Document:

ingr_Ex10_13

		
			Exhibit 10.13
		

		
			Ingredion Incorporated
		

		
			Stock Incentive Plan
		

		
			2019 Restricted Stock Units Award Agreement
		

		
			 
		

		
			Ingredion Incorporated (the “Company”) has granted you an award of Restricted Stock Units (the “Award”) under the Ingredion Incorporated Stock Incentive Plan (the “Plan”).  The Award represents the right to receive shares of Company Common Stock in the future.  The grant date of the Award and the number of Restricted Stock Units covered by this Award are set forth in the document you have received entitled “Notice of Grant of Restricted Stock Units.”  The Notice of Grant of Restricted Stock Units and this Restricted Stock Units Award Agreement collectively constitute the Agreement relating to the Award.  This Award Agreement and the Plan together govern your rights under the Award and the Plan and set forth all of the conditions and limitations affecting such rights.
		

		
			Capitalized terms used in this Award Agreement shall have the meanings ascribed to them in the Plan or in this Award Agreement. If there is any inconsistency between the terms of this Award Agreement and the terms of the Plan, except as otherwise expressly provided in the Plan, the Plan’s terms shall supersede and replace the conflicting terms of this Award Agreement.
		

		
			Overview of Your Grant
		

		
			1.    General.  Except as provided below, you shall not be entitled to any privileges of ownership with respect to the shares of Common Stock subject to the Award unless and until, and only to the extent, the Restricted Stock Units subject to the Award are settled and you become a stockholder of record with respect to such shares as provided herein.  The Company agrees to reserve and keep available, either in treasury or out of its authorized but unissued shares of Common Stock, the full number of shares subject to the Award.
		

		
			2.    Grant Date.  February 8,  2019.
		

		
			3.    Vesting Period.  The Restricted Stock Units awarded and/or credited under this Award Agreement will become fully vested on February 8,  2022  (the “Vesting Date”).  During the period beginning on the Grant Date and ending on the Vesting Date (the “Vesting Period”),  the Restricted Stock Units awarded and/or credited under this Award Agreement may not be sold, transferred, assigned, pledged, hypothecated or otherwise encumbered or disposed of, except as provided in the Plan or this Award Agreement.  If all of the terms and conditions of this Award Agreement and the Plan are met on the Vesting Date, subject to Section 11 of this Award Agreement, then you will be issued the number of shares of Common Stock subject to the Restricted Stock Units then held by you which were issued and/or credited to you under this Award Agreement.  The issuance shall occur upon the Vesting Date or as soon as administratively practicable thereafter (but in no event later than thirty (30) days following the Vesting Date).  Notwithstanding the effect that Section 5.8(a)(1) of the Plan would otherwise have, unless otherwise determined by the Committee, in the event of a Change in Control pursuant to Section 5.8(b)(3) or (4) of the Plan in connection with which the holders of Common Stock receive shares of common stock that are registered under Section 12 of the Exchange Act (and, for the avoidance of doubt, not in the event of a Change in Control to which Section 5.8(a)(2) of the Plan applies), the Restriction Period applicable to the Restricted Stock Units shall lapse as a result of such Change in Control upon the earlier to occur of (i) your continued employment or service through the Vesting Date, and (ii) the termination of your employment with the Company or any of its Subsidiaries or affiliates for Good Reason, or the termination of your employment by the Company or any of its
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			Subsidiaries or affiliates without Cause, within two years following such Change in Control (the “Protection Period”).  In the event of such Change in Control pursuant to Section 5.8(b)(3) or (4) of the Plan in connection with which the holders of Common Stock receive shares of common stock that are registered under Section 12 of the Exchange Act, there shall be substituted for each share of Common Stock relating to the Restricted Stock Units the number, type and class of shares into which each outstanding share of Common Stock shall be converted pursuant to such Change in Control.
		

		
			For purposes of the foregoing, “Good Reason” shall mean:
		

		
			(i)          There has occurred a material reduction by the Company, a Subsidiary or affiliate in your base salary in effect immediately before the beginning of the Protection Period or as increased from time to time thereafter;
		

		
			(ii)         The Company, a Subsidiary or affiliate, without your written consent, has required you to be relocated anywhere in excess of thirty-five (35) miles from your office location immediately before the beginning of the Protection Period, except for required travel on the business of the Company, a Subsidiary or affiliate to an extent substantially consistent with your business travel obligations immediately before the beginning of the Protection Period; or
		

		
			(iii)       The Company or a Subsidiary has reduced in any manner that you reasonably consider important your title, job authorities or responsibilities immediately before the beginning of the Protection Period.
		

		
			You may exercise your right to terminate your employment for Good Reason by giving the Company a written notice of termination specifying in reasonable detail the circumstances constituting such Good Reason. However, the Company shall have thirty (30) days to “cure,” such that the circumstances constituting such Good Reason are eliminated.  Your employment shall terminate at the end of such thirty (30)-day period only if the Company has failed to cure such circumstances constituting the Good Reason.
		

		
			Your termination of employment within a Protection Period shall be for Good Reason if one of the occurrences specified in this Section 3 shall have occurred (and subject to the cure provision of the immediately preceding paragraph), notwithstanding that you may have other reasons for terminating employment, including employment by another employer that  you  desire to accept.
		

		
			4.    Termination of Employment.  Subject to Section 3 of this Agreement and Section 3 of the Plan, in the event that you terminate employment with the Company, its affiliates, and/or its Subsidiaries for any reason, or in the event that the Company, its affiliates, and/or its Subsidiaries terminates your employment with or without Cause, all of the unvested Restricted Stock Units you hold at the time your employment terminates shall be forfeited to the Company; provided, however, that in the event your employment with the Company is terminated due to (a) death, (b) the occurrence if a Disability Date or (c) retirement on or after (A) age 65, (B) age 62 with a minimum of  5 years of continuous employment with or service to the Company or its Subsidiaries or affiliates or (C) age 55 with a minimum of 10 years of continuous employment with or service to the Company or its Subsidiaries or affiliates (in the case of each termination described in (A), (B) or (C), a “Retirement”), a prorated portion of the Restricted Stock Units awarded and/or credited under this Award Agreement shall vest.  Such proration shall be calculated by multiplying the number of Restricted Stock Units awarded and/or credited under this Award Agreement by a fraction, the numerator of which is the number of full months that have elapsed between the Grant Date and your termination date and the denominator of which is 36.  Notwithstanding the foregoing, in the event of your Retirement on or after February 8, 2020, the Restricted Stock Units shall continue to vest in accordance with Section 3 above.
		

		
			
		

		
			

		 

		

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			5.    Voting Rights and Dividends.  You do not have the right to vote any shares of Common Stock or to receive dividends on them prior to the date such shares are to be issued to you pursuant to the terms of this Award Agreement.  As of each date on which dividends are paid on the shares of Common Stock, the Company shall credit to the Award additional Restricted Stock Units, the number of which shall be determined by multiplying the amount of such dividend per share of Common Stock by the number of shares of Common Stock then subject to the Award, and dividing the product thereof by the Fair Market Value of a share of Common Stock on the applicable dividend payment date.
		

		
			6.    Income Tax and Social Insurance Contribution Withholding.  Prior to the issuance or delivery of any shares of Common Stock, the Company or the Subsidiary or affiliate that employs you (the “Employer”) (if applicable) shall have the right to require you to pay any U.S. Federal, state, local or other taxes (including non-U.S. taxes, social insurance, payroll tax, payment on account or other tax-related withholding) (“Tax-Related Items”) which may be required to be withheld or paid in connection with the Restricted Stock Units.  Such obligation shall be satisfied either:
		

		
			(a)   by the Company (which if you are subject to Section 16 of the Exchange Act is subject to approval by the Committee) by withholding whole shares of Common Stock which would otherwise be delivered to you, having an aggregate Fair Market Value determined as of the date the obligation to withhold or pay taxes arises in connection with the Restricted Stock Units (the “Tax Date”), or by the Company or Employer withholding an amount of cash which would otherwise be payable to you, in the amount necessary to satisfy any such obligation; or
		

		
			(b)   by you by any of the following means: (A) a cash payment to the Company or the Employer in the amount necessary to satisfy any such obligation, (B) delivery (either actual delivery or by attestation procedures established by the Company) to the Company of shares of Common Stock having an aggregate Fair Market Value, determined as of the Tax Date, equal to the amount necessary to satisfy any such obligation, (C) authorizing the Company to withhold whole shares of Common Stock which would otherwise be delivered having an aggregate Fair Market Value, determined as of the Tax Date, or withhold an amount of cash which would otherwise be payable to you, equal to the amount necessary to satisfy any such obligation, or (D) any combination of (A), (B) and (C).
		

		
			Any fraction of a share of Common Stock that would be required to satisfy such an obligation shall be disregarded and you shall pay the remaining amount in cash.
		

		
			Regardless of any action the Company or the Employer (if applicable) takes with respect to any or all Tax-Related Items, you acknowledge and agree that the ultimate liability for all Tax-Related Items legally due by you is and remains your responsibility and that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Units or the shares of Common Stock issued upon vesting of the Units, and (ii) do not commit to structure the terms of the Award (or any aspect of the Units) to reduce or eliminate your liability for Tax-Related Items.
		

		
			7.      Change of Capitalization.  If, prior to the time the restrictions imposed by Section 3 of this Award Agreement on the Restricted Stock Units awarded hereunder lapse, the Company shall be reorganized or consolidated or merged with another corporation, the appropriate amount of any stock, securities or other property exchangeable for shares of Common Stock pursuant to such reorganization, consolidation or merger shall be appropriately substituted for the shares of Common Stock then subject to the Restricted Stock Units issued and/or credited hereunder.
		

		
			8.      Continuation of Employment.  This Award Agreement shall not confer upon you any right to continuation of employment by the Company, its affiliates, and/or its Subsidiaries, nor shall this
		

		
			
		

		
			

		 

		

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			Award Agreement interfere in any way with the Company’s, its affiliates’, and/or its Subsidiaries’ right to terminate your employment at any time, except to the extent expressly provided otherwise in a written agreement between you and the Company, an affiliate or Subsidiary or prohibited by law.
		

		
			9.     No Right to Future Grants; No Right of Employment; Extraordinary Item.  In accepting the grant, you acknowledge that: (a) the Plan is established voluntarily by the Company, is discretionary in nature and may be modified, suspended or terminated by the Company at any time, as provided in the Plan and this Award Agreement; (b) the grant of the Restricted Stock Units is voluntary and occasional and does not create any contractual or other right to receive future grants of Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted Stock Units have been granted repeatedly in the past; (c) all decisions with respect to future grants, if any, will be at the sole discretion of the Company; (d) your participation in the Plan is voluntary; (e) the Restricted Stock Units and any Common Stock subject to the Restricted Stock Units are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments; (f) the grant of Restricted Stock Units is provided for future services to the Company and its affiliates and is not under any circumstances to be considered compensation for past services; (g) in the event that you are an employee of an affiliate or Subsidiary of the Company, the grant will not be interpreted to form an employment contract or relationship with the Company or an employment contract with the affiliate or Subsidiary that is your employer; (h) the future value of the underlying shares of Common Stock is unknown and cannot be predicted with certainty; (i) no claim or entitlement to compensation or damages arises from forfeiture or termination of the Restricted Stock Units or diminution in value of the Restricted Stock Units or the shares of Common Stock, and you irrevocably release the Company, its affiliates and/or its Subsidiaries from any such claim that may arise; (j) in the event of involuntary termination of your employment, your right to receive Restricted Stock Units and vest in Restricted Stock Units and/or Common Stock under the Plan, if any, will terminate in accordance with the terms of the Plan and will not be extended by any notice period mandated under local law; furthermore, your right to vest in the Restricted Stock Units after such termination of employment, if any, will be measured by the date of termination of your active employment and will not be extended by any notice period mandated under local law; and (k) if you are resident or employed outside the United States, neither the Company nor any of its Subsidiaries or affiliates shall be liable for any change in the value of the Restricted Stock Units, the amount realized upon settlement of the Restricted Stock Units or the amount realized upon a subsequent sale of any shares of Common Stock, resulting from any fluctuation of the United States Dollar/local currency exchange rate.
		

		
			10.   Requirements of Law.  The granting of Restricted Stock Units under the Plan, and the issuance or delivery of any certificate or certificates for shares of Common Stock upon the vesting of Restricted Stock Units, shall be subject to, and conditioned upon, satisfaction of all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.
		

		
			11.   Alternative Form of Settlement in Non-U.S. Jurisdictions.  Notwithstanding anything in the Agreement to the contrary, if you are resident or employed outside of the United States, the Company may, in its sole discretion, settle the Restricted Stock Units in the form of a cash payment to the extent settlement in shares of Common Stock: (i) is prohibited under local law; (ii) would require you, the Company and/or its Subsidiaries or affiliates to obtain the approval of any governmental and/or regulatory body in your country of residence (or country of employment, if different); (iii) would result in adverse tax consequences for you or the Company; or (iv) is administratively burdensome.  Alternatively, the Company may, in its sole discretion, settle the Restricted Stock Units in the form of shares of Common Stock but require you to sell such shares immediately or within a specified period
		

		
			
		

		
			

		 

		

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			following your termination of employment (in which case, this Award Agreement shall give the Company the authority to issue sales instructions on your behalf).
		

		
			12.   Compliance with Local Law.  If you are resident or employed outside of the United States, as a condition to the grant of Restricted Stock Units, you agree to repatriate all payments attributable to the shares of Common Stock and/or cash acquired under the Plan in accordance with local foreign exchange rules and regulations in your country of residence (and country of employment, if different).  In addition, you agree to take any and all actions, and consent to any and all actions taken by the Company and the Company’s Subsidiaries and affiliates, as may be required to allow the Company and the Company’s Subsidiaries and affiliates to comply with local laws, rules and regulations in your country of residence (and country of employment, if different).  Finally, you agree to take any and all actions as may be required to comply with your personal legal and tax obligations under local laws, rules and regulations in your country of residence (and country of employment, if different).
		

		
			13.   Employee Data Privacy.  You hereby explicitly and unambiguously consent to the collection, use, processing and transfer, in electronic or other form, of your personal data as described in this document by and among, as applicable, the Company, its affiliates and its Subsidiaries for the exclusive purpose of implementing, administering and managing your participation in the Plan.
		

		
			You understand that the Company (and/or the Employer, if applicable) holds certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, email address, family size, marital status, sex, beneficiary information, emergency contacts, passport/visa information, age, language skills, driver’s license information, nationality, C.V. (or resume), wage history, employment references, social insurance number, resident registration number or other identification number, salary, job title, employment or severance contract, current wage and benefit information, personal bank account number, tax-related information, plan or benefit enrollment forms and elections, option or benefit statements, any shares of stock or directorships in the company, details of all options or any other entitlements to shares of stock awarded, canceled, purchased, vested, unvested or outstanding for purpose of managing and administering the Plan (“Data”).
		

		
			You understand that Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan including, but not limited to, the affiliates of the Company and/or Morgan Stanley Smith Barney LLC, or any successor.  These third party recipients may be located in your country or elsewhere, and the recipient’s country may have different data privacy laws and protections than your country.  You understand that you may request a list with the names and addresses of any potential recipients of the Data by contacting Corporate Human Resources.
		

		
			You authorize the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom you may elect to deposit any shares of Common Stock acquired.  You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan.
		

		
			You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing Corporate Human Resources.
		

		
			
		

		
			

		 

		

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			You understand, however, that refusing or withdrawing your consent may affect your ability to participate in the Plan.  For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact Corporate Human Resources.
		

		
			Finally, upon request of the Company or the Employer, you agree to provide an executed data privacy consent form (or any other agreements or consents that may be required by the Company and/or the Employer) that the Company and/or the Employer may deem necessary to obtain from you for the purpose of administering your participation in the Plan in compliance with the data privacy laws in your country, either now or in the future. You understand and agree that you will be unable to participate in the Plan if you fail to provide any such consent or agreement requested by the Company and/or the Employer.
		

		
			14.   Compliance with Section 409A of the Code.  It is intended that this Award Agreement and the Plan be exempt from the provisions of section 409A of the Code to the maximum extent permissible under law.  To the extent section 409A of the Code applies to this Award Agreement and the Plan, it is intended that this Award Agreement and the Plan comply with the provisions of section 409A of the Code.  This Award Agreement and the Plan shall be administered and interpreted in a manner consistent with this intent.  In the event that this Award Agreement or the Plan does not comply with section 409A of the Code (to the extent applicable thereto), the Company shall have the authority to amend the terms of this Award Agreement or the Plan (which amendment may be retroactive to the extent permitted by section 409A of the Code and may be made by the Company without your consent) to avoid excise taxes and other penalties under section 409A of the Code, to the extent possible.    Notwithstanding the foregoing, no particular tax result for you with respect to any income recognized by you in connection with this Award Agreement is guaranteed, and you solely shall be responsible for any taxes, penalties, interest or other losses or expenses incurred by you under section 409A of the Code in connection with this Award Agreement.  To the extent any amounts under this Award Agreement are payable by reference to your “termination of employment,” such term shall be deemed to refer to your “separation from service,” within the meaning of section 409A of the Code.  Notwithstanding any other provision in this Plan, if you are a “specified employee,” as defined in section 409A of the Code, as of the date of your separation from service, then to the extent any amount payable under this Award Agreement (i) constitutes the payment of nonqualified deferred compensation, within the meaning of section 409A of the Code, (ii) is payable upon your separation from service and (iii) under the terms of this  Award Agreement would be payable prior to the six-month anniversary of your separation from service, such payment shall be delayed until the earlier to occur of (a) the six-month anniversary of your separation from service or (b) the date of your death.
		

		
			15.   Administration.  This Award Agreement and your rights hereunder are subject to all the terms and conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Board or the Committee may adopt for administration of the Plan.
		

		
			16.   Not a Public Offering in Non-U.S. Jurisdictions.  If you are resident or employed outside of the United States, neither the grant of the Restricted Stock Units under the Plan nor the issuance of the underlying shares of Common Stock upon vesting of the Restricted Stock Units is intended to be a public offering of securities in your country of residence (and country of employment, if different).  The Company has not submitted any registration statement, prospectus or other filings to the local securities authorities in jurisdictions outside of the United States unless otherwise required under local law.  No employee of the Company is permitted to advise you on whether you should accept a grant of Restricted Stock Units under the Plan or provide you with any legal, tax or financial advice with respect to the grant of Restricted Stock Units. Before deciding to accept the grant of Restricted Stock Units, you should carefully consider all risk factors and tax considerations relevant to the acquisition of shares of Common Stock under the Plan or the disposition of them. Further, you should carefully
		

		
			
		

		
			

		 

		

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			review all of the materials related to the Restricted Stock Units and the Plan, and you should consult with your personal legal, tax and financial advisors for professional advice in relation to your personal circumstances.
		

		
			17.   Insider Trading/Market Abuse Laws.  You acknowledge that, depending on your or your broker’s country of residence or where the shares of Common Stock are listed, you may be subject to insider trading restrictions and/or market abuse laws that may affect your ability to accept, acquire, sell or otherwise dispose of shares of Common Stock, rights to shares of Common Stock or rights linked to the value of shares of Common Stock during such times you are considered to have “inside information” regarding the Company as defined in the laws or regulations in your country. Local insider trading laws and regulations may prohibit the cancellation or amendment of orders you placed before you possessed inside information. Furthermore, you could be prohibited from (a) disclosing the inside information to any third party (other than on a “need to know” basis), and (b) “tipping” third parties or causing them otherwise to buy or sell securities. Third parties include fellow employees.  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under the Company’s insider trading policy. You acknowledge that it is your responsibility to comply with any restrictions and you are advised to speak to your personal advisor on this matter.
		

		
			18.   Governing Law.  All questions concerning the construction, validity and interpretation of this Award Agreement and the Plan shall be governed and construed according to the laws of the State of Delaware, without regard to the application of the conflicts of laws provisions thereof.  Any disputes regarding this Award or the Plan shall be brought only in the state or federal courts of the State of Delaware.
		

		
			19.    Severability.  The invalidity or unenforceability of any provision of the Plan or this Award Agreement will not affect the validity or enforceability of any other provision of the Plan or this Award Agreement, and each provision of the Plan and this Award Agreement will be severable and enforceable to the extent permitted by law.
		

		
			20.   Waiver: You understand that the waiver by the Company with respect to your compliance with any provision of this Award Agreement shall not operate or be construed as a waiver of any other provision of this Award Agreement, or of any subsequent breach of such party of a provision of this Award Agreement.
		

		
			21.   Addendum to Award Agreement.  Notwithstanding any provisions of this Award Agreement to the contrary, the Restricted Stock Units shall be subject to such special terms and conditions for your country of residence (and country of employment, if different), as the Company may determine in its sole discretion and which shall be set forth in an addendum to these terms and conditions (the “Addendum”).  If you transfer your residence and/or employment to another country, any special terms and conditions for such country will apply to the Restricted Stock Units to the extent the Company determines, in its sole discretion, that the application of such terms and conditions is necessary or advisable in order to comply with local laws, rules and regulations, or to facilitate the operation and administration of the Award and the Plan (or the Company may establish additional terms and conditions as may be necessary or advisable to accommodate your transfer).  In all circumstances, the Addendum shall constitute part of these terms and conditions.
		

		
			22.   Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to the Restricted Stock Units or other awards granted to you under the Plan by electronic means.  You hereby consent to receive such documents be electronic delivery and agree to participate in the
		

		
			
		

		
			

		 

		

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			Plan through an online or electronic system established and maintained by the Company or a third party designated by the Company.
		

		
			23.   English Language.  If you are resident and/or employed outside of the United States, you acknowledge and agree that it is your express intent that the Award Agreement, the Plan and all other documents, notices and legal proceedings entered into, given or instituted pursuant to the Restricted Stock Units, be drawn up in English.  If you have received the Award Agreement, the Plan or any other documents related to the Restricted Stock Units translated into a language other than English, and if the meaning of the translated version is different than the English version, the English version will control.
		

		
			24. Additional Requirements.  The Company reserves the right to impose other requirements on the Restricted Stock Units, any shares of Common Stock acquired pursuant to the Restricted Stock Units, and your participation in the Plan, to the extent the Company determines, in its sole discretion, that such other requirements are necessary or advisable in order to comply with local laws, rules and regulations, or to facilitate the administration of the Award and the Plan.  Such requirements may include (but are not limited to) requiring you to sign any agreements or undertakings that may be necessary to accomplish the foregoing.
		

		
			25. Clawback Policy.  This Award Agreement and the Restricted Stock Units are subject to the Company’s Policy on Recoupment of Incentive Compensation and any similar policy or policies that have been or may be adopted by the Company.
		

		
			Ingredion Incorporated
		

		
			 
		

		
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			Ingredion Incorporated
		

		
			Addendum to the Restricted Stock Units Award Agreement
		

		
			 
		

		
			In addition to the terms of the Plan and the Award Agreement, the Restricted Stock Units are subject to the following additional terms and conditions.  All defined terms contained in this Addendum shall have the same meaning as set forth in the Plan and the Award Agreement.  Pursuant to Section 20 of the Award Agreement, if you transfer your residence and/or employment to another country reflected in an Addendum, the additional terms and conditions for such country (if any) will apply to you to the extent the Company determines, in its sole discretion, that the application of such terms and conditions is necessary or advisable in order to comply with local laws, rules and regulations, or to facilitate the operation and administration of the Award and the Plan (or the Company may establish additional terms and conditions as may be necessary or advisable to accommodate your transfer).
		

		
			 
		

		
			EUROPEAN UNION (“EU”) / EUROPEAN ECONOMIC AREA (“EEA”)
		

		
			 
		

		
			Data Privacy.  If you reside and/or perform services in the EU/EEA, Section 13 of the Award Agreement shall be replaced with the following:
		

		
			 
		

		
			The Company, with its registered address at 5 Westbrook Corporate Center, Westchester, IL 60154, U.S.A., is the controller responsible for the processing of your personal data by the Company and the third parties noted below. You should review the following information regarding the Company’s data processing practices.
		

		
			 
		

		
			(a)    Data Collection and Usage. Pursuant to applicable data protection laws, you are hereby notified that the Company collects, processes and uses certain personally-identifiable information about you for the legitimate interest of implementing, administering and managing the Plan and generally administering equity awards; specifically, including your name, home address, email address and telephone number, date of birth, social insurance number or other identification number, salary, citizenship, job title, any shares of Common Stock or directorships held in the Company, and details of all Restricted Stock Units or any entitlement to shares of Common Stock awarded, canceled, exercised, vested, or outstanding in your favor, which the Company receives from you or the Employer (“Personal Data”). In granting the Award under the Plan, the Company will collect Personal Data for purposes of allocating shares of Common Stock and implementing, administering and managing the Plan. The Company’s legal basis for the collection, processing and use of Personal Data is the necessity of the processing for the Company to perform its contractual obligations under this Award Agreement and the Plan and the Company’s legitimate business interests of managing the Plan, administering employee equity awards and complying with its contractual and statutory obligations.
		

		
			 
		

		
			(b)    Stock Plan Administration Service Provider. The Company transfers Personal Data to Morgan Stanley Smith Barney LLC and/or its affiliates, an independent service provider based in the United States, which assists the Company with the implementation, administration and management of the Plan.  In the future, the Company may select a different service provider and share Personal Data with another company that serves in a similar manner. The Company’s service provider will open an account for you to receive and trade shares of Common Stock. You will be asked to agree on separate terms and data processing practices with the service provider, which is a condition to your ability to participate in the Plan. The processing of Personal Data will take place through both electronic and non-electronic means. Personal Data will only be accessible by those individuals requiring access to it for purposes of implementing, administering and operating the Plan.
		

		
			 
		

		
			
		

		
			

		 

		

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			(c)    International Data Transfers.  The Company and its service providers are based in the United States. Your country or jurisdiction may have different data privacy laws and protections than the United States. For example, the European Commission has issued only a limited adequacy finding with respect to the United States that applies only to the extent companies register for the EU-U.S. Privacy Shield program. Alternatively, an appropriate level of protection can be achieved by implementing safeguards such as the Standard Contractual Clauses adopted by the EU Commission. Personal Data will be transferred from the EU/EEA to the Company and onward from the Company to any of its service providers based on the EU Standard Contractual Clauses or, if applicable, registration with the EU-U.S. Privacy Shield program. You may request a copy of such appropriate safeguards by contacting your local human resources department.
		

		
			 
		

		
			(d)    Data Retention. The Company will use Personal Data only as long as is necessary to implement, administer and manage your participation in the Plan or as required to comply with legal or regulatory obligations, including tax and securities laws. When the Company no longer needs Personal Data, the Company will remove it from its systems. If the Company keeps Personal Data longer, it would be to satisfy legal or regulatory obligations and the Company’s legal basis would be for compliance with relevant laws or regulations.
		

		
			 
		

		
			(e)    Data Subject Rights. You may have a number of rights under data privacy laws in your country. For example, your rights may include the right to (i) request access or copies of Personal Data the Company processes, (ii) request rectification of incorrect Personal Data, (iii) request deletion of Personal Data, (iv) place restrictions on processing Personal Data, (v) lodge complaints with competent authorities in your country, and/or (vi) request a list with the names and addresses of any potential recipients of Personal Data.  To receive clarification regarding your rights or to exercise the your rights, you may contact your local human resources department.
		

		
			 
		

		
			ARGENTINA
		

		
			 
		

		
			Securities Law Information.  The Restricted Stock Units and any shares of Common Stock to be issued pursuant to the vesting of the Restricted Stock Units are offered as a private transaction.  This offering is not subject to supervision by any Argentine governmental authority.
		

		
			 
		

		
			AUSTRALIA
		

		
			 
		

		
			1.          Shareholder Approval Requirement.  Notwithstanding any provision in the Award Agreement to the contrary, you will not be entitled to, and shall not claim, any benefit under the Plan (including, without limitation, a legal right as set forth in Section 4 of the Award Agreement) if the provision of such benefit would give rise to a breach of Part 2D.2 of the Corporations Act 2001 (Cth), any other provision of that Act, or any other applicable statute, rule or regulation which limits or restricts the giving of such benefits.  Further, the Company's affiliate in Australia is under no obligation to seek or obtain the approval of its shareholders for the purpose of overcoming any such limitation or restriction.
		

		
			 
		

		
			2.          Tax Notification. The Plan is a plan to which Subdivision 83A-C of the Income Tax Assessment Act 1997 (Cth) applies (subject to conditions in the Act).
		

		
			 
		

		
			BRAZIL
		

		
			 
		

		
			1.          Labor Law Acknowledgment. You agree that (i) the benefits provided under the Award Agreement and the Plan are the result of commercial transactions unrelated to your employment; (ii) the Award Agreement and the Plan are not a part of the terms and conditions of your employment; and (iii) the income from the vesting of the Restricted Stock Units, if any, is not part of your remuneration from employment.
		

		
			 
		

		
			
		

		
			

		 

		

			10

		

 

		

		
			 
		

		
			2.          Compliance with Law.  By accepting the Restricted Stock Units, you agree to comply with applicable Brazilian laws and to pay any and all applicable taxes associated with the vesting of the Restricted Stock Units, the receipt of dividends and/or the sale of shares of Common Stock acquired under the Plan.
		

		
			 
		

		
			CANADA
		

		
			 
		

		
			1.          Settlement in Shares.  Notwithstanding anything to the contrary in the Award Agreement, Addendum or the Plan, your Award shall be settled only in shares of Common Stock (and may not be settled in cash).
		

		
			 
		

		
			2.          Securities Law Information.  You acknowledge and agree that you will only sell shares of Common Stock acquired through participation in the Plan outside of Canada through the facilities of a stock exchange on which the shares of Common Stock are listed. Currently, the shares of Common Stock are listed on the New York Stock Exchange.
		

		
			 
		

		
			3.          Use of English Language.  You acknowledge and agree that it is your express wish that this Award Agreement, as well as all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English.  Vous reconnaissez et consentez que c’est votre souhait exprès qui cet accord, de meme que tous documents, toutes notifications et tous procédés légaux est entré dans, donné ou instituté conformément ci-annexé ou relatant directement ou indirectement ci-annexé, est formulé dans l’anglais.
		

		
			 
		

		
			4.          Data Privacy. The following provision supplements Section 13 of the Award Agreement:
		

		
			 
		

		
			You hereby authorize the Company and the Company’s representatives to discuss with and obtain all relevant information from all personnel, professional or not, involved in the administration and operation of the Plan. You further authorize the Company and any of its Subsidiaries and the Committee or its delegate to disclose and discuss the Plan with their advisors. You further authorize the Company and any of its Subsidiaries to record such information and to keep such information in your employee file.
		

		
			 
		

		
			CHILE
		

		
			 
		

		
			Private Placement.  The following provision shall supplement Section 16 of the Award Agreement:
		

		
			 
		

		
			The grant of the Restricted Stock Units hereunder is not intended to be a public offering of securities in Chile but instead is intended to be a private placement.
		

		
			 
		

		
			a)   The starting date of the offer will be the Grant Date (as defined in the Award Agreement), and this offer conforms to General Ruling no. 336 of the Chilean Commission for the Financial Market;
		

		
			b)   The offer deals with securities not registered in the registry of securities or in the registry of foreign securities of the Chilean Commission for the Financial Market, and therefore such securities are not subject to its oversight;
		

		
			c)   The issuer is not obligated to provide public information in Chile regarding the foreign securities, as such securities are not registered with the Chilean Commission for the Financial Market; and
		

		
			d)   The foreign securities shall not be subject to public offering as long as they are not registered with the corresponding registry of securities in Chile.
		

		
			 
		

		
			a)    La fecha de inicio de la oferta será el de la fecha de otorgamiento (o “grant date”, según este término se define en el documento denominado “Award Agreement”) y esta oferta se acoge a la norma de Carácter General n° 336 de la Comisión para el Mercado Financiero Chilena;
		

		
			
		

		
			

		 

		

			11

		

 

		

		
			 
		

		
			b)    La oferta versa sobre valores no inscritos en el registro de valores o en el registro de valores extranjeros que lleva la Comisión para el Mercado Financiero Chilena, por lo que tales valores no están sujetos a la fiscalización de ésta;
		

		
			c)    Por tratar de valores no inscritos no existe la obligación por parte del emisor de entregar en Chile información pública respecto de esos valores; y
		

		
			d)   Esos valores no podrán ser objeto de oferta pública mientras no sean inscritos en el registro de valores correspondiente.
		

		
			 
		

		
			CHINA
		

		
			 
		

		
			The following provisions govern your participation in the Plan if you are a national of the People’s Republic of China (“China”) resident in mainland China, as determined by the Company in its sole discretion:
		

		
			 
		

		
			1.          Exchange Control Approval.  The vesting of the Restricted Stock Units is conditioned upon the Company securing all necessary approvals from the China State Administration of Foreign Exchange (“SAFE”) to permit operation of the Plan.
		

		
			 
		

		
			2.          Exchange Control Restrictions.  You understand and agree that, to facilitate compliance with exchange control requirements, you are required to hold the shares of Common Stock received upon settlement of the Restricted Stock Units with the Company’s designated brokerage firm until the shares of Common Stock are sold. Further, you understand and agree that you will be required to immediately repatriate to China dividends and proceeds from the sale of any shares of Common Stock acquired under the Plan.
		

		
			 
		

		
			You also understand and agree that such repatriation of proceeds may need to be effected through a special bank account established by the Company or its Subsidiary, and you hereby consent and agree that dividends and proceeds from the sale of shares of Common Stock acquired under the Plan may be transferred to such account by the Company on your behalf prior to being delivered to you and that no interest shall be paid with respect to funds held in such account. The proceeds may be paid to you in U.S. dollars or local currency at the Company’s discretion. If the proceeds are paid to you in U.S. dollars, you understand that a U.S. dollar bank account in China must be established and maintained so that the proceeds may be deposited into such account. If the proceeds are paid to you in local currency, you acknowledge that the Company is under no obligation to secure any particular exchange conversion rate and that the Company may face delays in converting the proceeds to local currency due to exchange control restrictions. You agree to bear any currency fluctuation risk between the time the shares of Common Stock are sold and the net proceeds are converted into local currency and distributed to you. You further agree to comply with any other requirements that may be imposed by the Company or its Subsidiaries in China in the future to facilitate compliance with exchange control requirements in China. You acknowledge and agree that the processes and requirements set forth herein shall continue to apply following your termination.
		

		
			 
		

		
			Notwithstanding anything to the contrary in the Plan or the Award Agreement, in the event of your termination of employment for any reason, you will be required to sell all shares of Common Stock issued pursuant to the Plan no later than 120 days after your employment termination date (or such shorter period as may be required by the SAFE or the Company) (the “Mandatory Sale Date”), and repatriate the sales proceeds to China in the manner designated by the Company.  You understand that any shares of Common Stock you hold under the Plan that have not been sold by the Mandatory Sale Date will automatically be sold by the Company’s designated broker at the Company’s direction (on your behalf pursuant to this authorization without further consent).
		

		
			 
		

		
			
		

		
			

		 

		

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			3.          Administration.  Neither the Company nor any of its subsidiaries shall be liable for any costs, fees, lost interest or dividends or other losses you may incur or suffer resulting from the enforcement of the terms of this Addendum or otherwise from the Company’s operation and enforcement of the Plan, the Award Agreement and the Restricted Stock Units in accordance with Chinese law including, without limitation, any applicable SAFE rules, regulations and requirements.
		

		
			 
		

		
			The above requirements will not apply to non-Chinese nationals, unless otherwise required by the Company or by SAFE.
		

		
			 
		

		
			COLOMBIA
		

		
			 
		

		
			Securities Law Information. The shares of Common Stock are not and will not be registered with the Colombian registry of publicly traded securities (Registro Nacional de Valores y Emisores). Therefore, the shares of Common Stock may not be offered to the public in Colombia. Nothing in the Award Agreement should be construed as making a public offer of securities in Colombia.
		

		
			 
		

		
			GERMANY
		

		
			 
		

		
			No country-specific provisions.
		

		
			 
		

		
			JAPAN
		

		
			 
		

		
			No country-specific provisions.
		

		
			 
		

		
			MEXICO
		

		
			 
		

		
			1.          Commercial Relationship.  You expressly recognize that your participation in the Plan and the Company’s grant of the Restricted Stock Units do not constitute an employment relationship between you and the Company.  You have been granted the Restricted Stock Units as a consequence of the commercial relationship between the Company and the Company’s affiliate in Mexico that employs you, and the Company’s local affiliate in Mexico is your sole employer.  Based on the foregoing, (a) you expressly recognize the Plan and the benefits you may derive from your participation in the Plan do not establish any rights between you and the Company’s affiliate in Mexico that employs you, (b) the Plan and the benefits you may derive from your participation in the Plan are not part of the employment conditions and/or benefits provided by the Company’s affiliate in Mexico that employs you, and (c) any modifications or amendments of the Plan by the Company, or a termination of the Plan by the Company, shall not constitute a change or impairment of the terms and conditions of your employment with the Company’s affiliate in Mexico that employs you.
		

		
			 
		

		
			2.          Extraordinary Item of Compensation.  You expressly recognize and acknowledge that your participation in the Plan is a result of the discretionary and unilateral decision of the Company, as well as your free and voluntary decision to participate in the Plan in accordance with the terms and conditions of the Plan, the Award Agreement and this Addendum.  As such, you acknowledge and agree that the Company may, in its sole discretion, amend and/or discontinue your participation in the Plan at any time and without any liability.  The value of the Award is an extraordinary item of compensation outside the scope of your employment contract, if any.  The Award is not part of your regular or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits, or any similar payments, which are the exclusive obligations of the Employer.
		

		
			 
		

		
			
		

		
			

		 

		

			13

		

 

		

		
			 
		

		
			PAKISTAN
		

		
			 
		

		
			No country-specific provisions.
		

		
			 
		

		
			PERU
		

		
			 
		

		
			1.          Labor Law Acknowledgement.   By accepting the grant of Restricted Stock Units, you acknowledge, understand and agree that the Restricted Stock Units are being granted ex gratia to you with the purpose of rewarding you.
		

		
			 
		

		
			2.          Securities Law Information.  The grant of Restricted Stock Units is considered a private offering in Peru; therefore, it is not subject to registration.  For more information concerning this offer, please refer to the Plan, the Award Agreement and any other grant documents made available to you by the Company.
		

		
			 
		

		
			SINGAPORE
		

		
			 
		

		
			Securities Law Information.  The grant of the Award under the Plan is being made pursuant to the “Qualifying Person” exemption under section 273(1)(f) of the Securities and Futures Act (Chapter 289, 2006 Ed.) (the “SFA”).  The Plan has not been and will not be lodged or registered as a prospectus with the Monetary Authority of Singapore and is not regulated by any financial supervisory authority pursuant to any legislation in Singapore.  Accordingly, statutory liability under the SFA in relation to the content of prospectuses would not apply.  You should note that, as a result, the Award is subject to section 257 of the SFA and you will not be able to make: (a) any subsequent sale of shares of Common Stock underlying the Award in Singapore; or (b) any offer of such subsequent sale of shares of Common Stock subject to the Award in Singapore, unless such sale or offer is made pursuant to the exemptions under Part XIII Division 1 Subdivision (4) (other than section 280) of the SFA.
		

		
			 
		

		
			SOUTH AFRICA
		

		
			 
		

		
			1.          Exchange Control Obligations.  You are solely responsible for complying with applicable exchange control regulations and rulings (the “Exchange Control Regulations”) in South Africa.  As the Exchange Control Regulations change frequently and without notice, you should consult your legal advisor prior to the acquisition or sale of shares of Common Stock under the Plan to ensure compliance with current Exchange Control Regulations.  Neither the Company nor any of its Subsidiaries or affiliates will be liable for any fines or penalties resulting from your failure to comply with applicable laws.
		

		
			 
		

		
			2.          Securities Law Information and Acceptance of the Restricted Stock Units.  Neither the Restricted Stock Units nor the underlying shares of Common Stock shall be publicly offered or listed on any stock exchange in South Africa.  The offer is intended to be private pursuant to Section 96 of the Companies Act and is not subject to the supervision of any South African governmental authority.
		

		
			 
		

		
			The Restricted Stock Units offer must be finalized on or before the 60th day following the Grant Date.  If you do not want to accept the Restricted Stock Units, you must decline the Restricted Stock Units no later than the 60th day following the Grant Date.  If you do not decline the Restricted Stock Units on or before the 60th day following the Grant Date, you will be deemed to accept the Restricted Stock Units.
		

		
			 
		

		
			
		

		
			

		 

		

			14

		

 

		

		
			 
		

		
			SOUTH KOREA
		

		
			 
		

		
			Employee Data Privacy.  By accepting this Award Agreement:
		

		
			 
		

		
			1.   You agree to the collection, use, processing and transfer of Data as described in Section 13 of the Award Agreement; and
		

		
			2.   You agree to the processing of your unique identifying information (resident registration number) as described in Section 13 of the Award Agreement.
		

		
			 
		

		
			THAILAND
		

		
			 
		

		
			No country-specific provisions.
		

		
			 
		

		
			UNITED ARAB EMIRATES
		

		
			 
		

		
			Securities Law Information.  The Plan and the Award Agreement are intended for distribution only to certain participants as selected by the Company and must not be delivered to, or relied on by, any other person.  You should conduct your own due diligence on the Company’s shares of Common Stock.  If you do not understand the contents of the Plan and the Award Agreement, you should consult an authorized financial adviser. The Emirates Securities and Commodities Authority has no responsibility for reviewing or verifying any documents in connection with the Plan.  Neither the Ministry of Economy nor the Dubai Department of Economic Development have approved the Plan or the Award Agreement nor taken steps to verify the information set out therein, and have no responsibility for such documents.
		

		
			 
		

		
			UNITED KINGDOM
		

		
			 
		

		
			1.          Tax-Related Items.  Without limiting the effect of Section 6 of the Award Agreement, you hereby agree that you are liable for all Tax-Related Items and hereby covenant to pay all such Tax-Related Items, as and when requested by the Company or (if different) the Employer or by Her Majesty’s Revenue & Customs (“HMRC”) (or any other tax authority or any other relevant authority).  You also hereby agree to indemnify and keep indemnified the Company and (if different) your Employer against any Tax-Related Items that they are required to pay or withhold or have paid or will pay on your behalf to HMRC (or any other tax authority or any other relevant authority).
		

		
			 
		

		
			Notwithstanding the foregoing, if you are a director or executive officer of the Company (within the meaning of Section 13(k) of the U.S. Securities and Exchange Act of 1934, as amended), the terms of the immediately foregoing provision will not apply.  In the event that you are a director or executive officer of the Company and the income tax is not collected from or paid by you within ninety (90) days after the U.K. tax year in which an event giving rise to the indemnification described above occurs, the amount of any uncollected tax may constitute a benefit to you on which additional income tax and national insurance contributions (“NICs”) may be payable.  You acknowledge that you ultimately will be responsible for reporting and paying any income tax due on this additional benefit directly to HMRC under the self-assessment regime, and the Employer will hold you liable for the amount of any employee NICs due on this additional benefit, which the Company or the Employer may recover from you at any time thereafter by any of the means referred to in Section 6 of the Award Agreement.
		

		
			 
		

		
			2.          Exclusion of Claim. You acknowledge and agree that you will have no entitlement to compensation or damages insofar as such entitlement arises or may arise from your ceasing to have rights under or to be entitled to the Award, whether or not as a result of the termination of your employment with the Company or its Subsidiaries or affiliates for any reason whatsoever (whether the termination is in breach of contract or otherwise), or from the loss or diminution in value of the Award.  Upon the grant of the Restricted Stock
		

		
			
		

		
			

		 

		

			15

		

 

		

		
			 
		

		
			Units, you shall be deemed irrevocably to have waived any such entitlement.
		

		
			 
		

		
			*          *          *          *          *
		

		
			 
		

		 

		

			16Exhibit

Exhibit 10.1

Execution Version

FIRST AMENDMENT TO DEBTOR-IN-POSSESSION CREDIT AGREEMENT
THIS FIRST AMENDMENT TO DEBTOR-IN-POSSESSION CREDIT AGREEMENT (this “Agreement”) is entered into effective as of April 29, 2019 (the “Effective Date”) among VANGUARD NATURAL GAS, LLC, a Kentucky limited liability company (the “Borrower”), the undersigned Guarantors, CITIBANK, N.A., as the administrative agent (in such capacity, the “Administrative Agent”), Citibank, N.A., as the lender (in such capacity, the “Existing Lender”) and the New Lenders (as defined below).  Unless otherwise defined herein, all capitalized terms used herein that are defined in the Credit Agreement referred to below shall have the meanings given such terms in the Credit Agreement. 
WITNESSETH:
WHEREAS, the Borrower, the Guarantors, the Administrative Agent and the Existing Lender are parties to that certain Debtor-in-Possession Credit Agreement, dated as of April 3, 2019 (as amended, restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement” and the Existing Credit Agreement as amended by this Agreement, the “Credit Agreement”);
WHEREAS, pursuant to the Existing Credit Agreement, the Existing Lender has made New Money Loans to the Borrower and provided certain other credit accommodations to the Borrower;
WHEREAS, The Borrower has requested that each of the financial institutions party hereto other than the Existing Lender and the Administrative Agent (each, a “New Lender”, and collectively, the “New Lenders” and, together with the Existing Lender, the “Lenders”) become Lenders under the Credit Agreement with a Roll-Up Loan Amount as set forth on Annex I to the Credit Agreement (as amended hereby) and an Applicable Percentage with respect to New Money Loans and Commitments as set forth on Annex II to the Credit Agreement (as amended hereby).

NOW THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and agreed, the Borrower, the Guarantors, the Administrative Agent, the Issuing Bank, the New Lenders and the Existing Lender hereby agree as follows:
		
	Section 1.
	Amendments to Credit Agreement.

1.1    Section 1.01 of the Credit Agreement is hereby amended as follows:
(a)    By inserting the following defined terms in the appropriate alphabetical order:
“Alternative Restructuring Proposal” means any inquiry, proposal, offer, bid, term sheet, discussion, or agreement with respect to a sale, disposition, new-money investment, restructuring, reorganization, merger, amalgamation, acquisition, consolidation, dissolution, debt investment, financing, joint venture, partnership, equity investment, liquidation, tender offer, recapitalization, plan of reorganization, debtor-in-possession financing, exit financing, 

 

use of cash collateral, share exchange, business combination, or similar transaction, in each case to the extent received after the date hereof, involving any one or more Loan Parties or the debt, equity, or other interests in any one or more Loan Parties that is an alternative to the Exit Transactions.

“Approved Support Agreement” means a plan support agreement, restructuring support agreement (or similar agreement), in each case in form and substance reasonably satisfactory to the Administrative Agent and executed by the Parent, one or more of the Lenders and the other parties party thereto, as amended, restated, amended and restated, supplemented or otherwise modified from time to time.

“Claim” shall have the meaning assigned to such term in section 101(5) of the Bankruptcy Code.

“Claim/Interest” means, with respect to any Person, any Claim of such Person against, or Equity Interest in, any Loan Party, including, without limitation, DIP Claims and Claims on account of the Prepetition Loan Documents and the Prepetition Second Lien Debt Documents.

“Definitive Exit Documents” has the meaning assigned to such term in Section 12.21(a)(iv).

“DIP Claims” means with respect to any Person, any Claim of such Person against any Loan Party on account of this Agreement and any other Loan Document.

“Exit Transactions” means the entry by the Borrower, the Guarantors, the Administrative Agent and each Lender into the credit facilities (collectively, the “Exit Facility”) as more fully described in the Exit Facility Term Sheet.

“Exit Facility” has the meaning assigned to such term in the definition of “Exit Transactions”.

“Exit Facility Term Sheet” means the Summary of Proposed Terms and Conditions of Revolving Credit Facility and Term Facility attached hereto as Exhibit J as amended, restated, amended and restated, supplemented or otherwise modified from time to time in accordance with the terms hereof.

“First Amendment” means that certain First Amendment to Debtor-in-Possession Credit Agreement dated as of the First Amendment Effective Date among the Borrower, the Guarantors party thereto, the Administrative Agent and the Lenders party thereto.

“First Amendment Effective Date” means April 29, 2019.

“Other Claims” means, with respect to any Person, any Claim/Interest of such Person other than DIP Claims.

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“Qualified Marketmaker” means an entity that (a) holds itself out to the public or the applicable private markets as standing ready in the ordinary course of business to purchase from customers and sell to customers Other Claims (or enter with customers into long and short positions in Other Claims), in its capacity as a dealer or market maker in Other Claims and (b) is, in fact, regularly in the business of making a market in claims against issuers or borrowers (including debt securities or other debt).
“Required New Money Lenders” means, at any time, New Money Lenders having New Money Loans and Commitments representing more than 662/3% of the sum of all outstanding New Money Loans and Commitments.
“Transfer” means to sell, resell, reallocate, use, pledge, assign, transfer, hypothecate, participate, donate or otherwise encumber or dispose of, directly or indirectly (including through derivatives, options, swaps, pledges, forward sales or other transactions).
“Transfer Agreement” means an executed form of the transfer agreement providing, among other things, that a transferee is bound by the terms of Section 12.21 and substantially in the form attached hereto as Exhibit K.
(b)    By amending and restating the following definitions of in their entirety as follows:
“Loan Documents” means this Agreement, the First Amendment, the Notes, the Letter of Credit Agreements, the Security Instruments, the DIP Fee Letter, the DIP Order and all other agreements, instruments, consents and certificates heretofore and hereafter executed and delivered by the Parent, the Borrower, any other Loan Party and any of their respective Affiliates in connection with this Agreement (other an Treasury Management Agreements).
“Sanctioned Person” means, at any time, any person with whom dealings are restricted or prohibited under Sanctions, including, without limitation (a) any Person listed in any Sanctions-related list of designated or identified Persons maintained by the United States (including, without limitation, by OFAC, the U.S. Department of the Treasury, the U.S. Department of State or the US Department of Commerce), the United Nations Security Council, the European Union or any European Union member state, the United Kingdom (including, without limitation, Her Majesty’s Treasury), Switzerland, Australia, Japan or any other relevant authority, (b) any Person located, operating, organized or resident in, or any Governmental Authority or governmental instrumentality of, a Sanctioned Country or (c) any Person directly or indirectly owned or controlled by, or acting for the benefit or in behalf of, any such Person or Persons described in the foregoing clauses (a) or (b).
“Sanctions” means economic or financial sanctions or trade embargoes or restrictive measures enacted, imposed, administered or enforced from time to time by (a) the U.S. government (including, without limitation, OFAC, the U.S. Department of the Treasury, the U.S. Department of State, or the U.S. Department of Commerce) (b) the United Nations Security Council; (c) the European Union or any of its member states; (d) the United 

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Kingdom (including, without limitation, Her Majesty’s Treasury); (e) Switzerland; (f) Australia, (g) Japan or (h) any other relevant authority.
(c)    By amending the definition of “Oil and Gas Properties” by deleting the words “buildings” and “structures” out of clause (g) thereof.
1.2    Amendment to Section 2.01(a) of the Credit Agreement. Section 2.01(a) is hereby amended by inserting “, or a novation of” between the words “on account of” and “the applicable Prepetition Revolving Credit Loans”. 
1.3    Amendment to Section 2.01(b) of the Credit Agreement. Section 2.01(b) of the Credit Agreement is hereby amended by amending and restating the first sentence thereof as follows:
“Subject to the terms and conditions and relying upon the representations and warranties herein set forth, each Lender agrees to make new money loans (the “New Money Loans”) to the Borrower during the Availability Period in an aggregate principal amount that will not result in (a) such Lender’s Revolving Credit Exposure exceeding such Lender’s Commitment, (b) during the Interim Period, such Lender’s Revolving Credit Exposure exceeding its Applicable Percentage of the Interim Facility Cap or (c) the total Revolving Credit Exposure of all Lenders exceeding the Effective Commitment.”
1.4    Amendment to Section 7.12(b) of the Credit Agreement. Section 7.12(b) of the Credit Agreement is hereby amended by inserting “(i)” between the words “that” and “flood” and by inserting “and (ii) the Administrative Agent and each Lender has received such information as reasonably requested by the Administrative Agent or such Lender to complete its flood due diligence,” between the words “respect thereto” and “no Building”.
1.5    Amendment to Section 8.02 of the Credit Agreement. Section 8.02 of the Credit Agreement is hereby amended by amending and restating the initial sentence thereof in its entirety as follows:
“The Borrower will furnish to the Administrative Agent and each Lender (and, in the case of clause (a) below, the Committee) prompt written notice (and in any event, within three (3) Business Days) of the following:”
1.6    Amendment to Section 12.02(c) of the Credit Agreement. Section 12.02(c) of the Credit Agreement is hereby amended by (a) deleting “and” immediately prior to “(ii) the Administrative Agent and the Borrower” and (b) adding the following to the end of such section: “and (iii) the Administrative Agent, the Borrower and the Majority Lenders may amend, restate, amend and restate, supplement or otherwise modify the Exit Facility Term Sheet.”
1.7    Amendment and Restatement of Section 12.02(e) to the Credit Agreement. Section 12.02(e) of the Credit Agreement is hereby amended and restated in its entirety as follows:
“Anything herein to the contrary notwithstanding the Required Roll-Up Lenders may (without the consent of any other Lenders or any Agent), on behalf of all Roll-Up Lenders, 

4
 

agree that the full amount of the Roll-Up Loans will not be required to be repaid in cash on the Termination Date, but instead shall be treated in any manner approved by the Required Roll-Up Lenders; provided that no such treatment shall contradict the pro rata sharing provision of Section 4.01(c), or otherwise provide for any non-pro rata treatment without the consent of all Roll-Up Lenders. No amendment or waiver shall, unless signed by all Roll-Up Lenders, change the definition of the term Required Roll-Up Lenders or the percentage of Roll-Up Lenders that shall be required for Roll-Up Lenders to take any action hereunder.”
1.8    Addition of Section 12.02(f) to the Credit Agreement. New Section 12.02(f) is hereby added to the Credit Agreement as follows:
“Anything herein to the contrary notwithstanding, the Required New Money Lenders may (without the consent of any other Lenders or any Agent), on behalf of all New Money Lenders, agree that the full amount of the New Money Loans will not be required to be repaid in cash on the Termination Date, but instead shall be treated in any manner approved by the Required New Money Lenders; provided that no such treatment shall contradict the pro rata sharing provision of Section 4.01(c), or otherwise provide for any non-pro rata treatment without the consent of all New Money Lenders. No amendment or waiver shall, unless signed by all New Money Lenders, change the definition of the term Required New Money Lenders or the percentage of New Money Lenders that shall be required for New Money Lenders to take any action hereunder.”
1.9    Amendment of Section 12.03(a) to the Credit Agreement. Section 12.03(a) of the Credit Agreement is hereby amended by inserting the following between the words “taken as a whole” and “, and, solely in the case of a conflict of interest”:
“(except, with respect to clause (iv)(A) above, for which the Borrower shall pay the reasonable and documented or invoiced out-of-pocket legal expenses of counsel to each Lender to the extent expressly allowed under the DIP Order)”
1.10    Amendment and Restatement of Section 12.04(b)(ii) to the Credit Agreement. Section 12.04(b)(ii) of the Credit Agreement is hereby amended and restated in its entirety as follows:
“(ii)    Proportionate Amounts.  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, including, without limitation, a proportionate amount of such Lender’s Roll-up Loans, New Money Loans and the Commitments assigned.”
1.11    Amendment and Restatement of Section 12.21 to the Credit Agreement. Section 12.21 of the Credit Agreement is hereby amended and restated in its entirety as follows:
“Section 12.21        Exit Facility. 
(a)    Except as set forth in Section 12.21(c), each Lender (severally and not jointly) agrees, in respect of all of its Claims/Interests, to:

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(i)    support the Exit Transactions, vote, and reasonably exercise any powers or rights available to it (including in any board, shareholders’, or creditors’ meeting or in any process requiring voting or approval to which they are legally entitled to participate), in each case in favor of any matter requiring approval to the extent necessary to implement the Exit Transactions;
(ii)    use commercially reasonable efforts to cooperate with and assist the Loan Parties in obtaining additional support for the Exit Transactions from the Loan Parties’ other stakeholders and use commercially reasonable efforts to obtain additional support for the Exit Transactions from other holders of Claims/Interests;
(iii)    negotiate in good faith and use commercially reasonable efforts to execute and deliver any appropriate additional or alternative provisions or agreements to address any legal, financial, or structural impediment that may arise that would prevent, hinder, impede, delay, or are necessary to effectuate the consummation of, the Exit Transactions; 
(iv)    negotiate in good faith and use commercially reasonable efforts to execute and implement the definitive documentation in respect of the Exit Facility (the “Definitive Exit Documents”) that are consistent with the Exit Facility Term Sheet and to which it is required to be a party; and
(v)    give any notice, order, instruction, or direction to any applicable administrative agent, collateral agent, indenture trustee, collateral trustee, or other trustee or similar entity (including, without limitation, the Prepetition Credit Agreement Agent and the Prepetition Second Lien Trustee), including any successors thereto necessary to give effect to the Exit Transactions.
(b)    Except as set forth in Section 12.21(c), each Lender (severally and not jointly) agrees, in respect of all of its Claims/Interests that it shall not directly or indirectly: 
(i)    object to, delay, impede, or take any other action to interfere with acceptance, implementation, or consummation of the Exit Transactions;
(ii)    propose, file, support, or vote for any Alternative Restructuring Proposal;
(iii)    file any motion, pleading, or other document with the Bankruptcy Court or any other court (including any modifications or amendments thereof) that, in whole or in part, is not materially consistent with this Section 12.21 or the Exit Transactions; or
(iv)    initiate, or have initiated on its behalf, any litigation or proceeding of any kind with respect to the Exit Transactions against the Loan Parties or the other Parties other than to enforce any Definitive Exit Document.
(c)    Notwithstanding anything contained in this Section 12.21, nothing in this Section 12.21 shall:  (i) impair or waive the rights of the Lenders under any applicable bankruptcy, insolvency, foreclosure, or similar proceeding, including appearing as a party in interest in any matter to be adjudicated in order to be heard concerning any matter arising in the Chapter 11 Cases, in each case, so long as such act, action, consultation, or appearance is not in breach of or inconsistent with the Exit Transactions, the obligations of the Lenders and the Loan Parties hereunder, or for the purpose of hindering, delaying, or preventing the consummation of the Exit Transactions or (ii) limit the ability of any Lender to sell or enter 

6
 

into any transaction in connection with loans or any other Claims/Interests in the Loan Parties, other than as set forth in Section 12.21(d).
(d)    No Lender shall Transfer any ownership (including any beneficial ownership as defined in the Rule 13d-3 under the Securities Exchange Act of 1934, as amended) in any Other Claims to any affiliated or unaffiliated party, including any party in which it may hold a direct or indirect beneficial interest, unless either (i) the transferee executes and delivers to counsel to the Loan Parties, at or before the time of the proposed Transfer, a Transfer Agreement or (ii) the transferee is a Lender and the transferee provides notice of such Transfer (including the amount and type of such Other Claim) to counsel to the Loan Parties and the Administrative Agent at or before the time of the proposed Transfer (such transferee, a “Permitted Transferee”).
(e)    Notwithstanding Section 12.21(d) of this Agreement, a Qualified Marketmaker that acquires any Other Claims with the purpose and intent of acting as a Qualified Marketmaker for such Other Claims shall not be required to execute and deliver a Transfer Agreement in respect of such Other Claims if (i) such Qualified Marketmaker subsequently transfers such Other Claims (by purchase, sale assignment, participation, or otherwise) within five (5) Business Days of its acquisition to  a Permitted Transferee and (ii) such transfer otherwise is permitted under Section 12.21(d) of this Agreement; provided that, to the extent a Lender is acting in its capacity as a Qualified Marketmaker, it may Transfer (by purchase, sale, assignment, participation, or otherwise) any right, title or interests in Claims/Interests that the Qualified Marketmaker acquires from a holder of the Claims/Interests who is not a Lender, without the requirement that the transferee be a Permitted Transferee.
(f)    Notwithstanding anything herein or in any other Loan Document to the contrary, with respect to any Person bound by this Section 12.21, including any Lender or any transferee that has signed a Transfer Agreement, the provisions of this Section 12.21 shall remain binding on such Person notwithstanding any Transfer of a Claim or any interest therein after such Person was bound by this Section 12.21.
(g)    Notwithstanding anything herein or in any other Loan Document to the contrary, upon the execution of an Approved Support Agreement by any Lender, this Section 12.21, with respect to such Lender, shall be superseded in its entirety by the terms of such Approved Support Agreement; provided, however, that if such Approved Support Agreement shall for any reason be terminated or otherwise cease to be effective with respect to such Lender, this Section 12.21(f) shall no longer apply but Section 12.21(a)-(e) shall apply with respect to such Lender.
Notwithstanding anything herein or in any other Loan Document to the contrary, with respect to the Borrower, this Section 12.21 shall in all respects be limited by the terms of the Approved Support Agreement, and nothing in this Section 12.21 shall in any way impair or modify the terms of the Approved Support Agreement.” 
1.12    Replacement of Annex I to the Credit Agreement.  Annex I to the Credit Agreement is hereby replaced in its entirety with Annex I attached to this Agreement and Annex I to this Agreement shall be deemed to be attached as Annex I to the Credit Agreement.  After giving effect to this Agreement, the amendments to the Credit Agreement set forth in Section 1 hereof and any Borrowings made on the Effective Date, (a) each Lender (including each New Lender) who holds New Money Loans in an aggregate amount less than its Applicable Percentage of all New Money Loans shall advance new New Money Loans which shall be disbursed to the Administrative 

7
 

Agent and used to repay New Money Loans outstanding to each Lender who holds Loans in an aggregate amount greater than its Applicable Percentage of all New Money Loans, (b) each Lender’s (including each New Lender’s) participation in each Letter of Credit, if any, shall be automatically adjusted to equal its Applicable Percentage and (c) such other adjustments shall be made as the Administrative Agent shall specify so that the Revolving Credit Exposure applicable to each Lender (including each New Lender) equals its Applicable Percentage of the aggregate Revolving Credit Exposure of all Lenders. 
1.13    Replacement of Annex II to the Credit Agreement.  Annex II to the Credit Agreement is hereby replaced in its entirety with Annex II attached to this Agreement and Annex II to this Agreement shall be deemed to be attached as Annex II to the Credit Agreement.
1.14    Addition of Exhibit J and Exhibit K to the Credit Agreement. Exhibit J and Exhibit K shall be added to the Credit Agreement in the forms attached hereto as Exhibit J and Exhibit K respectively, and the schedule of Annexes, Exhibits and Schedules to the Credit Agreement shall be updated accordingly.
SECTION 2.    New Lenders.  Each New Lender hereby joins in, becomes a party to, and agrees to comply with and be bound by the terms and conditions of the Credit Agreement as a Lender thereunder and under each and every other Loan Document to which any Lender is required to be bound by the Credit Agreement, to the same extent as if such New Lender were an original signatory thereto.  Each New Lender hereby appoints and authorizes the Administrative Agent to take such action as the Administrative Agent on its behalf and to exercise such powers and discretion under the Credit Agreement as are delegated to the Administrative Agent by the terms thereof, together with such powers and discretion as are reasonably incidental thereto.  Each New Lender represents and warrants that (a) it has full power and authority, and has taken all action necessary, to execute and deliver this Agreement, to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (b) it has received a copy of the Credit Agreement and copies of the most recent financial statements delivered thereunder, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement and to become a Lender on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (c) from and after the Effective Date, it shall be a party to and be bound by the provisions of the Credit Agreement and the other Loan Documents and have the rights and obligations of a Lender thereunder.
SECTION 3.    Priming Liens.  Each Lender that is a party hereto, in its capacities as a Revolving Credit Lender and a Term Lender (as each term is defined in the Prepetition Credit Agreement) under the Prepetition Credit Agreement hereby (i) supports the Administrative Agent’s (in its capacity as the Prepetition Credit Agreement Agent) consent to the imposition of the Liens securing the Obligations as priming Liens to the Liens securing the Prepetition Credit Agreement Obligations, as described in the DIP Order, (ii) requests that the Administrative Agent consent to the imposition of priming of Liens described in the foregoing clause (i), and (iii) ratifies the imposition of priming Liens described in the foregoing clause (i) prior to the First Amendment Effective Date.
		
	SECTION 4.
	Conditions Precedent.  The effectiveness of this Agreement is subject to satisfaction of each of the following conditions precedent:

8
 

4.1    Executed Amendment.  Administrative Agent shall have received counterparts of this Agreement duly executed by the Borrower, the other Loan Parties and each of the Lenders (including the New Lenders).
4.2    Notes.  The Administrative Agent shall have received duly executed Notes (or amended and restated Notes, as applicable) payable to each Lender (including each New Lender) requesting a Note in a principal amount equal to the amount of such Lender’s Commitment (as amended hereby) dated as of the date hereof.
4.3    Absence of Defaults.  No Default or Event of Default shall have occurred that is continuing immediately prior to and after giving effect to this Agreement.
4.4    Representations and Warranties.  The representations and warranties of the Borrower and the other Loan Parties set forth in Section 5 shall be true and correct in all material respects on and as of the Effective Date, except to the extent any such representations and warranties are expressly limited (including by reference to representations and warranties contained in any other Loan Document) to an earlier date, in which case, on and as of the Effective Date such representations and warranties shall continue to be true and correct as of such specified earlier date; provided that any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language (including by reference to representations and warranties contained in any other Loan Document)  shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates). 
4.5    Fees.  All reasonable and documented fees, charges and expenses (including, without limitation, the fees, charges and expenses of Latham & Watkins LLP, RPA Advisors, LLC), and all other amounts due and payable on or prior to the Effective Date, required to be paid to the Administrative Agent and Lenders on or before the Effective Date shall have been paid.
4.6    Final Order. The Bankruptcy Court shall have entered the Final Order substantially simultaneously with the effectiveness of this Agreement, which Final Order (i) shall have been entered on the docket of the Bankruptcy Court and (ii) shall be in full force and effect and shall not have been vacated, stayed, reversed, modified or amended in any respect without the prior written consent of the Administrative Agent and the Majority Lenders.
		
	SECTION 5.
	Representations and Warranties.  In order to induce the Administrative Agent, the Issuing Bank, the Existing Lender and the New Lenders to enter into this Agreement, the Borrower and the Guarantors party hereto hereby represent and warrant to the Administrative Agent, the Issuing Bank, the Existing Lender and the New Lenders that:

5.1    Accuracy of Representations and Warranties.  Each representation and warranty of each Loan Party contained in the Loan Documents is true and correct in all material respects as of the date hereof except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, on and as of the Effective Date such representations and warranties shall continue to be true and correct as of such specified earlier date; provided that any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language 

9
 

shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates).
5.2    Due Authorization, No Conflicts.  Subject to any restrictions arising on account of the Borrower’s or any Guarantor’s status as a “debtor” under the Bankruptcy Code and entry of the DIP Order, the execution, delivery and performance of this Agreement are within the Borrower’s and each Guarantor’s limited liability company, partnership, and corporate powers (as applicable) and have been duly authorized by all necessary limited liability company and, if required, member action (including, without limitation, any action required to be taken by any class of managers, directors or partners (as applicable) of the Borrower or any other Person, whether interested or disinterested, in order to ensure the due authorization of this Agreement). The execution, delivery and performance of this Agreement (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 members or any class of managers, whether interested or disinterested, of the Borrower or any other Person), nor is any such consent, approval, registration, filing or other action necessary for the validity or enforceability of this Agreement, except such as have been obtained or made and are in full force and effect, other than those third party approvals or consents which, if not made or obtained, could not reasonably be expected to have a Material Adverse Effect or do not have an adverse effect on the enforceability of this Agreement (b) will not violate any applicable law or Organizational Documents of the Parent, the Borrower or any other 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 Parent, the Borrower or any other 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 Parent, the Borrower or any other Subsidiary (other than the liens and security interests in favor of the Administrative Agent (or any designee) created by the Loan Documents).
5.3    Validity and Binding Effect.  This Agreement has been duly executed and delivered by the Borrower and each Guarantor that is a party hereto and constitutes a legal, valid and binding obligation of the Borrower and such Guarantor, as applicable, enforceable in accordance with its terms, and subject to any restrictions arising on account of the Parent’s, the Borrower’s or any Subsidiary’s status as a “debtor” under the Bankruptcy Code and further subject to other 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.
5.4    Absence of Defaults.  No Default has occurred that is continuing immediately prior to and after giving effect to this Agreement.
		
	SECTION 6.
	Miscellaneous.  

6.1    Reaffirmation of Loan Documents.  Any and all of the terms and provisions of the Credit Agreement and the Loan Documents shall, except as amended and modified hereby, remain in full force and effect and are hereby ratified and confirmed. 

10
 

6.2    Parties in Interest.  All of the terms and provisions of this Agreement shall bind and inure to the benefit of the parties hereto and their respective permitted successors and assigns.
6.3    Counterparts; Integration.  
(a)    This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.
(b)    This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof and thereof. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS 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. TO THE EXTENT THERE ARE ANY INCONSISTENCIES BETWEEN THE TERMS OF THIS AGREEMENT OR ANY LOAN DOCUMENT AND THE DIP ORDER, THE PROVISIONS OF THE DIP ORDER SHALL GOVERN.
6.4    Interpretation; Payment of Expenses; Titles of Sections; Severability.  Sections 1.02(a), 12.03, 12.07 and 12.10 of the Credit Agreement shall apply to this Agreement, mutatis mutandis.
6.5    Loan Documents.  The Borrower acknowledges and agrees that this Agreement is a Loan Document.
6.6    Governing Law; Jurisdiction; Consent to Service of Process; Waiver of Jury Trial.  SECTION 12.09 OF THE CREDIT AGREEMENT SHALL APPLY TO THIS AGREEMENT, MUTATIS MUTANDIS.
[Signature Pages Follow]

11
 

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

BORROWER:

VANGUARD NATURAL GAS, LLC 

By:    /s/ R. Scott Sloan    
Name:    R. Scott Sloan
Title:    President & CEO

GUARANTORS: 

VANGUARD NATURAL RESOURCES, INC.

By:    /s/ R. Scott Sloan    
Name:    R. Scott Sloan
Title:    President & CEO

VNR HOLDINGS, LLC

		
	By:
	Vanguard Natural Gas, LLC 
its Sole Member

By:    /s/ R. Scott Sloan    
Name:    R. Scott Sloan
Title:    President & CEO

VANGUARD OPERATING, LLC

		
	By:
	Vanguard Natural Gas, LLC 
its Sole Member

By:    /s/ R. Scott Sloan    
Name:    R. Scott Sloan
Title:    President & CEO

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

EAGLE ROCK ACQUISITION PARTNERSHIP, L.P.

		
	By:
	EAGLE ROCK UPSTREAM DEVELOPMENT COMPANY, INC.,  
its general partner

By:    /s/ R. Scott Sloan    
Name:    R. Scott Sloan
Title:    President & CEO

EAGLE ROCK ACQUISITION PARTNERSHIP II, L.P.

		
	By:
	EAGLE ROCK UPSTREAM DEVELOPMENT COMPANY II, INC.,  
its general partner

By:    /s/ R. Scott Sloan    
Name:    R. Scott Sloan
Title:    President & CEO

EAGLE ROCK ENERGY ACQUISITION CO., INC.

By:    /s/ R. Scott Sloan    
Name:    R. Scott Sloan
Title:    President & CEO

EAGLE ROCK ENERGY ACQUISITION CO. II, INC.

By:    /s/ R. Scott Sloan    
Name:    R. Scott Sloan
Title:    President & CEO

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

EAGLE ROCK UPSTREAM DEVELOPMENT COMPANY, INC.

By:    /s/ R. Scott Sloan    
Name:    R. Scott Sloan
Title:    President & CEO

EAGLE ROCK UPSTREAM DEVELOPMENT COMPANY II, INC.

By:    /s/ R. Scott Sloan    
Name:    R. Scott Sloan
Title:    President & CEO

ESCAMBIA ASSET CO. LLC

By:    /s/ R. Scott Sloan    
Name:    R. Scott Sloan
Title:    President & CEO

ESCAMBIA OPERATING CO. LLC

By:    /s/ R. Scott Sloan    
Name:    R. Scott Sloan
Title:    President & CEO

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

ADMINISTRATIVE AGENT:

CITIBANK, N.A., 
as Administrative Agent and Issuing Bank

By:    /s/ Brendan Mackay    
Name:    Brendan Mackay
Title:    Vice President and Director

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

LENDERS:

CITIBANK, N.A.,
as the Existing Lender

By:    /s/ Brendan Mackay    
Name:    Brendan Mackay
Title:    Vice President and Director

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Bank of Montreal,
as a New Lender

By:    /s/ James V. Ducote    
Name:    James V. Ducote
Title:    Managing Director

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

ABN AMRO CAPITAL USA LLC,
as a New Lender

By:    /s/ Hugo Diogo    
Name:    Hugo Diogo
Title:    Executive Director

By:    /s/ Paul R. Wiener    
Name:    Paul R. Wiener
Title:    Managing Director

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Wells Fargo Bank, N.A.,
as a New Lender

By:    /s/ Katherine Scalzo    
Name:    Katherine Scalzo
Title:    Director

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

CAPITAL ONE, NATIONAL ASSOCIATION,
as a New Lender

By:    /s/ Michael P. Robinson    
Name:    Michael P. Robinson
Title:    Vice President

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

JPMORGAN CHASE BANK, N.A.,
as a New Lender

By:    /s/ Matthew H. Massie    
Name:    Matthew H. Massie
Title:    Managing Director

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

JPMorgan Chase Bank, N .A. *,  
with respect to ,only its Credit Trading Group,
as a New Lender

By:    /s/ Sean Chudzik, Asc.    
Name:    Sean Chudzik, Asc.
Title:    Authorized Signatory

		
	*
	This First Amendment to Debtor-in-Possession Credit Agreement (“Agreement”) applies only to the Credit Trading Group of JPMorgan Chase Bank, N.A. (“CTG”) and the New Money Loans and Commitments (collectively, the “Loans”) held by such group under the Credit Agreement (as defined in the Agreement). Accordingly, the terms “New Lender” and “Lender” for all purposes of the Agreement mean and refer only to CTG and such business unit's holdings of the Loans, “Claim”, “Claim/Interest”, “DIP Claims” and “Other Claims” (each term as defined in the Agreement). For the avoidance of doubt, this Agreement does not apply to (i) Loans, Claim, Claim/Interest, DIP Claims, Other Claims, securities, loans, claims, notes, other obligations or any other interests in the Borrower and any Loan Party that may be held, acquired or sold by, or any activities, services or businesses conducted or provided by, any other group or business unit within, or affiliate of, JPMorgan Chase Bank, N.A., (ii) any credit facilities to which JPMorgan Chase & Co. or any of its affiliates (“Morgan”) other than JPMorgan Chase Bank, N.A. is a party in effect as of the date hereof, (iii) any new class of loans or notes, amendment to an existing class of loans or notes, forbearance agreement to an existing class of loans or notes ( other than this Agreement), or debt or equity securities offering involving Morgan, (iv) any direct or indirect principal activities undertaken by any Morgan entity engaged in the venture capital, private equity or mezzanine businesses, or portfolio companies in which they have investments, (v) any ordinary course sales and trading activity undertaken by employees who are not a member of CTG, (vi) any Morgan entity or business engaged in providing private banking or investment management services, or (vii) any Loans, Claim, Claim/Interest, DIP Claims, and Other Claims that may be beneficially owned by non-affiliated clients of JPMorgan Chase Bank, N.A. or any of its affiliates.

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Huntington Bank,
as a New Lender

By:    /s/ Stephen Hoffman    
Name:    Stephen Hoffman
Title:    Managing Director

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

ING Capital LLC,
as a New Lender

By:    /s/ Michael Price    
Name:    Michael Price
Title:    Managing Director

By:    /s/ Josh Strong    
Name:    Josh Strong
Title:    Director

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Bank of America N.A., (“Bank”)
solely in respect of GBAM Special Assets Group (“Group”) and not any other desk, unit, group, division, or affiliate of Bank, as a New Lender. 

For the avoidance of doubt, and notwithstanding anything to the contrary contained in this Agreement, nothing in this Agreement shall bind Bank or its affiliates to take or not take any action, or otherwise in any respect, other than with respect to Group.

By:    /s/ Kevin M. Behan    
Name:    Kevin M. Behan
Title:    Managing Director

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

BARCLAYS BANK PLC (“Barclays”),
solely in respect of its Portfolio Management Group (“PMG”) and not any other desk, unit, group, division, or affiliate of Barclays, as a New Lender. 

For the avoidance of doubt, and notwithstanding anything to the contrary contained in this Agreement, nothing in this Agreement shall bind Barclays or its affiliates to take or not take any action, or otherwise in any respect, other than with respect to its PMG.

By:    /s/ Sydney G. Dennis    
Name:    Sydney G. Dennis
Title:    Director

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Credit Agricole Corporate and Investment Bank,
as a New Lender

By:    /s/ Ronald E. Spitzer    
Name:    Ronald E. Spitzer
Title:    Managing Director

By:    /s/ Richard Teitelbaum    
Name:    Richard Teitelbaum
Title:    Managing Director

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Fifth Third Bank,
as a New Lender

By:    /s/ David R. Garcia    
Name:    David R. Garcia
Title:    Vice President

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

PNC Bank, N.A,
as a New Lender

By:    /s/ John Ataman    
Name:    John Ataman
Title:    Senior Vice President

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Royal Bank of Canada,
as a New Lender

By:    /s/ Mari Hodgkinson    
Name:    Mari Hodgkinson
Title:    Director, Special Loans and Advisory Services

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Sumitomo Mitsui Banking Corporation,
as a New Lender

By:    /s/ Toshitake Funaki    
Name:    Toshitake Funaki
Title:    Managing Director

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

BARCLAYS BANK PLC (“Barclays”),
solely in respect of its Distressed Trading Desk (the “Distressed Desk”) and not any other desk, unit, group, division, or affiliate of Barclays, 
as a New Lender.

For the avoidance of doubt, and notwithstanding anything to the contrary contained in this Agreement, nothing in this Agreement shall bind Barclays or its affiliates to take or not take any action, or otherwise in any respect, other than with respect to its Distressed Desk.

By:    /s/ Salvatore Russo    
Name:    Salvatore Russo
Title:    Authorized Signatory

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Canadian Imperial Bank of Commerce, New York
Branch,
as a New Lender

By:    /s/ Eric J. De Santis    
Name:    Eric J. De Santis
Title:    Authorized Signatory

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Citizens Bank, N.A,
as a New Lender

By:    /s/ Michael Flynn    
Name:    Michael Flynn
Title:    Senior Vice President

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

U.S. Bank National Association,
as a New Lender

By:    /s/ James P. Cecil    
Name:    James P. Cecil
Title:    Senior Vice President

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

BDCM STRATEGIC CAPITAL FUND I, L.P.
		
	By:
	BDCM Strategic Capital Fund I Adviser, L.L.C. 

Its Investment Manager, as a New Lender,

		
	By:
	/s/ Stephen H. Deckoff    

		
	Name:
	Stephen H. Deckoff

		
	Title:
	Managing Principal

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Comerica Bank,
as a New Lender

By:    /s/ Cynthia B. Jones    
Name:    Cynthia B. Jones
Title:    Vice President

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Commonwealth Bank of Australia,
as a New Lender

By:    /s/ David Pichut    
Name:    David Pichut
Title:    Senior Associate

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Associated Bank, NA.,
as a New Lender

By:    /s/ Brett P. Stone    
Name:    Brett P. Stone
Title:    Senior Vice President

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Banc of America Credit Products Inc.,
as a New Lender

By:    /s/ Cassie Goodnight    
Name:    Cassie Goodnight
Title:    Vice President

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Hancock Whitney Bank,
as a New Lender

By:    /s/ Brian Berns Sr.    
Name:    Brian Berns Sr.
Title:    Vice President

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

SUNTRUST BANK,
as a New Lender

By:    /s/ William S. Krueger    
Name:    William S. Krueger
Title:    Senior Vice President

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

Black Diamond Credit Strategies Master Fund, Ltd.
		
	By:
	Black Diamond Credit Strategies Fund Adviser, L.L.C., 

Its Investment Manager, as a New Lender,

		
	By:
	/s/ Stephen H. Deckoff    

		
	Name:
	Stephen H. Deckoff

		
	Title:
	Managing Principal

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

UBS AG Stamford Branch,
as a New Lender

By:    /s/ Darlene Arias    
Name:    Darlene Arias
Title:    Director

By:    /s/ Houssem Daly    
Name:    Houssem Daly
Title:    Associate Director

SIGNATURE PAGE
FIRST AMENDMENT – VANGUARD NATURAL GAS, LLC

ANNEX I 
TO FIRST AMENDMENT TO DEBTOR-IN-POSSESSION CREDIT AGREEMENT
Annex I
	
							
	 
	Name of Lender
	Applicable Percentage
	Roll-up Loan Amount

	1
	CITIBANK, N.A.
	5.77130
	%
	

	$3,751,342.46
	

	2
	BANK OF MONTREAL
	7.42343
	%
	

	$4,825,230.93
	

	3
	ABN AMRO CAPITAL USA LLC
	5.39999
	%
	

	$3,509,990.66
	

	4
	WELLS FARGO BANK NA
	4.52524
	%
	

	$2,941,407.89
	

	5
	CAPITAL ONE, N.A.  CAPITAL ONE FINANCIAL CORPORATION (PARENT)
	4.30677
	%
	

	$2,799,402.16
	

	6
	JPMORGAN CHASE BANK NA  (JPM CHASE)
	4.14514
	%
	

	$2,694,341.28
	

	7
	HUNTINGTON NATIONAL BANK (HUNTINGTON)
	3.91222
	%
	

	$2,542,943.26
	

	8
	ING CAPITAL LLC
	3.81824
	%
	

	$2,481,853.16
	

	9
	BANK OF AMERICA NA
	3.71172
	%
	

	$2,412,615.46
	

	10
	BARCLAYS BANK PLC(NEW YORK BRANCH) [Bank]
	3.71172
	%
	

	$2,412,615.46
	

	11
	CREDIT AGRICOLE
	3.71172
	%
	

	$2,412,615.46
	

	12
	FIFTH THIRD BANK (FIFTH THIRD)
	3.71172
	%
	

	$2,412,615.46
	

	13
	PNC BANK, N.A.
	3.71172
	%
	

	$2,412,615.46
	

	14
	ROYAL BANK OF CANADA
	3.71172
	%
	

	$2,412,615.46
	

	15
	SUMITOMO MITSUI BANKING CORP.
	3.71172
	%
	

	$2,412,615.46
	

	16
	UBS AG, STAMFORD BRANCH
	3.71172
	%
	

	$2,412,615.46
	

	17
	BARCLAYS BANK PLC(NEW YORK BRANCH) [Desk]
	3.40776
	%
	

	$2,215,046.05
	

	18
	CIBC INC
	3.38908
	%
	

	$2,202,902.27
	

	19
	CITIZENS BANK
	3.38908
	%
	

	$2,202,902.27
	

	20
	U.S. BANK NATIONAL ASSOCIATION
	3.38908
	%
	

	$2,202,902.27
	

	21
	BLACK DIAMOND CREDIT STRATEGIES  MASTER FUND LTD (FKA) BDC FINANCE LTD
	2.91351
	%
	

	$1,893,783.48
	

	22
	COMERICA BANK
	2.79650
	%
	

	$1,817,723.98
	

	23
	COMMONWEALTH BANK OF AUSTRALIA  NEW YORK BRANCH
	2.55342
	%
	

	$1,659,720.89
	

	24
	ASSOCIATED BANK NA
	1.99631
	%
	

	$1,297,599.97
	

	25
	BANC OF AMERICA CREDIT PRODUCTS INC
	1.85302
	%
	

	$1,204,466.03
	

	26
	BDCM Strategic Capital Fund I, L.P.
	1.75692
	%
	

	$1,142,000.34
	

	27
	WHITNEY BANK
	1.67133
	%
	

	$1,086,362.76
	

	28
	SUNTRUST BANK
	1.42367
	%
	

	$925,386.75
	

	29
	CHASE LINCOLN FIRST COMMERCIAL  CORPORATION
	0.46426
	%
	

	$301,767.43
	

	 
	TOTAL:
	100
	%
	

	$65,000,000.00
	

Annex I to First Amendment

ANNEX II 
TO FIRST AMENDMENT TO DEBTOR-IN-POSSESSION CREDIT AGREEMENT
Annex II
	
							
	 
	Name of Lender
	Applicable Percentage
	New Money DIP Loan Commitment

	1
	CITIBANK, N.A.
	5.77130
	%
	

	$3,751,342.46
	

	2
	BANK OF MONTREAL
	7.42343
	%
	

	$4,825,230.93
	

	3
	ABN AMRO CAPITAL USA LLC
	5.39999
	%
	

	$3,509,990.66
	

	4
	WELLS FARGO BANK NA
	4.52524
	%
	

	$2,941,407.89
	

	5
	CAPITAL ONE, N.A.  CAPITAL ONE FINANCIAL CORPORATION (PARENT)
	4.30677
	%
	

	$2,799,402.16
	

	6
	JPMORGAN CHASE BANK NA  (JPM CHASE)
	4.14514
	%
	

	$2,694,341.28
	

	7
	HUNTINGTON NATIONAL BANK (HUNTINGTON)
	3.91222
	%
	

	$2,542,943.26
	

	8
	ING CAPITAL LLC
	3.81824
	%
	

	$2,481,853.16
	

	9
	BANK OF AMERICA NA
	3.71172
	%
	

	$2,412,615.46
	

	10
	BARCLAYS BANK PLC(NEW YORK BRANCH) [Bank]
	3.71172
	%
	

	$2,412,615.46
	

	11
	CREDIT AGRICOLE
	3.71172
	%
	

	$2,412,615.46
	

	12
	FIFTH THIRD BANK (FIFTH THIRD)
	3.71172
	%
	

	$2,412,615.46
	

	13
	PNC BANK, N.A.
	3.71172
	%
	

	$2,412,615.46
	

	14
	ROYAL BANK OF CANADA
	3.71172
	%
	

	$2,412,615.46
	

	15
	SUMITOMO MITSUI BANKING CORP.
	3.71172
	%
	

	$2,412,615.46
	

	16
	UBS AG, STAMFORD BRANCH
	3.71172
	%
	

	$2,412,615.46
	

	17
	BARCLAYS BANK PLC(NEW YORK BRANCH) [Desk]
	3.40776
	%
	

	$2,215,046.05
	

	18
	CIBC INC
	3.38908
	%
	

	$2,202,902.27
	

	19
	CITIZENS BANK
	3.38908
	%
	

	$2,202,902.27
	

	20
	U.S. BANK NATIONAL ASSOCIATION
	3.38908
	%
	

	$2,202,902.27
	

	21
	BLACK DIAMOND CREDIT STRATEGIES  MASTER FUND LTD (FKA) BDC FINANCE LTD
	2.91351
	%
	

	$1,893,783.48
	

	22
	COMERICA BANK
	2.79650
	%
	

	$1,817,723.98
	

	23
	COMMONWEALTH BANK OF AUSTRALIA  NEW YORK BRANCH
	2.55342
	%
	

	$1,659,720.89
	

	24
	ASSOCIATED BANK NA
	1.99631
	%
	

	$1,297,599.97
	

	25
	BANC OF AMERICA CREDIT PRODUCTS INC
	1.85302
	%
	

	$1,204,466.03
	

	26
	BDCM Strategic Capital Fund I, L.P.
	1.75692
	%
	

	$1,142,000.34
	

	27
	WHITNEY BANK
	1.67133
	%
	

	$1,086,362.76
	

	28
	SUNTRUST BANK
	1.42367
	%
	

	$925,386.75
	

	29
	CHASE LINCOLN FIRST COMMERCIAL  CORPORATION
	0.46426
	%
	

	$301,767.43
	

	 
	TOTAL:
	100
	%
	

	$65,000,000.00
	

Annex II to First Amendment

EXHIBIT J 
TO FIRST AMENDMENT TO DEBTOR-IN-POSSESSION CREDIT AGREEMENT

(Attached Separately)

Exhibit J to First Amendment

VANGUARD NATURAL GAS, LLC 
SUMMARY OF PROPOSED TERMS AND CONDITIONS 
OF REVOLVING CREDIT FACILITY AND TERM FACILITY
This Summary of Proposed Terms and Conditions (the “Term Sheet”) outlines certain key terms of a proposed Amended and Restated Credit Facility and Term Loan Facility to be effective on the effective date of the Plan (as defined below).  The outlined offered terms are subject to change, withdrawal or modification in the sole discretion of the Agents (as defined below) and/or the Loan Parties (as defined below).  (For purposes of this Term Sheet, “Definitive Documentation” means all documents related to the Facilities (as defined below) and the Plan, including, without limitation, the Disclosure Statement, the Plan, and the Confirmation Order).  No party shall be entitled to rely on any statement or representation made by any other party or its representatives except as ultimately set forth in final, executed Definitive Documentation, if any.  Capitalized terms used but not defined herein shall have the meaning set forth in the Agreement to which this Term Sheet is appended or the Prepetition Credit Agreement (as defined below), as applicable.
	
			
	Prepetition Facility:
	 
	The senior secured credit facility (the “Prepetition Facility”) provided by Citibank, N.A., as Administrative Agent under and as defined therein (the “Prepetition Agent”), and certain lenders (the “Prepetition Lenders”) pursuant to that certain Fourth Amended and Restated Credit Agreement dated as of August 1, 2017 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Prepetition Credit Agreement”) by and among the Borrower (together with its affiliated Chapter 11 debtors, the “Debtors”), as borrower thereunder, Vanguard Natural Resources, LLC, a Delaware limited liability company (the “Parent”), as parent guarantor, the Prepetition Agent and the Prepetition Lenders.

	Borrower:
	 
	Vanguard Natural Gas, LLC, a Kentucky limited liability company (the “Borrower”), as reorganized pursuant to the Plan and Confirmation Order.

	
			
	Guarantors:
	 
	The obligations of (a) the Borrower under the Facilities, (b) any Loan Party under any hedging agreements entered into between such Loan Party and any counterparty that is a Lender (as defined below) (or any affiliate thereof), and (c) any Loan Party under any treasury management arrangements between such Loan Party and a Lender (or any affiliate thereof) (such obligations, collectively, the “Obligations”) will be unconditionally guaranteed, on a joint and several basis, by the Parent (as reorganized through the Plan and Confirmation Order), each other entity formed or otherwise continuing through the Plan as a successor to the Debtors (other than, with respect to obligations under clause (a), the Borrower) and each other wholly-owned direct or indirect subsidiary of the Borrower (as reorganized through the Plan and Confirmation Order) (collectively with the Parent, the “Guarantors” and, collectively with the Borrower, the “Loan Parties”; and such guarantee being referred to as the “Guarantee”).  All Guarantees shall be guarantees of payment and not of collection.

Notwithstanding the foregoing, Guarantors shall not include, except in the Borrower’s sole discretion, (a) any non-U.S. subsidiary, (b) any direct or indirect subsidiary of (I) a non-U.S. subsidiary or (II) a CFC Holding Company (as defined below), (c) any direct or indirect U.S. organized subsidiary of the Parent that owns no material assets other than (x) equity interests (including, for this purpose, any debt or other instrument treated as equity for U.S. federal income tax purposes) in, or debt issued by, one or more (A) non-U.S. subsidiaries, each of which is a “controlled foreign corporation” within the meaning of Section 957 of the Internal Revenue Code (a “CFC”) and/or (B) other CFC Holding Companies and (y) cash, cash equivalents and incidental assets related thereto held on a temporary basis (a “CFC Holding Company”) and (d) any other U.S. subsidiary of the Parent with respect to which a guarantee could result in an adverse tax or regulatory consequence to the Parent or any of its subsidiaries as determined in good faith by the Borrower.

	Chapter 11 Plan:
	 
	The Debtors shall seek confirmation of a chapter 11 plan (the “Plan”) in connection with the voluntary cases commenced by the Debtors on March 31, 2019 in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”), which Plan shall (a) be consistent in all respects with this Term Sheet, (b) give effect to the transactions contemplated by this Term Sheet, and (c) otherwise be in form and substance reasonably satisfactory to the Majority Lenders.

	
			
	Lead Arranger and Bookrunner
	 
	Citigroup Global Markets Inc. (collectively with certain of its affiliates as may be appropriate to perform the work or consummate the transactions contemplated herein, “CGMI”) will act as lead arranger and bookrunner (in such capacity, including any affiliates acting in such capacity, collectively, the “Lead Arranger”).  For purposes of this Commitment Letter, “Citi” means CGMI, Citibank, N.A., Citicorp USA, Inc., Citicorp North America, Inc., and/or any of their affiliates as may be appropriate to consummate the transactions contemplated hereby.

	Administrative Agent and Issuing Bank:
	 
	Citi, as administrative agent and issuing bank under the Revolving Facility (as defined below) and the Term Loan A Facility (as defined below) (in such capacities, respectively, the “First-Out Agent” or “Issuing Bank”, as the case may be).  

	Term Loan B Agent:
	 
	Citi, as administrative agent under the Term Loan B Facility or another financial institution designated by Citi (in such capacity, the “Term Loan B Agent”, and together with the First-Out Agent, collectively, the “Agents”).

	Collateral Agent:
	 
	Citi or another financial institution designated by Citi, as collateral agent for the secured parties under the Facilities (in such capacity, the “Collateral Agent”). 

	Lenders:
	 
	Initially, the Lenders in the First-Out Facility will be each Prepetition Lender holding Prepetition Revolving Loans and electing to participate in the First-Out Facility and the Lenders in the Term Loan B Facility (as described and defined below) will be all Prepetition Lenders, in each case consistent with the Agreement (collectively, and together with any party that becomes a lender by assignment, the “Lenders”).

	Facilities:
	 
	A senior secured, amended and restated “first-out” facility consisting of the Revolving Facility described below and the Term Loan A Facility (collectively, the “First-Out Facility”) and a “last-out” first lien Term Loan B Facility (as defined below, and together with the First-Out Facility, collectively, the “Facilities”), in each case, as more fully described below and which shall become effective on the effective date of the Plan (the “Plan Effective Date”).

	 
	 
	(a)   First-Out Revolving Facility. Pursuant to the Plan, and as part of the treatment of their Obligations under the Plan, each Prepetition Lender that is a lender under the Agreement (each, a “DIP Electing Lender”) shall become revolving lenders on the Plan Effective Date (collectively, the “Revolving Lenders”) by agreeing to provide a lending commitment in respect of a senior secured first lien reserve-based revolving credit facility (each such Revolving Lender’s commitment, as reduced from time to time in accordance with the terms hereof, its “Revolving Commitment Amount” and such revolving facility, the “Revolving Facility” and the loans under such Revolving Facility, the “Revolving Loans”) in an amount equal to such Revolving Lender’s pro rata share of an aggregate $65 million (the aggregate revolving commitments for all Revolving Lenders, as reduced from time to time in accordance with the terms hereof, the “Maximum Revolving Commitments”).  In accordance with the Plan, but subject to the required Excess Cash sweep on the Closing Date, the Revolving Facility shall be secured pari passu with the Term Loan A Facility and the Term Loan B Facility on a “first-out” basis.  
(b)   Term Loan A Facility. A first lien “second-out” term loan facility in an aggregate principal amount equal to up to $65 million (the “Term Loan A Facility,” the loans thereunder, the “Tranche A Term Loans” and the Lenders thereunder, the “Term Loan A Lenders”).  Pursuant to the Plan, the DIP Electing Lenders, as part of the treatment of their obligations under the Plan, shall become Term Loan A Lenders on the Plan Effective Date in respect of Tranche A Term Loans deemed made by such Term Loan A Lenders on the Plan Effective Date as “roll-up” paper (or similar) in an amount equal to the lesser of (i) such Term Loan A Lender’s Revolving Commitment Amount and (ii) such Term Loan A Lender’s Commitment in respect of New Money Loans (as such terms are defined in the Agreement).  The Term Loan A Facility shall be secured in a manner pari passu with the Revolving Facility on a “second-out” basis.

(c)   Term Loan B Facility. A first lien “last-out” term loan facility in an aggregate principal amount equal to $350 million minus the amount of the Term Loan A Facility (the “Term Loan B Facility,” the loans thereunder, the “Tranche B Term Loans” and the Lenders thereunder, the “Term Loan B Lenders”).  Pursuant to the Plan, the Prepetition Lenders, as part of the treatment of their obligations under the Plan, shall become Term Loan B Lenders on the Plan Effective Date in respect of Tranche B Term Loans deemed made by such Term Loan B Lenders on the Plan Effective Date as “take-back” paper (or similar) in an amount equal to such Term Loan B Lender’s pro rata share of the amount of the Term Loan B Facility.  The Term Loan B Facility shall be secured in a manner pari passu with the Revolving Facility on a “last-out” basis.

	 
	 

	
			
	 
	Without limiting the payment priority set forth in the mandatory and optional prepayment provisions below, all proceeds of Collateral (as defined below) after the occurrence and during the continuance of an Event of Default shall be allocated first, to pay all amounts outstanding under the Revolving Facility (including, without limitation, interest, principal, fees and cash-collateralization of Letters of Credit (as defined below)), second, to pay amounts outstanding under the Term Loan A Facility and third to pay amounts outstanding under the Term Loan B Facility.
The Revolving Facility will include a sub-facility for standby letters of credit (each, a “Letter of Credit”) in the aggregate principal amount not to exceed the lesser of (x) the Maximum Revolving Commitments, (y) the then-effective Borrowing Base, and (z) $5 million.  For the avoidance of doubt, conditions to effectiveness of the Facilities (“Conditions to Effectiveness of Facilities”) shall include the following: (x) the conditions under the headings “Conditions to Closing” and “Conditions to All Extensions of Credit” below; (y) entry of an order by the Bankruptcy Court confirming the Plan, which shall be in form and substance reasonably satisfactory to the Agents  (the “Confirmation Order”); and (z) the occurrence of the Plan Effective Date. 

Any assignment under the First-Out Facility shall be required to include a proportional amount of both the Revolving Facility and the Term Loan A Facility.

	Amortization:
	 
	There shall be no amortization of Revolving Loans or Tranche B Term Loans.

Commencing with the first full fiscal quarter following the Closing Date, the Tranche A Term Loans shall be repaid in equal quarterly installments of 1.00% per annum of the original principal amount of the Tranche A Term Loans on each December 31, March 31, June 30 and September 30, with the balance payable on the Term Loan A Maturity Date.

	
			
	Borrowing Base and Borrowing Base Redetermination:
	 
	Availability under the Revolving Facility shall be subject to a reducing borrowing base (the “Borrowing Base”), which shall be initially determined and periodically redetermined (each such redetermination a “Borrowing Base Redetermination”) and reduced as set forth below.
On the Plan Effective Date, the initial Borrowing Base shall be deemed to equal $65 million.  Thereafter, a Borrowing Base Redetermination shall occur on each April 1 and October 1 commencing on April 1, 2020 (the “First Scheduled Redetermination Date”).
Interim Borrowing Base Redeterminations shall be implemented (a) upon the request of the First-Out Agent or the requisite Lenders (“Lender Wild Card Redetermination”), or (b) after the First Scheduled Redetermination Date, upon the request of the Borrower; provided that (i) that there shall be no Lender Wild Card Redetermination prior to the First Scheduled Redetermination Date, (ii) there shall be no more than one Lender Wild Card Redetermination between each scheduled Borrowing Base Redetermination, and (iii) there shall be no more than one interim Borrowing Base Redetermination made at the request of the Borrower between each scheduled Borrowing Base Redetermination.
In the event the total outstanding balance of the Revolving Loans and other revolving credit exposure is greater than the then-effective Borrowing Base (such excess, a “Borrowing Base Deficiency”) as a result of a Borrowing Base Redetermination, the Borrower shall, within 15 days after notice from First-Out Agent of such Borrowing Base Deficiency, notify First-Out Agent of the Borrower’s election to exercise one, or a combination of, the following options in order to cure such Borrowing Base Deficiency: (a) repay the Borrowing Base Deficiency in a single lump sum for application to the Revolving Loans and other revolving credit exposure or (b) repay the Borrowing Base Deficiency in six monthly installments equal to one-sixth of such Borrowing Base Deficiency with the first such installment due 30 days after notice from First-Out Agent of such Borrowing Base Deficiency and each following installment due 30 days after the preceding installment for application to the Revolving Loans and other revolving credit exposure.

	
			
	Mandatory Borrowing Base Reductions
	 
	Any disposition of Oil and Gas Properties (as defined in the Prepetition Credit Agreement) (including through casualty and condemnation) and the net effect of hedge modifications and early terminations of hedges shall result in an automatic reduction of the Borrowing Base in an amount equal to 75% of the net cash proceeds received by the applicable Loan Party in connection with such disposition, hedge modification or hedge termination, with a corresponding permanent reduction in the Maximum Revolving Commitments.

	 
	 
	 

	Closing Date:
	 
	The Plan Effective Date (the “Closing Date”).

	Use of Proceeds:
	 
	The proceeds of Revolving Loans and other extensions of credit made (as opposed to Revolving Loans, Tranche A Term Loans or Tranche B Term Loans deemed made on the Plan Effective Date) from time to time under the Revolving Facility shall be used to fund ongoing working capital requirements and other general corporate purposes of the Borrower and its subsidiaries.

	Financing Documentation:
	 
	The Facilities will be documented on financing documents that are based on the Prepetition Credit Agreement; provided that (i) such documentation shall contain terms and conditions set forth in this term sheet and such other changes as may be mutually agreed by the Borrower and the Agents and (ii) the Term Loan B Facility shall be documented in a separate credit facility, subject to collateral agency agreement whereby the Collateral Agent is appointed to act as secured party and hold collateral for the benefit of all Facilities (collectively, such documentation, the “Financing Documentation” and the principles described therein, the “Documentation Principles”).

	Collateral:
	 
	The Obligations will be secured by valid and perfected first-priority security interests in and liens on all of the following (collectively, the “Collateral”):

	
			
	 
	 
	(a)   100% of the equity interests of all present and future subsidiaries of any Loan Party (other than equity interests of non-wholly owned subsidiaries to the extent a lien in favor of the Collateral Agent cannot be granted without the consent of one or more third parties (other than the Parent and its subsidiaries and their respective affiliates) of any Loan Party);
(b)   substantially all of the tangible and intangible personal property and assets of the Loan Parties (including, without limitation, all equipment, inventory and other goods, accounts, licenses, contracts, intercompany loans, intellectual property and other general intangibles, deposit accounts, securities accounts and other investment property and cash); and
(c)   Oil and Gas Properties representing not less than (i) 95% of present value of the total proved reserves of the Loan Parties included in the most recent reserve report and (ii) 95% of the total value of all other Oil and Gas Properties of the Loan Parties included in the most recent reserve report, in each case, subject to customary exceptions to be agreed.

	 
	 
	All such security interests in personal property and all liens on Oil and Gas Properties and other real property will be created pursuant to the Financing Documentation and otherwise subject to the Documentation Principles.  Notwithstanding the foregoing, the Collateral shall not include voting capital stock or equity interests of any CFC Holding Company or any non-U.S. subsidiary in excess of 65%.

	Interest Rates:
	 
	At the Borrower’s option, the Revolving Loans will bear interest based on the Base Rate or LIBOR, plus the applicable Revolving Interest Margin (as defined below).  
The interest margin for Revolving Loans (the “Revolving Interest Margin”) shall be based upon utilization of the Borrowing Base (expressed as a percentage of outstanding loans and Letters of Credit under the Revolving Facility divided by the Borrowing Base) according to the following grid:

	 
	 
	(a)   in the case of the Revolving Facility, based upon utilization of the Borrowing Base (expressed as a percentage of outstanding Revolving Loans and Letters of Credit under the Revolving Facility divided by the Borrowing Base) an interest margin according to the following grid:

	 
	 
	

	
			
	 
	 
	

(b)   the Tranche A Term Loans will bear interest based on LIBOR, plus 400 bps;

	 
	 
	(c)   the Tranche B Term Loans will bear interest based on LIBOR, plus 750 bps;

	Fees:
	 
	(a)   Unused Line Fee. The Borrower shall pay to the First-Out Agent, for the account of the Revolving Lenders, an unused line fee (the “Unused Line Fee”) in an amount per annum equal to the rate set forth in the preceding grid on the average daily unused portion of the Maximum Revolving Commitments, payable quarterly in arrears.
All accrued Unused Line Fees will be fully earned and due and payable quarterly in arrears for the account of the Revolving Lenders (other than any defaulting lenders) under the Revolving Facility and will accrue from and after the Closing Date.
(b)   Upfront Fees. The Borrower shall pay to Citi, for the pro rata account of each of the Lenders, upfront fees in an aggregate amount equal to 45 bps of the aggregate amount of the Facilities, which shall be fully earned and will be due and payable in full in cash on the Closing Date. 
(c)   Letter of Credit Fees. The Borrower shall pay to the First-Out Agent for the account of the Revolving Lenders a Letter of Credit fee (due quarterly) equal to the product of the LIBOR Margin and the undrawn amount of each Letter of Credit. In addition, Borrower shall pay to the First-Out Agent for the account of any Issuing Bank a fronting fee equal to the product of 0.375% and the undrawn amount of each Letter of Credit.
(d)   Other Fees. Such other fees set forth in any fee letter (or similar) between the applicable Agent and/or Lead Arranger and the Borrower. 

	Maturity Date:
	 
	(a)   Revolving Facility. The final maturity of the Revolving Facility will occur on the three year anniversary of the Closing Date.
(b)   Term Loan A Facility. The final maturity of the Term Loan A Facility will occur on the three year anniversary of the Closing Date (the “Term Loan A Maturity Date”). 
(c)   Term Loan B Facility. The final maturity of the Term Loan B Facility will occur on the 42-month anniversary of the Closing Date (the “Term Loan B Maturity Date”).

	
			
	Mandatory Prepayments (Revolving Facility):
	 
	(a)   Borrowing Base Redeterminations. The Borrower shall prepay (and/or cash-collateralize Letters of Credit) Revolving Loans and other revolving credit exposure under the Revolving Facility in the amount of any Borrowing Base Deficiency arising or resulting from the circumstances described under the sections titled “Borrowing Base and Borrowing Base Redetermination” as set forth in such sections.
(b)   Borrowing Base Reductions. The Borrower shall prepay (and/or cash-collateralize Letters of Credit) Revolving Loans and other revolving credit exposure under the Revolving Facility in the amount of 100% of any net cash proceeds received by a Loan Party arising or resulting from the circumstances described under the section titled “Mandatory Borrowing Base Reductions” above.
(c)   Excess Cash. The Borrower shall prepay such Revolving Loans (and cash-collateralize Letters of Credit) with 100% of all cash and cash equivalents of the Loan Parties, minus Excluded Funds (to be defined substantially consistent with the Prepetition Credit Agreement), in excess of $25 million on the 15th day of each month (or if the 15th day of the applicable month is not a business day, then the first business day thereafter); provided that if the Borrowing Base is less than $10 million, the preceding $25 million dollar amount shall be increased to $35 million.
All such mandatory prepayments will be applied to prepay outstanding Revolving Loans (without a permanent reduction to the Maximum Revolving Commitments (except as required in connection with any Borrowing Base reduction described in the section titled “Mandatory Borrowing Base Reductions”) and, in the case of clauses (a) and (b) of this section, to cash-collateralize Letters of Credit outstanding under the Revolving Facility.

	
			
	Zero Borrowing Base Effective Date:
	 
	The “Zero Borrowing Base Effective Date” shall occur when (a) the Revolving Loans have been repaid in full, (b) any Letters of Credit outstanding under the Revolving Facility have been cash collateralized in full, and (c) the Borrowing Base has been reduced to zero.
Upon occurrence of the Zero Borrowing Base Effective Date, Revolving Lenders will have the option to exit the Revolving Facility or remain a Revolving Lender under the Revolving Facility. For avoidance of doubt, the Revolving Facility will not terminate solely due to the occurrence of the Zero Borrowing Base Effective Date, but shall remain in effect and shall continue to secure, on a senior secured “first out” basis the obligations of any Loan Party under any hedging agreements entered into between such Loan Party and any counterparty that is a Lender (as defined herein) (or any affiliate thereof), and any Loan Party under any treasury management arrangements between such Loan Party and a Lender (or any affiliate thereof).

	Mandatory Prepayments (Term Loan A Facility):
	 
	After the Revolving Loans have been repaid in full and any Letters of Credit outstanding under the Revolving Facility have been cash collateralized in full, the Tranche A Term Loans under the Term Loan A Facility shall be prepaid, without premium or penalty or LIBOR breakage costs with: 

(a) the proceeds of asset sales, casualty events and indebtedness that is not permitted, pursuant to terms and provisions that are customary for term loans of the type contemplated herein, and 

(b) 100% of all cash and cash equivalents of the Loan Parties, minus Excluded Funds, in excess of (i) if a Borrowing Base is in effect under the Revolving Facility, $25 million, and (ii) if no Borrowing Base is in effect under the Revolving Facility, $35 million, in each case, on the 15th day of each month (or if the 15th day of the applicable month is not a business day, then the first business day thereafter). 

	
			
	Mandatory Prepayments (Term Loan B Facility):
	 
	After indefeasible payment or satisfaction in full, in cash, of (i) the Revolving Loans and other obligations outstanding under the Revolving Facility and cash collateralization (or other arrangement satisfactory to the applicable Issuing Bank) of Letters of Credit outstanding under the Revolving Facility and the occurrence of the Zero Borrowing Base Effective Date, and (ii) the Tranche A Term Loans under the Term Loan A Facility, the Tranche B Term Loans under the Term Loan B Facility shall be prepaid, without premium or penalty or LIBOR breakage costs with:

(a) the proceeds of asset sales, casualty events and indebtedness that is not permitted, pursuant to terms and provisions that are customary for term loans of the type contemplated herein, and 

(b) 100% of all cash and cash equivalents of the Loan Parties, minus Excluded Funds, in excess of $35 million, in each case, on the 15th day of each month (or if the 15th day of the applicable month is not a business day, then the first business day thereafter).

	Optional Prepayments and Commitment Reductions (Revolving Facility):
	 
	Loans under the Revolving Facility may be prepaid at any time, in whole or in part, at the option of the Borrower, upon notice to the First-Out Agent and in minimum principal amounts and in multiples to be agreed upon with the First-Out Agent, without premium or penalty (except LIBOR breakage costs). Any optional prepayment of the Revolving Facility will be applied to prepay outstanding loans and cash-collateralize Letters of Credit outstanding under the Revolving Facility (except as otherwise set forth herein, without a permanent reduction in Maximum Revolving Commitments unless so elected by the Loan Parties).
The unutilized portion of the Maximum Revolving Commitments may be terminated, in whole or in part, at the option of the Borrower, upon notice to the First-Out Agent and in minimum principal amounts and in multiples to be agreed upon with the First-Out Agent.

	
			
	Optional Prepayments (Term Loan A Facility):
	 
	The Tranche A Term Loans may be prepaid, in whole or in part, at the option of the Borrower, upon notice and in minimum principal amounts and in multiples to be agreed upon, without premium or penalty (except LIBOR breakage costs), to the extent such prepayments are permitted by the Financing Documentation; provided that (A) the Revolving Loans have been repaid in full and any Letters of Credit outstanding under the Revolving Facility have been cash collateralized in full, (B) liquidity on a pro forma basis is not less than $35 million and (C) no default or event of default exists or would result from such prepayment.

	Optional Prepayments (Term Loan B Facility):
	 
	The Tranche B Term Loans may be prepaid, in whole or in part, at the option of the Borrower, upon notice and in minimum principal amounts and in multiples to be agreed upon, without premium or penalty (except LIBOR breakage costs), to the extent such prepayments are permitted by the Financing Documentation; provided that (i) the Revolving Facility and the Term Loan A Facility have been indefeasibly repaid in full, the occurrence of the Zero Borrowing Base Effective Date and all commitments under the Term Loan A Facility have terminated, and (ii) prior to the first anniversary of the Closing Date optional prepayments shall be required to be accompanied by the payment of a premium equal to 1.00% of the principal prepaid on such date.

	Conditions to Closing:
	 
	In addition to the conditions set forth in the section titled “Conditions to All Extensions of Credit”, the closing of the Facilities will be subject to satisfaction of typical and customary conditions precedent, including but not limited to the following:

	
			
	 
	 
	1.   the Plan, the Confirmation Order, and any related order of the Bankruptcy Court (and any amendments or modifications to any of the foregoing) shall be in form and substance reasonably satisfactory to the Agents, including approval of the Facilities and releases and exculpations;
2.   the Confirmation Order shall be Final and in full force and effect (as used herein, “Final” shall mean an order or judgement of the Bankruptcy Court, or other court of competent jurisdiction with respect to the subject matter, which has not been reversed, stayed, modified or amended, and as to which (i) the time to appeal, petition for certiorari, or move for reargument or rehearing (other than a request for a rehearing under Federal Rule of Civil Procedure 60(b), which shall not be considered for purposes of this definition) has expired and no appeal or petition for certiorari has been timely taken, or (ii) any timely appeal that has been taken or any petition for certiorari that has been or may be timely filed has been resolved by the highest court to which the order or judgment was appealed or from which certiorari was sought or has otherwise been dismissed with prejudice;
3.   any Order approving the assumption of the same shall not have been stayed, reversed, vacated or otherwise modified in a manner materially adverse to interests of the Agents and the Revolving Lenders or otherwise contrary to this Term Sheet or the Definitive Documentation and all conditions to effectiveness of the Definitive Documentation shall have occurred or been waived by the respective parties thereto having the authority to waive such conditions;
4.   the Plan Effective Date shall have occurred, all conditions precedent to the confirmation and effectiveness of the Plan, as set forth in the Plan, shall have been fulfilled or waived as permitted therein, including, without limitation, all transactions contemplated in the Plan or in the Confirmation Order to occur on the Plan Effective Date shall have been substantially consummated in accordance with the terms thereof and in compliance with applicable law, Bankruptcy Court and regulatory approvals;
5.      no motion, action, or proceeding by any creditor or other party-in-interest to the Chapter 11 Cases that could materially adversely affect the Plan, the consummation of the Plan, the business or operations of the Borrower, or the transactions contemplated by the Facilities or the Plan shall be pending;
6.   the Agents shall have received satisfactory evidence as to the payment in full on the Plan Effective Date of all material administrative expense claims, priority claims and other claims required to be paid upon the Plan Effective Date;
7.   there shall have been no material adverse change in, or a material adverse effect upon, the operations, business, properties or financial condition of the Loan Parties taken as a whole (other than as a result of the events leading up to, directly arising from or direct effects of the commencement or continuance of the bankruptcy proceedings) from the date of the execution and delivery by the Lenders of the Agreement through the Closing Date;
8.   (a) execution and delivery of the Financing Documentation, and (b) the Agents, the Term Loan A Lenders, the Term Loan B Lenders and Revolving Lenders will have received (i) customary legal opinions as to the Loan Parties and the Financing Documentation (including, without limitation, customary opinions of local counsel), (ii) customary evidence of authority and incumbency, customary officers’ certificates, good standing certificates, in each case with respect to the Borrower and the Guarantors, and a solvency certificate for the Borrower and its subsidiaries on a consolidated basis after giving effect to the transactions contemplated by this Term Sheet and the Plan on the Closing Date, and (iii) flood hazard diligence and documentation as required by the federal Flood Disaster Protection Act of 1973 or otherwise in a manner satisfactory to the Lenders;
9.   all documents and filings required to perfect or evidence the Collateral Agent’s first priority security interest in and liens on the Collateral (including, without limitation, all certificates evidencing pledged capital stock or membership or partnership interests, as applicable, with accompanying executed stock powers, all UCC financing statements to be filed in the applicable government UCC filing offices, all intellectual property security agreements to be filed with the United States Copyright Office or the United States Patent and Trademark Office, as applicable, all deposit account and securities account control agreements and all mortgages, deeds of trust and real property filings) shall have been executed and/or delivered and, to the extent applicable, be in proper form for filing;
10.   the holders of claims against the Debtors arising under the Prepetition Facility, including, without limitation, the Obligations (as defined in the Prepetition Credit Agreement) (the “Prepetition Obligations”) shall receive the treatment outlined in this Term Sheet, the Agreement, and the Plan, and the holders of claims against the Debtors under the Agreement shall have received the treatment under the Plan and the commitments thereunder shall have been terminated, and all security interests related thereto shall have either (a) been terminated or (b) been amended and restated to secure the Obligations under the Facilities, in either case concurrently with the Closing Date;
11.   the Agents shall have received an ACORD evidence of insurance certificate evidencing coverage of the Loan Parties and their respective subsidiaries and naming the Collateral Agent in such capacity for the Lenders as additional insured on all liability policies and loss payee on all property insurance policies;
12.   all required governmental and third party consents and approvals shall have been obtained and shall be in full force and effect;
13.   all fees and, to the extent invoiced at least one (1) business day prior to the Closing Date, out-of-pocket expenses, required to be paid on the Closing Date under the Plan in connection with the Facilities, including the reasonable fees and expenses of one primary counsel, one local counsel in each appropriate jurisdiction, and financial advisors to the Agents, and any audit and appraisal fees and expenses, shall have been paid in full in cash;
14.   Debtors shall have paid to the Prepetition Lenders holding Prepetition Revolving Loans all other payments as provided for in any final orders entered in connection with the Agreement and/or use of cash collateral, and the Plan, which amounts shall be applied to the repayment of the Prepetition Obligations in accordance with the Plan;
15.   the Agents shall be in receipt of one or more collateral agency agreements, which shall, subject to the Documentation Principles, contain terms and provisions satisfactory to the Agents in their sole discretion, duly executed and delivered by the Loan Parties, the Collateral Agent and the Agents;
16.   after giving effect to the transactions contemplated hereby and under the Plan on the Closing Date, the Borrower and the other Loan Parties shall not have any Excess Cash, or shall prepay the Revolving Loans on the Closing Date such that, after giving effect to such prepayment, the Borrower and the other Loan Parties do not have any Excess Cash;
17.   if the Plan Effective Date occurs on or after September 1, 2019, the First-Out Agent shall have received a reserve report, dated as of June 30, 2019, prepared by a third party petroleum engineers satisfactory to the First-Out Agent, which report shall use economic parameters (including but not limited to, hydrocarbon prices, escalation rates, discount rate assumptions, and other economic assumptions) acceptable to First-Out Agent; 
18.   the Agents shall have received an updated business plan for the Borrower and its subsidiaries after giving effect to the transactions contemplated hereby and under the Plan on the Closing Date; and
19.   the Borrower and the other Loan Parties (other than the Parent) shall demonstrate minimum liquidity on the Closing Date in an amount to be agreed, after giving effect to the transactions contemplated hereby and under the Plan.

	
			
	Conditions to All Extensions of Credit:
	 
	Each extension of credit under the Facilities will be subject to satisfaction of the following: (a) all of the representations, warranties, and covenants in the Financing Documentation shall be true and correct in all material respects (or if qualified by materiality or material adverse effect, in all respects) as of the date of such extension of credit, or if such representation speaks as of an earlier date, as of such earlier date; (b) no default or event of default under the Facilities shall have occurred and be continuing or would result from such extension of credit; (c) delivery of a customary borrowing notice; and (d) the Loan Parties shall be in compliance with the anti-hoarding requirements, before and after giving effect to such extension of credit.

	Cash Management:
	 
	The Loan Parties and their subsidiaries shall maintain their cash management system as it existed prior to the Closing Date, with such changes as may be mutually agreed by the Agents and the Borrower. Notwithstanding anything to the contrary contained herein, in no event shall any Loan Party be required to make subject to an account control agreement any Excluded Account (all accounts other than (a) Excluded Accounts (as defined below), and (b) accounts not subject to account control agreements pursuant to this sentence, collectively, “Controlled Accounts”).  Each Controlled Account shall be subject to a control agreement, in form and substance satisfactory to the Agent, which agreement shall transfer control of such account to the Agent upon delivery of notice by the Agent to the financial institution maintaining such account.
As used herein, “Excluded Accounts” means with respect to the Borrower or any Subsidiary, each deposit account that is not required to be subject to an account control agreement, to the extent such deposit account is solely (a) a payroll account containing a balance not exceeding the amount of payroll expenses for one payroll period at any time, (b) a tax withholding account, (c) zero balance accounts (other than lockbox accounts, to the extent account control agreements are permitted by the applicable depository bank), (d) a petty cash account containing a balance not exceeding $50,000 per account at any time and not to exceed $250,000 for all such petty cash accounts in the aggregate, or (e) a trust account holding royalty payment and working interest payments solely to the extent constituting property of a third party held in trust.

	Representations and Warranties:
	 
	Subject to the Documentation Principles, the Financing Documentation will contain representations and warranties subject to exceptions are customary for transactions of this type as mutually agreed (which will be applicable to the Loan Parties and their subsidiaries).

	
			
	Affirmative Covenants:
	 
	Subject to the Documentation Principles, the Financing Documentation will contain affirmative covenants subject to limitations and modifications as are customary for transactions of this type as mutually agreed (which will be applicable to the Loan Parties and their subsidiaries).
On or before March 1 and September 1 of each year, commencing with the first such date to occur after the Closing Date, the Borrower shall furnish to the First-Out Agent and the Lenders a reserve report evaluating the proved Oil and Gas Properties of the Loan Parties as of the immediately preceding January 1 and July 1.  The reserve report as of January 1 of each year shall be prepared by one or more approved petroleum engineers.  The July 1 reserve report of each year shall be prepared by or under the supervision of the chief engineer of the Borrower and such reserve report shall be accompanied by customary certifications of such chief engineer and a responsible officer of the Borrower.

	Negative Covenants:
	 
	The Financing Documentation will contain negative covenants subject to exceptions, limitations, baskets and modifications as are reasonably acceptable to the Agents:

	 
	 
	(a)   limitation on liens;
(b)   limitation on disposition of assets;

	 
	 
	(c)   limitation on consolidations, mergers dissolutions and divisions;
(d)   limitation on loans, investments and acquisitions of property;

	
			
	 
	 
	(e)   limitations on indebtedness including, without limitation, a prohibition on the incurrence of third party indebtedness for borrowed money;
(f)     limitations on transactions with affiliates;
(g)   limitations on margin stock;
(h)   limitations on contingent obligations;
(i)   limitations on restricted debt payments;
(j)   limitations on restricted payments other than permitted tax distributions;
(k) limitations on derivative contracts (as set forth in greater detail below);
(l)   limitations on change in business nature, amendments to organization documents, documents governing material indebtedness and corporate structure;
(m)   limitations on accounting changes;
(n)   ERISA compliance; and
(o)   limitations on restrictions affecting the ability of subsidiaries to guarantee the loans, grant liens securing the loans or make distributions to the Borrower.

	Financial Covenants:
	 
	The First-Out Facility will contain the following financial covenants, calculated on a quarterly basis:
Leverage Ratio: consolidated total debt to EBITDA  may not exceed 4.0 to 1.0 as of the last day of any fiscal quarter.  EBITDA shall be calculated at the end of each fiscal quarter using the results of the twelve month period ending with that fiscal quarter end.
Current Ratio: Consolidated current assets divided by consolidated current liabilities may not be less than 1.0 to 1.0 on a fiscal quarter basis.
The Term Loan B Facility will contain the following financial covenant, calculated on the “as of” date of each semi-annual reserve report:
Proved Developed Producing Reserve Coverage Ratio: present value of proved developed producing reserves to consolidated total debt may not be less than 1.0 to 1.0 as of each January 1 and July 1.

	
			
	Hedging Requirements:
	 
	All hedging agreements shall be entered into, on a secured basis, with a Lender (or an affiliate thereof), as the hedging counterparty, or on an unsecured basis with counterparties reasonably acceptable to the Agents; provided that no Borrowing Base value shall be given to any such unsecured hedging agreements. Maximum hedging limitations and minimum hedging requirements to be agreed.

	Events of Default:
	 
	Subject to the Documentation Principles, substantially similar to the events of default in the Prepetition Credit Agreement, except as mutually agreed with the Agent and as otherwise set forth in this Term Sheet, each subject to limitations and modifications as are customary for transactions of this type as mutually agreed (which will be applicable to the Loan Parties and their subsidiaries).

	Amendments and Waivers:
	 
	Amendments and waivers of the Financing Documentation will require the approval of the Lenders holding more than 50% of the applicable Facility, except that the consent of (a) Revolving Lenders holding more than 66-2/3% of the Aggregate Commitments of the Revolving Lenders shall be required to decrease or maintain the Borrowing Base, (b) each Lender under the applicable Facility shall be required in connection with (i) changing any provision specifying the number or percentage of Lenders required to amend or waive any Financing Documentation in respect of the matters described in this clause (b) and clause (c) below and (ii) releasing any guarantor (except in connection with a permitted transaction) or all or substantially all of the Collateral, and (c) each affected Lender shall be required in connection with (i) any increase or extension of its commitment, (ii) the postponement of any scheduled date for payment of principal, interest, fees or other amount payable to such Lender, and (iii) any reduction in the principal amount of any loan, interest rate, fee or other amount payable to such Lender.

	Assignments:
	 
	Any assignment under the First-Out Facility shall be required to include a proportional amount of both the Revolving Facility (if then in effect) and the Term Loan A Facility.

	Expenses and Indemnification:
	 
	Subject to the Documentation Principles, customary for facilities of this type

	Governing Law and Forum:
	 
	New York.

ANNEX A
GUARANTORS
	
		
	Guarantor
	Jurisdiction of Organization

	Vanguard Natural Resources, Inc.
	Delaware

	Vanguard Operating, LLC
	Delaware

	VNR Holdings, LLC
	Delaware

	Escambia Asset Co. LLC
	Delaware

	Escambia Operating Co. LLC
	Delaware

	Eagle Rock Energy Acquisition Co., Inc.
	Delaware

	Eagle Rock Energy Acquisition Co. II, Inc.
	Delaware

	Eagle Rock Upstream Development Company, Inc.
	Delaware

	Eagle Rock Upstream Development Company II, Inc.
	Delaware

	Eagle Rock Acquisition Partnership, L.P.
	Delaware

	Eagle Rock Acquisition Partnership II, L.P.
	Delaware

EXHIBIT K 
TO FIRST AMENDMENT TO DEBTOR-IN-POSSESSION CREDIT AGREEMENT

Exhibit K to First Amendment

(Attached Separately)
EXHIBIT K
PROVISION FOR TRANSFER AGREEMENT
The undersigned (“Transferee”) hereby acknowledges that it has read and understands the Debtor-in-Possession Credit Agreement dated as of April 3, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the  “Agreement”), by and among Vanguard Natural Gas, LLC, Citibank, N.A. as administrative agent, and each of the Lenders from time to time party thereto, including the transferor to the Transferee of any Other Claims (each such transferor, a “Transferor”), and agrees to be bound by the terms and conditions of Section 12.21 thereof to the extent the Transferor was thereby bound.

The Transferee specifically agrees to be bound by the terms and conditions of Section 12.21 of the Agreement, including the agreement to be bound by the vote of the Transferor if such vote was cast before the effectiveness of the Transfer discussed herein.

Date Executed:

______________________________________
Name:
Title:
Address:
E-mail address(es):

	
		
	Aggregate Amounts Beneficially Owned or Managed on Account of:

	Revolving Credit Facility
	 

	Senior Secured Swaps
	 

	Term Loans
	 

	Senior Notes
	 

	Equity Interests

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