Document:

exv10w35

Exhibit 10.35

EXECUTION

SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     THIS SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Second
Amendment”) is entered into as of December 17, 2009, among QUEST RESOURCE CORPORATION, a Nevada
corporation (the “Borrower”), the Guarantors listed on the signature pages hereto, ROYAL BANK OF
CANADA, as Administrative Agent and Collateral Agent for the Lenders parties to the hereinafter
defined Credit Agreement (in such capacities, the “Administrative Agent” and “Collateral Agent,”
respectively), and as the Lender.

     Reference is made to the Second Amended and Restated Credit Agreement dated as of September
11, 2009, as amended by a First Amendment to Second Amended and Restated Credit Agreement dated as
of November 30, 2009 (as amended, the “Credit Agreement”). Unless otherwise defined in this Second
Amendment, capitalized terms used herein shall have the meaning set forth in the Credit Agreement;
all section, exhibit and schedule references herein are to sections, exhibits and schedules in the
Credit Agreement; and all paragraph references herein are to paragraphs in this Second Amendment.

RECITALS

          The Borrower, Guarantors, Administrative Agent and Lender desire to, among other things, enter
into this Second Amendment to amend certain provisions of the Credit Agreement.

     Accordingly, for adequate and sufficient consideration, the parties hereto agree, as follows:

     Paragraph 1. Amendments. Effective as of the Second Amendment Effective Date
(hereinafter defined), the Credit Agreement is amended as follows:

     1.1 Definitions. Section 1.01 of the Credit Agreement is amended as follows:

     (a) The following definitions are amended in their entirety to read as follows:

     “Agreement means this Second Amended and Restated Credit Agreement as amended
by the First Amendment to Credit Agreement and the Second Amendment to Credit
Agreement.”

     “Change of Control means (A) the acquisition by any Person, or two or more
Persons acting in concert, of beneficial ownership (within the meaning of Rule 13d-3
of the SEC under the Securities Exchange Act of 1934) of 50% or more of the
outstanding shares of Voting Stock of Borrower and (B) after the Recombination, a
Parent Change of Control shall occur; provided, however, that the following shall
not be deemed a Change of Control: (i) a merger of Borrower into another entity in
which the other entity is the survivor if Borrower’s stockholders of record as
constituted immediately prior to such acquisition hold more than 50% of the
outstanding shares of Voting Stock of the surviving entity; (ii) actions taken to
effect the Recombination and the Recombination itself; and (iii) any Equity
Offering.”

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     “Excluded Assets means (i) any contracts, agreements or permits as to which the
granting of a security interest in same would cause a default, termination or
penalty thereunder or under any applicable requirement of a Governmental Authority
and (ii) after the Recombination shall also include the equity interests in QELP and
QMLP owned by Borrower.”

     “Material Agreements means the following: (i) Omnibus Agreement (QMLP), (ii)
Tax Sharing Agreement and (iii) Omnibus Agreement (QELP) and any agreement or
agreements entered into in replacement or substitution of any of the forgoing.
“Material Agreement” means each of such Material Agreements.”

     “Reserve Report means a report prepared by an internal petroleum engineer of
the Borrower regarding the Proved Reserves attributable to the Phase I Oil and Gas
Properties, using the criteria and parameters required by and acceptable to the
Society of Petroleum Engineers and incorporating the present cost of appropriate
plugging and abandonment obligations to be incurred in the future, taking into
account any plugging and abandonment fund required to be accrued or established by
Borrower out of cash flow from the Phase I Oil and Gas Properties covered by such
report with respect to such future obligations.”

     (b) The following definitions are inserted alphabetically into Section 1.01 of the Credit
Agreement:

     “Allocated G&A Expense means, for any particular period, the Borrower’s
Allocation Percentage of Post-Recombination Parent’s reasonable general and
administrative expenses.”

     “Allocation Percentage means for each of QELP, QMLP and Borrower, a fraction
(expressed as a percentage, carried out to the second decimal place), the numerator
of which is such Person’s reasonable allocated general and administrative expenses
(with the method of allocation to be established as set forth on Exhibit F and to be
reasonably acceptable to the Lenders) (which expenses will be allocated to such
Person in a manner consistent with QELP’s, QMLP’s and Borrower’s current practices)
and the denominator of which is the sum of all reasonable allocated general and
administrative expenses for each of QELP, QMLP and Borrower.”

     “Bluestem means Bluestem Pipeline, LLC, a Delaware limited liability company.

     “Cherokee means Quest Cherokee, LLC, a Delaware limited liability company.”

     “Parent Change of Control means on and after the Recombination, the acquisition
by any Person, or two or more Persons acting in concert, of beneficial ownership
(within the meaning of Rule 13d-3 of the Securities and Exchange Commission under
the Securities Exchange Act of 1934) of 50% or more of the outstanding shares of
Voting Stock of Post-Recombination Parent; provided, however, that a merger of
Post-Recombination Parent into another entity in which the other entity is the
survivor shall not be deemed a Parent Change of Control if Post-Recombination
Parent’s stockholders of record as constituted immediately prior to such acquisition
hold more than 50% of the outstanding shares of Voting Stock of the surviving
entity;

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provided further, however, that in no event will the issuance of new equity by
the Post-Recombination Parent result in a Parent Change of Control.”

     “Post-Recombination Parent means PostRock Energy Corporation, a Delaware
corporation, formerly known as New Quest Holdings Corp., which will be the sole
shareholder of Borrower after the Recombination.”

     “QELP means Quest Energy Partners, L.P., a Delaware limited partnership, which
after the Recombination will be a Delaware limited liability company known as
PostRock Energy, LLC.”

     “QELP First Lien Credit Facility Administrative Agent means Royal Bank of
Canada, and any successor administrative agent appointed pursuant to the QELP First
Lien Credit Agreement.”

     “QELP First Lien Lenders means each lender party to the QELP First Lien Credit
Agreement, together with their respective permitted successors and assigns.”

     “QELP First Lien Credit Agreement means that certain Amended and Restated
Credit Agreement dated as of November 15, 2007 among Borrower, as initial
co-borrower, Cherokee, as borrower, QELP, as a guarantor, Royal Bank of Canada, as
administrative agent and collateral agent, KeyBank National Association, as
documentation agent, and the lenders party thereto, as amended from time to time.”

     “QELP Second Lien Credit Facility Administrative Agent means Royal Bank of
Canada, and any successor administrative agent appointed pursuant to the QELP Second
Lien Credit Agreement.”

     “QELP Second Lien Lenders means each lender party to the QELP Second Lien
Credit Agreement, together with their respective permitted successors and assigns.”

     “QELP Second Lien Credit Agreement means that certain Second Lien Senior Term
Loan Agreement dated as of July 11, 2008 among Quest Cherokee, as borrower, QELP, as
a guarantor, Royal Bank of Canada, as administrative agent and collateral agent,
KeyBank National Association, as syndication agent, Société Générale, as
documentation agent, and the lenders party thereto, as amended from time to time.”

     “QMLP means Quest Midstream Partners, L.P., a Delaware limited partnership,
which as part of the Recombination will be merged into Quest Midstream Acquisition,
LLC, a Delaware limited liability company that will be renamed PostRock Midstream,
LLC.”

     “QMLP Credit Facility Administrative Agent means Royal Bank of Canada, and any
successor administrative agent appointed pursuant to the QMLP Credit Agreement.”

     “QMLP Lenders means each lender party to the QMLP Credit Agreement, together
with their respective permitted successors and assigns.”

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     “QMLP Credit Agreement means that certain Amended and Restated Credit Agreement
dated as of November 1, 2007 among QMLP and Bluestem, as borrowers, Royal Bank of
Canada, as administrative agent and collateral agent and the lenders party thereto,
as amended from time to time .”

     “Second Amendment Effective Date means December 17, 2009.”

     “Second Amendment to Credit Agreement means that certain Second Amendment to
Second Amended and Restated Credit Agreement dated as of December 17, 2009, among
the Borrower, Guarantors, Royal Bank of Canada, as Administrative Agent, Collateral
Agent and as the Lender.”

     “Tax Sharing Agreement means that certain tax sharing agreement involving
Borrower or any of its Subsidiaries and any one or more of Post-Recombination
Parent, QELP, QMLP and/or any of their Subsidiaries and providing for an agreement
among the parties relating to the allocation of, and payment of, federal income (and
state income, franchise and severance) taxes.”

     “Transfer Payments by a Person means on and after the Recombination, any
payment for services or materials or payment for or on account of (i) costs or
expenses directly incurred by Post-Recombination Parent, and (ii) reimbursement of
costs or expenses including in connection with any contractual arrangement, tax
sharing arrangement, general and administrative overhead sharing arrangement or
other agreement.”

     1.2 Section 7.01. Section 7.01 of the Credit Agreement is amended by deleting the
word “and” at the end of Section 7.01(y) and adding a new Section 7.01(aa) and new Section 7.01(bb)
to read in their entirety as follows:

     “(aa) Liens on 100% of the equity interest in QELP pledged on a first lien
basis to the QELP First Lien Credit Facility Administrative Agent on behalf of the
QELP First Lien Lenders, securing repayment of the Obligations (as defined in the
QELP First Lien Credit Agreement) and pledged on a second lien basis to the QELP
Second Lien Credit Facility Administrative Agent on behalf of the QELP Second Lien
Lenders, securing repayment of the Obligations (as defined in the QELP Second Lien
Credit Agreement); and

     (bb) Liens on 100% of the equity interest in QMLP pledged to the QMLP Credit
Facility Administrative Agent on behalf of the QMLP Lenders, securing repayment of
the Obligations (as defined in the QMLP Credit Agreement).”

     1.3 Section 7.04. Section 7.04 of the Credit Agreement is amended by deleting the word
“and” at the end of Section 7.04(i), inserting the word “and” at the end of Section 7.04(j) and
inserting a new Section 7.04(k) to read in its entirety as follows:

     “(k) After the closing of the Recombination, Indebtedness of the Borrower in
connection with those certain guarantees by Borrower in favor of (A) the QELP First
Lien Credit Facility Administrative Agent on behalf of the QELP First Lien Lenders,
guaranteeing repayment of the Obligations (as defined in the QELP First Lien Credit

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Agreement), (B) the QMLP Credit Facility Administrative Agent on behalf of the
QMLP Lenders, guaranteeing repayment of the Obligations (as defined in the QMLP
Credit Agreement (the guarantees under clauses (A) and (B) being pari passu with one
another)) and (C) the QELP Second Lien Credit Facility Administrative Agent on
behalf of the QELP Second Lien Lenders, guaranteeing repayment of the Obligations
(as defined in the QELP Second Lien Credit Agreement (the guarantee under clause (C)
to be second, junior and subordinate to the guarantee under clauses (A) and (B)).”

     1.4 Section 7.08 of the Credit Agreement is amended in its entirety to read as
follows:

     “7.08 Transfer Payments; Restricted Payments; Distributions and Redemptions.
(a) Prior to the closing of the Recombination, declare or make, directly or
indirectly, any Transfer Payment or Restricted Payment, or incur any obligation
(contingent or otherwise) to do so, except that each Subsidiary may make Transfer
Payments and Restricted Payments to the Borrower and to other Loan Parties.

     (b) After the Recombination none of the Borrower or any Loan Party shall,
directly or indirectly, declare or make any Transfer Payment or Restricted Payment,
or incur any obligation (contingent or otherwise) to do so, except that (i) each
Loan Party may make Transfer Payments and Restricted Payments to the Borrower, (ii)
Borrower may make Transfer Payments to Post-Recombination Parent for direct costs
and expenses incurred by Post-Recombination Parent on its behalf, (iii) Borrower may
make Transfer Payments and Restricted Payments to Post-Recombination Parent in an
amount equal to the Borrower’s Allocation Percentage of Allocated G&A, and (v)
Borrower may make Transfer Payments and Restricted Payments to Post-Recombination
Parent in an amount equal to Borrower’s consolidated income tax liability (excluding
income tax liability associated with the Excluded Recombination Entities)(with the
method of allocation of income tax obligations to be as set forth on Exhibit G and
to be reasonably acceptable to the Lenders).”

     1.5 Section 7.11. Section 7.11 of the Credit Agreement is amended by deleting clause
(v) thereof and substituting the following in lieu thereof:

“(v) after the closing of the Recombination, payments to Post-Recombination Parent
in an amount equal to the taxes allocated to Borrower pursuant to the Tax Sharing
Agreement, (vi) any Transfer Payments permitted under Section 7.08 and (vii) the
provision of gas gathering services by Quest Eastern in the Appalachian region to
QELP and its Subsidiaries.”

     1.6 Section 10.21. A new Section 10.21 is added to the Credit Agreement to read in
its entirety as follows:

     “Section 10.21. Lenders’ Agreement. Each Lender, together
with the Administrative Agent and Collateral Agent agrees, upon closing of the
Recombination, to release, discharge and terminate any Lien against equity of QELP
(or any successor following any merger or conversion) pledged to secure the
Obligations (as defined in this Agreement) in order for Borrower to pledge all such
equity to secure, on a first lien priority basis, Borrower’s guarantee of the
Obligations (as defined in the QELP First Lien Credit Agreement), and on a second
lien priority basis, Borrower’s guarantee of the

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Obligations (as defined in the QELP Second Lien Credit Agreement). Each
Lender, together with the Administrative Agent and Collateral Agent agrees, upon
closing of the Recombination, to release, discharge and terminate any Lien against
equity of QMLP (or any successor following any merger or conversion) pledged to
secure the Obligations (as defined in this Agreement) in order for Borrower to
pledge all such equity to secure, on a first lien priority basis, Borrower’s
guarantee of the Obligations (as defined in the QMLP Credit Agreement).”

     Paragraph 2. Effective Date. This Second Amendment shall not become effective until
the date (such date, the “Second Amendment Effective Date”) the Administrative Agent receives all
of the agreements, documents, certificates, instruments, and other items described below:

     (a) this Second Amendment, executed by the Borrower, the Guarantors, the Administrative and
the Lender;

     (b) a shared general and administrative expense analysis;

     (c) fees and expenses required to be paid pursuant to Paragraph 5 of this Second Amendment, to
the extent invoiced prior to the Second Amendment Effective Date;

     (d) contemporaneous closing of the Fifth Amendment to the QELP First Lien Credit Agreement

     (e) contemporaneous closing of the Eighth Amendment to the QELP Second Lien Credit Agreement;

     (f) contemporaneous closing of the Third Amendment to the QMLP Credit Agreement;

     (g) all documentation relating to the Second Amendment shall be satisfactory to the Lenders,
as evidenced by their execution and delivery to the Administrative Agent of a signed signature page
to this Second Amendment; and

     (h) such other assurances, certificates, documents and consents as the Administrative Agent
may require.

     Paragraph 3. Acknowledgment and Ratification. The Borrower and the Guarantors each (i)
consent to the agreements in this Second Amendment and (ii) agree and acknowledge that the
execution, delivery, and performance of this Second Amendment shall in no way release, diminish,
impair, reduce, or otherwise affect the respective obligations of the Borrower or any Guarantor
under the Loan Documents to which it is a party, which Loan Documents shall remain in full force
and effect, as amended and waived hereby, and all rights thereunder are hereby ratified and
confirmed.

     Paragraph 4. Representations. The Borrower and the Guarantors each represent and
warrant to the Administrative Agent and the Lender that as of the Second Amendment Effective Date
and after giving effect to the waivers and amendments set forth in this Second Amendment (a) all
representations and warranties in the Loan Documents are true and correct in all material respects
as though made on the date hereof, except to the extent that any of them speak to a different
specific date, and (b) no Default or Event of Default exists.

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     Paragraph 5. Expenses. The Borrower shall pay on demand all reasonable costs, fees,
and expenses paid or incurred by the Administrative Agent incident to this Second Amendment,
including, without limitation, Attorney Costs in connection with the negotiation, preparation,
delivery, and execution of this Second Amendment and any related documents, filing and recording
costs, and the costs of title insurance endorsements, if any.

     Paragraph 6. Miscellaneous.

     This Second Amendment is a “Loan Document” referred to in the Credit Agreement. The
provisions relating to Loan Documents in Article X of the Credit Agreement are incorporated in this
Second Amendment by reference. Unless stated otherwise (i) the singular number includes the plural
and vice versa and words of any gender include each other gender, in each case, as appropriate,
(ii) headings and captions may not be construed in interpreting provisions, (iii) this Second
Amendment must be construed, and its performance enforced, under New York law and applicable
federal law, and (iv) if any part of this Second Amendment is for any reason found to be
unenforceable, all other portions of it nevertheless remain enforceable.

     Paragraph 7. Entire Agreement. This Second Amendment represents the final
agreement between the parties about the subject matter of this amendment 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.

     Paragraph 8. Parties. This Second Amendment binds and inures to the benefit of the
Borrower, the Guarantors, the Administrative Agent, the Collateral Agent and the Lender, and their
respective successors and assigns.

     Paragraph 9. Further Assurances. The parties hereto each agree to execute from time to
time such further documents as may be necessary to implement the terms of this Second Amendment.

     Paragraph 10. Release. As additional consideration for the execution, delivery and performance of this Second Amendment
by the parties hereto and to induce the Administrative Agent, the Collateral Agent and the Lender
to enter into this Second Amendment, the Borrower warrants and represents to the Administrative
Agent, the Collateral Agent and the Lender that no facts, events, statuses or conditions exist or
have existed which, either now or with the passage of time or giving of notice, or both, constitute
or will constitute a basis for any claim or cause of action against the Administrative Agent, the
Collateral Agent and the Lender or any defense to (i) the payment of Obligations under the Term
Notes and/or the Loan Documents, or (ii) the performance of any of its obligations with respect to
the Term Notes and/or the Loan Documents. In the event any such facts, events, statuses or
conditions exist or have existed, Borrower unconditionally and irrevocably hereby RELEASES,
RELINQUISHES and forever DISCHARGES Administrative Agent, the Collateral Agent and the Lender, as
well as their predecessors, successors, assigns, agents, officers, directors, shareholders,
employees and representatives, of and from any and all claims, demands, actions and causes of
action of any and every kind or character, past or present, which Borrower may have against any of
them or their predecessors, successors, assigns, agents, officers, directors, shareholders,
employees and representatives arising out of or with respect to (a) any right or power to bring any
claim for usury or to pursue any cause of action based on any claim of usury, and (b) any and all
transactions relating to the Loan Documents occurring prior to the date hereof, including any loss,
cost or damage, of any kind or character, arising out of or in any way connected with or in any way
resulting from the acts, actions or omissions of any of them, and their predecessors,

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successors, assigns, agents, officers,
directors, shareholders, employees and representatives, including any breach of fiduciary duty,
breach of any duty of fair dealing, breach of confidence, breach of funding commitment, undue
influence, duress, economic coercion, conflict of interest, negligence, bad faith, malpractice,
intentional or negligent infliction of mental distress, tortious interference with contractual
relations, tortious interference with corporate governance or prospective business advantage,
breach of contract, deceptive trade practices, libel, slander or conspiracy, but in each case only
to the extent permitted by applicable Law.

     Paragraph 11. Effectiveness of Facsimile Documents and Signatures. This Second
Amendment may be transmitted and/or signed by facsimile. The effectiveness of any such signatures
shall, subject to applicable Law, have the same force and effect as manually-signed originals and
shall be binding on all Loan Parties, the Administrative Agent, the Collateral Agent and the
Lenders. The Administrative Agent may also require that any such documents and signatures be
confirmed by a manually-signed original thereof; provided, however, that the failure to request or
deliver the same shall not limit the effectiveness of any facsimile document or signature.

     Paragraph 12. Execution in Counterparts. This Second Amendment may be executed in any number
of counterparts (and by different parties hereto in different counterparts), each of which when so
executed shall be deemed to be an original and all of which when taken together shall constitute
one and the same agreement..

     The parties hereto have executed this Second Amendment in multiple counterparts to be
effective as of the Second Amendment Effective Date.

Remainder of Page Intentionally Blank

Signature Pages to Follow.

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     IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be duly executed
as of the Second Amendment Effective Date.

	 	 	 	 	 
	 	BORROWER:

QUEST RESOURCE CORPORATION,

as Borrower

 	 
	 	By:  	     /s/ David Lawler 	 
	 	 	     David Lawler 	 
	 	 	     President 	 
	 

     The undersigned, as the Guarantors referred to in the Credit Agreement, as amended by this
Second Amendment, hereby consent to this Second Amendment and hereby confirm and agree that (i) the
Loan Documents (which specifically includes the Guaranty executed by each Guarantor and each
Security Agreement and Mortgage executed by each Guarantor) in effect on the date hereof to which
each are a party are, and shall continue to be, in full force and effect and are hereby confirmed
and ratified in all respects except that, upon the effectiveness of, and on and after the Second
Amendment Effective Date, all references in such Loan Documents to the Credit Agreement shall mean
the Credit Agreement as amended by this Second Amendment, and (ii) such Loan Documents consisting
of Guaranties, Security Agreements, Mortgages, and assignments and all of the collateral described
therein do, and shall continue to, secure the payment by the Borrower of the Obligations under the
Credit Agreement.

	 	 	 	 	 
	 	GUARANTORS:

QUEST OIL & GAS, LLC,

as a Guarantor

 	 
	 	By:  	     /s/ David Lawler 	 
	 	 	     David Lawler, 	 
	 	 	     President 	 
	 
	 	QUEST ENERGY SERVICE, LLC,

as a Guarantor

 	 
	 	By:  	     /s/ David Lawler 	 
	 	 	     David Lawler, 	 
	 	 	     President 	 
	 

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Signature Page 1

 

 

	 	 	 	 	 
	 	QUEST EASTERN RESOURCE, LLC,

as a Guarantor

 	 
	 	By:  	     /s/ David Lawler 	 
	 	 	     David Lawler, 	 
	 	 	     President 	 
	 
	 	QUEST MERGERSUB, INC.

as a Guarantor

 	 
	 	By:  	     /s/ David Lawler 	 
	 	 	     David Lawler, 	 
	 	 	     President 	 
	 

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Signature Page 2

 

 

	 	 	 	 	 	 	 
	 	 	ADMINISTRATIVE AGENT:	 	 
	 
	 	 	 	 	 	 
	 	 	ROYAL BANK OF CANADA,	 	 
	 	 	as Administrative Agent and Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Susan Khokher 	 	 
	 

	 	Name:
	 	
Susan Khokher
	 	 
	 

	 	Title:	 	Manager, Agency 	 	 

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	 	L/C ISSUER AND LENDER:

ROYAL BANK OF CANADA, as a Lender

and L/C Issuer

 	 
	 	By:  	     /s/ Leslie P. Vowell	 
	 	 	     Leslie P. Vowell 	 
	 	 	 	 
	 

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Signature Page 4

 

 

METHODOLOGY FOR DETERMINING ALLOCATED G&A EXPENSE

	Shared G&A Services Allocation Shared G&A Services Allocation November 2009

 

 

	2010 Shared Services Allocation Procedure . G&A is composed of two categories: . Third-party
services that are performed on behalf of and directly billed to individual Quest entities (QRCP,
QELP, & QMLP) . Shared services billed through Quest Energy Services (QES) . d S (QES) . QES shared
services are composed of two components: . Directly allocable expenses, such as: — Expenses
incurred by a QES employee performing a discreet project for a single Quest entity (for example,
airfare for a trip to visit a Quest Midstream only customer) . Shared services costs, such as: —
Salaries of QES employees that perform services for the benefit of multiple Quest entities —
Shared overhead of QES employees (for example, rent/utilities of office space) . Shared services
employee compensation allocations are updated monthly by each QES employee. Shared services
overhead costs are allocated based on a compensation-weighted time allocation of all QES employees
that is updated on a monthly basis . . The forecasted 2010 G&A budget, reflected in the
projections, assumes a 12/31/09 recombination. Therefore, continued professional fees as a result
of the now-forecasted 1st quarter 2010 recombination are not reflected in the current budget (1)

 

 

	Allocation Mechanics Example 1 — A/P and Purchasing 1) QES Accounts Payable (A/P) employees
perform services for each individual Quest entity as well as for the shared services entity (QES)
2) On a monthly basis, each A/P employee allocates the amount of their time they anticipate working
on projects related to each Quest entity identified in Figure 1 below related to each Quest entity
identified in Figure 1 below 3) Non-QES time allocations are grossed up to 100% (for use in
compensation-weighted QES time allocation — see step 4) 4) Final monthly time of A/P employees for
QES allocation is calculated, as sum of Fi 1 N b 2009 Q t A/P & P hi C All W k ht A. Direct
allocation of non-QES overhead B. Allocation of QES overhead based on overall compensation-weighted
monthly time allocation of all QES employees, which is calculated per the 100%-gross up of direct
time allocation (per step 3) Figure 1: November 2009 Quest A/P & Purchasing Compensation Allocation
Worksheet Employee QMLP QELP QRCP QES Name BSP + KPC Cherokee Appalachia Appalachia Other Overhead
QMP QELP QRCP QMLP QELP QRCP QMLP QELP QRCP Employee 1 (Manager) Employee’s Time Allocation % to:
Final Employee’s Time Spent on the Following: Employee’s Time Allocation % to: Convert Non-OKC to
100% for QES Calc 2 3 41 py ( g ) Employee 1 10% 45% 40% 0% 2% 3% 10% 85% 2% 10% 88% 2% 11% 87% 3%
Employee 2 20% 35% 5% 5% 18% 17% 20% 40% 23% 24% 48% 28% 24% 50% 26% Employee 3 20% 50% 10% 10% 5%
5% 20% 60% 15% 21% 63% 16% 21% 63% 16% Employee 4 20% 40% 10% 10% 10% 10% 20% 50% 20% 22% 56% 22%
23% 56% 22% Employee 5 30% 40% 10% 10% 5% 5% 30% 50% 15% 32% 53% 16% 31% 53% 16% Employee 6 65% 5%
0% 25% 2% 3% 65% 5% 27% 67% 5% 28% 66% 7% 28% Employee 7 25% 25% 13% 13% 13% 12% 25% 38% 26% 28%
43% 29% 28% 44% 28% Compensation-Weighted Monthly Time Allocation Average (Excluding Co. 14) 25%
58% 17% 4A 4B (2)

 

 

	Allocation Mechanics Example 2 — Management Team . Compensation of Quest management team and
executive support staff are currently allocated 45%/45%/10% between QMLP, QELP, and QRCP
respectively. Since mid-year 20092009, management efforts have been focused on recombination Per
section 8.12 of the Merger Agreement executed July 2, 2009, “all costs and expenses incurred by the
parties to this Agreement in connection with this Agreement and the transaction contemplated hereby
shall be paid on the basis of 10% by QRCP,, 45% by QELP and 45% by QMLP” . After recombination is
completed or is no longer being pursued, time allocations will be adjusted as needed at direction
of individual employees on a monthly basis Final Employee’s Time Name Allocation %to: Last QMLP
QELP QRCP President & CEO Employee 1 Employee 1 45% 45% 10% 45% 45% 10% Employee 2 45% 45% 10%
Employee 3 45% 45% 10% Employee 4 45% 45% 10% Employee 5 45% 45% 10% Employee 6 45% 45% 10%
Employee 7 45% 45% 10% 7 45% 45% 10% Employee 8 45% 45% 10% (3)

 

 

EXHIBIT F

METHODOLOGY FOR DETERMINING ALLOCATED TAXES

OUTLINE OF TERMS OF TAX SHARING AGREEMENT

     1. Overview. The Tax Sharing Agreement will provide for the allocation and sharing of
income taxes among PostRock Energy Corporation (“Parent”), Quest Energy Partners, LLC and
its subsidiaries (collectively, “QELLC”), Quest Midstream Partners, LLC and its
subsidiaries (collectively “QMLLC”), and Quest Resource Corporation and its subsidiaries
other than QMLLC and QELLC (collectively, “QRC”), for taxable periods beginning on or after
the date of the recombination (“Tax Periods”).

     2. Allocation and Sharing of U.S. Federal Income Taxes. For each Tax Period, Parent
will file a consolidated U.S. federal income tax return which includes the income, gains, losses,
deductions, and credits (“Tax Items”) of each of QRC, QELLC, and QMLLC for such Tax Period.
Each of QRC, QELLC, and QMLLC will pay its respective allocable share of U.S. federal income taxes
to Parent for each Tax Period. Such allocable share shall equal the amount of U.S. federal income
tax that would have been owed to the IRS for such Tax Period by QRC, QELLC, or QMLLC, as the case
may be, determined as if such entity were a C corporation that filed its own separate corporate
return for U.S. federal income tax purposes and by taking into account (i) Tax Items generated by
such entity during such Tax Period which are includible on Parent’s consolidated federal income tax
return and (ii) any net operating losses, net capital losses, or tax credits generated by such
entity in any other Tax Periods (excluding taxable periods ending on or prior to the date of the
recombination) which could have been carried forward to such Tax Period if such entity were a C
corporation that filed its own separate corporate return (and elected to waive any carryback of any
such losses or credits) for U.S. federal income tax purposes for each Tax Period.

     3. Allocation and Sharing of State Income Taxes. In those states where QRC, QELLC, or
QMLLC are included in a combined, unitary or consolidated return filed by Parent, QRC’s, QELLC’s,
or QMLLC’s respective shares of any such state income taxes payable to Parent shall be determined
in a manner similar to that described in the preceding paragraph, but by applying applicable state
tax law (rather than federal tax law) in determining the amount of Tax Items and net operating
loss, tax credit or other tax attribute carryovers.

     4. Payment of Tax Sharing Amounts. Any tax sharing amounts, including estimated
taxes, payable by QRC, QELLC, or QMLLC for a Tax Period under the foregoing provisions shall be
paid to Parent no later than 5 days prior to the date that such taxes are due and payable by Parent
to the applicable taxing authority. In cases where estimated or interim tax payments are made to
Parent for a Tax Period, QRC’s, QELLC’s, and QMLLC’s respective shares of the estimated or interim
tax payments shall be determined in a manner similar to that described in the preceding paragraphs
(but shall be based on estimates for the portions of the Tax Period covered by the estimated or
interim tax payment).

     5. Tax Adjustments. If any adjustment is subsequently made to the Tax Items of QRC,
QELLC, or QMLLC pursuant to an original or amended return, refund claim, audit adjustment or
administrative or judicial decision, QRC’s, QELLC’s, and QMLLC’s respective allocable shares of tax
liability shall be readjusted accordingly and any payments required to conform to such adjustment
shall be made to or by Parent.

Second Amendment to Quest

Resource Corporation Second

Amended and Restated Credit Agreement

Exhibit G Page 1exv10w45

Exhibit 10.45

EXECUTION

GUARANTY

(Subsidiary)

     THIS GUARANTY (this “Guaranty”), dated as of July 16, 2009 but effective as of May 29, 2009,
is made by STP NEWCO, INC., an Oklahoma corporation (the “Guarantor”), in favor of ROYAL BANK OF
CANADA, as administrative agent for the “Secured Parties” as defined in the Credit Agreement
(hereinafter defined).

W I T N E S S E T H:

     WHEREAS, pursuant to that certain Amended and Restated Credit Agreement dated November 15,
2007 (as the same may hereafter be amended, supplemented and restated, the “Credit Agreement”),
among QUEST ENERGY PARTNERS, L.P., a Delaware limited partnership (the “MLP”) QUEST RESOURCE
CORPORATION, a Nevada corporation (“Quest Resource”) and QUEST CHEROKEE, LLC, a Delaware limited
liability company (“Quest Cherokee” and together with Quest Resource, each a “Borrower” and
collectively, the “Borrowers”), the various financial institutions that are, or may from time to
time become, parties thereto (individually a “Lender” and collectively the “Lenders”) and Royal
Bank of Canada, as administrative agent and collateral agent (in its capacity as administrative
agent, the “Administrative Agent”), the Lenders have agreed to make Credit Extensions for the
account of the Borrowers; and

     WHEREAS, as a condition precedent to the making of Credit Extensions under and as defined in
the Credit Agreement, the Guarantor is required to execute and deliver this Guaranty; and

     WHEREAS, the Guarantor has duly authorized the execution, delivery and performance of this
Guaranty; and

     WHEREAS, the Guarantor is a wholly owned subsidiary of the MLP; and

     WHEREAS, it is in the best interests of the Guarantor to execute this Guaranty inasmuch as the
Guarantor will derive substantial direct and indirect benefits from the extensions of credit made
from time to time to or for the account of the Borrowers.

     NOW THEREFORE, for good and valuable consideration, the receipt of which is hereby
acknowledged, and in order to induce the Lenders to make Credit Extensions to the Borrowers
pursuant to the Credit Agreement by fulfilling the requirements of the Credit Agreement, the
Guarantor agrees, for the benefit of each Lender, as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1 Certain Terms. The following capitalized terms when used in this Guaranty,
including its preamble and recitals, shall have the following meanings (such definitions to be
equally applicable to the singular and plural forms thereof):

     "Administrative Agent” is defined in the first recital.

Page 1

 

     "Borrower” and “Borrowers” is defined in the first recital.

     "Commitments” means each Commitment as defined in the Credit Agreement.

     "Credit Extensions” means each Credit Extension as defined in the Credit Agreement.

     "Guarantor” is defined in the preamble.

     "Guaranty” is defined in the preamble.

     "Lenders” is defined in the first recital.

     "Loan Documents” means the Loan Documents as defined in the Credit Agreement.

     "Note” means each Revolving Note as defined in the Credit Agreement.

     "Obligations” means the Obligations as defined in the Credit Agreement.

     "Obligor” means the Borrowers or any other Person (other than the Administrative Agent or any
Lender) obligated under any Loan Document.

     "Required Lenders” means the Required Lenders as defined in the Credit Agreement.

     "Taxes” is defined in clause (a) of Section 2.7.

     "UCC” means the Uniform Commercial Code as in effect in the State of New York.

     SECTION 1.2 Credit Agreement Definitions. Unless otherwise defined herein or the
context otherwise requires, capitalized terms used in this Guaranty, including its preamble and
recitals, have the meanings provided in the Credit Agreement,

     SECTION 1.3 UCC Definitions. Unless otherwise defined herein or the context otherwise
requires, terms for which meanings are provided in the UCC are used in this Guaranty, including its
preamble and recitals, with such meanings.

ARTICLE II

GUARANTY PROVISIONS

     SECTION 2.1 Guaranty. The Guarantor hereby absolutely, unconditionally, and
irrevocably (1) guarantees the full and punctual payment when due, whether at stated maturity, by
required prepayment, declaration, acceleration, demand or otherwise, of all Obligations of the
Borrowers and each other Obligor now or hereafter existing under each of the Credit Agreement, the
Notes and each other Loan Document to which the Borrowers or such other Obligor is or may become a
party, whether for principal, interest, fees, expenses or otherwise (including all such amounts
which would become due but for the operation of the automatic stay under Section 362(a) of the
United States Bankruptcy Code, 11 U.S.C. §362(a), and the operation of Sections 502(b) and 506(b)
of the United States Bankruptcy Code, 11 U.S.C. §502(b) and §506(b)), and (2) indemnifies and holds
harmless each Lender and each holder of a Note for any and all costs and expenses (including
reasonable attorney’s fees and expenses) incurred by such Lender or such holder, as the case may
be, in enforcing any rights under this Guaranty; provided however, that the Guarantor shall be
liable under this Guaranty for the maximum amount of such liability

Page 2

 

that can be hereby incurred without rendering this Guaranty, as it relates to the Guarantor,
voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for
any greater amount. This Guaranty constitutes a guaranty of payment when due and not of collection,
and the Guarantor specifically agrees that it shall not be necessary or required that any Lender or
any holder of any Note exercise any right, assert any claim or demand or enforce any remedy
whatsoever against the Borrowers or any other Obligor (or any other Person) before or as a
condition to the obligations of the Guarantor hereunder.

     SECTION 2.2 Acceleration of Guaranty. The Guarantor agrees that, in the event of the
occurrence of any event of the type described in Section 8.01(f) of the Credit Agreement, with
respect to the Borrowers, any other Obligor or the Guarantor, and if such event shall occur at a
time when any of the Obligations may not then be due and payable, the Guarantor will pay to the
Lenders forthwith the full amount which would be payable hereunder by the Guarantor if all such
Obligations were then due and payable.

     SECTION 2.3 Guaranty Absolute, etc. This Guaranty shall in all respects be a
continuing, absolute, unconditional and irrevocable guaranty of payment, and shall remain in full
force and effect until all Obligations (other than contingent indemnity obligations) of the
Borrowers and each other Obligor have been paid in full (or, in the case of L/C Obligations, Cash
Collateralized), all obligations of the Guarantor hereunder shall have been paid in full, all
Commitments shall have terminated and, except as provided in Section 10.01(e) of the Credit
Agreement, all Lender Hedging Agreements have terminated. The Guarantor may not rescind or revoke
its obligations hereunder. The Guarantor guarantees that the Obligations of the Borrowers and each
other Obligor will be paid strictly in accordance with the terms of the Credit Agreement and each
other Loan Document under which they arise, regardless of any law, regulation or order now or
hereafter in effect in any jurisdiction affecting any of such terms or the rights of any Lender or
any holder of any Note with respect thereto. The liability of the Guarantor under this Guaranty
shall be absolute, unconditional and irrevocable irrespective of: (1) any lack of validity,
legality or enforceability of the Credit Agreement, any Note or any other Loan Document; (2) the
failure of any Lender or any holder of any Note (a) to assert any claim or demand or to enforce any
right or remedy against the Borrowers, any other Obligor or any other Person (including any other
guarantor) under the provisions of the Credit Agreement, any Note, any other Loan Document or
otherwise, or (b) to exercise any right or remedy against any other guarantor of, or collateral
securing, any Obligations of the Borrowers or any other Obligor; (3) any change in the time, manner
or place of payment of, or in any other term of, all or any of the Obligations of the Borrowers or
any other Obligor, or any other extension, compromise or renewal of any Obligations of the
Borrowers or any other Obligor; (4) any reduction, limitation, impairment or termination of any
Obligations of the Borrowers or any other Obligor for any reason, including any claim of waiver,
release, surrender, alteration or compromise, and shall not be subject to (and the Guarantor hereby
waives any right to or claim of) any defense or setoff, counterclaim, recoupment or termination
whatsoever by reason of the invalidity, illegality, nongenuineness, irregularity, compromise,
unenforceability of, or any other event or occurrence affecting, any Obligations of the Borrowers,
any other Obligor or otherwise; (5) any amendment to, rescission, waiver, or other modification of,
or any consent to departure from, any of the terms of the Credit Agreement, any Note or any other
Loan Document; (6) any addition, exchange, release, surrender or non-perfection of any collateral,
or any amendment to or waiver or release or addition of, or consent to departure from, any other
guaranty, held by any Lender or any holder of any Note securing any of the Obligations of the
Borrowers or any other Obligor; (7) the insolvency or bankruptcy of, or similar event affecting,
the Borrowers or any other Obligor; or (8) any other circumstance which might otherwise constitute
a defense available to, or a legal or equitable discharge of, the Borrowers, any other Obligor, any
surety or any guarantor. The Guarantor waives all rights and defenses which may arise with respect
to any of the
foregoing, and the Guarantor waives any right to revoke this Guaranty with respect to future
indebtedness.

Page 3

 

     SECTION 2.4 Reinstatement. The Guarantor agrees that this Guaranty shall continue to
be effective or be reinstated, as the case may be, if at any time any payment (in whole or in part)
of any of the Obligations is rescinded or must otherwise be restored by any Lender or any holder of
any Note, upon the insolvency, bankruptcy or reorganization of the Borrowers, any other Obligor or
otherwise, all as though such payment had not been made.

     SECTION 2.5 Waiver, etc. The Guarantor hereby waives promptness, diligence, notice
of acceptance and any other notice with respect to any of the Obligations of the Borrowers or any
other Obligor and this Guaranty and any requirement that the Administrative Agent, any other Lender
or any holder of any Note protect, secure, perfect or insure any security interest or Lien, or any
property subject thereto, or exhaust any right or take any action against the Borrowers, any other
Obligor or any other Person (including any other guarantor) or entity or any collateral securing
the Obligations of the Borrowers or any other Obligor, as the case may be.

     SECTION 2.6 Waiver of Subrogation. Until the Obligations are paid in full, all
Commitments have terminated and all Lender Hedging Agreements have terminated (except as provided
in Section 10.01(e) of the Credit Agreement), the Guarantor shall not enforce or exercise any claim
or other rights which it may now or hereafter acquire against the Borrowers or any other Obligor
that arise from the existence, payment, performance or enforcement of the Guarantor’s obligations
under this Guaranty or any other Loan Document, including any right of subrogation, reimbursement,
exoneration, or indemnification, any right to participate in any claim or remedy of the Lenders
against the Borrowers or any other Obligor or any collateral which the Administrative Agent now has
or hereafter acquires, whether or not such claim, remedy or right arises in equity, or under
contract, statute or common law, including the right to take or receive from the Borrowers or any
other Obligor, directly or indirectly, in cash or other property or by set-off or in any manner,
payment or security on account of such claim or other rights. If any amount shall be paid to the
Guarantor in violation of the preceding sentence, such amount shall be deemed to have been paid to
the Guarantor for the benefit of, and held in trust for, the Lenders, and shall forthwith be paid
to the Administrative Agent for the benefit of the Lenders by the Guarantor receiving such payment
to be credited and applied upon the Obligations, whether matured or unmatured. The Guarantor
acknowledges that it will receive direct and indirect benefits from the financing arrangements
contemplated by the Credit Agreement and that the waiver set forth in this Section is knowingly
made in contemplation of such benefits.

     SECTION 2.7 Payments Free and Clear of Taxes, etc. The Guarantor hereby agrees that:

     (a) All payments by the Guarantor hereunder shall be made in accordance with Section 3.01 of
the Credit Agreement free and clear of and without deduction for any and all present or future
taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges, and
all liabilities with respect thereto; excluding, in the case of the Administrative Agent and each
Lender, taxes imposed on or measured by its net income (including any franchise taxes imposed on or
measured by its net income), by the jurisdiction (or any political subdivision thereof) under the
Laws of which the Administrative Agent or such Lender, as the case may be, is organized or
maintains its Lending Office (all such non-excluded taxes, duties, levies, imposts, deductions,
assessments, fees, withholdings or similar charges, and liabilities being hereinafter referred to
as “Taxes”). In the event that any withholding or deduction from any payment to be made by the
Guarantor hereunder is required in respect of any Taxes pursuant to any applicable law, rule or
regulation, then the Guarantor will (i) pay directly to the relevant authority the full amount
required to be so withheld or deducted; (ii) promptly forward to such Lender an

Page 4

 

official receipt or other documentation satisfactory to such Lender evidencing such payment to
such authority; and (iii) pay to such Lender such additional amount or amounts as is necessary to
ensure that the net amount actually received by such Lender will equal the full amount such Lender
would have received had no such withholding or deduction been required. Moreover, if any Taxes are
directly asserted against any Lender with respect to any payment received by such Lender hereunder,
such Lender may pay such Taxes and the Guarantor will promptly pay such additional amounts
(including, if incurred as a result of the Guarantor’s or the Borrowers’ action, omission or delay,
any penalties, interest or expenses) as is necessary in order that the net amount received by such
Lender after the payment of such Taxes (including any Taxes on such additional amount) shall equal
the amount such Lender would have received had such Taxes not been asserted.

     (b) If the Guarantor fails to pay any Taxes when due to the appropriate taxing authority or
fails to remit to any Lender the required receipts or other required documentary evidence, the
Guarantor shall indemnify such Lender for any incremental Taxes, interest or penalties that may
become payable by such Lender as a result of any such failure.

     (c) Without prejudice to the survival of any other agreement of the Guarantor hereunder, the
agreements and obligations of the Guarantor contained in this Section 2.7 shall survive the payment
in full of the principal of and interest on the Revolving Loan.

     SECTION 2.8 Contribution Agreement. Upon full and final payment of the Obligations,
the Guarantor together with all other guarantors which have made payments upon all or any part of
the Obligations shall be entitled to contribution from all of the other guarantors, to the end that
all such payments upon the Obligations shall be shared among all guarantors who guaranteed such
Obligations in proportion to their respective Net Worths (defined below); provided that the
contribution obligations of each of the guarantors shall be limited to the maximum amount that it
can pay at such time without rendering its contribution obligations voidable under applicable law
relating to fraudulent conveyances or fraudulent transfers. As used in this subsection, the “Net
Worth” of each of the guarantors, means at any time, the remainder of (i) the fair value of such
guarantor’s assets (other than such right of contribution), minus (ii) the fair value of such
guarantor’s liabilities (other than its liabilities under its guaranty of the Obligations).

     SECTION 2.9 Subordination. The Guarantor hereby subordinates and makes inferior to the
Obligations any and all indebtedness now or at any time hereafter owed by the Borrowers or other
Obligor to the Guarantor. The Guarantor agrees that if any Event of Default has occurred and is
continuing under the Credit Agreement, it will not permit the Borrowers to repay such indebtedness
or any part thereof and it will not accept payment from the Borrowers of such indebtedness or any
part thereof without the prior written consent of the Required Lenders. If the Guarantor receives
any such payment without the prior required written consent, the amount so paid shall be held in
trust for the benefit of the Lenders, shall be segregated from the other funds of the Guarantor,
and shall forthwith be paid over to the Administrative Agent to be held by the Administrative Agent
as collateral for, or then or at any time thereafter applied in whole or in part by the
Administrative Agent against, all or any portions of the Obligations, whether matured or unmatured,
in such order as the Administrative Agent shall elect.

Page 5

 

ARTICLE III

MISCELLANEOUS PROVISIONS

     SECTION 3.1 Loan Document. This Guaranty is a Loan Document executed pursuant to the
Credit Agreement and shall (unless otherwise expressly indicated herein) be construed, administered
and applied in accordance with the terms and provisions thereof.

     SECTION 3.2 Releases. At such time as the Revolving Loan shall have been paid in full
(other than contingent indemnity obligations and, with respect to L/C Obligations, if they have
been Cash Collateralized), the Commitments have been terminated, and, subject to Section 10.01(e)
of the Credit Agreement, no Lender Hedging Agreements are outstanding, the Administrative Agent
shall, at the request and expense of the Guarantor following such termination, promptly execute and
deliver to the Guarantor such documents and instruments as the Guarantor shall reasonably request
to evidence termination and release of this Guaranty.

     SECTION 3.3 Administrative Agent and Lenders; Successors and Assigns.

     (a) The Administrative Agent is Administrative Agent for each Lender under the Credit
Agreement. All rights granted to Administrative Agent under or in connection with this Guaranty are
for each Lender’s ratable benefit. The Administrative Agent may, without the joinder of any Lender,
exercise any rights in Administrative Agent’s or Lenders’ favor under or in connection with this
Guaranty. The Administrative Agent’s and each Lender’s rights and obligations vis-a-vis each other
may be subject to one or more separate agreements between those parties. However, the Guarantor is
not required to inquire about any such agreement and is not subject to any terms of it unless the
Guarantor specifically enters into such agreement. Therefore, neither the Guarantor nor its
successors or assigns are entitled to any benefits or provisions of any such separate agreement nor
are they entitled to rely upon or raise as a defense any party’s failure or refusal to comply with
the provisions of any such agreement.

     (b) This Guaranty benefits the Administrative Agent, the Lenders, and their respective
successors and assigns and binds the Guarantor and its successors and assigns. Upon appointment of
any successor Administrative Agent under the Credit Agreement, all of the rights of Administrative
Agent under this Guaranty automatically vest in that new Administrative Agent as successor
Administrative Agent on behalf of Lenders without any further act, deed, conveyance, or other
formality other than that appointment. The rights of the Administrative Agent and the Lenders under
this Guaranty may be transferred with any assignment of the obligations hereby guaranteed pursuant
to and in accordance with the terms of the Credit Agreement. The Credit Agreement contains
provisions governing assignments of the obligations guaranteed under this Guaranty.

     SECTION 3.4 Amendments, etc. No amendment to or waiver of any provision of this
Guaranty, nor consent to any departure by the Guarantor herefrom, shall in any event be effective
unless the same shall be in writing and signed by or on behalf of the party against whom it is
sought to be enforced and is in conformity with the requirements of Section 10.01 of the Credit
Agreement. Each such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given.

Page 6

 

     SECTION 3.5 Addresses for Notices to the Guarantor. All notices and other
communications hereunder to the Guarantor shall be in writing and mailed or delivered to it,
addressed to it at the address set forth below or at such other address as shall be designated by
the Guarantor in a written notice to the Administrative Agent at the address specified in the
Credit Agreement complying as to delivery with the terms of this Section. All such notices and
other communications shall, when mailed, be effective when deposited in the mail, addressed as
aforesaid. Address for notices:

210 Park Avenue, Suite 2750

Oklahoma City, Oklahoma 73102

Facsimile: (405) 600-7722

Telephone: (405) 600-7704

     SECTION 3.6 No Waiver; Remedies. In addition to, and not in limitation of, Section 2.3
and Section 2.5, no failure on the part of any Lender or any holder of a Note to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law.

     SECTION 3.7 Section Captions. Section captions used in this Guaranty are for
convenience of reference only, and shall not affect the construction of this Guaranty.

     SECTION 3.8 Setoff. In addition to, and not in limitation of, any rights of any
Lender or any holder of a Note under applicable law, upon the occurrence and during the continuance
of an Event of Default under or as defined in the Credit Agreement, each Lender and each such
holder shall be entitled to exercise (for the benefit of all Lenders pursuant to Section 10.09 of
the Credit Agreement) any right of offset or banker’s lien against each and every account and other
property or interest that the Guarantor may now or hereafter have with, or which is now or
hereafter in the possession of, any such Lender, to the extent of the full amount of the
Obligations.

     SECTION 3.9 Severability. Wherever possible, each provision of this Guaranty shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Guaranty shall be prohibited by or invalid under such law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Guaranty.

     SECTION 3.10 Governing Law.

     (a) THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE;
PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING
UNDER UNITED STATES FEDERAL LAW.

     (b) THE GUARANTOR AGREES ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR ANY
OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF
NEW YORK OR
OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK AND APPELLATE COURTS FROM ANY
THEREOF, AND BY EXECUTION AND DELIVERY OF THIS GUARANTY, THE GUARANTOR CONSENTS, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. THE GUARANTOR (1)
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION
OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED
THERETO, AND (2) IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE

Page 7

 

AFOREMENTIONED
COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY CERTIFIED MAIL, RETURN
RECEIPT REQUESTED, POSTAGE PREPAID, AT ITS ADDRESS FOR NOTICES DESIGNATED HEREIN. THE GUARANTOR
WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER
MEANS PERMITTED BY THE LAW OF SUCH STATE.

     SECTION 3.11 Waiver of Jury Trial, Etc. THE GUARANTOR HEREBY (a) EXPRESSLY AND
IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
DEALINGS OF THE PARTIES TO THE LOAN DOCUMENTS OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR
THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND THE GUARANTOR HEREBY AGREES AND CONSENTS THAT
ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY,
AND THAT ADMINISTRATIVE AGENT OR ANY LENDER MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE GUARANTOR TO THE WAIVER OF ITS
RIGHT TO TRIAL BY JURY; AND (b) EXPRESSLY AND IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT
PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH ACTION ANY SPECIAL,
EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
DAMAGES; PROVIDED THAT THE WAIVER CONTAINED IN THIS SECTION 3.11 SHALL NOT APPLY TO THE EXTENT THAT
THE PARTY AGAINST WHOM DAMAGES ARE SOUGHT HAS ENGAGED IN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

     SECTION 3.12 Entire Agreement. THIS GUARANTY AND THE OTHER LOAN DOCUMENTS REPRESENT
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK

SIGNATRUES BEGIN ON NEXT PAGE.]

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     IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly executed and delivered
by an officer duly authorized as of the date first above written.

	 	 	 	 	 
	 	STP NEWCO, INC.,

an Oklahoma corporation, as Guarantor

 	 
	 	By:  	/s/ David Lawler
 	 
	 	 	David Lawler, President and Chief Executive Officer 	 
	 	 	 	 
	 

Signature Page- 1

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