Document:

Exhibit
10.9

 

SECURITY
AGREEMENT

 

THIS
SECURITY AGREEMENT (this “Security Agreement”) is entered into as of January 5, 2022, by and among U.S. ENERGY
CORP., a corporation organized under the laws of the State of Wyoming (“Borrower”), each of the undersigned Subsidiaries
and Affiliates of Borrower, whether as an original signatory hereto or as an Additional Debtor (together with each such Person’s
respective permitted successors and permitted assigns, collectively, “Debtors” and individually, a “Debtor”),
in favor of FIRSTBANK SOUTHWEST, as Administrative Agent for the benefit of the Secured Parties as defined in the Agreement referred
to below (in such capacity, “Administrative Agent”), and is executed and delivered pursuant to that certain Credit
Agreement of even date herewith (as same may be amended, restated or modified from time to time, the “Agreement”)
among Borrower, the Lenders party thereto, and Administrative Agent.

 

WHEREAS,
Borrower has executed and delivered the Agreement and to induce the Secured Parties to make the loans and other financial accommodations
provided for in the Agreement, the Secured Swap Agreements, and the Secured Cash Management Agreements, Debtors have agreed to grant
a security interest in certain collateral as hereinafter described as security for the repayment of the Secured Obligations (as defined
in the Agreement) and to execute and deliver this Security Agreement; and

 

WHEREAS,
each Debtor other than Borrower is a Subsidiary or Affiliate of Borrower, and each Debtor desires that the Lenders extend credit to Borrower
as contemplated by the Agreement, and each Debtor will directly or indirectly benefit from the use of the loan proceeds by Borrower for
the purposes for which the credit is being extended pursuant to the Agreement; and

 

WHEREAS,
each Debtor, by and through the action of its governing body, has determined that it may reasonably be expected to benefit, directly
or indirectly, from granting a lien upon the collateral hereinafter described in order to secure the Secured Obligations, all as hereinafter
provided;

 

NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged and to extend such additional credit as the Secured Parties may from time to time agree to extend, the parties do
hereby agree as follows:

 

1.0
Terms. Terms defined in the Agreement have the same meanings when used herein unless otherwise defined herein or the context hereof
otherwise requires. Certain terms used herein are defined in Appendix I hereto, which is incorporated herein. Terms not defined
herein (including Appendix I) or in the Agreement which are defined in the Texas Uniform Commercial Code, as in effect on the
date hereof (the “UCC”), have the meanings specified in the UCC, and the definitions specified in Article 9 of the
UCC control in the case of any conflicting definitions in the UCC. The singular number includes the plural and vice versa. Captions of
Sections do not limit the terms of such Sections.

 

2.0
Security.

 

2.1
Security Interest. To secure the payment and performance of the Secured Obligations, each Debtor grants to Administrative Agent
for the benefit of Secured Parties a security interest in all of the personal property of such Debtor (the “Collateral”),
wherever located, whether now owned or hereafter acquired, including:

 

(a)
Accounts;

 

(b)
Chattel Paper;

 

    	 

     

    

 

(c)
Deposit Accounts;

 

(d)
Documents;

 

(e)
Equipment;

 

(f)
Equity Interests;

 

(g)
Financial Assets;

 

(h)
General Intangibles;

 

(i)
Instruments;

 

(j)
Inventory;

 

(k)
Investment Property;

 

(l)
Letter of Credit Rights;

 

(m)
all amounts owing from time to time by any of the Secured Parties to such Debtor in any capacity including without limitation, any balance
belonging to such Debtor of any deposit or other account with any Secured Party, all investments thereof and any other claim of such
Debtor against any Secured Party, now or hereafter existing, liquidated or unliquidated, and all properties of such Debtor which are
at any time in the possession, custody, or control of any Secured Party or any of its agents, affiliates, or correspondents;

 

(n)
all dividends, distributions, and income attributable to proceeds, products, additions to, substitutions, replacements and supporting
obligations for, model conversions, and accessions of, any and all Collateral described in this Section 2.1; “proceeds”
includes, without limitation, all proceeds of any insurance (including any surrender value therefor, any right to return, or unearned
premiums), causes and rights of action, remedies, privileges, settlements, judicial and arbitration judgments and awards, indemnities,
liens, warranties, or guaranties payable from time to time with respect to or security for any of the Collateral; and

 

(o)
all ledgers, files, writings, records, books, data bases, plans, drawings, and information relating to any of the foregoing.

 

2.2
Debtors to Remain Liable. Each Debtor shall remain liable under and shall preserve the liability of all other parties to each
agreement constituting part of the Collateral and shall perform all of its obligations thereunder. The exercise by Administrative Agent
of any of its rights hereunder shall not release any Debtor from any duties under any agreement. Administrative Agent has no obligation
or liability with respect to any of the Collateral under any agreement by reason or arising out of the assignment thereof to Administrative
Agent or the granting to Administrative Agent of a security interest therein or the receipt by Administrative Agent of any payment relating
to any such agreement.

 

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3.0
Representations. Each Debtor makes the following representations to Administrative Agent:

 

3.1
Enforceability. Such Debtor has all requisite authority to execute, deliver, and perform its duties under, and has duly authorized,
executed, and delivered, this Security Agreement; and this Security Agreement is enforceable against such Debtor in accordance with its
terms. The execution, delivery, and performance hereof by such Debtor do not violate, and do not require any authorization, notice, or
filing under, any agreement, judgment, injunction, decree, determination, award, rule, regulation, order, or writ of any Person or Governmental
Authority. This Security Agreement creates in favor of Administrative Agent an enforceable security interest; prior to or contemporaneous
with the execution hereof, all filings necessary or appropriate to create, preserve, and perfect the Security Interest have been accomplished;
and the Security Interests in the Collateral constitute perfected security interests therein free of all other Liens other than Permitted
Liens.

 

3.2
Title to Collateral and Related Matters.

 

(a)
Such Debtor has rights in or power to transfer the Collateral and its title to the Collateral free of any dispute, counterclaim, or defense.

 

(b)
Schedule 3.2(b) lists all trade names by which such Debtor is now known or has been previously known.

 

(c)
None of the Collateral is an accession to goods other than goods constituting part of the Collateral.

 

3.3
Address and Place of Business. The address for such Debtor specified on the signature page of this Security Agreement is such
Debtor’s correct mailing address and the location of its chief executive office. All of such Debtor’s records or copies thereof
pertaining to the Collateral and the proceeds thereof are now maintained at its chief executive office. Within the past four (4) months,
such Debtor has not changed the location of its chief executive office or where it keeps its records concerning the Collateral. Such
Debtor has no place of business other than the locations shown in Schedule 3.3.

 

3.4
Name and Organization of Debtor. Such Debtor’s exact legal name, type of organization, the jurisdiction under which such
Debtor is organized, and such Debtor’s organizational identification number are set forth on Schedule 3.4 hereto. Such Debtor
has not changed its name within the five (5) years immediately preceding the date of this Security Agreement, and such Debtor conducts
no business under any other name, whether or not registered as an assumed name, except as specified in Schedule 3.2(b).

 

3.5
Deposit Accounts. Each Deposit Account maintained by or in which such Debtor has any interest is set forth on Schedule 3.5
hereto, including for each Deposit Account, the bank in which such account is maintained, ABA number of such bank, the account number
of such Deposit Account, and account type.

 

4.0
Covenants. Each Debtor covenants as follows:

 

4.1
In General. Such Debtor will (a) maintain good and marketable title to all Collateral free of any Lien (other than Permitted Liens),
dispute, counterclaim, or defense; (b) at its cost and expense, defend any action which may affect the Security Interest or such Debtor’s
title to the Collateral; (c) obtain an acknowledgment from any third party which holds possession of any Collateral that the third party
holds the Collateral for the benefit of Administrative Agent; and (d) cooperate with Administrative Agent so that Administrative Agent
is allowed to obtain a control agreement in form and substance satisfactory to Administrative Agent with respect to Collateral which
consists of Deposit Accounts, Investment Property, Letter-of-Credit Rights, or Electronic Chattel Paper.

 

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4.2
Notices. Such Debtor promptly will notify Administrative Agent of any claim, action, or proceeding which could materially and
adversely affect the value of, or such Debtor’s title to, any of the Collateral, or the effectiveness of the Security Interest.

 

4.3
Processing, Etc. 

 

(a)
Such Debtor will keep all tangible Collateral in good order and repair.

 

(b)
Such Debtor will dispose of Collateral only in compliance with the terms and provisions of the Loan Documents.

 

(c)
Any Equipment constituting Collateral which is worn out, destroyed, or damaged beyond repair may be disposed of but will promptly be
replaced by Equipment, free of any Lien except for Permitted Liens, which has a value or utility at least equal as of the date of replacement
to the value or utility of the replaced Equipment as of the date hereof, except when a failure on the part of Debtor to replace such
Equipment would not have a Material Adverse Effect.

 

(d)
Such Debtor will place a legend on all Chattel Paper constituting part of the Collateral that Administrative Agent has a security interest
in such Chattel Paper.

 

4.4
Change of Name or Location. Such Debtor will not change its state of organization, name, or form of organization or conduct any
of its business under any name except its legal name or those identified on Schedule 3.2(b) without the prior, written consent
of Administrative Agent, which consent is conditioned on such Debtor’s delivery of all documents necessary or desirable to preserve
the Security Interest. Such Debtor will not establish a new location for its chief executive office or for maintaining its books and
records nor the location of any Collateral until it has given to Administrative Agent not less than thirty (30) days’ prior written
notice of its intention to do so which identifies such new location and provides such other information and documents in connection therewith
as Administrative Agent may request.

 

4.5
Books and Records. Such Debtor will maintain a current, complete, and accurate set of books and records in which such Debtor will
make clear and suitable entries and notations which reflect, among other things, all facts giving rise to each portion of the Intangible
Collateral, and all payments, credits, and adjustments applicable to such Intangible Collateral. Such Debtor will deliver to Administrative
Agent as Administrative Agent may require any bills, statements, and letters to be directed to Account Debtors, and all instruments determined
by Administrative Agent to be necessary or convenient to carry into effect the terms of this Security Agreement, to perfect the Security
Interest, and to facilitate collection of sums owed in connection herewith. Such Debtor will, if requested by Administrative Agent, mark
its books and records concerning the Collateral in such a manner satisfactory to Administrative Agent to show the Security Interest in
the Collateral.

 

4.6
Financial Statements and Reports. Such Debtor will furnish Administrative Agent with any financial statements of such Debtor or
reports as such Debtor is required to furnish pursuant to the Agreement. Such Debtor will promptly advise Administrative Agent of the
existence of any dispute with respect to any Intangible Collateral.

 

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4.7
Indemnity. Such Debtor indemnifies and agrees to hold Administrative Agent and the other Secured Parties harmless from and against
any loss, claim, demand, or expense (including attorneys’ fees) (individually, a “Claim”) arising by reason,
or in any manner related to, this Security Agreement or the Collateral or the failure of such Debtor to comply with any state or federal
statute, rule, regulation, order, or decree but excluding any Claim arising by reason of the gross negligence or willful misconduct of
Administrative Agent or any of the other Secured Parties. Administrative Agent shall control the defense of any Claim, but such Debtor
will pay the cost thereof.

 

4.8
Taxes. Such Debtor will pay all taxes and assessments on the Collateral or on its use or operation prior to the time such taxes
become past due, except those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate
reserves have been provided in accordance with GAAP.

 

4.9
Equity Interests. Such Debtor will deliver to Administrative Agent such Debtor’s original of any certificates or instruments
which represent such Debtor’s Equity Interests, together with such instruments of assignment and transfer duly executed in blank
by such Debtor as Administrative Agent may request, and do all other acts and things as Administrative Agent may request in order to
evidence, perfect, and enforce the Security Interest in the Equity Interests and to ensure Administrative Agent has control of the Equity
Interests.

 

4.10
Mortgagees’ and Landlords’ Waivers for Collateral Other Than As-Extracted Collateral. For Collateral other than “as-extracted”
Collateral, if requested by Administrative Agent, such Debtor will cause each mortgagee of all real estate owned by Debtor and each landlord
of all premises leased by such Debtor (except for any office lease) to execute and deliver to Administrative Agent instruments, in form
and substance satisfactory to Administrative Agent, by which such mortgagee or landlord waives or subordinates all of its rights, if
any, to all of the Collateral. This Section shall not apply to “as-extracted” Collateral.

 

4.11
Insurance. Such Debtor will maintain insurance at all times with respect to all Collateral in such amounts and against such risks
and meeting such requirements as is specified in the Agreement and the Mortgages.

 

4.12
Assurances. Such Debtor authorizes Administrative Agent to file a financing statement describing the Collateral. Administrative
Agent may use a description of the Collateral in any financing statement as “all assets” or similar wording or any more specific
wording. Such Debtor will at its own expense take all action as Administrative Agent may at any time request to protect, assure or enforce
Administrative Agent’s interests, rights and remedies created by, provided in or emanating from this Security Agreement. Such Debtor
will (a) immediately deliver to Administrative Agent, in due form for transfer (endorsed in blank or accompanied by duly executed, undated,
appropriate blank stock or bond powers) all Certificated Securities, tangible Chattel Paper, Instruments, Documents, and writings evidencing
General Intangibles which are interests in or obligations of the issuer of such writings constituting part of the Collateral; (b) upon
request of Administrative Agent, cause the Security Interest to be duly noted on any certificate of title issuable with respect to any
of the Collateral and forthwith deliver to Administrative Agent each such certificate of title; (c) take such steps as Administrative
Agent may request to ensure Administrative Agent obtains control with respect to all Collateral in which a security interest may be perfected
by control, and to cause any bailee in possession of any Collateral to acknowledge that such bailee will act with respect to such Collateral
on the instructions of Administrative Agent without consent by such Debtor; (d) promptly advise Administrative Agent of the assignment
to such Debtor of any organizational identification number (if such Debtor does not currently have one) or of any change in such Debtor’s
current organizational identification number; and (e) execute and deliver to Administrative Agent, in due form for filing or recording
(and pay the cost of filing or recording the same in all public offices deemed necessary or advisable by Administrative Agent) such assignments
(including assignments of life insurance), security agreements, mortgages, deeds of trust, pledge agreements, consents, waivers, financing
statements (and amendments thereof), stock or bond powers, and other documents, and do such other acts and things, all as may from time
to time in the opinion of Administrative Agent be necessary or desirable to establish and maintain a valid perfected first priority security
interest in the Collateral free of all Liens other than Permitted Liens.

 

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5.0
Administrative Agent’s Rights. Administrative Agent has the following rights without regard to the occurrence of an Event
of Default:

 

5.1
Information. Administrative Agent may at any time obtain from any Person any information concerning any Debtor, any Debtor’s
business or affairs, or the Collateral, and neither Administrative Agent nor the Person furnishing such information shall be liable to
any Debtor in respect thereof. At any reasonable time and from time to time, Administrative Agent or any of its representatives may at
Debtors’ expense to the extent permitted by applicable law inspect the Collateral and examine, audit, inspect, verify, and make
copies of and abstracts from the books and records, and visit the properties of Debtors, discuss the affairs, finances, and accounts
of each Debtor with any of its officers or directors and discuss the affairs, finances, and accounts of each Debtor with its independent
public accountants, and each Debtor will permit such accountants to disclose to Administrative Agent all financial statements and other
information they may have with respect to such Debtor.

 

5.2
Performance by Administrative Agent. Administrative Agent may, but is not obligated to, perform or attempt to perform any agreement
of Debtors contained herein. If any material part of the Collateral becomes the subject of any proceeding and Debtors fail to defend
fully such proceeding and to protect Debtors’ and Administrative Agent’s rights in such Collateral in good faith, Administrative
Agent may, at its option but at Debtors’ cost, elect to defend and control the defense of such litigation or other proceeding,
and may (a) select and retain counsel, (b) determine whether settlement shall be offered or accepted, and (c) determine and negotiate
all settlement terms.

 

5.3
Preservation. Debtors have the risk of loss of the Collateral. Administrative Agent’s duty with respect to any Collateral
in the possession of Administrative Agent is solely to use reasonable care in the custody and preservation of the Collateral. Administrative
Agent shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if it takes
such action for that purpose as Debtors may request in writing, but failure by Administrative Agent to comply with any such request shall
not of itself be deemed a failure to exercise such reasonable care. Administrative Agent is not responsible for, nor are the Secured
Obligations (or Debtors’ liability with respect thereto) subject to setoff or reduction by reason of, any shortage, discrepancy,
damage, loss, or destruction in or to the Collateral unless caused by the gross negligence or willful misconduct of Administrative Agent
nor, in any event, any depreciation in the value of the Collateral. Administrative Agent is not required to fulfill any of the obligations
of Debtors with respect to any of the Collateral, or to make any payment, or to make any inquiry as to the nature or sufficiency of any
payment received by it or the sufficiency of any performance of any party under any of the Collateral, or to present or file any claim,
or to take any action to enforce any performance or the payment of any amounts which have been assigned to it, in which it has been granted
a security interest, or to which it may be entitled at any time. Administrative Agent has no duty to maintain in force, to prevent lapse
or impairment of, or to exercise any rights with respect to any of the Collateral or any insurance thereon, or to exercise any rights,
options or privileges respecting any of the Collateral or to take any steps necessary to preserve rights against prior or other parties
or to enforce collection of the Collateral or any part thereof by legal proceedings or otherwise. The duties of Administrative Agent
are to account to Debtors for Collateral actually received by Administrative Agent and to receive collections, remittances and payments
on such Collateral as and when made and received by Administrative Agent and hold same as Collateral or apply same to the Secured Obligations
pursuant to the terms hereof.

 

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6.0
Default. Debtors are in default under this Security Agreement upon the happening of any of the following events or conditions
(each an “Event of Default”): (a) the occurrence of an Event of Default as defined in the Agreement; (b) the sale,
assignment, distribution, transfer or granting of a Lien on any of the Collateral to or in favor of any party other than Administrative
Agent, unless otherwise expressly permitted by this Security Agreement or in writing by Administrative Agent; (c) the entry of a judgment
or levy against any part of the Collateral or any execution, attachment, sequestration, distraint warrant or other like or similar writ
is issued with respect to any of the Collateral; (d) the title of Debtors to any substantial part of the Collateral becomes the subject
of litigation which would or might, in Administrative Agent’s reasonable opinion, upon final determination result in substantial
impairment or loss of the security provided by this Security Agreement and upon notice by Administrative Agent to Debtors such litigation
is not dismissed within thirty (30) days of such notice or the value thereof replaced with sufficient substitute collateral; or (e) the
loss, theft, substantial damage to or destruction of any material portion of the Collateral.

 

7.0
Remedies. Upon the occurrence of an Event of Default, and at any time thereafter, if any Event of Default is continuing, Administrative
Agent has the following rights and remedies to the full extent permitted by applicable law:

 

7.1
Acceleration. Administrative Agent may declare the Secured Obligations secured hereby, or any part thereof, immediately due and
payable, whereupon same shall be due and payable without demand, presentment for payment, notice of non-payment, protest, notice of protest,
notice of intent to accelerate, notice of acceleration and all other notices or without further action of any kind, all of which are
hereby expressly waived by Debtors; and Administrative Agent may proceed to enforce payment of same and exercise all of the rights and
remedies provided by the UCC as well as all other rights and remedies possessed by Administrative Agent under this Security Agreement,
any other Loan Document or otherwise.

 

7.2
Removal and Possession. Administrative Agent may require Debtors to assemble the Collateral and make it available to Administrative
Agent at any place designated by Administrative Agent which is reasonably convenient to the parties. Administrative Agent is entitled
to immediate possession of all books and records pertaining to any of the Collateral. Administrative Agent may leave the Collateral on
any Debtor’s or any other party’s premises but under Administrative Agent’s control or may remove the Collateral from
the premises of Debtors or from wherever located, and, for purposes of removal and possession, Administrative Agent or its representatives
may enter any premises of Debtors without legal process and thereafter hold or store same, and each Debtor waives and releases Administrative
Agent from all claims in connection therewith or arising therefrom, and Administrative Agent may maintain at Debtors’ expense on
any Debtor’s premises a custodian who may exercise Administrative Agent’s rights to protect the Collateral.

 

7.3
Sale of Collateral.

 

(a)
Administrative Agent may sell the Collateral, in one or more sales or parcels, at such price as Administrative Agent deems adequate and
for cash or on credit or for future delivery, without assumption of any credit risk, any portion of the Collateral, at any broker’s
board or at public or private sale, without demand of performance or notice of intention to sell. The purchaser of any Collateral sold
shall thereafter hold the same free from any claim or right, including any equity of redemption, of any Debtor. Administrative Agent
may make any such sale subject to any limitation or restriction, including but not limited to a limitation in the method of offering
the Collateral or in the number or identity of prospective bidders, which Administrative Agent may believe to be necessary to comply
with any requirement of applicable law or in order to obtain any required approval of the purchase or the purchaser by any Governmental
Authority or officer. No such limitation or restriction shall cause such sale not to be considered a commercially reasonable sale, nor
shall Administrative Agent be liable or accountable to Debtors, nor shall the Secured Obligations be subject to any reduction, by reason
of the fact that the proceeds of a sale subject to any such limitation or restriction are less than otherwise might have been obtained.
Without notice to or consent by Debtors, Administrative Agent may exercise all rights as the insured, beneficiary, or owner of any insurance
policy and may surrender same and receive the surrender value thereof or sell same pursuant to the terms thereof.

 

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(b)
Unless the Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market,
Administrative Agent will give Debtors commercially reasonable notice of the time and place of any public sale thereof or of the time
after which any private sale or any other intended disposition thereof is to be made. The requirements of commercially reasonable notice
are met if such notice is given in accordance with Section 12.1 at least ten (10) days before the time of the sale or disposition.
Expenses of retaking, holding, preparing for sale, selling, leasing or the like shall include Administrative Agent’s attorneys’
fees and legal expenses, and all such expenses shall be borne by Debtors. Public or private sales, for cash or on credit, to a wholesaler
or retailer or investor, or use of Collateral of the types subject to this Security Agreement, or public auction, are commercially reasonable
since differences in the sales prices generally realized in the different kinds of sales are ordinarily offset by the differences in
the costs and the credit risks of such sales.

 

(c)
At any sale, Administrative Agent may sell any part of the Collateral without warranty of any kind and may specifically disclaim any
warranty of title or the like, and none of the foregoing will be considered to make the sale not commercially reasonable.

 

7.4
Other Rights.

 

(a)
Administrative Agent may exercise all other rights it may have under any of the other agreements between Debtors and Administrative Agent,
or under applicable law. Administrative Agent is entitled to the appointment of a receiver to take possession of all or any portion of
the Collateral and to exercise any such powers as the court confers upon the receiver.

 

(b)
Administrative Agent may accept all or part of the Collateral in full or, if Debtors so agree in writing, partial satisfaction of the
Secured Obligations.

 

7.5
Exercise of Rights. Administrative Agent may exercise its rights with respect to the Collateral in such manner and in such order
as Administrative Agent determines, and Administrative Agent is not required to license, sell, or dispose of any part of the Collateral
or to collect, or attempt to collect, any sum payable by reason of the Collateral before Administrative Agent may collect the Secured
Obligations, nor is Administrative Agent obligated to attempt to collect the Secured Obligations before licensing, selling, or disposing
of any part of the Collateral. Administrative Agent may, without foreclosing thereon, license, collect and otherwise enforce all amounts
owing on the Collateral or any proceeds or otherwise enforce all of Debtors’ or Administrative Agent’s rights in any of the
Collateral. No Debtor or any other party liable in respect of the Secured Obligations may direct the application of any proceeds received
by Administrative Agent, and Administrative Agent may apply any such proceeds as herein provided.

 

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7.6
Proceeds of Sale.

 

(a)
All proceeds of sale or other disposition or collection of the Collateral (whether before or after default), shall be applied as provided
in the Agreement.

 

(b)
If Administrative Agent sells any of the Collateral on credit, Debtors are entitled to credit on the Secured Obligations for those payments
actually made by the purchaser received by Administrative Agent and applied to the debt of the purchaser for such purchase.

 

8.0
Attorney-In-Fact. Each Debtor appoints Administrative Agent as such Debtor’s attorney-in-fact (without requiring it to act
as such) with full power of substitution to do any act which such Debtor is obligated by this Security Agreement to do, including, without
limitation, (a) to receive cash and to receive and to endorse the name of such Debtor on all checks, drafts, money orders, or other instruments
for the payment of monies that are payable to such Debtor and constitute collections of the Collateral, (b) to execute in the name of
such Debtor schedules, assignments, documents, financing statements, amendments of financing statements, and other papers deemed necessary
or appropriate by Administrative Agent to perfect, preserve, or enforce the Security Interest, (c) to exercise all rights of such Debtor
in the Collateral, (d) to make withdrawals from and to close deposit accounts and other accounts with any financial institution into
which proceeds may have been deposited and to apply funds so withdrawn as provided herein, (e) to receive, open, and read mail addressed
to such Debtor, and (f) to prepare, adjust, execute, deliver, and receive payment under insurance claims and to collect and receive payment
of and endorse any instrument in payment of loss or return premiums on any other insurance refund or return and to apply such amounts
as received by Administrative Agent, at Administrative Agent’s sole option, toward repayment of the Secured Obligations or replacement
of the Collateral. The power of attorney herein conferred is granted for valuable consideration, is coupled with an interest, and is
irrevocable so long as any part of the Secured Obligations is unpaid. Administrative Agent agrees it will not exercise its powers as
attorney-in-fact until the occurrence of an Event of Default.

 

9.0
Right of Setoff. If an Event of Default shall have occurred and be continuing, Administrative Agent and its Affiliates are hereby
authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever
currency) at any time owing by Administrative Agent or any such Affiliate to or for the credit or the account of any Debtor or any other
Loan Party against any and all of the Secured Obligations, irrespective of whether or not Administrative Agent shall have made any demand
under this Agreement or any other Loan Document and although such obligations of such Debtor or such Loan Party may be contingent or
unmatured or are owed to a branch or office of Administrative Agent different from the branch or office holding such deposit or obligated
on such indebtedness. The rights of Administrative Agent and its Affiliates under this Section are in addition to other rights and remedies
(including other rights of setoff) that Administrative Agent or its Affiliates may have. Administrative Agent agrees to notify Debtors
promptly after any such setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff
and application.

 

10.0
Security Interest Absolute. All rights of Administrative Agent and the Security Interest, and all obligations of Debtors hereunder,
are absolute and unconditional in all respects and shall not be released, diminished, impaired, or affected for any reason, including,
without limitation, the occurrence of any one or more of the following events:

 

(a)
the taking or acceptance of any other security or assurance for any or all of the Secured Obligations;

 

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(b)
the invalidity or unenforceability of any provision hereof, or any of the Loan Documents for any reason;

 

(c)
any change in the time, manner, place of payment or other term of any of the Secured Obligations, or any other amendment or waiver of
or any consent to any departure from the terms hereof or any of the Loan Documents;

 

(d)
any exchange, release, subordination, surrender, loss, or non-perfection of any other collateral at any time existing in connection with
any or all of the Secured Obligations or any release or amendment or waiver of or consent to departure from any guaranty, or other security,
for all or any of the Secured Obligations;

 

(e)
any neglect, delay, omission, failure, or refusal of Administrative Agent to take or prosecute any action in connection with the Collateral
or this Security Agreement or any of the Loan Documents;

 

(f)
the insolvency, bankruptcy, or lack of power of any party obligated with respect to the Secured Obligations; or

 

(g)
any other circumstance which might otherwise constitute a defense available to a discharge of a Debtor in respect of the Secured Obligations
or in respect of this Security Agreement; or

 

(h)
any other circumstance which might otherwise constitute a defense available to a discharge of a Debtor in respect of the Secured Obligations
or in respect of this Security Agreement.

 

11.0
Additional Debtors. From time to time subsequent to the date hereof, additional Persons may become parties hereto as additional
Debtors (each, an “Additional Debtor”), by executing a Joinder Agreement in the form of Exhibit A hereto. Upon
delivery of any such Joinder Agreement to Administrative Agent, notice of which is hereby waived by Debtors, each Additional Debtor shall
be a Debtor and shall be as fully a party hereto as if Additional Debtor were an original signatory hereto. Each Debtor expressly agrees
that its obligations arising hereunder shall not be affected or diminished by the addition or release of any other Debtor hereunder,
nor by any election of Administrative Agent not to cause any Subsidiary or Affiliate of Borrower to become an Additional Debtor hereunder.
This Security Agreement shall be fully effective as to any Debtor that is or becomes a party hereto regardless of whether any other Person
becomes or fails to become or ceases to be a Debtor hereunder.

 

12.0
Miscellaneous.

 

12.1
Notices. All notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight
courier service, mailed by certified or registered mail or sent by facsimile or delivered by electronic mail to the electronic mail address,
to as follows:

 

(a)
If to Debtors, c/o Borrower, as provided in Section 12.01 of the Agreement; and

 

(b)
If to Administrative Agent, as provided in Section 12.01 of the Agreement.

 

    	Page 9

     

    

 

Notices
and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have
been given when received; notices and other communications sent by facsimile shall be deemed to have been given when sent (except that,
if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next
Business Day for the recipient). Notices and other communications sent to an e-mail address shall be deemed received upon the sender’s
receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement) provided that if such notice or other communication is not sent during the normal
business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next
Business Day for the recipient. Any party may change its address, facsimile or email address for notices and other communications hereunder
by notice to the other parties hereto.

 

12.2
Assignment of Collateral. Administrative Agent may assign all or any part of the Secured Obligations and may assign, transfer,
or deliver to any transferee of any of the Secured Obligations any or all of the rights of Administrative Agent in the Collateral, and
thereafter Administrative Agent shall be fully discharged from all responsibility with respect to the Collateral so assigned, transferred,
or delivered. Such transferee shall be vested with all the powers and rights of Administrative Agent hereunder with respect to such Collateral,
but Administrative Agent shall retain all rights and powers hereby given with respect to any of the Collateral not so assigned or transferred.

 

12.3
Alteration, Etc. No waiver, amendment, modification, or alteration of any provision of this Security Agreement (individually,
an “Alteration”), nor consent to any departure by any Debtor from the terms hereof, or from the terms of any other
document, is effective unless such is in writing and signed by Administrative Agent and the Majority Lenders; and any such Alteration
is effective only for the specific purpose and in the specific instance given. No waiver by Administrative Agent of any Event of Default
shall be deemed to be a waiver of any other or subsequent Event of Default; nor shall such waiver be deemed to be a continuing waiver.
No delay of Administrative Agent in exercising any right shall be deemed to be a waiver thereof, nor shall one exercise of any right
affect or impair the exercise of any other right. Time is of the essence in Debtors’ performance hereof.

 

12.4
Expenses. To the extent permitted by applicable law Debtors promptly will pay, upon demand, any out-of-pocket expenses incurred
by Administrative Agent in connection herewith, including all costs, expenses, taxes, assessments, insurance premiums, repairs (including
repairs to realty or other property to which any Collateral may have been attached), court costs, reasonable attorneys’ fees, rent,
storage costs, and expenses of sales incurred in connection with the administration of this Security Agreement, the enforcement of the
rights of Administrative Agent hereunder, whether incurred before or after the occurrence of an Event of Default or incurred in connection
with the perfection, preservation, or defense of the Security Interest, or the custody, protection, collection, repossession, enforcement
or sale of the Collateral. All such expenses shall become part of the Secured Obligations and shall bear interest at the post-default
rate of interest specified in the Agreement from the date paid or incurred by Administrative Agent until paid by Debtors.

 

12.5
Parties Bound. The rights of Administrative Agent hereunder inure to the benefit of its successors and assigns. The terms of this
Security Agreement bind the successors and assigns of the parties hereto, but no Debtor may assign any of its rights or obligations hereunder
without the prior written consent of Administrative Agent. All representations, warranties, and covenants of Debtors survive the execution
and delivery hereof. All indemnities by Debtors in favor of Administrative Agent and the Lenders survive termination or release of this
Security Agreement. This Security Agreement constitutes a continuing agreement, and applies to all future transactions, whether or not
contemplated at the date hereof, and all renewals, modifications, and extensions thereof.

 

    	Page 10

     

    

 

12.6
Remedies Cumulative, Etc. All rights and remedies of Administrative Agent hereunder are cumulative of each other and of every
other right or remedy which Administrative Agent may otherwise have at law or in equity or under any other document for the enforcement
of the Security Interest or the enforcement of any duties of any Debtor or any other party liable in respect of the Secured Obligations.
The exercise by Administrative Agent of one or more rights or remedies shall not prejudice or impair the concurrent or subsequent exercise
of other rights or remedies.

 

12.7
Financing Statement. Each Debtor authorizes Administrative Agent to file one or more financing statements describing the Collateral.
A carbon, photographic, or other reproduction of this Security Agreement or a financing statement describing the Collateral is sufficient
as a financing statement.

 

12.8
Severability. If any portion of the Secured Obligations or if any provision of this Security Agreement is held to be invalid or
unenforceable for any reason, such holding shall not affect any other portion of the Secured Obligations or any other provision contained
herein or contained in any other agreement between Debtors and Administrative Agent, and the same shall continue in full force and effect
according to their terms.

 

12.9
Reference to Agreement; Incorporation of Certain Provisions by Reference. Reference is hereby made to the representations, warranties
and covenants of the Borrowers set forth in Articles VII, VIII and IX of the Agreement which are incorporated herein by reference for
all purposes. Each Debtor (a) reaffirms that each such representation and warranty is true and correct in every material respect with
respect to such Debtor to the extent that such representation and warranty refers to such Debtor, and (b) agrees, with respect to the
covenants, to take, or 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 or Event of Default is caused by the failure to take such action or to refrain from taking such action by such
Debtor or any of its Subsidiaries. Further, the provisions of Section 12.09 of the Agreement captioned “GOVERNING LAW; JURISDICTION;
ETC.” are incorporated herein by reference for all purposes. If the Agreement shall cease to remain in effect for any reason whatsoever
during any period and any part of the Secured Obligations remain unpaid, then the terms, covenants, and agreements set forth therein
applicable to the Debtors shall nevertheless continue in full force and effect as obligations of each Debtor under this Security Agreement.

 

12.10
Entire Agreement. This Security Agreement together with the other Loan Documents embodies the entire agreement between the parties
with respect to the subject matter hereof and supersedes all prior agreements and understandings relating to the subject matter hereof.

 

12.11
Reinstatement. If any payment received by any Secured Party is or must be rescinded or returned, the Secured Obligations shall,
to the extent that such payment is or must be rescinded or returned, be deemed to have continued in existence, notwithstanding such payment,
and the Security Interest shall continue to be effective or be reinstated.

 

12.12
Waiver of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH DEBTOR HEREBY IRREVOCABLY AND EXPRESSLY WAIVES ALL
RIGHT TO A TRIAL BY JURY IN ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING
TO ANY OF THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY OR THE ACTIONS OF ADMINISTRATIVE AGENT IN NEGOTIATION, ADMINISTRATION
OR ENFORCEMENT THEREOF.

 

    	Page 11

     

    

 

12.13
Limitation on Liability. The liability of each Debtor (other than Borrower) with respect
to the Secured Obligations shall not exceed the Maximum Amount (as defined below) for such Debtor. “Maximum Amount”
means the greater of (a) the amount of the economic benefit received by a Debtor from the Secured Obligations whether by loan proceeds
to purchase assets or perform contracts for such Debtor or by loan proceeds being otherwise available to such Debtor through intercompany
loans, advances, capital contributions or otherwise, or (b) the largest amount that would not render such Debtor’s obligations
hereunder subject to avoidance under Section 548 of the Bankruptcy Code (Title 11, United States Code) or any comparable provisions of
any applicable state law.

 

12.14
Conflicts. If any term hereof conflicts with any provision of the Agreement, the terms of the Agreement shall control. If any
item of Collateral hereunder also constitutes Collateral granted to Administrative Agent under any other Loan Document executed by Debtors,
in the event of any conflict between the provisions under this Security Agreement and those under such other Loan Document, the provision
or provisions selected by Administrative Agent shall control with respect to such Collateral.

 

[This
space is left intentionally blank. The signature pages follow.]

 

    	Page 12

     

    

 

EXECUTED
as of the day, month and year first above written.

 

	 	DEBTORS:
	 	 
	 	U.S. ENERGY
    CORP.
	 	 
	 	By:	/s/
    Ryan Smith
	 	 	Ryan
Smith
	 	 	Chief
Executive Officer
	 	 	 
	 	ENERGY
    ONE LLC,
	 	a Wyoming
    limited liability company
	 	 
	 	By:	/s/
    Ryan Smith
	 	 	Ryan
Smith
	 	 	Chief
Executive Officer
	 	 	 
	 	NEW HORIZON
    RESOURCES LLC,
	 	a North Dakota
    limited liability company
	 	 
	 	By:	/s/
    Ryan Smith
	 	 	Ryan
Smith
	 	 	Chief
Executive Officer
	 	 	 
	 	BOG –
    OSAGE, LLC,
	 	an Oklahoma
    limited liability company
	 	 
	 	By:	/s/
    Ryan Smith
	 	 	Ryan
Smith
	 	 	Chief
Executive Officer
	 	 	 
	 	ADMINISTRATIVE
    AGENT:
	 	 
	 	FIRSTBANK
    SOUTHWEST,
	 	as Administrative
    Agent
	 	 
	 	By:	/s/
    Dustin Hansen
	 	 	Dustin
Hansen
	 	 	Senior
Vice President

 

    	Signature
                                            Page

     

    

 

APPENDIX
I

 

“Accounts”
means, as to a particular Debtor, all of such Debtor’s now owned or existing or hereafter acquired or arising accounts and includes
all of such Debtor’s rights to payment arising out of the transfer of rights in such Debtor’s tangible or intangible personal
property.

 

“Account
Debtor” means each Person who is obligated on, under, or with respect to any Payment Rights Collateral.

 

“Certificated
Securities” means, as to a particular Debtor, all of such Debtor’s now owned or existing or hereafter acquired or arising
certificated securities.

 

“Chattel
Paper” means, as to a particular Debtor, all of such Debtor’s now owned or existing or hereafter acquired or arising,
tangible and intangible chattel paper.

 

“Collateral”
has the meaning specified in Section 2.1.

 

“Deposit
Accounts” means, as to a particular Debtor, all of such Debtor’s now owned or existing or hereafter acquired or arising
deposit accounts.

 

“Documents”
means, as to a particular Debtor, all of such Debtor’s now owned or existing or hereafter acquired or arising documents.

 

“Equipment”
means, as to a particular Debtor, all of such Debtor’s now owned or existing or hereafter acquired or arising equipment of every
description used or useful in the conduct of such Debtor’s business, and all accessories, accessions, additions, attachments, substitutions,
replacements, improvements, parts, and other property now or hereafter affixed thereto or used in connection therewith.

 

“Equity
Interests” means, as to a particular Debtor, all of such Debtor’s now owned or existing or hereafter acquired or arising
shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust
or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or
acquire any such Equity Interest, together with (a) such Debtor’s revenues from, and undivided percentage interest in, the assets
of, such Person, and all of the rights, but none of the obligations, of such Debtor under the Organizational Documents of such Person,
(b) all investment property and other property, rights or interests of any description at any time issued or issuable to such Debtor
or held in any securities account as an addition to, in substitution or exchange for or with respect to such Equity Interest, including
without limitation additional percentages or interests issued or given as a result of any amendment, reclassification, split-up, dissolution
or other entity reorganization or property distributed pursuant thereto, and (c) all distributions, proceeds, monies, income and benefits
arising from, by virtue of, or payable with respect to, the foregoing.

 

“Financial
Assets” means, as to a particular Debtor, any “financial asset”, as such term is defined in Section 8.102(a)(9)
of the UCC, now owned or hereafter acquired by such Debtor.

 

“General
Intangibles” means, as to a particular Debtor, all of such Debtor’s now owned or existing or hereafter acquired or arising
general intangibles (including all payment intangibles) and in any event includes all rights to tax refunds, all copyrights, patents,
trademarks, trade secrets, service marks, formulae, blueprints, technology, trade dress, logotypes, rights arising out of leases, licenses,
and contracts which are not accounts, chattel paper, or instruments (including, without limitation, dividends and rights to payment arising
out of partnership agreements and management contracts), computer software, options, warranties, service contracts, program services,
rights to refund, reimbursement, indemnification, and subrogation, goodwill, licenses, royalties, franchises, customer lists, reversions
from any retirement plan or arrangement, and all other choses in action and causes of action.

 

    	APPENDIX I – Page 1

     

    

 

“Instruments”
means, as to a particular Debtor, all of such Debtor’s now owned or existing or hereafter acquired or arising instruments, including
all of such Debtor’s promissory notes.

 

“Intangible
Collateral” means all Collateral other than Equipment and Inventory.

 

“Inventory”
means, as to a particular Debtor, all of such Debtor’s now owned or existing or hereafter acquired or arising goods, merchandise,
and other personal property furnished under any contract of service or intended for sale or lease, including all raw materials, work
in process, finished goods and materials and supplies, of any kind, nature, or description, that are used or consumed by such Debtor’s
business, or are or might be used in connection with the manufacture, packing, shipping, advertising, selling, or finishing of such goods,
merchandise, and other personal property, all goods consigned by or to such Debtor, all goods previously constituting Equipment which
are at any time in question being held for sale or lease in the ordinary course of such Debtor’s business, and all returned or
repossessed goods now or at any time or times hereafter in the possession or under the control of such Debtor.

 

“Investment
Property” means, as to a particular Debtor, all of such Debtor’s now owned or existing or hereafter acquired or arising
investment property.

 

“Letter
of Credit Rights” means, as to a particular Debtor, all of such Debtor’s now owned or existing or hereafter acquired
or arising rights to payment and performance under any letter of credit.

 

“Lien”
means any mortgage, deed of trust, pledge, security interest, lien, conditional sale or other title retention agreement, or any financing
statement or any distraint, writ of attachment, writ of garnishment, writ of sequestration, or similar writ or any other encumbrance
of any nature whatsoever, whether voluntary or not.

 

“Payment
Rights Collateral” means all Collateral consisting of (a) General Intangibles which constitute payment intangibles, (b) Accounts,
and (c) Chattel Paper.

 

“Permitted
Liens” means Excepted Liens, as defined in the Agreement.

 

“Security
Agreement” means this Security Agreement and all amendment hereof or supplements hereto.

 

“Security
Interest” means, as to a particular Debtor, the security interest granted by such Debtor to Administrative Agent under this
Security Agreement.

 

    	APPENDIX I – Page 2Exhibit
10.10

 

INTERCREDITOR
AGREEMENT

 

THIS
INTERCREDITOR AGREEMENT (as the same has been or may be amended, restated, supplemented or otherwise modified from time to time, this
“Agreement”) is entered into as of January 5, 2022 by and among NEXTERA ENERGY MARKETING, LLC, a Delware limited
liability company (“Nextera”, and together with each other Person that becomes a Swap Counterparty pursuant to a Joinder
Supplement, collectively, the “Swap Counterparties”, and each, a “Swap Counterparty”), U.S.
ENERGY CORP., a Wyoming corporation (the “Borrower”), and FIRSTBANK SOUTHWEST (“FBSW”),
with FBSW acting: (i) as the Administrative Agent for the Lenders and certain other secured parties from time to time under the Credit
Agreement (defined below), and (ii) as the Collateral Agent (defined below) for the benefit of the Creditors hereunder. Definitions for
other terms related to this Agreement are set forth following the recitals found below.

 

RECITALS:

 

A.
The Administrative Agent, Issuing Bank and the Lenders (together with any Secured Cash Management Providers, collectively, the “Bank
Group”) and Borrower are parties to that certain Credit Agreement dated as of January 5, 2022 (as amended, supplemented, restated
or otherwise modified from time to time, the “Credit Agreement”).

 

B.
References in this Agreement to the Administrative Agent are to FBSW in its capacity as contractual representative of the Bank Group.
References in this Agreement to the Collateral Agent are to FBSW in its capacity as the contractual representative holding and enforcing
certain Liens granted under the Security Instruments (as hereinafter defined), for the benefit of the Creditors.

 

C.
Borrower has entered into or will enter into with Nextera, that certain ISDA Master Agreement dated on or about the date hereof (together
with the Schedule and annexes thereto, the “Nextera ISDA Agreement” and together with each other ISDA Master Agreement
between a Loan Party and any other Swap Counterparty, together with the Schedule and annexes thereto, collectively, the “Swap
Counterparty Master Agreements”) and has entered into or will enter into one or more transactions thereunder;

 

D.
To secure the Total Obligations of Borrower to the Creditors, Borrower and its Subsidiaries have executed the Security Instruments pursuant
to the Credit Agreement.

 

E.
FBSW, acting as Administrative Agent and as Collateral Agent, the Swap Counterparties and the Borrower desire to enter into this Agreement
in order to (i) establish the relative priorities with respect to payment of the Loan Obligations and the Swap Obligations, and (ii)
confirm the Creditors’ appointment of FBSW, and FBSW’s agreement to serve, as Collateral Agent for the benefit of the Creditors
and for the purposes of holding and enforcing those Liens granted under the Security Instruments.

 

In
consideration of the recitals and the covenants and promises of this Agreement, and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, FBSW, Administrative Agent, the Collateral Agent, the Swap Counterparties and the Borrower
agree as follows:

 

ARTICLE
I

definitions

 

Section
1.01. Credit Agreement Definitions. Each term defined in the Credit Agreement shall have the same meaning when used herein unless
otherwise defined herein or the context otherwise requires.

 

    	1

     

    

 

Section
1.02. Other Definitions. As used in this Agreement, the terms defined above shall have the meanings assigned to those terms above,
and the following terms shall have the meanings assigned as follows:

 

“Acceptable
Swap Agreements” means transactions not prohibited by Section 9.17 of the Credit Agreement.

 

“Approved
Swap Counterparty” means an “Approved Counterparty,” as such term is defined in the Credit Agreement.

 

“Business
Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in Dallas, Texas are authorized or
required by law to remain closed.

 

“Collateral”
means, collectively, all Oil and Gas Properties and rights of the Loan Parties therein that have been subjected to the Lien created by
the Security Instruments.

 

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

 

“Collateral
Value” means, with respect to any Oil and Gas Property, the positive dollar amount which such Oil and Gas Property contributed
to the most recently determined Borrowing Base.

 

“Commodity
Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor
statute and any regulations promulgated thereunder.

 

“Credit
Agreement Modifications” has the meaning given such term in Section 2.03(f).

 

“Creditors”
means the Bank Group and the Swap Counterparties, collectively, and “Creditor” means any of them.

 

“Debtor
Relief Law” means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief
Laws of the United States or other applicable jurisdictions from time to time in effect.

 

“Deeds
of Trust” means, collectively, (i) the mortgages, deeds of trust and acts of mortgage executed by the applicable Loan Parties
as of January 5, 2022 to secure, Ratably, the Loan Obligations and the Swap Obligations, including, as the context requires, amendments
and supplements to and restatements of such mortgages, deeds of trust and acts of mortgage, and (ii) any additional mortgages, deeds
of trust and acts of mortgage that Borrower and/or any other Loan Party executes subsequent to the execution of this Agreement in order
to add Oil and Gas Properties to the Collateral.

 

“DF
Swap Obligation” means, with respect to Borrower or any Guarantor, any obligation to pay or perform under any agreement, contract
or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

 

“ECP”
means an “eligible contract participant,” as such term is defined from time to time in the Commodity Exchange Act.

 

    	2

     

    

 

“Excluded
Swap Obligation” means, with respect to Borrower or any Guarantor, (a) any DF Swap Obligation that is illegal because Borrower
was not an ECP at the time of such entry, and (b) any DF Swap Obligation if, and to the extent that, all or a portion of the guarantee
of such Guarantor of, or the grant by Borrower or such Guarantor of a security interest to secure, such DF Swap Obligation (or any guarantee
thereof) is or becomes illegal under the Commodity Exchange Act by virtue of such Guarantor’s or Borrower’s failure for any
reason to constitute an ECP at the time the guarantee of such Guarantor or the grant of such security interest by such Guarantor or Borrower
becomes effective with respect to such DF Swap Obligation. If a DF Swap Obligation arises under a master agreement governing more than
one swap, such exclusion shall apply only to the portion of such DF Swap Obligation that is attributable to swaps for which such guarantee
or security interest is or becomes illegal.

 

“Hydrocarbons”
means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and
all constituents, elements or compounds thereof and all products refined or separated therefrom.

 

“Joinder
Supplement” means a supplement to this Agreement in substantially the form of Exhibit A, pursuant to which an Approved
Swap Counterparty becomes a Swap Counterparty under this Agreement.

 

“Lien”
means, as to any property of any Person, (a) any mortgage, deed of trust, lien, pledge, hypothecation, or security interest in, on or
of such property, or any other charge or encumbrance on any such asset to secure debt or liabilities, but excluding any right to netting
or setoff, (b) the interest of a vendor under any conditional sale agreement or title retention agreement (or any financing lease having
substantially the same economic effect as any of the foregoing) relating to such property, (c) in the case of securities, any purchase
option, call or similar right of a third party with respect to such securities and (d) the signing or filing of a financing statement
which names the Person as debtor, or the signing of any security agreement authorizing any other Person as the secured party thereunder
to file any financing statement which names such Person as debtor.

 

“Loan
Obligations” means the “Secured Obligations” as defined in the Credit Agreement, whether now existing or hereafter
incurred, whether direct, indirect, fixed, contingent, liquidated, unliquidated, joint, several, or joint and several, now or hereafter
existing, due or to become due, whether evidenced in writing or not, together with all costs, expenses, and attorneys’ fees incurred
in the enforcement or collection thereof, and including interest thereon after the commencement of any proceedings under any Debtor Relief
Laws; provided, however, that for purposes of the definition of “Ratable” and “Ratably” and for purposes
of Section 4.02(b), “Loan Obligations” means the Loan Obligations then due and owing or then outstanding.

 

“Notice
of Default” refers to a notice given by Administrative Agent to Borrower or Swap Counterparties described in clause (b)
of the definition of Triggering Event.

 

“Permitted
Liens” means Liens permitted under Section 9.03 of the Credit Agreement.

 

“Principal
Agreements” means the Loan Documents and the Swap Documents, collectively.

 

“Proceeds”
means any and all proceeds from any sale, exchange, destruction, condemnation, foreclosure, liquidation under any Debtor Relief Law or
other disposition of any of the Collateral (each, a “Disposition”); provided, however, prior to the
occurrence of a Triggering Event, such term will not include (i) sales of any Hydrocarbons produced from or attributable to the Collateral
in the ordinary course of the Loan Parties’ business or (ii) Dispositions made with each Creditor’s written consent unless
a Creditor’s consent is conditioned by a requirement that the proceeds thereof continue to be held as Collateral.

 

    	3

     

    

 

“Ratably”
or “Ratable” means, with respect to any amount to be allocated among Bank Group and each of the Swap Counterparties,
the allocation of a portion of such amount to (a) Bank Group such that the ratio of the amount allocated to Bank Group bears to the total
amount to be so allocated equals the ratio of the Loan Obligations to the Total Obligations, (b) Nextera such that the ratio of the amount
allocated to Nextera bears to the total amount to be so allocated equals the ratio of the Swap Obligations owing to Nextera to the Total
Obligations, and (c) any other Swap Counterparty such that the ratio that the amount allocated to such Swap Counterparty bears to the
total amount to be so allocated equals the ratio of the Swap Obligations owing to such Swap Counterparty to the Total Obligations.

 

“Security
Instruments” means the Deeds of Trust.

 

“Swap
Documents” means the Swap Counterparty Master Agreements, including each confirmation now or hereafter entered into thereunder
for Acceptable Swap Agreements.

 

“Swap
Obligations” means all obligations of the Borrower or any other Loan Party to the Swap Counterparties under the Swap Documents
for Acceptable Swap Agreements, following the netting of such Swap Agreements, whether now existing or hereafter incurred, whether direct,
indirect, fixed, contingent, liquidated, unliquidated, joint, several, or joint and several, now or hereafter existing, due or to become
due, whether evidenced in writing or not, together with all costs, expenses, and attorneys’ fees incurred in the enforcement or
collection thereof, and including interest thereon after the commencement of any proceedings under any Debtor Relief Laws, in each case,
other than Excluded Swap Obligations; provided, however, that (i) if the Administrative Agent notifies Borrower and any Swap Counterparty
pursuant to Section 2.01(c) that such Swap Counterparty’s status as an Approved Swap Counterparty has been revoked, any
Swap Agreements entered into thereafter between Borrower (or a Subsidiary) and such Swap Counterparty and any interest, costs or expenses
associated with such new Swap Agreements shall be excluded from the scope of “Swap Obligations,” and (ii) for purposes of
the definition of “Ratable” and “Ratably” and for purposes of Section 4.02(b), “Swap Obligations”,
for any Swap Counterparty, means the Swap Obligations then due and owing to that Swap Counterparty.

 

“Total
Obligations” means, as of the date of determination, an amount equal to the Loan Obligations plus the Swap Obligations.

 

“Triggering
Event” shall mean either of the following:

 

(a)
Collateral Agent shall have received from a Swap Counterparty written notice that (i) either an event of default or a termination event
has occurred and is continuing under one or more of the Swap Documents of such Swap Counterparty, (ii) an early termination date has
been designated as a result thereof, (iii) specifies the sum of all unpaid amounts and settlement payments then due to such Swap Counterparty
as the result of the designation of such early termination date and the amount of interest and other amounts then due and payable by
Borrower in respect thereof, and (iv) the amount set forth in clause (iii) preceding has not been paid in full or discharged to
the satisfaction of such Swap Counterparty; or

 

(b)
the Swap Counterparties or Borrower shall have received from Administrative Agent written notice that (i)(x) an Event of Default (as
defined in the Credit Agreement) has occurred and is continuing and (y) the unpaid principal amount of the Notes under the Credit Agreement
has been declared to be then due and payable, or (ii)(x) an “event of default” or similar event has occurred under any promissory
note or related agreements governing any other indebtedness of Borrower to the Lenders and is continuing and (y) the principal of such
other indebtedness has been declared to be then due and payable.

 

Borrower
acknowledges that any Triggering Event will constitute an Event of Default under the Credit Agreement and an event of default under the
Swap Counterparty Master Agreements.

 

    	4

     

    

 

Section
1.03. Headings. Article and section headings of this Agreement are for convenience of reference only, and shall not govern the
interpretation of any of the provisions of this Agreement.

 

Section
1.04. Joint Preparation; Construction of Indemnities and Releases. This Agreement, the Loan Documents and the Swap Documents
have been reviewed and negotiated by sophisticated parties with access to legal counsel, and no rule of construction shall apply hereto
or thereto which would require or allow this Agreement, any Loan Document or any Swap Document to be construed against any party because
of its role in drafting such document.

 

Section
1.05. Terms Generally. References in this Agreement to Exhibits, Schedules, Annexes, Appendixes, Attachments, Articles, Sections,
Recitals or clauses shall be to exhibits, schedules, annexes, appendixes, attachments, articles, sections, recitals or clauses of this
Agreement, unless expressly stated to the contrary. References in this Agreement to “hereby,” “herein,” “hereinafter,”
“hereinabove,” “hereinbelow,” “hereof,” “hereunder” and words of similar import shall
be to this Agreement in its entirety and not only to the particular Exhibit, Schedule, Annex, Appendix, Attachment, Article, or Section
in which such reference appears unless specifically stated otherwise. Exhibits and Schedules to any Loan Document shall be deemed incorporated
by reference in such Loan Document. References to any document, instrument, or agreement (a) shall include all exhibits, schedules, and
other attachments thereto, (b) shall include all documents, instruments, or agreements issued or executed in replacement thereof. This
Agreement, for convenience only, has been divided into Articles and Sections; and it is understood that the rights and other legal relations
of the parties hereto shall be determined from this instrument as an entirety and without regard to the aforesaid division into Articles
and Sections and without regard to headings prefixed to such Articles or Sections. The phrases “this Section” and “this
clause” and similar phrases refer only to the sections or clauses hereof in which such phrases occur. Whenever the context requires,
reference herein made to the single number shall be understood to include the plural; and likewise, the plural shall be understood to
include the singular. Definitions of terms defined in the singular or plural shall be equally applicable to the plural or singular, as
the case may be, unless otherwise indicated. Words denoting sex shall be construed to include the masculine, feminine and neuter, when
such construction is appropriate; and specific enumeration shall not exclude the general but shall be construed as cumulative; the word
“or” is not exclusive; the word “including” (in its various forms) shall mean “including, without limitation”;
in the computation of periods of time, the word “from” means “from and including” and the words “to”
and “until” mean “to but excluding”; and all references to money refer to the legal currency of the United States
of America. The Exhibits, Schedules, Annexes, Appendixes and Attachments attached to this Agreement and items referenced as being attached
to this Agreement are incorporated herein and shall be considered a part of this Agreement for all purposes and (c) the words “asset”
and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, real property, securities, accounts and general intangibles.

 

ARTICLE
II

nature of obligations and liens

 

Section
2.01. Obligations and Liens Pari Passu.

 

(a)
Subject to the other terms and conditions of this Agreement, the Loan Obligations shall be pari passu with the Swap Obligations, and
the Loan Obligations and the Swap Obligations shall be secured, Ratably, by the Liens granted to or for the benefit of Collateral Agent
under the Security Instruments. Substantially contemporaneously with the execution of this Agreement, Borrower or the other applicable
Loan Parties shall execute Security Instruments causing the Liens granted under such instruments to be in favor of Collateral Agent for
the benefit of the Creditors, to secure, Ratably, the Loan Obligations and the Swap Obligations. Each Swap Counterparty acknowledges
and agrees that such instruments being executed by Borrower or the other applicable Loan Parties contemporaneously with the execution
of this Agreement shall be in all substantive respects in the form approved by the Swap Counterparties.

 

    	5

     

    

 

(b)
The Liens under the Security Instruments shall be Permitted Liens.

 

(c)
Bank Group consents to the Borrower’s or any other Loan Party’s entering into Swap Agreements with the Swap Counterparties,
subject, however, to the limitations set forth herein or in the Credit Agreement. The Administrative Agent agrees and consents to each
Swap Counterparty being an Approved Swap Counterparty with respect to Swap Agreements; provided, however, that the Administrative
Agent may, by giving written notice to the Borrower and to any Swap Counterparty, elect to revoke such Swap Counterparty’s status
as an Approved Swap Counterparty for purposes of any Swap Agreements entered into beginning on the Business Day following the Borrower’s
and such Swap Counterparty’s receipt (or deemed receipt pursuant to Section 5.08) of such notice.

 

(d)
Without the prior written consent of the Administrative Agent, the Borrower or the applicable Loan Party and the Swap Counterparties
shall not amend, supplement, delete or otherwise modify the Swap Counterparty Master Agreements or any provision thereof from the form
presented to the Administrative Agent for its review prior to execution of this Agreement:

 

(i)
if such action would result in a violation, or the creation of an obligation on the part of the Borrower or the applicable Loan Party
to violate, the limitations on credit support set forth in Section 2.02 hereof;

 

(ii)
such that the Threshold Amount (as defined in the applicable Swap Counterparty Master Agreement) that is applicable to the Borrower or
the applicable Loan Party would be anything other than a fixed dollar amount equal to or greater than $500,000; or

 

(iii)
in a manner that changes or expands the events that constitute Events of Default or Additional Termination Events (each as defined in
the applicable Swap Counterparty Master Agreement) or otherwise has the effect of causing an event to have consequences similar to an
Event of Default or Additional Termination Event under such Swap Counterparty Master Agreement.

 

Notwithstanding
clauses (i) through (iii) preceding, if (1) a Swap Counterparty notifies the Administrative Agent that it and the Borrower
or the applicable Loan Party propose an amendment, supplement, deletion or modification to its applicable Swap Counterparty Master Agreement
mandated by the regulatory requirements imposed by the U.S. Commodity Futures Trading Commission under the Dodd-Frank Wall Street Reform
and Consumer Protection Act and (2) the Borrower’s or the applicable Loan Party’s request for the Administrative Agent’s
consent to the proposed amendment, supplement, deletion or modification is accompanied by a legal opinion of counsel reasonably satisfactory
to the Administrative Agent confirming to the Administrative Agent that such amendment, supplement, deletion or modification is legally
required, then the Administrative Agent will not unreasonably withhold or delay its consent to any such amendment, supplement, deletion
or modification.

 

(e)
The amounts payable by the Borrower or the applicable Loan Party to each Creditor at any time under any of the Principal Agreements to
which such Creditor is a party shall be separate and independent debts, and each Creditor shall be entitled to enforce any right arising
out of the applicable Principal Agreement to which it is a party, subject to the terms thereof and of this Agreement; provided,
however, that nothing in this Agreement shall be construed to impair the right of any Swap Counterparty to exercise its rights
as an unsecured creditor in accordance with the terms of any Swap Document and applicable law.

 

    	6

     

    

 

(f)
Each Creditor hereby agrees that no Creditor shall have any right individually to realize upon any Liens granted under the Security Instruments,
it being understood and agreed that such rights may be exercised only by Collateral Agent or the trustee under the Security Instruments
for the Ratable benefit of the Creditors.

 

(g)
Each Swap Agreement that satisfies the criteria and limitations set forth in the Credit Agreement at the time such Swap Agreement is
entered into shall be deemed to be acceptable under this Agreement and under the Credit Agreement. Any such transaction that does not
comply with such limitations will not be secured by the Collateral, unless the Administrative Agent consents in writing to any such Swap
Agreement being secured by the Collateral.

 

(h)
Each Creditor hereby agrees that it shall not (and hereby waives any right to) contest, or support any other Person in contesting, in
any proceedings (including any insolvency or liquidation proceedings), the priority, validity or enforceability of a Lien held by or
on behalf of the Collateral Agent in any Collateral; provided that nothing in this Agreement shall be construed to prevent or
impair the rights of the Collateral Agent or any Creditor to enforce this Agreement as provided herein.

 

Section
2.02. Limitations on Separate Credit Support. Each Swap Counterparty agrees that, without the prior written consent of the Administrative
Agent, such Swap Counterparty will not seek or accept credit support for any Swap Obligation or any other Swap Agreement between the
Borrower or any of its Subsidiaries and such Swap Counterparty, including without limitation letters of credit, guarantees from any owner
of Borrower or any other Person, or Liens on any Property of the Borrower or any of its Subsidiaries, other than the rights of such Swap
Counterparty under the Security Instruments until after the full and indefeasible payment and cancellation of the Loan Obligations.

 

Section
2.03. Release of Collateral; Authorization; Amendments to Loan Documents; Notice of Releases.

 

(a)
Subject to the terms hereof, Collateral Agent may permit the Borrower and its Subsidiaries to remain in possession and control of the
Collateral, to operate the Collateral, and to collect, invest and dispose of any income thereon or therefrom.

 

(b)
Collateral Agent shall have the right from time to time to release Collateral from the Liens created by the Security Instruments, provided
that the written consent of each Swap Counterparty shall be required for any release of Collateral during any period between successive
scheduled redeterminations of the Borrowing Base if the aggregate Collateral Value of Collateral released during such period is in excess
of 10% of the aggregate Collateral Value of the Oil and Gas Properties of the Borrower and its Subsidiaries included in the determination
of the Borrowing Base as of the beginning of such period. Collateral Agent shall not release any Collateral from the Liens created by
the Security Instruments (i) if, at the time of such release, Collateral Agent is aware of the occurrence and continuance of an Event
of Default under the Credit Agreement or any Swap Counterparty has notified Collateral Agent that an event of default or termination
event has occurred and is continuing under its applicable Swap Counterparty Master Agreement or (ii) if, at the time of such release,
Collateral Agent is aware that the release of any Collateral would result in an Event of Default under the Credit Agreement or any Swap
Counterparty has notified Collateral Agent that such release of such Collateral will result in an event of default or termination event
under its applicable Swap Counterparty Master Agreement.

 

(c)
Subject to the provisions of the applicable Security Instruments, (i) Collateral Agent may, in its sole discretion and without the consent
of the Creditors, take all actions it deems necessary or appropriate in order to enforce any of the terms of the Security Instruments
and (ii) Collateral Agent shall have power to institute and to maintain such suits and proceedings as it may deem expedient (A) to prevent
any impairment of the Collateral by any act that may be unlawful or in violation of the Principal Agreements, and (B) to preserve or
protect its interests and the interests of the Creditors in the Collateral. Notwithstanding the above, Collateral Agent may choose not
to take any action authorized by this Section until it receives written direction from a Creditor.

 

    	7

     

    

 

(d)
The Collateral Agent is authorized to receive any Proceeds for the Ratable benefit of the Creditors and to distribute such Proceeds to
the Creditors in accordance with the provisions of this Agreement.

 

(e)
The Collateral Agent shall, after any release of the Collateral permitted by Section 2.03(b), notify each Swap Counterparty of
such release giving full particulars with respect thereto.

 

(f)
Subject to the terms of this Agreement, Bank Group may enter into any amendment, modification or supplement to any Loan Document (other
than the Security Instruments, unless permitted by Section 2.03(g) below), enter into new, additional or increased credit facilities
with Borrower, or grant any waiver, consent, release, indulgence, extension or renewal with respect to any Loan Document (other than
the Security Instruments, unless permitted by Section 2.03(g) below) or such new, additional or increased credit facilities (“Credit
Agreement Modifications”), and such Credit Agreement Modifications shall be deemed accepted by each Swap Counterparty and the
Borrower for the purposes of each Swap Counterparty Master Agreement with respect to those provisions of the Loan Documents (other than
the Security Instruments, unless permitted by Section 2.03(g) below) incorporated by reference in such Swap Counterparty Master
Agreement. Administrative Agent, shall, after entering into any amendment, modification or supplement to any Loan Document (other
than any amendment, modification or supplement to any Loan Document that does not constitute a Security Instrument), notify the Swap
Counterparties and provide each Swap Counterparty with a copy of such amendment, modification or supplement; provided, however,
that any failure of the Administrative Agent to comply with the requirements of this sentence shall not impact the validity of such amendment,
modification or supplement, give rise to any breach of contract claim against the Administrative Agent or any Lender or result, directly
or indirectly, in any liability being imposed on the Administrative Agent or any Lender in connection therewith.

 

(g)
Collateral Agent may enter into any amendment, modification or supplement to any of the Security Instruments (i) to properly document
a release of Collateral permitted under Section 2.03(b), (ii) to extend the maturity date of the indebtedness owed by the Borrower
to Lenders secured by the Security Instruments, (iii) to add additional properties as Collateral thereunder or (iv) in the event of any
ambiguity, omission, mistake, typographical error, inconsistency or other defect in any provision of any Security Instrument, to amend,
modify or supplement such provision to cure such ambiguity, omission, mistake, typographical error, inconsistency or other defect, but
Collateral Agent may not enter into any other amendment to any of the Security Instruments without the prior written consent of each
Swap Counterparty.

 

ARTICLE
III

COLLATERAL AGENT

 

Section
3.01. Appointment of the Collateral Agent. Each Creditor hereby designates FBSW to act as the contractual representative for the
Creditors (in such capacity, the “Collateral Agent”) to hold and enforce the Liens under the Security Instruments
for the benefit of the Creditors and take certain other actions as permitted by the Security Instruments and this Agreement. Each Creditor
hereby authorizes the Collateral Agent to take such action on its behalf under the provisions of this Agreement and the Security Instruments
and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to it hereunder or under
any Security Instrument or required of the Collateral Agent by the terms hereof or thereof and such other powers as are reasonably incidental
thereto. The Collateral Agent may perform any of its duties hereunder by or through its agents or employees. The Collateral Agent agrees
to act as the Collateral Agent upon the express terms and conditions contained herein.

 

    	8

     

    

 

Section
3.02. Nature of Duties of the Collateral Agent. The Collateral Agent shall have no duties or responsibilities, except those expressly
set forth in this Agreement, the Credit Agreement or the Security Instruments. The Collateral Agent shall have and may exercise such
powers hereunder and under the Security Instruments as are specifically delegated to Collateral Agent by the terms hereof, together with
such powers as are reasonably incidental thereto. The Collateral Agent and its Related Parties (each, a “Protected Party”)
shall not be liable to the Creditors for any damages caused by any action taken or omitted by any Protected Party hereunder or under
the Security Instruments (INCLUDING THOSE DAMAGES CAUSED BY THE SOLE NEGLIGENCE, COMPARATIVE NEGLIGENCE, CONTRIBUTORY NEGLIGENCE OR
CONCURRENT NEGLIGENCE OF ANY PROTECTED PARTY), except, with respect to any Protected Party, to the extent caused solely by the gross
negligence or willful misconduct of such Protected Party, as determined by a court of competent jurisdiction by a final and non-appealable
judgment. The duties of the Collateral Agent shall be mechanical and administrative in nature. The Collateral Agent, in its capacity
as such, shall not have by reason of this Agreement or the Security Instruments a fiduciary relationship in respect of any Creditor.
Nothing in this Agreement, expressed or implied, is intended to or shall be so construed as to impose upon Collateral Agent any duties
or obligations in respect of this Agreement and the Security Instruments except as expressly set forth herein.

 

Section
3.03. Lack of Reliance on the Collateral Agent.

 

(a)
Independently and without reliance upon the Collateral Agent or any other Creditor, each Creditor represents to the Collateral Agent
and each of the other Creditors that, as of the date of this Agreement, such Creditor has made (i) its own independent investigation
of the financial condition and affairs of the Borrower and its Subsidiaries based on such documents and information as it has deemed
appropriate in connection with the taking or not taking of any action in connection herewith, and (ii) its own appraisal of the creditworthiness
of the Borrower and its Subsidiaries. Each Creditor also acknowledges that it will, independently and without reliance upon the Collateral
Agent or any other Person and based on such documents and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under this Agreement or the Security Instruments. Except as expressly provided in
this Agreement, the Collateral Agent shall have no duty or responsibility, either initially or on a continuing basis, to provide any
Creditor with any credit or other information concerning the affairs, financial condition or business of Borrower or any of its Subsidiaries
which may come into the possession of the Collateral Agent or any of its affiliates whether now in its possession or in its possession
at any time or times hereafter; and the Collateral Agent shall not be required to keep itself informed as to the performance or observance
by the Borrower or its Subsidiaries of this Agreement, any Security Instrument or any other document referred to or provided for herein
or to inspect the Properties or books of Borrower or any of its Subsidiaries. Notwithstanding foregoing, Borrower expressly agrees that
Collateral Agent and any Creditor shall have the right, but not the obligation, to provide to any other party to this Agreement any information
whatsoever concerning Borrower, either provided by Borrower, or otherwise obtained. Borrower releases Collateral Agent and the Creditors
from any liability arising from the release or disclosure of information pertaining to Borrower by any of those parties to the other
parties hereto.

 

(b)
The Collateral Agent shall not (i) be responsible to any Creditor for any recitals, statements, information, representations or warranties
herein, in any Security Instrument, or in any document, certificate or other writing delivered in connection herewith or therewith or
for the execution, effectiveness, genuineness, validity, enforceability, collectability, priority or sufficiency of this Agreement or
the Security Instruments or the financial condition of Borrower or any of its Subsidiaries; or (ii) be required to make any inquiry concerning
(A) the performance or observance by others of any of the terms, provisions or conditions of this Agreement or the Security Instruments,
including the content of notices, opinions, certificates and directions given under this Agreement or the Security Instruments, (B) the
financial condition of Borrower or any of its Subsidiaries, or (C) the existence or possible existence of any “default” or
“event of default” under the Principal Agreements, provided that Collateral Agent will promptly notify the Swap Counterparties
of any Notice of Default given by Administrative Agent to the Borrower; provided further that any failure by Collateral Agent
to provide such notice under this clause (b) shall not limit or affect the rights and obligations of the parties hereunder.

 

    	9

     

    

 

Section
3.04. Certain Rights of the Collateral Agent. If the Collateral Agent shall request instructions from the Creditors with respect
to any act or action (including the failure to act) in connection with this Agreement or the Security Instruments, the Collateral Agent
shall be entitled to refrain from such act or taking such action unless and until the Collateral Agent shall have received written instructions
from any Creditor or Creditors pursuant to the terms hereof; and the Collateral Agent shall not incur liability to any Person by reason
of so refraining. Without limiting the foregoing, no Creditor shall have any right of action whatsoever against the Collateral Agent
as a result of the Collateral Agent acting or refraining from acting under this Agreement or the Security Instruments in accordance with
the written instructions given in accordance with this Agreement, and such instructions and any action taken or failure to act pursuant
thereto shall be binding on all the Creditors. The Collateral Agent shall be fully justified in failing or refusing to take any action
hereunder or under the Security Instruments unless it shall first be indemnified to its satisfaction by the Creditors against any and
all liability and expense which may be incurred by the Collateral Agent by reason of taking or continuing to take any such action. Notwithstanding
any other provision of this Article III or any indemnity or instructions provided by any or all of the Creditors, the Collateral
Agent shall not be required to take any action which, in the reasonable belief of the Collateral Agent, exposes the Collateral Agent
to personal liability or which, in the reasonable belief of the Collateral Agent, is contrary to this Agreement, the Security Instruments
or applicable law.

 

Section
3.05. Reliance by the Collateral Agent. The Collateral Agent shall be entitled to rely, and shall be fully protected in relying,
upon any writing, resolution, notice, statement, certificate or telecopier message, cablegram, radiogram, facsimile transmission, e-mail,
order or other documentary, teletransmission or telephone message believed by it to be genuine and correct and to have been signed, sent
or made by the proper Person. The Collateral Agent may consult with legal counsel, accountants and other experts selected by it and shall
not be liable for any action taken or omitted to be taken by it in good faith in accordance with the advice of such counsel, accountants
or experts.

 

Section
3.06. The Collateral Agent in its Individual Capacity. FBSW shall have the same rights hereunder as any other Creditor and may
exercise the same as though it were not performing the duties of the Collateral Agent specified herein; and the term “Creditors”
or any similar term shall, unless the context clearly otherwise indicates, include FBSW in its individual capacity as a Lender and not
in its capacity as the Collateral Agent. FBSW may accept deposits from, lend money to, take collateral from and generally engage in any
kind of banking, trust, financial advisory or other business with Borrower or any Subsidiary as if it were not performing the duties
as the Collateral Agent specified herein, and may accept fees and other consideration from Borrower or any Subsidiary for services in
connection with this Agreement and otherwise without having to account for the same to the Creditors except as specified herein.

 

Section
3.07. Creditors as Owners. The Collateral Agent may deem and treat each Creditor as the owner of its portion of the Total Obligations
as described herein for all purposes hereof unless and until the Collateral Agent is notified of a change in Creditors.

 

    	10

     

    

 

Section
3.08. Successor Collateral Agent.

 

(a)
The Collateral Agent may resign at any time by giving prior written notice thereof to the Creditors and Borrower, which resignation shall
be effective upon the earlier to occur of (i) the appointment of a successor to Collateral Agent in accordance with this Section 3.08(a)
and (ii) 30 days after the resigning Collateral Agent gives notice of its resignation (the “Resignation Effective Date”).
Following any such notice of resignation, the resigning Collateral Agent shall have the right to appoint a successor Collateral Agent,
subject to the consent of the Borrower and the Swap Counterparties to the appointee (which consent shall not be unreasonably withheld,
conditioned or delayed); provided, however, notwithstanding the foregoing, if a Triggering Event has occurred at the time of the Collateral
Agent’s notice of resignation, the Swap Counterparties shall have the right to unanimously appoint a successor Collateral Agent.
If, at the time of Collateral Agent’s notice of resignation, a Triggering Event has not occurred and within 30 days after the retiring
Collateral Agent’s giving of notice of resignation, no successor Collateral Agent shall have been so appointed by the resigning
Collateral Agent which has accepted such appointment, then the Swap Counterparties may unanimously appoint a successor Collateral Agent.
Whether or not a successor to Collateral Agent has been appointed, such resignation of the Collateral Agent shall become effective in
accordance with such notice on the Resignation Effective Date.

 

(b)
Upon the acceptance of any appointment as Collateral Agent hereunder by a successor Collateral Agent, such successor Collateral Agent
shall thereupon succeed to and become vested with all the rights and duties of the retiring Collateral Agent, and on the Resignation
Effective Date, the retiring Collateral Agent shall be discharged from its duties under this Agreement. After any retiring Collateral
Agent’s resignation hereunder as Collateral Agent, the provisions of this Agreement shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Collateral Agent under this Agreement.

 

Section
3.09. Employment of Collateral Agent and Counsel. The Collateral Agent may execute any of its duties as Collateral Agent hereunder
or under the Security Instruments by or through employees, agents, and attorneys-in-fact and shall not be answerable to the Creditors
for the default or misconduct of any such employees, agents or attorneys-in-fact reasonably selected by it in good faith unless such
default or misconduct is a direct result of the gross negligence or willful misconduct (as determined by a court of competent jurisdiction
by a final and non-appealable judgment) of the Collateral Agent in monitoring the activities of such employees, agents or attorneys-in-fact,
provided that the Collateral Agent shall always be obligated to account for moneys or securities received by it or its authorized
agents. The Collateral Agent shall be entitled to advice of independent legal counsel concerning all matters pertaining to the collateral
agency hereby created and its duties hereunder or under the Security Instruments.

 

Section
3.10. Limitation on Liability of the Creditors and the Collateral Agent. The Creditors and the Collateral Agent shall not be deemed,
as a result of the execution and delivery of the Security Instruments or the consummation of the transactions contemplated by this Agreement
and the Security Instruments, to have assumed any obligation of Borrower or any of its Subsidiaries with respect to the Collateral or
any liability under or with respect to any of the contracts, agreements, leases, instruments or documents which are, or which may hereafter
be, assigned to the Collateral Agent for the benefit of the Creditors.

 

ARTICLE
IV

election to pursue remedies; proceeds

 

Section
4.01. Procedures Regarding Remedies.

 

(a)
Upon the occurrence and during the continuance of any Triggering Event, the Collateral Agent shall, within 30 days after written request
from any Creditor specifying the particular actions being requested by such Creditor, and subject to the other provisions of this Agreement,
commence to take, or direct the appropriate trustee or agent to take, those requested actions provided for in the Security Instruments
relating to the pursuit of remedies which the Collateral Agent deems appropriate in its reasonable judgment to realize the value and
benefits of the Collateral, including, but not limited to, the foreclosure of the Liens or other disposition of the Collateral.

 

    	11

     

    

 

(b)
The Borrower and the Creditors agree that upon the occurrence of a Triggering Event, all payments made to any Creditor by Borrower shall
be shared by all Creditors in accordance with Section 4.02.

 

(c)
Each Creditor agrees: (i) to deliver to each other Creditor, as applicable, at the same time it makes delivery to the Borrower, a copy
of any (A) notice declaring the occurrence of an Event of Default under any Loan Documents or an event of default or termination event
under any Swap Documents, as applicable, (B) notice of intent to accelerate or notice of acceleration of the Borrower’s obligations,
or (C) notice of the designation of an early termination date with respect to any Swap Obligation and (ii) to deliver to each other Creditor,
at the same time it makes delivery to any other Person, a copy of any notice of the commencement of any judicial proceeding and a copy
of any other notice with respect to the exercise of remedies with respect to any of the Total Obligations. Any failure by a party hereto
to furnish a copy under this clause (c) shall not limit or affect the rights and obligations hereunder.

 

(d)
Each of the Swap Counterparties and the Collateral Agent hereby agrees that it shall endeavor to furnish the Borrower with a copy of
any notice provided or received, as applicable, by it pursuant to clause (a) of the definition of Triggering Event. Each of the
Borrower and Administrative Agent hereby agrees that it shall endeavor to furnish the Swap Counterparties with a copy of any notice received
or provided, as applicable, by it pursuant to clause (b) of the definition of Triggering Event. Any failure by a party hereto
to furnish a copy under this clause (d) shall not limit or affect the rights and obligations hereunder.

 

(e)
Borrower hereby agrees that each Swap Counterparty may provide to Administrative Agent from time to time, and each Swap Counterparty
hereby agrees to provide or otherwise make available (which may be via access to an online portal containing the daily mark to market
information of Borrower) to Administrative Agent within three (3) Business Days following such Swap Counterparty’s receipt of a
written request therefor from Administrative Agent, a report of the marked-to-market positions of the various transactions in effect
from time to time under the applicable Swap Documents. Borrower hereby irrevocably consents and agrees that each Swap Counterparty may
provide or otherwise make available to Administrative Agent, its successors and assigns such reports and mark to market information as
contemplated above, including, without limitation, by granting Administrative Agent access to an online portal that reflects the daily
mark to market information of Borrower. Any unintentional failure by a Swap Counterparty to timely furnish information required under
this clause (e) shall not limit or affect the parties’ rights and obligations hereunder.

 

(f)
In the event that the Liens created under the Security Instruments conflict with the Liens created under other security documents in
favor of or for the benefit of the Administrative Agent, the Liens created under the Security Instruments shall have priority.

 

(g)
In the event that the Liens created under the Security Instruments conflict with the Liens created under other security documents in
favor of or for the benefit of Bank Group, the Liens created under the Security Instruments shall have priority.

 

(h)
If the Collateral Agent fails to take any reasonably requested action under the Security Instruments following the occurrence and during
the continuance of a Triggering Event, after being requested to do so by a Swap Counterparty or Bank Group, or if the Collateral Agent
fails to diligently pursue such action, such Swap Counterparty or Bank Group, as applicable, shall be entitled to obtain equitable relief,
including one or more injunctions, from any court having jurisdiction, compelling the Collateral Agent, in its capacity as collateral
agent, to perform such tasks and take such action as requested by such Swap Counterparty or Bank Group hereunder. Each Swap Counterparty
and Bank Group may also, without waiving any remedy herein, obtain from any court having jurisdiction any interim or provisional relief
that is necessary to protect their respective rights under the Security Instruments.

 

    	12

     

    

 

Section
4.02. Proceeds.

 

(a)
The Creditors hereby agree between themselves that (i) prior to the occurrence of a Triggering Event, each Creditor shall be entitled
to receive and retain for its own account, and shall never be required to disgorge to Collateral Agent or any other Creditor hereunder
or acquire direct or participating interests in the Loan Obligations or the Swap Obligations, as the case may be, owing to such Creditor,
scheduled payments or voluntary prepayments, payments for the redemption or purchase of principal, interest, fees and premium, if any,
settlement payments and any other payments in respect of the Principal Agreements or Credit Agreement Modifications, all in compliance
with the terms thereof, and (ii) upon the occurrence and during the continuance of a Triggering Event, all such amounts received by any
Creditor after such Triggering Event (other than amounts received by the Bank Group from a Guarantor or from realization on collateral
pledged to the Bank Group that does not constitute Collateral, or any netting or setoff rights exercised by any Swap Counterparty, which
are acknowledged to be for the sole benefit of the relevant Swap Counterparty) shall constitute Proceeds, shall be turned over to Collateral
Agent, and shall be shared by the Creditors, Ratably, and in accordance with Section 4.02(b) below.

 

(b)
All Proceeds received by the Collateral Agent after the occurrence of a Triggering Event shall be applied in accordance with this Section
4.02. To the extent any Creditor ever receives any portion of such Proceeds in excess of its Ratable share (or to the extent the
Collateral Agent receives reimbursement in excess of expenses actually incurred), the party receiving those excess Proceeds agrees to
promptly make all necessary transfers so as to give full effect to this Section 4.02. All Proceeds received by the Collateral
Agent after the occurrence of a Triggering Event shall be applied in the following order:

 

(i)
First, to reimburse the Collateral Agent for expenses in accordance with Section 5.01;

 

(ii)
Second, to Administrative Agent in respect of amounts owing to the Administrative Agent for that portion of the Loan Obligations
constituting fees, expenses and indemnities payable to the Administrative Agent in its capacity as such under the Credit Agreement;

 

(iii)
Third, to Administrative Agent in respect of amounts owing to the Bank Group constituting accrued and unpaid interest of the Loan
Obligations;

 

(iv)
Fourth, Ratably to (A) Administrative Agent in respect of amounts owing to the Bank Group constituting unpaid principal of the
Loan Obligations and (B) Swap Counterparties in respect of amounts owing to the Swap Counterparties constituting the Swap Obligations,
in each case, until the Total Obligations are fully satisfied;

 

(v)
Fifth, to FBSW in satisfaction of any additional indebtedness of the Borrower to it; and

 

(vi)
Sixth, to the extent that any Proceeds remain, to the Borrower, or as otherwise required by applicable law.

 

    	13

     

    

 

Section
4.03. Notice of Amount of Indebtedness. Upon receipt of any Proceeds to be distributed pursuant to Section 4.02, the Collateral
Agent shall give the Creditors notice thereof, and each Creditor (or its representative) shall, within 3 Business Days, notify the Collateral
Agent of the amount of the Total Obligations owing to it. Such notification shall state the amount of the Total Obligations owing to
it and how much is then due and owing. If requested by the Collateral Agent, each Creditor (or its representative) shall demonstrate
that the amounts set forth in its notice are actually owing to such Creditor to the reasonable satisfaction of the Collateral Agent.
Notwithstanding the foregoing, the Collateral Agent may conclusively rely on information in such notices without any investigation. In
the event that any Creditor fails to timely notify the Collateral Agent of the amount of the Total Obligations owed to it, the Collateral
Agent shall distribute such Proceeds on any basis deemed reasonable by it and not in bad faith.

 

Section
4.04. Additional Swap Counterparties. As a condition to the Swap Agreements entered into by Borrower or any of its Subsidiaries
with any other Approved Swap Counterparty being secured obligations under the Security Instruments (other than those entered into between
the Borrower and FBSW or any other Lender or Secured Cash Management Provider), each such other Approved Swap Counterparty will be required
to become a party to this Agreement by executing a Joinder Supplement on terms reasonably acceptable to the Creditors.

 

ARTICLE
V

miscellaneous

 

Section
5.01. Expenses. The Creditors shall each bear their Ratable share of any reasonable expenses incurred by the Collateral Agent
in taking action on behalf of the Creditors in connection with its investigation, evaluation or enforcement of any rights under the Security
Instruments, but only to the extent the Collateral Agent does not receive reimbursement for such expenses from the Borrower within a
reasonable time after such expenses are incurred; provided that, to the extent a Creditor reimburses the Collateral Agent for
such expenses, such Creditor will be entitled to receive its ratable share of any reimbursement subsequently received by the Collateral
Agent from an Loan Party.

 

Section
5.02. Limitation of Liability; Indemnification of the Collateral Agent. Neither the Collateral Agent nor any of the other Protected
Parties shall (i) be liable for any action taken or omitted to be taken by it or them hereunder or under the Security Instruments in
good faith and reasonably believed by it or them to be within the discretion or power conferred upon it or them by this Agreement and
the Security Instruments or (ii) be responsible for the consequences of any error of judgment, except, with respect to any Protected
Party, to the extent arising solely from such Protected Party’s gross negligence or willful misconduct, as determined by a court
of competent jurisdiction by a final and non-appealable judgment. The Collateral Agent shall not be responsible in any manner to any
other party for the effectiveness, enforceability, genuineness, validity or the due execution of the Security Instruments or for any
representation, warranty, document, certificate, report or statement made in or in connection with the Security Instruments or be under
any obligation to any other party to ascertain or inquire as to the performance or observation of any of the terms, covenants or conditions
of any of the Loan Documents or the Swap Documents on the part of Borrower or any of its Subsidiaries. Each of the Creditors agrees to
Ratably reimburse and indemnify the Collateral Agent and its Related Parties (each an “Indemnified Party”) on a current
basis and hold the Indemnified Parties harmless on a current basis from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, reasonable expenses, and reasonable disbursements of any kind or nature whatsoever which
may be imposed on, asserted against or incurred by any Indemnified Party in any way relating to or arising out of this Agreement or the
Security Instruments or any action taken or omitted by an Indemnified Party under this Agreement or the Security Instruments,
INCLUDING ANY SUCH LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, REASONABLE EXPENSES AND
REASONABLE DISBURSEMENTS ARISING OUT OF THE SOLE, CONCURRENT, CONTRIBUTORY OR COMPARATIVE NEGLIGENCE OF ANY INDEMNIFIED PARTY, except,
with respect to any Indemnified Party, to the extent the same results solely from the gross negligence or willful misconduct of such
Indemnified Party, as determined by a court of competent jurisdiction by a final and non-appealable judgment. The
provisions of this Section shall survive the termination of this Agreement, whether in whole or in part.

 

    	14

     

    

 

Section
5.03. Term. This Agreement shall terminate upon (a) the full and indefeasible payment, and cancellation or termination, as applicable,
of the Loan Obligations and the Swap Obligations or (b) the execution and delivery of a written termination notice signed by each of
the parties; provided that if at any time any payment of the Total Obligations is rescinded or must be restored or returned upon
the insolvency, bankruptcy or reorganization of Borrower or any Subsidiary or otherwise, the obligations of the Borrower and the rights
of the Creditors under this Agreement, with respect to that payment, shall be reinstated as though the payment had been due but not made
at that time.

 

Section
5.04. Survival of Rights. All of the respective rights and interests of the Creditors under this Agreement (and the respective
obligations and agreements of the Creditors under this Agreement), shall remain in full force and effect regardless of:

 

(a)
any lack of validity or enforceability of any of the Loan Documents, the Swap Documents or any other agreement or instrument related
thereto; or

 

(b)
any other circumstance which might otherwise constitute a defense available to, or discharge of, Borrower or any Subsidiary with respect
to the Loan Obligations or the Swap Obligations (other than the defense that such obligations have been fully satisfied).

 

Section
5.05. Representations and Warranties. Each of the Borrower and the Swap Counterparties represents to each other and to the Collateral
Agent that as of the date of this Agreement it is, and covenants that as of the date of its entry into any Swap Agreements it will be,
an ECP. FBSW, as the Administrative Agent and as the Collateral Agent, and the Swap Counterparties each represent and warrant to one
another that:

 

(a)
neither the execution and delivery of this Agreement nor its performance of or compliance with the terms and provisions hereof will conflict
with, or result in a breach of the terms, conditions or provisions of, or constitute a default under, any other agreement to which it
is now subject;

 

(b)
it has all requisite authority to execute, deliver and perform its obligations under this Agreement; and

 

(c)
this Agreement constitutes its legal, valid, and binding obligation, enforceable against it in accordance with its terms, subject only
to applicable bankruptcy, insolvency or similar laws and general principles of equity.

 

Section
5.06. Further Assurances. Each of the Administrative Agent and the Swap Counterparties covenants that, as long as this Agreement
remains in effect, such Person will execute and deliver any and all other instruments reasonably requested by the other to give effect
to the terms and conditions of this Agreement. Without limiting the foregoing, Administrative Agent will endeavor to furnish the Swap
Counterparties with copies of all statements, engineering reserve reports or other information that Administrative Agent furnishes to
the Borrower that summarizes projected volumes of production from Oil and Gas Properties of the Borrower and its Subsidiaries utilized
by Administrative Agent in setting or redetermining the Borrowing Base, the projected value of such properties as determined by Administrative
Agent utilizing its standard methods for determination at such time and any projected net revenues or cash flows from such properties,
and Borrower hereby consents to Administrative Agent’s disclosure of any and all such information; provided, however, that
Administrative Agent shall not be liable for any damages, expenses or losses that may be directly or indirectly attributable to any failure
by Administrative Agent to furnish any such information.

 

    	15

     

    

 

Section
5.07. Assignment; Agreement Binding on Successors and Assigns. The terms and provisions of this Agreement shall be binding upon
and inure to the benefit of each Creditor and its respective successors and assigns. The terms and provisions of this Agreement shall
not inure to the benefit of, nor be relied upon by, Borrower or its successors or assigns. No Swap Counterparty shall assign, transfer
or sell any part of its portion of the Total Obligations without the prior consent of the Administrative Agent in its sole discretion,
except as otherwise permitted under the applicable Swap Document. For the avoidance of doubt, any assignee, transferee or purchaser,
as applicable, of any Swap Counterparty, shall not be deemed as a “Swap Counterparty” hereunder nor as a “Secured Swap
Provider” under the Credit Agreement until such assignee, transferee or purchaser, as applicable, satisfies the criteria of being
an Approved Swap Counterparty and has executed a Joinder Supplement on terms reasonably acceptable to the Creditors.

 

Section
5.08. Notice. Unless otherwise provided, any consent, request, notice, or other communication under or in connection with this
Agreement must be in writing to be effective and shall be deemed to have been given (a) if by mail, on the third Business Day after it
is enclosed in an envelope and properly addressed, stamped, sealed, certified return receipt requested, and deposited in the appropriate
official postal service, or (b) if by courier, electronic transmissions, or facsimile transmission, when actually delivered. Until changed
by a subsequent notice delivered in accordance with this Section, notices for each party are to be directed to:

 

For
delivery to Nextera:

Nextera
Energy Marketing, LLC

700
Universe Blvd.

June
Beach, FL 33408

Attention:
Contracts/Legal Department

Facsimile:
(561) 625-7504

 

For
delivery to Borrower:

U.S.
Energy Corp.

675
Bering, Suite 390

Houston,
Texas 77057

Attention:
Ryan Smith

Email:
ryan@usnrg.com

 

For
delivery to FBSW, Administrative Agent or Collateral Agent:

FirstBank
Southwest

2401 S. Georgia, P.O. Box 32552

Amarillo,
Texas 79120-2552

Attention: Dustin Hansen

Facsimile:
(806) 354-5266

Email:
dustinhansen@fbsw.com

 

Section
5.09. Amendment. This Agreement may only be waived, amended, modified, or terminated by a written agreement signed by all the
parties hereto. Delivery of an executed counterpart of such written instrument by telecopy, e-mail, facsimile or other electronic means
shall be effective delivery of a manually executed counterpart of such written instrument.

 

    	16

     

    

 

Section
5.10. Governing Law; Venue.

 

(a)
This Agreement, the entire relationship of the parties to the extent related hereto, and any litigation between the parties (whether
grounded in contract, tort, statute, law or equity) to the extent related hereto shall be governed by, construed in accordance with,
and interpreted pursuant to the laws of the State of Texas, without giving effect to its choice of laws principles.

 

(b)
The parties hereto hereby irrevocably submit to the non-exclusive jurisdiction of any United States federal or Texas state court sitting
in Potter County, Texas in any action, suit or proceeding arising out of or relating to this Agreement. The parties hereto hereby irrevocably
agree that all claims in respect of such action, suit or proceeding may be heard and determined in any such court and irrevocably waive
any objection any of them may now or hereafter have as to venue of any such action, suit or proceeding brought in such a court, or that
such court is an inconvenient forum. Nothing herein shall limit the right of Collateral Agent or Administrative Agent to bring proceedings
against Borrower or a Swap Counterparty in the courts of any other jurisdiction. Any judicial proceeding by the Borrower or a Swap Counterparty
against the Collateral Agent, the Administrative Agent, any Lender, FBSW or any Affiliate of any of the foregoing involving any matter
arising out of this Agreement shall be brought only in a federal or state court in Potter County, Texas.

 

Section
5.11. Invalid Provisions. If any part of this Agreement is for any reason found to be unenforceable, all other portions nevertheless
remain enforceable. However, if the provision held to be unenforceable is a material part of the Agreement, such unenforceable provision
may, to the extent permitted by law, be replaced by a clause or provision judicially construed and interpreted to be as similar in substance
and content to the original terms of such provision as the context would reasonably allow, so that such clause or provision would thereafter
be enforceable.

 

Section
5.12. Multiple Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signatories
had signed the same document, and will be effective upon the execution of one or more counterparts hereof by each of the parties hereto.
In this regard, each of the parties hereto acknowledges that a counterpart of this Agreement containing a set of counterpart execution
pages reflecting the execution of each party hereto shall be sufficient to reflect the execution of this Agreement by each party hereto.
All counterparts will, taken together, constitute one and the same instrument. Delivery of an executed counterpart of a signature page
of this Agreement by telecopy, e-mail, facsimile or other electronic means shall be effective as a delivery of a manually executed counterpart
of this Agreement.

 

Section
5.13. Jury Waiver. EACH OF FBSW, ADMINISTRATIVE AGENT (FOR ITSELF AND ON BEHALF OF THE
BANK GROUP), THE COLLATERAL AGENT, THE SWAP COUNTERPARTIES, AND THE BORROWER HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY
WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) AMONG FBSW, ADMINISTRATIVE
AGENT, THE BANK GROUP, THE COLLATERAL AGENT, THE SWAP COUNTERPARTIES AND THE BORROWER (OR ANY OF THEM) ARISING OUT OF OR IN ANY WAY RELATED
TO THIS AGREEMENT, AND EACH IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT TO RECOVER ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL
DAMAGES IN ANY DISPUTE ARISING IN CONNECTION HEREWITH.

 

Section
5.14. Controlling Agreement. To the extent the terms of this Agreement directly conflict with a provision in either the Loan Documents
or the Swap Documents, the terms of this Agreement shall control.

 

Section
5.15. Integration. This Agreement and all documents and instruments referenced herein
represent the final agreement AMONG THE PARTIES HERETO with respect to the subject matter hereof and thereof and may not be contradicted
by evidence of prior, contemporaneous, or subsequent oral agreements by the parties. There are no unwritten oral agreements among the
parties.

 

[SIGNATURES
appear ON FOLLOWING PAGEs]

 

    	17

     

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first hereinabove written.

 

	 	SWAP
    COUNTERPARTIES:
	 	 	 
	 	NEXTERA
    ENERGY MARKETING, LLC
	 	 	 
	 	By:	/s/
    Craig Shapiro
	 	Name:	Craig
    Shapiro
	 	Title:	Vice
    President

 

[Signatures
continue on following pages]

 

[Signature
Page to Intercreditor Agreement]

 

    	 

     

    

 

	 	BORROWER:
	 	 
	 	U.S.
    ENERGY CORP.
	 	 	 
	 	By:	/s/
    Ryan Smith
	 	 	Ryan
    Smith
	 	 	Chief
    Executive Officer

 

[Signatures
continue on following pages]

 

[Signature
Page to Intercreditor Agreement]

 

    	 

     

    

 

	 	FBSW,
    in its capacity as Administrative Agent for the Lenders:
	 	 	 
	 	FIRSTBANK
    SOUTHWEST
	 	 	 
	 	By:	/s/
    Dustin Hansen
	 	 	Dustin
    Hansen
	 	 	Senior
    Vice President
	 	 	 
	 	FBSW,
    in acceptance of its appointment as Collateral Agent:
	 	 	 
	 	FIRSTBANK
    SOUTHWEST
	 	 	 
	 	By:	/s/
    Dustin Hansen
	 	 	Dustin
    Hansen
	 	 	Senior
    Vice President

 

[Signature
Page to Intercreditor Agreement]

 

    	 

     

    

 

EXHIBIT
A

 

JOINDER
SUPPLEMENT

 

This
Joinder Supplement (this “Supplement”) dated as of __________ is executed by __________ (the “New Swap Counterparty”),
U.S. ENERGY CORP. (the “Borrower”), and FIRSTBANK SOUTHWEST, as Administrative Agent (in such capacity, “Administrative
Agent”) and as Collateral Agent (in such capacity, “Collateral Agent”).

 

All
capitalized terms used herein but not defined herein shall have the meanings set forth in the Agreement (as defined below).

 

W
I T N E S S E T H:

 

WHEREAS,
the Borrower, the Administrative Agent, the Collateral Agent, and Nextera Energy Marketing, LLC, have heretofore entered into that certain
Intercreditor Agreement dated as of January 5, 2022 (as amended, restated, supplemented or otherwise modified from time to time, the
“Agreement”), providing for, among other matters, the relative rights and obligations and apportionment of certain
collections among the Creditors and the exercise of certain remedies under the Security Instruments;

 

WHEREAS,
the Agreement provides that one or more additional Persons may become Swap Counterparties thereunder if each such Person is approved
by the Administrative Agent and becomes a Swap Counterparty for the purposes of the Agreement and the Security Instruments by executing
and delivering a Joinder Supplement; and

 

WHEREAS,
the New Swap Counterparty desires to become a “Swap Counterparty” under the Agreement;

 

NOW
THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

 

A.
Recognition. The Administrative Agent hereby recognizes the New Swap Counterparty as a “Swap Counterparty” under the
Agreement and the Security Instruments.

 

B.
Agreement to be Bound. The New Swap Counterparty hereby agrees to be bound by all of the terms and provisions of the Agreement
as, and assumes all of the obligations of, a Swap Counterparty thereunder. The New Swap Counterparty acknowledges and agrees that the
terms of the Agreement shall control over the terms of any ISDA master agreement, including each confirmation now or hereafter entered
into thereunder, between the Borrower and the New Swap Counterparty to the extent any conflict exists between the Agreement and any such
agreement or confirmation.

 

C.
Ratification of Agreement; Joinder Supplement Part of Agreement. This Supplement shall form a part of the Agreement for all purposes.
As expressly supplemented hereby, the Agreement is in all respects ratified and confirmed and all the terms, conditions and provisions
thereof shall remain in full force and effect.

 

D.
No Representation by the Collateral Agent. The Collateral Agent makes no representation as to the validity or sufficiency of the
Security Instruments, and the New Swap Counterparty acknowledges, consents to and accepts the disclaimers by, and limitations on the
liability of, the Collateral Agent that are provided in the Agreement.

 

    	Joinder Supplement	Page 1	 

     

    

 

E.
Representations and Warranties of the New Swap Counterparty. The New Swap Counterparty represents and warrants to the other Creditors
that:

 

	 	1.	it
    is an “Approved Counterparty”, as such term is defined in the Credit Agreement;
	 	 	 
	 	2.	neither
    the execution and delivery of this Supplement or the Agreement nor its performance of or compliance with the terms and provisions
    hereof or thereof will conflict with, or result in a breach of the terms, conditions or provisions of, or constitute a default under,
    any other agreement to which it is now subject;
	 	 	 
	 	3.	it
    has all requisite authority to execute, deliver and perform its obligations under this Supplement and the Agreement; and
	 	 	 
	 	4.	each
    of this Supplement and the Agreement constitutes its legal, valid, and binding obligation, enforceable against it in accordance with
    its terms, subject only to applicable bankruptcy, insolvency or similar laws and general principles of equity.

 

F.
Counterparts. The parties may sign any number of counterparts of this Joinder Supplement, and different parties may sign on different
signature pages. Each signed counterpart shall be an original, but all of them together shall represent the same Joinder Supplement.
Delivery of an executed signature page of this Joinder Supplement by facsimile transmission or other electronic means shall be effective
as delivery of a manually executed counterpart hereof.

 

[SIGNATURES
appear ON FOLLOWING PAGEs]

 

    	Joinder Supplement	Page 2	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Joinder Supplement to be duly executed as of the date first above written.

 

	NEW
    SWAP COUNTERPARTY:	[                                                                                                             ]
	 	 	 
	 	By:
    	                                                                                                  
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Address
    for notices under the Agreement:
	 	 
	 	 
	 	 

 

    	Joinder Supplement	Page 3	 

     

    

 

	ADMINISTRATIVE
    AGENT:	FIRSTBANK
    SOUTHWEST,
	 	as
    the Administrative Agent
	 	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 
	 	 	 
	COLLATERAL
    AGENT:	FIRSTBANK
    SOUTHWEST,
	 	as
    the Collateral Agent
	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 

 

    	Joinder Supplement	Page 4	 

     

    

 

	ACKNOWLEDGED
    AND AGREED	 	 
	as
    of the date first above written:	 	 
	 	 	 
	BORROWER:	U.S.
    ENERGY CORP.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	Joinder Supplement	Page 5

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