Document:

Execution
Version

 

Intercreditor
Agreement

 

THIS
INTERCREDITOR AGREEMENT (this “Agreement) is entered into as of October 15, 2013 by and among Osage Exploration
and Development, Inc., a Delaware corporation (the “Issuer”), the Affiliates of the Issuer that are
Guarantors under the Note Purchase Agreement (collectively referred to as “Guarantors,” and together
with Issuer collectively referred to as the “Note Parties’“), BP Energy Company (“BP”),
and Apollo Investment Corporation (“Apollo”), in its capacity as administrative agent for the Holders
under the Note Purchase Agreement (in such capacity, the “Administrative Agent”) and in its capacity
as Collateral Agent (as hereinafter defined) for the Secured Parties (as defined in the Note Purchase Agreement), and each other
Person that from time to time becomes a party hereto in accordance with the terms of this Agreement.

 

RECITALS:

 

WHEREAS,
pursuant to a Note Purchase Agreement, dated as of April 27, 2012 (as the same may be amended, restated, supplemented or otherwise
modified or replaced from time to time, the “Note Purchase Agreement”), among Issuer, the various financial
institutions and entities from time to time parties thereto (collectively referred to as the “Holders”)
and the Administrative Agent, Holders have purchased or may purchase Notes (as such term is defined in the Note Purchase Agreement)
from the Note Parties;

 

WHEREAS,
pursuant to (a) the Guarantee and Collateral Agreement, dated as of April 27, 2012 (as the same may be amended, restated, supplemented
or otherwise modified or replaced from time to time, the “Guarantee and Collateral Agreement”) and (b)
the other Collateral Documents (as defined in the Note Purchase Agreement), Issuer and each Guarantor party thereto has granted
a security interest on a First Priority basis (as defined in the Note Purchase Agreement) in the Collateral to secure the Secured
Obligations (as defined in the Guarantee and Collateral Agreement);

 

WHEREAS,
certain Note Parties and BP have entered into (i) that certain ISDA Master Agreement dated as of April 13, 2013, including the
schedules, exhibits and annexes related thereto, and (ii) that certain Amended and Restated ISDA Schedule dated as of October
15, 2013, and have entered into or will enter into one or more transaction confirmations under the foregoing (collectively referred
to as the “BP ISDA”);

 

WHEREAS,
the Note Purchase Agreement and the BP ISDA provide, among other things, that the parties thereto shall enter into this Agreement
to, among other things, define the rights, duties, authorities and responsibilities of the Collateral Agent, the Administrative
Agent and the respective rights and remedies among the Secured Parties (as defined in the Note Purchase Agreement) with respect
to the Collateral; and

 

WHEREAS,
Collateral Agent, Administrative Agent (on behalf of itself and the Holders), BP and Note Parties desire to enter into this Agreement
to (i) establish the relative priorities of Holder Parties and BP with respect to payment of the Note Obligations (defined below)
owed by Issuer to Holders and the BP Swap Obligations (defined below) owed by Issuer to BP, and (ii) agree with respect
to the exercise of certain remedies and for the other purposes set forth herein.

 

    	 

    	 

    

 

AGREEMENTS:

 

In
consideration of the mutual covenants and promises of this Agreement, and for other consideration, the receipt and adequacy of
which are hereby acknowledged, Issuer, BP, the Holders, the Administrative Agent and the Collateral Agent agree as follows:

 

1.
Definitions. As used in this Agreement,

 

BP
Swap Documents means the BP ISDA, including, but not limited to, each relevant confirmation of a transaction thereunder.

 

BP
Swap Obligations means all net amounts owed or to become owing by Note Parties to BP under the BP Swap Documents, whether
direct, indirect, fixed, contingent, liquidated, unliquidated, joint, several or joint and several, together with all costs, expenses
and attorneys’ fees incurred in the enforcement or collection thereof, and interest thereon after the commencement of any
proceedings under any Debtor Relief Laws.

 

Business
Day means any day other than a Saturday, Sunday or other day in which banking institutions in New York, New York are authorized
or obligated by law or executive order to close.

 

Collateral
means, all personal, real and mixed property of Note Parties and Rights thereto described in and subject to a Lien under
the Security Instruments and the Rights under letters of credit, if any, posted as collateral support for the BP Swap Obligations.

 

Collateral
Agent has the meaning assigned to such term in Section 3 below.

 

Creditors
means the Holder Parties and BP, collectively.

 

Crude
Oil means all crude oil and condensate.

 

Debtor
Relief Law means any applicable liquidation, conservatorship, bankruptcy, insolvency, rearrangement, moratorium, reorganization,
or similar debtor relief laws affecting the rights of creditors generally from time to time in effect.

 

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
Note Parties or any of its properties.

 

Holder
Parties means Administrative Agent, Holders and any other holder of the Note Obligations from time to time.

 

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Hydrocarbons
means all Crude Oil, Natural Gas, distillate and sulphur.

 

Lien
has the meaning assigned to such term in the Note Purchase Agreement.

 

Natural
Gas means all natural gas, and any natural gas liquids and all products recovered in the processing of natural gas (other
than condensate) including, without limitation, natural gasoline, casinghead gas, iso-butane, normal butane, propane and ethane
(including such methane allowable in commercial ethane) produced from or attributable to the Collateral.

 

Note
Documents means the “Note Documents” as defined in the Note Purchase Agreement.

 

Note
Obligations means the “Obligations” as defined in the Note Purchase Agreement.

 

Note
Parties is defined in the preamble.

 

Note
Purchase Agreement is defined in the recitals to this Agreement.

 

Person
means any individual, general partnership, limited partnership, corporation, limited liability company, business trust,
joint stock company, trust, unincorporated association, joint venture, syndicate, Governmental Authority or other entity or organization.

 

Principal
Agreements means the Note Documents and the BP Swap Documents, collectively.

 

Proceeds
includes any and all proceeds from any sale, exchange, destruction, condemnation, foreclosure, liquidation or other disposition
of any of the Collateral, including, but not limited to, under any Debtor Relief Law; provided, however, that such term will not
include sales of any Hydrocarbons produced from or attributable to the Collateral in the ordinary course of the Note Parties’
business or sales of other Collateral permitted under the Note Documents.

 

Ratably
or Ratable means, with respect to any amount to be allocated between the Holder Parties and BP as of any
date of determination, the allocation of a portion of such amount to (a) the Holder Parties such that the ratio that the amount
allocated to the Holder Parties bears to the total amount to be so allocated equals the ratio of the Note Obligations to the Total
Obligations and (b) BP such that the ratio that the amount allocated to BP bears to the total amount to be so allocated equals
the ratio of the BP Swap Obligations to the Total Obligations.

 

Requisite
Holders means the “Requisite Holders” as defined in the Note Purchase Agreement.

 

Right
or Rights means rights, remedies, powers, privileges and benefits.

 

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Security
Instruments means the “Collateral Documents” as defined in the Note Purchase Agreement and includes, without
limitation, those documents listed in Schedule 1 attached hereto and incorporated herein by this reference.

 

Swap
Agreement has the meaning assigned such term in the Note Purchase Agreement.

 

Total
Obligations means, as of any date of determination, an amount equal to the sum of (a) the Note Obligations plus
(b) the BP Swap Obligations.

 

Triggering
Event shall mean any of the following:

 

(i)
The Collateral Agent shall have received from BP written notice that (A) either an event of default or a termination event has
occurred and is continuing under one or more of the BP Swap Documents, (B) an early termination date has been designated as a
result thereof, (C) specifies the sum (which may be an estimate pending actual determination of such amounts) of all unpaid amounts
and settlement payments then due as the result of the designation of such early termination date and the amount of interest and
other amounts then due and payable by Issuer in respect thereof, and (D) the amount set forth in clause (C) has not been paid
in full or discharged to the satisfaction of BP; or

 

(ii)
BP or Issuer shall have received from the Administrative Agent (acting at the direction of the Requisite Holders) written notice
that (A) an Event of Default (as defined in the Note Purchase Agreement) has occurred and is continuing and (B) the unpaid principal
amount of the Notes (as defined in the Note Purchase Agreement) under the Note Purchase Agreement and all interest accrued and
unpaid thereon have been declared to be then due and payable.

 

UCC
means the Uniform Commercial Code as adopted and in effect in New York from time to time.

 

2.
Obligations and Liens Pari Passu.

 

(a)
Subject to the other terms and conditions of this Agreement, the Note Obligations and the BP Swap Obligations shall be pari
passu, and the Note Obligations and BP Swap Obligations shall be secured, Ratably, by the Liens granted to or for the benefit
of Collateral Agent under the Security Instruments (after giving effect to any applicable amendments to any of the Security Instruments
as provided for below in this Section 2).

 

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(b)
Contemporaneously with the execution of this Agreement, Note Parties, the Administrative Agent and Collateral Agent, as applicable,
shall execute, if necessary: (i) an amendment to the Note Purchase Agreement which (A) authorizes Note Parties to grant a First
Priority Lien on its assets to approved hedge counterparties, including, without limitation, BP, which are counterparties to Swap
Agreements and have entered into one or more intercreditor agreements in form and substance acceptable to the Requisite Holders
and specifies that any such Lien shall be a Permitted Lien (as defined in the Note Purchase Agreement), and (B) acknowledges and
agrees that any First Priority Lien granted to Collateral Agent by Note Parties to secure the Note Obligations, shall be held
by Collateral Agent for the Ratable benefit of any such approved hedge counterparties, including, without limitation, BP, to secure
Note Parties’ obligations under such Swap Agreements on a pari passu basis with the Note Obligations; and (ii) Security
Instruments or amendments to the Security Instruments in effect at the time of execution of this Agreement causing any Lien granted
to or for the benefit of Collateral Agent under such Security Instruments (after giving effect to any such amendments) to secure,
Ratably, the Note Obligations and the BP Swap Obligations for the benefit of the Holder Parties and BP.

 

(c)
BP agrees that, without the prior written consent of the Administrative Agent (acting at the explicit written direction of the
Requisite Holders), it will not seek or accept credit support (excluding any netting or setoff rights, which are acknowledged
to be for the sole benefit of BP, notwithstanding Section 4 hereof) for any BP Swap Obligation other than its Rights under the
Security Instruments. Notwithstanding the preceding sentence, to the extent that BP, with or without the written consent of Administrative
Agent (acting at the explicit written direction of the Requisite Holders), hereafter obtains any Lien on assets of Issuer to secure
all or any portion of the BP Swap Obligations, the Lien held by BP on such assets shall secure both the Note Obligations and the
BP Swap Obligations on a pari passu basis and shall be pari passu with any Lien now or hereafter existing in favor
of or for the benefit of Administrative Agent, Collateral Agent or BP to secure all or any part of the Note Obligations or BP
Swap Obligations, notwithstanding (i) the date, manner or order of any grant, attachment or perfection of any such Lien, (ii)
any provision of the UCC, other applicable law, the Note Documents or the BP Swap Documents or (iii) any manner of enforcement
of any Lien or other Rights. Similarly, Administrative Agent (acting at the explicit written direction of the Requisite Holders)
agrees that, without the prior written consent of BP, it will not seek or accept credit support for any Note Obligation other
than its Rights under the Security Instruments. Notwithstanding the preceding sentence, to the extent that Administrative Agent
(acting at the explicit written direction of the Requisite Holders), with or without the written consent of BP, hereafter obtains
any Lien on assets of Issuer to secure all or any portion of the Note Obligations, the Lien held by Administrative Agent on such
assets shall secure both the Note Obligations and the BP Swap Obligations on a pari passu basis and shall be pari passu
with any Lien now or hereafter existing in favor of or for the benefit of Administrative Agent, Collateral Agent or BP to
secure all or any part of the Note Obligations or BP Swap Obligations, notwithstanding (i) the date, manner or order of any grant,
attachment or perfection of any such Lien, (ii) any provision of the UCC, other applicable law, the Note Documents or the BP Swap
Documents or (iii) any manner of enforcement of any Lien or other Rights.

 

(d)
The Holder Parties and Issuer agree that, upon execution of the documents required by Section 2(b) above (or, in the alternative,
if execution of documents pursuant to Section 2(b) above is not required, upon execution of this Agreement), (i) any Lien under
any Security Instrument securing, Ratably, the Note Obligations and the BP Swap Obligations shall be a Permitted Lien (as defined
in the Note Purchase Agreement) and (ii) BP will become a beneficiary of any Lien granted to Collateral Agent pursuant to any
Security Instrument.

 

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(e)
Subject to limitations on Swap Agreements provided in the Note Purchase Agreement, the Requisite Holders consent to Issuer entering
into the BP Swap Documents and agree that each of the BP Swap Documents is a Swap Agreement. BP and the Holder Parties acknowledge
and agree that, upon execution of the documents required by Section 2(b) above (or, in the alternative, if execution of documents
pursuant to Section 2(b) above is not required, upon execution of this Agreement), BP will become a Secured Party (as defined
in the Note Purchase Agreement) under the Security Instruments. All parties hereto agree that, notwithstanding any provision of
this Agreement to the contrary, BP is entitled to exercise, solely for its benefit, any right of multiple transaction netting
or setoff it may hold with respect to any of its BP Swap Obligations.

 

(f)
The amounts payable by Issuer to any Creditor at any time under any of the Principal Agreements to which such Creditor is a party
shall be separate and independent debts, and each Creditor shall be entitled to enforce any right arising out of the applicable
Principal Agreement to which it is a party, subject to the terms thereof and of this Agreement. Each Creditor hereby agrees that
no Creditor (whether as the mortgagee or the Secured Party, as the case may be, under the Security Instruments) shall have any
right individually to realize upon any Liens granted under the Security Instruments, it being understood and agreed that such
remedies may be exercised only by Collateral Agent (as the mortgagee or the Secured Party, as the case may be, under the Security
Instruments) for the Ratable benefit of the Creditors.

 

(g)
Each Creditor agrees: (i) to deliver to each of the other Creditors and the Collateral Agent, at the same time it makes delivery
to Issuer, a copy of any notice of default, notice of intent to accelerate or notice of acceleration with respect to any of the
Note Obligations or the BP Swap Obligations, as applicable, subject to this Agreement and (ii) to deliver to each of the other
Creditors and the Collateral Agent, at the same time it makes delivery to any other Person, a copy of any notice of the commencement
of any judicial proceeding and a copy of any other notice with respect to the exercise of remedies with respect to any of the
Note Obligations or the BP Swap Obligations, as applicable, subject to this Agreement.

 

(h)
Each of BP, the Collateral Agent and the Administrative Agent (acting at the written direction of the Requisite Holders) hereby
agrees that it shall endeavor to furnish Issuer with a copy of any notice provided or received, as applicable, by it which notice
would, pursuant to clause (i) or (ii) of the definition of Triggering Event in Section 1 above, establish a Triggering Event.
Each of Issuer and Administrative Agent (acting at the written direction of the Requisite Holders) hereby agrees that it shall
endeavor to furnish BP with a copy of any notice received or provided, as applicable, by it which notice would, pursuant to clause
(ii) of the definition of Triggering Event in Section 1 above, establish a Triggering Event. Each of BP and Administrative Agent
(acting at the written direction of the Requisite Holders) hereby agrees that it shall endeavor to furnish Issuer with a copy
of any notice received or provided, as applicable, by it which notice would, pursuant to clause (ii) of the definition of Triggering
Event in Section 1 above, establish a Triggering Event. Any failure by a party hereto to furnish a copy under this Section 2(h)
shall not limit or affect the rights and obligations hereunder.

 

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(i)
No amendment to any of the Security Instruments may be effected without the prior written consent of BP (which consent shall not
be withheld or delayed unreasonably), if the effect of such amendment would be to (i) cause the Security Instruments to secure
obligations other than the Note Obligations and BP Swap Obligations, (ii) change the priority of or subordinate the Liens created
thereby, (iii) materially modify any material remedy provided for therein if adverse to BP, (iv) materially reduce or diminish
the benefits of the security provided for in the Security Instruments, or (v) otherwise have any material detrimental effect on
BP’s rights and obligations under this Agreement. Any such amendment made without such consent shall be null and void. Collateral
Agent shall have the right from time to time to release Collateral from the Liens created by the Security Instruments; provided,
that the written consent of BP shall be required for any release of Collateral during any rolling 12-month period, except (i)
Collateral destroyed, lost, worn out, damaged or having only salvage value or no longer used or useful in the business in which
it is used, or that has become obsolete, depleted or uneconomic, (ii) inventory (including without limitation, Hydrocarbons) sold
in the ordinary course of a Note Party’s business, and (iii) other Collateral that does not, as reasonably valued by the
Requisite Holders and when aggregated with other Collateral released in the most recent twelve-month period pursuant to this clause
(iii), have a value in excess of 10% of the aggregate value of the Collateral (as reasonably determined by Collateral Agent);
provided that proceeds of a sale of Collateral occurring while no Triggering Event has occurred (or would result therefrom) shall
be applied as required by the Note Documents. The Collateral Agent shall, as soon as reasonably practicable after any release
of the Collateral permitted by this clause, notify BP of such release.

 

(j)
No amendment to the Note Purchase Agreement may be effected without the prior written consent of BP if the effect of such amendment
would adversely affect the priority of any Lien under any Security Instrument, would change the definition of “Collateral
Documents” (as defined in the Note Purchase Agreement), would otherwise have any material detrimental effect on BP’s
rights and obligations under this Agreement or would diminish materially the benefits of the security provided for in the Security
Instruments. Any such amendment executed without such consent shall be null and void. Issuer hereby agrees to provide written
notice to BP (which notice may be revoked by Issuer) no less than seven days prior to the earliest to occur of (i) the date of
(a) signing or (b) closing of any replacement financing or any refinancing of the Note Purchase Agreement, or (ii) the date of
any payment in full and retirement of the Note Purchase Agreement, including with such notice a copy of the proposed replacement
financing, refinancing or retirement of the Note Purchase Agreement, as applicable.

 

(k)
Issuer hereby agrees that BP may provide to the Administrative Agent (with copies to the Holders), and BP hereby agrees to provide
to the Administrative Agent (with copies to the Holders), within a commercially reasonable time following receipt of a written
request therefor from the Administrative Agent (acting at the written direction of the Holders) or any Holder, (i) a report of
the marked-to-market positions of any or all of the transactions in effect from time to time under the BP Swap Documents, and
(ii) a copy of any trade confirmation pursuant to the BP ISDA not previously provided to the Holders.

 

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(l)
BP hereby acknowledges and consents to Note Parties’ grants of security interests to Collateral Agent in all rights of Note
Parties under the BP Swap Documents, including all payments owing to Note Parties thereunder, notwithstanding any restrictions
on assignment in any BP Swap Document.

 

(m)
The Administrative Agent, on behalf of itself and the Holders: (i) acknowledges and agrees that BP is a Permitted Swap Provider
(as defined in the Guarantee and Collateral Agreement); (ii) acknowledges and agrees that this Agreement shall be a Swap Intercreditor
Agreement (as defined in the Note Purchase Agreement) that is in form and substances reasonably satisfactory to, and approved
by, the Requisite Holders; and (iii) each BP Swap Document shall be a Secured Swap Agreement (as defined in the Guarantee and
Collateral Agreement).

 

3.
Appointment of Apollo as Collateral Agent. The Holders and BP each hereby appoint Apollo to (a) act as its agent (in such
capacity, “Collateral Agent”), in its name and on its behalf, in and under the Security Instruments,
(b) hold the Liens on the Collateral, with power of sale, in its name for the benefit and security of the Holder Parties and BP
and for enforcement and payment of the Note Obligations and the BP Swap Obligations, respectively and (c) take such action on
behalf of the Holder Parties and BP under the terms and provisions of the Security Instruments and to exercise such rights and
remedies under the Security Instruments as are specifically delegated to or required of Apollo, in its capacity as Collateral
Agent, under the terms and provisions of this Agreement. Collateral Agent shall, within a commercially reasonable time, distribute
to each of the Holder Parties and BP its Ratable share of all Proceeds in accordance with Section 5 below.

 

4.
Collateral Agent’s Authority. (a) Upon the occurrence and during the continuance of any Triggering Event, Collateral
Agent shall, upon the request of the Requisite Holders or BP, and subject to this Agreement and the terms of the Note Documents,
take any and all actions provided for in the Security Instruments relating to the pursuit of remedies, including, but not limited
to, the foreclosure of Liens or other disposition of the Collateral; provided, however, that neither the Holders
nor BP shall have the right to require Collateral Agent to realize on any Liens granted pursuant to the Security Instruments until
the 120th day after a Triggering Event of the type referred to in clause (i) of the definition of Triggering Event shall have
occurred and provided further that such Triggering Event shall be continuing on such date. Notwithstanding the foregoing, if any
event of default occurs (x) under Section 5(a)(vii) of the BP ISDA, (y) under any Principal Agreement as a result of any proceeding
under any Debtor Relief Law or Issuer admits in writing its inability to meet its debts to any Creditor or (z) as a result of
the Note Obligations being accelerated and Collateral Agent is actively attempting to collect the Note Obligations through the
realization of the Collateral, BP may request Collateral Agent to realize on the Liens granted pursuant to the Security Instruments
immediately.

 

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(b)
If the 120-day standstill period provided for in Section 4(a) above has commenced with respect to a Triggering Event, then for
so long as such Triggering Event, as applicable, is continuing, any payments received by the Administrative Agent, Collateral
Agent or the Holders under the Note Purchase Agreement and any payments received by BP under the BP ISDA will be held for the
Ratable benefit of the Creditors until such time that such Triggering Event is no longer continuing or that Collateral Agent is
exercising remedies under the Security Instruments (including, but not limited to, the foreclosure of Liens) and distributing
the Proceeds from such remedies Ratably to the Creditors under Section 5(b) of this Agreement (“Blocking Period”).
All funds received in any deposit account of Issuer subject to an account control agreement during such Blocking Period for the
benefit of the Administrative Agent and the Holders shall be maintained in such deposit account and held for the Ratable benefit
of the Creditors until such time as the 120-day standstill period shall have expired. If a Triggering Event is otherwise cured
prior to the end of such 120-day standstill period, such funds being held in such deposit account will be disbursed to Collateral
Agent for the benefit of the Holders. If such Triggering Event is not cured prior to the expiration of the 120-day standstill
period, then such funds will be disbursed in accordance with Section 5(b) of this Agreement.

 

(c)
Collateral Agent shall not be obligated to follow any instructions of BP or the Holder Parties if: (i) such instructions conflict
with the provisions of this Agreement, any Principal Agreement, any Security Instrument or any applicable law, (ii) Collateral
Agent determines, in its sole and absolute discretion, that such instructions are ambiguous, inconsistent, in conflict with previously
received instructions or otherwise insufficient to direct the actions of Collateral Agent, provided that Collateral Agent explains
the grounds for a refusal based on a deficiency of instructions, or (iii) Collateral Agent has not been adequately indemnified
to its satisfaction. Nothing in this Section 4 shall impair the right of Collateral Agent in its discretion to take any action
authorized under this Agreement or the Security Instruments, to the extent that the consent of any Creditors is not required or
to the extent such action is not prohibited by the terms hereof or thereof, which it deems proper and consistent with the instructions
given by Creditors as provided for herein or otherwise in the best interest of Creditors. In the absence of written instructions
from BP or the Holder Parties for any particular matter, Collateral Agent shall have no duty to take or refrain from taking any
action unless such action or inaction is explicitly required by the terms of this Agreement, the Security Instruments or applicable
law. Collateral Agent shall have no duty with respect to a Triggering Event unless it first receives notice that a Triggering
Event has occurred.

  

(d)
If a Triggering Event of the type referred to in clause (ii) of the definition of Triggering Event shall have occurred and is
continuing, at the request of the Administrative Agent (acting at the written direction of the Requisite Holders), BP shall make
payments of any amounts owing from BP to Issuer under the BP Swap Documents to Collateral Agent to be held until such time that
either (i) such Triggering Event is no longer continuing, in which case such payments shall be released immediately to Issuer,
or (ii) Collateral Agent has commenced exercising remedies under the Security Instruments, in which case such payments shall be
promptly distributed Ratably to the Creditors pursuant to Section 5(b) below. Unless and until BP is notified in writing by Administrative
Agent (acting at the written direction of the Requisite Holders) to pay to Collateral Agent amounts owing by BP to Issuer under
the BP Swap Documents, BP may continue to make such payments to Issuer; provided, Issuer releases BP from any and all liability
resulting from BP making any such payments to Collateral Agent after receipt of such notice from Administrative Agent (acting
at the written direction of the Requisite Holders) and Issuer hereby consents to such payment to Collateral Agent but such consent
shall not be deemed to release any claims any Note Party may have against the Administrative Agent, the Collateral Agent or the
Holders.

 

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5.
Proceeds.

 

(a)
The Creditors hereby agree among themselves that (i) prior to the occurrence and continuance of a Triggering Event (and subject
to Section 4(b)), each Creditor shall be entitled to receive and retain for its own account, and shall never be required to disgorge
to the Collateral Agent or any other Creditor or acquire direct or participating interests in the Note Obligations or the BP Swap
Obligations owing to such Creditor, scheduled payments or voluntary prepayments, payments of principal, interest, fees, settlement
payments and any other payments in respect of the Principal Agreements, all in compliance with the terms thereof, and (ii) after
the occurrence and during the continuance of a Triggering Event (and during the Blocking Period), all such amounts shall be treated
as if constituting Proceeds and shall be shared by the Creditors Ratably and in accordance with Section 5(b) below.

 

(b)
All Proceeds received by BP, the Holder Parties or the Collateral Agent, shall be applied in accordance with this Section 5(b)
and Section 5(c) below. To the extent either the Holder Parties or BP ever receives any portion of such Proceeds in excess of
its Ratable share (or to the extent the Collateral Agent receives reimbursement in excess of expenses actually incurred), the
party receiving those excess Proceeds agrees to make promptly all necessary transfers to the other so as to give full effect to
this Section 5(b).

 

(c)
If a Triggering Event shall have occurred and is continuing, subject to the applicability of the Blocking Period, all Proceeds
received by Collateral Agent shall be applied in the following order:

 

(i)
First, to reimburse Collateral Agent for expenses in accordance with Section 6 below;

 

(ii)
Second, Ratably to the Holder Parties (to be applied in accordance with the Note Purchase Agreement) and BP, respectively,
in satisfaction of the Note Obligations and the BP Swap Obligations until the Total Obligations are satisfied, respectively; and

 

(iii)
Third, to the extent that any Proceeds remain after the full and indefeasible payment of all of the amounts described
in the preceding paragraphs, to Issuer.

 

6.
Expenses. The Holders and BP shall each bear its Ratable share of any reasonable expenses incurred by Collateral Agent
in taking action on behalf of the Holder Parties and BP in connection with its investigation, evaluation or enforcement of any
Rights under the Security Instruments, but only to the extent Collateral Agent does not receive reimbursement for such expenses
from the Note Parties within a reasonable time after such expenses are incurred; provided that, to the extent that either the
Holders or BP reimburse the Collateral Agent for such expenses, the Holders and BP will be entitled to receive its Ratable share
of any reimbursement subsequently received by Collateral Agent from the Note Parties.

 

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7.
Limitation of Liability - Collateral Agent. Neither Collateral Agent nor any of its representatives shall be liable for
any action taken or omitted to be taken by it or them hereunder or under the Security Instruments in good faith and reasonably
believed by it or them to be within the discretion or power conferred upon it or them by this Agreement and the Security Instruments
or be responsible for the consequences of any error of judgment, except to the extent arising solely from its gross negligence
or willful misconduct. Collateral Agent shall not be responsible in any manner to any other party for the effectiveness, enforceability,
genuineness, validity or the due execution of the Security Instruments or for any representation, warranty, document, certificate,
report or statement made in or in connection with the Security Instruments or be under any obligation to any other party to ascertain
or inquire as to the performance or observation of any of the terms, covenants or conditions of any of the Note Documents or the
BP Swap Documents on the part of Issuer. Notwithstanding anything else provided, Collateral Agent shall have no obligation or
liability to the Holder Parties, BP or to any other Person, (i) with respect to the perfection, recording, re-recording, filing,
refiling, monitoring, or maintaining in effect of any Security Instruments or other instruments, documents, mortgages, deeds of
trust, financing statements or continuation statements or (ii) with respect to the effectiveness, enforceability, genuineness,
validity or the due execution of the Security Instruments or for any representation, warranty, document, certificate, report or
statement made in or in connection with the Security Instruments. Each of the Holders
and BP agrees to Ratably indemnify Collateral Agent and hold it harmless from and against any and all claims, liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, reasonable expenses and/or reasonable disbursements of any kind
or nature whatsoever which may be imposed on, asserted against or incurred by Collateral Agent in any way relating to or arising
out of the Security Instruments or any action taken or omitted by Collateral Agent under this Agreement or the Security Instruments,
except to the extent any of the same results solely from the gross negligence or willful misconduct of Collateral Agent.
Collateral Agent shall give prompt written notice to the indemnifying party or parties (provided that later notice shall not relieve
indemnifying party(ies) of its liability and obligations under this Section 7 unless and to the extent the indemnifying party(ies)
is/are prejudiced by such notice not being promptly provided) after any applicable claim is initiated against Collateral Agent
and allow the indemnifying party(ies) to have sole control and authority of the defense and settlement of the claim; provided
that Collateral Agent shall approve any settlement of a claim to which Collateral Agent is an actual party or could reasonably
be expected to be a potential party and in respect of which indemnity may be sought hereunder, so long as such settlement (a)
includes an unconditional release of Collateral Agent from all liability in any way related to or arising out of such claim and
(b) does not impose any actual or potential liability upon, or contain any factual or legal admission by or with respect to, Collateral
Agent. Collateral Agent shall reasonably cooperate with the indemnifying party(ies) in the defense of such claims, including providing
reasonable assistance and information at the indemnifying party’s(ies’) expense.

 

    	- 11 -

    	 

    

 

8.
Limitation of Liability - Holder Parties and BP. Neither BP nor any Holder (nor any individual partner, member, director,
employee or agent of either BP or the Holders) shall incur any liability to the other except for liabilities arising from its
gross negligence or willful misconduct. Neither BP nor any of the Holders (nor any of their respective individual partners, members,
directors, employees or agents) shall incur any liability to Issuer or any other Person except for liabilities arising from such
party’s gross negligence or willful misconduct.

 

9.
Term. Subject to Section 21 below, this Agreement shall terminate upon (i) the full and indefeasible payment of the Note
Obligations and the BP Swap Obligations and (ii) the execution and delivery of a written termination notice signed by each of
the parties.

 

10.
Removal and Resignation of Collateral Agent.

 

(a)
Should all of the Note Obligations be fully and indefeasibly paid or satisfied at a point in time when any BP Swap Obligations
remain outstanding, Apollo may resign as Collateral Agent hereunder by providing to BP and Issuer written notice of such resignation
no less than 30 days prior to the effective date of such resignation set forth in such written notice. Upon such resignation by
Apollo, Apollo agrees to execute and deliver assignments, in form and substance mutually satisfactory to the Holders and BP, to
a successor Collateral Agent designated by BP and approved by Issuer (which approval shall not be withheld or delayed unreasonably)
of the rights of the mortgagee or the Secured Party, as the case may be, under the Security Instruments. Such assignments shall
be prepared at the expense of Issuer. Issuer hereby consents to such assignments. Following such resignation by Apollo and execution
and delivery of such assignments, Apollo shall have no further duties, responsibilities or liabilities under this Agreement, but
shall remain entitled to the benefit of the indemnification of the Collateral Agent provided in this Agreement and to reimbursement,
in accordance with applicable provisions of this Agreement, of expenses incurred in the discharge of the duties of the Collateral
Agent prior to the effective date of such resignation.

 

(b)
If Collateral Agent fails to take any material action under the Security Instruments to protect or realize upon the Collateral
following a Triggering Event as required under Section 4(a) above within a reasonable time after being requested to do so in writing
by BP or the Requisite Holders, or if Collateral Agent materially breaches its obligations to diligently pursue such action as
required under this Agreement, then BP and/or the Requisite Holders may petition a court of competent jurisdiction to replace
Collateral Agent with another Person. Such replacement Collateral Agent may take such other actions as it may deem necessary or
advisable to secure and enforce the Security Instruments. In the event that a court of competent jurisdiction shall decide to
replace Collateral Agent, any successor Collateral Agent shall be required to apply all proceeds of any realization upon the Collateral
in accordance with Section 5(c) above, provided that any reasonable documented expenses incurred in connection with the replacement
of Collateral Agent may be paid to the Person incurring such expenses from the proceeds of the Collateral pursuant to Section
5(c)(i) above.

 

    	- 12 -

    	 

    

 

11.
Survival of Rights. All of the respective rights and interests of the Collateral Agent, Holder Parties and BP under this
Agreement (and the respective obligations and agreements of BP, the Holder Parties and the Collateral Agent under this Agreement),
shall remain in full force and effect regardless of:

 

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

 

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

 

12.
Representations and Warranties. Each of Holder Parties, BP, the Note Parties and Collateral Agent represents and warrants
to the other parties hereto that:

 

(a)
neither the execution and delivery of this Agreement nor its performance of or compliance with the terms and provisions hereof
will conflict with, or result in a breach of the terms, conditions or provisions of, or constitute a default under, any other
agreement to which it is now subject, including, but not limited to, any of the Note Documents or the BP Swap Documents;

 

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

 

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

 

13.
Further Assurances. Each of the Holder Parties, BP, each Note Party and Collateral Agent covenants that, as long as this Agreement
remains in effect, it will (with respect to the Administrative Agent, at the sole cost and expense of the Issuer) execute and
deliver any and all other documents or instruments reasonably requested by the other to give effect to the terms and conditions
of this Agreement.

 

14.
Assignment; Agreement Binding on Successors and Assigns. As long as this Agreement remains in effect, neither BP nor any
Holder will sell, assign or otherwise transfer all or any part of the Note Obligations or the BP Swap Obligations, as the case
may be, unless such sale, assignment or transfer is made expressly subject to the terms and conditions of this Agreement. This
Agreement shall inure to the benefit of, and shall be binding upon and enforceable against, the Note Parties, the Holder Parties,
BP and Collateral Agent and their respective successors and permitted assigns.

 

15.
Notice. Unless otherwise provided, any consent, request, notice, or other communication under or in connection with this
Agreement must be in writing to be effective and shall be deemed to have been given (a) if by mail, on the third Business Day
after it is enclosed in an envelope and properly addressed, stamped, sealed, certified return receipt requested, and deposited
in the appropriate official postal service, or (b) if by courier, electronic transmissions, or facsimile transmission, when actually
delivered. Until changed by a subsequent notice delivered in accordance with this Section 15, notices for each party are to be
directed to:

 

For
delivery to BP:

 

BP
Energy Company

Attn:
BPEC Contracts Dept.

201
Helios Way

Houston,
Texas 77079

Telephone:
(713) 323-2000

Facsimile:
(713) 323-0203

 

    	- 13 -

    	 

    

 

For
delivery to Issuer:

 

Osage
Exploration and Development, Inc.

2445
Fifth Avenue, Suite 310

San
Diego, CA 92101

Attn:
Kim Bradford

Tel:
(619) 677-3956

Fax:
(619) 677-3964

Email:
KBradford@osageexploration.com

 

For
delivery to Collateral Agent and Administrative Agent:

 

Apollo
Investment Corporation

c.o
Apollo Management, L.P.

9
W 57TH Street

New
York, NY 10019

Attn:
Joseph Glatt

 

16.
Amendments. No amendment, modification, termination or waiver of this Agreement shall in any event be effective without
the written concurrence of the Note Parties, Collateral Agent, each Holder Party and BP.

 

17.
Governing Law. This Agreement shall be governed by and construed in accordance the laws of the State of New York.

 

18.
Invalid Provisions. If any part of this Agreement is for any reason found to be unenforceable, all other portions nevertheless
remain enforceable. However, if the provision held to be unenforceable is a material part of the Agreement, such unenforceable
provision may, to the extent permitted by law, be replaced by a clause or provision judicially construed and interpreted to be
as similar in substance and content to the original terms of such provision as the context would reasonably allow, so that such
clause or provision would thereafter be enforceable.

 

19.
Multiple Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signatories
had signed the same document and will be effective upon the execution of one or more counterparts hereof by each of the parties
hereto. In this regard, each of the parties hereto acknowledges that a counterpart of this Agreement containing a set of counterpart
execution pages reflecting the execution of each party hereto shall be sufficient to reflect the execution of this Agreement by
each party hereto. All counterparts will, taken together, constitute one and the same instrument.

 

    	- 14 -

    	 

    

 

20.
Jury Waiver. Each of the Holder Parties, BP, Note Parties and Collateral Agent
hereby voluntarily, knowingly, irrevocably and unconditionally waives any right to have a jury participate in resolving any dispute
(whether based upon contract, tort or otherwise) among the Holder Parties, BP, Note Parties and Collateral Agent (or any of them)
arising out of or in any way related to this Agreement.

 

21.
Reinstatement; Termination. If at any time any payment of the Note Obligations or the BP Swap Obligations is rescinded
or must be restored or returned upon the insolvency, bankruptcy or reorganization of the Note Parties or otherwise, the obligations
of the Note Parties, the Holder Parties, BP and Collateral Agent under this Agreement, with respect to that payment, shall be
reinstated as though the payment had been due but not made at that time.

 

22.
Controlling Agreement. Notwithstanding any provision to the contrary in any of the Note Documents or the BP Swap Documents,
to the extent the terms of this Agreement directly conflict with a provision in either the Note Documents or the BP Swap Documents,
the terms of this Agreement shall control.

 

23.
Integration. This Agreement and all documents and instruments referenced herein
represent the final agreement among the Holder Parties, BP, Note Parties and Collateral Agent with respect to the subject matter
hereof and thereof and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements by the parties.
There are no unwritten oral agreements among the parties.

 

24.
Direction of Requisite Holders; Liability of the Administrative Agent.

 

(a)
The undersigned Holders, constituting Requisite Holders, hereby authorize and direct the Administrative Agent to execute this
Agreement and perform its obligations hereunder.

 

(b)
The parties hereto agree that the Administrative Agent shall be afforded all of the rights, privileges, protections, indemnities
and immunities afforded to the Administrative Agent under the Note Purchase Agreement in connection with its execution of this
Agreement and the performance of its respective duties hereunder.

 

(Signature
Pages Follow)

 

    	- 15 -

    	 

    

 

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

 

	 	BP:
	 	 
	 	BP
    ENERGY COMPANY
	 	 	 
		By:	/s/
    Ryan S. McGeachie
	 	Name:	Ryan
    S. McGeachie
	 	Title:	Managing
    Director US Consumers

 

Signature
Page to

Intercreditor
Agreement

 

    	 

    	 

    

 

	 	NOTE
    PARTIES:
	 	 
	 	OSAGE
    EXPLORATION AND DEVELOPMENT, INC.
	 	 	 
	 	By:	/s/
    Norman Dowling
	 	Name:	Norman
    Dowling
	 	Title:	Chief
    Financial Officer

 

Signature
Page to

Intercreditor
Agreement

 

    	 

    	 

    

 

	 	ADMINISTRATIVE
    AGENT AND HOLDER: 
	 	 
	 	APOLLO
    INVESTMENT CORPORATION
	 	 	 
	 	By:	Apollo
    Investment Management, L.P., its Advisor
	 	By:	ACC
    Management, LLC, its General Partner
	 	 	 
	 	By:	/s/
    Ted Goldthorpe
	 	Name:	Ted
    Goldthorpe
	 	Title:	President
	 	 	 
	 	COLLATERAL
    AGENT:
	 	 
	 	APOLLO
    INVESTMENT CORPORATION
	 	 	 
	 	By:	Apollo
    Investment Management, L.P., its Advisor
	 	By:	ACC
    Management, LLC, its General Partner
	 	 	 
	 	By:	/s/
    Ted Goldthorpe
	 	Name:	Ted
    Goldthorpe
	 	Title:	President

 

Signature
Page to

Intercreditor
Agreement

 

    	 

    	 

    

 

SCHEDULE
1

 

Listing
of Certain Security Instruments

 

 

	1.	Guarantee
    and Collateral Agreement dated as of April 27, 2012, by Osage Exploration and Development, Inc., and each of the Grantors
    party thereto in favor of Apollo Investment Corporation, as Collateral Agent (“Guarantee and Collateral Agreement”).
	 	 
	2.	Mortgage,
    Fixture Filing, Assignment of As-Extracted Collateral, Security Agreement And Financing Statement dated as of April 27, 2012,
    by Osage Exploration and Development, Inc., in favor of Apollo Investment Corporation as Mortgagee and Collateral Agent (“Mortgage”).

 

Intercreditor
AgreementGUARANTY
AGREEMENT

 

This Guaranty Agreement (the “Guaranty”)
is made by BP CORPORATION NORTH AMERICA INC.
(“Guarantor”), an Indiana Corporation, in favor of
Osage Exploration and Development, Inc. (individually and collectively, “Counterparty”).

 

WHEREAS, Counterparty is or may
become party to commodity-related physical and financial transactions and agreements (collectively, whether one or more, the “Agreement”
or “Agreements”) with any one or more of the following indirect subsidiaries of Guarantor: BP
Energy Company (individually and collectively, the “Company”); and

 

WHEREAS, the Guarantor is the
indirect parent of Company, and will receive substantial and direct benefits from the transactions contemplated by the Agreement
and has agreed to enter into this Guaranty to provide assurance for the payment obligations of Company in connection with the
Agreement and to induce the Counterparty to enter into the Agreement.

 

NOW, THEREFORE, in consideration
of good and valuable consideration, the adequacy, receipt and sufficiency of which are hereby acknowledged, the Guarantor hereby
agrees as follows:

 

	1.	 	Guaranty.
    The Guarantor hereby unconditionally, irrevocably and absolutely guarantees the punctual
    payment when due (subject to written demand in accordance with Paragraph 6 below) of Company’s payment obligations arising
    under any Agreement, as such Agreement may be amended or modified by agreement between Company and the Counterparty from time
    to time (collectively, the “Guaranteed Obligations”); provided, however, that the total liability of the Guarantor
    hereunder, regardless of any amendment or modification to any Agreement, is limited to the lesser of (a) the Guaranteed Obligations
    under all Agreements or (b) US $25,000,000, plus all interest, reasonable attorneys’ fees, and/or costs of collection,
    if any, required by such Agreement to be paid by Company in the collection of Guaranteed Obligations. In addition, subject
    to the limitations above, Guarantor shall reimburse Counterparty for all sums paid to Counterparty by Company with respect
    to such Guaranteed Obligations which Counterparty is subsequently required to return to Company or a representative of Company’s
    creditors as a result of Company’s bankruptcy, insolvency, reorganization, liquidation, receivership, or similar proceeding.
    The Guarantor’s obligations and liability under this Guaranty shall be limited to payment obligations only and the Guarantor
    shall have no obligation to perform under any Agreement, including, without limitation, to sell, deliver, supply or transport
    gas, electricity or any other commodity.
	 	 	 
	 	 	If
    all or a part of any payment made by Guarantor to Counterparty hereunder is later determined to have been improper because
    such amount was not actually owed by Company to Counterparty under the Agreement or such payment was otherwise unjustified,
    Counterparty shall repay such amount to Guarantor within ten (10) business days of written demand by Guarantor together with
    any interest, reasonable attorneys’ fees, and/or costs of collection, if any, required by the Agreement to be paid by
    Counterparty in the collection of such amount.

 

    	 

    	 

    

 

	2.		Guaranty
                                                                                                                                                                                    Absolute.
                                                                                                                                                                                    The
                                                                                                                                                                                    liability
                                                                                                                                                                                    of
                                                                                                                                                                                    Guarantor
                                                                                                                                                                                    under
                                                                                                                                                                                    this
                                                                                                                                                                                    Guaranty
                                                                                                                                                                                    shall
                                                                                                                                                                                    be
                                                                                                                                                                                    absolute,
                                                                                                                                                                                    irrevocable
                                                                                                                                                                                    and
                                                                                                                                                                                    unconditional
                                                                                                                                                                                    irrespective
                                                                                                                                                                                    of:

 

		(a)	any
    defect or deficiency in any Agreement or any other documents executed in connection with any Agreement;
	 	 	 
		(b)	any
    modification, extension or waiver of any of the terms of any Agreement;
	 	 	 
		(c)	any
    change in the time, manner, terms or place of payment of or in any other term of, all or any of the Guaranteed Obligations,
    or any other amendment or waiver of or any consent to departure from any Agreement or any other agreement or instrument executed
    in connection therewith;
	 	 	 
		(d)	any
    sale, exchange, release or non-perfection of any property standing as security for the liabilities hereby guaranteed or any
    liabilities incurred directly or indirectly hereunder or any set off against any of said liabilities, or any release or amendment
    or waiver of or consent to departure from any other guaranty, for all or any of the Guaranteed Obligations;
	 	 	 
	

         
	(e)	except
    as to applicable statutes of limitation, failure, omission, delay, waiver or refusal by the Counterparty to exercise, in whole
    or in part, any right or remedy held by the Counterparty with respect to any Agreement or any transaction under any Agreement;
    or
	 	 	 
		(f)	any
    change in the existence, structure or ownership of the Guarantor or Company, or any bankruptcy, insolvency, reorganization,
    liquidation, receivership, or similar proceeding affecting Company or its assets.

 

The obligations of the
Guarantor hereunder are several and not joint with Company 01 any other person, and are primary obligations for which the Guarantor
is the principal obligor. There are no conditions precedent to the enforcement of this Guaranty, except as expressly contained
herein. It shall not be necessary for the Counterparty, in order to enforce payment by the Guarantor under this Guaranty, to exhaust
its remedies against Company, any collateral pledged by Company, any other guarantor, or any other person liable for the payment
or performance of the Guaranteed Obligations. This Guaranty is one of payment and not of collection and shall apply regardless
of whether recovery of all such Guaranteed Obligations may be discharged, or uncollectible in any bankruptcy, insolvency, reorganization,
liquidation, receivership, or similar proceeding affecting Company or its assets.

 

Without limiting Guarantor’s
own defenses and rights hereunder, Guarantor reserves to itself all rights, setoffs, counterclaims and other defenses to which
Company is or may be entitled to arising from or out of the Agreements or otherwise, except as limited herein and except for defenses
arising out of the bankruptcy, insolvency, reorganization, liquidation, receivership, or similar proceeding affecting Company
or its assets.

 

    	2

    	 

    

 

	3.		Waiver.
                                                                                                                                                                                    Guarantor
                                                                                                                                                                                    hereby
                                                                                                                                                                                    waives:

 

		(a)	notice
    of acceptance of this Guaranty, notice of the creation or existence of any of the Guaranteed Obligations and notice of any
    action by the Counterparty in reliance hereon or in connection herewith;
	 	 	 
		(b)	notice
    of the entry into any Agreement between Company and the Counterparty and notice of any amendments, supplements or modifications
    thereto; or any waiver of consent under any Agreement, including waivers of the payment and performance of the obligations
    thereunder;
	 	 	 
		(c)	notice
    of any increase, reduction or rearrangement of Company’s obligations under any Agreement or notice of any extension
    of time for the payment of any sums due and payable to the Counterparty under any Agreement;
	 	 	 
		(d)  	except
    as expressly set forth herein, presentment, demand for payment, notice of dishonor or nonpayment, protest and notice of protest
    or any other notice of any other kind with respect to the Guaranteed Obligations; and
	 	 	 
		(e)	any
    requirement that suit be brought against, or any other action by the Counterparty be taken against, or any notice of default
    or other notice be given to, or any demand be made on, Company or any other person, or that any other action be taken or not
    taken as a condition to the Guarantor’s liability for the Guaranteed Obligations under this Guaranty or as a condition
    to the enforcement of this Guaranty against the Guarantor.

 

	4.	 	Subrogation.
    The Guarantor shall be subrogated to all rights of the Counterparty against Company
    in respect of any amounts paid by the Guarantor pursuant to the Guaranty, provided that the Guarantor waives any rights it
    may acquire by way of subrogation under this Guaranty, by any payment made hereunder or otherwise (including, without limitation,
    any statutory rights of subrogation under Section 509 of the Bankruptcy Code, 11 U.S.C. §509, or otherwise), reimbursement,
    exoneration, contribution, indemnification, or any right to participate in any claim or remedy of the Counterparty against
    Company or any collateral which the Counterparty now has or acquires, until all of the Guaranteed Obligations shall have been
    irrevocably paid to the Counterparty in full. If (a) the Guarantor shall perform and shall make payment to the Counterparty
    of all or any part of the Guaranteed Obligations and (b) all the Guaranteed Obligations shall have been paid in full, the
    Counterparty shall, at the Guarantor’s request, execute and deliver to the Guarantor appropriate documents necessary
    to evidence the transfer by subrogation to the Guarantor of any interest in the Guaranteed Obligations resulting from such
    payment by the Guarantor.
	 	 	 
	5.	 	Notices.
    All demands, notices and other communications provided for hereunder shall, unless
    otherwise specifically provided herein, (a) be in writing addressed to the party receiving the notice at the address set forth
    below or at such other address as may be designated by written notice, from time to time, to the other party, and (b) be effective
    upon delivery, when mailed by U.S. mail, registered or certified, return receipt requested, postage prepaid, or personally
    delivered. Notices shall be sent to the following addresses:

 

    	3

    	 

    

 

If to Counterparty:

 

OSAGE EXPLORATION AND DEVELOPMENT, INC.

2445 5th Avenue, Suite #310

San Diego, CA 92101

Attention: Norman Dowling

Fax: 619-677-3964

Phone: 619-677-3956

 

If to Guarantor:

 

BP CORPORATION NORTH AMERICA INC.

201 Helios Way 

Houston, Texas 77079

Attention: NAGP Credit Services —
Guarantees

Fax: 713-354-0996

 

	6.	 	Demand
    and Payment. Counterparty is not entitled to make demand upon Guarantor until
    a default occurs in payment of any Guaranteed Obligations by Company to Counterparty. Any demand by the Counterparty for payment
    hereunder shall be in writing, reference this Guaranty, reference the Guaranteed Obligations, and signed by a duly authorized
    representative of the Counterparty and delivered to the Guarantor pursuant to Section 5 hereof. There are no other requirements
    of notice, presentment or demand. The Guarantor shall pay, or cause to be paid, such Guaranteed Obligations within ten (10)
    business days of receipt of such demand.
	 	 	 
	7.	 	No
    Waiver; Remedies. Except as to applicable statutes of limitation, no failure
    on the part of Counterparty to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof,
    nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise
    of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law.
	 	 	 
	8.	 	Term;
    Termination. This Guaranty shall continue in full force and effect from the Effective
    Date until thirty (30) days following Guarantor’s notice, in writing, to Counterparty of Guarantor’s termination
    of this Guaranty (the “Termination Date”); provided, however, the termination of this Guaranty shall not affect
    Guarantor’s obligations hereunder with respect to any transaction entered into prior to such Termination Date, and this
    Guaranty shall remain in full force and effect until all Guaranteed Obligations arising with respect to such transactions
    have been fully satisfied.

 

    	4

    	 

    

 

	9.	 	Assignment;
    Successors and Assigns. The Guarantor and the Counterparty shall not assign its
    rights hereunder without the prior written consent of the other party, and any assignment without such prior written consent
    shall be null and void and of no force or effect. This Guaranty shall be binding upon and inure to the benefit of the each
    party hereto and their respective successors and permitted assigns.
	 	 	 
	10.	 	Amendments,
    Etc. Subject to the Guarantor’s right to terminate this Guaranty pursuant
    to Paragraph 8, no amendment of this Guaranty shall be effective unless in writing and signed by Guarantor and Counterparty.
    No waiver of any provision of this Guaranty or consent to any departure by the Guarantor there from shall in any event be
    effective unless such waiver shall be in writing and signed by Counterparty. Any such waiver shall be effective only in the
    specific instance and for the specific purpose for which it was given.
	 	 	 
	11.	 	Caption.
    The captions in this Guaranty have been inserted for convenience only and shall be
    given no substantive meaning or significance whatsoever in construing the terms and provisions of this Guaranty.
	 	 	 
	12.	 	Representation
                                                                                     and Warranties.

 

The Guarantor represents and warrants as follows:

 

		(a)	The
    Guarantor is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation
    and has full corporate power to execute, deliver and perform this Guaranty.
	 	 	 
		(b)	The
    execution, delivery and performance of this Guaranty have been and remain duly authorized by all necessary corporate action
    and do not contravene the Guarantor’s constitutional documents or any contractual restriction binding on the Guarantor
    or its assets.
	 	 	 
		(c)	This
    Guaranty constitutes the legal, valid and binding obligation of the Guarantor enforceable against Guarantor in accordance
    with its terms, subject, as to enforcement, to bankruptcy, insolvency, reorganization and other laws of general applicability
    relating to or affecting creditor’s rights and to general equity principles.

 

	13.	 	Foreign
    Currency Obligations. Subject to the limitation of Guarantor’s total liability
    set forth in Paragraph 1 hereof, the Guarantor shall make payment in the currency in which the Company is required to pay
    its payment obligations (the “Original Currency”). For the purposes of calculating Guarantor’s total liability
    hereunder and applying the limitation on Guarantor’s total liability, the value of the payment obligation in the Original
    Currency shall be converted to US Dollars by the Guarantor at the rate equal to the applicable spot exchange rate of a large
    commercial bank located in Canada or the United States on the date that payment is made by the Guarantor.

 

    	5

    	 

    

 

	14.	 	GOVERNING LAW.
    THIS GUARANTY SHALL BE GOVERNED BY. AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD OR
    REFERENCE TO THE CONFLICT OF LAWS PRINCIPLES OF ANY JURISDICTION. However, if any provision
    of this Guaranty shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such
    prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Guaranty.
	 	 	 
	15.	 	Entire
    Agreement. This Guaranty constitutes the entire agreement and understanding between
    Guarantor and Counterparty with respect to the Guaranteed Obligations and supercedes and replaces in its entirety any and
    all guaranties previously issued by Guarantor to Counterparty with respect to the Guaranteed Obligations, or any part of them.

 

REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK

 

    	6

    	 

    

 

IN WITNESS
WHEREOF, the Guarantor has caused this Guaranty to be duly executed and delivered by its duly authorized representative effective
as of this 15th day of October, 2013 (“Effective Date”).

 

	 	BP
    CORPORATION NORTH AMERICA INC.
	 	 	 
	 	By:	/s/
    Matt Clements
	 	Name:	Matt Clements
	 	Title:	Strategic Credit
    Manager

 

    	7

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