Document:

EX-10.1

 Exhibit 10.1 

Execution Version 

DEAL CUSIP 84546SAT0 
 TERM
LOAN CUSIP 84546SAU7 
 TERM LOAN CREDIT AGREEMENT 

dated as of 
 December 22,
2021 
 among 
 SOUTHWESTERN
ENERGY COMPANY 
 as Borrower 

The Lenders Party Hereto 
 and

 JPMORGAN CHASE BANK, N.A. 

as Administrative Agent and Collateral Agent 
  

 
 JPMORGAN
CHASE BANK, N.A., 
 BOFA SECURITIES, INC., 

CITIGROUP GLOBAL MARKETS INC., 

RBC CAPITAL MARKETS, LLC, 

AND 
 WELLS FARGO
SECURITIES, LLC 
 as Joint Lead Arrangers and Joint Bookrunners 

MIZUHO BANK, LTD., 
 MUFG
BANK, LTD., 
 REGIONS CAPITAL MARKETS, A DIVISION OF REGIONS BANK, 

TRUIST BANK, 
 AND

 PNC BANK, NATIONAL ASSOCIATION 

as Joint Lead Arrangers 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	Page	 
		
	 ARTICLE I Definitions
	  	 	1	 
	 Section 1.01
	  	Defined Terms	  	 	1	 
	 Section 1.02
	  	Classification of Loans and Borrowings	  	 	45	 
	 Section 1.03
	  	Terms Generally	  	 	45	 
	 Section 1.04
	  	Accounting Terms; GAAP	  	 	45	 
	 Section 1.05
	  	Interest Rates; Benchmark Notification	  	 	46	 
	 Section 1.06
	  	Divisions	  	 	46	 
	 Section 1.07
	  	Limited Conditionality Transaction	  	 	46	 
	 ARTICLE II The Loans
	  	 	47	 
	 Section 2.01
	  	Commitments	  	 	47	 
	 Section 2.02
	  	Loans and Borrowings	  	 	47	 
	 Section 2.03
	  	Requests for Borrowings	  	 	48	 
	 Section 2.04
	  	Funding of Borrowings	  	 	49	 
	 Section 2.05
	  	Interest Elections	  	 	49	 
	 Section 2.06
	  	Termination of Initial Commitments	  	 	50	 
	 Section 2.07
	  	Repayment of Loans; Evidence of Debt	  	 	51	 
	 Section 2.08
	  	Prepayment of Loans	  	 	51	 
	 Section 2.09
	  	Fees	  	 	53	 
	 Section 2.10
	  	Interest	  	 	53	 
	 Section 2.11
	  	Alternate Rate of Interest	  	 	54	 
	 Section 2.12
	  	Increased Costs	  	 	56	 
	 Section 2.13
	  	Break Funding Payments	  	 	57	 
	 Section 2.14
	  	Taxes	  	 	58	 
	 Section 2.15
	  	Payments Generally; Allocations of Proceeds; Pro Rata Treatment; Sharing of Set-offs	  	 	61	 
	 Section 2.16
	  	Mitigation Obligations; Replacement of Lenders	  	 	63	 
	 Section 2.17
	  	Defaulting Lenders	  	 	64	 
	 Section 2.18
	  	Incremental Borrowings	  	 	64	 
	 ARTICLE III Representations and Warranties
	  	 	66	 
	 Section 3.01
	  	Organization; Powers	  	 	66	 
	 Section 3.02
	  	Authorization; Execution; Enforceability	  	 	66	 
	 Section 3.03
	  	Financial Condition	  	 	67	 
	 Section 3.04
	  	ERISA	  	 	67	 
	 Section 3.05
	  	Defaults	  	 	67	 
	 Section 3.06
	  	Accuracy of Information	  	 	67	 
	 Section 3.07
	  	Regulation U	  	 	67	 
	 Section 3.08
	  	Taxes	  	 	67	 

  
 i 

 Table of Contents 

(continued) 
  

							
	 	  	 	  	Page	 
			
	 Section 3.09
	  	Liens	  	 	68	 
	 Section 3.10
	  	Litigation	  	 	68	 
	 Section 3.11
	  	No Conflict	  	 	68	 
	 Section 3.12
	  	Governmental Approvals	  	 	68	 
	 Section 3.13
	  	Investment Company Status	  	 	68	 
	 Section 3.14
	  	Compliance with Laws and Orders	  	 	68	 
	 Section 3.15
	  	Anti-Terrorism Laws	  	 	68	 
	 Section 3.16
	  	Anti-Corruption Laws and Sanctions	  	 	68	 
	 Section 3.17
	  	Security Interest in Collateral	  	 	69	 
	 Section 3.18
	  	Subsidiaries	  	 	69	 
	 Section 3.19
	  	Insurance	  	 	69	 
	 Section 3.20
	  	Properties	  	 	69	 
	 Section 3.21
	  	Solvency	  	 	70	 
	 Section 3.22
	  	No Restrictive Agreements	  	 	70	 
	 Section 3.23
	  	EEA Financial Institutions	  	 	70	 
	 Section 3.24
	  	Environmental Matters	  	 	70	 
	 Section 3.25
	  	Maintenance of Properties	  	 	71	 
	 Section 3.26
	  	Gas Imbalances; Prepayments	  	 	72	 
	 Section 3.27
	  	Marketing of Production	  	 	72	 
	 Section 3.28
	  	Swap Agreements	  	 	72	 
	 Section 3.29
	  	Use of Loans	  	 	72	 
	 ARTICLE IV Conditions
	  	 	72	 
	 Section 4.01
	  	Effective Date Conditions	  	 	72	 
	 ARTICLE V Affirmative Covenants
	  	 	76	 
	 Section 5.01
	  	Financial Statements and Other Information	  	 	76	 
	 Section 5.02
	  	Books and Records; Inspection Rights	  	 	79	 
	 Section 5.03
	  	Conduct of Business; Existence	  	 	79	 
	 Section 5.04
	  	Maintenance of Insurance	  	 	79	 
	 Section 5.05
	  	Payment of Taxes and Other Obligations	  	 	80	 
	 Section 5.06
	  	Compliance with Laws	  	 	80	 
	 Section 5.07
	  	Maintenance of Properties	  	 	80	 
	 Section 5.08
	  	Designation of Unrestricted Subsidiaries; Redesignation of Unrestricted Subsidiaries as Restricted Subsidiaries	  	 	81	 
	 Section 5.09
	  	Additional Subsidiary Guarantors	  	 	82	 
	 Section 5.10
	  	Additional Collateral; Further Assurances	  	 	82	 
	 Section 5.11
	  	Title Information	  	 	83	 

  
 ii 

 Table of Contents 

(continued) 
  

							
	 	  	 	  	Page	 
			
	 Section 5.12
	  	Post-Effective Date/Post-Mustang Merger Obligations	  	 	84	 
	 Section 5.13
	  	Deposit Accounts and Securities Accounts	  	 	85	 
	 Section 5.14
	  	Reserved	  	 	85	 
	 Section 5.15
	  	Reserve Reports; Quarterly Engineering Reports	  	 	85	 
	 ARTICLE VI Negative Covenants
	  	 	87	 
	 Section 6.01
	  	Fundamental Changes	  	 	87	 
	 Section 6.02
	  	Liens	  	 	87	 
	 Section 6.03
	  	Indebtedness	  	 	90	 
	 Section 6.04
	  	Minimum Collateral Coverage Ratio	  	 	92	 
	 Section 6.05
	  	Investments	  	 	92	 
	 Section 6.06
	  	Restrictive Agreements	  	 	94	 
	 Section 6.07
	  	Restricted Payments	  	 	95	 
	 Section 6.08
	  	Asset Dispositions	  	 	95	 
	 Section 6.09
	  	Use of Proceeds	  	 	97	 
	 Section 6.10
	  	Limitations on Redemptions of Indebtedness	  	 	97	 
	 Section 6.11
	  	Limitation on Transactions with Affiliates	  	 	98	 
	 Section 6.12
	  	Material Change in Business	  	 	98	 
	 Section 6.13
	  	Swap Agreements	  	 	98	 
	 Section 6.14
	  	Amendments to Organizational Documents and RBL Loan Documents	  	 	98	 
	 ARTICLE VII Events of Default
	  	 	99	 
	 Section 7.01
	  	Events of Default	  	 	99	 
	 Section 7.02
	  	Remedies upon Event of Default	  	 	100	 
	 Section 7.03
	  	Right to Cure Collateral Coverage Ratio	  	 	101	 
	 ARTICLE VIII The Agents
	  	 	101	 
	 Section 8.01
	  	Authorization and Action	  	 	101	 
	 Section 8.02
	  	Agent’s Reliance, Indemnification, Etc	  	 	104	 
	 Section 8.03
	  	Posting of Communications	  	 	105	 
	 Section 8.04
	  	The Agents Individually	  	 	106	 
	 Section 8.05
	  	Successor Agent	  	 	106	 
	 Section 8.06
	  	Acknowledgments of Lenders	  	 	108	 
	 Section 8.07
	  	Collateral Matters	  	 	109	 
	 Section 8.08
	  	Credit Bidding	  	 	109	 
	 Section 8.09
	  	Certain ERISA Matters	  	 	110	 
	 ARTICLE IX Miscellaneous
	  	 	112	 
	 Section 9.01
	  	Notices	  	 	112	 
	 Section 9.02
	  	Waivers; Amendments	  	 	113	 

  
 iii 

 Table of Contents 

(continued) 
  

							
	 	  	 	  	Page	 
			
	 Section 9.03
	  	Expenses; Indemnity; Damage Waiver	  	 	115	 
	 Section 9.04
	  	Successors and Assigns	  	 	117	 
	 Section 9.05
	  	Survival	  	 	122	 
	 Section 9.06
	  	Counterparts; Integration; Effectiveness; Electronic Execution	  	 	122	 
	 Section 9.07
	  	Severability	  	 	123	 
	 Section 9.08
	  	Right of Setoff	  	 	123	 
	 Section 9.09
	  	Governing Law; Jurisdiction; Consent to Service of Process	  	 	124	 
	 Section 9.10
	  	WAIVER OF JURY TRIAL	  	 	124	 
	 Section 9.11
	  	Headings	  	 	124	 
	 Section 9.12
	  	Confidentiality	  	 	125	 
	 Section 9.13
	  	USA PATRIOT Act	  	 	126	 
	 Section 9.14
	  	Appointment for Perfection	  	 	126	 
	 Section 9.15
	  	Subsidiary Guarantors	  	 	126	 
	 Section 9.16
	  	Interest Rate Limitation	  	 	126	 
	 Section 9.17
	  	No Fiduciary Duty, etc	  	 	126	 
	 Section 9.18
	  	Acknowledgment and Consent to Bail-In of Affected Financial Institutions	  	 	127	 
	 Section 9.19
	  	Flood Insurance Regulations	  	 	128	 
	 Section 9.20
	  	Pari Passu Intercreditor Agreement	  	 	128	 

  
 iv 

	
	SCHEDULES:
	
	Schedule 2.01 – Commitments
	Schedule 3.18 – Equity Interests
	Schedule 3.24 – Environmental Disclosures
	Schedule 3.26 – Gas Imbalances/Prepayments
	Schedule 3.27 – Marketing of Production
	 Schedule 3.28 – Swap Agreements

	Schedule 6.02 – Existing Liens
	Schedule 6.03 – Existing Indebtedness
	Schedule 6.05 – Existing Investments
	Schedule 6.06 – Existing Restrictive Agreements

  

	
	EXHIBITS:
	
	Exhibit A – Form of Assignment and Assumption
	Exhibit B – Form of Note
	Exhibit C – Form of Compliance Certificate
	Exhibit D-1 – Form of U.S. Tax Certificate (Foreign Lenders That Are Not Partnerships)
	Exhibit D-2 – Form of U.S. Tax Certificate (Foreign Participants That Are Not Partnerships)
	Exhibit D-3 – Form of U.S. Tax Certificate (Foreign Participants That Are Partnerships)
	Exhibit D-4 – Form of U.S. Tax Certificate (Foreign Lenders That Are Partnerships)
	Exhibit E-1 – Form of Borrowing Request
	Exhibit E-2 – Form of Interest Election Request

  
 v 

 TERM LOAN CREDIT AGREEMENT (this “Agreement”) dated as of December 22, 2021
among SOUTHWESTERN ENERGY COMPANY, a Delaware corporation (the “Borrower”), the LENDERS from time to time party hereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent and Collateral Agent. 

The parties hereto agree as follows: 

ARTICLE I 
 Definitions 

Section 1.01 Defined Terms. As used in this Agreement, the following terms have the meanings specified below: 

“2012 Indenture” has the meaning assigned to such term in the definition of “Existing Senior Notes Indentures”.

 “2015 Indenture” has the meaning assigned to such term in the definition of “Existing Senior Notes
Indentures”. 
 “2017 Indenture” has the meaning assigned to such term in the definition of “Existing Senior
Notes Indentures”. 
 “2021 Indenture” has the meaning assigned to such term in the definition of “Existing
Senior Notes Indentures”. 
 “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or
the Loans comprising such Borrowing, bears interest at a rate determined by reference to the Alternate Base Rate. 

“ACNTA” means “ACNTA”, as defined in the Existing Senior Notes Indentures (other than the Indigo Indenture) as in
effect on the Effective Date. 
 “Acquisition” means any acquisition (whether by purchase, merger, consolidation or
otherwise) of property or series of related acquisitions of property that constitutes (i) assets comprising all or substantially all or any significant portion of a business or operating unit of a business, or (ii) all or substantially all
of the Equity Interests in a Person. 
 “Additional Lender” means, at any time, any bank, other financial institution or
other Person (other than a natural person) that, in any case, is not an existing Lender and that agrees to provide any portion of any Incremental Commitment or Incremental Loan in accordance with Section 2.18;
provided that each Additional Lender shall be subject to (i) the approval of the Administrative Agent (such approval not to be unreasonably withheld or delayed), in each case to the extent any such consent would be required from the
Administrative Agent under Section 9.04(b)(B) for an assignment of Loans and/or Commitments to such Additional Lender, and (ii) the consent of the Borrower; provided, further, that no Additional Lender
shall be the Borrower or any Subsidiary thereof. 
 “Additional Senior Notes Indenture” means any indenture entered into by
the Borrower or any Restricted Subsidiary after the Effective Date that contains any provision similar to any of the Secured Debt Indenture Exceptions contained in the Existing Senior Notes Indentures as of the Effective Date. 

 “Adjusted Daily Simple SOFR” means, with respect to any RFR Borrowing, an
interest rate per annum equal to (a) Daily Simple SOFR, plus (b) 0.10%; provided that if the Adjusted Daily Simple SOFR as so determined would be less than the Floor, such rate shall be deemed to be equal to the Floor for the purposes of this
Agreement. 
 “Adjusted Term SOFR Rate” means, with respect to any Term Benchmark Borrowing for any Interest Period or for
any ABR Borrowing based on the Adjusted Term SOFR Rate, an interest rate per annum equal to (a) the Term SOFR Rate for such Interest Period, plus (b) (i) 0.10% for an Interest Period of one (1) month, (ii) 0.15% for the Initial Interest
Period and an Interest Period of three (3) months, and (iii) 0.25% for an Interest Period of six (6) months; provided that if the Adjusted Term SOFR Rate as so determined would be less than the Floor, such rate shall be deemed to be the
Floor for the purposes of this Agreement. 
 “Administrative Agent” means JPMorgan, in its capacity as administrative agent
for the Lenders hereunder, and any successor in such capacity pursuant to Article VIII. 
 “Administrative Questionnaire”
means an administrative questionnaire in a form supplied by the Administrative Agent. 
 “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. 

“Agent” means either the Administrative Agent or the Collateral Agent, as applicable. 

“Agent Indemnitee” has the meaning assigned to such term in Section 9.03(c). 

“Aggregate Commitments” means the aggregate of the Commitments of all of the Lenders, as reduced or increased from time to
time pursuant to the terms and conditions hereof. 
 “Agreement” has the meaning specified in the introductory paragraph of
this Agreement. 
 “All-In Yield” means, as to any Indebtedness, the yield thereof
calculated in a manner consistent with generally accepted financial practices, taking into account interest rate, margin, OID, upfront fees, floors or otherwise; provided that OID and upfront fees shall be equated to interest rate assuming a 4-year life to maturity (or, if less, the stated life to maturity at the time of incurrence of the applicable Indebtedness); and provided, further, that
“All-In Yield” shall not include (x) arrangement fees, commitment fees, structuring fees, agency fees, underwriting or similar fees not paid generally to all lenders of such Indebtedness or
(y) ticking fees, unused line fees, call protection, end of term fees, prepayment premiums, amendment fees or similar fees (regardless of whether paid in whole or in part to any or all lenders under the applicable Indebtedness) or any other
fees not paid or payable generally to all lenders by the applicable borrower in the primary syndication of such Indebtedness. In determining the All-In Yield, any stepdowns in interest rate margins shall be
disregarded. 
 “Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the rate of
interest publicly announced by JPMorgan as its prime rate in effect at its principal office in New York City (the “Prime Rate”), (b) the NYFRB Rate from time to time plus 0.50% and (c) the Adjusted Term SOFR Rate for a one-month Interest Period plus 1.00%. 

  
 2 

 “Ancillary Document” has the meaning specified in
Section 9.06(b). 
 “Anti-Corruption Laws” means all Requirements of Law of any jurisdiction
applicable to the Borrower or any of its Subsidiaries from time to time concerning or relating to bribery or corruption. 

“Anti-Terrorism Laws” means all Requirements of Law of any jurisdiction related to terrorism financing or money laundering,
including the Patriot Act, 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) and Executive Order 13224
(effective September 24, 2001). 
 “Applicable Parties” has the meaning assigned to such term in
Section 8.03(c). 
 “Applicable Percentage” means, with respect to any Lender, a percentage
(carried out to the ninth decimal place) equal to a fraction (a) the numerator of which is an amount equal to such Lender’s aggregate principal amount of Loans and (b) the denominator of which is an amount equal to the aggregate
principal amount of Loans of all Lenders; provided that, in each case, when a Defaulting Lender shall exist, “Applicable Percentage” shall disregard any Defaulting Lender’s Loans. 

“Applicable Rate” means (a) with respect to ABR Loans, 1.50% and (b) with respect to Term Benchmark Loans and RFR
Loans, 2.50%. 
 “Approved Electronic Platform” has the meaning assigned to such term in
Section 8.03(a). 
 “Approved Fund” has the meaning assigned to such term in
Section 9.04(b). 
 “Approved Petroleum Engineer” means (a) Netherland, Sewell &
Associates, Inc., (b) DeGolyer and MacNaughton, (c) Cawley, Gillespie & Associates, Inc., (d) Ryder Scott Company Petroleum Consultants, L.P. and (e) any other reputable firm of independent petroleum engineers as shall be
selected by the Borrower and approved by the Administrative Agent, such approval not to be unreasonably withheld, conditioned or delayed. 

“Asset Swap” means any purchase and sale or exchange of Properties between any Loan Party or Restricted Subsidiary and
another Person to the extent that (a) such Property is exchanged for credit against the purchase price of similar replacement Property or (b) the proceeds of such Disposition are applied to the purchase price of such replacement Property,
in each case under Section 1031 of the Code or otherwise. 
 “Assignment and Assumption” means an assignment and
assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or
any other form (including electronic records generated by the use of an electronic platform) approved by the Administrative Agent. 

“Authorized Officer” means any of the following officers of the Borrower: the chief executive officer, the president, the
chief financial officer, the treasurer, or any executive vice president, or senior vice president. 
 “Available Incremental
Amount” means an aggregate principal amount of up to the sum of: 
 (a) $350,000,000; plus 

  
 3 

 (b) the aggregate amount of any voluntary prepayments or voluntary redemptions of any Loans,
Incremental Loans or Incremental Equivalent Indebtedness, in each case, except to the extent financed with long-term Indebtedness (other than revolving Indebtedness); plus 

(c) an unlimited amount so long as, after giving pro forma effect to the incurrence of such Indebtedness (assuming the full amount of any
Incremental Facility then being incurred is drawn) and any related acquisition, Investments and other transactions related thereto, the Subject Debt Conditions are satisfied. 

“Available Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, any
tenor for such Benchmark (or component thereof) or payment period for interest calculated with reference to such Benchmark (or component thereof), as applicable, that is or may be used for determining the length of an Interest Period for any term
rate or otherwise, for determining any frequency of making payments of interest calculated pursuant to this Agreement 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 clause (e) of Section 2.11. 
 “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). 

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as now and hereafter in
effect, or any successor statute. 
 “Bankruptcy Event” means, with respect to any Person, such Person becomes the subject
of a voluntary or involuntary bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation of its
business appointed for it, or, in the good faith determination of the Administrative Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or appointment or has had any
order for relief in such proceeding entered in respect thereof; provided that a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person by a Governmental
Authority or instrumentality thereof, unless such ownership interest results in or provides such Person with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets
or permits such Person (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person; provided, further, that, for so long as it is required by law or
regulation not to be publicly disclosed, the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official by a supervisory authority or regulator with respect to a Person under the
Dutch Financial Supervision Act 2007 (as amended from time to time and including any successor legislation) shall not be deemed a Bankruptcy Event. 

  
 4 

 “Benchmark” means, initially, the Term SOFR Rate; provided that if a
Benchmark Transition Event and the related Benchmark Replacement Date have occurred with respect to the Term SOFR 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 Section 2.11(b). 
 “Benchmark
Replacement” means, for any Available Tenor, the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date: 

(1) the Adjusted Daily Simple SOFR; 

(2) the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower as
the replacement for the then-current Benchmark for the applicable Corresponding Tenor 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 for the then-current Benchmark for Dollar-denominated syndicated credit facilities at such time in the United States
and (b) the related Benchmark Replacement Adjustment. 
 If the Benchmark Replacement as determined pursuant to clause (1) or (2)
above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents 

“Benchmark Replacement Adjustment” means, with respect to any replacement of the then-current Benchmark with an Unadjusted
Benchmark Replacement for any applicable Interest Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement, 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 for the applicable Corresponding Tenor giving due consideration to (i) 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 on the applicable Benchmark Replacement Date and/or (ii) 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
syndicated credit facilities denominated in Dollars at such time. 
 “Benchmark Replacement Conforming Changes” means, with
respect to any Benchmark Replacement and/or any Term Benchmark Loan, 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,” timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or
continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and
implementation of such Benchmark Replacement and to permit the 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 such Benchmark Replacement 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). 

  
 5 

 “Benchmark Replacement Date” means, with respect to any Benchmark, the
earliest to occur of the following events with respect to such then-current Benchmark: 
 (1) in the case of clause
(1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) 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 

(2) in the case of clause (3) 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 no longer representative; provided, that
such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (3) 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, (i) if the event giving rise to the Benchmark
Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the
“Benchmark Replacement Date” will be deemed to have occurred in the case of clause (1) or (2) 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). 
 “Benchmark Transition
Event” means, with respect to any Benchmark, the occurrence of one or more of the following events with respect to such then-current Benchmark: 

(1) 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); 

(2) 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 Federal Reserve Board, the NYFRB, the CME Term SOFR Administrator, 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), in each case 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 

  
 6 

 (3) 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 no longer, or as of a specified future date will
no longer 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). 

“Benchmark Unavailability Period” means, with respect to any Benchmark, the period (if any) (x) beginning
at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced such then-current Benchmark for all purposes hereunder and under
any Loan Document in accordance with Section 2.11 and (y) ending at the time that a Benchmark Replacement has replaced such then-current Benchmark for all purposes hereunder and under any Loan Document in accordance
with Section 2.11. 
 “Benefit Plan” means any of (i) an “employee benefit plan”
(as defined in ERISA) that is subject to Title I of ERISA, (ii) a “plan” as defined in and subject to Section 4975 of the Code or (iii) 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.” 

“Board” means the Board of Governors of the Federal Reserve System of the United States of America. 

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

“Borrower’s Headquarters” means that certain real property located at 10000 Energy Drive, Spring, Texas 77389. 

“Borrowing” means Loans of the same Type, made, converted or continued on the same date and, in the case of Term Benchmark
Loans, as to which a single Interest Period is in effect. 
 “Borrowing Base” means, with respect to borrowings under the
RBL Credit Agreement and any amendment to and/or modification or replacement of the foregoing in the form of any RBL Credit Facility, in each case with lenders that include commercial banks regulated by the U.S. Office of the Comptroller of the
Currency, the maximum amount determined or redetermined by the lenders thereunder as the aggregate lending value to be ascribed to the Oil and Gas Properties and other assets of the Borrower and its Restricted Subsidiaries against which such lenders
are prepared to provide loans, letters of credit, or other Indebtedness to the Loan Parties, using customary practices and standards for determining reserve-based borrowing base loans and which are generally applied to borrowers in the oil and gas
business by commercial lenders, as determined semi-annually during each year and/or on such other occasions as may be required or provided for therein. 

“Borrowing Base Deficiency” means, with respect to any RBL Credit Facility (including the RBL Credit Agreement), the excess
of (a) the sum of (i) the aggregate principal amount at such time of the outstanding loans (including any swingline loans) under such RBL Credit Facility plus (ii) the sum of (x) the aggregate undrawn amount of all
outstanding letters of credit under such RBL Credit Facility at such time plus (y) the aggregate amount of all disbursements under letters of credit under such RBL Credit Facility that have not yet been reimbursed by or on behalf of the
borrower (or borrowers) under such RBL Credit Facility over (b) the Borrowing Base then in effect under such RBL Credit Facility; provided, that for purposes of determining the existence and amount of any Borrowing Base Deficiency,
obligations under any letter of credit will not be deemed to be outstanding to the extent such obligations are cash collateralized. 

  
 7 

 “Borrowing Request” means a request by the Borrower for a Borrowing in
accordance with Section 2.03, which shall be, in the case of any such written request, in substantially the form of Exhibit E-1 or any other form approved by the Administrative
Agent. 
 “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York
City or Houston, Texas are authorized or required by law to remain closed; provided that, when used in connection with a Term Benchmark Loan, the term “Business Day” shall also exclude any day on which banks are not open for
dealings in Dollar deposits in the London interbank market. 
 “Capital Lease Obligations” of any Person means the
obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) Property, which obligations are required to be classified and accounted for as a capital lease or financing lease on a
balance sheet of such Person under GAAP, and the amount of Indebtedness represented by such obligations shall be the capitalized amount thereof determined in accordance with GAAP; provided that (a) any obligation to pay rent or other
amounts under any lease or other agreement (whether entered into before or after the Effective Date) that would have been classified as an operating lease pursuant to GAAP as in effect on December 31, 2018 will be deemed not to represent a
Capital Lease Obligation and (b) any obligation to pay amounts under any agreement (whether entered into before or after the Effective Date) that provides for services and the right to use equipment will be deemed not to represent a Capital
Lease Obligation (but only to the extent such obligation would not have been capitalized on a balance sheet of such Person prepared in accordance with GAAP as in effect on December 31, 2018). 

“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 any Loan Party. 
 “CCR Incurrence Test Date” means, in
connection with any incurrence of Permitted Pari Term Loan Indebtedness, Permitted Junior Lien Term Loan Indebtedness or Ratio-Based Incremental Indebtedness, the Business Day prior to the day on which such Indebtedness is allocated and priced (or,
if there is no such allocation and pricing, the Business Day prior to the day on which such Indebtedness is funded). 

“CERCLA” has the meaning assigned to such term within the definition of “Environmental Laws.” 

“CFC” means (a) a direct or indirect Subsidiary of the Borrower which is a “controlled foreign corporation” as
defined in Section 957(a) of the Code or any successor provision thereto and (b) any Subsidiary of a Subsidiary described in clause (a). 

“Change in Law” means the occurrence after the date of this Agreement or, with respect to any Lender, such later date on
which such Lender becomes a party to this Agreement of (a) the adoption of or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation,
implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline, requirement or directive (whether or not having the force of law) by any Governmental Authority; provided
however, that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and 

  
 8 

 
all requests, rules, guidelines or requirements and directives thereunder or issued in connection therewith or in the implementation thereof, and (y) all requests, rules, guidelines or
requirements and 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 to be a “Change in Law,” regardless of the date enacted, adopted, issued or implemented. 

“Change of Control” means that any Person or group (within the meaning of
Rule 13d-5 under the Securities Exchange Act of 1934) shall beneficially own, directly or indirectly, 35% or more of the common stock or other voting securities of the Borrower. 

“Charges” has the meaning assigned to it in Section 9.16. 

“Class” when used in reference to (a) any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, have identical terms and conditions, which may include Initial Loans or a separate tranche of Incremental Loans, (b) any Commitment, refers to whether such Commitment is a Commitment in respect of a separate Class of Loans and
(c) any Lender, refers to whether such Lender has a Loan or Commitment with respect to a particular Class of Loans or Commitments. 

“CME Term SOFR Administrator” means CME Group Benchmark Administration Limited as administrator of the forward-looking term
SOFR (or a successor administrator). 
 “Code” means the Internal Revenue Code of 1986. 

“Collateral” means any and all Property of the Loan Parties, now existing or hereafter acquired, upon which a Lien is
purported to be created by any Collateral Document, and any and all other Property of the Loan Parties, now existing or hereafter acquired, that at any time is or becomes subject to a Lien in favor of Collateral Agent, on behalf of itself and the
Secured Parties, to secure the Secured Obligations. For the avoidance of doubt, Collateral shall not include any Excluded Property. 

“Collateral Agent” means JPMorgan, in its capacity as collateral agent for the Lenders hereunder, and any successor in such
capacity pursuant to Article VIII. 
 “Collateral Coverage Ratio” means, as of any date of determination, the ratio of:

 (a) Total PDP PV-10 as of such date plus the Hedge Mark-to-Market Value as of such date to 
 (b) the sum, without duplication, of (i) the
aggregate principal amount of Loans then outstanding (or, for purposes of calculating the Collateral Coverage Ratio for purposes of Section 4.01(a)(xvii), the Aggregate Commitments), (ii) the aggregate principal amount of
loans under the RBL Credit Facility then outstanding, (iii) the aggregate undrawn amount of all outstanding Letters of Credit at such time (unless such obligations are cash collateralized pursuant to the terms of the RBL Credit Facility), (iv)
the aggregate amount of all disbursements under Letters of Credit that have not yet been reimbursed by or on behalf of the borrowers under the RBL Credit Facility, (v) the aggregate amount of unused commitments under the RBL Credit Facility
then outstanding on such date, and (vi) the aggregate principal amount of all Permitted Pari Term Loan Indebtedness, Permitted Junior Lien Term Loan Indebtedness and secured Incremental Equivalent Indebtedness outstanding on such date
(including any such Permitted Pari Term Loan Indebtedness, Permitted Junior Lien Term Loan Indebtedness or secured Incremental Equivalent Indebtedness incurred on such date or expected to be incurred in connection with such calculation of the
Collateral Coverage Ratio). 

  
 9 

 “Collateral Coverage Ratio Covenant” has the meaning assigned to it in
Section 7.03(a). 
 “Collateral Documents” means, collectively, the Security Agreement, the
Mortgages and all other agreements, instruments and documents executed in connection with this Agreement that are intended to create, perfect or evidence Liens to secure the Secured Obligations, including all other security agreements, pledge
agreements, mortgages, deeds of trust, Deposit Account Control Agreements, Securities Account Control Agreements, uncertificated securities control agreements, pledges, financing statements and all other written matter whether heretofore, now, or
hereafter executed by the Borrower or any of the other Loan Parties and delivered to the Collateral Agent and/or Administrative Agent that are intended to create, perfect or evidence Liens to secure the Secured Obligations. 

“Commitment” means, as to each Lender, its commitment to make a Loan to the Borrower, in each case, expressed as an amount
representing the maximum principal amount of the Loan to be made by such Lender under this Agreement, as such commitment may be reduced or increased from time to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment
and Assumption or (ii) an Incremental Amendment. The amount of each Lender’s initial Commitment as of the Effective Date (its “Initial Commitment”) is set forth on Schedule 2.01 under the caption “Initial
Commitment”; and the amount of each Lender’s other Commitments shall be as set forth in the Assignment and Assumption or Incremental Amendment pursuant to which such Lender shall have assumed its Commitment, as the case may be, as such
amounts may be adjusted from time to time in accordance with this Agreement. The initial aggregate amount of the Commitments on the Effective Date is $550,000,000. 

“Communications” means, collectively, any notice, demand, communication, information, document or other material provided by
or on behalf of any Loan Party pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent or any Lender by means of electronic communications pursuant to
Section 8.03(c), including through an Approved Electronic Platform. 
 “Competitor” means any
Person that is primarily engaged in, or that Controls a Person that is primarily engaged in, any material line of business that is the same as any line of business conducted by the Borrower or any of its Subsidiaries or any business substantially
related or incidental thereto, or that is a bona fide direct competitor of the Borrower or any of its Subsidiaries in the same industry or a substantially similar industry which offers a substantially similar product or service as the Borrower or
any of its Subsidiaries. 
 “Compliance Certificate” means a certificate of the Borrower executed on its behalf by its
chief financial officer, chief accounting officer or treasurer substantially in the form of Exhibit C, (a) certifying as to whether a Default or Event of Default exists and, if any Default or Event of Default exists, specifying the
details thereof and any action taken or proposed to be taken with respect thereto, and (b) setting forth reasonably detailed calculations of the requirements set forth in Section 6.04 as of the date of the financial
statements accompanying such certificate. 
 “Connection Income Taxes” means Other Connection Taxes that are imposed on or
measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes. 
 “Consolidated EBITDAX”
means, for any period, Consolidated Net Income for such period, plus 
 (a) the following (without duplication), in each case (other
than clause (a)(x) below) only to the extent (and in the same proportion) deducted (and not added back or excluded) in determining Consolidated Net Income for such period: 

(i) Consolidated Interest Expense for such period, 

  
 10 

 (ii) depletion, depreciation and amortization expense for such period, 

(iii) consolidated income tax expense for such period, 

(iv) any non-cash losses or charges resulting from any hedging arrangements resulting
from the requirements of FASB ASC 815 for such period, 
 (v) (A) fees and expenses of third party advisors (including legal
counsel, investment bankers, accountants, consultants, engineers and similar professionals) incurred during such period or any amortization thereof for such period, in connection with any acquisition, Investment, Disposition, issuance or repayment
of Indebtedness, issuance of equity securities, refinancing transaction or amendment or other modification of any debt instrument (in each case, including any such transaction undertaken but not completed) and (B) any costs, charges or expenses
relating to severance, cost savings (including reductions in general and administrative expenses), operating expense reductions, facilities closing, consolidations and integration costs, and other restructuring charges or reserves, 

(vi) oil and gas exploration expenses (including all drilling, completion, geological and geophysical costs) for such period,

 (vii) non-cash losses from Dispositions of assets and any other extraordinary,
unusual or non-recurring expenses, losses or charges, 
 (viii) costs, fees and
expenses incurred in connection with the Transactions, 
 (ix) any other non-cash
charges, including (A) any write-offs or write-downs reducing Consolidated Net Income for such period and (B) any non-cash compensation charge or expense, including any such charge or expense arising
from the grants of stock appreciation or similar rights, stock options, restricted stock, profits interests or other equity-based incentive awards or any other equity-based compensation, and 

(x) the amount of “run-rate” cost savings, operating expense reductions,
other operating improvements and synergies related to mergers and other business combinations, acquisitions and other Investments (including acquisitions and Investments occurring prior to the Effective Date), divestitures and other Dispositions
(including the termination or discontinuance of activities constituting a business), restructurings, operational changes, strategic initiatives, cost-savings initiatives, operational improvements and other similar initiatives and actions that, in
each case, are reasonably identifiable and factually supportable and projected by the Borrower in good faith to be realizable within eighteen (18) months (calculated on a pro forma basis as though such cost savings, operating expense
reductions, other operating improvements and synergies had been realized on the first day of such period and as if such cost savings, operating expense reductions, other operating improvements and synergies were realized during the entirety of such
period), net of the amount of actual benefits realized during such period from such actions; provided that (A) no amounts shall be added back pursuant to this clause (x) to the extent duplicative of any expenses or charges otherwise
added back to Consolidated EBITDAX, whether through a pro forma adjustment or otherwise, for such period and (B) the aggregate amount of cost savings, operating expense reductions, other operating improvements or synergies that may be
added back pursuant to this clause (x) or pursuant to the last paragraph of this definition for any period of four consecutive Fiscal Quarters shall not exceed the greater of (1) $100,000,000 and (2) 10.0% of Consolidated EBITDAX for such
period (calculated without giving effect to any such cost savings, operating expense reductions, other operating improvements or synergies); 

  
 11 

 provided that (y) in the case of each of the foregoing non-cash charges described in the foregoing clause (a), 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 Consolidated EBITDAX to such extent and (z) amortization of a prepaid cash item that was paid in a prior period shall be excluded from the foregoing clause (a);
minus 
 (b) the following (without duplication), in each case only to the extent included in determining Consolidated Net Income for
such period: 
 (i) non-cash gains on any hedging arrangements resulting from the
requirements of FASB ASC 815 for such period, 
 (ii) non-cash gains or adjustments
(excluding any non-cash gain to the extent it represents the reversal of an accrual or reserve for a potential cash item that reduced Consolidated EBITDAX in any prior period) and all other non-cash items of income for such period, and 
 (iii) any extraordinary, unusual or non-recurring non-cash gains, 
 in each case as determined on a consolidated
basis for the Borrower and its Restricted Subsidiaries in accordance with GAAP. 
 Notwithstanding anything to the contrary in this
definition, if at any time during such period the Borrower or any Restricted Subsidiary shall have made a Material Disposition or a Material Acquisition, Consolidated EBITDAX for such period shall be calculated giving pro forma effect thereto as if
such Material Disposition or Material Acquisition had occurred on the first day of such period, and such pro forma calculations shall be made in good faith by a Financial Officer of the Borrower and may include the amount of “run-rate” cost savings, operating expense reductions and other operating improvements and synergies resulting from or relating to any Material Disposition or Material Acquisition that are reasonably
identifiable and factually supportable and projected by the Borrower in good faith to be realizable within eighteen (18) months (calculated on a pro forma basis as though such cost savings, operating expense reductions, other operating
improvements and synergies had been realized on the first day of such period and as if such cost savings, operating expense reductions, other operating improvements and synergies were realized during the entirety of such period), subject to the
limitations set forth in clause (a)(x) above; provided that no amounts shall be added pursuant to this paragraph to the extent duplicative of any amounts that are otherwise added back in computing Consolidated EBITDAX, whether through a
pro forma adjustment or otherwise, with respect to such period. 
 “Consolidated Interest Expense” means, with
respect to any period, the sum, without duplication, of: (a) total consolidated interest expense of the Borrower and its Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP, with respect to all
outstanding Indebtedness of the Borrower and its Restricted Subsidiaries (including (i) all commissions, discounts and other fees and charges owed by the Borrower and its Restricted Subsidiaries with respect to letters of credit, (ii) all
interest expense attributable to Capital Lease Obligations and imputed interest with respect to Sale and Leaseback Transactions and (iii) financing fees (including arrangement, amendment and contract fees), debt issuance costs, commissions and
expenses and, in each case, the amortization thereof); plus (b) all cash dividends on Disqualified Stock or preferred equity interests of the Borrower or any of its Restricted Subsidiaries (other than cash dividends or payments on
Disqualified Stock or preferred equity interests of the Borrower or any of its Restricted Subsidiaries made in lieu of fractional shares); plus (c) amortization 

  
 12 

 
of OID resulting from the issuance of Indebtedness at less than par. For purposes of the foregoing, interest expense shall be determined after giving effect to any net payments made or received
by the Borrower and its Restricted Subsidiaries in respect of hedging arrangements relating to interest rate protection. In the event that the Borrower or any Restricted Subsidiary shall have completed a Material Acquisition or a Material
Disposition since the beginning of the relevant period, Consolidated Interest Expense shall be determined for such period on a pro forma basis as if such Material Acquisition or Material Disposition, and any related incurrence or repayment of
Indebtedness, had occurred at the beginning of such period. 
 “Consolidated Net Income” means, for any period, the
consolidated net income (or loss) of the Borrower and its Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP; provided, however, that there shall be excluded, without duplication: 

(a) the income (or loss) of any Person accrued prior to the date it becomes a Restricted Subsidiary or is designated a Restricted Subsidiary,
as applicable, or is merged into or consolidated with the Borrower or any of its Restricted Subsidiaries or such Person’s assets are acquired by the Borrower or any of its Restricted Subsidiaries; 

(b) the income (or loss) of any Person that is not a Subsidiary of the Borrower or is an Unrestricted Subsidiary, or that is accounted for by
the equity method of accounting; provided that Consolidated Net Income shall be increased by the amount of dividends or distributions or other payments that are actually paid in cash or cash equivalents to the Borrower or any of its
Restricted Subsidiaries by such Person in such period; 
 (c) the undistributed earnings of any Restricted Subsidiary (other than a Loan
Party) to the extent that the declaration or payment of dividends or similar distributions by such Restricted Subsidiary is not at the time permitted by operation of the terms of its Organizational Documents or any contractual obligation (other than
any Loan Document) or Requirement of Law applicable to such Restricted Subsidiary; 
 (d) 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 to the extent included in Consolidated Net Income; and 

(e) any cancellation of debt income. 

“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. The terms “Controlling” and “Controlled” have meanings correlative thereto. 

“Controlled Account” means (a) a Deposit Account of any Loan Party that is subject to a Deposit Account Control
Agreement or (b) a Securities Account of any Loan Party that is subject to a Securities Account Control Agreement. 

“Controlled Group” means all members of a controlled group of corporations or other business entities and all trades or
businesses (whether or not incorporated) under common control which, together with the Borrower or any of its Subsidiaries, are treated as a single employer under Section 414 of the Code. 

“Corresponding Tenor” with respect to any Available Tenor means, as applicable, either a tenor (including
overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor. 

  
 13 

 “Credit Party” means the Administrative Agent, the Collateral Agent or any
Lender. 
 “Cure Period” has the meaning assigned to it in Section 7.03(a). 

“Cure Quarter” has the meaning assigned to it in Section 7.03(a). 

“Cure Right” has the meaning assigned to it in Section 7.03(a). 

“Daily Simple SOFR” means, for any day (a “SOFR Rate Day”), a rate per annum equal to SOFR for the day that
is five (5) U.S. Government Securities Business Days prior to (i) if such SOFR Rate Day is a U.S. Government Securities Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a U.S. Government Securities Business Day,
the U.S. Government Securities Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator’s Website. Any change in Daily Simple SOFR due to a change in SOFR
shall be effective from and including the effective date of such change in SOFR without notice to the Borrower. 

“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. 
 “Defaulting Lender” means any Lender that (a) has
failed, within two Business Days of the date required to be funded or paid, to (i) fund any portion of its Loans or (ii) pay over to any Credit Party any other amount required to be paid by it hereunder, unless, in the case of clause
(i) above, 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 a condition precedent to funding (which condition precedent, together with
the particular default, if any, shall be specifically identified in such writing) has not been satisfied or (b) has become the subject of (A) a Bankruptcy Event or (B) a Bail-In Action. 

“Deposit Account” has the meaning assigned to such term in the UCC. 

“Deposit Account Control Agreement” means an agreement in form and substance reasonably acceptable to the Collateral Agent
establishing the Collateral Agent’s Control with respect to any Deposit Account. For purposes of this definition, “Control” means “control” within the meaning of Section 9-104 of
the UCC. 
 “Discharge of RBL Obligations” has the meaning set forth in the Pari Passu Intercreditor Agreement. 

“Dispose” means to sell, lease, assign, exchange, convey or otherwise transfer (excluding the granting of a Lien on) any
Property. “Disposition” has a meaning correlative thereto. 
 “Disqualified Institution” means, on any
date, (a) any Person designated by the Borrower as a “Disqualified Institution” by written notice delivered to the Administrative Agent at the following e-mail address:
JPMDQ_Contact@jpmorgan.com on or prior to the Effective Date, (b) any other Person that is a Competitor of the Borrower or any Subsidiary, which Person has been designated by the Borrower as a “Disqualified Institution” by
written notice to the Administrative Agent at the following e-mail address: JPMDQ_Contact@jpmorgan.com not less than five (5) Business Days prior to such date and (c) any Affiliate of a Person
described in clause (a) or (b) above to the extent that such Affiliate is included on a written notice delivered by the Borrower to the Administrative Agent at the following e-mail address:
JPMDQ_Contact@jpmorgan.com; provided that “Disqualified Institutions” shall exclude any Person that the Borrower has designated as no longer being a “Disqualified Institution” by written notice delivered to

  
 14 

 
the Administrative Agent at the following e-mail address: JPMDQ_Contact@jpmorgan.com from time to time. Notwithstanding anything herein to the
contrary, if the Borrower fails to deliver written notice of any “Disqualified Institution” to the Administrative Agent at the e-mail address set forth in this definition (or such other e-mail address as the Administrative Agent may specify in writing to the Borrower from time to time), then such designation shall be deemed to have been not received by the Administrative Agent and such designation
shall not be effective until so received by the Administrative Agent at such e-mail address. 

“Disqualified 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, (a) matures or is mandatorily redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Stock), pursuant to a
sinking fund obligation or otherwise, or (b) is convertible or exchangeable for Indebtedness or redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Stock) at the option of the holder
thereof, in whole or in part, in each case (determined as of the date of issuance), on or prior to the date that is 91 days after the Scheduled Maturity Date at the time of issuance of such Equity Interests; provided that (i) any Equity
Interests that would not constitute Disqualified Stock but for provisions thereof giving holders thereof (or the holders of any security into which such Equity Interest is convertible or for which such Equity Interest is exchangeable) the right to
require the issuer thereof to redeem such Equity Interests upon the occurrence of any Change of Control or any Disposition occurring prior to the date that is 91 days after the Scheduled Maturity Date at the time of issuance of such Equity Interests
shall not constitute Disqualified Stock if such Equity Interest provides that the issuer thereof will not redeem any such Equity Interest pursuant to such provisions prior to Payment in Full and (ii) any Equity Interests that are issued to any
employee or to any plan for the benefit of employees of the issuer thereof or by any such plan to such employees shall not constitute Disqualified Stock solely because such Equity Interests may be required to be repurchased by the issuer thereof as
a result of such employee’s termination, death or disability. 
 “Dollars” or “$” refers to lawful
money of the United States of America. 
 “Domestic Restricted Subsidiary” means a Restricted Subsidiary that is a Domestic
Subsidiary. 
 “Domestic Subsidiary” means a Subsidiary organized under the laws of a jurisdiction located in the United
States of America. 
 “EEA Financial Institution” 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 clauses (a) or (b) 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. 

“Effective Date” means December 22, 2021. 

  
 15 

 “Electronic Signature” means an electronic sound, symbol, or process
attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record. 

“Electronic System” means any electronic system, including e-mail, e-fax, Intralinks®, ClearPar® Debt Domain,
Syndtrak, and any other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by the Administrative Agent and any of its Related Parties or any other Person, providing for access to data protected by passcodes
or other security system. 
 “Environmental Laws” means all Requirements of Law and all codes, ordinances, orders, decrees,
judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management, Release or threatened
Release of any Hazardous Material or to health and safety matters, including without limitation the Oil Pollution Act of 1990, the Clean Air Act, the Comprehensive Environmental, Response, Compensation, and Liability Act of 1980
(“CERCLA”), the Federal Water Pollution Control Act, the Occupational Safety and Health Act of 1970, the Resource Conservation and Recovery Act of 1976 (“RCRA”), the Safe Drinking Water Act, the Toxic Substances
Control Act, the Superfund Amendments and Reauthorization Act of 1986, the Hazardous Materials Transportation Act, the Natural Gas Pipeline Safety Act of 1968, the Hazardous Liquid Pipeline Safety Act of 1979, and other environmental conservation or
protection Requirements of Law. 
 “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower or any of its Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials into the environment or
(e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 

“Environmental Permit” means any permit, registration, license, 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, but excluding debt securities convertible or exchangeable into such equity interests. 

“ERISA” means the Employee Retirement Income Security Act of 1974 and the rules and regulations promulgated thereunder. 

“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” has the meaning assigned to such term in Section 7.01. 

“Excluded Accounts” means (a) each Deposit Account or Securities Account of any Loan Party that is used solely
(i) to pay payroll, employee wage and benefit payments, payroll taxes or other taxes, (ii) for escrow or trust purposes, (iii) for royalty suspense amounts or other third party funds, or (iv) as a zero balance account,
(b) other Deposit Accounts and Securities Accounts so long as the aggregate average daily balance in which (in each case determined for the most recently completed calendar month) 

  
 16 

 
does not at any time exceed $1,000,000 individually or $5,000,000 in the aggregate for all such Deposit Accounts and Securities Accounts referred to in this clause (b), and (c) any other
Deposit Account or Securities Account that is not required by the terms of the applicable RBL Credit Facility to be subject to a control agreement. 

“Excluded Property” means: 

(a) (i) greater than 65% of the outstanding Voting Equity Interests in any first-tier CFC or any first-tier Foreign Subsidiary Holding Company
and (ii) the outstanding Equity Interests in any Unrestricted Subsidiary; 
 (b) any interests in joint ventures and non-wholly-owned Subsidiaries which may not be pledged without the consent of one or more third parties other than any Subsidiary of the Borrower (after giving effect to Sections 9-406, 9-407, 9-408, 9-409 or other applicable provisions of the UCC); provided that, immediately upon the ineffectiveness, lapse or
termination of such prohibition or the granting of such third-party consent, such assets shall automatically constitute Collateral (but only to the extent such assets do not otherwise constitute Excluded Property hereunder); 

(c) any property to the extent the grant or maintenance of a Lien on such property is prohibited by any applicable Requirement of Law or would
require a consent not obtained of any Governmental Authority pursuant to applicable Requirements of Law (other than to the extent that such prohibition would be rendered ineffective pursuant to Sections 9-406,
9-407, 9-408, 9-409 or other applicable provisions of the UCC); provided that, immediately upon the ineffectiveness, lapse
or termination of such prohibition or the granting of such consent, such property shall automatically constitute Collateral (but only to the extent such assets do not otherwise constitute Excluded Property hereunder); 

(d) any property to the extent the grant or maintenance of a Lien on such property would reasonably be expected to result in material adverse
tax consequences to the Borrower or any Subsidiary of the Borrower, as reasonably determined by the Borrower and consented to by the Administrative Agent (such consent not to be unreasonably withheld or delayed); 

(e) any contract, instrument, lease, license, agreement or other document to the extent that the grant of a security interest therein would
result in a violation, breach, termination (or a right of termination) or default under such contract, instrument, lease, license, agreement or other document (other than to the extent such violation or breach, termination (or right of termination)
or default would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408, 9-409 or other applicable provisions of the
UCC); provided that, immediately upon the condition causing such violation, breach, termination (or right of termination) or default ceasing to exist (whether by ineffectiveness, lapse, termination or consent), such assets shall automatically
constitute Collateral (but only to the extent such assets do not otherwise constitute Excluded Property hereunder); 
 (f) motor vehicles,
aircraft, vessels and other assets subject to certificates of title, except to the extent a Lien therein can be perfected by the filing of a UCC financing statement; 

(g) the fee real property (including buildings, structures, fixtures, equipment and other improvements and appurtenances to such buildings,
structures, fixtures, equipment and other improvements, including sidewalks, utility pipes, conduits and lines, parking areas and roadways, and all modifications, additions or changes thereto) related to the Borrower’s Headquarters; 

(h) any right, title and interest in and to any Manufactured (Mobile) Home (as defined in the applicable Flood Laws); 

  
 17 

 (i) any right, title and interest in and to any Building (as defined in the applicable Flood
Laws);
 (j) all commercial leases in respect of office space; 

(k) all surface real estate, other than rights to use the surface (i) arising solely from rights in Oil and Gas Properties or
(ii) otherwise included in Oil and Gas Properties; 
 (l) all trademarks, service marks, logos,
know-how, seismic and other proprietary data or proprietary information and all other intellectual property, except to the extent a Lien therein can be perfected by the filing of a UCC financing statement;

 (m) commercial tort claims where the amount of damages claimed is less than $10,000,000 individually or in the aggregate; 

(n) all office equipment and supplies, including leases of office equipment (but excluding all books and records); and 

(o) any property as to which the Administrative Agent agrees (in consultation with the Borrower) that the costs of obtaining a security
interest in, or Lien on, such property, or perfection thereof, are excessive in relation to the value to the Secured Parties of the security interest to be afforded thereby. 

“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or
deducted from a payment to a Recipient, (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 Section 2.16(b)) or (ii) such Lender changes its lending office, except in each case to the extent
that, pursuant to Section 2.14, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender acquired the applicable interest in a Loan or Commitment or to such Lender
immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.14(f) and (d) any U.S. Federal withholding Taxes imposed under FATCA. 

“Existing Senior Notes” means, collectively: 

(a) the 4.10% Senior Notes due 2022 issued by the Borrower pursuant to the 2012 Indenture; 

(b) the 4.95% Senior Notes due 2025 issued by the Borrower pursuant to the 2015 Indenture; 

(c) the 7.75% Senior Notes due 2027 issued by the Borrower pursuant to the 2017 Indenture; 

(d) the 8.375% Senior Notes due 2028 issued by the Borrower pursuant to the 2017 Indenture; 

(e) the 5.375% Senior Notes due 2029 issued by Indigo Natural Resources pursuant to the Indigo Indenture; 

  
 18 

 (f) the 5.375% Senior Notes due 2029 issued by the Borrower pursuant to the 2021 Indenture;

 (g) the 5.375% Senior Notes due 2030 issued by the Borrower pursuant to the 2021 Indenture; and 

(h) the 4.75% Senior Notes, due 2032, issued by the Borrower pursuant to the 2021 Indenture. 

“Existing Senior Notes Indentures” means, collectively: 

(a) that certain Indenture, dated as of March 5, 2012, between the Borrower, SEECO, Inc., Southwestern Energy Production Company,
Southwestern Energy Services Company and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented by the First Supplemental Indenture, dated as of November 29, 2017, between the Borrower and The Bank of New York Mellon Trust
Company, N.A., as trustee, as further supplemented by the Second Supplemental Indenture, dated as of April 26, 2018, between the Borrower, the guarantors thereto and The Bank of New York Mellon Trust Company, N.A., as trustee, as further
supplemented by the Third Supplemental Indenture, dated as of September 17, 2018, between the Borrower, the guarantors thereto and The Bank of New York Mellon Trust Company, N.A., as trustee, as further supplemented by the Fourth Supplemental
Indenture, dated as of December 10, 2020, between the Borrower, the guarantors thereto and The Bank of New York Mellon Trust Company, N.A., as trustee and as further supplemented by the Fifth Supplemental Indenture, dated as of
September 10, 2021, among the Borrower, the guarantors named therein and the Bank of New York Mellon Trust Company, N.A., as trustee (the “2012 Indenture”); 

(b) that certain Indenture, dated as of January 23, 2015, between the Borrower and U.S. Bank National Association, as trustee, as
supplemented by the First Supplemental Indenture, dated as of January 23, 2015, between the Borrower and U.S. Bank National Association, as trustee, as further supplemented by the Second Supplemental Indenture, dated as of September 25,
2017, among the Borrower and U.S. Bank National Association, as trustee, as further supplemented by the Third Supplemental Indenture, dated as of November 29, 2017, among the Borrower and U.S. Bank National Association, as trustee, as further
supplemented by the Fourth Supplemental Indenture, dated as of April 26, 2018, among the Borrower, the guarantors thereto and U.S. Bank National Association, as trustee, as further supplemented by the Fifth Supplemental Indenture, dated as of
December 3, 2018, among the Borrower, the guarantors thereto and U.S. Bank National Association, as trustee, as further supplemented by the Sixth Supplemental Indenture, dated as of December 10, 2020, among the Borrower, the guarantors
thereto and Regions Bank, as successor trustee and as further supplemented by the Seventh Supplemental Indenture, dated as of September 10, 2021, among the Borrower, the guarantors thereto and Regions Bank, as trustee (the “2015
Indenture”); 
 (c) that certain Indenture, dated as of September 25, 2017, between the Borrower and U.S. Bank National
Association, as trustee, as supplemented by the First Supplemental Indenture, dated as of September 25, 2017, between the Borrower and U.S. Bank National Association, as trustee, as further supplemented by the Second Supplemental Indenture,
dated as of April 26, 2018, among the Borrower, the guarantors thereto and U.S. Bank National Association, as trustee, as further supplemented by the Third Supplemental Indenture, dated as of December 3, 2018, among the Borrower, the
guarantors thereto and U.S. Bank National Association, as trustee, as further supplemented by the Fourth Supplemental Indenture, dated as of August 27, 2020, among the Borrower, the guarantors thereto and U.S. Bank National Association, as
trustee, as further supplemented by the Fifth Supplemental Indenture, dated as of December 10, 2020, among the Borrower, the guarantors thereto and U.S. Bank National Association, as trustee, as further supplemented by the Sixth Supplemental
Indenture, dated as of August 30, 2021, among the Borrower, the guarantors thereto and U.S. Bank National Association, as trustee and as further supplemented by the Seventh Supplemental Indenture, dated as of September 10, 2021, among the
Borrower, the guarantors thereto and U.S. Bank National Association, as trustee (the “2017 Indenture”); 

  
 19 

 (d) that certain Indenture, dated as of August 30, 2021, between the Borrower and
Regions Bank, as trustee, as supplemented by the First Supplemental Indenture, dated as of August 30, 2021, among the Borrower, the guarantors party thereto and Regions Bank, as trustee, as further supplemented by the Second Supplemental
Indenture, dated as of September 3, 2021, among the Borrower, the security guarantors thereto and Regions Bank, as trustee, as further supplemented by the Third Supplemental Indenture, dated as of September 10, 2021, among the Borrower,
the guarantors named thereto and Regions Bank, as trustee and as further supplemented by the Fourth Supplemental Indenture, dated as of December 22, 2021, among the Borrower, the guarantors party thereto and Regions Bank, as trustee (the
“2021 Indenture”); and 
 (e) the Indigo Indenture. 

“FATCA” means Sections 1471 through 1474 of the 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 agreement entered into pursuant to Section 1471(b)(1) of the Code and any
fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implements such Sections of the Code. 

“Federal Funds Effective Rate” means, for any day, the rate calculated by the NYFRB based on such day’s federal funds
transactions by depository institutions, as determined in such manner as shall be set forth on the NYFRB’s Website from time to time, and published on the next succeeding Business Day by the NYFRB as the effective federal funds rate;
provided that if the Federal Funds Effective Rate as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement. 

“Federal Reserve Bank of New York’s Website” or “NYFRB’s Website”
means the website of the NYFRB at http://www.newyorkfed.org, or any successor source. 
 “Financial Officer” means the
chief financial officer, chief accounting officer, treasurer or controller or any senior vice president in charge of treasury and/or accounting of the Borrower. 

“Fiscal Quarter” means a fiscal quarter of the Borrower, ending on the last day of each March, June, September and December.

 “Fiscal Year” means a fiscal year of the Borrower, ending on December 31 of each year. 

“Five-Year Strip Price” means, as of any date of determination, (a) for the sixty (60) month period commencing with
the month in which such date occurs, as quoted on the New York Mercantile Exchange (the “NYMEX”) and published in a nationally recognized publication for such pricing as selected by the Administrative Agent (as such prices may be
corrected or revised from time to time by the NYMEX in accordance with its rules and regulations), the corresponding monthly quoted futures contract price for months 0–60 and (b) for periods after such sixty (60) month period, the
average corresponding monthly quoted futures contract price for months 49–60; provided that (i) in the event that the NYMEX no longer provides futures contract price quotes for sixty (60) month periods, the longest period of
quotes of less than sixty (60) months shall be used and (ii) if the NYMEX no longer provides such futures contract quotes or has ceased to operate, the Administrative Agent shall, in consultation with the Borrower, designate another
nationally recognized commodities exchange to replace the NYMEX for purposes of the references to the NYMEX in this definition. 

  
 20 

 “Flood Laws” means (a) the National Flood Insurance Act of 1994 (which
comprehensively revised the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973) as now or hereafter in effect or any successor statute thereto, (b) the Flood Insurance Reform Act of 2004 as now or hereafter in
effect or any successor statute thereto, (c) the Biggert-Waters Flood Insurance Reform Act of 2012 as now or hereafter in effect or any successor statute thereto, and (d) all other applicable Requirements of Law relating to policies and
procedures that address requirements placed on federally regulated lenders relating to flood matters, in each case, as now or hereafter in effect or any successor statute thereto. 

“Floor” means the benchmark rate floor, if any, provided in this Agreement initially (as of the execution of this Agreement,
the modification, amendment or renewal of this Agreement or otherwise) with respect to the Adjusted Term SOFR Rate or the Adjusted Daily Simple SOFR, as applicable. For the avoidance of doubt the initial Floor for each of the Adjusted Term SOFR Rate
and the Adjusted Daily Simple SOFR shall be 0.50%. 
 “Foreign Lender” means (a) if the Borrower is a U.S. Person, a
Lender that is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes. 

“Foreign Subsidiary” means any Subsidiary of the Borrower other than a Domestic Subsidiary. 

“Foreign Subsidiary Holding Company” means any Subsidiary substantially all of the assets of which are Equity Interests (or
equity and debt interests) in a CFC so long as such Subsidiary does not conduct any business or activity other than the ownership of such equity or debt and does not incur, and is not otherwise liable for, any indebtedness or other liabilities. 

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

“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. 
 “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and
including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or to purchase (or to advance or supply funds for the purchase of) any security
for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness of the payment thereof, (c) to maintain working capital, equity capital or any other financial
statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness;
provided that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business. 

“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes
or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law. 

  
 21 

 “Hedge
Mark-to-Market Value” means, as of any date of determination, the net mark-to market value of the Loan Parties’
Swap Agreements and, to the extent Hedge Mark-to-Market Value is being calculated in connection with the incurrence of any Qualifying Acquisition Indebtedness, the Swap
Agreements applicable to the Qualifying Acquisition Properties that the Borrower expects to become an obligation of the Borrower or any other Loan Party upon closing of the applicable acquisition, in each case in respect of commodities then in
effect, the notional volumes for which are intended to cover the reasonably anticipated projected production of Hydrocarbons from the Proved Reserves of the Loan Parties and the Qualifying Acquisition Properties to be acquired by the Borrower or any
of its Restricted Subsidiaries pursuant to such acquisition. 
 “Hydrocarbon Interests” 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, overriding royalty and royalty interests, net profit interests and production
payment interests, including any reserved or residual interests of whatever nature and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to any of the foregoing interests. Unless otherwise expressly
provided herein, all references in this Agreement to “Hydrocarbon Interests” refer to Hydrocarbon Interests owned at the time in question by the Loan Parties. 

“Hydrocarbons” means all 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 of any
Person, including all oil in tanks. 
 “Incremental Amendment” has the meaning assigned to such term in
Section 2.18(c). 
 “Incremental Amount Date” has the meaning assigned to such term in
Section 2.18(c). 
 “Incremental Commitments” has the meaning assigned to such term in
Section 2.18(a). 
 “Incremental Equivalent Indebtedness” means one or more series of senior
unsecured term loans, senior secured first lien or junior lien term loans, or subordinated (secured or unsecured) term loans, in each case constituting Pari Passu Lien Incremental Indebtedness, Junior Lien Incremental Indebtedness, unsecured
Indebtedness or Indebtedness not secured by the Collateral, which Indebtedness is incurred by a Loan Party in lieu of Incremental Commitments and/or Incremental Loans pursuant to a loan agreement, credit agreement or otherwise; provided that
(i) the aggregate principal amount of any Incremental Equivalent Indebtedness incurred or issued pursuant to this Agreement (and commitments in respect thereof) shall not, together with the aggregate principal amount of any Incremental
Commitments and/or Incremental Loans incurred or issued substantially simultaneously with such Incremental Equivalent Indebtedness, exceed the Available Incremental Amount at the time of incurrence or issuance thereof, (ii) such Incremental
Equivalent Indebtedness shall not be subject to any Guarantee by any Person other than a Loan Party (or a Person who becomes a Loan Party), (iii) the optional prepayment or redemption provisions and the interest rate (including margin and floors)
applicable to any such Incremental Equivalent Indebtedness will be determined by the Borrower and the Persons providing such Incremental Equivalent Indebtedness; provided that, with respect to any Incremental Equivalent Indebtedness
constituting term loans that are Pari Passu Lien Incremental Indebtedness that would be permitted to be incurred as an Incremental Loan pursuant to Section 2.18, the MFN Provisions (including, for the avoidance of doubt,
all exclusions set forth therein) shall apply to the incurrence of such Incremental Equivalent Indebtedness as if such Incremental Equivalent Indebtedness was Incremental Loans incurred hereunder, (iv) in the case of Incremental Equivalent
Indebtedness that is secured, (A) the obligations in respect thereof shall not be secured by any Lien on any asset of the Borrower or any Restricted Subsidiary other than any asset 

  
 22 

 
constituting Collateral (unless such Incremental Equivalent Indebtedness is only secured by assets not constituting Collateral) and (B) such Incremental Equivalent Indebtedness
(x) constituting Pari Passu Lien Incremental Indebtedness shall be subject to the Pari Passu Intercreditor Agreement and (y) constituting Junior Lien Incremental Indebtedness shall be subject to a Junior Lien Intercreditor Agreement,
(v) immediately after the incurrence of such Indebtedness, no Event of Default exists, provided that with respect to any incurrence of Incremental Equivalent Indebtedness the purpose of which is to finance a permitted Investment or
Permitted Acquisition, this condition may be waived or omitted in full or in part by lenders holding more than 50% of the applicable aggregate commitments in respect of such Indebtedness, (vi) no Incremental Equivalent Indebtedness shall mature
earlier than the Latest Maturity Date (as of the time of incurrence of such Incremental Equivalent Indebtedness), (vii) no Incremental Equivalent Indebtedness shall have a Weighted Average Life to Maturity of less than the Weighted Average Life to
Maturity as then in effect for any Loans outstanding as of the time of incurrence of such Incremental Equivalent Indebtedness (prior to any extension thereto), (viii) any Incremental Equivalent Indebtedness (to the extent pari passu in right
of payment with, and secured by all or a portion of the Collateral on a pari passu basis with, the Secured Obligations) may provide for the ability to participate on a pro rata basis or less than pro rata basis in any mandatory
repayments or prepayments of principal of Term Loans hereunder, (ix) Section 2.18(b)(vii) shall apply to the incurrence of such Incremental Equivalent Indebtedness as if such Incremental Equivalent Indebtedness was
Incremental Loans incurred under Section 2.18, and (x) if such Incremental Equivalent Indebtedness constitutes Ratio-Based Incremental Indebtedness, prior to the incurrence of such Indebtedness, the Borrower shall have
delivered to the Administrative Agent a Term Loan Incurrence Engineering Report. 
 “Incremental Facility Closing Date” has
the meaning assigned to such term in Section 2.18(c). 
 “Incremental Loans” has the meaning
assigned to such term in Section 2.18(a). 
 “Indebtedness” of any Person means, without
duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person under conditional sale or other
title retention agreements related to Property acquired by such Person, (d) all obligations of such Person in respect of the deferred purchase price of Property or services (excluding current accounts payable incurred in the ordinary course of
business), (e) all Indebtedness of others secured by any Lien on Property owned by such Person, whether or not the Indebtedness secured thereby has been assumed (provided that the amount of such Indebtedness on any date of determination will be the
lesser of (x) the book value of such Property at such date of determination and (y) the amount of such Indebtedness of such other Person), (f) all Guarantees by such Person of Indebtedness of others, (g) all Capital Lease Obligations
of such Person, (h) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty, (i) all obligations, contingent or otherwise, of such Person in respect of
bankers’ acceptances, (j) the undischarged balance of any production payment created by such Person or for the creation of which such Person directly or indirectly received payment and (k) all Disqualified Stock of such Person. The
Indebtedness of any Person (i) shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership
interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor, and (ii) shall not include (A) endorsements of checks, bills of exchange and other
instruments for deposit or collection in the ordinary course of business, (B) any Indebtedness that has been defeased in accordance with GAAP or defeased pursuant to the deposit of cash or United States government bonds (in an amount sufficient
to satisfy all obligations relating to such Indebtedness at maturity or redemption, as applicable, and all payments of interest and premium, if any) in a trust or account created or pledged for the sole benefit of the holders of such Indebtedness
(and subject to no other Liens) in accordance with the applicable terms of the instrument governing such 

  
 23 

 
Indebtedness, but only to the extent that such defeasance has been made in a manner not prohibited by this Agreement or (C) the aggregate principal amount of Indebtedness permitted to be
incurred hereunder to the extent that the net cash proceeds thereof (1) are required to be placed in escrow pending consummation of a specified transaction, (2) are held in a segregated escrow account and (3) have not been released to
the account of the Borrower or any of its Restricted Subsidiaries or for the benefit of the Borrower or any of its Restricted Subsidiaries. 

“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 Loan Party under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes. 

“Indemnitee” has the meaning assigned to such term in Section 9.03(b). 

“Indigo Indenture” means that certain Indenture, dated as of February 2, 2021, among Indigo Natural Resources, the
guarantors named therein and Wells Fargo Bank, National Association, as trustee, as supplemented by the First Supplemental Indenture, dated as of August 26, 2021, among Indigo Natural Resources, the guarantors named therein and Wells Fargo
Bank, National Association, as trustee. 
 “Indigo Natural Resources” means Indigo Natural Resources LLC, a Delaware
limited liability company. 
 “Ineligible Institution” has the meaning assigned to such term in
Section 9.04(b). 
 “Information” has the meaning assigned to such term in
Section 9.12. 
 “Initial Interest Period” has the meaning assigned to such term in the
definition of “Interest Period”.  
 “Initial Loans” has the meaning assigned to such term in
Section 2.01. 
 “Initial Mortgages” has the meaning assigned to such term in
Section 4.01(a)(vi). 
 “Initial Reserve Report” means, collectively, (a) that certain
engineering report concerning the Oil and Gas Properties of the Borrower and its Subsidiaries as of July 1, 2021, prepared by petroleum engineers who are employees of the Borrower and (b) that certain engineering report concerning the Oil
and Gas Properties of GEP Haynesville, LLC as of July 1, 2021, rolled forward to September 30, 2021 and based on the applicable Five-Year Strip Price as of December 7, 2021. 

“Interest Election Request” means a request by the Borrower to convert or continue a Borrowing which, if in writing, is
substantially in the form attached hereto as Exhibit E-2. 
 “Interest Payment
Date” means (a) with respect to any ABR Loan, the last day of each March, June, September and December and the Maturity Date, (b) with respect to any Term Benchmark Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Term Benchmark 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 Maturity Date and (c) with respect to any RFR Loan, each date that is on the numerically corresponding day in each calendar month that is one month after the Borrowing of
such Loan (or, if there is no such numerically corresponding day in such month, then the last day of such month) and the applicable Maturity Date. 

  
 24 

 “Interest Period” means (a) with respect to any Initial Loans
constituting Term Benchmark Borrowings, the period commencing the Effective Date and ending on March 31, 2022 (such period, the “Initial Interest Period”) and (b) thereafter for any Term Benchmark 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 (in each case under this clause (b), subject to the availability for the Benchmark applicable
to the relevant Loan or Commitment), as the Borrower may elect; provided, that (i) 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, (ii) any Interest Period 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 and (iii) no tenor that has been removed from
this definition pursuant to Section 2.11(e) shall be available for specification in such Borrowing Request or Interest Election Request. For purposes hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made. 
 “Investment” means, as applied to any Person, any direct or indirect (a) purchase or other
acquisition (including pursuant to any merger or consolidation with any Person) of any Equity Interests, evidences of Indebtedness or other securities of any other Person, (b) loan or advance made by such Person to any other Person,
(c) Guarantee, assumption or other incurrence of liability by such Person of or for any Indebtedness of any other Person, (d) capital contribution or other investment by such Person in any other Person or (e) purchase or other
acquisition (in one transaction or a series of transactions) of any assets of any other Person constituting a business unit. 

“IRS” means the United States Internal Revenue Service. 

“January 1 Reserve Report” has the meaning assigned to such term in
Section 5.15(a). 
 “Joint Lead Arranger” means each of JPMorgan, Citigroup Global Markets Inc.,
BofA Securities, Inc., Wells Fargo Securities, LLC, RBC Capital Markets, LLC, Mizuho Bank, Ltd., MUFG Bank, Ltd., Regions Capital Markets, a division of Regions Bank, Truist Bank, and PNC Bank, National Association and, collectively, the
“Joint Lead Arrangers.” 
 “JPMorgan” means JPMorgan Chase Bank, N.A. 

“Junior Lien Incremental Indebtedness” means any Indebtedness that is secured by Liens on assets that include all or
part of the Collateral that have a priority junior to the Liens on the Collateral securing the Initial Loans. 
 “Junior Lien
Intercreditor Agreement” means, with respect to any Permitted Junior Lien Term Loan Indebtedness, Junior Lien Incremental Indebtedness or any other permitted junior lien Indebtedness, an intercreditor agreement, in form and substance
reasonably satisfactory to the Administrative Agent and the Borrower, that contains terms and conditions that are within the range of terms and conditions customary for intercreditor agreements that are of the type that govern intercreditor
relationships between holders of senior secured credit facilities and holders of the same type of Indebtedness as such Permitted Junior Lien Term Loan Indebtedness, Junior Lien Incremental Indebtedness and/or other junior lien Indebtedness, as
reasonably determined by the Administrative Agent and the Borrower. 
 “Knowledge” means, with respect to the Borrower, the
actual knowledge of any Authorized Officer. 

  
 25 

 “Latest Maturity Date” means, at any date of determination, the latest
maturity or expiration date applicable to any Loan or Commitment hereunder at such time, including the latest maturity or expiration date of any Initial Loan, any Incremental Commitment or any Incremental Loan, in each case at such time. 

“LCT Election” has the meaning assigned to such term in Section 1.07. 

“LCT Test Date” has the meaning assigned to such term in Section 1.07. 

“Lender Parent” means, with respect to any Lender, any Person as to which such Lender is, directly or indirectly, a
Subsidiary. 
 “Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall have become a
Lender hereunder pursuant to an Assignment and Assumption, an Incremental Amendment or other documentation contemplated hereby, in each case other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption or
other documentation contemplated hereby. 
 “Letters of Credit” means (a) any “Letter of Credit” (as defined
in the RBL Credit Agreement) and (b) after termination of the RBL Credit Agreement, any other letters of credit issued under any RBL Credit Facility. 

“Liabilities” means any losses, claims (including intraparty claims), demands, damages or liabilities of any kind. 

“Lien” means, with respect to any Property, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance,
charge in the nature of a security interest or security interest in, on or of such Property, (b) the interest of a vendor or a lessor under any conditional sale agreement, lease or title retention agreement (or any financing lease having
substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities. 

“Limited Condition Transaction” means (a) any Permitted Acquisition or other Investment or similar transaction (whether
by merger, amalgamation, consolidation or other business combination or the acquisition of capital stock or otherwise) whose consummation is not conditioned on the availability of, or on obtaining, third party financing, (b) any redemption,
repurchase, defeasance, satisfaction and discharge or repayment of Indebtedness, in each case, requiring irrevocable notice in advance of such redemption, repurchase, defeasance, satisfaction and discharge or repayment and/or (c) any Restricted
Payment requiring irrevocable notice in advance thereof. 
 “Loan” means an Initial Loan or an Incremental Loan. 

“Loan Documents” means this Agreement, the Notes (if any), the Collateral Documents, the Pari Passu Intercreditor Agreement,
the Subsidiary Guaranty, and all other agreements, instruments and certificates now or hereafter executed and delivered by any Loan Party to, or in favor of, the Administrative Agent, the Collateral Agent or any Lender pursuant to or in connection
with any of the foregoing. Any reference in this Agreement or any other Loan Document to a Loan Document shall include all appendices, exhibits or schedules thereto, and all amendments, restatements, waivers, supplements or other modifications
thereto. 
 “Loan Increase” has the meaning assigned to such term in Section 2.18(a). 

  
 26 

 “Loan Parties” means, collectively, the Borrower and each Subsidiary
Guarantor (if any), and “Loan Party” means any one of them. 
 “Margin Stock” has the meaning given such
term in Regulation U. 
 “Material Acquisition” means any acquisition (or series of related acquisitions) of any Property
by the Borrower or any Restricted Subsidiary the fair market value (as determined by the Borrower in good faith) of which, or the consideration paid for which, is equal to or greater than $50,000,000. 

“Material Adverse Effect” means a material adverse effect on (a) the business, Property, financial condition or results
of operations of the Borrower and its Restricted Subsidiaries, taken as a whole, (b) the ability of the Loan Parties to fully and timely pay the Secured Obligations when due or (c) the validity or enforceability of any of the Loan
Documents or the rights or remedies of the Administrative Agent or the Lenders thereunder. 
 “Material Disposition” means
any Disposition (or series of related Dispositions) of any Property by the Borrower or any Restricted Subsidiary that involves the receipt of consideration in an amount equal to or greater than $50,000,000. 

“Material Domestic Subsidiary” means, as of any date of determination, any Domestic Restricted Subsidiary that owns or holds
Properties (including Oil and Gas Properties) with an aggregate book value greater than five percent (5%) of the aggregate book value of all of the Properties (including Oil and Gas Properties) of the Borrower and the Restricted Subsidiaries, on a
consolidated basis as of the end of the most recently ended Fiscal Quarter for which a consolidated balance sheet of the Borrower and its Subsidiaries is available immediately prior to such date of determination; provided that if, as a result
of any acquisition, any Domestic Restricted Subsidiary would qualify as a Material Domestic Subsidiary if such acquisition is given pro forma effect as if it occurred on the last day of the most recently ended Fiscal Quarter for which a consolidated
balance sheet of the Borrower and its Subsidiaries is available, then such Domestic Restricted Subsidiary shall be deemed to be a Material Domestic Subsidiary as of the date of such acquisition; provided, further, that if at any time
the aggregate book value of all Properties (including Oil and Gas Properties) attributable to all Domestic Restricted Subsidiaries that are not Subsidiary Guarantors exceeds ten percent (10%) of the aggregate book value of all of the Properties
(including Oil and Gas Properties) of the Borrower and the Restricted Subsidiaries on a consolidated basis as of the end of the most recently ended Fiscal Quarter for which a consolidated balance sheet of the Borrower and its Subsidiaries is
available immediately prior to such date of determination, the Borrower shall designate sufficient additional Domestic Restricted Subsidiaries as “Material Domestic Subsidiaries” to eliminate such excess, and such designated Subsidiaries
shall for all purposes of this Agreement constitute Material Domestic Subsidiaries (and, if the Borrower fails to make such designation within ten (10) Business Days after the delivery of such consolidated balance sheet to the Administrative
Agent, additional Domestic Restricted Subsidiaries shall be deemed designated as “Material Domestic Subsidiaries” to eliminate such excess, with such designation to be made to such Domestic Restricted Subsidiaries in descending order based
on the aggregate book value of their Properties (including Oil and Gas Properties)). 
 “Material Indebtedness” means
Indebtedness (other than the Loans), 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 $100,000,000. For purposes of determining
Material Indebtedness, 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 maximum aggregate amount (giving effect to any netting agreements) that
the Borrower or such Restricted Subsidiary would be required to pay if such Swap Agreement were terminated at such time. 

  
 27 

 “Material Intellectual Property” means intellectual property owned by the
Borrower and its Restricted Subsidiaries that is material to the ability of the Borrower and its Restricted Subsidiaries (taken as a whole) to operate their businesses and generate a material portion of their consolidated revenue. 

“Maturity Date” means (a), with respect to the Initial Loans, the Scheduled Maturity Date and (b) with respect to any
Incremental Loan, the final maturity date as specified in the applicable Incremental Amendment. 
 “Maximum Rate” has the
meaning assigned to such term in Section 9.16. 
 “MFN Provisions” has the meaning assigned to
such term in Section 2.18(b)(v). 
 “Moody’s” means Moody’s Investors Service, Inc., or
any successor to the ratings agency business thereof. 
 “Mortgage” means each of the mortgages, deeds of trust or other
real property security documents encumbering any Oil and Gas Properties or other real property executed by the Borrower or any of the other Loan Parties for the benefit of the Secured Parties as security for the Secured Obligations (including the
Initial Mortgages and the Post-Effective Date Mortgages), in each case, to be in form and substance reasonably satisfactory to the Administrative Agent, and “Mortgages” means all of such Mortgages collectively. 

“Mortgaged Property” means any Oil and Gas Property or other Property owned by any Loan Party which is subject to a Lien
under any Mortgage. 
 “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA as to
which the Borrower, any of its Subsidiaries or any member of the Controlled Group has or could have any liability. 
 “Mustang
Merger” means the acquisition of GEP Haynesville, LLC, directly or indirectly, by the Borrower pursuant to that certain Agreement and Plan of Merger, dated as of November 4, 2021 (the “Mustang Merger Agreement”), among
the Borrower, Mustang Acquisition Company, LLC, a Delaware limited liability company, GEP Haynesville, LLC and GEP Unitholder Rep, LLC, in its capacity as the representative of the Holders referred to therein. 

“Mustang Merger Agreement” has the meaning assigned to such term in the definition of “Mustang Merger”. 

“Mustang Merger Deadline” means March 31, 2022. 

“Net Proceeds” means, with respect to any event, (a) the cash proceeds received in respect of such event including
(i) any cash received in respect of any non-cash proceeds (including any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price
adjustment receivable or otherwise, but excluding any interest payments), but only as and when received, (ii) in the case of a Casualty Event, insurance proceeds, condemnation awards and similar payments, minus (b) the sum of
(i) all fees and out-of-pocket expenses paid to third parties in connection with such event, (ii) in the case of a sale, transfer or other Disposition of an
asset (including pursuant to a Sale and Leaseback transaction or a Casualty Event), the amount of all payments required to be made as a result of such event to repay Indebtedness (other than Loans, Incremental Equivalent Indebtedness and any other
Indebtedness secured by a Lien that is pari passu with or expressly subordinated to the Lien on the Collateral securing the Secured Obligations) secured by such asset or otherwise subject to mandatory

  
 28 

 
prepayment as a result of such event, (iii) the amount of all taxes paid (or reasonably estimated to be payable) and the amount of any reserves established to fund contingent liabilities
reasonably estimated to be payable, in each case attributable to such event (as determined reasonably and in good faith by a Financial Officer), and (iv) in the case of any Disposition or Casualty Event by a Restricted Subsidiary that is a
joint venture or other Restricted Subsidiary that is not a Wholly-Owned Subsidiary, the pro rata portion of the Net Proceeds thereof (calculated without regard to this clause (iv)) attributable to the minority interests and not available for
distribution to or for the account of the Borrower or a Restricted Subsidiary that is a Wholly-Owned Restricted Subsidiary as a result thereof. 

“Non-Consenting Lender” has the meaning assigned to such term in
Section 9.02(f). 
 “Note” means a promissory note made by the Borrower in favor of a Lender
evidencing the Loans made by such Lender, substantially in the form of Exhibit B. 
 “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; provided, 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. 

“OFAC” means the Office of Foreign Assets Control of the U.S. Department of the Treasury. 

“OID” means original issue discount. 

“Oil and Gas Business” means (i) the acquisition, exploration, development, production, operation and disposition of
interests in oil, gas and other Hydrocarbon properties, (ii) the gathering, marketing, treating, processing (but not refining), storage, selling and transporting of any production from such interests or properties, (iii) any business
relating to exploration for or development, production, treatment, processing (but not refining), storage, transportation or marketing of oil, gas and other minerals and products produced in association therewith, (iv) any business or activity
related to the acquisition or transfer of carbon offset credits or any business or activity related to the abatement, capture or sequester of greenhouse gas emissions generated from drilling, completion, production, gathering, transportation,
treating, processing, storage or transportation of Hydrocarbons and (v) any activity that is ancillary to or necessary or appropriate for the activities described in clauses (i) through (iv) of this definition. 

“Oil and Gas Properties” means (a) Hydrocarbon Interests, (b) the properties now or hereafter pooled or unitized
with Hydrocarbon Interests, (c) all presently existing or future unitization, communitization, pooling agreements and declarations of pooled units and the units created thereby (including 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, production sales or other contracts, farmout agreements, farm-in agreements,
area of mutual interest agreements, equipment leases and other agreements, including production sharing contracts and agreements, which relate to any of the Hydrocarbon Interests or any interests therein or to the production, transportation, 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 Hydrocarbon Interests, (f) all tenements, hereditaments, appurtenances and properties in any manner appertaining, belonging, affixed or
incidental to the Hydrocarbon Interests, including all compressor sites, settling ponds and equipment or pipe yards and (g) all properties, rights, titles, interests and estates 

  
 29 

 
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 oil wells, gas wells, injection wells or other wells, structures, fuel separators, liquid extraction plants, plant compressors, pumps, pumping units, field gathering
systems, gas processing plants and pipeline systems, power and cogeneration facilities and any related infrastructure to any thereof, tanks and tank batteries, fixtures, valves, fittings, machinery and parts, engines, boilers, steam generation
facilities, meters, apparatus, equipment, appliances, tools, implements, cables, wires, towers, casing, tubing and rods, surface leases, 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. Unless otherwise expressly provided, all references herein to
“Oil and Gas Properties” means Oil and Gas Properties of the Borrower and the other Loan Parties. 
 “Organizational
Documents” means (a) with respect to any corporation, its certificate or articles of incorporation or organization and its by-laws, (b) with respect to any limited partnership, its
certificate of limited partnership and its partnership agreement, (c) with respect to any general partnership, its partnership agreement, and (d) with respect to any limited liability company, its certificate of formation or articles of
organization and its limited liability company agreement or operating agreement. 
 “Other Connection Taxes” 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 or Loan Document).

 “Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes
that arise 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, any Loan Document, except any such Taxes
that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.16). 

“Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal funds and overnight eurodollar
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); provided that if the Overnight Bank Funding Rate shall be less than zero, such rate shall be deemed to zero for the purposes of this
Agreement. 
 “Pari Passu Intercreditor Agreement” means that certain Pari Passu Intercreditor Agreement, dated as of the
Effective Date, by and among the Administrative Agent, the Collateral Agent, the RBL Administrative Agent, the other parties thereto from time to time and, for the limited purposes set forth therein, the Borrower, and acknowledged by the other Loan
Parties. 
 “Pari Passu Lien Incremental Indebtedness” means Indebtedness that is secured by Liens on assets that include
all or part of the Collateral that are pari passu in priority with the Liens on the Collateral securing the Initial Loans. 

  
 30 

 “Participant” has the meaning assigned to such term in
Section 9.04(c). 
 “Participant Register” has the meaning assigned to such term in
Section 9.04(c). 
 “Patriot Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)). 
 “Payment” has the meaning assigned to
it in Section 8.06(c). 
 “Payment Conditions” means, with respect to any applicable transaction,
after giving pro forma effect to such transaction, (a) the Total Leverage Ratio will not be greater than 3.25 to 1.00, (b) the Collateral Coverage Ratio determined as of the last day of the most recent Fiscal Quarter for which the applicable
Quarterly Engineering Report has been delivered or is required to be delivered pursuant to Section 5.15(d) (or, prior to the delivery of the first Quarterly Engineering Report, the Collateral Coverage Ratio calculated and
set forth in the certificate delivered pursuant to Section 4.01(a)(xvii)) will be equal to or greater than 2.00 to 1.00 and (c) no Default or Event of Default shall have occurred and be continuing immediately after giving effect to such
transaction. 
 “Payment in Full” means the principal of and interest on each Loan and all fees payable hereunder and all
other amounts payable under the Loan Documents (other than indemnities and other contingent obligations not then due and payable and as to which no claim has been made) shall have been paid in full in cash. 

“Payment Notice” has the meaning assigned to it in Section 8.06(c). 

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing
similar functions. 
 “Permitted Acquisition” means any Acquisition (other than an acquisition of assets pursuant to an
Asset Swap) by the Borrower or any Restricted Subsidiary if (a) at the time of and immediately after giving effect thereto and subject to Section 1.07, no Default or Event of Default has occurred and is continuing or
would result therefrom, (b) immediately after giving effect to such Acquisition, the Borrower and its Restricted Subsidiaries will be in compliance with Section 6.12, (c) all actions required to be taken with respect
to such acquired or newly formed Subsidiary under Section 5.10 shall have been taken or will be taken within the time periods set forth therein, and (d) if such Acquisition involves a merger or consolidation of the
Borrower or any Restricted Subsidiary with any other Person, such merger or consolidation is permitted under Section 6.01. 

“Permitted Acquisition Outside Date” has the meaning specified in Section 6.10(f). 

“Permitted Business Investments” means Investments made in the ordinary course of, and of a nature that is or shall have
become customary in, the Oil and Gas Business as a means of actively exploiting, exploring for, acquiring, developing, processing, gathering, marketing or transporting oil and gas through agreements, transactions, interests or arrangements which
permit one to share risks or costs, comply with regulatory requirements regarding local ownership or satisfy other objectives customarily achieved through the conduct of Oil and Gas Business jointly with third parties, including (i) ownership
interests in oil, natural gas, other Hydrocarbon properties or any interest therein or gathering, transportation, processing, storage or related systems, or sand mines or facilities, (ii) Investments in the form of or pursuant to operating
agreements, processing agreements, farm-in agreements, farmout agreements, developments agreements, area of mutual interest agreements, unitization agreements, pooling agreements, joint bidding agreements,
service contracts, joint venture agreements, partnership agreements (whether general or 

  
 31 

 
limited), subscription agreements, stock purchase agreements and other similar agreements (including for limited liability companies) with third parties, and (iii) direct or indirect
ownership interests or Investments in drilling rigs, fracturing units, oilfield tools or services, or equipment or services used to offset, reduce, capture, or sequester greenhouse gas emissions, and other related equipment and services or in
Persons that own or provide such equipment or services. 
 “Permitted Existing Indebtedness” means (a) Indebtedness of
the Borrower and its Restricted Subsidiaries existing as of the Effective Date and identified on Schedule 6.03 and (b) the Existing Senior Notes. 

“Permitted Junior Lien Term Loan Indebtedness” means Indebtedness in the form of junior lien secured term loans incurred by
the Borrower or any Subsidiary Guarantor; provided that (a) after giving pro forma effect to the incurrence of such Indebtedness (and the use of proceeds thereof), the Subject Debt Conditions shall be satisfied, (b) at the time of and
immediately after giving effect to the incurrence of such Indebtedness, no Default or Event of Default has occurred and is continuing or would result therefrom, (c) such Indebtedness (i) has a stated maturity that is no earlier than 91
days after the Scheduled Maturity Date and (ii) does not have any scheduled prepayment, amortization, redemption, sinking fund or similar obligations prior to the date that is 91 days after the Scheduled Maturity Date (except for
(A) customary mandatory prepayments or offers to prepay with proceeds of asset sales or casualty events or indebtedness not permitted thereunder or upon the occurrence of a change of control and (B) scheduled amortization no greater than
5% of the original principal amount of such Indebtedness per year), (d) such Indebtedness does not contain any financial maintenance covenants that are more restrictive than any financial maintenance covenant set forth in this Agreement,
(e) such Indebtedness is on terms, taken as a whole, not materially less favorable to the Borrower and its Restricted Subsidiaries than market terms for similar junior lien term loans for borrowers of similar size and credit quality given the
then prevailing market conditions, in each case as reasonably determined by the Borrower, (f) such Indebtedness is secured by Liens on all or a portion of the Collateral on a junior priority basis with the Liens on the Collateral securing the
Secured Obligations and is not secured by any assets of the Borrower or any Subsidiary other than the Collateral, (g) such Indebtedness is not Guaranteed by any Person other than the Loan Parties, (h) the administrative agent, collateral
agent, trustee and/or any similar representative acting on behalf of the holders of such Indebtedness shall have become party to a Junior Lien Intercreditor Agreement, providing that the Liens on the Collateral securing such Indebtedness shall rank
junior in priority to the Liens on the Collateral securing the Secured Obligations, (i) prior to the incurrence of such Indebtedness, the Borrower shall have delivered to the Administrative Agent a Term Loan Incurrence Engineering Report and
(j) immediately after giving pro forma effect to the incurrence of such Indebtedness (and the use of proceeds thereof), the Borrower shall not be required, pursuant to the terms of the Secured Debt Indenture Exceptions, to equally and ratably
secure any of its obligations in respect of the Senior Notes as a result of the incurrence of such Indebtedness, and the Administrative Agent shall have received evidence of compliance with this clause (j) in form and detail reasonably
satisfactory to the Administrative Agent. It is understood and agreed that, notwithstanding anything to the contrary herein, Permitted Junior Lien Term Loan Indebtedness may only be incurred and outstanding in reliance on Section 6.03(n). 

“Permitted Liens” has the meaning assigned to such term in Section 6.02. 

“Permitted Pari Term Loan Indebtedness” means Indebtedness in the form of senior secured term loans incurred by
the Borrower or any Subsidiary Guarantor; provided that (a) after giving pro forma effect to the incurrence of such Indebtedness (and the use of proceeds thereof), the Subject Debt Conditions shall be satisfied, (b) at the time of and
immediately after giving effect to the incurrence of such Indebtedness, no Default or Event of Default has occurred and is continuing or would result therefrom, (c) such Indebtedness (i) has a stated maturity that is no earlier than 91
days after the Scheduled Maturity Date and (ii) does not have any scheduled prepayment, amortization, redemption, sinking fund or similar 

  
 32 

 
obligations prior to the date that is 91 days after the Scheduled Maturity Date (except for (A) customary mandatory prepayments or offers to prepay with proceeds of asset sales or casualty
events or indebtedness not permitted thereunder or upon the occurrence of a change of control and (B) scheduled amortization no greater than 5% of the original principal amount of such Indebtedness per year), (d) such Indebtedness does not
contain any financial maintenance covenants that are more restrictive than any financial maintenance covenant set forth in this Agreement, (e) such Indebtedness is on terms, taken as a whole, not materially less favorable to the Borrower and
its Restricted Subsidiaries than market terms for similar senior secured term loans for borrowers of similar size and credit quality given the then prevailing market conditions, in each case as reasonably determined by the Borrower, (f) such
Indebtedness is secured by Liens on all or a portion of the Collateral on a pari passu basis with the Liens on the Collateral securing the Secured Obligations (it being understood that the determination as to whether such Liens are on a pari passu
basis shall be made without regard to control of remedies) and is not secured by any assets of the Borrower or any Subsidiary other than the Collateral, (g) such Indebtedness is not Guaranteed by any Person other than the Loan Parties,
(h) the administrative agent, collateral agent, trustee and/or any similar representative acting on behalf of the holders of such Indebtedness shall have become party to the Pari Passu Intercreditor Agreement, (i) prior to the incurrence
of such Indebtedness, the Borrower shall have delivered to the Administrative Agent a Term Loan Incurrence Engineering Report and (j) immediately after giving pro forma effect to the incurrence of such Indebtedness (and the use of proceeds
thereof), the Borrower shall not be required, pursuant to the terms of the Secured Debt Indenture Exceptions, to equally and ratably secure any of its obligations in respect of the Senior Notes as a result of the incurrence of such Indebtedness, and
the Administrative Agent shall have received evidence of compliance with this clause (j) in form and detail reasonably satisfactory to the Administrative Agent. It is understood and agreed that, notwithstanding anything to the contrary herein,
Permitted Pari Term Loan Indebtedness may only be incurred and outstanding in reliance on Section 6.03(n). 
 “Permitted
Refinancing Indebtedness” means Indebtedness (for purposes of this definition, “New Indebtedness”) incurred in exchange for, or the proceeds of which are used to extend, refinance, replace, defease, discharge, refund or
otherwise retire for value any other Indebtedness (other than Loans) (for purposes of this definition, the “Refinanced Indebtedness”); provided that (a) the aggregate principal amount (or accreted value, in the case of
Indebtedness issued with OID) of the New Indebtedness (including undrawn or available committed amounts) does not (except as otherwise permitted by Section 6.03) exceed the sum of (i) the aggregate principal amount (or accreted value, in
the case of Indebtedness issued with OID) of the Refinanced Indebtedness (including undrawn or available committed amounts), plus (ii) an amount necessary to pay all accrued (including, for purposes of defeasance, future accrued) and
unpaid interest on the Refinanced Indebtedness and any fees, premiums and expenses related to such exchange or refinancing, (b) the New Indebtedness has a stated maturity that is no earlier than 91 days after the Scheduled Maturity Date,
(c) the New Indebtedness has a Weighted Average Life to Maturity that is no shorter than the period beginning on the date of incurrence of the New Indebtedness and ending on the date that is 91 days after the Scheduled Maturity Date (except for
customary offers to purchase with proceeds of asset sales or upon the occurrence of a change of control), (d) the New Indebtedness does not contain any financial maintenance covenant that is more restrictive than any financial maintenance
covenant set forth in this Agreement, (e) the New Indebtedness is on terms, taken as a whole, not materially less favorable to the Borrower and its Restricted Subsidiaries than market terms for issuers of similar size and credit quality given
the then prevailing market conditions, as reasonably determined by the Borrower, (f) the New Indebtedness is not incurred or guaranteed by any Restricted Subsidiary that is not a Loan Party and (g) if the Refinanced Indebtedness (or any
guarantees thereof) is subordinated in right of payment to the Secured Obligations (or the guarantees under the Subsidiary Guaranty), the New Indebtedness (and any guarantees thereof) is subordinated in right of payment to the Secured Obligations
(or the guarantees under the Subsidiary Guaranty) to at least the same extent as the Refinanced Indebtedness. 

  
 33 

 “Permitted Unsecured Notes” means unsecured Indebtedness in the form of
unsecured senior or senior subordinated notes issued by the Borrower or any Subsidiary Guarantor pursuant to Section 6.03(q). 

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company,
partnership, Governmental Authority or other entity. 
 “Petroleum Industry Standards” means the Definitions for Oil and
Gas Reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question. 

“Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV
of ERISA or Section 412 of the Code or Section 302 of ERISA as to which the Borrower, any of its Subsidiaries or any member of the Controlled Group (i) may be or be deemed to be an “employer” as defined in Section 3(5)
of ERISA or (ii) has or could have any liability. 
 “Post-Effective Date Mortgages” has the meaning assigned to such
term in Section 5.12(a). 
 “Prepayment Event” means: 

(a) any sale, transfer or other Disposition (including pursuant to a Sale and Leaseback Transaction) of any property or asset
of the Borrower or any Restricted Subsidiary made pursuant to Section 6.08(a); 
 (b) any Casualty
Event; or 
 (c) the incurrence by the Borrower or any Restricted Subsidiary of any Indebtedness, other than Indebtedness
permitted under Section 6.03. 
 “Prime Rate” has the meaning assigned to such term within the
definition of “Alternate Base Rate.” 
 “Pro Forma Collateral Coverage Ratio Compliance” means, as of any date of
determination, with respect to any transaction to occur on such date, the Collateral Coverage Ratio, determined as of the last day of the most recent Fiscal Quarter for which the applicable Quarterly Engineering Report has been delivered or is
required to be delivered pursuant to Section 5.15(d) (or, prior to the delivery of the first Quarterly Engineering Report, the Collateral Coverage Ratio calculated and set forth in the certificate delivered pursuant to
Section 4.01(a)(xvii)), after giving pro forma effect to such transaction (including the use of proceeds of any applicable Indebtedness), is not less than the required amount set forth in Section 6.04. 

“Property” of a Person means any and all property, whether real, personal, tangible, intangible or mixed, of such Person, or
other assets owned or leased by such Person. 
 “Proved Developed Producing Reserves” means oil and gas reserves that, in
accordance with Petroleum Industry Standards, are defined and classified as “Proved Developed Producing Reserves”. 

“Proved Oil and Gas Properties” means Oil and Gas Properties of the Loan Parties to which Proved Reserves are attributed in
the Reserve Report most recently delivered at the time in question. 

  
 34 

 “Proved Reserves” means oil and gas reserves that, in accordance with
Petroleum Industry Standards, are defined and classified as “Proved Reserves”, which include the following: (a) “Proved Developed Producing Reserves”, (b) “Proved Developed
Non-Producing Reserves” and (c) “Proved Undeveloped Reserves”. 

“PTE” 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 
 “PV-9” means, with respect to any Proved
Reserves, the net present value, discounted at 9% per annum, of the estimated future net revenues expected to accrue to the Borrower’s and the other Loan Parties’ collective interests in such Proved Reserves during the remaining expected
economic lives of such reserves, calculated in accordance with (a) prior to the Discharge of RBL Obligations, the most recent bank price deck provided to the Borrower by the RBL Administrative Agent, a copy of which shall be provided to the
Administrative Agent, and (b) on and after the Discharge of RBL Obligations, (x) the Five-Year Strip Price or (y) such other basis as may be agreed by the Administrative Agent and the Borrower. 

“Qualifying Acquisition Indebtedness” means any Permitted Pari Term Loan Indebtedness, Permitted Junior Lien Term Loan
Indebtedness or Ratio-Based Incremental Indebtedness incurred by the Borrower or any of its Restricted Subsidiaries, the proceeds of which will be used in whole or in part by the Borrower or any of its Restricted Subsidiaries to finance the
acquisition of any Qualifying Acquisition Properties in a transaction permitted hereunder; provided that if such Indebtedness is incurred in advance of (and not substantially contemporaneously with) the closing of such acquisition, such
Indebtedness shall be required to be Redeemed in the event that such acquisition is not consummated prior to a specified “outside date” (or any similar term) in respect of such acquisition under the definitive acquisition agreement
governing such acquisition (or such other date after such “outside date” as agreed by the lenders or other investors providing such Indebtedness); provided further that such Redemption shall be required to occur no later than 180
days after the date on which such Indebtedness is incurred. 
 “Qualifying Acquisition Properties” means, with respect to
any acquisition by the Borrower or any of its Restricted Subsidiaries of Equity Interests in any Person (including by way of merger or consolidation) or of Oil and Gas Properties of another Person, the Proved Developed Producing Reserves to be
acquired by the Borrower or any of its Restricted Subsidiaries pursuant to such acquisition. 
 “Quarterly Engineering
Report” has the meaning assigned to such term in Section 5.15(d). 
 “Ratio-Based Incremental
Indebtedness” means any Incremental Loans or Incremental Equivalent Indebtedness incurred in reliance on clause (c) of the definition of “Available Incremental Amount”. 

“RBL Administrative Agent” means, with respect to any RBL Credit Facility, (a) initially JPMorgan, as
“Administrative Agent” under and as defined in the RBL Credit Agreement, or (b) any other bank that is engaged in oil and gas reserve-based lending in the ordinary course of its business and that is designated as successor to JPMorgan
or otherwise as the administrative agent or collateral agent under such RBL Credit Facility. 
 “RBL Credit Agreement”
means the Credit Agreement, dated as of April 26, 2018, by and among the Borrower, JPMorgan, as administrative agent, and the lenders party thereto, as the same may from time to time be amended, restated, amended and restated, supplemented or
otherwise modified from time to time in accordance with Section 6.14, or refunded, refinanced, restructured, replaced, renewed, repaid, increased or extended from time to time (whether in whole or in part), in each case, to
the extent permitted by the terms of (x) this Agreement (including as set forth in clause (b) of the definition of RBL Credit Facility) and (y) the Pari Passu Intercreditor Agreement. 

  
 35 

 “RBL Credit Facility” means either (a) the RBL Credit Agreement or
(b) any amendment, restatement, amendment and restatement, supplement, or other modification thereto or any refinancing, restructuring or replacement thereof in the form of a single, conforming, borrowing base credit facility entered into by
the Borrower as the borrower thereunder (including any amendments, restatements, amendment and restatements, supplements, modifications, refinancings, extensions, renewals, or replacements thereof that are permitted by the terms hereof and the terms
of the Pari Passu Intercreditor Agreement), which credit facility provides for revolving loans (including, if applicable, swing lines), term loans (provided such term loans are advanced by lenders under the revolving portion of the credit facility)
or letters of credit that, in each case, (i) is on terms, taken as a whole, not materially less favorable to the Borrower and its Restricted Subsidiaries (as determined by the Borrower) than reserve-based lending transactions involving
similarly situated borrowers and which includes customary mechanics for periodic redeterminations of the Borrowing Base and (ii) is subject to the Pari Passu Intercreditor Agreement. 

“RBL Credit Facility Lenders” means the lenders party to an RBL Credit Facility. 

“RBL Loan Documents” means the “Loan Documents” (or any similarly defined term) as defined in any RBL Credit
Facility, as such “Loan Documents” are amended, restated, amended and restated, supplemented or otherwise modified from time to time in accordance with Section 6.14, or refunded, refinanced, restructured,
replaced, renewed, repaid, increased or extended, in whole or in part, from time to time (other than any agreement, document or instrument that expressly provides that it is not intended to be and is not a RBL Loan Document), whether in whole or in
part, in each case, to the extent permitted by the terms of this Agreement and the Pari Passu Intercreditor Agreement. 
 “RBL
Secured Obligations” means all “Secured Obligations” under and as defined in the RBL Credit Agreement as of the Effective Date to the extent such term describes obligations thereunder that are secured by a Lien on Collateral that
is pari passu to the Liens on the Collateral securing the Secured Obligations pursuant to this Agreement and any similar or replacement term used and as defined in any RBL Credit Facility. 

“RCRA” has the meaning assigned to such term within the definition of “Environmental Laws.” 

“Recipient” means (a) the Administrative Agent and (b) any Lender. 

“Redemption” means, with respect to any Indebtedness, the redemption, purchase, defeasance, prepayment or other acquisition
or retirement for value of such Indebtedness. The term “Redeem” has a meaning correlative thereto. 
 “Reference
Time” with respect to any setting of the then-current Benchmark means (1) if such Benchmark is the Term SOFR Rate, 5:00 a.m. (Houston time) on the day that is two Business Days preceding the date of such setting, (2) if the RFR
for such Benchmark is Daily Simple SOFR, then four Business Days prior to such setting or (3) if such Benchmark is none of Term SOFR Rate or Daily Simple SOFR, the time determined by the Administrative Agent in its reasonable discretion. 

“Register” has the meaning assigned to such term in Section 9.04(b)(iv). 

“Regulation U” means Regulation U of the Board as from time to time in effect and any successor or other regulation or
official interpretation of the Board relating to the extension of credit by banks for the purpose of purchasing or carrying Margin Stock applicable to member banks of the Federal Reserve System. 

  
 36 

 “Related Parties” means, with respect to any specified Person, such
Person’s Affiliates and the respective directors, officers, employees, agents, advisors and representatives of such Person and such Person’s Affiliates. 

“Release” means any depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying,
discharging, migrating, injecting, escaping, leaching, dumping or disposing. 
 “Relevant Governmental Body” means the
Federal Reserve Board and/or the NYFRB, the CME Term SOFR Administrator, as applicable, or a committee officially endorsed or convened by the Federal Reserve Board or the NYFRB or, in each case, any successor thereto. 

“Relevant Rate” means (i) with respect to any Term Benchmark Borrowing, the Adjusted Term SOFR Rate or (ii) with
respect to any RFR Borrowing, Adjusted Daily Simple SOFR, as applicable. 
 “Reportable Event” means a reportable event as
defined in Section 4043 of ERISA and the regulations issued under such section, with respect to a Plan, excluding, however, such events as to which the PBGC has by regulation waived the requirement of Section 4043(a) of ERISA that it be
notified within 30 days of the occurrence of such event, provided that a failure to meet the minimum funding standard of Section 412 of the Code and of Section 302 of ERISA shall be a Reportable Event regardless of the issuance of
any such waiver of the notice requirement in accordance with either Sections 4043(a) or 302(c) of ERISA or Section 412(c) of the Code. 

“Repricing Transaction” means, in each case other than in connection with a Transformative Event or the occurrence of a
Change of Control, (a) any prepayment or repayment of all or a portion of the Initial Loans with the proceeds of, or any conversion or replacement of Initial Loans into any syndicated term loan financing denominated in Dollars secured by Liens
on the Collateral on a pari passu basis with the Lien securing the Initial Loans, the primary purpose of which (as determined by the Borrower in good faith) is to reduce the All-In Yield of such term loans
relative to the All-In Yield of the Initial Loans that are so prepaid, repaid or converted and (b) any amendment to this Agreement the primary purpose of which is to reduce the All-In Yield applicable to the Initial Loans. 
 “Required Lenders” means, subject to
Section 2.17(a), Lenders holding an aggregate principal amount of Loans representing more than fifty percent (50%) of the aggregate principal amount of Loans of all Lenders. 

“Requirement of Law” means as to any Person, any law, treaty, rule or regulation or determination of an arbitrator or a court
or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 

“Reserve Report” means (a) the Initial Reserve Report, (b) each “Reserve Report” under the RBL Credit
Agreement delivered to the RBL Administrative Agent pursuant to the terms of the RBL Credit Agreement and (c) each other report, in form and scope reasonably satisfactory to the Administrative Agent, setting forth, as of the dates set forth in
Section 5.15(a), the Proved Oil and Gas Properties of the Borrower and the other Loan Parties located in the United States of America, 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 economic assumptions in accordance with SEC reporting requirements at the time. 

  
 37 

 “Reserve Report Certificate” has the meaning set forth in
Section 5.15(c). 
 “Resolution Authority” means an EEA Resolution Authority or, with respect to
any UK Financial Institution, a UK Resolution Authority. 
 “Restricted Payment” means any dividend or other distribution
(whether in cash, securities or other property) with respect to any Equity Interests in the Borrower or any Restricted Subsidiary, 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 Borrower or any Restricted Subsidiary. 

“Restricted Subsidiary” means any Subsidiary of the Borrower that is not an Unrestricted Subsidiary. For the avoidance of
doubt, each Subsidiary Guarantor shall be a Restricted Subsidiary. 
 “Restrictive Agreement” means any agreement or other
arrangement that prohibits, limits, restricts or imposes any condition upon (a) the ability of the Borrower or any Restricted Subsidiary to create, incur or permit to exist any Lien upon any of its property or assets in favor of the Collateral
Agent and the other Secured Parties to secure any of the Secured Obligations (without requiring the Secured Parties to share any of the Liens securing the Secured Obligations equally and ratably with any of the Senior Notes) that is more restrictive
than the limitation contained in the 2021 Indenture (as in effect on the Effective Date) or (b) the ability of any Restricted Subsidiary to pay any dividends or other distributions with respect to its Equity Interests to, or to make or repay
any loans or advances to, or to Dispose of any assets to, the Borrower or any Restricted Subsidiary. 
 “RFR” 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 Adjusted Daily Simple SOFR (excluding, for the avoidance of doubt, any ABR Loan or
Borrowing). 
 “S&P” means Standard & Poor’s Rating Services, a Standard & Poor’s Financial
Services LLC, or any successor to the ratings agency business thereof. 
 “Sale and Leaseback Transaction” means any sale
or other transfer of any property or asset by any Person with the intent to lease such property or asset as lessee. 
 “Sanctioned
Country” means, at any time, a country, region or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, Crimea, Cuba, Iran, North Korea and Syria). 

“Sanctioned Person” means, at any time, (a) any Person that is the subject or target of any Sanctions administered or
enforced by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, any European Union member state, Her Majesty’s Treasury of the United Kingdom, or any other relevant sanctions authority, (b) any
Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b). 

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by
(a) the U.S. government, including those administered by OFAC or the U.S. Department of State, or (b) the United Nations Security Council, the European Union, any European Union member state, Her Majesty’s Treasury of the United
Kingdom, or any other relevant sanctions authority. 

  
 38 

 “Scheduled Maturity Date” means June 22, 2027. 

“SEC” means the United States Securities and Exchange Commission. 

“Secured Debt Indenture Exceptions” means, collectively, (a) Section 3.7 (Limitation on Liens) of the 2012
Indenture (disregarding for this purpose the exception for Secured Debt (as defined therein) secured by Permitted Liens (as defined therein) contained in such Section 3.7), (b) Section 5.01 (Limitation on Liens) of the 2015 Indenture
(disregarding for this purpose the exception for Secured Debt (as defined therein) secured by Permitted Liens (as defined therein) contained in such Section 5.01), (c) Section 5.01 (Limitations on Liens) of the 2017 Indenture (disregarding
for this purpose the exception for Secured Debt (as defined therein) secured by Permitted Liens (as defined therein) contained in such Section 5.01), (d) Section 5.01 (Limitations on Liens) of the 2021 Indenture (disregarding for this
purpose the exception for Secured Debt (as defined therein) secured by Permitted Liens (as defined therein) contained in such Section 5.01) and (e) any provisions similar to the foregoing contained in any other Senior Notes Indenture. 

“Secured Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all accrued and unpaid fees
and all expenses, reimbursements, indemnities and other obligations (including interest and fees accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such
proceeding) of any Loan Party to any Credit Party or any Indemnitee, whether or not contingent, arising or incurred under this Agreement or any of the other Loan Documents. 

“Secured Parties” means the holders of the Secured Obligations from time to time and shall include (a) each Lender in
respect of its Loans (to the extent such Loans constitute Secured Obligations), (b) the Administrative Agent, the Collateral Agent and the Lenders in respect of all other present and future obligations and liabilities of the Borrower and each
Subsidiary of every type and description arising under or in connection with this Agreement or any other Loan Document (to the extent such obligations constitute Secured Obligations), (c) each indemnified party under
Section 9.03 in respect of the obligations and liabilities of the Borrower to such Person hereunder and under the other Loan Documents, and (d) their respective successors and (in the case of a Lender, permitted)
transferees and assigns. 
 “Securities Account” has the meaning assigned to such term in the UCC. 

“Securities Account Control Agreement” means an agreement in form and substance reasonably acceptable to the Administrative
Agent establishing the Collateral Agent’s Control with respect to any Securities Account. For purposes of this definition, “Control” means “control” within the meaning of
Section 8-106 of the UCC. 
 “Security Agreement” means that certain Pledge
and Security Agreement dated as of the Effective Date and executed by the Borrower and each Subsidiary Guarantor in favor of the Collateral Agent, for the benefit of the Secured Parties. 

“Senior Notes” means, collectively, the Existing Senior Notes and any additional senior notes issued pursuant to any
Additional Senior Notes Indentures. 
 “Senior Notes Indentures” means, collectively, the Existing Senior Notes Indentures
and any Additional Senior Notes Indentures. 
 “SOFR” means a rate per annum equal to the secured overnight financing rate
as administered by the SOFR Administrator. 

  
 39 

 “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. 

“SOFR Rate Day” has the meaning specified in the definition of “Daily Simple SOFR”. 

“Solvent” means, in reference to any Person, (a) the fair value of the assets of such Person, at a fair valuation, will
exceed its debts and liabilities (subordinated, contingent or otherwise); (b) the present fair saleable value of the property of such Person will be greater than the amount that will be required to pay the probable liability of its debts and
other liabilities (subordinated, contingent or otherwise), as such debts and other liabilities become absolute and matured; (c) such Person will be able to pay its debts and liabilities (subordinated, contingent or otherwise), as such debts and
liabilities become absolute and matured; and (d) such Person will not have unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted after the
Effective Date. 
 “Specified Default” means any Event of Default described in Section 7.01(b),
7.01(g) or 7.01(h). 
 “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to
which the Administrative Agent is subject for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to such
Regulation D of the Board. Term Benchmark Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time
to time to any Lender under such Regulation D of the Board or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 

“Subject Debt Conditions” means, with respect to the incurrence of any Permitted Pari Term Loan Indebtedness, Permitted
Junior Lien Term Loan Indebtedness or Ratio-Based Incremental Indebtedness, after giving pro forma effect to such incurrence of Indebtedness (and the use of proceeds thereof), (a) the Total Leverage Ratio will not be greater than 4.00 to 1.00, (b)
the Collateral Coverage Ratio as of the close of business on the applicable CCR Incurrence Test Date will be equal to or greater than 2.00 to 1.00 and (c) no Default or Event of Default shall have occurred and be continuing. 

“Subordinated Indebtedness” means any Indebtedness included in the definition of Total Funded Indebtedness that is
contractually subordinated in right of payment to the Secured Obligations expressly by its terms (other than Indebtedness between or among the Borrower and its Restricted Subsidiaries). 

“Subsidiary” of a Person means (a) any corporation more than 50% of the outstanding securities having ordinary voting
power of which shall at the time be owned or controlled, directly or indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries, or (b) any partnership, limited liability company,
association, joint venture or similar business organization more than 50% of the ownership interests having ordinary voting power of which shall at the time be so owned or controlled. Unless otherwise expressly provided, all references herein to a
“Subsidiary” means a Subsidiary of the Borrower. 

  
 40 

 “Subsidiary Guarantor” means each Restricted Subsidiary that is a party to
the Subsidiary Guaranty as a guarantor; provided, that no CFC, Foreign Subsidiary Holding Company or Unrestricted Subsidiary shall be a Subsidiary Guarantor. 

“Subsidiary Guaranty” means that certain Subsidiary Guaranty dated as of the Effective Date and executed by each Subsidiary
Guarantor in favor of the Collateral Agent, for the benefit of the Secured Parties. 
 “Swap Agreement” means (a) any
agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement 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, whether or not any such transaction is governed by or subject to any master agreement, and
(b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement, or any other master agreement, including any such obligations or liabilities under any master agreement; 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 the Subsidiaries shall be a Swap Agreement. 

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholdings),
assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 

“Term Benchmark Loans” means Loans bearing interest based upon the Adjusted Term SOFR Rate. 

“Term Loan Incurrence Engineering Report” means one or more reports, each in form and scope reasonably satisfactory to the
Administrative Agent, setting forth, as of the last day of the Fiscal Quarter most recently ended prior to the date of incurrence of any applicable Permitted Pari Term Loan Indebtedness, Permitted Junior Lien Term Loan Indebtedness or Ratio-Based
Incremental Indebtedness, the Oil and Gas Properties of the Borrower and the other Loan Parties located in the United States of America to which Proved Developed Producing Reserves are attributed and, to the extent applicable, any Qualifying
Acquisition Properties to be acquired by the Borrower or any of its Restricted Subsidiaries, together with a projection of the rate of production and future net income (based on the applicable Five-Year Strip Price as of the close of business on the
applicable CCR Incurrence Test Date), taxes, operating expenses and capital expenditures with respect thereto as of such date, based upon economic assumptions consistent with SEC reporting requirements at the time, prepared by one or more Approved
Petroleum Engineers or by or under the supervision of the senior reserve engineer of the Borrower to have been prepared substantially in accordance with the procedures used in the immediately preceding January 1 Reserve Report (or the
equivalent delivered pursuant to the RBL Credit Facility), except as otherwise specified therein. 
 “Term Loan Incurrence
Engineering Report Properties” means, with respect to any Term Loan Incurrence Engineering Report, (a) the Oil and Gas Properties of the Loan Parties to which Proved Reserves are attributed and (b) to the extent applicable, any
Qualifying Acquisition Properties to be acquired by the Borrower or any of its Restricted Subsidiaries, in each case which are included in such Term Loan Incurrence Engineering Report. 

  
 41 

 “Term SOFR Determination Day” has the meaning assigned to such term under the
definition of “Term SOFR Reference Rate.” 
 “Term SOFR Rate” means, with respect to any Term Benchmark
Borrowing and for any tenor comparable to the applicable Interest Period, the Term SOFR Reference Rate at approximately 5:00 a.m., Houston time, two U.S. Government Securities Business Days prior to the commencement of such tenor comparable to the
applicable Interest Period, as such rate is published by the CME Term SOFR Administrator; provided that, notwithstanding anything to the contrary, the tenor comparable to the Initial Interest Period shall be three (3) months. 

“Term SOFR Reference Rate” means, for any day and time (such day, the “Term SOFR Determination Day”), the
rate per annum determined by the Administrative Agent as the forward-looking term rate based on SOFR; provided that if the Term SOFR Reference Rate as so determined would be less than 0.50%, such rate shall be deemed to be 0.50% for
the purposes of this Agreement. If by 4:00 p.m. (Houston time) on the 5th U.S. Government Securities Business Day immediately following any Term SOFR Determination Day, the “Term SOFR Reference Rate” for the applicable tenor has not been
published by the CME Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Rate has not occurred, 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 5 Business
Days prior to such Term SOFR Determination Day. 
 “Total Funded Indebtedness” means (i) all Indebtedness of the
Borrower and its Restricted Subsidiaries referred to in clauses (a), (b), (g) and (h) (but only to the extent the obligations described in such clause (h) are non-contingent) of the definition of
“Indebtedness” and (ii) all Guarantees by the Borrower and its Restricted Subsidiaries of any of the types of Indebtedness described in the foregoing clause (i), in each case determined on a consolidated basis and without duplication.

 “Total Leverage Ratio” means, as of any date of determination, the ratio of (a) Total Funded Indebtedness as of
such date to (b) Consolidated EBITDAX for the period of four consecutive Fiscal Quarters most recently ended for which financial statements have been delivered or are required to have been delivered pursuant to
Section 5.01 (or for the period of four consecutive Fiscal Quarters ended September 30, 2021 at all times prior to the first such delivery after the Effective Date). 

“Total PDP PV-10” means: 

(a) for purposes of calculating the Collateral Coverage Ratio pursuant to the Collateral Coverage Ratio Covenant as of the last day of any
Fiscal Quarter, the net present value, discounted at 10% per annum, of the estimated future net revenues expected to accrue to the Loan Parties’ collective interests in the Proved Developed Producing Reserves evaluated in the Quarterly
Engineering Report with respect to such Fiscal Quarter during the remaining expected economic lives of such Proved Developed Producing Reserves, calculated using the Five-Year Strip Price as of the last day of such Fiscal Quarter; 

(b) for purposes of calculating the Collateral Coverage Ratio for purposes of Section 4.01(a)(xvii), the net present value, discounted at
10% per annum, of the estimated future net revenues expected to accrue to the Loan Parties’ collective interests in the Proved Developed Producing Reserves evaluated in the Initial Reserve Report and the Qualifying Acquisition Properties to be
acquired 

  
 42 

 
by the Loan Parties pursuant to the Mustang Merger evaluated in the Initial Reserve Report, in each case, during the remaining expected economic lives of such Proved Developed Producing Reserves,
calculated using the Five-Year Strip Price as of the close of the Business Day prior to the day on which the Initial Loans are allocated and priced; 

(c) for purposes of calculating compliance with clause (b) of the definition of “Subject Debt Conditions” as of any CCR
Incurrence Test Date, the net present value, discounted at 10% per annum, of the estimated future net revenues expected to accrue to the Loan Parties’ collective interests in the Proved Developed Producing Reserves evaluated in the related Term
Loan Incurrence Engineering Report and the Qualifying Acquisition Properties to be acquired by the Loan Parties pursuant to the applicable acquisition evaluated in the related Term Loan Incurrence Engineering Report, in each case during the
remaining expected economic lives of such Proved Developed Producing Reserves, calculated using the Five-Year Strip Price as of the close of business on the applicable CCR Incurrence Test Date; 

provided that (i) appropriate deductions, as reasonably determined by the Borrower in a manner consistent with past practices and as reflected in
the applicable Reserve Report, Quarterly Engineering Report or Term Loan Incurrence Engineering Report, as applicable, shall be made for severance and ad valorem taxes, plugging and abandonment costs and for operating, gathering, transportation and
marketing costs required for the production and sale of such Proved Developed Producing Reserves, without giving effect to non-property related expenses such as general and administrative expenses, debt
service, future income tax expense or depreciation, depletion or amortization, and (ii) the cash flows derived from the pricing assumptions described above shall be further adjusted as reasonably determined by the Borrower in a manner
consistent with past practices, to account for the basis differential between the actual delivery location and the reference price delivery location, and adjusted for any price differentials between the actual product delivered and the reference
product, in each case, using methodology consistent with past practices and in good faith based on observable differentials. 

“Transactions” means (a) the Mustang Merger and the incurrence of any Indebtedness in connection therewith permitted
hereunder and (b) the execution, delivery and performance by the Loan Parties of this Agreement and the other Loan Documents, the borrowing of the Initial Loans and the use of the proceeds thereof. 

“Transformative Event” means any merger, acquisition, amalgamation, Investment, dissolution,
liquidation, consolidation or Disposition that is either (a) not permitted by the terms of the Loan Documents immediately prior to the consummation of such transaction, or (b) if permitted by the terms of the Loan Documents immediately
prior to the consummation of such transaction, would not provide the Borrower and its Restricted Subsidiaries with adequate flexibility under the Loan Documents for the continuation and/or expansion of their combined operations following such
consummation, as reasonably determined by the Borrower acting in good faith. 
 “Type”, 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 Adjusted Term SOFR Rate, the Adjusted Daily Simple SOFR or the Alternate Base Rate. 

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York or any other state the laws
of which are required to be applied in connection with the issue of perfection of security interests. 
 “UK Financial
Institutions” 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. 

  
 43 

 “UK Resolution Authority” means the Bank of England or any other public
administrative authority having responsibility for the resolution of any UK Financial Institution. 
 “Unadjusted Benchmark
Replacement” means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment. 

“Unrestricted Subsidiary” means (a) any Subsidiary which the Borrower has designated in writing to the Administrative
Agent to be an Unrestricted Subsidiary pursuant to Section 5.08 and (b) any direct or indirect Subsidiary of any Subsidiary described in clause (a), in each case that meets the following requirements: 

(i) such Subsidiary shall have no Indebtedness with recourse to the Borrower or any Restricted Subsidiary (except as otherwise
permitted under Section 6.03); and 
 (ii) such Subsidiary does not, either individually or together with other
Subsidiaries that are designated as Unrestricted Subsidiaries, own or operate, directly or indirectly, all or substantially all of the assets of the Borrower and its Subsidiaries. 

If at any time any Unrestricted Subsidiary fails to meet the preceding requirements to be an Unrestricted Subsidiary, it shall thereafter be a
Restricted Subsidiary for purposes of this Agreement and any Indebtedness, Liens and Investments of such Subsidiary shall be deemed to be incurred by a Restricted Subsidiary as of such date and, if such Indebtedness, Liens or Investments are not
permitted to be incurred as of such date hereunder, the Borrower shall be in default of the applicable covenant. 
 “U.S. Government
Securities Business Day” means any day except for (i) a Saturday, (ii) a Sunday or (iii) 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. 
 “U.S. Person” means a
“United States person” within the meaning of Section 7701(a)(30) of the Code. 
 “U.S. Tax Compliance
Certificate” has the meaning assigned to such term in Section 2.14(f)(ii)(B)(3). 
 “Voting
Equity Interests” of any Person means the Equity Interests of such Person ordinarily having the power to vote for the election of the directors of such Person. 

“Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by
dividing (a) the sum of the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof,
by (ii) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment, by (b) the then outstanding principal amount of such
Indebtedness. 
 “Wholly-Owned Subsidiary” means a Subsidiary of the Borrower of which all issued and outstanding equity
interests (excluding directors’ qualifying shares or similar jurisdictional requirements) is directly or indirectly owned by the Borrower. 

  
 44 

 “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 1.02 Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by
Type (e.g., a “Term Benchmark Loan” or an “ABR Borrowing”). 
 Section 1.03 Terms Generally. 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” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. The word
“law” shall be construed as referring to all statutes, rules, regulations, codes and other laws (including official rulings and interpretations thereunder having the force of law or with which affected Persons customarily comply), and all
judgments, orders and decrees, of all Governmental Authorities. 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 (including prior to the Effective Date) amended, restated, supplemented or otherwise modified (subject to, in the case of any amendments, restatements, supplements or modifications effected on or
after the Effective Date, any restrictions on such amendments, restatements, supplements or modifications set forth herein), (b) any definition of or reference to any statute, rule or regulation shall be construed as referring thereto as from
time to time amended, supplemented or otherwise modified (including by succession of comparable successor laws), (c) any reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to any
restrictions on assignment set forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that shall have succeeded to any or all functions thereof, (d) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e) all references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (f) with respect to the determination of any period of time, the word “from” means “from and including”, the word “to”
means “to but excluding” and the word “through” means “through and including” and (g) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any
and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 
 Section 1.04
Accounting Terms; GAAP. Except as expressly provided for herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies the
Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the Effective Date in GAAP or in the application thereof on the operation of such provision (or if the
Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof,
then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.
Notwithstanding any other provision contained herein, 

  
 45 

 
all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made (i) without giving effect to any
election under Financial Accounting Standards Board Accounting Standards Codification 825 (or any other Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Borrower or any Subsidiary
at “fair value”, as defined therein, and (ii) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or
any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued
at the full stated principal amount thereof. 
 Section 1.05 Interest Rates; Benchmark Notification. The interest
rate on a Loan denominated in Dollars may be derived from an interest rate benchmark that may be discontinued or is, or may in the future become, the subject of regulatory reform. Upon the occurrence of a Benchmark Transition Event,
Section 2.11(b) provides a mechanism for determining an alternative rate of interest. The Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the
administration, submission, performance or any other matter related to any interest rate used in this Agreement, or with respect to any alternative or successor rate thereto, or replacement rate thereof, including without limitation, whether the
composition or characteristics of any such alternative, successor or replacement reference 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. The Administrative Agent and its affiliates and/or other related entities may engage in transactions that affect the calculation of any interest rate used in this
Agreement or any alternative, successor or alternative rate (including any Benchmark Replacement) and/or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower. The Administrative Agent may select information sources or
services in its 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 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 1.06 Divisions. 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 and acquired on the first date of its existence by the holders of
its Equity Interests at such time. 
 Section 1.07 Limited Conditionality Transaction. Notwithstanding anything in this
Agreement or any Loan Document to the contrary, when (i) calculating any applicable ratio or basket (including any basket based on ACNTA, Consolidated EBITDAX or Total PDP PV-10) in connection with the
incurrence of Indebtedness, the creation of Liens, the making of any Disposition, the making of an Investment, the making of a Restricted Payment, the designation of a Subsidiary as a Restricted Subsidiary or Unrestricted Subsidiary, the repayment
of Indebtedness or for any other purpose, (ii) determining the accuracy of any representation or warranty, (iii) determining whether any Default or Event of Default (other than a Specified Default) has occurred, is continuing or would
result from any action, or (iv) determining compliance with any other condition to any action or transaction, in each case of clauses (i) through (iv) in connection with a Limited Condition Transaction, the date of determination of such
ratio or basket, the accuracy of such representation or warranty (but taking into account any earlier date specified therein), whether any Default 

  
 46 

 
or Event of Default (other than Specified Default to the extent expressly set forth herein to the contrary) has occurred, is continuing or would result therefrom, or the satisfaction of any other
condition shall, at the election of the Borrower, which election may be revoked by the Borrower at any time prior to the consummation of the Limited Condition Transaction (the Borrower’s election to exercise such option in connection with any
Limited Condition Transaction, an “LCT Election”), be deemed to be (i) the date the definitive agreements for such Limited Condition Transaction are entered into or, in case of a takeover offer, the date on which such offer is
announced or (ii) the date an irrevocable notice for prepayment or redemption or declaration of a Restricted Payment (as applicable) is delivered, as applicable (the “LCT Test Date”). If on a pro forma basis after giving effect
to such Limited Condition Transaction and the other transactions to be entered into in connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof) such ratios, amounts, representations and warranties, absence of
defaults, satisfaction of conditions and other provisions are calculated as if such Limited Condition Transaction or other transactions had occurred at the beginning of the applicable Fiscal Quarter ending prior to the LCT Test Date, the Borrower
could have taken such action on the relevant LCT Test Date in compliance with the applicable ratios, amounts or other provisions, such provisions shall be deemed to have been complied with, unless a Specified Default shall be continuing on the date
such Limited Condition Transaction is consummated. For the avoidance of doubt, (i) if any of such ratios, amounts, representations and warranties, absence of defaults, satisfaction of conditions or other provisions are exceeded or breached as a
result of fluctuations in such ratio (including due to fluctuations in ACNTA, Consolidated EBITDAX or Total PDP PV-10), a change in facts and circumstances or other provisions at or prior to the consummation
of the relevant Limited Condition Transaction, such ratios, representations and warranties, absence of defaults, satisfaction of conditions precedent and other provisions will not be deemed to have been exceeded, breached, or otherwise failed as a
result of such fluctuations or changed circumstances solely for purposes of determining whether the Limited Condition Transaction and any related transactions is permitted hereunder and (ii) such ratios and compliance with such conditions shall
not be tested at the time of consummation of such Limited Condition Transaction (other than the occurrence of a Specified Default). If the Borrower has made an LCT Election for any Limited Condition Transaction, then in connection with any
subsequent calculation of any ratio or basket availability on or following the relevant LCT Test Date and prior to the earlier of the date on which such Limited Condition Transaction is consummated, the date that the definitive agreement for such
Limited Condition Transaction is terminated or expires or the date on which the irrevocable notice has expired, without consummation of such Limited Condition Transaction (as applicable), any such ratio or basket shall be calculated on a pro forma
basis assuming such Limited Condition Transaction (including any incurrence of Indebtedness and the use of proceeds thereof) have been consummated. 

ARTICLE II 
 The Loans 

Section 2.01 Commitments. Subject to the terms and conditions set forth herein, each Lender (severally and not jointly)
agrees to make a Loan in Dollars to the Borrower on the Effective Date (collectively the “Initial Loans”), in a principal amount not to exceed such Lender’s Initial Commitment, by making immediately available funds available to
the Administrative Agent’s designated account not later than the time specified by the Administrative Agent. Amounts prepaid or repaid in respect of Loans may not be reborrowed. 

Section 2.02 Loans and Borrowings. 

(a) Each Loan shall be made as part of a Borrowing consisting of Loans of the same Type made by the applicable 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 of the Lenders are several and no Lender
shall be responsible for any other Lender’s failure to make Loans as required. 

  
 47 

 (b) Subject to Section 2.11, each Loan shall be comprised entirely
of ABR Loans or Term Benchmark Loans as the Borrower may request in accordance herewith. Each Lender at its option may make any Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan (and in the case of an
Affiliate, the provisions of Sections 2.11, 2.12, 2.13 and 2.14 shall apply to such Affiliate to the same extent as to such Lender); 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. 
 (c) At the commencement of each Interest
Period for any Term Benchmark Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 and not less than $1,000,000. At the time that each ABR Borrowing or RFR Borrowing is made, such Borrowing shall be in
an aggregate amount that is an integral multiple of $500,000 and not less than $1,000,000. Borrowings of more than one Type may be outstanding at the same time; provided that, unless otherwise agreed by the Administrative Agent, there shall
not at any time be more than a total of eight (8) Term Benchmark Borrowings and RFR Borrowings outstanding. 
 (d) Notwithstanding any
other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date. 

Section 2.03 Requests for Borrowings. To request a Borrowing, the Borrower shall notify the Administrative Agent of such request
by telephone, facsimile transmission or electronic mail (a) in the case of a Term Benchmark Borrowing, not later than 1:00 p.m., New York City time, three (3) Business Days before the date of the proposed Borrowing or (b) in the
case of an ABR Borrowing, not later than 11:00 a.m., New York City time, on the date of the proposed Borrowing. Each such Borrowing Request shall be irrevocable and, in the case of a telephonic Borrowing Request, shall be confirmed promptly by
hand delivery, facsimile transmission or electronic mail to the Administrative Agent of a written Borrowing Request signed by the Borrower. Each such telephonic and written Borrowing Request shall specify the following information in compliance with
Section 2.02: 
 (i) the aggregate principal amount of the requested Borrowing; 

(ii) the date of such Borrowing, which shall be a Business Day; 

(iii) whether such Borrowing is to be an ABR Borrowing or a Term Benchmark Borrowing; 

(iv) in the case of a Term Benchmark Borrowing, the initial Interest Period to be applicable thereto, which shall be a period
contemplated by the definition of the term “Interest Period”; and 
 (v) the location and number of the account or
accounts to which such funds are to be disbursed. 
 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 Term Benchmark Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration. Promptly following receipt of a Borrowing
Request in accordance with this Section, 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. 

  
 48 

 Notwithstanding the foregoing, in no event shall the Borrower be permitted to request an RFR Loan (it being
understood and agreed that Adjusted Daily Simple SOFR shall only apply to the extent provided in Sections 2.11(a) and 2.11(f)). 

Section 2.04 Funding of Borrowings. 

(a) 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 2:00 p.m., New York City 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 remitting
the amounts so received, in like funds, to an account or accounts designated by the Borrower in the applicable Borrowing Request. 
 (b)
Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing (or, in the case of any Borrowing of ABR Loans, prior to 2:00 p.m., New York City time, on the date of such 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 paragraph (a)
of this Section 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 Effective 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 the Loans comprising such Borrowing. If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping
period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period. If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid
shall constitute such Lender’s Loan included in such Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

 Section 2.05 Interest Elections. 

(a) Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Term Benchmark
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 Term Benchmark Borrowing,
may elect Interest Periods therefor, all as provided in this Section. 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. 
 (b) To
make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election by telephone, facsimile transmission or electronic mail by the time that a Borrowing Request would be required under
Section 2.03 if the Borrower were requesting a Borrowing of the Type 

  
 49 

 
resulting from such election to be made on the effective date of such election. Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery, facsimile transmission or electronic mail to the Administrative Agent of a written Interest Election Request signed by the Borrower. Notwithstanding any contrary provision herein, this Section shall not be construed to permit the Borrower
to (i) elect an Interest Period for Term Benchmark Loans that does not comply with Section 2.02(d) or (ii) elect Adjusted Daily Simple SOFR (it being understood and agreed that Adjusted Daily Simple SOFR shall
only apply to the extent provided in Sections 2.11(a) and 2.11(f)). 
 (c) Each telephonic and written Interest Election
Request shall specify the following information in compliance with Section 2.02: 
 (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 clauses (iii) and (iv) below shall be specified for each resulting Borrowing); 

(ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day; 

(iii) whether the resulting Borrowing is to be an ABR Borrowing or a Term Benchmark Borrowing; and 

(iv) if the resulting Borrowing is a Term Benchmark Borrowing, the Interest Period to be applicable thereto after giving effect
to such election, which Interest Period shall be a period contemplated by the definition of the term “Interest Period”. 
 If any such Interest
Election Request requests a Term Benchmark 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. 

(d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each applicable Lender of the details
thereof and of such Lender’s portion of each resulting Borrowing. 
 (e) If the Borrower fails to deliver a timely Interest Election
Request with respect to a Term Benchmark 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 converted to an ABR
Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is
continuing, (i) no outstanding Borrowing may be converted to or continued as a Term Benchmark Borrowing and (ii) unless repaid, each Term Benchmark Borrowing and RFR Borrowing shall be converted to an ABR Borrowing at the end of the
Interest Period applicable thereto. 
 Section 2.06 Termination of Initial Commitments. The Initial Commitment of each Lender
shall be automatically and permanently reduced to $0 upon the making of such Lender’s Initial Loan pursuant to Section 2.01. 

  
 50 

 Section 2.07 Repayment of Loans; Evidence of Debt. 

(a) The Borrower shall repay to the Administrative Agent for the ratable account of the Lenders (i) on the last Business Day of each
March, June, September and December, commencing March 31, 2022, an amount equal to 0.25% of the aggregate principal amount of all Initial Loans outstanding on the Effective Date (as such repayment amount shall be reduced as a result of the
application of prepayments made pursuant to Section 2.08 in direct order of maturity) and (ii) on the Maturity Date for the Initial Loans, the aggregate principal amount of all Initial Loans outstanding on such date;
provided that the repayments under this clause may be adjusted to account for the addition of any Incremental Loans that are Initial Loans. 

(b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to
such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 

(c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the
Class and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum
received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof. 
 (d) The entries made
in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein absent manifest error; provided that the
failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the Secured Obligations. 

(e) Any Lender may request that Loans made by it be evidenced by a Note. In such event, the Borrower shall prepare, execute and deliver to
such Lender a Note payable to such Lender (or, if requested by such Lender, to such Lender and its registered assigns). Thereafter, the Loans evidenced by such Note and interest thereon shall at all times (including after assignment pursuant to
Section 9.04) be represented by one or more promissory notes in such form payable to the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns). 

Section 2.08 Prepayment of Loans. 

(a) Voluntary Prepayments. 

(i) The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, without
premium or penalty except as set forth in Section 2.08(e) below, subject to prior notice in accordance with the provisions of Section 2.08(a)(ii). 

(ii) The Borrower shall notify the Administrative Agent by telephonic notice (promptly confirmed by hand delivery, facsimile
transmission or electronic mail of such request) of any prepayment under this Section 2.08(a), (i) in the case of prepayment of a Term Benchmark Borrowing, not later than 1:00 p.m., New York City time, three
(3) Business Days before the date of prepayment or (ii) in the case of prepayment of an ABR Borrowing, not later than 1:00 p.m., New York City time, on 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. 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. Notwithstanding anything to the contrary contained in
this Agreement, any prepayment notice provided under this Section 2.08(a) may state that it is conditioned upon the occurrence or non-occurrence of any event specified therein
(including the effectiveness of other credit facilities), in which case such prepayment notice may be revoked or extended by the Borrower (by written notice to the Administrative Agent on or prior to the specified effective date) if such condition
is not satisfied. 

  
 51 

 (b) Mandatory Prepayments. 

(i) In the event and on each occasion that any Net Proceeds are received by the Borrower or any Restricted Subsidiary in
respect of any Prepayment Event, the Borrower shall promptly (but in any case, within (x) five (5) Business Days in the case of any event described in clause (a) or (b) of the definition of the term “Prepayment Event” and
(y) one (1) Business Day in the case of any event described in clause (c) of the definition of the term “Prepayment Event”) after such Net Proceeds are received by the Borrower or any Restricted Subsidiary: 

(A) first, prepay loans under the RBL Credit Facility and/or cash collateralize Letters of Credit under the RBL Credit
Facility to the extent required to cure any Borrowing Base Deficiency existing as a result of such Prepayment Event or as otherwise required under the RBL Credit Facility as a result of such Prepayment Event; and 

(B) second, use an amount equal to 100% of any remaining Net Proceeds (after application of amounts pursuant to the
foregoing clause (A)) to prepay the Loans without premium or penalty as set forth in Section 2.08(c) below; 

provided that (1) in the case of any event described in clause (a) or (b) of the definition of the term “Prepayment
Event”, the Borrower shall not be required to make any prepayment of Loans pursuant to this paragraph unless the Net Proceeds from all events described in clause (a) or (b) of the definition of the term “Prepayment Event” (on a
combined basis) exceed $35,000,000 in the aggregate any Fiscal Year (and any amounts subject to the second clause above as a result of such Prepayment Events shall only be the amounts in excess of such $35,000,000 threshold) and (2) in
the case of any event described in clause (a) or (b) of the definition of the term “Prepayment Event”, the Borrower may elect to apply (including through any Restricted Subsidiary) an amount equal to the Net Proceeds from such event
(or a portion thereof specified in such certificate), within 365 days after receipt of such Net Proceeds, in Permitted Business Investments, in which case no prepayment shall be required pursuant to the second clause above in respect of the
Net Proceeds so intended to be reinvested, provided that, with respect to this clause (2), (x) to the extent an amount equal to all or a portion of such Net Proceeds have been committed to be reinvested within 365 days after receipt of such
Net Proceeds, such 365-day reinvestment period shall be extended by an additional 180 days with respect to such amount that has been so committed and (y) to the extent an amount equal to such Net Proceeds
have not been so applied by the end of such 365-day period (as extended by clause (x) of this proviso), a prepayment of Loans shall be required pursuant to the second clause above at such time in
an amount equal to such Net Proceeds that have not been so applied. 
 (ii) Notwithstanding anything to the contrary herein,
if the Mustang Merger is not consummated pursuant to the Mustang Merger Agreement on or prior to the Mustang Merger Deadline, the Borrower shall prepay the aggregate principal amount of all Initial Loans outstanding on the Mustang Merger Deadline,
plus all interest accrued thereon, without premium or penalty, within one (1) Business Day after the Mustang Merger Deadline. 

  
 52 

 (c) Application of Prepayments. Each prepayment of a Borrowing shall be applied
ratably to the Loans included in the prepaid Borrowing and shall be applied in direct order of maturity to remaining scheduled installments required pursuant to Section 2.07(a). 

(d) Interest and Break Funding Payments to Accompany Prepayments. Prepayments shall be (i) accompanied by accrued interest to the
extent required by Section 2.10 and (ii) subject to requirements with respect to break funding payments pursuant to Section 2.13. 

(e) Loan Repricing Protection. At the time of the effectiveness of any Repricing Transaction that is consummated prior to the date that
is six (6) months after the Effective Date, the Borrower agrees to pay to the Administrative Agent, for the ratable account of each Lender with Initial Loans that are either prepaid, repaid, converted or otherwise subjected to a pricing
reduction in connection with such Repricing Transaction (including, if applicable, any Non-Consenting Lender required to assign its Initial Loans in connection therewith), a fee in an amount equal to 1.00% of
(i) in the case of a Repricing Transaction described in clause (i) of the definition thereof, the aggregate principal amount of all Initial Loans, prepaid, refinanced, converted, substituted or replaced in connection
with such Repricing Transaction and (ii) in the case of a Repricing Transaction described in clause (ii) of the definition thereof, the aggregate principal amount of all Initial Loans outstanding on such date that are subject to an
effective pricing reduction pursuant to such Repricing Transaction. Such fees shall be earned, due and payable upon the date of the effectiveness of such Repricing Transaction. 

Section 2.09 Fees. 

(a) The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately
agreed upon between the Borrower and the Administrative Agent. 
 (b) All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent, in the case of any fees for the account of any of the Lenders, for distribution to the applicable Lenders. Fees paid hereunder shall not be refundable under any circumstances. 

Section 2.10 Interest. 

(a) The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Rate. 

(b) The Loans comprising each Term Benchmark Loan shall bear interest at the Adjusted Term SOFR Rate for the Interest Period in effect for
such Borrowing plus the Applicable Rate. 
 (c) Each RFR Loan shall bear interest at a rate per annum equal to the Adjusted Daily Simple
SOFR plus the Applicable Rate. 
 (d) Notwithstanding the foregoing, during the occurrence and continuance of a Specified Default,
(i) the overdue principal amount of all Loans shall bear interest at 2% plus the rate otherwise applicable to such Loans as provided in the preceding paragraphs of this Section and (ii) in the case of any other overdue amount outstanding
hereunder, such amount shall accrue interest at 2% plus the rate applicable to ABR Loans. 
 (e) Accrued interest on each Loan shall be
payable in arrears on each Interest Payment Date for such Loan; provided that (i) interest accrued pursuant to paragraph (d) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of
any Loan, 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 Term Benchmark 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. 

  
 53 

 (f) All interest hereunder shall be computed on the basis of a year of 360 days, 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, Adjusted Term SOFR Rate, Term SOFR Rate, Adjusted Daily Simple SOFR or Daily Simple SOFR shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest
error. 
 Section 2.11 Alternate Rate of Interest. 

(a) Subject to clauses (b), (c), (d), (e) and (f) of this Section 2.11,
if: 
 (i) the Administrative Agent determines (which determination shall be conclusive and binding absent manifest
error) (A) prior to the commencement of any Interest Period for a Term Benchmark Borrowing that adequate and reasonable means do not exist for ascertaining the Adjusted Term SOFR Rate or the Term SOFR Rate (including, without limitation,
because the Term SOFR Reference Rate is not available or published on a current basis), for such Interest Period or (B) at any time, that adequate and reasonable means do not exist for ascertaining the applicable Adjusted Daily Simple SOFR or
Daily Simple SOFR for an RFR Loan; or 
 (ii) the Administrative Agent is advised by the Required Lenders that (A) prior
to the commencement of any Interest Period for a Term Benchmark Borrowing that the Adjusted Term SOFR Rate for the applicable Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their
Loans (or Loan) included in such Borrowing for such Interest Period, or (B) at any time, the applicable Adjusted Daily Simple SOFR for an RFR Loan will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or
maintaining their Loans (or its Loan) included in such Borrowing; 
 then the Administrative Agent shall give notice thereof to the Borrower and the Lenders
through any Electronic System as provided in Section 9.01 as promptly as practicable thereafter and, until (x) the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such
notice no longer exist with respect to the relevant Benchmark and (y) the Borrower delivers a new Interest Election Request in accordance with the terms of Section 2.08 or a new Borrowing Request in accordance with the
terms of Section 2.03, any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Term Benchmark Borrowing and any Borrowing Request that requests a Term Benchmark
Borrowing shall instead be deemed to be an Interest Election Request or a Borrowing Request, as applicable, for (1) an RFR Borrowing so long as the Adjusted Daily Simple SOFR is not also the subject of
Section 2.11(a)(i) or (ii) above or (2) an ABR Borrowing if the Adjusted Daily Simple SOFR also is the subject of Section 2.11(a)(i) or (ii) above.
Furthermore, if any Term Benchmark Loan or RFR Loan is outstanding on the date of the Borrower’s receipt of the notice from the Administrative Agent referred to in this Section 2.11(a) with respect to a Relevant Rate
applicable to such Term Benchmark Loan or RFR Loan, then until (x) the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist with respect to the relevant Benchmark and
(y) the Borrower delivers a new Interest Election Request in accordance with the terms of Section 2.08 or a new 

  
 54 

 
Borrowing Request in accordance with the terms of Section 2.03, (1) any Term Benchmark Loan shall on the last day of the Interest Period applicable to such Loan (or the
next succeeding Business Day if such day is not a Business Day), be converted by the Administrative Agent to, and shall constitute, (x) an RFR Borrowing so long as the Adjusted Daily Simple SOFR is not also the subject of
Section 2.11(a)(i) or (ii) above or (y) an ABR Loan if the Adjusted Daily Simple SOFR also is the subject of Section 2.11(a)(i) or (ii) above, on such
day, and (2) any RFR Loan shall on and from such day be converted by the Administrative Agent to, and shall constitute an ABR Loan. 

(b) Notwithstanding anything to the contrary herein or in any other Loan Document, if a Benchmark Transition Event and its related Benchmark
Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (1) of the definition of “Benchmark
Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any
amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document and (y) if a Benchmark Replacement is determined in accordance with clause (2) of the definition of “Benchmark
Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on
the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document so long as the
Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders. 

(c) Notwithstanding anything to the contrary herein or in any other Loan Document, in connection with the implementation of any Benchmark
Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such
Benchmark Replacement Conforming Changes will become effective without any further action by or consent of any other party to this Agreement or any other Loan Document. 

(d) The Administrative Agent will promptly notify the Borrower and the Lenders of (i) any occurrence of a Benchmark Transition Event,
(ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, (iv) the removal or reinstatement of any tenor of a Benchmark pursuant to clause (e) below and
(v) the commencement or conclusion of any Benchmark Unavailability Period. 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
Section 2.11, 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 Section 2.11 or in any related definitions. 
 (e)
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), (i) if the then-current Benchmark is a term rate (including the Term SOFR Rate)
and either (A) 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 (B) 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 or will be no longer representative, then the Administrative Agent may modify the
definition of “Interest Period” for any Benchmark settings at or after such time to remove 

  
 55 

 
such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently
displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark
Replacement), then the Administrative Agent may modify the definition of “Interest Period” for all Benchmark settings at or after such time to reinstate such previously removed tenor. 

(f) Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request
for a Term Benchmark Borrowing of, conversion to or continuation of Term Benchmark 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 (i) an RFR Borrowing so long as the Adjusted Daily Simple SOFR is not the subject of a Benchmark Transition Event or (ii) an ABR Borrowing if the Adjusted Daily Simple SOFR is the subject
of a Benchmark Transition Event. 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 ABR based upon the then-current Benchmark or such tenor for such
Benchmark, as applicable, will not be used in any determination of ABR. Furthermore, if any Term Benchmark Loan or RFR Loan is outstanding on the date of the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period
with respect to a Relevant Rate applicable to such Term Benchmark Loan or RFR Loan, then until such time as a Benchmark Replacement is implemented pursuant to this Section 2.11, (1) any Term Benchmark Loan shall on the last
day of the Interest Period applicable to such Loan (or the next succeeding Business Day if such day is not a Business Day), be converted by the Administrative Agent to, and shall constitute, (x) an RFR Borrowing so long as the Adjusted Daily
Simple SOFR is not the subject of a Benchmark Transition Event or (y) an ABR Loan if the Adjusted Daily Simple SOFR is the subject of a Benchmark Transition Event, on such day and (2) any RFR Loan shall on and from such day be converted by
the Administrative Agent to, and shall constitute an ABR Loan. 
 Section 2.12 Increased Costs. 

(a) If any Change in Law shall: 

(i) impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement (including any compulsory
loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended by, any Lender; 

(ii) impose on any Lender or the applicable interbank market any other condition, cost or expense (other than Taxes) affecting
this Agreement or Loans made by such Lender or participation therein; or 
 (iii) subject any Recipient 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; 
 and the result of any of the foregoing shall be to increase
the cost to such Lender or such other Recipient of making, continuing, converting into or maintaining any Loan or of maintaining its obligation to make any such Loan or to reduce the amount of any sum received or receivable by such Lender or such
other Recipient hereunder, whether of principal, interest or otherwise, then the Borrower will pay to such Lender or such other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender or such other Recipient,
as the case may be, for such additional costs incurred or reduction suffered. 

  
 56 

 (b) If any Lender determines in good faith 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 capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement or the Loans made by such Lender to
a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to
capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered. 

(c) A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may
be, as specified in paragraph (a) or (b) of this Section, setting forth in reasonable detail the calculation of such amount or amounts, shall be delivered to the Borrower and shall be rebuttable presumptive evidence of such
amount or amounts. Any Lender’s determination of any such amount or amounts shall be made in good faith (and not on an arbitrary or capricious basis) and substantially consistent with similarly situated customers of such Lender under agreements
having provisions similar to Section 2.12(a) or 2.12(b), as applicable, after consideration of such factors as such Lender then reasonably determines to be relevant. The Borrower shall pay such Lender the amount
shown as due on any such certificate within 15 days after receipt thereof. 
 (d) Failure or delay on the part of any Lender to demand
compensation pursuant to this Section shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased
costs or reductions incurred more than 180 days prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’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 180-day period referred to above shall be extended to include the period of
retroactive effect thereof. 
 Section 2.13 Break Funding Payments. 

(a) With respect to Term Benchmark Loans, in the event of (i) the payment of any principal of any Term Benchmark Loan other than on the
last day of an Interest Period applicable thereto (including as a result of an Event of Default or as a result of any optional or mandatory prepayment of Loans), (ii) the conversion of any Term Benchmark Loan other than on the last day of the
Interest Period applicable thereto, (iii) the failure to borrow, convert, continue or prepay any Term Benchmark Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under
Section 2.08 and is revoked in accordance therewith), or (iv) the assignment of any Term Benchmark Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower
pursuant to Section 2.16 or 9.02(f), then, in any such event, the Borrower shall, after receipt of a written request by any Lender affected by any such event (which request shall set forth in reasonable detail the
basis for requesting such amount), compensate each Lender for the loss, cost and expense attributable to such event. 
 (b) With respect to
RFR Loans, in the event of (i) the payment of any principal of any RFR Loan other than on the Interest Payment Date applicable thereto (including as a result of an Event of Default or an optional or mandatory prepayment of Loans), (ii) the
failure to borrow or prepay any RFR Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under Section 2.08 and is revoked in accordance therewith), or (iii) the assignment of
any RFR Loan other than on the Interest Payment Date applicable thereto as a result of a request by the Borrower pursuant to Section 2.16 or 9.02(f), then, in any such event, the Borrower shall, after receipt of a written request by any Lender
affected by any such event (which request shall set forth in reasonable detail the basis for requesting such amount), compensate each Lender for the loss, cost and expense attributable to such event. 

  
 57 

 (c) A certificate of any Lender setting forth any amount or amounts that such Lender is
entitled to receive pursuant to this Section 2.13 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 15 days after receipt
of such demand. Notwithstanding the foregoing, this Section 2.13 will not apply to losses, costs or expenses resulting from Taxes, as to which Section 2.14 shall govern. 

Section 2.14 Taxes. 

(a) Payments Free of Taxes. Any and all payments by or on account of any obligation of any Loan Party under any Loan Document
shall be made without deduction or withholding for any Taxes, except as required by applicable Requirements of Law. If any applicable Requirements of Law (as determined in the good faith discretion of an applicable withholding agent) requires the
deduction or withholding of any Tax from any such payment by a 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 Requirements of Law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as necessary so that after such deduction or withholding has been
made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made. 

(b) Payment of Other Taxes by the Borrower. The Borrower shall timely pay to the relevant Governmental Authority in accordance with
applicable Requirements of Law, or at the option of the Administrative Agent timely reimburse it for, Other Taxes. 
 (c) Evidence of
Payments. As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authority pursuant to this Section 2.14, such Loan Party 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. 

(d) Indemnification by the Loan Parties. The Loan Parties shall indemnify each Recipient, within 10 days after demand therefor,
for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such
Recipient 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 as to the amount of such
payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error. 

(e) Indemnification by the Lenders. 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 any Loan Party has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Loan
Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 9.04(c) 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 (e). 

  
 58 

 (f) Status of Lenders. 

(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 Requirements of 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
Section 2.14(f)(ii)(A), (ii)(B) and (ii)(D) 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. 
 (ii) Without
limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person: 
 (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 Borrower or the
Administrative Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt from U.S. Federal backup withholding tax; 

(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 or the
Administrative Agent), whichever of the following is applicable: 
 (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, executed copies 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; 

(2) executed copies of IRS Form W-8ECI; 

  
 59 

 (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 Exhibit D-1 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” described in Section 881(c)(3)(C)
of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed copies of IRS Form W-8BEN or IRS Form
W-8BEN-E, as applicable; or 
 (4) to the
extent a Foreign Lender is not the beneficial owner, 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 Exhibit D-2 or Exhibit D-3, 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 Exhibit D-4 on behalf of each such direct and indirect partner; 
 (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), executed originals of any other form prescribed by applicable Requirements of 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 Requirements of Law to permit the Borrower or the Administrative Agent to determine
the withholding or deduction required to be made; and 
 (D) 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 were to fail 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 and the Administrative Agent at the time or times prescribed by applicable Requirements of Law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation
prescribed by applicable Requirements of Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the
Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.
Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement. 

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 Borrower and the Administrative Agent in writing of its legal inability to do so. 

  
 60 

 (g) Treatment of Certain Refunds. 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 Section 2.14 (including by the payment of additional amounts pursuant to this
Section 2.14), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section 2.14 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 paragraph (g) (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
paragraph (g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) 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. 
 (h) Survival. Each party’s obligations under this
Section 2.14 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender and the repayment, satisfaction or discharge of all obligations under any
Loan Document. 
 (i) Defined Terms. For purposes of this Section 2.14, the term “applicable
Requirements of Law” includes FATCA. 
 Section 2.15 Payments Generally; Allocations of Proceeds; Pro Rata Treatment; Sharing
of Set-offs. 
 (a) The Borrower shall make each payment required to be made by it hereunder
(whether of principal, interest, fees, or of amounts payable under Section 2.12, 2.13 or 2.14, or otherwise) prior to 1:00 p.m., New York City time, on the date when due, in immediately available funds,
without set-off or counterclaim. 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 10 South Dearborn Street, Chicago, Illinois 60603. 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. 

(b) Subject to the Pari Passu Intercreditor Agreement, any proceeds of Collateral received by the Administrative Agent (1) not
constituting (A) a specific payment of principal, interest, fees or other sum payable under the Loan Documents (which shall be applied as specified by the Borrower) or (B) a mandatory prepayment (which shall be applied in accordance with
Section 2.08) or (2) after an Event of Default has occurred and is continuing and the Administrative Agent so elects or the Required Lenders so direct, shall be applied as follows: 

(i) first, pro rata to pay that portion of the Secured Obligations constituting fees, indemnities, expense
reimbursements and other amounts payable to the Administrative Agent and the Collateral Agent in their respective capacities as such; 

  
 61 

 (ii) second, pro rata to pay that portion of the Secured Obligations
constituting fees, indemnities, expense reimbursements and other amounts payable (other than principal and interest) to the Lenders; 

(iii) third, pro rata to pay accrued interest on the Loans; 

(iv) fourth, pro rata to the payment or prepayment of principal of the Loans; and 

(v) fifth, to the payment of any other Secured Obligation due to the Administrative Agent, the Collateral Agent or any
other Secured Party. 
 Notwithstanding anything to the contrary contained in this Agreement, unless so directed by the Borrower, or unless
a Default is in existence, none of the Administrative Agent or any Lender shall apply any payment which it receives to any Term Benchmark Loan, except (a) on the expiration date of the Interest Period applicable to any such Term Benchmark Loan
or (b) in the event, and only to the extent, that there are no outstanding ABR Loans and, in any event, the Borrower shall pay the break funding payment required in accordance with Section 2.13. The Administrative
Agent and the Lenders shall have the continuing and exclusive right to apply and reverse and reapply any and all such proceeds and payments to any portion of the Secured Obligations. To the extent the Administrative Agent receives payments not
constituting proceeds of Collateral and not covered by clauses (b)(1)(A) or (B), such proceeds shall be applied according to the foregoing priority of payments waterfall; provided, that such proceeds shall be applied to repay all Loans under
the fourth item above, whether or not secured by the Collateral. 
 (c) [Reserved]. 

(d) 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 resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and 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 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; 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 paragraph 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 to any assignee or participant, other than to the Borrower or any
Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable Requirements of 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. 
 (e) 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 hereunder 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 the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender 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 Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation. 

  
 62 

 (f) If any Lender shall fail to make any payment required to be made by it pursuant to
Sections 2.04(b), 2.15(e) or 9.03(c), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), (i) apply any amounts thereafter received by the Administrative Agent for the
account of such Lender and for the benefit of the Administrative Agent to satisfy such Lender’s obligations to it under such Section until all such unsatisfied obligations are fully paid and/or (ii) hold any such amounts in a segregated
account over which the Administrative Agent shall have exclusive control as cash collateral for, and application to, any future funding obligations of such Lender under any such Section; in the case of each of clauses (i) and (ii) above,
in any order as determined by the Administrative Agent in its discretion. 
 Section 2.16 Mitigation Obligations; Replacement of
Lenders. 
 (a) If any Lender requests compensation under Section 2.12, or the Borrower is required to pay any
Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.14, then such Lender shall 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 Sections 2.12 or 2.14, as the case may be, in the future 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. 

(b) If (i) any Lender requests compensation under Section 2.12, (ii) the Borrower is required to pay any
Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.14, (iii) any Lender becomes a Defaulting Lender, (iv) any Lender is a Non-Consenting Lender or (v) the Person serving as the Administrative Agent has received a written notice of removal in its capacity as Administrative Agent from the Required Lenders or the Borrower pursuant to
Article VIII, 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 Section 9.04), all its interests, rights (other than its existing rights to payments pursuant to Sections 2.12 or 2.14) and obligations under the 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) such Lender shall have received payment of an amount equal to the outstanding principal of its
Loans, 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) and
(ii) in the case of any such assignment resulting from a claim for compensation under Section 2.12 or payments required to be made pursuant to Section 2.14, such assignment will result in a
reduction in such compensation or payments. 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. An assignment and delegation required pursuant to this paragraph may be effected pursuant to an Assignment and Assumption executed by the Borrower, the Administrative Agent and the assignee, and the Lender
required to make such assignment and delegation need not be a party thereto (it being understood and agreed that such Lender shall not be deemed to make the representations and warranties in such Assignment and Assumption if such Lender has not
executed such Assignment and Assumption). 

  
 63 

 Section 2.17 Defaulting Lenders. 

(a) Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the Commitment and
principal amount of Loans of such Defaulting Lender shall not be included in determining whether the Required Lenders have taken or may take any action hereunder (including any consent to any amendment, waiver or other modification pursuant to
Section 9.02); provided, that, except as otherwise provided in Section 9.02, this clause (a) shall not apply to the vote of a Defaulting Lender in the case of an amendment,
waiver or other modification requiring the consent of such Lender or each Lender directly affected thereby. 
 (b) The rights and remedies
against, and with respect to, a Defaulting Lender under this Section are in addition to, and cumulative and not in limitation of, all other rights and remedies that the Administrative Agent and each Lender, the Borrower or any other Loan Party may
at any time have against, or with respect to, such Defaulting Lender. 
 Section 2.18 Incremental Borrowings. 

(a) The Borrower may, at any time or from time to time after the Effective Date, by notice to the Administrative Agent (whereupon the
Administrative Agent shall promptly deliver a copy to each of the Lenders), request one or more additional tranches of term loans (the “Incremental Loans”), which may be of the same Class as any existing Class of
Loans (a “Loan Increase”) or a separate Class of Loans (the commitments in respect of such Incremental Loans, whether or not constituting a Loan Increase, the “Incremental Commitments”); provided that,
subject to Section 1.07, immediately after the effectiveness of any Incremental Amendment referred to below (or, in the case of any such Indebtedness incurred in connection with a Permitted Acquisition or other permitted
Investment, on the date of the execution of (x) the definitive agreement in connection therewith and (y) any Commitment in respect of Incremental Loans therefor), no Event of Default shall exist (or, in the case of a Permitted Acquisition
or permitted Investment, no Specified Default shall exist); provided that, notwithstanding the above, the condition precedent referred to in the proviso above may be waived or omitted in full or in part by Lenders holding more than 50% of the
applicable commitments and/or loans to be incurred pursuant to such Incremental Amendment. 
 Each tranche of Incremental Loans shall be in
an aggregate principal amount that is not less than $5,000,000 (provided that such amount may be less than $5,000,000 if such lesser amount is approved by the Administrative Agent or such amount represents all remaining availability under the
limit set forth in the next sentence). Notwithstanding anything to the contrary herein, the aggregate principal amount of the Incremental Loans (or, if applicable, Incremental Commitments) shall not exceed the Available Incremental Amount at the
time of incurrence or issuance thereof. 
 (b) The terms and provisions of Incremental Commitments may be (and the Loans in respect of the
foregoing) of any Class shall be as agreed between the Borrower and the lenders providing such Incremental Commitments; provided, that: 

(i) such Incremental Loans (w) shall rank pari passu or junior in right of payment and constitute Pari Passu Lien Incremental
Indebtedness, Junior Lien Incremental Indebtedness, unsecured Indebtedness or Indebtedness not secured by the Collateral, (x) may not be (I) secured by any assets other than Collateral (or assets that substantially concurrently become
Collateral) unless secured only by assets not constituting Collateral or (II) guaranteed by any Person other than a Loan Party (or any Person that substantially concurrently becomes a Loan Party), (y) if constituting Pari Passu Lien Incremental
Indebtedness, shall be subject to the Pari Passu Intercreditor Agreement, and (z) if constituting Junior Lien Incremental Indebtedness, shall be subject to a Junior Lien Intercreditor Agreement; 

  
 64 

 (ii) the Incremental Loans shall not mature earlier than the Latest Maturity Date as in
effect as of the applicable Incremental Facility Closing Date; 
 (iii) the Incremental Loans shall have a Weighted Average Life to
Maturity of no less than the Weighted Average Life to Maturity as then in effect for any Class of Loans outstanding as of the applicable Incremental Facility Closing Date; 

(iv) the currency, premiums, fees, optional prepayment and redemptions terms and, subject to clauses (ii) and (iii) above,
the amortization schedule, in each case applicable to any Incremental Loans shall be determined by the Borrower and the lenders providing such Incremental Loans; 

(v) the interest rate (including margin, OID and floors) applicable to any Incremental Loans will be determined by the Borrower and the
lenders providing such Incremental Loans; provided that, if the All-In Yield applicable to any Incremental Loans that (i) are term loans pari passu in right of payment
and security to the Initial Loans and (ii) are incurred within 12 months after the Effective Date exceeds the All-In Yield of the Initial Loans made on the Effective Date (with such All-In Yield determined as of the Effective Date without giving effect to any amendment to the Initial Loans thereafter) at such time by more than 50 basis points, then the interest rate margins for the Initial
Loans shall be increased to the extent necessary so that the All-In Yield of the Initial Loans is equal to the All-In Yield of such Incremental Loans minus 50
basis points; provided that any increase in All-In Yield to any Incremental Loans due to the application or imposition of a SOFR Rate or Alternate Base Rate floor on such Incremental Loan shall be
effected, at the Borrower’s option, (x) through an increase in (or implementation of, as applicable) any SOFR Rate or Alternate Base Rate floor applicable to such Initial Loan, (y) through an increase in the Applicable Rate for such
Initial Loan or (z) any combination of (x) and (y) above (this clause (v), the “MFN Provisions”); 

(vi) Incremental Loans in the form of a Loan Increase shall have the same voluntary and mandatory terms as the existing Loans of the same
Class and Loans not in the form of a Loan Increase may provide for the ability to participate on a pro rata basis or less than pro rata basis in any voluntary repayments or prepayments of principal of Loans hereunder and on a pro rata basis or
less than a pro rata basis in any mandatory repayments or prepayments of principal of Loans hereunder; and 
 (vii) (1) in the case of a
Loan Increase, the terms, provisions and documentation of such Loan Increase shall be identical (other than with respect to upfront fees and OID and arrangement, structuring or similar fees payable in connection therewith) to the applicable Loans
being increased, in each case, as existing on the respective Incremental Facility Closing Date and (2) the covenants and default provisions of any Incremental Loans not constituting a Loan Increase shall be determined solely by the Borrower and
the lenders providing such Incremental Loans; provided that other than with respect to (A) any financial covenant, (B) any provisions applicable only to periods after the Latest Maturity Date at such time or (C) any
lender-favorable provisions added for the benefit of the then-existing Loans (it being understood that any amendment to the Loan Documents to include such lender-favorable provisions shall not require the consent of any Lender), the covenants and
default provisions applicable to such Incremental Loans shall be either (x) not materially more favorable, taken as a whole, to the lenders providing such Incremental Loans, than the corresponding terms applicable to the existing Loans or
(y) reflective of market terms and conditions at the time of incurrence thereof, in each case of clauses (x) and (y), as reasonably determined by the Administrative Agent. 

(c) Each notice from the Borrower pursuant to this Section 2.18 shall set forth the requested amount and the date on
which the Borrower proposes that the same shall be effective (each, an “Incremental Amount Date”). If such Incremental Loans constitute Ratio-Based Incremental Indebtedness, prior to the incurrence of such Indebtedness, the Borrower
shall deliver to the Administrative Agent a Term Loan 

  
 65 

 
Incurrence Engineering Report. If requested by the Administrative Agent, the Borrower shall also provide information with respect to the proposed terms of the relevant Incremental Loans.
Incremental Loans may be made by any existing Lender (but no existing Lender (including the Administrative Agent in its capacity as an existing Lender) shall have any obligation to make a portion of any Incremental Loan unless and to the extent such
Lender commits to provide such Incremental Loan) or by any Additional Lender. Commitments in respect of Incremental Loans shall become Commitments under this Agreement pursuant to an amendment (an “Incremental Amendment”) to this
Agreement and, as appropriate, the other Loan Documents, executed by the Borrower, each existing Lender agreeing to provide such Commitment, if any and each Additional Lender agreeing to provide such Commitment, if any, which may be acknowledged by
the Administrative Agent. The Incremental Amendment may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Borrower
and the Administrative Agent, to effect the provisions of this Section 2.18. The effectiveness of any Incremental Amendment shall be subject to the satisfaction on the date thereof (each, an “Incremental Facility
Closing Date”) of each of the conditions as the Borrower and the Lenders providing such Commitment shall agree. The Borrower shall use the proceeds (if any) of the Incremental Loans for general corporate purposes of the Borrower and its
Restricted Subsidiaries (including for capital expenditures, Permitted Acquisitions and other permitted Investments, permitted Restricted Payments, permitted refinancing of Indebtedness, and any other transaction not prohibited by this Agreement).
No Lender shall be obligated to commit to provide any Incremental Loans unless it so agrees. 
 (d) Any Incremental Loans not constituting a
Loan Increase shall be designated as a separate Class of Loans for all purposes of this Agreement. This Section 2.18 shall supersede any provisions in Section 2.08,
Section 2.15, or Section 9.02 to the contrary. 
 ARTICLE III 

Representations and Warranties 

The Borrower represents and warrants to the Lenders that: 

Section 3.01 Organization; Powers. The Borrower and each of its Restricted Subsidiaries are duly organized or validly formed,
validly existing and in good standing under the laws of the jurisdictions of their organization or formation and have all requisite authority to conduct their respective businesses in each jurisdiction in which the failure to have such authority,
individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. The Borrower and each of its Restricted Subsidiaries have full power and authority to carry on their business as now conducted. 

Section 3.02 Authorization; Execution; Enforceability. Each Loan Party has the power and authority and legal right to execute and
deliver the Loan Documents to which it is a party and to perform its obligations thereunder and (in the case of the Borrower) to obtain Borrowings made hereunder and to consummate the Transactions, and all such actions have been duly authorized by
proper organizational proceedings on the part of the applicable Loan Party. Each Loan Document has been duly and validly executed and delivered by or on behalf of each Loan Party that is a party thereto, and the Loan Documents to which each Loan
Party is a party constitute legal, valid and binding obligations of such Loan Party, enforceable against such Loan Party in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the
enforcement of creditors’ rights and subject to general principles of equity, regardless of whether considered in a proceeding in equity or law, and obligations of good faith and fair dealing. 

  
 66 

 Section 3.03 Financial Condition. 

(a) The consolidated financial statements of the Borrower and its Subsidiaries as of December 31, 2020 (which were
heretofore made available to the Administrative Agent and the Lenders) were prepared in accordance with GAAP in effect on the date such statements were prepared and fairly present in all material respects the financial position of the Borrower and
its consolidated Subsidiaries at such dates and the consolidated results of their operations and their consolidated cash flows for the periods then ended. 

(b) Since December 31, 2020, no material adverse effect on the business, Property, financial condition or results of
operations of the Borrower and its Restricted Subsidiaries taken as a whole has occurred. 
 Section 3.04 ERISA. Each Plan is in
compliance with, and has been administered in compliance with, all applicable provisions of ERISA, the Code and any other applicable federal or state law, except where the failure to so comply would not (individually or in the aggregate) reasonably
be expected to have a Material Adverse Effect, and no event or condition exists under which the Borrower is under an obligation to furnish a report to the Administrative Agent under Section 5.01(e) which would reasonably be
expected (individually or in the aggregate) to have a Material Adverse Effect. 
 Section 3.05 Defaults. No Default or Event of
Default has occurred and is continuing. 
 Section 3.06 Accuracy of Information. (a) No written information, exhibit or
report (other than projections, other forward-looking materials, any third party memoranda or reports and information of a general economic or industry-specific nature) furnished by the Borrower or any Subsidiary to the Administrative Agent or any
Lender in connection with the negotiation of this Agreement or delivered hereunder or under any other Loan Document, when taken as a whole, contains any material misstatement of fact or omits to state a material fact necessary to make the statements
contained therein not materially misleading in light of the circumstances under which such statements are made and (b) all projections furnished by the Borrower or any Subsidiary to the Administrative Agent or any Lender in connection with the
negotiation of this Agreement or delivered hereunder or under any other Loan Document, when taken as a whole, have been or will be prepared in good faith based upon assumptions that are believed by the preparer thereof to be reasonable at the time
such projections are so furnished (it being recognized by the Credit Parties that such projections are so not to be viewed as facts and are subject to significant uncertainties and contingencies many of which are beyond the Borrower’s control,
that no assurance can be given that any particular financial projections will be realized, that actual results may differ from projected results and that such differences may be material).  

Section 3.07 Regulation U. Neither the Borrower nor any Restricted Subsidiary is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or carrying Margin Stock. No part of the proceeds of any Loan will be used to purchase or carry any Margin Stock in violation of Regulation U or for any other purpose that
entails a violation of Regulation U. 
 Section 3.08 Taxes. Each of the Borrower and its 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 be have been paid by it, except (a) Taxes that are being contested in good faith by appropriate
proceedings and for which the Borrower or such Restricted Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent that the failure to do so would not reasonably be expected to result in a Material Adverse
Effect. 

  
 67 

 Section 3.09 Liens. There are no Liens on any of the properties or assets of the
Borrower or any Restricted Subsidiary except Permitted Liens. All easements, rights of way, licenses and other real property rights required for operation of the businesses of the Borrower and its Restricted Subsidiaries are owned free and clear of
any Lien, other than Permitted Liens. 
 Section 3.10 Litigation. Except as set forth in the Borrower’s filings with the
SEC prior to the Effective Date or as otherwise disclosed in writing prior to the Effective Date to the Administrative Agent for distribution to the Lenders, there are no actions, suits or proceedings pending or, to the Knowledge of Borrower,
threatened in writing against Borrower, any of its Restricted Subsidiaries or against any of their respective properties or assets which would reasonably expected to have (individually or collectively) a Material Adverse Effect. 

Section 3.11 No Conflict. Neither the execution, delivery and performance by each Loan Party of the Loan Documents to which it is
a party, nor compliance with the provisions thereof, will (a) breach or violate any applicable Requirement of Law, (b) conflict with or result in the breach or violation of any of the terms, conditions or provisions of, or constitute a
default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien upon any of its property or assets pursuant to the terms of, (i) the RBL Credit Agreement, the Senior Notes, any Senior Notes Indenture
or any other indenture, agreement or instrument evidencing or governing Material Indebtedness or (ii) any other indenture, agreement or other instrument to which the Borrower or any of its Restricted Subsidiaries is party or by which any
property or asset of it or any of its Restricted Subsidiaries is bound or to which it is subject, except for breaches, violations, conflicts and defaults under clauses (a) and (b)(ii) that would not have a Material Adverse Effect or
(c) violate the Organizational Documents of the Borrower or any Restricted Subsidiary. 
 Section 3.12 Governmental
Approvals. No authorization, consent, approval, license or exemption of, or filing or registration with, any Governmental Authority is necessary to have been made or obtained by any Loan Party for the valid execution, delivery and performance by
such Loan Party of any Loan Document to which it is a party, except (a) those that have been obtained and are in full force and effect, (b) filings, notifications and registrations necessary to perfect Liens created under the Loan
Documents, (c) such matters relating to performance as would ordinarily be done in the ordinary course of business after the Effective Date, or (d) where failure to make or obtain such authorization, consent, approval, license or
exemption, or filing or registration would not reasonably be expected to have a Material Adverse Effect. 
 Section 3.13 Investment
Company Status. No Loan Party is an “investment company” or “controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940. 

Section 3.14 Compliance with Laws and Orders. The Borrower and its Restricted Subsidiaries have all franchises, licenses and
permits necessary for the conduct of their respective businesses, and are in compliance with all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which they or their respective properties are subject, except to
the extent that failure to have, maintain or comply with any of the foregoing, individually and in the aggregate, would not reasonably be expected to have a Material Adverse Effect. 

Section 3.15 Anti-Terrorism Laws. Each of the Borrower and its Restricted Subsidiaries is in compliance in all material respects
with all Anti-Terrorism Laws applicable to it or its properties. 
 Section 3.16 Anti-Corruption Laws and Sanctions. The
Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance by the Borrower, its Restricted Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and
applicable Sanctions, and the Borrower and its Restricted Subsidiaries and, to the Knowledge of the Borrower, their respective officers, directors, employees and agents, are in compliance with Anti-Corruption

  
 68 

 
Laws and applicable Sanctions in all material respects. None of (a) the Borrower or any Restricted Subsidiary, or (b) to the Knowledge of the Borrower, any of the directors, officers,
employees or agents of the Borrower or any Restricted Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person. No Borrowing, use of proceeds or other transaction
contemplated by this Agreement will violate Anti-Corruption Laws or any Sanctions. 
 Section 3.17 Security Interest in
Collateral. 
 (a) The provisions of the Security Agreement are effective to create in favor of the Collateral Agent, for the benefit of
the Secured Parties, legal and valid Liens on all the Collateral described therein. When financing statements in appropriate form are filed in the offices specified in the Security Agreement and, to the extent required under the Security Agreement,
upon the taking of possession or control by the Collateral Agent or the RBL Administrative Agent of the Collateral described in the Security Agreement with respect to which a security interest may be perfected only by possession or control, such
Liens shall constitute perfected and continuing Liens on the Collateral, securing the Secured Obligations, enforceable against the Loan Parties to the extent perfection can be obtained by such filings and possession or control. 

(b) Each Mortgage is effective to create in favor of the Collateral Agent, for the benefit of the Secured Parties, legal and valid Liens on
all the Property described therein. When the Mortgages are filed in the applicable county recording offices, each Mortgage shall constitute a fully perfected Lien on, and security interest in, all right, title and interest of each Loan Party that is
party to such Mortgage in that portion of the Collateral described in such Mortgage and constituting real property and fixtures affixed or attached to such real property, securing the Secured Obligations, enforceable against each such Loan Party
that is a party thereto. 
 Section 3.18 Subsidiaries. Schedule 3.18 identifies as of the Effective Date each Subsidiary
of the Borrower, noting. in each case as of the Effective Date, (a) whether such Subsidiary is a Restricted Subsidiary or an Unrestricted Subsidiary, (b) whether such Subsidiary is a Material Domestic Subsidiary, (c) the jurisdiction
of its incorporation or organization, as applicable, and (d) the percentage of issued and outstanding shares or other equity interests of each class of Equity Interests issued by such Subsidiary owned by the Borrower or any Restricted
Subsidiary. As of the Effective Date, all of the outstanding shares or other Equity Interests of each such Subsidiary are validly issued and outstanding and, to the extent applicable, fully paid and not assessable. 

Section 3.19 Insurance. The properties of the Borrower and its Subsidiaries are insured with insurance companies of recognized
financial responsibility, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the Borrower or the applicable
Subsidiary operates. 
 Section 3.20 Properties. 

(a) The Borrower and each of its Restricted Subsidiaries has good and defensible title to the Oil and Gas Properties evaluated in the most
recent Reserve Report (other than (i) those Oil and Gas Properties that have been Disposed of in compliance with Section 6.08 since the date of or delivery of such Reserve Report and (ii) leases that have expired
in accordance with their terms), and good title to, or valid leasehold interests in, licenses of, or rights to use, all its personal Properties, in each case, (A) except for those which the failure to have such title or leasehold interest or
other rights, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect and (B) free and clear of all Liens other than Permitted Liens. 

  
 69 

 (b) All leases and agreements necessary for the conduct of the business of the Borrower and
the Restricted Subsidiaries are valid and subsisting, in full force and effect, except to the extent that any such failure to be valid or subsisting or in full force and effect would not reasonably be expected to have a Material Adverse Effect. 

(c) The rights and Properties presently owned, leased or licensed by the Borrower or any Restricted Subsidiary, including all easements and
rights of way, include all rights and Properties necessary to permit the Borrower and its Restricted Subsidiaries to conduct their respective businesses as currently conducted, except to the extent any failure to have any such rights or Properties
would not reasonably be expected to have a Material Adverse Effect. 
 Section 3.21 Solvency. 

(a) Immediately after the consummation of the Transactions to occur on the Effective Date, the Borrower and its Subsidiaries, taken as a whole
on a consolidated basis, are Solvent. 
 (b) The Borrower does not intend to, nor will it permit any of its Subsidiaries to, and the
Borrower does not believe that it or any of its Subsidiaries will, incur debts beyond its ability to pay such debts as they mature, taking into account the timing of and amounts of cash to be received by it or any such Subsidiary and the timing of
the amounts of cash to be payable on or in respect of its Indebtedness or the Indebtedness of any such Subsidiary. 
 Section 3.22
No Restrictive Agreements. The Borrower and its Restricted Subsidiaries are not subject to any Restrictive Agreements other than Restrictive Agreements permitted by Section 6.06. 

Section 3.23 EEA Financial Institutions. No Loan Party is an EEA Financial Institution. 

Section 3.24 Environmental Matters. Except for such matters as set forth on Schedule 3.24 or that,
individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect: 
 (a) the Borrower and its Restricted
Subsidiaries and each of their respective Oil and Gas Properties and operations thereon are, and within all applicable statute of limitation periods have been, in compliance with all applicable Environmental Laws; 

(b) the Borrower and its Restricted Subsidiaries have obtained all Environmental Permits required for their respective ownership interests in
their Oil and Gas Properties and, with respect to any such Oil and Gas Properties operated by the Borrower or any Restricted Subsidiary, required for the operation of such Oil and Gas Properties; all such Environmental Permits are currently in full
force and effect, and neither the Borrower nor any Restricted Subsidiary 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; 
 (c) there are no claims, demands, suits, orders, investigations, 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 the Borrower’s Knowledge, threatened in writing against the Borrower or any
Restricted Subsidiary or any of their respective Oil and Gas Properties or as a result of any operations at such Oil and Gas Properties; 

(d) none of the Oil and Gas Properties of the Borrower and its Restricted Subsidiaries contain or, to the Borrower’s Knowledge, have
contained any (i) underground storage tanks; (ii) asbestos-containing materials; (iii) landfills or dumps; (iv) hazardous waste management units as defined pursuant to RCRA or any comparable state law; or (v) sites on or
nominated for the National Priorities List promulgated pursuant to CERCLA or any state remedial priority list promulgated or published pursuant to any comparable state law; 

  
 70 

 (e) (i) except as permitted under applicable Requirements of Law, (A) there has been no
Release or, to the Borrower’s Knowledge, threatened Release, of Hazardous Materials attributable to the operations of the Borrower or any Subsidiary at, on, under or from the Oil and Gas Properties of the Borrower or any Restricted Subsidiary
and (B) to the Borrower’s Knowledge, there has been no Release or threatened Release of Hazardous Materials attributable to any third-party operations at, on, under or from the Oil and Gas Properties of the Borrower or any Restricted
Subsidiary and (ii) there are no investigations, remediations, abatements, removals or monitoring of Hazardous Materials required under applicable Environmental Laws relating to such Releases or threatened Releases or at such Oil and Gas
Properties and, to the Knowledge of the Borrower, none of such Oil and Gas Properties are adversely affected by any Release or threatened Release of a Hazardous Material originating or emanating from any other Property; 

(f) neither the Borrower nor any Restricted Subsidiary has received any written notice asserting any alleged liability or obligation under any
applicable Environmental Laws with respect to the investigation, remediation, abatement, removal, or monitoring of any Hazardous Materials, including at, under, or Released or threatened to be Released from any Oil and Gas Properties of the Borrower
or any Restricted Subsidiary, and, to the Borrower’s Knowledge, there are no conditions or circumstances that would reasonably be expected to result in the receipt of such written notice; and 

(g) the Borrower and its Restricted Subsidiaries have provided to the Administrative Agent complete and correct copies of all third party
environmental site assessment reports, investigations, studies, analyses, in each case, prepared at the Borrower’s request, and correspondence on environmental matters (including matters relating to any alleged
non-compliance with or liability under Environmental Laws) reasonably requested by the Administrative Agent that are in the Borrower’s or any Restricted Subsidiary’s possession or control and
relating to their respective Oil and Gas Properties or operations thereon. 
 Section 3.25 Maintenance of Properties. Except for
such acts or failures to act as would not reasonably be expected to have a Material Adverse Effect, with respect to the Proved Reserves (and Properties unitized therewith) of the Borrower and its Restricted Subsidiaries (a) operated by the
Borrower or any Restricted Subsidiaries, such Properties have been maintained, operated and developed in a good and workmanlike manner and in conformity with all Requirements of Law 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 such Oil and Gas Properties, (b) operated by any third party, the Borrower has used its commercially reasonable efforts to cause
such Properties to be so maintained, operated and developed. Specifically in connection with the foregoing, except for those as would not be reasonably expected to have a Material Adverse Effect, (i) none of such Oil and Gas Properties 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 (ii) no well comprising a part of such Oil and Gas Properties (or Properties unitized therewith) of the Borrower or any Restricted Subsidiary is in violation of applicable Requirements of Law, and such wells are producing from, and
the well bores are wholly within, such Oil and Gas Properties (or in the case of wells located on Properties unitized therewith, such unitized Properties). All pipelines, wells, gas processing plants, platforms and other material improvements,
fixtures and equipment owned in whole or in part by the Borrower or any Restricted Subsidiary 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 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 (other than those the failure of which to maintain in accordance with this Section 3.25, individually or in the aggregate, would not reasonably be expected to have a Material
Adverse Effect). 

  
 71 

 Section 3.26 Gas Imbalances; Prepayments. As of the Effective Date,
Schedule 3.26 sets forth, on a net basis, any gas imbalances, take-or-pay or other prepayments with respect to the Proved Reserves of the
Borrower and its Restricted Subsidiaries which would require the Borrower or any Restricted Subsidiary to deliver Hydrocarbons either generally or produced from such Proved Reserves at some future time without then or thereafter receiving full
payment therefor exceeding one percent (1.0%) of the aggregate volumes of Hydrocarbons (on an Mcf basis) attributable to the Proved Reserves of the Borrower and its Restricted Subsidiaries included in the Initial Reserve Report. 

Section 3.27 Marketing of Production. As of the Effective Date, except for contracts listed on Schedule 3.27, no material
agreements exist which are not cancelable on sixty (60) days’ notice or less without penalty or detriment for the sale of production from the Loan Parties’ Hydrocarbons (including calls on or other rights to purchase, production,
whether or not the same are currently being exercised) that (a) pertain to the sale of production at a fixed price and (b) have a maturity or expiry date of longer than six (6) months from the date hereof. 

Section 3.28 Swap Agreements. Schedule 3.28, as of the Effective Date, sets forth a true and complete
list of all Swap Agreements of the Loan Parties in effect as of the Effective Date, the material terms thereof (including the type, effective date, term or termination date and notional amounts or volumes), the estimated net mark to market value
thereof, all credit support agreements relating thereto (including any margin required or supplied, but excluding the RBL Loan Documents) and the counterparty to each such agreement. 

Section 3.29 Use of Loans. The proceeds of the Loans shall be used (a) to pay fees and expenses incurred in connection with
the Transactions (including to fund any OID), (b) to finance working capital needs, and for other general corporate purposes, of the Borrower and its Restricted Subsidiaries and (c) if the Mustang Merger is consummated, to fund a portion
of the consideration for the Mustang Merger (and to temporarily reduce Indebtedness of the Loan Parties pending consummation of the Mustang Merger). 

ARTICLE IV 
 Conditions 

Section 4.01 Effective Date Conditions. The obligations of the Lenders to make Initial Loans on the Effective Date is subject to
the satisfaction, or waiver in accordance with Section 9.02, of the following conditions: 
 (a) The Administrative
Agent (or its counsel) shall have received (in each case, in form and substance acceptable to the Administrative Agent): 

(i) from each party hereto either (A) a counterpart of this Agreement signed on behalf of such party or (B) written
evidence satisfactory to the Administrative Agent (which may include facsimile or electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement; 

(ii) Notes executed by the Borrower and payable to each Lender requesting (at least one Business Day prior to the Effective
Date) a Note, duly completed and dated the Effective Date; 

  
 72 

 (iii) the Security Agreement, dated as of the Effective Date, executed by
the Borrower and each Subsidiary Guarantor party thereto; 
 (iv) the Pari Passu Intercreditor Agreement, executed by the RBL
Administrative Agent, the Administrative Agent, the Collateral Agent, the Borrower and each other party thereto and acknowledged by each Subsidiary Guarantor; 

(v) all UCC financing statements necessary or advisable to perfect the security interests created by the Security Agreement;

 (vi) from each Loan Party party thereto, a counterpart of each Mortgage, signed on behalf of such party and properly
notarized, such that the Administrative Agent shall be reasonably satisfied that such Mortgages create first priority, perfected Liens (subject only to Permitted Liens) on Mortgaged Properties which represent at least 85% of the total PV-9 of the Oil and Gas Properties evaluated in the Initial Reserve Report (the “Initial Mortgages”) (excluding the Oil and Gas Properties being acquired by the Borrower and/or any Restricted
Subsidiary pursuant to the Mustang Merger); 
 (vii) title information with respect to of the Loan Parties’ title to
Hydrocarbon Interests constituting at least 80% of the total PV-9 of the Oil and Gas Properties evaluated in the Initial Reserve Report (excluding the Oil and Gas Properties being acquired by the Borrower
and/or any Restricted Subsidiary pursuant to the Mustang Merger) and such information shall not have revealed any condition or circumstance that would reflect that the representations and warranties contained in
Section 3.20(a) are inaccurate in any material respect; 
 (viii) evidence acceptable to the
Administrative Agent that the RBL Administrative Agent is holding all original stock certificates or other certificates evidencing the certificated Equity Interests pledged pursuant to the Security Agreement, together with an undated stock power
duly executed in blank by the registered owner thereof or any other documents or instruments necessary to transfer such certificates for each such certificate; 

(ix) appropriate Lien search results or certificates (including UCC search certificates) as of a recent date reflecting no
prior Liens encumbering the assets of the Borrower or any Restricted Subsidiary other than those being released on or prior to the Effective Date or Permitted Liens; 

(x) a certificate of the secretary or assistant secretary (or other authorized officer or signatory) of each Loan Party (or the
manager or managing member of such Loan Party), dated the Effective Date, certifying on behalf of such Loan Party: 
 (A)
that attached to such certificate are (1) a true and complete copy of the certificate of incorporation (or equivalent) and bylaws (or equivalent) of such Loan Party, as in full force and effect on the Effective Date, and (2) a true and
complete copy of a certificate from the appropriate Governmental Authority of the jurisdiction of incorporation or organization of such Loan Party certifying that such Loan Party is validly existing and in good standing in such jurisdiction, dated a
recent date prior to the Effective Date, and (3) true and complete copies of certificates from the appropriate Governmental Authority of each jurisdiction in which any Loan Party owns Oil and Gas Properties constituting Collateral subject to a
Mortgage on the Effective Date evidencing that such Loan Party is in good standing and authorized to do business in such jurisdiction, dated a recent date prior to the Effective Date; 

  
 73 

 (B) that attached to such certificate is a true and complete copy of
resolutions duly adopted by the board of directors (or other applicable governing body) of such Loan Party authorizing the execution, delivery and performance of the Loan Documents to which such Loan Party is or is intended to be a party; and 

(C) as to the incumbency and specimen signature of each officer (or other authorized signatory) of each Loan Party (or the
manager or managing member of such Loan Party) executing the Loan Documents to which such Loan Party is or is intended to be a party; 

(xi) favorable, signed opinions (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of
(A) Skadden, Arps, Slate, Meagher & Flom LLP, special counsel for the Borrower, covering such matters as the Administrative Agent shall reasonably request, (B) Babst Calland, special Ohio, West Virginia and Pennsylvania counsel
for the Borrower, covering such matters relating to the Initial Mortgages to be recorded in the States of Ohio and West Virginia and the Commonwealth of Pennsylvania as the Administrative Agent shall reasonably request (and the Borrower hereby
requests each such counsel to deliver such opinions), and (C) Kean Miller LLP, special Louisiana counsel for the Borrower, covering such matters relating to the Initial Mortgages to be recorded in the State of Louisiana as the Administrative
Agent shall reasonably request (and the Borrower hereby requests each such counsel to deliver such opinions); 
 (xii) a
certificate of the Borrower executed on its behalf by an Authorized Officer dated the Effective Date, certifying: 
 (A) that
the representations and warranties of the Loan Parties set forth in this Agreement and the other Loan Documents are true and correct in all material respects (or, in the case of any such representations and warranties that are qualified as to
materiality or reference to Material Adverse Effect in the text thereof, that such representations and warranties are true and correct in all respects) on and as of the Effective Date, except to the extent made as of a specific date, which
representations and warranties shall be true and correct in all material respects as of such specific date (or, in the case of any such representation and warranties that are qualified as to materiality or Material Adverse Effect in the text
thereof, such representations and warranties being true and correct in all respects as of such specific date); 
 (B) that at
the time of and immediately after giving effect to the Borrowings to be made on the Effective Date, no Default or Event of Default has occurred and is continuing; and 

(C) as to the matters described in Section 4.01(b) and (f); 

(xiii) the Initial Reserve Report (which was heretofore delivered to the Administrative Agent); 

(xiv) (A) evidence of property and liability insurance covering the Borrower and the other Loan Parties and their Properties
satisfying the requirements of Section 5.04 and otherwise with appropriate endorsements naming both the RBL Administrative Agent, for the benefit of the Secured Parties (as defined in the RBL Credit Agreement) and the
Administrative Agent, for the benefit of the Secured Parties, as “lender loss payees” under its property loss policies to the extent insuring Collateral and as “additional insureds” on its comprehensive and general liability
policies, well control and gradual pollution policies, and (B) if requested by the Administrative Agent, copies of such insurance policies; 

  
 74 

 (xv) all then-existing or available third party environmental reports,
environmental assessments and other reports relating to the environmental condition of the Oil and Gas Properties of the Borrower and its Restricted Subsidiaries prepared at the request of the Borrower and reasonably requested by the Administrative
Agent; 
 (xvi) a certificate of the chief financial officer of the Borrower certifying, after giving effect to the
Transactions, that the Borrower and its Subsidiaries, taken as a whole on a consolidated basis, are Solvent; and 
 (xvii) a
certificate of the Borrower executed on its behalf by a Financial Officer demonstrating that, after giving effect to the Transactions to occur on the Effective Date, the Collateral Coverage Ratio will not be less than 2.00 to 1.00. 

(b) At the time of and immediately after giving effect to the draw of Initial Loans, the Borrower will not be required, pursuant to the terms
of the Secured Debt Indenture Exceptions, to equally and ratably secure any of its obligations in respect of the Senior Notes as a result of such draw (and the Borrower shall have delivered to the Administrative Agent a certificate, executed on
behalf of the Borrower by a Financial Officer, certifying the foregoing). 
 (c) There shall not have occurred any material adverse
condition or material adverse change in or affecting the business, property, financial condition or results of operations of the Borrower and its Subsidiaries, taken as a whole, since December 31, 2020. 

(d) If requested by the Administrative Agent or any Lender at least five (5) Business Days prior to the Effective Date, the
Administrative Agent or such Lender shall have received all documentation and other information required by regulatory authorities or as may be required by the internal policies of the Administrative Agent or such Lender with respect to the Loan
Parties under applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act. 
 (e)
The Administrative Agent, the Joint Lead Arrangers and the Lenders shall have received all fees and other amounts due and payable to them in connection with this Agreement on or prior to the Effective Date, including, to the extent invoiced at least
one Business Day prior to the Effective Date, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder or under
any other Loan Document (including the reasonable fees, disbursements and other charges of Sidley Austin LLP, counsel to the Administrative Agent). 

(f) No action or proceeding against any Loan Party or its Properties is pending or threatened in writing in any court or before any
Governmental Authority seeking to enjoin or prevent the execution and delivery of the Loan Documents or the borrowing of the Initial Loans hereunder. 

Without limiting the generality of Article VIII, for purposes of determining compliance with the conditions specified in this
Section 4.01, 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 thereunder 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 proposed Effective Date specifying its objection thereto. 

  
 75 

 ARTICLE V 

Affirmative Covenants 

Until Payment in Full, the Borrower covenants and agrees with the Lenders that: 

Section 5.01 Financial Statements and Other Information. The Borrower will furnish to the Administrative Agent for distribution to
each Lender: 
 (a) Not later than 90 days after the close of each of its Fiscal Years (beginning the Fiscal Year ending December 31,
2021), audited consolidated financial statements of the Borrower and its Subsidiaries for such Fiscal Year, including its consolidated balance sheet as at the end of such Fiscal Year and related consolidated statements of income, changes in equity
and cash flows for such Fiscal Year, setting forth in each case in comparative form the figures for (or, in the case of the balance sheet, as of the end of) the previous Fiscal Year, and prepared in accordance with GAAP and accompanied by an opinion
of independent certified public accountants of recognized standing, which opinion shall not be subject to any “going concern” exception and without any exception as to the scope of such audit (other than any such exception that is
expressly with respect to, or expressly resulting from, (i) an upcoming maturity date under this Agreement or other Indebtedness, (ii) any prospective default or event of default in respect of Section 6.04 or a financial covenant in
any other Indebtedness or (iii) the activities, operations, financial results, assets or liabilities of any Unrestricted Subsidiary) (it being understood and agreed that such report and opinion may include an explanatory note or emphasis of the
matter paragraph), and which opinion shall state that such audit was conducted in accordance with generally accepted auditing standards and said financial statements fairly present, in all material respects, the financial condition and results of
operation of the Borrower and its consolidated Subsidiaries on a consolidated basis as at the end of, and for, such Fiscal Year in accordance with GAAP consistently applied. 

(b) Not later than 45 days after the close of each of the first three Fiscal Quarters of each of its Fiscal Years, commencing with the Fiscal
Quarter ending March 31, 2022, unaudited consolidated financial statements of the Borrower and its Subsidiaries for such Fiscal Quarter, including its consolidated unaudited balance sheets as at the end of such Fiscal Quarter and related
consolidated unaudited statements of income, changes in equity and cash flows for such Fiscal Quarter and the then-elapsed portion of such 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 the Borrower executed on its behalf by the chief financial officer or chief accounting officer of the Borrower as presenting fairly in all
material respects the financial condition and results of operations of the Borrower and its Subsidiaries on a consolidated basis as at the end of, and for, the period covered thereby in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes. 
 (c) (i) No later than five (5) Business
Days after the delivery of each set of financial statements referred to in Sections 5.01(a) and 5.01(b), a Compliance Certificate with respect to the fiscal period covered by such financial statements and
(ii) no later than five (5) Business Days after the delivery of each set of financial statements referred to in Section 5.01(b), reasonably detailed information as to any Oil and Gas Properties acquired during the
period covered by such financial statements that are included in the calculation of Total PDP PV-10, but not reflected in the Reserve Report most recently delivered pursuant to Section 4.01(a)(xiii) or
Section 5.15. 
 (d) If, as of the last day of any fiscal period of the Borrower, any of the consolidated
Subsidiaries of the Borrower have been designated as Unrestricted Subsidiaries and such Unrestricted Subsidiaries constitute more than 5.0% of the ACNTA of the Borrower as of the last day of such fiscal period, then no later than five
(5) Business Days after any delivery of financial statements under Section 5.01(a) or 5.01(b), as applicable, a certificate of the Borrower executed on its behalf by a Financial Officer setting forth
consolidating spreadsheets that show all consolidated Unrestricted Subsidiaries and the eliminating entries. 

  
 76 

 (e) Within ten (10) Business Days after the Borrower has Knowledge that any of the
events or conditions specified below has occurred or exists with respect to any Plan or Multiemployer Plan, notice of the same and a statement, signed by the Borrower executed on its behalf by a Financial Officer describing said event or condition
and the action which the Borrower or applicable member of the Controlled Group proposes to take with respect thereto, except to the extent any such occurrence or existence (individually or in the aggregate) would not reasonably be expected to have a
Material Adverse Effect: 
 (i) the occurrence of any Reportable Event, or any waiver shall be requested under
Section 412(c) of the Code with respect to any Plan; 
 (ii) the receipt by the Borrower or any member of the Controlled
Group from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or to appoint a trustee to administer any Plan or the distribution under Section 4041(c) of ERISA of a notice of intent to terminate any
Plan, or any action taken by the Borrower, any of its Subsidiaries or any member of the Controlled Group to terminate any Plan under Section 4041(c) of ERISA or the Borrower, any of its Subsidiaries or any member of the Controlled Group incurs
any liability under Title IV of ERISA with respect to the termination of any Plan; 
 (iii) the institution by PBGC of
proceedings under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Borrower, any of its Subsidiaries or any member of the Controlled Group of a notice from any
Multiemployer Plan that such action has been taken by PBGC with respect to such Multiemployer Plan; 
 (iv) the complete or
partial withdrawal from a Multiemployer Plan by the Borrower, any of its Subsidiaries or any member of the Controlled Group that would reasonably be expected to result in liability of the Borrower, any of its Subsidiaries or such Controlled Group
member under Title IV of ERISA (including the obligation to satisfy secondary liability as a result of a purchaser default) having a Material Adverse Effect, or the receipt by the Borrower, any of its Subsidiaries or any member of the Controlled
Group of a notice from a Multiemployer Plan that it is in insolvency pursuant to Section 4245 of ERISA or that it intends to terminate or has terminated under Section 4041A of ERISA; 

(v) the receipt by the Borrower, any of its Subsidiaries or any member of the Controlled Group of any notice or the receipt by
any Multiemployer Plan from the Borrower, any of its Subsidiaries or any member of the Controlled Group of any notice concerning the imposition of any liability arising from a complete or partial withdrawal from a Multiemployer Plan or a
determination that a Multiemployer Plan is, or is expected to be, insolvent or in endangered, critical or critical and declining status; 

(vi) the institution of a proceeding by a fiduciary of any Multiemployer Plan against the Borrower, any of its Subsidiaries or
any member of the Controlled Group to enforce Section 515 of ERISA, which proceeding is not dismissed within 30 days; or 

(vii) the adoption of an amendment to any Plan that would result in the loss of tax exempt status of the trust of which such
Plan is a part if the Borrower, any of its Subsidiaries or any member of the Controlled Group fails to timely provide security to the Plan in accordance with the provisions of Sections 436 of the Code and Section 206 of ERISA. 

  
 77 

 (f) Promptly upon the filing thereof, copies of all registration statements (other than Form
S-8 or any similar form) and annual (other than Form 11-K or any similar form), quarterly, monthly or other regular reports which the Borrower or any of its Subsidiaries
files with the SEC, in each case to the extent not otherwise required to be delivered under this Agreement; provided that, all such documents shall be deemed delivered in satisfaction of this Section 5.01(f) on the date (i) such
documents are filed for public availability on the SEC’s Electronic Data Gathering and Retrieval System, (ii) on which the Borrower posts such documents, or provides a link there at swn.com (or any successor site provided to the
Administrative Agent) or (iii) on which such documents are posted on the Borrower’s behalf on any internet or intranet website, if any, to which the Administrative Agent has access. 

(g) Promptly, and in any event within five (5) Business Days, after an Authorized Officer obtains Knowledge thereof, notice of the
occurrence of a Default or Event of Default, specifying the nature thereof and what action the Borrower proposes to take with respect thereto. 

(h) Promptly, and in any event within ten (10) Business Days, after an Authorized Officer obtains Knowledge thereof, (i) the
pendency or commencement of any litigation, arbitration or governmental proceeding against the Borrower or any Subsidiary which, in the opinion of the Borrower’s management, would have or would reasonably be expected to have a Material Adverse
Effect, (ii) the institution of any proceeding against any Loan Party or any of its Restricted Subsidiaries with respect to, or the receipt of notice by such Person of potential liability or responsibility for violation or alleged violation of,
any law, rule or regulation (including any Environmental Law) which would reasonably be expected to have a Material Adverse Effect and (iii) any casualty or other insured damage to any material portion of the Collateral or the commencement of
any action or proceeding for the taking of any material portion of the Collateral or interest therein under power of eminent domain or by condemnation or similar proceeding. 

(i) (i) At least five (5) Business Days (or such shorter period of time acceptable to the Administrative Agent in its sole discretion)
prior to the date of incurrence of any Qualifying Acquisition Indebtedness, written notice from the Borrower of its intent to include Qualifying Acquisition Properties for purposes of determining compliance with clause (b) of the definition of
“Subject Debt Conditions” and (ii) no later than five (5) Business Days (or such longer period of time acceptable to the Administrative Agent in its sole discretion) after the date of incurrence of any Permitted Pari Term Loan
Indebtedness, Permitted Junior Lien Term Loan Indebtedness or Ratio-Based Incremental Indebtedness, written notice from the Borrower of such incurrence and setting forth a reasonably detailed calculation of the Collateral Coverage Ratio as of the
applicable CCR Incurrence Test Date. 
 (j) Promptly following any reasonable request therefor, (x) such other information (including
nonfinancial information) as the Administrative Agent or any other Lender through the Administrative Agent may from time to time reasonably request and (y) information and documentation reasonably requested by the Administrative Agent or any
Lender for purposes of compliance with applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act. 

Documents or information required to be delivered or provided pursuant to Section 5.01(a), (b), (e)
and (f) (to the extent any such documents or information are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the
Borrower posts the materials containing such documents or information, or provides a link thereto, on the Borrower’s website on the Internet; or (ii) on which such documents are posted on the Borrower’s behalf on an Internet or
intranet website, if any, to which each Lender has access (whether a commercial, third-party website or whether sponsored by the Administrative Agent). 

  
 78 

 Section 5.02 Books and Records; Inspection Rights. The Borrower will, and will
cause each of the Restricted Subsidiaries to, maintain a system of accounting, and keep proper books of record and account, in order to permit the preparation of financial statements in accordance with GAAP. The Borrower will, and will cause each of
the Restricted Subsidiaries to, permit the Administrative Agent, at its own expense, by its representatives and agents, to inspect any of the properties, books and financial records of the Borrower and each Restricted Subsidiary, to examine and make
copies of the books of accounts and other financial records of the Borrower and each Restricted Subsidiary, and to discuss the affairs, finances and accounts of the Borrower and each Restricted Subsidiary with, and to be advised as to the same by,
their respective officers and independent public accountants at such reasonable times and intervals during regular business hours as the Administrative Agent may designate; provided that the Borrower will bear the expenses of any such
visitation or inspection made while an Event of Default has occurred and is continuing; provided further, that any non-public information obtained by any Person during any visitation, inspection,
examination or discussion contemplated by this Section 5.02 shall be treated as confidential information in accordance with Section 9.12. The Administrative Agent shall give the Borrower the
opportunity to participate in any discussions with the Borrower’s independent public accountants. Notwithstanding anything to the contrary in this Section 5.02, (a) none of the Borrower or any of its Restricted Subsidiaries will be
required to disclose, permit the inspection, examination or making copies or abstracts of, or discussion of, any document, information or other matter that (i) constitutes non-financial trade secrets or non-financial proprietary information, (ii) in respect of which disclosure to the Administrative Agent or any Lender (or their respective representatives or contractors) is prohibited by any Requirement of Law
or any binding agreement with any third party (not entered into in contemplation thereof) or (iii) is subject to attorney-client or similar privilege or constitutes attorney work product and (b) to the extent legally permissible, the
Borrower shall notify the Administrative Agent that any such document, information or other matter is being withheld pursuant to clauses (ii) or (iii) of the preceding clause (a) and shall use commercially reasonable efforts to
communicate, to the extent permitted, the applicable information in a way that would not violate such restrictions and to eliminate such restriction. 

Section 5.03 Conduct of Business; Existence. The Borrower will, and will cause each Restricted Subsidiary to, do or cause to be
done all things necessary to maintain, preserve and keep in full force and effect (a) its existence and (b) the rights, licenses, permits, privileges and franchises necessary or desirable to the conduct of its business, except for any
failure to so maintain, preserve or keep in full force and effect the existence of any Restricted Subsidiary (other than any Subsidiary Guarantor) or any item listed in clause (b) that would not reasonably be expected to have a Material Adverse
Effect; provided that the foregoing shall not prohibit any merger, consolidation or Disposition or other transaction permitted under Section 6.01. 

Section 5.04 Maintenance of Insurance. The Borrower and its Restricted Subsidiaries will maintain (with insurance companies of
recognized financial responsibility) or cause to be maintained (including through self-insurance) insurance with respect to their property and business against such liabilities and risks, in such types and
amounts and with such deductibles or self-insurance risk retentions, in each case as are in accordance with customary industry practice for companies engaged in similar businesses operating in the same or similar locations as the Borrower and its
Restricted Subsidiaries (taken as a whole). Except as otherwise agreed by the Administrative Agent, the loss payable clauses or provisions in (a) the applicable property loss policies insuring any of the Collateral shall be endorsed in favor of
and made payable both the RBL Administrative Agent, for the benefit of the Secured Parties (as defined in the RBL Credit Agreement) and the Collateral Agent, for the benefit of the Secured Parties, as “lender loss payees” or other
formulation acceptable to the Administrative Agent, and (b) each of the Borrower’s comprehensive and general liability policies and well control and gradual pollution policies (to the extent in existence) shall name both the RBL
Administrative Agent, for the benefit of the Secured Parties (as defined in the RBL Credit Agreement) and the Collateral Agent, for the benefit of the Secured Parties, as “additional insureds” or other formulation acceptable to the
Administrative Agent. Except as otherwise 

  
 79 

 
agreed by the Administrative Agent, all policies of insurance described in clauses (a) and (b) of the preceding sentence shall provide that each insurer shall endeavor to give at least
thirty (30) days prior written notice to the Administrative Agent or the Collateral Agent of any cancellation of such insurance (or ten (10) days in the case of cancellation for non-payment of
premiums). Upon the reasonable request of the Administrative Agent from time to time, the Borrower shall deliver to the Administrative Agent information in reasonable detail as to the Borrower’s and its Subsidiaries’ insurance then in
effect, stating the names of the insurance companies, the amounts of insurance, the dates of the expiration thereof and the properties and risks covered thereby. In the event the Borrower or any other Loan Party at any time shall fail to obtain or
maintain any of the insurance required herein, then the Administrative Agent, without waiving or releasing any obligations or resulting Default hereunder, may at any time or times thereafter (but shall be under no obligation to do so) obtain and
maintain such policies of insurance and pay premiums and take any other action with respect thereto which the Administrative Agent deems advisable. All sums so disbursed by the Administrative Agent shall constitute part of the Secured Obligations,
payable as provided in this Agreement. 
 Section 5.05 Payment of Taxes and Other Obligations. The Borrower will, and will cause
each Restricted Subsidiary to, promptly pay and discharge, before the same shall become delinquent, all Taxes, assessments and governmental charges or levies imposed upon the Borrower or such Restricted Subsidiary, or upon or in respect of all or
any part of the property and business of the Borrower or such Restricted Subsidiary, and all due and payable claims for work, labor or materials which, if unpaid, might become a Lien upon any property of the Borrower or any Restricted Subsidiary
(other than claims against any such Restricted Subsidiary in a proceeding under any bankruptcy or similar law), except to the extent that (a) the validity thereof shall concurrently be contested in good faith by appropriate proceedings and the
Borrower or such Restricted Subsidiary, as applicable, shall have set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) the failure to make such payment or discharge the same would not reasonably be
expected to result in a Material Adverse Effect. 
 Section 5.06 Compliance with Laws. 

(a) The Borrower will, and will cause each of its Restricted Subsidiaries and each member of the Controlled Group to, comply with respect to
each Plan and Multiemployer Plan, with all applicable provisions of ERISA and the Code, except to the extent that any failure to comply would not (individually or in the aggregate) reasonably be expected to have a Material Adverse Effect. 

(b) The Borrower will, and will cause each Restricted Subsidiary to, (i) comply with all Requirements of Law applicable to it or its
property (including Environmental Laws) and (ii) perform in all material respects its obligations under material agreements to which it is a party, except in the case of each of clauses (i) and (ii) where the failure to do so, individually
or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect. 
 (c) The Borrower will maintain in effect
and enforce policies and procedures designed to ensure compliance by the Borrower, its Restricted Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. 

Section 5.07 Maintenance of Properties. The Borrower will, and will cause each Restricted Subsidiary to, except in each case,
where the failure to so comply or cause to comply would not reasonably be expected to result in a Material Adverse Effect: 
 (a) operate
its Proved Reserves and other material Properties related thereto in accordance with the customary practices of the industry and in compliance with all applicable contracts and agreements and in compliance with all applicable Requirements of Law,
including applicable proration requirements and Environmental Laws, from time to time constituted to regulate the development and operation of such Proved Reserves and the production and Disposition of Hydrocarbons and other minerals therefrom; 

  
 80 

 (b) maintain and keep in good repair, working order and efficiency (ordinary wear and tear
excepted) all of its Proved Reserves and other Properties material to the conduct of its business, including all equipment, machinery and facilities, unless the Borrower determines in good faith that the continued maintenance of such Property or
Proved Reserves is no longer economically desirable, necessary or useful to the business of the Loan Parties or such Proved Reserves or Property is sold, assigned, Disposed of or transferred in a transaction permitted by
Section 6.08; 
 (c) promptly pay and discharge all delay rentals, royalties, expenses and indebtedness accruing
under the leases or other agreements affecting or pertaining to its Proved Reserves and will do all other things necessary, in accordance with industry standards, to keep unimpaired its rights with respect thereto and prevent any forfeiture thereof
or default thereunder; 
 (d) promptly perform in accordance with industry standards, the material obligations required by each and all of
the assignments, deeds, leases, sub-leases, contracts and agreements affecting its interests in its Proved Reserves and other material Properties; and 

(e) to the extent that neither the Borrower nor any Restricted Subsidiary is the operator of any Property, use commercially reasonable efforts
to cause the operator to comply with the requirements of this Section 5.07. 
 Section 5.08 Designation of
Unrestricted Subsidiaries; Redesignation of Unrestricted Subsidiaries as Restricted Subsidiaries. 
 (a) Unless designated
as an Unrestricted Subsidiary pursuant to this Section 5.08, each Subsidiary shall be classified as a Restricted Subsidiary. 

(b) If the Borrower designates any Subsidiary as an Unrestricted Subsidiary after the Effective Date pursuant to paragraph
(c) below, the Borrower shall be deemed to have made an Investment in such Unrestricted Subsidiary in an amount equal to the fair market value as of the date of such designation of the consolidated assets of such Subsidiary (as
determined by the Borrower in good faith). 
 (c) The Borrower may designate, by written notice to the Administrative Agent, any Subsidiary
to be an Unrestricted Subsidiary if (i) immediately before and immediately after giving effect to such designation, no Default or Event of Default shall exist, (ii) the Borrower shall be in Pro Forma Collateral Coverage Ratio Compliance
immediately after giving effect to such designation, (iii) the deemed Investment by the Borrower in such Unrestricted Subsidiary resulting from such designation would be permitted to be made at the time of such designation under
Section 6.05, (iv) such Subsidiary otherwise meets the requirements set forth in the definition of “Unrestricted Subsidiary”, (v) no Subsidiary may be designated as an Unrestricted Subsidiary if, after such
designation hereunder, it would be a “Restricted Subsidiary” for the purpose of any Incremental Equivalent Indebtedness, and (vi) such Subsidiary is designated as an Unrestricted Subsidiary under the RBL Credit Facility (if such
concept exists under the RBL Credit Facility) and any Incremental Equivalent Indebtedness; provided, however, that any such designation by the Borrower of a Subsidiary as an Unrestricted Subsidiary shall constitute a Disposition of Proved Reserves
if such Subsidiary owns Proved Reserves prior to such designation. Such written notice shall be accompanied by a certificate of the Borrower executed on its behalf by a Financial Officer, certifying as to the matters set forth in the preceding
sentence. 

  
 81 

 (d) The Borrower may designate any Unrestricted Subsidiary to be a Restricted Subsidiary if,
immediately after giving effect to such designation: (i) the representations and warranties of the Loan Parties contained in each of the Loan Documents are true and correct in all material respects (or, in the case of any such representations
and warranties that are qualified as to materiality in the text thereof, such representations and warranties must be true and correct in all respects) on and as of the date of such designation as if made on and as of the date of such designation
(or, if stated to have been made expressly as of an earlier date, were true and correct in all material respects as of such date), (ii) no Default or Event of Default would exist, (iii) any Indebtedness of such Subsidiary (which shall be deemed
to be incurred by a Restricted Subsidiary as of the date of designation) is permitted to be incurred as of such date under Section 6.03 (iv) any Liens on Property of such Subsidiary (which shall be deemed to be created
or incurred by a Restricted Subsidiary as of the date of designation) are Permitted Liens, and (v) such Subsidiary is designated as an Restricted Subsidiary under the RBL Credit Facility (if such concept exists under the RBL Credit Facility).

 (e) Notwithstanding anything to the contrary, no Subsidiary may be designated as an Unrestricted Subsidiary if, either immediately before
or immediately after such designation hereunder, it owns any Material Intellectual Property. 
 Section 5.09 Additional Subsidiary
Guarantors. In the event that any Person becomes a Wholly-Owned Subsidiary that is a Material Domestic Subsidiary (or is designated by the Borrower as, or is deemed designated as, a Material Domestic Subsidiary pursuant to the definition of
“Material Domestic Subsidiary”) or guarantees the RBL Credit Facility, whether pursuant to formation, acquisition or otherwise, the Borrower shall promptly (and, in any event, within thirty (30) days after such formation,
acquisition or other event, as such time period may be extended by the Administrative Agent in its sole discretion) (i) cause such Person to become a Subsidiary Guarantor by delivering to the Collateral Agent a duly executed supplement to
the Subsidiary Guaranty and the Security Agreement, (ii) cause all of the issued and outstanding Equity Interests of such Person owned by a Loan Party to be subject to a first priority, perfected Lien in favor of the Collateral Agent to secure
the Secured Obligations in accordance with the terms and conditions of, and subject to the exceptions set forth in, the Collateral Documents, subject in any case to Liens created under the Loan Documents, and restrictions on transfer imposed by
applicable securities laws and other Liens permitted hereunder that arise by operation of law and (x) if any of such Equity Interests consist of certificated securities, deliver to the Collateral Agent (subject to the Pari Passu Intercreditor
Agreement) the certificates representing such securities, in each case with appropriate endorsements or transfer powers, and (y) if any of such Equity Interests consist of uncertificated securities, enter into a control agreement with the
issuer of such Equity Interests granting the Collateral Agent control (within the meaning of the UCC) over such uncertificated securities, in each case subject to the Pari Passu Intercreditor Agreement, and (iii) deliver to the Administrative
Agent appropriate resolutions, other Organizational Documents and legal opinions, in each case as may be reasonably requested by the Administrative Agent, in each case, in substantially the forms attached to such Loan Document or substantially
similar to those documents delivered on the Effective Date pursuant to Section 4.01(a)(x) and ((xi)), to the extent applicable, or which shall otherwise be in form and substance reasonably satisfactory to the
Administrative Agent. 
 Section 5.10 Additional Collateral; Further Assurances. 

(a) In connection with the delivery to the Administrative Agent of each Reserve Report, but subject to the provisions of Section 5.12,
the Borrower shall review such Reserve Report and the list of then-current Mortgaged Properties (as described in Section 5.15(c)(iv)) to ascertain whether the Mortgaged Properties represent at least 85% of the total PV-9 of the Proved Oil and Gas Properties evaluated by such Reserve Report. In the event that the Mortgaged Properties do not represent at least 85% of such total PV-9, then
the Borrower shall, and shall cause the other Loan Parties to, grant, on or prior to the earlier of (i) 

  
 82 

 
sixty (60) days after delivery of the certificate required under Section 5.15(c) and (ii) thirty (30) days after the Administrative Agent notifies the Borrower
that the Mortgaged Properties do not represent at least 85% of such total PV-9 (or, in each case, such later date as the Administrative Agent may agree in its sole discretion), to the Collateral Agent as
security for the Secured Obligations a first priority Lien (subject only to Permitted Liens) on additional Oil and Gas Properties not already subject to a Lien of the Collateral Documents such that after giving effect thereto, the Mortgaged
Properties will represent at least 85% of such total PV-9. All such Liens will be created and perfected by and in accordance with the Collateral Documents, including, if applicable, any additional Mortgages. 

(b) Without limiting the foregoing, the Borrower shall, and shall cause each Loan Party to, execute and deliver, or cause to be executed and
delivered, to the Collateral Agent such documents, agreements, instruments, forms and notices and will take or cause to be taken such further actions (including the filing and recording of financing statements, fixture filings, Mortgages and other
documents serving notices of assignment and such other actions or deliveries of the type required by Section 4.01) which may be required by Requirements of Law or which the Collateral Agent may, from time to time,
reasonably request to carry out the terms and conditions of this Agreement and the other Loan Documents and to ensure perfection and priority of the Liens created or intended to be created by the Collateral Documents, all at the expense of the Loan
Parties and subject to the Pari Passu Intercreditor Agreement. 
 (c) In connection with the incurrence of any Permitted Pari Term Loan
Indebtedness, Permitted Junior Lien Term Loan Indebtedness or Ratio-Based Incremental Indebtedness, the Borrower shall review the Term Loan Incurrence Engineering Report delivered in connection therewith and the then-current list of Mortgaged
Properties (which, if different than the schedule attached to the Reserve Report Certificate most recently delivered pursuant to Section 5.15(c), shall be provided to the Administrative Agent) to ascertain whether the
Mortgaged Properties represent at least 85% of the total PV-9 of the related Term Loan Incurrence Engineering Report Properties. In the event that the Mortgaged Properties do not represent at least 85% of such
total PV-9, then the Borrower shall, and shall cause the other Loan Parties to, grant, on or prior to the date that is thirty (30) days (or such longer period of time as the Administrative Agent may agree
in its sole discretion) after the incurrence of such Permitted Pari Term Loan Indebtedness, Permitted Junior Lien Term Loan Indebtedness or Ratio-Based Incremental Indebtedness (or, if such Indebtedness is being incurred in connection with an
acquisition of Oil and Gas Properties and/or a Subsidiary owning Oil and Gas Properties, thirty (30) days (or such longer period of time as the Administrative Agent may agree in its sole discretion) after the consummation of such acquisition),
to the Collateral Agent as security for the Secured Obligations a first priority Lien (subject to Permitted Mortgaged Property Liens) on additional Oil and Gas Properties not already subject to a Lien of the Collateral Documents such that after
giving effect thereto, the Mortgaged Properties will represent at least 85% of such total PV-9. All such Liens will be created and perfected by and in accordance with the Collateral Documents, including, if applicable, any additional Mortgages. 

Section 5.11 Title Information. 

(a) In connection with the delivery to the Administrative Agent of each Reserve Report required by Section 5.15(a),
the Borrower will deliver to the Administrative Agent title information in form and substance reasonably acceptable to the Administrative Agent but consistent with usual and customary standards for the geographic regions in which the Proved Oil and
Gas Properties evaluated by such Reserve Report are located covering enough of the Proved Oil and Gas Properties so that the Administrative Agent shall have received (together with title information previously delivered to the Administrative Agent)
satisfactory title information on at least 80% of the total PV-9 of the Proved Oil and Gas Properties evaluated by such Reserve Report. 

  
 83 

 (b) If the Borrower has provided title information for Proved Oil and Gas Properties under
Section 5.11(a), the Borrower shall, within sixty (60) days after notice from the Administrative Agent (or such longer period as the Administrative Agent may agree in its sole discretion) that title defects or
exceptions exist with respect to such Proved Oil and Gas Properties, either (i) cure any such asserted title defects or exceptions (including defects or exceptions as to priority) which are not Permitted Liens raised by such title information,
(ii) substitute acceptable Mortgaged Properties with no title defects or exceptions (except for Permitted Liens) having an equivalent or greater PV-9 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 80% of the
total PV-9 of the Proved Oil and Gas Properties evaluated by such Reserve Report. 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 specified in this Section 5.11(b) (or such longer period as the Administrative Agent may agree in its reasonable discretion) or the Borrower does not substitute acceptable
Mortgaged Properties or the Borrower does not comply with the requirement to provide acceptable title information on at least 80% of the total 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 remedy described in the immediately following sentence 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 aforementioned 60-day period has elapsed, (i) the Borrower shall, within fifteen (15) days after the last day of such 60-day period, resubmit a revised Reserve Report to the Administrative Agent removing such unacceptable Mortgaged Properties and such revised Reserve Report shall constitute the most recently delivered Reserve
Report for all purposes under this Agreement and (ii) the Collateral Coverage Ratio shall be recalculated as of the date such revised Reserve Report is delivered to the Administrative Agent and compliance with respect to such ratio shall be
based upon the revised Reserve Report delivered under clause (i) above. 
 (c) In connection with the incurrence of any Permitted Pari
Term Loan Indebtedness, Permitted Junior Lien Term Loan Indebtedness or Ratio-Based Incremental Indebtedness and, in each case, the delivery of the related Term Loan Incurrence Engineering Report in connection therewith, the Borrower will deliver to
the Administrative Agent, within thirty (30) days (or such longer period of time as the Administrative Agent may agree in its sole discretion) after the incurrence of such Permitted Pari Term Loan Indebtedness, Permitted Junior Lien Term Loan
Indebtedness or Ratio-Based Incremental Indebtedness (or, if such Indebtedness is being incurred in connection with an acquisition of Oil and Gas Properties and/or a Subsidiary owning Oil and Gas Properties, thirty (30) days (or such longer
period of time as the Administrative Agent may agree in its sole discretion) after the consummation of such acquisition), title information in form and substance reasonably acceptable to the Administrative Agent (but consistent with usual and
customary standards for the geographic regions in which the related Term Loan Incurrence Engineering Report Properties are located) covering enough of the Proved Oil and Gas Properties so that the Administrative Agent shall have received (together
with title information previously delivered to the Administrative Agent) satisfactory title information on at least 80% of the total PV-9 of the related Term Loan Incurrence Engineering Report Properties. 

Section 5.12 Post-Effective Date/Post-Mustang Merger Obligations. 

(a) Within 30 days after the date of consummation of the Mustang Merger (or such later date as may be acceptable to the Administrative Agent
in its sole discretion), the Borrower shall, and shall cause each other applicable Loan Party to, deliver to the Administrative Agent counterparts of Mortgages covering Oil and Gas Properties acquired (directly or indirectly) by the Borrower and its
Restricted Subsidiaries pursuant to the Mustang Merger, signed on behalf of each applicable Loan Party and properly 

  
 84 

 
notarized, such that the Administrative Agent shall be reasonably satisfied that such Mortgages (the “Post-Effective Date Mortgages”), together with the other Mortgages delivered
by the Loan Parties on or prior to such date, create first priority, perfected Liens (subject only to Permitted Liens) on Mortgaged Properties which represent at least 85% of the total PV-9 of the Proved Oil
and Gas Properties evaluated in the Initial Reserve Report. 
 (b) Within 30 days after the date of consummation of the Mustang Merger (or
such later date as may be acceptable to the Administrative Agent in its sole discretion), the Borrower shall, and shall cause each other applicable Loan Party to, deliver to the Administrative Agent title information with respect to of the Loan
Parties’ title to Hydrocarbon Interests constituting at least 80% of the total PV-9 of the Oil and Gas Properties evaluated in the Initial Reserve Report and such information shall not have revealed any
condition or circumstance that would reflect that the representations and warranties contained in Section 3.20(a) are inaccurate in any material respect. 

(c) Within 60 days after the Effective Date (or such later date as may be acceptable to the Administrative Agent in its sole discretion), the
Borrower shall, and shall cause each other Loan Party to, deliver to the Collateral Agent Deposit Account Control Agreements (in each case duly executed and delivered by such Loan Party and the applicable depositary bank) covering each Deposit
Account of such Loan Party existing as of the Effective Date (other than Excluded Accounts). 
 (d) Within 60 days after the Effective Date
(or such later date as may be acceptable to the Administrative Agent in its sole discretion), the Borrower shall, and shall cause each other Loan Party to, deliver to the Collateral Agent Securities Account Control Agreements (in each case duly
executed and delivered by such Loan Party and the applicable securities intermediary) covering each Securities Account of such Loan Party existing as of the Effective Date (other than Excluded Accounts). 

Section 5.13 Deposit Accounts and Securities Accounts. Subject to Section 5.12 and the terms of the
Security Agreement, each Deposit Account of the Borrower or any Subsidiary Guarantor (other than an Excluded Account) shall at all times be a Controlled Account and each Securities Account of the Borrower or any Subsidiary Guarantor (other than an
Excluded Account) shall at all times be a Controlled Account. 
 Section 5.14 [Reserved]. 

Section 5.15 Reserve Reports; Quarterly Engineering Reports. 

(a) On or about March 1st and September 1st of each year (commencing with March 1, 2022) (or such other dates required under the RBL Credit Facility for delivery of regularly scheduled reserve reports), the Borrower shall furnish to the
Administrative Agent a Reserve Report evaluating the Proved Oil and Gas Properties of the Borrower and the other Loan Parties as of the immediately preceding January 1st and July 1st, respectively (or such other dates required under the RBL Credit Facility for the “as of” date for regularly scheduled reserve reports), including a summary of the estimated net reserves
and future net revenues for such Proved Oil and Gas Properties (which summary shall be furnished by the Administrative Agent to the Lenders). The Reserve Report as of January 1st and
delivered on or about March 1st of each year (or such other dates required under the RBL Credit Facility with respect to the same) (the “January 1 Reserve
Report”) shall be prepared by one or more Approved Petroleum Engineers or prepared internally by petroleum engineers of the Borrower and audited by one or more Approved Petroleum Engineers. Each other Reserve Report may be prepared by one
or more Approved Petroleum Engineers or internally under the supervision of the senior reserve engineer of the Borrower who shall certify such Reserve Report to have been prepared substantially in accordance with the procedures used in the
immediately preceding January 1 Reserve Report, except as otherwise specified therein. 

  
 85 

 (b) In addition to (but without duplication of) the Reserve Reports required to be delivered
by the Borrower pursuant to Section 5.15(a), prior to the Discharge of RBL Obligations, the Borrower shall furnish to the Administrative Agent each other Reserve Report provided to the RBL Administrative Agent pursuant to
the terms of the RBL Credit Agreement (or pursuant to the terms of any other RBL Credit Facility) and not otherwise required to be delivered to the Administrative Agent pursuant to this Section 5.15, in each case, together
with any “Reserve Report Certificate” (as defined in the RBL Credit Agreement or, as applicable, other RBL Credit Facility) delivered by the Borrower to the RBL Administrative Agent in connection therewith. 

(c) With the delivery of each Reserve Report, the Borrower shall provide to the Administrative Agent a certificate (the “Reserve
Report Certificate”) from the Borrower executed on its behalf by an Authorized Officer certifying that in all material respects: (i) there are no statements or conclusions in such 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 such projections concerning volumes attributable to the Proved Oil and Gas Properties and production
and cost estimates contained in the Reserve Report are necessarily based upon professional opinions, estimates and projections and that the Borrower does not warrant that such opinions, estimates and projections will ultimately prove to have been
accurate, (ii) the Borrower and the applicable Restricted Subsidiaries have good and defensible title to the Oil and Gas Properties evaluated in such Reserve Report and such Properties are free of all Liens except for Permitted Liens,
(iii) none of the Proved Oil and Gas Properties of the Borrower or any other Loan Party have been Disposed since the date of the immediately preceding Reserve Report to the date of the Reserve Report being delivered except (A) for
Dispositions that have resulted in a change to such Person’s working interests and/or net revenue interests in Oil and Gas Properties that are reflected in such Reserve Report and (B) as set forth on an exhibit to the certificate, which
exhibit shall list all of its Oil and Gas Properties Disposed and in such detail as reasonably required by the Administrative Agent and (iv) in the case of each Reserve Report, attached thereto is a schedule of the Proved Oil and Gas Properties
evaluated by such Reserve Report that are Mortgaged Properties and demonstrating the percentage of the total PV-9 of the Proved Oil and Gas Properties (calculated as of the date of such Reserve Report) that
the value of such Mortgaged Properties represent. 
 (d) Not later than (i) 45 days after the close of each of the first three Fiscal
Quarters of each Fiscal Year (commencing with the Fiscal Quarter ending March 31, 2022) and (ii) 90 days after the close of the last Fiscal Quarter of each Fiscal Year (beginning the Fiscal Year ending December 31, 2021), the Borrower
shall deliver an update to the most recent Reserve Report delivered as of the immediately preceding March 1st or September 1st, as
applicable, setting forth the Oil and Gas Properties of the Loan Parties constituting Proved Developed Producing Reserves as of the last day of such Fiscal Quarter or Fiscal Year, as applicable (each such updated report, a “Quarterly
Engineering Report”). Each such Quarterly Engineering Report (i) shall have been adjusted to reflect the production levels since the delivery of the most recent Reserve Report and Oil and Gas Properties that have been Disposed of or
acquired since the date of delivery of such Reserve Report, (ii) shall be based on an updated Five-Year Strip Price as of the last day of the relevant Fiscal Quarter, (iii) shall be prepared by one or more Approved Petroleum Engineers or
by or under the supervision of the senior reserve engineer of the Borrower to have been prepared substantially in accordance with the procedures used in the immediately preceding January 1 Reserve Report (or the equivalent delivered pursuant to
the RBL Credit Facility), except as otherwise specified therein and (iv) shall otherwise be “rolled forward” in a manner reasonably acceptable to the Administrative Agent. 

  
 86 

 ARTICLE VI 

Negative Covenants 
 Until
Payment in Full, the Borrower covenants and agrees with the Lenders that: 
 Section 6.01 Fundamental Changes. The Borrower will
not, and will not permit any Restricted Subsidiary to, merge or consolidate with or into any other Person or permit any other Person to merge or consolidate with or into it, or liquidate or dissolve, and the Borrower will not Dispose of (whether in
one transaction or a series of transactions and whether directly or indirectly) all or substantially all of the assets of the Borrower and its Restricted Subsidiaries on a consolidated basis; provided that: 

(a) any Restricted Subsidiary may merge or consolidate with or into the Borrower so long as the Borrower is the surviving or continuing Person;

 (b) any Restricted Subsidiary may merge or consolidate with or into any other Restricted Subsidiary; provided that if such merger
or consolidation involves a Subsidiary Guarantor, a Subsidiary Guarantor shall be the surviving or continuing Person; 
 (c) any Restricted
Subsidiary may Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise) to the Borrower or any other Restricted Subsidiary; provided that if such Disposition is by a Subsidiary Guarantor, a Loan Party shall
be the acquirer of such assets; 
 (d) any Disposition permitted by Section 6.08 and any merger or consolidation
the purpose of which is to effect a Disposition permitted by Section 6.08 may be consummated; 
 (e) any Person
(other than the Borrower or a Restricted Subsidiary) may merge with or into the Borrower or any Restricted Subsidiary in connection with any Permitted Acquisition or any other Investment permitted hereunder; provided that (A) if such
merger or consolidation involves the Borrower, the Borrower shall be the surviving or continuing Person and (B) if such merger or consolidation involves a Subsidiary Guarantor, a Subsidiary Guarantor shall be the surviving or continuing Person;
and 
 (f) any Restricted Subsidiary may liquidate or dissolve (i) if the Borrower determines in good faith that such liquidation or
dissolution is in the best interest of the Borrower and its Restricted Subsidiaries and is not materially disadvantageous to the Lenders and (ii) if such Restricted Subsidiary is a Loan Party, all of the assets of such Restricted Subsidiary
shall be transferred to another Loan Party or otherwise Disposed of in a manner permitted by Section 6.08 prior or after giving effect to such liquidation or dissolution. 

Section 6.02 Liens. The Borrower will not, and will not permit any Restricted Subsidiary to, create, incur, assume or permit to
exist any Lien on any property or asset now owned or hereafter acquired by it, except for the following (collectively, “Permitted Liens”): 

(a) (i) Liens created pursuant to any Loan Document, (ii) Liens securing the RBL Secured Obligations; provided that, with respect to
clause (ii), such Liens are at all times subject to the Pari Passu Intercreditor Agreement and (iii) Liens securing Incremental Equivalent Indebtedness permitted hereunder; 

(b) Liens for taxes, assessments or governmental charges or levies on its property if the same shall not at the time be delinquent or
thereafter can be paid without penalty or, provided the Borrower or any Restricted Subsidiary knew or should have known of such Liens, are being actively contested in good faith and by appropriate proceedings and for which adequate reserves shall
have been set aside on its books in accordance with GAAP (to the extent required thereby); 

  
 87 

 (c) Liens imposed by law, such as carriers’, warehousemen’s, materialmen’s,
repairmen’s, operators’, royalty, surface damages and mechanics’ liens and other similar liens, including Liens under operating agreements, joint venture agreements, oil and gas partnership agreements, oil and gas leases, farm-out agreements, division orders, contracts for the Disposition, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual interest agreements,
overriding royalty agreements, gathering agreements, marketing agreements, processing agreements, net profits agreements, development agreements, gas balancing or deferred production agreements, injection, repressuring and recycling agreements, salt
water or other disposal agreements, seismic or other geophysical permits or agreements, and other agreements which are usual and customary in the oil and gas business, in each case, arising in the ordinary course of business which secure payment of
obligations not more than 90 days past due or which are being contested in good faith by appropriate proceedings; 
 (d) Liens incurred in
the ordinary course of business (i) arising out of pledges or deposits under workmen’s compensation laws, unemployment insurance, old age pensions, or other social security or retirement benefits, or similar legislation, (ii) to
secure the performance of letters of credit, bids, tenders, sales contracts, leases (including rent security deposits), statutory obligations, surety, appeal and performance bonds, joint operating agreements or other similar agreements and other
similar obligations not incurred in connection with the borrowing of money, the obtaining of advances or the payment of the deferred purchase price of property or (iii) consisting of deposits which secure public or statutory obligations of the
Borrower or any Restricted Subsidiary, or surety, custom or appeal bonds to which the Borrower or any Restricted Subsidiary is a party, or the payment of contested taxes or import duties of the Borrower or any Restricted Subsidiary; 

(e) utility easements, building restrictions and such other encumbrances or charges against real property as are of a nature generally
existing with respect to properties of a similar character and which do not in any material way affect the marketability of the same or interfere with the use thereof in the business of the Borrower or the Restricted Subsidiaries; 

(f) attachment, judgment and other similar Liens arising in connection with court proceedings that would not constitute an Event of Default;

 (g) Liens on property of a Restricted Subsidiary securing obligations of such Restricted Subsidiary owing to the Borrower or another
Restricted Subsidiary; 
 (h) Liens on fixed or capital assets acquired, constructed or improved by the Borrower or any Restricted
Subsidiary; provided that (i) such Liens secure Indebtedness permitted by Section 6.03(d), (ii) such Liens and the Indebtedness secured thereby are incurred prior to or within 270 days after such acquisition or
the completion of such construction or improvement, (iii) the Indebtedness secured thereby does not exceed the cost of acquiring, constructing or improving such fixed or capital assets and (iv) such Liens shall not apply to any other
property or assets of the Borrower or any Restricted Subsidiary; 
 (i) Liens existing on any property or asset prior to the acquisition
thereof by the Borrower or any Restricted Subsidiary or existing on any property or asset of any Person that becomes a Restricted Subsidiary after the Effective Date prior to the time such Person becomes a Restricted Subsidiary; provided that
(i) such Liens are not created in contemplation of or in connection with such acquisition or such Person becoming a Restricted Subsidiary, as the case may be, (ii) such Liens shall not apply to any other property or assets of the Borrower
or any Restricted Subsidiary and (iii) such Liens shall secure only those obligations which they secure on the date of such acquisition or the date such Person becomes a Restricted Subsidiary, as the case may be; 

(j) any right which any municipal or governmental body or agency may have by virtue of any franchise, license, contract or statute to
purchase, or designate a purchaser of or order the Disposition of, any Property of the Borrower or any Restricted Subsidiary upon payment of reasonable compensation therefor or to terminate any franchise, license or other rights or to regulate the
property and business of the Borrower or any Restricted Subsidiary; 

  
 88 

 (k) easements or reservations in respect of any property of the Borrower or any Restricted
Subsidiary for the purpose of rights-of-way and similar purposes, reservations, restrictions, covenants, party wall agreements, conditions of record and other
encumbrances (other than to secure the payment of money) and minor irregularities or deficiencies in the record and evidence of title, which in the reasonable opinion of the Borrower (at the time of the acquisition of the property affected or
subsequently) will not interfere in any material way with the proper operation and development of the property affected thereby; 
 (l)
Liens existing on the Effective Date and set forth on Schedule 6.02, and any extensions, renewals and replacements thereof, so long as there is no increase in the Indebtedness secured thereby (other than amounts incurred to
pay costs of renewal and replacement) and no additional property (other than accessions, improvements and replacements in respect of such property) is subject to such Lien; 

(m) rights of lessors under oil, gas or mineral leases arising in the ordinary course of business; 

(n) any extension, renewal or replacement (or successive extensions, renewals or replacements), in whole or in part, of any Lien referred to
in the foregoing clauses; provided that the principal amount of Indebtedness secured thereby shall not exceed the principal amount of Indebtedness so secured at the time of such extension, renewal or replacement and such extension, renewal or
replacement Lien shall be limited to all or a part of the property which secured the Lien so extended, renewed or replaced (plus improvements on such property); 

(o) Liens which may attach after the Effective Date to undeveloped real estate not containing oil or gas reserves in the ordinary course of
the Borrower’s real estate sales, development and rental activities; 
 (p) ground leases in respect of real property on which
facilities owned or leased by the Borrower or any of its Restricted Subsidiaries are located; 
 (q) any interest or title of a lessor under
any lease entered into by the Borrower or any Restricted Subsidiary in the ordinary course of its business and covering only the assets so leased; 

(r) Liens arising from precautionary UCC financing statements or similar filings made in respect of operating leases; 

(s) Liens on cash and cash equivalents of the Loan Parties and the Restricted Subsidiaries (i) in favor of counterparties to Swap
Agreements with any Loan Party or any Restricted Subsidiary to secure obligations under such Swap Agreements and (ii) in favor of issuing banks to secure obligations in respect of letters of credit issued by such issuing banks; provided that,
at the time of incurrence thereof, the aggregate principal amount of obligations then outstanding and secured in reliance on this clause (s) shall not exceed greater of $20,000,000 and 0.50% of ACNTA (as of the last day of the most recently
ended Fiscal Quarter for which financial statements have been delivered or are required to have been delivered pursuant to Section 5.01 (or for the period of time prior to the first such delivery after the Effective Date,
the Borrower’s financial statements for the Fiscal Quarter ended September 30, 2021)); 
 (t) Liens (to the extent not securing
obligations for borrowed money) created pursuant to construction, operating and maintenance agreements, transportation agreements and other similar agreements and related documents entered in the ordinary course of business; 

  
 89 

 (u) Liens that are contractual rights of set-off,
revocation, refund, or chargeback (i) relating to the establishment of depository relations with banks not given in connection with the issuance of Indebtedness, (ii) relating to pooled deposits or sweep accounts to permit satisfaction of
overdraft or similar obligations incurred in the ordinary course of business or (iii) relating to purchase orders and other agreements entered in the ordinary course of business; 

(v) Liens solely on any cash earnest money deposits or escrow arrangements made by the Borrower or any of its Restricted Subsidiaries in
connection with any letter of intent or purchase agreement relating to any acquisition of property permitted hereunder; 
 (w) Liens
securing Permitted Pari Term Loan Indebtedness and/or Permitted Junior Lien Term Loan Indebtedness, in each case, to the extent permitted under Section 6.03(n); and 

(x) additional Liens; provided that (i) at the time of incurrence thereof, the aggregate principal amount of obligations then outstanding
and secured in reliance on this clause (x) shall not exceed greater of $50,000,000 and 1.25% of ACNTA (as of the last day of the most recently ended Fiscal Quarter for which financial statements have been delivered or are required to have been
delivered pursuant to Section 5.01 (or for the period of time prior to the first such delivery after the Effective Date, the Borrower’s financial statements for the Fiscal Quarter ended September 30, 2021)) and
(ii) in the case of any Liens incurred pursuant to this clause (x) on the Collateral securing obligations in excess of $10,000,000, the applicable secured parties (or a representative or agent on their behalf) to shall enter into the Pari
Passu Intercreditor Agreement (if such Liens are secured on a pari passu basis with the Secured Obligations) or Junior Lien Intercreditor Agreement (if such Liens are secured on a junior lien basis with the Secured Obligations). 

The expansion of obligations secured by Liens by virtue of accrual of interest, the accretion of accreted value, the payment of interest or
dividends in the form of additional Indebtedness, amortization of original issue discount and increases in the amount of Indebtedness outstanding solely as a result of fluctuations in the exchange rate of currencies will not be deemed to be an
incurrence of Liens for purposes of this Section 6.02. 
 For purposes of determining compliance with this Section 6.02, if any
Lien (or a portion thereof) would be permitted pursuant to one or more provisions described above (except with respect to Section 6.02(a)(i)), the Borrower may divide and classify such Lien (or a portion thereof) in any manner that complies
with this covenant and may later divide and reclassify any such Lien so long as the Lien (as so divided and/or reclassified) would be permitted to be made in reliance on the applicable exception as of the date of such reclassification. 

Section 6.03 Indebtedness. The Borrower will not, and will not permit any Restricted Subsidiary to, create, incur, assume or
permit to exist any Indebtedness, except: 
 (a) the Secured Obligations; 

(b) Permitted Existing Indebtedness and Permitted Refinancing Indebtedness in respect thereof; 

(c) Indebtedness arising from intercompany loans and advances owing by the Borrower or any Restricted Subsidiary to the Borrower, any
Restricted Subsidiary or any Unrestricted Subsidiary; provided that any such intercompany loans and advances shall be subject to the limitations set forth in Section 6.05; 

  
 90 

 (d) Indebtedness of the Borrower or any Restricted Subsidiary incurred to finance the
acquisition, construction or improvement of any fixed or capital assets, including Capital Lease Obligations and any Indebtedness assumed in connection with the acquisition of any such assets or secured by a Lien on any such assets prior to the
acquisition thereof, and extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding principal amount thereof, provided that (i) such Indebtedness is incurred prior to or within 270 days after
such acquisition or the completion of such construction or improvement, (ii) at the time of incurrence thereof, the aggregate principal amount of Indebtedness then outstanding in reliance on this Section 6.03(d) (other
than any Capital Lease Obligations incurred to refinance or replace any lease that was classified as an operating lease in accordance with GAAP at the time such lease was entered into) shall not exceed greater of $50,000,000 and 1.25% of ACNTA (as
of the last day of the most recently ended Fiscal Quarter for which financial statements have been delivered or are required to have been delivered pursuant to Section 5.01 (or for the period of time prior to the first such
delivery after the Effective Date, the Borrower’s financial statements for the Fiscal Quarter ended September 30, 2021)) and (iii) for purposes of determining whether any Indebtedness incurred pursuant to this
Section 6.03(d) is permitted under the Senior Notes Indentures, neither the Borrower nor any Restricted Subsidiary shall be permitted to incur such Indebtedness in reliance on the Secured Debt Indenture Exceptions; 

(e) [Reserved]; 
 (f) other
Indebtedness of the Borrower and its Restricted Subsidiaries; provided that, at the time of incurrence thereof, the aggregate principal amount of Indebtedness then outstanding in reliance on this Section 6.03(f) shall not
exceed greater of $50,000,000 and 1.25% of ACNTA (as of the last day of the most recently ended Fiscal Quarter for which financial statements have been delivered or are required to have been delivered pursuant to
Section 5.01 (or for the period of time prior to the first such delivery after the Effective Date, the Borrower’s financial statements for the Fiscal Quarter ended September 30, 2021)); 

(g) Indebtedness incurred to finance insurance premiums in the ordinary course of business in an aggregate principal amount not to exceed the
amount of such insurance premiums; 
 (h) indemnification, adjustment of purchase price, earnout or similar obligations, in each case,
incurred or assumed in connection with any acquisition or Disposition otherwise permitted hereunder; 
 (i) to the extent constituting
Indebtedness, Indebtedness associated with worker’s compensation claims, performance, bid, surety or similar bonds or surety obligations required by Requirements of Law 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; 
 (j) Incremental Equivalent
Indebtedness and Permitted Refinancing Indebtedness in respect thereof; 
 (k) [Reserved]; 

(l) [Reserved]; 
 (m)
[Reserved]; 
 (n) Permitted Pari Term Loan Indebtedness and/or Permitted Junior Lien Term Loan Indebtedness and, in each case, Permitted
Refinancing Indebtedness in respect thereof; 
 (o) [Reserved]; 

  
 91 

 (p) [Reserved]; 

(q) other unsecured Indebtedness of the Borrower and its Restricted Subsidiaries if, after giving pro forma effect to the incurrence of such
Indebtedness and the use of proceeds thereof, (i) the Total Leverage Ratio will not be greater than 4.00 to 1.00 and (ii) no Default or Event of Default shall have occurred and be continuing; provided that, in the case of any such
Indebtedness with an initial aggregate principal amount in excess of $50,000,000, (A) such Indebtedness (1) has a stated maturity that is no earlier than 91 days after the Scheduled Maturity Date and (2) does not have any scheduled
prepayment, amortization, redemption, sinking fund or similar obligations prior to the date that is 91 days after the Scheduled Maturity Date (except for customary offers to purchase with proceeds of asset sales or upon the occurrence of a change of
control) and (B) such Indebtedness is on terms, taken as a whole, not materially less favorable to the Borrower and its Restricted Subsidiaries than market terms for issuers of similar size and credit quality given the then prevailing market
conditions, as reasonably determined by the Borrower; 
 (r) Indebtedness incurred under the RBL Credit Facility; provided that
(i) such Indebtedness shall be secured solely by Liens in compliance with Section 6.02(a)(ii) and guaranteed solely by the Loan Parties and (ii) Liens securing all such Indebtedness shall at all times be subject
to the Pari Passu Intercreditor Agreement; and 
 (s) to the extent constituting Indebtedness, all premiums (if any), interest (including
post-petition interest), fees, expenses, charges and additional or contingent interest on obligations described in clauses (a) through (r) above. 

For purposes of determining compliance with this Section 6.03, in the event that an item of Indebtedness (or any portion thereof) at
any time, whether at the time of incurrence or upon the application of all or a portion of the proceeds thereof or subsequently, meets the criteria of more than one of the categories of permitted Indebtedness described in Section 6.03(a)
through (r) above, the Borrower, in its sole discretion, may classify and may subsequently reclassify such item of Indebtedness (or any portion thereof) in any one or more of the types of Indebtedness described in Section 6.03(a) through
(r) and will only be required to include the amount and type of such Indebtedness in such of the above clauses as determined by the Borrower at such time. The Borrower will be entitled to divide and classify an item of Indebtedness in more than
one of the types of Indebtedness described in Section 6.03(a) through (r). By way of example, it is understood and agreed that if the Borrower or any or any Restricted Subsidiary issues unsecured Indebtedness in the form of unsecured senior or
senior subordinated notes, the Borrower may allocate certain portions of any single issuance of such notes to one or more different clauses of this Section 6.03 (provided that such portion meets the requirements of the
applicable clause). By way of example, a portion of the notes issued in such offering may constitute Permitted Unsecured Notes and a portion of the notes issued in such offering may constitute Permitted Refinancing Indebtedness in respect of
Existing Senior Notes. 
 Section 6.04 Minimum Collateral Coverage Ratio. The Borrower will not, as of the last day of any
Fiscal Quarter (commencing with the Fiscal Quarter ending March 31, 2022), permit the Collateral Coverage Ratio to be less than 2.00 to 1.00. 

Section 6.05 Investments. The Borrower will not, and will not permit any Restricted Subsidiary to, make any Investment in any
Person, except: 
 (a) (i) Investments in Subsidiaries in existence on the Effective Date and (ii) other Investments in existence
on the Effective Date and described on Schedule 6.05 and any renewal or extension of any such Investments that does not increase the amount of the Investment being renewed or extended (as determined as of such date of renewal or extension);

  
 92 

 (b) Investments by any Loan Party in or to any other Loan Party; 

(c) Investments by any Restricted Subsidiary that is not a Loan Party in or to any Loan Party or any other Restricted Subsidiary that is not a
Loan Party; 
 (d) to the extent constituting Investments, Investments in direct ownership interests in additional Oil and Gas Properties
and gas gathering systems related thereto or related to farm-out, farm-in, joint operating, joint venture or area of mutual interest agreements, gathering systems,
pipelines or other similar arrangements which are usual and customary in the oil and gas exploration and production business located within the geographic boundaries of the United States of America; 

(e) Permitted Acquisitions; 

(f) accounts receivable arising in the ordinary course of business, and Investments received in connection with the bankruptcy or
reorganization of suppliers and customers or in settlement of delinquent obligations of, and other disputes with, customers and suppliers to the extent reasonably necessary in order to prevent or limit loss; 

(g) Investments received in consideration for a Disposition permitted by Section 6.08; 

(h) Investments consisting of Swap Agreements permitted under Section 6.13; 

(i) cash equivalents; 
 (j)
Guarantees constituting Indebtedness permitted by Section 6.03; 
 (k) other Investments (including Investments in
Unrestricted Subsidiaries); provided that at the time any such Investment is made, the aggregate outstanding amount of all Investments made in reliance on this clause (k) shall not exceed the greater of $150,000,000 and 3.75% of ACNTA (as
of the last day of the most recently ended Fiscal Quarter for which financial statements have been delivered or are required to have been delivered pursuant to Section 5.01 (or for the period of time prior to the first such
delivery after the Effective Date, the Borrower’s financial statements for the Fiscal Quarter ended September 30, 2021)); 
 (l)
extensions of trade credit and purchases of Property and services in the ordinary course of business; 
 (m) Investments made with Equity
Interests of the Borrower; and 
 (n) other Investments (including Investments in Unrestricted Subsidiaries) so long as, after giving pro
forma effect to the making of any such Investment, the Payment Conditions are satisfied. 
 For purposes of determining the amount of any Investment
outstanding for purposes of this Section 6.05, such amount shall be deemed to be the amount of such Investment when made, purchased or acquired (without adjustment for subsequent increases or decreases in the value of such
Investment), less any amount realized in respect of such Investment upon the Disposition, collection or return of capital, including any dividend, distribution, interest payment, return of capital, repayment or other amount received in cash by the
Borrower or a Restricted Subsidiary in respect of such Investment (in the aggregate, not to exceed the original amount invested). 

  
 93 

 For purposes of determining compliance with this Section 6.05, in the event that an
Investment (or a portion thereof) meets the criteria of more than one of the categories of Investments described above, the Borrower may, in its sole discretion, classify or divide such Investment (or any portion thereof) (but may not later
reclassify and divide such Investment) and will only be required to include the amount and type of such Investment (or any portion thereof) in one or more of the above clauses. Any Investment in any Unrestricted Subsidiary that is permitted to be
made in such Unrestricted Subsidiary under this Section 6.03 may be structured as an indirect Investment through one or more Restricted Subsidiaries or Unrestricted Subsidiaries and all such Investments shall constitute a single Investment for
purposes of this Section 6.03. 
 Section 6.06 Restrictive Agreements. The Borrower will not, and will not permit any
Restricted Subsidiary to, directly or indirectly, enter into, create or permit to exist any Restrictive Agreement, except for: 
 (a)
limitations or restrictions contained in any Loan Document or any RBL Loan Document; 
 (b) limitations or restrictions existing under or by
reason of any Requirement of Law; 
 (c) customary restrictions with respect to any Restricted Subsidiary or any of its assets contained in
any agreement for the Disposition of all of the Equity Interests of, or any of the assets of, such Restricted Subsidiary pending such Disposition; provided that (i) such restrictions shall apply only to the Restricted Subsidiary that is,
or assets that are, the subject of such Disposition and (ii) such Disposition is permitted hereunder; 
 (d) limitations or
restrictions contained in contracts and agreements outstanding on the Effective Date and identified on Schedule 6.06 and renewals, extensions, refinancings or replacements thereof; provided that the foregoing restrictions set forth in
this Section 6.06 shall apply to any amendment or modification to, or any renewal, extension, refinancing or replacement of, any such contract or agreement that would have the effect of expanding the scope of any such
limitation or restriction; 
 (e) customary restrictions or limitations in leases or other contracts restricting the assignment thereof or
the assignment of the property that is the subject of such lease; 
 (f) restrictions or conditions of the type described in clause
(a) of the definition of Restrictive Agreements imposed by any agreement relating to secured Indebtedness permitted by this Agreement or Permitted Liens if such restrictions or conditions apply only to the Property securing such Indebtedness;

 (g) limitations or restrictions contained in joint venture agreements, partnership agreements and other similar agreements with respect
to a joint ownership arrangement restricting the disposition or distribution of assets or property of such joint venture, partnership or other joint ownership entity, so long as such encumbrances or restrictions are not applicable to the property or
assets of any other Person; 
 (h) limitations or restrictions contained in any agreement or instrument to which any Person is a party at
the time such Person is merged or consolidated with or into, or the Equity Interests of such Person are otherwise acquired by, the Borrower or any Restricted Subsidiary; provided that such restriction or limitation (i) is not applicable
to any Person, or the properties or assets of any Person, other than the Person, or the property or assets of such Person, so acquired and (ii) is not incurred in connection with, or in contemplation of, such merger, consolidation or
acquisition; and 
 (i) restrictions and conditions imposed by any agreement or document governing any Indebtedness permitted hereunder to
the extent, in the reasonable judgment of the Borrower, such restrictions and conditions are on customary market terms for Indebtedness of such type and would not reasonably be expected to impair in any material respect the ability of the Loan
Parties to meet their obligations under the Loan Documents. 

  
 94 

 Section 6.07 Restricted Payments. The Borrower will not, and will not permit any
Restricted Subsidiary to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, except: 
 (a) Restricted
Subsidiaries may declare and pay dividends and other distributions ratably with respect to their Equity Interests; 
 (b) the Borrower and
its Restricted Subsidiaries may make Restricted Payments in exchange for, or out of the proceeds received from, any substantially concurrent issuance (other than to a Subsidiary) of additional Equity Interests of the Borrower (other than
Disqualified Stock); 
 (c) 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 Stock); 
 (d) the Borrower and each Restricted Subsidiary may consummate
(i) repurchases, redemptions or other acquisitions or retirements for value of Equity Interests deemed to occur upon the exercise of stock options, warrants, rights to acquire Equity Interests or other convertible securities to the extent such
Equity Interests represents a portion of the exercise or exchange price thereof and (ii) any repurchases, redemptions or other acquisitions or retirements for value of Equity Interests made or deemed to be made in lieu of withholding Taxes in
connection with any exercise, vesting, settlement or exchange, as applicable, of stock options, warrants, restricted stock, restricted stock units or other similar rights; 

(e) the Borrower and each Restricted Subsidiary may make payments of cash in lieu of issuing fractional Equity Interests; 

(f) the Borrower and each Restricted Subsidiary may make payments or distributions to dissenting stockholders pursuant to applicable
Requirements of Law in connection with a merger, consolidation or transfer of assets that complies with the provisions of Section 6.01 or Section 6.08, as applicable; and 

(g) the Borrower and each Restricted Subsidiary may make other Restricted Payments so long as, after giving pro forma effect to the making of
such Restricted Payments, the Payment Conditions are satisfied. 
 Section 6.08 Asset Dispositions. The Borrower will not, and
will not permit any Restricted Subsidiary to, Dispose of any of its Property to any Person, except: 
 (a) Dispositions; provided
that: 
 (i) except with respect to Casualty Events, no Event of Default shall have occurred and be continuing at the time of
such Disposition, 
 (ii) with respect to any Asset Swap, the Borrower shall cause the Oil and Gas Properties acquired
pursuant thereto to become Mortgaged Properties to the extent necessary to satisfy the minimum mortgage requirement set forth in Section 5.10 upon consummation of such Asset Swap, 

  
 95 

 (iii) other than in the case of Asset Swaps and Casualty Events, at least
75% of the consideration received in respect of such Dispositions shall be cash or cash equivalents, 
 (iv) other than in
respect of Casualty Events, the consideration received in respect of any such Disposition for consideration in excess of $10,000,000 shall be equal to or greater than the fair market value of the Proved Reserves or Equity Interests subject to such
Disposition (as determined by the Borrower in good faith), 
 (v) if any such Disposition is of Equity Interests in a
Subsidiary owning Proved Reserves, such Disposition shall include all the Equity Interests of such Subsidiary (unless all the Proved Reserves owned by such Subsidiary are treated as having been Disposed of immediately after giving effect to such
Disposition of Equity Interests), 
 (vi) the Borrower shall make all mandatory prepayments required by, and within the time
periods set forth in, Section 2.08(b) in connection with such Disposition; and 
 (vii) after
giving effect to such Disposition, the Borrower will be in Pro Forma Collateral Coverage Ratio Compliance. 
 (b) Dispositions, including
Asset Swaps, of any Oil and Gas Properties which are not Proved Oil and Gas Properties; 
 (c) Dispositions of Property constituting
Investments permitted by Section 6.05; 
 (d) Dispositions of Properties from any Loan Party to the Borrower or
any other Loan Party; 
 (e) Dispositions in the ordinary course of business of equipment and related assets that are obsolete, worn out or
no longer necessary or useful for the business of the Borrower or any of its Restricted Subsidiaries or are replaced by equipment of at least comparable value and use; 

(f) Dispositions of Hydrocarbons and seismic data in the ordinary course of business; 

(g) any Disposition of assets (other than Oil and Gas Properties) resulting from a Casualty Event; 

(h) Dispositions of Hydrocarbon Interests to which no Proved Reserves are attributed and farmouts with respect to undeveloped acreage to which
no Proved Reserves are attributed and assignments in connection with such farmouts or the abandonment, farm-out, exchange, lease, sublease or other disposition in the ordinary course of business of Oil and Gas
Properties not constituting Proved Oil and Gas Properties; 
 (i) Dispositions of accounts receivable in connection with the collection or
compromise thereof (other than in connection with any financing transaction); and 
 (j) Dispositions of Properties, the fair market value
(as determined by the Borrower in good faith) of which (for all such Dispositions since the Effective Date) does not exceed (determined at the date of the consummation of the applicable Disposition) the greater of $50,000,000 and 1.25% of ACNTA (as
of the last day of the most recently ended Fiscal Quarter for which financial statements have been delivered or are required to have been delivered pursuant to Section 5.01 (or for the period of time prior to the first such
delivery after the Effective Date, the Borrower’s financial statements for the Fiscal Quarter ended September 30, 2021)); 

  
 96 

 provided, that in no event shall any Disposition of Material Intellectual Property be made by the
Borrower or any Restricted Subsidiary thereof to any Unrestricted Subsidiary. 
 Section 6.09 Use of Proceeds. 

(a) The Borrower will not, and will not permit any of its Subsidiaries to, use the proceeds of the Loans for any purpose other than
(i) to pay fees and expenses associated with the closing of the transactions contemplated by this Agreement and the other Loan Documents and the Transactions (including the funding of any OID), (ii) to finance the working capital needs,
and for general corporate purposes, of the Borrower and its Restricted Subsidiaries and (iii) to fund a portion of the consideration for the Mustang Merger (and pending consummation of the Mustang Merger to temporarily reduce Indebtedness of
the Borrower or any Restricted Subsidiary). 
 (b) The Borrower will not, and will not permit any of its Subsidiaries to, use the proceeds
of any Loan under this Agreement directly or indirectly for the purpose of buying or carrying any Margin Stock or for the purpose of reducing or retiring any indebtedness which was originally incurred to buy or carry a Margin Stock or for any other
purpose which would constitute this transaction a “purpose” credit within the meaning of Regulation U, in each case in violation of Regulation T, U or X. The Borrower will not, nor will it permit any of its Subsidiaries to, take any action
which would cause this Agreement or any other Loan Document to violate Regulation T, U or X. 
 (c) The Borrower will not request any
Borrowing, and the Borrower will not use or otherwise make available, and will ensure that its Subsidiaries and its or their respective directors, officers, employees and agents will not use or otherwise make available, the proceeds of any Borrowing
(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, or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto. 

Section 6.10 Limitations on Redemptions of Indebtedness. The Borrower will not, and will not permit any of its Restricted
Subsidiaries to, voluntarily Redeem any Subordinated Indebtedness prior to its stated maturity, except: 
 (a) the Borrower and its
Restricted Subsidiaries may Redeem any Subordinated Indebtedness with other Subordinated Indebtedness in exchange therefor or with payments (which payments may include cash consideration to effect an exchange of any of the Subordinated Indebtedness
as part of a permitted refinancing) made with the proceeds of Permitted Refinancing Indebtedness; 
 (b) [Reserved]; 

(c) the Borrower and its Restricted Subsidiaries may Redeem any Subordinated Indebtedness so long as, after giving pro forma effect to any
such Redemption, the Payment Conditions are satisfied; 
 (d) [Reserved]; 

(e) the Borrower or any Restricted Subsidiary may Redeem any Subordinated Indebtedness with the net cash proceeds from any equity securities
(other than Disqualified Stock) (it being understood that the Borrower may use of all or a portion of the net cash proceeds of any such equity issuance to temporarily reduce Borrowings under the RBL Credit Facility pending such Redemption and may
reborrow under the RBL Credit Facility in an amount not to exceed the amount of prepayments previously made with the proceeds of such equity issuance in order to effect such Redemption pursuant to this clause (e)); and 

  
 97 

 (f) the Borrower and its Restricted Subsidiaries may Redeem any Subordinated Indebtedness
issued by the Borrower in anticipation of a Permitted Acquisition permitted hereunder if (i) the Borrower is irrevocably obligated to Redeem such Subordinated Indebtedness if such Permitted Acquisition is not consummated prior to the date on
which either party has the right to terminate the related acquisition agreement (or such later date agreed to by the lenders or other investors providing such Designated Indebtedness) if such Permitted Acquisition has not been consummated by such
date (such date, the “Permitted Acquisition Outside Date”), (ii) the Borrower or any Restricted Subsidiary becomes obligated to effect the Redemption of such Subordinated Indebtedness as a result of such Permitted Acquisition not
being consummated prior to the Permitted Acquisition Outside Date, and (iii) at the time of and immediately after giving pro forma effect to such Redemption, no Default or Event of Default shall have occurred and be continuing. 

Section 6.11 Limitation on Transactions with Affiliates. The Borrower will not, and will not permit any Restricted Subsidiary to,
directly or indirectly, Dispose of any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates, except in the ordinary course of business
on terms substantially as favorable to the Borrower or such Restricted Subsidiary as could be obtained on an arm’s-length basis from unrelated third parties. Notwithstanding the foregoing, the
restrictions set forth in this covenant shall not apply to (a) transactions between or among the Borrower and its Restricted Subsidiaries not involving any other Affiliate, (b) any Restricted Payment permitted by
Section 6.07, (c) Investments of the type described in clauses (a) or (d) of the definition thereof, in each case, to the extent permitted by Section 6.05, (d) the payment of
reasonable and customary regular fees to directors of the Borrower or a Restricted Subsidiary who are not employees of such Person, (e) any other transaction with any employee, officer or director of the Borrower or any of its Restricted
Subsidiaries pursuant to employee benefit, compensation or indemnification arrangements entered into in the ordinary course of business and approved by the Board of Directors of such Person and (f) licenses of patents, copyrights, trademarks,
trade secrets and other intellectual property. 
 Section 6.12 Material Change in Business. The Borrower and its Restricted
Subsidiaries (taken as a whole) will not engage in any business substantially different from those businesses of the Borrower and its Subsidiaries described in the Form 10-K of the Borrower for the Fiscal
Year ended December 31, 2020, as filed with the SEC, and any businesses reasonably related, synergistic, ancillary or complementary thereto. 

Section 6.13 Swap Agreements. The Borrower will not, and will not permit any Restricted Subsidiary to, enter into any Swap
Agreements for speculative purposes. 
 Section 6.14 Amendments to Organizational Documents and RBL Loan Documents. 

(a) The Borrower shall not, and shall not permit any of the Loan Parties to, amend, supplement or otherwise modify (or permit to be
amended, supplemented or modified) its Organizational Documents in any manner that would reasonably be expected to be materially adverse to the rights or interests of the Administrative Agent or the Lenders. 

(b) The Borrower will not, and will not permit any of its Restricted Subsidiaries to, amend, waive, modify or supplement or consent to any
amendment, waiver, modification or supplement to any of the RBL Loan Documents in any manner that would reasonably be expected to be materially adverse to the rights or interests of the Administrative Agent or the Lenders. 

  
 98 

 ARTICLE VII 

Events of Default 

Section 7.01 Events of Default. The occurrence of any of the following events shall constitute an “Event of
Default” under this Agreement and each of the other Loan Documents: 
 (a) Representations and Warranties. Any representation
or warranty made or deemed made by or on behalf of the Borrower or any other Loan Party in this Agreement or any other Loan Document or in any certificate, instrument or other document delivered in connection with this Agreement or any other Loan
Document shall prove to have been incorrect in any material respect as of the date such representation or warranty was made or deemed made; 

(b) Payment Default. The Borrower shall fail to pay (i) any principal of any Loan when due or (ii) any interest, fee or other
amount (other than any amount referred to in clause (i) of this paragraph) payable under this Agreement or any other Loan Document within five Business Days after the same becomes due; 

(c) Breach of Certain Covenants. The Borrower shall fail to perform or observe any covenant, condition or agreement contained in
Sections 5.01(g), 5.03(a) (solely with respect to the existence of the Borrower), 5.12 or Article VI; 
 (d)
Other Breaches of the Loan Documents. The breach by the Borrower or any other Loan Party (other than a breach which constitutes an Event of Default under clauses (a), (b) or (c) of this Article VII) of any
term or provision of this Agreement or any other Loan Document which is not remedied within 30 days after receipt by the Borrower of written notice of such breach from the Administrative Agent; 

(e) ERISA. An event or condition specified in Section 5.01(f) shall occur or exist with respect to any Plan
or any Multiemployer Plan and, as a result of such event or condition, together with all other such events or conditions then outstanding, the Borrower, any of its Restricted Subsidiaries or any member of the Controlled Group shall incur, or shall
be reasonably expected to incur, a liability that (individually or in the aggregate) would have a Material Adverse Effect; 
 (f)
Cross-Default. (i) Failure of the Borrower or any Restricted Subsidiary to pay any Material Indebtedness when due (after giving effect to any period of grace set forth in any agreement under which such Indebtedness was created or is
governed), (ii) the default by the Borrower or any Restricted Subsidiary in the performance of any other term, provision or condition contained in any agreement under which any Material Indebtedness was created or is governed, the effect of which is
to cause, or to permit the holder or holders of such Material Indebtedness to cause, such Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its stated maturity, or (iii) any
Material Indebtedness shall become due and payable or be required to be prepaid, repurchased, redeemed or defeased (other than by a regularly scheduled payment) prior to the stated maturity thereof; provided that clause (iii) above shall
not apply to (A) any secured Indebtedness becoming due as a result of the voluntary sale or transfer of the assets securing such Indebtedness, (B) any Indebtedness becoming due as a result of a voluntary refinancing thereof permitted under
Section 6.03 or (C) any Indebtedness becoming due or required to be prepaid, repurchased, redeemed or defeased as a result of a voluntary or mandatory prepayment, repurchase, redemption or defeasance thereof not
prohibited hereunder; provided, further that, notwithstanding anything to the contrary herein, a breach of any financial maintenance covenant under the RBL Credit Facility will not result in a Default or Event of Default under this clause
(f) unless the loans under the RBL Credit Facility are accelerated and/or the commitments under the RBL Credit Facility are terminated as a result of such breach; 

  
 99 

 (g) Voluntary Bankruptcy, etc. The Borrower or any other Loan Party shall
(i) not pay, or admit in writing its inability to pay, its debts generally as they become due, (ii) make an assignment for the benefit of creditors, (iii) apply for, seek, consent to, or acquiesce in, the appointment of a receiver,
custodian, trustee, examiner, liquidator or similar official for the Borrower or such other Loan Party, (iv) institute any proceeding seeking an order for relief under the Federal bankruptcy laws as now or hereafter in effect or seeking to
adjudicate it a bankrupt or insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors
or (v) take any action to authorize or effect any of the foregoing actions set forth in this clause (g); 
 (h) Involuntary
Bankruptcy, etc. Without the application, approval or consent of the Borrower or the applicable other Loan Party, a receiver, trustee, examiner, liquidator or similar official shall be appointed for the Borrower or any other Loan Party, or a
proceeding described in clause (g)(iv) of this Section 7.01 shall be instituted against the Borrower or any other Loan Party, and such appointment continues undischarged or such proceeding continues undismissed or
unstayed for a period of 60 consecutive days; 
 (i) Judgments. The Borrower or any Restricted Subsidiary shall fail within 30 days
to pay, bond or otherwise discharge any final judgment or order for the payment of money in excess of $100,000,000 (to the extent not paid or covered by independent third-party insurance as to which the applicable insurer has been notified of such
judgment and does not dispute coverage and is not subject to any insolvency proceeding) which is not stayed on appeal; 
 (j)
Unenforceability of Certain Loan Documents. This Agreement, any Note, any Subsidiary Guaranty or any Collateral Document shall fail to remain in full force or effect or any Loan Party that is a party to any such Loan Document shall deny that
it has any further liability thereunder or shall give notice to such effect, in each case other than as expressly permitted hereunder or thereunder or upon Payment in Full; 

(k) Collateral Documents. Any Collateral Document after delivery thereof shall for any reason (other than pursuant to the terms
thereof) cease to create a valid and perfected first priority Lien (except in the case of Permitted Liens, to the extent any such Permitted Liens would have priority over the Liens in favor of the Collateral Agent pursuant to any applicable
Requirement of Law) on a material portion of the Collateral; or 
 (l) Change of Control. A Change of Control shall occur; or 

(m) Pari Passu Intercreditor Agreement. The Borrower or any other Loan Party shall contest, or support another Person in any action
that seeks to contest, the validity or effectiveness of the Pari Passu Intercreditor Agreement (other than pursuant to the terms hereof or thereof). 

Section 7.02 Remedies upon Event of Default. If any Event of Default occurs and is continuing, the Administrative Agent shall, at
the request of, or may, with the consent of, the Required Lenders, take any or all of the following actions, at the same or different times: (i) terminate the Aggregate Commitments (if not already terminated), and thereupon the Aggregate
Commitments shall terminate immediately and (ii) declare 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 Secured Obligations of the Borrower accrued hereunder and under the other Loan Documents, shall become due and
payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower; and in case of any event described 

  
 100 

 
in Section 7.01(g) or Section 7.01(h), the Aggregate Commitments shall automatically terminate (if not already terminated) and the principal of
the Loans then outstanding, together with accrued interest thereon and all fees and other Secured Obligations accrued hereunder and under the other Loan Documents, shall automatically become due and payable, without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by the Borrower. Upon the occurrence and during the continuance of an Event of Default, the Administrative Agent and the Collateral Agent may, and at the request of the Required Lenders shall,
exercise any rights and remedies provided to the Administrative Agent or the Collateral Agent, as applicable, under the Loan Documents or at law or equity, including all remedies provided under the UCC. 

Section 7.03 Right to Cure Collateral Coverage Ratio. 

(a) In the event that the Borrower fails to comply with the requirement of Section 6.04 as of the last day of any
Fiscal Quarter (such Fiscal Quarter, a “Cure Quarter”), the Borrower may, within 45 days after the end of such Fiscal Quarter (such period, the “Cure Period”), cure such failure by (i) prepaying the Loans
(notwithstanding anything to the contrary, without any fee required pursuant to Section 2.08(e)), (ii) prepaying the loans under the RBL Credit Facility (with an accompanying, dollar-for-dollar permanent reduction in commitments thereunder), (iii) prepaying any other secured Indebtedness that is secured by a Lien on all or any portion of the Collateral or (iv) undertake a
combination of clauses (i), (ii) and (iii) (the Borrower’s rights under this Section 7.03(a) are referred to herein as the “Cure Right”). If, after giving effect to the transactions contemplated by the preceding sentence
and a recalculation of the Collateral Coverage Ratio after giving effect to such transactions, the Borrower shall then be in compliance with the requirements of Section 6.04 (the “Collateral Coverage Ratio
Covenant”), then the Borrower shall be deemed to have satisfied the requirements of Section 6.04 as of the last day of the applicable Cure Quarter with the same effect as though there had been no failure to comply
with the Collateral Coverage Ratio Covenant on such date. Notwithstanding anything to the contrary, until the expiration of the Cure Period, no Default or Event of Default shall have occurred or be deemed to have occurred solely as a result of any
failure to comply with Section 6.04 on the last day of any Fiscal Quarter (except to the extent that the Borrower has confirmed in writing during such Cure Period that it does not intend exercise the Cure Right). 

(b) None of the Administrative Agent, the Collateral Agent nor any Lender shall exercise the right to accelerate the Loans or terminate the
Commitments and none of Administrative Agent, the Collateral Agent, any Lender or any other Secured Party shall exercise any right to foreclose on or take possession of the Collateral or exercise any other remedy pursuant to
Section 7.02, the other Loan Documents or applicable law prior to the end of Cure Period solely on the basis of an Event of Default having occurred and continuing under Section 6.04 (except to the
extent that the Borrower has confirmed in writing that it does not intend exercise the Cure Right); provided, however, that the Cure Right shall not affect in any way the rights and remedies of the Lenders, the Administrative Agent, the Collateral
Agent or the other Secured Parties with respect to any other Default or Event of Default. 
 ARTICLE VIII 

The Agents 

Section 8.01 Authorization and Action. 

(a) Each Lender hereby irrevocably appoints the entity named as Administrative Agent in the heading of this Agreement and its successors and
assigns to serve as the administrative agent under the Loan Documents and each Lender authorizes the Administrative Agent to take such actions as agent on its behalf and to exercise such powers under this Agreement and the other Loan Documents as
are delegated to the Administrative Agent under such agreements and to exercise such powers as are reasonably incidental 

  
 101 

 
thereto. Without limiting the foregoing, each Lender hereby authorizes the Administrative Agent to execute and deliver, and to perform its obligations under, each of the Loan Documents to which
the Administrative Agent is a party, to exercise all rights, powers and remedies that the Administrative Agent may have under such Loan Documents. Each Lender hereby irrevocably appoints the entity named as Collateral Agent in the heading of this
Agreement and its successors and assigns to serve as the collateral agent under the Loan Documents and each Lender authorizes the Collateral Agent to take such actions as agent on its behalf and to exercise such powers under this Agreement and the
other Loan Documents as are delegated to the Collateral Agent under such agreements and to exercise such powers as are reasonably incidental thereto. Without limiting the foregoing, each Lender hereby authorizes the Collateral Agent to execute and
deliver, and to perform its obligations under, each of the Loan Documents to which the Collateral Agent is a party, to exercise all rights, powers and remedies that the Collateral Agent may have under such Loan Documents. 

(b) As to any matters not expressly provided for herein and in the other Loan Documents (including enforcement or collection), no Agent shall
be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the written instructions of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary, pursuant to the terms in the Loan Documents), and, unless and until revoked in writing, such instructions shall be binding upon each Lender; provided, however, that no Agent
shall be required to take any action that (i) such Agent in good faith believes exposes it to liability unless such Agent receives an indemnification satisfactory to it from the Lenders with respect to such action or (ii) is contrary to
this Agreement or any other Loan Document or applicable Requirements of Law, including any action that may be in violation of the automatic stay under any requirement of law relating to bankruptcy, insolvency or reorganization or relief of debtors
or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any requirement of law relating to bankruptcy, insolvency or reorganization or relief of debtors; provided, further, that
such Agent may seek clarification or direction from the Required Lenders prior to the exercise of any such instructed action and may refrain from acting until such clarification or direction has been provided. Except as expressly set forth in the
Loan Documents, no Agent shall have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower, any Subsidiary or any Affiliate of any of the foregoing that is communicated to or obtained by
the Person serving as Administrative Agent and/or Collateral Agent or any of its Affiliates in any capacity. Nothing in this Agreement shall require any Agent to expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder or in the exercise of any of its rights or powers if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it. 
 (c) In performing its functions and duties hereunder and under the other Loan Documents, each Agent is acting solely on
behalf of the Lenders (except in limited circumstances expressly provided for herein relating to the maintenance of the Register), and its duties are entirely mechanical and administrative in nature. Without limiting the generality of the foregoing:

 (i) no Agent assumes and no Agent shall be deemed to have assumed any obligation or duty or any other relationship as the
agent, fiduciary or trustee of or for any Lender or holder of any other obligation other than as expressly set forth herein and in the other Loan Documents, regardless of whether a Default or an Event of Default has occurred and is continuing (and
it is understood and agreed that the use of the term “agent” (or any similar term) herein or in any other Loan Document with reference to the Administrative Agent and/or Collateral Agent is not intended to connote any fiduciary duty or
other implied (or express) obligations arising under agency doctrine of any applicable Requirements of Law, and that such term is used as a matter of market custom and is intended to create or reflect only an administrative relationship between
contracting parties); additionally, each Lender agrees that it will not assert any claim against any Agent based on an alleged breach of fiduciary duty by such Agent in connection with this Agreement and the transactions contemplated hereby; 

  
 102 

 (ii) where the Collateral Agent is required or deemed to act as a trustee in
respect of any Collateral over which a security interest has been created pursuant to a Loan Document the obligations and liabilities of the Collateral Agent to the Secured Parties in its capacity as trustee shall be excluded to the fullest extent
permitted by applicable Requirements of Law; and 
 (iii) nothing in this Agreement or any Loan Document shall require any
Agent to account to any Lender for any sum or the profit element of any sum received by such Agent for its own account; 
 (d) Each Agent
may perform any of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by such Agent. Each Agent and any such sub-agent may perform any of their respective duties and exercise their respective rights and powers through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of each Agent and any such sub-agent, and shall apply to their respective activities pursuant to this Agreement. No Agent shall be
responsible for the negligence or misconduct of any sub-agent except to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Administrative Agent acted
with gross negligence or willful misconduct in the selection of such sub-agent. 
 (e) No Joint Lead
Arranger shall have obligations or duties whatsoever in such capacity under this Agreement or any other Loan Document or incur any liability hereunder or thereunder in such capacity, but each Joint Lead Arranger shall have the benefit of the
indemnities provided for hereunder. 
 (f) In case of the pendency of any proceeding with respect to any Loan Party under any Federal, state
or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, each Agent (irrespective of whether the principal of any Loan or any Secured Obligation shall then be due and payable as herein expressed or by declaration or
otherwise and irrespective of whether any Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise: 

(i) 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 Secured 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 Agents (including any claim under Sections 2.09, 2.10,
2.12, 2.14 and 9.03) allowed in such judicial proceeding; and 
 (ii) 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 proceeding is hereby authorized by each Lender and each other Secured Party to make such payments to each Agent and, in the event that any Agent shall consent to the making of such payments directly
to the Lenders or the other Secured Parties, to pay to each Agent any amount due to it, in its capacity as the Administrative Agent or the Collateral Agent, as applicable, under the Loan Documents (including under
Section 9.03). Nothing contained herein shall be deemed to authorize any 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 Secured Obligations or the rights of any Lender or to authorize any Agent to vote in respect of the claim of any Lender in any such proceeding. 

  
 103 

 (g) The provisions of this Article are solely for the benefit of each Agent and the Lenders,
and, except solely to the extent of the Borrower’s rights to consent pursuant to and subject to the conditions set forth in this Article, none of the Borrower or any Subsidiary, or any of their respective Affiliates, shall have any rights as a
third party beneficiary under any such provisions. Each Secured Party, whether or not a party hereto, will be deemed, by its acceptance of the benefits of the Collateral and of the guarantees of the Secured Obligations provided under the Loan
Documents, to have agreed to the provisions of this Article. 
 Section 8.02 Agent’s
Reliance, Indemnification, Etc.  
 (a) Neither any Agent nor any of its Related Parties shall
be (i) liable for any action taken or omitted to be taken by it under or in connection with this Agreement or the other Loan Documents (x) with the consent of or at the request of the Required Lenders (or such other number or percentage of
the Lenders as shall be necessary, or as such Agent shall believe in good faith to be necessary, under the circumstances as provided in the Loan Documents) or (y) in the absence of its own gross negligence or willful misconduct (such absence to
be presumed unless otherwise determined by a court of competent jurisdiction by a final and nonappealable judgment) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any
Loan Party or any officer thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by such Agent under or in connection with, this Agreement
or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of any Loan Party to perform its obligations hereunder or thereunder.

 (b) No Agent shall be deemed to have knowledge of any Default unless and until written notice thereof (stating that it is a “notice
of default”) is given to such Agent by the Borrower or a Lender, and no Agent shall be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan
Document, (ii) the contents of any certificate, report or other document delivered thereunder or in connection therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any
Loan Document or the occurrence of any Default, (iv) the sufficiency, validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, (v) the satisfaction of any condition set
forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be delivered to such Agent or satisfaction of any condition that expressly refers to the matters described therein being acceptable
or satisfactory to such Agent, or (vi) the creation, perfection or priority of Liens on the Collateral. 
 (c) Without limiting the
foregoing, each Agent (i) may treat the payee of any promissory note as its holder until such promissory note has been assigned in accordance with Section 9.04, (ii) may rely on the Register to the extent set forth in
Section 9.04(b), (iii) may consult with legal counsel (including counsel to the Borrower), independent public accountants and other experts selected by it, and shall not be liable for any action taken or omitted to be taken
in good faith by it in accordance with the advice of such counsel, accountants or experts, (iv) makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations made
by or on behalf of any Loan Party in connection with this Agreement or any other Loan Document, (v) in determining compliance with any condition hereunder to the making of a Loan, that by its terms must be fulfilled to the satisfaction of a
Lender, may presume that such condition is satisfactory to such Lender unless such Agent shall have received notice to the contrary from such Lender sufficiently in advance of the making of such Loan and (vi) shall be entitled to rely on, and
shall incur no liability under or in respect of this Agreement or any 

  
 104 

 
other Loan Document by acting upon, any notice, consent, certificate or other instrument or writing (which writing may be a fax, any electronic message, Internet or intranet website posting or
other distribution) or any statement made to it orally or by telephone and believed by it to be genuine and signed or sent or otherwise authenticated by the proper party or parties (whether or not such Person in fact meets the requirements set forth
in the Loan Documents for being the maker thereof). 
 Section 8.03 Posting of Communications. 

(a) The Borrower agrees that each Agent may, but shall not be obligated to, make any Communications available to the Lenders by posting the
Communications on IntraLinksTM, DebtDomain, SyndTrak, ClearPar or any other electronic platform chosen by such Agent to be its electronic transmission system (the “Approved Electronic
Platform”). 
 (b) Although the Approved Electronic Platform and its primary web portal are secured with generally-applicable
security procedures and policies implemented or modified by the applicable Agent from time to time (including, as of the Effective Date, a user ID/password authorization system) and the Approved Electronic Platform is secured through a per-deal authorization method whereby each user may access the Approved Electronic Platform only on a deal-by-deal basis, each of the
Lenders and the Borrower acknowledges and agrees that the distribution of material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution. Each of the Lenders and
the Borrower hereby approves distribution of the Communications through the Approved Electronic Platform and understands and assumes the risks of such distribution. 

(c) THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS ARE PROVIDED “AS IS” AND “AS AVAILABLE”. THE APPLICABLE
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE APPROVED ELECTRONIC PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE APPROVED ELECTRONIC PLATFORM AND THE
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 APPLICABLE PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE APPROVED ELECTRONIC PLATFORM. IN NO EVENT SHALL ANY AGENT, ANY JOINT LEAD ARRANGER OR ANY OF THEIR RESPECTIVE RELATED PARTIES
(COLLECTIVELY, “APPLICABLE PARTIES”) HAVE ANY LIABILITY TO ANY LOAN PARTY, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR
EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY LOAN PARTY’S OR ANY AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET OR THE APPROVED ELECTRONIC PLATFORM IN THE ABSENCE OF ITS OWN GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT (SUCH ABSENCE TO BE PRESUMED UNLESS OTHERWISE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY A FINAL AND NONAPPEALABLE JUDGMENT). 

(d) Each Lender agrees that notice to it (as provided in the next sentence) specifying that Communications have been posted to the Approved
Electronic Platform shall constitute effective delivery of the Communications to such Lender for purposes of the Loan Documents. Each Lender agrees (i) to notify the Administrative Agent in writing (which could be in the form of electronic
communication) from time to time of such Lender’s (as applicable) email address to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such email address. 

  
 105 

 (e) Each of the Lenders and the Borrower agrees that each Agent may, but (except as may be
required by applicable Requirements of Law) shall not be obligated to, store the Communications on the Approved Electronic Platform in accordance with such Agent’s generally applicable document retention procedures and policies. 

(f) Nothing herein shall prejudice the right of any Agent or any Lender to give any notice or other communication pursuant to any Loan
Document in any other manner specified in such Loan Document. 
 Section 8.04 The Agents Individually. With respect to its
Commitment and Loans, the Person serving as the Administrative Agent and/or the Collateral Agent shall have and may exercise the same rights and powers hereunder and is subject to the same obligations and liabilities as and to the extent set forth
herein for any other Lender. The terms “Lenders”, “Required Lenders” and any similar terms shall, unless the context clearly otherwise indicates, include the Administrative Agent and the Collateral Agent, in each case in its
individual capacity as a Lender or as one of the Required Lenders. The Person serving as the Administrative Agent and/or Collateral Agent and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or
in any other advisory capacity for and generally engage in any kind of banking, trust or other business with, the Borrower, any Subsidiary or any Affiliate of any of the foregoing as if such Person was not acting as the Administrative Agent and/or
Collateral Agent and without any duty to account therefor to the Lenders. 
 Section 8.05 Successor Agent. 

(a) The Administrative Agent may resign at any time by giving 30 days’ prior written notice thereof to the Lenders, the Collateral Agent
and the Borrower, whether or not a successor Administrative Agent has been appointed. Upon any such resignation, the Required Lenders shall have the right (with, so long as no Specified Default exists, the consent of the Borrower, which shall not be
unreasonably withheld or delayed) to appoint a successor Administrative Agent. If no successor Administrative Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the retiring
Administrative Agent’s giving of notice of resignation, then the retiring Administrative Agent may, on behalf of the Lenders, 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. In either case, such appointment shall be subject to the prior written approval of the Borrower (which approval may not be unreasonably withheld and shall not be required while a Specified Default has occurred and is continuing).
Upon the acceptance of any appointment as Administrative Agent by a successor Administrative Agent, such successor Administrative Agent shall succeed to, and become vested with, all the rights, powers, privileges and duties of the retiring
Administrative Agent. Upon the acceptance of appointment as Administrative Agent by a successor Administrative Agent, the retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement and the other Loan
Documents. Prior to any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the retiring Administrative Agent shall take such action as may be reasonably necessary to assign to the successor Administrative Agent its
rights as Administrative Agent under the Loan Documents. 
 (b) Notwithstanding paragraph (a) of this Section, in the event no
successor Administrative Agent shall have been so appointed and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its intent to resign, the retiring Administrative Agent may give notice of
the effectiveness of its resignation to the Lenders and the Borrower, whereupon, on the date of effectiveness of such resignation stated in such notice, (i) the retiring Administrative Agent shall be discharged from its duties and obligations
hereunder and under the other Loan Documents; provided that (A) all payments required to be made hereunder or under any other Loan Document to the Administrative Agent for the account of any Person other than the Administrative Agent
shall be made directly to such 

  
 106 

 
Person and (B) all notices and other communications required or contemplated to be given or made to the Administrative Agent shall directly be given or made to each Lender. Following the
effectiveness of the Administrative Agent’s resignation from its capacity as such, the provisions of this Article and Section 9.03, as well as any exculpatory, reimbursement and indemnification provisions set forth in
any other Loan Document, 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 the retiring Administrative Agent was acting as Administrative Agent and in respect of the matters referred to in the proviso under clause (i) above. 

(c) The Collateral Agent may resign at any time by giving 30 days’ prior written notice thereof to the Lenders, the Administrative Agent
and the Borrower, whether or not a successor Collateral Agent has been appointed. Upon any such resignation, the Required Lenders shall have the right (with, so long as no Specified Default exists, the consent of the Borrower, which shall not be
unreasonably withheld or delayed) to appoint a successor Collateral Agent. If no successor Collateral Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the retiring Collateral
Agent’s giving of notice of resignation, then the retiring Collateral Agent may, on behalf of the Lenders, appoint a successor Collateral Agent, which shall be a bank with an office in New York, New York or an Affiliate of any such bank. In
either case, such appointment shall be subject to the prior written approval of the Borrower (which approval may not be unreasonably withheld and shall not be required while a Specified Default has occurred and is continuing). Upon the acceptance of
any appointment as Collateral Agent by a successor Collateral Agent, such successor Collateral Agent shall succeed to, and become vested with, all the rights, powers, privileges and duties of the retiring Collateral Agent. Upon the acceptance of
appointment as Collateral Agent by a successor Collateral Agent, the retiring Collateral Agent shall be discharged from its duties and obligations under this Agreement and the other Loan Documents. Prior to any retiring Collateral Agent’s
resignation hereunder as Collateral Agent, the retiring Collateral Agent shall take such action as may be reasonably necessary to assign to the successor Collateral Agent its rights as Collateral Agent under the Loan Documents. 

(d) Notwithstanding paragraph (c) of this Section, in the event no successor Collateral Agent shall have been so appointed and shall have
accepted such appointment within 30 days after the retiring Collateral Agent gives notice of its intent to resign, the retiring Collateral Agent may give notice of the effectiveness of its resignation to the Lenders and the Borrower, whereupon, on
the date of effectiveness of such resignation stated in such notice, (i) the retiring Collateral Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents; provided that, solely for purposes
of maintaining any security interest granted to the Collateral Agent under any Collateral Document for the benefit of the Secured Parties, the retiring Collateral Agent shall continue to be vested with such security interest as Collateral Agent for
the benefit of the Secured Parties, and continue to be entitled to the rights set forth in such Collateral Document and the other Loan Documents, and, in the case of any Collateral in the possession of the Collateral Agent, shall continue to hold
such Collateral, in each case until such time as a successor Collateral Agent is appointed and accepts such appointment in accordance with this Section (it being understood and agreed that the retiring Collateral Agent shall have no duty or
obligation to take any further action under any Collateral Document, including any action required to maintain the perfection of any such security interest), and (ii) the Required Lenders shall succeed to and become vested with all the rights,
powers, privileges and duties of the retiring Collateral Agent; provided that all notices and other communications required or contemplated to be given or made to the Collateral Agent shall directly be given or made to each Lender. Following
the effectiveness of the Collateral Agent’s resignation from its capacity as such, the provisions of this Article and Section 9.03, as well as any exculpatory, reimbursement and indemnification provisions set forth in
any other Loan Document, shall continue in effect for the benefit of such retiring Collateral 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 the retiring Collateral Agent was acting as Collateral Agent and in respect of the matters referred to in the proviso under clause (i) above. 

  
 107 

 Section 8.06 Acknowledgments of Lenders. 

(a) Each Lender represents that it is engaged in making, acquiring or holding commercial loans in the ordinary course of its business and that
it has, independently and without reliance upon the Administrative Agent, the Collateral Agent, any Joint Lead Arranger or any other Lender, or any of the Related Parties of any of the foregoing, and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement as a Lender, and to make, acquire or hold Loans hereunder. Each Lender also acknowledges that it will, independently and without reliance upon the
Administrative Agent, the Collateral Agent, any Joint Lead Arranger or any other Lender, or any of the Related Parties of any of the foregoing, and based on such documents and information (which may contain material,
non-public information within the meaning of the United States securities laws concerning the Borrower and its Affiliates) as it shall from time to time deem appropriate, continue to make its own 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. 

(b) Each Lender, by delivering its signature page to this Agreement on the Effective Date, or delivering its signature page to an Assignment
and Assumption or any other Loan Document pursuant to which it shall become a Lender hereunder, shall be deemed to have acknowledged receipt of, and consented to and approved, each Loan Document and each other document required to be delivered to,
or be approved by or satisfactory to, the Administrative Agent or the Lenders on the Effective Date. 
 (c) (i) Each Lender hereby agrees
that (x) if the Administrative Agent notifies such Lender that the Administrative Agent has determined in its sole discretion that any funds received by such Lender from the Administrative 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 Lender (whether or not known to such Person), and demands the return of
such Payment (or a portion thereof), such Lender shall promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in
same day funds, together with interest thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such Lender to the date such amount is repaid to the Administrative Agent at the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect, and (y) to the extent permitted by applicable law, such Lender shall
not assert, and hereby waives, as to the Administrative Agent, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative 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 the Administrative Agent to any Lender under this
Section 8.06(c) shall be conclusive, absent manifest error. 
 (ii) Each Lender hereby further agrees that if
it receives a Payment 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 sent by the Administrative Agent (or any of its
Affiliates) with respect to such Payment (a “Payment Notice”) or (y) 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.
Each Lender agrees that, in each such case, or if it otherwise becomes aware a Payment (or portion thereof) may have been sent in error, such Lender shall promptly notify the Administrative Agent of such occurrence and, upon demand from the
Administrative Agent, it shall promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, together
with interest thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such Lender to the date such amount is repaid to the Administrative Agent at the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. 

  
 108 

 (iii) The Borrower and each other Loan Party hereby agrees that (x) in the event an
erroneous Payment (or portion thereof) are not recovered from any Lender that has received such Payment (or portion thereof) for any reason, the Administrative Agent shall be subrogated to all the rights of such Lender with respect to such amount
and (y) an erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Secured Obligations owed by the Borrower or any other Loan 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 Loan Party for the purpose of satisfying such Secured Obligations. 

(iv) Each party’s obligations under this Section 8.06(c) shall survive the resignation or replacement of the
Administrative Agent or any transfer of rights or obligations by, or the replacement of, a Lender, the termination of the Commitments or the repayment, satisfaction or discharge of all Secured Obligations under any Loan Document. 

Section 8.07 Collateral Matters. 

(a) Except with respect to the exercise of setoff rights in accordance with Section 9.08 or with respect to a
Secured Party’s right to file a proof of claim in an insolvency proceeding, no Secured Party shall have any right individually to realize upon any of the Collateral or to enforce any guarantee of the Secured Obligations, it being understood and
agreed that all powers, rights and remedies under the Loan Documents may be exercised solely by the Collateral Agent on behalf of the Secured Parties in accordance with the terms thereof. 

(b) [Reserved]. 
 (c) The
Secured Parties irrevocably authorize the Collateral Agent, at its option and in its discretion, to subordinate any Lien on any property granted to or held by the Collateral Agent under any Loan Document to the holder of any Lien on such property
that is permitted by Section 6.02(b), (c), (d), (e), (f), (h), (i) or (k). The Collateral Agent shall not be responsible for or have a duty to ascertain or
inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Collateral Agent’s Lien thereon or any certificate prepared by any Loan Party in
connection therewith, nor shall the Collateral Agent be responsible or liable to the Lenders or any other Secured Party for any failure to monitor or maintain any portion of the Collateral. 

Section 8.08 Credit Bidding. The Secured Parties hereby irrevocably authorize each Agent, at the direction of the Required
Lenders, to credit bid all or any portion of the Secured Obligations (including by accepting some or all of the Collateral in satisfaction of some or all of the Secured 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 Loan 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) any
Agent (whether by judicial action or otherwise) in accordance with any applicable Requirements of Law. In connection with any such credit bid and purchase, the Secured Obligations owed to the Secured Parties shall be entitled to be, and shall be,
credit bid by any Agent at the direction of the Required Lenders on a ratable basis (with Secured 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 

  
 109 

 
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) each 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’
ratable interests in the Secured 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) each Agent shall be
authorized to adopt documents providing for the governance of the acquisition vehicle or vehicles (provided that any actions by any 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 Required 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 Required Lenders contained in Section 9.02
of this Agreement), (iv) each 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 Secured 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 Secured Party or acquisition vehicle to take any
further action, and (v) to the extent that Secured 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 Secured
Obligations assigned to the acquisition vehicle exceeds the amount of Secured Obligations credit bid by the acquisition vehicle or otherwise), such Secured Obligations shall automatically be reassigned to the Secured Parties pro rata with their
original interest in such Secured Obligations and the equity interests and/or debt instruments issued by any acquisition vehicle on account of such Secured 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 Secured Obligations of each Secured Party are 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) as the applicable 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 8.09 Certain ERISA Matters.  

(a) Each Lender (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 and each Joint Lead Arranger and their respective Affiliates, and not, for the avoidance of
doubt, to or for the benefit of the Borrower or any other Loan Party, that at least one of the following is and will be true: 

(i) such Lender is not using “plan assets” (within the meaning of the Plan Asset Regulations) of one or more Benefit
Plans in connection with the Loans or the Commitments, 
 (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 applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement, and the conditions for
exemptive relief thereunder are and will continue to be satisfied in connection therewith, 

  
 110 

 (iii) (A) such Lender is an investment fund managed by a “Qualified
Professional Asset Manager” (within the meaning of Part 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 Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement, or 

(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole
discretion, and such Lender. 
 (b) In addition, unless sub-clause (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 sub-clause (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 and each Joint Lead Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that: 

(i) none of the Administrative Agent, or any Joint Lead 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), 

(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 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 million, in each case as described in 29 CFR § 2510.3-21(c)(1)(i)(A)-(E), 

(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 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 Secured Obligations), 
 (iv) 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 Commitments and this Agreement is a fiduciary under ERISA or the Code, or both, with respect to the Loans, the Commitments and this Agreement and is responsible for
exercising independent judgment in evaluating the transactions hereunder, and 

  
 111 

 (v) no fee or other compensation is being paid directly to the
Administrative Agent or any Joint Lead Arranger or any their respective Affiliates for investment advice (as opposed to other services) in connection with the Loans, the Commitments or this Agreement. 

(c) The Administrative Agent and each Joint Lead Arranger hereby informs 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 Commitments and this Agreement, (ii) may recognize a gain if it extended the Loans or the Commitments for an amount less than the amount being paid
for an interest in the Loans 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. 

ARTICLE IX 
 Miscellaneous

 Section 9.01 Notices. 

(a) Except in the case of notices and other communications expressly permitted to be given by telephone or electronic mail (and subject to
paragraph (b) below), 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: 

(i) if to the Borrower, to it at 10000 Energy Drive, Spring, Texas 77389, Attention of the Chief Financial Officer (Facsimile
No. (832) 796-4820; Telephone No. (832) 796-2808; Email: carl_giesler@swn.com; Email: swntreasury@swn.com); 

(ii) if to the Administrative Agent, 500 Stanton Christiana Rd., NCC5 / 1st Floor, Newark, DE 19713, Attention: Loan &
Agency Services Group (Facsimile 12012443657@tls.ldsprod.com; Email: matthew.bruno@chase.com), Agency Withholding Tax Inquiries (Email: agency.tax.reporting@jpmorgan.com), Agency Compliance/Financials/Intralinks (Email:
covenant.compliance@jpmchase.com); 
 (iii) the Collateral Agent, CIB DMO WLO, Mail code
NY1-C413, 4 CMC, Brooklyn, NY, 11245-0001 (Email: ib.collateral.services@jpmchase.com); 

(iv) if to any other Lender, to it at its address (or facsimile number) set forth in its Administrative Questionnaire. 

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 facsimile 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 Systems, to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b). 

  
 112 

 (b) Notices and other communications to the Lenders hereunder may be delivered or furnished
by using Electronic Systems pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II to any Lender if such Lender has notified the Administrative Agent that it
is incapable of receiving notices under such Article by electronic communication. 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. 

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 clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses
(i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient. 
 (c) The Borrower may change its address, facsimile number or electronic mail address for notices and other
communications hereunder by written notice to the Administrative Agent. Any other party hereto may change its address, facsimile number or electronic mail address for notices and other communications hereunder by written notice to the other parties
hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt. 

Section 9.02 Waivers; Amendments. 

(a) No failure or delay by the Administrative Agent, the Collateral Agent or any Lender in exercising any right or power hereunder or under
any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent, the Collateral Agent 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 consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall be permitted by
Section 9.02(b), 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 shall not be
construed as a waiver of any Default, regardless of whether the Administrative Agent, the Collateral Agent or any Lender may have had notice or knowledge of such Default at the time. 

(b) Subject to Section 2.11(b) and (c) and Section 9.02(g), neither this
Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders or by the Borrower and the Administrative Agent with the consent of
the Required Lenders; provided that no such agreement shall (i) increase the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or reduce the rate of interest thereon,
or reduce any fees payable hereunder, without the written consent of each Lender directly affected thereby, (iii) postpone the scheduled date of payment of the principal amount of any Loan (excluding mandatory prepayments pursuant to
Section 2.08(b)), or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without the written
consent of each 

  
 113 

 
Lender directly affected thereby, (iv) change Section 2.15(b) in a manner that would alter the order of payments required thereby, without the written consent of
each Lender directly affected thereby, (v) change Section 2.15(d) in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, (vi) change any of
the provisions of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or make any determination or grant
any consent hereunder, without the written consent of each Lender, (vii) release the Borrower from its obligations under the Loan Documents without the written consent of each Lender, (viii) except as provided in
Section 9.15, release all or substantially all of the Subsidiary Guarantors from their guarantee obligations under the Subsidiary Guaranties, without the written consent of each Lender, (ix) except as provided in
clause (d) of this Section or in any Collateral Document, release all or substantially all of the Collateral, without the written consent of each Lender or (x) contractually subordinate (1) the Liens securing any of the Secured
Obligations on all or substantially all of the Collateral to the Liens securing any other Indebtedness or other obligations or (2) any Secured Obligations in contractual right of payment to any other debt or other obligations including any
other Class of Loans hereunder, in any such case, without the consent of each Lender directly and adversely affected thereby (but not the Administrative Agent or any other Lender or Secured Party) (provided, however,
in no event shall this clause (ix) restrict any “debtor in possession” financing); provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent or the
Collateral Agent hereunder without the prior written consent of the Administrative Agent or the Collateral Agent, as the case may be. 
 (c)
Notwithstanding the foregoing, no consent with respect to any amendment, waiver or other modification of this Agreement shall be required of any Defaulting Lender, except with respect to any amendment, waiver or other modification referred to in
clauses (i), (ii), (iii) or (v) of Section 9.02(b) and then only in the event such Defaulting Lender shall be directly affected by such amendment, waiver or other modification. 

(d) Each of the Lenders, on behalf of itself and any of its Affiliates that are Secured Parties, irrevocably authorizes the Administrative
Agent, at its option and in its sole discretion, to direct the Collateral Agent to release any Liens granted to the Collateral Agent by the Loan Parties on any Collateral (i) upon Payment in Full, (ii) constituting property being Disposed
of if the Borrower certifies to the Administrative Agent and the Collateral Agent that the Disposition is made in compliance with the terms of this Agreement (and the Administrative Agent and the Collateral Agent may rely conclusively on any such
certificate, without further inquiry), (iii) constituting property leased to the Borrower or any Subsidiary under a lease which has expired or been terminated in a transaction permitted under this Agreement, (iv) if approved or authorized
in writing pursuant to Section 9.02(b) or (v) as required to effect any Disposition of such Collateral in connection with any exercise of remedies of the Administrative Agent, the Collateral Agent and the Lenders
pursuant to Article VII. Any such release shall not in any manner discharge, affect, or impair the Secured Obligations or any Liens (other than those expressly being released) upon (or obligations of the Loan Parties in respect of) all
interests retained by the Loan Parties, including the proceeds of any Disposition, all of which shall continue to constitute part of the Collateral. In addition, each of the Lenders, on behalf of itself and any of its Affiliates that are Secured
Parties, irrevocably authorizes the Administrative Agent, at its option and in its discretion, to direct the Collateral Agent (i) to subordinate any Lien on any assets granted to or held by the Collateral Agent under any Loan Document to the
holder of any Lien on such property that is permitted by Section 6.02(h) or (ii) in the event that the Borrower shall have advised the Administrative Agent that, notwithstanding the use by the Borrower of commercially
reasonable efforts to obtain the consent of such holder (but without the requirement to pay any sums to obtain such consent) to permit the Collateral Agent to retain its Liens (on a subordinated basis as contemplated by clause (i) above), the
holder of such other Indebtedness requires, as a condition to the extension of such credit, that the Liens on such assets granted to or held by the Collateral Agent under any Loan Document be released, to release the Collateral Agent’s Liens on
such assets. Any execution and delivery by the Collateral Agent, at the direction of the Administrative Agent, of documents in connection with any such release shall be without recourse to or warranty by the Administrative Agent or the Collateral
Agent. 

  
 114 

 (e) Notwithstanding the foregoing clauses (a), (c) and (c) of this
Section 9.02, until the date upon which the Discharge of RBL Obligations shall have occurred, in the event the RBL Administrative Agent and the requisite number of RBL Credit Facility Lenders (in accordance with the terms
of the RBL Credit Facility) enter into any amendment, waiver or consent (i) with respect to (1) the 30 day period provided in Section 5.09 of the RBL Credit Agreement (as in existence on the Effective Date), (2) the 60 day period
provided in Section 5.10(a)(i) of the RBL Credit Agreement (as in existence on the Effective Date), (3) the 30 day period provided in Section 5.10(a)(ii) of the RBL Credit Agreement
(as in existence on the Effective Date) or (4) the 60 day period provided in Section 5.11(b) of the RBL Credit Agreement (as in existence on the Effective Date) or (ii) in any year, permitting the delivery of a
Reserve Report pursuant to Section 5.15 of the RBL Credit Agreement (as in existence on the Effective Date) on any date other than March 1st and September 1st of such year (or in any case of any of the foregoing clauses (i) or (ii), any comparable provision of any RBL Credit Facility), then such amendment, waiver or consent shall automatically
apply in a comparable manner to the comparable provision(s) of this Agreement without any action by the Administrative Agent, the Collateral Agent, the Borrower or any Lender. 

(f) If, in connection with any proposed amendment, waiver or consent requiring the consent of “each Lender” or “each Lender
directly affected thereby,” the consent of the Required Lenders is obtained, but the consent of other necessary Lenders is not obtained (any such Lender whose consent is necessary but not obtained being referred to herein as a “Non-Consenting Lender”), then the Borrower may elect to replace a Non-Consenting Lender as a Lender party to this Agreement in accordance with
Section 2.16(b). 
 (g) If the Administrative Agent and the Borrower acting together identify any ambiguity,
omission, mistake, typographical error or other defect in any provision of this Agreement or any other Loan Document, then the Administrative Agent and the Borrower shall be permitted to amend, modify or supplement such provision to cure such
ambiguity, omission, mistake, typographical error or other defect, and such amendment shall become effective without any further action or consent of any other party to this Agreement. 

Section 9.03 Expenses; Indemnity; Damage Waiver. 

(a) The Borrower shall pay (i) all reasonable
out-of-pocket expenses incurred by the Administrative Agent, the Collateral Agent and the Joint Lead Arrangers and their respective Affiliates (including the reasonable
fees, charges and disbursements of one outside counsel, Sidley Austin LLP, counsel for the Administrative Agent and the Collateral Agent) in connection with the syndication and distribution (including via an Electronic System) of the credit
facilities provided for herein, the preparation and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or
thereby shall be consummated) and (ii) all out-of-pocket expenses incurred by the Administrative Agent, the Collateral Agent or any Lender, including the fees,
charges and disbursements of any counsel for the Administrative Agent, the Collateral Agent or any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement and any other Loan Document, including its
rights under this Section, or in connection with the Loans made hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Loans. 

  
 115 

 (b) The Borrower shall indemnify the Administrative Agent, the Collateral Agent and each
Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses,
including any reasonable legal expenses of one firm of counsel for all Indemnitees, taken as a whole, and, if reasonably necessary, one firm of local counsel in each appropriate jurisdiction and one firm of regulatory counsel in each appropriate
jurisdiction, in each case for the Indemnitees, taken as a whole, and, in the case of an actual or perceived conflict of interest (as reasonably determined by an Indemnitee), one additional firm of counsel in each relevant jurisdiction for the
affected Indemnitees similarly situated, taken as a whole, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of any Loan Document or any agreement or instrument
contemplated thereby, the performance by the parties hereto of their respective obligations thereunder or the consummation of the Transactions or any other transactions contemplated hereby, (ii) any Loan or the use of proceeds thereof,
(iii) 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, or any Environmental Liability related in any way to the Borrower or any of its
Subsidiaries or (iv) 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 the Borrower or any of
its Subsidiaries, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from (x) the gross negligence or willful misconduct of such Indemnitee, (y) any material breach of the express obligations of such
Indemnitee under the Loan Documents pursuant to a claim initiated by any Loan Party or (z) any dispute solely between or among Indemnitees (not arising as a result of any act or omission by the Borrower or any of its Subsidiaries or
Affiliates), other than claims against any Lender in its capacity as, or in fulfilling its role as, the Administrative Agent, the Collateral Agent, a Joint Lead Arranger or any similar role under the Loan Documents. This
Section 9.03(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims or damages arising from any non-Tax claim. 

(c) Each Lender severally agrees to pay any amount required to be paid by the Borrower under paragraph (a) or (b) of this
Section 9.03 to the Administrative Agent, the Collateral Agent and each Related Party of any of the foregoing Persons (each, an “Agent Indemnitee”) (to the extent not reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so), ratably according to their respective Applicable Percentages in effect on the date on which indemnification is sought under this Section (or, if indemnification is sought after the date on which the
Loans shall have been paid in full, ratably in accordance with such Applicable Percentages immediately prior to such date), from and against any and all losses, claims, damages, liabilities 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 Indemnitee in any way relating to or arising out of the Loans, 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 Indemnitee under or in connection with any of the
foregoing; provided that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted from such Agent Indemnitee’s gross negligence or willful misconduct. The agreements in this Section shall survive the termination of this Agreement and the payment of
the Loans and all other amounts payable hereunder. 
 (d) No Indemnitee shall be liable for any damages arising from the use by others of
information or other materials obtained through telecommunications, electronic or other information transmission systems (including the Internet), except to the extent that such damages have resulted from the willful misconduct, bad faith or gross
negligence of such Indemnitee (as determined by a court of competent jurisdiction in a final, non-appealable judgment). 

  
 116 

 (e) To the extent permitted by applicable Requirements of Law, no party hereto shall assert,
or permit any of its Affiliates or Related Parties to assert, and each party hereto hereby waives, any claim against each such other Person 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 the use of the proceeds thereof;
provided that nothing contained in this paragraph shall limit the indemnification obligations of the Borrower set forth in paragraph (b) of this Section 9.03, including the Borrower’s obligation to
indemnify each Indemnitee for special, indirect, consequential or punitive damages incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of the matters described in clauses (i), (ii) and (iii) of such
paragraph (b). 
 (f) All amounts due under this Section shall be payable not later than fifteen (15) days after written demand
therefor. 
 Section 9.04 Successors and Assigns. 

(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, except that (i) the Borrower may not 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 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 Section. 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, Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated hereby, the
Related Parties of each of the Administrative Agent, the Collateral Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 

(b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more Persons (other than
an Ineligible Institution) 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 or delayed) of: 
 (A) the Borrower; provided that, other than with respect to any proposed assignment to
any Person that is a Disqualified Institution, 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 ten (10) Business Days after having
received written notice thereof; provided, further, that no consent of the Borrower shall be required for (1) an assignment to a Lender, an Affiliate of a Lender, an Approved Fund, (2) if a Specified Default has occurred and
is continuing, to any other assignee (other than a Disqualified Institution) or (3) in connection with the primary syndication of the Initial Loans to Lenders consented to by the Borrower; and 

(B) the Administrative Agent. 

(ii) Assignments shall be subject to the following additional conditions: 

(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 

  
 117 

 
the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $2,000,000 unless each of the Borrower and the
Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if a Specified Default has occurred and is continuing; 

(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, provided that this clause shall not be construed to prohibit the assignment of a proportionate part of all the assigning Lender’s rights and obligations in respect of one Class of Commitments or
Loans; 
 (C) the parties to each assignment shall execute and deliver to the Administrative Agent (x) an Assignment
and Assumption or (y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and the parties to the Assignment and
Assumption are participants, together with (unless waived by the Administrative Agent) a processing and recordation fee of $3,500, such fee to be paid by either the assigning Lender or the assignee Lender or shared between such Lenders; 

(D) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire in
which the assignee designates one or more credit contacts to whom all syndicate-level information (which may contain material non-public information about the Borrower and its affiliates and their Related
Parties or their respective securities) will be made available and who may receive such information in accordance with the assignee’s compliance procedures and applicable Requirements of Law, including Federal and state securities laws; and

 (E) no assignment shall be permitted if, as of the date thereof, any event or circumstance exists which would result in
the Borrower being obligated to pay any greater amount hereunder to the assignee than the Borrower is obligated to pay to the assigning Lender. 

For the purposes of this Section 9.04(b), the terms “Approved Fund” and “Ineligible Institution”
have the following meanings: 
 “Approved Fund” means any Person (other than 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. 
 “Ineligible Institution” means (a) a natural person, (b) a
Defaulting Lender or its Lender Parent, (c) the Borrower, any of its Subsidiaries or any of its Affiliates, (d) a Disqualified Institution or (e) a company, investment vehicle or trust for, or owned and operated for the primary
benefit of, a natural person or relative(s) thereof. 

  
 118 

 (iii) Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) of this Section, 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
Sections 2.12, 2.13, 2.14 and 9.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 9.04 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 paragraph (c) of this Section. 

(iv) The Administrative Agent, acting 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 Commitment of, and principal amount (and stated interest)
of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent, the Collateral
Agent and the Lenders shall 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 Collateral Agent and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 

(v) Upon its receipt of (x) a duly completed Assignment and Assumption executed by an assigning Lender and an assignee or
(y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and the parties to the Assignment and Assumption are
participant, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and any written consent to
such assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register; provided that if either the assigning
Lender or the assignee shall have failed to make any payment required to be made by it pursuant to Sections 2.04(b), Section 2.15(e), or 9.03(c), the Administrative Agent shall have no
obligation to accept such Assignment and Assumption and record the information therein in the Register unless and until such payment shall have been made in full, together with all accrued interest thereon. No assignment shall be effective for
purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph. 
 (c) Any Lender may, without the
consent of the Borrower or the Administrative Agent, sell participations to one or more banks or other entities (a “Participant”), other than an Ineligible Institution, 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 Collateral Agent 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 

  
 119 

 
the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section 9.02(b) that affects such Participant. The
Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.12, 2.13 and 2.14 (subject to the requirements and limitations therein, including the requirements under
Section 2.14(f) (it being understood that the documentation required under Section 2.14(f) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Sections 2.15 and 2.16 as if it were an
assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 2.12 or 2.14, 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. To the extent permitted by law, each Participant
also shall be entitled to the benefits of Section 9.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.15(d) 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 each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); 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 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 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. 

(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 any pledge or assignment to secure obligations to a Federal Reserve Bank or any other central bank having jurisdiction over such Lender, and this Section 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. 

(e) (i) No assignment or participation shall be made to any Person that was a Disqualified Institution as of the date (the “Trade
Date”) on which the assigning 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 to such Person (unless the Borrower has consented to
such assignment or participation in writing, in which case such Person will not be considered a Disqualified Institution for the purpose of such assignment or participation). For the avoidance of doubt, with respect to any assignee or Participant
that becomes a Disqualified Institution after the applicable Trade Date (including as a result of the delivery of a written supplement to the list of “Disqualified Institutions” and the expiration of the notice period, in each case,
referred to in the definition of “Disqualified Institution”), (x) such assignee or Participant shall not retroactively be disqualified from becoming a Lender or Participant and (y) the execution by the Borrower of an Assignment and
Assumption with respect to such assignee will not by itself result in such assignee no longer being considered a Disqualified Institution. Any assignment in violation of this clause (e)(i) shall not be void, but the other provisions of this
clause (e) shall apply.  

  
 120 

 (ii) If any assignment or participation is made to any Disqualified
Institution without the Borrower’s prior written consent in violation of clause (i) above, 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, (A) terminate any Commitment of such Disqualified Institution and repay all obligations of the Borrower owing to such Disqualified Institution in connection with
such Commitment, and/or (B) require such Disqualified Institution to assign, without recourse (in accordance with and subject to the restrictions contained in this Section 9.04), all of its interest, rights and obligations under this
Agreement at the lower of (x) the principal amount thereof and (y) the amount that such Disqualified Institution paid to acquire such interests, rights and obligations. 

(iii) Notwithstanding anything to the contrary contained in this Agreement, Disqualified Institutions to whom an assignment or
participation is made in violation of clause (i) above (A) will not (x) have the right to receive information, reports or other materials provided to Lenders by the Borrower, the Administrative Agent, the Collateral Agent or any
other Lender, (y) attend or participate in meetings attended by the Lenders, the Administrative Agent and the Collateral Agent, or (z) access any electronic site established for the Lenders or confidential communications from counsel to or
financial advisors of the Administrative Agent, the Collateral Agent or the Lenders and (B) (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, the Collateral 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 bankruptcy or plan of reorganization, each Disqualified Institution party hereto hereby agrees (1) not to vote
on such plan of reorganization, (2) if such Disqualified Institution does vote on such bankruptcy or plan of reorganization notwithstanding the restriction in the 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 debtor relief law), and such vote shall not be counted in determining whether the applicable class has accepted or rejected such
bankruptcy or plan of reorganization in accordance with Section 1126(c) of the Bankruptcy Code (or any similar provision in any other debtor relief law) and (3) not to contest any request by any party for a determination by a bankruptcy
court (or other applicable court of competent jurisdiction) effectuating the foregoing clause (2). 
 (iv) The Administrative
Agent shall have the right, and the Borrower hereby expressly authorizes the Administrative Agent, to provide to any Lender requesting the list of Disqualified Institutions provided by the Borrower to the Administrative Agent and any updates thereto
from time to time (collectively, the “DQ List”) and/or to post the DQ List on a Platform, including that portion of such Platform that is designated for “public side” Lenders. 

(v) None of the Administrative Agent, the Collateral Agent or the Lenders (except for such Lender’s review of the DQ List)
shall be responsible or have any liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with the provisions hereof relating to Disqualified Institutions. Without limiting the generality of the foregoing, none
of the Administrative Agent, the Collateral Agent or the Lenders shall (x) except for such Lender’s review of the DQ List, be obligated to ascertain, monitor or inquire as to whether any other Lender or Participant or prospective Lender or
Participant is a Disqualified Institution or (y) have any liability with respect to or arising out of any assignment or participation of Loans, or disclosure of confidential information, by any other Person to any Disqualified Institution. 

(vi) By executing and delivering an Assignment and Assumption, the assignee thereunder represents and warrants to the parties
hereto that it is not a Disqualified Institution or an Affiliate of a Disqualified Institution. 

  
 121 

 Section 9.05 Survival. All covenants, agreements, representations and warranties
made by the Loan Parties in the Loan Documents 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 the Loan Documents and the making of any Loans, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, the Collateral
Agent 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 or any other Loan Document is outstanding and unpaid. The provisions of Sections 2.12, 2.13, 2.14 and 9.03 and Article VIII
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 Aggregate Commitments or the termination of this Agreement or
any other Loan Document or any provision hereof or thereof. 
 Section 9.06 Counterparts; Integration; Effectiveness; Electronic
Execution. 
 (a) This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of
which shall be deemed an original, but all of which when taken together shall constitute a single contract. This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent, the
Collateral Agent, the Joint Lead Arrangers or the Lenders constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the
subject matter hereof. Except as provided in Section 4.01, 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. 

(b) Delivery of an executed counterpart of a signature page of (x) this Agreement, (y) any other Loan Document and/or (z) any
document, amendment, approval, consent, information, notice (including, for the avoidance of doubt, any notice delivered pursuant to Section 9.01), certificate, request, statement, disclosure or authorization related to
this Agreement, any other Loan Document and/or the transactions contemplated hereby and/or thereby (each an “Ancillary Document”) that is an Electronic Signature transmitted by telecopy, emailed pdf. or any other electronic means
that reproduces an image of an actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement, such other Loan Document or such Ancillary Document, as applicable. The words “execution,”
“signed,” “signature,” “delivery,” and words of like import in or relating to this Agreement, any other Loan Document and/or any Ancillary Document shall be deemed to include Electronic Signatures, deliveries or the
keeping of records in any electronic form (including deliveries by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page), each of which shall be of the same legal effect, validity or
enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be; provided that nothing herein shall require the Administrative Agent to accept Electronic
Signatures in any form or format without its prior written consent and pursuant to procedures approved by it; provided, further, without limiting the foregoing, (i) to the extent the Administrative Agent has agreed to accept any
Electronic Signature, the Administrative Agent, the Collateral Agent and each of the Lenders shall be entitled to rely on such Electronic Signature purportedly given by or on behalf of the Borrower or any other Loan Party without further
verification thereof and without any obligation to review the appearance or form of any such Electronic signature and (ii) upon the request of the Administrative Agent, the Collateral Agent or any Lender, any Electronic Signature shall be
promptly followed by a manually executed counterpart. Without limiting the generality of the foregoing, the Borrower and each Loan Party hereby (i) agrees that, for all purposes, including without limitation, in

  
 122 

 
connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among the Administrative Agent, the Collateral Agent, the Lenders, the Borrower and the
Loan Parties, Electronic Signatures transmitted by telecopy, emailed .pdf or any other electronic means that reproduces an image of an actual executed signature page and/or any electronic images of this Agreement, any other Loan Document and/or any
Ancillary Document shall have the same legal effect, validity and enforceability as any paper original, (ii) each of the Administrative Agent, the Collateral Agent and the Lenders may, at its option, create one or more copies of this Agreement,
any other Loan Document and/or any Ancillary Document in the form of an imaged electronic record in any format, which shall be deemed created in the ordinary course of such Person’s business, and destroy the original paper document (and all
such electronic records shall be considered an original for all purposes and shall have the same legal effect, validity and enforceability as a paper record), (iii) waives any argument, defense or right to contest the legal effect, validity or
enforceability of this Agreement, any other Loan Document and/or any Ancillary Document based solely on the lack of paper original copies of this Agreement, such other Loan Document and/or such Ancillary Document, respectively, including with
respect to any signature pages thereto and (iv) waives any claim against any Related Parties of any Lender for any Liabilities arising solely from the Administrative Agent’s, the Collateral Agent’s and/or any Lender’s reliance on
or use of Electronic Signatures and/or transmissions by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page, including any Liabilities arising as a result of the failure of the Borrower
and/or any Loan Party to use any available security measures in connection with the execution, delivery or transmission of any Electronic Signature. 

Section 9.07 Severability. Any provision of any 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 thereof; and the invalidity of a particular
provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
 Section 9.08 Right of
Setoff. 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 and in whatever currency denominated) at any time held and other obligations at any time owing by such Lender or Affiliate to or for the credit or the account of the Borrower or any
Subsidiary Guarantor against any of and all of the Secured Obligations held by such Lender or its Affiliates, irrespective of whether or not such Lender or Affiliate shall have made any demand under this Agreement or any other Loan Documents and
although such obligations may be contingent or unmatured or are owed to a branch office or Affiliate of such Lender different from the branch office or Affiliate holding such deposit or obligated on such indebtedness; provided that in the event that
any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders,
and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Secured Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of
each Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender or its Affiliates may have. Each Lender agrees to promptly notify the Borrower and the
Administrative Agent after any such setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff and application. The rights of each Lender under this Section are in addition to other rights and
remedies (including other rights of setoff) which such Lender may have. 

  
 123 

 Section 9.09 Governing Law; Jurisdiction; Consent to Service of Process. 

(a) This Agreement and any dispute, claim or controversy arising out of or relating to this Agreement (whether arising in contract, tort or
otherwise) shall be construed in accordance with and governed by the law of the State of New York. 
 (b) The Borrower irrevocably and
unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against any Credit Party or any Related Party of any Credit
Party in any way relating to this Agreement or any other Loan Document or the Transactions, in any forum other than the Supreme Court of the State of New York sitting in New York County, Borough of Manhattan, or the United States District Court for
the Southern District of New York, and any appellate court from any thereof, and each of the parties hereto hereby irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all claims in respect of any such action,
litigation or proceeding may (and any such claims, cross-claims or third party claims brought against the Administrative Agent or any of its Related Parties may only) be heard and determined in such New York State court or, to the extent permitted
by applicable Requirements of Law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law. Nothing in this Agreement or in any other Loan Document shall affect any right that any Credit Party may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document
against any Loan Party or its properties in the courts of any jurisdiction. 
 (c) Each party hereto hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in
any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in
any such court. 
 (d) Each party hereto irrevocably consents to service of process in the manner provided for notices in
Section 9.01. Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 

Section 9.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
REQUIREMENTS OF LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT 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 THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION. 
 Section 9.11 Headings. 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. 

  
 124 

 Section 9.12 Confidentiality. Each of the Administrative Agent, the Collateral
Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (i) 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), (ii) to the extent
requested by any regulatory authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners) or as may be required by applicable Requirements of Law or by any subpoena or similar legal process, in
which case such Person shall, except with respect to any audit or examination conducted by bank accountants or any governmental or bank regulatory authority exercising examination or regulatory authority, to the extent practicable and not prohibited
by applicable Requirements of Law, promptly notify the Borrower of such disclosure, (iii) to any other party to this Agreement, (iv) in connection with the exercise of any remedies under this Agreement or 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, (v) subject to an agreement containing provisions substantially the same as those of this Section, to
(A) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement, (B) any actual or prospective counterparty (or its advisors) to any swap, derivative or
securitization transaction relating to the Borrower and its obligations or (C) to any credit insurance provider relating to the Borrower and its obligations, (vi) with the consent of the Borrower, (vii) to the extent such Information
(A) becomes publicly available other than as a result of a breach of this Section or (B) becomes available to the Administrative Agent or any Lender on a nonconfidential basis from a source other than the Borrower or (viii) on a
confidential basis to (x) any rating agency in connection with rating the Borrower or its Subsidiaries or the transactions hereunder or (y) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of
CUSIP numbers with respect to the transactions hereunder; provided, however, no disclosure (other than disclosure of the DQ List) is permitted to any Person that is, at such time, a Disqualified Institution. For the purposes of this
Section, “Information” means all information received from the Borrower relating to the Borrower, any Subsidiary or any of their respective businesses, other than any such information that is available to the Administrative Agent or
any Lender on a nonconfidential basis prior to disclosure by the Borrower and other than information pertaining to this Agreement routinely provided by arrangers to data service providers, including league table providers, that serve the lending
industry; provided that that (notwithstanding the foregoing) no such nonpublic information which contains projections or forecasts with respect to the Borrower or any of its Affiliates shall be disclosed, disseminated or otherwise made
available pursuant to clause (vii) above. Any Person required to maintain the confidentiality of Information as provided in this Section 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. 

EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN THE IMMEDIATELY PRECEDING PARAGRAPH FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY
INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER AND ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE REQUIREMENTS OF LAW, INCLUDING FEDERAL
AND STATE SECURITIES LAWS. 
 ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER, ITS
SUBSIDIARIES OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE LOAN
PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES. ACCORDINGLY, EACH LENDER REPRESENTS TO THE 

  
 125 

 
BORROWER AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH APPLICABLE REQUIREMENTS OF LAW. 
 Section 9.13 USA
PATRIOT Act. Each Lender that is subject to the requirements of the Patriot Act hereby notifies each Loan Party that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies such
Loan Party, which information includes the name and address of such Loan Party and other information that will allow such Lender to identify such Loan Party in accordance with the Patriot Act. 

Section 9.14 Appointment for Perfection. Each Lender hereby appoints each other Lender as its agent for the purpose of perfecting
Liens, for the benefit of the Collateral Agent and the other Secured Parties, in assets which, in accordance with Article 9 of the UCC or any other applicable Requirements of Law can be perfected only by possession or control. Should any Lender
(other than the Collateral Agent) obtain possession or control of any such Collateral, such Lender shall notify the Collateral Agent thereof, and, promptly upon the Collateral Agent’s request therefor shall deliver such Collateral to the
Collateral Agent or otherwise deal with such Collateral in accordance with the Collateral Agent’s instructions. 
 Section 9.15
Subsidiary Guarantors. So long as no Default or Event of Default has occurred and is continuing (or would result from such release), (i) if all of the Equity Interests of a Subsidiary Guarantor that is owned by the Borrower or a
Subsidiary is Disposed of in a transaction or transactions permitted by this Agreement or (ii) any Subsidiary Guarantor no longer constitutes a Material Domestic Subsidiary, then, in each case, promptly following the Borrower’s written
request, the Collateral Agent shall execute a release of such Subsidiary Guarantor from its Subsidiary Guaranty. In connection with any release pursuant to this Section, the Collateral Agent shall (and is hereby irrevocably authorized by each Lender
to) execute and deliver to the Borrower, at the Borrower’s expense, all documents that the Borrower shall reasonably request to evidence such termination or release. Any execution and delivery of documents pursuant to this Section shall be
without recourse to or warranty by the Collateral Agent. 
 Section 9.16 Interest Rate Limitation. Notwithstanding anything
herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable Requirements of Law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable Requirements of
Law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in
respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate
therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender. 

Section 9.17 No Fiduciary Duty, etc. The Borrower acknowledges and agrees, and acknowledges its Subsidiaries’
understanding, that no Credit Party will have any obligations under the Loan Documents except those obligations expressly set forth herein and in the other Loan Documents and in connection with the transactions contemplated by the Loan Documents
each Credit Party is acting solely in the capacity of an arm’s length contractual counterparty to the Borrower with respect to the Loan Documents and the transaction contemplated therein and not as a financial advisor or a fiduciary to, or an
agent of, the Borrower or any other person. The Borrower agrees that it will not assert any claim against any Credit Party based on an alleged breach of fiduciary duty by such Credit Party in connection with this

  
 126 

 
Agreement and the transactions contemplated hereby. Additionally, the Borrower acknowledges and agrees that no Credit Party is advising the Borrower as to any legal, tax, investment, accounting,
regulatory or any other matters in any jurisdiction. The Borrower shall consult with its own advisors concerning such matters to the extent it deems appropriate and shall be responsible for making its own independent investigation and appraisal of
the transactions contemplated hereby, and the Credit Parties shall have no responsibility or liability to the Borrower with respect thereto. 
 The Borrower
further acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that each Credit Party, together with its Affiliates, is a full service securities or banking firm engaged in securities trading and brokerage activities as well
as providing investment banking and other financial services. In the ordinary course of business, any Credit Party may provide investment banking and other financial services to, and/or acquire, hold or sell, for its own accounts and the accounts of
customers, equity, debt and other securities and financial instruments (including bank loans and other obligations) of, the Borrower and other companies with which the Borrower may have commercial or other relationships. With respect to any
securities and/or financial instruments so held by any Credit Party or any of its customers, all rights in respect of such securities and financial instruments, including any voting rights, will be exercised by the holder of the rights, in its sole
discretion. 
 In addition, the Borrower acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that each Credit Party and its
affiliates may be providing debt financing, equity capital or other services (including financial advisory services) to other companies in respect of which the Borrower may have conflicting interests regarding the transactions described herein and
otherwise. No Credit Party will use confidential information obtained from the Borrower by virtue of the transactions contemplated by the Loan Documents or its other relationships with the Borrower in connection with the performance by such Credit
Party of services for other companies, and no Credit Party will furnish any such information to other companies. The Borrower also acknowledges that no Credit Party has any obligation to use in connection with the transactions contemplated by the
Loan Documents, or to furnish to the Borrower, confidential information obtained from other companies. 
 Section 9.18
Acknowledgment and Consent to Bail-In of Affected Financial Institutions. 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 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: 
 (a) the application of any Write-Down and Conversion Powers by an 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 

(b) the effects of any Bail-In Action on any such liability, including, if applicable: 

(i) a reduction in full or in part or cancellation of any such liability; 

(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 entity, 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 

  
 127 

 (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 9.19 Flood Insurance
Regulations. Notwithstanding any provision in this Agreement or any other Loan Document to the contrary, in no event is any Building (as defined in the applicable Flood Laws) or Manufactured (Mobile) Home (as defined in the applicable Flood
Laws) included in the definition of “Mortgaged Property” and no Building or Manufactured (Mobile) Home is hereby encumbered by this Agreement or any other Loan Document. 

Section 9.20 Pari Passu Intercreditor Agreement. 

(a) Reference is hereby made to the Pari Passu Intercreditor Agreement. Each Lender hereunder (i) acknowledges that it has received a
copy of the Pari Passu Intercreditor Agreement, (ii) agrees that it will be bound by and will take no actions contrary to the provisions of the Pari Passu Intercreditor Agreement, (iii) authorizes and instructs the Administrative Agent to
enter into the Pari Passu Intercreditor Agreement as Administrative Agent and on behalf of such Lender, and (iv) authorizes and instructs the Collateral Agent to enter into the Pari Passu Intercreditor Agreement as Collateral Agent and on
behalf of such Lender. 
 (b) Notwithstanding anything herein to the contrary, the priorities of the Liens and security interests granted to
the Collateral Agent pursuant to this Agreement and the other Loan Documents and the exercise of any right or remedy by the Collateral Agent hereunder or under any other Loan Document are subject to the provisions of the of the Pari Passu
Intercreditor Agreement. In the event of a conflict or inconsistency between the provisions of the Pari Passu Intercreditor Agreement and any Loan Document with respect to the relative priorities of any of the Liens with respect to the Collateral
and/or the exercise of any rights or remedies with respect to the Collateral, the provisions of the Pari Passu Intercreditor Agreement shall control. 

[Signature Pages Follow] 

  
 128 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the day and year first above written. 
  

			
	SOUTHWESTERN ENERGY COMPANY, as the Borrower
		
	By	 	/s/ Carl F. Giesler, Jr.
		 	Name: Carl F. Giesler, Jr.
		 	Title: Executive Vice President and Chief Financial Officer

 Signature Page to Term Loan Credit Agreement 

 
			
	JPMORGAN CHASE BANK, N.A., as Administrative Agent and Collateral Agent
		
	By	 	/s/ Arina Mavilian
		 	Name: Arina Mavilian
		 	Title: Executive Director

 Signature Page to Term Loan Credit Agreement 

 
			
	JPMORGAN CHASE BANK, N.A., as a Lender
		
	By	 	/s/ Arina Mavilian
		 	Name: Arina Mavilian
		 	Title: Executive Director

 Signature Page to Term Loan Credit Agreementachv-ex101_44.htm

EXHIBIT 10.1

2021 CONTINGENT CONVERTIBLE DEBT AGREEMENT

THIS 2021 CONTINGENT CONVERTIBLE DEBT AGREEMENT (this “Agreement”) is dated as of the Effective Date among (a) SILICON VALLEY BANK, a California corporation (“SVB”), in its capacity as administrative agent and collateral agent (“Agent”), (b) SILICON VALLEY BANK, a California corporation, as a lender, (c) SVB Innovation Credit Fund VIII, L.P., a Delaware limited partnership (“Innovation”), as a lender (SVB and Innovation and each of the other “Lenders” from time to time a party hereto are referred to herein collectively as the “Lenders” and each individually as a “Lender”), and (d) and the borrower listed on Schedule I hereto (“Borrower”).  The parties agree as follows:  

1LOAN AND TERMS OF PAYMENT

1.1.1Term Loan. 

(a)Availability.  Subject to the terms and conditions of this Agreement, upon Borrower’s request, the Lenders, severally and not jointly, shall make one (1) Term Loan Advance on or about the Effective Date in an amount equal to the Term Loan Availability Amount according to each Lender’s Term Loan Commitment as set forth on Schedule II hereto (plus the PIK Amount, the “Term Loan Advance”).  Borrower may request the Term Loan Advance as set forth on Schedule I hereto.  The borrowing of the Term Loan Advance hereunder shall be made according to the respective Term Loan Commitment Percentage of the Lenders.

(b)Repayment.  All outstanding principal and accrued and unpaid interest under the Term Loan Advance, and all other outstanding Obligations with respect to the Term Loan Advance (including the PIK Amount), are due and payable in full on the Term Loan Maturity Date. 

(c)Permitted Prepayment.  Borrower shall have the option to prepay all, but not less than all, of the Term Loan Advance pursuant to Section 1.3 below.

(d)Mandatory Prepayment Upon an Acceleration.  If the Term Loan Advance is accelerated by Agent following the occurrence and during the continuance of an Event of Default, Borrower shall immediately pay to Agent, for the account of the Lenders in accordance with its respective Pro Rata Share, an amount equal to the sum of (i) all outstanding principal plus accrued and unpaid interest with respect to the Term Loan Advance (including the PIK Amount), and (ii) all other sums, if any, that shall have become due and payable with respect to the Term Loan Advance (including the PIK Amount), including Lenders’ Expenses and interest at the Default Rate with respect to any past due amounts.

1.1.2Additional Term Loan.  Subject to the terms and conditions of this Agreement, upon the occurrence of the Additional Term Loan Event, the Lenders, severally and not jointly, shall make one (1) Additional Term Loan Advance in an amount equal to the Additional Term Loan Availability Amount according to each Lender’s Term Loan Commitment as set forth on Schedule II hereto, the “Additional Term Loan Advance”).  Borrower may request the Additional Term Loan Advance as set forth on Schedule I hereto.

1.2Contingent Convertibility.  Unless repaid pursuant to Section 1.1.1, the outstanding principal amount of the Term Loan Advance (including, without limitation, the PIK Amount) and all accrued and unpaid interest thereon (i) may be converted in whole or in part into shares of Common Stock, at any time and from time to time at the election of a Conversion Right Holder in its sole discretion and without obligation to do so, (a “Voluntary Conversion”), and (ii) shall automatically be converted in whole into shares of Common Stock upon the Price Event (a “Mandatory Conversion”), in any case in accordance with this Section 1.2.  

(a)Conversion.  

(i)Voluntary Conversion.  Upon a Voluntary Conversion, the number of shares of Common Stock issued to each Conversion Right Holder who has delivered a 

 

 
 

Conversion Notice (as defined below) shall equal (A) the amount of Associated Debt such Conversion Right Holder elects to convert, divided by (B) the Conversion Price.

(ii)Mandatory Conversion.  Upon a Mandatory Conversion, the number of shares of Common Stock issued to each Conversion Right Holder shall equal (A) the total amount of such Conversion Right Holder’s Associated Debt, divided by (B) the Conversion Price.

(b)Mechanics of Conversion.  In order to effect a Voluntary Conversion of Associated Debt hereunder, a Conversion Right Holder shall deliver a conversion notice to the Issuer (and, if the Issuer is not Borrower, to Borrower) in substantially the form of Exhibit D-1 hereto (a “Conversion Notice”).  Any such Conversion Notice shall be irrevocable by the Conversion Right Holder unless the Issuer breaches its obligation to issue the Conversion Shares as and when required hereunder.  Subject to the foregoing sentence, the conversion of the Associated Debt set forth in a Conversion Notice into Conversion Shares in the case of a Voluntary Conversion, or the conversion of Associated Debt into Conversion Shares in the case of a Mandatory Conversion, and the issuance of such Conversion Shares to and in the name(s) of the applicable Conversion Rights Holders (or such other recipient(s) as any such Conversion Right Holder shall have designated in writing to the Issuer prior to the date of such conversion of the Associated Debt into Conversion Shares), shall be deemed effective at the close of business on and as of the date of delivery to the Issuer of such Conversion Notice in the case of a Voluntary Conversion  or the date of the Price Event in the case of a Mandatory Conversion, as applicable, notwithstanding that one or more paper, digital or electronic certificates evidencing such Conversion Shares may not be delivered to such recipients until after such date.

(c)Status of Conversion Shares.  All Conversion Shares, when issued by the Issuer hereunder, shall be duly and validly issued, fully-paid and non-assessable Common Shares, free and clear of all claims, liens and encumbrances whatsoever, except for (i) restrictions on transfer that may arise under applicable federal and/or state securities laws, and (ii) claims, liens or encumbrances arising by or through the Conversion Right Holder, any recipient of such Conversion Shares (or additional shares) designated in the Conversion Notice, or the holder of the applicable Associated Debt, in writing to Issuer prior to the date of such conversion of the Associated Debt into Conversion Shares.   Not later than the third (3rd) business day following any conversion of Associated Debt hereunder, the Issuer shall, or shall cause its transfer agent to, deliver a duly issued, executed or otherwise authenticated certificate or other evidence of the issuance of such Conversion Shares, in such form as it issues to other holders of Common Stock, to and in the name of each converting Conversion Right Holder (or other recipient(s) as shall have been designated by such Conversion Right Holder in writing prior to the date of such conversion of the Associated Debt into Conversion Shares) evidencing the number of Conversion Shares such Conversion Right Holder or other recipient is entitled to receive.

(d)Registration Rights.  The Conversion Right Holders shall have the registration rights with respect to the Conversion Shares set forth in the Registration Rights Agreement. 

(e)Costs of Conversion.  All reasonable and documented, out-of-pocket fees, costs and expenses (including, without limitation, reasonable and documented out-of-pocket attorneys’ fees and disbursements, but excluding any taxes payable by the Conversion Right Holder, holder of Associated Debt and any recipient of Conversion Shares designated by the Conversion Right Holder) of a Conversion Right Holder, holder of Associated Debt and any recipient of Conversion Shares designated by the Conversion Right Holder in accordance with the terms hereof and in connection with any conversion of Associated Debt hereunder shall be paid or reimbursed on demand by the Issuer.

(f)Limitation.  Notwithstanding anything to the contrary in this Agreement, (i) the maximum aggregate number of Conversion Shares issuable to all Conversion Right Holders on conversion of any and all Associated Debt hereunder shall not exceed the Primary Conversion Limit, and (ii) on any Voluntary or Mandatory Conversion hereunder in which SVB Financial Group is a participating Conversion Right Holder, the maximum aggregate number of Conversion Shares issuable to SVB Financial Group on conversion of its Associated Debt (“SVBFG Conversion Shares”), when added to all other shares of Common Stock then owned or held by SVB Financial Group beneficially and/or of record (“SVBFG Other Shares”), shall not exceed the Secondary Conversion Limit.  All Associated Debt whose conversion would result in such Conversion Shares exceeding the Primary Conversion Limit and/or such SVBFG Conversion Shares plus such SVBFG Other Shares exceeding the Secondary 

 

 
2

Conversion Limit shall not be converted but shall remain outstanding indebtedness hereunder unless and until converted by a Conversion Right Holder in accordance with this Section 1.2 (and subject to this Section 1.2(f)).  The Conversion Right Holders will promptly confirm to Issuer the aggregate number of SVBFG Other Shares (i) on the date that any Conversion Rights Holder delivers to the Issuer a Conversion Notice in the case of a Voluntary Conversion, (ii) on the date of the Price Event in the case of a Mandatory Conversion, and (iii ) upon Issuer’s written request.

(g)Promissory Note.  In connection with the conversion of any Associated Debt hereunder, to the extent that any such Associated Debt is evidenced by an outstanding promissory note of the Issuer, each converting Conversion Right Holder shall deliver, or cause to be delivered, such promissory note to the Issuer and, if the principal amount of such Associated Debt is less than the principal amount of such promissory note, the Issuer shall upon any Conversion Right Holder’s written request promptly issue to such Conversion Right Holder (or, if such Conversion Right Holder is the permitted assignee of a Lender, to such Lender), a promissory note of like tenor representing the balance of the principal amount not so converted.

(h)Status of Converted Debt.  Notwithstanding any provision in this Agreement to the contrary, upon the effectiveness of the conversion of any Associated Debt pursuant to and in accordance with the provisions of this Section 1.2, such Associated Debt will automatically be deemed to have been paid in full and no longer outstanding.

1.3Issuer Call Right.  

(a)Call Right.  The Issuer will have the right (the “Call Right”), but not the obligation), to repay and retire all (but not less than all) of the Term Loan Advance (including principal (including, without limitation, the PIK Amount) plus accrued and unpaid interest) by paying to Agent, for the account of the Lenders in accordance with their respective Pro Rata Shares, an amount (the “Call Price”) equal to (i) if such Issuer repayment is consummated on or before the date that is eighteen (18) months after the Effective Date, one hundred twenty-five percent (125%) of the outstanding (as of the date of the Call Notice) principal balance (including, without limitation, the PIK Amount) of the Term Loan Advance, or (ii) if such Issuer repayment is consummated after the date that is eighteen (18) months after the Effective Date, one hundred fifty percent (150%) of the outstanding (as of the date of the Call Notice) principal balance (including, without limitation, the PIK Amount) of the Term Loan Advance, in either case together with all accrued and unpaid interest on the principal balance of the Term Loan Advance to the date of repayment.  For the avoidance of doubt, the Issuer’s Call Right shall not apply to any Associated Debt with respect to which a Conversion Right Holder has delivered a Conversion Notice, other than any such Associated Debt in excess of the limits described in Section 1.2(f).

(b)Exercise and Payment.  The Issuer shall exercise the Call Right (if at all) by written notice to the Agent (the “Call Notice”), which Call Notice shall specify a date (the “Call Closing”), not more than thirty (30) days from the date of such Call Notice, on which the Issuer shall pay the Call Price to the Agent.   At the Call Closing, the Issuer shall pay the Call Price in a single installment by wire transfer of immediately available funds to an account designated in writing by the Agent.  The Call Notice may be revoked in writing by the Issuer within forty-eight (48) hours following delivery thereof to the Agent.

(c)Look-Back.  Notwithstanding the foregoing definition of Call Price, if (i) the Issuer exercises its Call Right, and (ii) on or before the end of the Lookback Period, the Issuer shall enter or shall have entered into an agreement, commitment, letter of intent, memorandum of understanding or the like, binding or non-binding, with a third party respecting an Acquisition and such Acquisition is subsequently consummated, if the aggregate gross proceeds that would be payable to all Conversion Right Holders in connection with such Acquisition had (A) the Issuer not so exercised such Call Right, and (B) all Conversion Right Holders exercised, in connection with such Acquisition and as of immediately prior to the consummation thereof, their respective Conversion Rights as to all Associated Debt outstanding as of immediately prior to the Issuer’s exercise of such Call Right, then the Issuer shall pay or cause to be paid to Agent, for the account of the Lenders in accordance with their respective Pro Rata Shares, as additional Call Price, the difference between (x) such proceeds as would have been payable to all Conversion Right Holders in connection with such Acquisition, and (y) such Call Price actually paid to the Agent by the Issuer; and such payment of such difference shall be made to Agent as and when payments of the consideration in such Acquisition are made to the holders of outstanding Common Stock.

 

 
3

1.4Payment of Interest on the Credit Extensions.

(a)Interest Payments.  Interest on the principal amount of the Term Loan Advance is payable as set forth on Schedule I hereto.

(b)Interest Rate.

(i)Term Loan Advance.  Subject to Section 1.5(c), the outstanding principal amount of the Term Loan Advance shall accrue interest as set forth on Schedule I hereto.

(ii)All-In Rate.  Notwithstanding any terms in this Agreement to the contrary, if at any time the interest rate applicable to any Obligations is less than zero percent (0.0%), such interest rate shall be deemed to be zero percent (0.0%) for all purposes of this Agreement.

(c)Default Rate.  Immediately upon the occurrence and during the continuance of an Event of Default, the outstanding Obligations shall bear interest at a rate per annum which is three percent (3.0%) above the rate that is otherwise applicable thereto (the “Default Rate”).  Fees and expenses which are required to be paid by Borrower pursuant to the Loan Documents (including, without limitation, Lenders’ Expenses) but are not paid when due shall bear interest until paid at a rate equal to the highest rate applicable to the Obligations.  Payment or acceptance of the increased interest rate provided in this Section 1.5(c) 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 Agent or any Lender.

(d)Adjustment to Interest Rate.  Each change in the interest rate applicable to any amounts payable under the Loan Documents based on changes to the Prime Rate shall be effective on the effective date of any change to the Prime Rate and to the extent of such change. 

(e)Interest Computation.  Interest shall be computed as set forth on Schedule I hereto.  In computing interest, the date of the making of any Credit Extension shall be included and the date of payment shall be excluded; provided, however, that if any Credit Extension is repaid on the same day on which it is made, such day shall be included in computing interest on such Credit Extension.  

1.5Fees.  Borrower shall pay to Agent:

(a)Lenders’ Expenses.  All Lenders’ Expenses incurred through and after the Effective Date, when due (or, if no stated due date, upon demand by Agent).

Unless otherwise provided in this Agreement or in a separate writing by Agent, Borrower shall not be entitled to any credit, rebate, or repayment of any fees earned by Agent or any Lender pursuant to this Agreement notwithstanding any termination of this Agreement or the suspension or termination of any Lender’s obligation to make loans and advances hereunder.  Agent may deduct amounts owing by Borrower under the clauses of this Section 1.6 pursuant to the terms of Section 1.7(c).  Agent shall provide Borrower written notice of deductions made pursuant to the terms of the clauses of this Section 1.6.

1.6Payments; Pro Rata Treatment; Application of Payments; Debit of Accounts.  

(a)All payments (including prepayments) to be made by Borrower under any Loan Document shall be made to Agent for the account of Lenders, in immediately available funds in Dollars, without setoff, counterclaim, or deduction before 12:00 p.m. Pacific time on the date when due.   Agent shall distribute such payments to Lenders in like funds as set forth in Section 1.6.  Payments of principal and/or interest received after 12:00 p.m. Pacific time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment shall be due the next Business Day, and additional fees or interest, as applicable, shall continue to accrue until paid.

 

 
4

(b)If Agent receives any payment for the account of Lenders on or prior to 12:00 p.m. Pacific time on any Business Day, Agent shall pay to each applicable Lender such Lender’s Pro Rata Share of such payment on such Business Day. If Agent receives any payment for the account of Lenders after 12:00 p.m. Pacific time on any Business Day, Agent shall pay to each applicable Lender such Lender’s Pro Rata Share of such payment on the next Business Day.

(c)Except as otherwise provided herein, each payment (including each prepayment) by Borrower on account of principal or interest on each such Credit Extension shall be applied according to each Lender’s Pro Rata Share of the outstanding principal amount of the Credit Extensions.  The amount of each principal prepayment of the Credit Extensions shall be applied to reduce the then remaining installments of the Credit Extensions based upon each Pro Rata Share of such Credit Extension.

(d)Agent has the exclusive right to determine the order and manner in which all payments with respect to the Obligations may be applied.  Borrower shall have no right to specify the order or the accounts to which Agent shall allocate or apply any payments required to be made by Borrower to Agent or otherwise received by Agent or any Lender under this Agreement when any such allocation or application is not specified elsewhere in this Agreement.

(e)Agent may debit any of Borrower’s deposit accounts, including the Designated Deposit Account, for principal (including the PIK Amount) and interest payments or any other amounts Borrower owes Agent or any Lender when due under the Loan Documents. These debits shall not constitute a set-off.

(f)Unless Agent shall have been notified in writing by Borrower prior to the date of any payment due to be made by Borrower hereunder that Borrower will not make such payment to Agent, Agent may assume that Borrower is making such payment, and Agent may, but shall not be required to, in reliance upon such assumption, make available to Lenders their respective Pro Rata Share of a corresponding payment amount.  If such payment is not made to Agent by Borrower within three (3) Business Days after such due date, Agent shall be entitled to recover, on demand, from each Lender to which any amount which was made available pursuant to the preceding sentence, such amount with interest thereon at the rate per annum equal to the daily average Federal Funds Effective Rate.  Nothing herein shall be deemed to limit the rights of Agent or any Lender against Borrower.

 

(g)The obligations of Lenders hereunder to make Credit Extensions and to make payments pursuant to Section 9.9 are several and not joint. The failure of any Lender to make any Credit Extension or make any such payment on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to make any Credit Extension or make any such payment under Section 9.9.

 

(h)If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Credit Extensions resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Credit Extensions, as the case may be, and 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 Credit Extensions 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 Credit Extensions; 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 paragraph shall not be construed to apply to any payment made by 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 Commitments to any assignee or participant, other than to Borrower.  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 Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of Borrower in the amount of such participation.

 

1.7Change in Circumstances.

 

 
5

(a)Increased Costs.  If any Change in Law shall: (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or advances, loans or other credit extended or participated in by, any Lender, (ii) subject any Lender or Agent 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, commitment, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto, or (iii) impose on any Lender any other condition, cost or expense (other than Taxes) affecting this Agreement or Credit Extensions made by such Lender, and the result of any of the foregoing shall be to increase the cost to such Lender or Agent, as applicable, of making, converting to, continuing or maintaining any Credit Extension (or of maintaining its obligation to make any such Credit Extension), or to reduce the amount of any sum received or receivable by such Lender or Agent, as applicable, hereunder (whether of principal, interest or any other amount) then, upon written request of such Lender or Agent, as applicable, Borrower shall promptly pay to Agent or such Lender, as applicable, such additional amount or amounts as will compensate such Lender or Agent, as applicable, for such additional costs incurred or reduction suffered.

(b)Capital Requirements.  If any Lender determines that any Change in Law affecting such Lender or any lending of such Lender or such Lender’s holding company regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such ’Lender’s capital as a consequence of this Agreement, any term loan facility, or the Credit Extensions made by such Lender to a level below that which such Lender could have achieved but for such Change in Law (taking into consideration such Lender’s or its holding company’s policies with respect to capital adequacy and liquidity), then from time to time upon written request of such Lender, Borrower shall promptly pay to such Lender or such Lender’s holding company such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.

(c)Certificates for Reimbursement. A certificate of a Lender or Agent setting forth the amount or amounts necessary to compensate such Lender or Agent or its holding company, as applicable, as specified in paragraph (a) or (b) of this Section and delivered to Borrower, shall be conclusive manifest error. Borrower shall pay such Lender or Agent, as applicable, the amount shown as due on any such certificate within ten (10) days after receipt thereof.

(d)Delay in Requests.  Failure or delay on the part of any Lender to demand compensation pursuant to this Section 1.7 shall not constitute a waiver of such Lender’s right to demand such compensation; provided that Borrower shall not be required to compensate such Lender pursuant to subsection (a) for any increased costs incurred or reductions suffered more than nine (9) months prior to the date that such Lender notifies Borrower of the Change in Law giving rise to such increased costs or reductions (except that if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine (9) month period shall be extended to include the period of retroactive effect).

1.8Taxes.  

(a)Payments Free of Taxes.  Any and all payments by or on account of any obligation of Borrower under any Loan Document shall be made 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 Borrower) requires the deduction or withholding of any Tax from any such payment by Borrower, then (i) Borrower shall be entitled to make such deduction or withholding, (ii) Borrower shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Law, and (iii) if such Tax is an Indemnified Tax, the sum payable by Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 1.8) each affected Lender or Agent, as applicable, receive an amount equal to the sum it would have received had no such deduction or withholding been made.

(b)Payment of Other Taxes by Borrower.  Without limiting the provisions of subsection (a) above, Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with Applicable Law.

 

 
6

(c)Tax Indemnification.  Without limiting the provisions of subsections (a) and (b) above, Borrower shall, and does hereby, indemnify Agent and each Lender, within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 1.8) payable or paid by the Lenders or Agent or required to be withheld or deducted from a payment to Lenders or Agent 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 as to the amount of such payment or liability delivered to Borrower by a Lender (with a copy to Agent) or by Agent on its own behalf or on behalf of a Lender shall be conclusive absent manifest error.

(d)Evidence of Payments.  As soon as practicable after any payment of Taxes by Borrower to a Governmental Authority pursuant to this Section 1.8, Borrower shall deliver to Agent 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 Agent.

(e)Status of Lenders.  If any Lender (including any assignee or successor) is entitled to an exemption from or reduction of withholding tax with respect to payments made under any Loan Document, it shall deliver to Borrower and Agent, at the time or times reasonably requested by Borrower or Agent, such properly completed and executed documentation reasonably requested by Borrower 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 Borrower or Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by Borrower or Agent as will enable Borrower or Lender to determine whether or not such Lender is subject to backup withholding or information reporting requirements.  Without limiting the generality of the foregoing, each Lender shall deliver to Borrower and Agent whichever of IRS Form W-9, IRS Form W-8BEN-E, IRS Form W-8ECI or W-8IMY is applicable, as well as any applicable supporting documentation or certifications.

1.9Settlement Procedures.  If Agent receives any payment for the account of Lenders on or prior to 12:00 p.m. (Pacific time) on any Business Day, Agent shall pay to each applicable Lender such Lender’s Pro Rata Share of such payment on such Business Day. If Agent receives any payment for the account of Lenders after 12:00 p.m. (Pacific time) on any Business Day, Agent shall pay to each applicable Lender such Lender’s Pro Rata Share of such payment on the next Business Day.  

1.10Procedures for Borrowing.  

(a)Subject to the prior satisfaction of all other applicable conditions to the making of a Credit Extension set forth in this Agreement (which must be satisfied no later than 12:00 p.m. Pacific time on the applicable Funding Date), to obtain such Credit Extension, Borrower shall notify Agent (which notice shall be irrevocable) by 12:00 p.m. Pacific time at least five (5) Business Days prior to the proposed Funding Date of such Credit Extension. Such notice shall be made by electronic mail or by telephone and, together with any such notification, Borrower shall deliver to Agent by electronic mail a completed Disbursement Letter (and Payment/Advance Form) executed by an Authorized Signer and such other reports and information as Agent may reasonably request.  Agent may rely on any telephone notice given by a person whom Agent believes is an Authorized Signer.  Borrower will indemnify Agent for any loss Agent suffers due to such belief or reliance. Agent shall have received satisfactory evidence that the Board has approved that such Authorized Signer may provide such notices and request such Credit Extension (which requirement may be deemed satisfied by the prior delivery of Borrowing Resolutions or a secretary’s certificate that certifies as to such Board approval).

(b)In determining compliance with any condition hereunder to the making of a Credit Extension that, by its terms, must be fulfilled to the satisfaction of a Lender, Agent may presume that such condition is satisfactory to such Lender unless Agent shall have received notice to the contrary from such Lender prior to the making of such Credit Extension.  Unless Agent shall have been notified in writing by any Lender prior to the date of any Credit Extension, that such Lender will not make the amount that would constitute its share of such borrowing available to Agent, Agent may assume that such Lender is making such amount available to Agent, and Agent may, in reliance upon such assumption, make available to Borrower a corresponding amount.  If such amount is not made available to Agent by the required time on the Funding Date therefor, such Lender shall pay to Agent, on demand, such amount with interest thereon, at a rate equal to the greater of (i) the Federal Funds Effective Rate or (ii) a rate determined by Agent in accordance with banking industry rules on interbank compensation, for the period until such 

 

 
7

Lender makes such amount immediately available to Agent.  If such Lender’s share of such Credit Extension is not made available to Agent by such Lender within three (3) Business Days after such Funding Date, Agent shall also be entitled to recover such amount with interest thereon at the rate per annum applicable to such Credit Extension, on demand, from Borrower.

(c)Agent shall credit proceeds of a Credit Extension to the Designated Deposit Account. Agent may make Credit Extensions under this Agreement based on instructions from an Authorized Signer or without instructions if the Credit Extensions are necessary to meet Obligations which have become due.

1.11No Hedging. Each Lender hereby agrees that neither it, nor any person or entity acting on its behalf or pursuant to any understanding with it, shall execute any short sales (as such term is defined in Regulation SHO under the Exchange Act, 17 CFR 242.200) or engage in other hedging transactions of any kind with respect to the Common Stock or any other equity interests of the Issuer from the date of this Agreement through the earlier of (i) the date the Term Loan Advance (including, without limitation, the PIK Amount) and all accrued and unpaid interest thereon is repaid pursuant to Section 1.1.1 and (ii) the date the Term Loan Advance (including, without limitation, the PIK Amount) and all accrued and unpaid interest thereon is converted into Conversion Shares pursuant to Section 1.2.

2CONDITIONS OF CREDIT EXTENSIONS

2.1Conditions Precedent to Initial Credit Extension.  Each Lender’s obligation to make the initial Credit Extension hereunder is subject to the condition precedent that Agent shall have received, in form and substance satisfactory to Agent and the Lenders, such documents, and completion of such other matters, as Agent may have reasonably requested, including, without limitation:

(a)duly executed Loan Documents;

(b) (i) the Operating Documents of Borrower, (ii) a long-form good standing certificate certified by the Secretary of State of the State of Delaware, and (iii) a good standing certificate from the Secretary of State of each of Illinois and Washington, in each case as of a date no earlier than 30 days prior to the Effective Date;

(c)certificate duly executed by a Responsible Officer or secretary of Borrower with respect to Borrower’s (i) Operating Documents, (ii) Borrowing Resolutions and (iii) incumbency certificate;

(d)certified copies, dated as of a recent date, of searches for financing statement searches, accompanied by written evidence that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will be terminated or released;

(e)duly executed Perfection Certificate of Borrower; and

(f)payment of the fees and Lenders’ Expenses then due as specified in Section 1.5 hereof.

2.2Conditions Precedent to all Credit Extensions.  Each Lender’s obligation to make each Credit Extension, including the initial Credit Extension, is subject to the following conditions precedent:

(a)timely receipt by the Lenders of (i) an executed Disbursement Letter and (ii) an executed Payment/Advance Form and any materials and documents required by Section 1.11;  

(b)the representations and warranties in this Agreement shall be true and correct in all material respects on the date of the Disbursement Letter (and the Payment/Advance Form) and on the Funding Date of each Credit Extension taking into account updates thereof subsequent to the Effective Date to the extent permitted by notice to the Bank by one or more specific provisions of this Agreement; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date or time period shall be true and correct in all material respects as of such date or time period, and no Default or Event of Default shall have occurred and be continuing or result from the Credit Extension.  Each Credit Extension is 

 

 
8

Borrower’s representation and warranty on that date that the representations and warranties in this Agreement remain true and correct in all material respects, taking into account updates thereof subsequent to the Effective Date to the extent permitted by notice to the Bank by one or more specific provisions of this Agreement; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date or time period shall be true and correct in all material respects as of such date or time period; and

(c)a Material Adverse Change shall not have occurred and be continuing.

2.3Covenant to Deliver.  Borrower shall deliver to Agent and each Lender each item required to be delivered to Agent and each Lender under this Agreement as a condition precedent to any Credit Extension. A Credit Extension made prior to the receipt by Agent and each Lender of any such item shall not constitute a waiver by Agent or Lenders of Borrower’s obligation to deliver such item, and the making of any Credit Extension in the absence of a required item shall be in each Lender’s sole discretion.

3CREATION OF SECURITY INTEREST

3.1Grant of Security Interest.  

(a)Borrower hereby grants Agent, for the ratable benefit of the Lenders, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Agent, for the ratable benefit of the Lenders, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof.  For clarity, any reference to “Agent’s Lien” or any granting of Collateral to Agent in this Agreement or any Loan Document means the Lien granted to Agent for the ratable benefit of the Lenders.

(b)Borrower acknowledges that it previously has entered, or may in the future enter, into Bank Services Agreements with SVB. Regardless of the terms of any Bank Services Agreement, Borrower agrees that any amounts Borrower owes SVB thereunder shall be deemed to be Obligations hereunder and that it is the intent of Borrower and Bank to have all such Obligations secured by the first priority perfected security interest in the Collateral granted herein (subject to Permitted Liens).

3.2Authorization to File Financing Statements.  Borrower hereby authorizes Agent, on behalf of the Lenders, to file financing statements, without notice to Borrower, with all jurisdictions deemed necessary or appropriate by Agent to perfect or protect Agent’s and Lenders’ interest or rights hereunder, including a notice that any disposition of the Collateral, by Borrower or any other Person, shall be deemed to violate the rights of Agent under the Code, as applicable.  Such financing statements may indicate the Collateral as “all assets of the Debtor” or words of similar effect.

3.3Termination.  If this Agreement is terminated, Agent’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity or other obligations which, by their terms, survive termination of this Agreement) are repaid in full in cash.  Upon payment in full in cash of the Obligations (other than inchoate indemnity or other obligations which, by their terms, survive termination of this Agreement) and at such time as Lenders’ obligation to make Credit Extensions has terminated, Agent shall, at Borrower’s sole cost and expense, terminate its security interest in the Collateral and all rights therein shall revert to Borrower and Agent shall take such actions as may be reasonably requested by Borrower to evidence such repayment and release (including delivery of a payoff letter and filing of UCC-3 termination statements (or authorizing Borrower to file such UCC-3 termination statements)) and all of Borrower’s obligations pursuant to Sections 5 and 6 herein shall terminate.  In the event (a) all Obligations (other than inchoate indemnity obligations or other obligations which, by their terms, survive termination of this Agreement), except for Bank Services, are satisfied in full, and (b) this Agreement is terminated, Bank shall terminate the security interest granted herein upon Borrower providing cash collateral acceptable to Bank in its commercially reasonable discretion for Bank Services, if any.  In the event such Bank Services consist of outstanding Letters of Credit, Borrower shall provide to Agent, cash collateral in an amount equal to at least (x) 105.0% of the face amount of all such Letters of Credit denominated in Dollars and (y) 110.0% of the Dollar Equivalent of the face amount of all such Letters of Credit denominated in a Foreign Currency, plus, in each case, all interest, fees, and costs 

 

 
9

due or estimated by Agent to become due in connection therewith, to secure all of the Obligations relating to such  Letters of Credit.

4REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants as follows: 

4.1Due Organization, Authorization; Power and Authority.  

(a)Borrower and each of its Subsidiaries are each duly existing and in good standing as a Registered Organization in their respective jurisdiction of formation and are qualified and licensed to do business and is in good standing in any jurisdiction in which the conduct of their respective business or their ownership of property requires that they be qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business or operations.  

(b)All information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is true and correct in all material respects (it being understood and agreed that Borrower may from time to time update certain information in the Perfection Certificate after the Effective Date to the extent permitted by one or more specific provisions in this Agreement and the Perfection Certificate shall be deemed to be updated to the extent such notice is provided to Agent of such permitted update).  

(c)The execution, delivery and performance by Borrower and each of its Subsidiaries of the Loan Documents to which it is a party have been duly authorized, and do not (i) conflict with any of Borrower’s or any such Subsidiary’s organizational documents, (ii) contravene, conflict with, constitute a default under or violate any material Applicable Law, (iii) contravene, conflict with or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of their property or assets may be bound or affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect), or (v) conflict with, contravene, constitute a default or breach under, or result in or permit the termination or acceleration of, any material agreement by which Borrower or any of its Subsidiaries is bound.  Neither Borrower nor any of its Subsidiaries are in default under any agreement to which it is a party or by which it is bound in which the default could reasonably be expected to have a material adverse effect on Borrower’s or any of its Subsidiary’s business or operations.  

4.2Collateral.  

(a)The security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral (subject to Permitted Liens).  Borrower has good title to, rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens.  

(b)Borrower has no Collateral Accounts at or with any bank or financial institution other than SVB or SVB’s Affiliates except for the Collateral Accounts described in the Perfection Certificate delivered to Agent and each Lender in connection herewith and which Borrower has given Agent notice and taken such actions as are necessary to give Agent, for the ratable benefit of the Lenders, a perfected security interest therein, pursuant to the terms of Section 5.7.  The Accounts are bona fide, existing obligations of the Account Debtors.  

(c)The Collateral is not in the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate or as permitted pursuant to Section 6.2.  None of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as permitted pursuant to Section 6.2.

(d)All Inventory is in all material respects of good and marketable quality, free from material defects.

 

 
10

(e)Borrower owns, or possesses the right to use to the extent necessary in its business, all Intellectual Property, licenses and other intangible assets that are used in the conduct of its business as now operated, except to the extent that such failure to own or possess the right to use such asset would not reasonably be expected to have a material adverse effect on Borrower’s business or operations, and no such asset, to the knowledge of Borrower, conflicts with the valid Intellectual Property, license, or intangible asset of any other Person to the extent that such conflict could reasonably be expected to have a material adverse effect on Borrower’s business or operations.

(f)Except as noted on the Perfection Certificate or for which notice has been given to Agent pursuant to and in accordance with Section 5.8(b), Borrower is not a party to, nor is it bound by, any Restricted License.

4.3Litigation.  Other than as set forth in the Perfection Certificate or as disclosed to Agent pursuant to Section 5.3(j), there are no actions, investigations or proceedings pending or, to the knowledge of any Responsible Officer, threatened in writing by or against Borrower or any of its Subsidiaries involving more than, individually or in the aggregate, $250,000.00 not covered by independent third party insurance as to which liability has been accepted by the carrier providing such insurance.

4.4Financial Statements; Financial Condition.  All consolidated financial statements for Borrower and any of its Subsidiaries delivered to Agent and the Lenders by submission to the Financial Statement Repository or otherwise submitted to Agent and the Lenders fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations for the periods covered thereby, subject, in the case of unaudited financial statements, to normal year-end adjustments and the absence of footnote disclosures.  There has not been any material deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to the Financial Statement Repository or otherwise submitted to Agent and the Lenders.

4.5Solvency.  The fair salable value of Borrower’s consolidated assets (including goodwill minus disposition costs) exceeds the fair value of Borrower’s liabilities; Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower, individually, and Borrower and its Subsidiaries on a consolidated basis, are able to pay their debts (including trade debts) as they mature.

4.6Regulatory Compliance.  Borrower is not an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act of 1940, as amended.  Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors).  Borrower and each of its Subsidiaries (a) have complied in all material respects with all Applicable Law, and (b) have not violated any Applicable Law the violation of which could reasonably be expected to have a material adverse effect on Borrower’s business or operations.  Borrower and each of its Subsidiaries have duly complied with, and their respective facilities, business, assets, property, leaseholds, real property and Equipment are in compliance with, Environmental Laws, except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business or operations; there have been no outstanding citations, notices or orders of non-compliance issued to Borrower or any of its Subsidiaries or relating to their respective facilities, businesses, assets, property, leaseholds, real property or Equipment under such Environmental Laws.  Borrower and each of its Subsidiaries have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all Governmental Authorities that are necessary to continue their respective businesses as currently conducted, except where the failure to obtain or make or file the same would not reasonably be expected to have a material adverse effect on Borrower’s business or operations.

4.7Subsidiaries; Investments.  Borrower does not own any stock, partnership, or other ownership interest or other equity securities except for Permitted Investments.  

4.8Tax Returns and Payments; Pension Contributions.  

(a)Borrower and each of its Subsidiaries have timely filed, or submitted extensions for, all required tax returns and reports, and Borrower and each of its Subsidiaries have timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower and each of its Subsidiaries except (a) to the extent such taxes are being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, so long as such reserve or other appropriate provision, if any, as shall be required in conformity with GAAP 

 

 
11

shall have been made therefor, or (b) if such taxes, assessments, deposits and contributions do not, individually or in the aggregate, exceed $25,000.00.  Borrower is unaware of any claims or adjustments proposed for any of Borrower’s or any of its Subsidiary’s prior tax years which could result in additional taxes becoming due and payable by Borrower or any of its Subsidiaries in excess of $25,000.00 in the aggregate.  

(b)Borrower and each of its Subsidiaries have paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and neither Borrower nor any of its Subsidiaries has withdrawn from participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower or any of its Subsidiaries, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other Governmental Authority.

4.9Full Disclosure.  No written representation, warranty or other statement of Borrower or any of its Subsidiaries in any report, certificate or written statement submitted to the Financial Statement Repository or otherwise submitted to Agent or any Lender, as of the date such representation, warranty, or other statement was made, taken together with all such reports, certificates and written statements submitted to the Financial Statement Repository or otherwise submitted to Agent or any Lender, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the reports, certificates or written statements not misleading in light of the circumstances under which they were made (it being recognized by Agent and each Lender that the projections and forecasts provided by Borrower or any of its Subsidiaries in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results).

4.10Sanctions.  Neither Borrower nor any of its Subsidiaries is: (a) in violation of any Sanctions; or (b) a Sanctioned Person.  Neither Borrower nor any of its Subsidiaries, directors, or officers, or, to the knowledge of Borrower, any of its employees, agents or Affiliates: (i) conducts any business or engages in any transaction or dealing with any Sanctioned Person, including making or receiving any contribution of funds, goods or services to or for the benefit of any Sanctioned Person; (ii) deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to any Sanctions; (iii) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Sanctions; or (iv) otherwise engages in any transaction that could cause Agent or any Lender to violate any Sanctions.

4.11Healthcare Permits.  (a) Borrower and each of its Subsidiaries have obtained all Healthcare Permits and other rights from, and have made all declarations and filings with, all applicable Governmental Authorities, all self-regulatory authorities and all courts and other tribunals necessary to engage in the management and/or operation of their respective businesses; (b) each such Healthcare Permit is valid and in full force and effect, and Borrower and each of its Subsidiaries are in compliance with the terms and conditions of all such Healthcare Permits; and (c) neither Borrower nor any of its Subsidiaries has received notice from any Governmental Authority with respect to the revocation, suspension, restriction, limitation or termination of any Healthcare Permit nor, to the knowledge of Borrower or any of its Subsidiaries, is any such action proposed or threatened in writing. 

4.12Compliance with Healthcare Laws.

(a)Borrower is in compliance with all applicable Healthcare Laws.  Without limiting the generality of the foregoing, Borrower has not received written notice by a governmental authority of any violation (or of any investigation, audit, or other proceeding involving allegations of any violation) of any Healthcare Laws, and no investigation, inspection, audit or other proceeding involving allegations of any violation is, to the knowledge of Borrower, threatened in writing or contemplated.

(b)To the knowledge of Borrower, Borrower is not in default or violation of any law which is applicable to Borrower or its respective assets or the conduct of its respective businesses and Borrower has not been debarred or excluded from participation under a state or federal health care program, including any state or federal workers compensation program.

 

 
12

(c)Borrower is not a party to any corporate integrity agreements, deferred prosecution agreements, monitoring agreements, consent decrees, settlement orders or similar agreements with or imposed by any Governmental Authority.

5AFFIRMATIVE COVENANTS

Borrower shall do all of the following:

5.1Use of Proceeds.  Cause the proceeds of the Credit Extensions to be used solely (a) as working capital or (b) to fund its general business purposes (including, without limitation, sourcing drug components), and not for personal, family, household or agricultural purposes (which does not include the sourcing of drug components).

5.2Government Compliance.  

(a)Maintain its and all of its Subsidiaries’ legal existence (except as permitted under Section 6.3 with respect to Subsidiaries only) and good standing in their respective jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower’s business or operations.  Borrower shall comply, and have each Subsidiary comply, in all material respects, with all laws, ordinances and regulations to which it is subject.

(b)Obtain all of the Governmental Approvals necessary for the performance by Borrower and each of its Subsidiaries of their obligations under the Loan Documents to which it is a party, including any grant of a security interest to Agent, for the ratable benefit of the Lenders.  Borrower shall promptly provide copies of any such obtained Governmental Approvals to Agent.

(c)Cause the operations and property of Borrower, each of its Subsidiaries to comply with all applicable Healthcare Laws.  Without limiting the foregoing, the operations and property of Borrower and each of its Subsidiaries shall comply with HIPAA in all material respects.  Borrower established and maintains a corporate compliance program that (i) addresses the material Requirements of Law, including all applicable Healthcare Laws, of Governmental Authorities having jurisdiction over its business and operations, and (ii) has been structured to account for the guidance issued by the U.S. Department of Health and Human Services regarding characteristics of effective corporate compliance programs.  As of the Effective Date, Borrower has delivered to Bank an accurate and complete copy of each material report, study, survey or other document of which Borrower has knowledge that addresses or otherwise relates to the compliance by Borrower and each of its Subsidiaries, with applicable Healthcare Laws.

5.3Financial Statements, Reports.  Deliver to Agent by submitting to the Financial Statement Repository, for Agent’s distribution to each Lender:

(a)Monthly Financial Statements.  As soon as available, but no later than 30 days after the last day of each month (except the months ending March 31, June 30, September 30, and December 31), a company prepared consolidated balance sheet and income statement covering Borrower’s consolidated operations for such month in a form reasonably acceptable to Agent;

(b)Monthly Compliance Statement.  Within 30 days after the last day of each month (except the months ending March 31, June 30, September 30, and December 31) and together with the statements set forth in Section 5.3(a), a duly completed Compliance Statement, confirming that as of the end of such month, Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing compliance with the financial covenants (if any) set forth in this Agreement and such other information as Agent or the Lenders may reasonably request; 

(c)Quarterly Compliance Statement.  Within 45 days after the last day of each fiscal quarter (except within 90 days following the end of each fiscal quarter ending December 31) and together with the statements set forth in Section 5.3(d), a duly completed Compliance Statement, confirming that, as of the end of such fiscal quarter, Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth 

 

 
13

calculations showing compliance with the financial covenants (if any) set forth in this Agreement, and such other information as Agent or the Lenders may reasonably request;

(d)10-Q Reports.  Within 45 days after the end of the first three fiscal quarters of Borrower, a company prepared consolidated balance sheet and income statement covering Borrower’s consolidated operations for such quarter, consistent with such quarterly financial statements submitted to the SEC, in a form acceptable to Bank;

(e)10-K Reports and Annual Audited Financial Statements.  As soon as available, and in any event within 90 days following the end of Borrower’s fiscal year, Borrower’s 10-K report, together with audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm reasonably acceptable to Bank

(f)Annual Operating Budget and Financial Projections.  Within 30 days after the last day of each fiscal year of Borrower, and contemporaneously with any updates or amendments thereto, (A) annual operating budgets (including income statements, balance sheets and cash flow statements, by month) for the current fiscal year of Borrower, and (B) annual financial projections for the current fiscal year (on a quarterly basis), in each case as approved by the Board, together with any related business forecasts used in the preparation of such annual financial projections;

(g)SEC Filings.  In the event that Borrower or any of its Subsidiaries becomes subject to the reporting requirements under the Exchange Act within ten (10) days of filing, notification of the filing and copies of all periodic and other reports, proxy statements and other materials filed by Borrower and/or any of its Subsidiaries or any Guarantor with the SEC, any Governmental Authority succeeding to any or all of the functions of the SEC or with any national securities exchange, or distributed to its shareholders, as the case may be.  Documents required to be delivered pursuant to the terms hereof (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which Borrower or any of its Subsidiaries posts such documents, or provides a link thereto, on Borrower’s or any of its Subsidiaries’ website on the internet at Borrower’s or any of its Subsidiaries’ website address; provided, however, Borrower shall promptly notify Agent and the Lenders in writing (which may be by electronic mail) of the posting of any such documents;

(h)Security Holder and Subordinated Debt Holder Reports.  Within ten (10) days of delivery, copies of all statements, reports and notices made available to Borrower’s security holders or to any holders of Subordinated Debt (solely in their capacities as security holders or holders of Subordinated Debt and not in any other role);

(i)Beneficial Ownership Information.  Prompt written notice of any changes to the beneficial ownership information set out in Section 14 of the Perfection Certificate.  Borrower understands and acknowledges that Agent and Lenders rely on such true, accurate and up-to-date beneficial ownership information to meet each Lender’s regulatory obligations to obtain, verify and record information about the beneficial owners of its legal entity customers;

(j)Legal Action Notice.  Prompt written notice of any legal actions, investigations or proceedings pending or threatened in writing against Borrower or any of its Subsidiaries that could reasonably be expected to result in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, $250,000.00 or more; 

(k)Tort Claim Notice.  If Borrower shall acquire a commercial tort claim with a value in excess of $250,000.00, Borrower shall promptly notify Agent in a writing signed by Borrower of the general details thereof and grant to Agent, for the ratable benefit of the Lenders, in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Agent;

(l)Government Filings.  Within ten (10) days after the same are sent or received, copies of all correspondence, reports, documents and other filings by Borrower or any of its Subsidiaries with any Governmental 

 

 
14

Authority regarding compliance with or maintenance of Governmental Approvals or Applicable Law or that could reasonably be expected to have a material effect on any of the Governmental Approvals or otherwise on the business of Borrower or any of its Subsidiaries; 

(m)Registered Organization.  If Borrower is not a Registered Organization as of the Effective Date but later becomes one, promptly notify Agent of such occurrence and provide Agent with Borrower’s organizational identification number; 

(n)Default.  Prompt written notice of the occurrence of a Default or Event of Default; and

(o)Other Information.  Promptly, from time to time, such other information regarding Borrower or any of its Subsidiaries or compliance with the terms of any Loan Documents as reasonably requested by Agent or any Lender.

Any submission by Borrower of a Compliance Statement or any other financial statement submitted to the Financial Statement Repository pursuant to this Section 5.3 or otherwise submitted to Agent and the Lenders shall be deemed to be a representation by Borrower that (i) as of the date of such Compliance Statement or other financial statement, the information and calculations set forth therein are true and correct, (ii) as of the end of the compliance period set forth in such submission, Borrower is in complete compliance with all required covenants except as noted in such Compliance Statement or other financial statement, as applicable, (iii) as of the date of such submission, no Events of Default have occurred or are continuing, (iv) all representations and warranties other than any representations or warranties that are made as of a specific date in Section 4 remain true and correct in all material respects as of the date of such submission except as noted in such Compliance Statement or other financial statement, as applicable, (v) as of the date of such submission, Borrower and each of its Subsidiaries has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 4.8, and (vi) as of the date of such submission, no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Agent and the Lenders.

5.4Taxes; Pensions.  

(a)Timely file, and require each of its Subsidiaries to timely file (in each case, unless subject to a valid extension), all required tax returns and reports and timely pay, and require each of its Subsidiaries to timely pay, all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower and each of its Subsidiaries in excess of $25,000.00, except for deferred payment of any taxes contested pursuant to the terms of Section 4.8(a) hereof, and shall deliver to Agent, on demand, appropriate certificates attesting to such payments, and pay, and require each of its Subsidiaries to pay, all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms.

(b)To the extent Borrower or any of its Subsidiaries defers payment of any contested taxes, (i) notify Agent in writing of the commencement of, and any material development in, the proceedings, and (ii) post bonds or take any other steps required to prevent the Governmental Authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien.”    

5.5Access to Collateral; Books and Records.  At reasonable times, on three (3) Business Day’s notice (provided no notice is required if an Event of Default has occurred and is continuing), Agent, or its agents, shall have the right to inspect the Collateral and the right to audit and copy Borrower’s Books.  Such inspections and audits shall be conducted no more often than once every twelve (12) months unless an Event of Default has occurred and is continuing in which case such inspections and audits shall occur as often as Agent shall determine is necessary. The foregoing inspections and audits shall be conducted at Borrower’s expense and the charge therefor shall be $1,000.00 per person per day (or such higher amount as shall represent Agent’s then-current standard charge for the same), plus out-of-pocket expenses.  In the event Borrower and Agent schedule an audit more than eight (8) days in advance, and Borrower cancels or reschedules the audit with less than eight (8) days written notice to Agent, then (without limiting any of Agent’s or any Lender’s rights or remedies) Borrower shall pay Agent a fee of $2,000.00 plus any out-of-

 

 
15

pocket expenses incurred by Agent to compensate Agent for the anticipated costs and expenses of the cancellation or rescheduling.  

5.6Insurance.  

(a)Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry and location and as Agent may reasonably request.  Insurance policies shall be in a form, with financially sound and reputable insurance companies that are not Affiliates of Borrower, and in amounts that are reasonably satisfactory to Agent.

(b)All property policies shall have a lender’s loss payable endorsement showing Agent as lender loss payee.  All liability policies shall show, or have endorsements showing, Agent as an additional insured.  Agent shall be named as lender loss payee and/or additional insured with respect to any such insurance providing coverage in respect of any Collateral. 

(c)Ensure that proceeds payable under any property policy are, at Agent’s option, payable to Agent for the ratable benefit of the Lenders on account of the Obligations.  Notwithstanding the foregoing, (a) so long as no Event of Default has occurred and is continuing, Borrower shall have the option of applying the proceeds of any casualty policy up to $250,000.00 in the aggregate for all losses under all casualty policies in any twelve (12) month period toward the replacement or repair of destroyed or damaged property; provided that any such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Agent, for the ratable benefit of the Lenders, has been granted a first priority security interest (subject to Permitted Liens that are permitted pursuant to the terms of this Agreement to have superior priority over Agent’s, for the ratable benefit of the Lenders, Lien under this Agreement), and (b) after the occurrence and during the continuance of an Event of Default, all proceeds payable under such casualty policy shall, at the option of Bank, be payable to Agent and the Lenders on account of the Obligations.

(d)At Agent’s request, Borrower shall deliver certified copies of insurance policies and evidence of all premium payments.  Each provider of any such insurance required under this Section 5.6 shall agree, by endorsement upon the policy or policies issued by it or by independent instruments furnished to Agent, that it will give Agent 30 days’ (10 days for a cancellation due to nonpayment of premium) prior written notice before any such policy or policies shall be canceled.  If Borrower fails to obtain insurance as required under this Section 5.6 or to pay any amount or furnish any required proof of payment to third persons and Agent, Agent may make all or part of such payment or obtain such insurance policies required in this Section 5.6, and take any action under the policies Agent deems prudent.

5.7Accounts.  

(a)Maintain all of Borrower’s, any of its Subsidiaries’, and any Guarantor’s primary operating accounts, depository accounts and excess cash with SVB or SVB’s Affiliates; provided that, (i) Borrower and its Subsidiaries may maintain accounts in jurisdictions where SVB and SVB’s Affiliates are unable to provide banking services with financial institutions other than SVB and SVB’s Affiliates (collectively, the “Permitted Foreign Accounts”), provided that the maximum aggregate amount maintained in the Permitted Foreign Accounts (for all such accounts together does not exceed $250,000.00 at any time (or such greater amount agreed to by Agent in writing in its sole discretion), and (ii) Borrower’s Subsidiaries shall be permitted to maintain (A) two (2) accounts with Royal Bank of Canada in an aggregate amount not to exceed $500,000.00 (the “Permitted RBC Accounts”) and (B) one (1) account with US Bank in an aggregate amount not to exceed $75,000.00 (the “Permitted US Bank Account”). Notwithstanding the foregoing, so long as Borrower has at least $50,000,000.00 in accounts maintained in the name of Borrower with SVB and SVB’s Affiliates, then Borrower shall be permitted to maintain 50.0% of the Dollar value of Borrower’s, its Subsidiaries’, and any Guarantor’s consolidated cash and Cash Equivalents, in the aggregate in accounts with financial institutions outside of SVB (provided that any accounts in the name of Borrower maintained outside of SVB shall be subject to a Control Agreement in favor of Agent, for the ratable benefit of the Lenders).  SVB may restrict withdrawals or transfers by or on behalf of Borrower that would violate this Section 5.7(a), regardless of whether an Event of Default exists at such time.

 

 
16

(b)In addition to the foregoing, Borrower, any Subsidiary of Borrower and any Guarantor, shall obtain any business credit card (other than the Permitted Credit Cards) and letter of credit exclusively from SVB.

(c)In addition to and without limiting the restrictions in subsection (a), Borrower shall provide Agent five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial institution other than SVB or SVB’s Affiliates. For each Collateral Account that Borrower is permitted to open pursuant to Section 5.7(a) or that Agent in its sole discretion permits Borrower at any time to open or maintain (other than accounts at SVB), Borrower shall cause the applicable bank or financial institution (other than SVB) at or with which any such Collateral Account is opened or maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Agent’s Lien in such Collateral Account in accordance with the terms hereunder, which Control Agreement may not be terminated without the prior written consent of Agent.  The provisions of the previous sentence shall not apply to (i) the Permitted Foreign Accounts, (ii) the Permitted RBC Accounts, (iii) the Permitted US Bank Account or (iv) deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Agent by Borrower as such.

5.8Protection of Intellectual Property Rights.  

(a)(i) Use commercially reasonable efforts to protect, defend and maintain the validity and enforceability of Borrower’s and each Subsidiary’s Intellectual Property, except to the extent that such failure to do so would not reasonably be expected to have a material adverse effect on Borrower’s business or operations; (ii) promptly advise Agent in writing of infringements or any other event that could reasonably be expected to materially and adversely affect the value Borrower’s and each Subsidiary’s Intellectual Property; and (iii) not allow any Intellectual Property material to Borrower’s or any Subsidiary’s business to be abandoned, forfeited or dedicated to the public without Agent’s written consent.

(b)Other than with respect to any Restricted License noted on the Perfection Certificate, provide written notice to Agent within 30 days of entering or becoming bound by any Restricted License (other than over-the-counter software or other similar immaterial licenses that are commercially available to the public).  Borrower shall take such commercially reasonable steps as Agent reasonably requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any such Restricted License to be deemed “Collateral” and for Agent to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such Restricted License, whether now existing or entered into in the future, and (ii) Agent to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance with Agent and the Lender’s rights and remedies under this Agreement and the other Loan Documents.

5.9Litigation Cooperation.  From the date hereof and continuing through the termination of this Agreement, make available to Agent, without expense to Agent or any Lender (and if no Event of Default exists, during normal business hours), Borrower and its officers, employees and agents and Borrower’s books and records, to the extent that Agent and/or the Lenders may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Agent and/or the Lenders with respect to any Collateral or relating to Borrower.

5.10Inventory; Returns.  Keep all Inventory in good and marketable condition, free from material defects.  Returns and allowances between Borrower and its Account Debtors shall follow Borrower’s customary practices as they exist at the Effective Date.  Borrower shall promptly notify Agent and/or the Lenders of all returns, recoveries, disputes and claims that involve more than $100,000.00.

5.11Further Assurances.  Execute any further instruments and take such further action as Agent reasonably requests to perfect, protect, ensure the priority of or continue Agent’s Lien on the Collateral or to effect the purposes of this Agreement.

5.12Sanctions.  (a) Not, and not permit any of its Subsidiaries to, engage in any of the activities described in Section 4.10 in the future; (b) not, and not permit any of its Subsidiaries to, become a Sanctioned Person; (c) ensure that the proceeds of the Obligations are not used to violate any Sanctions; and (d) deliver to Agent any certification or other evidence requested from time to time by Agent in its sole discretion, confirming each such 

 

 
17

Person’s compliance with this Section 5.12.  In addition, have implemented, and will consistently apply while this Agreement is in effect, procedures to ensure that the representations and warranties in Section 4.10 remain true and correct while this Agreement is in effect.

5.13Conversion Shares. The Issuer covenants and agrees that it shall at all times cause to be reserved and kept available out of its authorized and unissued capital such number of Common Shares and other securities as will be sufficient to permit the conversion in full of the Associated Debt contemplated by this Agreement.

5.14Post-Closing Conditions.  Within 45 days after the Effective Date, Borrower deliver to Agent,  evidence satisfactory to Agent that the insurance policies and endorsements required by Section 5.6 hereof are in full force and effect, together with appropriate evidence showing lender loss payable and additional insured clauses or endorsements in favor of Agent.

6NEGATIVE COVENANTS

Borrower shall not do any of the following without the prior written consent of Agent and each Lender in accordance with Section 12.6 hereof:

6.1Dispositions.  Convey, sell, lease, transfer, assign, or otherwise dispose of (including, without limitation, pursuant to a Division) (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn-out, surplus or obsolete Equipment that is, in the reasonable judgment of Borrower, no longer economically practicable to maintain or useful in the ordinary course of business of Borrower; (c) consisting of Permitted Liens and Permitted Investments; (d) consisting of the sale or issuance of any stock, partnership, membership, or other ownership interest or other equity securities of Borrower permitted under Section 6.2 of this Agreement; (e) consisting of Borrower’s or its Subsidiaries’ use or transfer of money or Cash Equivalents in a manner that is not prohibited by the terms of this Agreement or the other Loan Documents; (f) consisting of non-exclusive licenses for the use of the property of Borrower or its Subsidiaries in the ordinary course of business and licenses that could not result in a legal transfer of title of the licensed property but that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United States; and (g) of other non-material assets not to exceed $500,000.00 in the aggregate per fiscal year.

6.2Changes in Business, Management, Control, or Business Locations.  (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or reasonably related thereto; (b) liquidate or dissolve or permit any of its Subsidiaries to liquidate or dissolve (unless the assets thereof are distributed to Borrower free and clean of all Liens); (c) fail to provide notice to Agent and the Lenders of any Key Person departing from or ceasing to be employed by Borrower within five (5) Business Days after such Key Person’s departure from Borrower; (d) permit, allow or suffer to occur any Change in Control; or (e) without at least ten (10) days prior written notice to Agent, (i) add any new offices or business locations, including warehouses (unless such new offices or business locations contain less than $250,000.00 in Borrower’s assets or property) or deliver any portion of the Collateral valued, individually or in the aggregate, in excess of $250,000.00 to a bailee at a location other than to a bailee and at a location already disclosed in the Perfection Certificate, (ii) change its jurisdiction of organization, (iii) change its organizational structure or type, (iv) change its legal name, or (v) change any organizational number (if any) assigned by its jurisdiction of organization.  If Borrower intends to add any new offices or business locations, including warehouses, containing in excess of $250,000.00 of Borrower’s assets or property, then Borrower shall use commercially reasonable efforts to cause the landlord of any such new offices or business locations, including warehouses, to execute and deliver a landlord consent in form and substance satisfactory to Agent.  If Borrower intends to deliver any portion of the Collateral valued, individually or in the aggregate, in excess of $250,000.00 to a bailee, and Agent and such bailee are not already parties to a bailee agreement governing both the Collateral and the location to which Borrower intends to deliver the Collateral, then Borrower shall use commercially reasonable efforts to cause such bailee to execute and deliver a bailee agreement in form and substance satisfactory to Agent.  The provisions of this paragraph do not apply to mobile computer or cellphone equipment in the possession of Borrower’s employees in the ordinary course of business.  

6.3Mergers or Acquisitions.  Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of 

 

 
18

the stock, partnership, membership, or other ownership interest or other equity securities or property of another Person (including, without limitation, by the formation of any Subsidiary or pursuant to a Division) (except as otherwise agreed to by Agent and the Lenders in writing in their sole and absolute discretion in accordance with Section 12.6 hereof).  A Subsidiary may merge or consolidate into another Subsidiary or into Borrower. 

6.4Indebtedness.  Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness.

6.5Encumbrance.  Create, incur, allow, or suffer to exist any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, permit any Collateral not to be subject to the first priority security interest granted herein (subject to Permitted Liens that are permitted pursuant to the terms of this Agreement to have superior priority to Agent’s, for the ratable benefit of Lenders, Lien under this Agreement), or enter into any agreement, document, instrument or other arrangement (except with or in favor of Agent, for the ratable benefit of the Lenders) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s Intellectual Property, except (i) customary restrictions on assignment in any license agreement where Borrower or Subsidiary is the licensee (and not the licensor) and (ii) as is otherwise permitted in Section 6.1 hereof and the definition of “Permitted Liens” herein.

6.6Maintenance of Collateral Accounts.  Maintain any Collateral Account except pursuant to the terms of Section 5.7.

6.7Distributions; Investments.  (a) Pay any dividends or make any distribution or payment or redeem, retire or purchase any stock, partnership, membership, or other ownership interest or other equity securities provided that Borrower may (i) convert any of its convertible securities into other securities pursuant to the terms of such convertible securities or otherwise in exchange thereof, (ii) pay dividends solely in common stock, (iii) (A) repurchase the stock, partnership, membership, or other ownership interest or other equity securities of current or former employees, officers, directors or consultants pursuant to stock repurchase agreements so long as an Event of Default does not exist at the time of any such repurchase and would not exist after giving effect to any such repurchase, (B) repurchase equity interests deemed to occur upon the exercise of stock options or warrants if such repurchased equity interests represents a portion of the exercise price of such options or warrants pursuant to a “cashless exercise”, “net share settlement” or similar feature, and (C) redemptions, repurchases and other cancellations of equity interests or rights in respect thereof granted to directors, employees, consultants and other Persons providing services for Borrower in an amount required to satisfy tax withholding obligations relation to the vesting, settlement or exercise of such equity interests or rights ((A), (B), and (C) collectively, the “Permitted Repurchases”), provided that the aggregate amount of all such Permitted Repurchases does not exceed $2,000,000.00 per fiscal year, and (iv) make cash payments in an amount not to exceed $20,000.00 in the aggregate per fiscal year in lieu of the issuance of fractional shares upon the conversion of convertible securities; or (b) directly or indirectly make any Investment (including, without limitation, by the formation of any Subsidiary), or permit any of its Subsidiaries to do so, in each case, other than Permitted Investments..

6.8Transactions with Affiliates.  Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower, except for (a) transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person (including, without limitation, consisting of Borrower forgiving (completely or partially), compromising, or settling any Account for less than payment in full, so long as (i) Borrower does so in good faith, in a commercially reasonable manner, in the ordinary course of business, in arm’s-length transactions, and (ii) no Event of Default has occurred and is continuing), (b) equity and bridge financings with Borrower’s existing investors, provided that any such equity financing is not prohibited by Section 6.2 and any such bridge financing shall constitute Subordinated Debt, (c) reasonable and customary indemnification and compensation arrangements approved by the Board or a duly authorized committee thereof, (d) repurchases permitted pursuant to Section 6.7(a) and (e) transfer pricing, cost-plus and cost sharing arrangements between or among Borrower and its Subsidiaries made (i) in the ordinary course of Borrower’s business and (ii) consistent with Borrower’s past practices or as recommended by Borrower’s tax, legal or accounting advisors.

 

 
19

6.9Subordinated Debt.  Except as expressly permitted under the terms of the subordination, intercreditor, or other similar agreement to which any Subordinated Debt is subject: (a) make or permit any payment on such Subordinated Debt; or (b) amend any provision in any document relating to such Subordinated Debt which would increase the amount thereof, provide for earlier or greater principal, interest, or other payments thereon, or adversely affect the subordination thereof to Obligations owed to Agent and the Lenders.

6.10Compliance.  (a) Become an “investment company” or a company controlled by an “investment company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; (b)(i) fail to meet the minimum funding requirements of ERISA, (ii) permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur, (iii) fail to comply with the Federal Fair Labor Standards Act or (iv) violate any other law or regulation, if the foregoing subclauses (i) through (iv), individually or in the aggregate, could reasonably be expected to have a material adverse effect on Borrower’s business or operations, or permit any of its Subsidiaries to do so; or (c) withdraw or permit any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation, or its successors or any other Governmental Authority.  

7EVENTS OF DEFAULT

Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement:

7.1Payment Default.  Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day cure period shall not apply to payments due on the Term Loan Maturity Date).  During the cure period, the failure to make or pay any payment specified under clause (b) hereunder is not an Event of Default (but no Credit Extension will be made during the cure period);

7.2Covenant Default. 

(a)Borrower fails or neglects to perform any obligation in Section 5 (other than Sections 5.2 (Government Compliance), 5.10 (Litigation Cooperation), 5.11 (Inventory; Returns) and 5.12 (Further Assurances)) or violates any covenant in Section 6; or

(b)Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 7) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed 30 days) to attempt to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period).  Cure periods provided under this section shall not apply, among other things, to financial covenants or any other covenants that are required to be satisfied, completed or tested by a date certain or any covenants set forth in clause (a) above;

7.3Material Adverse Change.  A Material Adverse Change occurs;

7.4Attachment; Levy; Restraint on Business.  

(a)(i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or any Subsidiary, or (ii) a notice of lien or levy is filed against any of Borrower’s or any of its Subsidiaries’ assets by any Governmental Authority, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days 

 

 
20

after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten (10) day cure period; or 

(b)(i) any material portion of Borrower’s or any of its Subsidiaries’ assets is attached, seized, levied on, or comes into possession of a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower or any of its Subsidiaries from conducting all or any material part of its business;

7.5Insolvency.  (a) Borrower or any of its Subsidiaries is unable to pay its debts (including trade debts) as they become due or otherwise becomes insolvent; (b) Borrower or any of its Subsidiaries begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower or any of its Subsidiaries and is not dismissed or stayed within 30 days (but no Credit Extensions shall be made while any of the conditions described in clause (a) exist or until any Insolvency Proceeding is dismissed);

7.6Other Agreements.  There is, under any agreement to which Borrower, any of Borrower’s Subsidiaries, or any Guarantor is a party with a third party or parties, (a) any default resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount individually or in the aggregate in excess of $250,000.00; or (b) any breach or default by Borrower, any of Borrower’s Subsidiaries, or Guarantor, the result of which could have a material adverse effect on Borrower’s, any of Borrower’s Subsidiaries’, or any Guarantor’s business or operations; 

7.7Judgments; Penalties.  One or more fines, penalties or final judgments, orders or decrees for the payment of money in an amount, individually or in the aggregate, of at least $250,000.00 (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower or any of its Subsidiaries by any Governmental Authority, and the same are not, within ten (10) days after the entry, assessment or issuance thereof, discharged, or after execution thereof, or stayed pending appeal, or such judgments are not discharged prior to the expiration of any such stay (provided that no Credit Extensions will be made prior to the discharge, or stay of such fine, penalty, judgment, order or decree);

7.8Misrepresentations.  Borrower or any of its Subsidiaries or any Person acting for Borrower or any of its Subsidiaries makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Agent or any Lender or to induce Agent or any Lenders to enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect when made (it being agreed and acknowledged by Agent and  any Lenders that the projections and forecasts provided by Borrower or any of its Subsidiaries in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results);

7.9Subordinated Debt.  If: (a) any document, instrument, or agreement evidencing any Subordinated Debt shall for any reason be revoked or invalidated or otherwise cease to be in full force and effect, or any Person (other than Agent or Lender) shall be in breach thereof or contest in any manner the validity or enforceability thereof or deny that it has any further liability or obligation thereunder; (b) a default or event of default (however defined) has occurred under any document, instrument, or agreement evidencing any Subordinated Debt, which default shall not have been cured or waived within any applicable grace period; or (c) the Obligations shall for any reason be subordinated or shall not have the priority contemplated by this Agreement or any applicable subordination or intercreditor agreement;

7.10Lien Priority.  There is a material impairment in the perfection or priority of Agent’s security interest in the Collateral;

7.11Guaranty.  (a) Any guaranty of any Obligations terminates or ceases for any reason to be in full force and effect; (b) any Guarantor does not perform any obligation or covenant under any guaranty of the Obligations; (c) any circumstance described in Sections 7.3, 7.4, 7.5, 7.6, 7.7, or 7.8 of this Agreement occurs with respect to any Guarantor, (d) the death, liquidation, winding up, or termination of existence of any Guarantor; or (e)(i) a material impairment in the perfection or priority of Agent’s Lien in the collateral provided by Guarantor or in the value of such collateral or (ii) a material adverse change in the general affairs, management, results of operation, condition (financial or otherwise) or the prospect of repayment of the Obligations occurs with respect to any Guarantor; or

 

 
21

7.12Governmental Approvals.  Any Governmental Approval shall have been (a) revoked, rescinded, suspended, modified in an adverse manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any applications for renewal of any of such Governmental Approval or that could result in the Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension, modification or non-renewal (i) causes, or could reasonably be expected to cause, a Material Adverse Change, or (ii) adversely affects the legal qualifications of Borrower or any of its Subsidiaries to hold such Governmental Approval in any applicable jurisdiction and such revocation, rescission, suspension, modification or non-renewal could reasonably be expected to affect the status of or legal qualifications of Borrower or any of its Subsidiaries to hold any Governmental Approval in any other jurisdiction.

7.13Delisting.  After an initial public offering of the Borrower’s common stock on an exchange or market, such shares are delisted from such exchange or market because of Borrower’s failure to comply with continued listing standards thereof or due to a voluntary delisting which results in such shares not being listed on such exchange or market. 

7.14Positive Data Event.  The Positive Data Event does not occur.  

8RIGHTS AND REMEDIES

8.1Rights and Remedies.  Upon the occurrence and during the continuance of an Event of Default, Agent, in accordance with the Lender Intercreditor Agreement or, if such rights and remedies are not addressed in the Lender Intercreditor Agreement, as directed by Lenders holding a majority of the Obligations, may, without notice or demand, do any or all of the following:

(a)declare all Obligations immediately due and payable (but if an Event of Default described in Section 7.5 occurs all Obligations are immediately due and payable without any action by Agent or any Lender);

(b)stop advancing money or extending credit for Borrower’s benefit under this Agreement or under any other agreement among Borrower, on the one hand, and any of Agent and any Lender, on the other hand;

(c)demand that Borrower (i) deposit cash with Agent in an amount equal to at least (A) 105.0% of the aggregate face amount of any Letters of Credit denominated in Dollars remaining undrawn, and (B) 110.0% of the Dollar Equivalent of the aggregate face amount of any Letters of Credit denominated in a Foreign Currency remaining undrawn (plus, in each case, all interest, fees, and costs due or estimated by Agent to become due in connection therewith), to secure all of the Obligations relating to such Letters of Credit, as collateral security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term of any Letters of Credit;

(d)terminate any FX Contracts (it being understood and agreed that (i) Lender is not obligated to deliver the currency which Borrower has contracted to receive under any FX Contract, and Lender may cover its exposure for any FX Contracts by purchasing or selling currency in the interbank market as Lender deems appropriate; (ii) Borrower shall be liable for all losses, damages, costs, margin obligations and expenses incurred by Lender arising from Borrower’s failure to satisfy its obligations under any FX Contract or the execution of any FX Contract; and (iii) Lender shall not be liable to Borrower for any gain in value of a FX Contract that Lender may obtain in covering Borrower’s breach);

(e)verify the amount of, demand payment of and performance under, and collect any Accounts and General Intangibles, settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Agent and/or the Lenders consider advisable, and notify any Person owing Borrower money of Agent’s security interest in such funds. Borrower shall collect all payments in trust for Agent, for the ratable benefit of the Lenders, and, if requested by Agent, immediately deliver the payments to Agent, for the ratable benefit of the Lenders, in the form received from the Account Debtor, with proper endorsements for deposit;  

 

 
22

(f)make any payments and do any acts Agent or any Lender considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral.  Borrower shall assemble the Collateral if Agent requests and make it available as Agent reasonably designates.  Agent may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Agent a license to enter and occupy any of its premises, without charge, to exercise any of Agent’s rights or remedies;

(g)apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) amount held by Agent owing to or for the credit or the account of Borrower;

(h)ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral.  For use solely upon the occurrence and during the continuation of an Event of Default, Agent, for the ratable benefit of the Lenders, is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, Patents, Copyrights, mask works, rights of use of any name, trade secrets, trade names, Trademarks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Agent’s exercise of its rights under this Section 8.1, Borrower’s rights under all licenses and all franchise agreements inure to Agent, for the ratable benefit of the Lenders;

(i)place a “hold” on any account maintained with SVB and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral;

(j)demand and receive possession of Borrower’s Books; and

(k)exercise all rights and remedies available to Agent and the Lenders under the Loan Documents or at law or equity, including all remedies provided under the Code or any Applicable Law (including disposal of the Collateral pursuant to the terms thereof).

8.2Power of Attorney.  Borrower hereby irrevocably appoints Agent, for the benefit of the Lenders, as its true and lawful attorney-in-fact, (a) exercisable upon the occurrence and during the continuance of an Event of Default, to: (i) endorse Borrower’s name on any checks, payment instruments, or other forms of payment or security; (ii) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (iii) demand, collect, sue, and give releases to any Account Debtor for monies due, settle and adjust disputes and claims about the Accounts directly with Account Debtors, and compromise, prosecute, or defend any action, claim, case, or proceeding about any Collateral (including filing a claim or voting a claim in any bankruptcy case in Agent’s or Borrower’s name, as Agent chooses); (iv) make, settle, and adjust all claims under Borrower’s insurance policies; (v) pay, contest or settle any Lien, charge, encumbrance, security interest, or other claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (vi) transfer the Collateral into the name of Agent or a third party as the Code permits; and (b) regardless of whether an Event of Default has occurred, to sign Borrower’s name on any documents necessary to perfect or continue the perfection of Agent’s security interest in the Collateral. Agent’s foregoing appointment as Borrower’s attorney in fact, and all of Agent’s rights and powers, coupled with an interest, are irrevocable until such time as all Obligations (other than inchoate indemnity obligations) have been satisfied in full, Agent is under no further obligation to make Credit Extensions and the Loan Documents have been terminated. Agent shall not incur any liability in connection with or arising from the exercise of such power of attorney and shall have no obligation to exercise any of the foregoing rights and remedies

8.3Protective Payments.  If Borrower fails to obtain the insurance called for by Section 5.6 or fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document or which may be required to preserve the Collateral, Agent may obtain such insurance or make such payment, and all amounts so paid by Agent are Lenders’ Expenses and immediately due and payable, bearing interest at the then highest rate applicable to the Obligations, and secured by the Collateral. Agent will make reasonable efforts to provide Borrower with notice of Agent obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Agent are deemed an agreement to make similar payments in the future or Agent’s or and Lenders’ waiver of any Event of Default.

 

 
23

8.4Application of Payments and Proceeds.  If an Event of Default has occurred and is continuing, Agent may apply any funds in its possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the Obligations in such order as Agent shall determine in its sole discretion.  Any surplus shall be paid to Borrower or other Persons legally entitled thereto; Borrower shall remain liable to Agent and the Lenders for any deficiency.  If Agent, in its commercially reasonable discretion, directly or indirectly, enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Agent shall have the option, exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Agent of cash therefor.

8.5Agent’s Liability for Collateral.  Agent’s and Lender’s sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession or under its control, under Section 9-207 of the Code or otherwise, shall be to deal with it in the same manner as Agent and Lenders deal with their own property consisting of similar instruments or interests.  Borrower bears all risk of loss, damage or destruction of the Collateral.

8.6No Waiver; Remedies Cumulative.  Agent’s and any Lender’s failure, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Agent or any Lender thereafter to demand strict performance and compliance herewith or therewith.  No waiver hereunder shall be effective unless signed by the party granting the waiver and then is only effective for the specific instance and purpose for which it is given.  Agent’s and each Lender’s rights and remedies under this Agreement and the other Loan Documents are cumulative.  Agent and each Lender have all rights and remedies provided under the Code, by law, or in equity.  Agent’s or any Lender’s exercise of one right or remedy is not an election and shall not preclude Agent or any Lender from exercising any other remedy under this Agreement or other remedy available at law or in equity, and Agent’s or any Lender’s waiver of any Event of Default is not a continuing waiver.  Agent’s or any Lender’s delay in exercising any remedy is not a waiver, election, or acquiescence.  

8.7Demand Waiver.  Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Agent on which Borrower is liable. 

9Agent 

9.1Appointment and Authority.

(a)Each Lender hereby irrevocably appoints SVB to act on its behalf as Agent hereunder and under the other Loan Documents and authorizes Agent to take such actions on its behalf and to exercise such powers as are delegated to Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  In performing its functions and duties hereunder and under the other Loan Documents, Agent is acting solely on behalf of the Lenders (except in limited circumstances expressly provided for herein relating to the maintenance of the Register), and its duties are entirely mechanical and administrative in nature. 

(b)The provisions of this Section 9 are solely for the benefit of Agent and Lenders, and Borrower shall not have rights as a third-party beneficiary of any of such provisions (except in limited circumstances expressly provided for herein relating to the maintenance of the Register).  Notwithstanding any provision to the contrary elsewhere in this Agreement, Agent shall not have any duties or responsibilities to any Lender or any other Person, except those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against Agent.

9.2Delegation of Duties.  Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by Agent.  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 Indemnified Persons.  The exculpatory provisions of this Section 9.2 shall apply to any such sub-agent and to the Indemnified Persons of 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 Agent.  Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent a final and nonappealable decision 

 

 
24

of a court of competent jurisdiction determines that Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

9.3  Exculpatory Provisions.  Agent shall have no duties or obligations except those expressly set forth herein and in the other Loan Documents.  Without limiting the generality of the foregoing, Agent shall not:

(a)be subject to any fiduciary, trust, agency or other similar duties, regardless of whether any Event of Default has occurred and is continuing;

(b)have any 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 Agent is required to exercise as directed in writing by the Lenders, as applicable; provided that Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose Agent to liability or that is contrary to any Loan Document or applicable law; and

(c)except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and Agent shall not be liable for the failure to disclose, any information relating to Borrower or any of its Affiliates that is communicated to or obtained by any Person serving as Agent or any of its Affiliates in any capacity.

Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders, (ii) or as Agent shall believe in good faith shall be necessary, under the circumstances as provided in Section 12.6 or (iii) in the absence of its own gross negligence or willful misconduct.

Agent 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 hereunder or thereunder 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 therein or the occurrence of any Event of Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Section 2 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to Agent.

 

9.4 Reliance by Agent.  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 (including any electronic message, internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  Agent may consult with legal counsel (who may be counsel for 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.  In determining compliance with any condition hereunder to the making of a Credit Extension that, by its terms, must be fulfilled to the satisfaction of a Lender, Agent may presume that such condition is satisfactory to such Lender unless Agent shall have received notice to the contrary from such Lender prior to the making of such Credit Extension.  Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement and the other Loan Documents in accordance with a request of the Lenders, and such request and any action taken or failure to act pursuant thereto shall be binding upon Lenders and all future holders of the Credit Extensions.

9.5 Notice of Default.  Agent shall not be deemed to have knowledge or notice of the occurrence of any Event of Default, unless Agent has received notice from a Lender or Borrower referring to this Agreement, describing such Event of Default and stating that such notice is a “notice of default”.  In the event that Agent receives such a notice, Agent shall give notice thereof to Lenders.  Agent shall take such action with respect to such Event of Default as shall be reasonably directed by the Lenders.

9.6 Non-Reliance on Agent and Other Lenders.  Each Lender expressly acknowledges that neither Agent nor any of its officers, directors, employees, agents, attorneys in fact or affiliates has made any representations or warranties to it and that no act by Agent hereafter taken, including any review of the affairs of a Group Member or 

 

 
25

any Affiliate of a Group Member, shall be deemed to constitute any representation or warranty by Agent to any Lender.  Each Lender represents to Agent that it has, independently and without reliance upon Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of, and investigation into, the business, operations, property, financial and other condition and creditworthiness of the Group Members and their Affiliates and made its own decision to make its Credit Extensions hereunder and enter into this Agreement.  Each Lender also represents that it will, independently and without reliance upon Agent 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 analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Group Members and their Affiliates.  Except for notices, reports and other documents expressly required to be furnished to Lenders by Agent hereunder, Agent shall have no duty or responsibility to provide any Lender with any credit or other information concerning the business, operations, property, condition (financial or otherwise), prospects or creditworthiness of any Group Member or any Affiliate of a Group Member that may come into the possession of Agent or any of its officers, directors, employees, agents, attorneys in fact or Affiliates.

9.7Indemnification.  Each Lender agrees to indemnify Agent in its capacity as such (to the extent not reimbursed by Borrower and without limiting the obligation of Borrower to do so in accordance with the terms hereof, according to its Term Loan Commitment Percentage in effect on the date on which indemnification is sought under this Section 9.7 (or, if indemnification is sought after the date upon which the Commitments shall have terminated and the Obligations shall have been paid in full, in accordance with its Term Loan Commitment Percentage immediately prior to such date), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Credit Extensions) be imposed on, incurred by or asserted against Agent 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 Agent under or in connection with any of the foregoing; provided that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted primarily from Agent’s gross negligence or willful misconduct.  The agreements in this Section shall survive the payment of the Credit Extensions and all other amounts payable hereunder.

9.8Agent in Its Individual Capacity.  The Person serving as 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 Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include each such Person serving as Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with Borrower, any Guarantor or any Subsidiary or other Affiliate thereof as if such Person were not Agent hereunder and without any duty to account therefor to Lenders.

9.9  Successor Agent.  Agent may at any time give notice of its resignation to Lenders and Borrower, which resignation shall not be effective until the time at which the majority of the Lenders have delivered to Agent their written consent to such resignation.  Upon receipt of any such notice of resignation, the Lenders shall have the right, in consultation with Borrower, to appoint a successor.  If no such successor shall have been so appointed by the Lenders and shall have accepted such appointment within 30 days after the retiring Agent has received the written consent of the majority of the Lenders to such resignation, then the retiring Agent may on behalf of Lenders, appoint a successor Agent meeting the qualifications set forth above; provided that in no event shall any such successor Agent be a Defaulting Lender and provided further that if the retiring Agent shall notify Borrower and Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (1) the retiring Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by Agent on behalf of the Lenders under any of the Loan Documents, the retiring Agent shall continue to hold such collateral security until such time as a successor Agent is appointed and such collateral security is assigned to such successor Agent) and (2) all payments, communications and determinations provided to be made by, to or through Agent shall instead be made by or to each Lender directly, until such time as the Lenders appoint a successor Agent as provided for above in this Section 9.9.  Upon the acceptance of a successor’s appointment as Agent hereunder, such successor shall succeed to 

 

 
26

and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Agent, and the retiring Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this Section 9.9).  The fees payable by Borrower to a successor Agent shall be the same as those payable to its predecessor unless otherwise agreed between Borrower and such successor.  After the retiring Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Section 9 shall continue in effect for the benefit of such retiring Agent, its sub-agents and their respective Indemnified Persons in respect of any actions taken or omitted to be taken by any of them while the retiring Agent was acting as Agent.

 

9.10Actions by Agent.  In case of the pendency of any proceeding with respect to the Borrower under any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, the Agent (irrespective of whether the principal of any Credit Extension shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

 

(a)to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Credit Extensions 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 Agent allowed in such judicial proceeding; 

(b)to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; and

(c)and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such proceeding is hereby authorized by each Lender to make such payments to the Agent and, in the event that the Agent shall consent to the making of such payments directly to the Lenders to pay to the Agent any amount due to it, in its capacity as the Agent, under the Loan Documents. Nothing contained herein shall be deemed to authorize the 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 Agent to vote in respect of the claim of any Lender in any such proceeding.

9.11Register.  Agent, acting solely for this purpose as a non-fiduciary agent of Borrower, shall maintain 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 Commitment(s) of, and principal amount (and stated interest) of the Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and Borrower, Agent and the Lenders shall 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.  The Register shall be available for inspection by Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

9.12Defaulting Lender.  

(a)Defaulting Lender Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:

(i)Waivers and Amendments.  Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as long as said Lender is a Defaulting Lender.

(ii)Defaulting Lender Waterfall.  Any payment of principal, interest, fees or other amounts received by the Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 7 or otherwise, and including any amounts made available to the Agent by such Defaulting Lender pursuant to Section 12.10), shall be applied at such time or times as may be determined by the Agent as follows: first, to the payment of any 

 

 
27

amounts owing by such Defaulting Lender to the Agent hereunder; second, as Borrower may request (so long as no Event of Default exists), to the funding of any Credit Extension in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Agent; third, if so determined by the Agent and Borrower, to be held in a Deposit Account and released pro rata to satisfy such Defaulting Lender’s potential future funding obligations with respect to each Credit Extension under this Agreement; fourth, so long as no Event of Default has occurred and is continuing, to the payment of any amounts owing to Borrower as a result of any judgment of a court of competent jurisdiction obtained by Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and fifth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (A) such payment is a payment of the principal amount of each Credit Extension in respect of which such Defaulting Lender has not fully funded its appropriate share and (B) each Credit Extension was made at a time when the conditions set forth in Section 2.1 were satisfied or waived, such payment shall be applied solely to pay the Credit Extensions of all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of the Credit Extensions of such Defaulting Lender until such time as the Credit Extensions are held by the Lenders pro rata in accordance with the Credit Extensions under this Agreement.  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender pursuant to this Section 9.12(a)(ii) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

(iii)Certain Fees.  No Defaulting Lender shall be entitled to receive any fee pursuant to Section 1.6 for any period during which such Lender is a Defaulting Lender (and Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to such Defaulting Lender).  

(b)Defaulting Lender Cure.  If Borrower and Agent agree in writing that a Lender is no longer a Defaulting Lender, 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, such Lender will, to the extent applicable, purchase at par that portion of outstanding Credit Extension of the other Lenders or take such other actions as Agent may determine to be necessary to cause the Credit Extension to be held on a pro rata basis by the Lenders in accordance with their respective Term Loan Commitment Percentages, 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 Borrower while such 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 such Lender having been a Defaulting Lender. 

(c)Termination of Defaulting Lender.  Borrower may terminate the unused amount of the Term Loan Commitment of any Lender that is a Defaulting Lender upon not less than 10 Business Days’ prior notice to Agent (which shall promptly notify the Lenders thereof), and in such event the provisions of Section 9.12(a)(ii) will apply to all amounts thereafter paid by Borrower for the account of such Defaulting Lender under this Agreement (whether on account of principal, interest, fees, indemnity or other amounts); provided that (i) no Event of Default shall have occurred and be continuing, and (ii) such termination shall not be deemed to be a waiver or release of any claim Borrower, Agent or any Lender may have against such Defaulting Lender.

(d)If the Person serving as Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the non-Defaulting Lenders may, to the extent permitted by applicable law, by notice in writing to Borrower and such Person, remove such Person as Agent and, in consultation with Borrower, appoint a successor.  If no such successor shall have been so appointed by the non-Defaulting Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the non-Defaulting Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

9.13Erroneous Payments.  

(a) If Agent notifies a Lender, or any Person who has received funds on behalf of a Lender (any such Lender,  or other recipient, a “Payment Recipient”) that Agent has determined in its sole 

 

 
28

discretion (whether or not after receipt of any notice under immediately succeeding clause (b)) that any funds received by such Payment Recipient from 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, 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 “Erroneous Payment”) and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of Agent, and such Lender shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two Business Days thereafter, return to 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 Agent in same day funds at a rate determined by Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of Agent to any Payment Recipient under this clause (a) shall be conclusive, absent manifest error. 

(b)Without limiting immediately preceding clause (a), each Lender, or any Person who has received funds on behalf of a Lender, 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 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 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 Agent (or any of its Affiliates), or (z) that such Lender, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part) in each case: 

(i)(A) in the case of immediately preceding clauses (x) or (y), an error shall be presumed to have been made (absent written confirmation from Agent to the contrary) or (B) an error has been made (in the case of immediately preceding clause (z)), in each case, with respect to such payment, prepayment or repayment; and 

(ii)such Lender shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one Business Day of its knowledge of such error) notify Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying Agent pursuant to this Section 9.13(b). 

(c)Each Lender hereby authorizes Agent to set off, net and apply any and all amounts at any time owing to such Lender under any Loan Document, or otherwise payable or distributable by Agent to such Lender from any source, against any amount due to Agent under clause (a) hereof or under the indemnification provisions of this Agreement. 

(d)In the event that an Erroneous Payment (or portion thereof) is not recovered by Agent for any reason, after demand therefor by Agent in accordance with clause (a) hereof, from any Lender 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 “Erroneous Payment Return Deficiency”), upon Agent’s notice to such Lender at any time, (i) such Lender shall be deemed to have assigned its Term Loan Advances (but not its Commitments), depending on  whether such Erroneous Payment was made with respect to the Term Loan Advances (the “Erroneous Payment Impacted Class”) in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as Agent may specify) (such assignment of the Term Loan Advances (but not Commitments) of the Erroneous Payment  Impacted Class, the “Erroneous Payment Deficiency Assignment”) at par plus any accrued and unpaid interest (with the assignment fee to be waived by Agent in such instance), and is hereby (together with Borrower) deemed to execute and deliver an Assignment and Assumption with respect to such Erroneous Payment Deficiency Assignment, (ii) Agent as the assignee Lender shall be deemed to acquire the Erroneous Payment Deficiency Assignment, (iii) upon such deemed acquisition, Agent as the assignee Lender shall become a Lender , as applicable, hereunder with respect to such Erroneous Payment Deficiency 

 

 
29

Assignment and the assigning Lender  shall cease to be a Lender , 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 and (iv) Agent may reflect in the Register its ownership interest in the Term Loan Advances subject to the Erroneous Payment Deficiency Assignment.  Agent may, in its discretion, sell any Term Loan Advances 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 shall be reduced by the net proceeds of the sale of such Term Loan Advance (or portion thereof), and Agent shall retain all other rights, remedies and claims against such Lender (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, 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 Agent has sold a Term Loan Advance (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether Agent may be equitably subrogated, Agent shall be contractually subrogated to all the rights and interests of the applicable Lender under the Loan Documents with respect to each Erroneous Payment Return Deficiency (the “Erroneous Payment Subrogation Rights”). 

(e)The parties hereto agree that an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by Borrower or any other Loan 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 Agent from Borrower for the purpose of making such Erroneous Payment.  

(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 or counterclaim by Agent for the return of any Erroneous Payment received, including without limitation any defense based on “discharge for value” or any similar doctrine. 

(g)Each party’s obligations, agreements and waivers under this Section 9.13 shall survive the resignation or replacement of Agent, any transfer of rights or obligations by, or the replacement of, a Lender, the termination of the Commitments and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.

10NOTICES

All notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address or email address indicated below; provided that, for clause (b), if such notice, consent, request, approval, demand or other communication is not sent during the normal business hours of the recipient, it shall be deemed to have been sent at the opening of business on the next Business Day of the recipient.  Agent or Borrower may change its mailing or electronic mail address by giving the other party written notice thereof in accordance with the terms of this Section 9. 

If to Borrower:Achieve Life Sciences, Inc.

22722 29th Dr. SE, Suite 100

Bothell, WA 98021

Attn: John Bencich

Email:

With a copy to:Fenwick & West LLP

1191 Second Avenue, 10th Floor

 

 
30

Seattle, Washington

Attn: Alan Smith

Email: 

 

If to Agent or SVB:Silicon Valley Bank 
505 Howard Street, Floor 3
San Francisco, California 94105
Attn: Pete Sletteland
Email:     

with a copy to:Morrison & Foerster LLP
200 Clarendon Street

Boston, Massachusetts 02116
Attn: David A. Ephraim, Esquire

Email: 

If to SVB Innovation:SVB Innovation Credit Fund VIII, L.P.

c/o SVB Capital

2770 Sand Hill Road

Menlo Park, California 94025

Attn: SVB Capital Finance and Operations

Email: 

 

11CHOICE OF LAW, VENUE and JURY TRIAL WAIVER; JUDICIAL REFERENCE

Except as otherwise expressly provided in any of the Loan Documents, California law governs the Loan Documents without regard to principles of conflicts of law that would require the application of the laws of another jurisdiction.  Borrower, Agent and Lenders each irrevocably and unconditionally submit to the exclusive jurisdiction of the State and Federal courts in Santa  Clara County, California; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Agent or Lenders from bringing suit or taking other legal action in any other jurisdiction with respect to the Loan Documents or to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of Agent or any Lender.  Borrower expressly, irrevocably and unconditionally submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby irrevocably and unconditionally waives, to the fullest extent permitted by Applicable Law, any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby irrevocably and unconditionally consents to the granting of such legal or equitable relief as is deemed appropriate by such court.  Borrower hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in, or subsequently provided by Borrower in accordance with, Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or 3 days after deposit in the U.S. mails, proper postage prepaid.

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER, AGENT AND EACH LENDER WAIVES THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT.  EACH PARTY HERETO HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding 

 

 
31

Judge of the Santa Clara County, California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court.  The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure Sections 638 through 645.1, inclusive.  The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers.  All such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed.  If during the course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior Court for such relief.  The proceeding before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings.  The parties shall be entitled to discovery which shall be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings.  The private judge shall oversee discovery and may enforce all discovery rules and orders applicable to judicial proceedings in the same manner as a trial court judge.  The parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to California Code of Civil Procedure Section 644(a).  Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies.  The private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph.

This Section 11 shall survive the termination of this Agreement and the repayment of all Obligations.

12GENERAL PROVISIONS

12.1Termination Prior to Maturity Date; Survival.  All covenants, representations and warranties made in this Agreement shall continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations) have been satisfied.  So long as Borrower has satisfied the Obligations (other than inchoate indemnity obligations, and any other obligations which, by their terms, are to survive the termination of this Agreement and the repayment of all Obligations, and any Obligations under Bank Services Agreements that are cash collateralized in accordance with Section 3.3 of this Agreement), this Agreement may be terminated prior to the Term Loan Maturity Date by Borrower, effective three (3) Business Days after written notice of termination is given to Agent.  Those obligations that are expressly specified in this Agreement as surviving this Agreement’s termination and the repayment of all Obligations shall continue to survive notwithstanding this Agreement’s termination and the repayment of all Obligations. 

12.2Successors and Assigns.  

(a)This Agreement binds and is for the benefit of the successors and permitted assigns of each party.  Borrower may not assign or transfer this Agreement or any rights or obligations under it without Agent’s and each Lender’s prior written consent (which may be granted or withheld in Agent’s sole discretion subject to the Lender Intercreditor Agreement) and any other attempted assignment or transfer by Borrower shall be null and void.  Agent and each Lender has the right, without the consent of or notice to Borrower, to sell, “transfer, assign, negotiate, or grant participation in all or any part of, or any interest in, such Lender’s obligations, rights, and benefits under this Agreement and the other Loan Documents.  Notwithstanding the foregoing, so long as no Event of Default shall have occurred and is continuing, Agent and the Lenders shall not assign its interest in the Loan Documents to any Person who in the reasonable estimation of Agent is (a) a direct competitor or Borrower, whether as an operating company or direct or indirect parent with voting control over such operating company or (b) a vulture fund or distressed debt fund.

(b)Upon its receipt of (x) a duly completed Assignment and Assumption executed by an assigning Lender and an assignee or (y) to the extent applicable, an agreement incorporating an Assignment and Assumption as to which Agent and the parties to the Assignment and Assumption are participants, the assignee’s completed administrative questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (c) of this Section and any written consent to such assignment required by paragraph (c) of this Section, Agent shall accept such Assignment and Assumption and record the information 

 

 
32

contained therein in the Register; provided that if either the assigning Lender or the assignee is a Defaulting Lender, Agent shall have no obligation to accept such Assignment and Assumption and record the information therein in the Register unless and until such payment shall have been made in full, together with all accrued interest thereon.  No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph. 

(c)Any Lender may, without the consent of, or notice to, Borrower or Agent, sell participations to one or more banks or other entities (a “Participant”), in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitments made by 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) Borrower, Agent 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 clauses (i), (ii) or (iii) the first proviso to Section 9.3(c) that affects such Participant.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of Borrower, 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 Advances or other obligations under the Loan Documents (the “Participant Register”); 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, Term Loan Advances, Advances 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, Advance, 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, Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register.

(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 any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section 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.

12.3Indemnification. 

(a)General Indemnification.  Borrower shall indemnify, defend and hold Agent, each Lender and its Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of Agent, each Lender and its Affiliates (each, an “Indemnified Person”) harmless against: (i) all losses, claims, damages, liabilities and related expenses (including Lenders’ Expenses and the reasonable fees, charges and disbursements of any counsel for any Indemnified Person)  (collectively, “Claims”) arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Credit Extension or the use or proposed use of the proceeds therefrom, (iii) any actual or alleged presence or release of hazardous materials on or from any property owned or operated by Borrower or any of its Subsidiaries, or any environmental liability related in any way to Borrower or any of its Subsidiaries, or (iv) 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 Borrower, and regardless of whether any Indemnified Person is a party thereto; provided that such indemnity shall not, as to any Indemnified Person, be available to the extent that such losses, claims, damages, liabilities or related expenses 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 Indemnified Person.  All amounts due under this Section 12.3 shall be payable promptly after demand therefor.

 

 
33

(b)Waiver of Consequential Damages, Etc.  To the fullest extent permitted by Applicable Law, Borrower shall not assert, and hereby waives, any claim against any Indemnified Person, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) or any loss of profits arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Credit Extension, or the use of the proceeds thereof.  No Indemnified Person shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

(c)Judgment Currency; Currency Indemnification. If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due hereunder or any other Loan Document in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal banking procedures Agent could purchase the first currency with such other currency on the Business Day preceding that on which final judgment is given. The obligation of Borrower with respect to any such sum due from it to Agent and the Lenders hereunder or under any other Loan Document shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in which such sum is denominated in accordance with the applicable provisions of this Agreement (the “Agreement Currency”), be discharged only to the extent that on the Business Day following receipt by Agent or the Lenders of any sum adjudged to be so due in the Judgment Currency, Agent may in accordance with normal banking procedures purchase the Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so purchased is less than the sum originally due to Agent and/or the Lenders from Borrower in the Agreement Currency, Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify Agent and the Lenders against such loss. If the amount of the Agreement Currency so purchased is greater than the sum originally due to Agent and/or the Lenders in such currency, Agent and Lenders agree to return the amount of any excess to Borrower (or to any other Person who may be entitled thereto under Applicable Law).

This Section 12.3 shall survive the termination of this Agreement and the repayment of all Obligations until all statutes of limitation with respect to the Claims, losses, and expenses for which indemnity is given shall have run.

12.4Time of Essence.  Time is of the essence for the performance of all Obligations in this Agreement.

12.5Severability of Provisions.  Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision.

12.6Amendments in Writing; Waiver; Integration.  No purported amendment or modification of any Loan Document, or waiver, discharge or termination of any obligation under any Loan Document, or release, or subordinate Lenders’ security interest in, or consent to the transfer of, any Collateral shall be enforceable or admissible unless, and only to the extent, expressly set forth in a writing signed by Agent, with the consent of the Lenders in accordance with the Lender Intercreditor Agreement or, if such item is not addressed in the Lender Intercreditor Agreement, as consented to by a majority of the Lenders, and Borrower.  Without limiting the generality of the foregoing, no oral promise or statement, nor any action, inaction, delay, failure to require performance or course of conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan Document.  Any waiver granted shall be limited to the specific circumstance expressly described in it, and shall not apply to any subsequent or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any obligation or commitment to grant any further waiver.  The Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of the Loan Documents merge into the Loan Documents.

12.7Counterparts.  This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement.  Delivery of an executed signature page of this Agreement by electronic mail transmission shall be effective as delivery of a manually executed counterpart hereof.

12.8Confidentiality.  Agent and each Lender agrees to maintain the confidentiality of Information (as defined below), except that Information may be disclosed (a) to Agent, Lenders and/or Agent’s or Lenders’ 

 

 
34

subsidiaries or Affiliates, and their respective employees, directors, investors, potential investors, officers, managers, agents, attorneys, accountants and other professional advisors (collectively, “Representatives” and, together with Agent and the Lenders, collectively, “Lender Entities”); (b) to prospective transferees, assignees, credit providers or purchasers of any of Agent’s or a Lender’s interests under or in connection with this Agreement and their Representatives (provided, however, Agent and the Lenders shall use commercially reasonable efforts to obtain any such prospective transferee’s, assignee’s, credit provider’s, purchaser’s or their Representatives’ agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other order; (d) to Agent’s or any Lender’s regulators or as otherwise required or requested in connection with Agent’s or any Lender’s examination or audit; (e) in connection with the exercise of remedies under the Loan Documents or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder; and (f) to third-party service providers of Agent and/or any Lender so long as such service providers have executed a confidentiality agreement with Agent or the Lenders, as applicable, with terms no less restrictive than those contained herein.  “Information” means all information received from Borrower regarding Borrower or its business, in each case other than information that is either: (i) in the public domain or in Agent’s or any Lender’s possession when disclosed to Agent or such Lender, or becomes part of the public domain (other than as a result of its disclosure by Agent or a Lender in violation of this Agreement) after disclosure to Agent and/or the Lenders; or (ii) disclosed to Agent and/or a Lender by a third party, if Agent or such Lender, as applicable, does not know that the third party is prohibited from disclosing the information.

12.9Electronic Execution of Documents.  The words “execution,” “signed,” “signature” and words of like import in any Loan Document shall be deemed to include electronic signatures, including any Electronic Signature as defined in the Electronic Transactions Law (2003 Revision) of the Cayman Islands (the “Cayman Islands Electronic Signature Law”), if applicable, or the keeping of records in electronic form, including any Electronic Record, as defined in Cayman Islands Electronic Signature Law, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any Applicable Law, including, without limitation, any state law based on the Uniform Electronic Transactions Act,  or the Cayman Islands Electronic Signature Law; provided, however that sections 8 and 19(3) of the Cayman Islands Electronic Signature Law shall not apply to this Agreement or the execution or delivery thereof.

12.10Right of Setoff.   Borrower hereby grants to Agent, for the ratable benefit of the Lenders, a Lien and a right of setoff as security for all Obligations to Agent and the Lenders, whether now existing or hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Agent or any entity under the control of Agent (including a subsidiary of Agent) or in transit to any of them, and other obligations owing to Agent, Lenders or any such entity.  At any time after the occurrence and during the continuance of an Event of Default, without demand or notice, Agent or any Lender may setoff the same or any part thereof and apply the same to any liability or Obligation of Borrower even though unmatured and regardless of the adequacy of any other collateral securing the Obligations.  ANY AND ALL RIGHTS TO REQUIRE AGENT OR ANY LENDER TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

12.11Captions and Section References.  The headings used in this Agreement are for convenience only and shall not affect the interpretation of this Agreement.  Unless indicated otherwise, section references herein are to sections of this Agreement.

12.12Construction of Agreement.  The parties hereto mutually acknowledge that they and their attorneys have participated in the preparation and negotiation of this Agreement.  In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the uncertainty to exist.

12.13Relationship.  The relationship of the parties to this Agreement is determined solely by the provisions of this Agreement.  The parties do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different from those of parties to an arm’s-length contract.

 

 
35

12.14Third Parties.  Nothing in this Agreement, whether express or implied, is intended to: (a) confer any benefits, rights or remedies under or by reason of this Agreement on any Persons other than the express parties to it and their respective permitted successors and assigns; (b) relieve or discharge the obligation or liability of any Person not an express party to this Agreement; or (c) give any Person not an express party to this Agreement any right of subrogation or action against any party to this Agreement.

12.15Anti-Terrorism Law.  Each Lender hereby notifies Borrower that, pursuant to the requirements of Anti-Terrorism Law, each Lender may be required to obtain, verify and record information that identifies Borrower, which information may include the name and address of Borrower and other information that will allow Lender, as applicable, to identify Borrower in accordance with Anti-Terrorism Law. Borrower hereby agrees to take any action necessary to enable each Lender to comply with the requirements of Anti-Terrorism Law.

13accounting terms and other DEFINITIONS

13.1Accounting and Other Terms.  

(a)Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP (except for with respect to unaudited financial statements for the absence of footnotes and subject to year-end audit adjustments), provided that if at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either Borrower or any Lender shall so request, Borrower and Lenders shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; provided, further, that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) Borrower shall provide Agent and Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.  Notwithstanding the foregoing, for purposes of determining compliance with any covenant contained herein, Indebtedness of the Borrower and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded. In addition, notwithstanding the foregoing, all financial covenants contained herein shall be calculated, and compliance with all other covenants shall be determined without giving effect to any change in accounting for leases pursuant to GAAP resulting from the adoption of Financial Accounting Standards Board Accounting Standards Update No. 2016-02, Leases (Topic 842) (“FAS 842”), to the extent such adoption would require (x) treating any lease (or similar arrangement conveying the right to use) as a capital lease where such lease (or similar arrangement) would not have been required to be so treated under GAAP as in effect on December 31, 2015 or (y) recognizing liabilities on the balance sheet with respect to operating leases under FAS 842.  

(b)As used in the Loan Documents: (i) the words “shall” or “will” are mandatory, the word “may” is permissive, the word “or” is not exclusive, the words “includes” and “including” are not limiting, the singular includes the plural, and numbers denoting amounts that are set off in brackets are negative; (ii) the term “continuing” in the context of an Event of Default means that the Event of Default has not been remedied (if capable of being remedied) or waived; and (iii) whenever a representation or warranty is made to Borrower’s knowledge or awareness, to the “best of” Borrower’s knowledge, or with a similar qualification, knowledge or awareness means the actual knowledge, after reasonable investigation, of any Responsible Officer.

13.2Definitions.  Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in this Section 13.2.  All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein.  As used in this Agreement, the following capitalized terms have the following meanings:

“Account” is, as to any Person, any “account” of such Person as “account” is defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to such Person.

“Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made.

 

 
36

“Acquisition” means:

(i) the merger or consolidation of the Issuer into or with another person or entity, or other reorganization pursuant to which the outstanding voting equity securities of the Issuer are exchanged for or substituted with the securities of another person or entity, other than (A) a merger effected for the sole purpose of changing the domicile of the Issuer, (B) a reorganization effected for the sole purpose of establishing a holding company for the Issuer, or (C) any merger, consolidation or reorganization as of immediately following which the holders of the Issuer’s outstanding voting equity securities prior to such merger, consolidation or reorganization continue to hold at least a majority of the total combined outstanding voting power of the Issuer or its successor pursuant to such merger, consolidation or reorganization and, if the successor or surviving entity shall not be the Issuer, such successor or surviving entity shall have assumed all of the Issuer’s obligations under this Agreement;

(ii)a sale, assignment or other transfer of all or substantially all of the Issuer’s assets; or

(iii)the sale, assignment or other transfer by holders of the Issuer’s outstanding voting equity securities, in a single transaction or series of related transactions, of such securities representing a majority of the total combined outstanding voting power of the Issuer.

“Additional Term Loan Advance” is defined in Section 1.1.2 of this Agreement.

“Additional Term Loan Availability Amount” is set forth on Schedule I hereto.

“Affiliate” is, with respect to any Person, each other Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members.  

“Agent” is defined in the preamble hereof.

“Agreement” is defined in the preamble hereof.

“Agreement Currency” is defined in Section 12.3.

“Anti-Terrorism Law” means any law relating to terrorism or money-laundering, including Executive Order No. 13224 and the USA Patriot Act.

“Applicable Law” means all applicable provisions of constitutions, laws, statutes, ordinances, rules, treaties, regulations, permits, licenses, approvals, interpretations and orders of courts or Governmental Authorities and all orders and decrees of all courts and arbitrators.

“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 12.2), and accepted by Agent, in any form approved by Agent.

“Associated Debt” as of any date means, with respect to a Conversion Right Holder, the total outstanding principal amount of the Term Loan Advance (including, without limitation, the PIK Amount) and accrued and unpaid interest thereon (i) which such Conversion Right Holder would have the right to convert in a Voluntary Conversion occurring on such date, or (ii) which would be automatically converted on the Price Event occurring on such date, in either case without regard to the limitations described in Section 1.2(f).  For the avoidance of doubt, the term “Associated Debt” shall not include any Additional Term Loan Advance.

“Authorized Signer” means any individual listed in Borrower’s Borrowing Resolution who is authorized to execute the Loan Documents, including making (and executing if applicable) any Credit Extension request, on behalf of Borrower.

 

 
37

“Bank Services” are any products, credit services, and/or financial accommodations previously, now, or hereafter provided to Borrower or any of its Subsidiaries by SVB or any SVB Affiliate, including, without limitation, any letters of credit, cash management services (including, without limitation, merchant services, direct deposit of payroll, business credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange services as any such products or services may be identified in Bank’s various agreements related thereto (each, a “Bank Services Agreement”).

“Bank Services Agreement” is defined in the definition of Bank Services.

“Board” is Borrower’s board of directors or equivalent governing body.

“Borrower” is set forth on Schedule I hereto.

“Borrower’s Books” are all Borrower’s books and records including ledgers, federal and state tax returns, records regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information.

“Borrowing Resolutions” are, with respect to any Person, those resolutions adopted by such Person’s board of directors (and, if required under the terms of such Person’s Operating Documents, stockholders) and delivered by such Person to Agent approving the Loan Documents to which such Person is a party and the transactions contemplated thereby, together with a certificate executed by its secretary on behalf of such Person certifying (a) such Person has the authority to execute, deliver, and perform its obligations under each of the Loan Documents to which it is a party, (b) that set forth as a part of or attached as an exhibit to such certificate is a true, correct, and complete copy of the resolutions then in full force and effect authorizing and ratifying the execution, delivery, and performance by such Person of the Loan Documents to which it is a party, (c) the name(s) of the Person(s) authorized to execute the Loan Documents, including making (and executing if applicable) any Credit Extension request, on behalf of such Person, together with a sample of the true signature(s) of such Person(s), and (d) that Agent and Lenders may conclusively rely on such certificate unless and until such Person shall have delivered to Agent and Lenders a further certificate canceling or amending such prior certificate.

 “Business Day” is a day other than a Saturday, Sunday or other day on which commercial banks in the State of California are authorized or required by law to close, except that if any determination of a “Business Day” shall relate to an FX Contract, the term “Business Day” shall also mean a day on which dealings are carried on in the country of settlement of the Foreign Currency.

“Call Closing” is defined in Section 1.3(b).

“Call Notice” is defined in Section 1.3(b).

“Call Price” is defined in Section 1.3(a).

“Call Right” is defined in Section 1.3(a).

 “Cash Equivalents” are (a) marketable direct obligations issued or unconditionally guaranteed by the United States, or any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation or acquisition and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc.; (c) SVB’s certificates of deposit issued maturing no more than one (1) year after issue; and (d) money market funds at least 90.0% of the assets of which constitute Cash Equivalents of the kinds described in clauses (a) through (c) of this definition. 

“Cayman Islands Electronic Signature Law” is defined in Section 12.9.

“Change in Control” means (a) at any time, any “person” or “group” (as such terms are used in Sections 13(d) and 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 13(d)-3 and 13(d)‐5 under the Exchange Act), directly or indirectly, of 35.0% or more of the ordinary voting power for the election of directors, partners, managers and members, as applicable, of Borrower (determined on a fully diluted basis) other than by the sale of Borrower’s equity securities in a public offering or to venture capital or private equity investors so long as Borrower identifies to Agent and the Lenders the venture capital or private equity investors at least seven (7) Business Days prior to the closing of the transaction and provides to Agent and the Lenders a description of the material terms of the transaction; (b) during any period of 12 consecutive months, a majority of the members of the Board of Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body; or (c) at any time, Borrower shall cease to own and control, of record and beneficially, directly or indirectly, 100.0% of each class of outstanding stock, partnership, membership, or other ownership interest or other equity securities of each Subsidiary of Borrower (other than Subsidiaries formed in any jurisdictions in which Borrower is prohibited by law from owning 100.0% of the outstanding capital stock of such Subsidiary) free and clear of all Liens (except Permitted Liens).

 

 
38

“Change in Law” means the occurrence, after the Effective Date, of:  (a) the adoption or taking effect of any law, rule, regulation or treaty; (b) any change in Applicable Law or in the administration, interpretation, implementation or application thereof by any Governmental Authority; or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated by Agent or the Lenders 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 to be a “Change in Law”, regardless of the date enacted, adopted or issued.

“Claims” is defined in Section 12.3.

“Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of California; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Agent’s Lien on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State  of California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions.

 “Collateral” consists of all of Borrower’s right, title and interest in and to the following personal property:

(a)(i) all goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except as provided below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, securities accounts, securities entitlements and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and (ii) all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.

(b)Notwithstanding the foregoing, the Collateral does not include (i) any rights held under a license that are not assignable by their terms without the consent of the licensor thereof (but only to the extent such restriction on assignment is enforceable under applicable law); (ii) any interest of Borrower as a lessee under an Equipment lease if Borrower is prohibited by the terms of such lease from granting a security interest in such lease or 

 

 
39

under which such an assignment or Lien would cause a default to occur under such lease; provided, however, that upon termination of such prohibition, such interest shall immediately become Collateral without any action by Borrower or Agent; (iii) to the extent that Borrower has delivered written evidence, satisfactory to Agent in its sole discretion, that a pledge of Borrower’s equity in any Foreign Subsidiary would have a negative tax impact on Borrower, any equity interest in a Foreign Subsidiary in excess of a certain percentage (which shall be determined upon the receipt and review of such written evidence) of the total combined voting power of all classes of capital stock or similar equity interests of such Foreign Subsidiary which are entitled to vote; or (iv) any Intellectual Property; provided, however, the Collateral shall include all Accounts and all proceeds of Intellectual Property.  If a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Agent’s, for the ratable benefit of the Lenders, security interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property.

(c)Pursuant to the terms of a certain negative pledge arrangement with Agent and the Lenders, Borrower has agreed not to encumber any of its Intellectual Property without Agent and the Lenders’ prior written consent.

“Collateral Account” is any Deposit Account, Securities Account, or Commodity Account.

“Commitment” and “Commitments” means the Term Loan Commitment(s).

“Commodity Account” is any “commodity account” as defined in the Code with such additions to such term as may hereafter be made.

“Common Stock” means the common stock, $0.001 par value per share, of the Issuer, having the relative rights, powers, preferences and privileges set forth in the Issuer’s Certificate of Incorporation, as amended and/or restated and in effect from time to time; and any other class and/or series of capital stock or other security of the Issuer into or for which the outstanding shares of such common stock may from time to time be converted, exchanged or substituted in connection with any recapitalization or reorganization of the Issuer or reclassification of its equity securities.

“Compliance Statement” is that certain statement in the form attached hereto as Exhibit A.

“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

“Contingent Obligation” is, for any Person, any direct or indirect liability of that Person for (a) any direct or indirect guaranty by such Person of any indebtedness, lease, dividend, letter of credit, credit card or other obligation of another, (b) any other obligation endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (c) any obligations for undrawn letters of credit for the account of that Person; and (d) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary course of business.  The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement.

“Control Agreement” is any control agreement entered into among the depository institution at which Borrower maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Agent pursuant to which Agent for the benefit of Lenders obtains control (within the meaning of the Code) for the benefit of the Lenders over such Deposit Account, Securities Account, or Commodity Account.

 

 
40

“Conversion Notice” is defined in Section 1.2(b).

“Conversion Price” means a price per Conversion Share equal to $9.34, as such price may be adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like occurring after the Effective Date.

“Conversion Right” means the separately assignable right to elect a Voluntary Conversion of Associated Debt pursuant to and in accordance with the terms and conditions of Section 1.2.

 

“Conversion Right Holder” means each person or entity entitled to exercise the Conversion Right with respect to a specified amount of outstanding principal hereunder (including, but not limited to, the PIK Amount) and accrued interest thereon and to receive and/or designate the recipient(s) of the Conversion Shares issuable on any conversion.  Each Lender party making a Credit Extension hereunder shall be the original Conversion Right Holder with respect to the outstanding principal of such Credit Extension (including, without limitation, the PIK Amount) and the accrued and unpaid interest thereon.  The Conversion Right in respect of such Lender’s Credit Extension and the interest thereon may be assigned by such Lender, and by any assignee of such right, to any Person by execution and delivery to the Issuer of an assignment in substantially the form of Exhibit D-2 hereto.

“Conversion Shares” is defined in Section 1.2(a).

 “Copyrights” are any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret.

“Credit Extension” is the Term Loan Advance, Additional Term Loan Advance, or any other extension of credit by the Lenders for Borrower’s benefit.

“Currency” is coined money and such other banknotes or other paper money as are authorized by law and circulate as a medium of exchange.

“Default” means any event which with notice or passage of time or both, would constitute an Event of Default.

“Default Rate” is defined in Section 1.5(c).

“Defaulting Lender” is, subject to Section 9.12(b), any Lender that (a) has failed to (i) fund all or any portion of its Credit Extension within two (2) Business Days of the date such Credit Extension were required to be funded hereunder unless such Lender notifies Agent and Borrower in writing that such failure is the result of such Lender’s reasonable 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, or (ii) pay to Agent or any other Lender any other amount required to be paid by it hereunder within two (2) Business Days of the date when due, (b) has notified Borrower or Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Credit Extension hereunder and states that such position is based on such Lender’s reasonable 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 written request by Agent or Borrower, to confirm in writing to Agent and Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by Agent and Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of an Insolvency Proceeding, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United 

 

 
41

States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 9.12(b)) upon delivery of written notice of such determination to Borrower and each Lender.

“Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may hereafter be made.

“Designated Deposit Account” is the deposit account established by Borrower with SVB for purposes of receiving Credit Extensions.

“Disbursement Letter” is that certain form attached hereto as Exhibit C.

“Division” means, in reference to any Person which is an entity, the division of such Person into two (2) or more separate Persons, with the dividing Person either continuing or terminating its existence as part of such division, including, without limitation, as contemplated under Section 18-217 of the Delaware Limited Liability Company Act for limited liability companies formed under Delaware law, Section 17-220 of the Delaware Revised Uniform Limited Partnership Act for limited partnerships formed under Delaware law, or any analogous action taken pursuant to any other Applicable Law with respect to any corporation, limited liability company, partnership or other entity.

“Dollars,” “dollars” or use of the sign “$” means only lawful money of the United States and not any other currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted into lawful money of the United States.

“Dollar Equivalent” is, at any time, (a) with respect to any amount denominated in Dollars, such amount, and (b) with respect to any amount denominated in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Agent at such time on the basis of the then-prevailing rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency.

“Domestic Subsidiary” means a Subsidiary organized under the laws of the United States or any state or territory thereof or the District of Columbia.

“Draw Period” is set forth on Schedule I hereto.

“Effective Date” is set forth on Schedule I hereto.

“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 12.2 (subject to such consents, if any, as may be required thereunder).

“Environmental Laws” means any Applicable Law (including any permits, concessions, grants, franchises, licenses, agreements or governmental restrictions) relating to pollution or the protection of health, safety or the environment or the release of any materials into the environment (including those related to hazardous materials, air emissions, discharges to waste or public systems and health and safety matters).

“Equipment” is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing.

“ERISA” is the Employee Retirement Income Security Act of 1974, as amended, and its regulations.

“Erroneous Payment” has the meaning assigned to it in Section 9.13(a). 

“Erroneous Payment Deficiency Assignment” has the meaning assigned to it in Section 9.13(d). 

 

 
42

“Erroneous Payment Impacted Class” has the meaning assigned to it in Section 9.13(d). 

“Erroneous Payment Return Deficiency” has the meaning assigned to it in Section 9.13(d). 

“Erroneous Payment Subrogation Rights” has the meaning assigned to it in Section 9.13(d).

“Event of Default” is defined in Section 7.

“Exchange Act” is the Securities Exchange Act of 1934, as amended.

“Excluded Taxes” means any of the following Taxes imposed on or with respect to Lender or Agent or required to be withheld or deducted from a payment to a Lender or Agent, (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 Lender or Agent being organized under the laws of, or having its principal office or its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) 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 Credit Extension pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Credit Extensions or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 1.9, 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 Lender’s failure to comply with Section 1.9(a), and (d) any withholding Taxes imposed under FATCA.

“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 and implementing such Sections of the Internal Revenue Code.

“Federal Funds Effective Rate” means, for any day, the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for the day of such transactions received by SVB from three federal funds brokers of recognized standing selected by it.

“Financial Statement Repository” is Bank’s email address specified in Section 10 or such other means of collecting information approved and designated by Agent and each Lender after providing notice thereof to Borrower from time to time.

 “Foreign Currency” is the lawful money of a country other than the United States.

“Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary.

“Funding Date” is any date on which a Credit Extension is made to or for the account of Borrower which shall be a Business Day.

“FX Contract” is any foreign exchange contract by and between Borrower and SVB under which Borrower commits to purchase from or sell to SVB a specific amount of Foreign Currency at a set price or on a specified date.

“GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination.

 

 
43

“General Intangibles” is all “general intangibles”  as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all Intellectual Property, claims, income and other tax refunds, security and other deposits, payment intangibles, contract rights, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind.

“Governmental Approval” is any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority, including, without limitation, Healthcare Permits.

“Governmental Authority” is any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory organization.

“Group Member” means Borrower and its Subsidiaries.

“Guarantor” is any Person providing a Guaranty in favor of Agent and the Lenders.

“Guaranty” is any guarantee of all or any part of the Obligations, as the same may from time to time be amended, restated, modified or otherwise supplemented.

“Healthcare Laws” means all applicable laws relating to the operation or management of hospitalist practices, the provision of hospitalist services, proper billing and collection practices relating to the payment for healthcare services, insurance law (including law related to payment for “no-fault” claims) and workers compensation law as they relate to the provision of, and billing and payment for, healthcare services, patient healthcare, patient healthcare information, patient abuse, the quality and adequacy of rehabilitative care, rate setting, equipment, personnel, operating policies, fee splitting, including, without limitation, (a) all federal and state fraud and abuse laws, including, without limitation, the federal Anti-Kickback Statute (42 U.S.C. §1320a-7b(b)), the Stark Law (42 U.S.C. §1395nn), the civil False Claims Act (31 U.S.C. §3729 et seq.), the administrative False Claims Law (42 U.S.C. § 1320a-7b(a)), the Anti-Inducement Law (42 U.S.C. § 1320a-7a(a)(5)), the exclusion laws (42 U.S.C. § 1320a-7); (b) the Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act of 2009; (c) the Medicare Regulations and the Medicaid Program (Title XIX of the Social Security Act); (d) quality, safety and accreditation standards and requirements of all applicable state laws or regulatory bodies; (e) all laws, policies, procedures, requirements and regulations pursuant to which Healthcare Permits are issued; (f) any laws, regulations or administrative guidance with respect to fee splitting by healthcare professionals and the corporate practice of medicine in any jurisdiction in which any Borrower or any Guarantor operates; and (g) any and all comparable state or local laws and other applicable health care laws, regulations, manual provisions, policies and administrative guidance, each of (a) through (g) as may be amended from time to time and the regulations promulgated pursuant to each such law.

“Healthcare Permit” means, with respect to any Person, a permit issued or required under Healthcare Laws applicable to the business of Borrower or any Guarantor, or necessary in the possession, ownership, warehousing, marketing, promoting, sale, labeling, furnishing, distribution or delivery of goods or services under Healthcare Laws applicable to the business of Borrower or any Guarantor.

“HIPAA” means, collectively, the Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic Clinical Health (HITECKH) Act and the implementing regulations thereto.

 “Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, (d) Contingent Obligations and (e) other short- and long-term obligations under debt agreements, lines of credit and extensions of credit.

 

 
44

“Indemnified Person” is defined in Section 12.3.

“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 Borrower under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.

“Information” is defined in Section 12.8.

“Innovation” is defined in the preamble hereof

“Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, receivership or other relief.

“Intellectual Property” means, with respect to any Person, all of such Person’s right, title, and interest in and to the following:

(a)its Copyrights, Trademarks and Patents; 

(b)any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how and operating manuals;

(c)any and all source code;

(d)any and all design rights which may be available to such Person;

(e)any and all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified above; and

(f)all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents.

“Internal Revenue Code” means the U.S. Internal Revenue Code of 1986, and the rules and regulations promulgated thereunder, each as amended or modified from time to time.

“Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above.

“Investment” is any beneficial ownership interest in any Person (including stock, partnership, membership, or other ownership interest or other equity securities), and any loan, advance or capital contribution to any Person.

“Issuer” means Achieve Life Sciences, Inc., a Delaware corporation, and any successor thereto. 

 “Judgment Currency” is defined in Section 12.3.

“Key Person” is Borrower’s Chief Executive Officer, who is John Bencich as of the Effective Date. 

“Lender” and “Lenders” is defined in the preamble.

“Lender Entities” is defined in Section 12.8. 

 

 
45

“Lender Intercreditor Agreement” is, collectively, any and all intercreditor agreement, master arrangement agreement, subordination agreement or similar agreement by and between Innovation and SVB, as each may be amended from time to time in accordance with the provisions thereof. 

“Lenders’ Expenses” are all of Agent’s and the Lenders’ documented, out-of-pocket audit fees and expenses, costs, and reasonable and documented out-of-pocket expenses (including reasonable and documented attorneys’ fees and expenses) for preparing, amending, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to Borrower..

“Letter of Credit” is a standby or commercial letter of credit issued by SVB upon request of Borrower based upon an application, guarantee, indemnity, or similar agreement.

“Lien” is a claim, mortgage, deed of trust, levy, attachment charge, pledge, hypothecation, security interest or other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property.

“Loan Documents” are, collectively, this Agreement and any schedules, exhibits, certificates, notices, and any other documents related to this Agreement, the Perfection Certificate, Control Agreements, each Disbursement Letter, the Registration Rights Agreement, the Lender Intercreditor Agreement, any Bank Services Agreement, any subordination agreement, any note, or notes or guaranties executed by Borrower or any Guarantor, landlord waivers and consents, bailee waivers and consents, and any other present or future agreement by Borrower and/or any Guarantor with or for the benefit of Agent and the Lenders in connection with this Agreement or Bank Services, all as amended, restated, or otherwise modified in accordance with the terms thereof and the Lender Intercreditor Agreement.

“Lookback Period” means the twelve (12) month period commencing on the date of the Issuer’s payment of the Call Price to Agent.

“Mandatory Conversion” is defined in Section 1.2. 

“Material Adverse Change” is (a) a material impairment in the perfection or priority of Agent’s, for the ratable benefit of the Lenders, Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition (financial or otherwise) of Borrower; or (c) a material impairment of the prospect of repayment of any portion of the Obligations.

“Obligations” are Borrower’s obligations to pay when due any debts, principal (including the PIK Amount), interest, fees, Lenders’ Expenses, and other amounts Borrower owes Agent or any Lender now or later, whether under this Agreement, the other Loan Documents, or otherwise, including, without limitation, all obligations relating to Bank Services, any interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Agent and/or the Lenders, and to perform Borrower’s duties under the Loan Documents.

“OFAC” is the Office of Foreign Assets Control of the United States Department of the Treasury and any successor thereto.

“Operating Documents” are, for any Person, such Person’s formation documents, as certified by the Secretary of State (or equivalent agency) of such Person’s jurisdiction of organization on a date that is no earlier than 30 days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership or limited partnership, its partnership agreement or limited partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto.

“Original Lender” is defined in the definition of Required Lenders.

 

 
46

“Other Connection Taxes” means, with respect to Agent and the Lenders, Taxes imposed as a result of a present or former connection between Agent, Lenders and the jurisdiction imposing such Tax (other than connections arising from Agent and Lenders 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 Credit Extension or Loan Document).

“Other Taxes” means all present or future stamp, court, documentary, intangible, recording, filing or similar Taxes that arise 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, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment.

“Participant” is defined in Section 12.2(c).

“Participant Register” is defined in Section 12.2(c).

“Patents” means all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.

“Payment/Advance Form” is that certain form in the form attached hereto as Exhibit B.

“Payment Date” is set forth on Schedule I hereto.

“Payment Recipient” is defined in Section 9.13(a).

“Perfection Certificate” is the Perfection Certificate delivered by Borrower in connection with this Agreement.

“Permitted Credit Cards” is defined in clause (g) of the definition of Permitted Indebtedness. 

“Permitted Foreign Accounts” are defined in Section 5.7(a).

“Permitted Indebtedness” is:

(a)Borrower’s Indebtedness to Agent and the Lenders under this Agreement and the other Loan Documents;

(b)Indebtedness existing on the Effective Date which is shown on the Perfection Certificate;

(c)Subordinated Debt;

(d)unsecured Indebtedness to trade creditors incurred in the ordinary course of business; 

(e)Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business; 

(f)Indebtedness secured by Liens permitted under clauses (a), (c), and (m) of the definition of “Permitted Liens” hereunder; 

(g)Indebtedness consisting of corporate credit cards of Achieve Life Sciences Technologies Inc., an entity organized under the laws of Canada, maintained with US Bank (or such other financial institution providing credit cards in jurisdictions in which SVB and SVB’s Affiliates are not able to provide corporate credit cards) in an aggregate amount not to exceed $75,000.00 (“Permitted Credit Cards”);

 

 
47

(h)Indebtedness consisting of financing of insurance premiums in the ordinary course of business, provided such financing arrangement has been approved by Agent in writing (“Permitted Insurance Financing”);

(i)Indebtedness which consisting of Permitted Investments; 

(j)extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (i) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be; and

(k)other unsecured Indebtedness not otherwise permitted by Section 6.4 not to exceed $50,000.00 in the aggregate amount outstanding at any time.

“Permitted Insurance Financing” is defined in clause (h) of the definition of Permitted Indebtedness.

“Permitted Investments” are:

(a)Investments (including, without limitation, Subsidiaries) existing on the Effective Date which are shown on the Perfection Certificate; 

(b)Investments consisting of Cash Equivalents, and (ii) any Investments permitted by Borrower’s investment policy, as amended from time to time, provided that such investment policy (and any such amendment thereto) has been approved in writing by Agent; 

(c)Investments by (i) Borrower in its Subsidiaries (that are not a Borrower or Secured Guarantor) for ordinary, necessary and current operating expenses, so long as (A) an Event of Default does not exist at the time of any such Investment and would not exist after giving effect to any such Investment and (B) the maximum aggregate cash balance maintained with Borrower’s Subsidiaries shall not exceed the aggregate amount permitted to be maintained in the Permitted Foreign Accounts and Permitted RBC Accounts pursuant to the terms of Section 5.7(a) hereof; (ii) Borrower in another Borrower or Secured Guarantor; and (iii) Subsidiaries (that are not a Borrower or Secured Guarantor) in other Subsidiaries or in Borrower. 

(d)Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business;

(e)Investments consisting of deposit accounts (but only to the extent that Borrower is permitted to maintain such accounts pursuant to Section 5.7 of this Agreement) in which Agent, for the ratable benefit of the Lenders, has a first priority perfected security interest;

(f)Investments accepted in connection with Transfers permitted by Section 6.1;

(g)Investments consisting of transactions permitted by Section 6.8; 

(h)Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers, directors, partners, managers and members relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee equity purchase plans or similar agreements approved by the Board;

(i)Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business;

(j)Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph (i) shall not apply to Investments of Borrower in any Subsidiary; and

 

 
48

(k)other Investments not otherwise permitted by Section 6.7 not exceeding $200,000.00 in the aggregate in any fiscal year.

“Permitted Liens” are:

(a)Liens existing on the Effective Date which are shown on the Perfection Certificate or arising under this Agreement or the other Loan Documents;

(b)Liens for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being contested in good faith and for which Borrower maintains adequate reserves on Borrower’s Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code;

(c)purchase money Liens (i) on Equipment acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no more than $200,000.00 in the aggregate amount outstanding, or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment; 

(d)Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of Default under Sections 7.4 and 7.7;

(e)easements, rights-of-way, restrictions and other similar encumbrances affecting real property which, in the aggregate, are not substantial in amount, and which do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person;

(f)Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course of business so long as such Liens attach only to Inventory, securing liabilities in the aggregate amount not to exceed $200,000.00 and which are not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto; 

(g)Liens arising from the filing of any precautionary financing statement on operating leases covering the leased property, to the extent such operating leases are permitted under this Agreement;

(h)customary Liens of any bank in connection with statutory, common law and contractual rights of setoff and recoupment with respect to any deposit account or securities account of Borrower, provided that (i) Bank has a first priority perfected security interest in such account to the extent required pursuant to Section 5.7 of this Agreement and (ii) such account is permitted to be maintained pursuant to Section 5.7 of this Agreement;

(i)Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA);

(j)leases or subleases of real property granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses or sublicenses of personal property (other than Intellectual Property) granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), if the leases, subleases, licenses and sublicenses do not prohibit granting Bank a security interest therein;

(k)non-exclusive licenses of Intellectual Property granted to third parties in the ordinary course of business and licenses of Intellectual Property that could not result in a legal transfer of title of the licensed property that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United States; 

 

 
49

(l)Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the important of goods; 

(m)(i) deposits, upfront payments and prepayments paid to contract research organizations and other similar third parties in the ordinary course of Borrower’s business, and (ii) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds, and other obligations of a like nature, in each case, in the ordinary course of Borrower’s business; provided that the aggregate amount pursuant to this clause (ii) does not exceed $200,000.00 at any time; 

(n)Liens on cash collateral accounts securing the Permitted Credit Cards in a maximum aggregate amount not to exceed $75,000.00; 

(o)Liens in connection Permitted Insurance Financing; and

(p)Liens incurred in the extension, renewal or refinancing of the Indebtedness secured by Liens described in (a) through (o), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase.

“Permitted RBC Accounts” are defined in Section 5.7(a).

“Permitted Repurchases” are defined in Section 6.7.

“Permitted US Bank Account” is defined in Section 5.7(a).

“Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency.

“PIK Amount” means, as of any date of determination, the amount of all interest accrued with respect to the Term Loan Advance that is required to be paid in kind by being added to the principal balance thereof in accordance with Sections 1.1.1 and 1.6 of this Agreement. 

“PIK Rate” is set forth on Schedule I hereto. 

“Positive Data Event” means that Borrower has delivered evidence to Agent, within 48 hours of disclosing such Positive Data to the Board, but in any event, prior to disclosure to the public by Borrower of such data, satisfactory to Agent in Agent’s sole but reasonable discretion, that Borrower has achieved Positive Data in Borrower’s ORCA-2 and ORCA-3 Phase 3 Studies.

“Positive Data” means achieving the primary endpoint for either the 6 or 12 week arm (as defined in Borrower’s clinical trial protocol dated March 8, 2021) of Borrower’s clinical trials with statistical significance, sufficient to advance clinical studies or filing of a new drug application with the FDA, and with a safety profile consistent with Borrower’s recent clinical data showing an overall favorable safety profile relative to other currently FDA approved oral therapies, which shall be reviewed in consultation with Borrower, and in each case as determined by Agent in its sole but reasonable discretion.

“Price Event” means the first date (if any) on which the closing price per share of Common Stock on the principal stock exchange, market or inter-dealer quotation system on which shares of Common Stock are then traded is equal to or greater than $24.00 for the thirty (30) consecutive trading days prior to such date.

“Primary Conversion Limit” means 1,889,763 shares of Common Stock, as such number may be adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like occurring after the Effective Date.

“Prime Rate” is set forth on Schedule I hereto. 

 

 
50

“Prime Rate Margin” is set forth on Schedule I hereto.

“Pro Rata Share” is, as of any date of determination, with respect to each Lender, a percentage (expressed as a decimal, rounded to the ninth decimal place) determined by dividing the outstanding principal amount of the Credit Extension held by such Lender by the aggregate outstanding principal amount of the Credit Extension.

“Receiver” is defined in Section 8.1(l).

“Register” is defined in Section 9.11.

“Registered Organization” is any “registered organization” as defined in the Code with such additions to such term as may hereafter be made.

“Registration Rights Agreement” means that certain Registration Rights Agreement dated as of the Effective Date among the Issuer and the Lenders, as amended and in effect from time to time.

“Removal Effective Date” is defined in Section 9.12(d).

“Representatives” is defined in Section 12.8.

“Required Lenders” means:

	
(a)
	
at any time SVB and Innovation are the only Lenders, Lenders holding a majority of the Obligations; or

	
(b)
	
at any time multiple Lenders have advanced Credit Extensions or have Term Loan Commitments, at least two Lenders who hold more than a majority of the sum of (i) the aggregate unpaid principal amount of the Credit Extensions then outstanding and (ii) the aggregate Term Loan Commitments then in effect; provided that (x) a Lender and its Affiliates shall be deemed one Lender and (y) for so long as a Lender on the Effective Date (each an “Original Lender”) has not assigned or transferred any of its interests in their Credit Extensions other than to an Affiliate of such Lender, such Original Lender shall be a Required Lender; and

	
(c)
	
at any time only one Lender has outstanding Credit Extensions and Term Loan Commitments, “Required Lenders” means such Lender; provided that no Defaulting Lender shall at any time be included in the determination of “Required Lenders”.

“Responsible Officer” is any of the Chief Executive Officer, President, Chief Financial Officer, Treasurer, Chief Accounting Officer and Controller of Borrower.

“Restricted License” is any material license or other material agreement with respect to which Borrower is the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property, or (b) for which a default under or termination of could interfere with Agent’s right to sell any Collateral.  Off-the-shelf software, open source code, application programming interfaces (APIs) and/or other trademarks, copyrights or patents or similar proprietary rights of others that are commercially available to the public under shrink wrap licenses, clickwrap licenses, online terms of service or other terms of use or similar agreements in the ordinary course of business shall not constitute a Restricted License.

“Sanctioned Person” means a Person that: (a) is listed on any Sanctions list maintained by OFAC or any similar Sanctions list maintained by any other Governmental Authority having jurisdiction over Borrower; (b) is located, organized, or resident in any country, territory, or region that is the subject or target of Sanctions; or (c) is 50.0% or more owned or controlled by one (1) or more Persons described in clauses (a) and (b) hereof.

“Sanctions” means the economic sanctions laws, regulations, embargoes or restrictive measures administered, enacted or enforced by the United States government and any of its agencies, including, without 

 

 
51

limitation, OFAC and the U.S. State Department, or any other Governmental Authority having jurisdiction over Borrower.

“SEC” is the Securities and Exchange Commission, any successor thereto, and any analogous Governmental Authority.

“Secured Guarantor” is a Guarantor which has granted Agent a first-priority Lien in such assets of the Guarantor consistent with the description of the Collateral hereunder (as if the Collateral were deemed to pertain to such Guarantor), and has executed and delivered to Agent such agreements, certificates and other documents in connection with the foregoing as reasonably required by Agent.

“Secondary Conversion Limit” means, as of any date, 19.99% of the Issuer’s then-total issued and outstanding shares of Common Stock.

 “Securities Account” is any “securities account” as defined in the Code with such additions to such term as may hereafter be made.

“Securities Act” means the Securities Act of 1933, as amended, or any successor statute.

“Subordinated Debt” is indebtedness incurred by Borrower or any of its Subsidiaries subordinated to all of Borrower’s or any of its Subsidiaries’ now or hereafter indebtedness to Agent and the Lenders (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Agent and the Lenders, entered into between Agent, the Lenders and the other creditor), on terms acceptable to Agent and the Lenders.

 “Subsidiary” is, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock, partnership, membership, or other ownership interest or other equity securities having ordinary voting power (other than stock, partnership, membership, or other ownership interest or other equity securities having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person.  Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower or Guarantor.

“SVB” is defined in the preamble hereof.

“SVBFG Conversion Shares” is defined in Section 1.2(f).

“SVBFG Other Shares” is defined in Section 1.2(f).

“Taxes” means 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.

“Term Loan Advance” is defined in Section 1.1.1 of this Agreement. 

“Term Loan Availability Amount” is set forth on Schedule I hereto.

“Term Loan Commitment” means, for any Lender, the obligation of such Lender to make the Term Loan Advance and/or the Additional Term Loan Advance as and when available, up to the principal amount shown on Schedule II. 

“Term Loan Commitments” means the aggregate amount of such commitments of all Lenders.

“Term Loan Commitment Percentage” means, as to any Lender at any time, the percentage (carried out to the fourth decimal place) of the Term Loan Commitments represented by such Lender’s Term Loan Commitment at 

 

 
52

such time.  The initial Term Loan Commitment Percentage of each Lender is set forth opposite the name of such Lender on Schedule II.

“Term Loan Maturity Date” is set forth on Schedule I hereto.

“Trademarks” means, with respect to any Person, any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of such Person connected with and symbolized by such trademarks.

“Transfer” is defined in Section 6.1. 

“USA Patriot Act” means the “Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001” (Public Law 107-56, signed into law on October 26, 2001), as amended from time to time.

“Voluntary Conversion” is defined in Section 1.2.

 [Signature page follows]

 

 

 
53

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Effective Date.

 

BORROWER:

 

Achieve Life Sciences, INC.

 

By: __/s/ John Bencich_________________________

 

Name: John Bencich

 

Title: Chief Executive Officer

 

 

AGENT:

 

SILICON VALLEY BANK, as Agent

 

 

By: __/s/ Peter Sletteland__________________________

 

Name: Peter Sletteland

 

Title: Director

 

 

LENDERS:

 

SILICON VALLEY BANK, as Lender 

 

 

By: __/s/ Peter Sletteland__________________________

 

Name: Peter Sletteland

 

Title: Director

 

 

 

SVB INNOVATION CREDIT FUND VIII, L.P., as Lender

By: SVB Innovation Credit Partners VIII, LLC, a Delaware limited liability company, its General Partner

 

 

By: __/s/ Ryan Grammer__________________________

Name: Ryan Grammer 

Title: Senior Managing Director

 

 

 
Signature Page to 2021 Contingent Convertible Debt Agreement

 

SCHEDULE I

LSA PROVISIONS

 

		
	
LSA Section
	
LSA Provision

	
1.1.1(a) – Term Loan – Availability
	
After repayment, the Term Loan Advance (or any portion thereof) may not be reborrowed.

	
1.1.2 – Additional Term Loan Advance.
	
Upon the occurrence (if any) of the Additional Term Loan Event, Borrower, Agent, and the Lenders shall enter into a written amendment to this Agreement (on terms and in form and substance satisfactory to Borrower, Agent and the Lenders) with respect to the terms of the Additional Term Loan Advance.

	
1.5(a) – Interest Payments – Term Loan Advance
	
Interest on the principal amount of the Term Loan Advance (including the PIK Amount) is payable in arrears monthly (A) on each Payment Date commencing on the first Payment Date following the Funding Date of the Term Loan Advance, (B) on the date of any prepayment and (C) on the Term Loan Maturity Date. In addition, any portion of interest on the outstanding principal amount of the Term Loan Advance accruing at the PIK Rate shall be paid-in-kind by being added to the outstanding principal amount of the Term Loan Advance and any such interest so paid-in-kind shall be deemed capitalized on the 1st Payment Date of each month, and thereafter, the Term Loan Advance shall bear interest at the aggregate rate as provided hereunder as if the PIK Amount had originally been part of the outstanding principal of the Term Loan Advance. 

	
1.5(b) – Interest Rate – Term Loan Advance
	
The outstanding principal amount of the Term Loan Advance (including the PIK Amount) shall accrue interest at the aggregate of (a) a floating rate per annum equal to the greater of (i) 2.25%, and (ii) the Prime Rate minus the Prime Rate Margin, which interest shall be payable in accordance with Section 1.5(a), plus (b) the PIK Rate, compounded monthly, and payable on the earlier to occur of (x) the Term Loan Maturity Date, or (y) the date the Associated Debt is converted into Common Stock pursuant to Section 1.2.

	
1.5(e) – Interest Computation
	
Interest shall be computed on the basis of the actual number of days elapsed and a 360-day year.

	
13.2 – “Additional Term Loan Advance”
	
“Additional Term Loan Event” occurs if and when (if ever) Bank confirms in writing, on or prior to December 31, 2022, that: (a) Borrower has requested the Additional Term Loan Advance, (b) Agent and each Lender have received all necessary internal and credit approvals to make a Additional Term Loan Advance, and (c) no Event of Default exists at the time the requested Additional Term Loan Advance or would exist as a result of the Additional Term Loan Advance.

	
13.2 – “Additional Term Loan Availability Amount”
	
“Additional Term Loan Availability Amount” is an original principal amount equal to $10,000,000.00.

	
13.2 – “Borrower”
	
“Borrower” means Achieve Life Sciences, INC., a Delaware corporation.

	
13.2 – “Effective Date”
	
“Effective Date” is December 22, 2021. 

	
13.2 – “Payment Date”
	
“Payment Date” is the first (1st) calendar day of each month.

	
13.2 – “PIK Rate”
	
“PIK Rate” means 7.0% per annum.

I-1

		
	
13.2 – “Prime Rate”
	
“Prime Rate” is the rate of interest per annum from time to time published in the money rates section of The Wall Street Journal or any successor publication thereto as the “prime rate” then in effect; provided that if such rate of interest, as set forth from time to time in the money rates section of The Wall Street Journal, becomes unavailable for any reason as determined by Agent, the “Prime Rate” shall mean the rate of interest per annum announced by Agent as its prime rate in effect at its principal office in the State of California (such Agent announced Prime Rate not being intended to be the lowest rate of interest charged by Agent in connection with extensions of credit to debtors); provided that, in the event such rate of interest is less than zero percent (0.0%) per annum, such rate shall be deemed to be zero percent (0.0%) per annum for purposes of this Agreement.

	
13.2 – “Prime Rate Margin”
	
“Prime Rate Margin” is 1.0%, as determined on the basis of and adjusted promptly upon the receipt of Borrower’s most recent financial statements provided pursuant to Section 5.3(a).

	
13.2 – “Term Loan Availability Amount”
	
“Term Loan Availability Amount” is an original principal amount equal to $15,000,000.00.

	
13.2 – “Term Loan Maturity Date”
	
“Term Loan Maturity Date” is (a) December 22, 2023, which shall be extended to (b) December 22, 2024 upon the occurrence of both (i) Borrower’s written request and (ii) Agent’s confirmation in writing on or prior to December 22, 2024 that Agent agrees to extend the Term Loan Maturity Date, in Agent’s and the Lenders’ sole and absolute discretion, subject to Agent and each Lender’s receipt of all necessary internal and credit approvals for such extension and provided that no Event of Default exists at the time the requested extension is to go into effect.

 

I-2

 

 

 

 

Schedule II

LENDERS AND COMMITMENTS

 

TERM LOAN COMMITMENTS

 

Term Loan Advance

			
	
Lender
	
Term Loan Commitment
	
Term Loan Advance Commitment Percentage

	
Silicon Valley Bank
	
 

$11,250,000.00
	
 

75.0%

	
SVB Innovation Credit Fund VIII, L.P.
	
 

$3,750,000.00
	
 

25.0%

	
TOTAL
	
$15,000,000.00
	
100.0000%

 

Additional Term Loan Advance

			
	
Lender
	
Term Loan Commitment
	
Term Loan Commitment Percentage

	
Silicon Valley Bank
	
 

$7,500,000.00
	
 

75.0%

	
SVB Innovation Credit Fund VIII, L.P. 
	
 

$2,500,000.00
	
 

25.0%

	
TOTAL
	
$10,000,000.00
	
100.0000%

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT A

COMPLIANCE STATEMENT

 

Date:  

 

TO:SILICON VALLEY BANK, as Agent, SVB, and SVB Innovation Credit Fund VIII, L.P., as Lender

FROM:  ACHIEVE LIFE SCIENCES, INC.

 

 

Under the terms and conditions of the 2021 Contingent Convertible Debt Agreement among Borrower, SVB and Innovation (as amended, modified, supplemented and/or restated from time to time, the “Agreement”), Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below.  Attached are the required documents evidencing such compliance, setting forth calculations prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes.  Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.

			
	
Please indicate compliance status by circling Yes/No under “Complies” column.

	
 

	
Reporting Covenants
	
Required
	
Complies

	
 
	
 
	
 

	
Monthly financial statements with 
Compliance Statement
	
Monthly within 30 days (except for the 

months ending March 31, June 30, September 30, and December 31)
	
Yes   No

	
Quarterly financial statements with Compliance Statement
	
Q1, Q2, and Q3 within 45 days
	
Yes   No

	
10-Q Report
	
Within 45 days of Q1, Q2, and Q3 
	
Yes   No

	
10-K Report and Annual financial statements (CPA Audited)
	
FYE within 90 days
	
Yes   No

	
Board approved projections
	
FYE within 30 days and as amended/updated
	
Yes   No

	
Filed 10-Q, 10-K and 8-K
	
Within 10 days after filing with 

SEC
	
Yes   No

	
 

 

Positive Data Event:

 

Has Borrower achieved Positive Data?

 

Yes ______   No ________   N/A _______

 

The following are the exceptions with respect to the statements above: (If no exceptions exist, state “No exceptions to note.”)

 

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

 

 

EXHIBIT B

LOAN PAYMENT/ADVANCE REQUEST FORM

Deadline for same day processing is Noon Pacific Time

 

Date: _____________________

 

Loan Payment:ACHIEVE LIFE SCIENCES, INC.

 

From Account #________________________________To Account #__________________________________________

(Deposit Account #)(Loan Account #)

Principal $____________________________________and/or Interest $________________________________________

 

Authorized Signature:Phone Number: 

Print Name/Title: 

 

Loan Advance:

 

Complete Outgoing Wire Request section below if all or a portion of the funds from this loan advance are for an outgoing wire.

 

From Account #________________________________To Account #__________________________________________

(Loan Account #)(Deposit Account #)

 

Amount of Term Loan Advance $___________________________

 

All Borrower’s representations and warranties in the 2021 Contingent Convertible Debt Agreement are true, correct and complete in all material respects on the date of the request for an advance; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true and correct in all material respects as of such date:

 

Authorized Signature:Phone Number: 

Print Name/Title: 

 

Outgoing Wire Request:

Complete only if all or a portion of funds from the loan advance above is to be wired.

Deadline for same day processing is noon, Pacific Time 

 

Beneficiary Name: _____________________________Amount of Wire: $

Beneficiary Bank: ______________________________Account Number: 

City and State: 

 

Beneficiary Bank Transit (ABA) #: Beneficiary Bank Code (Swift, Sort, Chip, etc.): 

(For International Wire Only)

 

Intermediary Bank: Transit (ABA) #: 

For Further Credit to: 

 

Special Instruction: 

 

By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be processed in accordance with and subject to the terms and conditions set forth in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by me (us).

 

 

Authorized Signature: ___________________________2nd Signature (if required): _______________________________

Print Name/Title: ______________________________Print Name/Title: ______________________________________

Telephone #: Telephone #: _____________________________

 
">

Exhibit C

 

Form of Disbursement Letter

[see attached]

 

 

 

DISBURSEMENT LETTER 

[DATE]

The undersigned, being the duly elected and acting [] of (a) Achieve Life Sciences, INC., a Delaware corporation (“Borrower”), does hereby certify to (b) SILICON VALLEY BANK, a California corporation (“SVB”), in its capacity as administrative agent and collateral agent (“Agent”), (c) SILICON VALLEY BANK, a California corporation, as a lender, (d) SVB INNOVATION CREDIT FUND VIII, L.P., a Delaware limited partnership (“SVB Innovation Fund”), as a lender (SVB and SVB Innovation Fund and each of the other “Lenders” from time to time a party hereto are referred to herein collectively as the “Lenders” and each individually as a “Lender”) in connection with that certain 2021 Contingent Convertible Debt Agreement dated as of [_________], by and among Borrower, Agent and the Lenders from time to time party thereto (the “Agreement”; with other capitalized terms used below having the meanings ascribed thereto in the Agreement) that:

1.The representations and warranties made by Borrower in Section 4 of the Agreement and in the other Loan Documents are true and correct in all material respects as of the date hereof.

 

2.No event or condition has occurred that would constitute an Event of Default under the Agreement or any other Loan Document.

 

3.Borrower is in compliance with the covenants and requirements contained in Sections 3, 5 and 6 of the Agreement.

 

4.All conditions referred to in Section 2 of the Agreement to the making of a Credit Extension to be made on or about the date hereof have been satisfied or waived by Agent.

 

5.No Material Adverse Change has occurred.

 

6.The undersigned is an Authorized Signer.

 

 

[Balance of Page Intentionally Left Blank]

 

 

 

	
7A.
	
The proceeds of the Term Loan Advance shall be disbursed as follows:

 

		
	
Disbursement from SVB:
	
 

	
Loan Amount
	
$_______________

	
Plus:
	
 

	
‐‐Deposit Received
	
$__________

	
 
	
 

	
Less:
	
 

	
--Lender’s Legal Fees
	
($_________)*

	
 
	
 

	
Net Proceeds due from SVB:
	
$_______________ 

	
 
	
 

	
Disbursement from Innovation:
	
 

	
Loan Amount
	
$_______________

	
Plus:
	
 

	
‐‐Deposit Received
	
$__________

	
 
	
 

	
Less:
	
 

	
‐‐Commitment Fee
	
($_________)

	
 
	
 

	
Net Proceeds due from Innovation:
	
$_______________ 

	
 
	
 

	
Loan Amount
	
$_______________

	
Plus:
	
 

	
--Deposit Received
	
$__________

	
 
	
 

	
Less:
	
 

	
--Commitment Fee
	
($_________)

	
 
	
 

	
Net Proceeds due from Agent
	
$_____________

	
 
	
 

	
TOTAL TERM LOAN ADVANCE NET PROCEEDS FROM LENDERS
	
$_______________ 

	
 
	
 

	
 
	
 

 

	
7B.
	
Funds from Borrower Designated Deposit Account shall be disbursed as follows:

 

		
	
SVB:
	
 

	
 

Term Loan Fees
	
$_______________

	
Lender’s Legal Fees
	
$_______________

 

 

	
Innovation: Designated Deposit Account:____________________

 
	
 

	
Term Loan Fees
	
$_______________

	
Funds due from Borrower (“Total Funds”)
	
$_______________ 

	
 
	
 

 

[Balance of Page Intentionally Left Blank]

 

5

 

 

 

 

	
8A.
	
The aggregate net proceeds of the Term Loan Advance shall be transferred to the Designated Deposit Account as follows:

 

 

		
	
Account Name:
	
____________________________________

	
Bank Name:
	
Silicon Valley Bank

	
Bank Address:
	
3003 Tasman Drive
Santa Clara, California 95054

	
Account Number:
	
____________________________________

	
ABA Number:
	
____________________________________

 

 

	
8B.
	
Borrower authorized SVB to debit the Total Funds from the Designated Deposit Account set forth below:

 

 

		
	
Account Name:
	
____________________________________

	
Bank Name:
	
Silicon Valley Bank

	
Bank Address:
	
3003 Tasman Drive
Santa Clara, California 95054

	
Account Number:
	
____________________________________

	
ABA Number:
	
____________________________________

 

 

 

 

6

 

 

 

Dated as of the date first set forth above.

 

BORROWER:

 

Achieve Life Sciences, INC.

 

By: _______________________________________

 

Name: _____________________________________

 

Title: ______________________________________

 

 

 

 

AGENT:

 

SILICON VALLEY BANK, as Agent

 

 

By: _______________________________________

 

Name: _____________________________________

 

Title: ______________________________________

 

 

 

LENDERS:

 

SILICON VALLEY BANK, as Lender 

 

 

By: _______________________________________

 

Name: _____________________________________

 

Title: ______________________________________

 

 

 

SVB INNOVATION CREDIT FUND VIII, L.P., as Lender

By: SVB Innovation Credit Partners VIII, LLC, a Delaware limited liability company, its General Partner

 

 

By________________________________________

Name: _____________________________________ 

Title: ______________________________________

 

 

7

 

 

 

EXHIBIT D-1

 

Form of Conversion Notice

[Date]

 

[Name of Issuer]

[Issuer Address]

 

 

Reference is made to that certain [2021 Contingent Convertible Debt Agreement] dated ________ among [Name(s) of Borrower(s)], Silicon Valley Bank, SVB Innovation Credit Fund VIII, L.P. and the other parties thereto, as amended (the “Loan Agreement”).  Capitalized terms used herein and not otherwise defined shall have the respective meanings given in the Loan Agreement.

 

(1)The undersigned Conversion Right Holder hereby elects to convert into shares of Common Stock of the above-named Issuer, pursuant to and in accordance with the provisions of the Loan Agreement set forth in Section 2.2 thereof:

 

______All of the Associated Debt; or

 

______$_________ of the outstanding principal of the Associated Debt, and

 

$_________ in accrued and unpaid interest thereon.

 

at a Conversion Price of $____, for a total of ____________ Conversion Shares.

 

The Conversion Shares shall be issued to and in the name(s) of the following recipients:

 

Recipient Name and AddressNumber of Conversion Shares

 

___________________________________________________

 

______________________

 

______________________

 

______________________

 

___________________________________________________

 

______________________

 

______________________

 

______________________

 

 

 

 

 

(2)Each of the above-named recipients hereby makes the following representations and warranties to the Issuer as of the date hereof:

 

(a)It is acquiring the Conversion Shares for investment for its account, not as a nominee or agent, and not with a view to the resale or distribution thereof in violation of applicable federal and state securities laws.  Such recipient has not been formed for the specific purpose of acquiring the Conversion Shares.

 

(b)Such recipient is aware of the Issuer’s business affairs and financial condition and has received or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect to the acquisition of the Conversion Shares.  Such recipient further has had an opportunity to ask questions and receive answers from the Issuer regarding the terms and conditions of the offering of the Conversion Shares and to obtain additional information (to the extent the Issuer possessed such information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to such recipient or to which such recipient has access.

 

(c)Such recipient understands that the acquisition of the Conversion Shares involves substantial risk.  Such recipient has experience as an investor in securities of companies at a similar stage of development to the Issuer and acknowledges; has such knowledge and experience in financial or business matters that such recipient is capable of evaluating the merits and risks of its investment in the Conversion Shares and/or has a preexisting personal or business relationship with the Issuer and certain of its officers, directors or controlling persons of a nature and duration that enables such recipient to be aware of the character, business acumen and financial circumstances of such persons; and can bear the economic risk of its investment in the Conversion Shares.

 

(d)Such recipient understands that the Conversion Shares have not been registered under the Securities Act of 1933, as amended (the “Act”) in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of such recipient’s investment intent as expressed herein.  Such recipient understands that the Conversion Shares must be held indefinitely unless subsequently registered under the Act and qualified under applicable state securities laws, or unless exemption from such registration and qualification are otherwise available.  Such recipient is aware of the provisions of Rule 144 promulgated under the Act.

 

(e)Such recipient is an “accredited investor” within the meaning of Regulation D promulgated under the Act.

 

 

 

IN WITNESS WHEREOF, the undersigned have duly executed this Conversion Notice as of the date first above written.

 

Conversion Right Holder:

 

[NAME]

 

 

By: ____________________________

Name:

Title:

 

 

Holder of Associated Debt 

(if different from Conversion Right Holder)

 

[NAME]

 

 

By: ____________________________

Name:

Title:

 

 

Recipient(s) of Conversion Shares

(if different from or in addition to

Conversion Right Holder:

 

 

_______________________________

 

_______________________________

 

 

 

 

 

 

EXHIBIT D-2

 

Form of Assignment of Conversion Right 

 

 

Reference is made to that certain [2021 Contingent Convertible Debt Agreement] dated ________ among [Name(s) of Borrower(s)], Silicon Valley Bank , SVB Innovation Credit Fund VIII, L.P. and the other parties thereto, as amended (the “Loan Agreement”).  Capitalized terms used herein and not otherwise defined shall have the respective meanings given in the Loan Agreement.

 

For good and valuable consideration, the undersigned Assignor, being the present Conversion Right Holder in respect of the Associated Debt held by ___________________, hereby assigns and transfers unto _______________________ (“Assignee”), all of Assignor’s right, title and interest in and to the right to convert such Associated Debt into Conversion Shares in accordance with the provisions of Section 2.2 of the Loan Agreement, and Assignee hereby acknowledges and accepts such assignment and transfer of such rights from Assignor.

 

 

 

Date: _______________

 

Assignor:

 

_________________________________

 

 

By: ____________________________

Name:

Title:

 

 

Assignee:

 

_________________________________

 

 

By: ____________________________

Name:

Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}]]