
| 12-2027 | 1859.6 | 2030947.1 | 26453.1 | 3.3 | 5451.7 | 59.2 | 971.2 | 2660.8 | 65.07 | 1.833 | 27.14 |
| 12-2028 | 1371.4 | 1672341.8 | 22125.7 | 2.4 | 4531 | 51.1 | 808.7 | 2215.7 | 64.97 | 1.797 | 26.62 |
| 12-2029 | 1098.7 | 1441818.9 | 19264.2 | 1.9 | 3943.9 | 45.5 | 704.7 | 1930.8 | 64.91 | 1.776 | 26.39 |
| 12-2030 | 920.8 | 1275190.7 | 17171.6 | 1.6 | 3517 | 41.2 | 629 | 1723.2 | 64.92 | 1.771 | 26.19 |
| 12-2031 | 793.8 | 1146688 | 15542.8 | 1.4 | 3184.6 | 37.7 | 569.9 | 1561.2 | 64.96 | 1.767 | 26.07 |
| 12-2032 | 697.8 | 1042726.9 | 14214.7 | 1.3 | 2909.1 | 34.8 | 520.9 | 1427 | 64.98 | 1.765 | 25.98 |
| 12-2033 | 622.1 | 955335.2 | 13090.6 | 1.1 | 2670.2 | 32.2 | 478.4 | 1310.6 | 65.00 | 1.764 | 25.92 |
| 12-2034 | 560.6 | 881080.7 | 12113.6 | 1 | 2471.6 | 29.9 | 442.9 | 1213.4 | 65.02 | 1.763 | 25.88 |
| 12-2035 | 509 | 815857.1 | 11248.7 | 0.9 | 2295.5 | 27.9 | 411.4 | 1127.1 | 65.03 | 1.762 | 25.87 |
| 12-2036 | 465 | 757708.7 | 10474.1 | 0.9 | 2137 | 26 | 383 | 1049.4 | 65.04 | 1.762 | 25.87 |
| 12-2037 | 426.9 | 705433 | 9773.5 | 0.8 | 1992.9 | 24.3 | 357.2 | 978.7 | 65.05 | 1.761 | 25.88 |
| 12-2038 | 393.5 | 657810.5 | 9131.7 | 0.7 | 1860.4 | 22.7 | 333.5 | 913.7 | 65.05 | 1.762 | 25.89 |
| 12-2039 | 363.8 | 613992.1 | 8538.6 | 0.7 | 1737.8 | 21.2 | 311.5 | 853.5 | 65.05 | 1.762 | 25.91 |
| 12-2040 | 337.1 | 573315.9 | 7989.2 | 0.6 | 1623.3 | 19.9 | 291 | 797.4 | 65.05 | 1.762 | 25.92 |
| 12-2041 | 313.1 | 535507.6 | 7478.4 | 0.6 | 1516.5 | 18.6 | 271.9 | 744.9 | 65.05 | 1.763 | 25.94 |
| 12-2042 | 291.2 | 500317.6 | 7001.5 | 0.5 | 1417.3 | 17.4 | 254.1 | 696.3 | 65.05 | 1.763 | 25.95 |
| 12-2043 | 271.3 | 467636.4 | 6555.4 | 0.5 | 1325 | 16.3 | 237.6 | 650.9 | 65.04 | 1.763 | 25.97 |
| 12-2044 | 253 | 437068.7 | 6137.9 | 0.5 | 1238.2 | 15.2 | 222 | 608.3 | 65.04 | 1.764 | 25.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 18513 | 21857583.1 | 290833.5 | 33.5 | 59798.4 | 685.2 | 10685.1 | 1463.7 | 65.30 | 1.772 | 26.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 3004.8 | 5480070.1 | 79183.7 | 5.7 | 15473.5 | 191.2 | 2775.8 | 128.9 | 65.01 | 1.769 | 26.17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 21517.8 | 27337654.3 | 370017.2 | 39.2 | 75271.9 | 876.4 | 13460.9 | 466.8 | 65.26 | 1.771 | 26.32 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | TOTAL NET<br>REVENUE<br>M$ | WELL<br>CNT | AD VAL<br>TAX<br>M$ | PROD<br>TAX<br>M$ | DIRECT<br>OPEX<br>M$ | OPER.<br>CASHFLOW<br>M$ | NET<br>CAPEX<br>M$ | FREE<br>CASHFLOW<br>M$ | CUM. FREE<br>CASHFLOW<br>M$ | CUM. DISC.<br>FCF.<br>M$ |
| 12-2025 | 14903.5 | 2166.8 | 0 | 12.1 | 1892.7 | 12998.7 | 0 | 12998.7 | 12998.7 | 12396.6 |
| 12-2026 | 14384.3 | 2258.7 | 0 | 9.9 | 1659.3 | 12715.1 | 0 | 12715.1 | 25713.8 | 23423 |
| 12-2027 | 11816.1 | 2274 | 0 | 6.6 | 1350.9 | 10458.6 | 0 | 10458.6 | 36172.4 | 31684.9 |
| 12-2028 | 9661.7 | 2274 | 0 | 5 | 1154.8 | 8501.9 | 0 | 8501.9 | 44674.3 | 37786.3 |
| 12-2029 | 8332.9 | 2274 | 0 | 4.1 | 1021 | 7307.9 | 0 | 7307.9 | 51982.2 | 42552.4 |
| 12-2030 | 7411.5 | 2274 | 0 | 3.4 | 920.1 | 6488 | 0 | 6488 | 58470.2 | 46398.3 |
| 12-2031 | 6701.6 | 2274 | 0 | 2.9 | 839.4 | 5859.3 | 0 | 5859.3 | 64329.5 | 49555.3 |
| 12-2032 | 6118.9 | 2274 | 0 | 2.6 | 771.4 | 5345 | 0 | 5345 | 69674.5 | 52173.4 |
| 12-2033 | 5618 | 2274 | 0 | 2.3 | 711.6 | 4904.2 | 0 | 4904.2 | 74578.7 | 54356.9 |
| 12-2034 | 5198 | 2274 | 0 | 2 | 660.6 | 4535.4 | 0 | 4535.4 | 79114.1 | 56192.6 |
| 12-2035 | 4826.5 | 2273.4 | 0 | 1.9 | 614.8 | 4209.9 | 0 | 4209.9 | 83323.9 | 57741.7 |
| 12-2036 | 4493.2 | 2271.2 | 0 | 1.7 | 573.1 | 3918.3 | 0 | 3918.3 | 87242.2 | 59052.3 |
| 12-2037 | 4190.7 | 2270.2 | 0 | 1.6 | 534.9 | 3654.2 | 0 | 3654.2 | 90896.5 | 60163.5 |
| 12-2038 | 3913.1 | 2270 | 0 | 1.5 | 499.6 | 3412.1 | 0 | 3412.1 | 94308.6 | 61106.7 |
| 12-2039 | 3656.3 | 2270 | 0 | 1.4 | 466.7 | 3188.2 | 0 | 3188.2 | 97496.8 | 61907.9 |
| 12-2040 | 3416.5 | 2268.2 | 0 | 1.3 | 436 | 2979.2 | 0 | 2979.2 | 100476 | 62588.6 |
| 12-2041 | 3192.8 | 2266.2 | 0 | 1.2 | 407.3 | 2784.3 | 0 | 2784.3 | 103260.3 | 63166.9 |
| 12-2042 | 2985 | 2263.8 | 0 | 1.1 | 380.6 | 2603.3 | 0 | 2603.3 | 105863.6 | 63658.4 |
| 12-2043 | 2791.4 | 2263 | 0 | 1 | 355.7 | 2434.7 | 0 | 2434.7 | 108298.3 | 64076.3 |
| 12-2044 | 2609.8 | 2262.3 | 0 | 1 | 332.4 | 2276.4 | 0 | 2276.4 | 110574.7 | 64431.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 126222 | 2264.8 | 0 | 64.3 | 15583 | 110574.7 | 0 | 110574.7 | 110574.7 | 64431.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 32741.7 | 1151.8 | 0 | 13.2 | 4133 | 28595.4 | 0 | 28595.4 | 139170.2 | 66433.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 158963.7 | 1433.6 | 0 | 77.6 | 19716 | 139170.1 | 0 | 139170.1 | 139170.2 | 66433.3 |

---

---

| | | |
|:---|:---|:---|
|  | OIL | GAS |
|  GROSS WELLS | 148.0 | 2127.0 |
|  GROSS ULT., MB & MMF | 46640.348 | 41529962.496 |
|  GROSS CUM., MB & MMF | 25122.524 | 14192309.248 |
|  GROSS RES., MB & MMF | 21517.824 | 27337654.272 |
|  NET RES., MB & MMF | 39.197 | 75271.904 |
|  NET REVENUE, M$ | 2557.852 | 133340.880 |
|  INITIAL PRICE, $ | 65.887 | 1.798 |
|  IITIAL N.I., PCT. | 0.085 | 0.140 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | P.W. % | P.W., M$ |
|  LIFE, YRS. | 79.00 | 8.00 | 73559.496 |
|  DISCOUNT % | 10.00 | 9.00 | 69781.464 |
|  UNDISCOUNTED PAYOUT, YRS. | 0.00 | 10.00 | 66433.260 |
|  DISCOUNTED PAYOUT, YRS. | 0.00 | 12.00 | 60758.612 |
|  UNDISCOUNTED NET/INVEST. | 0.00 | 15.00 | 54109.440 |
|  DISCOUNTED NET/INVEST. | 0.00 | 20.00 | 46169.184 |
|  RATE-OF-RETURN, PCT. | 100.00 | 25.00 | 40579.120 |
|  INITIAL W.I., PCT. | 0.000 | 30.00 | 36404.192 |
|  |  | 50.00 | 26583.748 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| YE24_RSV_CAT = 1PDP | DATE | : | 02/04/2025 |
| BASIN = HAYNESVILLE | TIME | : | 11:09:14 |
|  | DBS | : | WHK |
|  | SETTINGS | : | SE |
|  | SCENARIO | : | SE_WH_0125 |

---

SCHAPER ENERGY

RESERVES AND ECONOMICS

AS OF DATE: 12/31/2024

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | GROSS OIL<br>PROD<br>MBBLS | GROSS GAS<br>PROD<br>MMCF | GROSS NGL<br>PROD<br>MBBLS | NET OIL<br>PROD<br>MBBLS | NET GAS<br>PROD<br>MMCF | NET NGL<br>PROD<br>MBBLS | NET EQUIV<br>PROD<br>MBOE | NET EQU<br>RATE<br>BOEPD | OIL<br>PRICE<br>$/BBL | GAS<br>PRICE<br>$/MCF | NGL<br>PRICE<br>$/BBL |
| 12-2025 | 8.4 | 998593.0 | 0.0 | 0.0 | 594.8 | 0.0 | 99.1 | 271.6 | 68.48 | 1.980 | 0.00 |
| 12-2026 | 7.3 | 683758.5 | 0.0 | 0.0 | 403.0 | 0.0 | 67.2 | 184.0 | 68.48 | 1.980 | 0.00 |
| 12-2027 | 6.4 | 515252.0 | 0.0 | 0.0 | 305.4 | 0.0 | 50.9 | 139.5 | 68.48 | 1.980 | 0.00 |
| 12-2028 | 5.7 | 413727.7 | 0.0 | 0.0 | 245.9 | 0.0 | 41.0 | 112.3 | 68.48 | 1.980 | 0.00 |
| 12-2029 | 5.1 | 344843.7 | 0.0 | 0.0 | 205.4 | 0.0 | 34.2 | 93.8 | 68.48 | 1.980 | 0.00 |
| 12-2030 | 4.6 | 294817.5 | 0.0 | 0.0 | 176.0 | 0.0 | 29.3 | 80.4 | 68.48 | 1.980 | 0.00 |
| 12-2031 | 4.2 | 256820.9 | 0.0 | 0.0 | 153.6 | 0.0 | 25.6 | 70.1 | 68.48 | 1.980 | 0.00 |
| 12-2032 | 3.8 | 226996.6 | 0.0 | 0.0 | 135.9 | 0.0 | 22.7 | 62.1 | 68.48 | 1.980 | 0.00 |
| 12-2033 | 3.5 | 202982.0 | 0.0 | 0.0 | 121.7 | 0.0 | 20.3 | 55.6 | 68.48 | 1.980 | 0.00 |
| 12-2034 | 3.2 | 183234.0 | 0.0 | 0.0 | 110.0 | 0.0 | 18.3 | 50.2 | 68.48 | 1.980 | 0.00 |
| 12-2035 | 3.0 | 166699.6 | 0.0 | 0.0 | 100.2 | 0.0 | 16.7 | 45.8 | 68.48 | 1.980 | 0.00 |
| 12-2036 | 2.8 | 152634.3 | 0.0 | 0.0 | 91.9 | 0.0 | 15.3 | 41.9 | 68.48 | 1.980 | 0.00 |
| 12-2037 | 2.5 | 140505.0 | 0.0 | 0.0 | 84.6 | 0.0 | 14.1 | 38.6 | 68.48 | 1.980 | 0.00 |
| 12-2038 | 2.4 | 129910.3 | 0.0 | 0.0 | 78.3 | 0.0 | 13.0 | 35.8 | 68.48 | 1.980 | 0.00 |
| 12-2039 | 2.2 | 120518.5 | 0.0 | 0.0 | 72.6 | 0.0 | 12.1 | 33.2 | 68.48 | 1.980 | 0.00 |
| 12-2040 | 2.0 | 112063.2 | 0.0 | 0.0 | 67.5 | 0.0 | 11.2 | 30.8 | 68.48 | 1.980 | 0.00 |
| 12-2041 | 1.9 | 104339.5 | 0.0 | 0.0 | 62.8 | 0.0 | 10.5 | 28.7 | 68.48 | 1.980 | 0.00 |
| 12-2042 | 1.7 | 97222.8 | 0.0 | 0.0 | 58.4 | 0.0 | 9.7 | 26.7 | 68.48 | 1.980 | 0.00 |
| 12-2043 | 1.6 | 90633.9 | 0.0 | 0.0 | 54.4 | 0.0 | 9.1 | 24.8 | 68.48 | 1.980 | 0.00 |
| 12-2044 | 1.5 | 84515.7 | 0.0 | 0.0 | 50.6 | 0.0 | 8.4 | 23.1 | 68.48 | 1.980 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 73.6 | 5320068.6 | 0.0 | 0.0 | 3173.0 | 0.0 | 528.9 | 72.4 | 68.48 | 1.980 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 15.6 | 1028947.8 | 0.0 | 0.0 | 606.6 | 0.0 | 101.1 | 9.2 | 68.48 | 1.980 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 89.2 | 6349016.6 | 0.0 | 0.0 | 3779.6 | 0.0 | 630.0 | 34.5 | 68.48 | 1.980 | 0.00 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | TOTAL NET<br>REVENUE<br>M$ | WELL<br>CNT | AD VAL<br>TAX<br>M$ | PROD<br>TAX<br>M$ | DIRECT<br>OPEX<br>M$ | OPER.<br>CASHFLOW<br>M$ | NET<br>CAPEX<br>M$ | FREE<br>CASHFLOW<br>M$ | CUM. FREE<br>CASHFLOW<br>M$ | CUM. DISC.<br>FCF.<br>M$ |
| 12-2025 | 1178 | 1271.1 | 1.1 | 5.5 | 267.7 | 903.8 | 0 | 903.8 | 903.8 | 865.2 |
| 12-2026 | 798.2 | 1271.9 | 0.7 | 3 | 181.3 | 613.1 | 0 | 613.1 | 1516.9 | 1398.2 |
| 12-2027 | 604.9 | 1271 | 0.5 | 2.3 | 137.4 | 464.6 | 0 | 464.6 | 1981.5 | 1765.1 |
| 12-2028 | 487.1 | 1270.8 | 0.4 | 1.9 | 110.7 | 374.2 | 0 | 374.2 | 2355.7 | 2033.7 |
| 12-2029 | 406.9 | 1270 | 0.4 | 1.5 | 92.4 | 312.6 | 0 | 312.6 | 2668.3 | 2237.6 |
| 12-2030 | 348.6 | 1270 | 0.3 | 1.3 | 79.2 | 267.7 | 0 | 267.7 | 2936 | 2396.3 |
| 12-2031 | 304.2 | 1270 | 0.3 | 1.2 | 69.1 | 233.6 | 0 | 233.6 | 3169.6 | 2522.2 |
| 12-2032 | 269.3 | 1269.7 | 0.2 | 1 | 61.2 | 206.8 | 0 | 206.8 | 3376.5 | 2623.6 |
| 12-2033 | 241.1 | 1269 | 0.2 | 0.9 | 54.8 | 185.2 | 0 | 185.2 | 3561.7 | 2706 |
| 12-2034 | 217.9 | 1269 | 0.2 | 0.1 | 49.5 | 168.2 | 0 | 168.2 | 3729.8 | 2774.1 |
| 12-2035 | 198.5 | 1269 | 0.2 | 0 | 45.1 | 153.2 | 0 | 153.2 | 3883.1 | 2830.5 |
| 12-2036 | 182 | 1269 | 0.2 | 0 | 41.3 | 140.5 | 0 | 140.5 | 4023.5 | 2877.5 |
| 12-2037 | 167.6 | 1268.8 | 0.2 | 0 | 38.1 | 129.4 | 0 | 129.4 | 4152.9 | 2916.9 |
| 12-2038 | 155.1 | 1268 | 0.1 | 0 | 35.2 | 119.7 | 0 | 119.7 | 4272.7 | 2950 |
| 12-2039 | 143.9 | 1268 | 0.1 | 0 | 32.7 | 111 | 0 | 111 | 4383.7 | 2977.9 |
| 12-2040 | 133.7 | 1268 | 0.1 | 0 | 30.4 | 103.2 | 0 | 103.2 | 4486.9 | 3001.4 |
| 12-2041 | 124.3 | 1268 | 0.1 | 0 | 28.2 | 96 | 0 | 96 | 4582.9 | 3021.4 |
| 12-2042 | 115.7 | 1268 | 0.1 | 0 | 26.3 | 89.3 | 0 | 89.3 | 4672.2 | 3038.2 |
| 12-2043 | 107.7 | 1267.8 | 0.1 | 0 | 24.5 | 83.2 | 0 | 83.2 | 4755.3 | 3052.5 |
| 12-2044 | 100.3 | 1266.7 | 0.1 | 0 | 22.8 | 77.4 | 0 | 77.4 | 4832.8 | 3064.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 6285 | 1269.2 | 5.6 | 18.7 | 1427.9 | 4832.8 | 0 | 4832.8 | 4832.8 | 3064.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 1201.4 | 1261.7 | 1.1 | 0 | 273 | 927.4 | 0 | 927.4 | 5760.2 | 3130.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 7486.5 | 1264.7 | 6.7 | 18.8 | 1700.8 | 5760.2 | 0 | 5760.2 | 5760.2 | 3130.9 |

---

---

| | | |
|:---|:---|:---|
|  | OIL | GAS |
|  GROSS WELLS | 10.0 | 1289.0 |
|  GROSS ULT., MB & MMF | 1102.407 | 15833001.984 |
|  GROSS CUM., MB & MMF | 1013.250 | 9483984.896 |
|  GROSS RES., MB & MMF | 89.157 | 6349017.088 |
|  NET RES., MB & MMF | 0.041 | 3779.619 |
|  NET REVENUE, M$ | 2.827 | 7483.647 |
|  INITIAL PRICE, $ | 68.480 | 1.980 |
|  INITIAL N.I., PCT. | 0.020 | 0.021 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | P.W. % | P.W., M$ |
|  LIFE, YRS. | 50.00 | 8.00 | 3403.113 |
|  DISCOUNT % | 10.00 | 9.00 | 3259.404 |
|  UNDISCOUNTED PAYOUT, YRS. | 0.00 | 10.00 | 3130.914 |
|  DISCOUNTED PAYOUT, YRS. | 0.00 | 12.00 | 2910.464 |
|  UNDISCOUNTED NET/INVEST. | 0.00 | 15.00 | 2647.319 |
|  DISCOUNTED NET/INVEST. | 0.00 | 20.00 | 2325.036 |
|  RATE-OF-RETURN, PCT. | 100.00 | 25.00 | 2091.941 |
|  INITIAL W.I., PCT. | 0.000 | 30.00 | 1913.955 |
|  |  | 50.00 | 1479.382 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| YE24_RSV_CAT = 3PDNP | DATE | : | 02/04/2025 |
| BASIN = HAYNESVILLE | TIME | : | 11:09:17 |
|  | DBS | : | WHK |
|  | SETTINGS | : | SE |
|  | SCENARIO | : | SE_WH_0125 |

---

SCHAPER ENERGY

RESERVES AND ECONOMICS

AS OF DATE: 12/31/2024

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | GROSS OIL<br>PROD<br>MBBLS | GROSS GAS<br>PROD<br>MMCF | GROSS NGL<br>PROD<br>MBBLS | NET OIL<br>PROD<br>MBBLS | NET GAS<br>PROD<br>MMCF | NET NGL<br>PROD<br>MBBLS | NET EQUIV<br>PROD<br>MBOE | NET EQU<br>RATE<br>BOEPD | OIL<br>PRICE<br>$/BBL | GAS<br>PRICE<br>$/MCF | NGL<br>PRICE<br>$/BBL |
| 12-2025 | 0 | 83736.3 | 0 | 0 | 6.7 | 0 | 1.1 | 3.1 | 0.00 | 1.980 | 0.00 |
| 12-2026 | 0 | 41323.1 | 0 | 0 | 3.6 | 0 | 0.6 | 1.6 | 0.00 | 1.980 | 0.00 |
| 12-2027 | 0 | 24895.4 | 0 | 0 | 2.2 | 0 | 0.4 | 1 | 0.00 | 1.980 | 0.00 |
| 12-2028 | 0 | 17743.9 | 0 | 0 | 1.6 | 0 | 0.3 | 0.7 | 0.00 | 1.980 | 0.00 |
| 12-2029 | 0 | 13694.6 | 0 | 0 | 1.2 | 0 | 0.2 | 0.6 | 0.00 | 1.980 | 0.00 |
| 12-2030 | 0 | 11094 | 0 | 0 | 1 | 0 | 0.2 | 0.5 | 0.00 | 1.980 | 0.00 |
| 12-2031 | 0 | 9288.2 | 0 | 0 | 0.8 | 0 | 0.1 | 0.4 | 0.00 | 1.980 | 0.00 |
| 12-2032 | 0 | 7965 | 0 | 0 | 0.7 | 0 | 0.1 | 0.3 | 0.00 | 1.980 | 0.00 |
| 12-2033 | 0 | 6956 | 0 | 0 | 0.6 | 0 | 0.1 | 0.3 | 0.00 | 1.980 | 0.00 |
| 12-2034 | 0 | 6162.7 | 0 | 0 | 0.6 | 0 | 0.1 | 0.3 | 0.00 | 1.980 | 0.00 |
| 12-2035 | 0 | 5523.7 | 0 | 0 | 0.5 | 0 | 0.1 | 0.2 | 0.00 | 1.980 | 0.00 |
| 12-2036 | 0 | 4998.6 | 0 | 0 | 0.5 | 0 | 0.1 | 0.2 | 0.00 | 1.980 | 0.00 |
| 12-2037 | 0 | 4560 | 0 | 0 | 0.4 | 0 | 0.1 | 0.2 | 0.00 | 1.980 | 0.00 |
| 12-2038 | 0 | 4188.4 | 0 | 0 | 0.4 | 0 | 0.1 | 0.2 | 0.00 | 1.980 | 0.00 |
| 12-2039 | 0 | 3869.9 | 0 | 0 | 0.4 | 0 | 0.1 | 0.2 | 0.00 | 1.980 | 0.00 |
| 12-2040 | 0 | 3594.1 | 0 | 0 | 0.3 | 0 | 0.1 | 0.2 | 0.00 | 1.980 | 0.00 |
| 12-2041 | 0 | 3351.4 | 0 | 0 | 0.3 | 0 | 0.1 | 0.1 | 0.00 | 1.980 | 0.00 |
| 12-2042 | 0 | 3133.6 | 0 | 0 | 0.3 | 0 | 0 | 0.1 | 0.00 | 1.980 | 0.00 |
| 12-2043 | 0 | 2936.6 | 0 | 0 | 0.3 | 0 | 0 | 0.1 | 0.00 | 1.980 | 0.00 |
| 12-2044 | 0 | 2756.5 | 0 | 0 | 0.3 | 0 | 0 | 0.1 | 0.00 | 1.980 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 0 | 261772 | 0 | 0 | 22.7 | 0 | 3.8 | 0.5 | 0.00 | 1.980 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 0 | 36374.2 | 0 | 0 | 3.3 | 0 | 0.6 | 0.1 | 0.00 | 1.980 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 0 | 298146.1 | 0 | 0 | 26 | 0 | 4.3 | 0.2 | 0.00 | 1.980 | 0.00 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | TOTAL NET<br>REVENUE<br>M$ | WELL<br>CNT | AD VAL<br>TAX<br>M$ | PROD<br>TAX<br>M$ | DIRECT<br>OPEX<br>M$ | OPER.<br>CASHFLOW<br>M$ | NET<br>CAPEX<br>M$ | FREE<br>CASHFLOW<br>M$ | CUM. FREE<br>CASHFLOW<br>M$ | CUM. DISC.<br>FCF.<br>M$ |
| 12-2025 | 13.3 | 20 | 0 | 0.1 | 3 | 10.2 | 0 | 10.2 | 10.2 | 9.8 |
| 12-2026 | 7.1 | 20 | 0 | 0 | 1.6 | 5.5 | 0 | 5.5 | 15.6 | 14.5 |
| 12-2027 | 4.4 | 20 | 0 | 0 | 1 | 3.4 | 0 | 3.4 | 19 | 17.2 |
| 12-2028 | 3.2 | 20 | 0 | 0 | 0.7 | 2.4 | 0 | 2.4 | 21.4 | 18.9 |
| 12-2029 | 2.4 | 20 | 0 | 0 | 0.6 | 1.9 | 0 | 1.9 | 23.3 | 20.1 |
| 12-2030 | 2 | 20 | 0 | 0 | 0.5 | 1.5 | 0 | 1.5 | 24.8 | 21 |
| 12-2031 | 1.7 | 20 | 0 | 0 | 0.4 | 1.3 | 0 | 1.3 | 26.1 | 21.7 |
| 12-2032 | 1.4 | 20 | 0 | 0 | 0.3 | 1.1 | 0 | 1.1 | 27.2 | 22.3 |
| 12-2033 | 1.3 | 20 | 0 | 0 | 0.3 | 1 | 0 | 1 | 28.2 | 22.7 |
| 12-2034 | 1.1 | 20 | 0 | 0 | 0.3 | 0.9 | 0 | 0.9 | 29 | 23.1 |
| 12-2035 | 1 | 20 | 0 | 0 | 0.2 | 0.8 | 0 | 0.8 | 29.8 | 23.3 |
| 12-2036 | 0.9 | 20 | 0 | 0 | 0.2 | 0.7 | 0 | 0.7 | 30.5 | 23.6 |
| 12-2037 | 0.8 | 20 | 0 | 0 | 0.2 | 0.6 | 0 | 0.6 | 31.1 | 23.8 |
| 12-2038 | 0.8 | 20 | 0 | 0 | 0.2 | 0.6 | 0 | 0.6 | 31.7 | 23.9 |
| 12-2039 | 0.7 | 20 | 0 | 0 | 0.2 | 0.5 | 0 | 0.5 | 32.3 | 24.1 |
| 12-2040 | 0.7 | 20 | 0 | 0 | 0.1 | 0.5 | 0 | 0.5 | 32.8 | 24.2 |
| 12-2041 | 0.6 | 20 | 0 | 0 | 0.1 | 0.5 | 0 | 0.5 | 33.2 | 24.3 |
| 12-2042 | 0.6 | 20 | 0 | 0 | 0.1 | 0.4 | 0 | 0.4 | 33.7 | 24.4 |
| 12-2043 | 0.5 | 20 | 0 | 0 | 0.1 | 0.4 | 0 | 0.4 | 34.1 | 24.4 |
| 12-2044 | 0.5 | 20 | 0 | 0 | 0.1 | 0.4 | 0 | 0.4 | 34.5 | 24.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 44.9 | 20 | 0 | 0.1 | 10.2 | 34.5 | 0 | 34.5 | 34.5 | 24.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 6.6 | 20 | 0 | 0 | 1.5 | 5.1 | 0 | 5.1 | 39.6 | 24.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 51.5 | 20 | 0 | 0.1 | 11.7 | 39.6 | 0 | 39.6 | 39.6 | 24.8 |

---

---

| | | |
|:---|:---|:---|
|  | OIL | GAS |
|  GROSS WELLS | 0.0 | 20.0 |
|  GROSS ULT., MB & MMF | 0.000 | 305392.832 |
|  GROSS CUM., MB & MMF | 0.000 | 7246.677 |
|  GROSS RES., MB & MMF | 0.000 | 298146.144 |
|  NET RES., MB & MMF | 0.000 | 25.996 |
|  NET REVENUE, M$ | 0.000 | 51.472 |
|  INITIAL PRICE, $ | 0.000 | 1.980 |
|  INITIAL N.I., PCT. | 0.000 | 0.007 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | P.W.% | P.W., M$ |
|  LIFE, YRS. | 50.00 | 8.00 | 26.418 |
|  DISCOUNT % | 10.00 | 9.00 | 25.588 |
|  UNDISCOUNTED PAYOUT, YRS. | 0.00 | 10.00 | 24.840 |
|  DISCOUNTED PAYOUT, YRS. | 0.00 | 12.00 | 23.539 |
|  UNDISCOUNTED NET/INVEST. | 0.00 | 15.00 | 21.951 |
|  DISCOUNTED NET/INVEST. | 0.00 | 20.00 | 19.941 |
|  RATE-OF-RETURN, PCT. | 100.00 | 25.00 | 18.428 |
|  INITIAL W.I., PCT. | 0.000 | 30.00 | 17.232 |
|  |  | 50.00 | 14.127 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| YE24_RSV_CAT = 4PUD | DATE | : | 02/04/2025 |
| BASIN = HAYNESVILLE | TIME | : | 11:09:47 |
|  | DBS | : | WHK |
|  | SETTINGS | : | SE |
|  | SCENARIO | : | SE_WH_0125 |

---

SCHAPER ENERGY

RESERVES AND ECONOMICS

AS OF DATE: 12/31/2024

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | GROSS OIL<br>PROD<br>MBBLS | GROSS GAS<br>PROD<br>MMCF | GROSS NGL<br>PROD<br>MBBLS | NET OIL<br>PROD<br>MBBLS | NET GAS<br>PROD<br>MMCF | NET NGL<br>PROD<br>MBBLS | NET EQUIV<br>PROD<br>MBOE | NET EQU<br>RATE<br>BOEPD | OIL<br>PRICE<br>$/BBL | GAS<br>PRICE<br>$/MCF | NGL<br>PRICE<br>$/BBL |
| 12-2025 | 0.0 | 432470.7 | 0.0 | 0.0 | 232.9 | 0.0 | 38.8 | 106.3 | 0.00 | 1.980 | 0.00 |
| 12-2026 | 0.0 | 1102800.9 | 0.0 | 0.0 | 468.1 | 0.0 | 78.0 | 213.7 | 0.00 | 1.980 | 0.00 |
| 12-2027 | 0.0 | 1038494.0 | 0.0 | 0.0 | 566.7 | 0.0 | 94.5 | 258.8 | 0.00 | 1.980 | 0.00 |
| 12-2028 | 0.0 | 525014.5 | 0.0 | 0.0 | 279.4 | 0.0 | 46.6 | 127.6 | 0.00 | 1.980 | 0.00 |
| 12-2029 | 0.0 | 334433.1 | 0.0 | 0.0 | 169.2 | 0.0 | 28.2 | 77.3 | 0.00 | 1.980 | 0.00 |
| 12-2030 | 0.0 | 244761.4 | 0.0 | 0.0 | 120.3 | 0.0 | 20.1 | 54.9 | 0.00 | 1.980 | 0.00 |
| 12-2031 | 0.0 | 191698.4 | 0.0 | 0.0 | 92.1 | 0.0 | 15.4 | 42.1 | 0.00 | 1.980 | 0.00 |
| 12-2032 | 0.0 | 156621.7 | 0.0 | 0.0 | 73.9 | 0.0 | 12.3 | 33.7 | 0.00 | 1.980 | 0.00 |
| 12-2033 | 0.0 | 131775.3 | 0.0 | 0.0 | 61.2 | 0.0 | 10.2 | 27.9 | 0.00 | 1.980 | 0.00 |
| 12-2034 | 0.0 | 113305.6 | 0.0 | 0.0 | 51.8 | 0.0 | 8.6 | 23.7 | 0.00 | 1.980 | 0.00 |
| 12-2035 | 0.0 | 99074.1 | 0.0 | 0.0 | 44.8 | 0.0 | 7.5 | 20.4 | 0.00 | 1.980 | 0.00 |
| 12-2036 | 0.0 | 87797.8 | 0.0 | 0.0 | 39.2 | 0.0 | 6.5 | 17.9 | 0.00 | 1.980 | 0.00 |
| 12-2037 | 0.0 | 78660.8 | 0.0 | 0.0 | 34.8 | 0.0 | 5.8 | 15.9 | 0.00 | 1.980 | 0.00 |
| 12-2038 | 0.0 | 71119.8 | 0.0 | 0.0 | 31.1 | 0.0 | 5.2 | 14.2 | 0.00 | 1.980 | 0.00 |
| 12-2039 | 0.0 | 64799.6 | 0.0 | 0.0 | 28.1 | 0.0 | 4.7 | 12.8 | 0.00 | 1.980 | 0.00 |
| 12-2040 | 0.0 | 59432.8 | 0.0 | 0.0 | 25.6 | 0.0 | 4.3 | 11.7 | 0.00 | 1.980 | 0.00 |
| 12-2041 | 0.0 | 54823.0 | 0.0 | 0.0 | 23.4 | 0.0 | 3.9 | 10.7 | 0.00 | 1.980 | 0.00 |
| 12-2042 | 0.0 | 50815.1 | 0.0 | 0.0 | 21.6 | 0.0 | 3.6 | 9.8 | 0.00 | 1.980 | 0.00 |
| 12-2043 | 0.0 | 47289.2 | 0.0 | 0.0 | 19.9 | 0.0 | 3.3 | 9.1 | 0.00 | 1.980 | 0.00 |
| 12-2044 | 0.0 | 44158.4 | 0.0 | 0.0 | 18.5 | 0.0 | 3.1 | 8.5 | 0.00 | 1.980 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 0.0 | 4929346.6 | 0.0 | 0.0 | 2402.6 | 0.0 | 400.4 | 54.9 | 0.00 | 1.980 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 0.0 | 579414.0 | 0.0 | 0.0 | 239.4 | 0.0 | 39.9 | 3.6 | 0.00 | 1.980 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 0.0 | 5508760.6 | 0.0 | 0.0 | 2642.0 | 0.0 | 440.3 | 24.1 | 0.00 | 1.980 | 0.00 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | TOTAL NET<br>REVENUE<br>M$ | WELL<br>CNT | AD VAL<br>TAX<br>M$ | PROD<br>TAX<br>M$ | DIRECT<br>OPEX<br>M$ | OPER.<br>CASHFLOW<br>M$ | NET<br>CAPEX<br>M$ | FREE<br>CASHFLOW<br>M$ | CUM. FREE<br>CASHFLOW<br>M$ | CUM. DISC.<br>FCF.<br>M$ |
| 12-2025 | 461.2 | 49.2 | 0.4 | 1.8 | 104.7 | 354.3 | 0 | 354.3 | 354.3 | 333.9 |
| 12-2026 | 926.8 | 173.6 | 0.8 | 3.5 | 208 | 714.4 | 0 | 714.4 | 1068.7 | 948.5 |
| 12-2027 | 1122.1 | 250 | 1 | 4.3 | 253.8 | 863.1 | 0 | 863.1 | 1931.7 | 1632.3 |
| 12-2028 | 553.2 | 250 | 0.5 | 2.1 | 124.9 | 425.7 | 0 | 425.7 | 2357.4 | 1938.9 |
| 12-2029 | 335 | 250 | 0.3 | 1.3 | 75.6 | 257.9 | 0 | 257.9 | 2615.3 | 2107.4 |
| 12-2030 | 238.2 | 250 | 0.2 | 0.9 | 53.7 | 183.4 | 0 | 183.4 | 2798.7 | 2216.3 |
| 12-2031 | 182.4 | 250 | 0.2 | 0.7 | 41.1 | 140.5 | 0 | 140.5 | 2939.1 | 2292 |
| 12-2032 | 146.3 | 250 | 0.1 | 0.6 | 32.9 | 112.6 | 0 | 112.6 | 3051.8 | 2347.2 |
| 12-2033 | 121.1 | 250 | 0.1 | 0.5 | 27.3 | 93.3 | 0 | 93.3 | 3145 | 2388.8 |
| 12-2034 | 102.6 | 250 | 0.1 | 0.4 | 23.1 | 79.1 | 0 | 79.1 | 3224.1 | 2420.8 |
| 12-2035 | 88.6 | 250 | 0.1 | 0.3 | 19.9 | 68.3 | 0 | 68.3 | 3292.4 | 2446 |
| 12-2036 | 77.6 | 250 | 0.1 | 0.1 | 17.5 | 60 | 0 | 60 | 3352.4 | 2466 |
| 12-2037 | 68.8 | 250 | 0.1 | 0 | 15.5 | 53.3 | 0 | 53.3 | 3405.7 | 2482.2 |
| 12-2038 | 61.7 | 250 | 0.1 | 0 | 13.9 | 47.7 | 0 | 47.7 | 3453.4 | 2495.4 |
| 12-2039 | 55.7 | 250 | 0.1 | 0 | 12.5 | 43.1 | 0 | 43.1 | 3496.5 | 2506.3 |
| 12-2040 | 50.7 | 250 | 0 | 0 | 11.4 | 39.2 | 0 | 39.2 | 3535.7 | 2515.2 |
| 12-2041 | 46.4 | 250 | 0 | 0 | 10.4 | 35.9 | 0 | 35.9 | 3571.6 | 2522.7 |
| 12-2042 | 42.7 | 250 | 0 | 0 | 9.6 | 33.1 | 0 | 33.1 | 3604.7 | 2528.9 |
| 12-2043 | 39.5 | 250 | 0 | 0 | 8.9 | 30.6 | 0 | 30.6 | 3635.2 | 2534.2 |
| 12-2044 | 36.7 | 250 | 0 | 0 | 8.2 | 28.4 | 0 | 28.4 | 3663.6 | 2538.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 4757.2 | 236.1 | 4.3 | 16.3 | 1073 | 3663.6 | 0 | 3663.6 | 3663.6 | 2538.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 474 | 250 | 0.4 | 0 | 106.6 | 367 | 0 | 367 | 4030.6 | 2563.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 5231.1 | 244.5 | 4.7 | 16.3 | 1179.5 | 4030.6 | 0 | 4030.6 | 4030.6 | 2563.9 |

---

---

| | | |
|:---|:---|:---|
|  | OIL | GAS |
|  GROSS WELLS | 0.0 | 250.0 |
|  GROSS ULT., MB & MMF | 0.000 | 5508761.600 |
|  GROSS CUM., MB & MMF | 0.000 | 0.000 |
|  GROSS RES., MB & MMF | 0.000 | 5508761.600 |
|  NET RES., MB & MMF | 0.000 | 2641.986 |
|  NET REVENUE, M$ | 0.000 | 5231.134 |
|  INITIAL PRICE, $ | 0.000 | 1.980 |
|  INITIAL N.I., PCT. | 0.000 | 0.054 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | P.W.% | P.W., M$ |
|  LIFE, YRS. | 50.00 | 8.00 | 2742.553 |
|  DISCOUNT % | 10.00 | 9.00 | 2649.498 |
|  UNDISCOUNTED PAYOUT, YRS. | 0.00 | 10.00 | 2563.890 |
|  DISCOUNTED PAYOUT, YRS. | 0.00 | 12.00 | 2411.103 |
|  UNDISCOUNTED NET/INVEST. | 0.00 | 15.00 | 2217.602 |
|  DISCOUNTED NET/INVEST. | 0.00 | 20.00 | 1961.360 |
|  RATE-OF-RETURN, PCT. | 100.00 | 25.00 | 1760.957 |
|  INITIAL W.I., PCT. | 0.000 | 30.00 | 1598.663 |
|  |  | 50.00 | 1168.266 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| BASIN = HAYNESVILLE | DATE | : | 02/04/2025 |
|  | TIME | : | 11:09:47 |
|  | DBS | : | WHK |
|  | SETTINGS | : | SE |
|  | SCENARIO | : | SE_WH_0125 |

---

SCHAPER ENERGY

RESERVES AND ECONOMICS

AS OF DATE: 12/31/2024

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | GROSS OIL<br>PROD<br>MBBLS | GROSS GAS<br>PROD<br>MMCF | GROSS NGL<br>PROD<br>MBBLS | NET OIL<br>PROD<br>MBBLS | NET GAS<br>PROD<br>MMCF | NET NGL<br>PROD<br>MBBLS | NET EQUIV<br>PROD<br>MBOE | NET EQU<br>RATE<br>BOEPD | OIL<br>PRICE<br>$/BBL | GAS<br>PRICE<br>$/MCF | NGL<br>PRICE<br>$/BBL |
| 12-2025 | 8.4 | 1514799.9 | 0.0 | 0.0 | 834.4 | 0.0 | 139.1 | 381.0 | 68.48 | 1.980 | 0.00 |
| 12-2026 | 7.3 | 1827882.5 | 0.0 | 0.0 | 874.7 | 0.0 | 145.8 | 399.4 | 68.48 | 1.980 | 0.00 |
| 12-2027 | 6.4 | 1578641.4 | 0.0 | 0.0 | 874.3 | 0.0 | 145.7 | 399.2 | 68.48 | 1.980 | 0.00 |
| 12-2028 | 5.7 | 956486.1 | 0.0 | 0.0 | 526.9 | 0.0 | 87.8 | 240.6 | 68.48 | 1.980 | 0.00 |
| 12-2029 | 5.1 | 692971.5 | 0.0 | 0.0 | 375.9 | 0.0 | 62.6 | 171.6 | 68.48 | 1.980 | 0.00 |
| 12-2030 | 4.6 | 550672.9 | 0.0 | 0.0 | 297.3 | 0.0 | 49.5 | 135.7 | 68.48 | 1.980 | 0.00 |
| 12-2031 | 4.2 | 457807.6 | 0.0 | 0.0 | 246.5 | 0.0 | 41.1 | 112.6 | 68.48 | 1.980 | 0.00 |
| 12-2032 | 3.8 | 391583.3 | 0.0 | 0.0 | 210.5 | 0.0 | 35.1 | 96.1 | 68.48 | 1.980 | 0.00 |
| 12-2033 | 3.5 | 341713.2 | 0.0 | 0.0 | 183.5 | 0.0 | 30.6 | 83.8 | 68.48 | 1.980 | 0.00 |
| 12-2034 | 3.2 | 302702.4 | 0.0 | 0.0 | 162.4 | 0.0 | 27.1 | 74.2 | 68.48 | 1.980 | 0.00 |
| 12-2035 | 3.0 | 271297.4 | 0.0 | 0.0 | 145.5 | 0.0 | 24.2 | 66.4 | 68.48 | 1.980 | 0.00 |
| 12-2036 | 2.8 | 245430.7 | 0.0 | 0.0 | 131.5 | 0.0 | 21.9 | 60.1 | 68.48 | 1.980 | 0.00 |
| 12-2037 | 2.5 | 223725.8 | 0.0 | 0.0 | 119.8 | 0.0 | 20.0 | 54.7 | 68.48 | 1.980 | 0.00 |
| 12-2038 | 2.4 | 205218.5 | 0.0 | 0.0 | 109.8 | 0.0 | 18.3 | 50.1 | 68.48 | 1.980 | 0.00 |
| 12-2039 | 2.2 | 189188.0 | 0.0 | 0.0 | 101.1 | 0.0 | 16.9 | 46.2 | 68.48 | 1.980 | 0.00 |
| 12-2040 | 2.0 | 175090.0 | 0.0 | 0.0 | 93.4 | 0.0 | 15.6 | 42.6 | 68.48 | 1.980 | 0.00 |
| 12-2041 | 1.9 | 162513.9 | 0.0 | 0.0 | 86.5 | 0.0 | 14.4 | 39.5 | 68.48 | 1.980 | 0.00 |
| 12-2042 | 1.7 | 151171.5 | 0.0 | 0.0 | 80.3 | 0.0 | 13.4 | 36.6 | 68.48 | 1.980 | 0.00 |
| 12-2043 | 1.6 | 140859.7 | 0.0 | 0.0 | 74.6 | 0.0 | 12.4 | 34.1 | 68.48 | 1.980 | 0.00 |
| 12-2044 | 1.5 | 131430.7 | 0.0 | 0.0 | 69.4 | 0.0 | 11.6 | 31.7 | 68.48 | 1.980 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 73.6 | 10511184.9 | 0.0 | 0.0 | 5598.3 | 0.0 | 933.1 | 127.8 | 68.48 | 1.980 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 15.6 | 1644735.7 | 0.0 | 0.0 | 849.3 | 0.0 | 141.6 | 12.9 | 68.48 | 1.980 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 89.2 | 12155920.4 | 0.0 | 0.0 | 6447.6 | 0.0 | 1074.6 | 58.9 | 68.48 | 1.980 | 0.00 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | TOTAL NET<br>REVENUE<br>M$ | WELL<br>CNT | AD VAL<br>TAX<br>M$ | PROD<br>TAX<br>M$ | DIRECT<br>OPEX<br>M$ | OPER.<br>CASHFLOW<br>M$ | NET<br>CAPEX<br>M$ | FREE<br>CASHFLOW<br>M$ | CUM. FREE<br>CASHFLOW<br>M$ | CUM. DISC.<br>FCF.<br>M$ |
| 12-2025 | 1652.4 | 1340.2 | 1.5 | 7.3 | 375.4 | 1268.2 | 0.0 | 1268.2 | 1268.2 | 1208.8 |
| 12-2026 | 1732.1 | 1465.5 | 1.6 | 6.6 | 391.0 | 1333.0 | 0.0 | 1333.0 | 2601.2 | 2361.2 |
| 12-2027 | 1731.4 | 1541.0 | 1.6 | 6.6 | 392.2 | 1331.0 | 0.0 | 1331.0 | 3932.3 | 3414.6 |
| 12-2028 | 1043.5 | 1540.8 | 0.9 | 4.0 | 236.3 | 802.3 | 0.0 | 802.3 | 4734.5 | 3991.5 |
| 12-2029 | 744.4 | 1540.0 | 0.7 | 2.8 | 168.6 | 572.3 | 0.0 | 572.3 | 5306.8 | 4365.1 |
| 12-2030 | 588.8 | 1540.0 | 0.5 | 2.2 | 133.3 | 452.7 | 0.0 | 452.7 | 5759.5 | 4633.6 |
| 12-2031 | 488.3 | 1540.0 | 0.4 | 1.9 | 110.6 | 375.4 | 0.0 | 375.4 | 6134.9 | 4836.0 |
| 12-2032 | 417.0 | 1539.7 | 0.4 | 1.6 | 94.4 | 320.6 | 0.0 | 320.6 | 6455.5 | 4993.1 |
| 12-2033 | 363.5 | 1539.0 | 0.3 | 1.4 | 82.3 | 279.4 | 0.0 | 279.4 | 6734.9 | 5117.5 |
| 12-2034 | 321.7 | 1539.0 | 0.3 | 0.5 | 72.9 | 248.1 | 0.0 | 248.1 | 6983.0 | 5218.0 |
| 12-2035 | 288.1 | 1539.0 | 0.3 | 0.3 | 65.3 | 222.3 | 0.0 | 222.3 | 7205.3 | 5299.8 |
| 12-2036 | 260.5 | 1539.0 | 0.2 | 0.1 | 59.0 | 201.1 | 0.0 | 201.1 | 7406.4 | 5367.1 |
| 12-2037 | 237.3 | 1538.8 | 0.2 | 0.0 | 53.8 | 183.3 | 0.0 | 183.3 | 7589.8 | 5422.9 |
| 12-2038 | 217.5 | 1538.0 | 0.2 | 0.0 | 49.3 | 168.0 | 0.0 | 168.0 | 7757.8 | 5469.3 |
| 12-2039 | 200.2 | 1538.0 | 0.2 | 0.0 | 45.4 | 154.7 | 0.0 | 154.7 | 7912.5 | 5508.2 |
| 12-2040 | 185.0 | 1538.0 | 0.2 | 0.0 | 41.9 | 142.9 | 0.0 | 142.9 | 8055.4 | 5540.9 |
| 12-2041 | 171.3 | 1538.0 | 0.2 | 0.0 | 38.8 | 132.3 | 0.0 | 132.3 | 8187.7 | 5568.3 |
| 12-2042 | 159.0 | 1538.0 | 0.1 | 0.0 | 36.0 | 122.8 | 0.0 | 122.8 | 8310.5 | 5591.5 |
| 12-2043 | 147.7 | 1537.8 | 0.1 | 0.0 | 33.5 | 114.1 | 0.0 | 114.1 | 8424.7 | 5611.1 |
| 12-2044 | 137.5 | 1536.7 | 0.1 | 0.0 | 31.1 | 106.2 | 0.0 | 106.2 | 8530.9 | 5627.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 11087.1 | 1525.3 | 9.9 | 35.2 | 2511.0 | 8530.9 | 0.0 | 8530.9 | 8530.9 | 5627.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 1682.0 | 1531.7 | 1.5 | 0.0 | 381.0 | 1299.5 | 0.0 | 1299.5 | 9830.4 | 5719.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 12769.1 | 1529.1 | 11.5 | 35.2 | 2892.0 | 9830.4 | 0.0 | 9830.4 | 9830.4 | 5719.6 |

---

---

| | | |
|:---|:---|:---|
|  | OIL | GAS |
|  GROSS WELLS | 10.0 | 1559.0 |
|  GROSS ULT., MB & MMF | 1102.407 | 21647153.152 |
|  GROSS CUM., MB & MMF | 1013.250 | 9491230.720 |
|  GROSS RES., MB & MMF | 89.157 | 12155922.432 |
|  NET RES., MB & MMF | 0.041 | 6447.601 |
|  NET REVENUE, M$ | 2.827 | 12766.257 |
|  INITIAL PRICE, $ | 68.480 | 1.980 |
|  INITIAL N.I., PCT. | 0.020 | 0.021 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | P.W.% | P.W., M$ |
|  LIFE, YRS. | 50.00 | 8.00 | 6172.084 |
|  DISCOUNT % | 10.00 | 9.00 | 5934.491 |
|  UNDISCOUNTED PAYOUT, YRS. | 0.00 | 10.00 | 5719.644 |
|  DISCOUNTED PAYOUT, YRS. | 0.00 | 12.00 | 5345.106 |
|  UNDISCOUNTED NET/INVEST. | 0.00 | 15.00 | 4886.872 |
|  DISCOUNTED NET/INVEST. | 0.00 | 20.00 | 4306.336 |
|  RATE-OF-RETURN, PCT. | 100.00 | 25.00 | 3871.326 |
|  INITIAL W.I., PCT. | 0.000 | 30.00 | 3529.850 |
|  |  | 50.00 | 2661.775 |

---

------

---

| | | |
|:---|:---|:---|
| Grand Total | DATE | 02/04/2025 |
|  | TIME | 11:09:47 |
|  | DBS | WHK |
|  | SETTINGS | SE |
|  | SCENARIO | SE_WH_0125 |

---

SCHAPER ENERGY

RESERVES AND ECONOMICS

AS OF DATE: 12/31/2024

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | GROSS OIL<br>PROD<br>MBBLS | GROSS GAS<br>PROD<br>MMCF | GROSS NGL<br>PROD<br>MBBLS | NET OIL<br>PROD<br>MBBLS | NET GAS<br>PROD<br>MMCF | NET NGL<br>PROD<br>MBBLS | NET EQUIV<br>PROD<br>MBOE | NET EQU<br>RATE<br>BOEPD | OIL<br>PRICE<br>$/BBL | GAS<br>PRICE<br>$/MCF | NGL<br>PRICE<br>$/BBL |
| 12-2025 | 3870.1 | 4315080.7 | 33005.5 | 6.8 | 8154 | 72.1 | 1437.9 | 3939.4 | 66.17 | 1.746 | 25.95 |
| 12-2026 | 3109.8 | 4374410.2 | 33522.9 | 5.8 | 7530.5 | 72.1 | 1333 | 3651.9 | 65.35 | 1.822 | 28.04 |
| 12-2027 | 1866 | 3609588.5 | 26453.1 | 3.3 | 6326 | 59.2 | 1116.9 | 3060 | 65.07 | 1.853 | 27.14 |
| 12-2028 | 1377 | 2628827.9 | 22125.7 | 2.4 | 5057.9 | 51.1 | 896.6 | 2456.3 | 64.97 | 1.816 | 26.62 |
| 12-2029 | 1103.8 | 2134790.4 | 19264.2 | 2 | 4319.7 | 45.5 | 767.4 | 2102.4 | 64.92 | 1.794 | 26.39 |
| 12-2030 | 925.3 | 1825863.6 | 17171.6 | 1.6 | 3814.3 | 41.2 | 678.5 | 1858.9 | 64.93 | 1.787 | 26.19 |
| 12-2031 | 797.9 | 1604495.6 | 15542.8 | 1.4 | 3431.1 | 37.7 | 611 | 1673.8 | 64.96 | 1.782 | 26.07 |
| 12-2032 | 701.6 | 1434310.1 | 14214.7 | 1.3 | 3119.7 | 34.8 | 556 | 1523.2 | 64.99 | 1.779 | 25.98 |
| 12-2033 | 625.6 | 1297048.4 | 13090.6 | 1.1 | 2853.7 | 32.2 | 509 | 1394.4 | 65.01 | 1.778 | 25.92 |
| 12-2034 | 563.8 | 1183783.2 | 12113.6 | 1 | 2634 | 29.9 | 470 | 1287.6 | 65.02 | 1.776 | 25.88 |
| 12-2035 | 512 | 1087154.4 | 11248.7 | 0.9 | 2440.9 | 27.9 | 435.6 | 1193.5 | 65.03 | 1.775 | 25.87 |
| 12-2036 | 467.8 | 1003139.3 | 10474.1 | 0.9 | 2268.5 | 26 | 405 | 1109.5 | 65.04 | 1.774 | 25.87 |
| 12-2037 | 429.5 | 929158.8 | 9773.5 | 0.8 | 2112.7 | 24.3 | 377.2 | 1033.4 | 65.05 | 1.774 | 25.88 |
| 12-2038 | 395.9 | 863029.1 | 9131.7 | 0.7 | 1970.2 | 22.7 | 351.8 | 963.9 | 65.06 | 1.774 | 25.89 |
| 12-2039 | 366 | 803180 | 8538.6 | 0.7 | 1838.9 | 21.2 | 328.4 | 899.7 | 65.06 | 1.774 | 25.91 |
| 12-2040 | 339.1 | 748406 | 7989.2 | 0.6 | 1716.7 | 19.9 | 306.6 | 840 | 65.06 | 1.774 | 25.92 |
| 12-2041 | 315 | 698021.5 | 7478.4 | 0.6 | 1603 | 18.6 | 286.3 | 784.4 | 65.06 | 1.774 | 25.94 |
| 12-2042 | 293 | 651489.2 | 7001.5 | 0.5 | 1497.6 | 17.4 | 267.5 | 732.9 | 65.05 | 1.775 | 25.95 |
| 12-2043 | 272.9 | 608496.1 | 6555.4 | 0.5 | 1399.6 | 16.3 | 250 | 685 | 65.05 | 1.775 | 25.97 |
| 12-2044 | 254.5 | 568499.3 | 6137.9 | 0.5 | 1307.6 | 15.2 | 233.6 | 640 | 65.04 | 1.775 | 25.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 18586.6 | 32368773.1 | 290833.5 | 33.5 | 65396.7 | 685.2 | 11618.2 | 1591.5 | 65.30 | 1.790 | 26.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 3020.4 | 7124805.6 | 79183.7 | 5.7 | 16322.8 | 191.2 | 2917.4 | 135.5 | 65.01 | 1.780 | 26.17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 21607 | 39493578.8 | 370017.2 | 39.2 | 81719.5 | 876.4 | 14535.6 | 504.1 | 65.26 | 1.788 | 26.32 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| —END—<br> MO-YEAR | TOTAL NET<br>REVENUE<br>M$ | WELL<br>CNT | AD VAL<br>TAX<br>M$ | PROD<br>TAX<br>M$ | DIRECT<br>OPEX<br>M$ | OPER.<br>CASHFLOW<br>M$ | NET<br>CAPEX<br>M$ | FREE<br>CASHFLOW<br>M$ | CUM. FREE<br>CASHFLOW<br>M$ | CUM. DISC.<br>FCF.<br>M$ |
| 12-2025 | 16555.9 | 3507 | 1.5 | 19.4 | 2268.1 | 14266.9 | 0 | 14266.9 | 14266.9 | 13605.5 |
| 12-2026 | 16116.4 | 3724.2 | 1.6 | 16.4 | 2050.3 | 14048 | 0 | 14048 | 28315 | 25784.2 |
| 12-2027 | 13547.5 | 3815 | 1.6 | 13.2 | 1743.1 | 11789.7 | 0 | 11789.7 | 40104.7 | 35099.5 |
| 12-2028 | 10705.2 | 3814.8 | 0.9 | 8.9 | 1391.1 | 9304.2 | 0 | 9304.2 | 49408.9 | 41777.7 |
| 12-2029 | 9077.3 | 3814 | 0.7 | 6.9 | 1189.5 | 7880.2 | 0 | 7880.2 | 57289 | 46917.5 |
| 12-2030 | 8000.3 | 3814 | 0.5 | 5.6 | 1053.4 | 6940.7 | 0 | 6940.7 | 64229.7 | 51031.9 |
| 12-2031 | 7189.9 | 3814 | 0.4 | 4.8 | 950 | 6234.7 | 0 | 6234.7 | 70464.4 | 54391.3 |
| 12-2032 | 6535.9 | 3813.7 | 0.4 | 4.1 | 865.8 | 5665.5 | 0 | 5665.5 | 76129.9 | 57166.4 |
| 12-2033 | 5981.5 | 3813 | 0.3 | 3.7 | 793.9 | 5183.6 | 0 | 5183.6 | 81313.6 | 59474.5 |
| 12-2034 | 5519.7 | 3813 | 0.3 | 2.5 | 733.5 | 4783.5 | 0 | 4783.5 | 86097 | 61410.6 |
| 12-2035 | 5114.7 | 3812.4 | 0.3 | 2.1 | 680.1 | 4432.2 | 0 | 4432.2 | 90529.2 | 63041.5 |
| 12-2036 | 4753.7 | 3810.2 | 0.2 | 1.8 | 632.2 | 4119.4 | 0 | 4119.4 | 94648.6 | 64419.4 |
| 12-2037 | 4428.1 | 3809 | 0.2 | 1.6 | 588.7 | 3837.6 | 0 | 3837.6 | 98486.2 | 65586.4 |
| 12-2038 | 4130.6 | 3808 | 0.2 | 1.5 | 548.9 | 3580.1 | 0 | 3580.1 | 102066.3 | 66576 |
| 12-2039 | 3856.5 | 3808 | 0.2 | 1.4 | 512.1 | 3342.9 | 0 | 3342.9 | 105409.2 | 67416.1 |
| 12-2040 | 3601.5 | 3806.2 | 0.2 | 1.3 | 477.9 | 3122.1 | 0 | 3122.1 | 108531.4 | 68129.4 |
| 12-2041 | 3364.1 | 3804.2 | 0.2 | 1.2 | 446.1 | 2916.7 | 0 | 2916.7 | 111448 | 68735.2 |
| 12-2042 | 3144 | 3801.8 | 0.1 | 1.1 | 416.6 | 2726.1 | 0 | 2726.1 | 114174.1 | 69249.9 |
| 12-2043 | 2939.2 | 3800.8 | 0.1 | 1 | 389.2 | 2548.8 | 0 | 2548.8 | 116722.9 | 69687.4 |
| 12-2044 | 2747.3 | 3799 | 0.1 | 1 | 363.5 | 2382.7 | 0 | 2382.7 | 119105.6 | 70059.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S TOT | 137309 | 3790.1 | 9.9 | 99.5 | 18094 | 119105.6 | 0 | 119105.6 | 119105.6 | 70059.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AFTER | 34423.7 | 1930.7 | 1.5 | 13.3 | 4514.1 | 29894.9 | 0 | 29894.9 | 149000.5 | 72152.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 171732.8 | 2401.4 | 11.5 | 112.8 | 22608 | 149000.5 | 0 | 149000.5 | 149000.5 | 72152.9 |

---

---

| | | |
|:---|:---|:---|
|  | OIL | GAS |
|  GROSS WELLS | 158.0 | 3686.0 |
|  GROSS ULT., MB & MMF | 47742.764 | 63177113.600 |
|  GROSS CUM., MB & MMF | 26135.774 | 23683540.992 |
|  GROSS RES., MB & MMF | 21606.990 | 39493574.656 |
|  NET RES., MB & MMF | 39.238 | 81719.496 |
|  NET REVENUE, M$ | 2560.679 | 146107.120 |
|  INITIAL PRICE, $ | 65.893 | 1.890 |
|  INITIAL N.I., PCT. | 0.084 | 0.088 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | P.W.% | P.W., M$ |
|  LIFE, YRS. | 79.00 | 8.00 | 79731.584 |
|  DISCOUNT % | 10.00 | 9.00 | 75715.952 |
|  UNDISCOUNTED PAYOUT, YRS. | 0.00 | 10.00 | 72152.904 |
|  DISCOUNTED PAYOUT, YRS. | 0.00 | 12.00 | 66103.720 |
|  UNDISCOUNTED NET/INVEST. | 0.00 | 15.00 | 58996.312 |
|  DISCOUNTED NET/INVEST. | 0.00 | 20.00 | 50475.520 |
|  RATE-OF-RETURN, PCT. | 100.00 | 25.00 | 44450.448 |
|  INITIAL W.I., PCT. | 0.000 | 30.00 | 39934.040 |
|  |  | 50.00 | 29245.524 |

---

## Exhibit 99.2

**Exhibit 99.2** 

CAWLEY, GILLESPIE & ASSOCIATES, INC.

PETROLEUM CONSULTANTS

---

| | | |
|:---|:---|:---|
| 6500 RIVER PLACE BLVD, BLDG 3 SUITE 200 | 306 WEST SEVENTH STREET, SUITE 302 | 1000 LOUISIANA STREET, SUITE 1900 |
| AUSTIN, TEXAS 78730 | FORT WORTH, TEXAS 76102-4987 | HOUSTON, TEXAS 77002-5008 |
| 512-249-7000 | 817- 336-2461 | 713-651-9944 |
|  | www.cgaus.com |  |

---

January 13, 2025

Ms. Danielle Mezo

Vice President of Engineering

PHX Minerals Inc.

1601 NW Expressway, Suite 1100

Oklahoma City, Oklahoma 73118

---

| | |
|:---|:---|
| Re: | Evaluation Summary |
|  | ***PHX Minerals Inc. Interests*** |
|  | Total Proved Reserves |
|  | Certain Properties in Various States |
|  | As of December 31, 2024 |
|  | *Pursuant to the Guidelines of the Securities and* |
|  | *Exchange Commission for Reporting Corporate* |
|  | *Reserves and Future Net Revenue* |

---

Dear Ms. Mezo:

As you have requested, this report was completed on January 13, 2025 for the purpose of submitting our estimates of proved reserves and forecasts of economics attributable to the *PHX Minerals Inc.* ("PHX") interests and for inclusion as an exhibit in a filing made with the U.S. Securities and Exchange Commission ("SEC"). This report includes 100% of PHX's proved reserves, which are made up of oil and gas properties in various states. This report utilized an effective date of December 31, 2024 and was prepared in accordance with the disclosure requirements set forth in SEC regulations. This evaluation was prepared using constant prices and costs, and conforms to Item 1202(a)(8) of Regulation S-K and other rules of the SEC. A composite summary of the results of this evaluation are presented below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | Proved<br>Developed<br>Producing | Proved<br>Developed<br>Non-Producing |<br>Proved<br>Developed |<br>Proved<br>Undeveloped |<br>Total<br>Proved |
|  Net Reserves |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil | -Mbbl | 942.7 | 5.4 | 948.1 | 98.8 | 1046.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gas | -MMcf | 41648.0 | 901.2 | 42549.1 | 6757.7 | 49306.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGL | - Mbbl | 1320.4 | 1.7 | 1322.1 | 26.0 | 1348.1 |
|  Net Revenue |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil | - M$ | 69195.3 | 399.3 | 69594.6 | 7328.7 | 76923.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gas | - M$ | 84936.5 | 1729.5 | 86666.0 | 14461.9 | 101127.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGL | - M$ | 27661.5 | 37.9 | 27699.4 | 567.0 | 28266.4 |
|  Severance Taxes | - M$ | 14921.2 | 251.9 | 15173.1 | 2030.6 | 17203.7 |
|  Ad Valorem Taxes | - M$ | 11.6 | 0.0 | 11.6 | 3.5 | 15.1 |
|  Future Production Costs | - M$ | 40139.5 | 359.4 | 40498.9 | 2905.2 | 43404.1 |
|  Abandonment Costs | - M$ | 1307.5 | 0.0 | 1307.5 | 0.0 | 1307.5 |
|  Future Development Costs | - M$ | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
|  Net Operating Income (BFIT) | - M$ | 125413.5 | 1555.5 | 126969.0 | 17418.3 | 144387.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Discounted @ 10%** | **- M$** | **67539.3** | **1083.8** | **68623.1** | **11018.9** | **79642.0** |

---

------

*PHX Minerals Inc. Interests*

January 13, 2025

Future net revenue is prior to deducting state production taxes and ad valorem taxes. Future net cash flow (net operating income) is after deducting these taxes, future capital (development) costs and operating (production) expenses, but before consideration of federal income taxes. The future net cash flow has been discounted at an annual rate of ten percent to determine its "present worth". The present worth is shown to indicate the effect of time on the value of money and should not be construed as being the fair market value of the reserves by Cawley, Gillespie & Associates, Inc. ("CG&A").

The oil reserves, which include oil and condensate volumes, and natural gas liquids (NGL) volumes are expressed in barrels (42 U.S. gallons). Gas volumes are expressed in thousands of standard cubic feet (Mcf) at contract temperature and pressure base.

**<u>Hydrocarbon Pricing</u>**

As requested for SEC purposes, the base oil and gas prices calculated for December 31, 2024 were $75.48/BBL and $2.13/MMBTU, respectively. As specified by the SEC, a company must use a 12-month average price, calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period. The base oil price is based upon WTI-Cushing spot prices (EIA) during January 2024 through December 2024 and the base gas price is based upon Henry Hub prices (Platts Gas Daily) during January 2024 through December 2024. NGL prices were adjusted on a per-property basis and averaged 27.8% of the oil price on a composite basis.

The base prices were adjusted for differentials on a per-property basis, which may include local basis differential, treating cost, transportation, gas shrinkage, gas heating value (BTU content) and/or crude quality and gravity corrections. After these adjustments, the net realized prices for the SEC price case over the life of the proved properties was estimated to be $73.477 per barrel for oil, $2.051 per MCF for natural gas and $20.968 per barrel for NGL. All economic factors were held constant in accordance with SEC guidelines.

**<u>Future Development Costs, Expenses and Taxes</u>**

Lease operating expenses and ad valorem taxes were forecast as provided by your office and based on the analysis of historical accounting data. Lease operating expenses were held constant in accordance with SEC guidelines. Severance tax rates were applied at normal state percentages of oil, gas and NGL revenue. However, for certain properties where appropriate, severance tax abatements have been applied as provided by your office. The lease operating expenses, severance taxes and ad valorem taxes were reviewed in detail and are reasonable and appropriate.

The undeveloped drilling locations are based upon mineral interests only (no working interest) and as such, PHX is not responsible for capital costs or lease operating expenses. However, other deductions were modeled to account for transportation and marketing adjustments that PHX will be responsible for. Lease operating costs were applied to aid in proper economic limit determinations for the mineral properties herein.

Further, the net cost of plugging and the salvage value of equipment at abandonment (P&A) have been included herein as provided for the working interest properties, with P&A costs scheduled at the economic limit for each well.

**<u>Reserve Estimation Methods</u>**

The methods employed in estimating reserves are described on page 2 of the Appendix. Reserves for proved developed producing wells were estimated using production performance methods for the vast majority of properties with monthly production updated up to July 2024 as available via public records. Certain new producing properties with very little production history were forecast using a combination of production performance and analogy to similar production, both of which are considered to provide a relatively high degree of accuracy. This evaluation includes 30 cases which represent over 4,379 low value producing wells grouped by well type and area for which total net reserves were estimated in aggregate. These cases represent 7.1% of the total net proved reserves herein.

------

*PHX Minerals Inc. Interests*

January 13, 2025

Proved undeveloped reserves have been estimated for locations that are drilled but not yet completed, are currently drilling, are permitted, or where the operator has indicated to PHX its intention to drill. Non-producing reserve estimates, for both developed and undeveloped properties, were forecast using either volumetric or analogy methods, or a combination of both. These methods provide a relatively high degree of accuracy for predicting proved developed non-producing and proved undeveloped reserves. The assumptions, data, methods and procedures used herein are appropriate for the purpose served by this report.

**<u>SEC Conformance and Regulations</u>**

The reserve classifications and the economic considerations used herein conform to the criteria of the SEC as defined in pages 3 and 4 of the Appendix. The reserves and economics are predicated on regulatory agency classifications, rules, policies, laws, taxes and royalties currently in effect except as noted herein. Federal, state, and local laws and regulations, which are currently in effect and that govern the development and production of oil and natural gas, have been considered in the evaluation of proved reserves for this report. The possible effects of changes in legislation or other Federal or State restrictive actions which could affect the reserves and economics have not been considered. These possible changes could have an effect on the reserves and economics. However, we do not anticipate nor are we aware of any legislative changes or restrictive regulatory actions that may impact the recovery of reserves.

This evaluation includes 27 proved developed non-producing and 169 proved undeveloped locations, all of which are commercial using the SEC pricing applied herein, and targeting reservoirs in Louisiana, North Dakota, Oklahoma, and Texas. Each of these drilling locations proposed as part of PHX development plans conforms to the proved developed non-producing and proved undeveloped standards as set forth by the SEC. In our opinion, the working interest operators of these drills have indicated they have reasonably certain intent to complete this development plan within the next five years. Furthermore, the working interest operators of these locations have demonstrated through their actions that they have adequate company staffing, financial backing and prior development success to ensure this development plan will be executed as projected.

**<u>General Discussion</u>**

An on-site field inspection of the properties has not been performed nor has the mechanical operation or condition of the wells and their related facilities been examined, nor have the wells been tested by Cawley, Gillespie & Associates, Inc. Possible environmental liability related to the properties has not been investigated nor considered. Further, the net cost of plugging and the salvage value of equipment at abandonment have been included herein as provided for the working interest properties.

The reserve estimates and forecasts were based upon interpretations of data furnished by your office and available from our files. Ownership information and economic factors such as liquid and gas prices, price differentials and expenses was furnished by your office. To some extent, information from public records was used to check and/or supplement these data. The basic engineering and geological data were utilized subject to third party reservations and qualifications. Nothing has come to our attention, however, that would cause us to believe that we are not justified in relying on such data. All estimates represent our best judgment based on the data available at the time of preparation. Due to inherent uncertainties in future production rates, commodity prices and geologic conditions, it should be realized that the reserve estimates, the reserves actually recovered, the revenue derived therefrom and the actual cost incurred could be more or less than the estimated amounts.

------

*PHX Minerals Inc. Interests*

January 13, 2025

**<u>Closing</u>**

Cawley, Gillespie & Associates, Inc. is a Texas Registered Engineering Firm (F-693), made up of independent registered professional engineers and geologists that have provided petroleum consulting services to the oil and gas industry for over 60 years. This evaluation was supervised by W. Todd Brooker, President at Cawley, Gillespie & Associates, Inc. and a State of Texas Licensed Professional Engineer (License #83462), with Professional Qualifications noted on the next page. We do not own an interest in the properties or *PHX Minerals Inc.* and are not employed on a contingent basis. We have used all methods and procedures that we consider necessary under the circumstances to prepare this report. Our work-papers and related data utilized in the preparation of these estimates are available in our office.

---

| | |
|:---|:---|
| Yours very truly, | Yours very truly, |
| **CAWLEY, GILLESPIE & ASSOCIATES, INC.** | **CAWLEY, GILLESPIE & ASSOCIATES, INC.** |
| Texas Registered Engineering Firm F-693 | Texas Registered Engineering Firm F-693 |
|  | /s/ W. Todd Brooker |
|  | W. TODD BROOKER, P.E. |
|  | PRESIDENT |
|  | /s/ Robert P. Bergeron, Jr. |
|  | ROBERT P. BERGERON, JR., P.E. |
|  | PARTNER |
|  | /s/ Nicholas J. Loncar |
|  | NICHOLAS J. LONCAR, P.E. |
|  | RESERVOIR ENGINEER |

---

------

CAWLEY, GILLESPIE & ASSOCIATES, INC.

PETROLEUM CONSULTANTS

---

| | | |
|:---|:---|:---|
| 6500 RIVER PLACE BLVD, BLDG 3 SUITE 200 | 306 WEST SEVENTH STREET, SUITE 302 | 1000 LOUISIANA STREET, SUITE 1900 |
| AUSTIN, TEXAS 78730 | FORT WORTH, TEXAS 76102-4987 | HOUSTON, TEXAS 77002-5008 |
| 512-249-7000 | 817- 336-2461 | 713-651-9944 |
|  | www.cgaus.com |  |

---

**Professional Qualifications of W. Todd Brooker, P.E.** 

**Primary Technical Person** 

The evaluation summarized by this report was conducted by a proficient team of geologists and reservoir engineers who integrate geological, geophysical, engineering and economic data to produce high quality reserve estimates and economic forecasts. This report was supervised by Todd Brooker, President of Cawley, Gillespie & Associates, Inc. (CG&A).

Prior to joining CG&A, Mr. Brooker worked in Gulf of Mexico drilling and production engineering at Chevron USA. Mr. Brooker has been an employee of CG&A since 1992 and became President in 2017. His responsibilities include reserve and economic evaluations, fair market valuations, expert reporting and testimony, field/reservoir studies, pipeline resource assessments, field development planning and acquisition/divestiture analysis. His reserve reports are routinely used for public company U.S. Securities and Exchange Commission (SEC) disclosures. His experience includes significant projects in both conventional and unconventional resources in every major U.S. producing basin and abroad, including oil and gas shale plays, coalbed methane fields, waterfloods and complex, faulted structures.

Mr. Brooker graduated with honors from the University of Texas at Austin in 1989 with a Bachelor of Science degree in Petroleum Engineering. He is a registered Professional Engineer in the State of Texas (License #83462), and a member of the Society of Petroleum Engineers (SPE) and the Society of Petroleum Evaluation Engineers (SPEE).

Based on his educational background, professional training and more than 30 years of experience, Mr. Brooker and CG&A continue to deliver independent, professional, ethical and reliable engineering and geological services to the petroleum industry.

***CAWLEY, GILLESPIE & ASSOCIATES, INC.***

TEXAS REGISTERED ENGINEERING FIRM F-693

## Exhibit 99.3

**Exhibit 99.3** 

**WhiteHawk Income Corporation** 

**Estimated** 

**Future Reserves and Income** 

**Attributable to Certain** 

**Royalty Interests Acquired from** 

**San Jacinto Minerals I** 

**SEC Parameters** 

**As of** 

**December 31, 2024** 

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| | |
|:---|:---|
| /s/ Stephen E. Gardner | /s/ Edward M. Polishuk |
| Stephen E. Gardner, P.E. | Edward M. Polishuk |
| Colorado License No. 44720 | Senior Petroleum Evaluator |
| Managing Senior Vice President |  |

---

**[SEAL]** 

**RYDER SCOTT COMPANY, L.P.** 

TBPELS Firm Registration No. F-1580

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

------

![LOGO](g86452dsp2_.jpg)

March 31, 2026

WhiteHawk Income Corporation

2000 Market Steet, Suite 910

Philadelphia, PA 19103

Ladies and Gentlemen:

At your request, Ryder Scott Company, L.P. (Ryder Scott) has revised a previously prepared report regarding the proved reserves, future production, and income attributable to certain royalty interests of San Jacinto Minerals I (SJM I) as of December 31, 2024, which were acquired by WhiteHawk Income Corporation (WHK) in March 2025. The original report dated January 16, 2026 was prepared for SJM I but was not intended for public disclosure requirements as set forth in the SEC regulations. This report, completed on March 31, 2026, is based on the original data utilized for the December 31, 2024 report, but has been revised to include necessary language for public disclosure by WHK in filings made with the SEC in accordance with the disclosure requirements set forth in the SEC regulations. The subject properties are located in the states of Pennsylvania and West Virginia. The reserves and income data were estimated based on the definitions and disclosure guidelines of the United States Securities and Exchange Commission (SEC) contained in Title 17, Code of Federal Regulations, Modernization of Oil and Gas Reporting, Final Rule released January 14, 2009 in the Federal Register (SEC regulations).

The properties evaluated by Ryder Scott represent 100 percent of the total net proved developed liquid hydrocarbon reserves and 100 percent of the total net proved developed gas reserves of SJM I as of December 31, 2024, which were acquired in their entirety by WHK in March 2025.

The estimated reserves and future net income amounts presented in this report, as of December 31, 2024 are related to hydrocarbon prices. The hydrocarbon prices used in the preparation of this report are based on the average prices during the 12-month period prior to the "as of date" of this report, determined as the unweighted arithmetic averages of the prices in effect on the first-day-of-the-month for each month within such period, as required by the SEC regulations. Actual future prices may vary considerably from the prices that were used in this report. The reserves volumes and the income attributable thereto have a direct relationship to the hydrocarbon prices actually received; therefore, volumes of reserves actually recovered and the amounts of income actually received may differ significantly from the estimated quantities presented in this report. The results of this study are summarized as follows.

1100 LOUISIANA, SUITE 4600 HOUSTON, TEXAS 77002-5294 TEL (713) 651-9191 <br> SUITE 2800, 350 7TH AVENUE, S.W. CALGARY, ALBERTA T2P 3N9 TEL (403) 262-2799

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WhiteHawk (SJM I) – SEC Parameters

March 31, 2026

**SEC PARAMETERS** 

Estimated Net Reserves and Income Data

Certain Royalty Interests of

**WhiteHawk Income Corporation** 

**Acquired from San Jacinto Minerals I** 

As of December 31, 2024

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| | | | |
|:---|:---|:---|:---|
| | Proved | Proved | Proved |
| | Developed | Developed | Total<br>Proved |
|  | Producing | Non-Producing | Total<br>Proved |
| ***Net Reserves*** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil/Condensate – Mbbl | 14 | 4 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plant Products – Mbbl | 653 | 61 | 714 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gas – MMcf | 47103 | 2424 | 49528 |
| ***Income Data ($M)*** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Future Gross Revenue | $85030 | $4624 | $89654 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deductions | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Future Net Income (FNI) | $85030 | $4624 | $89654 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Discounted FNI @ 10% | $42513 | $2575 | $45088 |

---

Liquid hydrocarbons are expressed in standard 42 U.S. gallon barrels and shown herein as thousands of barrels (Mbbl). All gas volumes are expressed in millions of cubic feet (MMcf) at the official temperature and pressure bases of the area in which the gas volumes are located. All gas reserves volumes are reported on an "as sold" basis. In this report, the revenues, deductions, and income data are expressed as thousands of U.S. dollars ($M).

The estimates of the reserves, future production, and income attributable to properties in this report were prepared using the economic software package ARIES<sup>TM</sup> Petroleum Economics and Reserves Software, a copyrighted program of Halliburton. The program was used at the request of WHK. Ryder Scott has found this program to be generally acceptable, but notes that certain summaries and calculations may vary due to rounding and may not exactly match the sum of the properties being summarized. Furthermore, one-line economic summaries may vary slightly from the more detailed cash flow projections of the same properties, also due to rounding. The rounding differences are not material.

The future gross revenue is after the deduction of production taxes. The deductions do not incorporate any operating costs or Pennsylvania Impact Fees as these assets consist of royalty interests only. However, such costs were included in our property level economics to calculate economic limits. The future net income is before the deduction of state and federal income taxes and general administrative overhead, and has not been adjusted for outstanding loans that may exist nor does it include any adjustment for cash on hand or undistributed income.

Gas reserves account for approximately 80 percent and liquid hydrocarbon reserves account for the remaining 20 percent of total future gross revenue from proved developed reserves reported herein.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

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WhiteHawk (SJM I) – SEC Parameters

March 31, 2026

The discounted future net income shown above was calculated using a discount rate of 10 percent per annum compounded monthly. Future net income was discounted at four other discount rates which were also compounded monthly. These results are shown in summary form as follows.

---

| | |
|:---|:---|
|  | Discounted Future Net Income ($M)<br>As of December 31, 2024 |
| Discount Rate<br> Percent | Total<br>Proved |
| 8 | $49957 |
| 12 | $41171 |
| 14 | $37962 |
| 15 | $36567 |

---

The results shown above are presented for your information and should not be construed as our estimate of fair market value.

***Reserves Included in This Report***

The proved reserves included herein conform to the definition as set forth in the Securities and Exchange Commission's Regulations Part 210.4-10(a). An abridged version of the SEC reserves definitions from 210.4-10(a) entitled "PETROLEUM RESERVES DEFINITIONS" is included as an attachment to this report.

The various reserves status categories are defined in the attachment entitled "PETROLEUM RESERVES STATUS DEFINITIONS AND GUIDELINES" in this report. The proved developed non-producing reserves included herein consist of the shut-in category and comprise wells that are waiting on facilities.

No attempt was made to quantify or otherwise account for any accumulated gas production imbalances that may exist. The proved gas volumes presented herein do not include volumes of gas consumed in operations as reserves.

Reserves are "estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations." All reserves estimates involve an assessment of the uncertainty relating the likelihood that the actual remaining quantities recovered will be greater or less than the estimated quantities determined as of the date the estimate is made. The uncertainty depends primarily on the amount of reliable geologic and engineering data available at the time of the estimate and the interpretation of these data. The relative degree of uncertainty may be conveyed by placing reserves into one of two principal categories, either proved or unproved. Unproved reserves are less certain to be recovered than proved reserves and may be further sub-categorized as probable and possible reserves to denote progressively increasing uncertainty in their recoverability. At WHK's request, this report addresses only the proved developed reserves attributable to the properties evaluated herein.

Proved oil and gas reserves are "those quantities of oil and gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward." The proved reserves included herein were estimated using deterministic methods. The SEC has defined reasonable certainty for proved reserves, when based on deterministic methods, as a "high degree of confidence that the quantities will be recovered."

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

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WhiteHawk (SJM I) – SEC Parameters

March 31, 2026

Proved reserves estimates will generally be revised only as additional geologic or engineering data become available or as economic conditions change. For proved reserves, the SEC states that "as changes due to increased availability of geoscience (geological, geophysical, and geochemical), engineering, and economic data are made to the estimated ultimate recovery (EUR) with time, reasonably certain EUR is much more likely to increase or remain constant than to decrease." Moreover, estimates of proved reserves may be revised as a result of future operations, effects of regulation by governmental agencies or geopolitical or economic risks. Therefore, the proved reserves included in this report are estimates only and should not be construed as being exact quantities, and if recovered, the revenues therefrom, and the actual costs related thereto, could be more or less than the estimated amounts.

The operations for the properties in this report may be subject to various levels of governmental controls and regulations. These controls and regulations may include, but may not be limited to, matters relating to land tenure and leasing**,** the legal rights to produce hydrocarbons, drilling and production practices, environmental protection, marketing and pricing policies, royalties, various taxes and levies including income tax, and are subject to change from time to time. Such changes in governmental regulations and policies may cause volumes of proved reserves actually recovered and amounts of proved income actually received to differ significantly from the estimated quantities.

The estimates of proved reserves presented herein were based upon a detailed study of the properties in which WHK acquired an interest; however, we have not made any field examination of the properties. No consideration was given in this report to potential environmental liabilities that may exist nor were any costs included for potential liabilities to restore and clean up damages, if any, caused by past operating practices.

***Estimates of Reserves***

The estimation of reserves involves two distinct determinations. The first determination results in the estimation of the quantities of recoverable oil and gas and the second determination results in the estimation of the uncertainty associated with those estimated quantities in accordance with the definitions set forth by the Securities and Exchange Commission's Regulations Part 210.4-10(a). The process of estimating the quantities of recoverable oil and gas reserves relies on the use of certain generally accepted analytical procedures. These analytical procedures fall into three broad categories or methods: (1) performance-based methods, (2) volumetric-based methods and (3) analogy. These methods may be used individually or in combination by the reserves evaluator in the process of estimating the quantities of reserves. Reserves evaluators must select the method or combination of methods which in their professional judgment is most appropriate given the nature and amount of reliable geoscience and engineering data available at the time of the estimate, the established or anticipated performance characteristics of the reservoir being evaluated, and the stage of development or producing maturity of the property.

In many cases, the analysis of the available geoscience and engineering data and the subsequent interpretation of this data may indicate a range of possible outcomes in an estimate, irrespective of the method selected by the evaluator. When a range in the quantity of reserves is identified, the evaluator must determine the uncertainty associated with the incremental quantities of the reserves. If the reserves quantities are estimated using the deterministic incremental approach, the uncertainty for each discrete incremental quantity of the reserves is addressed by the reserves category assigned by the evaluator. Therefore, it is the categorization of reserves quantities as proved, probable and/or possible that

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

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WhiteHawk (SJM I) – SEC Parameters

March 31, 2026

addresses the inherent uncertainty in the estimated quantities reported. For proved reserves, uncertainty is defined by the SEC as reasonable certainty wherein the "quantities actually recovered are much more likely to be achieved than not." The SEC states that "Probable reserves are those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered." The SEC states that "Possible reserves are those additional reserves that are less certain to be recovered than probable reserves and the total quantities ultimately recovered from a project have a low probability of exceeding proved plus probable plus possible reserves." All quantities of reserves within the same reserves category must meet the SEC definitions as noted above.

Estimates of reserves quantities and their associated reserves categories may be revised in the future as additional geoscience or engineering data become available. Furthermore, estimates of reserves quantities and their associated reserves categories may also be revised due to other factors such as changes in economic conditions, results of future operations, effects of regulation by governmental agencies or geopolitical or economic risks as previously noted herein.

The reserves for the properties included herein were estimated by performance methods or analogy. All of the proved reserves attributable to producing wells and/or reservoirs were estimated by decline curve analysis, a performance method which utilized extrapolations of historical production and pressure data through September 2024 in cases where such data were considered to be definitive. The data utilized in this analysis were furnished to Ryder Scott by SJM I or obtained from public data sources and were considered sufficient for the purpose thereof.

Reserves attributable to the proved developed non-producing status category included herein were estimated by analogy. The data utilized from the analogues were furnished to Ryder Scott by SJM I or obtained from public data sources and were considered sufficient for the purpose thereof.

To estimate economically producible proved oil and gas reserves and related future net cash flows, we consider many factors and assumptions including, but not limited to, the use of reservoir parameters derived from geological, geophysical and engineering data which cannot be measured directly, economic criteria based on current costs and SEC pricing requirements, and forecasts of future production rates. Under the SEC regulations 210.4-10(a)(22)(v) and (26), proved reserves must be anticipated to be economically producible from a given date forward based on existing economic conditions including the prices and costs at which economic producibility from a reservoir is to be determined. While it may reasonably be anticipated that the future prices received for the sale of production and the operating costs and other costs relating to such production may increase or decrease from those under existing economic conditions, such changes were, in accordance with rules adopted by the SEC, omitted from consideration in making this evaluation.

SJM I has informed us that they have furnished us all of the material accounts, records, geological and engineering data, and reports and other data required for this investigation. In preparing our forecast of future proved production and income, we have relied upon data furnished by SJM I with respect to property interests owned, production and well tests from examined wells, normal direct costs of operating the wells or leases, other costs such as transportation and/or processing fees, Pennsylvania Impact Fees and production taxes, product prices based on the SEC regulations, adjustments or differentials to product prices, and base maps. Ryder Scott reviewed such factual data for its reasonableness; however, we have not conducted an independent verification of the data furnished by SJM I. We consider the factual data used in this report appropriate and sufficient for the purpose of preparing the estimates of reserves and future net revenues herein.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

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WhiteHawk (SJM I) – SEC Parameters

March 31, 2026

In summary, we consider the assumptions, data, methods and analytical procedures used in this report appropriate for the purpose hereof, and we have used all such methods and procedures that we consider necessary and appropriate to prepare the estimates of reserves herein. The proved reserves included herein were determined in conformance with the United States Securities and Exchange Commission (SEC) Modernization of Oil and Gas Reporting; Final Rule, including all references to Regulation S-X and Regulation S-K, referred to herein collectively as the "SEC Regulations." In our opinion, the proved reserves presented in this report comply with the definitions, guidelines and disclosure requirements as required by the SEC regulations.

***Future Production Rates***

For the producing wells included herein, our forecasts of future production rates and decline trends are based on the historical performance data of each well.

The initial performance of analogous wells was used to estimate the anticipated initial production rates for those wells or locations that are not currently producing. For reserves not yet on production, sales were estimated to commence at an anticipated date furnished by SJM I and in certain instances supplemented with dates provided by Ryder Scott using regional knowledge. Wells that are not currently producing may start producing earlier or later than anticipated in our estimates due to unforeseen factors causing a change in the timing to initiate production.

The future production rates from wells currently on production or wells that are not currently producing may be more or less than estimated because of changes including, but not limited to, reservoir performance, operating conditions related to surface facilities, compression and artificial lift, pipeline capacity and/or operating conditions, producing market demand and/or allowables or other constraints set by regulatory bodies.

***Hydrocarbon Prices***

The hydrocarbon prices used herein are based on SEC price parameters using the average prices during the 12-month period prior to the "as of date" of this report, determined as the unweighted arithmetic averages of the prices in effect on the first-day-of-the-month for each month within such period.

SJM I furnished us with the above mentioned average benchmark prices in effect on December 31, 2024. These initial SEC hydrocarbon prices were determined using the 12-month average first-day-of-the-month benchmark prices appropriate to the geographic area where the hydrocarbons are sold. These benchmark prices are prior to the adjustments for differentials as described herein. The table below summarizes the "benchmark prices" and "price reference" used for the geographic area included in the report.

The product prices that were actually used to determine the future gross revenue for each property reflect adjustments to the benchmark prices for gravity, quality, local conditions, certain gas firm transportation fees, certain NGL fractionation and transportation fees, and/or distance from market, referred to herein as "differentials." The differentials used in the preparation of this report were furnished to us by SJM I. The differentials furnished by SJM I were reviewed by us for their reasonableness using information furnished by SJM I for this purpose.

In addition, the table below summarizes the net volume weighted benchmark prices adjusted for differentials and referred to herein as the "average realized prices." The average realized prices shown in the table below were determined from the total future gross revenue before production taxes and the total net reserves for the geographic area and presented in accordance with SEC disclosure requirements for the geographic area included in the report.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

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WhiteHawk (SJM I) – SEC Parameters

March 31, 2026

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| | | | | |
|:---|:---|:---|:---|:---|
| Geographic Area | Product | Price<br> Reference | Average<br> Benchmark<br> Prices | Average Realized<br> Prices |
|  North America |  |  |  |  |
|  United States | Oil/Condensate | WTI Cushing | $75.48/bbl | $71.51/bbl |
|  | NGLs | WTI Cushing | $75.48/bbl | $23.67/bbl |
|  | Gas | Henry Hub | $2.13/MMBTU | $1.44/Mcf |

---

The effects of derivative instruments designated as price hedges of oil and gas quantities are not reflected in our individual property evaluations.

***Costs***

The operating costs furnished to us were accepted as factual data and reviewed by us for their reasonableness; however, we have not conducted an independent verification of the operating cost data used by SJM I. No deduction was made for loan repayments, interest expenses, or exploration and development prepayments that were not charged directly to the leases or wells. It should be noted that the assets in this report comprise royalty interests only, and the operating costs supplied by SJM I were used only to determine the economic life of each property. Similarly, abandonment costs and salvage value were not utilized in the report.

The proved developed non-producing reserves in this report are associated with royalty interests only. Accordingly, SJM I has provided us their best approximation of the operators' plans as of December 31, 2024. These estimated plans are based on information such as, but not limited to, some direct communications with SJM I's partners. Additionally, SJM I has informed us that they are not aware of any legal, regulatory, or political obstacles that would significantly alter these plans. While these plans could change from those under existing economic conditions as of December 31, 2024, such changes were, in accordance with rules adopted by the SEC, omitted from consideration in making this evaluation.

Current costs used by SJM I were held constant throughout the life of the properties.

***Standards of Independence and Professional Qualification***

Ryder Scott is an independent petroleum engineering consulting firm that has been providing petroleum consulting services throughout the world since 1937. Ryder Scott is employee-owned and maintains offices in Houston, Texas; Denver, Colorado; and Calgary, Alberta, Canada. We have approximately eighty engineers and geoscientists on our permanent staff. By virtue of the size of our firm and the large number of clients for which we provide services, no single client or job represents a material portion of our annual revenue. We do not serve as officers or directors of any privately-owned or publicly-traded oil and gas company and are separate and independent from the operating and investment decision-making process of our clients. This allows us to bring the highest level of independence and objectivity to each engagement for our services.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

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WhiteHawk (SJM I) – SEC Parameters

March 31, 2026

Ryder Scott actively participates in industry-related professional societies and organizes an annual public forum focused on the subject of reserves evaluations and SEC regulations. Many of our staff have authored or co-authored technical papers on the subject of reserves related topics. We encourage our staff to maintain and enhance their professional skills by actively participating in ongoing continuing education.

Prior to becoming an officer of the Company, Ryder Scott requires that staff engineers and geoscientists receive professional accreditation in the form of a registered or certified professional engineer's license or a registered or certified professional geoscientist's license, or the equivalent thereof, from an appropriate governmental authority or a recognized self-regulating professional organization. Regulating agencies require that, in order to maintain active status, a certain amount of continuing education hours be completed annually, including an hour of ethics training. Ryder Scott fully supports this technical and ethics training with our internal requirement mentioned above.

We are independent petroleum engineers with respect to WHK and SJM I. Neither we nor any of our employees have any financial interest in the subject properties and neither the employment to do this work nor the compensation is contingent on our estimates of reserves for the properties which were reviewed.

The results of this study, presented herein, are based on technical analyses conducted by teams of geoscientists and engineers from Ryder Scott. The professional qualifications of the undersigned, the technical person primarily responsible for overseeing, reviewing and approving the evaluation of the reserves information discussed in this report, are included as an attachment to this letter.

***Terms of Usage***

The results of our third-party study, presented in report form herein, were prepared in accordance with the disclosure requirements set forth in the SEC regulations and intended for public disclosure as an exhibit in filings made with the SEC by WHK.

For filings made with the SEC under the 1933 Securities Act, we have provided our written consent for the references to our name as well as to the references to our third-party report in the registration statement on Form S-1 by WHK. Our consent for such use is included as a separate exhibit to the filings made with the SEC by WHK.

We have provided WHK with a digital version of the original signed copy of this report letter. In the event there are any differences between the digital version included in filings made by WHK and the original signed report letter, the original signed report letter shall control and supersede the digital version.

The data and work papers used in the preparation of this report are available for examination by authorized parties in our offices. Please contact us if we can be of further service.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

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WhiteHawk (SJM I) – SEC Parameters

March 31, 2026

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| |
|:---|
| Very truly yours, |
| **RYDER SCOTT COMPANY, L.P.** |
| TBPELS Firm Registration No. F-1580 |
| /s/ Stephen E. Gardner |
| **[SEAL]** |
| Stephen E. Gardner, P.E. |
| Colorado License No. 44720 |
| Managing Senior Vice President |
| /s/ Edward M. Polishuk |
| Edward M. Polishuk |
| Senior Petroleum Evaluator |

---

SEG-EMP (DRO)/pl

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

------

**Professional Qualifications of Primary Technical Person** 

The conclusions presented in this report are the result of technical analysis conducted by teams of geoscientists and engineers from Ryder Scott Company, L.P. Mr. Stephen E. Gardner is the primary technical person responsible for the estimate of the reserves, future production and income.

Mr. Gardner, an employee of Ryder Scott Company, L.P. (Ryder Scott) since 2006, is a Managing Senior Vice President responsible for ongoing reservoir evaluation studies worldwide, as well as for coordinating and supervising the evaluations of staff and consulting engineers of the company. Mr. Gardner is also a member of Ryder Scott's Board of Directors. Before joining Ryder Scott, Mr. Gardner served in a number of engineering positions with Exxon Mobil Corporation. For more information regarding Mr. Gardner's geographic and job specific experience, please refer to the Ryder Scott Company website at https://ryderscott.com/employees/denver-employees.

Mr. Gardner earned a Bachelor of Science degree in Mechanical Engineering from Brigham Young University in 2001 (summa cum laude). He is a licensed Professional Engineer in the States of Colorado and Texas. Mr. Gardner is a member of the Society of Petroleum Engineers (SPE) and a former director of the Society of Petroleum Evaluation Engineers (SPEE). He currently serves as an officer for SPEE at the international level.

In addition to gaining experience and competency through prior work experience, the Texas Board of Professional Engineers requires a minimum of 15 hours of continuing education annually, including at least one hour in the area of professional ethics, which Mr. Gardner fulfills. As part of his 2024 continuing education hours, Mr. Gardner attended multiple technical conferences, including the SPEE Annual Meeting and the annual Ryder Scott Reserves Conference, which covered a variety of reserves topics including analysis techniques for unconventional reservoirs, geothermal energy, reserves definitions and guidelines, SEC comment letter trends, ethics, and others. Mr. Gardner attended the 2024 Geothermal Rising Conference, where he presented a technical paper on geothermal resource classifications. In addition, Mr. Gardner participated in various local technical seminars and other internal company training courses throughout the year covering topics such as reserves evaluation methods and evaluation software, ethics, M&A trends, regulatory issues, enhanced geothermal systems, and more.

Based on his educational background, professional training and approximately 20 years of practical experience in the estimation and evaluation of petroleum reserves, Mr. Gardner has attained the professional qualifications as a Reserves Estimator set forth in Article III of the "Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information" promulgated by the Society of Petroleum Engineers as of June 2018.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

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**PETROLEUM RESERVES DEFINITIONS** 

**As Adapted From:** 

**RULE 4-10(a) of REGULATION S-X PART 210** 

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION (SEC)** 

***PREAMBLE***

On January 14, 2009, the United States Securities and Exchange Commission (SEC) published the "Modernization of Oil and Gas Reporting; Final Rule" in the Federal Register of National Archives and Records Administration (NARA). The "Modernization of Oil and Gas Reporting; Final Rule" includes revisions and additions to the definition section in Rule 4-10 of Regulation S-X, revisions and additions to the oil and gas reporting requirements in Regulation S-K, and amends and codifies Industry Guide 2 in Regulation S-K. The "Modernization of Oil and Gas Reporting; Final Rule", including all references to Regulation S-X and Regulation S-K, shall be referred to herein collectively as the "SEC regulations". The SEC regulations take effect for all filings made with the United States Securities and Exchange Commission as of December 31, 2009, or after January 1, 2010. Reference should be made to the full text under Title 17, Code of Federal Regulations, Regulation S-X Part 210, Rule 4-10(a) for the complete definitions (direct passages excerpted in part or wholly from the aforementioned SEC document are denoted in italics herein).

*Reserves are estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations.* All reserve estimates involve an assessment of the uncertainty relating the likelihood that the actual remaining quantities recovered will be greater or less than the estimated quantities determined as of the date the estimate is made. The uncertainty depends primarily on the amount of reliable geologic and engineering data available at the time of the estimate and the interpretation of these data. The relative degree of uncertainty may be conveyed by placing reserves into one of two principal categories, either proved or unproved. Unproved reserves are less certain to be recovered than proved reserves and may be further sub-categorized as probable and possible reserves to denote progressively increasing uncertainty in their recoverability. Under the SEC regulations as of December 31, 2009, or after January 1, 2010, a company may optionally disclose estimated quantities of probable or possible oil and gas reserves in documents publicly filed with the SEC. The SEC regulations continue to prohibit disclosure of estimates of oil and gas resources other than reserves and any estimated values of such resources in any document publicly filed with the SEC unless such information is required to be disclosed in the document by foreign or state law as noted in §229.1202 Instruction to Item 1202.

Reserves estimates will generally be revised only as additional geologic or engineering data become available or as economic conditions change.

Reserves may be attributed to either natural energy or improved recovery methods. Improved recovery methods include all methods for supplementing natural energy or altering natural forces in the reservoir to increase ultimate recovery. Examples of such methods are pressure maintenance, natural gas cycling, waterflooding, thermal methods, chemical flooding, and the use of miscible and immiscible displacement fluids. Other improved recovery methods may be developed in the future as petroleum technology continues to evolve.

Reserves may be attributed to either conventional or unconventional petroleum accumulations. Petroleum accumulations are considered as either conventional or unconventional based on the nature of their in-place characteristics, extraction method applied, or degree of processing prior to sale. Examples of unconventional petroleum accumulations include coalbed or coalseam methane (CBM/CSM), basin-centered gas, shale gas, gas hydrates, natural bitumen and oil shale deposits. These unconventional accumulations may require specialized extraction technology and/or significant processing prior to sale.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

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PETROLEUM RESERVES DEFINITIONS

Reserves do not include quantities of petroleum being held in inventory.

Because of the differences in uncertainty, caution should be exercised when aggregating quantities of petroleum from different reserves categories.

**<u>RESERVES (SEC DEFINITIONS)</u>**

Securities and Exchange Commission Regulation S-X §210.4-10(a)(26) defines reserves as follows:

***Reserves.*** *Reserves are estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and gas or related substances to market, and all permits and financing required to implement the project.* 

*<u>Note to paragraph (a)(26):</u> Reserves should not be assigned to adjacent reservoirs isolated by major, potentially sealing, faults until those reservoirs are penetrated and evaluated as economically producible. Reserves should not be assigned to areas that are clearly separated from a known accumulation by a non-productive reservoir (<u>i.e.</u>, absence of reservoir, structurally low reservoir, or negative test results). Such areas may contain prospective resources (<u>i.e.</u>, potentially recoverable resources from undiscovered accumulations).* 

**<u>PROVED RESERVES (SEC DEFINITIONS)</u>**

Securities and Exchange Commission Regulation S-X §210.4-10(a)(22) defines proved oil and gas reserves as follows:

***Proved oil and gas reserves.*** *Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i) The area of the reservoir considered as proved includes:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(A) The area identified by drilling and limited by fluid contacts, if any, and* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(B) Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering data.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii) In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact with reasonable certainty.* 

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

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PETROLEUM RESERVES DEFINITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(iii) Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(iv) Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(A) Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based; and* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(B) The project has been approved for development by all necessary parties and entities, including governmental entities.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(v) Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.* 

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

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**PETROLEUM RESERVES STATUS DEFINITIONS AND GUIDELINES** 

**As Adapted From:** 

**RULE 4-10(a) of REGULATION S-X PART 210** 

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION (SEC)** 

**and** 

**2018 PETROLEUM RESOURCES MANAGEMENT SYSTEM (SPE-PRMS)** 

**Sponsored and Approved by:** 

**SOCIETY OF PETROLEUM ENGINEERS (SPE)** 

**WORLD PETROLEUM COUNCIL (WPC)** 

**AMERICAN ASSOCIATION OF PETROLEUM GEOLOGISTS (AAPG)** 

**SOCIETY OF PETROLEUM EVALUATION ENGINEERS (SPEE)** 

**SOCIETY OF EXPLORATION GEOPHYSICISTS (SEG)** 

**SOCIETY OF PETROPHYSICISTS AND WELL LOG ANALYSTS (SPWLA)** 

**EUROPEAN ASSOCIATION OF GEOSCIENTISTS & ENGINEERS (EAGE)** 

Reserves status categories define the development and producing status of wells and reservoirs. Reference should be made to Title 17, Code of Federal Regulations, Regulation S-X Part 210, Rule 4-10(a) and the SPE-PRMS as the following reserves status definitions are based on excerpts from the original documents (direct passages excerpted from the aforementioned SEC and SPE-PRMS documents are denoted in italics herein).

**<u>DEVELOPED RESERVES (SEC DEFINITIONS)</u>**

Securities and Exchange Commission Regulation S-X §210.4-10(a)(6) defines developed oil and gas reserves as follows:

*Developed oil and gas reserves are reserves of any category that can be expected to be recovered:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i) Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii) Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.* 

**<u>Developed Producing (SPE-PRMS Definitions)</u>**

While not a requirement for disclosure under the SEC regulations, developed oil and gas reserves may be further sub-classified according to the guidance contained in the SPE-PRMS as Producing or Non-Producing.

***<u>Developed Producing Reserves</u>***

*Developed Producing Reserves are expected quantities to be recovered from completion intervals that are open and producing at the effective date of the estimate.* 

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

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PETROLEUM RESERVES STATUS DEFINITIONS AND GUIDELINES

*Improved recovery reserves are considered producing only after the improved recovery project is in operation.* 

***<u>Developed Non-Producing</u>***

*Developed Non-Producing Reserves include shut-in and behind-pipe Reserves.* 

***<u>Shut-In</u>***

*Shut-in Reserves are expected to be recovered from:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *completion intervals that are open at the time of the estimate but which have not yet started producing;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(2)* *wells which were shut-in for market conditions or pipeline connections; or* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(3)* *wells not capable of production for mechanical reasons.* 

***<u>Behind-Pipe</u>***

*Behind-pipe Reserves are expected to be recovered from zones in existing wells that will require additional completion work or future re-completion before start of production with minor cost to access these reserves.* 

*In all cases, production can be initiated or restored with relatively low expenditure compared to the cost of drilling a new well.* 

**<u>UNDEVELOPED RESERVES (SEC DEFINITIONS)</u>**

Securities and Exchange Commission Regulation S-X §210.4-10(a)(31) defines undeveloped oil and gas reserves as follows:

*Undeveloped oil and gas reserves are reserves of any category that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i) Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii) Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances, justify a longer time.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(iii) Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, as defined in paragraph (a)(2) of this section, or by other evidence using reliable technology establishing reasonable certainty.* 

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

## Exhibit 99.4

**Exhibit 99.4** 

CAWLEY, GILLESPIE & ASSOCIATES, INC.

PETROLEUM CONSULTANTS

6500 RIVER PLACE BLVD, SUITE 3-200 AUSTIN, TEXAS 78730-1111 512-249-7000 306 WEST SEVENTH STREET, SUITE 302 FORT WORTH, TEXAS 76102-4987 817-336-2461 www.cgaus.com 1000 LOUISIANA STREET, SUITE 1900 HOUSTON, TEXAS 77002-5008 713-651-9944

March 13, 2026

Mr. John Picton

Vice President of Engineering

WhiteHawk Energy, LLC

2000 Market Street, Suite 910

Philadelphia, PA 19103

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| |
|:---|
|  Re: Evaluation Summary – SEC Price Case |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***WhiteHawk Income Corporation Interests*** |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Proved Reserves |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certain Properties in Various States |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>As of December 31, 2025</u>  |
|  <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Pursuant to the Guidelines of the Securities and* |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Exchange Commission for Reporting Corporate* |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Reserves and Future Net Revenue* |

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Dear Mr. Picton:

As requested, this report was completed on March 13, 2026 for the purpose of submitting our estimates of proved reserves and forecasts of economics attributable to the *WhiteHawk Income Corporation* ("WhiteHawk") interests for inclusion as an exhibit in a filing made with the U.S. Securities and Exchange Commission ("SEC"). Per WhiteHawk, this report includes 100% of WhiteHawk's reserves, which are made up of oil and gas properties in the Appalachian, Anadarko, Haynesville and other basins. This report utilized an effective date of December 31, 2025 and was prepared in accordance with the disclosure requirements set forth in SEC regulations. This evaluation was prepared using constant prices and costs, and conforms to Item 1202(a)(8) of Regulation S-K and other rules of the SEC. The results of this evaluation are presented in the accompanying tabulations, with a composite summary of the values presented below:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | Proved<br>Developed<br>Producing | Proved<br>Developed<br>Non-<br>Producing | Proved<br>Developed | Proved<br>Undeveloped | Total<br>Proved |
|  Net Reserves |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil | - Mbbl | 1153.7 | 202.9 | 1356.6 | 35.6 | 1392.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gas | - MMcf | 154137.0 | 19094.2 | 173231.1 | 4149.3 | 177380.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGL | - Mbbl | 2914.2 | 459.0 | 3373.2 | 83.5 | 3456.7 |
|  Net Revenue |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil | - M$ | 72628.5 | 12811.7 | 85440.2 | 2244.0 | 87684.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gas | - M$ | 467469.1 | 56829.5 | 524298.7 | 12437.4 | 536736.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NGL | - M$ | 63850.5 | 10474.7 | 74325.1 | 1820.8 | 76146.0 |
|  Severance and |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ad Valorem Taxes | - M$ | 14256.1 | 1341.7 | 15597.8 | 272.5 | 15870.3 |
|  Future Production Costs | - M$ | 83746.2 | 8035.9 | 91782.2 | 1640.3 | 93422.5 |
|  Future Development Costs | - M$ | 1270.6 | 0.0 | 1270.6 | 0.0 | 1270.6 |
|  Net Operating Income (BFIT) | - M$ | 504675.4 | 70738.2 | 575413.7 | 14589.5 | 590003.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Discounted @ 10%** | **- M$** | **244245.2** | **41111.5** | **285356.8** | **8333.3** | **293689.9** |

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*WhiteHawk Income Corporation Interests – SEC Price Case* 

March 13, 2026

Proved Developed reserves are the summation of the Proved Developed Producing and Proved Developed Non-Producing reserve estimates. Proved Developed reserves were estimated at 1,356.6 Mbbl oil, 173,231.1 MMcf gas and 3,373.2 Mbbl NGLs (or 201,609.5 MMCFE6). Of the Proved Developed reserves, 178,544.4 MMCFE6 were attributed to producing zones in existing wells and 23,065.2 MMCFE6 were attributed to zones in existing wells not producing. "MMCFE6" as used herein utilized the conversion rate of 1 barrel of oil or NGL is equivalent to 6 MCF of gas..

Future net revenue is prior to deducting state production taxes and ad valorem taxes. Future net cash flow (future net income) is after deducting these taxes, future (development) capital costs and production (operating) costs, but before consideration of federal income taxes. In accordance with SEC guidelines, the future net cashflow has been discounted at an annual rate of ten percent to determine its "present worth". The present worth is shown to indicate the effect of time on the value of money and should not be construed as being the fair market value of the properties by Cawley, Gillespie & Associates, Inc. ("CG&A").

The oil reserves, which include oil and condensate volumes, and natural gas liquid (NGL) volumes are expressed in barrels (42 U.S. gallons). Gas volumes are expressed in thousands of standard cubic feet (Mcf) at contract temperature and pressure base.

**<u>Hydrocarbon Pricing</u>**

As requested for SEC purposes, the base oil and gas prices calculated for December 31, 2025 were $65.34/BBL and $3.387/MMBTU, respectively. As specified by the SEC, a company must use a 12-month average price, calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period. The base oil price is based upon WTI-Cushing spot prices (EIA) during January 2025 through December 2025 and the base gas price is based upon Henry Hub spot prices (Platts Gas Daily) during January 2025 through December 2025. NGL prices were adjusted on a per-property basis and averaged 33.7% of the oil price on a composite basis.

The base prices were adjusted for differentials on a per-property basis, which may include local basis differential, treating cost, transportation, gas shrinkage, gas heating value (BTU content) and/or crude quality and gravity corrections. After these adjustments, the net realized prices for the SEC price case over the life of the proved properties was estimated to be $62.99 per barrel for oil, $3.03 per MCF for natural gas, and $22.03 per barrel for NGL. All economic factors were held constant in accordance with SEC guidelines.

**<u>Expenses, Taxes and Future Development Costs</u>**

**Expenses**: Future production costs in the form of lease operating expenses (LOE) were applied to all wells based on regional averages by reservoir. LOE is not paid by the mineral owner but was applied in this evaluation to aid in proper economic limit determinations for the mineral properties herein. LOE were held constant in accordance with SEC guidelines.

**Taxes**: Oil and gas severance taxes were applied based on applicable state guidelines. Ad valorem tax rates were applied as provided by your office and appear reasonable and appropriate for this evaluation. Severance and ad valorem taxes are combined in the cash flows appearing as "Production Taxes".

**Future Development Costs**: Drilling and completions costs ("investment") were estimated by lateral length on a reservoir basis. Capital is not paid by the mineral owner and, therefore, not included in this evaluation except on the limited number of working interest properties. However, capital was used to assist in proper commerciality determinations of each upside location. Investments were not escalated in this report. Investments were not escalated in this report as per SEC guidelines.

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*WhiteHawk Income Corporation Interests – SEC Price Case* 

March 13, 2026

**<u>Reserve Estimation Methods</u>**

Reserves for proved developed producing wells were estimated using production performance methods for the vast majority of properties. Certain new producing properties with very little production history were forecast using a combination of production performance and analogy to similar production, both of which are considered to provide a relatively high degree of accuracy. We evaluated 6,558 PDP properties (representing 10,932 wells) as part of this review, with production volumes updated through December 2025 as provided by WhiteHawk.

Non-producing reserve estimates, including developed and undeveloped, were forecast using either volumetric or analogy methods, or a combination of both. These methods provide a relatively high degree of accuracy for predicting proved developed non-producing and undeveloped reserves. The assumptions, data, methods and procedures used herein are appropriate for the purpose served by this report.

New locations within the WhiteHawk acreage include wells currently drilling, permitted wells, and / or wells expected to be drilled based on operator information or regional activity. For each new drill, a reserve category of PDNP and PUD was assigned based on proximity to production, geologic control, anticipated timing and regulatory considerations by state and reservoir. Reserves for each location were assigned based on offset analogy to production with preference given to modern completions.

**<u>SEC Conformance and Regulations</u>**

The reserve classifications and the economic considerations used herein conform to the criteria of the SEC as defined in pages 3 and 4 of the Appendix. The reserves and economics are predicated on regulatory agency classifications, rules, policies, laws, taxes and royalties currently in effect except as noted herein. The possible effects of changes in legislation or other Federal or State restrictive actions which could affect the reserves and economics have not been considered. However, we do not anticipate nor are we aware of any legislative changes or restrictive regulatory actions that may impact the recovery of reserves.

The reserves shown in this report are estimates only and should not be construed as exact quantities. Proved reserves are those quantities of oil and gas which, by analysis of engineering and geoscience data, can be estimated with reasonable certainty to be commercially recoverable; probable and possible reserves are those additional reserves which are sequentially less certain to be recovered than proved reserves. Estimates of reserves may increase or decrease as a result of market conditions, future operations, changes in regulations, or actual reservoir performance.

This evaluation includes 294 developed non-producing wells (drilled but uncompleted, 292 of which are commercial at strip pricing used herein) anticipated to start production in 2026, and 136 proved undeveloped locations (134 of which are commercial). Each of these drilling locations proposed as part of operator's development plans conforms to the proved undeveloped standards as set forth by the SEC. In our opinion, the operators of these drills have indicated they have reasonably certain intent to complete this development plan within the next five years. Furthermore, operators of these locations have demonstrated through their actions that they have adequate company staffing, financial backing and prior development success to ensure this development plan will be executed.

**<u>General Discussion</u>**

The reserve estimates and forecasts were based upon interpretations of data furnished by your office and available from our files. Ownership information and economic factors such as liquid and gas prices, price differentials and expenses was furnished by your office. To some extent, information from public records was used to check and/or supplement these data. The basic engineering and geological data were utilized subject to third party reservations and qualifications. Nothing has come to our attention, however, that would cause us to believe that we are not justified in relying on such data. All estimates represent our

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*WhiteHawk Income Corporation Interests – SEC Price Case* 

March 13, 2026

best judgment based on the data available at the time of preparation. Due to inherent uncertainties in future production rates, commodity prices and geologic conditions, it should be realized that the reserve estimates, the reserves actually recovered, the revenue derived therefrom and the actual cost incurred could be more or less than the estimated amounts.

An on-site field inspection of the properties has not been performed nor has the mechanical operation or condition of the wells and their related facilities been examined, nor have the wells been tested by Cawley, Gillespie & Associates, Inc. Possible environmental liability related to the properties has not been investigated nor considered. Further, the net cost of plugging and abandonment have not been included herein, as a mineral owner is not responsible for capital costs.

**<u>Closing</u>**

Cawley, Gillespie & Associates, Inc. is a Texas Registered Engineering Firm (F-693), made up of independent registered professional engineers and geologists that have provided petroleum consulting services to the oil and gas industry for over 60 years. This evaluation was supervised by W. Todd Brooker, President at Cawley, Gillespie & Associates, Inc. and a State of Texas Licensed Professional Engineer (License #83462). We do not own an interest in the properties or WhiteHawk Income Corporation and are not employed on a contingent basis. We have used all methods and procedures that we consider necessary under the circumstances to prepare this report. Our work-papers and related data utilized in the preparation of these estimates are available in our office.

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| |
|:---|
| Yours very truly, |
| **CAWLEY, GILLESPIE & ASSOCIATES, INC.**<br> TEXAS REGISTERED ENGINEERING FIRM F-693 |
| /S/ W. TODD BROOKER |
| W. TODD BROOKER, P.E. |
| PRESIDENT |
| /S/ ROBERT P. BERGERON, JR. |
| ROBERT P. BERGERON, JR., P.E. |
| PARTNER |

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CAWLEY, GILLESPIE & ASSOCIATES, INC.

PETROLEUM CONSULTANTS

6500 RIVER PLACE BLVD, SUITE 3-200 AUSTIN, TEXAS 78730-1111 512-249-7000 306 WEST SEVENTH STREET, SUITE 302 FORT WORTH, TEXAS 76102-4987 817-336-2461 www.cgaus.com 1000 LOUISIANA STREET, SUITE 1900 HOUSTON, TEXAS 77002-5008 713-651-9944

**Professional Qualifications of W. Todd Brooker, P.E.** 

**Primary Technical Person** 

The evaluation summarized by this report was conducted by a proficient team of geologists and reservoir engineers who integrate geological, geophysical, engineering and economic data to produce high quality reserve estimates and economic forecasts. This report was supervised by Todd Brooker, President of Cawley, Gillespie & Associates, Inc. (CG&A).

Prior to joining CG&A, Mr. Brooker worked in Gulf of Mexico drilling and production engineering at Chevron USA. Mr. Brooker has been an employee of CG&A since 1992 and became President in 2017. His responsibilities include reserve and economic evaluations, fair market valuations, expert reporting and testimony, field/reservoir studies, pipeline resource assessments, field development planning and acquisition/divestiture analysis. His reserve reports are routinely used for public company U.S. Securities and Exchange Commission (SEC) disclosures. His experience includes significant projects in both conventional and unconventional resources in every major U.S. producing basin and abroad, including oil and gas shale plays, coalbed methane fields, waterfloods and complex, faulted structures.

Mr. Brooker graduated with honors from the University of Texas at Austin in 1989 with a Bachelor of Science degree in Petroleum Engineering. He is a registered Professional Engineer in the State of Texas (License #83462), and a member of the Society of Petroleum Engineers (SPE) and the Society of Petroleum Evaluation Engineers (SPEE).

Based on his educational background, professional training and more than 30 years of experience, Mr. Brooker and CG&A continue to deliver independent, professional, ethical and reliable engineering and geological services to the petroleum industry.

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| |
|:---|
| ***CAWLEY, GILLESPIE & ASSOCIATES, INC.*** |
| TEXAS REGISTERED ENGINEERING FIRM F-693 |

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## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

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| |
|:---|
| **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**WhiteHawk Income Corp**  |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Security Type**  | **Security Class Title**  | **Fee Calculation or Carry Forward Rule**  | **Maximum Aggregate Offering Price**  | **Fee Rate**  | **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Class A common stock | 457(o) | $100000000.00 | 0.0001381 | $13810.00 |
| Fees Previously Paid |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $100000000.00  |  | $13810.00  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $13810.00  |

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 **Offering Note** <br>

<sup>1</sup> (1) Includes Class A common stock, par value $0.0001 per share ("Class A common stock"), issuable upon exercise of the underwriters' option to purchase additional Class A common stock, if any. (2) Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended.

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| |
|:---|
| |
| **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims |
| Fee Offset Sources |
| **Rule 457(p)** |
| Fee Offset Claims |
| Fee Offset Sources |

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