Document:

Exhibit 10.1

 

RCF Waiver

 

     

     

    

 

EXECUTION COPY

 

LIMITED WAIVER AGREEMENT

 

This LIMITED WAIVER AGREEMENT, dated as of March
1, 2016 (this “Agreement”), is entered into among the undersigned in connection with the Credit Agreement, dated
as of October 6, 2011 (as amended, supplemented or otherwise modified, the “Credit Agreement”; together with
all related loan documents, the “Loan Documents”), by and among Ultra Resources, Inc., as borrower (the “Borrower”
or “Ultra Resources”), JPMorgan Chase Bank N.A., as administrative agent (the “Agent”), the
lenders from time to time party thereto (the “Lenders”), among others. Capitalized terms used but not defined
herein shall have the meanings given such terms in the Credit Agreement.

 

WHEREAS, Events of Default exist or may occur
during the Forbearance Period (as defined below) under (i) Section 7(b) of the Credit Agreement as a result of the Borrower’s
failure to make interest payments due during the Forbearance Period, (ii) Section 7(d) of the Credit Agreement as a result of the
Borrower’s failure to comply with the Consolidated Leverage Ratio covenant for the fiscal year ended December 31, 2015 and
the fiscal quarter ended March 31, 2016, as required by Section 6.09(a) of the Credit Agreement, (iii) Section 7(d) of the Credit
Agreement as a result of the Borrower’s failure to comply with the Present Value to Funded Indebtedness Ratio covenant for
the fiscal year ended December 31, 2015 and the fiscal quarter ended March 31, 2016, as required by Section 6.09(b) of the Credit
Agreement, (iv) Section 7(e) of the Credit Agreement as a result of the Borrower’s failure to deliver financial statements
without a going concern qualification with respect to the fiscal year ended December 31, 2015, as required by Section 5.01(a) of
the Credit Agreement, (v) Section 7(g) as a result of the Borrower’s failure to make timely payments or provide adequate
assurance of performance under Rockies Express’s Rate Schedule FTS Service Agreement No. 553082 or the General Terms and
Conditions of Rockies Express’s FERC Gas Tariff, (vi) Section 7(f) of the Credit Agreement as a result of the Borrower’s
failure to make principal and/or interest payments in respect of the OpCo Notes (as defined below) and (vii) Section 7(c) as a
result of any misrepresentation as to the absence of Defaults or Events of Default made by the Borrower prior to the date hereof
as a result of any of the foregoing clauses (i) through (vi) (clauses (i) through (vii) collectively, the “Specified Defaults”);

 

WHEREAS, Obligations owing under the Credit
Agreement are guaranteed by Ultra Petroleum Corporation (the “Parent”) under that certain Guaranty Agreement,
dated as of October 6, 2011, by and among the Parent, the Agent and the Lenders (the “Parent Guaranty”), and
UP Energy Corporation (the “Intermediate Parent”; together with Parent, the “Guarantors”)
under that certain Guaranty Agreement, dated as of October 6, 2011, by and among the Intermediate Parent, the Agent and the Lenders
(the “UP Guaranty,” together with the Parent Guaranty, the “Guaranties”);

 

WHEREAS, the Borrower has issued and sold notes
pursuant to (i) the Master Note Purchase Agreement, dated as of March 6, 2008, (ii) the First Supplement to Master Note Purchase
Agreement, dated as of March 5, 2009, (iii) the Second Supplement to Master Note Purchase Agreement, dated as of January 28, 2010
and (iv) the Third Supplement to Master Note Purchase Agreement, dated as of October 12, 2010 (each an “OpCo Note”
and collectively, the “OpCo Notes”; the documents governing the same, the “OpCo Documents”).
Holders of outstanding OpCo Notes are referred to as the “OpCo Noteholders”;

 

    	 	1	 

     

    

 

WHEREAS, the Parent has issued and sold notes
pursuant to (i) the Indenture, dated as of December 12, 2013, and (ii) the Indenture, dated as of September 18, 2014 (each a “HoldCo
Bond” and collectively, the “HoldCo Bonds”; the documents governing the same, the “HoldCo
Documents”). Holders of outstanding HoldCo Bonds are referred to as the “HoldCo Bondholders”;

 

WHEREAS, the Borrower now requests that the
Agent and the Lenders enter into this Agreement to waive, for a limited period of time, the Specified Defaults, and the Agent and
the Lenders are willing to agree to such waiver, on and subject to the terms and conditions set forth in this Agreement;

 

NOW, THEREFORE, in consideration of the mutual
provisions and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.            Definitions
and Interpretation. The rules of interpretation set forth in Section 1.03 to the Credit Agreement shall apply to this Agreement.

 

2.            Acknowledgment
of Specified Defaults and Rights and Remedies. Each of the Borrower and the Guarantors acknowledges, confirms and agrees that
the Specified Defaults have occurred or may occur, and as a result thereof, the Agent and the Lenders have the right, other than
during the Forbearance Period (as defined below), to exercise all such rights and remedies against the Borrower and the Guarantors
as are respectively available to them under the Credit Agreement and the other Loan Documents and under applicable law, all without
notice, except for such notice as may be expressly provided for in the Loan Documents or required by applicable law.

 

3.            Acknowledgments.
Each of the Borrower and the Guarantors hereby acknowledges that, as of the Effective Date (as defined below), the Borrower is
indebted to the Lenders in an aggregate amount equal to the principal amount outstanding under the Credit Agreement in the amount
of $999,000,000.00 (the “Principal Amount Outstanding”), plus accrued but unpaid interest, and costs and expenses
associated with any Loan incurred by any Lender, including, without limitation, professional fees incurred by the Agent, all without
offset, counterclaims or defenses of any kind.

 

4.            Limited
Waivers; Reservation of Rights. Except as expressly provided herein, the Agent and the Lenders have not waived, are not by
this Agreement waiving, and have no intention of waiving, any Defaults or Events of Default which may be continuing on the date
hereof or any Defaults or Events of Default which may occur after the date hereof.

 

5.            Limited
Forbearance Period; Forbearance Termination.

 

(a)          At
the Borrower’s request and in reliance upon the representations, warranties and covenants of the Borrower contained in this
Agreement, and subject to the terms and conditions of this Agreement, the Agent and the Lenders hereby agree to waive, solely during
the Forbearance Period, the Specified Defaults.

 

(b)          For
the purposes of this Agreement, the “Forbearance Period” means the period commencing on the Effective Date (as
defined below) and terminating on the earlier to occur of (i) April 30, 2016, and (ii) the date on which any one or more of the
following events has occurred and is continuing (hereinafter referred to as an “Forbearance Termination Event”):

 

    	 	2	 

     

    

 

(i)          The
occurrence of a Default or Event of Default (other than a Specified Default);

 

(ii)         The
Borrower or the Guarantors shall default in the performance of its obligations under the terms of this Agreement;

 

(iii)        Any
payment shall be made by the Borrower or any of its Affiliates in respect of the OpCo Notes or the HoldCo Bonds (other than payments
for the reimbursement of reasonable professional fees and expenses to the legal and financial advisors of the ad hoc committees
of OpCo Noteholders and HoldCo Bondholders), or the Borrower or any of its Affiliates shall acquire any such indebtedness from
the holders thereof;

 

(iv)        The
Borrower or any of its Affiliates shall grant any collateral, guarantees or any other credit support in respect of the OpCo Notes
or the HoldCo Bonds;

 

(v)         
The Borrower or any of its Affiliates shall purchase, exchange or tender for any of the OpCo Notes or the Holdco Bonds;

 

(vi)        There
shall be any amendment or other modification to any of the OpCo Documents or any of the HoldCo Documents; provided, however,
that the foregoing shall not include any such amendment or other modification that is limited to a waiver or forbearance entered
into by the Borrower or the Guarantors in respect of a default or event of default or potential default or event of default thereunder;

 

(vii)       The
Borrower shall make any payment of dividends or other distributions on the Borrower’s capital stock or any payment of Indebtedness
or other obligations owing to the Guarantors or any of their Subsidiaries (other than the Borrower and its Subsidiaries);

 

(viii)      The
Borrower or any of its Affiliates shall make any loans or advances to the Guarantors or any of their Subsidiaries (other than the
Borrower and its Subsidiaries);

 

(ix)         The
Borrower or any of its Affiliates shall sell lease or transfer any property or assets to the Guarantors or any of their Subsidiaries
(other than the Borrower and its Subsidiaries);

 

(x)          There
shall occur a termination or similar event under the OpCo Noteholder Forbearance (as defined below);

 

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(xi)         OpCo
Noteholders representing 51% or more of the aggregate principal amount of the OpCo Notes, or 51% or more of the principal amount
of any series of OpCo Notes that has a right to accelerate (after giving effect to OpCo Noteholder Forbearance), shall accelerate
the obligations owing in respect of such Notes or otherwise take any action (including, without limitation, commencing any proceeding)
in respect of their remedies to enforce payment rights or other obligations of the Borrower or the Guarantors under the Notes;
or

 

(xii)        Any
holders of HoldCo Bonds shall accelerate the obligations owing in respect of such Notes or otherwise take any action (including,
without limitation, commencing any proceeding) in respect of their remedies to enforce payment rights or other obligations of Parent
or its Subsidiaries under the HoldCo Bonds.

 

The actions referred
to in this clause (b) shall be deemed to have occurred regardless of whether such actions are taken directly or indirectly.

 

(c)          From
and after the date on which the Forbearance Period expires or is terminated following a Forbearance Termination Event, whichever
occurs first and without any notice thereof to or from any Person (said date is hereinafter referred to as the “Forbearance
Termination Date”), (i) any interest payment amounts that came due under Section 7(b) of the Credit Agreement but that
remain unpaid shall be immediately due and payable, and (ii) the Agent’s and the Lenders’ agreement hereunder to waive
the Specified Defaults during the Forbearance Period shall automatically and without further notice or action terminate and be
of no further force and effect, and the Agent and the Lenders shall have the immediate and unconditional right, in their discretion
(subject to applicable provisions of the Credit Agreement, the other Loan Documents and applicable law), to exercise any or all
of their respective rights and remedies under the Credit Agreement, the other Loan Documents and applicable law with respect to
the Specified Defaults and any other Event of Default which may have occurred and be continuing on such date. Except as expressly
set forth herein, the Agent and the Lenders have not waived any of such rights or remedies, and nothing in this Agreement, nor
any delay on the Agent’s and the Lenders’ part after the Forbearance Termination Date in exercising any such rights
or remedies, can be construed as a waiver of any of such rights or remedies. No acceleration of the Loans and other Obligations
shall relieve or discharge the Borrower of its respective duties, covenants and obligations under the Credit Agreement and the
other Loan Documents to which it is a party until all Obligations have been indefeasibly paid and satisfied in full in immediately
available funds.

 

6.            Forbearance
Interest Rate: During the Forbearance Period, the Loans shall accrue interest at the contract rate otherwise applicable to
such Loan, except that unpaid interest that came due and payable during the Forbearance Period shall accrue interest at the rate
applicable thereto plus 2%.

 

7.            Conditions
Precedent to Effectiveness. The effectiveness of this Agreement is subject to the receipt by the Agent of each of the following
or evidence of the satisfaction of each of the following conditions (the date of such satisfaction, the “Effective Date”),
as applicable:

 

(a)          Counterparts
of this Agreement duly executed by the Borrower, the Guarantors and the Lenders;

 

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(b)          A
forbearance agreement, which shall be effective and fully executed by Borrower and OpCo Noteholders representing not less than
51% of the aggregate principal amount of the OpCo Notes, and not less than 51% of the principal amount of each series of OpCo Notes
(the “OpCo Noteholder Forbearance”), which agreement shall be in form and substance satisfactory to the Agent
and the Lenders;

 

(c)          The
Borrower shall have funded advance payment retainers for Mayer Brown LLP and RPA Advisors, each in the amount of $100,000.00, which
advance payment retainers shall be held by each firm, respectively, to pay, or otherwise reimburse, for legal and financial advisory
fees and expenses which may be incurred by the Agent (which funds shall be applied when and in the amount directed by the Agent
against statements for fees and/or other charges at the sole discretion of the Agent); and

 

(d)          The
Borrower shall have paid all reasonable and documented fees, costs and expenses incurred by the Agent in connection with this Agreement
and any transactions contemplated hereby, including any and all outstanding professional fees and expenses of the Agent, as set
forth in statements delivered to the Borrower at least one day prior to the Effective Date.

 

8.            Forbearance
Fee. The Borrower shall pay the Agent, for the pro rata account of the Lenders, a forbearance fee in an aggregate amount
equal to 0.10% of the Principal Amount Outstanding, which fee shall be earned in full and vested on the Effective Date but payable
in cash on the Forbearance Termination Date.

 

9.            Costs
and Expenses. The Borrower shall pay all actual, reasonable and documented out-of-pocket fees, costs and expenses of the Agent’s
professionals within two (2) Business Days of presentment of invoices (which shall occur as frequently as on a weekly basis).

 

10.          Affirmative
Covenants. The Borrower covenants and agrees with the Agent that:

 

(a)          The
Borrower shall, and shall cause its advisors to, participate in update calls or in-person meetings, in each case at the reasonable
request of the Agent, to discuss the operations and financial results of the Borrower and the Guarantors;

 

(b)          The
Borrower shall deliver written notice to the Agent and the Lenders of any notice of any material lien, or other correspondence
threatening the filing of any material lien, upon any property of the Borrower, the Guarantors or any of their Subsidiaries promptly
upon receipt thereof but in no event later than two (2) Business Days after such party has knowledge thereof;

 

(c)          The
Borrower shall permit the Agent, the Lenders and their advisors to visit and inspect its properties (including their books and
records, accounts receivable and inventory, facilities and other business assets) during normal office hours and upon reasonable
advance notice;

 

(d)          The
Borrower will maintain substantially all cash held by it or any Subsidiary at one or more accounts in the name of the Borrower
maintained at a bank that, based upon the Borrower’s reasonable knowledge, does not hold any OpCo Notes or Holdco Bonds (and
which accounts shall be identified in a letter to the Agent’s counsel to be delivered on the date hereof), and shall only
utilize such cash in the ordinary course of business (including, for the avoidance of doubt, payment of the fees and disbursements
of the restructuring professionals retained by the Borrower, the OpCo Noteholders and the HoldCo Bondholders; and

 

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(e)          The
Borrower shall, or shall cause its advisors to, deliver to the Agent and the Lenders the following reporting items:

 

(i)          On
or before March 4, 2016, and on or before every other Thursday thereafter, a 13-week rolling cash flow forecast that shall detail
all sources and uses of cash on a weekly basis and shall describe in reasonable detail any variances from the prior two-week period;

 

(ii)         On
or before March 4, 2016, (i) a detailed analysis of outstanding accounts payable that have resulted or, to the best knowledge of
Borrower, are likely to result in Liens in each case securing an amount in excess of $500,000 on the Oil and Gas Properties of
the Borrower and its Subsidiaries (a “Material Lien”), in each case, in form and substance reasonably satisfactory
to the Administrative Agent and (ii) the Borrower’s 2016 business and operational plan (as approved by the Borrower’s
board of directors);

 

(iii)        Promptly
but, in any event, within two Business Days after the Borrower, the Guarantors or any Subsidiary has knowledge thereof, written
notice of any notice of a Material Lien, or other correspondence threatening the filing of any Material Lien; and

 

(iv)        Simultaneously
with the delivery to any of the OpCo Noteholders, copies of any and all financial reports or other materials delivered pursuant
to the terms of the OpCo Noteholder Forbearance.

 

11.          Release.
In order to induce the Agent and the Lenders to enter into this Agreement, each of the Borrower and the Guarantors, on behalf of
themselves and their respective Related Parties (collectively, the “Releasing Parties”), acknowledges and agrees
that: (a) none of the Releasing Parties has any claim or cause of action against the Agent or any of the Lenders or any of their
respective Related Parties (collectively, the “Released Parties”) relating to or arising out of the Credit Agreement,
the Loan Documents or any agreement entered into in connection therewith; (b) to the actual (and not constructive or imputed) knowledge
of any officer of the Guarantors or the Borrower, none of the Releasing Parties has any offset right, counterclaim or defense of
any kind against any of their respective obligations, Indebtedness or liabilities to the Agent or any of the Lenders; and (c) the
Agent and each of the Lenders has heretofore properly performed and satisfied in a timely manner all of its obligations to the
Borrower and its Subsidiaries under the Credit Agreement and the other Loan Documents to which it is a party. Each of the Guarantors
and the Borrower wishes to eliminate any possibility that any past conditions, acts, omissions, events, circumstances or matters
would impair or otherwise adversely affect any of the Agent’s or the Lenders’ rights, interests, contracts, or remedies
under the Credit Agreement and the other Loan Documents, whether known or unknown, as applicable. Therefore, each of the Borrower
and the Guarantors, on behalf of the Releasing Parties, unconditionally releases, waives and forever discharges (x) any and all
liabilities, obligations, duties, promises or Indebtedness of any kind of the Agent and the Lenders to the Releasing Parties, except
the obligations to be performed by any of them on or after the date hereof as expressly stated in the Credit Agreement and the
other Loan Documents, and (y) all claims, offsets, causes of action, suits or defenses of any kind whatsoever (if any), whether
arising at law or in equity, whether known or unknown, which the Releasing Parties might otherwise have against any of the Released
Parties, in each case under clause (x) or clause (y), (A) whether known or unknown, on account of any past or presently existing
condition, act, omission, event, contract, liability, obligation, Indebtedness, claim, cause of action, defense, circumstance or
matter of any kind, (B) other than any such liabilities, obligations, claims, causes of action or suits resulting from the gross
negligence or willful misconduct of the Agent or any Lender, as determined by a court of competent jurisdiction in a final non-appealable
judgment and (C) relating to or arising out of the Credit Agreement, the Loan Documents or any agreement entered into in connection
therewith. The Released Parties shall not be liable with respect to, and each of the Guarantors and the Borrower hereby waives,
releases and agrees not to sue for, any special, indirect or consequential damages relating to the Credit Agreement and the other
Loan Documents or arising out of activities in connection herewith or therewith (whether before, on or after the date hereof).

 

    	 	6	 

     

    

 

12.          Representations
and Warranties of Borrower. Each of the Borrower and the Guarantors makes the following representations and warranties to the
Agent and each Lender as of each of the date hereof and the Effective Date:

 

(a)          Each
of the representations and warranties by the Borrower and the Guarantors set forth in the Credit Agreement, the Guarantees or in
any other Loan Document are true and correct in all material respects, except to the extent that such representations and warranties
specifically refer to an earlier date in which case they shall have been true and correct in all material respects as of such earlier
date;

 

(b)          Other
than the Specified Defaults, no Default or Event of Default has occurred and is continuing;

 

(c)          The
execution, delivery and performance by the Borrower and the Guarantors of this Agreement and any other documents entered into in
connection therewith are (i) within its power, (ii) have been duly authorized by all necessary limited liability company action,
(iii) do not contravene any provision of its operating agreement, (iv) do not violate any law or regulation, or any order or decree
of any court or Governmental Authority, (v) do not conflict with or result in a material breach or termination of, constitute a
material default under or accelerate or permit the acceleration of any performance required by, the other Loan Documents or any
material indenture, mortgage, deed of trust, lease, agreement or other instrument to which it is a party or by which it or any
of its property is bound, (vi) do not result in the creation or imposition of any Lien upon any of its property and (vii) do not
require any material consent or approval of any Governmental Authority or any other Person; and

 

(d)          each
of this Agreement and any other documents entered into in connection therewith constitutes a legal, valid and binding obligation
of the Borrower and the Guarantors enforceable against them in accordance with its terms, except to the extent limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws affecting creditors’ rights generally, and by general equitable
principles (whether considered in a proceeding in equity or at law).

 

    	 	7	 

     

    

 

13.          Acknowledgement.
Each party hereto acknowledges that the terms of this Agreement shall not constitute a course of dealing among the parties hereto.

 

14.          Ratification
and Release. Each of the Guarantors hereby acknowledges and reaffirms in all respects all of its respective obligations under
the Guaranties giving effect to the foregoing provisions of this Agreement.

 

15.          Counterparts.
This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts and each
such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Action.
Receipt by telecopy or electronic copy of any executed signature page to this Agreement shall constitute effective delivery of
such signature page.

 

16.          Severability.
The illegality or unenforceability of any provision of this Agreement or any instrument or agreement required hereunder shall not
in any way affect or impair the legality or enforceability of the remaining provisions of this Agreement or any instrument or agreement
required hereunder.

 

17.          Governing
Law; Jurisdiction; Notices. THIS AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK (NOT INCLUDING SUCH STATE’S CONFLICTS OF LAWS PROVISION OTHER THAN SECTIONS 5-1401
AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

18.          Waiver
of Jury Trial. THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE
ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, BETWEEN OR AMONG THE AGENT, THE LENDERS AND THE BORROWER ARISING
OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH, THIS AGREEMENT
OR THE TRANSACTIONS RELATED HERETO.

 

19.          Loan
Document. This Agreement shall be deemed to be a Loan Document for all purposes of the Credit Agreement and each other Loan
Document.

 

20.          Section
Titles. The Section titles contained in this Agreement are and shall be without substantive meaning or content of any kind
whatsoever and are not a part of the agreement between the parties hereto.

 

[Signature Pages Follow]

 

    	 	8	 

     

    

 

EXECUTION COPY

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed and delivered by their duly authorized officers as of the day and
year first above written.

 

	 	Ultra Resources, Inc.
	 	 	 
	 	By:	/s/ Michael D. Watford
	 	Name: Michael D. Watford
	 	Title: President and CEO
	 	 	 
	 	By:	/s/ Garland R. Shaw
	 	Name: Garland R. Shaw
	 	Title: Senior Vice President and CFO

 

    	 

     

    

 

	 	ULTRA PETROLEUM CORP.
	 	 	 
	 	By:	/s/ Michael D. Watford
	 	Name: Michael D. Watford
	 	Title: President and CEO
	 	 	 
	 	By:	/s/ Garland R. Shaw
	 	Name: Garland R. Shaw
	 	Title: Senior Vice President and CFO

 

    	 	2	 

     

    

 

	 	UP ENERGY CORPORATION
	 	 	 
	 	By:	/s/ Michael D. Watford
	 	Name: Michael D. Watford
	 	Title: President and CEO
	 	 	 
	 	By:	/s/ Garland R. Shaw
	 	Name: Garland R. Shaw
	 	Title: Senior Vice President and CFO

 

    	 	3Exhibit 10.2

 

MNPA Waiver

 

     

     

    

 

Execution Version

 

 

 

ULTRA RESOURCES, INC.

 

 

 

WAIVER AND AMENDMENT

TO MASTER NOTE PURCHASE AGREEMENT, NOTES
AND

SUPPLEMENTS

 

 

 

Dated
as of March 1, 2016

 

Re:

 

$200,000,000 5.92% Senior Notes, Series 2008-B,
due March 1, 2018

 

$62,000,000 7.31% Senior Notes, Series 2009-A,
due March 1, 2016

 

$173,000,000 7.77% Senior Notes, Series 2009-B,
due March 1, 2019

 

$116,000,000 4.98% Senior Notes, Series 2010-A,
due January 27, 2017

 

$207,000,000 5.50% Senior Notes, Series 2010-B,
due January 28, 2020

 

$87,000,000 5.60% Senior Notes, Series 2010-C,
due January 28, 2022

 

$90,000,000 5.85% Senior Notes, Series 2010-D,
due January 28, 2025

 

$315,000,000 4.51% Senior Notes, 2010 Series
E, due October 12, 2020

 

$35,000,000 4.66% Senior Notes, 2010 Series
F, due October 12, 2022

 

$175,000,000 4.91% Senior Notes, 2010 Series
G, due October 13, 2025

 

 

 

     

     

    

 

ULTRA RESOURCES, INC.

 

$200,000,000 5.92% Senior Notes, Series 2008-B,
due March 1, 2018

$62,000,000 7.31% Senior Notes, Series 2009-A,
due March 1, 2016

$173,000,000 7.77% Senior Notes, Series 2009-B,
due March 1, 2019

$116,000,000 4.98% Senior Notes, Series 2010-A,
due January 27, 2017

$207,000,000 5.50% Senior Notes, Series 2010-B,
due January 28, 2020

$87,000,000 5.60% Senior Notes, Series 2010-C,
due January 28, 2022

$90,000,000 5.85% Senior Notes, Series 2010-D,
due January 28, 2025

$315,000,000 4.51% Senior Notes, 2010 Series
E, due October 12, 2020

$35,000,000 4.66% Senior Notes, 2010 Series
F, due October 12, 2022

$175,000,000 4.91% Senior Notes, 2010 Series
G, due October 13, 2025

 

As of March 1, 2016

 

To each of the Noteholders

Named in Annex 1 hereto:

 

Ladies and Gentlemen:

 

ULTRA RESOURCES, INC.,
a Wyoming corporation (the “Company”), hereby agrees with each of you as follows:

 

		1.	PRIOR ISSUANCE OF NOTES, ETC.

 

The Company is party to
a Master Note Purchase Agreement dated as of March 6, 2008, as supplemented by (i) the First Supplement to Master Note Purchase
Agreement, dated as of March 6, 2009, by and among the Company and the purchasers named in Schedule A thereto (as supplemented,
amended, restated or otherwise modified from time to time (except as otherwise provided herein), the “First Supplement”),
(ii) the Second Supplement to Master Note Purchase Agreement, dated as of January 28, 2010, by and among the Company and the purchasers
named in Schedule A thereto (as supplemented, amended, restated or otherwise modified from time to time (except as otherwise provided
herein), the “Second Supplement”) and (iii) the Third Supplement to Master Note Purchase Agreement, dated as
of October 12, 2010, by and among the Company and the purchasers named in Schedule A thereto (as supplemented, amended, restated
or otherwise modified from time to time (except as otherwise provided herein), the “Third Supplement”, and together
with the First Supplement and the Second Supplement, collectively, the “Supplements”) (as supplemented and as
may be further supplemented, amended, restated or otherwise modified from time to time, the “Master Note Purchase Agreement”).
The Company represents and warrants to each of you that the register kept by the Company for the registration and transfer of the
Notes indicates that each of the Persons named in Annex 1 hereto (collectively, the “Noteholders”) is
currently a holder of the aggregate principal amount of the Notes of each series indicated in such Annex 1.

 

     

     

    

 

		2.	AMENDMENTS;
                                         waiver; FEE; COVENANTS.

 

Subject to the satisfaction
of the conditions set forth in Section 4 of this Agreement, the parties hereto agree with each other that:

 

		2.1.	Overdue Interest; Overdue Principal.

 

(a)          Notwithstanding
any provision to the contrary in the Master Note Purchase Agreement, or any Note or Supplement, in each case as in effect immediately
prior to the execution and delivery of this Agreement, the interest payment (the “Overdue Interest”) in respect
of each of the Notes that would otherwise be due on March 1, 2016, and the payment of principal (the “Overdue Principal”)
in respect of the Series 2009-A Notes that would otherwise be due on March 1, 2016, shall, in each case, be due on the Termination
Date; provided that (i) the Overdue Interest and the Overdue Principal shall each bear interest at the Default Rate applicable
thereto for the period from and including March 1, 2016 to but excluding the date of payment of such Overdue Interest or Overdue
Principal, as the case may be, (ii) the outstanding principal amount of all Notes (other than the Overdue Principal) shall bear
interest as provided in the applicable Ultra Resources Financing Agreements and (iii) the interest accruing pursuant to the foregoing
clause (i) shall be payable on the Termination Date, and after the Termination Date, on demand.

 

		(b)	“Termination Date” means the earlier
of

 

		(i)	April 30, 2016 and

 

		(ii)	the first to occur (without any notice thereof to or from
any Person) of

 

(A)         an
Event of Default (it being understood that no Event of Default shall arise in respect of the Company’s failure to pay Overdue
Interest and Overdue Principal, or in respect of the provisions waived pursuant to Sections 2.2, until the Termination Date),

 

(B)         a
payment of any kind by any Ultra Entity in respect of the Holdco Bonds or the Credit Agreement (in each case, whether for interest,
principal, fees or otherwise), other than payments of reasonable fees and expenses of professional advisors to the holders of Holdco
Bonds or to the lenders under the Credit Agreement,

 

(C)         the
purchase, exchange or tender by any Ultra Entity of any Holdco Bonds or any Indebtedness outstanding under the Credit Agreement,

 

(D)         any
grant of collateral, guarantees or any other credit support by any Ultra Entity in favor of any one or more holders of Holdco Bonds
or Indebtedness under the Credit Agreement,

 

    	 	2	 

     

    

 

(E)         any
payment of dividends or other distributions on the Company’s capital stock or any payment of any Indebtedness or other obligations
owing to the Parent or any subsidiary of the Parent (other than the Company and its Subsidiaries) by the Company or any of its
Subsidiaries,

 

(F)         the
making of any loans or advances to the Parent or any subsidiary of the Parent (other than the Company and its Subsidiaries) by
the Company or any of its Subsidiaries or Affiliates,

 

(G)         the
sale, lease or transfer of any property or assets to the Parent or any subsidiary of the Parent (other than the Company and its
Subsidiaries) by the Company or any of its Subsidiaries or Affiliates,

 

(H)         any
amendment or other modification to (1) the Credit Agreement (other than the Credit Agreement Limited Waiver Agreement) or (2) the
Indenture dated as of December 12, 2013, between the Parent and U.S. Bank National Association, as trustee, or the Indenture dated
as of September 18, 2014, between the Parent and U.S. Bank National Association, as trustee (collectively, the “Holdco
Bond Indentures”) on or after the date hereof; provided, however, the foregoing shall not include any such amendment
or other modification that is limited to a waiver or forbearance entered into by the Company or a Parent Guarantor in respect of
a default or event of default or potential default or event of default under the Credit Agreement or the Holdco Bond Indentures,

 

(I)         the
acceleration of the maturity of any Indebtedness outstanding under the Credit Agreement, or of any Holdco Bonds, or any action
taken by the lenders under the Credit Agreement or the holders of the Holdco Bonds to enforce any payment rights or other obligations
of any Ultra Entity under their respective debt documents,

 

(J)         the
termination, amendment or modification of the forbearance provided for in the Credit Agreement Limited Waiver Agreement, or

 

(K)         any
failure to comply with this Agreement including, without limitation, the failure to pay the costs and expenses referred to in Section
7(a) when due or the failure to comply with the requirements of Section 5.

 

The actions referred to in this clause
(ii) shall be deemed to have occurred regardless of whether such actions are taken directly or indirectly. Any such action to which
the Required Holders consent in writing shall be deemed not to cause the occurrence of the Termination Date.

 

    	 	3	 

     

    

 

(c)          The
5 Business Day grace period provided for in Section 11(b) of the Master Note Purchase Agreement in respect of defaults in the payment
of interest on the Notes shall be deemed to have expired on the Termination Date with respect to the Overdue Interest.

 

		2.2.	Waiver. The Noteholders
hereby waive, until the Termination Date:

 

(a)          compliance
by the Company with Section 10.1 of the Master Note Purchase Agreement with respect to the period of four consecutive fiscal quarters
ending on March 31, 2016;

 

(b)          any
Event of Default arising under Section 11(f) of the Master Note Purchase Agreement as the result of the Company failing to pay
interest due prior to the Termination Date in respect of the Indebtedness outstanding under the Credit Agreement; and

 

(c)          any
Event of Default arising under Section 11(f) of the Master Note Purchase Agreement due to the Company’s failure to make timely
payments or provide adequate assurance of performance under Rockies Express’s Rate Schedule FTS Service Agreement No. 553082
or the General Terms and Conditions of Rockies Express’s FERC Gas Tariff.

 

		2.3.	No Other Amendments; Confirmation.

 

Except as expressly provided
herein, (a) no terms or provisions of any Ultra Resources Financing Agreement are modified or changed by this Agreement, (b) all
terms, conditions and covenants contained in the Ultra Resources Financing Agreements are hereby ratified and shall be and remain
in full force and effect, and (c) the terms of this Agreement shall not operate as a waiver by any Noteholder of, or otherwise
prejudice, any Noteholder’s rights, remedies or powers under any Ultra Resources Financing Agreement or under any applicable
law.

 

		2.4.	Amendment Fee.

 

In consideration of the
amendments and waivers provided for in this Section 2, the Company shall pay to each Noteholder in cash, on the Termination Date,
an amendment fee equal to the result of 10 basis points (0.10%) multiplied by the aggregate principal amount of Notes held by such
Noteholder. The Company agrees that such fee shall be fully earned and vested upon the occurrence of the Effective Date.

 

		2.5.	Restriction on Action.

 

Notwithstanding anything
in this Section 2 or any other provision of this Agreement, solely for purposes of any provision in the Master Note Purchase Agreement
or any Supplement that conditions permission for the Company or any Subsidiary to take or not take any action in the absence of
any Default or Event of Default, Defaults and Events of Default shall be deemed to exist until the Termination Date and such permissions
shall therefore not apply. (For the avoidance of doubt, such permissions shall not apply on and after the Termination Date if any
Default or Event of Default shall actually exist at any such time.)

 

    	 	4	 

     

    

 

		2.6.	Bank Account.

 

The Company will maintain
substantially all cash held by it or any Subsidiary at the Bank Account and only utilize such cash in the ordinary course of business
(including, for the avoidance of doubt, payment of the fees and disbursements of the restructuring professionals retained by the
Company, the Noteholders, the lenders under the Credit Agreement and the holders of the HoldCo Bonds.

 

		3.	DEFINED TERMS.

 

Capitalized terms used
herein and not otherwise defined herein shall have the meanings ascribed to them in the Master Note Purchase Agreement and the
Supplements. In addition, the following capitalized terms used herein shall have the following meanings (or shall have the meanings
ascribed to them in the Sections of this Agreement referenced below):

 

“Agreement”
means this Waiver and Amendment to Master Note Purchase Agreement, Notes and Supplements.

 

“Amendments and
Waivers” has the meaning ascribed to such term in Section 4.

 

“Bank Account”
means one or more accounts in the name of the Company maintained at a bank that, based upon the Company’s reasonable knowledge,
does not hold any Notes, Holdco Bonds or Indebtedness owing under the Credit Agreement.

 

“Company” has
the meaning ascribed to such term in the introductory sentence hereof.

 

“Credit Agreement”
means the Credit Agreement, dated as of October 6, 2011, among the Company, JPMorgan Chase Bank, N.A., as administrative agent,
and certain other banks in their respective capacities as agent, bookrunner and/or arranger, and lender, and, except as otherwise
specifically provided herein, as amended from time to time.

 

“Credit Agreement
Limited Waiver Agreement” means the Limited Waiver Agreement dated March 1, 2016 in respect of the Credit Agreement,
as in effect on the date hereof.

 

“Effective Date”
has the meaning ascribed to such term in Section 4.

 

“Fee Agreement”
means the fee agreement letter, dated as of October 1, 2015, by and among Morgan, Lewis & Bockius LLP, the Parent and the Company.

 

“Fee Agreement Supplement”
means the letter, dated as of January 13, 2016, by and among Morgan, Lewis & Bockius LLP, the Parent and the Company, supplementing
the Fee Agreement.

 

“First Supplement”
has the meaning ascribed to such term in Section 1.

 

    	 	5	 

     

    

 

“FTI Fee Agreement”
means the fee agreement letter, dated as of December 23, 2015, by and among FTI Consulting, Inc., Morgan, Lewis & Bockius LLP,
the Parent and the Company.

 

“Holdco Bond Indentures”
has the meaning ascribed to such term in Section 2.1(b)(ii)(H).

 

“Holdco Bonds”
means, collectively, the Parent’s (i) 5.750% Senior Notes due 2018 and (ii) 6.125% Senior Notes due 2024.

 

“Master Note Purchase
Agreement” has the meaning ascribed to such term in Section 1.

 

“Material Lien”
has the meaning ascribed to such term in Section 5.1(c).

 

“Noteholders”
has the meaning ascribed to such term in Section 1.

 

“Notes”
means, collectively, the Company’s 5.92% Senior Notes, Series 2008-B, due March 1, 2018, 7.31% Senior Notes, Series 2009-A,
due March 1, 2016, 7.77% Senior Notes, Series 2009-B, due March 1, 2019, 4.98% Senior Notes, Series 2010-A, due January 27, 2017,
5.50% Senior Notes, Series 2010-B, due January 28, 2020, 5.60% Senior Notes, Series 2010-C, due January 28, 2022, 5.85% Senior
Notes, Series 2010-D, due January 28, 2025, 4.51% Senior Notes, 2010 Series E, due October 12, 2020, 4.66% Senior Notes, 2010 Series
F, due October 12, 2022 and 4.91% Senior Notes, 2010 Series G, due October 13, 2025.

 

“Overdue Interest”
has the meaning ascribed to such term in Section 2.1.

 

“Overdue Principal”
has the meaning ascribed to such term in Section 2.1.

 

“Parent Guarantors”
means Ultra Petroleum Corp. a Yukon Territory of Canada corporation, and UP Energy Corporation, a Nevada corporation.

 

“Related Parties”
means, with respect to any specified Person, such Person's Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person's Affiliates.

 

“Second Supplement”
has the meaning ascribed to such term in Section 1.

 

“Supplements”
has the meaning ascribed to such term in Section 1.

 

“Termination Date”
has the meaning ascribed to such term in Section 2.1.

 

“Third Supplement”
has the meaning ascribed to such term in Section 1.

 

“Ultra Entity”
means each of the Parent, the Company, any subsidiary of the Parent (including the Company and its Subsidiaries) and any Affiliate
of any of the foregoing.

 

“Ultra Resources
Financing Agreements” means this Agreement, the Master Note Purchase Agreement, the Supplements, the Notes and the Parent
Guaranty.

 

    	 	6	 

     

    

 

		4.	CONDITIONS TO EFFECTIVENESS OF AMENDMENTS AND WAIVERS.

 

The provisions of Section
2.1 and Section 2.2 (the “Amendments and Waivers”) shall become effective as of the date of satisfaction
of all of the following conditions (the “Effective Date”) so long as such date shall occur on or before March
1, 2016:

 

(a)          the
Company and the Noteholders shall have executed and delivered this Agreement;

 

(b)          the
Credit Agreement Limited Waiver Agreement shall be in form and substance satisfactory to the Noteholders, which satisfaction shall
be evidenced by the release of their signature pages hereto, and shall have been executed and delivered by the parties thereto,
and the forbearance provided for thereby shall have become effective; and

 

(c)          the
Company shall have paid all reasonable and documented fees, costs and expenses incurred by the Noteholders in connection with this
Agreement and any transactions contemplated hereby, including any and all outstanding professional fees and expenses of FTI and
Morgan Lewis, as set forth in statements delivered to the Company at least one day prior to the Effective Date.

 

		5.	Information.

 

		5.1.	Information.

 

Prior to the Termination
Date, the Company shall deliver to each Noteholder and FTI Consulting, Inc.:

 

(a)          on
or before March 4, 2016, and every other Thursday thereafter, a 13-week rolling cash flow statement, which cash flow statements
delivered after the Effective Date shall describe in reasonable detail any variances from the cash flow statement required to be
delivered on the preceding Thursday,

 

(b)          on
or before March 4, 2016, the Company’s 2016 business plan model (as approved by the Company’s board of directors),
it being understood that such business plan model need not be in the form of a narrative so long as all the assumptions used in
the preparation thereof are identified in reasonable detail,

 

(c)          on
or before March 4, 2016, a detailed analysis of outstanding accounts payable that have resulted in, or to the best knowledge of
the Company, are reasonably likely to result in, Liens on any Oil and Gas Properties of the Company and any of its Subsidiaries
in each case securing an amount in excess of $500,000 (a “Material Lien”), such analysis to be in form and detail
reasonably satisfactory to FTI Consulting, Inc.,

 

(d)          promptly
but, in any event, within two Business Days after the Company, the Parent Guarantors or any Subsidiary has knowledge thereof, written
notice of any notice of a Material Lien, or other correspondence threatening the filing of any Material Lien, and

 

    	 	7	 

     

    

 

(e)          simultaneously
with the delivery to any of the lenders under the Credit Agreement, copies of any and all financial reports or other materials
delivered pursuant to the terms of the Credit Agreement Limited Waiver Agreement.

 

		5.2.	Periodic Management Calls.

 

The Company shall, and
shall cause its legal, financial and other professional advisors to, participate in periodic update telephone conferences with
the Noteholders and their professional advisors, at the reasonable request of counsel to the Noteholders, during which the Company
and its professional advisors shall report on the Company’s operations and financial results.

 

		6.	representations
                                         and WARRANTIES.

 

To induce the Noteholders
to enter into this Agreement, the Company warrants and represents to each Noteholder, as of the date hereof and, if it shall occur,
as of the Effective Date, as follows (it being agreed, however, that nothing in this Section 6 shall affect any of the warranties
and representations previously made by the Company in or pursuant to the Master Note Purchase Agreement or the Supplements, and
that all of such other warranties and representations, as well as the warranties and representations in this Section 6,
shall survive the effectiveness hereof; all of the representations and warranties set forth in this Section 6 shall be deemed to
be representations and warranties referred to in Section 11(e) of the Master Note Purchase Agreement):

 

		6.1.	No Defaults.

 

No event has occurred and
no condition exists that, upon the execution and delivery of this Agreement and the effectiveness of the Amendments and Waivers,
would constitute a Default or an Event of Default.

 

		6.2.	Due Authorization; Obligations are Enforceable.

 

(a)          Each
of the execution and delivery of this Agreement by the Company and the performance by the Company of all of its obligations hereunder:

 

(i)          is
within the corporate powers of the Company; and

 

(ii)         is
legal and does not conflict with, result in any breach in any of the provisions of, constitute a default under, or result in the
creation of any Lien upon any property of the Company or any of its Subsidiaries under the provisions of, any agreement, charter
instrument, bylaw or other instrument to which the Company or any of its Subsidiaries is a party or by which it or any of its property
may be bound.

 

    	 	8	 

     

    

 

(b)          This
Agreement has been duly authorized by all necessary action on the part of the Company and has been executed and delivered by one
or more duly authorized officers of the Company. This Agreement constitutes, and, after giving effect to the Amendments and Waivers,
each of the other Ultra Resources Financing Agreements (other than the Parent Guaranty) will constitute, a legal, valid and binding
obligation of the Company, enforceable in accordance with its terms, and, after giving effect to the Amendments and Waivers, the
Parent Guaranty will constitute a legal, valid and binding obligation of the Parent Guarantors, enforceable in accordance with
its terms.

 

		6.3.	Compliance with Laws; Other Instruments; Etc.

 

The execution and delivery
by the Company of this Agreement, the performance by the Company of this Agreement and, after giving effect to the Amendments and
Waivers, each of the other Ultra Resources Financing Agreements (other than the Parent Guaranty), and, after giving effect to the
Amendments and Waivers, the performance by the Parent Guarantors of the Parent Guaranty, will not (a) conflict with or result in
a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental
Authority applicable to the Company or the Parent Guarantors, as the case may be, or (b) violate any provision of any statute or
other rule or regulation of any Governmental Authority applicable to the Company or the Parent Guarantors, as the case may be.

 

		6.4.	Governmental Consent.

 

Neither the Company nor
the nature of any of its respective businesses or properties is such so as to require a consent, approval or authorization of,
or filing, registration or qualification with, any Governmental Authority as a condition to the execution and delivery of this
Agreement.

 

		6.5.	No Fees.

 

(a)          None
of the Ultra Entities has paid (or has promised to pay) any amendment fee or any other direct or indirect compensation to any party
to the Credit Agreement (or any Affiliate of any such party) in connection with the Credit Agreement Limited Waiver Agreement except
as provided for therein.

 

(b)          None
of the Ultra Entities has paid (or promised to pay) any amendment fee or any other direct or indirect compensation to the trustee(s)
for, or any holder of, the Holdco Bonds (or any Affiliate of any such holder) for any concession, amendment, restructuring or exchange
in respect of the Holdco Bonds.

 

		6.6.	No Guaranties or Credit Support.

 

(a)          No
Ultra Entity has provided a Guaranty, collateral or other credit support in respect of the Indebtedness outstanding under the Credit
Agreement, except for the unsecured Guaranty of such Indebtedness by the Parent Guarantors.

 

(b)          No
Ultra Entity has provided a Guaranty, collateral or other credit support in respect of the Holdco Bonds, except for the unsecured
obligations of Parent as issuer of the Holdco Bonds.

 

    	 	9	 

     

    

 

		6.7.	Payments on Credit Agreement Debt and Holdco Bonds.

 

(a)          The
aggregate principal amount of the Indebtedness outstanding under the Credit Agreement is $999,000,000. No interest has been prepaid
in respect of such Indebtedness and no interest payment in respect thereof has been made subsequent to February 29, 2016. No Ultra
Entity owns, directly or indirectly, any such Indebtedness.

 

(b)          The
aggregate outstanding principal amount of the Holdco Bonds is $1,300,000,000. No interest has been prepaid in respect of the Holdco
Bonds and the last interest payment in respect of the Holdco Bonds (i) maturing in 2018 was made on or about December 15, 2015
and (ii) maturing in 2024 was made on or about October 1, 2015. No Ultra Entity owns, directly or indirectly, any Holdco Bonds.

 

		6.8.	Bank Account.

 

The name and address of
the bank at which the Bank Account is located, and the amount on deposit therein as of the Effective Date, are set forth in a letter
to Morgan, Lewis & Bockius, LLP and FTI Consulting, Inc. dated as of the date hereof; such amount constitutes substantially
all of the cash held by the Company and its Subsidiaries as of such date.

 

		7.	EXPENSES.

 

(a)          The
Company hereby agrees to pay (i) upon receipt, and in any event no later than 2 Business Days after receipt of an invoice therefor
as set forth in the FTI Fee Agreement (which shall occur as frequently as on a weekly basis), the reasonable and documented fees
and disbursements of FTI Consulting, Inc., as financial advisor to the Noteholders, incurred in connection with the negotiation,
execution and delivery of this Agreement, any amendments to the Ultra Resources Financing Agreements, the restructuring of the
Notes, and any documents related to any of the foregoing and (ii) notwithstanding anything to the contrary in the Fee Agreement,
within 2 Business Days after delivery of an invoice therefor (which shall occur as frequently as on a weekly basis), the reasonable
and documented fees and disbursements of Morgan, Lewis & Bockius LLP, special U.S. counsel to the Noteholders, incurred in
connection with the negotiation, execution and delivery of this Agreement, any amendments to the Ultra Resources Financing Agreements,
the restructuring of the Notes, and any documents related to any of the foregoing.

 

    	 	10	 

     

    

 

		8.	RELEASE.

 

In order to induce the
Noteholders to enter into this Agreement, each of the Company and the Parent Guarantors, on behalf of themselves and their respective
Related Parties (collectively, the “Releasing Parties”), acknowledges and agrees that: (a) none of the Releasing
Parties has any claim or cause of action against any of the Noteholders or any of their respective Related Parties (collectively,
the “Released Parties”) relating to or arising out of any Ultra Resources Financing Agreement or any agreement
entered into in connection therewith; (b) to the actual (and not constructive or imputed) knowledge of any officer of either Parent
Guarantors or the Company, none of the Releasing Parties has any offset right, counterclaim or defense of any kind against any
of their respective obligations, Indebtedness or liabilities to any of the Noteholders; and (c) each of the Noteholders has heretofore
properly performed and satisfied in a timely manner all of its obligations to the Company and its Subsidiaries under the Ultra
Resources Financing Agreements to which it is a party. Each of the Parent Guarantors and the Company wishes to eliminate any possibility
that any past conditions, acts, omissions, events, circumstances or matters would impair or otherwise adversely affect any of the
Noteholders’ rights, interests, contracts, or remedies under the Ultra Resources Financing Agreements, whether known or unknown,
as applicable. Therefore, each of the Company and the Parent Guarantors, on behalf of the Releasing Parties, unconditionally releases,
waives and forever discharges (x) any and all liabilities, obligations, duties, promises or Indebtedness of any kind of the Noteholders
to the Releasing Parties, except the obligations to be performed by any of them on or after the date hereof as expressly stated
in the Ultra Resources Financing Agreements, and (y) all claims, offsets, causes of action, suits or defenses of any kind whatsoever
(if any), whether arising at law or in equity, whether known or unknown, which the Releasing Parties might otherwise have against
any of the Released Parties, in each case under clause (x) or clause (y), (A) whether known or unknown, on account of any past
or presently existing condition, act, omission, event, contract, liability, obligation, Indebtedness, claim, cause of action, defense,
circumstance or matter of any kind, (B) other than any such liabilities, obligations, claims, causes of action or suits resulting
from the gross negligence or willful misconduct of any Noteholder, as determined by a court of competent jurisdiction in a final
non-appealable judgment and (C) relating to or arising out of the Ultra Resources Financing Agreements or any agreement entered
into in connection therewith. The Released Parties shall not be liable with respect to, and each of the Parent Guarantors and the
Company hereby waives, releases and agrees not to sue for, any special, indirect or consequential damages relating to the Ultra
Resources Financing Agreements or arising out of activities in connection herewith or therewith (whether before, on or after the
date hereof).

 

		9.	MISCELLANEOUS.

 

		9.1.	Part of Ultra Resources Financing Agreements, Future References,
etc.

 

This Agreement shall be
construed in connection with and as a part of the Ultra Resources Financing Agreements. Any and all notices, requests, certificates
and other instruments executed and delivered after the execution and delivery of this Agreement may refer to the Ultra Resources
Financing Agreements without making specific reference to this Agreement, but nevertheless all such references shall include this
Agreement unless the context otherwise requires.

 

		9.2.	Governing Law.

 

This
Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the
state of New York excluding choice of law principles of the law of such state that would require the application of the laws of
a jurisdiction other than such state.

 

    	 	11	 

     

    

 

		9.3.	Duplicate Originals, Execution in Counterpart.

 

Two (2) or more duplicate
originals hereof may be signed by the parties, each of which shall be an original but all of which together shall constitute one
and the same instrument. This Agreement may be executed in one or more counterparts, and each set of counterparts that, collectively,
show execution by the Company and each Noteholder shall constitute one duplicate original. Delivery of an electronic copy of this
Agreement executed by any party hereto by email in .PDF format shall be as effective as delivery of an originally executed counterpart
hereof.

 

		9.4.	Binding Effect.

 

This Agreement shall be
binding upon and shall inure to the benefit of the Company and the Noteholders and their respective successors and assigns.

 

		9.5.	Amendments Hereto.

 

(a)          Subject
to Sections 9.5(b) and 9.5(c), this Agreement may only be amended with the written consent of the Company and the
Required Holders except that (i) an amendment that would extend the Termination Date beyond April 30, 2016 (A) shall require the
written consent of the Company and the holders of at least 85% in principal amount of the Notes and (B) except as provided in the
following clause (ii), shall not extend the Termination Date beyond May 27, 2016 (it being understood that there may be successive
extensions so long as the last such extension terminates no later than May 27, 2016) and (ii) an amendment that would extend the
Termination Date beyond May 27, 2016 to a date no later than June 29, 2016 (it being understood that there may be successive extensions
so long as the last such extension terminates no later than June 29, 2016) shall require (A) the written consent of the Company
and the holders of at least 85% in principal amount of the Notes and (B) written confirmation from the Parent, attaching relevant
supporting documents, demonstrating that the Parent has commenced either an exchange offer for the Holdco Bonds or a court-supervised
proceeding with respect to the Parent. For the avoidance of doubt, the consent of each Noteholder affected thereby would be required
for any extension of the Termination Date beyond June 29, 2016.

 

(b)          No
amendment to this Agreement may, directly or indirectly, (i) amend any provision of any Ultra Resources Financing Agreement (other
than this Agreement) which is not, as of the date of this Agreement, proposed to be amended by this Agreement or (ii) amend any
provision of any Ultra Resources Financing Agreement (other than this Agreement) to make it less restrictive on any Ultra Entity,
or less favorable to any Noteholder, than such provision as in effect immediately prior to the date hereof, in each case without
the Noteholder consent required by Section 17 of the Master Note Purchase Agreement and the applicable provisions of any Supplement.
For the avoidance of doubt, (A) no amendment to any of the Sections referred to in Sections 17.1(a) or (b) of the Master Note Purchase
Agreement, and no amendment to the types of provisions referred to in Sections 17.1(x) and (y) of the Master Note Purchase Agreement,
may be effected without the consents referred to therein, except, in each case, as provided in Sections 2.1 and 9.5(a)
of this Agreement and (B) the rights provided for in Sections 10.1(c) and 13 of the Second Supplement and the Third Supplement
shall remain in full force and effect, except, in each case, as provided for in Section 2.2(a) of this Agreement.

 

    	 	12	 

     

    

 

(c)          This
Section 9.5 may not be amended without the consent of all Noteholders.

 

[Remainder of page intentionally left
blank; next page is signature page.]

 

    	 	13	 

     

    

 

If this Agreement is satisfactory
to each of you, please so indicate by signing the applicable acceptance on a counterpart hereof and returning such counterpart
to the Company, whereupon this Agreement shall become binding among the Company and each of you in accordance with its terms.

 

	 	Very truly yours,
	 	 
	 	ULTRA RESOURCES, INC.
	 	 
	 	By: 	/s/ Michael D. Watford
	 	Name: 	Michael D. Watford
	 	Title: 	President and CEO

 

Ratification
and release

 

Each of Ultra Petroleum
Corp. a Yukon Territory of Canada corporation (“Ultra”), and UP Energy Corporation, a Nevada corporation (“UP”),
hereby acknowledge and reaffirm in all respects all of their respective obligations under the Parent Guaranty and confirm that
the Parent Guaranty shall continue in full force and effect after giving effect to the Amendments and Waivers and the other provisions
of the foregoing Agreement.

 

Ultra and UP hereby agree
to the provisions of Section 8 of the foregoing Agreement and further agree that the provisions of Section 9 shall
apply to them and this Ratification and Release, mutatis mutandis.

 

Capitalized terms used in
this Ratification and Release shall have the respective meanings ascribed thereto in the foregoing Agreement.

 

	 	ULTRA PETROLEUM CORP.
	 	 
	 	By: 	/s/ Michael D. Watford
	 	Name: 	Michael D. Watford
	 	Title: 	Chairman, President and CEO
	 	 
	 	UP ENERGY CORPORATION
	 	 
	 	By: 	/s/ Michael D. Watford
	 	Name: 	Michael D. Watford
	 	Title: 	President

 

[Signature Page to Waiver and Amendment to Master
Note Purchase Agreement, Notes and Supplements]

 

     

     

    

 

Accepted and agreed to as of the date hereof.

 

[Signature Page to Waiver and Amendment to Master
Note Purchase Agreement, Notes and Supplements]

 

     

     

    

 

ANNEX 1

 

NOTEHOLDERS AND PRINCIPAL AMOUNTS

 

Annex 1-1

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