Document:

Security Agreement, dated as of November 23, 2010

 Exhibit 4.3 
 EXECUTION VERSION 
 SECURITY AGREEMENT

 dated as of 
 November 23, 2010 
 made by 

BLACK ELK ENERGY OFFSHORE OPERATIONS, LLC, 
 BLACK ELK ENERGY FINANCE CORP., 
 BLACK ELK ENERGY LAND OPERATIONS, LLC,

 and 
 THE OTHER GRANTORS PARTY HERETO, 
 in favor of 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. 
 as Trustee and Collateral Agent 
  
  

 

 TABLE OF CONTENTS 

 

					
	 ARTICLE I Definitions
	  	 2

			
	 Section 1.01
	  	 Definitions.
	  	 2

	 Section 1.02
	  	 Other Definitional Provisions; References
	  	 7

		
	 ARTICLE II Grant of Security Interest
	  	 7

			
	 Section 2.01
	  	 Grant of Security Interest
	  	 7

	 Section 2.02
	  	 Transfer of Pledged Securities
	  	 9

	 Section 2.03
	  	 Grantor Remains Liable under Accounts, Chattel Paper and Payment Intangibles
	  	 9

	 Section 2.04
	  	 Pledged Securities
	  	 9

		
	 ARTICLE III No Subrogation, Contribution or Reimbursement
	  	 10

		
	 ARTICLE IV Representations and Warranties
	  	 10

			
	 Section 4.01
	  	 Title; No Other Liens
	  	 10

	 Section 4.02
	  	 Perfected Second Priority Liens
	  	 10

	 Section 4.03
	  	 Legal Name, Organizational Status, Chief Executive Office
	  	 11

	 Section 4.04
	  	 Prior Names and Prior Chief Executive Offices
	  	 11

	 Section 4.05
	  	 Pledged Securities
	  	 11

	 Section 4.06
	  	 Goods
	  	 11

	 Section 4.07
	  	 Instruments and Chattel Paper
	  	 11

	 Section 4.08
	  	 Truth of Information; Accounts
	  	 11

	 Section 4.09
	  	 Governmental Obligors
	  	 12

	 Section 4.10
	  	 Patents and Trademarks
	  	 12

		
	 ARTICLE V Covenants
	  	 12

			
	 Section 5.01
	  	 Maintenance of Perfected Security Interest; Further Documentation.
	  	 12

	 Section 5.02
	  	 Maintenance of Records
	  	 13

	 Section 5.03
	  	 Right of Inspection
	  	 13

	 Section 5.04
	  	 Further Identification of Collateral
	  	 14

	 Section 5.05
	  	 Changes in Locations, Name, etc
	  	 14

	 Section 5.06
	  	 Compliance with Contractual Obligations
	  	 14

	 Section 5.07
	  	 Limitations on Dispositions of Collateral
	  	 14

	 Section 5.08
	  	 Pledged Securities.
	  	 14

	 Section 5.09
	  	 Limitations on Modifications, Waivers, Extensions of Agreements Giving Rise to Accounts
	  	 15

	 Section 5.10
	  	 Instruments and Tangible Chattel Paper
	  	 16

	 Section 5.11
	  	 Copyrights, Patents and Trademarks
	  	 16

	 Section 5.12
	  	 Commercial Tort Claims
	  	 16

	 Section 5.13
	  	 Limitation on Perfection of Security Interests.
	  	 17

		
	 ARTICLE VI Remedial Provisions
	  	 18

			
	 Section 6.01
	  	 Pledged Securities.
	  	 18

	 Section 6.02
	  	 Collections on Accounts, Etc
	  	 19

  
 i 

							
	 Section 6.03
	  	 Oil and Gas Interests
	  	 	19	  
	 Section 6.04
	  	 Proceeds
	  	 	19	  
	 Section 6.05
	  	 UCC and Other Remedies
	  	 	20	  
	 Section 6.06
	  	 Private Sales of Pledged Securities
	  	 	21	  
	 Section 6.07
	  	 Waiver; Deficiency
	  	 	22	  
	 Section 6.08
	  	 Non-Judicial Enforcement
	  	 	22	  
	 Section 6.09
	  	 Reasonable Notice
	  	 	22	  
		
	 ARTICLE VII The Collateral Agent
	  	 	 22
	  
			
	 Section 7.01
	  	 Collateral Agent’s Appointment as Attorney-in-Fact, Etc.
	  	 	22	  
	 Section 7.02
	  	 Duty of the Collateral Agent
	  	 	24	  
	 Section 7.03
	  	 Execution of Financing Statements
	  	 	24	  
	 Section 7.04
	  	 Hazardous Materials
	  	 	25	  
	 Section 7.05
	  	 Force Majeure
	  	 	25	  
	 Section 7.06
	  	 Consequential Damages
	  	 	25	  
		
	 ARTICLE VIII Subordination of Indebtedness
	  	 	 26
	  
			
	 Section 8.01
	  	 Subordination of All Guarantor Claims
	  	 	26	  
	 Section 8.02
	  	 Claims in Bankruptcy
	  	 	26	  
	 Section 8.03
	  	 Payments Held in Trust
	  	 	26	  
	 Section 8.04
	  	 Liens Subordinate
	  	 	26	  
	 Section 8.05
	  	 Notation of Records
	  	 	27	  
		
	 ARTICLE IX Miscellaneous
	  	 	 27
	  
			
	 Section 9.01
	  	 Notices
	  	 	27	  
	 Section 9.02
	  	 Payment of Expenses, Indemnities, Etc.
	  	 	28	  
	 Section 9.03
	  	 Amendments and Waivers
	  	 	28	  
	 Section 9.04
	  	 Possession of Collateral
	  	 	29	  
	 Section 9.05
	  	 Redelivery of Collateral
	  	 	29	  
	 Section 9.06
	  	 Successors and Assigns
	  	 	29	  
	 Section 9.07
	  	 Invalidity
	  	 	29	  
	 Section 9.08
	  	 Limitation by Law
	  	 	29	  
	 Section 9.09
	  	 Counterparts
	  	 	30	  
	 Section 9.10
	  	 Captions
	  	 	30	  
	 Section 9.11
	  	 No Oral Agreements
	  	 	30	  
	 Section 9.12
	  	 Governing Law; Submission to Jurisdiction.
	  	 	30	  
	 Section 9.13
	  	 Acknowledgments
	  	 	31	  
	 Section 9.14
	  	 Additional Grantor
	  	 	32	  
	 Section 9.15
	  	 Set-Off
	  	 	32	  
	 Section 9.16
	  	 Releases.
	  	 	33	  
	 Section 9.17
	  	 Reinstatement
	  	 	33	  
	 Section 9.18
	  	 Acceptance
	  	 	34	  
	 Section 9.19
	  	 Indenture; Intercreditor Agreement
	  	 	34	  

  
 ii 

 SCHEDULES: 
  

	 	1.	 Notice Address of Grantor 

  

	 	2.	 Description of Pledged Securities 

  

	 	3.	 Filings and Other Actions Required to Perfect Security Interests 

 

	 	4.	 Correct Legal Name, Location of Jurisdiction of Organization, Organizational Identification Number, Taxpayer Identification Number and Chief
Executive Office 

  

	 	5.	 Prior Names and Prior Chief Executive Office 

  

	 	6.	 Intellectual Property 

ANNEX: 
  

	 	1.	 Form of Assumption Agreement 

  
 iii

 SECURITY AGREEMENT 

This SECURITY AGREEMENT, dated as of November 23, 2010 (this “Agreement”), is made by Black
Elk Energy Offshore Operations, LLC, a Texas limited liability company (the “Issuer”), Black Elk Energy Finance Corp., a Texas corporation (the “Co-Issuer, and together with the Issuer, the
Issuers”), Black Elk Energy Land Operations, LLC, a Texas limited liability company (“BEELO”, and together with the Issuers, and any other entity that is an Affiliate of any of the foregoing that becomes a party
hereto, the “Grantors” and each individually a “Grantor”) in favor of The Bank of New York Mellon Trust Company, N.A., as trustee (in such capacity, together with its successors and assigns, the
“Trustee”) and as collateral agent (in such capacity, together with its successors and assigns, the “Collateral Agent”), for the benefit of itself and the Holders (as defined below). 

RECITALS 
 A. The Issuer, the Co-Issuer and BEELO, the Trustee and the Collateral Agent are parties to that certain Indenture, dated as of the date hereof (as amended, supplemented, amended and restated or otherwise
modified from time to time, the “Indenture”), pursuant to which the Issuer and the Co-Issuer have issued $150,000,000 of their 13.75% senior secured notes due 2015 (the “Initial Notes”) and may issue
an unlimited amount of additional notes (the “Additional Notes” and, together with the Initial Notes, the “Notes”). 

B. PPVA Black Elk (Cayman) Ltd., as agent (in such capacity, together with its successors and assigns, the
“First Lien Agent”), the Issuer, BEELO and the other parties party thereto have entered into that certain Amended and Restated Security Agreement, dated as of July 13, 2009 (as amended, supplemented, amended and restated
or otherwise modified from time to time), pursuant to which the Issuer, and BEELO have granted to the First Lien Agent, for the benefit of the First Lien Creditors (as defined below), a Lien on and security interest in the Collateral (as defined
below). 
 C. The Trustee, the Collateral Agent, the First Lien Agent, and the Issuers have entered into that
certain Intercreditor Agreement, dated as of the date hereof (as the same may be amended, supplemented, amended and restated or otherwise modified from time to time, the “Intercreditor Agreement”). 

D. Each Grantor is either the Issuer or a direct or indirect subsidiary of the Issuer and as such will derive substantial
direct and indirect benefits from the issuance of the Notes under the Indenture. 
 E. It is a condition
precedent to the agreement of the Trustee and the Collateral Agent to enter into the Indenture and the holders of the Notes (the “Holders”) to acquire the Notes that each Grantor grant to the Collateral Agent for the ratable
benefit of the Secured Parties (as defined below) a security interest in the Collateral (as defined below). 

NOW, THEREFORE, in consideration of the premises herein and to induce the Trustee and the Collateral Agent to enter into
the Indenture and the Holders to acquire the Notes, the Grantors hereby agree with the Collateral Agent as follows: 

 ARTICLE I 
 Definitions 
 Section 1.01 Definitions.

 (a) Terms defined above and elsewhere in this Agreement shall have their specified meaning. Unless otherwise
defined herein, terms defined in the Indenture and used herein shall have the meanings given to them in the Indenture. The following terms, which are defined in the UCC (as defined herein), are used herein as so defined: Accounts, Chattel Paper,
Commercial Tort Claims, Deposit Accounts, Documents, Electronic Chattel Paper, Equipment, Fixtures, General Intangibles, Goods, Instruments, Inventory, Investment Property, Letter-of-Credit Rights, Payment Intangibles, Proceeds, Supporting
Obligations, and Tangible Chattel Paper. 
 (b) The following terms shall have the following meanings:

 “Account Debtor” means any Person (other than the Grantors) obligated on an Account,
Chattel Paper, or General Intangible. 
 “Collateral” has the meaning assigned such term
in Section 2.01. 
 “Collateral Agreement” means this Agreement and each
security agreement, mortgage or other collateral agreement, and each deposit account control agreement, securities account control agreement or other document or instrument creating Liens in favor of the Collateral Agent or any Second Lien Creditor
to secure any of the Indebtedness, in each case as amended, supplemented, amended and restated or otherwise modified from time to time. 
 “Contracts” means all contracts, undertakings, or agreements (other than rights evidenced by Chattel Paper, Documents or Instruments) to which a Grantor now is, or hereafter will
be, bound, or a party, beneficiary or assignee, in any event, including all contracts, undertakings, or agreements in or under which a Grantor may now or hereafter have any right, title or interest, including any agreement relating to the terms of
payment or the terms of performance of any Receivable. 
 “Control Agent” means, at any
time prior to the First Lien Discharge Date, the First Lien Agent, and at any time on or following the First Lien Discharge Date, the Collateral Agent. 
 “Depository Accounts” has the meaning assigned to such term in Section 2.01. 
 “Excluded Collateral” means (i) any Capital Stock of any Foreign Subsidiary in excess of 66% of the Capital Stock of such Foreign Subsidiary or any property or assets of any
Foreign Subsidiary, (ii) any permit or license or any contractual obligation entered into by any Grantor (x) that prohibits or requires the consent of any Person other than such Grantor or any Affiliate of such Grantor as a condition to
the creation by such Grantor of a Lien on any right, title or interest in such permit, license or contractual agreement or any Capital Stock or equivalent related thereto or (y) to the extent that any requirement of law applicable thereto
prohibits the creation of a Lien thereon, but only, with respect to the prohibition in (x) and (y), to the extent, and for so long as, such prohibition is not terminated or rendered unenforceable or otherwise

  

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deemed ineffective by the UCC or any other requirement of law, (iii) fixed or capital assets owned by any Grantor that is subject to a purchase money Lien or a capital lease if the
contractual obligation pursuant to which such Lien is granted (or the document providing for such capital lease) prohibits or requires the consent of any Person other than such Grantor or any of its Affiliates as a condition to the creation of any
other Lien on such fixed or capital asset, (iv) any Capital Stock of any Subsidiary to the extent (and only to the extent) that in the reasonable judgment of the Issuer, if such Capital Stock were not excluded from the Collateral then Rule 3-16
or Rule 3-10 of Regulation S-X under the Securities Act would require the filing of separate financial statements of such Subsidiary with the SEC (or any other governmental agency) in connection with a registration of the Notes under the Securities
Act, (v) Collateral that has been released in accordance with the Intercreditor Agreement and the Second Lien Documents, (vi) the W&T Escrow Accounts and (vii) other property or assets owned by any Grantor that is not subject to
Liens securing any First Lien Obligations. 
 “First Lien Creditors” has the meaning set
forth in the Intercreditor Agreement. 
 “First Lien Discharge Date” has the meaning set
forth in the Intercreditor Agreement. 
 “First Lien Documents” has the meaning set
forth in the Intercreditor Agreement. 
 “Guarantors” means BEELO, and any Person in the
future that guarantees the Indebtedness. 
 “Hydrocarbon Interests” means all rights,
titles, interests and estates now or hereafter acquired directly or indirectly through ownership in other entities or otherwise in and to oil and gas leases, oil, gas and mineral leases, or other liquid or gaseous Hydrocarbon leases, mineral fee
interests, overriding royalty and royalty interests, net profit interests and production payment interests, including any reserved or residual interests of whatever nature. 

“Hydrocarbons” means oil, gas, casing head gas, drip gasoline, natural gasoline, condensate,
distillate, liquid hydrocarbons, gaseous hydrocarbons and all products refined or separated therefrom. 

“Indebtedness” shall mean all debts (including, without limitation, the debts
evidenced by the Indenture or the Notes, and all debt and obligations arising under or incurred pursuant to any Second Lien Document or any other documents executed or delivered in connection with the Indenture or the Notes, liabilities,
obligations, undertakings, covenants and duties owing by the Grantors to the Collateral Agent or any Secured Party of any kind or nature, present or future, including, but not limited to, any interest or other amounts accruing thereon, and any costs
and expenses of any person or entity payable by any Grantor, matured or unmatured, direct or indirect, primary or secondary, related or unrelated or due or to become due, and any extensions, modifications, substitutions, increases and renewals
thereof, and substitutions therefor; the payment of all amounts advanced by the Collateral Agent or any Secured Party to preserve, protect, defend, and enforce its rights hereunder and in the following property in accordance with the terms of this
Agreement; and the payment of all expenses incurred by the Collateral Agent or any Secured Party in connection therewith, and any indemnification obligations payable by any Grantor arising or payable after maturity, or after the filing of any
petition in bankruptcy, or the 

  

- 3 - 

 
commencement of any insolvency, reorganization or like proceeding relating to any Grantor, whether or not a claim for post-filing or post-petition interest or other amounts is allowable or
allowed in such proceeding, regardless of how such indebtedness or liabilities arise or by what agreement or instrument they may be evidenced or whether evidenced by any agreement or instrument, of any Grantor to the Collateral Agent or any Secured
Party. 
 “Lien” means any interest in Property securing an obligation owed to, or a
claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to the lien or security
interest arising from a mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes. The term “Lien” shall include easements, restrictions, servitudes,
permits, conditions, covenants, exceptions or reservations. For the purposes of this Agreement, each Grantor shall be deemed to be the owner of any Property which it has acquired or holds subject to a conditional sale agreement, or leases under a
financing lease or other arrangement pursuant to which title to the Property has been retained by or vested in some other Person in a transaction intended to create a financing. 

“Oil and Gas Property” means (a) Hydrocarbon Interests; (b) the Properties now or
hereafter pooled or unitized with Hydrocarbon Interests; (c) all presently existing or future unitization, pooling agreements and declarations of pooled units and the units created thereby (including without limitation all units created under
orders, regulations and rules of any Governmental Authority) which may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements, including production sharing contracts and agreements,
which relate to any of the Hydrocarbon Interests or the production, sale, purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests; (e) all Hydrocarbons in and under and which may be produced and saved
or attributable to the Hydrocarbon Interests, including all oil in tanks, and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests; (f) all tenements, hereditaments,
appurtenances and Properties in any manner appertaining, belonging, affixed or incidental to the Hydrocarbon Interests and (g) all Properties, rights, titles, interests and estates described or referred to above, including any and all Property,
real or personal, now owned or hereinafter acquired and situated upon, used, held for use or useful in connection with the operating, working or development of any of such Hydrocarbon Interests or Property (excluding drilling rigs, automotive
equipment, rental equipment or other personal Property which may be on such premises for the purpose of drilling a well or for other similar temporary uses) and including any and all oil wells, gas wells, injection wells, disposal wells or other
wells, buildings, structures, fuel separators, liquid extraction plants, plant compressors, pumps, pumping units, field gathering systems, tanks and tank batteries, fixtures, valves, fittings, machinery and parts, engines, boilers, meters,
apparatus, equipment, appliances, tools, implements, cables, wires, towers, casing, tubing and rods, surface leases, rights-of-way, easements and servitudes together with all additions, substitutions, replacements, accessions and attachments to any
and all of the foregoing. 
 “Patents” means all of the following now owned or hereafter
acquired by any Grantor: (a) all letters patent of the United States or any other country, all registrations and recordings thereof, and all applications for letters patent of the United States or any other country, including

  

- 4 - 

 
registrations, recordings and pending applications in the United States Patent and Trademark Office or in any other similar office or agency of the United States, any State thereof, or any other
country or any political subdivision thereof, including, without limitation, any of the foregoing referred to in Schedule 6 and all divisions, continuations and continuations-in-part thereof, and (b) all reissues, continuations,
divisions, continuations-in-part, renewals or extensions thereof, and the inventions disclosed or claimed therein, including the right to make, use and/or sell the inventions disclosed or claimed therein. 

“Patent License” means all agreements, whether written or oral, providing for the grant by or to
a Grantor of any right to manufacture, use or sell any invention covered in whole or in part by a Patent, including, without limitation, any of the foregoing referred to in Schedule 6. 

“Person” means any natural person, corporation, limited liability company, trust, joint venture,
association, company, partnership, Governmental Authority or other entity. 
 “Pledged
Securities” means: (i) the equity interests (including any interests in a corporation, business trust, joint stock company, partnership, limited liability company or similar entity) described or referred to in Schedule 2;
and (ii) (a) the certificates or instruments, if any, representing such equity interests, (b) all dividends (cash, stock or otherwise), cash, instruments, rights to subscribe, purchase or sell and all other rights and property from
time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such equity interests, (c) all financial assets, (d) all replacements, additions to and substitutions for any of the property
referred to in this definition, including, without limitation, claims against third parties, (e) the proceeds, interest, profits and other income of or on any of the property referred to in this definition and (f) all books and records
relating to any of the property referred to in this definition. 
 “Pledged Security
Issuers” means, collectively, each issuer of a Pledged Security. 

“Property” means any interest in any kind of property or asset, whether real, personal or mixed,
or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights. 

“Receivables” means all of a Grantor’s right, title and interest in, whether choate or
inchoate, present and future accounts, accounts receivable, production payments, royalty payments, overriding royalty payments, profits, proceeds from the sale of Collateral, operating revenues, accounts from governmental authorities, instruments,
general intangibles and rights to payment under all Contracts, income tax refunds, and other rights to the payment of money, together with all of the right, title and interest of a Grantor in and to (a) all security pledged, assigned,
hypothecated or granted to or held by a Grantor to secure the foregoing, (b) all of any of such Grantor’s right, title and interest in and to any goods or services, the sale of which gave rise thereto, (c) all guarantees, endorsements
and indemnifications on, or of, any of the foregoing, (d) all powers of attorney granted to such Grantor for the execution of any evidence of indebtedness or security or other writing in connection therewith, (e) all credit information,
reports and memoranda relating thereto, and (f) all other writings related in any way to the foregoing. 

  

- 5 - 

 “Records” means all of a Grantor’s present and
future books, accounting records, files, computer files, computer programs, correspondence, credit files, records, ledger cards, invoices, and other records primarily related to any other items of Collateral, including, without limitation, all
similar information stored on a magnetic medium or other similar storage device and other papers and documents in the possession or under the control of a Grantor or any computer bureau from time to time acting for a Grantor. 

“Second Lien Documents” means the Indenture, the Notes, the Purchase Agreement, the Registration
Rights Agreement, this Agreement and each other Collateral Agreement, and all other documents and instruments at any time delivered by the Issuer or Co-Issuer or any other Grantor under, by reason of which, or pursuant to which any or all of the
Indebtedness are evidenced, governed, secured or otherwise dealt with, and all other agreements, certificates and other documents, instruments and writings heretofore or hereafter delivered in connection herewith or therewith, in each case as
amended, supplemented, amended and restated or otherwise modified from time to time. 
 “Secured
Parties” means the Collateral Agent, the Trustee, the Holders and each other Person to whom any Indebtedness is owed. 
 “Securities Act” means the Securities Act of 1933, as amended from time to time. 
 “Trademarks” means all of the following now owned or hereafter acquired by a Grantor: (i) all trademarks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, service marks, logos and other source or business identifiers, and the goodwill associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all
applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof, or any other country or any political subdivision thereof, or otherwise, and
(ii) all extensions or renewals thereof, including, without limitation, any of the foregoing referred to in Schedule 6. 
 “Trademark License” means any agreement, whether written or oral, providing for the grant by or to a Grantor of any right to use any Trademark, including, without limitation, any
of the foregoing referred to in Schedule 6. 
 “UCC” means the Uniform Commercial
Code, as it may be amended, from time to time in effect in the State of New York; provided, that if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection of any Lien on any Collateral or on any
of the Pledged Securities or the remedies available to the Secured Parties are governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “UCC” means the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such perfection or the effect of perfection or non-perfection or available remedies. References to sections of the UCC shall be construed to refer to any successor sections of the
Uniform Commercial Code. 
 “W&T Escrow Accounts” means the escrow accounts
established pursuant to the terms of that certain Agreement for Purchase and Sale dated effective August 1, 2009, by and between 

  

- 6 - 

 
W&T Offshore, Inc., a Texas corporation, as “Seller” and the Issuer as “Buyer”, which such escrow accounts are subject to a Lien in favor of W&T Offshore, Inc. in
accordance with the terms of such Agreement for Purchase and Sale. 
 Section 1.02 Other Definitional
Provisions; References. The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. The gender of all words shall include the masculine, feminine, and neuter, as appropriate. The
words “herein,” “hereof,” “hereunder” and other words of similar import when used in this Agreement refer to this Agreement as a whole, and not to any particular article, section or subsection. Any reference herein to a
Section shall be deemed to refer to the applicable Section of this Agreement unless otherwise stated herein. Any reference herein to an Exhibit, Schedule or Annex shall be deemed to refer to the applicable Exhibit, Schedule or Annex attached hereto
unless otherwise stated herein. Where the context requires, terms relating to the Collateral or any part thereof, when used in relation to a Grantor, shall refer to such Grantor’s Collateral. 

ARTICLE II 

Grant of Security Interest 
 Section 2.01 Grant of Security Interest. Each Grantor hereby pledges, assigns and transfers to the Collateral Agent, for the ratable benefit of the Secured Parties, and grants the Collateral
Agent, for the ratable benefit of the Secured Parties, a security interest in all of the following property now owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any time in the future may acquire any
right, title or interest and whether now existing or hereafter coming into existence (collectively, the “Collateral”), as collateral security for the prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of the Indebtedness: 
 (1) all Accounts, Receivables,
Inventory, Contracts, and Equity Interests in any other Grantor or any other Person; 
 (2) all
Chattel Paper (whether Tangible Chattel Paper or Electronic Chattel Paper); 
 (3) all Commercial
Tort Claims; 
 (4) all Copyrights; 

(5) all Copyright Licenses; 

(6) all Deposit Accounts including, without limitation, the LC Account, established and maintained in the
name of such Grantor or any other Person with any financial institution or any other Person (collectively, all such accounts being referred to herein as the “Depository Accounts”), together with all cash or other sums,
securities and other property at any time thereafter on deposit or situated therein, credited thereto or payable thereon and all instruments, documents and other writings evidencing the Depository Accounts; 

(7) all Documents; 

  

- 7 - 

 (8) all General Intangibles (including, without limitation,
rights in and under any Payment Intangibles); 
 (9) all Goods (including, without limitation,
all Inventory, all Fixtures and all Equipment, including all machines, tooling, hardware, designs, software, or other licensing agreements, and any accessions thereto); 

(10) all Instruments (including all promissory notes); 

(11) all Investment Property (including securities); 

(12) all letters of credit and Letter-of-Credit Rights (whether or not the letter of credit is evidenced
by a writing); 
 (13) all Patents; 

(14) all Patent Licenses; 

(15) all Pledged Securities; 

(16) all Records; 

(17) all Trademarks; 

(18) all Trademark Licenses; 

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

(20) all personal and fixture property of every kind and nature; 

(21) all contract rights or rights to the payment of money and insurance claims and proceeds; 

(22) to the extent not included above, all oil and gas leases, estates, rights to extract Hydrocarbons,
easements, rights-of-way, operating agreements, unitization agreements, pooling agreements, Hydrocarbon sales agreements, oil and gas revenues, rigs, platforms, pipelines, tangible and intangible property, whether real, personal or mixed, associated
with oil and gas leases, operating agreements, production agreements, farmout agreements, farmin agreements, equipment leases, geological and geophysical data or that property and Collateral pledged to such Grantor under those other Collateral
Agreements; and 
 (23) to the extent not otherwise included, all Proceeds and products of any
and all of the foregoing and all collateral security, guarantees and other Supporting Obligations given with respect to any of the foregoing. 
 Notwithstanding anything herein to the contrary, the Collateral shall not include the Excluded Collateral; provided that the Collateral pledged hereunder shall include any and all proceeds of the
Excluded Collateral set forth in item (ii) of the definition thereof. 

  

- 8 - 

 Section 2.02 Transfer of Pledged Securities. In accordance with
Section 9.19 of this Agreement and the terms of the Intercreditor Agreement, all certificates and instruments representing or evidencing the Pledged Securities shall be delivered to and held pursuant hereto by the Control Agent (for the ratable
benefit of the Secured Parties), or a Person designated by the Control Agent and, in the case of an instrument or certificate in registered form, shall be duly indorsed in blank by an effective endorsement (whether on the certificate or instrument
or on a separate writing), and accompanied by any required transfer tax stamps to effect the pledge of the Pledged Securities to the Control Agent (for the ratable benefit of the Secured Parties). Notwithstanding the preceding sentence, all Pledged
Securities must be delivered or transferred in such manner, and each Grantor shall take all such further action as necessary or as may be requested by the Collateral Agent, as to permit the Control Agent, on behalf of the Secured Parties, to be a
“protected purchaser” to the extent of its security interest as provided in Section 8-303 of the UCC (if the Collateral Agent otherwise qualifies as a protected purchaser). 

Section 2.03 Grantor Remains Liable under Accounts, Chattel Paper and Payment Intangibles. Anything herein to
the contrary notwithstanding, the Grantors shall remain liable under each of the Accounts, Chattel Paper and Payment Intangibles to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in
accordance with the terms of any agreement giving rise to each such Account, Chattel Paper or Payment Intangible. The Collateral Agent and Secured Parties shall not have any obligation or liability under any Account, Chattel Paper or Payment
Intangible (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by the Collateral Agent of any payment relating to such Account, Chattel Paper or Payment Intangible pursuant hereto, and the Collateral
Agent shall not be obligated in any manner to perform any of the obligations of a Grantor under or pursuant to any Account, Chattel Paper or Payment Intangible (or any agreement giving rise thereto), to make any payment, to make any inquiry as to
the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party under any Account, Chattel Paper or Payment Intangible (or any agreement giving rise thereto), to present or file any claim, to take
any action to enforce any performance or to collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times. 

Section 2.04 Pledged Securities. The granting of the foregoing security interest does not make the Collateral
Agent, or the Secured Parties, a successor to the Grantors as a partner or member in any Pledged Security Issuer that is a partnership, limited partnership or limited liability company, as applicable, and the Collateral Agent, or the Secured
Parties, and any of their respective successors or assigns hereunder shall not be deemed to have become a partner or member in any Pledged Security Issuer, as applicable, by accepting this Agreement or exercising any right granted herein unless and
until such time, if any, when any such Person expressly becomes a partner or member in any Pledged Security Issuer, as applicable, and complies with any applicable transfer provisions set forth in the charter or organizational documents relating to
an applicable Pledged Security after a foreclosure thereon. 

  

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 ARTICLE III 
 No Subrogation, Contribution or Reimbursement 

Notwithstanding any payment made by the Grantors hereunder or any set-off or application of funds of the Grantors by the
Collateral Agent, on behalf of the Secured Parties, the Grantors shall not be entitled to be subrogated to any of the rights of the Collateral Agent or Secured Parties against the Grantors or any collateral security or guarantee or right of offset
held by the Collateral Agent, on behalf of the Secured Parties, for the payment of the Indebtedness and each Grantor hereby expressly waives, releases, and agrees not to exercise any all rights of subrogation, reimbursement, indemnity and
contribution. Each Grantor further agrees that to the extent that such waiver and release set forth herein is found by a court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation, reimbursement, indemnity and
contribution such Grantor may have against any Collateral or security or guarantee or right of offset held by the Collateral Agent on behalf of the Secured Parties shall be junior and subordinate to any rights the Collateral Agent, on behalf of the
Secured Parties, may have against such Grantor and to all right, title and interest the Secured Parties may have in any Collateral or security or guarantee or right of offset. The Collateral Agent, for the ratable benefit of the Secured Parties, may
use, sell or dispose of any item of Collateral or security as it sees fit without regard to any subrogation rights the Grantors may have, and upon any disposition or sale, any rights of subrogation the Grantors may have shall terminate. 

ARTICLE IV 

Representations and Warranties 
 To induce the Trustee and the Collateral Agent to enter into the Indenture and the Holders to acquire the Notes, the Grantors hereby represent and warrant, jointly and severally, to Collateral Agent and
the Secured Parties that: 
 Section 4.01 Title; No Other Liens. Each Grantor is the legal and
beneficial owner of its respective items of the Collateral free and clear of any and all Liens except for Permitted Liens. No financing statement or other public notice with respect to all or any part of the Collateral is on file or of record in any
public office, except such as have been filed in favor of the Collateral Agent pursuant to this Agreement and the other Second Lien Documents, or as are filed to secure the other Permitted Liens. 

Section 4.02 Perfected Second Priority Liens. The security interests granted to Collateral Agent, on behalf
of and for the benefit of the Secured Parties, pursuant to this Agreement (a) upon completion of the filings and other actions specified on Schedule 3 will constitute valid perfected first priority security interests in that portion of
the Collateral, except for (x) the Liens in favor of the First Lien Creditors and (y) the other Permitted Liens which, in the case of this clause (y), have priority over the Liens on the Collateral by contract or operation of law, in which
a security interest may be perfected by the filing of a financing statement in favor of the Collateral Agent under the UCC as collateral security for each Grantor’s obligations, enforceable in accordance with the terms hereof against all
creditors of such Grantor and any Persons purporting to purchase such Collateral from any Grantor and (b) are prior to all other Liens on the Collateral in existence on the date hereof except for (x) the Liens in favor of the First Lien
Creditors and (y) the other Permitted Liens which, in the case of this clause (y), have priority over the Liens on the Collateral by contract or operation of law. 

  

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 Section 4.03 Legal Name, Organizational Status, Chief Executive
Office. On the date hereof, the correct legal name of each Grantor, each Grantor’s jurisdiction of organization, organizational number, taxpayer identification number and the location of each Grantor’s chief executive office or sole
place of business are specified on Schedule 4. 
 Section 4.04 Prior Names and Prior Chief
Executive Offices. Schedule 5 correctly sets forth (a) all names and trade names that each Grantor has used in the last five (5) years and (b) the chief executive office of each Grantor over the last five (5) years (if
different from that which is set forth in on Schedule 4). 
 Section 4.05 Pledged Securities.
The shares (or such other interests) of Pledged Securities pledged by each Grantor hereunder constitute all the issued and outstanding shares (or such other interests) of all classes of the capital stock or other equity interests of each Pledged
Security Issuer owned by each Grantor. All the shares (or such other interests) of the Pledged Securities have been duly and validly issued and are fully paid and nonassessable, except to the extent that such shares or other interests are subject to
future capital contribution requirements and to the extent that such nonassessability may be affected by applicable law. Each Grantor is the record and beneficial owner of, and has good title to, the Pledged Securities pledged by it hereunder, free
of any and all Liens except (x) the Liens in favor of the First Lien Creditors and (y) other Permitted Liens created by operation of law, or options in favor of, or claims of, any other Person. 

Section 4.06 Goods. No portion of the Collateral constituting Goods is in the possession of a bailee that has
issued a negotiable or non-negotiable document covering such Collateral. 
 Section 4.07 Instruments and
Chattel Paper. To the extent required by Section 5.10, and subject to Section 9.19 of this Agreement and the terms of the Intercreditor Agreement, each Grantor has delivered to the Control Agent (for the ratable benefit of the
Secured Parties), all Collateral constituting Instruments and Chattel Paper. No Collateral constituting Chattel Paper or Instruments contains any statement therein to the effect that such Collateral has been assigned to an identified party other
than the First Lien Agent and the Collateral Agent (for the ratable benefit of the Secured Parties), and the grant of a security interest in such Collateral in favor of and for the benefit of the Collateral Agent for the ratable benefit of the
Secured Parties, hereunder does not violate the rights of any other Person as a secured party. 

Section 4.08 Truth of Information; Accounts. All information with respect to the Collateral set forth in any
schedule, certificate or other writing at any time heretofore or hereafter furnished by a Grantor to the Collateral Agent, and all other written information heretofore or hereafter furnished by a Grantor to the Collateral Agent is and will be true
and correct in all material respects as of the date furnished. The amount represented by a Grantor to the Collateral Agent from time to time as owing by each Account Debtor or by all Account Debtors in respect of the Accounts, Chattel Paper and
Payment Intangibles will at such time be the correct amount actually owing by such Account Debtor or Account Debtors thereunder. The place where each Grantor keeps records concerning the Accounts, Chattel Paper and Payment Intangibles is its chief
executive office. 

  

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 Section 4.09 Governmental Obligors. None of the Account Debtors
on a Grantor’s Accounts, Chattel Paper or Payment Intangibles in an aggregate amount in excess of $100,000 is a Governmental Authority subject to the Federal Assignment of Claims Act or like federal or state statute or rule. 

Section 4.10 Patents and Trademarks. Except as set forth in Schedule 6, as of the date hereof,
Grantors do not own any Patents, Patent Licenses, registered Trademarks and Trademark Licenses registered with federal or state authorities. 
 ARTICLE V 
 Covenants 

The Grantors covenant and agree with the Collateral Agent and the Secured Parties that, from and after the date of this
Agreement until the Indebtedness shall have been paid in full: 
 Section 5.01 Maintenance of Perfected
Security Interest; Further Documentation. 
 (a) The Grantors shall maintain the security interest created
by this Agreement as a perfected security interest having at least the priority described in Section 4.02 and shall defend such security interest against the claims and demands of all Persons whomsoever except for the Permitted Liens. To
the extent the Collateral is only perfected by “control” (as such term is used in the UCC), control by the Control Agent shall be deemed to constitute control by the Collateral Agent for purposes of the provisions of this Agreement
relating to such perfection. All actions required to be taken pursuant to this Section 5.01 that have not been taken as of the date hereof shall be taken by the time required by Section 4.19 of the Indenture. 

(b) At any time and from time to time, at the joint and several expense of the Grantors, the Grantors will promptly and
duly give, execute, deliver, indorse, file or record any and all financing statements, continuation statements, amendments, notices (including, without limitation, notifications to financial institutions and any other Person), contracts, agreements,
assignments, certificates, stock powers or other instruments, obtain any and all governmental approvals and consents and take or cause to be taken any and all steps or acts that may be necessary under the UCC or other applicable law or as the
Collateral Agent may reasonably request to create, perfect, establish the priority of, or to preserve the validity, perfection or priority of, the Liens granted by this Agreement or to enable the Collateral Agent, on behalf of the Secured Parties,
to enforce its rights, remedies, powers and privileges under this Agreement with respect to such Liens or to otherwise obtain or preserve the full benefits of this Agreement and the rights, powers and privileges herein granted. 

(c) Without limiting the obligations of the Grantors under Section 5.01(b), subject to the terms of the
Intercreditor Agreement: (i) the Grantors shall take or cause to be taken all actions (other than any actions required to be taken by the Collateral Agent, on behalf of the Secured Parties) to cause (A) the Control Agent for the ratable
benefit of the Secured Parties to have “control” (within the meaning of Sections 9-104, 9-105, 9-106, and 9-107 of the 

  

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UCC) over any Collateral constituting Deposit Accounts, Electronic Chattel Paper, Investment Property (including the Pledged Securities), or Letter-of-Credit Rights, including, without
limitation, executing and delivering any agreements, in form and substance satisfactory to the Collateral Agent, with securities intermediaries, issuers or other Persons in order to establish “control”, and the Grantors shall promptly
notify the Collateral Agent of any Grantor’s acquisition of any such Collateral; provided that, (1) any such agreement shall provide that the securities intermediary (or any Person acting in a similar capacity) shall comply with
instructions originated by the Control Agent after the occurrence of an Event of Default with respect to the disposition of funds without further consent of any Grantor and (2) so long as no Event of Default has occurred that is continuing, the
Collateral Agent, on behalf of the Secured Parties, will not exercise its rights and remedies under any such agreement, and (B) to cause the Control Agent for the ratable benefit of the Secured Parties be a “protected purchaser” (as
defined in Section 8-303 of the UCC); (ii) with respect to Collateral other than certificated securities and goods covered by a document in the possession of a Person other than such Grantor, the First Lien Agent or the Collateral Agent,
on behalf of the Secured Parties, the Grantors shall obtain written acknowledgment that such Person holds possession for the Collateral Agent’s benefit; and (iii) with respect to any Collateral constituting Goods with an aggregate value in
excess of $25,000 that are in the possession of a bailee, the Grantors shall provide prompt notice to the Collateral Agent of any such Collateral then in the possession of such bailee, and the Grantors shall take or cause to be taken all actions
(other than any actions required to be taken by the Secured Parties) necessary or requested by the Collateral Agent to cause the Secured Parties to have a perfected security interest in such Collateral under applicable law. 

(d) This Section 5.01 and the obligations imposed on the Grantors by this Section 5.01 shall be
interpreted as broadly as possible in favor of the Collateral Agent, for the ratable benefit of the Secured Parties, in order to effectuate the purpose and intent of this Agreement. 

Section 5.02 Maintenance of Records. Each Grantor will keep and maintain at its own cost and expense
satisfactory and complete records of the Collateral, including, without limitation, a record of all payments received and all credits granted with respect to the Accounts. For the Collateral Agent’s security as provided in
Section 2.01 above, the Collateral Agent, for the ratable benefit of the Secured Parties, shall have a security interest in all of such Grantor’s books and records pertaining to the Collateral, and each Grantor shall give access to
any such books and records to the Collateral Agent or to its representatives during normal business hours at the request of the Collateral Agent, upon reasonable prior notice (so long as no Event of Default has occurred and is continuing, whereupon
the Collateral Agent need not provide any notice), and shall provide such clerical and other assistance as may be reasonably requested with regard thereto. 
 Section 5.03 Right of Inspection. The Collateral Agent and its representatives shall at all times upon reasonable prior request (so long as no Event of Default has occurred and is continuing,
whereupon the Collateral Agent need not provide any notice) have full and free access during normal business hours to all the books, correspondence and records of each Grantor, and the Collateral Agent and its representatives may examine the same,
take extracts therefrom and make photocopies thereof and shall at all reasonable times also have the right to enter into and upon any premises where any of the Collateral (including, without limitation,

  

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Inventory or Equipment) is located for the purpose of inspecting the same, observing its use or otherwise protecting its interests therein, and the Grantors agree to render to the Secured Parties
and its representatives, at the Grantors’ joint and several cost and expense, such clerical and other assistance as may be reasonably requested with regard to any of the foregoing. 

Section 5.04 Further Identification of Collateral. Each Grantor will furnish to the Collateral Agent from
time to time, at the Grantors’ joint and several cost and expense, statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as the Collateral Agent may reasonably
request, all in reasonable detail. 
 Section 5.05 Changes in Locations, Name, etc. Each Grantor
recognizes that financing statements pertaining to the Collateral have been or may be filed where such Grantor maintains any Collateral or is organized. Without limitation of any other covenant herein, no Grantor will cause or permit any change to
be made to (i) its name, identity or corporate structure or (ii) Grantor’s jurisdiction of organization or (iii) the location of any Collateral, in each case, where such change would cause the perfection of the Collateral
Agent’s security interest, for the ratable benefit of the Secured Parties, to lapse, unless such Grantor shall have first (A) notified the Collateral Agent of such change at least thirty (30) days prior to the effective date of such
change, and (B) taken all action necessary for the purpose of maintaining the perfection and priority of the Collateral Agent’s security interests under this Agreement. In any notice furnished pursuant to this Section 5.05,
each Grantor will expressly state in a conspicuous manner that the notice is required by this Agreement and contains facts that may require additional filings of financing statements or amendments to previously filed financing statements or other
notices for the purposes of continuing perfection and priority of the Collateral Agent’s security interest for the ratable benefit of the Secured Parties in the Collateral. 

Section 5.06 Compliance with Contractual Obligations. Each Grantor will perform and comply in all material
respects with all its contractual obligations relating to the Collateral (including, without limitation, with respect to the goods or services, the sale or lease or rendition of which gave rise or will give rise to each Account). 

Section 5.07 Limitations on Dispositions of Collateral. The Collateral Agent does not authorize, and Grantors
agree not to sell, transfer, lease or otherwise dispose of any of the Collateral, or attempt, offer or contract to do so except in compliance with Section 4.10 of the Indenture. 

Section 5.08 Pledged Securities. 

(a) If any Grantor shall become entitled to receive or shall receive any stock certificate or other instrument
(including, without limitation, any certificate or instrument representing a dividend or a distribution in connection with any reclassification, increase or reduction of capital or any certificate or instrument issued in connection with any
reorganization), option or rights in respect of the capital stock or other equity interests of any Pledged Security Issuer, whether in addition to, in substitution of, as a conversion of, or in exchange for, any shares (or such other interests) of
the Pledged Securities, or otherwise in respect thereof, such Grantor shall accept the same as the agent of the Collateral Agent, on behalf 

  

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of the Secured Parties, hold the same in trust for the Collateral Agent, on behalf of the Secured Parties, and, subject to the terms of the Intercreditor Agreement, deliver the same forthwith to
the Control Agent in the exact form received, duly indorsed by such Grantor to the Control Agent, for the ratable benefit of the Secured Parties, if required, together with an undated stock power or other equivalent instrument of transfer acceptable
to the Collateral Agent covering such certificate or instrument duly executed in blank by such Grantor and with, if the Collateral Agent so requests, signature guaranteed, to be held by the Control Agent, for the ratable benefit of the Secured
Parties, subject to the terms hereof, as additional collateral security for the Indebtedness. 
 (b) Unless
otherwise permitted by the Indenture, no Grantor will (i) create, incur or permit to exist any Lien or options in favor of, or any claim of any Person with respect to, any of the Pledged Securities or Proceeds thereof, or any interest therein,
except for (x) the security interests created by this Agreement, (y) the Liens in favor of the First Lien Creditors and (z) the other Permitted Liens created by operation of law, or (ii) except for those undertakings or
agreements contained in the charter or other organizational documents of the applicable Pledged Security Issuer or the First Lien Documents, enter into any agreement or undertaking restricting the right or ability of any Grantor or the Collateral
Agent to sell, assign or transfer any of the Pledged Securities or Proceeds thereof. 
 (c) If a Grantor is a
Pledged Security Issuer, then such Grantor, as Pledged Security Issuer, agrees that (i) it will be bound by the terms of this Agreement relating to the Pledged Securities issued by it and will comply with such terms insofar as such terms are
applicable to it, (ii) it will notify the Collateral Agent promptly in writing of the occurrence of any of the events described in Section 5.08(a) with respect to the Pledged Securities issued by it and (iii) the terms of
Section 6.01(c) and Section 6.05 shall apply to it, mutatis mutandis, with respect to all actions that may be required of it pursuant to Section 6.01(c) or Section 6.05 with respect to the
Pledged Securities issued by it. 
 (d) Each Grantor shall furnish to the Control Agent such stock powers and
other equivalent instruments of transfer as to assure the transferability of and the perfection of the security interest in the Pledged Securities, subject to the terms of the Intercreditor Agreement. 

(e) The Pledged Securities will at all times constitute not less than 100% of the capital stock or other equity interests
of the Pledged Security Issuer thereof owned by such Grantor. Except as permitted by the Indenture, Grantor will not permit any Pledged Security Issuer of any of the Pledged Securities (other than itself) to issue any new shares (or other interests)
of any class of capital stock or other equity interests of such Pledged Security Issuer unless immediately upon issuance the same are pledged to the Collateral Agent and, if applicable, delivered to the Control Agent pursuant to the terms hereof to
the extent necessary to give Collateral Agent, for the ratable benefit of the Secured Parties, a second priority security interest therein. 
 Section 5.09 Limitations on Modifications, Waivers, Extensions of Agreements Giving Rise to Accounts. Other than in the ordinary course of business and provided an Event of Default has not
occurred and is not continuing, no Grantor will, without the Collateral Agent’s consent (not to be unreasonably withheld or delayed), (a) amend, modify, terminate or waive any 

  

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provision of any Chattel Paper, Instrument or any agreement giving rise to an Account or Payment Intangible in any manner which could reasonably be expected to materially adversely affect the
value of such Chattel Paper, Instrument, Payment Intangible or Account as Collateral, or (b) fail to exercise promptly and diligently each and every material right which it may have under any Chattel Paper, Instrument and each agreement giving
rise to an Account or Payment Intangible (other than any right of termination). During the continuance of an Event of Default, Grantor shall deliver to the Collateral Agent a copy of each material demand, notice or document received by it relating
in any way to any Chattel Paper, Instrument or any agreement giving rise to an Account or Payment Intangible. 

Section 5.10 Instruments and Tangible Chattel Paper. If any amount payable under or in connection with any of
the Collateral shall be or become evidenced by any Instrument or Tangible Chattel Paper, such Instrument or Tangible Chattel Paper shall, subject to the terms of the Intercreditor Agreement, be promptly delivered to the Control Agent (for the
ratable benefit of the Secured Parties), duly endorsed in a manner satisfactory to the Collateral Agent as Collateral pursuant to this Agreement; provided that, so long as no Event of Default has occurred that is continuing, Grantor
shall only be required to deliver Instruments and Tangible Chattel Paper to the Control Agent to the extent that the aggregate value of the unpaid principal balance thereof exceeds the amount of $25,000. 

Section 5.11 Copyrights, Patents and Trademarks. Whenever any Grantor, either by itself or through any agent,
employee, licensee or designee, shall file an application for the registration of any Copyright, Patent or Trademark with the United States Copyright Office, the United States Patent and Trademark Office or any similar office or agency in any other
country or any political subdivision thereof, such Grantor shall report such filing to the Collateral Agent within five (5) Business Days after the last day of the fiscal month in which such filing occurs. Such Grantor shall execute and deliver
any and all agreements, instruments, documents, and papers as necessary to evidence the Collateral Agent’s security interest, for the ratable benefit of the Secured Parties, in any Copyright, Patent or Trademark and the goodwill and General
Intangibles of such Grantor relating thereto or represented thereby, and such Grantor hereby appoints the Collateral Agent its attorney-in-fact to execute and file all such writings for the foregoing purposes, all acts of such attorney being hereby
ratified and confirmed; such power being coupled with an interest is irrevocable until the Indebtedness is paid in full and the Indenture is terminated; provided, however, in no event shall the Collateral Agent be obligated to make such filings.

 Section 5.12 Commercial Tort Claims. If any Grantor shall at any time hold or acquire a
Commercial Tort Claim that satisfies the requirements of the following sentence, such Grantor shall, within thirty (30) days after such Commercial Tort Claim satisfies such requirements, notify the Collateral Agent in a writing signed by such
Grantor containing a brief description thereof, and granting to the Collateral Agent, for the ratable benefit of the Secured Parties, in such writing a security interest therein and in the Proceeds thereof, all upon the terms of this Agreement. The
provisions of the preceding sentence shall apply only to a Commercial Tort Claim that satisfies the following requirements: (a) the monetary value claimed by or payable to such Grantor in connection with such Commercial Tort Claim shall exceed
$25,000, and either (b) (i) such Grantor shall have filed a law suit or counterclaim or otherwise commenced legal proceedings (including, without limitation, arbitration proceedings) against the Person against

  

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whom such Commercial Tort Claim is made, or (ii) such Grantor and the Person against whom such Commercial Tort Claim is asserted shall have entered into a settlement agreement with respect
to such Commercial Tort Claim. In addition, to the extent that the existence of any Commercial Tort Claim held or acquired by such Grantor is disclosed by such Grantor in any public filing with the Securities Exchange Commission or any successor
thereto or analogous Governmental Authority, or to the extent that the existence of any such Commercial Tort Claim is disclosed in any press release issued by such Grantor, then, upon the request of the Collateral Agent, such Grantor shall, within
thirty (30) days after such request is made, transmit to the Collateral Agent a writing signed by such Grantor containing a brief description of such Commercial Tort Claim and granting to the Collateral Agent, for the ratable benefit of the
Secured Parties, in such writing a security interest therein and in the Proceeds thereof, all upon the terms of this Agreement. Notwithstanding anything to the contrary herein, for so long as an Event of Default has not occurred and is not
continuing, a Grantor shall have full and complete power and authority to prosecute, settle, compromise or dismiss any Commercial Tort Claim, without any consent from or other involvement of the Collateral Agent. 

Section 5.13 Limitation on Perfection of Security Interests. 

(a) Chattel Paper and Instruments. The perfection of the security interest granted in Section 2.01
above in Chattel Paper (whether Tangible or Electronic) and Instruments, respectively, will be effected solely by filing an appropriate financing statement under the applicable UCC so long as, with respect to such Chattel Paper or Instruments, the
face amount thereof does not exceed an aggregate of $25,000. 
 (b) Documents. The perfection of the
security interest granted in Section 2.01 above in Documents will be effected solely by filing an appropriate financing statement under the applicable UCC so long as the value of the goods covered by Documents does not exceed an
aggregate of $25,000. 
 (c) Letter-of-Credit Rights. The perfection of the security interest granted in
Section 2.01 above in Letter-of-Credit Rights will be required only with respect to any individual Letter-of-Credit Right the face amount of which exceeds $25,000. 

(d) Vehicles; Mobile Goods. The perfection of the security interest granted in Section 2.01 above in
any motor vehicle or individual mobile good for which perfection must be effected by a means other than the filing of an appropriate financing statement under the applicable UCC will be required only if the value of such motor vehicle or individual
mobile good, as applicable, exceeds $25,000. 
 (e) Oil and Gas Interests. The perfection of the security
interest granted in Section 2.01 above in any oil and gas interest or assets will be perfected by the filing of a mortgage or other Collateral Agreement and financing statement in the state, county, parish and/or agency as appropriate, in which
the oil and gas interests are located and in the state in which each Grantor is located. 
 (f) Certain
Foreign Assets. With respect to any personal property of a Grantor located in a jurisdiction other than the United States or any State thereof, other than 

  

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Pledged Securities issued by a Subsidiary, as to which the security interest granted hereunder may not be perfected by (i) filing financing statements under the UCC, (ii) recording of a
United States vessel mortgage or aircraft mortgage, (iii) possession or “control” (as defined in Section 8­106 or Article 9 of the UCC) thereof in the United States, (iv) notation as secured party on any certificate of
title or other title document with respect to titled goods, or (v) compliance with the provisions of any statute, regulation, or treaty of the United States or any State thereof, no Grantor will be required to take any action necessary to
perfect such security interest under the laws of the jurisdiction in which such property is located unless the value of such personal property exceeds $25,000. 
 ARTICLE VI 
 Remedial Provisions 

Section 6.01 Pledged Securities. 

(a) Unless an Event of Default shall have occurred and be continuing and the Collateral Agent, subject to the terms of
the Intercreditor Agreement, shall have given notice to the Grantors of the Collateral Agent’s intent to exercise its corresponding rights pursuant to Section 6.01(b), the Grantors shall be permitted to receive all cash dividends
paid in respect of the Pledged Securities paid in the normal course of business of the relevant Issuer, to the extent permitted in the Indenture, and to exercise all voting and corporate rights with respect to the Pledged Securities. 

(b) If an Event of Default shall occur and be continuing, then at any time in the Collateral Agent’s discretion,
subject to the terms of the Intercreditor Agreement, without notice, (i) the Collateral Agent shall have the right to receive any and all cash dividends, payments or other Proceeds paid in respect of the Pledged Securities and make application
thereof to the Indebtedness in accordance with the terms and provisions of Section 6.10 of the Indenture, and (ii) any or all of the Pledged Securities shall be registered in the name of the Collateral Agent, for the ratable benefit
of the Secured Parties, or its nominee, and the Collateral Agent or its nominee may thereafter exercise (x) all voting, corporate and other rights pertaining to such Pledged Securities at any meeting of shareholders (or other equivalent body)
of the relevant Pledged Security Issuer or Pledged Security Issuers or otherwise and (y) any and all rights of conversion, exchange and subscription and any other rights, privileges or options pertaining to such Pledged Securities as if it were
the absolute owner thereof (including, without limitation, the right to exchange at its discretion any and all of the Pledged Securities upon the merger, consolidation, reorganization, recapitalization or other fundamental change in the
organizational structure of any Pledged Security Issuer, or upon the exercise by any Grantor or the Collateral Agent of any right, privilege or option pertaining to such Pledged Securities, and in connection therewith, the right to deposit and
deliver any and all of the Pledged Securities with any committee, depositary, transfer agent, registrar or other designated agency upon such terms and conditions as the Collateral Agent may determine), all without liability except to account for
property actually received by it, but the Collateral Agent shall have no duty to any Grantor to exercise any such right, privilege or option and shall not be responsible for any failure to do so or delay in so doing. 

  

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 (c) Each Grantor hereby authorizes and instructs each Pledged Security
Issuer of any Pledged Securities pledged by such Grantor hereunder (and each Pledged Security Issuer party hereto hereby agrees) to (i) comply with any instruction received by it from the Collateral Agent in writing that (x) states that an
Event of Default has occurred and is continuing and (y) is otherwise in accordance with the terms of this Agreement and the Intercreditor Agreement, without any other or further instructions from such Grantor, and each Grantor agrees that each
Pledge Security Issuer shall be fully protected in so complying, and (ii) unless otherwise expressly permitted hereby, pay any dividends or other payments with respect to the Pledged Securities directly to the Collateral Agent, for the ratable
benefit of the Secured Parties, subject to the terms of the Intercreditor Agreement. 
 (d) After the occurrence
and during the continuation of an Event of Default, if the Pledged Security Issuer of any Pledged Securities is the subject of bankruptcy, insolvency, receivership, custodianship or other proceedings under the supervision of any Governmental
Authority, then all rights of Grantors, or any of them, in respect thereof to exercise the voting and other consensual rights which such Grantor would otherwise be entitled to exercise with respect to the Pledged Securities issued by such Pledged
Security Issuer shall cease, and all such rights shall thereupon, subject to the terms of the Intercreditor Agreement, become vested in the Collateral Agent, for the ratable benefit of the Secured Parties, who shall thereupon have the sole right to
exercise such voting and other consensual rights, but the Collateral Agent shall have no duty to exercise any such voting or other consensual rights and shall not be responsible for any failure to do so or delay in so doing. 

Section 6.02 Collections on Accounts, Etc. The Collateral Agent hereby authorizes Grantor to collect upon the
Accounts, Instruments, Chattel Paper and Payment Intangibles subject to the Collateral Agent’s direction and control, and the Collateral Agent may curtail or terminate said authority at any time after the occurrence and during the continuance
of an Event of Default. Upon the request of the Collateral Agent, subject to the terms of the Intercreditor Agreement, at any time after the occurrence and during the continuance of an Event of Default, Grantors shall notify the Account Debtor that
the applicable Accounts, Chattel Paper and Payment Intangibles have been assigned to the Collateral Agent and that payments in respect thereof shall be made directly to the Collateral Agent. The Collateral Agent may in its own name or in the name of
others communicate with the Account Debtor to verify with them to its satisfaction the existence, amount and terms of any Accounts, Chattel Paper or Payment Intangibles. 

Section 6.03 Oil and Gas Interests. The Collateral Agent shall be authorized to act on and deal with each
Grantor’s Oil and Gas Property in the manner set forth in the Collateral Agreements, as filed in the state, county, parish and/or agency, as appropriate, in which such Grantor has Oil and Gas Property. 

Section 6.04 Proceeds. If required by the Collateral Agent, subject to the terms of the Intercreditor
Agreement, at any time after the occurrence and during the continuance of an Event of Default, any payments of Accounts, Instruments, Chattel Paper and Payment Intangibles, when collected or received by any Grantor, and any other cash or non-cash
Proceeds received by such Grantor upon the sale or other disposition of any Collateral, shall be forthwith (and, in any event, within two (2) Business Days) deposited by such Grantor in the exact form received, duly

  

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indorsed by such Grantor to the Collateral Agent if required, in a special collateral account maintained by the Collateral Agent, subject to withdrawal by the Collateral Agent only, as
hereinafter provided, and, until so turned over, shall be held by such Grantor in trust for the Collateral Agent segregated from other funds of such Grantor. Each deposit of any such Proceeds shall be accompanied by a report identifying in
reasonable detail the nature and source of the payments included in the deposit. All Proceeds (including, without limitation, Proceeds constituting collections of Accounts, Chattel Paper, Instruments) while held by the Collateral Agent, for the
ratable benefit of the Secured Parties (or by such Grantor in trust for the Collateral Agent), shall continue to be collateral security for all of the Indebtedness and shall not constitute payment thereof until applied as hereinafter provided, nor
shall it constitute payment of indebtedness owed to the First Lien Agent. The Collateral Agent shall, subject to the terms of the Intercreditor Agreement, apply all or any part of the funds on deposit in said special collateral account on account of
the Indebtedness in accordance with the provisions of Section 6.10 of the Indenture, and any part of such funds which the Collateral Agent elects not so to apply and deems not required as collateral security for the Indebtedness shall be paid
over from time to time by the Collateral Agent to the Grantors or to whomsoever may be lawfully entitled to receive the same. 
 Section 6.05 UCC and Other Remedies. Subject to the terms of the Intercreditor Agreement: 
 (a) If an Event of Default shall occur and be continuing, the Collateral Agent may exercise in its discretion, in addition to all other rights, remedies, powers and privileges granted to it in this
Agreement, the other Second Lien Documents, and in any other instrument or agreement securing, evidencing or relating to the Indebtedness, all rights, remedies, powers and privileges of a secured party under the UCC (whether the UCC is in effect in
the jurisdiction where such rights, remedies, powers or privileges are asserted) or any other applicable law or otherwise available at law or equity. Without limiting the generality of the foregoing, the Collateral Agent, without demand of
performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law) to or upon Grantors or any other Person (all and each of which demands, defenses, advertisements and notices are hereby
waived), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give option or options to purchase, or otherwise dispose of and deliver the
Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s board or office of the Collateral Agent or elsewhere upon such terms and conditions as
it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk. The Collateral Agent, on behalf of the Secured Parties, shall have the right upon any such public sale
or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in any Grantor, which right or equity is hereby waived and
released. If an Event of Default shall occur and be continuing, each Grantor further agrees, at the Collateral Agent’s request, to assemble the Collateral and make it available to the Collateral Agent at places which the Collateral Agent shall
reasonably select, whether at such Grantor’s premises or elsewhere. Any such sale or transfer by the Collateral Agent either to itself or to any other Person shall be absolutely free from any claim of right by Grantors, including any equity or
right of redemption, stay or appraisal which any Grantor has or 

  

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may have under any rule of law, regulation or statute now existing or hereafter adopted. Upon any such sale or transfer, the Collateral Agent shall have the right to deliver, assign and transfer
to the purchaser or transferee thereof the Collateral so sold or transferred. The Collateral Agent shall apply the net proceeds of any action taken by it pursuant to this Section 6.05, after deducting all reasonable costs and expenses of
every kind incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the Collateral Agent hereunder, including, without limitation, reasonable
attorneys’ fees and disbursements, to the payment in whole or in part of the Indebtedness, in accordance with the terms and provisions of Section 6.10 of the Indenture, and only after such application and after the payment by the Secured
Parties of any other amount required by any provision of law, including, without limitation, Section 9-615 of the UCC, need the Collateral Agent account for the surplus, if any, to any Grantor. To the extent permitted by applicable law, each
Grantor waives all claims, damages and demands it may acquire against the Collateral Agent arising out of the exercise by it of any rights hereunder. If any notice of a proposed sale or other disposition of Collateral shall be required by law, such
notice shall be deemed reasonable and proper if given at least ten (10) days before such sale or other disposition. 
 (b) In the event that the Collateral Agent elects not to sell the Collateral, the Collateral Agent retains its rights to dispose of or utilize the Collateral or any part or parts thereof in any manner
authorized or permitted by law or in equity, and to apply the proceeds of the same towards payment of the Indebtedness. Each and every method of disposition of the Collateral described in this Agreement shall constitute disposition in a commercially
reasonable manner. The Collateral Agent may appoint any Person as agent to perform any act or acts necessary or incident to any sale or transfer of the Collateral. 

Section 6.06 Private Sales of Pledged Securities. Each Grantor recognizes that the Collateral Agent may be
unable to effect a public sale of any or all the Pledged Securities, by reason of certain prohibitions contained in the Securities Act and applicable state securities laws or otherwise, and may be compelled to resort to one or more private sales
thereof to a restricted group of purchasers which will be obliged to agree, among other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof. Each Grantor acknowledges and
agrees that any such private sale may result in prices and other terms less favorable than if such sale were a public sale and, notwithstanding such circumstances, each Grantor agrees that any such private sale shall be deemed to have been made in a
commercially reasonable manner. The Collateral Agent shall be under no obligation to delay a sale of any of the Pledged Securities for the period of time necessary to permit the Issuer thereof to register such securities for public sale under the
Securities Act, or under applicable state securities laws, even if such Issuer would agree to do so. Each Grantor agrees to use its commercially reasonable efforts to do or cause to be done all such other acts as may reasonably be necessary to make
such sale or sales of all or any portion of the Pledged Securities pursuant to this Section 6.06 valid and binding and in compliance with any and all other applicable Governmental Requirements. Each Grantor further agrees that a breach
of any of the covenants contained in this Section 6.06 will cause irreparable injury to the Collateral Agent, that the Collateral Agent has no adequate remedy at law in respect of such breach and, as a consequence, that each and every
covenant contained in this Section 6.06 shall be specifically enforceable against each Grantor, and each Grantor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants.

  

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 Section 6.07 Waiver; Deficiency. Each Grantor waives and agrees
not to assert any rights or privileges which it may acquire under the UCC or any other applicable law. Grantors jointly and severally shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are
insufficient to pay the Indebtedness and the fees and disbursements of any agents or attorneys employed by the Collateral Agent to collect such deficiency. 
 Section 6.08 Non-Judicial Enforcement. The Collateral Agent may enforce its rights hereunder without prior judicial process or judicial hearing, and to the extent permitted by law, each
Grantor expressly waives any and all legal rights which might otherwise require the Collateral Agent to enforce its rights by judicial process. 
 Section 6.09 Reasonable Notice. The Collateral Agent will give the applicable Grantor at least ten (10) days’ notice of the time and place of any public sale of any Collateral, or of
the time after which any private sale or other intended disposition of the Collateral is to be made. Such notice, in the case of public sale, shall state the time and place fixed for such sale and, in the case of private sale, the time after which
such sale is to be made. 
 ARTICLE VII 
 The Collateral Agent 
 Section 7.01 Collateral
Agent’s Appointment as Attorney-in-Fact, Etc. 
 (a) Each Grantor hereby irrevocably constitutes and
appoints the Collateral Agent and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such Grantor and in the name of such Grantor
or in its own name, for the purpose of carrying out the terms of this Agreement, to take any and all reasonably appropriate action and to execute any and all documents and instruments which may be reasonably necessary or desirable to accomplish the
purposes of this Agreement, and, without limiting the generality of the foregoing, each Grantor hereby gives the Collateral Agent the power and right, on behalf of such Grantor, without notice to or assent by any Grantor, to do any or all of the
following, in each case subject to the terms of the Intercreditor Agreement: 
 (i) unless being disputed under
Section 4.05 of the Indenture, pay or discharge taxes and Liens levied or placed on or threatened against the Collateral, effect any repairs or any insurance called for by the terms of this Agreement and pay all or any part of the premiums
therefore and the costs thereof; 
 (ii) execute, in connection with any sale provided for in
Section 6.05 or Section 6.06, any endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral; and 

(iii)(A) direct any party liable for any payment under any of the Collateral to make payment of any and all moneys due
or to become due thereunder directly to 

  

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the Collateral Agent or as the Collateral Agent shall direct; (B) take possession of and indorse and collect any checks, drafts, notes, acceptances or other instruments for the payment of
moneys due under any Account, Instrument, General Intangible, Chattel Paper or Payment Intangible or with respect to any other Collateral, and to file any claim or to take any other action or proceeding in any court of law or equity or otherwise
deemed appropriate by the Collateral Agent for the purpose of collecting any and all such moneys due under any Account, Instrument or General Intangible or with respect to any other Collateral whenever payable; (C) ask or demand for, collect,
and receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral; (D) sign and indorse any invoices, freight or express bills, bills of lading,
storage or warehouse receipts, drafts against any Grantor, assignments, verifications, notices and other documents in connection with any of the Collateral; (E) receive, change the address for delivery, open and dispose of mail addressed to any
Grantor, and to execute, assign and indorse negotiable and other instruments for the payment of money, documents of title or other evidences of payment, shipment or storage for any form of Collateral on behalf of and in the name of any Grantor;
(F) commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and to enforce any other right in respect of any Collateral;
(G) defend any suit, action or proceeding brought against any Grantor with respect to any Collateral; (H) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as
the Collateral Agent may deem appropriate; (I) subject to any licenses existing at the time of such assignment, assign any Copyright, Patent or Trademark (along with the goodwill of the business to which any such Trademark pertains), throughout
the world for such term or terms, on such conditions, and in such manner, as the Collateral Agent, subject to the terms of the Indenture, shall in its sole discretion determine; and (J) generally, sell, transfer, pledge and make any agreement
with respect to or otherwise deal with any of the Collateral as fully and completely as though the Collateral Agent was the absolute owner thereof for all purposes, and do, at the Collateral Agent’s option and Grantors’ expense, on a joint
and several basis, at any time, or from time to time, all acts and things which the Collateral Agent deems necessary to protect, preserve or realize upon the Collateral and the Collateral Agent’s security interests therein and to effect the
intent of this Agreement, all as fully and effectively as a Grantor might do. 
 Anything in this
Section 7.01(a) to the contrary notwithstanding, the Collateral Agent agrees that it will not exercise any rights under the power of attorney provided for in this Section 7.01(a) unless an Event of Default shall have occurred
and be continuing. 
 (b) If any Grantor fails to perform or comply with any of its agreements contained herein
within the applicable grace periods, the Collateral Agent, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement. 

(c) The expenses of the Collateral Agent incurred in connection with actions undertaken as provided in this
Section 7.01, together with interest thereon calculated at a rate equal to 1.00% per annum in excess of the then applicable interest rate of the Notes as set forth in Section 4.01(b) of the Indenture, from the date of payment
by the Collateral Agent to the date reimbursed by Grantors, shall be payable by Grantors, jointly and severally, to the Collateral Agent on demand. 

  

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 (d) Each Grantor hereby ratifies all that said attorneys shall lawfully do
or cause to be done by virtue and in compliance hereof. All powers, authorizations and agencies contained in this Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and the security interests created hereby
are released. 
 Section 7.02 Duty of the Collateral Agent. The Collateral Agent’s sole duty
with respect to the custody, safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of the UCC or otherwise, shall be to deal with it in the same manner as the Collateral Agent deals with similar property
for its own account and shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which comparable secured parties accord
comparable collateral. The Collateral Agent and its officers, directors, employees or agents shall not be liable for failure to demand, collect or realize upon any of the Collateral or for any delay in doing so or shall not be under any obligation
to sell or otherwise dispose of any Collateral upon the request of a Grantor or any other Person or to take any other action whatsoever with regard to the Collateral or any part thereof. The powers conferred on the Collateral Agent hereunder are
solely to protect the Collateral Agent’s interests in the Collateral and shall not impose any duty upon the Collateral Agent to exercise any such powers. The Collateral Agent shall be accountable only for amounts that it actually receives as a
result of the exercise of such powers, and neither it nor any of its officers, directors, employees or agents (collectively, the “Indemnitees”) shall be responsible to any Grantor for any act or failure to act hereunder,
NOTWITHSTANDING THE SOLE OR CONCURRENT NEGLIGENCE OF EVERY KIND OR CHARACTER WHATSOEVER, WHETHER ACTIVE OR PASSIVE, WHETHER AN AFFIRMATIVE ACT OR AN OMISSION, INCLUDING WITHOUT LIMITATION, ALL TYPES OF NEGLIGENT CONDUCT IDENTIFIED IN THE
RESTATEMENT (SECOND) OF TORTS OF ONE OR MORE OF THE INDEMNITEES OR BY REASON OF STRICT LIABILITY IMPOSED WITHOUT FAULT ON ANY ONE OR MORE OF THE INDEMNITEES; PROVIDED THAT SUCH EXCULPATION SHALL NOT, AS TO ANY INDEMNITEE, BE AVAILABLE
TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR RELATED EXPENSES RESULT FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE. To the fullest extent permitted by applicable law, the Collateral Agent shall be under no
duty whatsoever to make or give any presentment, notice of dishonor, protest, demand for performance, notice of non-performance, notice of intent to accelerate, notice of acceleration, or other notice or demand in connection with any Collateral or
the Indebtedness, or to take any steps necessary to preserve any rights against any Grantor or other Person or ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any
Collateral, whether or not it has or is deemed to have knowledge of such matters. Each Grantor, to the extent permitted by applicable law, waives any right of marshaling in respect of any and all Collateral, and waives any right to require the
Collateral Agent or Secured Parties to proceed against Grantors, or any of them, or other Person, exhaust any Collateral or enforce any other remedy which the Collateral Agent or Secured Parties now have or may hereafter have against Grantor or any
other Person. 
 Section 7.03 Execution of Financing Statements. Pursuant to the UCC and any other
applicable law, each Grantor authorizes the Collateral Agent, its counselor or its representative, at any time and from time to time, to file or record financing statements, continuation statements,

  

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amendments thereto and other filing or recording documents or instruments with respect to the Collateral without the signature of such Grantor in such form and in such offices as the Collateral
Agent reasonably determines appropriate to perfect the security interests of the Collateral Agent under this Agreement; it being understood that such authorization is not an obligation and in no circumstances will the Collateral Agent be required to
file financing statements. Additionally, each Grantor authorizes the Collateral Agent, its counselor or its representative, at any time and from time to time, to file or record such financing statements that describe the collateral covered thereby
as “all assets of Grantor,” “all personal property of Grantor” or words of similar effect, but expressly excluding the Excluded Collateral. 
 Section 7.04 Hazardous Materials. In the event that the Collateral Agent is required to acquire title to an asset for any reason, or take any managerial action of any kind in regard thereto,
in order to carry out any fiduciary or trust obligation for the benefit of another, which in the Collateral Agent’s sole discretion may cause the Collateral Agent to be considered an “owner or operator” under the provisions of the
Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C. §9601, et seq., or otherwise cause the Collateral Agent to incur liability under CERCLA or any other federal, state or local law, the
Collateral Agent reserves the right, instead of taking such action, to either resign as the Collateral Agent or arrange for the transfer of the title or control of the asset to a court-appointed receiver. The Collateral Agent shall not be liable to
any Grantor, or any other Person for any environmental claims or contribution actions under any federal, state or local law, rule or regulation by reason of the Collateral Agent’s actions and conduct as authorized, empowered and directed
hereunder or relating to the discharge, release or threatened release of hazardous materials into the environment. If at any time it is necessary or advisable for the Collateral to be possessed, owned, operated or managed by any Person (including
the Collateral Agent) other than a Grantor, the Holders of at least a majority in aggregate principal amount of the Notes then outstanding shall direct the Collateral Agent to appoint an appropriately qualified Person (excluding the Collateral
Agent) who they shall designate to possess, own, operate or manage, as the case may be, the Collateral. 

Section 7.05 Force Majeure. In no event shall the Collateral Agent be responsible or liable for any failure
or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including without limitation strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of god, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Collateral Agent shall use reasonable
efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances. 
 Section 7.06 Consequential Damages. In no event shall the Collateral Agent be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including,
but not limited to, loss of profit) irrespective of whether the Collateral Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. 

  

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 Section 7.07 Incorporation of Rights. All of the rights,
protections and immunities granted to the Collateral Agent and the Trustee under the Indenture shall inure to the benefit of the Collateral Agent and the Trustee and are incorporated herein. 

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

Section 8.02 Claims in Bankruptcy. In the event of receivership, bankruptcy, reorganization, arrangement,
debtor’s relief or other insolvency proceedings involving any Grantor, the Collateral Agent shall have the right to prove its claim in any proceeding, so as to establish its rights hereunder and receive directly from the receiver, trustee or
other court custodian, dividends and payments which would otherwise be payable upon Guarantor Claims. Each Guarantor hereby assigns such dividends and payments to the Collateral Agent for application against the Indebtedness as provided in
Section 6.10 of the Indenture. Should the Collateral Agent receive, for application upon the Indebtedness, any such dividend or payment which is otherwise payable to any Guarantor, and which, as to such Guarantor, shall constitute a
credit upon such Guarantor Claims, then upon payment in full of the Indebtedness, the intended recipient shall become subrogated to the rights of the Collateral Agent to the extent that such payments to the Collateral Agent on such Guarantor Claims
have contributed toward the liquidation of the Indebtedness, and such subrogation shall be with respect to that proportion of the Indebtedness which would have been unpaid if the Collateral Agent had not received dividends or payments upon such
Guarantor Claims. 
 Section 8.03 Payments Held in Trust. In the event that notwithstanding
Section 8.01 and Section 8.02, any Guarantor should receive any funds, payments, claims or distributions which is prohibited by such Sections, then it agrees: (a) to hold in trust for the Collateral Agent an amount equal
to the amount of all funds, payments, claims or distributions so received, and (b) that it shall have absolutely no dominion over the amount of such funds, payments, claims or distributions except to pay them promptly to the Collateral Agent;
and each Grantor covenants promptly to pay the same to the Collateral Agent. 
 Section 8.04 Liens
Subordinate. Each Grantor agrees that, until the Indebtedness is paid in full, any Liens securing payment of any Guarantor Claims shall be and remain inferior and subordinate to any Liens securing payment of the Indebtedness, regardless of
whether such 

  

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encumbrances in favor of the Secured Parties presently exist or are hereafter created or attach. Without the prior written consent of the Collateral Agent, no Guarantor, during the period in
which any of the Indebtedness is outstanding, shall (a) exercise or enforce any creditor’s right it may have against any debtor in respect of any of the Guarantor Claims, or (b) foreclose, repossess, sequester or otherwise take steps
or institute any action or proceeding (judicial or otherwise, including without limitation the commencement of or joinder in any liquidation, bankruptcy, rearrangement, debtor’s relief or insolvency proceeding) to enforce any Lien held by it.

 Section 8.05 Notation of Records. Upon the request of the Collateral Agent, all promissory notes
and all accounts receivable ledgers or other evidence of the Guarantor Claims accepted by or held by any Guarantor shall contain a specific written notice thereon that the indebtedness evidenced thereby is subordinated under the terms of this
Agreement. 
 ARTICLE IX 
 Miscellaneous 
 Section 9.01 Notices. Any
notice required or permitted to be given under or in connection with this Agreement shall be in writing and shall be given in the same manner as notice is given under the Indenture. All such communications shall be mailed, sent or delivered to the
Grantors or the Collateral Agent as follows: 
  

			
	 Grantors:
	  	 Black Elk Energy Offshore Operations, LLC
 11451 Katy Freeway, Suite 500
 Houston, TX 77079

Telephone: (281) 598-8600
 Facsimile: (281) 589-8601
 Attention: James F. Hagemeier

		
		  	 or

		
		  	 Black Elk Energy Land Operations, LLC
 11451 Katy Freeway, Suite 500
 Houston, TX 77079

Telephone: (281) 598-8600
 Facsimile: (281) 589-8601
 Attention: James F. Hagemeier

	
	 Collateral Agent:

		
		  	 The Bank of New York Mellon Trust Company, N.A.

601 Travis,
16th Floor

Houston, TX 77002

Facsimile: (713) 483-6649
 Attention: Corporate Trust Department

  

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 Any change in notice information shall be ineffective unless delivered in
writing to the other party, prior to the effectiveness of such new notice address. 
 Section 9.02
Payment of Expenses, Indemnities, Etc. 
 (a) The Grantors jointly and severally agree to pay or promptly
reimburse the Collateral Agent for all reasonable advances, charges, costs and expenses (including, without limitation, all costs and expenses of holding, preparing for sale and selling, collecting or otherwise realizing upon the Collateral and all
reasonable attorneys’ fees, legal expenses and court costs) incurred by the Collateral Agent in connection with the exercise of its rights and remedies hereunder, including, without limitation, any reasonable advances, charges, costs and
expenses that may be incurred in any effort to enforce any of the provisions of this Agreement or any obligation of any Grantor in respect of the Collateral or in connection with (i) the preservation of the Lien of, or the rights of the
Collateral Agent under this Agreement, (ii) any actual or attempted sale, lease, disposition, exchange, collection, compromise, settlement or other realization in respect of, or care of, the Collateral, including all such costs and expenses
incurred in any bankruptcy, reorganization, workout or other similar proceeding, or (iii) otherwise enforcing or preserving any rights under this Agreement and the other Second Lien Document to which such Grantor is a party. 

(b) EACH GRANTOR AGREES TO PAY, AND TO SAVE THE COLLATERAL AGENT AND EACH OTHER INDEMNITEE HARMLESS FROM, ANY
AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES OR DISBURSEMENTS OF ANY KIND OR NATURE WHATSOEVER (INCLUDING, WITHOUT LIMITATION, COURT COSTS AND REASONABLE ATTORNEYS’ FEES, ANY AND ALL
LIABILITIES WITH RESPECT TO, OR RESULTING FROM ANY DELAY IN PAYING, ANY AND ALL STAMP, EXCISE, SALES OR OTHER TAXES WHICH MAY BE PAYABLE OR DETERMINED TO BE PAYABLE WITH RESPECT TO ANY OF THE COLLATERAL OR IN CONNECTION WITH ANY OF THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT) INCURRED BECAUSE OF, INCIDENT TO, OR WITH RESPECT TO, THE COLLATERAL (INCLUDING, WITHOUT LIMITATION, ANY EXERCISE OF RIGHTS OR REMEDIES IN CONNECTION THEREWITH) OR THE EXECUTION, DELIVERY, ENFORCEMENT, PERFORMANCE AND
ADMINISTRATION OF THIS AGREEMENT, TO THE EXTENT ANY GRANTOR WOULD BE REQUIRED TO DO SO PURSUANT TO SECTION 7.07 OF THE INDENTURE IF SUCH GRANTOR WAS A PARTY TO THE INDENTURE. ALL AMOUNTS FOR WHICH ANY GRANTOR IS LIABLE PURSUANT TO THIS SECTION
9.02 SHALL BE DUE AND PAYABLE JOINTLY AND SEVERALLY BY GRANTORS TO THE COLLATERAL AGENT UPON DEMAND. 

Section 9.03 Amendments and Waivers. The Collateral Agent’s acceptance, on behalf of the Secured
Parties, of partial or delinquent payments or any forbearance, failure or delay by the Collateral Agent or Secured Parties in exercising any right, power or remedy hereunder shall not be deemed a waiver of any obligation of the Grantors, or of any
right, power or remedy of the Collateral Agent or Secured Parties; and no partial exercise of any right, power or remedy 

  

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shall preclude any other or further exercise thereof. The Collateral Agent, on behalf of the Secured Parties, may remedy any Event of Default hereunder or in connection with the Indebtedness
without waiving the Event of Default so remedied. Each Grantor hereby agrees that if the Collateral Agent, on behalf of the Secured Parties, agrees to a waiver of any provision hereunder, or an exchange of or release of the Collateral, or the
addition or release of any Grantor or other Person, any such action shall not constitute a waiver of any of the Collateral Agent’s or the Secured Parties’ other rights or of such Grantor’s obligations hereunder. This Agreement may be
amended only by an instrument in writing executed jointly by the Grantors, and the Collateral Agent, on behalf of the Secured Parties, and may be supplemented only by documents delivered or to be delivered in accordance with the express terms
hereof. In executing amendments or waivers hereto, the Collateral Agent shall be entitled to receive an Opinion of Counsel and an Officer’s Certificate that all conditions precedent in the Indenture Documents have been satisfied. 

Section 9.04 Possession of Collateral. The Collateral Agent shall be deemed to have possession of any
Collateral in transit to it or set apart for it (or, in either case, any of its agents, affiliates or correspondents). 
 Section 9.05 Redelivery of Collateral. If any sale or transfer of Collateral by the Collateral Agent for the ratable benefit of the Secured Parties, results in full satisfaction of the
Indebtedness, and after such sale or transfer and discharge there remains a surplus of proceeds, the Collateral Agent, subject to the terms of the Indenture, will deliver to the Grantors or to such other Person entitled thereto such excess proceeds
in a commercially reasonable time; provided, however, that the Collateral Agent shall not have any liability for any interest, cost or expense in connection with any delay in delivering such proceeds to the Grantors or such other
Person. In connection with any release of Collateral, the Collateral Agent shall receive an Opinion of Counsel and an Officer’s Certificate that all conditions precedent in the Indenture Documents with respect to such release have been
satisfied. 
 Section 9.06 Successors and Assigns. This Agreement shall be binding upon the
successors and assigns of any Grantor and shall inure to the benefit of the Collateral Agent and the Secured Parties and their successors and assigns; provided that no Grantor may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the Collateral Agent. 
 Section 9.07
Invalidity. In the event that any one or more of the provisions contained in this Agreement or in any of the Second Lien Documents to which a Grantor is a party shall, for any reason, be held invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or such other Second Lien Document. 
 Section 9.08 Limitation by Law. All rights, remedies and powers provided in this Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable
provision of law, and all the provisions of this Agreement are intended to be subject to all applicable mandatory provisions of law which may be controlling and to be limited to the extent necessary so that they shall not render this Agreement
invalid, unenforceable, in whole or in part, or not entitled to be recorded, registered or filed under the provisions of any applicable law. 

  

- 29 - 

 Section 9.09 Counterparts. This Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Agreement by signing any such counterpart. Delivery of an executed counterpart of a signature page of
this Agreement by telecopy or e-mail shall be effective as delivery of a manually executed counterpart of this Agreement. 
 Section 9.10 Captions. Captions and section headings appearing herein are included solely for convenience of reference and are not intended to affect the interpretation of any provision of
this Agreement. 
 Section 9.11 No Oral Agreements. The Second Lien Documents embody the entire
agreement and understanding between the parties and supersede all other agreements and understandings between such parties relating to the subject matter hereof and thereof. THE SECOND LIEN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER OF THE SECOND LIEN DOCUMENTS. 

Section 9.12 Governing Law; Submission to Jurisdiction. 

(a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO CONFLICT OF LAW PRINCIPLES. 
 (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT SHALL
BE BROUGHT EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK CITY OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HEREBY ACCEPTS FOR ITSELF
AND (TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO
THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS EXCLUSIVE AND PRECLUDES A
PARTY FROM OBTAINING JURISDICTION OVER ANOTHER PARTY IN ANY COURT OTHERWISE HAVING JURISDICTION. 
 (c) EACH
GRANTOR HEREBY IRREVOCABLY DESIGNATES, APPOINTS AND EMPOWERS AND HEREBY CONFERS AN IRREVOCABLE SPECIAL POWER, AMPLE AND SUFFICIENT, TO CT CORPORATION, WITH OFFICES ON THE 

  

- 30 - 

 
DATE HEREOF AT 111 EIGHTH AVENUE, NEW YORK, NEW YORK 10011 AS ITS DESIGNEE, APPOINTEE AND AGENT WITH RESPECT TO ANY SUCH ACTION OR PROCEEDING IN NEW YORK TO RECEIVE, ACCEPT AND ACKNOWLEDGE FOR
AND ON ITS BEHALF, AND IN RESPECT OF ITS PROPERTY, SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS WHICH MAY BE SERVED IN ANY SUCH PROCEEDING AND AGREES THAT THE FAILURE OF SUCH AGENT TO GIVE ANY ADVICE OF ANY SUCH SERVICE OF
PROCESS TO EACH GRANTOR SHALL NOT IMPAIR OR AFFECT THE VALIDITY OF SUCH SERVICE OR OF ANY CLAIM BASED THEREON. IF FOR ANY REASON SUCH DESIGNEE, APPOINTEE AND SUCH AGENT SHALL CEASE TO BE AVAILABLE TO ACT AS SUCH, EACH GRANTOR AGREES TO DESIGNATE A
NEW DESIGNEE, APPOINTEE AND AGENT IN NEW YORK CITY REASONABLY SATISFACTORY TO THE COLLATERAL AGENT ON THE TERMS AND FOR THE PURPOSES OF THIS PROVISION. EACH PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN
ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT THE ADDRESS SPECIFIED IN SECTION 13.02 OF THE INDENTURE OR SUCH OTHER ADDRESS AS IS SPECIFIED PURSUANT TO SECTION 13.02 OF THE
INDENTURE, SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY OR AGENTS, OR ANY SECURED PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANOTHER PARTY IN ANY OTHER JURISDICTION. 
 (d) EACH PARTY TO THIS
AGREEMENT HEREBY (i) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN;
(ii) IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
DAMAGES; (iii) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OF COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVERS, AND (iv) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE SECOND LIEN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
CONTAINED IN THIS SECTION. 
 Section 9.13 Acknowledgments. Each Grantor hereby acknowledges that:

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

  

- 31 - 

 (b) the Collateral Agent does not have any fiduciary relationship with or
duty to any Grantor arising out of or in connection with this Agreement or any of the other Second Lien Documents, and the relationship between Grantors, or any of them, on the one hand, and the Collateral Agent, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and 
 (c) no joint venture is created hereby or by
the other Second Lien Documents or otherwise exists by virtue of the transactions contemplated hereby among Grantors and the Secured Parties. 
 (d) Each of the parties hereto specifically agrees that it has a duty to read this Agreement and the Second Lien Documents and agrees that it is charged with notice and knowledge of the terms of this
Agreement and the Second Lien Documents; that it has in fact read this Agreement and is fully informed and has full notice and knowledge of the terms, conditions and effects of this Agreement; that it has been represented by independent legal
counsel of its choice throughout the negotiations preceding its execution of this Agreement and the Second Lien Documents; and has received the advice of its attorney in entering into this Agreement and the Second Lien Documents; and that it
recognizes that certain of the terms of this Agreement and the Second Lien Documents result in one party assuming the liability inherent in some aspects of the transaction and relieving the other party of its responsibility for such liability. Each
party hereto agrees and covenants that it will not contest the validity or enforceability of any exculpatory provision of this Agreement and the Second Lien Documents on the basis that the party had no notice or knowledge of such provision or that
the provision is not “conspicuous.” 
 (e) Each Grantor warrants and agrees that each of the waivers
and consents set forth in this Agreement are made voluntarily and unconditionally after consultation with outside legal counsel and with full knowledge of their significance and consequences, with the understanding that events giving rise to any
defense or right waived may diminish, destroy or otherwise adversely affect rights which Grantor otherwise may have against any Grantor, the Collateral Agent or any other Person or against any collateral. If, notwithstanding the intent of the
parties that the terms of this Agreement shall control in any and all circumstances, any such waivers or consents are determined to be unenforceable under applicable law, such waivers and consents shall be effective to the maximum extent permitted
by law. 
 Section 9.14 Additional Grantor. Each Subsidiary of a Grantor that is required to become
a party to this Agreement pursuant to Section 4.16 of the Indenture and is not a signatory hereto shall become a Grantor for all purposes of this Agreement upon execution and delivery by such Subsidiary of an Assumption Agreement in the
form of Annex I attached hereto. 
 Section 9.15 Set-Off. If an Event of Default shall have
occurred and be continuing, each Grantor agrees that, in addition to (and without limitation of) any right of set-off, bankers’ lien or counterclaim, the Collateral Agent, on behalf of the Secured Parties, may otherwise have, the Collateral
Agent shall have the right and be entitled, at its option, to offset balances held by it or by any of its Affiliates for account of Grantors, or any of them, or any Subsidiary at any of its offices, in United States dollars or in any other currency
against any principal of or interest on any Note, or any other amount due and payable to the Collateral Agent or the Secured Parties 

  

- 32 - 

 
under any Second Lien Document, which is not paid when due (regardless of whether such balances are then due to such Person), in which case it shall promptly notify such Grantor thereof,
provided that the Collateral Agent’s failure to give such notice shall not affect the validity thereof. 
 Section 9.16 Releases. 
 (a) Release Upon Payment
in Full. This Agreement and the grant of the security interest created hereby shall terminate when all the Indebtedness have been indefeasibly paid in full and any other obligations of the Collateral Agent or the Secured Parties have been
terminated, at which time the Collateral Agent, on behalf of the Secured Parties, shall execute and deliver to Grantors or Grantors’ designee, at Grantor’s expense, a written release and all UCC termination statements and similar documents
which Grantors shall reasonably request to evidence such termination. Upon such termination, the Collateral Agent, on behalf of the Secured Parties, at the written request and expense of Grantors, will promptly release, reassign and transfer the
Collateral to the applicable Grantor and declare this Agreement to be of no further force or effect. 
 (b)
Further Assurances. If any of the Collateral shall be sold, transferred or otherwise disposed of by any Grantor in a transaction permitted by the Indenture, then such Collateral shall be released from the Liens created hereby, and the
Collateral Agent, at the request and joint and several sole expense of Grantors, shall promptly execute and deliver to Grantors all releases or other documents reasonably necessary for the release of the Liens created hereby on such Collateral and
the capital stock of Grantors. At the request and the joint and several expense of Grantors, Grantors shall be released from their obligations hereunder in the event that all the capital stock of Grantors shall be sold, transferred or otherwise
disposed of in a transaction permitted by the Indenture; provided that Grantors shall have delivered to the Collateral Agent, at least five (5) Business Days prior to the date of the proposed release, a written request for release
identifying such Grantors and the terms of the sale or other disposition in reasonable detail, including the price thereof and any expenses in connection therewith, together with a certification by such Grantor stating that such transaction is in
compliance with the Indenture and the other Second Lien Documents. 
 (c) Retention in Satisfaction.
Except as may be expressly applicable pursuant to Section 9-620 of the UCC, no action taken or omission to act by the Collateral Agent hereunder, including, without limitation, any exercise of voting or consensual rights or any other action
taken or inaction, shall be deemed to constitute a retention of the Collateral in satisfaction of the Indebtedness or otherwise to be in full satisfaction of the Indebtedness, and the Indebtedness shall remain in full force and effect, until the
Collateral Agent shall have applied payments (including, without limitation, collections from Collateral) towards the Indebtedness in the full amount then outstanding or until such subsequent time as is provided in Section 9.16(a).

 Section 9.17 Reinstatement. The obligations of the parties under Section 9.02 shall
survive the repayment of the Indebtedness. The obligations of Grantors under this Agreement shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Indebtedness is rescinded or
must otherwise be restored or returned by the Secured Parties upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of 

  

- 33 - 

 
any Grantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, any Grantor or any substantial part of its property, or
otherwise, all as though such payments had not been made. 
 Section 9.18 Acceptance. Each Grantor
hereby expressly waives notice of acceptance of this Agreement, acceptance on the part of the Secured Parties being conclusively presumed by their request for this Agreement and delivery of the same to the Collateral Agent. 

Section 9.19 Indenture; Intercreditor Agreement. If there is a conflict between the terms of the Indenture
and this Agreement, the terms of the Indenture will control. Notwithstanding anything herein to the contrary, the Lien and security interest granted to the Collateral Agent pursuant to this Agreement and the exercise of any right or remedy by the
Collateral Agent hereunder are subject to the provisions of the Intercreditor Agreement. If there is a conflict between the terms of the Intercreditor Agreement and this Agreement, the terms of the Intercreditor Agreement will control. Further,
notwithstanding anything herein to the contrary, prior to the First Lien Discharge Date, the requirement pursuant this Agreement to endorse, assign, deliver or grant control over Collateral to the Collateral Agent shall be deemed satisfied by
endorsement, assignment, delivery or granting control of such Collateral to the First Lien Agent (who shall possess or control such Collateral for the benefit of the Collateral Agent in accordance with the Intercreditor Agreement). Following the
First Lien Discharge Date, each Grantor shall endorse, assign, deliver or grant control to the Collateral Agent over such Collateral for which perfection is effectuated in such manner. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  

- 34 - 

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

					
	GRANTORS:	  	 BLACK ELK ENERGY OFFSHORE
 OPERATIONS, LLC

			
		  	By:	 	     /s/ James Hagemeier

		  		 	Name:    James Hagemeier
		  		 	Title:      Vice President
		
		  	 BLACK ELK ENERGY FINANCE
 CORP.

			
		  	By:	 	     /s/ James Hagemeier

		  		 	Name:    James Hagemeier
		  		 	Title:      Vice President
		
		  	 BLACK ELK ENERGY LAND
 OPERATIONS, LLC

			
		  	 By:
	 	     /s/ James Hagemeier

		  		 	Name:    James Hagemeier
		  		 	Title:      Vice President

 [SIGNATURE PAGE TO SECURITY AGREEMENT] 

  
 S-1

			
	 Acknowledged and Agreed to as on the
date hereof by:

	
	 THE BANK OF NEW YORK MELLON
 TRUST COMPANY, N.A., as
 Trustee and Collateral
Agent

		
	 By:    
	 	 /s/ Kash Asghar

		 	 Name:  Kash Asghar

Title:    Senior Associate

[SIGNATURE PAGE TO SECURITY AGREEMENT] 

  
 S-2

 Schedule 1  

NOTICE ADDRESS OF GRANTORS 

Black Elk Energy Offshore Operations, LLC 
 Black Elk Energy Finance Corp. 
 Black Elk Energy Land Operations, LLC 

Notice Address: 

11451 Katy Freeway, Suite 500 
 Houston, Texas 70779 
 Attention: James F. Hagemeier 

Telephone: 281-507-7652 

Facsimile: 281-598-8601 

  
 Schedule
1 - 1 

 Schedule 2  

DESCRIPTION OF PLEDGED SECURITIES 
 All of the capital stock of Black Elk Energy Finance Corp. and all of the membership interests of Black Elk Energy Land Operations, LLC. 

  
 Schedule
2 - 1 

 Schedule 3  

FILINGS AND OTHER ACTIONS 
 REQUIRED TO PERFECT SECURITY INTERESTS 
 Uniform Commercial Code Filings

 A. UCC-1 with Black Elk Energy Offshore Operations, LLC as debtor and the Collateral Agent as secured party to be filed
with the Secretary of State of Texas, listing all present and future assets of Black Elk Energy Offshore Operations, LLC as collateral. 
 B. UCC-l with Black Elk Energy Land Operations, LLC as debtor and the Collateral Agent as secured party to be filed with the Secretary of State of Texas, listing all present and future assets of Black Elk
Energy Land Operations, LLC as collateral. 
 C. UCC-l with Black Elk Energy Finance Corp. as debtor and the Collateral Agent as
secured party to be filed with the Secretary of State of Texas, listing all present and future assets of Black Elk Energy Finance Corp. as collateral. 
 Delivery to Control Agent of Pledged Securities 
 A. One thousand
(1,000) shares of common stock per certificate No. 2 of Black Elk Energy Finance Corp. together with corresponding stock power. 
 Trademarks and Patents 
 A. NONE 

  
 Schedule
3 - 1 

 Schedule 4  

CORRECT LEGAL NAME, LOCATION OF JURISDICTION OF ORGANIZATION, 

ORGANIZATIONAL IDENTIFICATION NUMBER, TAXPAYER IDENTIFICATION 

NUMBER AND CHIEF EXECUTIVE OFFICE 
  

	1.	 Black Elk Energy Offshore Operations, LLC 

 Organizational Identification Number: 800899957 
 Taxpayer
Identification Number: 38-3769404 
 Chief Executive Office: As provided on Schedule 1 

 

	2.	 Black Elk Energy Land Operations, LLC 

 Organizational Identification Number: 800899944 
 Taxpayer
Identification Number: 38-3769402 
 Chief Executive Office: As provided on Schedule 1 

 

	3.	 Black Elk Energy Finance Corp. 

 Organizational Identification Number: 801335730 
 Taxpayer
Identification Number: 80-0656113 
 Chief Executive Office: As provided on Schedule 1 

  
 Schedule
4 - 1 

 Schedule 5  

PRIOR NAMES AND PRIOR CHIEF EXECUTIVE OFFICES 
 A. Prior Names: 
 None. 

B. Prior Chief Executive Offices: 
 1710 Dairy Ashford 
 Suite 212 

Houston, Texas 77077 

  
 Schedule
5 - 1 

 Schedule 6  

INTELLECTUAL PROPERTY 
 Patents: 
 1. None 

Patent Licenses: 
 1. None 
 Trademarks: 

1. Only marks and names in accordance with common law. 
 Trademark Licenses: 
 1. None. 

  
 Schedule
6 - 1 

 Annex I  

Assumption Agreement 
 ASSUMPTION AGREEMENT, dated as of                     , 20    , made
by                     , a
                    , with an address at
                                        
(the “Additional Grantor”), in favor of THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., with an address at 2 North LaSalle Street, Suite 1020, Chicago, IL 60606 as trustee (in such capacity, the
“Trustee”) and as collateral agent (in such capacity, the “Collateral Agent”) under the Indenture referred to below. All capitalized terms not defined herein shall have the meaning ascribed to them in
such Indenture. 
 W I T N E S SE T H: 
 WHEREAS, Black Elk Energy Offshore Operations, LLC, a limited liability company organized and existing under the laws of the State of Texas (the “Issuer”), Black Elk Energy Finance
Corp. (the “Co-Issuer”), Black Elk Energy Land Operations, LLC, a Texas limited liability company, the other entities party thereto from time to time as guarantors, the Trustee and the Collateral Agent are parties to that
certain Indenture, dated as of November 23, 2010 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Indenture”), pursuant to which the Issuer and the Co-Issuer have issued
$150,000,000 of their 13.75% senior secured notes due 2015 (the “Initial Notes”) and may issue an unlimited amount of additional notes (the “Additional Notes” and, together with the Initial Notes, the
“Notes”); 
 WHEREAS, in connection with the Indenture, the Issuer and the other
Grantors party thereto have entered into that certain Security Agreement, dated as of November 23, 2010 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Security Agreement”)
in favor of the Collateral Agent; 
 WHEREAS, the Indenture requires the Additional Grantor to become a party to
the Security Agreement; and 
 WHEREAS, the Additional Grantor has agreed to execute and deliver this Assumption
Agreement in order to become a party to the Security Agreement; 
 NOW, THEREFORE, IT IS AGREED: 

1. Security Agreement. By executing and delivering this Assumption Agreement, the Additional Grantor, as provided
in Section 9.14 of the Security Agreement, hereby becomes a party to the Security Agreement as a Grantor thereunder with the same force and effect as if originally named therein as a Grantor and, without limiting the generality of the
foregoing, hereby expressly assumes all obligations and liabilities of a Grantor thereunder and expressly grants to the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in all Collateral owned by such Additional
Grantor to secure all of such Additional Grantor’s obligations and liabilities thereunder. The information set forth in Annex 1-A hereto is hereby added to the information set forth in Schedules 1 through 6 to the Security
Agreement. The Additional Grantor hereby represents and warrants that each of the representations and 

  
 Annex
I - 1 

 
warranties contained in Article IV of the Security Agreement is true and correct on and as the date hereof (after giving effect to this Assumption Agreement) as if made on and as of such
date. 
 2. Governing Law. 

(a) THIS ASSUMPTION AGREEMENT AND THE OTHER SECOND LIEN DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES. 
 (b) ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS ASSUMPTION AGREEMENT OR THE OTHER SECOND LIEN DOCUMENTS SHALL BE BROUGHT EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK CITY OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW
YORK, AND, BY EXECUTION AND DELIVERY OF THIS ASSUMPTION AGREEMENT, EACH PARTY HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID
COURTS. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR
PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS EXCLUSIVE AND PRECLUDES A PARTY FROM OBTAINING JURISDICTION OVER ANOTHER PARTY IN ANY COURT OTHERWISE HAVING JURISDICTION. 

(c) THE ADDITIONAL GRANTOR HEREBY IRREVOCABLY DESIGNATES, APPOINTS AND EMPOWERS AND HEREBY CONFERS AN IRREVOCABLE SPECIAL
POWER, AMPLE AND SUFFICIENT, TO CT CORPORATION, WITH OFFICES ON THE DATE HEREOF AT 111 EIGHTH AVENUE, NEW YORK, NEW YORK 10011 AS ITS DESIGNEE, APPOINTEE AND AGENT WITH RESPECT TO ANY SUCH ACTION OR PROCEEDING IN NEW YORK TO RECEIVE, ACCEPT AND
ACKNOWLEDGE FOR AND ON ITS BEHALF, AND IN RESPECT OF ITS PROPERTY, SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS WHICH MAY BE SERVED IN ANY SUCH PROCEEDING AND AGREES THAT THE FAILURE OF SUCH AGENT TO GIVE ANY ADVICE OF ANY
SUCH SERVICE OF PROCESS TO THE ADDITIONAL GRANTOR SHALL NOT IMPAIR OR AFFECT THE VALIDITY OF SUCH SERVICE OR OF ANY CLAIM BASED THEREON. IF FOR ANY REASON SUCH DESIGNEE, APPOINTEE AND AGENT SHALL CEASE TO BE AVAILABLE TO ACT AS SUCH, THE ADDITIONAL
GRANTOR AGREES TO DESIGNATE A NEW DESIGNEE, APPOINTEE AND AGENT IN NEW YORK CITY REASONABLY SATISFACTORY TO THE COLLATERAL AGENT ON THE TERMS AND FOR THE PURPOSES OF THIS PROVISION. EACH PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF
THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT THE ADDRESS SPECIFIED IN THE FIRST PARAGRAPH OF THIS ASSUMPTION AGREEMENT OR

  
 Annex
I - 2 

 
SUCH OTHER ADDRESS AS IS SPECIFIED PURSUANT TO THE FIRST PARAGRAPH OF THIS ASSUMPTION AGREEMENT, SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL
AFFECT THE RIGHT OF A PARTY OR ANY LENDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANOTHER PARTY IN ANY OTHER JURISDICTION. 

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

  
 Annex
I - 3 

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

			
	[ADDITIONAL GRANTOR]
		
	 By:
	 	  

		 	 Name:

		 	 Title:

  
 Annex
I - 1Credit Agreement, dated as of December 24, 2010

 Exhibit 4.4 
 EXECUTION VERSION 
  

 
 CREDIT AGREEMENT

 dated as of 
 December 24, 2010 
 among 

BLACK ELK ENERGY OFFSHORE OPERATIONS, LLC, 
 as Borrower, 
 CAPITAL ONE, N.A., 

as Administrative Agent 
 and 
 THE LENDERS PARTY HERETO 

 
  

 TABLE OF CONTENTS 

 

							
	 ARTICLE I Definitions and Accounting Matters
	  	 	1	  
	 Section 1.01
	  	 Terms Defined Above
	  	 	1	  
	 Section 1.02
	  	 Certain Defined Terms
	  	 	1	  
	 Section 1.03
	  	 Types of Loans and Borrowings
	  	 	25	  
	 Section 1.04
	  	 Terms Generally; Rules of Construction
	  	 	26	  
	 Section 1.05
	  	 Accounting Terms and Determinations; GAAP
	  	 	26	  
		
	 ARTICLE II The Credits
	  	 	26	  
	 Section 2.01
	  	 Commitments
	  	 	26	  
	 Section 2.02
	  	 Loans and Borrowings
	  	 	27	  
	 Section 2.03
	  	 Requests for Borrowings
	  	 	28	  
	 Section 2.04
	  	 Interest Elections
	  	 	29	  
	 Section 2.05
	  	 Funding of Borrowings
	  	 	30	  
	 Section 2.06
	  	 Changes in the Aggregate Maximum Credit Amounts
	  	 	30	  
	 Section 2.07
	  	 Borrowing Base
	  	 	31	  
	 Section 2.08
	  	 Letters of Credit
	  	 	33	  
		
	 ARTICLE III Payments of Principal and Interest; Prepayments; Fees
	  	 	38	  
	 Section 3.01
	  	 Repayment of Loans
	  	 	38	  
	 Section 3.02
	  	 Interest
	  	 	38	  
	 Section 3.03
	  	 Alternate Rate of Interest
	  	 	39	  
	 Section 3.04
	  	 Prepayments
	  	 	39	  
	 Section 3.05
	  	 Fees
	  	 	41	  
		
	 ARTICLE IV Payments; Pro Rata Treatment; Sharing of Set-offs
	  	 	42	  
	 Section 4.01
	  	 Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	  	 	42	  
	 Section 4.02
	  	 Presumption of Payment by the Borrower
	  	 	43	  
	 Section 4.03
	  	 Certain Deductions by the Administrative Agent
	  	 	43	  
	 Section 4.04
	  	 Disposition of Proceeds
	  	 	44	  
		
	 ARTICLE V Increased Costs; Break Funding Payments; Taxes; Illegality; Defaulting Lenders
	  	 	44	  
	 Section 5.01
	  	 Increased Costs
	  	 	44	  
	 Section 5.02
	  	 Break Funding Payments
	  	 	45	  
	 Section 5.03
	  	 Taxes
	  	 	46	  
	 Section 5.04
	  	 Mitigation Obligations
	  	 	47	  
	 Section 5.05
	  	 Illegality
	  	 	48	  
	 Section 5.06
	  	 Defaulting Lenders
	  	 	48	  
		
	 ARTICLE VI Conditions Precedent
	  	 	49	  
	 Section 6.01
	  	 Conditions to Effectiveness
	  	 	49	  
	 Section 6.02
	  	 Each Credit Event
	  	 	51	  
	 Section 6.03
	  	 Condition Subsequent
	  	 	52	  
		
	 ARTICLE VII Representations and Warranties
	  	 	52	  

  
 -i-

							
	 Section 7.01
	  	 Organization; Powers
	  	 	52	  
	 Section 7.02
	  	 Authority; Enforceability
	  	 	53	  
	 Section 7.03
	  	 Approvals; No Conflicts
	  	 	53	  
	 Section 7.04
	  	 Financial Condition; No Material Adverse Change
	  	 	53	  
	 Section 7.05
	  	 Litigation
	  	 	54	  
	 Section 7.06
	  	 Environmental Matters
	  	 	54	  
	 Section 7.07
	  	 Compliance with the Laws and Agreements; No Defaults
	  	 	55	  
	 Section 7.08
	  	 Investment Company Act
	  	 	55	  
	 Section 7.09
	  	 Taxes
	  	 	56	  
	 Section 7.10
	  	 ERISA
	  	 	56	  
	 Section 7.11
	  	 Disclosure; No Material Misstatements
	  	 	56	  
	 Section 7.12
	  	 Insurance
	  	 	57	  
	 Section 7.13
	  	 Restriction on Liens
	  	 	57	  
	 Section 7.14
	  	 Subsidiaries
	  	 	57	  
	 Section 7.15
	  	 Location of Business and Offices
	  	 	57	  
	 Section 7.16
	  	 Properties; Titles, Etc
	  	 	57	  
	 Section 7.17
	  	 Maintenance of Properties
	  	 	58	  
	 Section 7.18
	  	 Gas Imbalances, Prepayments
	  	 	59	  
	 Section 7.19
	  	 Marketing of Production
	  	 	59	  
	 Section 7.20
	  	 Swap Agreements
	  	 	59	  
	 Section 7.21
	  	 Use of Loans and Letters of Credit
	  	 	59	  
	 Section 7.22
	  	 Solvency
	  	 	60	  
		
	 ARTICLE VIII Affirmative Covenants
	  	 	60	  
	 Section 8.01
	  	 Financial Statements; Ratings Change; Other Information
	  	 	60	  
	 Section 8.02
	  	 Notices of Material Events
	  	 	62	  
	 Section 8.03
	  	 Existence; Conduct of Business
	  	 	63	  
	 Section 8.04
	  	 Payment of Obligations
	  	 	63	  
	 Section 8.05
	  	 Performance of Obligations under Loan Documents
	  	 	63	  
	 Section 8.06
	  	 Operation and Maintenance of Properties
	  	 	63	  
	 Section 8.07
	  	 Insurance
	  	 	64	  
	 Section 8.08
	  	 Books and Records; Inspection Rights
	  	 	64	  
	 Section 8.09
	  	 Compliance with Laws
	  	 	64	  
	 Section 8.10
	  	 Environmental Matters
	  	 	65	  
	 Section 8.11
	  	 Further Assurances
	  	 	65	  
	 Section 8.12
	  	 Reserve Reports
	  	 	66	  
	 Section 8.13
	  	 Title Information
	  	 	67	  
	 Section 8.14
	  	 Additional Collateral
	  	 	68	  
	 Section 8.15
	  	 ERISA Compliance
	  	 	68	  
	 Section 8.16
	  	 New Subsidiary Requirements
	  	 	68	  
	 Section 8.17
	  	 Establishment and Maintenance of Accounts
	  	 	69	  
		
	 ARTICLE IX Negative Covenants
	  	 	69	  
	 Section 9.01
	  	 Financial Covenants
	  	 	69	  
	 Section 9.02
	  	 Debt
	  	 	70	  
	 Section 9.03
	  	 Liens
	  	 	70	  
	 Section 9.04
	  	 Restricted Payments
	  	 	71	  

  
 -ii-

							
	 Section 9.05
	  	 Investments, Loans and Advances
	  	 	71	  
	 Section 9.06
	  	 Nature of Business; International Operations
	  	 	72	  
	 Section 9.07
	  	 Limitation on Leases
	  	 	72	  
	 Section 9.08
	  	 Proceeds of Notes/Loans
	  	 	73	  
	 Section 9.09
	  	 Sale or Discount of Receivables
	  	 	73	  
	 Section 9.10
	  	 Mergers, Etc.
	  	 	73	  
	 Section 9.11
	  	 Sale of Assets
	  	 	73	  
	 Section 9.12
	  	 Environmental Matters
	  	 	74	  
	 Section 9.13
	  	 Transactions with Affiliates
	  	 	74	  
	 Section 9.14
	  	 Subsidiaries
	  	 	75	  
	 Section 9.15
	  	 Negative Pledge Agreements; Dividend Restrictions
	  	 	75	  
	 Section 9.16
	  	 Gas Imbalances, Take-or-Pay or Other Prepayments
	  	 	76	  
	 Section 9.17
	  	 Swap Agreements
	  	 	76	  
	 Section 9.18
	  	 Sale and Leaseback Transactions
	  	 	77	  
		
	 ARTICLE X Events of Default; Remedies
	  	 	77	  
	 Section 10.01
	  	 Events of Default
	  	 	77	  
	 Section 10.02
	  	 Remedies
	  	 	79	  
		
	 ARTICLE XI The Administrative Agent
	  	 	80	  
	 Section 11.01
	  	 Appointment; Powers
	  	 	80	  
	 Section 11.02
	  	 Duties and Obligations of Administrative Agent
	  	 	80	  
	 Section 11.03
	  	 Action by Administrative Agent
	  	 	81	  
	 Section 11.04
	  	 Reliance by Administrative Agent
	  	 	81	  
	 Section 11.05
	  	 Subagents
	  	 	82	  
	 Section 11.06
	  	 Resignation or Removal of Administrative Agent
	  	 	82	  
	 Section 11.07
	  	 Administrative Agent as Lender
	  	 	82	  
	 Section 11.08
	  	 No Reliance
	  	 	82	  
	 Section 11.09
	  	 Authority to Release Collateral and Liens
	  	 	83	  
	 Section 11.10
	  	 Filing of Proofs of Claim
	  	 	83	  
		
	 ARTICLE XII Miscellaneous
	  	 	84	  
	 Section 12.01
	  	 Notices
	  	 	84	  
	 Section 12.02
	  	 Waivers; Amendments
	  	 	85	  
	 Section 12.03
	  	 Expenses, Indemnity; Damage Waiver
	  	 	86	  
	 Section 12.04
	  	 Successors and Assigns
	  	 	88	  
	 Section 12.05
	  	 Survival; Revival; Reinstatement
	  	 	91	  
	 Section 12.06
	  	 Counterparts; Integration; Effectiveness
	  	 	91	  
	 Section 12.07
	  	 Severability
	  	 	92	  
	 Section 12.08
	  	 Right of Setoff
	  	 	92	  
	 Section 12.09
	  	 Governing Law; Jurisdiction; Consent to Service of Process
	  	 	92	  
	 Section 12.10
	  	 Headings
	  	 	93	  
	 Section 12.11
	  	 Confidentiality
	  	 	93	  
	 Section 12.12
	  	 Exculpation Provisions
	  	 	94	  
	 Section 12.13
	  	 No Third Party Beneficiaries
	  	 	94	  
	 Section 12.14
	  	 Collateral Matters; Swap Agreements
	  	 	95	  
	 Section 12.15
	  	 US Patriot Act Notice
	  	 	95	  
	 Section 12.16
	  	 Interest Rate Limitation
	  	 	95	  

  
 -iii-

			
	 Annex 1
	  	 List of Maximum Credit Amounts

		
	 Exhibit A
	  	 Form of Note

	 Exhibit B
	  	 Form of Borrowing Request

	 Exhibit C
	  	 Form of Interest Election Request

	 Exhibit D
	  	 Form of Compliance Certificate

	 Exhibit E
	  	 Form of Assignment and Assumption

		
	 Schedule 6.03
	  	 Title Opinion Properties

	 Schedule 7.01
	  	 Corporate Organizational Chart

	 Schedule 7.05
	  	 Litigation

	 Schedule 7.14
	  	 Subsidiaries

	 Schedule 7.16
	  	 Title Exceptions to Properties

	 Schedule 7.18
	  	 Gas Imbalances

	 Schedule 7.19
	  	 Marketing Contracts

	 Schedule 7.20
	  	 Swap Agreements

	 Schedule 9.02
	  	 Existing Debt

	 Schedule 9.03
	  	 Liens

	 Schedule 9.05
	  	 Investments

  
 -iv-

 This Credit Agreement, dated as of December 24, 2010 (the
“Effective Date”), is among BLACK ELK ENERGY OFFSHORE OPERATIONS, LLC, a Texas limited liability company (the “Borrower”), each of the Lenders from time to time party hereto, CAPITAL ONE, N.A. (in its individual
capacity, “Capital One”), as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”). 

R E C I T A L S 
 A. The Borrower has requested that the Lenders and the Issuing Bank provide certain loans to and extensions of credit on behalf of the Borrower. 

B. The Lenders have agreed to make such loans and extensions of credit subject to the terms and conditions of this
Agreement. 
 C. In consideration of the mutual covenants and agreements herein contained and of the loans,
extensions of credit and commitments hereinafter referred to, the parties hereto agree as follows: 
 ARTICLE I

 Definitions and Accounting Matters 

Section 1.01 Terms Defined Above. 

As used in this Agreement, each term defined above has the meaning indicated above. 

Section 1.02 Certain Defined Terms. 

As used in this Agreement, the following terms have the meanings specified below: 

“ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans
comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate. 

“Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, an
interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate. 

“Administrative Agent” has the meaning given in the introductory paragraph. 

“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the
Administrative Agent. 
 “Affected Loans” has the meaning assigned to such term in Section
5.05. 
 “Affiliate” means, with respect to a specified Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified. 

 “Aggregate Maximum Credit Amounts” at any time shall equal
the sum of the Maximum Credit Amounts, as the same may be increased, reduced or terminated pursuant to Section 2.06. The initial Aggregate Maximum Credit Amount of the Lenders is $35,000,000. 

“Agreement” means this Credit Agreement, as the same may from time to time be amended, modified,
supplemented or restated. 
 “Alternate Base Rate” means, for any day, a
rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus
 1/2 of 1% and (c) the LIBO Rate for a one
month interest period in effect on such day plus the Applicable Margin in effect on such day for Eurodollar Loans. Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the LIBO Rate shall be
effective from and including the effective day of such change in the Prime Rate, the Federal Funds Effective Rate and the LIBO Rate, respectively. 
 “Applicable Margin” means, for any day, with respect to any ABR Loan or Eurodollar Loan, or with respect to the Commitment Fee Rate, as the case may be, the rate per annum set forth in
the Borrowing Base Utilization Grid below based upon the Borrowing Base Utilization Percentage then in effect: 
  

																	
	 Borrowing Base Utilization
 Percentage
	  	<50%	 	 	350% <75%	 	 	375% <90%	 	 	390%	 
	 ABR Loans
	  	 	1.25	% 	 	 	1.50	% 	 	 	1.75	% 	 	 	2.00	% 
	 Eurodollar Loans
	  	 	2.75	% 	 	 	3.00	% 	 	 	3.25	% 	 	 	3.50	% 
	 Commitment Fee Rate
	  	 	0.50	% 	 	 	0.50	% 	 	 	0.50	% 	 	 	0.50	% 

 Each change in the
Applicable Margin shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change; provided, however, that if at any time the
Borrower fails to deliver a Reserve Report pursuant to Section 8.12(a), then the “Applicable Margin” means the rate per annum set forth on the grid when the Borrowing Base Utilization Percentage is at its highest level;
provided further that the Applicable Margin shall revert to the previous Applicable Margin upon the Borrower’s delivery of such Reserve Report. 

“Applicable Percentage” means, with respect to any Lender, the percentage of the Aggregate Maximum
Credit Amounts represented by such Lender’s Maximum Credit Amount as such percentage is set forth on Annex I or in an Assignment and Assumption Agreement, as the case may be. 

“Approved Counterparty” means (a) any Lender or any Affiliate of a Lender or (b) any other
Person whose long term senior unsecured debt rating at the time of entry into the applicable Swap Agreement is A-/A3 by S&P or Moody’s (or their equivalent) or higher. 

“Approved Fund” means (a) a CLO or (b) with respect to any Lender that is a fund which invests
in bank loans and similar extensions of credit, any other fund that invests in bank loans and similar extensions of credit and is managed by the same investment advisor as such Lender or by an Affiliate of such investment advisor. 

  
 -2-

 “Approved Petroleum Engineers” means an independent
petroleum engineer proposed by the Borrower and approved by the Administrative Agent. 
 “Assignment and
Assumption” means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 12.04(b)), and accepted by the Administrative Agent, in the form of
Exhibit E or any other form approved by the Administrative Agent. 
 “Availability
Period” means the period from and including the Effective Date to but excluding the Termination Date. 

“Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange
Act, except that in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will be deemed to have beneficial ownership of all securities
that such “person” has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition. The terms “Beneficially
Owns” and “Beneficially Owned” have correlative meanings. 
 “Board” means the
Board of Governors of the Federal Reserve System of the United States of America or any successor Governmental Authority. 
 “Board of Directors” means: 
 (a)
with respect to a corporation, the board of directors of the corporation; 
 (b) with respect to
a partnership, the board of directors of the general partner of the partnership; 
 (c) with
respect to any other Person, the board or committee of such Person serving a similar function. 

“Borrower” has the meaning given in the introductory paragraph. 

“Borrowing” means Loans of the same Type, made, converted or continued on the same date and, in the case
of Eurodollar Loans, as to which a single Interest Period is in effect. 
 “Borrowing Base”
means at any time an amount equal to the amount determined in accordance with Section 2.07, as the same may be adjusted from time to time pursuant to Section 8.13(c) or Section 9.11. The initial Borrowing Base is $35,000,000.

 “Borrowing Base Utilization Percentage” means, as of any day, the fraction expressed as a
percentage, the numerator of which is the sum of the Credit Exposures of the Lenders on such day, and the denominator of which is the Borrowing Base in effect on such day. 

“Borrowing Request” means a request by the Borrower for a Borrowing in accordance with Section
2.03. 

  
 -3-

 “BP Intercreditor Agreement” means that certain
intercreditor agreement dated of even date herewith by and among Administrative Agent, BP Corporation North America Inc. and Borrower. 
 “BP Swap Agreement” means that certain ISDA Master Agreement dated October 1, 2009 by and between Borrower and BP Corporation North America Inc., and the confirmations entered
into pursuant thereto. 
 “Business Day” means any day that is not a Saturday, Sunday or other
day on which commercial banks in Houston, Texas, are authorized or required by law to remain closed; and if such day relates to a Borrowing or continuation of, a payment or prepayment of principal of or interest on, or a conversion of or into, or
the Interest Period for, a Eurodollar Loan or a notice by the Borrower with respect to any such Borrowing or continuation, payment, prepayment, conversion or Interest Period, any day which is also a day on which dealings in dollar deposits are
carried out in the London interbank market. 
 “Capital Lease Obligation” means, at the time
any determination is to be made, the amount of the liability in respect of a capital lease that would at that time be required to be capitalized on a balance sheet prepared in accordance with GAAP, and the stated maturity thereof shall be the date
of the last payment of rent or any other amount due under such lease prior to the first date upon which such lease may be prepaid by the lessee without payment of a penalty. 

“Capital One” has the meaning given it the introductory paragraph. 

“Casualty Event” means any loss, casualty or other insured damage to, or any nationalization, taking
under power of eminent domain or by condemnation or similar proceeding of, any Property of the Borrower or any of its Subsidiaries having a fair market value in excess of $1,000,000. 

“Change in Control” means the occurrence of any of the following: 

(a) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets (including Equity Interest) of the Borrower and its Subsidiaries taken as a whole to any “person” (as that term
is used in Section 13(d)(3) of the Exchange Act) other than one or more Permitted Holders; 

(b) the adoption of a plan relating to the liquidation or dissolution of the Borrower; 

(c) the consummation of any transaction (including, without limitation, any merger or consolidation) the
result of which is that any “person” or “group” (as that term is used in Section 13(d)(3) of the Exchange Act), other than one or more Permitted Holders, becomes the Beneficial Owner, directly or indirectly, of more than 25%
of the Equity Interest of the Borrower other than, with respect to a merger or consolidation, a transaction in which the Equity Interest of the Borrower outstanding immediately prior to such transaction is converted into or exchanged for Equity
Interest (other than 

  
 -4-

 
Disqualified Capital Stock) of the surviving or transferee Person (or any parent thereof) constituting a majority of the outstanding shares, units or the like, of such Equity Interest of such
surviving or transferee Person (or any parent thereof) immediately after giving effect to such transaction; 
 (d) the first day on which 33 1/3% or more of the members of the Board of Directors of the Borrower are not Continuing Directors; 

(e) the first day on which John Hoffman, the chief executive officer of the Borrower as of the Effective
Date, is no longer a manager of the Borrower for any reason other than (i) John Hoffman’s death or his “Disability” as defined in his employment agreement with the Borrower as in effect on the Effective Date or (ii) his
termination for “cause” pursuant to the terms of such employment agreement as in effect on the Effective Date; or 
 (f) the first day on which James Hagemeier, the chief financial officer of the Borrower as of the Effective Date, is no longer a manager of the Borrower for any reason other than (i) James
Hagemeier’s death or his “Disability” as defined in his employment agreement with the Borrower as in effect on the Effective Date or (ii) his termination for “cause” pursuant to the terms of such employment agreement as
in effect on the Effective Date. 
 Notwithstanding the preceding, a conversion (whether by merger, statutory
conversion or otherwise) of the Borrower from a limited liability company to a corporation, or an exchange of all of the outstanding memberships interests in the Borrower for Equity Interest in a corporation, shall not constitute a Change of
Control, so long as following such merger, conversion or exchange the “persons” (as that term is used in Section 13(d)(3) of the Exchange Act) who Beneficially Owned the Equity Interest of the Borrower immediately prior to such
transaction continue to Beneficially Own in the aggregate sufficient Equity Interest of such successor corporation to elect a majority of its directors. 
 “Change in Law” means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any Lender or any Issuing Bank (or, for purposes of Section 5.01(b)), by any lending office of such Lender or by such Lender’s
or such Issuing Bank’s holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement. 

“CLO” means any Person (other than a natural Person) that is engaged in making, purchasing, holding or
otherwise investing in bank loans and similar extensions of credit in the ordinary course of its business and is administered or managed by a Lender or an Affiliate of such Lender. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute.

  
 -5-

 “Commitment” means, with respect to each Lender, the
commitment of such Lender to make Loans and to acquire participations in Letters of Credit hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s Credit Exposure hereunder, as such commitment may be
(a) modified from time to time pursuant to Section 2.06 and (b) modified from time to time pursuant to assignments by or to such Lender pursuant to Section 12.04(b), and “Commitments” means the aggregate
amount of the Commitments of all the Lenders. The amount representing each Lender’s Commitment shall at any time be the lesser of (i) such Lender’s Maximum Credit Amount and (ii) such Lender’s Applicable Percentage of the
then effective Borrowing Base. The aggregate of the Commitments on the Effective Date is $35,000,000. 

“Commitment Fee Rate” has the meaning set forth in the definition of “Applicable
Margin”. 
 “Consolidated EBITDAX” for any period means, without duplication, the
Consolidated Net Income for such period, plus the following, without duplication and to the extent deducted (and not added back) in calculating such Consolidated Net Income: 

(a) Consolidated Interest Expense; 

(b) Consolidated Income Tax Expense; 

(c) consolidated depletion and depreciation expense of the Borrower and its Restricted Subsidiaries;

 (d) consolidated amortization expense or impairment charges of the Borrower and its Restricted
Subsidiaries recorded in connection with the application of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 350, Intangibles-Goodwill and Other (formerly Statement of Financial Accounting Standard No. 142,
“Goodwill and Other Intangibles” and Statement of Financial Accounting Standard No. 144, “Accounting for the Impairment or Disposal of Long Lived Assets”); 

(e) accretion of asset retirement obligations and other non-cash charges of the Borrower and its
Restricted Subsidiaries (excluding any such non-cash charge to the extent it represents an accrual of or reserve for cash charges in any future period or amortization of a prepaid cash expense that was paid in a prior period not included in the
calculation); 
 (f) so long as the Borrower uses successful efforts or a similar method of
accounting for its Oil and Gas Properties, consolidated exploration expense of the Borrower and its Restricted Subsidiaries; and 
 if applicable for such period; and less, to the extent included in calculating such Consolidated Net Income and in excess of any costs or expenses attributable thereto that were deducted (and not added
back) in calculating such Consolidated Net Income, the sum of (x) the amount of deferred revenues that are amortized during such period and are attributable to reserves that are subject to Volumetric Production Payments, (y) amounts
recorded in accordance with GAAP as repayments of principal and interest pursuant to Dollar-Denominated Production Payments and 

  
 -6-

 
(z) other non-cash gains (excluding any non-cash gain to the extent it represents the reversal of an accrual or reserve for a potential cash item that reduced Consolidated EBITDAX in any prior
period). Notwithstanding the foregoing, Consolidated EBITDAX shall be Consolidated Net Income plus the aforementioned expenses or charges (i) for the most recently ended quarter multiplied by four (4) with respect to the quarter ended
December 31, 2010, (ii) for the most recently ended two (2) quarters multiplied by two (2) with respect to the quarter ended March 31, 2011, and (iii) for the most recently ended three (3) quarters multiplied by
four thirds (4/3) with respect to the quarter ended June 30, 2011. 
 “Consolidated Income Tax
Expense” means, with respect to any period, the provision for federal, state, local and foreign taxes (including state franchise taxes) based on income of the Borrower and its Restricted Subsidiaries for such period as determined in
accordance with GAAP, or (for any period in which the Borrower is a partnership or limited liability Borrower) the Tax Amount for such period. 
 “Consolidated Interest Expense” means, for any period, the total consolidated interest expense of the Borrower and its Restricted Subsidiaries, determined on a consolidated basis in
accordance with GAAP, plus, to the extent not included in such interest expense and without duplication: 
 (a) interest expense for such period attributable to Capital Lease Obligations and the interest component of any deferred payment obligations; 

(b) amortization of debt discount and debt issuance cost (provided that any amortization of bond premium
will be credited to reduce Consolidated Interest Expense unless, pursuant to GAAP, such amortization of bond premium has otherwise reduced Consolidated Interest Expense); 

(c) non-cash interest expense; 

(d) commissions, discounts and other fees and charges owed with respect to letters of credit and
bankers’ acceptance financing; 
 (e) the interest expense on Debt of another Person that is
guaranteed by the Borrower or one of its Restricted Subsidiaries or secured by a lien on assets of the Borrower or one of its Restricted Subsidiaries, to the extent such guarantee becomes payable or such lien becomes subject to foreclosure;

 (f) costs associated with interest rate obligations under Swap Agreements (including
amortization of fees); provided, however, that if such interest rate obligations under Swap Agreements result in net benefits rather than costs, such benefits shall be credited to reduce Consolidated Interest Expense unless, pursuant
to GAAP, such net benefits are otherwise reflected in Consolidated Net Income; 
 (g) the
consolidated interest expense of the Borrower and its Restricted Subsidiaries that was capitalized during such period; and 

  
 -7-

 (h) all dividends paid or payable in cash, cash equivalents
or Debt or dividends accrued during such period on any series of Disqualified Capital Stock of the Borrower or on preferred stock of its Restricted Subsidiaries payable to a party other than the Borrower or a Wholly-Owned Subsidiary; 

minus, to the extent included above, write-off of deferred financing costs (and interest) attributable to Dollar-Denominated Production
Payments. 
 “Consolidated Net Income” means, for any period, the aggregate net income (loss)
of the Borrower and its consolidated Subsidiaries determined in accordance with GAAP and before any reduction in respect of preferred stock dividends of such Person, less (for any period the Borrower is a partnership or limited liability Borrower)
the Tax Amount for such period; provided, however, that there will not be included (to the extent otherwise included therein) in such Consolidated Net Income: 

(a) any net income (loss) of any Person (other than the Borrower) if such Person is not a Restricted
Subsidiary, except that: 
 (i) subject to the limitations contained in clauses (c) and
(d) below, the Borrower’s equity in the net income of any such Person for such period will be included in such Consolidated Net Income up to the aggregate amount of cash actually distributed by such Person during such period to the
Borrower or a Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution to a Restricted Subsidiary, to the limitations contained in clause (b) below); and 

(ii) the Borrower’s equity in a net loss of any such Person for such period will be included in
determining such Consolidated Net Income to the extent such loss has been funded with cash from the Borrower or a Restricted Subsidiary during such period; 

(b) any net income (but not loss) of any Restricted Subsidiary if such Subsidiary is subject to
restrictions, directly or indirectly, on the payment of dividends or the making of distributions by such Restricted Subsidiary, directly or indirectly, to the Borrower, except that: 

(i) subject to the limitations contained in clauses (c), (d) and (e) below, the Borrower’s
equity in the net income of any such Restricted Subsidiary for such period will be included in such Consolidated Net Income up to the aggregate amount of cash that could have been distributed by such Restricted Subsidiary during such period to the
Borrower or another Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution paid to another Restricted Subsidiary, to the limitation contained in this clause); and 

(ii) the Borrower’s equity in a net loss of any such Restricted Subsidiary for such period will be
included in determining such Consolidated Net Income; 

  
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 (c) any gain (loss) realized upon the sale or other
disposition of any property, plant or equipment of the Borrower or its consolidated Subsidiaries which is not sold or otherwise disposed of in the ordinary course of business and any gain (loss) realized upon the sale or other disposition of any
Equity Interest of any Person; 
 (d) any extraordinary or nonrecurring gains or losses or
nonrecurring other income or expenses, together with any related provision for taxes (and, without duplication, any Restricted Payment for taxes permitted in Section 9.04) on such gains or losses or other income or expenses and all
related fees and expenses; 
 (e) the cumulative effect of a change in accounting principles;

 (f) any asset impairment write-downs, including ceiling test writedowns, on oil and gas
properties under GAAP or SEC guidelines; 
 (g) any unrealized non-cash gains or losses or
charges in respect of obligations under Swap Agreements (including those resulting from the application of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 815); 

(h) income or loss attributable to discontinued operations (including, without limitation, operations
disposed of during such period whether or not such operations were classified as discontinued); 

(i) all deferred financing costs written off, and premiums paid, in connection with any early
extinguishment of Indebtedness; 
 (j) any depreciation, depletion and amortization expense in
excess of capital expenditures; and 
 (k) any non-cash compensation charge arising from any
grant of stock, stock options or other equity based awards. 
 “Consolidated Subsidiaries”
means each Subsidiary of the Borrower (whether now existing or hereafter created or acquired) the financial statements of which shall be (or should have been) consolidated with the financial statements of the Borrower in accordance with GAAP.

 “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company, as applicable, who: 
 (a) was a member of such Board of Directors on
the date hereof; or 
 (b) was nominated for election or elected to such Board of Directors with
the approval of a majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election. 

  
 -9-

 “Control” means the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. For the purposes of this definition, and without limiting the generality of the
foregoing, any Person that owns directly or indirectly 25% or more of the Equity Interests having ordinary voting power for the election of the directors or other governing body of a Person (other than as a limited partner of such other Person) will
be deemed to “control” such other Person. “Controlling” and “Controlled” have meanings correlative thereto. 
 “Credit Exposure” means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s Loans and its LC Exposure at such time. 

“Debt” means, for any Person, the sum of the following (without duplication): (a) all obligations
of such Person for borrowed money or evidenced by bonds, bankers’ acceptances, debentures, notes or other similar instruments; (b) all obligations of such Person (whether contingent or otherwise) in respect of letters of credit, surety or
other bonds and similar instruments; (c) all accounts payable and all accrued expenses, liabilities or other obligations of such Person to pay the deferred purchase price of Property or services; (d) all Capital Lease Obligations;
(e) all obligations under Synthetic Leases; (f) all Debt (as defined in the other clauses of this definition) of others secured by a Lien on any Property of such Person, whether or not such Debt is assumed by such Person; (g) all Debt
(as defined in the other clauses of this definition) of others guaranteed by such Person or in which such Person otherwise assures a creditor against loss of the Debt (howsoever such assurance shall be made) to the extent of the lesser of the amount
of such Debt and the maximum stated amount of such guarantee or assurance against loss; (h) all obligations or undertakings of such Person to maintain or cause to be maintained the financial position or covenants of others or to purchase the
Debt or Property of others; (i) obligations to deliver commodities, goods or services, including, without limitation, Hydrocarbons, in consideration of one or more advance payments, other than gas balancing arrangements in the ordinary course
of business; (j) any Debt of a partnership for which such Person is liable either by agreement, by operation of law or by a Governmental Requirement but only to the extent of such liability; (k) Disqualified Capital Stock;
(l) preferred stock; and (m) the undischarged balance of any production payment created by such Person or for the creation of which such Person directly or indirectly received payment. The Debt of any Person shall include all obligations
of such Person of the character described above to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is not included as a liability of such Person under GAAP. 

“Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse
of time or both would, unless cured or waived, become an Event of Default. 
 “Defaulting
Lender” means any Lender, as determined by the Administrative Agent, that has (a) failed to fund any portion of its Loans or participations in Letters of Credit within three (3) Business Days of the date required to be funded by
it hereunder, (b) notified the Borrower, the Administrative Agent, or the Issuing Bank in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it
does not intend to comply with its funding obligations under this Agreement or under other agreements in which it commits to extend credit, (c) failed, within three (3) Business Days after request by the Administrative Agent, to confirm
that it will comply with the terms of this 

  
 -10-

 
Agreement relating to its obligations to fund prospective Loans and participations in then outstanding Letters of Credit, (d) otherwise failed to pay over to the Administrative Agent or any
other Lender any other amount required to be paid by it hereunder within three (3) Business Days of the date when due, unless the subject of a good faith dispute, or (e) (i) become or is insolvent or has a parent company that has
become or is insolvent or (ii) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or
liquidation of its business or custodian, appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment or has a parent company that has become the
subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or custodian appointed
for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment. 
 “Disqualified Capital Stock” means any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable, in each case at
the option of the holder thereof) or upon the happening of any event, matures or is mandatorily redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock), pursuant to a sinking fund
obligation or otherwise, or is convertible or exchangeable for Debt or redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock) at the option of the holder thereof, in whole or in
part, on or prior to the date that is one year after the earlier of (a) the Maturity Date and (b) the date on which there are no Loans, LC Exposure or other obligations hereunder outstanding and all of the Commitments are terminated.

 “Dollar-Denominated Production Payments” means production payment obligations recorded as
liabilities in accordance with GAAP, together with all undertakings and obligations in connection therewith. 

“dollars” or “$” refers to lawful money of the United States of America. 

“Domestic Subsidiary” means any Subsidiary that is organized under the laws of the United States of
America or any state thereof or the District of Columbia. 
 “Effective Date” means the date
first written above. 
 “Engineering Reports” has the meaning assigned such term in Section
2.07(c)(i). 
 “Environmental Laws” means any and all Governmental Requirements pertaining
in any way to health, safety, the environment or the preservation or reclamation of natural resources, in effect in any and all jurisdictions in which the Borrower or any Subsidiary is conducting or at any time has conducted business, or where any
Property of the Borrower or any Restricted Subsidiary is located, including without limitation, the Oil Pollution Act of 1990 (“OPA”), as amended, the Clean Air Act, as amended, the Comprehensive Environmental, Response,
Compensation, and Liability Act of 1980 (“CERCLA”), as amended, the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act of 1970, as amended, the

  
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Resource Conservation and Recovery Act of 1976 (“RCRA”), as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Superfund
Amendments and Reauthorization Act of 1986, as amended, the Hazardous Materials Transportation Act, as amended, and other environmental conservation or protection Governmental Requirements. The term “oil” shall have the meaning specified
in OPA, the terms “hazardous substance” and “release” (or “threatened release”) have the meanings specified in CERCLA, the terms “solid waste” and “disposal” (or “disposed”) have the
meanings specified in RCRA and the term “oil and gas waste” shall have the meaning specified in Section 91.1011 of the Texas Natural Resources Code (“Section 91.1011”); provided, however, that
(a) in the event either OPA, CERCLA, RCRA or Section 91.1011 is amended so as to broaden the meaning of any term defined thereby, such broader meaning shall apply subsequent to the effective date of such amendment and (b) to the
extent the laws of the state or other jurisdiction in which any Property of the Borrower or any Subsidiary is located establish a meaning for “oil,” “hazardous substance,” “release,” “solid waste,”
“disposal” or “oil and gas waste” which is broader than that specified in either OPA, CERCLA, RCRA or Section 91.1011, such broader meaning shall apply. 

“Equity Interests” means shares of capital stock, partnership interests, membership interests in a
limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.

 “ERISA Affiliate” means each trade or business (whether or not incorporated) that, together
with the Borrower or a Subsidiary is treated as a “single employer” under Section 414(b) or (c) of the Code, or solely for the proposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code. 
 “ERISA Event” means (a) any
“reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30 day notice period is waived); (b) the existence with respect to any
Plan of a failure to meet the minimum funding standards under Section 412 of 430 of the Code or Section 303 of ERISA; (c) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with
respect to the termination of any Plan; (d) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any
Plan; (e) the determination that any Plan is considered an “at risk” plan or a plan in endangered or critical status within the meaning of Section 430 of the Code or Section 303 of ERISA; (f) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA. 

  
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 “Eurodollar”, when used in reference to any Loan or
Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate. 

“Event of Default” has the meaning assigned such term in Section 10.01. 

“Excepted Liens” means (a) Liens for Taxes, assessments or other governmental charges or levies
which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (b) Liens in connection with workers’ compensation, unemployment
insurance or other social security, old age pension or public liability obligations which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with
GAAP; (c) statutory landlord’s liens, operators’, vendors’, carriers’, warehousemen’s, repairmen’s, mechanics’, suppliers’, workers’, materialmen’s, construction or other like Liens arising by
operation of law in the ordinary course of business or incident to the exploration, development, operation and maintenance of Oil and Gas Properties each of which is in respect of obligations that are not delinquent or which are being contested in
good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (d) contractual Liens that arise in the ordinary course of business under operating agreements, joint venture agreements, oil and gas
partnership agreements, oil and gas leases, farm-out agreements, division orders, contracts for the sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual interest agreements,
overriding royalty agreements, marketing agreements, processing agreements, net profits agreements, development agreements, gas balancing or deferred production agreements, injection, repressuring and recycling agreements, salt water or other
disposal agreements, seismic or other geophysical permits or agreements, and other agreements which are usual and customary in the oil and gas business and are for claims which are not delinquent or which are being contested in good faith by
appropriate action and for which adequate reserves have been maintained in accordance with GAAP, provided that any such Lien referred to in this clause does not materially impair the use of the Property covered by such Lien for the purposes for
which such Property is held by the Borrower or any Subsidiary or materially impair the value of such Property subject thereto; (e) Liens arising solely by virtue of any statutory or common law provision relating to banker’s liens, rights
of set-off or similar rights and remedies and burdening only deposit accounts or other funds maintained with a creditor depository institution, provided that no such deposit account is a dedicated cash collateral account or is subject to
restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Board and no such deposit account is intended by Borrower or any of its Subsidiaries to provide collateral to the depository institution;
(f) easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations in any Property of the Borrower or any Subsidiary for the purpose of roads, pipelines, transmission lines, transportation lines, distribution
lines for the removal of gas, oil, coal or other minerals or timber, and other like purposes, or for the joint or common use of real estate, rights of way, facilities and equipment, which in the aggregate do not materially impair the use of such
Property for the purposes of which such Property is held by the Borrower or any Subsidiary or materially impair the value of such Property subject thereto; (g) Liens on cash or securities pledged to secure performance of tenders, surety and
appeal bonds, government contracts, performance and return of money bonds, bids, trade contracts, leases, statutory obligations, regulatory obligations and other obligations of a like nature incurred

  
 -13-

 
in the ordinary course of business; (h) judgment and attachment Liens not giving rise to an Event of Default, provided that any appropriate legal proceedings which may have been duly
initiated for the review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated shall not have expired and no action to enforce such Lien has been commenced; and (i) Liens arising
from UCC financing statement filings regarding operating leases entered into by the Borrower and the Subsidiaries in the ordinary course of business covering only the Property under lease; provided, further that Liens described in clauses
(a) through (e) shall remain Excepted Liens only for so long as no action to enforce such Lien has been commenced and no intention to subordinate the first priority Lien granted in favor of the Administrative Agent and the Lenders is to be
hereby implied or expressed by the permitted existence of such Excepted Liens. 
 “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
 “Excluded Taxes” means,
with respect to the Administrative Agent, any Lender, any Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder or under any other Loan Document, (a) income or franchise taxes
imposed on (or measured by) its net income by the United States of America or such other jurisdiction under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction in which the Borrower is located and (c) in the case of a Foreign Lender (other
than an assignee pursuant to a request by the Borrower under Section 5.04(b)), any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates
a new lending office) or is attributable to such Foreign Lender’s failure to comply with Section 5.03(e), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts with respect to such withholding tax pursuant to Section 5.03(a) or Section 5.03(c). 
 “Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, New York or, if such rate is not so published for any day that is a Business Day, the
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it. 

“Fee Letter” means any letter agreement executed in connection with a syndication of this credit
facility by the Borrower and the Administrative Agent pertaining to certain fees payable to the Administrative Agent. 
 “Financial Officer” means, for any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person. Unless otherwise specified, all references
herein to a Financial Officer means a Financial Officer of the Borrower. 

  
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 “Financial Statements” means the financial statement or
statements of the Borrower and its Consolidated Subsidiaries referred to in Section 7.04(a). 

“Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than that in
which the Borrower is located. For purposes of this definition, the United States of America, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 

“Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary. 

“GAAP” means generally accepted accounting principles in the United States of America as in effect from
time to time subject to the terms and conditions set forth in Section 1.05. 
 “Governmental
Authority” means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government over the Borrower, any Subsidiary, any of their Properties, the Administrative Agent, any Issuing Bank or any
Lender. 
 “Governmental Requirement” means any applicable law, statute, code, ordinance,
order, determination, rule, regulation, judgment, decree, injunction, franchise, permit, certificate, license, authorization or other directive or requirement, whether now or hereinafter in effect, including, without limitation, Environmental Laws,
energy regulations and occupational, safety and health standards or controls, of any Governmental Authority. 

“Guaranty” means the Guaranty executed by the Guarantors of even date herewith. 

“Guarantor” means all Restricted Subsidiaries of Borrower. 

“Highest Lawful Rate” means, as to any Lender, the maximum non-usurious interest rate, if any (or, if
the context so requires, an amount calculated at such rate), that at any time or from time to time may be contracted for, taken, reserved, charged, or received by such Lender under applicable laws with respect to an obligation, as such laws are
presently in effect or, to the extent allowed by applicable law, as such laws may hereafter be in effect and which allow a higher maximum non-usurious interest rate than such laws now allow. The determination of the Highest Lawful Rate shall, to the
extent required by applicable law, take into account as interest paid, taken, received, charged, reserved or contracted for any and all relevant payments or charges under the Loan Documents. 

“Hydrocarbon Interests” means all rights, titles, interests and estates now or hereafter acquired in and
to oil and gas leases, oil, gas and mineral leases, or other liquid or gaseous hydrocarbon leases, mineral fee interests, overriding royalty and royalty interests, net profit interests and production payment interests, including any reserved or
residual interests of whatever nature. 

  
 -15-

 “Hydrocarbons” means oil, gas, casinghead gas, drip
gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all products refined or separated therefrom. 
 “Indemnified Taxes” means Taxes other than Excluded Taxes. 
 “Indenture” means that certain Indenture dated November 23, 2010 by and among Black Elk Energy Offshore Operations, LLC and Black Elk Energy Finance Corp. as Issuers, each of the
guarantors party thereto and The Bank of New York Mellon Trust Company, N.A., as Trustee and Collateral Agent, pursuant to which certain 13.75% Senior Secured Notes due 2015 are issued. 

“Indenture Trustee” means the trustee under the Indenture. 

“Interest Election Request” means a request by the Borrower to convert or continue a Borrowing in
accordance with
 Section 2.04. 
 “Interest Payment Date” means (a) with respect
to any ABR Loan, the last day of each calendar month and (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part. 

“Interest Period” means with respect to any Eurodollar Borrowing, the period commencing on the date of
such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two or three months thereafter, as the Borrower may elect; provided, that (a) if any Interest Period would end on a day other than a
Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day
and (b) any Interest Period pertaining to a Eurodollar Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period)
shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most
recent conversion or continuation of such Borrowing. 
 “Interim Redetermination” means any
redetermination of the Borrowing Base under Section 2.07(b)(ii) or Section 2.07(b)(iii). 

“Interim Redetermination Date” means the date on which a Borrowing Base that has been redetermined
pursuant to an Interim Redetermination becomes effective as provided in Section 2.07(d). 

“Investment” means, for any Person: (a) the acquisition (whether for cash, Property, services or
securities or otherwise) of Equity Interests of any other Person or any agreement to make any such acquisition (including, without limitation, any “short sale” or any sale of any securities at a time when such securities are not
owned by the Person entering into such short sale) or any capital contribution to any other Person; (b) the making of any deposit with, or advance, loan or capital contribution to, assumption of Debt of, purchase or other acquisition of

  
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any other Debt or equity participation or interest in, or other extension of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or
agreement, contingent or otherwise, to resell such Property to such Person); or (c) the entering into of any guarantee of, or other contingent obligation (including the deposit of any Equity Interests to be sold) with respect to, Debt or other
liability of any other Person and (without duplication) any amount committed to be advanced, lent or extended to such Person. 
 “Issuing Bank” means Capital One. 
 “LC
Commitment” at any time means Five Million Dollars ($5,000,000). 
 “LC Disbursement”
means a payment made by any Issuing Bank pursuant to a Letter of Credit issued by such Issuing Bank. 

“LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding
Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Lender at any time shall be its Applicable Percentage of
the total LC Exposure at such time. 
 “LC Facility” means that certain Letter of Credit
Facility Agreement dated of even date herewith by and among Borrower, Administrative Agent and the lenders signatory thereto wherein the lenders agreed to issue letters of credit for plugging and abandonment liabilities and obligations. 

“Lenders” means the Persons listed on Annex I, any Person that shall have become a party hereto
pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption. 
 “Letter of Credit” means any letter of credit issued pursuant to this Agreement. 
 “Letter of Credit Agreements” means all letter of credit applications and other agreements (including any amendments, modifications or supplements thereto) submitted by the Borrower, or
entered into by the Borrower, with any Issuing Bank relating to any Letter of Credit issued by such Issuing Bank. 
 “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, the rate appearing on Reuters BBA Libor Rates LIBOR01 (or on any successor or substitute page of such
service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided on such page of such service, as determined by the Administrative Agent from time to time for purposes of providing
quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity
comparable to such Interest Period; provided, in no event shall the LIBO Rate be less than 1%. In the event that such rate is not available at such time for any reason, then the LIBO Rate with respect to such Eurodollar Borrowing for such
Interest Period shall be the rate at which dollar deposits of $5,000,000 and, in each case, for a maturity comparable to such Interest Period are offered by the principal London office of the Administrative Agent in immediately available funds in
the London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period. 

  
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 “Lien” means any interest in Property securing an
obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to
(a) the lien or security interest arising from a mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes or (b) royalties, production payments and the
like payable out of Oil and Gas Properties. The term “Lien” shall include easements, restrictions, servitudes, permits, conditions, covenants, encroachments, exceptions or reservations. For the purposes of this Agreement, the
Borrower and its Subsidiaries shall be deemed to be the owner of any Property which it has acquired or holds subject to a conditional sale agreement, or leases under a financing lease or other arrangement pursuant to which title to the Property has
been retained by or vested in some other Person in a transaction intended to create a financing. 

“Loan Documents” means this Agreement, the Notes, the Letter of Credit Agreements, the Letters of
Credit, the Security Instruments, the Guaranties, the BP Intercreditor Agreement, the W&T Intercreditor Agreement and Second Lien Intercreditor Agreement. 
 “Loan Parties” means the Borrower and each Subsidiary that is a party to any Loan Document. 
 “Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement. 
 “Material Adverse Effect” means a material adverse effect on (a) the business, operations, Property or condition (financial or otherwise) of the Borrower and the Subsidiaries taken
as a whole, (b) the ability of any Loan Party to perform any of its obligations under any Loan Document, (c) the validity or enforceability of any Loan Document or (d) the rights and remedies of or benefits available to the
Administrative Agent, any Issuing Bank or any Lender under any Loan Document. 
 “Material
Indebtedness” means (i) the Senior Notes, (ii) the LC Facility, (iii) obligations in respect of the BP Swap Agreement and (iv) other Debt (other than the Loans and Letters of Credit), or obligations in respect of one or
more Swap Agreements, of any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $250,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the
Borrower or any Subsidiary in respect of any Swap Agreement including the BP Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary would be required to pay if
such Swap Agreement were terminated at such time. 
 “Maturity Date” means December 24,
2013. 
 “Maximum Credit Amount” means, as to each Lender, the amount set forth opposite such
Lender’s name on Annex I under the caption “Maximum Credit Amounts,” as the same may be (a) reduced or terminated from time to time in connection with a reduction or termination of the Aggregate Maximum Credit Amounts
pursuant to Section 2.06(b), or (b) modified from time to time pursuant to any assignment permitted by Section 12.04(b). 

  
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 “Moody’s” means Moody’s Investors Service, Inc.
and any successor thereto that is a nationally recognized rating agency. 
 “Mortgaged
Property” means any Property owned by the Borrower or any Restricted Subsidiary that is subject to the Liens existing and to exist under the terms of the Security Instruments. 

“Mortgages” means all mortgages and deeds of trust executed in connection herewith. 

“Multiemployer Plan” means a Plan which is a multiemployer plan as defined in Section 4001(a)(3) of
ERISA. 
 “New Borrowing Base Notice” has the meaning assigned such term in Section
2.07(d). 
 “Notes” means the promissory notes of the Borrower described in Section
2.02(d) and being substantially in the form of
 Exhibit A, together with all amendments, modifications, replacements, extensions and rearrangements thereof. 

“Obligations” means, without duplication, (a) all Debt evidenced hereunder, (b) the obligation
of the Loan Parties for the payment of the fees payable hereunder or under the other Loan Documents, (c) all other obligations and liabilities of the Borrower to any then current Lender or Affiliate of a then current Lender relating to Swap
Agreements between the Borrower or any Subsidiary and such Lender or Affiliate of a Lender initially entered into while such person (or in the case of its Affiliate, the Person affiliated therewith) is a Lender hereunder, and (d) all other
obligations and liabilities (monetary or otherwise, whether absolute or contingent, matured or unmatured) of the Loan Parties to the Administrative Agent, the Issuer and the Lenders, including reimbursement obligations with respect to LC
Disbursements, in each case now existing or hereafter incurred under, arising out of or in connection with any Loan Document, and to the extent that any of the foregoing includes or refers to the payment of amounts deemed or constituting interest,
only so much thereof as shall have accrued, been earned and which remains unpaid at each relevant time of determination. 
 “Oil and Gas Properties” means (a) Hydrocarbon Interests; (b) Properties now or hereafter pooled or unitized with Hydrocarbon Interests; (c) all presently existing or
future unitization, pooling agreements and declarations of pooled units and the units created thereby (including without limitation all units created under orders, regulations and rules of any Governmental Authority) which may affect all or any
portion of Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements, including production sharing contracts and agreements, which relate to any of Hydrocarbon Interests or the production, sale, purchase, exchange or
processing of Hydrocarbons from or attributable to such Hydrocarbon Interests; (e) all Hydrocarbons in and under and which may be produced and saved or attributable to the Hydrocarbon Interests, including all oil in tanks, and all rents,
issues, profits, proceeds, products, revenues and other incomes from or attributable to Hydrocarbon Interests; (f) all tenements, hereditaments, appurtenances and Properties in any manner appertaining, belonging, affixed or

  
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incidental to Hydrocarbon Interests and (g) all Properties, rights, titles, interests and estates described or referred to above, including any and all Property, real or personal, now owned
or hereinafter acquired and situated upon, used, held for use or useful in connection with the operating, working or development of any of such Hydrocarbon Interests or Property (excluding drilling rigs, automotive equipment, rental equipment or
other personal Property which may be on such premises for the purpose of drilling a well or for other similar temporary uses) and including any and all oil wells, gas wells, injection wells or other wells, buildings, structures, fuel separators,
liquid extraction plants, plant compressors, pumps, pumping units, field gathering systems, tanks and tank batteries, fixtures, valves, fittings, machinery and parts, engines, boilers, meters, apparatus, equipment, appliances, tools, implements,
cables, wires, towers, casing, tubing and rods, surface leases, rights-of-way, easements and servitudes together with all additions, substitutions, replacements, accessions and attachments to any and all of the foregoing. 

“Other Taxes” means any and all present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement and any other Loan Document. 

“Participant” has the meaning set forth in Section 12.04(c)(i). 

“Patriot Act” has the meaning set forth in Section 12.15. 

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA, and any
successor entity performing similar functions. 
 “Permitted Holders” means any Beneficial
Owner of Equity Interest of the Borrower on the Effective Date. 
 “Person” means any natural
person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity. 
 “Permitted Tax Distributions” means for any calendar year or portion thereof of the Borrower during which it is a pass-through entity for U.S. federal income tax purposes, payments and
distributions to the members of the Borrower on each estimated payment date as well as each other applicable due date to enable the members of the Borrower (or, if any of them are themselves a pass-through entity for U.S. federal income tax
purposes, their shareholders, members or partners) to make payments of U.S. federal and state income taxes (including estimates thereof) as a result of the operations of the Borrower and its Subsidiaries during the current and any previous calendar
year, not to exceed an amount equal to the amount of each such member’s (or, in the case of a pass-through entity, its shareholders’, members’ or partners’) U.S. federal and state income tax liability resulting solely from the
pass-through tax treatment of such member’s interest in the Borrower. 
 “Plan” means any
employee pension benefit plan (other than a Multiemployer Plan), subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if such
plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 

  
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 “PPVA” means Platinum Partners Value Arbitrage Fund L.P.

 “Prime Rate” means the prime rate of interest published by the Wall Street Journal from time
to time; each change in the Prime Rate shall be effective from and including the date such change is published as being effective. 
 “Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and
contract rights. 
 “Proposed Borrowing Base” has the meaning assigned to such term in
Section 2.07(c)(i). 
 “Proposed Borrowing Base Notice” has the meaning assigned to such
term in Section 2.07(c)(ii). 
 “Redemption” means with respect to any Debt, the
repurchase, redemption, prepayment, repayment or defeasance (or the segregation of funds with respect to any of the foregoing) of such Debt. “Redeem” has the correlative meaning thereto. 

“Redetermination Date” means, with respect to any Scheduled Redetermination or any Interim
Redetermination, the date that the redetermined Borrowing Base related thereto becomes effective pursuant to Section 2.07(d). 
 “Register” has the meaning assigned such term in Section 12.04(b)(iv). 
 “Regulation D” means Regulation D of the Board, as the same may be amended, supplemented or replaced from time to time. 

“Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the
respective directors, officers, employees, agents and advisors (including attorneys, accountants and experts) of such Person and such Person’s Affiliates. 
 “Remedial Work” has the meaning assigned such term in Section 8.10(a). 
 “Required Lenders” means, at any time while no Loans or LC Exposure is outstanding, Lenders having at least sixty-six and two thirds percent (66 2/3%) of the Aggregate Maximum Credit Amounts; and at any time while
any Loans or LC Exposure is outstanding, Lenders holding at least sixty-six and two thirds percent
(66 2/3%) of the outstanding aggregate principal
amount of the Loans or participation interests in Letters of Credit (without regard to any sale by a Lender of a participation in any Loan under
 Section 12.04(c)). 

“Reserve Report” means a report, in form and substance reasonably satisfactory to the Administrative
Agent, setting forth, as of each January 1st or July 1st (or such other date in the event of an Interim Redetermination) the oil and gas reserves attributable to the proved Oil and Gas Properties of the Borrower and the Restricted
Subsidiaries, together with a projection of the 

  
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rate of production and future net income, taxes, operating expenses and capital expenditures with respect thereto as of such date, based upon the pricing assumptions consistent with SEC reporting
requirements at the time, and reflecting Swap Agreements in place with respect to such production. 

“Responsible Officer” means, as to any Person, the Chief Executive Officer, the Chief Operating Officer,
the President, any Financial Officer or any Vice President of such Person. Unless otherwise specified, all references to a Responsible Officer herein shall mean a Responsible Officer of the Borrower. 

“Restricted Payment” means: 

(a) any dividend or any other payment or distribution on account of the Borrower’s or any of its Restricted
Subsidiaries’ Equity Interests (including, without limitation, any payment in connection with any merger or consolidation involving the Borrower or any of its Restricted Subsidiaries) or to the direct or indirect holders of the Borrower’s
or any of its Restricted Subsidiaries’ Equity Interests in their capacity as such (other than dividends or distributions payable in Equity Interests (other than Disqualified Capital Stock) of the Borrower or payable to the Borrower or a
Restricted Subsidiary of the Borrower); 
 (b) the purchase, redemption or other acquisition or retirement for
value (including, without limitation, in connection with any merger or consolidation involving the Borrower) any Equity Interests of the Borrower; 
 (c) any payment on or with respect to, or purchase, redemption, defeasance or other acquisition or retirement for value, any Debt of Borrower or any Restricted Subsidiary that is subordinated to the
Obligations; or 
 (d) make any Investment not permitted by Section Section 9.05 hereof. 

“Restricted Subsidiary” means any Subsidiary that is not an Unrestricted Subsidiary. 

“S&P” means Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies,
Inc., and any successor thereto that is a nationally recognized rating agency. 
 “Scheduled
Redetermination” has the meaning assigned such term in Section 2.07(b)(i). 
 “Scheduled
Redetermination Date” means the date on which a Borrowing Base that has been redetermined pursuant to a Scheduled Redetermination becomes effective as provided in Section 2.07(d). 

“SEC” means the U.S. Securities and Exchange Commission or any successor Governmental Authority.

 “Second Lien Intercreditor Agreement” means that certain intercreditor agreement dated of
even date herewith by and among Indenture Trustee, Administrative Agent and Borrower. 

  
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 “Security Agreement” means the Security Agreement executed
by Borrower and the Guarantors of even date herewith. 
 “Security Instruments” means the
mortgages, deeds of trust, security agreements, pledge agreements, deposit account control agreements, guaranty agreements and other agreements, instruments or certificates, and any and all other agreements, instruments, certificates or certificates
now or hereafter executed and delivered by the Borrower or any other Person (other than Swap Agreements with the Lenders or any Affiliate of a Lender or participation or similar agreements between any Lender and any other lender or creditor with
respect to any Obligations pursuant to this Agreement) in connection with, or as security for the payment or performance of the Obligations, the Notes, this Agreement, or reimbursement obligations under the Letters of Credit, as such agreements may
be amended, modified, supplemented or restated from time to time, including, without limitation, the Security Agreement and Mortgages. 
 “Senior Notes” means the 13.75% Senior Secured Notes due 2015 that are issued pursuant to the Indenture. 

“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number
one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the
Administrative Agent is subject for Eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to such Regulation D.
Eurodollar Loans shall be deemed to constitute Eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such
Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 

“Subsidiary” means (a) any Person of which at least a majority of the outstanding Equity Interests
having by the terms thereof ordinary voting power to elect a majority of the board of directors, manager or other governing body of such Person (irrespective of whether or not at the time Equity Interests of any other class or classes of such Person
shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or Controlled by the Borrower or one or more of its Subsidiaries or by the Borrower and one or more of its Subsidiaries
and (b) any partnership of which the Borrower or any of its Subsidiaries is a general partner. Unless otherwise indicated herein, each reference to the term “Subsidiary” shall mean a Subsidiary of the Borrower. 

“Swap Agreement” means any agreement with respect to any swap, forward, future or derivative transaction
or option or similar agreement, whether exchange traded, “over-the-counter” or otherwise, involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on
account of services provided by current or former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Swap Agreement. 

  
 -23-

 “Synthetic Leases” means, in respect of any Person, all
leases which shall have been, or should have been, in accordance with GAAP, treated as operating leases on the financial statements of the Person liable (whether contingently or otherwise) for the payment of rent thereunder and which were properly
treated as Obligations for borrowed money for purposes of U.S. federal income taxes, if the lessee in respect thereof is obligated to either purchase for an amount in excess of, or pay upon early termination an amount in excess of, 80% of the
residual value of the Property subject to such operating lease upon expiration or early termination of such lease. 
 “Tax Amount” means, for any period, the combined federal, state and local income taxes, including estimated taxes, that would be payable by the Borrower if it were a Texas corporation
filing separate tax returns with respect to its Taxable Income for such period; provided that in determining the Tax Amount, the effect thereon of any net operating loss carry-forwards or other carry-forwards or tax attributes, such as
alternative minimum tax carry-forwards, that would have arisen if the Borrower were a Texas corporation shall be taken into account; provided, further, that, if there is an adjustment in the amount of the Taxable Income for any period,
an appropriate positive or negative adjustment shall be made in the Tax Amount, and if the Tax Amount is negative, then the Tax Amount for succeeding periods shall be reduced to take into account such negative amount until such negative amount is
reduced to zero. Notwithstanding anything to the contrary, Tax Amount shall not include taxes resulting from the Borrower’s reorganization as, or change in the status to, a corporation for tax purposes. 

“Taxable Income” means, for any period, the taxable income or loss of the Borrower for such period for
U.S. federal income tax purposes. 
 “Taxes” means any and all present or future taxes, levies,
imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority. 

“Termination Date” means the earlier of the Maturity Date and the date of termination of the
Commitments. 
 “Transactions” means the execution, delivery and performance by the Borrower of
this Agreement, each other Loan Document to which it is a party, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of Credit hereunder, and the grant of Liens by the Borrower on Mortgaged Properties and other
Properties pursuant to the Security Instruments. 
 “Type”, when used in reference to any Loan
or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Alternate Base Rate or the Adjusted LIBO Rate. 

“UCC” means the Uniform Commercial Code in effect from time to time in the State of Texas, or, where
applicable as to specific Property, any other relevant state. 
 “Unrestricted Subsidiary”
means any Subsidiary of the Borrower that is designated by the Board of Directors as an Unrestricted Subsidiary pursuant to a resolution of the Board of Directors, but only to the extent that such Subsidiary: 

(1) has no Debt other than non-recourse Debt; 

  
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 (2) is not party to any agreement, contract, arrangement or
understanding with the Borrower or any Restricted Subsidiary of the Borrower unless the terms of any such agreement, contract, arrangement or understanding are no less favorable to the Borrower or such Restricted Subsidiary than those that might be
obtained at the time from Persons who are not Affiliates of the Borrower; 
 (3) is a Person with
respect to which neither the Borrower nor any of its Restricted Subsidiaries has any direct or indirect obligation (a) to subscribe for additional Equity Interests or (b) to maintain or preserve such Person’s financial condition or to
cause such Person to achieve any specified levels of operating results; and 
 (4) does not
guarantee or otherwise directly or indirectly provide credit support for any Debt of the Borrower or any of its Restricted Subsidiaries. 
 Any designation of a Subsidiary of the Borrower as an Unrestricted Subsidiary shall be made in an officer’s certificate delivered to the Administrative Agent and containing a certification that such
designation is in compliance with the terms of this definition. If, at any time, any Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted Subsidiary for
purposes of this Agreement and any Debt of such Subsidiary will be deemed to be incurred by a Restricted Subsidiary of the Borrower as of such date and any Lien of such Subsidiary will be deemed to be incurred as of such date and, if such Debt is
not permitted to be incurred pursuant to Section 9.02 hereof, or such Lien is not permitted to be incurred as of such date pursuant to Section 9.03 hereof, then in either case, the Borrower will be in default of such
covenant. 
 “Volumetric Production Payments” means production payment obligations recorded as
deferred revenue in accordance with GAAP, together with all related undertakings and obligations. 

“Wholly-Owned Subsidiary” means any Subsidiary of which all of the outstanding Equity Interests (other
than any directors’ qualifying shares mandated by applicable law), on a fully-diluted basis, are owned by the Borrower or one or more of the Wholly-Owned Subsidiaries or by the Borrower and one or more of the Wholly-Owned Subsidiaries.

 “W&T” means W&T Offshore, Inc., a Texas corporation. 

“W&T Intercreditor Agreement” means that certain intercreditor agreement dated of even date herewith
by and among W&T, Administrative Agent and Borrower. 
 “W&T Purchase Agreement” means
that certain Purchase and Sale Agreement dated September 14, 2009 between Borrower and W&T under which Borrower has plugging and abandonment obligations with respect to property purchased thereunder. 

Section 1.03 Types of Loans and Borrowings. For purposes of this Agreement, Loans and Borrowings,
respectively, may be classified and referred to by Type (e.g., a “Eurodollar Loan” or a “Eurodollar Borrowing”. 

  
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 Section 1.04 Terms Generally; Rules of Construction. The
definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any law shall be construed as referring to such law as amended, modified, codified or reenacted, in
whole or in part, and in effect from time to time, (c) any reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to the restrictions contained herein), (d) the words
“herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e) with respect to the determination of
any time period, the word “from” means “from and including” and the word “to” means “to and including” and (f) any reference herein to Articles, Sections, Annexes, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Annexes, Exhibits and Schedules to, this Agreement. No provision of this Agreement or any other Loan Document shall be interpreted or construed against any Person solely because such Person or its
legal representative drafted such provision. 
 Section 1.05 Accounting Terms and Determinations;
GAAP. Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all determinations with respect to accounting matters hereunder shall be made, and all financial statements and certificates and reports as to
financial matters required to be furnished to the Administrative Agent or the Lenders hereunder shall be prepared, in accordance with GAAP, applied on a basis consistent with the Financial Statements except for changes in which Borrower’s
independent certified public accountants concur and which are disclosed to Administrative Agent on the next date on which financial statements are required to be delivered to the Lenders pursuant to Section 8.01(a); provided that,
unless the Borrower and the Required Lenders shall otherwise agree in writing, no such change shall modify or affect the manner in which compliance with the covenants contained herein is computed such that all such computations shall be conducted
utilizing financial information presented consistently with prior periods. 
 ARTICLE II 

The Credits 
 Section 2.01 Commitments. Subject to the terms and conditions set forth herein, each Lender agrees to make Loans to the Borrower during the Availability Period in an aggregate principal
amount that will not result in (a) such Lender’s Credit Exposure exceeding such Lender’s Commitment or (b) the total Credit Exposures exceeding the total Commitments. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrower may borrow, repay and reborrow the Loans. 

  
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 Section 2.02 Loans and Borrowings. 

(a) Borrowings; Several Obligations. Each Loan shall be made as part of a Borrowing consisting of Loans made by
the Lenders ratably in accordance with their respective Commitments. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments are
several and no Lender shall be responsible for any other Lender’s failure to make Loans as required. 
 (b)
Types of Loans. Subject to Section 3.03, each Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request in accordance herewith. Each Lender at its option may make any Eurodollar Loan by
causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.

 (c) Minimum Amounts; Limitation on Number of Borrowings. At the commencement of each Interest Period
for any Eurodollar Borrowing, such Borrowing shall be in an aggregate amount that is not less than $250,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is not less than $250,000; provided
that an ABR Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total Commitments or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.08(d). Borrowings
of more than one Type may be outstanding at the same time; provided that there shall not at any time be more than a total of four (4) Eurodollar Borrowings outstanding. Notwithstanding any other provision of this Agreement, the Borrower
shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date. 

(d) Notes. Any Lender may request that Loans made by it be evidenced by a single promissory note. In such event,
the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to the order of such Lender in substantially the form of Exhibit A, dated, in the case of (i) any Lender party hereto as of the date of this
Agreement, as of the date of this Agreement, (ii) any Lender that becomes a party hereto pursuant to an Assignment and Assumption, as of the effective date of the Assignment and Assumption, payable to the order of such Lender in a principal
amount equal to its Maximum Credit Amount as in effect on such date, and otherwise duly completed. If any Lender’s Maximum Credit Amount increases or decreases for any reason (whether pursuant to Section 2.06, Section 12.04(b) or
otherwise), the Borrower shall deliver or cause to be delivered on the effective date of such increase or decrease, a new Note payable to the order of any Lender who requested a Note hereunder in a principal amount equal to its Maximum Credit Amount
after giving effect to such increase or decrease, and otherwise duly completed, and such Lender agrees to promptly thereafter return the previously issued Note held by such Lender marked canceled or otherwise similarly defaced. The date, amount,
Type, interest rate and, if applicable, Interest Period of each Loan made by each Lender that receives a Note, and all payments made on account of the principal thereof, shall be recorded by such Lender on its books for its Note, and, prior to any
transfer, may be endorsed by such Lender on a schedule attached to such Note or any continuation thereof or on any separate record maintained by such Lender. Failure to make any such notation or to attach a schedule shall not affect any
Lender’s or the Borrower’s rights or obligations in respect of such Loans or affect the validity of such transfer by any Lender of its Note. 

  
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 Section 2.03 Requests for Borrowings. To request a Borrowing,
the Borrower shall notify the Administrative Agent of such request by telephone or by written Borrowing Request in substantially the form of Exhibit B and signed by the Borrower (a “written Borrowing Request”): (a) in
the case of a Eurodollar Borrowing, not later than 12:00 noon, Houston, Texas time, three (3) Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 12:00 noon, Houston, Texas time,
on the Business Day of the proposed Borrowing; provided that no such notice shall be required for any deemed request of an ABR Borrowing to finance the reimbursement of an LC Disbursement as provided in Section 2.08(d). Each
telephonic and written Borrowing Request shall be irrevocable and each telephonic Borrowing Request shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Borrowing Request. Each such telephonic and written
Borrowing Request shall specify the following information in compliance with Section 2.02: 
 (i) the aggregate amount of the requested Borrowing; 
 (ii) the date of such Borrowing, which shall be a Business Day; 
 (iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; 
 (iv) in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”;

 (v) the amount of the then effective Borrowing Base, the current total Credit Exposures
(without regard to the requested Borrowing) and the pro forma total Credit Exposures (giving effect to the requested Borrowing); and 
 (vi) the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of Section 2.05. 

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing. If no
Interest Period is specified with respect to any requested Eurodollar Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration. Each Borrowing Request shall constitute a representation that the
amount of the requested Borrowing shall not cause the total Credit Exposures to exceed the total Commitments (i.e., the lesser of the Aggregate Maximum Credit Amounts and the then effective Borrowing Base). Promptly following receipt of a Borrowing
Request in accordance with this Section 2.03, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing. 

  
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 Section 2.04 Interest Elections. 

(a) Conversion and Continuance. Each Borrowing initially shall be of the Type specified in the applicable
Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such
Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this Section 2.04. The Borrower may elect different options with respect to different portions of the affected Borrowing, in which
case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. 

(b) Interest Election Requests. To make an election pursuant to this Section 2.04, the Borrower shall
notify the Administrative Agent of such election by telephone or by a written Interest Election Request in substantially the form of Exhibit C and signed by the Borrower (a “written Interest Election Request”) by the time
that a Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election. Each telephonic and written Interest
Election Request shall be irrevocable and each telephonic Interest Election Request shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent. 

(c) Information in Interest Election Requests. Each telephonic and written Interest Election Request shall specify
the following information in compliance with Section 2.02: 
 (i) the Borrowing to which
such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant
to Section 2.04(c)(iii) and (iv) shall be specified for each resulting Borrowing); 
 (ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day; 

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

(iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto
after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”. 
 If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s
duration. 
 (d) Notice to Lenders by the Administrative Agent. Promptly following receipt of an Interest
Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing. 
 (e) Effect of Failure to Deliver Timely Interest Election Request and Events of Default on Interest Election. If the Borrower fails to deliver a timely Interest Election Request with respect to a
Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such 

  
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Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing: (i) no outstanding Borrowing may be
converted to or continued as a Eurodollar Borrowing (and any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective) and (ii) unless repaid,
each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto. 
 Section 2.05 Funding of Borrowings. 
 (a) Funding
by Lenders. Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 1:00 p.m., Houston, Texas time, to the account of the Administrative Agent most recently
designated by it for such purpose by notice to the Lenders. The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with the
Administrative Agent in Houston, Texas and designated by the Borrower in the applicable Borrowing Request; provided that ABR Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.08(d) shall be
remitted by the Administrative Agent to the Issuing Bank that made such LC Disbursement. 
 (b) Presumption
of Funding by the Lenders. Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such
Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with (a) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event,
if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding
amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal
Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to ABR Loans. If such Lender pays such
amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing. 
 Section 2.06 Changes in the Aggregate Maximum Credit Amounts. 
 (a) Scheduled Termination of Commitments. Unless previously terminated, the Commitments shall terminate on the Maturity Date. If at any time the Aggregate Maximum Credit Amounts or the Borrowing
Base is terminated or reduced to zero, then the Commitments shall terminate on the effective date of such termination or reduction. 
 (b) Optional Termination and Reduction of Aggregate Credit Amounts. 
 (i) The Borrower may at any time terminate, or from time to time reduce, the Aggregate Maximum Credit Amounts; provided that (1) each reduction of the Aggregate Maximum Credit Amounts shall be
in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (2) the Borrower shall not terminate or reduce the Aggregate Maximum Credit Amounts if, after giving effect to any concurrent prepayment of the Loans in
accordance with Section 3.04(c), the total Credit Exposures would exceed the total Commitments. 

  
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 (ii) The Borrower shall notify the Administrative Agent of
any election to terminate or reduce the Aggregate Maximum Credit Amounts under Section 2.06(b)(i) at least three (3) Business Days prior to the effective date of such termination or reduction, specifying such election and the effective
date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section 2.06(b)(ii) shall be irrevocable. Any
termination or reduction of the Aggregate Maximum Credit Amounts shall be permanent and may not be reinstated except pursuant to Section 2.06. Each reduction of the Aggregate Maximum Credit Amounts shall be made ratably among the Lenders in
accordance with each Lender’s Applicable Percentage. 
 Section 2.07 Borrowing Base.

 (a) Initial Borrowing Base. For the period from and including the Effective Date to but excluding
the first Redetermination Date, the amount of the Borrowing Base shall be Thirty-Five Million ($35,000,000). Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments from time to time pursuant to Section 8.13(c)
or Section 9.11. 
 (b) Scheduled and Interim Redeterminations. 

(i) Commencing with the first Redetermination Date, the Borrowing Base shall be redetermined semi-annually
in accordance with this Section 2.07 (a “Scheduled Redetermination”), and, subject to Section 2.07(d), such redetermined Borrowing Base shall become effective and applicable to the Borrower, the
Administrative Agent, each Issuing Bank and the Lenders on or around April 1st and October 1st of each year, commencing with the April 1st or October 1st immediately following the first Redetermination Date. 

(ii) The Administrative Agent may or shall, at the direction of the Required Lenders, by notifying the
Borrower thereof, one time during any six-month period, elect to cause the Borrowing Base to be redetermined between Scheduled Redeterminations in accordance with this Section 2.07. 

(iii) The Borrower may elect to redetermine the Borrowing Base, by notifying the Administrative Agent
thereof, one time during any six-month period, elect to cause the Borrowing Base to be redetermined between Scheduled Redeterminations in accordance with this Section 2.07. 

  
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 (c) Scheduled and Interim Redetermination Procedure. 

(i) Each Scheduled Redetermination and each Interim Redetermination shall be effectuated as follows: upon
receipt by the Administrative Agent of (1) the Reserve Report and the certificate required to be delivered by the Borrower, in the case of a Scheduled Redetermination, pursuant to Section 8.12(a) and (c), and, in the case of
an Interim Redetermination, pursuant to Section 8.12(b) and (c), and (2) such other reports, data and supplemental information, including, without limitation, the information provided pursuant to Section 8.12(c), as
may, from time to time, be reasonably requested by the Required Lenders (the Reserve Report, such certificate and such other reports, data and supplemental information being the “Engineering Reports”), the Administrative Agent shall
evaluate the information contained in the Engineering Reports and shall, in good faith, propose a new Borrowing Base (the “Proposed Borrowing Base”) based upon such information and such other information (including, without
limitation, the status of title information with respect to the Oil and Gas Properties as described in the Engineering Reports and the existence of any other Debt) as the Administrative Agent deems appropriate in its sole discretion and consistent
with its normal oil and gas lending criteria as it exists at the particular time. In no event shall the Proposed Borrowing Base exceed the Aggregate Maximum Credit Amounts. 

(ii) The Administrative Agent shall notify the Borrower and the Lenders of the Proposed Borrowing Base
(the “Proposed Borrowing Base Notice”): 
 (1) in the case of a Scheduled
Redetermination (A) if the Administrative Agent shall have received the Engineering Reports and other information required to be delivered by the Borrower pursuant to Section 8.12(a) and (c) in a timely and complete manner, then
on or before the March 15th and September 15th of such year following the date of delivery or (B) if the Administrative Agent shall not have received the Engineering Reports required to be delivered by the Borrower pursuant to
Section 8.12(a) and (c) in a timely and complete manner, then promptly after the Administrative Agent has received complete Engineering Reports and other information from the Borrower and have had a reasonable opportunity to determine
the Proposed Borrowing Base in accordance with Section 2.07(c)(i), and in any event within fifteen (15) days after the Administrative Agent has received the required Engineering Reports; and 

(2) in the case of an Interim Redetermination, promptly, and in any event, within fifteen (15) days
after the Administrative Agent has received the required Engineering Reports. 
 (iii) Any
Proposed Borrowing Base that would increase the Borrowing Base then in effect must be approved or deemed to have been approved by all of the Lenders as provided in this Section 2.07(c)(iii) and any Proposed Borrowing Base that would decrease
or maintain the Borrowing Base then in effect must be approved or be deemed to have been approved by the Required Lenders as provided in this Section 2.07(c)(iii). Upon receipt of the Proposed Borrowing Base Notice, each Lender shall have
fifteen (15) days to agree with the Proposed Borrowing Base or disagree with the Proposed Borrowing Base by proposing an alternate Borrowing Base. If at the end of such fifteen (15) days, any Lender has not communicated its approval or
disapproval in writing to the Administrative Agent, such silence shall be deemed to be an approval of the Proposed Borrowing Base. If, at the end of such 15-day period, all of the Lenders, in the case of a Proposed Borrowing Base that would increase
the Borrowing Base then in effect, or the Required Lenders, in the case of a Proposed Borrowing Base that would decrease or 

  
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maintain the Borrowing Base then in effect, have approved or deemed to have approved, as aforesaid, then the Proposed Borrowing Base shall become the new Borrowing Base, effective on the date
specified in Section 2.07(d). If, however, at the end of such 15-day period, all of the Lenders or the Required Lenders, as applicable, have not approved or deemed to have approved, as aforesaid, then the Administrative Agent shall
(1) notify the Borrower of the Proposed Borrowing Base and which Lenders have not approved or been deemed to have approved of the Proposed Borrowing Base and (2) poll the Lenders to ascertain the highest Borrowing Base then acceptable to a
number of Lenders sufficient to constitute the Required Lenders for purposes of this Section 2.07 and, so long as such amount does not increase the Borrowing Base then in effect, such amount shall become the new Borrowing Base, effective on
the date specified in Section 2.07(d). 
 (d) Effectiveness of a Redetermined Borrowing Base.
After a redetermined Borrowing Base is approved or is deemed to have been approved by all of the Lenders or the Required Lenders, as applicable, pursuant to Section 2.07(c)(iii), the Administrative Agent shall notify the Borrower and the
Lenders of the amount of the redetermined Borrowing Base (the “New Borrowing Base Notice”), and such amount shall become the new Borrowing Base, effective and applicable to the Borrower, the Administrative Agent, each Issuing Bank
and the Lenders: 
 (i) in the case of a Scheduled Redetermination, (1) if the
Administrative Agent shall have received the Engineering Reports required to be delivered by the Borrower pursuant to Section 8.12(a) and (c) in a timely and complete manner, then on the April 1st or October 1st,
as applicable, following such notice, or (2) if the Administrative Agent shall not have received the Engineering Reports required to be delivered by the Borrower pursuant to Section 8.12(a) and (c) in a timely and complete
manner, then on the Business Day next succeeding delivery of such notice; and 
 (ii) in the case
of an Interim Redetermination, on the Business Day next succeeding delivery of such notice. 
 Such amount shall then become the
Borrowing Base until the next Scheduled Redetermination Date, the next Interim Redetermination Date or the next adjustment to the Borrowing Base under Section 8.13(c) or Section 9.11, whichever occurs first. Notwithstanding the
foregoing, no Scheduled Redetermination or Interim Redetermination shall become effective until the New Borrowing Base Notice related thereto is received by the Borrower. 

Section 2.08 Letters of Credit. 

(a) General. Subject to the terms and conditions set forth herein, the Borrower may request any Issuing Bank to
issue Letters of Credit in dollars for its own account or for the account of any of its Restricted Subsidiaries, in a form reasonably acceptable to the Administrative Agent and such Issuing Bank, at any time and from time to time during the
Availability Period. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any Letter of Credit Agreement, the terms and conditions of this Agreement shall control. 

  
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 (b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for
doing so have been approved by the Issuing Bank) to any Issuing Bank and the Administrative Agent (not less than three (3) Business Days in advance of the requested date of issuance, amendment, renewal or extension) a notice:
(i) requesting the issuance of a Letter of Credit or identifying the outstanding Letter of Credit issued by such Issuing Bank to be amended, renewed or extended; (ii) specifying the date of issuance, amendment, renewal or extension (which
shall be a Business Day); (iii) specifying the date on which such Letter of Credit is to expire (which shall comply with Section 2.08(c)); (iv) specifying the amount of such Letter of Credit; (v) specifying the name and
address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit; and (vi) specifying the amount of the then effective Borrowing Base, the current total Credit
Exposures (without regard to the requested Letter of Credit or the requested amendment, renewal or extension of an outstanding Letter of Credit) and the pro forma total Credit Exposures (giving effect to the requested Letter of Credit or the
requested amendment, renewal or extension of an outstanding Letter of Credit). If requested by any Issuing Bank, the Borrower shall submit a letter of credit application on such Issuing Bank’s standard form in connection with any request for a
Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and with respect to each notice provided by the Borrower above and any issuance, amendment, renewal or extension of each Letter of Credit, the Borrower shall
be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (1) the LC Exposure shall not exceed the LC Commitment and (2) the total Credit Exposures shall not exceed the total
Commitments (i.e. the lesser of the Aggregate Maximum Credit Amounts and the then effective Borrowing Base). 

(c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of business on the earlier of
(i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal, which renewal may be provided for in the initial Letter of Credit, or extension thereof, one year after such renewal or extension)
and (ii) the date that is twenty (20) Business Days prior to the Maturity Date. 
 (d)
Participations. By the issuance of a Letter of Credit (or an amendment to an existing Letter of Credit increasing the amount thereof) and without any further action on the part of the Issuing Bank that issues such Letter of Credit or the
Lenders, each Issuing Bank that issues a Letter of Credit hereunder hereby grants to each Lender, and each Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Applicable Percentage of
the aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of any Issuing
Bank that issues a Letter of Credit hereunder, such Lender’s Applicable Percentage of each LC Disbursement made by such Issuing Bank and not reimbursed by the Borrower on the date due as provided in Section 2.08(d), or of any
reimbursement payment required to be refunded to the Borrower for any reason. Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this Section 2.08(d) in respect of Letters of Credit is absolute
and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments, and that
each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. 

  
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 (e) Reimbursement. If any Issuing Bank shall make any LC Disbursement
in respect of a Letter of Credit issued by such Issuing Bank, the Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 12:00 noon, Houston, Texas time, on the date
that such LC Disbursement is made, if the Borrower shall have received notice of such LC Disbursement prior to 10:00 a.m., Houston, Texas time, on such date, or, if such notice has not been received by the Borrower prior to such time on such date,
then not later than 12:00 noon, Houston, Texas time, on the Business Day that the Borrower receives such notice, if such notice is received prior to 10:00 a.m., Houston, Texas time, on the day of receipt, or the Business Day immediately following
the day that the Borrower receives such notice, if such notice is not received prior to such time on the day of receipt; provided that if such LC Disbursement is not less than $1,000,000.00, the Borrower shall, subject to the conditions to
Borrowing set forth herein, be deemed to have requested, and the Borrower does hereby request under such circumstances, that such payment be financed with an ABR Borrowing in an equivalent amount and, to the extent so financed, the Borrower’s
obligation to make such payment shall be discharged and replaced by the resulting ABR Borrowing. If the Borrower fails to make such payment when due, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment
then due from the Borrower in respect thereof and such Lender’s Applicable Percentage thereof. Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from
the Borrower, in the same manner as provided in Section 2.05 with respect to Loans made by such Lender (and Section 2.05 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative
Agent shall promptly pay to the Issuing Bank that issued such Letter of Credit the amounts so received by it from the Lenders. Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to this Section
2.08(d), the Administrative Agent shall distribute such payment to the Issuing Bank that issued such Letter of Credit or, to the extent that Lenders have made payments pursuant to this Section 2.08(d) to reimburse such Issuing Bank, then
to such Lenders and such Issuing Bank as their interests may appear. Any payment made by a Lender pursuant to this Section 2.08(d) to reimburse any Issuing Bank for any LC Disbursement (other than the funding of ABR Loans as contemplated
above) shall not constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement. 
 (f) Obligations Absolute. The Borrower’s obligation to reimburse LC Disbursements as provided in Section 2.08(e) shall be absolute, unconditional and irrevocable, and shall be performed
strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit, any Letter of Credit Agreement or this Agreement, or any
term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by
any Issuing Bank under a Letter of Credit issued by such Issuing Bank against presentation of a draft or other document that does not comply with the terms of such Letter of Credit or any Letter of Credit Agreement, or (iv) any other event or
circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section 2.08(f), constitute a legal or equitable discharge of, or provide a right of setoff

  
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against, the Borrower’s obligations hereunder. Neither the Administrative Agent, the Lenders nor any Issuing Bank, nor any of their Related Parties shall have any liability or responsibility
by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical
terms or any consequence arising from causes beyond the control of any Issuing Bank; provided that the foregoing shall not be construed to excuse any Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed
to consequential damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by such Issuing Bank’s failure to exercise care when determining whether
drafts and other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of any Issuing Bank (as finally determined by
a court of competent jurisdiction), such Issuing Bank shall be deemed to have exercised all requisite care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect
to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank that issued such Letter of Credit may, in its sole reasonable discretion, either accept and make payment upon
such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such
Letter of Credit. 
 (g) Disbursement Procedures. Each Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit issued by such Issuing Bank. Such Issuing Bank shall promptly notify the Administrative Agent and the Borrower by telephone (confirmed by telecopy)
of such demand for payment and whether such Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse such
Issuing Bank and the Lenders with respect to any such LC Disbursement. 
 (h) Interim Interest. If any
Issuing Bank shall make any LC Disbursement, then, until the Borrower shall have reimbursed such Issuing Bank for such LC Disbursement (either with its own funds or a Borrowing under Section 2.08(d)), the unpaid amount thereof shall bear
interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum then applicable to ABR Loans. Interest accrued pursuant to this
Section 2.08(h) shall be for the account of such Issuing Bank, except that interest accrued on and after the date of payment by any Lender pursuant to Section 2.08(d) to reimburse such Issuing Bank shall be for the account of such
Lender to the extent of such payment. 
 (i) Replacement of an Issuing Bank. Any Issuing Bank may be
replaced or resign at any time by written agreement among the Borrower, the Administrative Agent, such resigning or replaced Issuing Bank and, in the case of a replacement, the successor Issuing Bank. The Administrative Agent shall notify the
Lenders of any such resignation or replacement of an 

  
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Issuing Bank. At the time any such resignation or replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the resigning or replaced Issuing Bank
pursuant to Section 3.05(b). In the case of the replacement of an Issuing Bank, from and after the effective date of such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the replaced Issuing Bank
under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to such
successor and all previous Issuing Banks, as the context shall require. After the resignation or replacement of an Issuing Bank hereunder, the resigning or replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights
and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such resignation or replacement, but shall not be required to issue additional Letters of Credit. 

(j) Cash Collateralization. If (i) any Event of Default shall occur and be continuing and the Borrower
receives notice from the Administrative Agent or the Required Lenders demanding the deposit of cash collateral pursuant to this Section 2.08(j), or (ii) the Borrower is required to pay to the Administrative Agent the excess attributable
to an LC Exposure in connection with any prepayment pursuant to Section 3.04(c), then the Borrower shall deposit, in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders, an
amount in cash equal to, in the case of an Event of Default, the LC Exposure, and in the case of a payment required by Section 3.04(c), the amount of such excess as provided in Section 3.04(c), as of such date plus any accrued and
unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the
occurrence of any Event of Default with respect to the Borrower or any Restricted Subsidiary described in Section 10.01(g) or Section 10.01(h). The Borrower hereby grants to the Administrative Agent, for the benefit of each
Issuing Bank and the Lenders, an exclusive first priority and continuing perfected security interest in and Lien on such account and all cash, checks, drafts, certificates and instruments, if any, from time to time deposited or held in such account,
all deposits or wire transfers made thereto, any and all investments purchased with funds deposited in such account, all interest, dividends, cash, instruments, financial assets and other Property from time to time received, receivable or otherwise
payable in respect of, or in exchange for, any or all of the foregoing, and all proceeds, products, accessions, rents, profits, income and benefits therefrom, and any substitutions and replacements therefor. The Borrower’s obligation to deposit
amounts pursuant to this Section 2.08(j) shall be absolute and unconditional, without regard to whether any beneficiary of any such Letter of Credit has attempted to draw down all or a portion of such amount under the terms of a Letter
of Credit, and, to the fullest extent permitted by applicable law, shall not be subject to any defense or be affected by a right of set-off, counterclaim or recoupment which the Borrower or any of its Subsidiaries may now or hereafter have against
any such beneficiary, any Issuing Bank, the Administrative Agent, the Lenders or any other Person for any reason whatsoever. Such deposit shall be held as collateral securing the payment and performance of the Borrower’s obligations under this
Agreement and the other Loan Documents in a “securities account” (within the meaning of Article 8 of the UCC) over which the Administrative Agent shall have “control” (within the meaning of the UCC). Notwithstanding the
foregoing, the Borrower may direct the Administrative Agent and the “securities intermediary” (within the meaning of the UCC) to invest amounts credited to the securities account, at the Borrower’s risk and expense, in

  
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Investments described in Section 9.05(c) through (f). Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied
by the Administrative Agent to reimburse, on a pro rata basis, each Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations
of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated, be applied to satisfy other obligations of the Borrower under this Agreement or the other Loan Documents. If the Borrower is required to provide
an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, and the Borrower is not otherwise required to pay to the Administrative Agent the excess attributable to an LC Exposure in connection with any prepayment
pursuant to Section 3.04(c), then such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three (3) Business Days after all Events of Default have been cured or waived. 

ARTICLE III 
 Payments of Principal and Interest; Prepayments; Fees 
 Section 3.01 Repayment of Loans. 
 The Borrower
hereby unconditionally promises to pay to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Loan on the Termination Date. 

Section 3.02 Interest. 

(a) ABR Loans. The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the
Applicable Margin, but in no event to exceed the Highest Lawful Rate. 
 (b) Eurodollar Loans. The Loans
comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate. 

(c) Post-Default Rate. Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by the Borrower hereunder or under any other Loan Document is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate
per annum equal to two percent (2%) plus the rate applicable to ABR Loans as provided in Section 3.02(a), but in no event to exceed the Highest Lawful Rate. 

(d) Interest Payment Dates. Accrued interest on each Loan shall be payable in arrears on each Interest Payment
Date for such Loan and on the Termination Date; provided that (i) interest accrued pursuant to Section 3.02(c) shall be payable on demand, (i) in the event of any repayment or prepayment of any Loan (other than an optional
prepayment of an ABR Loan prior to the Termination Date), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment, and (ii) in the event of any conversion of any Eurodollar Loan
prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion. 

  
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 (e) Interest Rate Computations. All interest hereunder shall be
computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), except that interest computed by
reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days
elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error, and
be binding upon the parties hereto. 
 Section 3.03 Alternate Rate of Interest. If prior to the
commencement of any Interest Period for a Eurodollar Borrowing: 
 (a) the Administrative Agent determines
(which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate for such Interest Period; or 

(b) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate or LIBO Rate, as applicable,
for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period; 

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or telecopy as promptly as
practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Borrowing
to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective, and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing. 

Section 3.04 Prepayments. 

(a) Optional Prepayments. The Borrower shall have the right at any time and from time to time to prepay any
Borrowing in whole or in part, subject to prior notice in accordance with Section 3.04(b). 
 (b)
Notice and Terms of Optional Prepayment. The Borrower shall notify the Administrative Agent by telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than 12:00
noon, Houston, Texas time, three (3) Business Days before the date of prepayment, or (ii) in the case of prepayment of an ABR Borrowing, not later than 12:00 noon, Houston, Texas time, on the Business Day of prepayment. Each such notice
shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid. Promptly following receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise the
Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that 

  
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would be permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.02. Each prepayment of a Borrowing shall be applied ratably to the Loans included
in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section 3.02. 
 (c) Mandatory Prepayments. 
 (i) If, after
giving effect to any termination or reduction of the Aggregate Maximum Credit Amounts pursuant to Section 2.06(b), the total Credit Exposures exceeds the total Commitments, then the Borrower shall (A) prepay the Borrowings on the
date of such termination or reduction in an aggregate principal amount equal to such excess, and (B) if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the
Lenders an amount equal to such excess to be held as cash collateral as provided in Section 2.08(j). 
 (ii) Upon any redetermination of or adjustment to the amount of the Borrowing Base in accordance with Section 2.07 or Section 8.13(c), if the total Credit Exposures exceeds the
redetermined or adjusted Borrowing Base, then the Borrower shall, within ten (10) days after written notice that the total Credit Exposure exceeds the redetermined or adjusted Borrowing Base, notify Administrative Agent of its decision to
either (A) prepay the Borrowings in an aggregate principal amount equal to such excess within ninety (0) days of such decision, and if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the
Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as cash collateral as provided in Section 2.08(j) or (B) within ninety (90) days pledge additional Collateral to the Administrative Agent for
the benefit of the Lenders, which Collateral shall be sufficient in Administrative Agent’s opinion to increase the Borrowing Base and eliminate any excess over the total Credit Exposure. 

(iii) Upon any adjustments to the Borrowing Base pursuant to Section 9.11, if the total Credit
Exposures exceeds the Borrowing Base as adjusted, then the Borrower shall (A) prepay the Borrowings in an aggregate principal amount equal to such excess, and (B) if any excess remains after prepaying all of the Borrowings as a result of
an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as cash collateral as provided in Section 2.08(j). The Borrower shall be obligated to make such prepayment and/or deposit of
cash collateral on the date it receives cash proceeds as a result of such disposition or such incurrence of Debt; provided that all payments required to be made pursuant to this Section 3.04(c)(iii) must be made on or prior to the
Termination Date. 
 (iv) Each prepayment of Borrowings pursuant to this Section 3.04(c)
shall be applied to outstanding Borrowings first, ratably to any ABR Borrowings then outstanding, and, second, to any Eurodollar Borrowings then outstanding, and if more than one Eurodollar Borrowing is then outstanding, to each such Eurodollar
Borrowing in order of priority beginning with the Eurodollar Borrowing with the least number of days remaining in the Interest Period applicable thereto and ending with the Eurodollar Borrowing with the most number of days remaining in the Interest
Period applicable thereto. 

  
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 (v) Each prepayment of Borrowings pursuant to this
Section 3.04(c) shall be applied ratably to the Loans included in the prepaid Borrowings. Prepayments pursuant to this Section 3.04(c) shall be accompanied by accrued interest to the extent required by Section 3.02. 

(d) No Premium or Penalty. Prepayments permitted or required under this Section 3.04 shall be without premium
or penalty, except as required under Section 5.02. 
 Section 3.05 Fees. 

(a) Commitment Fees. The Borrower agrees to pay to the Administrative Agent for the account of each Lender a
commitment fee, which shall accrue at the applicable Commitment Fee Rate on the average daily amount of the unused amount of the Borrowing Base during the period from and including the date of this Agreement to but excluding the Termination Date.
Accrued commitment fees shall be payable in arrears on the last day of March, June, September and December of each year and on the Termination Date, commencing on the first such date to occur after the date hereof. All commitment fees shall be
computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day). 
 (b) Letter of Credit
Fees. The Borrower agrees to pay (i) to each Issuing Bank, for its own account, an annual Letter of Credit fee, equal to the same Applicable Margin used to determine the interest rate applicable to Eurodollar Loans times the stated face
amount of each Letter of Credit upon its issuance and upon any renewal thereof, and (ii) to each Issuing Bank, for its own account, its standard and customary fees with respect to the issuance, amendment, renewal or extension of any Letter of
Credit issued by such Issuing Bank or processing of drawings thereunder. The Letter of Credit fee shall be payable upon issuance and upon any renewal of such Letter of Credit. Any other fees payable to an Issuing Bank pursuant to this
Section 3.05(b) shall be payable within 10 days after demand. All Letter of Credit fees and fronting fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case
interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 

(c) Administrative Agent Fees. The Borrower agrees to pay to the Administrative Agent, for its own account, fees
payable in the amounts and at the times specified in the Fee Letter, or otherwise separately agreed upon between the Borrower and the Administrative Agent. 
 (d) Borrowing Base Fees. The Borrower agrees to pay to the Administrative Agent, for the account of each Lender then party to this Agreement, ratably in accordance with its Applicable Percentage,
(i) a Borrowing Base fee equal to the 1.25% times the Initial Borrowing Base, payable on the Effective Date and (ii) a Borrowing Base increase fee equal to 1.25% times the increase of the Borrowing Base on the amount of such increase over
the highest Borrowing Base previously in effect, payable on the effective date of any such increase to the Borrowing Base. 

  
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 (e) Engineering Fee. Unless waived in writing by the Administrative
Agent, the Borrower agrees to pay to the Administrative Agent, for its own account, an engineering fee equal to $7,500.00 upon each request by the Borrower to redetermine the Borrowing Base pursuant to Section 2.07(b)(iii). Such
engineering fee shall be paid at the time such request for redetermination is made. 
 ARTICLE IV 

Payments; Pro Rata Treatment; Sharing of Set-offs. 

Section 4.01 Payments Generally; Pro Rata Treatment; Sharing of Set-offs. 

(a) Payments by the Borrower. The Borrower shall make each payment required to be made by it hereunder (whether of
principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 5.01, Section 5.02, Section 5.03 or otherwise) prior to 12:00 noon, Houston, Texas time, on the date when due, in
dollars that constitute immediately available funds, without defense, deduction, recoupment, set-off or counterclaim. Fees, once paid, shall not be refundable under any circumstances absent manifest error (e.g., as a result of a clerical mistake).
Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to
the Administrative Agent at its offices specified in Section 12.01, except payments to be made directly to an Issuing Bank as expressly provided herein and except that payments pursuant to Section 5.01, Section 5.02,
Section 5.03 and Section 12.03 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient
promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest
thereon shall be payable for the period of such extension. All payments hereunder shall be made in dollars. 

(b) Application of Insufficient Payments. If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties. 

(c) Sharing of Payments by Lenders. If the Agent or any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in LC Disbursements resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans
and participations 

  
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in LC Disbursements and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value)
participations in the Loans and participations in LC Disbursements of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Loans and participations in LC Disbursements; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations
shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this Section 4.01(c) shall not be construed to apply to any payment made by the Borrower pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements to any assignee or participant, other
than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this Section 4.01(c) shall apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law,
that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the
Borrower in the amount of such participation. 
 (d) If any Lender shall fail to make any payment required to be
made by it pursuant to Section 2.05(a), 2.08(d) or (e), 4.02 or 12.03(c), then the Administrative Agent may, in its discretion and notwithstanding any contrary provision hereof, (i) apply any amounts
thereafter received by the Administrative Agent for the account of such Lender and for the benefit of the Administrative Agent or the Issuing Bank to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations
are fully paid, and/or (ii) hold any such amounts in a segregated account as cash collateral for, and application to, any future funding obligations of such Lender under such Sections; in the case of each of (i) and (ii) above, in any
order as determined by the Administrative Agent in its discretion. 
 Section 4.02 Presumption of Payment
by the Borrower. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or any Issuing Bank that the Borrower will
not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or such Issuing Bank, as the case may be, the
amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or such Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to
such Lender or such Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation. 
 Section 4.03 Certain Deductions by the Administrative Agent. If any Lender shall fail to make any payment required to be made by it pursuant to Section 2.05(b),
Section 2.08(e) or Section 4.02 then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such
Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid. 

  
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 Section 4.04 Disposition of Proceeds. The Security Instruments
contain an assignment by the Borrower unto and in favor of the Administrative Agent for the benefit of the Lenders of all of the Borrower’s interest in and to production and all proceeds attributable thereto that may be produced from or
allocated to the Mortgaged Property. The Security Instruments further provide in general for the application of such proceeds to the satisfaction of the Obligations and other obligations described therein and secured thereby. Notwithstanding the
assignment contained in such Security Instruments, until the occurrence of an Event of Default, (a) the Administrative Agent and the Lenders agree that they will neither notify the purchaser or purchasers of such production nor take any other
action to cause such proceeds to be remitted to the Administrative Agent or the Lenders, but the Lenders will instead permit such proceeds to be paid to the Borrower and its Restricted Subsidiaries and (b) the Lenders hereby authorize the
Administrative Agent to take such actions as may be necessary to cause such proceeds to be paid to the Borrower and/or such Restricted Subsidiaries. 
 ARTICLE V 
 Increased Costs; Break Funding Payments; Taxes;
Illegality; Defaulting Lenders 
 Section 5.01 Increased Costs. 

(a) Eurodollar Changes in Law. If any Change in Law shall: 

(i) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets
of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate); or 

(ii) impose on any Lender or the London interbank market any other condition affecting this Agreement or
Eurodollar Loans made by such Lender; 
 and the result of any of the foregoing shall be to increase the cost to such Lender of
making or maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to reduce the amount of any sum received or receivable by such Lender (whether of principal, interest or otherwise), then the Borrower will pay to
such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered. 
 (b) Capital Requirements. If any Lender or any Issuing Bank determines that any Change in Law regarding capital requirements has or would have the effect of reducing the rate of return on such
Lender’s or such Issuing Bank’s capital or on the capital of such Lender’s or such Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by,
such Lender, or the Letters of Credit issued by such Issuing Bank, to a level below that which such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company could have achieved but for such Change in Law (taking
into consideration such Lender’s or such Issuing Bank’s policies and the policies 

  
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of such Lender’s or such Issuing Bank’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender or such Issuing Bank, as the case
may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company for any such reduction suffered. 

(c) Certificates. A certificate of a Lender or any Issuing Bank setting forth the amount or amounts necessary to
compensate such Lender or such Issuing Bank or its holding company, as the case may be, as specified in Section 5.01(a) or (b) and reasonably detailed calculations therefor shall be delivered to the Borrower and shall be
conclusive absent manifest error. The Borrower shall pay such Lender or such Issuing Bank, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof. 

(d) Effect of Failure or Delay in Requesting Compensation. Failure or delay on the part of any Lender or any
Issuing Bank to demand compensation pursuant to this Section 5.01 shall not constitute a waiver of such Lender’s or such Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to
compensate a Lender or an Issuing Bank pursuant to this Section 5.01 for any increased costs or reductions incurred more than 90 days prior to the date that such Lender or such Issuing Bank, as the case may be, notifies the Borrower of the
Change in Law giving rise to such increased costs or reductions and of such Lender’s or such Issuing Bank’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased
costs or reductions is retroactive, then the 90-day period referred to above shall be extended to include the period of retroactive effect thereof. 
 Section 5.02 Break Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan other than on the last day of an Interest Period applicable thereto
(including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan into an ABR Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any
Eurodollar Loan on the date specified in any notice delivered pursuant hereto, or (d) the assignment of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant
to Section 5.04(b), then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed
to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been
applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period
for such Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a
comparable amount and period from other banks in the Eurodollar market. A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section 5.02 and reasonably detailed
calculations therefor shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof. 

  
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 Section 5.03 Taxes. 

(a) Payments Free of Taxes. Any and all payments by or on account of any obligation of the Borrower under any Loan
Document shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum
payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 5.03(a)), the Administrative Agent, Lender or Issuing Bank (as the case
may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law. 
 (b) Payment of Other Taxes by the Borrower. The Borrower
shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law. 
 (c)
Indemnification by the Borrower. The Borrower shall indemnify the Administrative Agent, each Lender and each Issuing Bank, within ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
paid by the Administrative Agent, such Lender or such Issuing Bank, as the case may be, on or with respect to any payment by or on account of any obligation of the Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on
or attributable to amounts payable under this Section 5.03) and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed
or asserted by the relevant Governmental Authority. A certificate of the Administrative Agent, a Lender or an Issuing Bank as to the amount of such payment or liability under this Section 5.03 shall be delivered to the Borrower and shall
be conclusive absent manifest error. 
 (d) Evidence of Payments. As soon as practicable after any
payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. 
 (e) Foreign Lenders. Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the Borrower is located, or any treaty to
which such jurisdiction is a party, with respect to payments under this Agreement or any other Loan Document shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable law, such properly
completed and executed documentation prescribed by applicable law or reasonably requested by the Borrower as will permit such payments to be made without withholding or at a reduced rate. 

(f) Tax Refunds. If the Administrative Agent or a Lender determines, in its reasonable discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section 5.03, it shall pay over such refund to the Borrower
(but only to 

  
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the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section 5.03 with respect to the Taxes or Other Taxes giving rise to such refund), net of
all out-of-pocket expenses of the Administrative Agent or such Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided, that the Borrower, upon the request of the
Administrative Agent or such Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the
Administrative Agent or such Lender is required to repay such refund to such Governmental Authority. This Section 5.03 shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other
information relating to its taxes which it deems confidential) to the Borrower or any other Person. 

Section 5.04 Mitigation Obligations. 

(a) Designation of Different Lending Office. If any Lender requests compensation under Section 5.01,
or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 5.03, then such Lender shall use reasonable efforts to designate a different
lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 5.01 or Section 5.03, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be
disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. 

(b) Replacement of Lenders. If (i) any Lender requests compensation under Section 5.01,
(ii) the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 5.03, (iii) any Lender becomes a Defaulting Lender, or (iv) any Lender has
not approved (or is not deemed to have approved) an increase in the Borrowing Base proposed by the Administrative Agent pursuant to Section 2.07(c)(iii), then the Borrower may, at its sole expense and effort, upon notice to such Lender
and the Administrative Agent, (A) require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 12.04(b)), all its interests, rights and obligations under this
Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment) or (B) require such Lender to be removed as a Lender under this Agreement and the other Loan Documents with
a corresponding reduction in the Aggregate Maximum Credit Amount equal to the Maximum Credit Amount of such Lender; provided that, (1) in the case of a required assignment of interest, the Borrower shall have received the prior written
consent of the Administrative Agent, which consent shall not unreasonably be withheld, (2) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (3) in the case
of any such assignment resulting from a claim for compensation under Section 5.01 or payments required to be made pursuant to Section 5.03, such assignment will result in a reduction in such

  
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compensation or payments. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances
entitling the Borrower to require such assignment and delegation cease to apply. 
 Section 5.05
Illegality. Notwithstanding any other provision of this Agreement, in the event that it becomes unlawful for any Lender or its applicable lending office to honor its obligation to make or maintain Eurodollar Loans either generally or
having a particular Interest Period hereunder, then (a) such Lender shall promptly notify the Borrower and the Administrative Agent thereof and such Lender’s obligation to make such Eurodollar Loans shall be suspended (the
“Affected Loans”) until such time as such Lender may again make and maintain such Eurodollar Loans and (b) all Affected Loans which would otherwise be made by such Lender shall be made instead as ABR Loans (and, if such Lender
so requests by notice to the Borrower and the Administrative Agent, all Affected Loans of such Lender then outstanding shall be automatically converted into ABR Loans on the date specified by such Lender in such notice) and, to the extent that
Affected Loans are so made as (or converted into) ABR Loans, all payments of principal which would otherwise be applied to such Lender’s Affected Loans shall be applied instead to its ABR Loans. 

Section 5.06 Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary, if any
Lender becomes a Defaulting Lender, the following provisions shall apply for so long as such Lender is a Defaulting Lender: 
 (a) fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender pursuant to Section 3.05; 

(b) the Maximum Credit Amount and Credit Exposure of such Defaulting Lender shall not be included in determining whether
all Lenders or the Required Lenders have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant to Section 12.02), provided that any waiver, amendment or modification requiring the consent of
all Lenders or each affected Lender which affects such Defaulting Lender differently than other affected Lenders shall require the consent of such Defaulting Lender; 

(c) if any LC Exposure exists at the time a Lender becomes a Defaulting Lender then: 

(i) all or any part of such LC Exposure shall be reallocated among the non-Defaulting Lenders in
accordance with their respective Applicable Percentages but only to the extent (x) the sum of all non-Defaulting Lenders’ Credit Exposures does not exceed the total of all non-Defaulting Lenders’ Maximum Credit Amounts and
(y) the conditions set forth in Section 6.02 are satisfied at such time; and 

(ii) if the reallocation described in clause (i) above cannot, or can only partially, be effected,
the Borrower shall within one Business Day following notice by the Administrative Agent cash collateralize such Defaulting Lender’s LC Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) in accordance
with the procedures set forth in Section 2.08(j) for so long as such LC Exposure is outstanding; 

  
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 (iii) if the Borrower cash collateralizes any portion of
such Defaulting Lender’s LC Exposure pursuant to clause (ii) above, the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 3.05(b) with respect to such Defaulting Lender’s LC
Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized; 

(iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to clause (i) above,
then the fees payable to the Lenders pursuant to Section 3.05 shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages; or 

(v) if any Defaulting Lender’s LC Exposure is neither cash collateralized nor reallocated pursuant to
this Section 5.06(c), then, without prejudice to any rights or remedies of the Issuing Bank or any Lender hereunder, all commitment fees that otherwise would have been payable to such Defaulting Lender (solely with respect to the portion
of such Defaulting Lender’s Commitment that was utilized by such LC Exposure) and letter of credit fees payable under Section 3.05(b) with respect to such Defaulting Lender’s LC Exposure shall be payable to the Issuing Bank
until such LC Exposure is cash collateralized and/or reallocated; and 
 (d) so long as any Lender is a
Defaulting Lender, the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related LC Exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash
collateral will be provided by the Borrower in accordance with Section 5.06(c), and participating interests in any such newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent
with Section 5.06(c)(i) (and Defaulting Lenders shall not participate therein). 
 (e) In the event
that the Administrative Agent, the Borrower and the Issuing Bank each agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the LC Exposure of the Lenders shall be readjusted to
reflect the inclusion of such Lender’s Commitment and on such date such Lender shall purchase at par such of the Loans of the other Lenders as the Administrative shall determine may be necessary in order for such Lender to hold such Loans in
accordance with its Applicable Percentage. 
 ARTICLE VI 

Conditions Precedent 
 Section 6.01 Conditions to Effectiveness. This Agreement shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with
Section 12.02): 
 (a) The Administrative Agent and the Lenders shall have received all fees and other
amounts due and payable, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder. 

  
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 (b) The Administrative Agent shall have received a certificate of the
Secretary or an Assistant Secretary of each Loan Party setting forth (i) resolutions of its board of directors with respect to the authorization of such Loan Party to execute and deliver the Loan Documents to which it is a party and to enter
into the transactions contemplated in those documents, (ii) the officers of such Loan Party (y) who are authorized to sign the Loan Documents to which such Loan Party is a party and (z) who will, until replaced by another officer or
officers duly authorized for that purpose, act as its representative for the purposes of signing documents and giving notices and other communications in connection with this Agreement and the Transactions, (iii) specimen signatures of such
authorized officers, and (iv) the articles or certificate of incorporation and bylaws of such Loan Party, certified as being true and complete. The Administrative Agent and the Lenders may conclusively rely on such certificate until the
Administrative Agent receives notice in writing from the Borrower to the contrary. 
 (c) The Administrative
Agent shall have received certificates of the appropriate State agencies with respect to the existence, qualification and good standing of each Loan Party. 
 (d) The Administrative Agent shall have received a compliance certificate which shall be substantially in the form of Exhibit D, duly and properly executed by a Responsible Officer and dated as of
the date of Effective Date. 
 (e) The Administrative Agent shall have received from each party hereto
counterparts (in such number as may be requested by the Administrative Agent) of this Agreement signed on behalf of such party. 
 (f) The Administrative Agent shall have received duly executed Notes payable to the order of each Lender that has requested a Note in a principal amount equal to its Maximum Credit Amount dated as of the
date hereof. 
 (g) The Administrative Agent shall have received from each party thereto duly executed
counterparts (in such number as may be requested by the Administrative Agent) of the Security Instruments. 

(h) The Administrative Agent shall have received the opinions of Vinson Elkins LLP, special counsel to the Borrower, and
Liskow & Lewis, special Louisiana counsel to the Borrower, in form and substance satisfactory to Administrative Agent. 
 (i) The Administrative Agent shall have received a certificate of insurance coverage of the Borrower evidencing that the Borrower is carrying insurance in accordance with Section 7.12.

 (j) The Administrative Agent shall have received a certificate of a Responsible Officer of the Borrower
certifying that the Borrower has received all consents and approvals required by Section 7.03. 

(k) The Administrative Agent shall have received the financial statements referred to in Section 7.04(a).

  
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 (l) The Administrative Agent shall have received title information
acceptable to Administrative Agent setting forth the status of title to at least 80% of the total value of the proved Oil and Gas Properties evaluated in the Initial Reserve Report. 

(m) The Administrative Agent shall be reasonably satisfied with the environmental condition of the Oil and Gas Properties
of the Borrower and its Subsidiaries. 
 (n) The Administrative Agent shall have received the Initial Reserve
Report accompanied by a certificate covering the matters described in Section 8.12(c). 
 (o) The
Administrative Agent shall have received appropriate judgment, tax, bankruptcy and UCC search certificates reflecting no prior judgment or taxes are outstanding or unpaid by the Borrower or Liens encumbering the Properties of the Borrower for each
of the following jurisdictions: Louisiana, Texas, and any other jurisdiction requested by the Administrative Agent; other than those being assigned or released on or prior to the Effective Date or Liens permitted by Section 9.03.

 (p) The Administrative Agent shall have received evidence satisfactory to the Administrative Agent that all
Liens granted in favor of PPVA Black Elk (Cayman) Ltd. as collateral agent thereunder have been released or assigned to Administrative Agent for the benefit of the Lenders. 

(q) The Administrative Agent shall be reasonably satisfied that the Borrower has commenced the transfer to or
establishment with the Administrative Agent, as the case may be, of all of the deposit, escrow and investment accounts of the Borrower and its Subsidiaries. 
 (r) The Administrative Agent shall have received from each party thereto duly executed counterparts (in such number as may be requested by the Administrative Agent) of the BP Intercreditor Agreement,
the Second Lien Intercreditor Agreement and the W&T Intercreditor Agreement. 
 (s) The Administrative Agent
shall have received such other documents as the Administrative Agent or its special counsel may reasonably request. 
 Section 6.02 Each Credit Event. The obligation of each Lender to make a Loan on the occasion of any Borrowing (including the initial funding), and of each Issuing Bank to issue, amend, renew
or extend any Letter of Credit, is subject to the satisfaction of the following conditions: 
 (a) At the time
of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default shall have occurred and be continuing. 

(b) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension
of such Letter of Credit, as applicable, no event, development or condition that has or could reasonably be expected to have a Material Adverse Effect shall have occurred. 

  
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 (c) The representations and warranties of the Borrower set forth in this
Agreement and in the other Loan Documents shall be true and correct on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, except to the extent any such
representations and warranties are expressly limited to an earlier date, in which case, on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, such representations
and warranties shall continue to be true and correct as of such specified earlier date. 
 (d) The making of
such Loan or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, would not conflict with, or cause any Lender or any Issuing Bank to violate or exceed, any applicable Governmental Requirement, and no Change in Law
shall have occurred, and no litigation shall be pending or threatened, which does or, with respect to any threatened litigation, seeks to, enjoin, prohibit or restrain, the making or repayment of any Loan, the issuance, amendment, renewal, extension
or repayment of any Letter of Credit or any participations therein or the consummation of the transactions contemplated by this Agreement or any other Loan Document. 

(e) The receipt by the Administrative Agent of a Borrowing Request in accordance with Section 2.03 or a
request for a Letter of Credit in accordance with Section 2.08(b), as applicable. 
 (f) In connection
with the execution and delivery of the Security Instruments, the Administrative Agent shall be reasonably satisfied that the Security Instruments create first priority, perfected Liens (subject only to Excepted Liens identified in clauses
(a) to (d) and (f) of the definition thereof, but subject to the provisos at the end of such definition) on at least 80% of the total value of the proved Oil and Gas Properties evaluated in the initial Reserve Report. 

Each request for a Borrowing and each issuance, amendment, renewal or extension of any Letter of Credit shall be deemed
to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in Section 6.02(a) through (e). 
 Section 6.03 Condition Subsequent. Borrowers shall deliver each of the following within the specified time period: 

(a) On or before March 31, 2011, Borrower shall deliver to Administrative Agent title opinions acceptable to
Administrative Agent on the Oil and Gas Properties listed on Schedule 6.03. 
 ARTICLE VII 

Representations and Warranties 
 The Borrower represents and warrants to the Lenders that: 

Section 7.01 Organization; Powers. Each of the Borrower and the Subsidiaries is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority, and has all material governmental licenses, authorizations, consents and approvals necessary, to own its assets and to carry
on its business as 

  
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now conducted, and is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required, except where failure to have such power, authority,
licenses, authorizations, consents, approvals and qualifications could not reasonably be expected to have a Material Adverse Effect. Schedule 7.01 is an accurate corporate organizational chart of Borrower and its Subsidiaries sharing the
ownership of all Equity Interests in such Persons. 
 Section 7.02 Authority; Enforceability. The
Transactions to be entered into by each Loan Party are within such Loan Party’s corporate powers and have been duly authorized by all necessary corporate and, if required, stockholder action (including, without limitation, any action required
to be taken by any class of directors of such Loan Party or any other Person, whether interested or disinterested, in order to ensure the due authorization of the Transactions). Each Loan Document to which any Loan Party is a party has been duly
executed and delivered by such Loan Party and constitutes a legal, valid and binding obligation of such Loan Party enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 
 Section 7.03 Approvals; No Conflicts. The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or
any other third Person (including shareholders or any class of directors, whether interested or disinterested, of any Loan Party or any other Person), nor is any such consent, approval, registration, filing or other action necessary for the validity
or enforceability of any Loan Document or the consummation of the transactions contemplated thereby, except such as have been obtained or made and are in full force and effect other than (i) the recording and filing of the Security Instruments
as required by this Agreement and (ii) those third party approvals or consents which, if not made or obtained, would not cause a Default hereunder, could not reasonably be expected to have a Material Adverse Effect or do not have an adverse
effect on the enforceability of the Loan Documents, (b) will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Borrower or any Subsidiary or any order of any Governmental Authority,
(c) will not violate or result in a default under any indenture, agreement or other instrument binding upon the Borrower or any Subsidiary or its Properties, or give rise to a right thereunder to require any payment to be made by the Borrower
or such Subsidiary and (d) will not result in the creation or imposition of any Lien on any Property of the Borrower or any Subsidiary (other than the Liens created by the Loan Documents). 

Section 7.04 Financial Condition; No Material Adverse Change. 

(a) The Borrower has heretofore furnished to the Lenders its (i) audited consolidated balance sheet and statement of
income, stockholders equity and cash flows as of and for the fiscal year ended December 31, 2009, all reported on by a firm of independent public accountants acceptable to the Administrative Agent and (ii) unaudited consolidated balance
sheet and statements of income, stockholders equity and cash flows as of and for the fiscal quarter and the portion of the fiscal year ended September 30, 2010, certified by a Financial Officer. Such financial statements present fairly, in all
material respects, the financial position and results of operations and cash flows of the Borrower and its Consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments and the absence
of footnotes in the case of the unaudited quarterly financial statements. 

  
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 (b) Since September 30, 2010, (i) there has been no event,
development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect and (ii) the business of the Borrower and its Subsidiaries has been conducted only in the ordinary course consistent with past business
practices. 
 Section 7.05 Litigation. 

(a) Except as set forth on Schedule 7.05, there are no actions, suits, investigations or proceedings by or before
any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened in writing against or affecting the Borrower or any Subsidiary (i) as to which there is a reasonable possibility of an adverse
determination that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) that involve any Loan Document or the Transactions. 

(b) Since the date of this Agreement, there has been no change in the status of the matters disclosed in Schedule
7.05 that, individually or in the aggregate, has resulted in, or materially increased the likelihood of, a Material Adverse Effect. 
 Section 7.06 Environmental Matters. Except as could not reasonably be expected to have a Material Adverse Effect (or with respect to (c), (d) and (e) below, where the failure to
take such actions could not be reasonably expected to have a Material Adverse Effect), to the knowledge of Borrower: 
 (a) neither any Property of the Borrower or any Subsidiary nor the operations conducted thereon violate any order or requirement of any court or Governmental Authority or any Environmental Laws.

 (b) no Property of the Borrower or any Subsidiary nor the operations currently conducted thereon or by any
prior owner or operator of such Property or operation, are in violation of or subject to any existing, pending or threatened action, suit, investigation, inquiry or proceeding by or before any court or Governmental Authority or to any remedial
obligations under Environmental Laws. 
 (c) all notices, permits, licenses, exemptions, approvals or similar
authorizations, if any, required to be obtained or filed in connection with the operation or use of any and all Property of the Borrower and each Subsidiary, including, without limitation, past or present treatment, storage, disposal or release of a
hazardous substance, oil and gas waste or solid waste into the environment, have been duly obtained or filed, and the Borrower and each Subsidiary are in compliance with the terms and conditions of all such notices, permits, licenses and similar
authorizations. 
 (d) all hazardous substances, solid waste and oil and gas waste, if any, generated at any and
all Property of the Borrower or any Subsidiary have in the past been transported, treated and disposed of in accordance with Environmental Laws and so as not to pose an imminent and substantial endangerment to public health or welfare or the
environment, and all such transport 

  
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carriers and treatment and disposal facilities have been and are operating in compliance with Environmental Laws and so as not to pose an imminent and substantial endangerment to public health or
welfare or the environment, and are not the subject of any existing, pending or threatened action, investigation or inquiry by any Governmental Authority in connection with any Environmental Laws. 

(e) the Borrower has taken all steps reasonably necessary to determine and has determined that no oil, hazardous
substances, solid waste or oil and gas waste, have been disposed of or otherwise released and there has been no threatened release of any oil, hazardous substances, solid waste or oil and gas waste on or to any Property of the Borrower or any
Subsidiary except in compliance with Environmental Laws and so as not to pose an imminent and substantial endangerment to public health or welfare or the environment. 

(f) to the extent applicable, all Property of the Borrower and each Subsidiary currently satisfies all design, operation,
and equipment requirements imposed by the OPA, and the Borrower does not have any reason to believe that such Property, to the extent subject to the OPA, will not be able to maintain compliance with the OPA requirements during the term of this
Agreement. 
 (g) neither the Borrower nor any Subsidiary has any known contingent liability or Remedial Work in
connection with any release or threatened release of any oil, hazardous substance, solid waste or oil and gas waste into the environment. 
 Section 7.07 Compliance with the Laws and Agreements; No Defaults. Except as could not be reasonably be expected to have a Material Adverse Effect: 

(a) Each of the Borrower and each Subsidiary is in compliance with all Governmental Requirements applicable to it or its
Property and all agreements and other instruments binding upon it or its Property, and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the
conduct of its business, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 

(b) Neither the Borrower nor any Subsidiary is in default nor has any event or circumstance occurred which, but for the
expiration of any applicable grace period or the giving of notice, or both, would constitute a default or would require the Borrower or a Subsidiary to Redeem or make any offer to Redeem under any indenture, note, credit agreement or instrument
pursuant to which any Material Indebtedness is outstanding or by which the Borrower or any Subsidiary or any of their Properties is bound. 
 (c) No Default has occurred and is continuing. 
 Section 7.08
Investment Company Act. Neither the Borrower nor any Subsidiary is an “investment company” or a company “controlled” by an “investment company,” within the meaning of, or subject to regulation under, the
Investment Company Act of 1940, as amended. 

  
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 Section 7.09 Taxes. Each of the Borrower and its Subsidiaries
has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate
proceedings and for which the Borrower or such Subsidiary, as applicable, has set aside on its books adequate reserves in accordance with GAAP or (b) to the extent that the failure to do so could not reasonably be expected to result in a
Material Adverse Effect. The charges, accruals and reserves on the books of the Borrower and its Subsidiaries in respect of Taxes and other governmental charges are, in the reasonable opinion of the Borrower, adequate. No Tax Lien relating to Taxes
described in the first sentence of this Section 7.09 has been filed and, to the knowledge of the Borrower, no claim is being asserted with respect to any such Tax or other such governmental charge. 

Section 7.10 ERISA. No ERISA Event has occurred or is reasonably expected to occur that, when taken
together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. The present value of all accumulated benefit obligations under each Plan (based on
the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than $250,000 the fair market value of the assets
of such Plan, and the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed by more than $250,000 the fair market value of the assets of all such underfunded Plans. 
 Section 7.11 Disclosure; No Material Misstatements. The Borrower has disclosed to the Administrative Agent and the Lenders all agreements, instruments and corporate or other restrictions to
which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. To the knowledge of Borrower, taken as a whole, none of
the other reports, financial statements, certificates or other information furnished by or on behalf of the Borrower or any Subsidiary to the Administrative Agent or any Lender or any of their Affiliates in connection with the negotiation of this
Agreement or any other Loan Document or delivered hereunder or under any other Loan Document (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected financial information, prospect information, geological and geophysical data and engineering
projections, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time. To the knowledge of Borrower there is no fact peculiar to the Borrower or any Subsidiary which
could reasonably be expected to have a Material Adverse Effect or in the future is reasonably likely to have a Material Adverse Effect and which has not been set forth in this Agreement or the Loan Documents or the other documents, certificates and
statements furnished to the Administrative Agent or the Lenders by or on behalf of the Borrower or any Subsidiary prior to, or on, the date hereof in connection with the transactions contemplated hereby. There are no statements or conclusions known
to the Borrower in any Reserve Report which are based upon or include misleading information or fail to take into account material information regarding the matters reported therein, it being understood that projections concerning volumes
attributable to the Oil and Gas Properties and production and cost estimates contained in each Reserve Report are necessarily based upon professional opinions, estimates and projections and that the Borrower and the Subsidiaries do not warrant that
such opinions, estimates and projections will ultimately prove to have been accurate. 

  
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 Section 7.12 Insurance. The Borrower has, and has caused all
its Subsidiaries to have, (a) all insurance policies sufficient for the compliance by each of them with all material Governmental Requirements and all material agreements and (b) insurance coverage in at least amounts and against such risk
(including, without limitation, public liability) that are usually insured against by companies similarly situated and engaged in the same or a similar business for the assets and operations of the Borrower and its Subsidiaries. The Administrative
Agent and the Lenders have been named as additional insureds in respect of such liability insurance policies and the Administrative Agent has been named as loss payee with respect to Property loss insurance. 

Section 7.13 Restriction on Liens. Neither the Borrower nor any of the Restricted Subsidiaries is a party
to any material agreement or arrangement, or subject to any order, judgment, writ or decree, which either restricts or purports to restrict its ability to grant Liens to the Administrative Agent and the Lenders on or in respect of their Properties
to secure the Obligations and the Loan Documents. 
 Section 7.14 Subsidiaries. Schedule
7.14 sets forth the name of, and the ownership interest of the Borrower in, each Subsidiary of the Borrower. As of the Effective Date there are no Unrestricted Subsidiaries. 

Section 7.15 Location of Business and Offices. The Borrower’s jurisdiction of organization is Texas;
the name of the Borrower as listed in the public records of Texas is Black Elk Energy Offshore Operations, LLC; and the organizational identification number of the Borrower in Texas is 80099957 (or, in each case, as set forth in a notice delivered
to the Administrative Agent pursuant to Section 8.01(k) in accordance with Section 12.01). Each Subsidiary’s jurisdiction of organization, name as listed in the public records of its jurisdiction of organization and organizational
identification number in its jurisdiction of organization is stated on Schedule 7.14 (or as set forth in a notice delivered pursuant to Section 8.01(k)). 

Section 7.16 Properties; Titles, Etc. 

(a) Except as disclosed in Schedule 7.16, each of the Borrower and the Restricted Subsidiaries has good and
defensible title to the proved Oil and Gas Properties evaluated in the most recently delivered Reserve Report (excluding, to the extent this representation and warranty is deemed to be made after the Effective Date, any such Oil and Gas Properties
sold or transferred in compliance with Section 9.11) and good title to all its personal Properties, in each case, free and clear of all Liens except Liens permitted by Section 9.03. After giving full effect to the Excepted Liens,
the Borrower or the Restricted Subsidiary specified as the owner owns the net interests in production attributable to the Hydrocarbon Interests as reflected in the most recently delivered Reserve Report, and the ownership of such Properties shall
not in any material respect obligate the Borrower or such Restricted Subsidiary to bear the costs and expenses relating to the maintenance, development and operations of each such Property in an amount in excess of the working interest of each
Property set forth in the most recently delivered Reserve Report that is not offset by a corresponding proportionate increase in the Borrower’s or such Restricted Subsidiary’s net revenue interest in such Property. 

  
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 (b) All material leases and agreements necessary for the conduct of the
business of the Borrower and the Subsidiaries are valid and subsisting, in full force and effect, and there exists no default or event or circumstance which with the giving of notice or the passage of time or both would give rise to a default under
any such lease or leases, which could reasonably be expected to result in a Material Adverse Effect. 
 (c) The
rights and Properties presently owned, leased or licensed by the Borrower and the Subsidiaries including, without limitation, all easements and rights of way, include all rights and Properties necessary to permit the Borrower and the Subsidiaries to
conduct their business in all material respects in the same manner as its business has been conducted prior to the date hereof. 
 (d) All of the material Properties of the Borrower and the Subsidiaries which are reasonably necessary for the operation of their businesses are in good working condition and are maintained in accordance
with prudent business standards. 
 (e) The Borrower and each Subsidiary owns, or is licensed to use, all
trademarks, tradenames, copyrights, patents and other intellectual Property material to its business, and the use thereof by the Borrower and such Subsidiary does not infringe upon the rights of any other Person, except for any such infringements
that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. The Borrower and its Subsidiaries either own or have valid licenses or other rights to use all databases, geological data, geophysical
data, engineering data, seismic data, maps, interpretations and other technical information used in their businesses as presently conducted, subject to the limitations contained in the agreements governing the use of the same, which limitations are
customary for companies engaged in the business of the exploration and production of Hydrocarbons, with such exceptions as could not reasonably be expected to have a Material Adverse Effect. 

(f) As of the Effective Date, no mortgages, deeds of trust or similar documents have been filed or recorded in connection
with the Indenture. 
 Section 7.17 Maintenance of Properties. Except for such acts or failures to
act as could not be reasonably expected to have a Material Adverse Effect, the Oil and Gas Properties (and Properties unitized therewith) have been maintained, operated and developed in a good and workmanlike manner and in conformity with all
Government Requirements and in conformity with the provisions of all leases, subleases or other contracts comprising a part of the Hydrocarbon Interests and other contracts and agreements forming a part of the Oil and Gas Properties. Specifically in
connection with the foregoing, except for those as could not be reasonably expected to have a Material Adverse Effect, (i) no Oil and Gas Property is subject to having allowable production reduced below the full and regular allowable (including
the maximum permissible tolerance) because of any overproduction (whether or not the same was permissible at the time) and (ii) to the knowledge of Borrower, none of the wells comprising a part of the Oil and Gas Properties (or Properties
unitized therewith) is deviated from the vertical more than the maximum permitted by Government Requirements, and such wells are, in fact, 

  
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bottomed under and are producing from, and the well bores are wholly within, the Oil and Gas Properties (or in the case of wells located on Properties unitized therewith, such unitized
Properties). All pipelines, wells, gas processing plants, platforms and other material improvements, fixtures and equipment owned in whole or in part by the Borrower or any of its Subsidiaries that are necessary to conduct normal operations are
being maintained in a state adequate to conduct normal operations, and with respect to such of the foregoing that are operated by the Borrower or any of its Subsidiaries, in a manner consistent with the Borrower’s or its Subsidiaries’ past
practices (other than those the failure of which to maintain in accordance with this Section 7.17 could not reasonably be expect to have a Material Adverse Effect). 

Section 7.18 Gas Imbalances, Prepayments. As of the date hereof, except as set forth on
Schedule 7.18 or on the most recent certificate delivered pursuant to Section 8.12(c), on a net basis there are no gas imbalances, take or pay or other prepayments which would require the Borrower or any of the Restricted
Subsidiaries to deliver Hydrocarbons produced from the Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor. 
 Section 7.19 Marketing of Production. Except for contracts listed and in effect on the date hereof on Schedule 7.19, and thereafter either disclosed in writing to the Administrative
Agent or included in the most recently delivered Reserve Report (with respect to all of which contracts the Borrower represents that it or its Subsidiaries are receiving a price for all production sold thereunder which is computed substantially in
accordance with the terms of the relevant contract and are not having deliveries curtailed substantially below the subject Property’s delivery capacity), no material agreements exist which are not cancelable on 60 days notice or less without
penalty or detriment for the sale of production from the Borrower’s or the Restricted Subsidiaries’ Hydrocarbons (including, without limitation, calls on or other rights to purchase, production, whether or not the same are currently being
exercised) that (a) pertain to the sale of production at a fixed price and (b) have a maturity or expiry date of longer than six (6) months from the date hereof. 

Section 7.20 Swap Agreements. Schedule 7.20, as of the date hereof, and after the date hereof, each
report required to be delivered by the Borrower pursuant to Section 8.01(d), sets forth, a true and complete list of all Swap Agreements of the Borrower and each Subsidiary, the material terms thereof (including the type, term, effective
date, termination date and notional amounts or volumes), the net mark to market value thereof, all credit support agreements relating thereto (including any margin required or supplied) and the counterparty to each such agreement. 

Section 7.21 Use of Loans and Letters of Credit. The proceeds of the Loans and the Letters of Credit shall
be used to refinance existing Debt, for investment in oil and gas properties, and for general corporate purposes of the Borrower and its Subsidiaries. The Borrower and its Subsidiaries are not engaged principally, or as one of its or their important
activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). No part of the proceeds of any Loan or Letter
of Credit will be used for any purpose which violates the provisions of Regulations T, U or X of the Board. 

  
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 Section 7.22 Solvency. Before and after giving effect to the
Transactions, (a) the aggregate assets, at a fair valuation, of the Borrower and its Subsidiaries, taken as a whole, will exceed the aggregate Debt of the Borrower on a consolidated basis, as the Debt becomes absolute and matures, (b) none
of the Borrower nor any Subsidiary will have incurred or intended to incur, and will not believe that it will incur, Debt beyond its ability to pay such Debt as such Debt becomes absolute and matures and (c) none of the Borrower nor any
Subsidiary will have (nor will have any reason to believe that it will have thereafter) unreasonably small capital for the conduct of its business. 
 ARTICLE VIII 
 Affirmative Covenants 

Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable
hereunder and all other amounts payable under the Loan Documents shall have been paid in full and all Letters of Credit shall have expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and agrees with the
Lenders that: 
 Section 8.01 Financial Statements; Ratings Change; Other Information. The
Borrower will furnish to the Administrative Agent and each Lender: 
 (a) Annual Financial Statements. As
soon as available, but in any event in accordance with then applicable law and not later than 120 days after the end of each fiscal year of the Borrower, its audited consolidated (and, if there are any Unrestricted Subsidiaries, consolidating)
balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by a firm of
independent public accountants proposed by Borrower and approved by the Administrative Agent (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit) to
the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied. 
 (b) Quarterly Financial Statements. As soon as available, but in any event in
accordance with then applicable law and not later than 45 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, its consolidated (and, if there are any Unrestricted Subsidiaries, consolidating) balance
sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the
corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of
operations of the Borrower and its Consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes. 

(c) Certificate of Financial Officer – Compliance. Concurrently with any delivery of financial statements
under Section 8.01(a) or Section 8.01(b), a certificate of a Financial Officer in substantially the form of Exhibit D hereto (i) certifying as to whether a Default has occurred

  
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and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations
demonstrating compliance with Section 8.13(b) and Section 9.01 and (iii) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in
Section 7.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate. 
 (d) Certificate of Financial Officer – Swap Agreements. Concurrently with the delivery of each Reserve Report hereunder, a certificate of a Financial Officer, in form and substance reasonably
satisfactory to the Administrative Agent, setting forth as of a recent date, a true and complete list of all Swap Agreements of the Borrower and each Subsidiary, the material terms thereof (including the type, term, effective date, termination date
and notional amounts or volumes), the net mark-to-market value therefor, any new credit support agreements relating thereto not listed on Schedule 7.20, any margin required or supplied under any credit support document, and the counterparty
to each such agreement. 
 (e) Certificate of Insurer – Insurance Coverage. Concurrently with any
delivery of financial statements under Section 8.01(a), a certificate of insurance coverage from each insurer with respect to the insurance required by Section 8.07, in form and substance satisfactory to the Administrative Agent,
and, if requested by the Administrative Agent or any Lender, all copies of the applicable policies. 
 (f)
Other Accounting Reports. Promptly upon receipt thereof, a copy of each other report or letter (except standard and customary correspondence) submitted to the Borrower or any of its Subsidiaries by independent accountants in connection with
any annual, interim or special audit made by them of the books of the Borrower or any such Subsidiary, and a copy of any response by the Borrower or any such Subsidiary, or the board of directors of the Borrower or any such Subsidiary, to such
letter or report. 
 (g) SEC and Other Filings; Reports to Shareholders. Promptly after the same become
publicly available, copies of all periodic and other reports, proxy statements and other materials filed by the Borrower or any Subsidiary with the SEC, or with any national securities exchange, or distributed by the Borrower to its shareholders
generally, as the case may be. 
 (h) Notices Under Material Instruments. Promptly after the furnishing
thereof, copies of any financial statement, report or notice furnished to or by any Person pursuant to the terms of any preferred stock designation, indenture, loan or credit or other similar agreement, other than this Agreement and not otherwise
required to be furnished to the Lenders pursuant to any other provision of this Section 8.01. 
 (i)
Lists of Purchasers. Concurrently with the delivery of any Reserve Report to the Administrative Agent pursuant to Section 8.12, a list of Persons purchasing Hydrocarbons from the Borrower or any Subsidiary accounting for at least
80% of the revenues resulting from the sale of all Hydrocarbons in the one year period prior to the “as of” date of such Reserve Report. 

  
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 (j) Notice of Casualty Events. Prompt written notice, and in any
event within five (5) Business Days, of the occurrence of any Casualty Event or the commencement of any action or proceeding that could reasonably be expected to result in a Casualty Event. 

(k) Information Regarding the Loan Parties. Prompt written notice (and in any event within ten (10) Business
Days prior thereto) of any change (i) in any Loan Party’s corporate name or in any trade name used to identify the Borrower in the conduct of its business or in the ownership of its Properties, (ii) in any Loan Party’s identity
or corporate structure or in the jurisdiction in which such Loan Party is incorporated or formed, (iii) in any Loan Party’s jurisdiction of organization or any Loan Party’s organizational identification number in such jurisdiction of
organization, and (iv) in any Loan Party’s federal taxpayer identification number. 
 (l)
Production Report and Lease Operating Statements. Within 45 days after the end of each fiscal quarter, a report setting forth, for each calendar month during the then current fiscal year to date, the volume of production and sales
attributable to production (and the prices at which such sales were made and the revenues derived from such sales) for each such calendar month from the Oil and Gas Properties, and setting forth the related ad valorem, severance and production taxes
and lease operating expenses attributable thereto and incurred for each such calendar month. 
 (m) Notices
of Certain Changes. Promptly, but in any event within five (5) Business Days after the execution thereof, copies of any amendment, modification or supplement to the certificate or articles of incorporation, by-laws, any preferred stock
designation or any other organic document of the Borrower or any Subsidiary. 
 (n) Other Requested
Information. Promptly following any request therefor, such other information regarding the operations, business affairs and financial condition of the Borrower or any Subsidiary (including, without limitation, any Plan or Multiemployer Plan and
any reports or other information required to be filed under ERISA), or compliance with the terms of this Agreement or any other Loan Document, as the Administrative Agent or any Lender may reasonably request. 

Section 8.02 Notices of Material Events. The Borrower will furnish to the Administrative Agent prompt
written notice of the following: 
 (a) the occurrence of any Default; 

(b) the filing or commencement of, or the threat in writing of, any action, suit, proceeding, investigation or
arbitration by or before any arbitrator or Governmental Authority against the Borrower or any Affiliate thereof not previously disclosed in writing to the Lenders or any material adverse development in any action, suit, proceeding, investigation or
arbitration previously disclosed to the Lenders that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; 
 (c) the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect; and 

  
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 (d) any other development that results in, or could reasonably be expected
to result in, a Material Adverse Effect. 
 Each notice delivered under this Section 8.02 shall be accompanied by a
statement of a Responsible Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 

Section 8.03 Existence; Conduct of Business. The Borrower will, and will cause each Subsidiary to, do or
cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of its business and maintain, if necessary, its
qualification to do business in each other jurisdiction in which its Oil and Gas Properties are located or the ownership of its Properties requires such qualification, except where the failure to so qualify could not reasonably be expected to have a
Material Adverse Effect; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 9.10. 

Section 8.04 Payment of Obligations. The Borrower will, and will cause each Subsidiary to, pay its
obligations, including Tax liabilities of the Borrower and all of its Subsidiaries before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate
proceedings and the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) the failure to make payment pending such contest could not reasonably be expected to result in a
Material Adverse Effect or result in the seizure or levy of any material Property of the Borrower or any Subsidiary. 
 Section 8.05 Performance of Obligations under Loan Documents. The Borrower will pay the Loans and the Notes according to the reading, tenor and effect thereof, and the Borrower will, and
will cause each Subsidiary to, do and perform every act and discharge all of the obligations to be performed and discharged by them under the Loan Documents, including, without limitation, this Agreement, at the time or times and in the manner
specified. 
 Section 8.06 Operation and Maintenance of Properties. Except, in each case, where
the failure to comply could not reasonably be expected to have a Material Adverse Effect, the Borrower, at its own expense, will, and will cause each Subsidiary to: 

(a) operate its Oil and Gas Properties and other material Properties or cause such Oil and Gas Properties and other
material Properties to be operated in accordance with the practices of the industry and in compliance with all applicable contracts and agreements and in compliance with all Governmental Requirements, including, without limitation, applicable pro
ration requirements and Environmental Laws, and all applicable laws, rules and regulations of every other Governmental Authority from time to time constituted to regulate the development and operation of its Oil and Gas Properties and the production
and sale of Hydrocarbons and other minerals therefrom. 
 (b) keep and maintain all Property material to the
conduct of its business in good working order and condition (ordinary wear and tear excepted), preserve, maintain and keep in good repair, working order and efficiency (ordinary wear and tear excepted) all of its material producing Oil and Gas
Properties and other material Properties, including, without limitation, all equipment, machinery and facilities. 

  
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 (c) promptly pay and discharge, or make reasonable and customary efforts to
cause to be paid and discharged, all delay rentals, royalties, expenses and obligations accruing under the leases or other agreements affecting or pertaining to its proved producing Oil and Gas Properties and will do all other things necessary to
keep unimpaired their rights with respect thereto and prevent any forfeiture thereof or default thereunder. 

(d) promptly perform or make reasonable and customary efforts to cause to be performed, in accordance with industry
standards, the obligations required by each and all of the assignments, deeds, leases, sub-leases, contracts and agreements affecting its interests in its proved producing Oil and Gas Properties and other material Properties. 

(e) operate its Oil and Gas Properties and other material Properties or cause or make reasonable and customary efforts to
cause such Oil and Gas Properties and other material Properties to be operated in accordance with the practices of the industry and in material compliance with all applicable contracts and agreements and in compliance in all material respects with
all Governmental Requirements. 
 (f) to the extent the Borrower is not the operator of any Property, the
Borrower shall use reasonable efforts to cause the operator to comply with this Section 8.06. 

Section 8.07 Insurance. The Borrower will, and will cause each Subsidiary to, maintain, with financially
sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations. The loss payable clauses or
provisions in said insurance policy or policies insuring any of the collateral for the Loans shall be endorsed in favor of and made payable to the Administrative Agent as its interests may appear and such policies shall name the Administrative Agent
and the Lenders as “additional insureds” and provide that the insurer will endeavor to give at least 30 days prior notice of any cancellation to the Administrative Agent. 

Section 8.08 Books and Records; Inspection Rights. The Borrower will, and will cause each Subsidiary to,
keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Borrower will, and will cause each Subsidiary to, permit any representatives
designated by the Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its Properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers
and independent accountants, all at such reasonable times during normal business hours and as often as reasonably requested on an individual and aggregate basis. 

Section 8.09 Compliance with Laws. The Borrower will, and will cause each Subsidiary to, comply with all
laws, rules, regulations and orders of any Governmental Authority applicable to it or its Property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

  
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 Section 8.10 Environmental Matters. 

(a) The Borrower shall at its sole expense: (i) comply, and shall cause its Properties and operations and each
Subsidiary and each Subsidiary’s Properties and operations to comply, with all applicable Environmental Laws, the breach of which could be reasonably expected to have a Material Adverse Effect; (ii) not dispose of or otherwise release, and
shall cause each Subsidiary not to dispose of or otherwise release, any oil, oil and gas waste, hazardous substance, or solid waste on, under, about or from any of the Borrower’s or its Subsidiaries’ Properties or any other Property to the
extent caused by the Borrower’s or any of its Subsidiaries’ operations except in compliance with applicable Environmental Laws, the disposal or release of which could reasonably be expected to have a Material Adverse Effect;
(iii) timely obtain or file, and shall cause each Subsidiary to timely obtain or file, all notices, permits, licenses, exemptions, approvals, registrations or other authorizations, if any, required under applicable Environmental Laws to be
obtained or filed in connection with the operation or use of the Borrower’s or its Subsidiaries’ Properties, which failure to obtain or file could reasonably be expected to have a Material Adverse Effect; promptly commence and diligently
prosecute to completion, and shall cause each Subsidiary to promptly commence and diligently prosecute to completion, any assessment, evaluation, investigation, monitoring, containment, cleanup, removal, repair, restoration, remediation or other
remedial obligations (collectively, the “Remedial Work”) in the event any Remedial Work is required or reasonably necessary under applicable Environmental Laws because of or in connection with the actual or suspected past, present
or future disposal or other release of any oil, oil and gas waste, hazardous substance or solid waste on, under, about or from any of the Borrower’s or its Subsidiaries’ Properties, which failure to commence and diligently prosecute to
completion could reasonably be expected to have a Material Adverse Effect; and (iv) establish and implement, and shall cause each Subsidiary to establish and implement, such reasonable procedures as may be necessary to assure that the
Borrower’s and its Subsidiaries’ obligations under this Section 8.10(a) are timely and fully satisfied, which failure to establish and implement could reasonably be expected to have a Material Adverse Effect. 

(b) The Borrower will promptly, but in no event later than five (5) Business Days of the occurrence of a triggering
event, notify the Administrative Agent in writing of any threatened action, investigation or inquiry by any Governmental Authority or any threatened demand or lawsuit by any landowner or other third party against the Borrower or its Subsidiaries or
their Properties of which the Borrower has knowledge in connection with any applicable Environmental Laws (excluding routine testing and corrective action) if the Borrower reasonably anticipates that such action could reasonably result in a Material
Adverse Effect. 
 (c) The Borrower will, and will cause each Subsidiary to, undertake reasonable environmental
audits in connection with any future acquisitions of producing Oil and Gas Properties. 
 Section 8.11
Further Assurances. 
 (a) The Borrower at its expense will, and will cause each Subsidiary
to, promptly execute and deliver to the Administrative Agent all such other documents, agreements and instruments reasonably requested by the Administrative Agent to comply with, cure any defects or accomplish the conditions precedent, covenants and
agreements of the Borrower or any 

  
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Subsidiary, as the case may be, in the Loan Documents, including the Notes, or to further evidence and more fully describe the collateral intended as security for the Obligations, or to correct
any omissions in this Agreement or the Security Instruments, or to state more fully the obligations secured therein, or to perfect, protect or preserve any Liens created pursuant to this Agreement or any of the Security Instruments or the priority
thereof, or to make any recordings, file any notices or obtain any consents, all as may be reasonably necessary or appropriate, in the sole discretion of the Administrative Agent, in connection therewith. 

(b) The Borrower hereby authorizes the Administrative Agent to file one or more financing or continuation statements, and
amendments thereto, relative to all or any part of the Mortgaged Property. A carbon, photographic or other reproduction of the Security Instruments or any financing statement covering the Mortgaged Property or any part thereof shall be sufficient as
a financing statement where permitted by law. 
 Section 8.12 Reserve Reports. 

(a) Promptly after January 1 of each calendar year, commencing January 1, 2011 and in any event before
March 1st and promptly after July 1 of each calendar year, commencing July 1, 2011 and in any event before September 1st of each year, the Borrower shall furnish to the Administrative Agent and the Lenders a Reserve Report. The
Reserve Report as of January 1 of each year and the Reserve Report delivered in connection with the first redetermination shall be prepared by Borrower or an Approved Petroleum Engineer and audited by one or more Approved Petroleum Engineers,
and the July 1 Reserve Report of each year shall be prepared by or under the supervision of the chief engineer of the Borrower. In each case, the chief engineer of Borrower shall certify such Reserve Report is based on information that was
prepared in good faith based upon assumptions believed to be reasonable at the time and to have been prepared in accordance with the procedures used in the immediately preceding Reserve Report. 

(b) In the event of an Interim Redetermination, except in connection with the first redetermination, the Borrower shall
furnish to the Administrative Agent and the Lenders a Reserve Report prepared by or under the supervision of the chief engineer of the Borrower who shall certify such Reserve Report to be based on information that was prepared in good faith based
upon assumptions believed to be reasonable at the time and to have been prepared in accordance with the procedures used in the immediately preceding Reserve Report. For any Interim Redetermination requested by the Administrative Agent or the
Borrower pursuant to Section 2.07(b)(ii) or Section 2.07(b)(iii), the Borrower shall provide such Reserve Report with an “as of” date as required by the Administrative Agent as soon as possible, but in any event
no later than forty-five (45) days following the receipt of such request. 
 (c) With the delivery of each
Reserve Report, the Borrower shall provide to the Administrative Agent and the Lenders a certificate from a Responsible Officer certifying that to his knowledge, after reasonable investigation, in all material respects: (i) the information
contained in the Reserve Report and any other information delivered in connection therewith is based on information that was prepared in good faith based upon assumptions believed to be reasonable at the time, (ii) the Borrower or its
Subsidiaries owns good and defensible title to the proved Oil and Gas Properties evaluated in such Reserve Report and such Properties are free of all Liens except for Liens permitted by Section 9.03, (iii) except as set forth on an
exhibit to the 

  
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certificate, on a net basis there are no gas imbalances, take or pay or other prepayments in excess of the volume specified in Section 7.18 with respect to its Oil and Gas Properties
evaluated in such Reserve Report which would require the Borrower or any Subsidiary to deliver Hydrocarbons either generally or produced from such Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor,
(iv) none of the Borrower’s and its Subsidiaries’ proved Oil and Gas Properties have been sold since the date of the last Borrowing Base determination except as set forth on an exhibit to the certificate, which certificate shall list
all of its proved Oil and Gas Properties sold and in such detail as reasonably required by the Administrative Agent, (v) attached to the certificate is a list of all marketing agreements entered into subsequent to the later of the date hereof
or the most recently delivered Reserve Report which the Borrower could reasonably be expected to have been obligated to list on Schedule 7.20 had such agreement been in effect on the date hereof and (vi) attached thereto is a
schedule of the proved Oil and Gas Properties evaluated by such Reserve Report that are Mortgaged Properties and demonstrating the percentage of the Borrowing Base that the value of such Mortgaged Properties represent. 

Section 8.13 Title Information. 

(a) On or before the delivery to the Administrative Agent and the Lenders of each Reserve Report required by
Section 8.12(a), the Borrower will deliver title information in form and substance acceptable to the Administrative Agent covering enough of the proved Oil and Gas Properties evaluated by such Reserve Report that were not included in the
immediately preceding Reserve Report, so that the Administrative Agent shall have received together with title information previously delivered, satisfactory title information on at least 80% of the total value of the proved Oil and Gas Properties
evaluated by such Reserve Report. 
 (b) If the Borrower has provided title information for additional
Properties under Section 8.13(a), the Borrower shall, within 60 days of notice from the Administrative Agent that title defects or exceptions exist with respect to such additional Properties, either (i) cure any such title defects
or exceptions (including defects or exceptions as to priority) which are not permitted by Section 9.03 raised by such information, (ii) substitute acceptable Mortgaged Properties with no title defects or exceptions except for Excepted
Liens (other than Excepted Liens described in clauses (e), (g) and (h) of such definition) having an equivalent value or (iii) deliver title information in form and substance acceptable to the Administrative Agent so that they shall
have received, together with title information previously delivered, satisfactory title information on at least 80% of the value of the Oil and Gas Properties evaluated by such Reserve Report. 

(c) If the Borrower is unable to cure any title defect requested to be cured within the 60-day period or the Borrower
does not comply with the requirements to provide acceptable title information covering 80% of the value of the Oil and Gas Properties evaluated in the most recent Reserve Report, such default shall not be a Default, but instead the Administrative
Agent and/or the Required Lenders shall have the right to exercise the following remedy in their sole discretion from time to time, and any failure to so exercise this remedy at any time shall not be a waiver as to future exercise of the remedy by
the Administrative Agent or the Lenders. To the extent that the Administrative Agent or the Required Lenders are not satisfied with title to any Mortgaged Property after the 60-day period has elapsed, such unacceptable Mortgaged Property shall not
count towards the 80% requirement, and the Administrative Agent may send a notice to 

  
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the Borrower and the Lenders that the then outstanding Borrowing Base shall be reduced by an amount as determined by the Required Lenders to cause the Borrower to be in compliance with the
requirement to provide acceptable title information on 80% of the value of the Oil and Gas Properties. This new Borrowing Base shall become effective immediately after receipt of such notice. 

Section 8.14 Additional Collateral. In connection with each redetermination of the Borrowing Base, the
Borrower shall review the Reserve Report and the list of current Mortgaged Properties (as described in Section 8.12(c)) to ascertain whether the Mortgaged Properties represent all of the total value of the proved Oil and Gas Properties owned
by Borrower and the Restricted Subsidiaries and evaluated in the most recently completed Reserve Report after giving effect to exploration and production activities, acquisitions, dispositions and production. In the event that the Mortgaged
Properties do not represent at least 100% of such total value, then the Borrower shall, and shall cause its Restricted Subsidiaries to, grant to the Administrative Agent as security for the Obligations a first-priority Lien interest (subject only to
Excepted Liens of the type described in clauses (a) to (d) and (f) of the definition thereof, but subject to the provisos at the end of such definition) on additional Oil and Gas Properties not already subject to a Lien of the
Security Instruments such that after giving effect thereto, the Mortgaged Properties will represent at least 80% of such total value. All such Liens will be created and perfected by and in accordance with the provisions of mortgages, deeds of trust,
security agreements and financing statements or other Security Instruments, all in form and substance satisfactory to the Administrative Agent and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording
purposes. 
 Section 8.15 ERISA Compliance. In addition to and without limiting the generality of
Section 8.09, the Borrower shall and shall cause each of its Subsidiaries to (a) comply in all material respects with all applicable provisions of ERISA and the regulations and published interpretations thereunder with respect to
all employee benefit plans (as defined in ERISA), (b) not take any action or fail to take action the result of which could be (i) a liability to the PBGC (other than liability for PBGC premiums) or (ii) a past due liability to any
Multiemployer Plan, (c) not participate in any prohibited transaction that could result in any material civil penalty under ERISA or any tax under the Code, (d) operate each employee benefit plan in such a manner that will not incur any
material tax liability under Section 4980B of the Code or any liability to any qualified beneficiary as defined in Section 4980B of the Code except to the extent such failure to comply could not reasonably be expected to have Material
Adverse Effect and (e) furnish to the Administrative Agent upon the Administrative Agent’s request such additional information about any employee benefit plan as may be reasonably requested by the Administrative Agent. 

Section 8.16 New Subsidiary Requirements. Concurrently with the acquisition or formation of any subsidiary
which is to be a Restricted Subsidiary and prior to the Borrower’s advancing or contributing any amounts to or into such Restricted Subsidiary (other than the minimum organizational costs such as filing fees), the Borrower shall cause to be
delivered to the Administrative Agent for the benefit of the Lenders, (i) the Guaranty and a Security Agreement executed by such Restricted Subsidiary, (ii) all documents and instruments, including UCC Financing Statements (Form UCC-1),
required by law or reasonably requested by the Administrative Agent to be filed, registered or recorded to create or perfect the Liens intended to 

  
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be created under such Security Agreement, (iii) UCC searches, all dated reasonably close to the date of the Security Agreement and in form and substance satisfactory to the Administrative
Agent, and evidence reasonably satisfactory to the Administrative Agent that any Liens indicated in such UCC searches are Excepted Liens or have been released, (iv) the corporate resolutions or similar approval documents of such Restricted
Subsidiary approving the execution and delivery of the Guaranty and the Security Agreement by such Restricted Subsidiary, (v) the corporate resolutions or similar approval documents of the Borrower or other Loan Party approving the execution
and delivery of the Security Agreement by the Borrower or other Loan Party, and (vi) the legal opinion acceptable to the Administrative Agent, opining favorably on the execution, delivery and enforceability of the Guaranty and the Security
Agreement and otherwise being in form and substance reasonably satisfactory to the Administrative Agent and its counsel. 
 Section 8.17 Establishment and Maintenance of Accounts. Within ninety (90) days of the Effective Date, the Borrower shall cause all of the deposit, escrow and investment accounts of the
Borrower and its Subsidiaries to be held with the Administrative Agent. At all times thereafter, the Borrower shall and shall cause its Subsidiaries to maintain all of their respective deposit, escrow and investment operating accounts with the
Administrative Agent. 
 ARTICLE IX 
 Negative Covenants 
 Until the Commitments have
expired or terminated and the principal of and interest on each Loan and all fees payable hereunder and all other amounts payable under the Loan Documents have been paid in full and all Letters of Credit have expired or terminated and all LC
Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that: 
 Section
9.01 Financial Covenants. 
 (a) Current Ratio. The Borrower will not permit, at any
time, its ratio of (i) consolidated current assets of the Borrower and the Restricted Subsidiaries (including the unused amount of the total Commitments, but excluding non-cash assets under FAS 133) to (ii) consolidated current liabilities
of the Borrower and the Restricted Subsidiaries (excluding outstanding Obligations hereunder and non-cash obligations under FAS 133) to be less than 1.0 to 1.0. 

(b) Interest Coverage Ratio. The Borrower will not permit, as of the last day of any fiscal quarter commencing
with the fiscal quarter ending December 31, 2010, its ratio of (i) Consolidated EBITDAX of the Borrower and the Restricted Subsidiaries for the trailing four quarter period then ended to (ii) Consolidated Interest Expense paid by the
Borrower and the Restricted Subsidiaries during such period to be less than 3.0 to 1.0. 
 (c) Leverage
Ratio. Commencing upon the quarter ended December 31, 2010, the Borrower will not permit, as of the last day of any fiscal quarter, its ratio of (i) total Debt of the Borrower and the Restricted Subsidiaries as of such date to
(ii) Consolidated EBITDAX of the Borrower and the Restricted Subsidiaries for the trailing four quarter period then ended to exceed 2.5 to 1.0. 

  
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 Section 9.02 Debt. The Borrower will not, and will not permit
any Subsidiary to, incur, create, assume or suffer to exist any Debt, except: 
 (a) the Notes or other
Obligations arising under the Loan Documents or any guaranty of or suretyship arrangement for the Notes or other Obligations arising under the Loan Documents. 
 (b) Debt of Borrower and its Subsidiaries with respect to the Senior Notes. 
 (c) Debt of the Borrower and its Subsidiaries under the LC Facility. 
 (d) Debt of the Borrower and its Subsidiaries existing on the date hereof that is reflected in the Financial Statements and described on Schedule 9.02. 

(e) Debt associated with worker’s compensation claims, performance, bid, surety or similar bonds or surety
obligations required by Governmental Requirements or third parties, including, guarantees and obligations of the Borrower and its Subsidiaries with respect to letters of credit supporting such obligations (in each case other than an obligation for
money borrowed), in connection with the operation of the Oil and Gas Properties in the ordinary course of business. 
 (f) intercompany Debt between the Borrower and any Restricted Subsidiary or between Restricted Subsidiaries to the extent permitted by Section 9.05; provided that such Debt is not held,
assigned, transferred, negotiated or pledged to any Person other than the Borrower or one of its Restricted Subsidiaries. 
 (g) endorsements of negotiable instruments for collection in the ordinary course of business. 
 (h) Debt incurred in the ordinary course of Borrower’s business in connection with Swap Agreements provided they are permitted under Section 9.17 of this Agreement. 

(i) Debt of Unrestricted Subsidiaries for which neither the Borrower nor any Restricted Subsidiary shall be liable as an
obligor, under any guarantee or otherwise. 
 (j) Debt under Swap Agreements permitted by
Section 9.17. 
 Section 9.03 Liens. The Borrower will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Lien on any of its Properties (now owned or hereafter acquired), except: 
 (a) Liens securing the payment of any Obligations. 
 (b) Liens
securing the Senior Notes that are permitted by the Intercreditor Agreement. 

  
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 (c) Liens securing the LC Facility and encumbering deposit accounts
maintained with the Agent and with balances not to exceed the face amount of letters of credit outstanding under the LC Facility. 
 (d) Excepted Liens. 
 (e) Liens described on Schedule 9.03.

 (f) Liens in favor of any Lender to secure Swap Agreements. 

(g) Liens securing the BP Swap Agreement that are permitted by the BP Intercreditor Agreement. 

(h) Liens on the assets of Unrestricted Subsidiaries securing Debt permitted under Section 9.02(i).

 Section 9.04 Restricted Payments. The Borrower will not, and will not permit any Restricted
Subsidiary to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, return any capital to its stockholders or make any distribution of its Property to its Equity Interest holders, except Restricted Subsidiaries
may declare and pay dividends ratably with respect to their Equity Interests. Notwithstanding the foregoing, Borrower may make (a) Permitted Tax Distributions up to forty percent (40%) of the Consolidated Net Income of the Borrower
provided no Default or Event of Default exists or would exist after giving effect to any such distribution and (b) in any calendar year, distributions to its members in an amount that does not exceed fifty percent (50%) of the Consolidated
Net Income for the Borrower after giving effect to the Permitted Tax Distributions made pursuant to (a) for the immediately prior calendar year, as reflected in the financial statements provided pursuant to Section 8.01;
provided, such distributions may be made only so long as (i) no Default or Event of Default exists or would exist after giving effect to any such distribution, and (ii) there is at least thirty percent (30%) of undrawn
availability under the Borrowing Base after such distribution is made. 
 Section 9.05 Investments, Loans
and Advances. The Borrower will not, and will not permit any Subsidiary to, make or permit to remain outstanding any Investments in or to any Person, except that the foregoing restriction shall not apply to: 

(a) Investments reflected in the Financial Statements or which are disclosed to the Lenders in Schedule 9.05.

 (b) accounts receivable arising in the ordinary course of business. 

(c) direct obligations of the United States or any agency thereof, or obligations guaranteed by the United States or any
agency thereof, in each case maturing within one year from the date of creation thereof. 
 (d) commercial paper
maturing within one year from the date of creation thereof rated in the highest grade by S&P or Moody’s. 

  
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 (e) deposits maturing within one year from the date of creation thereof
with, including certificates of deposit issued by, any Lender or any office located in the United States of any other bank or trust company which is organized under the laws of the United States or any state thereof, has capital, surplus and
undivided profits aggregating at least $100,000,000 (as of the date of such bank or trust company’s most recent financial reports) and has a short term deposit rating of no lower than A2 or P2, as such rating is set forth from time to time, by
S&P or Moody’s, respectively. 
 (f) deposits in money market funds investing exclusively in
Investments described in Section 9.05(c), Section 9.05(d) or Section 9.05(e). 
 (g) subject to the limits in Section 9.06, Investments in direct ownership interests in additional Oil and Gas Properties, gas gathering, processing and transportation systems and all other
assets contemplated by the permitted business of Borrower located within the geographic boundaries of the United States of America. 
 (h) entry into operating agreements, working interests, royalty interests, mineral leases, processing agreements, farm-out agreements, contracts for the sale, transportation or exchange of oil and natural
gas, unitization agreements, pooling arrangements, area of mutual interest agreements, production sharing agreements or other similar or customary agreements, transactions, properties, interests or arrangements, and Investments and expenditures in
connection therewith or pursuant thereto, in each case made or entered into in the ordinary course of the oil and gas business, excluding, however, Investments in other Persons; 

provided, however, that none of the foregoing shall involve the incurrence of any Debt not permitted by
Section 9.02. 
 Section 9.06 Nature of Business; International Operations. The
Borrower will not, and will not permit any Subsidiary to, allow any material change to be made in the character of its business as an independent oil and gas exploration and production company with midstream, marketing and trading components. From
and after the date hereof, the Borrower and its Subsidiaries will not acquire or make any other expenditure (whether such expenditure is capital, operating or otherwise) in or related to, any Oil and Gas Properties not located within the
geographical boundaries or territorial waters of the United States and will not acquire or form any Foreign Subsidiaries. 
 Section 9.07 Limitation on Leases. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or suffer to exist any obligation for the payment of rent or hire of
Property of any kind whatsoever (real or personal but excluding Capital Leases and leases of Hydrocarbon Interests), under leases or lease agreements which would cause the aggregate amount of all payments made by the Borrower and the Subsidiaries
pursuant to all such leases or lease agreements, including, without limitation, any residual payments at the end of any lease, to exceed
[$                    ] in any period of twelve (12) consecutive calendar months during the life of such leases. 

  
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 Section 9.08 Proceeds of Notes/Loans. The Borrower will not
permit the Loans or the proceeds of the Notes to be used for any purpose other than those permitted by Section 7.21. Neither the Borrower nor any Person acting on behalf of the Borrower has taken or will take any action which might cause any
of the Loan Documents to violate Regulations T, U or X or any other regulation of the Board or to violate Section 7 of the Securities Exchange Act of 1934 or any rule or regulation thereunder, in each case as now in effect or as the same may
hereinafter be in effect. If requested by the Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender a statement to the foregoing effect in conformity with the requirements of FR Form U-1 or such other form
referred to in Regulations U, T or X of the Board, as the case may be. 
 Section 9.09 Sale or Discount of
Receivables. Except for receivables obtained by the Borrower or any Subsidiary out of the ordinary course of business or the settlement of joint interest billing accounts in the ordinary course of business or discounts granted to settle
collection of accounts receivable or the sale of defaulted accounts arising in the ordinary course of business in connection with the compromise or collection thereof and not in connection with any financing transaction, neither the Borrower nor any
Subsidiary will discount or sell (with or without recourse) to any other Person that is not the Borrower any of its notes receivable or accounts receivable. 
 Section 9.10 Mergers, Etc. Neither the Borrower nor any Subsidiary will merge into or with or consolidate with any other Person, or sell, lease or otherwise dispose of (whether in one
transaction or in a series of transactions) all or substantially all of its Property to any other Person (any such transaction, a “consolidation”); provided that (a) any Subsidiary may participate in a consolidation with
the Borrower (provided that the Borrower shall be the continuing or surviving corporation) or any Restricted Subsidiary (provided that such Restricted Subsidiary shall be the continuing or surviving Person) and any Unrestricted
Subsidiary may merge with another Unrestricted Subsidiary and (b) in the case of an Unrestricted Subsidiary merging into Borrower, no Default or Event of Default shall result. 

Section 9.11 Sale of Assets. The Borrower will not, and will not permit any Subsidiary to, sell, assign,
farm-out, convey or otherwise transfer any asset, including, without limitation, Property containing proved reserves constituting a portion of the Borrowing Base or to issue or sell any Equity Interests in the Company or any of its Restricted
Subsidiaries except for: 
 (a) a transfer of assets between or among any of the Borrower and its Restricted
Subsidiaries; 
 (b) an issuance or sale of Equity Interests by a Restricted Subsidiary to the Borrower or to
another Restricted Subsidiary; 
 (c) the sale, lease or other disposition of hydrocarbons, equipment,
inventory, accounts receivable or other properties or assets in the ordinary course of business, including, without limitation, any abandonment, farm-in, farm-out, lease or sublease of any oil and gas properties or the forfeiture or other
disposition of such properties pursuant to standard form operating agreements, in each case in the ordinary course of business in a manner customary in the oil and gas business; 

(d) the sale or other disposition of cash or cash equivalents; and 

  
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 (e) the sale or other disposition (including Casualty Events) of any Oil and
Gas Property or any interest therein or any Restricted Subsidiary owning Oil and Gas Properties; provided that 
 (1) 100% of the consideration received in respect of such sale or other disposition shall be cash, 
 (2) the consideration received in respect of such sale or other disposition shall be equal to or greater than the fair market value of the Oil and Gas Property, interest therein or the Restricted
Subsidiary subject of such sale or other disposition (as reasonably determined by the board of directors of the Borrower and, if requested by the Administrative Agent, the Borrower shall deliver a certificate of a Responsible Officer of the Borrower
certifying to that effect), 
 (3) if such sale or other disposition of Oil and Gas Property or
Restricted Subsidiary owning Oil and Gas Properties included in the most recently delivered Reserve Report during any period between two successive Scheduled Redetermination Dates has provided contributing value in the Borrowing Base then in effect
as determined by the Required Lenders, individually or in the aggregate, such sale or disposition shall be subject to the written consent of the Administrative Agent, not to be unreasonably withheld, and the Borrowing Base shall be reduced,
effective immediately upon such sale or disposition, by an amount equal to the value, if any, assigned such Property in the most recently delivered Reserve Report, and 

(4) if any such sale or other disposition is of a Restricted Subsidiary owning Oil and Gas Properties,
such sale or other disposition shall include all the Equity Interests of such Restricted Subsidiary. 

Section 9.12 Environmental Matters. The Borrower will not, and will not permit any Subsidiary to, cause or
permit any of its Property to be in violation of, or do anything or permit anything to be done which will subject any such Property to any Remedial Work under any applicable Environmental Laws, assuming disclosure to the applicable Governmental
Authority of all relevant facts, conditions and circumstances, if any, pertaining to such Property where such violations or remedial obligations could reasonably be expected to have a Material Adverse Effect. 

Section 9.13 Transactions with Affiliates. The Borrower will not, and will not permit any Subsidiary to,
enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of Property or the rendering of any service, with any Affiliate (other than the Loan Parties) unless 

(a) such transactions are otherwise permitted under this Agreement and are upon fair and reasonable terms no less
favorable to it than it would obtain in a comparable arm’s length transaction with a Person not an Affiliate; 

  
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 (b) the Borrower delivers to the Administrative Agent: 

(i) with respect to any such transaction or series of related transactions involving aggregate
consideration in excess of $5.0 million, a resolution of the board of directors of Borrower set forth in an officers’ certificate certifying that such transaction(s) complies with this covenant and that such transaction(s) has been approved by
a majority of the members of the board of directors; 
 (ii) with respect to any such transaction
or series of related transactions involving aggregate consideration in excess of $15.0 million, the Borrower delivers to the Administrative Agent a written opinion that such transaction(s) is fair, from a financial point of view, to the Borrower and
its Restricted Subsidiaries, taken as a whole, or that such transaction(s) is not less favorable to the Borrower and its Restricted Subsidiaries than could reasonably be expected to be obtained at the time in an arm’s-length transaction with a
person who is not an Affiliate, in either such case issued by an independent accounting, appraisal or investment banking firm of recognized standing; 
 (c) so long as PPVA is an Affiliate of the Borrower, with respect to any such transaction or series of related transactions, between the Borrower or any of its Restricted Subsidiaries, on the one hand,
and PPVA or any of its Affiliates (other than the Borrower or any of its Restricted Affiliates), on the other, the chief executive officer of the Borrower delivers to the Administrative Agent an officers’ certificate certifying that such
transaction(s) complies with this Section 9.13 and that such transaction(s) has been approved by a majority of the members of the board of directors; and 

(d) so long as PPVA is an Affiliate of the Borrower, with respect to any such transaction or series of related
transactions, between John Hoffman or any of his Affiliates (other than the Borrower or any of its Restricted Subsidiaries), on the one hand, and the Borrower or any of its Restricted Subsidiaries, on the other, PPVA delivers to the Administrative
Agent a certificate certifying that such transaction(s) complies with this Section 9.13 and that such transaction(s) has been approved by a majority of the members of the board of directors. 

Section 9.14 Subsidiaries. The Borrower shall not, and shall not permit any Subsidiary to, create or
acquire any additional Subsidiary without the prior written consent of the Administrative Agent and the Required Lenders, other than the creation or acquisition by the Borrower of Subsidiaries in compliance with Section 8.17. The
Borrower shall not, and shall not permit any Subsidiary to, sell, assign or otherwise dispose of any Equity Interests in any Subsidiary except in compliance with Section 9.11. Neither the Borrower nor any Subsidiary shall have any Foreign
Subsidiaries. 
 Section 9.15 Negative Pledge Agreements; Dividend Restrictions. The Borrower will
not, and will not permit any Restricted Subsidiary to, create, incur, assume or suffer to exist any contract, agreement or understanding which in any way prohibits or restricts the granting, conveying, creation or imposition of any Lien on any of
its Property in favor of the Administrative Agent and the Lenders, restricts any Loan Party from paying dividends or making distributions to any other Loan Party, restricts any Loan Party from making loans or advances to any other Loan Party, or
restricts any Loan Party from transferring any of its properties or assets to any other Loan Party or which requires the consent of or notice to other Persons in connection 

  
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therewith; provided, however, that the preceding restrictions will not apply to encumbrances or restrictions arising under or by reason of (a) this Agreement, the Security
Instruments, or the documents evidencing the LC Facility, (b) the Senior Notes and the Indenture, (c) applicable law, rule, regulation or order, (d) any instrument governing Debt or Equity Interests of a Person acquired by the
Borrower or any of its Restricted Subsidiaries as in effect at the time of such acquisition (except to the extent such Debt or Equity Interests were incurred or issued in connection with such acquisition), which encumbrance or restriction is not
applicable to any Person, or the properties or assets of any Person, other than the Person, or the property or assets of the Person, so acquired, and any amendments, modifications, restatements, renewals, increases, supplements, refundings,
replacements or refinancings of those instruments, provided that the amendments, modifications, restatements, renewals, increases, supplements, refundings, replacement or refinancings are not materially more restrictive, taken as a whole,
with respect to such dividend, distribution and other payment restrictions than those contained in those instruments; provided, that, in the case of Debt, such Debt was permitted by the terms hereof to be incurred; (e) customary
non-assignment provisions in contracts and leases entered into in the ordinary course of business and consistent with past practices; (f) purchase money obligations for property acquired in the ordinary course of business and Capital Lease
Obligations that impose restrictions on the transfer of any of its properties to any Loan Party, (g) any agreement for the sale or other disposition of a Restricted Subsidiary of the Borrower that restricts distributions by that Restricted
Subsidiary pending its sale or other disposition, (h) agreements governing other Debt of the Borrower and one or more Restricted Subsidiaries permitted herein, provided that the restrictions in the agreements governing such Indebtedness
are not materially more restrictive, taken as a whole, than those provided herein, (i) Liens permitted to be incurred under Section 9.03 hereof that limit the right of the debtor to dispose of the assets subject to such Liens,
(j) provisions with respect to the disposition or distribution of assets or property in joint venture agreements, asset sale agreements, and stock sale agreements entered into in the ordinary course of business, and (k) restrictions on
cash or other deposits or net worth imposed by customers under contracts entered into in the ordinary course of business. 
 Section 9.16 Gas Imbalances, Take-or-Pay or Other Prepayments. The Borrower will not allow gas imbalances, take-or-pay or other prepayments with respect to the Oil and Gas Properties of the
Borrower or any Restricted Subsidiary that would require the Borrower or such Restricted Subsidiary to deliver Hydrocarbons at some future time without then or thereafter receiving full payment therefor. 

Section 9.17 Swap Agreements. The Borrower will not, and will not permit any Subsidiary to, enter into any
Swap Agreements with any Person other than (a) Swap Agreements in respect of commodities (i) with an Approved Counterparty, (ii) with a maximum term of 36 months and (iii) the notional volumes for which (when aggregated with
other commodity Swap Agreements then in effect other than basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date such Swap Agreement is executed, 60% for the months of July through
November and 75% for the months of December through June of the reasonably anticipated total volume of projected production from proved, developed, producing Oil and Gas Properties, for each month during the period during which such Swap Agreement
is in effect for each of crude oil and natural gas, calculated separately, (for purposes of this clause (iii), Purchaser puts and flows shall be excluded) (b) Swap Agreements in respect of interest rates with an Approved Counterparty, as
follows: (i) Swap Agreements 

  
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effectively converting interest rates from fixed to floating, the notional amounts of which (when aggregated with all other Swap Agreements of the Borrower and its Subsidiaries then in effect
effectively converting interest rates from fixed to floating) do not exceed 75% of the then outstanding principal amount of the Borrower’s Debt for borrowed money which bears interest at a fixed rate and (ii) Swap Agreements effectively
converting interest rates from floating to fixed, the notional amounts of which (when aggregated with all other Swap Agreements of the Borrower and its Subsidiaries then in effect effectively converting interest rates from floating to fixed) do not
exceed 75% of the then outstanding principal amount of the Borrower’s Debt for borrowed money which bears interest at a floating rate, and (c) BP Swap Agreements. In no event shall any Swap Agreement to which the Borrower or any Subsidiary
is a party contain any requirement, agreement or covenant for the Borrower or any Subsidiary to post cash or other collateral or margin to secure their obligations under such Swap Agreement or to cover market exposures. In addition to the foregoing,
no Swap Agreement that has been used in the calculation of the Borrowing Base may be cancelled, liquidated or “unwound” without the prior written consent of the Administrative Agent. 

Section 9.18 Sale and Leaseback Transactions. The Borrower will not, and will not permit any of its
Restricted Subsidiaries to, enter into any arrangement, directly or indirectly, whereby it shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or hereinafter acquired, and thereafter rent or lease
such property or other property that it intends to use for substantially the same purpose or purposes as the property sold or transferred. 
 ARTICLE X 
 Events of Default; Remedies 

Section 10.01 Events of Default. One or more of the following events shall constitute an “Event of
Default”: 
 (a) the Borrower shall fail to pay any interest on or principal of any Loan or any
reimbursement obligation in respect of any LC Disbursement or any fee or other amount when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof, by acceleration or otherwise.

 (b) any representation or warranty made or deemed made by or on behalf of the Borrower or any Subsidiary in
or in connection with any Loan Document or any amendment or modification of any Loan Document or waiver under such Loan Document, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with any
Loan Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect when made or deemed made in any material respect. 

(c) the Borrower or any Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in
Section 8.01(h), Section 8.01(k), Section 8.02, Section 8.03, Section 8.12, Section 8.15, Section 8.17, or ARTICLE IX. 

  
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 (d) any Loan Party shall fail to observe or perform any covenant, condition
or agreement contained in this Agreement (other than those specified in Section 10.01(a) or Section 10.01(c)) or any other Loan Document, and such failure shall continue unremedied for a period of thirty (30) days after
the earlier to occur of (i) notice thereof from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender) or (ii) a Responsible Officer of the Borrower or such Subsidiary otherwise becoming aware of
such default. 
 (e) the Borrower or any Subsidiary shall fail to make any payment (whether of principal or
interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable if the effect of such event is to cause, or (with the giving of any notice or the lapse of time or both) to permit the
holder or holders of such Debt (or a trustee or agent on behalf of such holder or holders) to cause, such Debt to become due prior to its stated maturity. 
 (f) any event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time
or both) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the Redemption thereof or any offer to Redeem to be made in respect thereof,
prior to its scheduled maturity or require the Borrower or any Subsidiary to make an offer in respect thereof. 

(g) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation,
reorganization or other relief in respect of the Borrower or any Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or
(ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue
undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered. 

(h) the Borrower or any Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking
liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate
manner, any proceeding or petition described in Section 10.01(g), (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Subsidiary or
for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for
the purpose of effecting any of the foregoing. 
 (i) the Borrower or any Subsidiary shall become unable, admit
in writing its inability, or fail generally to pay its debts as they become due. 

  
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 (j) one or more judgments for the payment of money in an aggregate amount in
excess of $250,000 (to the extent not covered by independent third party insurance provided by insurers of the highest claims paying rating or financial strength as to which the insurer does not dispute coverage and is not subject to an insolvency
proceeding) shall be rendered against the Borrower, any Subsidiary or any combination thereof and the same shall remain undischarged for a period of 60 consecutive days during which execution shall not be effectively stayed, or any action shall be
legally taken by a judgment creditor to attach or levy upon any assets of the Borrower or any Subsidiary to enforce any such judgment. 
 (k) the Loan Documents after delivery thereof shall for any reason, except to the extent permitted by the terms thereof, cease to be in full force and effect and valid, binding and enforceable in
accordance with their terms against the Borrower or shall be repudiated, or cease to create a valid and perfected Lien of the priority required thereby on any of the collateral purported to be covered thereby, except to the extent permitted by the
terms of this Agreement, or the Borrower or any Subsidiary or any of their Affiliates shall so state in writing. 
 (l) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a
Material Adverse Effect. 
 (m) a Change in Control shall occur. 

(n) The occurrence of a default or event of default (as defined therein) under the Indenture, the LC Facility, the BP
Swap Agreement, the W&T Purchase Agreement, which is not cured within the applicable grace periods provided therein. 
 Section 10.02 Remedies. 
 (a) In the case of
an Event of Default other than one described in Section 10.01(g), Section 10.01(h) or Section 10.01(i), at any time thereafter during the continuance of such Event of Default, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Borrower, take either or both of the following actions, at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and
(ii) declare the Notes and the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal
of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder and under the Notes and the other Loan Documents (including, without limitation, the payment
of cash collateral to secure the LC Exposure as provided in Section 2.08(j)), shall become due and payable immediately, without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other notice of any kind,
all of which are hereby waived by the Borrower and each Guarantor; and in case of an Event of Default described in Section 10.01(g), Section 10.01(h) or Section 10.01(i), the Commitments shall automatically terminate
and the Notes and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and the other obligations of the Borrower accrued hereunder and under the Notes and the other Loan Documents (including, without
limitation, the payment of cash collateral to secure the LC Exposure as provided in Section 2.08(j)), shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby
waived by the Borrower. 

  
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 (b) In the case of the occurrence of an Event of Default, the Administrative
Agent and the Lenders will have all other rights and remedies available at law and equity. 
 (c) All proceeds
realized from the liquidation or other disposition of collateral or otherwise received after maturity of the Loans or the Notes, whether by acceleration or otherwise, shall be applied: first, to reimbursement of expenses and indemnities
provided for in this Agreement and the Security Instruments; second, to accrued interest on the Loans; third, to fees; fourth, pro rata to principal outstanding on the Loans and Obligations referred to in Clause (b) of the
definition of Obligations owing to a Lender or an Affiliate of a Lender; fifth, to any other Obligations; sixth, to serve as cash collateral to be held by the Administrative Agent to secure the LC Exposure; and any excess shall be paid
to the Borrower or as otherwise required by any Governmental Requirement. 
 ARTICLE XI 

The Administrative Agent 
 Section 11.01 Appointment; Powers. 
 Each of
the Lenders and each Issuing Bank hereby irrevocably (subject to Section 11.06) appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Administrative Agent by the terms hereof and the other Loan Documents, together with such actions and powers as are reasonably incidental thereto. 

Section 11.02 Duties and Obligations of Administrative Agent. The Administrative Agent shall not have any
duties or obligations except those expressly set forth in the Loan Documents. Without limiting the generality of the foregoing, the Administrative Agent (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing, (b) shall not have any duty to take any discretionary action or exercise any discretionary powers, except as provided in Section 11.03, and (c) except as expressly set forth herein, shall not
have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as the Administrative Agent or any of its
Affiliates in any capacity. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to it by the Borrower or a Lender, and shall not be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or under
any other Loan Document or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or in any other Loan Document, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, (v) the satisfaction of any condition set forth in ARTICLE VI or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to it or as to those conditions precedent specifically required to be to its satisfaction, (vi) the existence, value, perfection or priority of any collateral security or the financial
or other condition of the Borrower and its Subsidiaries or 

  
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any other obligor or guarantor, or (vii) any failure by the Borrower or any other Person (other than itself) to perform any of its obligations hereunder or under any other Loan Document or
the performance or observance of any covenants, agreements or other terms or conditions set forth herein or therein. 
 Section 11.03 Action by Administrative Agent. The Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby that it is required to exercise in writing as directed by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section
12.02) and in all cases it shall be fully justified in failing or refusing to act hereunder or under any other Loan Documents unless it shall (a) receive written instructions from the Required Lenders or the Lenders, as applicable, (or such
other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 12.02) specifying the action to be taken and (b) be indemnified to its satisfaction by the Lenders against any and all
liability and expenses which may be incurred by it by reason of taking or continuing to take any such action. The instructions as aforesaid and any action taken or failure to act pursuant thereto shall be binding on all of the Lenders. If a Default
has occurred and is continuing, then the Administrative Agent shall take such action with respect to such Default as shall be directed by the requisite Lenders in the written instructions (with indemnities) described in this
Section 11.03, provided that, unless and until the Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with
respect to such Default as it shall deem advisable in the best interests of the Lenders. In no event, however, shall the Administrative Agent be required to take any action which exposes the Administrative Agent to personal liability or which is
contrary to this Agreement, the Loan Documents or applicable law. The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders or the Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in Section 12.02), and otherwise the Administrative Agent shall not be liable for any action taken or not taken by it hereunder or under any other Loan
Document or under any other document or instrument referred to or provided for herein or therein or in connection herewith or therewith including its own ordinary negligence, except for its own gross negligence or willful misconduct. 

Section 11.04 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely upon,
and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative
Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon and each of the Borrower, the Lenders and each Issuing Bank hereby
waives the right to dispute the Administrative Agent’s record of such statement, except in the case of gross negligence or willful misconduct by the Administrative Agent. The Administrative Agent may consult with legal counsel (who may be
counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. The Administrative Agent
may deem and treat the payee of any Note as the holder thereof for all purposes hereof unless and until a written notice of the assignment or transfer thereof permitted hereunder shall have been filed with the Administrative Agent. 

  
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 Section 11.05 Subagents. The Administrative Agent may perform
any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by it. The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their
respective Related Parties. The exculpatory provisions of the preceding Sections of this ARTICLE XI shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. 
 Section 11.06 Resignation or Removal of Administrative Agent. Subject to the appointment and acceptance of a successor Administrative Agent as provided in this Section 11.06, the
Administrative Agent may resign at any time by notifying the Lenders, each Issuing Bank and the Borrower, and the Administrative Agent may be removed at any time with or without cause by the Required Lenders. Upon any such resignation or removal,
the Required Lenders shall have the right, in consultation with and upon the approval of the Borrower (so long as no Event of Default has occurred and is continuing), which approval shall not be unreasonably withheld, to appoint a successor. If no
successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation or removal of the retiring Administrative Agent, then the
retiring Administrative Agent may, on behalf of the Lenders and each Issuing Bank, appoint a successor Administrative Agent which shall be a bank with an office in Houston, Texas, or an Affiliate of any such bank. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After
the Administrative Agent’s resignation hereunder, the provisions of this ARTICLE XI and Section 12.03 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related
Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent. 
 Section 11.07 Administrative Agent as Lender. Each bank serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender
and may exercise the same as though it were not the Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder. 
 Section 11.08 No Reliance. Each
Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement and each other Loan Document to which it is a party. Each Lender also acknowledges that it will, independently and without reliance upon the 

  
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Administrative Agent or any other Lender and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking
action under or based upon this Agreement, any other Loan Document, any related agreement or any document furnished hereunder or thereunder. The Administrative Agent shall not be required to keep itself informed as to the performance or observance
by the Borrower or any of its Subsidiaries of this Agreement, the Loan Documents or any other document referred to or provided for herein or to inspect the Properties or books of the Borrower or its Subsidiaries. Except for notices, reports and
other documents and information expressly required to be furnished to the Lenders by the Administrative Agent hereunder, the Administrative Agent shall have no duty or responsibility to provide any Lender with any credit or other information
concerning the affairs, financial condition or business of the Borrower (or any of its Affiliates) which may come into the possession of the Administrative Agent or any of its Affiliates. In this regard, each Lender acknowledges that Andrews Kurth
LLP is acting in this transaction as special counsel to the Administrative Agent only, except to the extent otherwise expressly stated in any legal opinion or any Loan Document. Each other party hereto will consult with its own legal counsel to the
extent that it deems necessary in connection with the Loan Documents and the matters contemplated therein. 

Section 11.09 Authority to Release Collateral and Liens. Each Lender and each Issuing Bank hereby
authorizes the Administrative Agent to release any collateral that is permitted to be sold or released pursuant to the terms of the Loan Documents. Each Lender and each Issuing Bank hereby authorizes the Administrative Agent to execute and deliver
to the Borrower, at the Borrower’s sole cost and expense, any and all releases of Liens, termination statements, assignments or other documents reasonably requested by the Borrower in connection with any sale or other disposition of Property to
the extent such sale or other disposition is permitted by the terms of Section 9.11 or is otherwise authorized by the terms of the Loan Documents. 
 Section 11.10 Filing of Proofs of Claim. In case of any Default or Event of Default under Section 10.01(f), Section 10.01(g) or Section 10.01(h), the
Administrative Agent (regardless of whether the principal of any Loan or LC Exposure shall then be due and payable and regardless of whether the Administrative Agent has made any demand on the Borrower) shall be entitled and empowered, by
intervention in such proceeding or otherwise: 
 (a) to (i) file and prove a claim for the whole amount of
the principal and interest owing and unpaid in respect of the Loans, LC Exposure and all other Obligations that is owing and unpaid and (ii) file such other documents as may be necessary or advisable in order to have the claims of the Lenders
and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the
Administrative Agent under Section 3.03 and Section 12.03) allowed in such judicial proceeding; and 
 (b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same. 

  
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 Each Lender hereby authorizes any custodian, receiver, assignee, trustee, conservator,
sequestrator or other similar official in any such judicial proceeding: (i) to make such payments to the Administrative Agent; and (ii) if the Administrative Agent shall consent to the making of such payments directly to the Lenders, to
pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under
Section 3.03 and Section 12.03. Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding. Each Lender retains its right to file and prove a claim
separately. 
 ARTICLE XII 
 Miscellaneous 
 Section 12.01
Notices. 
 (a) Except in the case of notices and other communications expressly permitted to
be given by telephone (and subject to Section 12.01(b)), 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 telecopy, as follows: 
 (i) if to the Borrower, to it at Black Elk Energy Offshore
Operations, LLC, 11451 Katy Freeway, Suite 500, Houston, Texas 77079, Attention James Hagemeier (Telecopy No. (281) 598-8601), with a copy to Vinson & Elkins LLP, First City Tower, 1001 Fannin St., Suite 2500, Houston, Texas 77002,
Attention: Craig Murray (Telecopy No. (713) 615-5383); 
 (ii) if to the Administrative
Agent, to it at Capital One, N.A., 5718 Westheimer Road, Suite 1430, Houston, Texas 77057, Attention Eric Broussard (Telecopy No. (713)435-5106, with a copy to Andrews Kurth LLP, 600 Travis St., Suite 4200, Houston, Texas 77002, Attention
Tammy Brennig (Telecopy No. (713) 238-7201); 
 (iii) if to any other Lender, in its
capacity as such, or any other Lender in its capacity as an Issuing Bank, to it at its address (or telecopy number) set forth in its Administrative Questionnaire. 

(b) Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications
pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to ARTICLE II, ARTICLE III, ARTICLE IV and ARTICLE V unless otherwise agreed by
the Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it;
provided that approval of such procedures may be limited to particular notices or communications. 

  
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 (c) Any party hereto may change its address or telecopy number for notices
and other communications hereunder by notice to the other parties hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt.

 Section 12.02 Waivers; Amendments. 

(a) No failure on the part of the Administrative Agent, any Issuing Bank or any Lender to exercise and no delay in
exercising, and no course of dealing with respect to, any right, power or privilege, or any abandonment or discontinuance of steps to enforce such right, power or privilege, under any of the Loan Documents shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, power or privilege under any of the Loan Documents preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies of the
Administrative Agent, each Issuing Bank and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or any
other Loan Document or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by Section 12.02(b), and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent,
any Lender or any Issuing Bank may have had notice or knowledge of such Default at the time. 
 (b) Neither this
Agreement nor any provision hereof nor any Security Instrument nor any provision thereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders or by the
Borrower and the Administrative Agent with the consent of the Required Lenders; provided that no such agreement shall (i) increase the Commitment or the Maximum Credit Amount of any Lender without the written consent of such Lender,
(ii) increase the Borrowing Base without the written consent of each Lender, decrease or maintain the Borrowing Base without the consent of the Required Lenders, or modify Section 2.07 without the consent of each Lender,
(iii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, or reduce any other Obligations hereunder or under any other Loan Document, without the written
consent of each Lender affected thereby, (iv) postpone the scheduled date of payment of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder, or any other Obligations hereunder or under any
other Loan Document, or reduce the amount of, waive or excuse any such payment, or postpone or extend the Termination Date without the written consent of each Lender affected thereby, (v) change Section 4.01(b) or
Section 4.01(c) in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, (vi) waive or amend Section 8.14, without the written consent of each Lender,
(vii) release any of the collateral (other than as provided in Section 11.09), or reduce the percentage set forth in Section 8.14 to less than 80%, without the written consent of each Lender, or (viii) change any of the
provisions of this 

  
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Section 12.02(b) or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or
modify any rights hereunder or under any other Loan Documents or make any determination or grant any consent hereunder or any other Loan Documents, without the written consent of each Lender; provided further that no such agreement shall
amend, modify or otherwise affect the rights or duties of the Administrative Agent or any Issuing Bank hereunder or under any other Loan Document without the prior written consent of the Administrative Agent or such Issuing Bank, as the case may be.
Notwithstanding the foregoing, any supplement to Schedule 7.14 (Subsidiaries) shall be effective simply by delivering to the Administrative Agent a supplemental schedule clearly marked as such and, upon receipt, the Administrative Agent will
promptly deliver a copy thereof to the Lenders. 
 Section 12.03 Expenses, Indemnity; Damage
Waiver. 
 (a) The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by
the Administrative Agent and their Affiliates, including, without limitation, the reasonable fees, charges and disbursements of counsel and other outside consultants for the Administrative Agent, the reasonable travel, photocopy, mailing, courier,
telephone and other similar expenses, and the cost of environmental audits and surveys and appraisals, in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and
administration (both before and after the execution hereof and including advice of counsel to the Administrative Agent as to the rights and duties of the Administrative Agent and the Lenders with respect thereto) of this Agreement and the other Loan
Documents and any amendments, modifications or waivers of or consents related to the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all costs, expenses, Taxes,
assessments and other charges incurred by the Administrative Agent or any Lender in connection with any filing, registration, recording or perfection of any security interest contemplated by this Agreement or any Security Instrument or any other
document referred to therein, (iii) all reasonable out-of-pocket expenses incurred by each Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit issued by such Issuing Bank or any demand for
payment thereunder, (iv) all out-of-pocket expenses incurred by the Administrative Agent, any Issuing Bank or any Lender, including the reasonable fees, charges and disbursements of any counsel for the Administrative Agent, any Issuing Bank or
any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement or any other Loan Document, including its rights under this Section 12.03, or in connection with the Loans made or Letters of Credit
issued hereunder, including, without limitation, all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit. 

(b) The Borrower shall indemnify the Administrative Agent, each Issuing Bank and each Lender, and each Related Party of
any of the foregoing persons (each such person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the reasonable fees,
charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement or any other Loan Document or any
agreement or instrument contemplated hereby or thereby, the performance by the parties hereto or the parties to any other Loan Document of their 

  
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respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or by any other Loan Document, (ii) the failure of the Borrower or any Subsidiary
to comply with the terms of any Loan Document, including this Agreement, or with any Governmental Requirement, (iii) any inaccuracy of any representation or any breach of any warranty or covenant of the Borrower set forth in any of the Loan
Documents or any instruments, documents or certifications delivered in connection therewith, (iv) any loan or Letter of Credit or the use of the proceeds therefrom, including, without limitation, (A) any refusal by any Issuing Bank to
honor a demand for payment under a Letter of Credit issued by such Issuing Bank if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit, or (B) the payment of a drawing under any
Letter of Credit notwithstanding the non-compliance, non-delivery or other improper presentation of the documents presented in connection therewith, (v) the operations of the business of the Borrower and its Subsidiaries by the Borrower and its
Subsidiaries, (vi) any assertion that the Lenders were not entitled to receive the proceeds received pursuant to the Security Instruments, (vii) any Environmental Law applicable to the Borrower or any Subsidiary or any of their properties,
including without limitation, the presence, generation, storage, release, threatened release, use, transport, disposal, arrangement of disposal or treatment of oil, oil and gas wastes, solid wastes or hazardous substances on any of their properties,
(viii) the breach or non-compliance by the Borrower or any Subsidiary with any Environmental Law applicable to the Borrower or any Subsidiary, (ix) the past ownership by the Borrower or any Subsidiary of any of their properties or past
activity on any of their properties which, though lawful and fully permissible at the time, could result in present liability, (x) the presence, use, release, storage, treatment, disposal, generation, threatened release, transport, arrangement
for transport or arrangement for disposal of oil, oil and gas wastes, solid wastes or hazardous substances on or at any of the properties owned or operated by the Borrower or any Subsidiary or any actual or alleged presence or release of hazardous
materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, (xi) any environmental liability related in any way to the Borrower or any of its Subsidiaries, or (xii) any other environmental, health or
safety condition in connection with the Loan Documents, or (xiii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of
whether any indemnitee is a party thereto, and such Indemnity shall extend to each Indemnitee notwithstanding the sole or concurrent negligence of every kind or character whatsoever, whether active or passive, whether an affirmative act or an
omission, including without limitation, all types of negligent conduct identified in the restatement (second) of torts of one or more of the Indemnitees or by reason of strict liability imposed without fault on any one or more of the Indemnitees;
provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (a) are determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee, (b) relate to agreements, or obligations to which Borrower and its subsidiaries are not parties, (c) relate to claims between or
among any of the lenders, the agent or any of their shareholders, partners or members, or (d) relate to laws, rules or regulations affecting the lenders or the agent and not the borrower or the subsidiaries, or (e) in respect of any
property for any occurrence arising from the acts or omissions of the agent or any lender during the period after which such person, its successors or assigns shall have obtained possession of such property (whether by foreclosure or deed in lieu of
foreclosure, as mortgagee-in-possession or otherwise). 

  
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 (c) To the extent that the Borrower fails to pay any amount required to be
paid by it to the Administrative Agent or any Issuing Bank under Section 12.03(a) or (b), each Lender severally agrees to pay to the Administrative Agent or such Issuing Bank, as the case may be, such Lender’s Applicable
Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as
the case may be, was incurred by or asserted against the Administrative Agent or such Issuing Bank in its capacity as such. 
 (d) To the extent permitted by applicable law, the Borrower and the Indemnified Parties shall not assert, and hereby waive, any claim against each other, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the
Transactions, any Loan or Letter of Credit or the use of the proceeds thereof. 
 (e) All amounts due under this
Section 12.03 shall be payable promptly after written demand therefor. 
 Section 12.04 Successors
and Assigns. 
 (a) The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of Credit), except that (i) the Borrower may not assign or otherwise transfer any of
its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its
rights or obligations hereunder except in accordance with this Section 12.04. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and
assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in Section 12.04(c)) and, to the extent expressly contemplated hereby, the Related Parties of
each of the Administrative Agent, each Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
 (b) (i) Subject to the conditions set forth in Section 12.04(b)(ii), any Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld or delayed) of: (1) the Borrower, provided that no consent of the Borrower shall be required
for an assignment to a Lender that is not a Defaulting Lender, an Affiliate of a Lender that is not a Defaulting Lender, an Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee; and (2) the Administrative
Agent, provided that no such consent shall be required for an assignment to an assignee that is a Lender that is not a Defaulting Lender immediately prior to giving effect to such assignment. 

  
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 (ii) Assignments shall be subject to the following
additional conditions: (1) except in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning Lender’s Commitment, the amount of the Commitment of the assigning
Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $10,000,000, and the Commitments of any assigning Lender
remaining a party hereto after giving effect to the assignment shall be at least $10,000,000, unless, in each case, each of the Borrower, the Administrative Agent otherwise consents, provided that no such consent of the Borrower shall be
required if an Event of Default has occurred and is continuing; (2) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement; (3) the
parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; (4) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire and shall deliver notice of the Assignment and Assumption to the Borrower; and (5) in the case of an assignment to a CLO, the assigning Lender shall retain the sole right to approve any
amendment, modification or waiver of any provision of this Agreement, provided that the Assignment and Assumption between such Lender and such CLO may provide that such Lender will not, without the consent of such CLO, agree to any amendment,
modification or waiver described in the first proviso to Section 12.02 that affects such CLO. 
 (iii) Subject to Section 12.04(b)(iv) and the acceptance and recording thereof, from and after the effective date specified in each Assignment and Assumption the assignee thereunder shall be a
party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be
a party hereto but shall continue to be entitled to the benefits of Section 5.01, Section 5.02, Section 5.03 and Section 12.03). Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this Section 12.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with Section 12.04(c).

 (iv) The Administrative Agent, acting for this purpose as an agent of the Borrower, shall
maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Maximum Credit Amount of, and principal amount of the Loans and LC
Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent, each Issuing Bank and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower,
any Issuing Bank and any Lender, at 

  
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any reasonable time and from time to time upon reasonable prior notice. In connection with any changes to the Register, if necessary, the Administrative Agent will reflect the revisions on
Annex I and forward a copy of such revised Annex I to the Borrower, each Issuing Bank and each Lender. 
 (v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee referred to in Section 12.04(b) and any written consent to such assignment required by Section 12.04(b), the Administrative Agent shall accept such Assignment and
Assumption and record the information contained therein in the Register. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this Section 12.04(b). 

(c) (i) Any Lender may, without the consent of the Borrower, the Administrative Agent or any Issuing Bank, sell
participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitment and the loans owing to it);
provided that (1) such Lender’s obligations under this Agreement shall remain unchanged, (2) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (3) the
Borrower, the Administrative Agent, each Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that
such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the proviso to Section 12.02 that affects such Participant. In
addition such agreement must provide that the Participant be bound by the provisions of Section 12.03. Subject to Section 12.04(c)(ii), the Borrower agrees that each Participant shall be entitled to the benefits of
Section 5.01, Section 5.02 and Section 5.03 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 12.04(b). To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 12.08 as though it were a Lender, provided such Participant agrees to be subject to Section 4.01(c) as though it were a Lender. 

(ii) A Participant shall not be entitled to receive any greater payment under Section 5.01 or
Section 5.03 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior
written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 5.03 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees,
for the benefit of the Borrower, to comply with Section 5.03(e) as though it were a Lender. 
 (d)
Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and
this Section 12.04(d) 

  
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shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
 (e)
Notwithstanding any other provisions of this Section 12.04, no transfer or assignment of the interests or obligations of any Lender or any grant of participations therein shall be permitted if such transfer, assignment or grant would
require the Borrower to file a registration statement with the SEC or to qualify the Loans under the “Blue Sky” laws of any state. 
 Section 12.05 Survival; Revival; Reinstatement. 
 (a) All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any
other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the making of any Loans and issuance of any Letters of Credit, regardless of any
investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, any Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any
credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit
is outstanding and so long as the Commitments have not expired or terminated. The provisions of Section 5.01, Section 5.02, Section 5.03 and Section 12.03 and ARTICLE XI shall survive and remain in full
force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement, any other Loan
Document or any provision hereof or thereof. 
 (b) To the extent that any payments on the Obligations or
proceeds of any collateral are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, debtor in possession, receiver or other Person under any bankruptcy law, common law or equitable
cause, then to such extent, the Obligations so satisfied shall be revived and continue as if such payment or proceeds had not been received and the Administrative Agent’s, and the Lenders’ Liens, security interests, rights, powers and
remedies under this Agreement and each Loan Document shall continue in full force and effect. In such event, each Loan Document shall be automatically reinstated and the Borrower shall take such action as may be reasonably requested by the
Administrative Agent or the Lenders to effect such reinstatement. 
 Section 12.06 Counterparts;
Integration; Effectiveness. 
 (a) This Agreement may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. 

  
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 (b) This Agreement, the other Loan Documents and any separate letter
agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof and thereof. This Agreement and the other Loan Documents represent the final agreement among the parties hereto and thereto and may not be contradicted by evidence of prior, contemporaneous or subsequent oral
agreements of the parties. There are no unwritten oral agreements between the parties. 
 (c) Except as provided
in Section 6.01(a), this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures
of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by
telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. 
 Section
12.07 Severability. Any provision of this Agreement or any other Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof or thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction. 
 Section 12.08 Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final)
at any time held and other obligations (of whatsoever kind, including, without limitations obligations under Swap Agreements) at any time owing by such Lender or Affiliate to or for the credit or the account of the Borrower or any Subsidiary against
any of and all the obligations of the Borrower or any Subsidiary owed to such Lender now or hereafter existing under this Agreement or any other Loan Document, irrespective of whether or not such Lender shall have made any demand under this
Agreement or any other Loan Document and although such obligations may be unmatured. The rights of each Lender under this Section 12.08 are in addition to other rights and remedies (including other rights of setoff) which such Lender or
its Affiliates may have. 
 Section 12.09 Governing Law; Jurisdiction; Consent to Service of
Process. 
 (a) This Agreement and the Loan Documents shall be governed by, and construed in
accordance with, the laws of the State of Texas without regard to any choice-of-law provisions that would require the application of the law of another jurisdiction; provided, to the extent any of the Security Instruments recite that they are
governed by the law of another jurisdiction, or any action or event taken thereunder (such as foreclosure of the Mortgaged Property) requires application of or compliance with the law of another jurisdiction, such provisions and concepts shall
apply. 

  
 -92-

 (b) Any legal action or proceeding with respect to the Loan Documents shall
be brought in the courts of the State of Texas sitting in Harris County and of the United States District Court of the Southern District of Texas, and, by execution and delivery of this Agreement, each party hereby accepts for itself and (to the
extent permitted by law) in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts. Each party hereby irrevocably waives any objection, including, without limitation, any objection to the laying of venue or
based on the grounds of forum non conveniens, which it may now or hereafter have to the bringing of any such action or proceeding in such respective jurisdictions. This submission to jurisdiction is non-exclusive and does not preclude a party from
obtaining jurisdiction over another party in any court otherwise having jurisdiction. 
 (c) Each party
irrevocably consents to the service of process of any of the aforementioned courts in any such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to it at the address specified in Section
12.01 or such other address as is specified pursuant to Section 12.01 (or its assignment and assumption), such service to become effective thirty (30) days after such mailing. Nothing herein shall affect the right of a party or
any holder of a note to serve process in any other manner permitted by law or to commence legal proceedings or otherwise proceed against another party in any other jurisdiction. 

(d) Each party hereby (i) irrevocably and unconditionally waives, to the fullest extent permitted by law, trial by
jury in any legal action or proceeding relating to this Agreement or any other Loan Document and for any counterclaim therein; (ii) irrevocably waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in
any such litigation any special, exemplary, punitive or consequential damages, or damages other than, or in addition to, actual damages; (iii) certifies that no party hereto nor any representative or agent of counsel for any party hereto has
represented, expressly or otherwise, or implied that such party would not, in the event of litigation, seek to enforce the foregoing waivers, and (iv) acknowledges that it has been induced to enter into this Agreement, the Loan Documents and
the transactions contemplated hereby and thereby by, among other things, the mutual waivers and certifications contained in this Section 12.09. 
 Section 12.10 Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this Agreement. 
 Section 12.11
Confidentiality. Each of the Administrative Agent, each Issuing Bank and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its
Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information
and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority or self-regulatory body; provided Borrower has been given reasonable advance notice thereof and been afforded an opportunity
to limit or protest the disclosure, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process; provided Borrower has been given reasonable advance notice thereof and been afforded an
opportunity to limit or protest the disclosure, (d) to any other party to this Agreement or any other Loan Document, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any suit, action or
proceeding relating 

  
 -93-

 
to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this
Section 12.11, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors)
to any Swap Agreement relating to the Borrower and its obligations, (g) with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this
Section 12.11 or (ii) becomes available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis from a source other than the Borrower. For the purposes of this Section 12.11,
“Information” means all information received from the Borrower or any Subsidiary relating to the Borrower or any Subsidiary and their businesses, other than any such information that is available to the Administrative Agent, any
Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by the Borrower or a Subsidiary. Any Person required to maintain the confidentiality of Information as provided in this Section 12.11 shall be considered to have
complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. Notwithstanding anything herein to the
contrary, any party hereto (and each employee, representative or other agent of such party) may disclose without limitation of any kind, any information with respect to the “tax treatment” and “tax structure” (in
each case, within the meaning of Treasury Regulation Section 1.6011-4) of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to that party relating to such tax
treatment or tax structure; provided that with respect to any document or similar item that in either case contains information concerning the tax treatment or tax structure of the transactions, as well as other information, this sentence
shall only apply to such portions of the document or similar item that relate to the tax treatment or tax structure of the transactions contemplated hereby. 
 Section 12.12 Exculpation Provisions. Each of the parties hereto specifically agrees that it has a duty to read this Agreement and the other Loan Documents and agrees that it is charged with
notice and knowledge of the terms of this Agreement and the other Loan Documents; that it has in fact read this Agreement and is fully informed and has full notice and knowledge of the terms and conditions of this Agreement; that it has been
represented by independent legal counsel of its choice throughout the negotiations preceding its execution of this Agreement and the other Loan Documents; and has received the advice of its attorney in entering into this Agreement and the other Loan
Documents; and that it recognizes that certain of the terms of this Agreement and the other Loan Documents may result, subject to the terms hereof and thereof and applicable law, in one party assuming the liability inherent in some aspects of the
transaction and relieving the other party of its responsibility for such liability. Each party hereto agrees and covenants that it will not contest the validity or enforceability of any exculpatory provision of this Agreement and the other loan
documents on the basis that the party had no notice or knowledge of such provision or that the provision is not “conspicuous.” 
 Section 12.13 No Third Party Beneficiaries. This Agreement, the other Loan Documents, and the agreement of the Lenders to make Loans and each Issuing Bank to issue, amend, renew or extend
Letters of Credit hereunder are solely for the benefit of the Borrower, and no other Person (including, without limitation, any Subsidiary of the Borrower, any obligor, contractor, subcontractor, supplier or materialmen) shall have any rights,
claims, remedies or privileges hereunder or under any other Loan Document against the Administrative Agent, any Issuing Bank or any Lender for any reason whatsoever. There are no third party beneficiaries. 

  
 -94-

 Section 12.14 Collateral Matters; Swap Agreements. The benefit
of the Security Instruments and of the provisions of this Agreement relating to any collateral securing the Obligations shall also extend to and be available to (a) BP Corporation North America Inc., as the counterparty to the BP Swap
Agreement, each and (b) those Lenders or their Affiliates which are counterparties to any Swap Agreement with the Borrower or any of its Subsidiaries on a pro rata basis in respect of any obligations of the Borrower or any of its Subsidiaries
which arise under any such Swap Agreement while such Person or its Affiliate is a Lender, but only while such Person or its Affiliate is a Lender, including any Swap Agreements between such Persons in existence prior to the date hereof. Neither BP
Corporation North America Inc. nor any Lender or any Affiliate of a Lender shall have any voting rights under any Loan Document as a result of the existence of obligations owed to it under any such Swap Agreements. 

Section 12.15 US Patriot Act Notice. Each Lender hereby notifies the Borrower that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify and record information that identifies the Borrower, which information
includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Patriot Act. 
 Section 12.16 Interest Rate Limitation. Each provision in this Agreement and each other Loan Document is expressly limited so that in no event whatsoever shall the amount paid, or otherwise
agreed to be paid, by the Borrower for the use, forbearance or detention of the money to be loaned under this Agreement or any other Loan Document or otherwise (including any sums paid as required by any covenant or obligation contained herein or in
any other Loan Document which is for the use, forbearance or detention of such money), exceed that amount of money which would cause the effective rate of interest thereon to exceed the Highest Lawful Rate, and all amounts owed under this Agreement
and each other Loan Document shall be held to be subject to reduction to the effect that such amounts so paid or agreed to be paid which are for the use, forbearance or detention of money under this Agreement or such Loan Document shall in no event
exceed that amount of money which would cause the effective rate of interest thereon to exceed the Highest Lawful Rate. To the extent that the Highest Lawful Rate applicable to a Lender is at any time determined by Texas law, such rate shall be the
“weekly ceiling” described in the Texas Finance Code, Chapter 303, as amended; provided, however, to the extent permitted by such Finance Code, the Lenders from time to time by notice from the Administrative Agent to Borrower
may revise the aforesaid election of such interest rate ceiling as such ceiling affects the then-current or future balances of the Loans outstanding under the Notes. Notwithstanding any provision in this Agreement or any other Loan Document to the
contrary, if the maturity of the Notes or the obligations in respect of the other Loan Documents are accelerated for any reason, or in the event of prepayment of all or any portion of the Notes or the obligations in respect of the other Loan
Documents by the Borrower or in any other event, earned interest on the Loans and such other obligations of the Borrower may never exceed the maximum amount permitted by applicable law, and any unearned interest otherwise payable under the Notes or
the obligations in respect of the other Loan Documents that is in excess of the maximum amount permitted by applicable law shall be cancelled automatically as of the date of 

  
 -95-

 
such acceleration or prepayment or other such event and, if theretofore paid, shall be credited on the principal of the Notes or, if the principal of the Notes has been paid in full, refunded to
the Borrower. In determining whether or not the interest paid or payable, under any specific contingency, exceeds the Highest Lawful Rate, the Borrower and the Lenders shall, to the maximum extent permitted by applicable law, amortize, prorate,
allocate and spread, in equal parts during the period of the actual term of this Agreement, all interest at any time contracted for, charged, received or reserved in connection with the Loan Documents. 

[Signatures Begin Next Page] 

  
 -96-

 The parties hereto have caused this Agreement to be duly executed as of the
day and year first above written. 
  

			
	BORROWER:
	
	BLACK ELK ENERGY OFFSHORE OPERATIONS, LLC, a Texas limited liability company
		
	 By:
	 	/s/ James Hagemeier
		 	 James Hagemeier
 Vice President

 Signature Page to Credit Agreement

 
			
	ADMINISTRATIVE AGENT, ISSUING BANK AND LENDER:
	
	 CAPITAL ONE, N.A.

		
	 By:
	 	/s/ Eric Broussard
	 Name:
	 	Eric Broussard
	 Title:
	 	Senior Vice President

 Signature Page
to Credit Agreement 

 
			
	LENDER:
	
	CAPITAL ONE, N.A.
		
	By:	 	 /s/ Eric Broussard

	Name:	 	 Eric Broussard

	Title:	 	 Senior Vice President

 Signature Page to Credit Agreement 

 ANNEX I 
 LIST OF MAXIMUM CREDIT AMOUNTS 
  

									
	Name of Lender	  	Applicable Percentage	 	 	Maximum Credit Amount	 
	 Capital One, N.A.
	  	 	100.00	% 	 	$	35,000,000.00	  
		  	 	 	 	 	 	 	 
	 TOTAL
	  	 	100.00	% 	 	$	35,000,000.00	  

  
 Annex I-1

 EXHIBIT A 
 FORM OF NOTE 
  

			
	 $[                    ]
	  	December 24, 2010

 FOR VALUE RECEIVED, BLACK ELK ENERGY OFFSHORE OPERATIONS, LLC, a Texas limited liability company (the “Borrower”) hereby promises to pay to the order of
[                        ] (the “Lender”), the lesser of
(i) [                            ] DOLLARS
($[                        ]) and (ii) the aggregate unpaid Loans made by the Lender pursuant to the Credit
Agreement, as hereinafter defined), in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided in the Credit Agreement referred to below, on the dates and in the amounts set
forth in the Credit Agreement. All capitalized terms used herein and not otherwise defined that are defined in the Credit Agreement have the meanings as defined in the Credit Agreement. 

The Borrower promises to pay interest on the unpaid principal amount of this Note outstanding from time to time from the
date hereof until such principal amount is paid in full, at the place and at such interest rates as are specified in the Credit Agreement. 
 This Note is one of the Notes referred to in, and the Note and all provisions herein are entitled to the benefits and are subject to the terms of, the Credit Agreement, dated as of December 24, 2010,
among the Borrower, Capital One, N.A., as Administrative Agent, and the lenders signatory thereto (including the Lender) (as the same may be amended or otherwise modified from time to time, the “Credit Agreement”). 

The obligations of the Borrower hereunder are secured by the Security Documents (subject to the limitations contained in
the Security Documents and the Credit Agreement). The Credit Agreement, among other things, (a) provides for the making of advances by the Lender and other Lenders to the Borrower from time to time, and (b) contains provisions for
acceleration of the maturity hereof upon the happening of certain stated events, for prepayments on account of principal hereof prior to the maturity hereof upon the terms and conditions therein specified, and for limitations on the amount of
interest paid such that no provision of the Credit Agreement or this Note shall require the payment or permit the collection of interest in excess of the Highest Lawful Rate. 

The Borrower waives grace, demand, presentment for payment, notice of dishonor or default, notice of intent to accelerate
or acceleration, protest and notice of protest and diligence in collecting and bringing of suit against any party hereto. 

  
 Exhibit A-1

 This Note shall be governed by and construed under the laws of the State of
Texas and the applicable laws of the United States of America. 
  

			
	BLACK ELK ENERGY OFFSHORE OPERATIONS,
LLC, a Texas limited liability company
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 Exhibit A-2

 EXHIBIT B 
 FORM OF BORROWING REQUEST 

[                      
  ], 20[    ] 
 BLACK ELK ENERGY OFFSHORE OPERATIONS, LLC, a Texas
limited liability company (the “Borrower”), pursuant to Section 2.03 of the Credit Agreement dated as of December 24, 2010 (together with all amendments, restatements, supplements or other modifications thereto, the
“Credit Agreement”), among the Borrower, Capital One, N.A., as Administrative Agent and the lenders (the “Lenders”) which are or become parties thereto (unless otherwise defined herein, each capitalized term used
herein is defined in the Credit Agreement), hereby requests a Borrowing as follows: 
 (i) Aggregate amount of the requested
Borrowing is $[                    ]; 
 (ii) Date of such Borrowing is [                    ], 20[    ];

 (iii) Requested Borrowing is to be [an ABR Borrowing] [a Eurodollar Borrowing]; 

(iv) In the case of a Eurodollar Borrowing, the initial Interest Period applicable thereto is
[                    ]; 
 (v) Amount of Borrowing Base in effect on the date hereof is $[                    ]; 

(vi) Total Credit Exposures on the date hereof (i.e., outstanding principal amount of Loans and total LC Exposure) is
$[                    ]; and 
 (vii) Pro forma total Credit Exposures (giving effect to the requested Borrowing) is
$[                    ]; and 
 (viii) Location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of Section 2.05 of the Credit Agreement, is as follows:

[                      
          ] 

[                      
          ] 

  
 Exhibit B-1

 The undersigned certifies that he/she is the
[                        ] of the Borrower, and that as such he/she is authorized to execute this certificate on behalf of
the Borrower. The undersigned further certifies, represents and warrants on behalf of the Borrower that (a) the Borrower is entitled to receive the requested Borrowing under the terms and conditions of the Credit Agreement, (b) that no
Default or Event of Default exists, and (c) after giving effect to the Borrowing request made herein the total Credit Exposure will not exceed the Borrowing Base now in effect. 

 

			
	BLACK ELK ENERGY OFFSHORE OPERATIONS,
LLC, a Texas limited liability company
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 Exhibit B-2

 EXHIBIT C 
 FORM OF INTEREST ELECTION REQUEST 

[                    ],
200[    ] 
 BLACK ELK ENERGY OFFSHORE OPERATIONS, LLC, a Texas limited liability
company (the “Borrower”), pursuant to Section 2.04 of the Credit Agreement dated as of December 24, 2010 (together with all amendments, restatements, supplements or other modifications thereto, the “Credit
Agreement”), among the Borrower, Capital One, N.A, as Administrative Agent and the lenders (the “Lenders”) which are or become parties thereto (unless otherwise defined herein, each capitalized term used herein is defined
in the Credit Agreement), hereby makes an Interest Election Request as follows: 
 (i) The Borrowing to which this Interest
Election Request applies, and if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information specified pursuant to (iii) and
(iv) below shall be specified for each resulting Borrowing) is [                        ]; 

(ii) The effective date of the election made pursuant to this Interest Election Request is
[                    ], 20[    ];[and] 
 (iii) The resulting Borrowing is to be [an ABR Borrowing] [a Eurodollar Borrowing][; and] 

[(xiii) [If the resulting Borrowing is a Eurodollar Borrowing] The Interest Period applicable to the resulting Borrowing after giving effect to such
election is [                    ]]. 
 The undersigned certifies that he/she is the [                        ] of
the Borrower, and that as such he/she is authorized to execute this certificate on behalf of the Borrower. The undersigned further certifies, represents and warrants on behalf of the Borrower that the Borrower is entitled to receive the requested
continuation or conversion under the terms and conditions of the Credit Agreement. 
  

			
	BLACK ELK ENERGY OFFSHORE OPERATIONS,
LLC, a Texas limited liability company
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 Exhibit C-1

 EXHIBIT D 
 FORM OF 
 COMPLIANCE CERTIFICATE 

The undersigned hereby certifies that he/she is the
[                            ] of BLACK ELK ENERGY OFFSHORE OPERATIONS, LLC, a Texas limited liability
company (the “Borrower”), and that as such he/she is authorized to execute this certificate on behalf of the Borrower. With reference to the Credit Agreement dated as of December 24, 2010 (together with all amendments,
restatements, supplements or other modifications thereto being the “Agreement”), among the Borrower, Capital One, N.A., as Administrative Agent and the lenders (the “Lenders”) which are or become a party thereto,
the undersigned represents and warrants as follows (each capitalized term used herein having the same meaning given to it in the Agreement unless otherwise specified), to my knowledge after reasonable investigation: 

(a) The representations and warranties of the Borrower contained in ARTICLE VII of the Agreement and in the Loan Documents and
otherwise made in writing by or on behalf of the Borrower pursuant to the Agreement and the Loan Documents were true and correct when made, and are repeated at and as of the time of delivery hereof and are true and correct in all material respects
at and as of the time of delivery hereof, except to the extent such representations and warranties are expressly limited to an earlier date or the Required Lenders have expressly consented in writing to the contrary. 

(b) The Borrower has performed and complied with all agreements and conditions contained in the Agreement and in the Loan Documents
required to be performed or complied with by it prior to or at the time of delivery hereof [or specify default and describe]. 

(c) Since
[                    ], 20[    ], no change has occurred, either in any case or in the aggregate, in the condition,
financial or otherwise, of the Borrower or any Subsidiary which could reasonably be expected to have a Material Adverse Effect [or specify event]. 
 (d) There exists no Default or Event of Default [or specify Default and describe]. 

(e) Attached hereto as Exhibit A are the detailed computations necessary to determine whether the Borrower is in compliance
with Section 8.14 and Section 9.01 as of the end of the [fiscal quarter][fiscal year] ending
[                        ]. 
 EXECUTED AND DELIVERED this [            ] day of
[                    ], 20[    ]. 

 

			
	BLACK ELK ENERGY OFFSHORE OPERATIONS,
LLC, a Texas limited liability company
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 Exhibit D-1

 FINANCIAL COVENANT CALCULATION WORKSHEET 

Summary of Financial Ratios 
 Section
9.01 Financial Covenants 
  

							
		  		  		  	 In Compliance?

	 Current Ratio
	  	 min. 1.0 to 1.0
	  		  	
	 Interest Coverage Ratio
	  	 min. 3.0 to 1.0
	  		  	
	 Leverage Ratio
	  	 max. 2.5 to 1.0
	  		  	

 Current Ratio 
  

									
	Total Consolidated Current Assets	    	 =
	  	
    $                         
   
	 	 =
	  	
	Total Consolidated Current Liabilities	    	  	     $
	 	  	

 Interest Coverage Ratio 
  

									
	Total Consolidated EBITDAX	    	 =
	  	
    $                         
   
	 	 =
	  	
	Total Consolidated Interest Expense	    	  	     $
	 	  	

 Leverage Ratio 
  

									
	Total Debt	    	 =
	  	
    $                         
   
	 	 =
	  	
	Total Consolidated EBITDAX	    	  	     $
	 	  	

 Section 8.14 
 [Provide details of compliance/non-compliance] 

  
 Exhibit D-2

 Current Ratio 
 Section 9.01 Financial Covenants 
  

					
	 Consolidated Current Assets
	  	 $
	  	
	 (+) Unused Commitments
	  	 $
	  	
	 (-) Derivative assets
	  	 $
	  	
	Total Consolidated Current Assets	  	 $
	  	
			
	 Consolidated Current Liabilities
	  	 $
	  	
	 (-) Derivative liabilities
	  	 $
	  	
	Total Consolidated Current Liabilities	  	 $
	  	
			
	Current Ratio	  		  	

  
 Exhibit D-3

 Interest Coverage Ratio 
 Section 9.01 Financial Covenants 
  

			
	 Consolidated EBITDAX
	  	 Q__ 20__

	 Consolidated Net Income
	  	 $

		
	 Consolidated Interest Expense
	  	 $

		
	 Consolidated Income Tax Expense
	  	 $

		
	 consolidated depletion and depreciation expense of the Borrower and its Restricted Subsidiaries;
	  	 $

		
	 consolidated amortization expense or impairment charges of the Borrower and its Restricted Subsidiaries recorded in connection with the application of Financial
Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 350, Intangibles-Goodwill and Other (formerly Statement of Financial Accounting Standard No. 142, “Goodwill and Other Intangibles” and Statement of Financial
Accounting Standard No. 144, “Accounting for the Impairment or Disposal of Long Lived Assets”);
	  	 $

		
	 accretion of asset retirement obligations and other non-cash charges of the Borrower and its Restricted Subsidiaries (excluding any such non-cash charge to the
extent it represents an accrual of or reserve for cash charges in any future period or amortization of a prepaid cash expense that was paid in a prior period not included in the calculation);
	  	 $

		
	 Other non-cash charges (Unrealized gain / (loss) on derivatives)
	  	 $

		
	 so long as the Borrower uses successful efforts or a similar method of accounting for its Oil and Gas Properties, consolidated exploration expense of the
Borrower and its Restricted Subsidiaries; and
	  	 $

		
	Total Consolidated EBITDAX1	  	$

  

 

	1 	 Consolidated EBITDAX shall be Consolidated Net Income plus the aforementioned expenses or charges (i) for the most recently ended quarter
multiplied by four (4) with respect to the quarter ended December 31, 2010, (ii) for the most recently ended two (2) quarters multiplied by two (2) with respect to the quarter ended March 31, 2011, and (iii) for the
most recently ended three (3) quarters multiplied by four thirds (4/3) with respect to the quarter ended June 30, 2011. 

  
 Exhibit D-4

			
	 Consolidated Interest Expense
	  	 Q__ 20__

	 interest expense for such period attributable to Capital Lease Obligations and the interest component of any deferred payment obligations;
	  	 $

		
	 amortization of debt discount and debt issuance cost (provided that any amortization of bond premium will be credited to reduce Consolidated Interest Expense
unless, pursuant to GAAP, such amortization of bond premium has otherwise reduced Consolidated Interest Expense);
	  	 $

		
	 non-cash interest expense;
	  	 $

		
	 commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing;
	  	 $

		
	 the interest expense on Debt of another Person that is guaranteed by the Borrower or one of its Restricted Subsidiaries or secured by a lien on assets of the
Borrower or one of its Restricted Subsidiaries, to the extent such guarantee becomes payable or such lien becomes subject to foreclosure;
	  	 $

		
	 costs associated with interest rate obligations under Swap Agreements (including amortization of fees); provided, however, that if such interest rate obligations
under Swap Agreements result in net benefits rather than costs, such benefits shall be credited to reduce Consolidated Interest Expense unless, pursuant to GAAP, such net benefits are otherwise reflected in Consolidated Net Income;
	  	 $

		
	 the consolidated interest expense of the Borrower and its Restricted Subsidiaries that was capitalized during such period; and
	  	 $

		
	 all dividends paid or payable in cash, cash equivalents or Debt or dividends accrued during such period on any series of Disqualified Capital Stock of the
Borrower or on preferred stock of its Restricted Subsidiaries payable to a party other than the Borrower or a Wholly-Owned Subsidiary;
	  	 $

		
	Total Consolidated Interest Expense	  	$

 Interest Coverage Ratio

  
 Exhibit D-5

 Leverage Coverage Ratio 
 Section 9.01 Financial Covenants 
  

			
	 Debt
	  	 Q__ 20__

	 (a) all obligations of such Person for borrowed money or evidenced by bonds, bankers’ acceptances, debentures, notes or other similar
instruments;
	  	 $

		
	 (b) all obligations of such Person (whether contingent or otherwise) in respect of letters of credit, surety or other bonds and similar
instruments;
	  	 $

		
	 (c) all accounts payable and all accrued expenses, liabilities or other obligations of such Person to pay the deferred purchase price of Property or
services;
	  	 $

		
	 (d) all Capital Lease Obligations;
	  	 $

		
	 (e) all obligations under Synthetic Leases;
	  	 $

		
	 (f) all Debt (as defined in the other clauses of this definition) of others secured by a Lien on any Property of such Person, whether or not such Debt is assumed
by such Person;
	  	 $

		
	 (g) all Debt (as defined in the other clauses of this definition) of others guaranteed by such Person or in which such Person otherwise assures a creditor
against loss of the Debt (howsoever such assurance shall be made) to the extent of the lesser of the amount of such Debt and the maximum stated amount of such guarantee or assurance against loss;
	  	 $

		
	 (h) all obligations or undertakings of such Person to maintain or cause to be maintained the financial position or covenants of others or to purchase the Debt or
Property of others;
	  	 $

		
	 (i) obligations to deliver commodities, goods or services, including, without limitation, Hydrocarbons, in consideration of one or more advance payments, other
than gas balancing arrangements in the ordinary course of business;
	  	 $

		
	 (j) any Debt of a partnership for which such Person is liable either by agreement, by operation of law or by a Governmental Requirement but only to the extent of
such liability;
	  	 $

		
	 (k) Disqualified Capital Stock;
	  	 $

		
	 (l) preferred stock; and
	  	 $

		
	 (m) the undischarged balance of any production payment created by such Person or for the creation of which such Person directly or indirectly received
payment.
	  	 $

		
	Total Debt	  	$

  
 Exhibit D-6

			
	 Consolidated EBITDAX
	  	 Q__ 20__

	 Consolidated Net Income
	  	 $

		
	 Consolidated Interest Expense
	  	 $

		
	 Consolidated Income Tax Expense
	  	 $

		
	 consolidated depletion and depreciation expense of the Borrower and its Restricted Subsidiaries;
	  	 $

		
	 consolidated amortization expense or impairment charges of the Borrower and its Restricted Subsidiaries recorded in connection with the application of Financial
Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 350, Intangibles-Goodwill and Other (formerly Statement of Financial Accounting Standard No. 142, “Goodwill and Other Intangibles” and Statement of Financial
Accounting Standard No. 144, “Accounting for the Impairment or Disposal of Long Lived Assets”);
	  	 $

		
	 accretion of asset retirement obligations and other non-cash charges of the Borrower and its Restricted Subsidiaries (excluding any such non-cash charge to the
extent it represents an accrual of or reserve for cash charges in any future period or amortization of a prepaid cash expense that was paid in a prior period not included in the calculation);
	  	 $

		
	 Other non-cash charges (Unrealized gain / (loss) on derivatives)
	  	 $

		
	 so long as the Borrower uses successful efforts or a similar method of accounting for its Oil and Gas Properties, consolidated exploration expense of the
Borrower and its Restricted Subsidiaries; and
	  	 $

		
	 Total Consolidated EBITDAX
	  	 $

 Leverage Ratio

  
 Exhibit D-7

 EXHIBIT G 
 FORM OF ASSIGNMENT AND ASSUMPTION 
 Reference is made to
the Credit Agreement, dated as of December 24, 2010 (as amended, restated, supplemented or otherwise modified from time to time and in effect on the date hereof, the “Credit Agreement”), among Black Elk Energy Offshore
Operations, LLC, the Lenders named therein and Capital One, N.A., as Administrative Agent for the Lenders. Capitalized terms defined in the Credit Agreement are used herein with the same meanings. 

The Assignor named below hereby sells and assigns, without recourse, to the Assignee named below, and the Assignee hereby
purchases and assumes, without recourse, from the Assignor, effective as of the Assignment Date set forth on the reverse hereof, the interests set forth on the reverse hereof (the “Assigned Interest”) in the Assignor’s rights
and obligations under the Credit Agreement, including, without limitation, the interests set forth on the reverse hereof in the Commitment of the Assignor on the Assignment Date and Loans owing to the Assignor which are outstanding on the Assignment
Date, together with the participations in Letters of Credit and LC Disbursements held by the Assignor on the Assignment Date, but excluding accrued interest and fees to and excluding the Assignment Date. The Assignee hereby acknowledges receipt of a
copy of the Credit Agreement. From and after the Assignment Date (i) the Assignee shall be a party to and be bound by the provisions of the Credit Agreement and, to the extent of the Assigned Interest, have the rights and obligations of a
Lender thereunder and (ii) the Assignor shall, to the extent of the Assigned Interest, relinquish its rights and be released from its obligations under the Credit Agreement. 

This Assignment and Assumption is being delivered to the Administrative Agent (with a copy to the Borrower) together with
(i) if the Assignee is a Foreign Lender, any documentation required to be delivered by the Assignee pursuant to Section 5.03 of the Credit Agreement, duly completed and executed by the Assignee, and (ii) if the Assignee is not
already a Lender under the Credit Agreement, an Administrative Questionnaire in the form supplied by the Administrative Agent, duly completed by the Assignee. The [Assignee/Assignor] shall pay the fee payable to the Administrative Agent pursuant to
Section 12.04(b) of the Credit Agreement. 
 This Assignment and Assumption shall be governed by and
construed in accordance with the laws of the State of Texas. 
 Date of Assignment: 

Legal Name of Assignor: 
 Legal Name of Assignee: 
 Assignee’s Address for Notices:

 Effective Date of Assignment (“Assignment Date”): 

  
 Exhibit G-1

									
	 Facility
	  	Principal Amount Assigned	 	  	Percentage Assigned of
Facility/Commitment (set
forth, to at least 
8 decimals, as
a percentage of the Facility
and the aggregate
Commitments of all Lenders
thereunder)	 
	 Commitment Assigned:
	  	$	 	  	  	 	%	  
	 Loans:
	  				  			

 The terms set forth above and on the reverse side hereof are hereby agreed to:

  

			
	[Name of Assignor], as Assignor
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	[Name of Assignee], as Assignee
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 Exhibit G-2

 The undersigned hereby consent to the within
assignment:2 

 

									
	 BLACK ELK ENERGY OFFSHORE
OPERATIONS, LLC,
 a Texas limited liability company
	 		 	CAPITAL ONE, N.A.
					
	By:	 	 	 		 	By:	 	 
	Name:	 	 	 		 	Name:	 	 
	Title:	 	 	 		 	Title:	 	 

  

 

	2 	 Consents to be included to the extent required by Section 12.04(b) of the Credit Agreement. 

  
 Exhibit G-3

 SCHEDULE 6.03 
 TITLE OPINION PROPERTIES 
  

	1.	 High Island A-376 

  

	2.	 High Island A-571 

  

	3.	 Sabine Pass 13 

  

	4.	 South Pass 89 

  
 Schedule
6.03-1 

 SCHEDULE 7.01 
 CORPORATE ORGANIZATIONAL CHART 
 [GRAPHIC] 

  
 Schedule
7.01-1 

 SCHEDULE 7.05 
 LITIGATION 
 None. 

  
 Schedule
7.05-1 

 SCHEDULE 7.14 
 SUBSIDIARIES 
  

			
	 Name of Subsidiary
	  	 Ownership Interest of the Borrower

	 Black Elk Energy Operations, LLC
	  	100%
	 Black Elk Energy Finance Corp.
	  	100%

  
 Schedule
7.14-1 

 SCHEDULE 7.16 
 TITLE EXCEPTIONS TO PROPERTIES 
 None. 

  
 Schedule
7.16-1 

 SCHEDULE 7.18 
 GAS IMBALANCES 
  

							
	 Field Name
	  	Est. Gas Imbalance as of
October 31, 2010
(MMBTU)	  	Price	  	Total
	 Total Liability
	  	513,455	  	$4.62	  	$2,369,666

  
 Schedule
7.18-1 

 SCHEDULE 7.19 
 MARKETING CONTRACTS 
  

			
	 American Midstream
	  	 Natural Gas

	 Cima Energy Ltd.
	  	 Natural Gas

	 J.P. Morgan Ventures Energy Corporation
	  	 Natural Gas

	 Upstream Energy Services LP
	  	 Natural Gas

	 Chevron
	  	 Natural Gas

	 ConocoPhillips
	  	 Natural Gas

	 Panther Pipeline
	  	 Natural Gas

	 Plains Marketing LP
	  	 Crude Oil

	 Koch
	  	 Crude Oil

	 Shell Trading (US) Company
	  	 Crude Oil

	 Texon LP
	  	 Crude Oil

  
 Schedule
7.19-1 

 SCHEDULE 7.20 
 SWAP AGREEMENTS 
  

																	
	 	  	Crude Oil	 	  	Natural Gas	 
	 Period
	  	Volume
(Bbls)	 	  	Contract Price
($/Bbl)	 	  	Volume
(MMBtu)	 	  	Contract Price
($/MMBtu)	 
	 Swaps:
	  				  				  				  			
	 10/10 - 12/10
	  	 	42,133	  	  	$	81.22	  	  				  			
	 1/11 - 12/11
	  	 	25,400	  	  	$	81.22	  	  				  			
	 1/12 - 12/12
	  	 	17,050	  	  	$	81.22	  	  				  			
	 10/10 - 12/10
	  	 	4,500	  	  	$	81.14	  	  	 	30,750	  	  	$	5.89	  
	 1/11 - 12/11
	  	 	2,600	  	  	$	81.14	  	  	 	6,250	  	  	$	5.89	  
	 1/12 - 12/12
	  	 	1,900	  	  	$	81.14	  	  	 	5,250	  	  	$	5.89	  
	 10/10 - 12/10
	  	 	900	  	  	$	83.50	  	  	 	166,000	  	  	$	5.70	  
	 1/11 - 12/11
	  	 	200	  	  	$	83.50	  	  	 	78,500	  	  	$	5.70	  
	 1/12 - 7/12
	  	 	200	  	  	$	83.50	  	  	 	53,000	  	  	$	5.70	  
	 10/10 - 12/10
	  				  				  	 	166,154	  	  	$	5.89	  
	 1/11 - 12/11
	  				  				  	 	93,569	  	  	$	5.89	  
	 1/12 - 12/12
	  				  				  	 	26,838	  	  	$	5.89	  
	 11/10 - 12/10
	  	 	67,500	  	  	$	85.90	  	  	 	595,000	  	  	$	5.00	  
	 1/11 - 12/11
	  	 	41,500	  	  	$	85.90	  	  	 	321,000	  	  	$	5.00	  
	 1/12 - 12/12
	  	 	27,500	  	  	$	85.90	  	  	 	112,000	  	  	$	5.00	  
	 1/13 - 12/13
	  	 	19,750	  	  	$	85.90	  	  	 	47,000	  	  	$	5.00	  
	 1/14 - 12/14
	  	 	15,000	  	  	$	65.00	  	  				  			

  
 Schedule
7.20-1 

 SCHEDULE 9.02 
 EXISTING DEBT 
  

									
	 Creditor
	  	Interest Rate	 	 	Outstanding as of
Q3 2010
(in thousands)	 
	 First Insurance/note payable
	  	 	3.25	% 	 	$	2,997	  
	 Synergy Bank/note payable
	  	 	6.5	% 	 	$	71	  

  
 Schedule
9.02-1 

 SCHEDULE 9.03 
 LIENS 
  

	1.	 Synergy Bank: Purchase money security interest in barge (La Fourche Parish, Louisiana) 

 

	2.	 W&T Offshore, Inc. relating to those properties designated as “Non-Operated” acquired from W&T pursuant to the Mortgage, Deed of
Trust, Collateral Assignment, Security Agreement and Financing Statement (Cameron and Plaquemines Parish, Louisiana and in Texas) 

  

	3.	 Mariner Energy, Inc. – relating to collateral associated with Eugene Island Area, Block 53 SW/4 (Cameron Parish, Louisiana and in Texas) *

  

	4.	 Mariner Energy, Inc. – relating to collateral associated with Ewing Bank, Block 966 (Plaquemines Parish, Louisiana and in Texas) *

  

	5.	 Key Energy Services, Inc. – to secure payment and other obligations under any master service agreement, rental or other agreement, purchase
order, work order or other arrangement (Texas) 

  

	6.	 W&T Escrow Accounts—W&T has a first priority lien with an affiliate of Platinum holding a second lien for the benefit of BP.

  

	*	 Liens filed with respect to operating agreements as a precautionary measure. Mariner has a right to a Lien in the event of a default under such
operating agreement. As of the Effective Date, there is no event of default and no debt is owed to Mariner. 

  
 Schedule
9.03-1 

 SCHEDULE 9.05 
 INVESTMENTS 
 In October 2010, Freedom Logistics LLC
(“Freedom”) was formed by Platinum and Freedom HHC Management, LLC, the members of which are Messers John Hoffman, James Hagemeier and David Cantu (a member of BEEOO’s management), to hold two helicopters, the purchase of
which by Freedom was guaranteed by Black Elk in the aggregate principal amount of $3.2 million. In early 2010, Black Elk had loaned $1.0 million to Freedom for use in acquiring the helicopters and this amount was repaid as of September 30,
2010. The helicopters are being leased to Helicopter Services Inc. (“HSI”), a Houston-based Texas corporation that specializes in charter operations. Pursuant to the terms of the lease agreement, HSI will operate the helicopters in
the ordinary course of its business and BEEOO will have first priority on the use of such operations. The entry into this arrangement and related matters, including the guarantee of the purchase of the helicopters and the loan, was approved by
our full Board of Managers of BEEOO. 

  
 Schedule
9.05-1

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