Document:

EXHIBIT
10.28

    

    EXECUTION
VERSION

     

    DEBTOR-IN-POSSESSION
GUARANTY AND COLLATERAL AGREEMENT

     

    DATED
AS OF

    OCTOBER
6, 2009

     

    MADE
BY

     

    AURORA
OIL & GAS CORPORATION

     

    AND

     

    EACH
OF THE OTHER OBLIGORS PARTY HERETO

     

    IN
FAVOR OF

     

    BNP
PARIBAS,

     

    AS
ADMINISTRATIVE AGENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

     

    
      
        
          
            
              	 
      	 
      	 
      	
                      Page

                    
	 	 	 	 
	
                      ARTICLE
      I

                    	
                      Definitions

                    	 
      	
                      1

                    
	
                      Section
      1.01.

                    	
                      Definitions.

                    	 
      	
                      1

                    
	
                      Section
      1.02.

                    	
                      Other
      Definitional Provisions

                    	 
      	
                      4

                    
	
                      Section
      1.03.

                    	
                      Rules
      of Interpretation

                    	 
      	
                      4

                    
	 
      	 
      	 
      	 
      
	
                      ARTICLE
      II

                    	
                      Guarantee

                    	 
      	
                      5

                    
	
                      Section
      2.01.

                    	
                      Guarantee.

                    	 
      	
                      5

                    
	
                      Section
      2.02.

                    	
                      Right
      of Contribution

                    	 
      	
                      5

                    
	
                      Section
      2.03.

                    	
                      No
      Subrogation

                    	 
      	
                      6

                    
	
                      Section
      2.04.

                    	
                      Amendments,
      Etc. with Respect to the Borrower Obligations

                    	 
      	
                      6

                    
	
                      Section
      2.05.

                    	
                      Waivers

                    	 
      	
                      6

                    
	
                      Section
      2.06.

                    	
                      Guarantee
      Absolute and Unconditional.

                    	 
      	
                      7

                    
	
                      Section
      2.07.

                    	
                      Reinstatement

                    	 
      	
                      8

                    
	
                      Section
      2.08.

                    	
                      Payments

                    	 
      	
                      8

                    
	 
      	 
      	 
      	 
      
	
                      ARTICLE
      III

                    	
                      Grant
      of Security Interest

                    	 
      	
                      8

                    
	
                      Section
      3.01.

                    	
                      Grant
      of Security Interest

                    	 
      	
                      8

                    
	
                      Section
      3.02.

                    	
                      Pre-Petition
      First Lien Administrative Agent acting as Bailee; Transfer of Pledged
      Securities.

                    	 
      	
                      10

                    
	
                      Section
      3.03.

                    	
                      Priority

                    	 
      	
                      10

                    
	 
      	 
      	 
      	 
      
	
                      ARTICLE
      IV

                    	
                      Representations
      and Warranties

                    	 
      	
                      11

                    
	
                      Section
      4.01.

                    	
                      Representations
      in Credit Agreement

                    	 
      	
                      11

                    
	
                      Section
      4.02.

                    	
                      Title;
      No Other Liens

                    	 
      	
                      11

                    
	
                      Section
      4.03.

                    	
                      Perfected
      First Priority Liens

                    	 
      	
                      11

                    
	
                      Section
      4.04.

                    	
                      Obligor
      Information

                    	 
      	
                      11

                    
	
                      Section
      4.05.

                    	
                      Pledged
      Securities.

                    	 
      	
                      12

                    
	
                      Section
      4.06.

                    	
                      Benefit
      to the Guarantor

                    	 
      	
                      12

                    
	
                      Section
      4.07.

                    	
                      Obligor
      Accounts

                    	 
      	
                      12

                    
	
                      Section
      4.08.

                    	
                      Perfection

                    	 
      	
                      12

                    
	 
      	 
      	 
      	 
      
	
                      ARTICLE
      V

                    	
                      Covenants

                    	 
      	
                      13

                    
	
                      Section
      5.01.

                    	
                      Covenants
      in Credit Agreement

                    	 
      	
                      13

                    
	
                      Section
      5.02.

                    	
                      Maintenance
      of Perfected Security Interest; Further Documentation

                    	 
      	
                      13

                    
	
                      Section
      5.03.

                    	
                      Changes
      in Locations, Name, Etc

                    	 
      	
                      14

                    
	
                      Section
      5.04.

                    	
                      Pledged
      Securities

                    	 
      	
                      14

                    
	
                      Section
      5.05.

                    	
                      Obligor
      Accounts.

                    	 
      	
                      16

                    
	 
      	 
      	 
      	 
      
	
                      ARTICLE
      VI

                    	
                      Remedial
      Provisions

                    	 
      	
                      17

                    
	
                      Section
      6.01.

                    	
                      Code
      and Other Remedies.

                    	 
      	
                      17

                    
	
                      Section
      6.02.

                    	
                      Pledged
      Securities.

                    	 
      	
                      17

                    
	
                      Section
      6.03.

                    	
                      [Reserved].

                    	 
      	
                      20

                    
	
                      Section
      6.04.

                    	
                      Private
      Sales of Pledged Securities.

                    	 
      	
                      20

                    
	
                      Section
      6.05.

                    	
                      Obligors
      to Hold in Trust; Collections, etc.

                    	 
      	
                      20

                    
	
                      Section
      6.06.

                    	
                      Waiver;
      Deficiency

                    	 
      	
                      21

                    

            

          

        

      

    

    
      
         

      

      
        - i
-

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  Section
      6.07.

                	
                  Non-Judicial
      Enforcement

                	 
      	
                  21

                
	 
      	 
      	 
      	 
      
	
                  ARTICLE
      VII

                	
                  The
      Administrative Agent

                	 
      	
                  21

                
	
                  Section
      7.01.

                	
                  Administrative
      Agent’s Appointment as Attorney-in-Fact, Etc.

                	 
      	
                  21

                
	
                  Section
      7.02.

                	
                  Duty
      of Administrative Agent

                	 
      	
                  23

                
	
                  Section
      7.03.

                	
                  Filing
      of Financing Statements

                	 
      	
                  23

                
	
                  Section
      7.04.

                	
                  Authority
      of Administrative Agent

                	 
      	
                  23

                
	 
      	 
      	 
      	 
      
	
                  ARTICLE
      VIII

                	
                  Subordination
      of Indebtedness

                	 
      	
                  23

                
	
                  Section
      8.01.

                	
                  Subordination
      of All Obligor Claims

                	 
      	
                  23

                
	
                  Section
      8.02.

                	
                  [Reserved].

                	 
      	
                  24

                
	
                  Section
      8.03.

                	
                  Payments
      Held in Trust

                	 
      	
                  24

                
	
                  Section
      8.04.

                	
                  Liens
      Subordinate

                	 
      	
                  24

                
	
                  Section
      8.05.

                	
                  Notation
      of Records

                	 
      	
                  24

                
	 
      	 
      	 
      	 
      
	
                  ARTICLE
      IX

                	
                  Miscellaneous

                	 
      	
                  24

                
	
                  Section
      9.01.

                	
                  Waiver

                	 
      	
                  24

                
	
                  Section
      9.02.

                	
                  Notices

                	 
      	
                  24

                
	
                  Section
      9.03.

                	
                  Payment
      of Expenses, Indemnities, Etc.

                	 
      	
                  25

                
	
                  Section
      9.04.

                	
                  Amendments
      in Writing

                	 
      	
                  25

                
	
                  Section
      9.05.

                	
                  Successors
      and Assigns

                	 
      	
                  25

                
	
                  Section
      9.06.

                	
                  Survival;
      Revival; Reinstatement.

                	 
      	
                  25

                
	
                  Section
      9.07.

                	
                  Counterparts;
      Integration; Effectiveness.

                	 
      	
                  26

                
	
                  Section
      9.08.

                	
                  Severability

                	 
      	
                  26

                
	
                  Section
      9.09.

                	
                  Set-Off

                	 
      	
                  27

                
	
                  Section
      9.10.

                	
                  Governing
      Law; Submission to Jurisdiction.

                	 
      	
                  27

                
	
                  Section
      9.11.

                	
                  Headings

                	 
      	
                  28

                
	
                  Section
      9.12.

                	
                  Acknowledgments

                	 
      	
                  28

                
	
                  Section
      9.13.

                	
                  Additional
      Obligors and Pledgors

                	 
      	
                  29

                
	
                  Section
      9.14.

                	
                  Releases.

                	 
      	
                  29

                
	
                  Section
      9.15.

                	
                  Acceptance

                	 
      	
                  30

                

        

      

    

    

    
      
        	
                ANNEXES:

              
	 
      
	
                I

              	
                Form
      of Assumption Agreement

              
	
                II

              	
                Form
      of Supplement

              
	
                EXHIBITS:

              
	 
      
	
                Exhibit
      A

              	
                Form
      of Acknowledgment and Consent

              
	 
      
	
                SCHEDULES:

              
	 
      
	
                1

              	
                Notice
      Addresses of Obligors

              
	
                2

              	
                Description
      of Pledged Securities

              
	
                3

              	
                Location
      of Jurisdiction of Organization and Chief Executive
  Office

              
	
                4

              	
                Obligor
      Accounts

              

      

    

    
      
         

      

      
        - ii
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    This
DEBTOR-IN-POSSESSION GUARANTY AND COLLATERAL AGREEMENT is dated as of October 6,
2009 made by Aurora Oil & Gas Corporation, a Utah corporation and a
debtor-in-possession under Chapter 11 of the Bankruptcy Code (the “Borrower”), Hudson
Pipeline & Processing Co. L.L.C., a Michigan limited liability company and a
debtor-in-possession under Chapter 11 of the Bankruptcy Code (“Hudson”), and any
other signatories hereto (Hudson and Borrower, together with any other
Subsidiary of the Borrower that becomes a party hereto from time to time after
the date hereof, are referred to herein collectively as the “Obligors”), in favor
of BNP Paribas, as administrative agent (in such capacity, together with its
successors in such capacity, the “Administrative
Agent”), for the banks and other financial institutions (the “Lenders”) from time
to time parties to the Debtor-In-Possession Credit Agreement dated of even date
herewith (as amended, supplemented or otherwise modified from time to time, the
“Credit
Agreement”), among the Borrower, Hudson, the Lenders, the Administrative
Agent, BNP Paribas, as Issuing Bank, and the other Agents party
thereto.

     

    RECITALS

     

    WHEREAS,
on July 12, 2009 (the “Petition Date”), the
Borrower and Hudson filed a voluntary petition with the United States Bankruptcy
Court for the Western District of Michigan (the “Bankruptcy Court”)
initiating cases under Chapter 11 of the Bankruptcy Code (collectively, the
“Bankruptcy
Cases” and, individually, a “Bankruptcy
Case”).

     

    WHEREAS,
the Borrower, a debtor and debtor-in-possession, and Hudson, a debtor and
debtor-in-possession, have continued in the possession of their respective
assets and in the management of their respective businesses as
debtors-in-possession pursuant to Sections 1107 and 1108 of the Bankruptcy
Code.

     

    WHEREAS,
pursuant to the Credit Agreement, the Lenders have agreed to make available to
the Borrower a debtor-in-possession revolving line of credit for
loans,

     

    WHEREAS,
it is a condition precedent to the obligation of the Lenders to make their
respective extensions of credit to the Borrower under the Credit Agreement that
the Obligors shall have executed and delivered this Agreement to the
Administrative Agent for the ratable benefit of the Lenders.

     

    NOW,
THEREFORE, in consideration of the premises herein and to induce the
Administrative Agent and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective extensions of credit to the Borrower
thereunder, each Obligor hereby agrees with the Administrative Agent, for the
ratable benefit of the Lenders, as follows:

     

    ARTICLE
I

    Definitions

     

    Section
1.01.     Definitions.

     

    (a)    
Unless otherwise defined herein, terms defined in the Credit Agreement and used
herein have the meanings given to them in the Credit Agreement, and all
uncapitalized terms which are defined in the UCC on the date hereof are used
herein as so defined.

     

    (b)    
The following terms have the following meanings:

    
      
         

      

      
        - 1
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    “Agreement” means this
Debtor-In-Possession Guaranty and Collateral Agreement, as the same may be
amended, supplemented or otherwise modified from time to time.

     

    “Bankruptcy Cases” or
“Bankruptcy
Case” has the meaning assigned to such term in the Recitals.

     

    “Bankruptcy Code”
means Title 11, United States Code, as amended from time to time.

     

    “Bankruptcy Court” has
the meaning assigned to such term in the Recitals.

     

    “Borrower Obligations”
means the collective reference to the payment and performance when due of all
indebtedness, liabilities, obligations and undertakings of the Borrower and the
Subsidiaries (including, without limitation, all Indebtedness) of every kind or
description arising out of or outstanding under, advanced or issued pursuant, or
evidenced by, the Guaranteed Documents, including, without limitation, the
unpaid principal of and interest on the Loans and the LC Exposure and all other
obligations and liabilities of the Borrower and the Subsidiaries (including,
without limitation, interest accruing at the then applicable rate provided in
the Credit Agreement after the maturity of the Loans and LC Exposure) to the
Guaranteed Creditors, whether direct or indirect, absolute or contingent, due or
to become due, or now existing or hereafter incurred, arising out of or
outstanding under, advanced or issued pursuant, or evidenced by, the Guaranteed
Documents, whether on account of principal, interest, premium, reimbursement
obligations, payments in respect of an early termination date, fees,
indemnities, costs, expenses or otherwise (including, without limitation, all
costs, fees and disbursements of counsel to the Guaranteed Creditors that are
required to be paid by the Borrower pursuant to the terms of any Guaranteed
Documents).

     

    “Collateral” has the
meaning assigned to such term in Section 3.01.

     

    “Disposition” or
“Dispose” means
the sale, transfer, license, lease or other disposition (including any sale and
leaseback transaction) of any Property by any Person, including any sale,
assignment, transfer or other disposal, with or without recourse, of any notes
or accounts receivable or any rights and Claims associated
therewith.

     

    “Guarantee” has the
meaning assigned to such term in Section 2.01(c).

     

    “Guaranteed Creditors”
means the collective reference to the Administrative Agent and the
Lenders.

     

    “Guaranteed Documents”
means the collective reference to the Credit Agreement, the other Loan Documents
and any other document made, delivered or given in connection with any of the
foregoing.

     

    “Guarantor
Obligations” means with respect to any Guarantor, the collective
reference to (a) the Borrower Obligations and (b) the payment and performance
when due of all indebtedness, liabilities, obligations and undertakings of such
Guarantor of every kind or description, whether direct or indirect, absolute or
contingent, due or to become due, or now existing or hereafter incurred, arising
out of or outstanding under, advanced or issued pursuant, or evidenced by, any
Guaranteed Document to which such Guarantor is a party, in each case, whether on
account of principal, interest, guarantee obligations, reimbursement
obligations, payments in respect of an early termination date, fees,
indemnities, costs, expenses or otherwise (including, without limitation, all
fees and disbursements of counsel to any Guaranteed Creditor under any
Guaranteed Document).

    
      
         

      

      
        - 2
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    “Guarantors” means the
collective reference to each Obligor other than the Borrower.

     

    “Issuers” means the
collective reference to each issuer of a Pledged Security.

     

    “LLC” means, with
respect to each Pledgor, each limited liability company described or referred to
on Schedule 2 in which such Pledgor holds a membership interest.

     

    “LLC Agreement” means
each operating agreement relating to an LLC, as each agreement has heretofore
been, and may hereafter be, amended, restated, supplemented or otherwise
modified from time to time.

     

    “Obligations” means:
(a) in the case of the Borrower, the Borrower Obligations, (b) in the case of
each Guarantor, its Guarantor Obligations and (c) in the case of each Pledgor,
its Pledgor Obligations.

     

    “Obligor” has the
meaning assigned to such term in the Recitals.

     

    “Obligor Accounts”
means all deposit accounts, securities accounts, and commodity accounts now
owned or hereafter acquired by each Obligor, including, without limitation, all
of those listed on Schedule 4.

     

    “Obligor Claims” has
the meaning assigned to such term in Section 8.01.

     

    “Partnership” means,
with respect to each Pledgor, each partnership described or referred to on
Schedule 2 in which such Pledgor is a limited or general partner.

     

    “Partnership
Agreement” means each partnership agreement governing a Partnership, as
each such agreement has heretofore been, and may hereafter be, amended,
restated, supplemented or otherwise modified.

     

    “Permitted Liens” has
the meaning assigned to such term in Section 4.02

     

    “Petition Date” has
the meaning assigned to such term in the Recitals.

     

    “Pledged LLC
Interests” means, with respect to each Pledgor, all right, title and
interest of such Pledgor as a member of each LLC and all right, title and
interest of any Pledgor in, to and under each LLC Agreement.

     

    “Pledged Notes” means
all promissory notes listed on Schedule 2, all intercompany notes at any time
issued to any Guarantor and all other promissory notes issued to or held by any
Guarantor (other than promissory notes issued in connection with extensions of
trade credit by any Guarantor in the ordinary course of business).

     

    “Pledged Partnership
Interests” means, with respect to each Pledgor, all right, title and
interest of such Pledgor as a limited or general partner in all Partnerships and
all right, title and interest of any Pledgor in, to and under the Partnership
Agreements.

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

    “Pledged Securities”
means: (a) the Equity Interests described or referred to on Schedule 2 (as
the same may be supplemented from time to time pursuant to a Supplement in
substantially the form of Annex II); (b) (i) the certificates or instruments, if
any, representing such Equity Interests, (ii) all dividends (cash, Equity
Interests or otherwise), cash, instruments, rights to subscribe, purchase or
sell and all other rights and Property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of such
securities, (iii) all replacements, additions to and substitutions for any of
the Property referred to in this definition, including, without limitation,
Claims against third parties, (iv) the proceeds, interest, profits and other
income of or on any of the Property referred to in this definition, (v) all
security entitlements in respect of any of the foregoing, if any and (vi) all
books and records relating to any of the Property referred to in this
definition, and (c) the Pledged Notes.

     

    “Pledgor” means any
Obligor that now or hereafter pledges Collateral hereunder.

     

    “Pledgor Obligations”
means with respect to any Pledgor, the collective reference to (a) the Borrower
Obligations and (b) the payment and performance when due of all indebtedness,
liabilities, obligations and undertakings of such Pledgor of every kind or
description, whether direct or indirect, absolute or contingent, due or to
become due, or now existing or hereafter incurred, arising out of or outstanding
under, advanced or issued pursuant, or evidenced by, any Guaranteed Document to
which such Pledgor is a party, in each case, whether on account of principal,
interest, guarantee obligations, reimbursement obligations, payments in respect
of an early termination date, fees, indemnities, costs, expenses or otherwise
(including, without limitation, all fees and disbursements of counsel to any
Guaranteed Creditor under any Guaranteed Document).

     

    “Proceeds” means all
“proceeds” as such term is defined in Section 9-102(64) of the Uniform
Commercial Code in effect in the State of Texas on the date hereof and, in any
event, shall include, without limitation, all dividends or other income from the
Pledged Securities, collections thereon or distributions or payments with
respect thereto.

     

    “Securities Act” means
the Securities Act of 1933, as amended.

     

    “UCC” means the
Uniform Commercial Code as from time to time in effect in the State of Texas;
provided, however, that, in the
event that, by reason of mandatory provisions of law, any of the attachment,
perfection or priority of the Administrative Agent’s and the Guaranteed
Creditors’ security interest in any Collateral is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than the State of Texas,
the term “UCC” shall mean the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such attachment,
perfection, the effect thereof or priority and for purposes of definitions
related to such provisions.

     

    Section
1.02.     Other Definitional
Provisions.  Where the context requires, terms relating to the
Collateral or any part thereof, when used in relation to a Pledgor, refer to
such Pledgor’s Collateral or the relevant part thereof.

     

    Section
1.03.     Rules of
Interpretation.  Section 1.04 of the Credit Agreement is hereby
incorporated herein by reference and shall apply to this Agreement, mutatis
mutandis.

    
      
         

      

      
        - 4
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    ARTICLE
II

    Guarantee

     

    Section
2.01.     Guarantee.

     

    (a)    
Each of the Guarantors hereby jointly and severally, unconditionally and
irrevocably, guarantees to the Guaranteed Creditors and each of their respective
successors, endorsees, transferees and assigns, the prompt and complete payment
in cash and performance by the Borrower when due (whether at the stated
maturity, by acceleration or otherwise) of the Borrower
Obligations.  This is a guarantee of payment and not collection and
the liability of each Guarantor is primary and not secondary.

     

    (b)    
Anything herein or in any other Guaranteed Document to the contrary
notwithstanding, the maximum liability of each Guarantor hereunder and under the
other Guaranteed Documents shall in no event exceed the amount which can be
guaranteed by such Guarantor under applicable federal and state laws relating to
the insolvency of debtors (after giving effect to the right of contribution
established in Section 2.02).

     

    (c)    
Each Guarantor agrees that the Borrower Obligations may at any time and from
time to time exceed the amount of the liability of such Guarantor hereunder
without impairing the guarantee contained in this Article II (the ”Guarantee”) or
affecting the rights and remedies of any Guaranteed Creditor
hereunder.

     

    (d)    
Each Guarantor agrees that if the maturity of the Borrower Obligations is
accelerated for any reason, such maturity shall also be deemed accelerated for
the purpose of this guarantee without demand or notice to such
Guarantor.  The guarantee contained in this Article II shall remain in
full force and effect until all the Borrower Obligations shall have been
satisfied by payment in full in cash, no Letter of Credit shall be outstanding
and all of the Commitments are terminated, notwithstanding that from time to
time during the term of the Credit Agreement, no Borrower Obligations may be
outstanding.

     

    (e)    
No payment made by any Obligor, any other guarantor or any other Person or
received or collected by any Guaranteed Creditor from any Obligor, any other
guarantor or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application at any time or from time to time in
reduction of or in payment of the Borrower Obligations shall be deemed to
modify, reduce, release or otherwise affect the liability of any Guarantor
hereunder which shall, notwithstanding any such payment (other than any payment
made by such Guarantor in respect of the Borrower Obligations or any payment
received or collected from such Guarantor in respect of the Borrower
Obligations), remain liable for the Borrower Obligations up to the maximum
liability of such Guarantor hereunder until the Borrower Obligations are paid in
full in cash, no Letter of Credit shall be outstanding and all of the
Commitments are terminated.

     

    Section
2.02.     Right of
Contribution.  Each Guarantor hereby agrees that to the extent
that a Guarantor shall have paid more than its proportionate share of any
payment made hereunder, such Guarantor shall be entitled to seek and receive
contribution from and against any other Guarantor hereunder which has not paid
its proportionate share of such payment. Each Guarantor’s right of contribution
shall be subject to the terms and conditions of Section 2.03. The
provisions of this Section 2.02 shall in no respect limit the obligations and
liabilities of any Guarantor to the Guaranteed Creditors, and each Guarantor
shall remain liable to the Guaranteed Creditors for the full amount guaranteed
by such Guarantor hereunder.

     

    
      
         

      

      
        - 5
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    Section
2.03.     No
Subrogation.  Notwithstanding any payment made by any Guarantor
hereunder or any set-off or application of funds of any Guarantor by any
Guaranteed Creditor, no Guarantor shall be entitled to be subrogated to any of
the rights of any Guaranteed Creditor against the Borrower or any other
Guarantor or any collateral security or guarantee or right of offset held by any
Guaranteed Creditor for the payment of the Borrower Obligations, nor shall any
Guarantor seek or be entitled to seek any indemnity, exoneration, participation,
contribution or reimbursement from the Borrower or any other Guarantor in
respect of payments made by such Guarantor hereunder, until all amounts owing to
the Guaranteed Creditors on account of the Borrower Obligations are irrevocably
and indefeasibly paid in full in cash, no Letter of Credit shall be outstanding
and all of the Commitments are terminated.  If any amount shall be
paid to any Guarantor on account of such subrogation rights at any time when all
of the Borrower Obligations shall not have been irrevocably and indefeasibly
paid in full in cash, any Letters of Credit shall be outstanding or any of the
Commitments are in effect, such amount shall be held by such Guarantor in trust
for the Guaranteed Creditors, and shall, forthwith upon receipt by such
Guarantor, be turned over to the Administrative Agent in the exact form received
by such Guarantor (duly indorsed by such Guarantor to the Administrative Agent,
if required), to be applied against the Borrower Obligations, whether matured or
unmatured, in accordance with Section 10.03 of the Credit
Agreement.

     

    Section
2.04.     Amendments, Etc. with
Respect to the Borrower Obligations.  Each Guarantor shall
remain obligated hereunder, and such Guarantor’s obligations hereunder shall not
be released, discharged or otherwise affected, notwithstanding that, without any
reservation of rights against any Guarantor and without notice to, demand upon
or further assent by any Guarantor (which notice, demand and assent requirements
are hereby expressly waived by such Guarantor), (a) any demand for payment of
any of the Borrower Obligations made by any Guaranteed Creditor may be rescinded
by such Guaranteed Creditor or otherwise and any of the Borrower Obligations
continued; (b) the Borrower Obligations, the liability of any other Person upon
or for any part thereof or any collateral security or guarantee therefor or
right of offset with respect thereto, may, from time to time, in whole or in
part, be renewed, extended, amended, modified, accelerated, compromised, waived,
surrendered or released by, or any indulgence or forbearance in respect thereof
granted by, any Guaranteed Creditor; (c) any Guaranteed Document may be amended,
modified, supplemented or terminated, in whole or in part, as the Guaranteed
Creditors may deem advisable from time to time; (d) any collateral security,
guarantee or right of offset at any time held by any Guaranteed Creditor for the
payment of the Borrower Obligations may be sold, exchanged, waived, surrendered
or released; (e) any additional guarantors, makers or endorsers of the
Borrower’s Obligations may from time to time be obligated on the Borrower’s
Obligations or any additional security or collateral for the payment and
performance of the Borrower’s Obligations may from time to time secure the
Borrower’s Obligations; and (f) any other event shall occur which constitutes a
defense or release of sureties generally.  No Guaranteed Creditor
shall have any obligation to protect, secure, perfect or insure any Lien at any
time held by it as security for the Borrower Obligations or for the Guarantee or
any Property subject thereto.

     

    Section
2.05.     Waivers.  Each
Guarantor hereby waives any and all notice of the creation, renewal, extension
or accrual of any of the Borrower Obligations and notice of or proof of reliance
by any Guaranteed Creditor upon the Guarantee or acceptance of the Guarantee;
the Borrower Obligations, and any of them, shall conclusively be deemed to have
been created, contracted or incurred, or renewed, extended, amended or waived,
in reliance upon the Guarantee and no notice of creation of the Borrower
Obligations or any extension of credit already or hereafter contracted by or
extended to the Borrower need be given to any Guarantor; and all dealings
between the Borrower and any of the Guarantors, on the one hand, and the
Guaranteed Creditors, on the other hand, likewise shall be conclusively presumed
to have been had or consummated in reliance upon the Guarantee.  Each
Guarantor waives diligence, presentment, protest, demand for payment and notice
of default or nonpayment to or upon the Borrower or any of the Guarantors with
respect to the Borrower Obligations.

     

    
      
         

      

      
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    Section
2.06.     Guarantee Absolute and
Unconditional.

     

    (a)    
Each Guarantor understands and agrees that the Guarantee is, and shall be
construed as, a continuing, completed, absolute and unconditional guarantee of
payment, and each Guarantor hereby waives any defense of a surety or guarantor
or any other obligor on any obligations arising in connection with or in respect
of any of the following and hereby agrees that its obligations hereunder shall
not be discharged or otherwise affected as a result of, any of the
following:

     

    (i)    
the invalidity or unenforceability of any Guaranteed Document, any of the
Borrower Obligations or any other collateral security therefor or guarantee or
right of offset with respect thereto at any time or from time to time held by
any Guaranteed Creditor;

     

    (ii)    any
defense, set-off or counterclaim (other than a defense of payment or
performance) which may at any time be available to or be asserted by the
Borrower or any other Person against any Guaranteed Creditor;

     

    (iii)   the
insolvency, bankruptcy arrangement, reorganization, adjustment, composition,
liquidation, disability, dissolution or lack of power of the Borrower or any
other Guarantor or any other Person at any time liable for the payment of all or
part of the Obligations, including any discharge of, or bar or stay against
collecting, any Obligation (or any part of them or interest therein) in or as a
result of such proceeding (other than the Bankruptcy Cases);

     

    (iv)   any
Disposition of any or all of the assets of the Borrower or any other Guarantor,
or any changes in the shareholders of the Borrower or the
Guarantor;

     

    (v)    any
change in the corporate existence (including its constitution, laws, rules,
regulations or power), structure or ownership of any Obligor;

     

    (vi)   the
fact that any Collateral or Lien contemplated or intended to be given, created
or granted as security for the repayment of the Obligations shall not be
properly perfected or created, or shall prove to be unenforceable or subordinate
to any other Lien, it being recognized and agreed by each of the Guarantors that
it is not entering into this Agreement in reliance on, or in contemplation of
the benefits of, the validity, enforceability, collectability or value of any of
the Collateral for the Obligations;

     

    (vii) 
the absence of any attempt to collect the Obligations or any part of them from
any Obligor;

     

    
      
         

      

      
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    (viii)  (A)
any Guaranteed Creditor’s election, in any proceeding instituted under chapter
11 of the Bankruptcy Code, of the application of Section 1111 (b)(2) of the
Bankruptcy Code; (B) any borrowing or grant of a Lien by the Borrower, as
debtor-in-possession, or extension of credit, under Section 364 of the
Bankruptcy Code; (C) the disallowance, under Section 502 of the Bankruptcy Code,
of all or any portion of any Guaranteed Creditor’s Claim (or Claims) for
repayment of the Obligations; (D) any use of cash collateral under Section 363
of the Bankruptcy Code; (E) any agreement or stipulation as to the provision of
adequate protection in any bankruptcy proceeding; (F) the avoidance of any Lien
held by the Guaranteed Creditors or any of them for any reason; or (G) failure
by any Guaranteed Creditor to file or enforce a Claim against the Borrower or
its estate in any bankruptcy or insolvency case or proceeding; or

     

    (ix)   any
other circumstance or act whatsoever, including any action or omission of the
type described in Section 2.04 (with or without notice to or knowledge of the
Borrower or such Guarantor), which constitutes, or might be construed to
constitute, an equitable or legal discharge of the Borrower for the Borrower
Obligations, or of such Guarantor under the Guarantee, in bankruptcy or in any
other instance.

     

    (b)    
When making any demand hereunder or otherwise pursuing its rights and remedies
hereunder against any Guarantor, any Guaranteed Creditor may, but shall be under
no obligation to, join or make a similar demand on or otherwise pursue or
exhaust such rights and remedies as it may have against the Borrower, any other
Guarantor or any other Person or against any collateral security or guarantee
for the Borrower Obligations or any right of offset with respect thereto, and
any failure by any Guaranteed Creditor to make any such demand, to pursue such
other rights or remedies or to collect any payments from the Borrower, any other
Guarantor or any other Person or to realize upon any such collateral security or
guarantee or to exercise any such right of offset, or any release of the
Borrower, any other Guarantor or any other Person or any such collateral
security, guarantee or right of offset, shall not relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights and
remedies, whether express, implied or available as a matter of law, of any
Guaranteed Creditor against any Guarantor.  For the purposes hereof
“demand” shall include the commencement and continuance of any legal
proceedings.

     

    Section
2.07.     Reinstatement.  The
guarantee contained in this Article II shall continue to be effective, or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
any of the Borrower Obligations is rescinded or must otherwise be restored or
returned by any Guaranteed Creditor upon the insolvency, bankruptcy,
dissolution, liquidation or reorganization of the Borrower or any Guarantor, or
upon or as a result of the appointment of a receiver, intervenor or conservator
of, or trustee or similar officer for, the Borrower or any Guarantor or any
substantial part of their respective Properties, or otherwise, all as though
such payments had not been made.

     

    Section
2.08.     Payments.  Each
Guarantor hereby guarantees that payments hereunder will be paid to the
Administrative Agent, for the ratable benefit of the Guaranteed Creditors,
without set-off, deduction or counterclaim in dollars, in immediately available
funds, at the offices of the Administrative Agent specified in Section 13.01 of
the Credit Agreement.

     

    ARTICLE
III

    Grant
of Security Interest

     

    Section
3.01.     Grant of Security
Interest.  Each Pledgor hereby pledges, assigns and transfers
to the Administrative Agent, and hereby grants to the Administrative Agent, for
the ratable benefit of the Guaranteed Creditors, a valid, binding, continuing
and enforceable security interest in and to all of such Pledgor’s tangible and
intangible pre-Petition Date and post-Petition Date Property (other than
Avoidance Actions and the proceeds or property recovered in respect of such
Avoidance Actions), whether now owned or at any time hereafter acquired by such
Pledgor or in which such Pledgor now has or at any time in the future may
acquire any right, title or interest (collectively, the “Collateral”), as
collateral security for the full, prompt and complete payment and due
performance when due (whether at the stated maturity, by acceleration or
otherwise) of such Pledgor’s Obligations, including, without limitation, the
following:

     

    
      
         

      

      
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    (1)           all
Pledged Securities;

     

    (2)           all
Pledged Notes;

     

    (3)           all
Obligor Accounts;

     

    (4)           all
Accounts;

     

    (5)           all
Documents;

     

    (6)           all
Instruments;

     

    (7)           all
Inventory;

     

    (8)           all
Equipment;

     

    (9)           all
Deposit Accounts;

     

    (10)         all
Investment Property;

     

    (11)         all
Fixtures;

     

    (12)         all
Chattel Paper;

     

    (13)         all
General Intangibles;

     

    (14)         all
Letter-of-Credit Rights;

     

    (15)         all
As-Extracted Collateral;

     

    (16)         all
Commercial Tort Claims;

     

    (17)         all
Software;

     

    (18)         all
moneys and property of any kind of Pledgor in the possession or in the control
of the Administrative Agent or any Lender;

     

    (19)         all
books and records pertaining to the Collateral; and

     

    (20)         to
the extent not otherwise included, all Proceeds and products of any and all of
the foregoing, whether arising from Section 552(b) of the Bankruptcy Code or
otherwise, and all collateral security and guarantees given by any Person with
respect to any of the foregoing.

     

    
      
         

      

      
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    Section
3.02.     Pre-Petition First Lien
Administrative Agent acting as Bailee; Transfer of Pledged
Securities.

     

    (a)           In
connection with the perfection or preservation of any Lien on the Collateral
granted in this Agreement, and as collateral security for the Obligations, each
Obligor and the Pre-Petition First Lien Administrative Agent hereby acknowledges
and agrees that, notwithstanding anything to the contrary contained herein or in
any other agreement, document or instrument, the Pre-Petition First Lien
Administrative Agent shall act as bailee of the Administrative Agent to the
extent that the Pre-Petition First Lien Administrative Agent has, or at any time
hereafter may have, possession or control (or an agent or bailee of the
Pre-Petition First Lien Administrative Agent currently has, or at any time
hereafter may have, possession or control) of any portion of the Collateral as a
result of, or in connection with, this Agreement, the Pre-Petition First Lien
Credit Agreement and the other related Pre-Petition Loan Documents.

     

    (b)           To
the extent requested in writing by the Administrative Agent to the Pre-Petition
First Lien Administrative Agent, all certificates or instruments representing or
evidencing the Pledged Securities (including any held by the Pre-Petition First
Lien Administrative Agent or any bailee thereof to secure Pre-Petition Secured
Indebtedness) shall promptly be delivered to and held pursuant hereto by the
Administrative Agent or a Person designated by the Administrative Agent (and the
Obligors shall cause the Pre-Petition First Lien Administrative Agent to deliver
such certificates and instruments to the Administrative Agent or a Person
designated by the Administrative Agent) and shall be in suitable form for
transfer by delivery, or shall be accompanied by duly executed instruments of
transfer or assignment in blank, and accompanied by any required transfer tax
stamps to effect the pledge of the Pledged Securities to the Administrative
Agent.  Notwithstanding the preceding sentence, at the Administrative
Agent’s discretion, all certificated Pledged Securities must be delivered or
transferred in such manner as to permit the Administrative Agent to be a
“protected purchaser” to the extent of its security interest as provided in
Section 8-303 of the UCC (if the Administrative Agent otherwise qualifies as a
protected purchaser).  During the continuance of an Event of Default
(but subject to the terms of the Financing Orders), the Administrative Agent
shall have the right, at any time in its discretion and without notice, to
transfer to or to register in the name of the Administrative Agent or any of its
nominees any or all of the Pledged Securities, subject only to the revocable
rights specified in Section 6.04.  In addition, during the continuance
of an Event of Default, the Administrative Agent shall have the right at any
time to exchange certificates or instruments representing or evidencing Pledged
Securities for certificates or instruments of smaller or larger
denominations.

     

    Section
3.03.     Priority.  Except
to the extent provided otherwise in the Interim Order or the Final Order, as
applicable, each Obligor hereby agrees that the Indebtedness shall (i)
constitute super-priority allowed administrative expense claims in the
Bankruptcy Case having priority pursuant to Section 364(c)(1) of the Bankruptcy
Code over all administrative expense claims and unsecured claims against the
Borrower and HPPC now existing or hereafter arising, of any kind or nature
whatsoever, including, without limitation, all administrative expense claims of
the kind specified in Sections 503(b) and 507(b) of the Bankruptcy Code and all
super-priority administrative expense claims granted to any other Person,
subject, as to priority, only to the Carve-Out, the establishment of which
super-priority shall have been approved and authorized by the Bankruptcy Court
and (ii) be secured pursuant to Sections 364(c)(2), (c)(3) and (d)(1) of the
Bankruptcy Code and, to the extent provided in any of the Financing Orders,
shall not be subject to any Claims against the Collateral pursuant to Section
506(c) of the Bankruptcy Code.

     

    
      
         

      

      
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    ARTICLE
IV

    Representations
and Warranties

     

    To induce
the Administrative Agent and the Lenders to enter into the Credit Agreement and
to induce the Lenders to make their respective extensions of credit to the
Borrower thereunder, each Obligor hereby represents and warrants to the
Administrative Agent and each Lender that:

     

    Section
4.01.     Representations in Credit
Agreement.  In the case of each Guarantor, the representations
and warranties set forth in Article VII of the Credit Agreement as they relate
to such Guarantor or to the Loan Documents to which such Guarantor is a party
are true and correct in all material respects, provided that each reference in
each such representation and warranty to the Borrower’s knowledge shall, for the
purposes of this Section 4.01, be deemed to be a reference to such Guarantor’s
knowledge.

     

    Section
4.02.     Title; No Other
Liens.  Except for the security interest granted to the
Administrative Agent for the ratable benefit of the Guaranteed Creditors
pursuant to this Agreement, such Pledgor is the record and beneficial owner of
its respective items of the Collateral free and clear of any and all Liens
except those Liens permitted under Section 9.03 of the Credit Agreement (“Permitted Liens”),
and has the power to transfer each item of the Collateral in which a Lien is
granted by it hereunder, free and clear of any Lien other than Permitted
Liens.  No financing statement or other public notice with respect to
all or any part of the Collateral is on file or of record in any public office,
except such as may have been filed in favor of the Administrative Agent, for the
ratable benefit of the Guaranteed Creditors, pursuant to this Agreement or the
Security Instruments, and except for filings related to the Pre-Petition Secured
Indebtedness and Permitted Liens.

     

    Section
4.03.     Perfected First Priority
Liens.  The security interests granted pursuant to this
Agreement, upon entry of the Interim Order, if applicable, or, if the Final
Order has been entered as of the date hereof, the Final Order, (a) will
constitute valid, perfected security interests in all of the Collateral in favor
of the Administrative Agent, for the ratable benefit of the Guaranteed
Creditors, as collateral security for such Pledgor’s Obligations, enforceable in
accordance with the terms hereof against all creditors of such Pledgor and any
Persons purporting to purchase any Collateral from such Pledgor and (b) have the
priorities set forth in Section 3.03 with respect to the Collateral in existence
on the date hereof.

     

    Section
4.04.     Obligor
Information.  On the date hereof, the correct legal name of
such Obligor, all names and trade names that such Obligor has used in the last
five (5) years, such Obligor's jurisdiction of organization and each
jurisdiction of organization of such Obligor over the last five (5) years,
organizational number, taxpayer identification number, and the location(s) of
such Obligor's chief executive office or sole place of business over the last
five (5) years are specified on Schedule 3.

     

    
      
         

      

      
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    Section
4.05.     Pledged
Securities.

    (a)    
The Pledged Securities required to be pledged hereunder and under the Credit
Agreement by such Pledgor are listed on Schedule 2.  The shares of
Pledged Securities pledged by such Pledgor hereunder constitute all the issued
and outstanding shares of all classes of the Equity Interests of each Issuer
owned by such Pledgor (or in the case of any Issuer that is a Foreign
Subsidiary, 65% of all the issued and outstanding shares of all classes of the
Equity Interests of such Issuer).  All the shares of the Pledged
Securities have been duly and validly issued and are fully paid and
nonassessable; and such Pledgor is the record and beneficial owner of, and has
good title to, the Pledged Securities pledged by it hereunder, free of any and
all Liens or options in favor of, or Claims of, any other Person, except
Permitted Liens and the security interest created by this Agreement, and has the
power to transfer the Pledged Securities in which a Lien is granted by it
hereunder, free and clear of any Lien except for Permitted Liens.

     

    (b)    
There are no restrictions on transfer (that have not been waived or otherwise
consented to) in the applicable LLC Agreement governing any Pledged LLC Interest
and the applicable Partnership Agreement governing any Pledged Partnership
Interest or any other agreement relating thereto which would limit or restrict
(i) the grant of a security interest in the Pledged LLC Interests and the
Pledged Partnership Interests, (ii) the perfection of such security interest or
(iii) the exercise of remedies in respect of such perfected security interest in
the Pledged LLC Interests and the Pledged Partnership Interests, in each case,
as contemplated by this Agreement.  Upon the exercise of remedies in
respect of the Pledged LLC Interests and the Pledged Partnership Interests, a
transferee or assignee of a membership interest or partnership interest, as the
case may be, of such LLC or Partnership, as the case may be, shall become a
member or partner, as the case may be, of such LLC or Partnership, as the case
may be, entitled to participate in the management thereof and, upon the transfer
of the entire interest of such Pledgor, such Pledgor ceases to be a member or
partner, as the case may be.

     

    Section
4.06.     Benefit to the
Guarantor.  The Borrower is a member of an affiliated group of
companies that includes each Guarantor and the Borrower and the other Guarantors
are engaged in related businesses.  Each Guarantor is an Affiliate of
the Borrower and its guaranty and surety obligations pursuant to this Agreement
reasonably may be expected to benefit, directly or indirectly, it; and it has
determined that this Agreement is necessary and convenient to the conduct,
promotion and attainment of the business of such Guarantor and the
Borrower.

     

    Section
4.07.     Obligor
Accounts.  Obligor does not own, hold, maintain, or have any
right or interest in or to any deposit accounts, securities accounts or
commodity accounts other than those listed on Schedule 4
hereto.  Schedule 4 contains a true and complete list of all deposit
accounts, securities accounts and commodity accounts in which each Obligor holds
any right or interest including the name of the bank or institution where such
Obligor Account is held, and the full and correct account number for each such
Obligor Account.

     

    Section
4.08.     Perfection.  Notwithstanding
anything to the contrary contained herein or elsewhere:

     

    (a)    
the Administrative Agent's Liens on Collateral of the Obligors shall be deemed
valid and perfected by entry of the Interim Order, if applicable, and the Final
Order, as the case may be, which entry of the Final Order shall have occurred on
or prior to the Effective Date.  Neither the Administrative Agent nor
any other Secured Party shall be required to prepare, file, register or publish
any financing statements, mortgages, hypothecs, account control agreements,
notices of Lien or similar instruments in any jurisdiction or filing or
registration office, or to take possession of any Collateral or to take any
other action in order to validate, render enforceable or perfect the Liens on
Collateral granted by or pursuant to this Agreement, the Interim Order, if
applicable, the Final Order or any other Loan Document.  If the
Administrative Agent or the Majority Lenders shall, in its or their sole
discretion, from time to time elect to prepare, file, register or publish any
such financing statements, mortgages, hypothecs, account control agreements,
notices of Lien or similar instruments, take possession of any Collateral or
take any other action to validate, render enforceable or perfect all or any
portion of the Administrative Agent's Liens on Collateral, all such documents
and actions shall be deemed to have been filed, registered, published or
recorded or taken at the time and on the date of the Effective
Date.

     

    
      
         

      

      
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    (b)    
The Liens, lien priorities and other rights and remedies granted to the
Administrative Agent and the other Secured Parties pursuant to this Agreement,
the Interim Order, if applicable, the Final Order or the other Loan Documents
(specifically including, but not limited to, the existence, perfection,
enforceability and priority of the Liens provided for herein and therein) shall
not be modified, altered or impaired in any manner by any other financing or
extension of credit or incurrence of debt by any Obligor (pursuant to Section
364 of the Bankruptcy Code or otherwise), or by dismissal or conversion of the
Bankruptcy Cases, or by any other act or omission whatsoever.  Without
limiting the generality of the foregoing, notwithstanding any such order,
financing, extension, incurrence, dismissal, conversion, act or
omission:

     

    (i)    
other than as provided in the Financing Orders or the Loan Documents, the
Administrative Agent's Liens on Collateral shall constitute valid, enforceable
and perfected first priority Liens, and shall be prior to all other Liens, now
existing or hereafter arising, in favor of any other creditor or other Person;
and

     

    (ii)    the
Administrative Agent's Liens on the Collateral shall continue to be valid,
enforceable and perfected without the need for the Administrative Agent or any
other Secured Party to prepare, file, register or publish any financing
statements, mortgages, hypothecs, account control agreements, notices of Lien or
similar instruments or to otherwise perfect the Administrative Agent's Liens
under applicable non-bankruptcy law.

     

    ARTICLE
V

    Covenants

     

    Each
Obligor covenants and agrees with the Administrative Agent and the Lenders that,
from and after the date of this Agreement until the Borrower Obligations shall
have been paid in full in cash, no Letter of Credit shall be outstanding and all
of the Commitments shall have terminated:

     

    Section
5.01.     Covenants in Credit
Agreement.  In the case of each Guarantor, such Guarantor shall
take, or shall refrain from taking, as the case may be, each action that is
necessary to be taken or not taken, as the case may be, so that no Default is
caused by the failure to take such action or to refrain from taking such action
by such Guarantor or any of its Subsidiaries.

     

    Section
5.02.     Maintenance of Perfected
Security Interest; Further Documentation.  In the case of each
Pledgor, such Pledgor agrees that:

     

    
      
         

      

      
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    (a)    
it shall maintain the security interest created by this Agreement as a perfected
security interest having at least the priority described in Section 3.03 and
shall defend such security interest against the Claims and demands of all
Persons whomsoever.

     

    (b)    
it will furnish to the Administrative Agent and the Lenders from time to time
statements and schedules further identifying and describing the Collateral and
such other reports in connection with the Collateral as the Administrative Agent
may reasonably request, all in reasonable detail.

     

    (c)    
at any time and from time to time, upon the written request of the
Administrative Agent, and at the sole expense of such Pledgor, it will promptly
and duly execute and deliver, and have recorded, such further instruments and
documents and take such further actions as the Administrative Agent may
reasonably deem necessary for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted,
including, without limitation, the delivery of certificated securities and the
filing of any financing or continuation statements under the UCC (or other
similar laws) in effect in any jurisdiction with respect to the security
interests created hereby.

     

    Section
5.03.     Changes in Locations, Name,
Etc.  Such Obligor recognizes that financing statements
pertaining to the Collateral have been or may be filed where such Obligor
maintains any Collateral or is organized.  Without limitation of
Section 8.01(n) of the Credit Agreement or any other covenant herein, such
Obligor will not cause or permit any change in its (a) corporate name or in any
trade name used to identify it in the conduct of its business or in the
ownership of its Properties, (b) the location of its chief executive office or
principal place of business, (c) its identity or corporate structure or the
jurisdiction in which it is incorporated or formed, (d) its jurisdiction of
organization or its organizational identification number in such jurisdiction of
organization or (e) its federal taxpayer identification number, unless, in each
case, such Obligor shall have first (i) notified the Administrative Agent of
such change at least thirty (30) days prior to the effective date of such
change, and (ii) taken all action reasonably requested by the Administrative
Agent for the purpose of maintaining the perfection and priority of the
Administrative Agent's security interests under this Agreement.  In
any notice furnished pursuant to this Section 5.03, such Obligor will expressly
state in a conspicuous manner that the notice is required by this Agreement and
contains facts that may require additional filings of financing statements or
other notices for the purposes of continuing perfection of the Administrative
Agent's security interest in the Collateral.  At the request of the
Administrative Agent, on or prior to the occurrence of such event, the Borrower
will provide to the Administrative Agent and the Lenders an opinion of counsel,
in form and substance reasonably satisfactory to the Administrative Agent, to
the effect that such event will not impair the validity of the security
interests hereunder, the perfection and priority thereof, the enforceability of
the Loan Documents, and such other matters as may be reasonably requested by the
Administrative Agent.

     

    Section
5.04.     Pledged
Securities.  In the case of each Pledgor, such Pledgor and the
Pre-Petition First Lien Administrative Agent agree that notwithstanding anything
to the contrary contained herein or in any other agreement, document or
instrument:

     

    
      
         

      

      
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    (a)    
if such Pledgor shall become entitled to receive or shall receive any
certificate (including, without limitation, any certificate representing an
Equity Interest dividend or a distribution in connection with any
reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), option or rights in respect of the Equity
Interests of any Issuer, whether in addition to, in substitution of, as a
conversion of, or in exchange for, any of the Pledged Securities, or otherwise
in respect thereof, such Pledgor shall accept the same as the agent of the
Guaranteed Creditors, hold the same in trust for the Guaranteed Creditors,
segregated from other Property of such Pledgor, and deliver the same forthwith
to the Administrative Agent in the exact form received, duly indorsed by such
Pledgor to the Administrative Agent, if required, together with an undated stock
power or other transfer instrument covering such certificate duly executed in
blank by such Pledgor and with, if the Administrative Agent so requests,
signature guaranteed, to be held by the Administrative Agent, subject to the
terms hereof, as additional collateral security for the
Obligations.

     

    (b)    
without the prior written consent of the Administrative Agent, such Pledgor will
not (i) unless otherwise expressly permitted hereby or under the other Loan
Documents, vote to enable, or take any other action to permit, any Issuer to
issue any Equity Interests of any nature or to issue any other securities
convertible into or granting the right to purchase or exchange for any Equity
Interests of any nature of any Issuer, (ii) sell, assign, transfer, exchange, or
otherwise Dispose of, or grant any option with respect to, the Pledged
Securities or Proceeds thereof (except pursuant to a transaction expressly
permitted by the Credit Agreement), (iii) create, incur or permit to exist any
Lien or option in favor of, or any claim of any Person with respect to, any of
the Pledged Securities or Proceeds thereof, or any interest therein, except for
the security interests created by this Agreement and Permitted Liens or (iv)
enter into any agreement or undertaking restricting the right or ability of such
Pledgor or the Administrative Agent to sell, assign or transfer any of the
Pledged Securities or Proceeds thereof.

     

    (c)    
in the case of each Pledgor that is an Issuer, such Issuer agrees that (i) it
will be bound by the terms of this Agreement relating to the Pledged Securities
issued by it and will comply with such terms insofar as such terms are
applicable to it, (ii) it will notify the Administrative Agent promptly in
writing of the occurrence of any of the events described in Section 5.04(a) with
respect to the Pledged Securities issued by it and (iii) the terms of Section
6.02 and Section 6.04 shall apply to it, mutatis mutandis, with
respect to all actions that may be required of it pursuant to Section 6.02 or
Section 6.04 with respect to the Pledged Securities issued by it.  In
the case of any Issuer that is not a Pledgor hereunder, such Pledgor shall
promptly cause such Issuer to execute and deliver to the Administrative Agent an
Acknowledgment and Consent in substantially the form of Exhibit
A.

     

    (d)    
in the case of each Pledgor that is a partner in a Partnership, such Pledgor
hereby consents to the extent required by the applicable Partnership Agreement
to the pledge by each other Pledgor, pursuant to the terms hereof, of the
Pledged Partnership Interests in such Partnership and to the transfer of such
Pledged Partnership Interests to the Administrative Agent or its nominee and to
the substitution of the Administrative Agent or its nominee as a substituted
partner in such Partnership with all the rights, powers and duties of a general
partner or a limited partner, as the case may be.  In the case of each
Pledgor that is a member of an LLC, such Pledgor hereby consents to the extent
required by the applicable LLC Agreement to the pledge by each other Pledgor,
pursuant to the terms hereof, of the Pledged LLC Interests in such LLC and to
the transfer of such Pledged LLC Interests to the Administrative Agent or its
nominee and to the substitution of the Administrative Agent or its nominee as a
substituted member of the LLC with all the rights, powers and duties of a member
of such LLC.

     

    (e)    
such Pledgor shall not agree to any amendment of a Partnership Agreement or LLC
Agreement that in any way adversely affects the perfection of the security
interest of the Administrative Agent in the Pledged Partnership Interests or
Pledged LLC Interests pledged by such Pledgor hereunder, including any amendment
electing to treat the membership interest or partnership interest of such
Pledgor as a security under Section 8-103 of the UCC.

     

    
      
         

      

      
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    (f)    
such Pledgor shall furnish to the Administrative Agent such stock powers and
other instruments as may be required by the Administrative Agent to assure the
transferability of the Pledged Securities when and as often as may be reasonably
requested by the Administrative Agent.

     

    (g)    
the Pledged Securities will at all times constitute not less than 100% of the
Equity Interests of the Issuer thereof owned by any Pledgor (or in the case of
any Issuer owned by any Pledgor that is a Foreign Subsidiary, not less than
sixty-five percent (65%) of the Equity Interests of such
Issuer).  Such Pledgor will not permit any Issuer of any of the
Pledged Securities to issue any new shares of any class of Equity Interests of
such Issuer without the prior written consent of the Administrative
Agent.

     

    Section
5.05.     Obligor
Accounts.

     

    (a)    
Each Obligor agrees that, except as permitted by an order of the Bankruptcy
Court, (i) without the prior written consent of the Administrative Agent, it
will not open, obtain, maintain, or allow to exist any deposit accounts,
securities accounts or commodity accounts owned by such Obligor other than the
Obligor Accounts listed on Schedule 4, (ii) it will obtain the prior written
consent of the Administrative Agent before opening any new deposit account,
securities account or commodity account, (iii) it will, upon request from the
Administrative Agent, use its reasonable best efforts to execute and deliver to
the Administrative Agent (and cause each bank or institution holding any Obligor
Account of such Obligor to execute and deliver to Administrative Agent) an
account control agreement in form and substance satisfactory to the
Administrative Agent, with respect to each Obligor Account owned by such
Obligor, (iv) such Obligor shall direct any Person who becomes a buyer or
account debtor of such Obligor to make payments thereunder solely to an account
that is an Obligor Account.

     

    (b)    
Each Obligor agrees that in the event that such Obligor receives payment from
any Person in a manner that such payment is not deposited into an Obligor
Account, such Obligor agrees to promptly remit such payment in full to an
Obligor Account.

     

    
      
        
        

      

      
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    ARTICLE
VI

    Remedial
Provisions

     

    Section
6.01.     Code and Other
Remedies.

    (a)    
Notwithstanding the provisions of Section 362 of the Bankruptcy Code, but
subject to the Financing Orders, upon the occurrence and during the continuance
of an Event of Default, the Administrative Agent, on behalf of the Guaranteed
Creditors, may exercise without further order of, or application to, the
Bankruptcy Court, in addition to all other rights and remedies granted to them
in the Financing Orders, this Agreement, the other Loan Documents and in any
other instrument or agreement securing, evidencing or relating to the
Obligations, all rights and remedies of a secured party under the UCC or any
other applicable law or otherwise available at law or equity.  Without
limiting the generality of the foregoing, the Administrative Agent, without
demand of performance or other demand, presentment, protest, advertisement or
notice of any kind (except any notice required by law referred to below) to or
upon any Pledgor or any other Person (all and each of which demands, defenses,
advertisements and notices are hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon the Collateral, or any
part thereof, and/or may forthwith sell, lease, assign, give option or options
to purchase, or otherwise Dispose of and deliver the Collateral or any part
thereof (or contract to do any of the foregoing), in one or more parcels at
public or private sale or sales, at any exchange, broker’s board or office of
any Guaranteed Creditor or elsewhere upon such terms and conditions as it may
deem advisable and at such prices as it may deem best, for cash or on credit or
for future delivery without assumption of any credit risk.  Any
Guaranteed Creditor shall have the right upon any such public sale or sales,
and, to the extent permitted by law, upon any such private sale or sales, to
purchase the whole or any part of the Collateral so sold, free of any right or
equity of redemption in any Pledgor, which right or equity is hereby waived and
released.  If applicable to any particular item of Collateral, each
Pledgor further agrees, at the Administrative Agent’s request, to assemble the
Collateral and make it available to the Administrative Agent at places which the
Administrative Agent shall reasonably select, whether at such Pledgor’s premises
or elsewhere.  Any such Disposition by the Administrative Agent either
to itself or to any other Person shall be absolutely free from any claim of
right by Pledgor, including any equity or right of redemption, stay or appraisal
which Pledgor has or may have under any rule of law, regulation or statute now
existing or hereafter adopted (and such Pledgor hereby waives any rights it may
have in respect thereof).  Upon any such Disposition, the
Administrative Agent shall have the right to deliver, assign and transfer to the
purchaser or transferee thereof the Collateral so sold or
transferred.  The Administrative Agent shall apply the net proceeds of
any action taken by it pursuant to this Section 6.01, after deducting all
reasonable costs and expenses of every kind incurred in connection therewith or
incidental to the care or safekeeping of any of the Collateral or in any way
relating to the Collateral or the rights of the Administrative Agent and the
Guaranteed Creditors hereunder, including, without limitation, reasonable
attorneys’ fees and disbursements, to the payment in whole or in part of the
Obligations, in accordance with Section 10.03 of the Credit Agreement, and only
after such application and after the payment by the Administrative Agent of any
other amount required by any provision of law, including, without limitation,
Section 9-615 of the UCC, need the Administrative Agent account for the surplus,
if any, to any Pledgor.  To the extent permitted by applicable law,
each Pledgor waives all Claims, damages and demands it may acquire against the
Administrative Agent or any Guaranteed Creditor arising out of the exercise by
them of any rights hereunder.  If any notice of a proposed Disposition
of Collateral shall be required by law, such notice shall be deemed reasonable
and proper if given at least ten (10) days before such Disposition.

     

    (b)    
In the event that the Administrative Agent elects not to sell the Collateral,
the Administrative Agent retains its rights to Dispose of or utilize the
Collateral or any part or parts thereof in any manner authorized or permitted by
law or in equity, and to apply the Proceeds of the same towards payment of the
Obligations.  Each and every method of Disposition of the Collateral
described in this Agreement shall constitute disposition in a commercially
reasonable manner.

     

    (c)    
The Administrative Agent may appoint any Person as agent to perform any act or
acts necessary or incident to any Disposition of the Collateral.

     

    
      
        
        

      

      
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    Section
6.02.     Pledged
Securities.

    (a)    
(i) Unless an Event of Default shall have occurred and be continuing and the
Administrative Agent shall have given notice to the relevant Pledgor (and, to
the extent that the Pre-Petition First Lien Administrative Agent is acting as
bailee of the Administrative Agent with respect to any applicable Pledged
Securities and/or Pledged Notes, give notice to the Pre-Petition First Lien
Administrative Agent) of the Administrative Agent’s intent to exercise its
corresponding rights pursuant to Section 6.02(b), and solely to the extent not
prohibited by the Credit Agreement and the other Loan Documents, each Pledgor
shall be permitted to receive all cash dividends paid in respect of the Pledged
Securities and all payments made in respect of the Pledged Notes, in each case
paid in the normal course of business of the relevant Issuer (other than
liquidating or distributing dividends), to the extent permitted in the Credit
Agreement, and to exercise all voting, consent and corporate, partnership or
limited liability rights with respect to the Pledged Securities; provided, however, that no vote
shall be cast, consent given or right exercised or other action taken by such
Pledgor that would impair the Collateral, be inconsistent with or result in any
violation of any provision of the Credit Agreement, this Agreement or any other
Loan Document or, without the prior consent of the Administrative Agent and the
Lenders, enable or permit any Issuer of Pledged Securities to issue any Equity
Interest or to issue any other securities convertible into or granting the right
to purchase or exchange for any Equity Interest of any Issuer of Pledged
Securities other than as permitted by the Credit Agreement.  Each
Pledgor and the Pre-Petition First Lien Administrative Agent agree that, to the
extent that any such cash dividends paid in respect of the Pledged Securities
and all such payments made in respect of the Pledged Notes shall be received by
the Pre-Petition First Lien Administrative Agent, such Pre-Petition First Lien
Administrative Agent shall, until such dividends or payments are paid to the
Administrative Agent, hold such dividends or payments in trust for the
Administrative Agent, segregated from other funds of such Pre-Petition First
Lien Administrative Agent, as additional security for the
Obligations.  Furthermore, the Pre-Petition First Lien Administrative
Agent agrees not to exercise any voting, consent and corporate, partnership or
limited liability rights with respect to the Pledged Securities in any manner
other than as specifically provided by the Administrative Agent in
writing.

     

    (ii)    
Each Pledgor and the Pre-Petition First Lien Administrative Agent agree that, to
the extent that any sums paid upon or in respect of any Pledged Securities upon
the liquidation or dissolution of any Issuer of any Pledged Securities, any
distribution of capital made on or in respect of any Pledged Securities or any
Property distributed upon or with respect to any Pledged Securities pursuant to
the recapitalization or reclassification of the capital of any Issuer of Pledged
Securities or pursuant to the reorganization thereof shall, unless otherwise
subject to a perfected security interest in favor of the Administrative Agent,
be delivered to the Administrative Agent to be held by it hereunder as
additional collateral security for the Obligations.  If any sum of
money or Property so paid or distributed in respect of any Pledged Securities
shall be received by such Pledgor or the Pre-Petition First Lien Administrative
Agent, as the case may be, such Pledgor or the Pre-Petition First Lien
Administrative Agent, as the case may be, shall, until such money or Property is
paid or delivered to the Administrative Agent, hold such money or Property in
trust for the Administrative Agent, segregated from other funds of such Pledgor
or the Pre-Petition First Lien Administrative Agent, as the case may be, as
additional security for the Obligations.

     

    
      
         

      

      
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    (b)    
Upon the occurrence and during the continuance of an Event of Default, but
subject to the terms of the Financing Orders and the applicable provisions of
the Bankruptcy Code, upon notice by the Administrative Agent of its intent to
exercise such rights to the relevant Pledgor or Pledgors and, if applicable, the
Pre-Petition First Lien Administrative Agent, (i) the Administrative Agent shall
have the right to receive any and all cash dividends, payments, Property or
other Proceeds paid in respect of the Pledged Securities and make application
thereof to the Borrower Obligations in accordance with Section 10.03 of the
Credit Agreement, and (ii) any or all of the Pledged Securities shall be
registered in the name of the Administrative Agent or its nominee, and (iii) the
Administrative Agent or its nominee may exercise (A) all voting, consent,
corporate, partnership or limited liability and other rights pertaining to such
Pledged Securities at any meeting of shareholders, partners or members (or other
equivalent body) of the relevant Issuer or Issuers or otherwise and (B) any and
all rights of conversion, exchange and subscription and any other rights,
privileges or options pertaining to such Pledged Securities as if it were the
absolute owner thereof (including, without limitation, the right to exchange at
its discretion any and all of the Pledged Securities upon the merger,
consolidation, reorganization, recapitalization or other fundamental change in
the organizational structure of any Issuer, or upon the exercise by any Pledgor,
the Administrative Agent or the Pre-Petition First Lien Administrative Agent, in
its capacity as bailee of the Administrative Agent, of any right, privilege or
option pertaining to such Pledged Securities, and in connection therewith, the
right to deposit and deliver any and all of the Pledged Securities with any
committee, depositary, transfer agent, registrar or other designated agency upon
such terms and conditions as the Administrative Agent may determine, but subject
to the terms of the Financing Orders), all without liability except to account
for Property actually received by it, but the Administrative Agent shall have no
duty to any Pledgor or to the Pre-Petition First Lien Administrative Agent to
exercise any such right, privilege or option and shall not be responsible for
any failure to do so or delay in so doing.

     

    (c)    
In order to permit the Administrative Agent to exercise the voting and other
consensual rights that it may be entitled to exercise pursuant hereto and to
receive all dividends and other distributions that it may be entitled to receive
hereunder, (i) each Pledgor shall promptly execute and deliver (or cause to be
executed and delivered) to the Administrative Agent all such proxies, dividend
payment orders and other instruments as the Administrative Agent may from time
to time reasonably request and (ii) without limiting the effect of clause (i)
above, such Pledgor hereby grants to the Administrative Agent or, to the extent
applicable, the Pre-Petition First Lien Administrative Agent, in its capacity as
bailee of the Administrative Agent, an irrevocable proxy to vote all or any part
of the Pledged Securities and to exercise all other rights, powers, privileges
and remedies to which a holder of the Pledged Securities would be entitled
(including giving or withholding written consents of shareholders, partners or
members, as the case may be, calling special meetings of shareholders, partners
or members, as the case may be, and voting at such meetings), which proxy shall
be effective, automatically and without the necessity of any action (including
any transfer of any Pledged Securities on the record books of the Issuer
thereof) by any other Person (including the Issuer of such Pledged Securities or
any officer or agent thereof) upon the occurrence and during the continuance of
an Event of Default (but subject to the terms of the Financing Orders) and which
proxy shall only terminate upon the payment in full in cash of the
Obligations.

     

    (d)    
Each Pledgor hereby authorizes and instructs each Issuer of any Pledged
Securities pledged by such Pledgor hereunder to (i) comply with any instruction
received by it from the Administrative Agent in writing that (A) states that an
Event of Default has occurred and is continuing and (B) is otherwise in
accordance with the terms of this Agreement and the Financing Orders, without
any other or further instructions from such Pledgor, and each Pledgor agrees
that each Issuer shall be fully protected in so complying, and (ii) unless
otherwise expressly permitted hereby, pay any dividends or other payments with
respect to the Pledged Securities directly to the Administrative
Agent.  The Pre-Petition First Lien Administrative Agent hereby agrees
with the terms of this Section 6.02(d).

     

    
      
         

      

      
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    (e)    
Upon the occurrence and during the continuance of an Event of
Default,  if the Issuer of any Pledged Securities is the subject of
bankruptcy, insolvency, receivership, custodianship or other proceedings under
the supervision of any Governmental Authority (other than the Borrower and HPPC
with respect to their respective Bankruptcy Case), then all rights of the
Pledgor in respect thereof to exercise the voting and other consensual rights
which such Pledgor would otherwise be entitled to exercise with respect to the
Pledged Securities issued by such Issuer shall cease, and all such rights shall
thereupon become vested in the Administrative Agent who shall thereupon have the
sole right to exercise such voting and other consensual rights, but the
Administrative Agent shall have no duty to exercise any such voting or other
consensual rights and shall not be responsible for any failure to do so or delay
in so doing.  The Pre-Petition First Lien Administrative Agent hereby
agrees with the terms of this Section 6.02(e).

     

    Section
6.03.     [Reserved].

     

    Section
6.04.     Private Sales of Pledged
Securities.

     

    (a)    
Each Pledgor recognizes that the Administrative Agent may be unable to effect a
public sale of any or all the Pledged Securities, by reason of certain
prohibitions contained in the Securities Act and applicable state securities
laws or otherwise or may determine that a public sale is impracticable or not
commercially reasonable and, accordingly, may resort to one or more private
sales thereof to a restricted group of purchasers which will be obliged to
agree, among other things, to acquire such securities for their own account for
investment and not with a view to the distribution or resale
thereof.  Each Pledgor acknowledges and agrees that any such private
sale may result in prices and other terms less favorable than if such sale were
a public sale and, notwithstanding such circumstances, agrees that any such
private sale shall be deemed to have been made in a commercially reasonable
manner.  The Administrative Agent shall be under no obligation to
delay a sale of any of the Pledged Securities for the period of time necessary
to permit the Issuer thereof to register such securities for public sale under
the Securities Act, or under applicable state securities laws, even if such
Issuer would agree to do so.

     

    (b)    
Each Pledgor agrees to use its best efforts to do or cause to be done all such
other acts as may reasonably be necessary to make such Disposition of all or any
portion of the Pledged Securities pursuant to this Section 6.04 valid and
binding and in compliance with any and all other applicable Governmental
Requirements.  Each Pledgor further agrees that a breach of any of the
covenants contained in this Section 6.04 will cause irreparable injury to the
Guaranteed Creditors, that the Guaranteed Creditors have no adequate remedy at
law in respect of such breach and, as a consequence, that each and every
covenant contained in this Section 6.04 shall be specifically enforceable
against such Pledgor, and such Pledgor hereby waives and agrees not to assert
any defenses against an action for specific performance of such covenants except
for a defense that no Event of Default has occurred under the Credit
Agreement.

     

    Section
6.05.     Obligors to Hold in Trust;
Collections, etc.  Upon the occurrence and continuation of an
Event of Default, the Administrative Agent may, in its sole discretion, in its
name (on behalf of the Guaranteed Creditors) or in the name of any Obligor or
otherwise, demand, sue for, collect or receive any money or Property at any time
payable or receivable on account of or in exchange for, or make any commercially
reasonable compromise or settlement deemed desirable with respect to, any of the
Collateral, but shall be under no obligation to do so, or the Administrative
Agent may extend the time of payment, arrange for payment in installments, or
otherwise modify the terms of, or release, any of the Collateral, without
thereby incurring responsibility to, or discharging or otherwise affecting any
liability of, any Obligor.  The Administrative Agent shall not be
required to take any steps to preserve any rights against prior parties to the
Collateral.  If any Obligor fails to make any payment or take any
action required hereunder, the Administrative Agent may make such payments and
take all such actions as the Administrative Agent reasonably deems necessary to
protect the Administrative Agent’s (on behalf of the Guaranteed Creditors)
security interests in the Collateral and/or the value thereof, and the
Administrative Agent is hereby authorized (without limiting the general nature
of the authority hereinabove conferred) to pay, purchase, contest or compromise
any Liens that in the judgment of the Administrative Agent appear to be equal
to, prior to or superior to the Liens of the Administrative Agent (on behalf of
the Guaranteed Creditors) in the Collateral (other than Permitted Liens) and any
Liens not expressly permitted under the Loan Documents.

     

    
      
         

      

      
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    Section
6.06.     Waiver;
Deficiency.  Each Pledgor waives and agrees not to assert any
rights or privileges which it may acquire under the UCC.  Each Pledgor
shall remain liable for any deficiency if the Proceeds of any Disposition of the
Collateral are insufficient to pay its Obligations and the fees and
disbursements of any attorneys employed by the Administrative Agent or any
Guaranteed Creditor to collect such deficiency.

     

    Section
6.07.     Non-Judicial
Enforcement.  The Administrative Agent may enforce its rights
hereunder without prior judicial process or judicial hearing, and to the extent
permitted by law, each Pledgor expressly waives any and all legal rights which
might otherwise require the Administrative Agent to enforce its rights by
judicial process.

     

    ARTICLE
VII

    The
Administrative Agent

     

    Section
7.01.     Administrative Agent’s
Appointment as Attorney-in-Fact, Etc.

     

    (a)    
Each Pledgor hereby irrevocably constitutes and appoints the Administrative
Agent and any officer or agent thereof, with full power of substitution, as its
true and lawful attorney-in-fact with full irrevocable power and authority in
the place and stead of such Pledgor and in the name of such Pledgor or in its
own name, for the purpose of carrying out the terms of this Agreement, to take
any and all reasonably appropriate action and to execute any and all documents
and instruments which may be reasonably necessary or desirable to accomplish the
purposes of this Agreement, and, without limiting the generality of the
foregoing, each Pledgor hereby gives the Administrative Agent the power and
right, on behalf of such Pledgor, without notice to or assent by such Pledgor,
but subject to the terms of the Financing Orders and the applicable provisions
of the Bankruptcy Code, to do any or all of the following:

     

    (i)    
unless being disputed under Section 8.04 of the Credit Agreement, pay or
discharge Taxes and Liens levied or placed on or threatened against the
Collateral, effect any repairs or any insurance called for by the terms of this
Agreement or any other Loan Document and pay all or any part of the premiums
therefor and the costs thereof;

     

    (ii)    
execute, in connection with any Disposition provided for in Section 6.01 or
Section 6.04, any endorsements, assignments or other instruments of conveyance
or transfer with respect to the Collateral; and

    
      
         

      

      
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    (iii)    
(A) direct any party liable for any payment under any of the Collateral to make
payment of any and all moneys due or to become due thereunder directly to the
Administrative Agent or as the Administrative Agent shall direct; (B) ask or
demand for, collect, and receive payment of and receipt for, any and all moneys,
Claims and other amounts due or to become due at any time in respect of or
arising out of any Collateral; (C) in the name of such Pledgor or its own name,
or otherwise, take possession of and indorse and collect any check, draft, note,
acceptance or other instrument for the payment of moneys due with respect to any
Collateral and commence and prosecute any suits, actions or proceedings at law
or in equity in any court of competent jurisdiction to collect the Collateral or
any portion thereof and to enforce any other right in respect of any Collateral;
(D) defend any suit, action or proceeding brought against such Pledgor with
respect to any Collateral; (E) settle, compromise or adjust any such suit,
action or proceeding and, in connection therewith, give such discharges or
releases as the Administrative Agent may deem appropriate; and (F) generally,
sell, transfer, pledge, Dispose of and make any agreement with respect to or
otherwise deal with any of the Collateral as fully and completely as though the
Administrative Agent were the absolute owner thereof for all purposes, and do,
at the Administrative Agent’s option and such Pledgor’s expense, at any time, or
from time to time, all acts and things which the Administrative Agent deems
necessary to protect, preserve or realize upon the Collateral and the
Administrative Agent’s and the Guaranteed Creditors’ security interests therein
and to effect the intent of this Agreement, all as fully and effectively as such
Pledgor might do.

     

    Anything
in this Section 7.01(a) to the contrary notwithstanding, the Administrative
Agent agrees that it will not exercise any rights under the power of attorney
provided for in this Section 7.01(a) unless an Event of Default shall have
occurred and be continuing and is in accordance with the terms of the Financing
Orders and the applicable provisions of the Bankruptcy Code.

     

    (b)    
If any Obligor fails to perform or comply with any of its agreements contained
herein within the applicable grace periods, the Administrative Agent, at its
option, but without any obligation so to do, may perform or comply, or otherwise
cause performance or compliance, with such agreement.

     

    (c)    
The expenses of the Administrative Agent incurred in connection with actions
undertaken as provided in this Section 7.01, together with interest thereon at a
rate per annum equal to the post-default rate specified in Section 3.02(c) of
the Credit Agreement, but in no event to exceed the Highest Lawful Rate, from
the date of payment by the Administrative Agent to the date reimbursed by the
relevant Obligor, shall be payable by such Obligor to the Administrative Agent
on demand.

     

    (d)    
Each Obligor hereby ratifies all that said attorneys shall lawfully do or cause
to be done by virtue and in compliance hereof.  All powers,
authorizations and agencies contained in this Agreement are coupled with an
interest and are irrevocable until this Agreement is terminated and the security
interests created hereby are released.

    
      
         

      

      
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    Section
7.02.     Duty of Administrative
Agent.  The Administrative Agent’s sole duty with respect to
the custody, safekeeping and physical preservation of the Collateral in its
possession, under Section 9-207 of the UCC or otherwise, shall be to deal with
it in the same manner as the Administrative Agent deals with similar Property
for its own account and shall be deemed to have exercised reasonable care in the
custody and preservation of the Collateral in its possession if the Collateral
is accorded treatment substantially equal to that which comparable secured
parties accord comparable collateral.  Neither the Administrative
Agent, any Guaranteed Creditor nor any of their Related Parties shall be liable
for failure to demand, collect or realize upon any of the Collateral or for any
delay in doing so or shall be under any obligation to sell or otherwise Dispose
of any Collateral upon the request of any Pledgor or any other Person or to take
any other action whatsoever with regard to the Collateral or any part
thereof.  The powers conferred on the Administrative Agent and the
Guaranteed Creditors hereunder are solely to protect the Administrative Agent’s
and the Guaranteed Creditors’ interests in the Collateral and shall not impose
any duty upon the Administrative Agent or any Guaranteed Creditor to exercise
any such powers.  The Administrative Agent and the Guaranteed
Creditors shall be accountable only for amounts that they actually receive as a
result of the exercise of such powers, and neither they nor any of their Related
Parties shall be responsible to any Obligor for any act or failure to act
hereunder, except for their own gross negligence or willful
misconduct.  To the fullest extent permitted by applicable law, the
Administrative Agent shall be under no duty whatsoever to make or give any
presentment, notice of dishonor, protest, demand for performance, notice of
non-performance, notice of intent to accelerate, notice of acceleration, or
other notice or demand in connection with any Collateral or the Obligations, or
to take any steps necessary to preserve any rights against any Pledgor or other
Person or ascertaining or taking action with respect to calls, conversions,
exchanges, maturities, tenders or other matters relative to any Collateral,
whether or not it has or is deemed to have knowledge of such
matters.  Each Obligor, to the extent permitted by applicable law,
waives any right of marshaling in respect of any and all Collateral, and waives
any right to require the Administrative Agent or any Guaranteed Creditor to
proceed against any Obligor or other Person, exhaust any Collateral or enforce
any other remedy which the Administrative Agent or any Guaranteed Creditor now
has or may hereafter have against each Obligor, any Obligor or other
Person.

     

    Section
7.03.     Filing of Financing
Statements.  Pursuant to the UCC and any other applicable law,
each Pledgor authorizes the Administrative Agent to file or record financing
statements and other filing or recording documents or instruments with respect
to the Collateral in such form and in such offices as the Administrative Agent
reasonably determines appropriate to perfect the security interests of the
Administrative Agent under this Agreement.  A photographic or other
reproduction of this Agreement shall be sufficient as a financing statement or
other filing or recording document or instrument for filing or recording in any
jurisdiction.

     

    Section
7.04.     Authority of Administrative
Agent.  Each Obligor acknowledges that the rights and
responsibilities of the Administrative Agent under this Agreement with respect
to any action taken by the Administrative Agent or the exercise or non-exercise
by the Administrative Agent of any option, voting right, request, judgment or
other right or remedy provided for herein or resulting or arising out of this
Agreement shall, as between the Administrative Agent and the Guaranteed
Creditors, be governed by the Credit Agreement and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the
Administrative Agent and the Obligors, the Administrative Agent shall be
conclusively presumed to be acting as agent for the Guaranteed Creditors with
full and valid authority so to act or refrain from acting, and no Obligor shall
be under any obligation, or entitlement, to make any inquiry respecting such
authority.

     

    ARTICLE
VIII

    Subordination
of Indebtedness

     

    
      Section
8.01.     Subordination of All Obligor
Claims.  As used herein, the term “Obligor Claims” shall mean
all debts and obligations of the Borrower or any other Obligor to any other
Obligor, whether such debts and obligations now exist or are hereafter incurred
or arise, or whether the obligation of the debtor thereon be direct, contingent,
primary, secondary, several, joint and several, or otherwise, and irrespective
of whether such debts or obligations be evidenced by note, contract, open
account, or otherwise, and irrespective of the Person or Persons in whose favor
such debts or obligations may, at their inception, have been, or may hereafter
be created, or the manner in which they have been or may hereafter be acquired
by.  Each Obligor hereby subordinates and makes junior to the
Obligations any and all Obligor Claims owed by the Borrower or any other Obligor
to such Obligor.  After and during the continuation of an Event of
Default, no Obligor shall receive or collect, directly or indirectly, from any
Obligor in respect thereof any amount upon the Obligor
Claims.

    

    
      
         

      

      
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    Section
8.02.     [Reserved].

     

    Section
8.03.     Payments Held in
Trust.  In the event that notwithstanding Section 8.01, any
Obligor should receive any funds, payments, Claims or distributions which are
prohibited by such Sections, then it agrees: (a) to hold in trust for the
Administrative Agent and the Guaranteed Creditors an amount equal to the amount
of all funds, payments, Claims or distributions so received, and (b) that it
shall have absolutely no dominion over the amount of such funds, payments,
Claims or distributions except to pay them promptly to the Administrative Agent,
for the benefit of the Guaranteed Creditors; and each Obligor covenants promptly
to pay the same to the Administrative Agent.

     

    Section
8.04.     Liens
Subordinate.  Each Obligor agrees that, until the Borrower
Obligations are paid in full in cash, no Letter of Credit shall be outstanding
and the termination of all of the Commitments, any Liens securing payment of the
Obligor Claims (other than the Obligations) shall be and remain inferior and
subordinate to any Liens securing payment of the Obligations, regardless of
whether such encumbrances in favor of such Obligor, the Administrative Agent or
any Guaranteed Creditor presently exist or are hereafter created or
attach.

     

    Section
8.05.     Notation of
Records.  Upon the request of the Administrative Agent, all
promissory notes and all accounts receivable ledgers or other evidence of the
Obligor Claims accepted by or held by any Obligor shall contain a specific
written notice thereon that the indebtedness evidenced thereby is subordinated
under the terms of this Agreement.

     

    ARTICLE
IX

    Miscellaneous

     

    Section
9.01.     Waiver.  No
failure on the part of the Administrative Agent or any Guaranteed Creditor to
exercise and no delay in exercising, and no course of dealing with respect to,
any right, power, privilege or remedy or any abandonment or discontinuance of
steps to enforce such right, power, privilege or remedy under this Agreement or
any other Loan Document shall operate as a waiver thereof, nor shall any single
or partial exercise of any right, power, privilege or remedy under this
Agreement or any other Loan Document preclude or be construed as a waiver of any
other or further exercise thereof or the exercise of any other right, power,
privilege or remedy.  The remedies provided herein are cumulative and
not exclusive of any remedies provided by law or equity.

     

    Section
9.02.     Notices.  All
notices and other communications provided for herein shall be given in the
manner and subject to the terms of Section 13.01 of the Credit Agreement; provided, that any
such notice, request or demand to or upon any Guarantor shall be addressed to
such Guarantor at its notice address set forth on Schedule 1.

     

    
      
         

      

      
        - 24
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    Section 9.03.     Payment of Expenses,
Indemnities, Etc.

     

    (a)    
Each Guarantor agrees to pay or reimburse each Guaranteed Creditor and the
Administrative Agent for all expenses incurred by such Person, including the
fees, charges and disbursements of any in-house and outside-retained counsel for
the Administrative Agent or any Guaranteed Creditor, in connection with the
enforcement or protection of its rights in connection with this Agreement or any
other Loan Document, including, without limitation, all costs and expenses
incurred in collecting against such Guarantor under the Guarantee or otherwise
enforcing or preserving any rights under this Agreement and the other Loan
Documents to which such Guarantor is a party.

     

    (b)    
Each Guarantor agrees to pay, and to save the Administrative Agent and the
Guaranteed Creditors harmless from, any and all liabilities with respect to, or
resulting from any delay in paying, any and all Other Taxes which may be payable
or determined to be payable with respect to any of the Collateral or in
connection with any of the transactions contemplated by this
Agreement.

     

    (c)    
Each Guarantor agrees to pay, and to save the Administrative Agent and the
Guaranteed Creditors harmless from, any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever with respect to the execution,
delivery, enforcement, performance and administration of this Agreement to the
extent the Borrower would be required to do so pursuant to Section 13.03 of the
Credit Agreement.

     

    Section
9.04.      Amendments in
Writing.  None of the terms or provisions of this Agreement may
be waived, amended, supplemented or otherwise modified except in accordance with
Section 13.02 of the Credit Agreement (and, with respect to any waiver,
amendment, supplement or other modification of the rights or obligations of the
Pre-Petition Administrative Agent hereunder, the prior written approval from the
Pre-Petition Administrative Agent to such waiver, amendment, supplement or other
modification shall be required).

     

    Section
9.05.     Successors and
Assigns.  The provisions of this Agreement shall be binding
upon the Obligors and their successors and assigns and shall inure to the
benefit of the Administrative Agent and the Guaranteed Creditors and their
respective successors and assigns; provided, that except
as set forth in Section 9.12 of the Credit Agreement, no Obligor may assign,
transfer or delegate any of its rights or obligations under this Agreement
without the prior written consent of the Administrative Agent and the Lenders,
and any such purported assignment, transfer or delegation shall be null and
void.

     

    Section
9.06.     Survival; Revival;
Reinstatement.

     

    (a)    
All covenants, agreements, representations and warranties made by any Obligor
herein and in the certificates or other instruments delivered in connection with
or pursuant to this Agreement or any other Loan Document to which it is a party
shall be considered to have been relied upon by the Administrative Agent, the
other Agents, the Issuing Bank and the Lenders and shall survive the execution
and delivery of this Agreement and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that the Administrative Agent, the other
Agents, the Issuing Bank or any Lender may have had notice or knowledge of any
Default or incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount
payable under the Credit Agreement is outstanding and unpaid or any Letter of
Credit is outstanding and so long as the Aggregate Commitments have not expired
or terminated.  The provisions of Section 9.03 shall survive and
remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Loans, the expiration or
termination of the Letters of Credit and the Aggregate Commitments or the
termination of this Agreement, any other Loan Document or any provision hereof
or thereof.

    
      
         

      

      
        - 25
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    (b)    
To the extent that any payments on the Guarantor Obligations or Proceeds of any
Collateral are subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid to a trustee, debtor in
possession, receiver or other Person under any bankruptcy law, common law or
equitable cause, then to such extent, the Guarantor Obligations so satisfied
shall be revived and continue as if such payment or Proceeds had not been
received and the Administrative Agent’s and the Guaranteed Creditors’ Liens,
security interests, rights, powers and remedies under this Agreement and each
other Loan Document shall continue in full force and effect.  In such
event, each Loan Document shall be automatically reinstated and the Obligors
shall take such action as may be reasonably requested by the Administrative
Agent and the Guaranteed Creditors to effect such reinstatement.

     

    Section
9.07.     Counterparts; Integration;
Effectiveness.

     

    (a)    
This Agreement may be executed in counterparts (and by different parties hereto
on different counterparts), each of which shall constitute an original, but all
of which when taken together shall constitute a single contract.

     

    (b)    
This Agreement, the other Loan Documents and any separate letter agreements with
respect to fees payable to the Administrative Agent constitute the entire
contract among the parties relating to the subject matter hereof and thereof and
supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof and thereof.  This Agreement and
the other Loan Documents (other than the Letters of Credit and the Letter of
Credit Agreements) represent the final agreement among the parties hereto and
thereto and may not be contradicted by evidence of prior, contemporaneous or
subsequent oral agreements of the parties.  There are no unwritten
oral agreements between the parties.

     

    (c)    
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, the Lenders and their respective successors and
assigns.  Delivery of an executed counterpart of a signature page of
this Agreement by telecopy or by email shall be effective as delivery of a
manually executed counterpart of this Agreement.

     

    Section
9.08.     Severability.  Any
provision of this Agreement or any other Loan Document held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining
provisions hereof or thereof; and the invalidity of a particular provision in a
particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

    
      
         

      

      
        - 26
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    Section
9.09.     Set-Off.  If
an Event of Default shall have occurred and be continuing, each Guaranteed
Creditor and each of its Affiliates is hereby authorized at any time and from
time to time, to the fullest extent permitted by law (but subject to the terms
of the Financing Orders and the applicable provisions of the Bankruptcy Code),
to set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other obligations (of whatsoever
kind) at any time owing by such Guaranteed Creditor or Affiliate to or for the
credit or the account of any Obligor against any of and all the obligations of
the Obligor owed to such Guaranteed Creditor now or hereafter existing under
this Agreement or any other Loan Document, irrespective of whether or not such
Guaranteed Creditor shall have made any demand under this Agreement or any other
Loan Document and although such obligations may be unmatured.  The
rights of each Guaranteed Creditor under this Section 9.09 are in addition to
other rights and remedies (including other rights of setoff) which such
Guaranteed Creditor or its Affiliates may have.

     

    Section
9.10.     Governing Law; Submission to
Jurisdiction.

     

    (a)    
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF TEXAS.

     

    (b)    
EXCEPT FOR MATTERS WITHIN THE EXCLUSIVE JURISDICTION OF THE BANKRUPTCY COURT,
ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT SHALL BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS OR OF THE UNITED
STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF TEXAS, AND, BY EXECUTION AND
DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES HEREBY ACCEPTS FOR ITSELF AND
(TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS.  EXCEPT FOR
MATTERS WITHIN THE EXCLUSIVE JURISDICTION OF THE BANKRUPTCY COURT, EACH PARTY
HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH
ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS IN RESPECT OF THIS
AGREEMENT OR ANY DOCUMENT RELATED HERETO.  THIS SUBMISSION TO
JURISDICTION IS NON-EXCLUSIVE AND DOES NOT PRECLUDE A PARTY FROM OBTAINING
JURISDICTION OVER ANOTHER PARTY IN ANY COURT OTHERWISE HAVING
JURISDICTION.

     

    (c)    
EACH PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE
AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES
THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT THE ADDRESS
SPECIFIED IN SECTION 13.01 OF THE CREDIT AGREEMENT (OR SUCH OTHER ADDRESS AS IS
SPECIFIED PURSUANT TO SECTION 13.01 OF THE CREDIT AGREEMENT) OR SCHEDULE 1
HERETO, AS APPLICABLE, SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER
SUCH MAILING.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY OR ANY
HOLDER OF A NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANOTHER PARTY IN ANY
OTHER JURISDICTION.

    
      
         

      

      
        - 27
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    EACH
PARTY HEREBY (1) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN; (2)
IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT
MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY,
PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO,
ACTUAL DAMAGES; (3) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR
AGENT OF COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVERS, AND (4) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO
ENTER INTO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE TRANSACTIONS
CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS CONTAINED IN THIS SECTION 9.10.

     

    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.

     

    Section
9.12.     Acknowledgments.  Each
Obligor hereby acknowledges that:

     

    (a)    
it has been advised by counsel in the negotiation, execution and delivery of
this Agreement and the other Loan Documents to which it is a party;

     

    (b)    
neither the Administrative Agent, any Guaranteed Creditor nor the Pre-Petition
First Lien Administrative Agent, in its capacity as bailee for the
Administrative Agent, has any fiduciary relationship with or duty to any Obligor
arising out of or in connection with this Agreement or any of the other Loan
Documents, and the relationship between the Obligors, on the one hand, and the
Administrative Agent and Guaranteed Creditors, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and

     

    (c)    
no joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Guaranteed
Creditors or among the Obligors and the Guaranteed Creditors.

     

    (d)    
Each of the parties hereto specifically agrees that it has a duty to read this
Agreement, the Security Instruments and the other Loan Documents and agrees that
it is charged with notice and knowledge of the terms of this Agreement, the
Security Instruments and the other Loan Documents; that it has in fact read this
Agreement, the Security Instruments and the other Loan Documents and is fully
informed and has full notice and knowledge of the terms, conditions and effects
thereof; that it has been represented by independent legal counsel of its choice
throughout the negotiations preceding its execution of this Agreement and the
Security Instruments; and has received the advice of its attorney in entering
into this Agreement and the Security Instruments; and that it recognizes that
certain of the terms of this Agreement and the Security Instruments result in
one party assuming the liability inherent in some aspects of the transaction and
relieving the other party of its responsibility for such
liability.  EACH
PARTY HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR
ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS AGREEMENT AND THE SECURITY
INSTRUMENTS ON THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH
PROVISION OR THAT THE PROVISION IS NOT “CONSPICUOUS.”

    
      
         

      

      
        - 28
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    Section
9.13.     Additional Obligors and
Pledgors.  Each Subsidiary of the Borrower that is required to
become a party to this Agreement pursuant to Section 8.15 of the Credit
Agreement shall become an Obligor for all purposes of this Agreement upon
execution and delivery by such Subsidiary of an Assumption Agreement in the form
of Annex I hereto and shall thereafter have the same rights, benefits and
obligations as an Obligor party hereto on the date hereof.  Each
Obligor that is required to pledge Equity Interests of its Subsidiaries shall
execute and deliver a Supplement in the form of Annex II hereto, if such Equity
Interests were not previously pledged.

     

    Section
9.14.     Releases.

     

    (a)    
Release Upon Payment
in Full.  The grant of a security interest hereunder and all of
rights, powers and remedies in connection herewith shall remain in full force
and effect until the Administrative Agent has (i) retransferred and delivered
all Collateral in its possession to the Pledgors (or to the Pre-Petition First
Lien Administrative Agent or any other agent for lenders holding a security
interest in such Collateral at such time), and (ii) executed a written release
or termination statement and reassigned to the Pledgors without recourse or
warranty any remaining Collateral and all rights conveyed
hereby.  Upon the complete payment of the Borrower Obligations, the
termination of all Commitments, and the compliance by the Obligors with all
covenants and agreements hereof, the Administrative Agent, at the written
request and expense of the Borrower, and in accordance with the terms of the
Financing Orders, will promptly release, reassign and transfer the Collateral to
the Pledgors (or to the Pre-Petition First Lien Administrative Agent or any
other agent for lenders holding a security interest in such Collateral at such
time) and declare this Agreement to be of no further force or
effect.

     

    (b)    
Partial
Releases.  If any of the Collateral shall be sold, transferred
or otherwise Disposed of by any Pledgor in a transaction permitted by the Credit
Agreement, then the Administrative Agent, at the request and sole expense of
such Pledgor, and in accordance with the terms of the Financing Orders, shall
promptly execute and deliver to such Pledgor all releases or other documents
reasonably necessary or desirable for the release of the Liens created hereby on
such Collateral and the Equity Interests of the Issuer thereof.  At
the request and sole expense of the Borrower, and in accordance with the terms
of the Financing Orders, a Guarantor shall be released from its obligations
hereunder in the event that all the Equity Interests of such Guarantor shall be
Disposed of in a transaction permitted by the Credit Agreement; provided, that the
Borrower shall have delivered to the Administrative Agent, at least ten (10)
Business Days prior to the date of the proposed release, a written request of a
Responsible Officer of the Borrower for release identifying the relevant
Guarantor and the terms of the Disposition in reasonable detail, including the
price thereof and any expenses in connection therewith, together with a
certification by the Borrower stating that such transaction is in compliance
with the Credit Agreement and the other Loan Documents.

     

    (c)    
Retention in
Satisfaction.  Except as may be expressly applicable pursuant
to Section 9-620 of the UCC, no action taken or omission to act by the
Administrative Agent or the Guaranteed Creditors hereunder, including, without
limitation, any exercise of voting or consensual rights or any other action
taken or inaction, shall be deemed to constitute a retention of the Collateral
in satisfaction of the Obligations or otherwise to be in full satisfaction of
the Obligations, and the Obligations shall remain in full force and effect,
until the Administrative Agent and the Guaranteed Creditors shall have applied
payments (including, without limitation, collections from Collateral) towards
the Obligations in the full amount then outstanding or until such subsequent
time as is provided in Section 9.14(a).

    
      
         

      

      
        - 29
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    Section
9.15.     Acceptance.  Each
Obligor hereby expressly waives notice of acceptance of this Agreement,
acceptance on the part of the Administrative Agent and the Guaranteed Creditors
being conclusively presumed by their request for this Agreement and delivery of
the same to the Administrative Agent.

     

     [Signature
Page Follows]

    
      
         

      

      
        - 30
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    IN
WITNESS WHEREOF, each of the undersigned has caused this Debtor-In-Possession
Guaranty and Collateral Agreement to be duly executed and delivered as of the
date first above written.

     

    
      
        
          	
                  BORROWER:

                	
                  AURORA OIL & GAS
      CORPORATION,

                  a
      Debtor and Debtor-In-Possession,

                  as
      Borrower

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Sanford Edlein

                
	 
      	
                  Name:

                	
                  Sanford Edlein

                
	 
      	
                  Title:

                	
                  Chief Restructuring
  Officer

                
	 
      	 
      	 
      
	
                  GUARANTORS:

                	
                  HUDSON PIPELINE &
      PROCESSING CO., LLC,

                
	 
      	
                  a
      Debtor and Debtor-In-Possession,

                
	 
      	
                  as
      a Guarantor

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  Aurora Oil & Gas
      Corporation,

                
	 
      	 
      	
                  as
      a Debtor and Debtor-In-Possession,

                
	 
      	 
      	
                  as
      its sole manager

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Sanford Edlein

                
	 
      	
                  Name:

                	
                  Sanford Edlein

                
	 
      	
                  Title:

                	
                  Chief Restructuring
  Officer

                

        

      

    

     

    Signature Page –Debtor-In-Possession Guaranty
and Collateral Agreement

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            	
                    ADMINISTRATIVE
      AGENT:

                  	
                    BNP PARIBAS, as
      Administrative Agent

                  
	 	 	 
	 
      	
                    By:

                  	
                    /s/ Amy Kirschner

                  
	 
      	
                    Name:

                  	
                    Amy Kirschner

                  
	 
      	
                    Title:

                  	
                    Managing Director

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	
                    /s/ Claudia DeSimio

                  
	 
      	
                    Name:

                  	
                    Claudia DeSimio

                  
	 
      	
                    Title:

                  	
                    Vice
President

                  

          

        

      

    

     

    Solely
for purposes of Sections 3.02, 5.04, 6.02, 9.04 and 9.12(b) of this
Debtor-In-Possession Guaranty and Collateral Agreement:

     

    
      
        
          
            
              
                	
                        PRE-PETITION
      FIRST LIEN

                        ADMINISTRATIVE
      AGENT:

                      	
                        BNP PARIBAS, as
      Pre-Petition First Lien

                        Administrative
      Agent

                      
	 	 	 
	 
      	
                        By:

                      	
                        /s/ Betsy Jocher

                      
	 
      	
                        Name:

                      	
                        Betsy Jocher

                      
	 
      	
                        Title:

                      	
                        Director

                      
	 	 	 
	 
      	
                        By:

                      	
                        /s/ Claudia DeSimio

                      
	 
      	
                        Name:

                      	
                        Claudia DeSimio

                      
	 
      	
                        Title:

                      	
                        Vice
President

                      

              

            

          

        

      

    

     

    Signature Page –Debtor-In-Possession Guaranty
and Collateral Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Annex
I

     

    Assumption
Agreement

     

    ASSUMPTION
AGREEMENT, dated as of [______], 20[__], made by [_______________] (the “Additional Obligor”),
in favor of BNP Paribas, as administrative agent (in such capacity, the “Administrative
Agent”) for the financial institutions (the “Lenders”) parties to
the Credit Agreement referred to below.  All capitalized terms not
defined herein shall have the meaning ascribed to them in such Credit
Agreement.

     

    WITNESSETH:

     

    WHEREAS,
Aurora Oil & Gas Corporation, a Utah corporation (the “Borrower”), Hudson
Pipeline & Processing Co., LLC, BNP Paribas, as the Administrative Agent and
the Lenders have entered into that certain Debtor-In-Possession Credit
Agreement, dated as of October 6, 2009 (as amended, supplemented or otherwise
modified from time to time, the “Credit
Agreement”);

     

    WHEREAS,
in connection with the Credit Agreement, the Borrower and certain of its
Affiliates (other than the Additional Obligor) have entered into the
Debtor-In-Possession Guaranty and Collateral Agreement, dated as of October 6,
2009 (as amended, supplemented or otherwise modified from time to time, the
“Guaranty and
Collateral Agreement”) in favor of the Administrative Agent for the
benefit of the Guaranteed Creditors;

     

    WHEREAS,
the Credit Agreement requires the Additional Obligor to become a party to the
Guaranty and Collateral Agreement; and

     

    WHEREAS,
the Additional Obligor has agreed to execute and deliver this Assumption
Agreement in order to become a party to the Guaranty and Collateral
Agreement;

     

    NOW,
THEREFORE, IT IS AGREED:

     

    1.    
Guaranty and
Collateral Agreement.  By executing and delivering this
Assumption Agreement, the Additional Obligor, as provided in Section 9.13 of the
Guaranty and Collateral Agreement, hereby becomes a party to the Guaranty and
Collateral Agreement as an Obligor thereunder with the same force and effect as
if originally named therein as an Obligor and, without limiting the generality
of the foregoing, hereby expressly assumes all obligations and liabilities of an
Obligor thereunder and expressly grants to the Administrative Agent, for the
benefit of the Guaranteed Creditors, a security interest in all Collateral owned
by such Additional Obligor to secure all of such Additional Obligor’s
obligations and liabilities thereunder.  The information set forth in
Annex 1-A hereto is hereby added to the information set forth in Schedules 1
through 4 to the Guaranty and Collateral Agreement.  The Additional
Obligor hereby represents and warrants that each of the representations and
warranties contained in Article IV of the Guaranty and Collateral Agreement is
true and correct on and as the date hereof (after giving effect to this
Assumption Agreement) as if made on and as of such date.

     

    2.    
Governing
Law.  This Assumption Agreement shall be governed by, and
construed in accordance with, the laws of the State of Texas.

    
      
         

      

      
        Annex I - 1

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly
executed and delivered as of the date first above written.

     

    
      
        
          	
                  [ADDITIONAL
      OBLIGOR]

                
	 
	
                  By:

                	 
      
	
                  Name:

                	 
      
	
                  Title:

                	 
      

        

      

    

    
      
         

      

      
        Annex I - 2

        
          

        

      

      
         

      

    

    Annex
II

     

    Supplement

     

    SUPPLEMENT,
dated as of [______] 20[__], made by , a [____________________] (the “Additional Pledgor”),
in favor of BNP Paribas, as administrative agent (in such capacity, the “Administrative
Agent”) for the financial institutions (the “Lenders”) parties to
the Credit Agreement referred to below.  All capitalized terms not
defined herein shall have the meaning ascribed to them in such Credit
Agreement.

     

    WITNESSETH:

     

    WHEREAS,
Aurora Oil & Gas Corporation, a Utah Corporation (the “Borrower”), Hudson
Pipeline & Processing Co., LLC, BNP Paribas, as the Administrative Agent and
the Lenders have entered into that certain Debtor-In-Possession Credit
Agreement, dated as of October 6, 2009 (as amended, supplemented or otherwise
modified from time to time, the “Credit
Agreement”);

     

    WHEREAS,
in connection with the Credit Agreement, the Borrower and certain of its
Affiliates (other than the Additional Pledgor) have entered into the
Debtor-In-Possession Guaranty and Collateral Agreement, dated as of October 6,
2009 (as amended, supplemented or otherwise modified from time to time, the
“Guaranty and
Collateral Agreement”) in favor of the Administrative Agent for the
benefit of the Guaranteed Creditors;

     

    WHEREAS,
the Credit Agreement requires the Additional Pledgor to pledge the Equity
Interests described hereto on Schedule 2-S; and

     

    WHEREAS,
the Additional Pledgor has agreed to execute and deliver this Supplement in
order to pledge such Equity Interests;

     

    NOW,
THEREFORE, IT IS AGREED:

     

    1.    
Guaranty and
Collateral Agreement.  By executing and delivering this
Supplement, the Additional Pledgor, as provided in Section 9.13 of the Guaranty
and Collateral Agreement, hereby becomes a party to the Guaranty and Collateral
Agreement as an Obligor thereunder (if not already a party thereto as an Obligor
thereunder) with the same force and effect as if originally named as an Obligor
therein, and without limiting the generality of the foregoing, hereby pledges
and grants a security interest in (a) the Equity Interests described or referred
to in Schedule 2-S and (b) (i) the certificates or instruments, if any,
representing such Equity Interests, (ii) all dividends (cash, Equity Interests
or otherwise), cash, instruments, rights to subscribe, purchase or sell and all
other rights and Property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such securities,
(iii) all replacements, additions to and substitutions for any of the Property
referred to in this definition, including, without limitation, claims against
third parties, (iv) the proceeds, interest, profits and other income of or on
any of the Property referred to in this definition, (v) all security
entitlements in respect of any of the foregoing, if any, (vi) all books and
records relating to any of the Property referred to in this definition and (vii)
all proceeds of any of the foregoing (collectively, the “Collateral”).  Upon
execution of this Supplement, such securities will constitute “Pledged
Securities” for purposes of the Guaranty and Collateral Agreement with the same
force and effect as if originally listed on Schedule 2 thereto and, without
limiting the generality of the foregoing, the Additional Pledgor hereby
expressly assumes all obligations and liabilities of a Pledgor thereunder and
expressly grants to the Administrative Agent, for the benefit of the Guaranteed
Creditors, a security interest in all Collateral owned by such Additional
Pledgor to secure all of such its obligations and liabilities
thereunder.  The information set forth in Schedule 2-S hereto is
hereby added to the information set forth in Schedule 2 to the Guaranty and
Collateral Agreement.  The Additional Pledgor hereby represents and
warrants that each of the representations and warranties contained in Article IV
of the Guaranty and Collateral Agreement is true and correct on and as the date
hereof (after giving effect to this Supplement) as if made on and as of such
date.

    
      
         

      

      
        Annex II - 1

        
          

        

      

      
         

      

    

     

    2.    
Governing
Law.  This Supplement shall be governed by, and construed in
accordance with, the laws of the State of Texas.

     

    IN
WITNESS WHEREOF, the undersigned has caused this Supplement to be duly executed
and delivered as of the date first above written.

     

    
      
        
          	
                  [ADDITIONAL
      PLEDGOR]

                
	 
	
                  By:

                	 
      
	
                  Name:

                	 
      
	
                  Title:

                	 
      

        

      

    

    
      
         

      

      
        Annex II - 2

        
          

        

      

      
         

      

    

    Exhibit
A

     

    Acknowledgment and
Consent

     

    The
undersigned hereby acknowledges receipt of a copy of the Debtor-In-Possession
Guaranty and Collateral Agreement dated as of October 6, 2009 (the “Guaranty Agreement”),
made by the Obligors parties thereto for the benefit of BNP Paribas, as
Administrative Agent and others.  The undersigned agrees for the
benefit of the Administrative Agent and the Guaranteed Creditors as
follows:

     

    1.    
The undersigned will be bound by the terms of the Guaranty Agreement and will
comply with such terms insofar as such terms are applicable to the
undersigned.

     

    2.    
The terms of Sections 6.02 and 6.04 of the Guaranty Agreement shall apply to it,
mutatis mutandis, with
respect to all actions that may be required of it pursuant to Section 6.02 or
Section 6.04 of the Guaranty Agreement.

     

    
      
        
          
            
              	
                      [NAME
      OF ISSUER]

                    
	 
      
	
                      By:

                    	 
      
	
                      Title:

                    	 
      
	 
	
                      Address
      for Notices:

                    
	 
	 
      
	 
      
	 
      
	
                      Fax:

                    	 
      

            

          

           

        

      

    

    
      	
              *

            	
              This consent is necessary only
      with respect to any Issuer which is not also an Obligor.  This
      consent may be modified or eliminated with respect to any Issuer that is
      not controlled by an
Obligor.

            

    

     

    
      
         

      

      
        Exhibit A - 1

        
          

        

      

      
         

      

    

    Schedule
1

     

    NOTICE
ADDRESSES OF OBLIGORS

     

    Aurora
Oil & Gas Corporation

    4110
Copper Ridge Drive, Suite 100

    Traverse
City, MI  49684

    Attention:  Chief
Financial Officer

     

    Hudson
Pipeline & Processing Co., LLC

    3220
Racquet Club Drive

    Traverse
City, MI  49684

    Attention:  Chief
Financial Officer

    
      
         

      

      
        Schedule
1 - 1

        
          

        

      

      
         

      

    

    Schedule
2

     

    DESCRIPTION
OF PLEDGED SECURITIES

     

    Pledged
Securities:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        Owner

                                      	 	
                                        Issuer

                                      	 	
                                        Percentage

                                        Owned

                                      	 	
                                        Percentage

                                        Pledged

                                      	 	
                                        Class of Stock

                                      	 	
                                        No.
      of 

                                        Shares

                                      	 	
                                        Certificate

                                        No.

                                      
	
                                        Aurora
      Oil & Gas Corporation

                                      	 	
                                        Hudson
      Pipeline & Processing Co., LLC

                                      	 	
                                        93.6%

                                      	 	
                                        93.6%

                                      	 	
                                        Limited
      Liability Company Membership Interests

                                      	 	
                                        500
      and 460 units

                                      	 	
                                        001
      and
015

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    Pledged
Notes:

     

    
      
        
          
            
              
                	
                        Issuer

                      	 	
                        Payee

                      	 	
                        Principal
      Amount

                      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      

              

            

          

        

      

    

    
      
         

      

      
        Schedule 2
-1

        
          

        

      

      
         

      

    

    Schedule
3

     

    LOCATION
OF JURISDICTION OF ORGANIZATION AND CHIEF

    EXECUTIVE
OFFICE

      

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      (1)

                                                    	
                                                      Legal
      name of the Obligor:

                                                    	
                                                      Aurora
      Oil & Gas Corporation

                                                    
	 
      	 
      	 
      
	 
      	
                                                      Address:

                                                    	
                                                      4110
      Copper Ridge Drive, Suite 100

                                                      Traverse
      City, MI  49684

                                                    
	 
      	
                                                      All
      other names and trade names that the Borrower has used in the last five
      years:

                                                    	
                                                      None

                                                    
	 
      	 
      	 
      
	 
      	
                                                      Jurisdiction
      of organization:

                                                    	
                                                      Utah

                                                    
	 
      	 
      	 
      
	 
      	
                                                      Organizational
      number:

                                                    	
                                                      608892-0142

                                                    
	 
      	 
      	 
      
	 
      	
                                                      Taxpayer
      identification number:

                                                    	
                                                      87-0306609

                                                    
	 
      	 
      	 
      
	 
      	
                                                      Location
      of chief executive office/sole place of business for last five
      years:

                                                    	
                                                      None

                                                    
	 
      	 
      	 
      
	
                                                      (2)

                                                    	
                                                      Legal
      name of the Obligor:

                                                    	
                                                      Hudson
      Pipeline & Processing Co., LLC

                                                    
	 
      	 
      	 
      
	 
      	
                                                      Address:

                                                    	
                                                      3220
      Racquet Club Drive

                                                      Traverse
      City, MI  49684

                                                    
	 
      	
                                                      All
      other names and trade names that the Borrower has used in the last five
      years:

                                                    	
                                                      None

                                                    
	 
      	 
      	 
      
	 
      	
                                                      Jurisdiction
      of organization:

                                                    	
                                                      Michigan

                                                    
	 
      	 
      	 
      
	 
      	
                                                      Organizational
      number:

                                                    	
                                                      B0008T

                                                    
	 
      	 
      	 
      
	 
      	
                                                      Taxpayer
      identification number:

                                                    	
                                                      20-1359069

                                                    
	 
      	 
      	 
      
	 
      	
                                                      Location
      of chief executive office/sole place of business for last five
      years:

                                                    	
                                                      Traverse
      City,
MI

                                                    

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        Schedule 3
- 1

        
          

        

      

      
         

      

    

    Schedule
4

     

    LIST
OF ALL OBLIGOR ACCOUNTS

     

    Aurora Oil & Gas
Corporation:

     

    
      	
              1. 

            	
              Concentration
      Account:

            

    

    J.P.
Morgan Chase Bank

     

    
      	
              2. 

            	
              Disbursement
      Account:

            

    

    J.P.
Morgan Chase Bank

     

    
      	
              3. 

            	
              Investment
      Account:

            

    

    Charles
Schwab

     

    
      	
              4. 

            	
              Concentration
      Account:

            

    

    NW
Bank

     

    
      	
              5. 

            	
              Disbursement
      Account:

            

    

    NW
Bank

     

    
      	
              6. 

            	
              Sweep
      Account:

            

    

    NW
Bank

     

    
      	
              7. 

            	
              Money
      Market Account:

            

    

    NW
Bank

     

    Hudson Pipeline &
Processing Co., LLC:

     

    
      	
              1. 

            	
              Concentration
      Account:

            

    

    J.P.
Morgan Chase Bank

    
      
         

      

      
        Schedule 4
- 1

        
          

        

      

      
         

      

    

     

    
      	
              2. 

            	
              Charles
      Schwab

            

    

     

    
      	
              3. 

            	
              NW
      Bank

            

    

     

    
      	
              4. 

            	
              NW
      Bank

            

    

    
      
         

      

      
        Schedule 4
- 2EXHIBIT
10.29

      

      BNP
PARIBAS

      787
Seventh Avenue

      New
York, New York 10019

       

      October
6, 2009

       

      Aurora
Oil & Gas Corporation

      4110
Copper Ridge Drive, Suite 100

      Traverse
City, Michigan 49684

      Attention:
Chief Financial Officer

       

      Re:  Fee Letter – Administrative
Agent and Arranger

       

      Dear Sir
or Madam:

       

      Reference is made to the
Debtor-In-Possession Credit Agreement, date as of October 6, 2009 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Aurora Oil & Gas Corporation (“Aurora”), as
borrower, Hudson Pipeline & Processing Co., LLC, the lenders party thereto
(collectively, the "Lenders"), and BNP
Paribas, in as administrative agent for the Lenders (in such capacity, the
“Administrative
Agent”) and as sole lead arranger (in such capacity, the “Arranger”).  Capitalized
terms used but not defined herein shall have the respective meaning given to
them in the Credit Agreement.  This letter agreement (“Fee Letter”) contains
the agreement referenced in Section 3.5(c) of the Credit Agreement.

       

      As consideration for BNP Paribas’
agreement to act as Arranger under the Credit Agreement, Aurora hereby
irrevocably agrees to pay the Arranger, for its own account, an arrangement fee
of 0.50% of the Aggregate Commitments (the “Arrangement
Fee”).  The Arrangement Fee shall be due and payable on the
Effective Date.

       

      As consideration for BNP Paribas’
agreement to act as Administrative Agent under the Credit Agreement and the
other Loan Documents, Aurora irrevocably agrees to pay the Administrative Agent,
for its own account, an administrative agency fee in the amount equal to
$5,000.00 per month (the “Administrative Agency
Fee” and, together with the Arrangement Fee, the “Fees”), which fee
will be payable on the Effective Date and monthly in advance on or prior to the
beginning of each calendar month prior to the Maturity Date.

       

      In addition, BNP Paribas and the
Administrative Agent shall be paid the other fees specified in the Credit
Agreement.

       

      Aurora agrees that, once paid, the Fees
or any part thereof payable hereunder and under the Credit Agreement shall not
be refundable under any circumstances, regardless of whether the transactions or
Borrowings contemplated by the Credit Agreement and the other Loan Documents are
consummated.  Each of the Fees shall be paid by Aurora without
set-off, deduction or counterclaim and shall be free and clear of and without
deduction by reason of, any taxes, levies, imports, stamp or other duties, fees
or charges.  All Fees payable hereunder and the other fees payable
under the Credit Agreement shall be paid in immediately available funds and
shall be in addition to  Aurora’s payment and reimbursement
obligations to BNP Paribas and the Administrative Agent under Section 6.01(a)(i)
and Section 12.03(a) of the Credit Agreement.

       

      Fee
Letter

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      It is understood and agreed that this
Fee Letter shall not constitute or give rise to any obligation to provide any
financing; such an obligation will arise only to the extent provided in the
Credit Agreement if accepted in accordance with its terms.  This Fee
Letter may not be amended or waived except by an instrument in writing signed by
BNP Paribas, in its capacity as the Administrative Agent and in its capacity as
the Arranger, and Aurora.

       

      Each of the parties hereto hereby
acknowledges and agrees that (i) this Fee Letter constitutes a Loan Document
pursuant to the Credit Agreement and the other Loan Documents and shall be
construed, administered and applied as a Loan Document in accordance with the
terms and provisions of the Credit Agreement and the other Loan Documents and
(ii) the Fees described herein constitutes part of the Indebtedness and shall be
construed, administered and applied as a Indebtedness in accordance with the
terms and provisions of the Credit Agreement and the other Loan
Documents.

       

      This Fee Letter may be executed in any
number of counterparts, each of which shall be an original, and all of which,
when taken together, shall constitute one agreement.  Delivery of an
executed signature page of this Fee Letter by facsimile or other electronic
transmission shall be equally as effective as delivery of a manually executed
counterpart hereof.

       

      THIS FEE LETTER SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

       

      Each of the parties hereto accepts that
this Fee Letter and its contents are subject to the confidentiality provisions
of the Credit Agreement.

       

      [signature page begins on next
page]

       

      Fee
Letter

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      Please confirm that the foregoing is
our mutual understanding by signing and returning to us an executed counterpart
of this Fee Letter.

      

      
        
          	
                  Very
      truly yours,

                
	 
      
	
                  BNP
      PARIBAS,

                
	
                  as
      Administrative Agent and as Arranger

                
	 
      	 
      
	
                  By:

                	
                  /s/ Amy Kirschner

                
	
                  Name:  

                	
                  Amy
      Kirschner

                
	
                  Title:

                	
                  Managing
      Director

                
	 
      	 
      
	
                  By:

                	
                  /s/ Claudia DeSimio

                
	
                  Name:

                	
                  Claudia
      DeSimio

                
	
                  Title:

                	
                  Vice
      President

                

        

      

      

      Accepted
and agreed to as of

      the date
first written above by:

       

      AURORA
OIL & GAS CORPORATION

       

      
        
          	
                  By:  

                	
                  /s/ Sanford Edlein

                
	
                  Name:  Sanford
      Edlein

                
	
                  Title:  Chief
      Restructuring Officer

                

        

      

      

      Fee
Letter

      
        
           

        

        
          3

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