Document:

Mortgage, Deed of Trust, Security Agreement., Financing Statement

 Exhibit 10.27.5 
 MORTGAGE, DEED OF TRUST, SECURITY AGREEMENT, 
 FINANCING STATEMENT AND ASSIGNMENT OF
PRODUCTION 
 (THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS) 
 FROM 
 PRIME OFFSHORE L.L.C.

 Taxpayer Identification Number: 76-0688905 
 (Mortgagor and Debtor) 
 TO 
 Matthias Eckenstein, Trustee 
 for the benefit of 
 ARTIC MANAGEMENT CORPORATION 
 (Mortgagee and Secured Party) 
 Effective March 31, 2008 
 For purposes of filing this Deed of Trust as a financing statement, the mailing address of Mortgagor is Attn: Chief Executive Officer, 1 Landmark Square, 11th
 Floor, Stamford, Connecticut 06901; the mailing address of Mortgagee is Attn: Matthias Eckenstein, Solothurnerstrasse 94, CH-4008 Basel, Switzerland. 
 v v v v v v v v v v v
 v v v v v v 
 This instrument, prepared by David G. Dunlap, Jackson Walker L.L.P., 1401 McKinney, Suite 1900, Houston, Texas 77010, 713-752-4200, contains after-acquired property
provisions and covers future advances and proceeds to the fullest extent allowed by applicable law. 
 ATTENTION OF RECORDING OFFICER: This instrument
is a mortgage of both real and personal property and is, among other things, a Security Agreement and Financing Statement under the Uniform Commercial Code. This instrument creates a lien on rights in or relating to lands of Mortgagor which are
described in Exhibit A hereto or in documents described in Exhibit A. 
 RECORDED DOCUMENT SHOULD BE RETURNED TO: 
 JACKSON WALKER L.L.P. 
 1401 McKinney, Suite
1900 
 Houston, Texas 77010 
 Attn.: Donna Gatliff 

 MORTGAGE, DEED OF TRUST, SECURITY AGREEMENT, 
 FINANCING STATEMENT AND ASSIGNMENT OF PRODUCTION 
 (THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS) 
 This Mortgage, Deed of Trust,
Security Agreement, Financing Statement, and Assignment of Production (this “Deed of Trust”) is executed pursuant to and as security for that certain Subordinated Promissory Note dated March 31, 2008 in the face principal
amount of up to $50,000,000 executed by PRIME OFFSHORE L.L.C., a Delaware limited liability company (“Mortgagor”) and payable to ARTIC MANAGEMENT CORPORATION, a corporation incorporated under the laws of Panama
(“Mortgagee”) (the “Initial Note”) evidencing an initial loan and, possibly, one or more additional loans by Mortgagee to Mortgagor and, possibly, one or more additional Subordinated Promissory Notes hereafter
executed by Mortgagor and payable to Mortgagee (the “Additional Notes”, whether one or more, and the Initial Note and the Additional Notes, collectively, the “Notes”). Capitalized terms used but not defined herein
shall have the meanings assigned to such terms in the Notes. 
 Mortgagor, acting
herein by and through its proper officer who has heretofore been duly authorized, the mailing address for which, for purposes hereof, is Attn: Chief Executive Officer, 1 Landmark Square, 11th
 Floor, Stamford, Connecticut 06901, hereby agrees as follows: 
 ARTICLE 1 
 GRANT 
 1.1 Lien. Mortgagor,
for valuable consideration, the receipt of which is hereby acknowledged, and in consideration of the debt and trust hereinafter mentioned, has granted, bargained, sold, conveyed, transferred and assigned, and by these presents does grant, bargain,
sell, convey, transfer and assign to Matthias Eckenstein, Trustee, whose address is Solothurnerstrasse 94, CH-4008 Basel, Switzerland, and his successors and substitutes in trust, as hereinafter provided (the “Trustee”), for the
benefit of Mortgagee, whose mailing address is Attn: Matthias Eckenstein, Solothurnerstrasse 94, CH-4008 Basel, Switzerland, the following described Property: 
 (a) all right, title, and interest, whether now owned and existing or hereafter acquired or arising, of Mortgagor in and to the leases,
rights of way, easements, or other documents described in Exhibit A attached hereto and incorporated herein for all purposes or described or referred to in the documents described in Exhibit A, without regard to any surface acreage
and/or depth limitations set forth in Exhibit A, and all renewals and extensions thereof and all new leases, rights of way, easements, or other documents (i) in which an interest is acquired by Mortgagor after the termination or
expiration of any lease, right of way, easement, or other document described or referred to in Exhibit A, and (ii) that covers all or any part of the Property described in and covered by such terminated or expired lease, right of way,
easement, or other document, to the 

 
extent, and only to the extent, such new leases, rights of way, easements, or other documents may cover such Property (all of the foregoing in this
subsection (a) being the “Leases”); 
 (b) all right, title, and interest, whether now owned and
existing or hereafter acquired or arising, of Mortgagor in and to the lands subject to the Leases or otherwise described or referred to in Exhibit A, without regard to any surface acreage and/or depth limitations set forth in Exhibit A
(the “Lands”), including, without limitation, the oil, gas, mineral, and leasehold estates in and to the Lands; 
 (c) all right, title, and interest, whether now owned and existing or hereafter acquired or arising, of Mortgagor in and to any of the oil, gas, and minerals in, on, or under the Lands, including, without limitation, all contractual rights,
fee interests, leasehold interests, overriding royalty interests, non-participating royalty interests, mineral interests, production payments, net profits interests, or any other interest measured by or payable out of production of oil, gas, or
other minerals from the Leases and/or Lands; 
 (d) all of the foregoing interests of Mortgagor as such interests may be
enlarged by the discharge of any payments out of production or by the removal of any charges or encumbrances; 
 (e) all
right, title, and interest, whether now owned and existing or hereafter acquired or arising, of Mortgagor in, to, and under or derived from any present or future operating, farmout, bidding, pooling, unitization, and communitization agreements,
assignments, and subleases, whether or not described in Exhibit A, to the extent, and only to the extent, that such agreements, assignments, and subleases cover or include any right, title, and interest, whether now owned and existing or
hereafter acquired or arising, of Mortgagor in and to all or any portion of the Leases and/or the Lands, and all units created by any such pooling, unitization, and communitization agreements and all units formed under orders, regulations, rules, or
other official acts of any Governmental Authority having jurisdiction, to the extent and only to the extent that such units cover or include all or any portion of the Leases and/or the Lands; 
 (f) all right, title, and interest, whether now owned and existing or hereafter acquired or arising, of Mortgagor in, to, and under or
derived from all presently existing and future advance payment agreements, oil, casinghead gas, and gas sales, exchange, and processing contracts and agreements, including, without limitation, those contracts and agreements that are described or
referred to in Exhibit A, to the extent, and only to the extent, those contracts and agreements cover or include all or any portion of the Leases and/or the Lands; and 
 (g) all right, title, and interest, whether now owned and existing or hereafter acquired or arising, of Mortgagor in, to, and under or
derived from all existing and future permits, licenses, easements, and similar rights and privileges that relate to or are appurtenant to any of the Leases and/or the Lands. 
  

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 1.2 Security Interest. Mortgagor, for the same consideration, hereby grants to Mortgagee a
continuing security interest in all improvements and all personal Property of any kind or character defined in and subject to the provisions of the Uniform Commercial Code (“UCC”), including, but not limited to, substitutions and
replacements for, accessions to, and the proceeds and products from any and all of such improvements and personal Property, as well as any and all “as-extracted collateral” as such term is defined in the UCC, whether now owned and existing
or hereafter acquired or arising, and situated on any of the Lands, including, but not limited to, pipe, casing, tubing, rods, storage tanks, boilers, loading racks, pumps, foundations, warehouses, and all other personal Property and equipment of
every kind and character upon, incident, appurtenant, or belonging to and used in connection with the interest of Mortgagor, whether now owned and existing or hereafter acquired or arising, in the Lands and/or the Leases, including all oil, gas, and
other minerals produced or to be produced to the account of Mortgagor from the Lands and all accounts receivable, general intangibles, and contract rights of Mortgagor in connection with the Lands and/or the Leases and all proceeds, products,
substitutions, and exchanges thereof (the Lands, the Leases, and the real and personal Property interests described in this Section being the “Mortgaged Property”). 
 1.3 Assignment of Security. Mortgagor, for the same consideration, hereby grants to Mortgagee any and all rights of Mortgagor to Liens securing
payment of proceeds from the sale of production from the Mortgaged Property. 
 1.4 After-Acquired Property. Mortgagor, for the same
consideration, hereby grants, bargains, sells, conveys, transfers, and assigns to the Trustee or grants to Mortgagee a continuing security interest in, as the case may be, all additional right, title, or interest which Mortgagor may hereafter
acquire or become entitled to in the interests, Properties, Lands, Leases, and premises aforesaid, and in the oil, gas, or other minerals in and under or produced from or attributable to any of the Lands or Leases, which additional right, title, and
interest, when acquired, shall constitute “Mortgaged Property,” the same as if expressly described and conveyed herein. 
 1.5
Habendum. TO HAVE AND TO HOLD all and singular the Mortgaged Property and all other Property which, by the terms hereof, has or may hereafter become subject to the Liens of this Deed of Trust, together with all rights, hereditaments, and
appurtenances in anywise belonging thereto, to the Trustee or Mortgagee, as the case may be, or the successors or assigns of either of them forever. 
 ARTICLE 2 
 INDEBTEDNESS SECURED 
 This conveyance is made, IN TRUST, HOWEVER, to secure and enforce the payment of the following indebtedness, obligations, and liabilities: 
 2.1 Specific Obligations. The Notes, which bear interest and are payable as provided therein and each of which matures on the Maturity Date (as defined in the Initial Note or the relevant Additional Note, as
the case may be). 
  

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 2.2 Other and Further Indebtedness. This Deed of Trust is intended to secure a revolving credit
lines. If intermediate paydowns by Mortgagor reduce the outstanding indebtedness to zero, it is intended that the Liens created under this Deed of Trust shall remain in full force and effect to secure subsequent advances by Mortgagee. In addition,
it is contemplated that Mortgagor may from time to time borrow additional sums of money from or otherwise be or become obligated to Mortgagee. This Deed of Trust is given to secure any and all indebtedness of Mortgagor, present or future, either
direct or indirect, primary or secondary, fixed or contingent, which Mortgagor may now or hereafter owe, or as to which Mortgagor may in any manner become obligated to Mortgagee for payment, including, without limitation, indebtedness arising by way
of guaranty as to obligations of another to Mortgagee and indebtedness originally owed to a party other than Mortgagee but which becomes owing to Mortgagee as the result of Mortgagee having acquired the right to payment thereof. This Deed of Trust
shall likewise secure not only the above described indebtedness, but any and all renewals for any period, extensions, and rearrangements of all or any portion thereof; and the Liens under this Deed of Trust shall be cumulative of all other Liens and
security of any and every other kind or character whatsoever securing the above-described indebtedness. Notwithstanding the foregoing, it is not the intention of the parties hereto to extend the Liens of this Deed of Trust so as to violate, or give
rise to an allegation of violation of, any provision of any statute, regulation, rule, ordinance or order of any applicable jurisdiction, or any agency or subdivision of any of such jurisdictions. In this connection, this Deed of Trust shall not,
solely as to the relevant indebtedness, serve as security for any indebtedness when for it to do so would violate any provision of any statute, regulation, rule, ordinance or order of any applicable jurisdiction, or any agency or subdivision of any
of such jurisdictions. 
 2.3 Indebtedness. The word “Indebtedness” wherever used in this Deed of Trust shall refer to
all present and future debts, obligations, and liabilities described or referred to in this Article 2, subject, however, to the limitations provided hereinabove in this Article 2. 
 ARTICLE 3 
 WARRANTIES 
 3.1 Warranty of Title. Mortgagor hereby binds itself, its legal representatives, successors, and assigns, to warrant and forever defend all and
singular the Mortgaged Property to the Trustee and the successors and assigns of the Trustee forever against every Person whomsoever lawfully claiming or to claim the same or any part thereof. Notwithstanding that this Deed of Trust covers all of
the right, title, and interest, whether now owned and existing or hereafter acquired or arising, of Mortgagor in and to the Mortgaged Property, Mortgagor, for itself, its legal representatives, successors, and assigns, further covenants, represents,
and warrants that Mortgagor has good and indefeasible title to the Mortgaged Property and that the interests of Mortgagor in and to the Leases and/or Lands described in Exhibit A are not greater than the working interest nor less than the net
revenue interest, overriding royalty interest, net profit interest, production payment interest, royalty interest, or other interest payable out of or 

  

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measured by production set forth in connection with each oil and gas well described in Exhibit A. In the event Mortgagor owns any other or greater
interest, such additional interest is nonetheless included in, covered by, and subject to the liens and security interests created by this Deed of Trust. 
 3.2 Additional Warranties. In consideration of the Indebtedness, Mortgagor, for itself, its legal representatives, successors, and assigns, covenants, represents, and warrants that: 
 (a) Leases in Effect. All of the Leases specifically described or referred to in Exhibit A are in full force and effect. All
covenants, express or implied, in respect of the Leases specifically described or referred to in Exhibit A, or of any assignment of any of such Leases, which may affect the validity of any of such Leases, have been performed insofar as such
Leases pertain to the Lands. 
 (b) Interests Free of Liens. The interests of Mortgagor in the Mortgaged Property are
free and clear of all Liens except for Permitted Liens. All gross production taxes and all taxes as to which non-payment could result in a Lien against any of the Mortgaged Property have been paid. 
 ARTICLE 4 
 COVENANTS OF MORTGAGOR

 In consideration of the Indebtedness, Mortgagor, for itself, its legal representatives, successors, and assigns, covenants and agrees
as follows: 
 4.1 Maintenance of Leases. Mortgagor will keep and continue all Leases, estates, and interests herein described and all
contracts and agreements relating thereto in full force and effect in accordance with the terms thereof and will not permit the same to lapse or otherwise become impaired for failure to comply with the obligations thereof, whether express or
implied. In this connection, Mortgagor shall not release any of the Leases without the prior written consent of Mortgagee. 
 4.2
Maintenance of Property. Mortgagor will keep and maintain all improvements, personal Property, and equipment now or hereafter situated on the Lands and constituting a portion of the Mortgaged Property and used or obtained in connection
therewith in good repair and condition, ordinary wear and tear excepted, and will not tear down or remove the same or permit the same to be torn down or removed without the prior consent of Mortgagee, except in the usual course of operations as may
be required for replacement when otherwise in compliance with the provisions of this Deed of Trust. 
 4.3 Pooling or Unitization.
Mortgagor will not, without the prior written consent of Mortgagee, pool or unitize all or any part of the Mortgaged Property where the pooling or unitization would result in the diminution of the net revenue interest of Mortgagor in production from
the pooled or unitized lands attributable to the Mortgaged Property constituting a portion of such pooled or unitized lands. Immediately after the formation of any pool or unit in accordance herewith, Mortgagor will furnish to Mortgagee a conformed
copy of the pooling 

  

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agreement, declaration of pooling, or other instrument creating the pool or unit. The interest of Mortgagor included in any pool or unit attributable to the
Mortgaged Property or any part thereof shall become a part of the Mortgaged Property and shall be subject to the Liens hereof in the same manner and with the same effect as though the pool or unit and the interest of Mortgagor therein were
specifically described in Exhibit A. In the event any proceedings of any Governmental Authority which could result in pooling or unitizing all or any part of the Mortgaged Property are commenced, Mortgagor shall give immediate written notice
thereof to Mortgagee. Any pooling or unitization of all or any part of the Mortgaged Property in violation of this Section shall be of no force or effect against the Trustee or Mortgagee. 
 4.4 Operation of Mortgaged Property. Mortgagor will operate or, to the extent that the right of operation is vested in others, will exercise its
best efforts to require the operator to operate the Mortgaged Property and all wells now or hereafter located thereon continuously and in a prudent and workmanlike manner in accordance with the best usage of the field and in accordance with all
applicable Requirements of Law. Mortgagor will comply with all terms and conditions of the Leases and each assignment or contract obligating Mortgagor in any way with respect to the Mortgaged Property; but nothing herein shall be construed to
empower Mortgagor to bind the Trustee or Mortgagee to any contract or obligation or render the Trustee or Mortgagee in any way responsible or liable for bills or obligations incurred by Mortgagor. 
 4.5 Compliance with Operating Agreements. Mortgagor agrees to promptly pay all bills for labor and materials incurred in the operation of the
Mortgaged Property and will promptly pay its share of all costs and expenses incurred under any joint operating agreement affecting the Mortgaged Property or any portion thereof; will furnish Mortgagee, as and when requested, full information as to
the status of any joint account maintained with others under any such operating agreement; will not take any action to incur any liability or Lien thereunder; and will not enter into any new operating agreement or any amendment of any existing
operating agreement affecting the Mortgaged Property without the prior written consent of Mortgagee. Furthermore, Mortgagor will not consent or agree to participate in any proposed operation under any presently existing operating agreement affecting
the Mortgaged Property unless Mortgagor obtains the prior written consent of Mortgagee and, if requested by Mortgagee, deposits with the operator or Mortgagee, where Mortgagor is a non-operator, or with Mortgagee, where Mortgagor is an operator,
Mortgagor’s share of the estimated cost of the proposed operation prior to electing to participate in the operation. To the extent that Mortgagor is unable to consent to any proposed operation with respect to any of the Mortgaged Property,
prior to electing not to participate in the proposed operation, Mortgagor will use its best efforts, to the extent practicable and to the extent allowed to do so under the relevant operating agreement or other applicable contract, to farmout to
others acceptable to Mortgagee, on the best terms obtainable and acceptable to Mortgagee, the interest or relevant portion of the interest of Mortgagor in the proposed operation. 
 4.6 Access to Mortgaged Property. Mortgagor will permit Mortgagee and its accredited agents, representatives, and attorneys, at the expense of
Mortgagor, at all times to go upon, examine, inspect, conduct environmental audits and other testing of, and remain on, the Mortgaged Property, and to go upon the derrick floor of any well at any time drilled or being drilled thereon, and will
furnish Mortgagee, upon request, all pertinent information regarding the development and operation of the Mortgaged Property. 
  

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 4.7 Waivers. Mortgagor hereby expressly waives, to the full extent permitted by applicable law,
any and all rights or privileges of marshalling of assets, sale in inverse order of alienation, notices, appraisements, redemption, and any prerequisite in the event of foreclosure of the Liens created herein. Mortgagee at all times shall have the
right to release any part of the Mortgaged Property now or hereafter subject to the Liens of this Deed of Trust, any part of the proceeds of production or other income herein or hereafter assigned or pledged, or any other security it now has or may
hereafter have securing the Indebtedness, without releasing any other part of the Mortgaged Property, proceeds, or income, and without affecting the Liens hereof as to the part or parts of the Mortgaged Property, proceeds, or income not so released
or the right to receive future proceeds and income. 
 4.8 Compliance with Laws. Mortgagor will comply with all Requirements of Law
applicable to the Mortgaged Property and the operations conducted thereon, including, without limitation, the Natural Gas Policy Act of 1978, as amended, and Environmental Laws; and cause all employees, crew members, agents, contractors,
sub-contractors, and future lessees (pursuant to appropriate lease provisions) of Mortgagor, while such Persons are acting within the scope of their relationship with Mortgagor, to comply with all such Requirements of Law as may be necessary or
appropriate to enable Mortgagor to so comply. 
 4.9 Hazardous Substances Indemnification.
MORTGAGOR HEREBY INDEMNIFIES AND HOLDS MORTGAGEE AND ITS AGENTS,
ATTORNEYS-IN-FACT, AND AFFILIATES AND THE TRUSTEE HARMLESS FROM AND
AGAINST ANY AND ALL CLAIMS, LOSSES, DAMAGES, LIABILITIES, FINES, PENALTIES, CHARGES,
ADMINISTRATIVE AND JUDICIAL PROCEEDINGS AND ORDERS, JUDGMENTS, REMEDIAL ACTIONS, REQUIREMENTS
AND ENFORCEMENT ACTIONS OF ANY KIND, AND ALL COSTS AND EXPENSES
INCURRED IN CONNECTION THEREWITH (INCLUDING, WITHOUT LIMITATION, ATTORNEYS’ FEES AND
EXPENSES), ARISING DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, FROM
(A) THE PRESENCE OF ANY HAZARDOUS SUBSTANCES ON, UNDER, OR FROM
ANY MORTGAGED PROPERTY, WHETHER PRIOR TO OR DURING THE TERM HEREOF,
(B) ANY ACTIVITY CARRIED ON OR UNDERTAKEN ON OR OFF ANY
MORTGAGED PROPERTY, WHETHER PRIOR TO OR DURING THE TERM HEREOF, AND
WHETHER BY MORTGAGOR OR ANY PREDECESSOR IN TITLE, EMPLOYEE, AGENT, CONTRACTOR,
OR SUBCONTRACTOR OF MORTGAGOR OR ANY OTHER PERSON AT ANY TIME
OCCUPYING OR PRESENT ON ANY MORTGAGED PROPERTY, IN CONNECTION WITH THE
HANDLING, TREATMENT, REMOVAL, STORAGE, DECONTAMINATION, CLEANUP, TRANSPORTATION, OR DISPOSAL OF
ANY HAZARDOUS SUBSTANCES AT ANY TIME LOCATED OR PRESENT ON OR UNDER
SUCH PROPERTY, (C) ANY RESIDUAL CONTAMINATION ON OR UNDER ANY MORTGAGED
PROPERTY, (D) ANY CONTAMINATION OF ANY MORTGAGED PROPERTY OR NATURAL RESOURCES
ARISING IN CONNECTION WITH THE GENERATION, USE, HANDLING, STORAGE, TRANSPORTATION,
OR DISPOSAL OF ANY HAZARDOUS SUBSTANCE BY MORTGAGOR OR ANY EMPLOYEE,
AGENT, CONTRACTOR, OR SUBCONTRACTOR OF MORTGAGOR WHILE SUCH PERSONS ARE ACTING
WITHIN THE SCOPE OF THEIR RELATIONSHIP WITH MORTGAGOR, IRRESPECTIVE OF WHETHER
ANY OF SUCH ACTIVITIES WERE OR WILL BE UNDERTAKEN IN ACCORDANCE WITH
APPLICABLE REQUIREMENTS OF LAW, OR (E) THE PERFORMANCE AND ENFORCEMENT OF
THIS DEED OF TRUST OR ANY OTHER ACT OR OMISSION IN CONNECTION
WITH OR RELATED TO THIS DEED OF TRUST OR THE TRANSACTIONS
CONTEMPLATED HEREBY, INCLUDING, WITHOUT LIMITATION, ANY OF THE FOREGOING IN THIS
SECTION ARISING FROM NEGLIGENCE, WHETHER SOLE OR CONCURRENT, ON THE PART
OF MORTGAGEE OR ANY OF ITS AGENTS OR ATTORNEYS-IN-FACT OR
THE TRUSTEE; WITH THE FOREGOING INDEMNITY SURVIVING SATISFACTION OF THE INDEBTEDNESS
AND THE RELEASE OF THE LIENS CREATED HEREBY. 
  

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 4.10 Site Assessments. Mortgagee at any time and from time to time, either prior to or after the
occurrence of an Event of Default, may contract, at the expense of Mortgagor, for the services of Persons (the “Site Reviewers”) to perform environmental site assessments and other tests (“Site Assessments”) on all
or any portion of the Mortgaged Property for the purpose of determining whether any environmental condition exists on any Mortgaged Property which could reasonably be expected to result in any liability, cost, or expense to Mortgagee or any owner,
occupier, or operator of such Mortgaged Property. The Site Assessments may be performed at any time or times, upon reasonable notice, and under reasonable conditions established by Mortgagor which do not impede the performance of the Site
Assessments. The Site Reviewers are hereby authorized to enter upon all or any portion of the Mortgaged Property for such purposes. The Site Reviewers are further authorized to perform both above and below the ground testing for environmental damage
or the presence of Hazardous Substances on the Mortgaged Property and such other tests on the Mortgaged Property as may be necessary to conduct the Site Assessments in the reasonable opinion of the Site Reviewers. Mortgagor will supply to the Site
Reviewers such historical and operational information regarding the Mortgaged Property as may be reasonably requested by the Site Reviewers to facilitate the Site Assessments and will make available for meetings with the Site Reviewers appropriate
personnel having knowledge of such matters. On request, Mortgagee shall make the results of such Site Assessments available to Mortgagor, which, prior to an Event of Default, may at its election participate under reasonable procedures in the
direction of such Site Assessments and the description of tasks of the Site Reviewers. The cost of performing all Site Assessments shall be paid by Mortgagor upon demand of Mortgagee and any such obligations shall be Indebtedness secured by this
Deed of Trust. 
 4.11 Uneconomic Wells. Should proceeds from the sale of production from any oil and/or gas well constituting part of
the Mortgaged Property (net of production, severance and windfall profit taxes and royalties, overriding royalties and other payments out of or measured by production) not exceed the expense of operation of such well (including, but not limited to,
operator’s overhead, payments to contractors and suppliers, and annual taxes assessed on the basis of the value of the Property prorated on a monthly basis, but expressly excluding any portion of the cost of drilling or completing the relevant
well or the cost of non-routine workover or remedial operations) for a period in excess of three consecutive calendar months, then, upon receipt by Mortgagor of written notification from Mortgagee, Mortgagor will (a) take all necessary steps to
abandon the relevant well, or (b) provide from sources other than proceeds from the sale of production attributable to the Mortgaged Property (i.e., through borrowings or contractual commitments obtained from third parties not in
violation of any provision of this Deed of Trust or any other Loan Document) the funds required to pay the share of Mortgagor of the expenses associated with the continuing operation of such well. 
 4.12 Performance of Gas Contracts. Mortgagor will perform and observe in all material respects all of its obligations under each contract relating
to the sale of gas produced from or attributable to the Mortgaged Property and will not, except in good faith and as the result of arm’s length negotiations and with prior written notice to Mortgagee, change, modify, amend or waive any of the
terms or provisions of any such contract or take any other action which would release any other party from its obligations or liabilities under any such contract. 
  

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 4.13 Covenants Running with the Land. All covenants and agreements herein contained shall
constitute covenants running with the Land. 
 ARTICLE 5 
 DEFEASANCE, FORECLOSURE 
 AND OTHER REMEDIES 
 5.1 Defeasance. Should the Indebtedness be paid, then the conveyance of the Mortgaged Property shall become of no further force and effect, and,
at the request and expense of Mortgagor, the Lien granted hereunder shall be released, without recourse or warranty; otherwise, it shall remain in full force and effect. 
 5.2 Events of Default. The occurrence of any Event of Default under any of the Notes shall constitute an Event of Default under this Deed of Trust. 
 5.3 Acceleration and Exercise of Power of Sale. 
 (a) Upon the occurrence of an Event of Default specified in the Intercreditor Agreement, the aggregate principal amount of all Indebtedness then outstanding and all interest accrued thereon shall automatically become
immediately due and payable, without presentment, demand, protest, notice of protest, default or dishonor, notice of intent to accelerate maturity, notice of acceleration of maturity, or other notice of any kind, all of which are hereby expressly
waived by Mortgagor to the full extent permitted by applicable law. Upon the occurrence of any other Event of Default, Mortgagee may declare the aggregate principal amount of all Indebtedness then outstanding and all interest accrued thereon
immediately due and payable, whereupon the same shall become immediately due and payable without presentment, demand, protest, notice of protest, default or dishonor, notice of intent to accelerate maturity, notice of acceleration of maturity, or
other notice of any kind, all of which are hereby expressly waived by Mortgagor to the full extent permitted by applicable law. 
 (b) Upon the occurrence of any Event of Default arising from a voluntary or involuntary Insolvency Proceeding in which Mortgagor is a debtor or at any time thereafter while the Indebtedness or any part thereof remains unpaid, it shall be
the duty of the Trustee, on request of Mortgagee (which request is hereby presumed), to enforce this Trust and, after advertising the time and place of the sale for at least 21 days prior to the day of sale, by posting or causing to be posted a
written or printed notice thereof at the courthouse door and by filing a copy of such notice in the office of the county clerk of each county in which the Mortgaged Property or any part thereof may be situated, and serving written notice of the
proposed sale on each debtor obligated to pay the Indebtedness according to the records of Mortgagee, by postage prepaid, certified United States 

  

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mail, at the most recent address for such debtor as shown by the records of Mortgagee, at least 21 days prior to the day of sale, to sell the Mortgaged
Property, either as a whole or in parcels, as the Trustee may deem proper, at public venue at the courthouse of the county in which the Mortgaged Property or any part thereof may be situated (and being the county designated in the notice of sale) on
the first Tuesday of any month between the hours of 10:00 a.m. and 4:00 p.m., to the highest bidder for cash, and after such sale to execute and deliver to the purchaser or purchasers good and sufficient deeds and assignments, conveying such
Property so sold to the purchaser or purchasers with general warranty of title made on behalf of Mortgagor. The Trustee, or his successor or substitute, is hereby authorized and empowered to appoint any one or more Persons as his attorneys-in-fact
or agents to act as Trustee under him and in his name, place and stead, such appointment to be evidenced by a written instrument executed by the Trustee, or his successor or substitute, to perform any one or more act or acts necessary or incident to
any sale under the power of sale hereunder, including, without limitation, the posting and filing of any notices, the conduct of the sale and the execution and delivery of any instruments conveying the Mortgaged Property as a result of the sale, but
in the name and on behalf of the Trustee, or his successor or substitute; and all acts done or performed by such attorneys-in-fact or agents shall be valid, lawful and binding as if done or performed by the Trustee, or his successor or substitute.
No single sale or series of sales by the Trustee shall extinguish the Lien or exhaust the power of sale hereunder except with respect to the items of Property sold, but such Lien and power shall exist for so long as and may be exercised in any
manner by law or as herein provided as often as the circumstances require to give Mortgagee full relief hereunder. The purchaser at any such sale shall not assume, nor shall the heirs, legal representatives, successors or assigns of such purchaser,
be deemed to have assumed, by reason of the acquisition of Property or rights mortgaged hereunder, any liability or obligation of any lessee or operator of the Mortgaged Property, or any part thereof, arising by reason of any occurrence taking place
prior to such sale. It shall not be necessary to have present, or to exhibit at any such sale, any of the personal Property subject to the Lien hereof. 
 5.4 Rights as Secured Party. Upon the occurrence of any Event of Default, Mortgagee shall be entitled to all of the rights, powers, and remedies afforded a secured party by the UCC with respect to the personal
Property and fixtures and as-extracted collateral in which Mortgagee has been granted a security interest hereby, or Mortgagee may proceed in accordance with the provisions hereof as to both the real and personal Property covered hereby. 

5.5 Application of Proceeds of Sale. The Trustee is authorized to receive the proceeds of each sale of Mortgaged Property and apply the same as
follows: 
 FIRST: to the payment of all necessary costs and expenses incident to the execution of this Deed of Trust, including, but
not limited to, a fee to the Trustee of 5% of the amount realized at the sale, if required by the Trustee; 
  

 10 

 SECOND: to any and all Indebtedness then hereby secured, application to be made in such order and
in such manner as Mortgagee may, in its discretion, elect; 
 THIRD: the balance, if any, to Mortgagor or its successors or assigns, or
other Person legally entitled thereto. 
 5.6 Substitute Trustee. In the event of the death of the Trustee, or his removal from the
State of Texas, or his failure, refusal, or inability for any reason to make any such sale or to perform any of the trusts herein declared, or at any time, whether with or without cause, Mortgagee may appoint, in writing, a substitute trustee who
shall thereupon succeed to all the estates, rights, powers, and trusts herein granted to and vested in the Trustee. In the same events as first above stated, and in the same manner, successive substitute Trustees may thereafter be appointed.

 5.7 Statements by Trustee. It is agreed that in any deed or deeds given by any Trustee any and all statements of fact or other
recitals therein made as to the identity of the holder or holders of the Indebtedness, or as to default in the payments thereof or any part thereof, or as to the breach of any covenants herein contained, or as to the request to sell, notice of sale,
time, place, terms and manner of sale, and receipt, application, and distribution of the money realized therefrom, or as to the due and proper appointment of a substitute trustee, and, without being limited by the foregoing, as to any other or
additional act or thing having been done by Mortgagee or the Trustee, shall be taken by all courts of law and equity as prima facie evidence that the statements or recitals state facts and are without further question to be so accepted. Mortgagor
does hereby ratify and confirm any and all acts that the Trustee may lawfully do in the premises by virtue of the terms and conditions of this Deed of Trust. 
 5.8 Suit to Collect and Foreclose. Mortgagee, at its election, or the Trustee, upon written request of Mortgagee, may proceed by suit or suits, at law or in equity, to enforce the payment of the Indebtedness in
accordance with the terms hereof and of the notes, guaranties, or other documents evidencing it, and to foreclose the Lien of this Deed of Trust as against all or any portion of the Mortgaged Property and to have such Property sold under the
judgment or decree of a court of competent jurisdiction. 
 5.9 Mortgagee or Trustee as Purchaser. Mortgagee or the Trustee may be a
purchaser of all or any portion of the Mortgaged Property at any sale thereof, whether such sale be under the power of sale hereinabove vested in the Trustee, upon any other foreclosure of the Lien hereof, or otherwise. Mortgagee or the Trustee so
purchasing shall, upon any such purchase, acquire title to the Mortgaged Property so purchased, free of the Lien of this Deed of Trust and free of all rights of redemption in Mortgagor. 
 5.10 Entry and Operation. Upon the occurrence of any Event of Default, then in each and every such case and in addition to the other rights and
remedies hereunder, the Trustee or Mortgagee, whether or not the Indebtedness shall have become due and payable, may, but shall not be obligated to, enter into and upon and take possession of all or any portion of the Mortgaged Property and may
exclude Mortgagor, its agents and servants wholly therefrom and have, hold, use, operate, manage, and control all or any portion of the Mortgaged Property and 

  

 11 

 
produce the oil, gas, and other minerals therefrom and market the same, all at the sole risk and expense of Mortgagor and at the expense of the Mortgaged
Property, applying the net proceeds so derived, first, to the cost of maintenance and operation of such Mortgaged Property; second, to the payment of the Indebtedness, application to be made first to interest and then to principal; and the balance
thereof, if any, shall be paid to Mortgagor. Upon such payment of all such costs and Indebtedness, the Mortgaged Property shall be returned to Mortgagor in its then condition, and neither the Trustee nor Mortgagee shall be liable to Mortgagor for
any damage or injury to the Mortgaged Property except such as may be caused through the fraud or willful misconduct of the Trustee or Mortgagee, as the case may be. 
 5.11 Power of Attorney to Mortgagee. Mortgagor does hereby designate Mortgagee as the agent of Mortgagor to act in the name, place, and stead of Mortgagor in the exercise of each and every remedy set forth
herein and in conducting any and all operations and taking any and all action reasonably necessary to do so, recognizing such agency in favor of Mortgagee to be coupled with the interests of Mortgagee under this Deed of Trust and, thus, irrevocable
so long as this Deed of Trust is in force and effect. 
 5.12 Remedies Cumulative and Non-Exclusive. The rights of entry, sale, or
suit, as hereinabove or hereinafter conferred, are cumulative of all other rights and remedies herein or by law or in equity provided, and shall not be deemed to deprive Mortgagee or the Trustee of any such other legal or equitable rights or
remedies, by judicial proceedings or otherwise, appropriate to enforce the conditions, covenants, and terms of this Deed of Trust and the other Loan Documents. The employment of any remedy hereunder or otherwise shall not prevent the concurrent or
subsequent employment of any other appropriate remedy or remedies. 
 ARTICLE 6 
 ASSIGNMENT OF PRODUCTION 
 6.1
Assignment. In addition to the conveyance to the Trustee herein made, Mortgagor does hereby transfer, assign, deliver and convey unto Mortgagee, its successors and assigns, all of the oil, gas, and other minerals produced, saved, or sold from
the Mortgaged Property and attributable to the interests of Mortgagor therein subsequent to 7:00 a.m. on the first day of the month in which this Deed of Trust is executed, together with the proceeds of any sale thereof. Mortgagor hereby directs any
purchaser now or hereafter taking any production from the Mortgaged Property to pay to Mortgagee such proceeds derived from the sale thereof and to continue to make payments directly to Mortgagee until notified in writing by Mortgagee to discontinue
the same. The purchaser of any such production shall not be required to see to the application of the proceeds thereof by Mortgagee, and payment made to Mortgagee shall be binding and conclusive as between such purchaser and Mortgagor. Mortgagor
further agrees to perform all such acts and to execute all such further assignments, transfer and division orders, and other instruments as may be required or desired by Mortgagee or any other party to have such proceeds and revenues so paid to
Mortgagee. 
 6.2 Postponement of Payment. For its convenience, Mortgagee has elected not to exercise immediately its right to receive
payment to it directly of the proceeds of any sale of the oil , gas and other minerals produced or sold from the Mortgaged Property and the 

  

 12 

 
purchasers may continue to make such payment or delivery of the proceeds to Mortgagor until such time as Mortgagor and the purchasers have received notice
that an Event of Default has occurred and is continuing, and that the purchasers are directed to make payment or delivery of the proceeds directly to Mortgagee. Such failure by Mortgagee to exercise its rights immediately shall not in any way waive
the right of Mortgagee to receive any of the proceeds, or to make any such demand, or to affect any such assignment as to any proceeds not theretofore paid or delivered to Mortgagor. In this regard, if any of the proceeds are paid or delivered
directly to Mortgagee and then, at the request of Mortgagee, the proceeds are, for a period or periods of time, paid or delivered to Mortgagor, Mortgagee shall nevertheless have the right, effective upon written notice, to require that future
proceeds be again paid or delivered directly to it. Mortgagee shall never be required to send any such notice to all purchasers, and may direct such notice only to those purchasers as it may, in its discretion, desire. It shall never be necessary
for Mortgagee to institute legal proceedings to enforce the assignment of hydrocarbons, proceeds, or other rents, profits, or income contained in this instrument. It shall not be necessary for Mortgagee to obtain possession of the Mortgaged Property
as a prerequisite to Mortgagee’s right to collect or receive any hydrocarbons, other minerals, proceeds, or other rents, profits, or income assigned to Mortgagee under this instrument. Mortgagor and Mortgagee expressly agree and it is the
express intention of Mortgagor and Mortgagee that in no event will any reduction in the obligations be measured by the fair market value of the hydrocarbons, other minerals, proceeds, or other rents, profits, or income assigned to Mortgagee under
this instrument. 
 6.3 Change of Purchaser. Should any purchaser taking the production from the Mortgaged Property fail to make
prompt payment to Mortgagee in accordance with the provisions of Section 6.1, Mortgagee shall have the right, at the expense of Mortgagor, to demand a change of connection and to designate another purchaser with whom a new connection may be
made, without any liability on the part of Mortgagee in making such selection, so long as ordinary care is used in the making thereof. Promptly upon such demand, Mortgagor shall take all necessary and appropriate action to effect such change of
connection. 
 6.4 Application of Proceeds. Mortgagor authorizes and empowers Mortgagee to receive, hold, and collect all sums of
money paid to Mortgagee in accordance with the provisions of Section 6.1, and to apply the same as hereinafter provided, all without any liability or responsibility on the part of Mortgagee, save and except as to good faith in so receiving and
applying such sums. Mortgagee may apply all sums received by Mortgagee pursuant to Section 6.1 to the payment of the Indebtedness, application to be made in such manner as Mortgagee may elect, regardless of whether the application so made shall
exceed the payments of principal and interest then due as provided in the Loan Documents. After such application has been so made by Mortgagee, the balance of any such sums shall be paid to Mortgagor. 
 6.5 No Postponement of Installments on Indebtedness. It is understood and agreed that should such payments provided for by Section 6.1 be
less than the sum or sums then due on the Indebtedness, such sum or sums then due shall nevertheless be paid by Mortgagor in accordance with the provisions of the Loan Documents, and neither the assignment made pursuant to Section 6.1 nor any
other provisions hereof shall in any manner be construed to affect the terms and provisions of the Loan Documents. Likewise, neither the assignment made pursuant to Section 6.1 nor any other provisions hereof shall in any manner be
construed to affect the Liens, rights, title, and remedies herein granted securing the Indebtedness or the 

  

 13 

 
liability of Mortgagor therefor. The rights under this Article VI are cumulative of all other rights, remedies, and powers granted under this Deed of Trust
and are cumulative of any other security which Mortgagee now holds or may hereafter hold to secure the payment of the Indebtedness. 
 6.6
Turnover to Mortgagee. Should Mortgagor receive any of the proceeds of any sale of oil, gas, or other minerals produced, saved, or sold from the Mortgaged Property, which under the terms hereof should have been remitted to Mortgagee,
Mortgagor will immediately remit same in full to Mortgagee. 
 6.7 Release of Proceeds Upon Payment of Indebtedness. Upon payment in
full of all Indebtedness and the termination of the Commitment, the remainder of such proceeds held by Mortgagee, if any, shall be paid over to Mortgagor upon demand, and a release of the interest hereby assigned will be made, without recourse or
warranty, by Mortgagee to Mortgagor at its request and its expense. 
 6.8 Duty of Mortgagee. Mortgagee shall not be liable for any
failure to collect, or for any failure to exercise diligence in collecting, any funds assigned hereunder. Mortgagee shall be accountable only for funds actually received. 
 6.9 Power of Attorney to Mortgagee. Mortgagor does hereby designate Mortgagee as the agent of Mortgagor to act in the name, place, and stead of Mortgagor for the purpose of taking any and all actions deemed by
Mortgagee necessary for the realization by Mortgagee of the benefits of the assignment of production provided herein, recognizing such agency in favor of Mortgagee to be coupled with the interests of Mortgagee under this Deed of Trust and, thus,
irrevocable so long as this Deed of Trust is in force and effect. 
 ARTICLE 7 
 MISCELLANEOUS 
 7.1 Further Assurances. Upon request of Mortgagee,
Mortgagor will promptly correct any defects, errors, or omissions in the execution or acknowledgment of this Deed of Trust or any other Loan Document, and execute, acknowledge, and deliver such other assurances and instruments as shall, in the
opinion of Mortgagee, be necessary to fulfill the terms of this Deed of Trust. 
 7.2 Interest. Any provision in any document that may
be executed in connection herewith to the contrary notwithstanding, Mortgagee shall in no event be entitled to receive or collect, nor shall any amounts received hereunder be credited so that Mortgagee shall be paid, as interest a sum greater than
that authorized by law. If any possible construction of this Deed of Trust or any Loan Document seems to indicate any possibility of a different power given to Mortgagee or any authority to ask for, demand, or receive any larger rate of interest,
this clause shall override and control, and proper adjustments shall be made accordingly. 
 7.3 Agreement as Entirety. This Deed of
Trust, for convenience only, has been divided into Articles, Sections, and subsections. The rights, powers, privileges, duties, and 

  

 14 

 
other legal relations of Mortgagor, the Trustee, and Mortgagee shall be determined from this Deed of Trust as an entirety and without regard to the aforesaid
division into Articles, Sections, and subsections and without regard to headings affixed to such Articles, Sections, or subsections. 
 7.4
Number and Gender. Whenever the context requires, reference herein made to the single number shall be understood to include the plural, and the plural shall likewise be understood to include the singular. Words denoting sex shall be construed
to include the masculine, feminine, and neuter when such construction is appropriate; and specific enumeration shall not exclude the general, but shall be construed as cumulative. 
 7.5 Rights and Remedies Cumulative. All rights, powers, immunities, remedies, and Liens of Mortgagee existing and to exist hereunder or under any
other instruments or at law or in equity and all other or additional security shall be cumulative and not exclusive, each of the other. Mortgagee shall, in addition to the rights and remedies herein expressly provided, be entitled to such other
remedies as may now or hereafter exist at law or in equity for securing and collecting the Indebtedness, for enforcing the covenants herein, and for foreclosing the Liens hereof. Resort by Mortgagee to any right or remedy provided for hereunder or
at law or in equity shall not prevent concurrent or subsequent resort to the same or any other right or remedy. No security heretofore, herewith, or subsequently taken by Mortgagee shall in any manner impair or affect the security given by this Deed
of Trust or any security by endorsement or otherwise presently or previously given; and all security shall be taken, considered, and held as cumulative. 
 7.6 Parties in Interest. This Deed of Trust shall be binding upon the parties and their respective successors and assigns and shall inure to the benefit of Mortgagee and its successors, and assigns. The terms
used to designate any of the parties herein shall be deemed to include the successors and assigns of such parties. The term “Mortgagee” shall also include any lawful owner, holder or pledgee of any Indebtedness. 
 7.7 Supplements. Without in any manner limiting the effect of Section 1.4 or any other provisions of this Deed of Trust as to the binding
effect of this Deed of Trust on after-acquired rights of Mortgagor, it is contemplated by the parties hereto that from time to time additional interests and properties may or will be added to the interests and properties subject to the Liens,
rights, titles, and interests created by this Deed of Trust by means of supplemental indentures identifying this Deed of Trust and describing such interests and properties to be so added and included. Upon the execution of any such supplemental
indenture, the Liens, rights, titles, and interests created herein shall immediately attach to and be effective with respect to any such interests and properties so described, the same as if such interests and properties had been specifically
described herein, and such interests and properties being included in the term “Mortgaged Property,” as used herein. 
 7.8
Invalidity. In the event that any one or more of the provisions contained in this Deed of Trust shall for any reason be held invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect
any other provision of this Deed of Trust or any other Loan Document. 
  

 15 

 7.9 Construction. All titles or headings to Articles, Sections, subsections, or other divisions of
this Deed of Trust or the exhibits hereto are only for the convenience of the parties and shall not be construed to have any effect or meaning with respect to the other content of such Articles, Sections, subsections, or other divisions, such other
content being controlling as to the agreement among the parties hereto. Article, Section, subsection, and Exhibit references herein are to such Articles, Sections, subsections, and Exhibits of this Deed of Trust unless otherwise specified. The words
“hereby,” “herein,” “hereinabove,” “hereinafter,” “hereinbelow,” “hereof,” and “hereunder” when used in this Deed of Trust shall refer to this Deed of Trust as a whole and not to
any particular Article, Section, subsection, or provision of this Deed of Trust. 
 7.10 Fixtures, Minerals and Accounts. Without in
any manner limiting the generality of any of the foregoing hereof, some portions of the personal Property described hereinabove are or are to become fixtures on the Lands. In addition, the security interest created hereby under applicable provisions
of the UCC attaches to minerals, including oil and gas, and accounts resulting from the sale thereof, at the wellhead or minehead located on the Lands. 
 7.11 Financing Statement Filings. This Deed of Trust may be filed as provided in Article 9 of the UCC to assure that the security interests granted by this Deed of Trust are perfected. In this connection, this
Deed of Trust may be presented to a filing officer under the UCC to be filed in the real estate records as a Financing Statement covering minerals and fixtures. Further, Mortgagor authorizes Mortgagee to execute and file at any time and from time to
time any and all Financing Statements and amendments thereto in any UCC jurisdiction, pursuant to Article 9 of the UCC, as Mortgagee deems necessary in its sole discretion, in conjunction with this Deed of Trust, and Mortgagor expressly authorizes
execution and filing of such Financing Statements by Mortgagee without need of signature or execution by Mortgagor. 
 7.12 Addresses.
For purposes of filing this Deed of Trust as a financing statement, the addresses for Mortgagor, as the debtor, and Mortgagee, as the secured party, are as set forth hereinabove. 
 7.13 Counterparts. For the convenience of the parties, this Deed of Trust may be executed in multiple counterparts, each of which for all purposes
shall be deemed, and may be enforced from time to time as, a chattel mortgage, real estate mortgage, deed of trust, security agreement, assignment or contract, or as one or more thereof. For recording purposes, various counterparts have been
executed, and there may be attached to each such counterpart an Exhibit A containing only the description of the Mortgaged Property, or portions thereof, which relates to the county or state in which the particular counterpart is to be
recorded. A complete, original counterpart of this Deed of Trust with a complete Exhibit A may be obtained from Mortgagee. Each of the counterparts hereof so executed shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument. 
  

 16 

 7.14 No Waiver by Mortgagee. No course of dealing on the part of Mortgagee, nor any failure or
delay by Mortgagee with respect to exercising any of its rights or remedies hereunder shall operate as a waiver thereof nor shall the exercise or partial exercise of any such right or remedy shall preclude the exercise of any other right or remedy.

 7.15 Governing Agreement. This Deed of Trust is made pursuant and subject to the terms and provisions of the Notes. In the event of
a conflict between the terms and provisions of this Deed of Trust and those of any of the Notes, the terms and provisions of the relevant Note shall govern and control. The inclusion in this Deed of Trust of provisions not addressed in the relevant
Note shall not be deemed a conflict, and all such additional provisions contained herein shall be given full force and effect. 
 (Signature appears on following page) 
  

 17 

 IN WITNESS WHEREOF, this Deed of Trust is executed
on the date of the acknowledgment below but effective as of the 31st day of March, 2008. 
  

			
	MORTGAGOR (DEBTOR):
	
	PRIME OFFSHORE L.L.C.
		
	By:	 	  

		 	Beverly A. Cummings
		 	Chief Executive Officer

  

			
	THE STATE OF TEXAS	 	§
		 	§
	COUNTY OF HARRIS	 	§

 The foregoing instrument was acknowledged before me, the undersigned authority, on this
     day of April, 2008 by Beverly A. Cummings, Chief Executive Officer of PRIME OFFSHORE L.L.C., a Delaware limited liability company, on behalf of such limited liability company. 
  

	
	  

	NOTARY PUBLIC in and for
	the State of Texas

  

 18 

 EXHIBIT A 
 TO 
 MORTGAGE, DEED OF TRUST, SECURITY AGREEMENT, 
 FINANCING STATEMENT AND ASSIGNMENT OF PRODUCTION 
 The designation “Working Interest” or “WI” when used in this Exhibit means an interest owned in an oil, gas, and mineral lease that determines the cost-bearing percentage of the owner
of such interest. The designation “Net Revenue Interest” or “NRI” means that portion of the production attributable to the owner of a working interest after deduction for all royalty burdens, overriding royalty
burdens or other burdens on production, except severance, production, and other similar taxes. The designation “Overriding Royalty Interest” or “ORRI” means an interest in production which is free of any obligation
for the expense of exploration, development, and production, bearing only its pro rata share of severance, production, and other similar taxes and, in instances where the document creating the overriding royalty interest so provides, costs
associated with compression, dehydration, other treating or processing, or transportation of production of oil, gas, or other minerals relating to the marketing of such production. The designation “Royalty Interest” or
“RI” means an interest in production which results from an ownership in the mineral fee estate or royalty estate in the relevant land and which is free of any obligation for the expense of exploration, development, and production,
bearing only its pro rata share of severance, production, and other similar taxes and, in instances where the document creating the royalty interest so provides, costs associated with compression, dehydration, other treating or processing or
transportation of production of oil, gas, or other minerals relating to the marketing of such production. 
 Any reference in this Exhibit to
wells or units is for warranty of interest, administrative convenience, and identification and shall not limit or restrict the right, title, interest, or properties covered by this Deed of Trust. All right, title, and interest of Mortgagor in the
properties described herein are and shall be subject to this Deed of Trust, regardless of the presence of any units or wells not described herein. 
 The references to book or volume and page herein refer to the recording location of each respective Mortgaged Property described herein in the county where the land covered by the Mortgaged. 

 OIL, GAS AND MINERAL INTERESTS 
 Loop Pipeline 
 A 12- 3/4 inch pipeline 13.14 miles in length to transport gas and condensate from a 12-inch sub-sea tie-in in North
Padre Island Area Block 996 (Segment Number 15073) through North Padre Island Blocks 997, 989, 976, 977, and 968 to a 10-inch sub-sea tie-in in North Padre Island Area Block 967 (Segment Number 5990). 
 Assigned Right-of-Way Number OCS-G26982 
 Assigned Segment Number: 15636

 South Padre Island 1111 
 Oil and Gas Lease
OCS-G-24300, granted by the United States of America to F-W Oil Exploration L.L.C., dated effective November 1, 2002, covering all of Block 1111, South Padre Island Area, OCS Leasing Map, Texas Map No. 1, offshore Cameron County, Texas.

  

					
	 Working Interest
	  	100.0000	  	
	 Net Revenue Interest
	  	80.3333Pledge Agreement

 Exhibit 10.27.6 
 PLEDGE AGREEMENT 
 THIS PLEDGE AGREEMENT (this “Agreement”), is made
as of March 31, 2008, by and between ARTIC MANAGEMENT CORPORATION, a corporation incorporated under the laws of Panama (“Secured Party”), and PRIME OFFSHORE L.L.C., a Delaware limited liability company
(“Pledgor”), with reference to the following: 
 RECITALS: 
 A. Pledgor has executed in favor of Secured Party that certain Subordinated Promissory Note dated March 31, 2008 in the face principal amount of up
to $50,000,000 (the “Initial Note”) to evidence an initial loan by Secured Party to Pledgor in the amount of $20,000,000 and, possibly, further loans by Secured Party to Pledgor and Pledgor may execute one or more additional
Subordinated Promissory Notes in favor of Secured Party (the “Additional Notes”, whether one or more, and the Initial Note and the Additional Notes, collectively, the “Notes”). 
 B. Pledgor owns 100% of the general partner interest in FWOE Partners L.P., a Delaware limited partnership (the “Partnership”).

 C. Secured Party has conditioned loans under the Notes upon, among other things, the execution and delivery of this Agreement by Pledgor.

 D. Terms used herein but not otherwise defined herein shall have the meanings ascribed to them in the Notes. 
 AGREEMENTS: 
 NOW, THEREFORE, in
consideration of the premises and the mutual covenants, representations, warranties and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Pledgor hereby agrees with,
and for the benefit of, Secured Party as follows: 
 SECTION 1. Grant of Pledge Interest. As security for the obligations specified in
Section 2 hereof, Pledgor hereby grants to Secured Party a continuing security interest in all of its right, title and interest in and to the following described property, all of which is hereinafter collectively referred to as the
“Collateral”: 
 (a) Partnership Interests. Pledgor’s entire general partner interest in the
Partnership, which currently consists of 100% of the general partnership interest in the Partnership. Without limiting the generality of the foregoing, Secured Party is hereby granted a security interest in all of Pledgor’s right, title and
interest arising under that certain Amended and Restated Agreement of Limited Partnership dated August 22, 2005 (the “Partnership Agreement”) including, without limitation, all rights of Pledgor to receive any and all monies,
properties, payments and distributions thereunder, whether in respect of operating profits, sales, exchanges, condemnations or insured losses of any of Partnership’s assets, the liquidation of any of Partnership’s assets and affairs,
guaranteed payments, reimbursement of expenses, or otherwise (collectively the “Distributions”); all rights, powers 

 
and prerogatives of Pledgor arising under the Partnership Agreement or under law relating to the general partnership interest of Pledgor, including, without
limitation, all rights of Pledgor, if any, to control and manage the business of the Partnership and to vote on any matter specified therein or under law; all rights of Pledgor to cause an assignee to be substituted in the Partnership as a partner
in the place and stead of Pledgor; all rights and claims of Pledgor for damages arising out of or for breach of or default under the Partnership Agreement; all rights of Pledgor to access to the books and records of the Partnership and to other
information concerning or affecting the Partnership and all rights of Pledgor to terminate the Partnership Agreement, if any, to perform thereunder, to compel performance and otherwise to exercise all remedies thereunder; in each of the foregoing
cases, whether such rights, interests and assets are now owned or hereafter acquired and including all of Pledgor’s interest in any partnership or other entity which is a successor to or continuation of either Partnership. 
 (b) Proceeds, Substitutions, Etc. To the extent not included in the items of Collateral set forth in paragraph (a) above, any
and all proceeds, products, increases, substitutions, replacements, repairs, additions and accessions to or of such items of Collateral, including, without limitation, all insurance and the proceeds thereof, all condemnation proceeds or the proceeds
of any other form of taking thereof and all real property, equipment, inventory, accounts, general intangibles, contract rights, documents, instruments, chattel paper, money, deposit accounts and other tangible or intangible property received upon
the sale or disposition of any of the foregoing now existing or hereafter arising. 
 With respect to each particular item of
Collateral, the security interest herein granted shall attach immediately upon Pledgor’s execution hereof or as soon as Pledgor acquires rights in and to such item of Collateral, whichever is later. Nothing in this Agreement shall be deemed to
constitute an assumption by Secured Party of any liability or obligation of Pledgor with respect to any of the Collateral. 
 SECTION 2.
Obligations Secured. This Agreement secures and the Collateral is security for the prompt payment or performance in full when due, whether at stated maturity, by acceleration or otherwise (including, without limitation, the payment of amounts
which would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)) of (a) all indebtedness now or hereafter existing, whether for principal or interest (including,
without limitation, interest which, but for the filing of a petition in bankruptcy with respect to Pledgor, would accrue on such obligations), or payments of fees, expenses or otherwise, under the Notes and (b) all obligations, indebtedness and
liabilities of Pledgor now or hereafter existing under this Agreement or any other security document securing payment of the Notes (all such obligations, indebtedness and liabilities referred to in (a) and (b) of this Section being the
“Secured Obligations”). 
 SECTION 3. Assignment of Partnership Interest. Concurrently herewith Pledgor shall execute
and deliver to Secured Party a fully executed Subordinated Assignment of Partnership Interest in the form attached hereto as Exhibit “A” with respect to the Partnership. Pledgor hereby authorizes Secured Party, after the occurrence
of an Event of Default, after the expiration of any applicable cure period therefor and upon the completion of a sale conducted pursuant to Article 9 of 

  

 - 2 - 

 
the Uniform Commercial Code (the “Code”) in effect in the State of Texas at that time, to complete the Assignment of Partnership Interest,
and if the assignee is not Secured Party to fill in the name of the purchaser of the Collateral at a sale conducted pursuant to Article 9 of the Code as the assignee, and the date on which such sale was conducted, and, thereafter, to deliver one
fully executed original to the other partners of the Partnership. Pledgor agrees that the Partnership and its constituent partners shall be entitled to rely conclusively on such Subordinated Assignment of Partnership Interest and shall have no
liability to Pledgor for any loss or damage which Pledgor may incur by reason of said reliance, this provision being expressly for the benefit of such partners. 
 SECTION 4. Pledgor Remains Liable. Anything herein to the contrary notwithstanding, unless and until an Event of Default shall have occurred and the Collateral is sold at a foreclosure sale, Pledgor shall
remain liable under the Partnership Agreement to perform all of Pledgor’s obligations thereunder to the same extent as if this Agreement had not been executed, and the exercise by Secured Party of any of its rights hereunder shall not release
Pledgor from any of Pledgor’s obligations under the Partnership Agreement except as expressly otherwise provided by law. Unless and until the Collateral is sold to Secured Party at a foreclosure sale, Secured Party shall not have any obligation
or liability under the Partnership Agreement by reason of this Agreement, nor shall Secured Party be obligated to perform any of the obligations of Pledgor thereunder or to take any action to collect or to enforce any claim for payment assigned
hereunder. From and after the date the Collateral is sold at a foreclosure sale, the purchaser thereof shall be bound by all applicable provisions of the Partnership Agreement. 
 SECTION 5. Representations and Warranties. Pledgor hereby represents and warrants to Secured Party that: 
 (a) Pledgor is duly organized, existing and in good standing in its jurisdiction of organization and has full power and authority to make
and deliver this Agreement. 
 (b) The execution, delivery and performance of this Agreement by the Pledgor have been duly
authorized by all necessary organizational action and do not and will not violate the provisions of, or constitute a default under, any presently applicable law or its organizational documents or any agreement presently binding on it. 
 (c) This Agreement has been duly executed and delivered by the authorized officers, partners, managers or members, as the case may be, of
Pledgor and constitutes its lawful, binding and legally enforceable obligation, subject, as to enforcement, only to bankruptcy, insolvency, reorganization, moratorium or similar laws then in effect affecting the rights of creditors generally and
general equitable principles. 
 (d) The authorization, execution, delivery and performance of this Agreement does not require
notification to, registration with, or consent or approval by, any federal, state or local regulatory body or administrative agency. 
 (e) Pledgor’s rights to the Distributions are valid, enforceable under the Partnership Agreement in accordance with its terms and are not subject to any defense, offset, counterclaim or contingency whatsoever, except as provided in the
Partnership Agreement. 
  

 - 3 - 

 (f) Except for the security interest granted herein, Pledgor has, and will at all times
during the term hereof have, valid title to all and every part of the Collateral, free and clear of any lien or security interest. 
 (g) Upon the execution and delivery of this Agreement by Pledgor and the filing of appropriate financing statements with the appropriate governmental agencies or, as applicable, upon Secured Party’s taking possession of the Collateral,
Secured Party shall have a perfected security interest in and to the Collateral having first priority for the full amount of all of the Secured Obligations, subject, however, to Section 24 below. 
 (h) Neither the execution and delivery of this Agreement by Pledgor nor the lawful exercise by Secured Party of any of its rights and
remedies hereunder, whether upon default or otherwise, will result in a breach of or constitute a default under the Partnership Agreement or any other agreement or instrument to which Pledgor is a party or by which any of the Collateral is bound,
nor violate any law or any rule or regulation of any administrative agency or any order, writ, injunction or decree of any court or administrative agency binding upon Pledgor, nor does any of the foregoing require the consent of any person, entity
or governmental agency or any notice or filing with any governmental or regulatory body (except as may be required in connection with any sale or disposition of the Collateral by laws affecting the offering and sale of securities generally).

 (i) There is no action nor legal, administrative or other proceeding pending or, to the best of Pledgor’s knowledge,
threatened which affects Pledgor’s title to the Collateral or Pledgor’s grant of a security interest hereunder, nor does Pledgor know of any basis for the assertion of any such claim. 
 (j) The place where Pledgor keeps its books and records concerning the Collateral and a true, complete and conformed copy of each
Partnership Agreement is and will remain 9821 Katy Freeway, Suite 1050, Houston, Texas 77024, or at such other address as Pledgor may designate in writing to Secured Party. None of the Collateral is evidenced by a promissory note or other
instrument. 
 (k) Any and all information heretofore furnished to Secured Party by Pledgor in connection with the financial
condition, assets, liabilities, business or prospects of the Partnership or the value or condition of the Collateral is true and correct in all material respects when furnished, and all such information hereafter furnished to Secured Party by
Pledgor will be true and correct in all material respects when furnished. 
 SECTION 6. Further Assurances. Pledgor agrees at any time
and from time to time, at the expense of Pledgor, promptly to execute and to deliver all further instruments and documents, and to take all further action, that may be necessary as reasonably requested by Secured Party in order to perfect and to
protect any security interest granted or purported to be granted hereby or to enable Secured Party to exercise and to enforce its rights and remedies hereunder with respect to any of the Collateral. 
  

 - 4 - 

 SECTION 7. Affirmative and Negative Covenants. 
 (a) Pledgor shall not (i) sell, assign, transfer, exchange, lease, lend or dispose of (directly, indirectly, or voluntarily), or
grant any option with respect to, any of the Collateral, or (ii) create or permit to exist any security interest or lien in or with respect to the Collateral, except for the security interest in favor of Secured Party. The inclusion of
“proceeds” as a component of the Collateral shall not be deemed a consent by Secured Party or the Lenders to any sale, assignment, transfer, exchange, lease, loan, granting of an option with respect to or disposition of all or any part of
the Collateral. 
 (b) Pledgor shall not take any action in Pledgor’s capacity as general partner of the Partnership to
(i) cause or permit the Partnership Agreement to be amended or terminated; (ii) waive, postpone or modify Pledgor’s rights to receive any Distributions under the Partnership Agreement; or (iii) waive any default or breach of the
Partnership Agreement. 
 (c) Pledgor shall, at its own expense, perform and observe all of the terms and provisions of the
Partnership Agreement to be performed or observed by Pledgor, maintain the Partnership Agreement in full force and effect, and enforce Pledgor’s rights under the Partnership Agreement in accordance with its terms. Pledgor shall promptly deliver
to Secured Party any notice of default which Pledgor receives with respect to the Partnership Agreement. 
 (d) Pledgor shall
comply with all laws, statutes and regulations pertaining to its ownership of the Collateral. Pledgor shall pay or cause to be paid all taxes and other levies with respect to the Collateral when the same become due and payable except such as are
being contested in good faith by appropriate proceedings, where the effect of such proceedings is to stay any enforcement in respect of such unpaid taxes. 
 (e) Pledgor shall promptly notify Secured Party in writing of any event which materially adversely affects the value of the Collateral, the ability of Pledgor or Secured Party to dispose of the Collateral or the
rights and remedies of Secured Party in relation thereto, including, but not limited to, the levy of any legal process against the Collateral and the adoption of any order, arrangement or procedure affecting the Collateral, whether governmental or
otherwise. Pledgor shall also promptly notify Secured Party in writing of any event which adversely affects the financial condition, assets, liabilities, business, operations or prospects of the Partnership in any material respect. 
 SECTION 8. Rights of Pledgor with Respect to Collateral. 
 (a) So long as no Event of Default shall have occurred and be continuing, Pledgor shall be entitled to exercise any and all voting and
other consensual and other rights pertaining to the Collateral, or any part thereof, for any purpose not inconsistent with the terms of this Agreement (including, without limitation, Section 7(b) hereof) or the Note; provided, however, that
Pledgor shall not exercise or shall refrain from exercising any such right if it would result in an Event of Default. 
  

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 (b) Upon the occurrence and during the continuance of an Event of Default: 
 (i) Secured Party shall have the right to have the Collateral transferred into the name of Secured Party pursuant to Section 3
hereof. 
 (ii) All rights of Pledgor to exercise the voting and other consensual rights which Pledgor would otherwise be
entitled to exercise pursuant to Section 8(a) above and to receive Distributions shall cease, and all such rights shall thereupon become vested in Secured Party, who shall thereafter upon notice to Pledgor have the sole right to exercise such
voting and other consensual rights and to receive 100% of all Distributions, which shall be promptly applied by Secured Party against the Secured Obligations in the order and manner specified in Section 12(d) hereof. 
 (iii) All Distributions which are received by Pledgor contrary to the provisions of Section 8(b)(ii) shall be received in trust for
the benefit of Secured Party, shall be segregated from other funds of Pledgor, and forthwith shall be paid over to Secured Party as pledged Collateral in the same form as received (with any necessary endorsements). 
 SECTION 9. Secured Party May Perform. If Pledgor fails to perform any agreement contained herein, Secured Party may itself perform or cause the
performance of such agreement, and the expenses of Secured Party incurred in connection therewith shall be payable by Pledgor under Section 16. However, nothing in this Agreement shall obligate Secured Party to act. 
 SECTION 10. Secured Party Appointed Attorney-in-Fact. Pledgor hereby appoints Secured Party Pledgor’s attorney-in-fact with full authority in
the place and stead of Pledgor and in the name of Pledgor or otherwise, from time to time (but only upon an Event of Default) in Secured Party’s discretion, to take any action and to execute any instrument which Secured Party may deem necessary
or advisable to accomplish the purposes of this Agreement, including, without limitation, to receive, endorse and collect all instruments made payable to Pledgor representing any dividend or other Distribution in respect of the Collateral or any
part thereof and to give full discharge for the same. 
 SECTION 11. Reasonable Care. Secured Party shall be deemed to have exercised
reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which Secured Party accords its own property, it being understood that Secured Party shall not
have responsibility for (a) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or not Secured Party has or is deemed to have knowledge of such
matters, or (b) taking any necessary steps to preserve rights against any parties with respect to any Collateral. 
 SECTION 12.
Remedies Upon Default. If any Event of Default shall have occurred and be continuing, Secured Party is, subject to the Credit Agreement, entitled to exercise any one or more of the following remedies: 
 (a) Secured Party may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise
available to it, all the rights and 

  

 - 6 - 

 
remedies of a secured party under the Code, and Secured Party may also without notice except as specified below sell the Collateral or any part thereof in
one or more parcels at public or private sale, at any exchange, broker’s board or at any of Secured Party’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as Secured Party in its sole discretion
may deem commercially reasonable. Pledgor agrees that at least 20 days’ written notice to Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. Secured
Party shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. Secured Party may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so adjourned. Pledgor hereby waives any claims against Secured Party arising by reason of the fact that the price at which any Collateral may have been sold at such a private
sale was less than the price which might have been obtained at a public sale. To the extent permitted by law, Secured Party may be the purchaser of the Collateral. 
 (b) Pledgor recognizes that, by reason of certain prohibitions contained in the Securities Act of 1933, as amended (the
“Securities Act”), and applicable state securities laws, Secured Party may be compelled, with respect to any sale of all or any part of the Collateral, to limit purchasers to those who will agree, among other things, to acquire the
Collateral for their own account, for investment and not with a view to the distribution or resale thereof Pledgor acknowledges that any such private placement, whether through public or private sale under the Code, may be at prices and on terms
less favorable to Secured Party than those obtainable through a public offering made pursuant to a registration statement under the Securities Act, and, notwithstanding such circumstances, agrees that any such private placement, whether through
public or private sale under the Code, shall be deemed to have been made in a commercially reasonable manner and that Secured Party shall have no obligation to engage in a public offering and no obligation to delay the sale of any Collateral for the
period of time necessary to permit the issuer thereof to register it for a form of public offering requiring registration under the Securities Act or under applicable state securities laws, even if Pledgor would agree to do so. 
 (c) If Secured Party decides to exercise its right to sell any or all of the Collateral, upon written request, Pledgor shall furnish to
Secured Party all such information as Secured Party may reasonably request in order to determine the Collateral which may be sold by Secured Party as exempt transactions under the Securities Act and the rules of the Securities and Exchange
Commission thereunder, as the same are from time to time in effect. 
 (d) Any cash held by Secured Party as Collateral and
all cash proceeds received by Secured Party in respect of any sale of, collection from, or other realization upon all or any part of the Collateral shall be promptly applied (after payment of any amounts payable to Secured Party pursuant to
Section 16) in whole or in part by Secured Party against all or any part of the Secured Obligations in such manner as Secured Party may elect. Any surplus of such cash or cash proceeds held by Secured Party and remaining after payment in full
of all the Secured Obligations shall be paid over to Pledgor or to whomsoever may be lawfully entitled to receive such surplus. 
  

 - 7 - 

 (e) Secured Party shall not be obligated to resort to its rights or remedies with respect
to any other security for or guaranty of payment of the Secured Obligations before resorting to its rights and remedies against Pledgor hereunder. All rights and remedies of Secured Party shall be cumulative and not in the alternative. 

(f) To the extent the Collateral consists of Pledgor’s entire interest in the Partnership, Secured Party may pursue and enforce
its rights and remedies only as to the Distributions, reserving the discretion to pursue or not pursue its rights as to the balance of the Collateral at a later date. 
 (g) To the extent the exercise by Secured Party of any remedy afforded herein requires the consent or approval of any governmental agency
or regulatory body, the right of Secured Party to exercise such remedy shall be conditioned upon receipt by Secured Party of such consent or approval. In furtherance of the exercise by Secured Party of the power of sale granted to it herein, Pledgor
agrees that, upon request of Secured Party and without expense to Secured Party, Pledgor shall use its reasonable best efforts to obtain all necessary approvals from all applicable federal, state and local governmental agencies, authorities and
instrumentalities for the sale by Secured Party of the Collateral, or any part thereof, or the transfer to the successful bidder or prospective purchaser of any governmental licenses or franchise necessary to allow it to conduct the business or
activities for which the Collateral is intended. 
 SECTION 13. No Partner. Notwithstanding anything to the contrary contained herein,
until such time, if any, as Secured Party or a successor thereto acquires the Collateral following the occurrence of an Event of Default, neither Secured Party nor any successor-in-interest thereof shall be deemed to be a partner in the Partnership.
The security interests granted to Secured Party herein are collateral assignments only, serving as security for the Secured Obligations. 
 SECTION 14. LIABILITY AND INDEMNIFICATION. SECURED PARTY SHALL NOT BE
LIABLE TO PLEDGOR FOR ANY ACT OR OMISSION BY SECURED PARTY UNLESS
SECURED PARTY’S CONDUCT CONSTITUTES WILLFUL MISCONDUCT OR GROSS NEGLIGENCE.
PLEDGOR AGREES TO INDEMNIFY AND TO HOLD SECURED PARTY HARMLESS FROM
AND AGAINST ALL LOSSES, LIABILITIES, CLAIMS, DAMAGES, REASONABLE COSTS AND EXPENSES
(INCLUDING REASONABLE ATTORNEYS’ FEES AND DISBURSEMENTS) WITH RESPECT TO
(I) ANY ACTION TAKEN OR ANY OMISSION BY SECURED PARTY WITH
RESPECT TO THIS AGREEMENT, PROVIDED THAT SECURED PARTY’S CONDUCT DOES
NOT CONSTITUTE WILLFUL MISCONDUCT OR NEGLIGENCE, (II) ANY CLAIMS ARISING OUT
OF PLEDGOR’S OWNERSHIP OF THE COLLATERAL OR SECURED PARTY’S
SECURITY INTEREST THEREIN, OR (III) SECURED PARTY’S ENFORCING THIS
AGREEMENT AGAINST PLEDGOR WHETHER OR NOT SUIT IS FILED, INCLUDING, WITHOUT
LIMITATION, ALL REASONABLE COSTS, REASONABLE ATTORNEYS’ FEES AND EXPENSES ACTUALLY
EXPENDED OR INCURRED BY SECURED PARTY IN CONNECTION WITH, OR IN
DEFENSE OF, ANY INSOLVENCY, BANKRUPTCY, REORGANIZATION, ARRANGEMENT OR OTHER SIMILAR
PROCEEDING INVOLVING PLEDGOR WHICH IN ANY WAY AFFECTS THE EXERCISE BY
SECURED PARTY OF ITS RIGHTS AND REMEDIES HEREUNDER. 
 SECTION 15. Continuing Security Interest; Assignment of Obligations. This Agreement shall create a continuing security interest in the Collateral
and shall (a) remain in full force and effect 

  

 - 8 - 

 
until payment in full of the Secured Obligations or the written termination of this Agreement by Secured Party, (b) be binding upon Pledgor, its
successors and assigns, (c) inure, together with the rights and remedies of Secured Party hereunder, to the benefit of Secured Party and its heirs, devisees, personal representatives and permitted assigns, (d) constitute, along with the
other documents referred to herein, the entire agreement between Pledgor and Secured Party with respect to the subject matter hereof, and (e) be severable in the event that one or more of the provisions herein is determined to be illegal or
unenforceable. 
 SECTION 16. Expenses. Pledgor will, upon demand, pay to Secured Party all reasonable expenses, including the
reasonable fees and expenses of its counsel and of any experts and agents, which Secured Party may incur in connection with (a) the administration of this Agreement, (b) the custody or preservation of, or the sale of, collection from, or
other realization upon, any of the Collateral, (c) the exercise or enforcement of any of the rights of Secured Party hereunder, and (d) the failure by Pledgor to perform or to observe any of the provisions hereof. 
 SECTION 17. Obligations Unconditional. The obligations of Pledgor under this Agreement shall be absolute and unconditional and shall not be
released, discharged, reduced, or in any way impaired by any circumstance whatsoever, including, without limitation, any amendment, modification, extension or renewal of this Agreement, the Secured Obligations, or any document or instrument
evidencing, securing or otherwise relating to the Secured Obligations, or any release, subordination, or impairment of collateral, or any waiver, consent, extension, indulgence, compromise, settlement, or other action or inaction in respect of this
Agreement, the Secured Obligations or any document or instrument evidencing, securing or otherwise relating to the Secured Obligations, or any exercise or failure to exercise any right, remedy, power or privilege in respect of the Secured
Obligations. No failure on the part of Secured Party to exercise and no delay in exercising, and no course of dealing with respect to, any right, power, or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, power or privilege under this Agreement preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights provided for in this Agreement are cumulative and not exclusive
of any rights and remedies provided by law. 
 SECTION 18. Return of Collateral. Subject to any duty imposed by law or by contract to
the holder of any subordinate lien on the Collateral known to Secured Party, and subject to the direction of a court of competent jurisdiction, upon payment in full of the Secured Obligations, Pledgor shall be entitled to return of the Collateral in
the possession of Secured Party; provided, however that Secured Party shall not be obligated to return to Pledgor or deliver to the holder of any subordinate lien any such Collateral until such time, but in no event to exceed ninety days after
payment in full of the Secured Obligations, as Secured Party is reasonably satisfied that the payment of the Secured Obligations is not subject to being recaptured under applicable bankruptcy laws. The return of Collateral, however effected, shall
be without recourse to Secured Party. The return of Collateral shall be effected without representation or warranty and shall entitle Pledgor to all necessary endorsements, without recourse or warranty. 
 SECTION 19. Amendments, Waiver. No amendment or waiver of any provision of this Agreement nor consent to any departure by Pledgor herefrom shall
in any event be effective unless the same shall be in writing and signed by Secured Party and Pledgor, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 
  

 - 9 - 

 SECTION 20. Notices. All notices, requests, demands, directions and other communications provided
for hereunder must be in writing and must be mailed, certified or registered mail, return receipt requested, telegraphed, telecopied, delivered or sent by cable or electronic mail to the appropriate party (and to the persons so designated to receive
copies thereof) at the addresses set forth below. Any notice, request, demand, direction or other communication required or permitted hereunder which is given by mail will be effective on the earlier of receipt or the third business day after
deposit in the United States mail with certified or registered postage prepaid; if given by telegraph or cable, when delivered to the telegraph company with charges prepaid; if given by telecopier, when received; or if given by personal delivery,
when delivered. Notices shall be addressed as follows: 
  

			
	If to Pledgor:	 	 Prime Offshore L.L.C.
 Attn: Beverly A.
Cummings
 1 Landmark Square, 11th Floor
 Stamford, Connecticut 06901
 Facsimile: (713) 461-9396
 E-mail: bcummings@primeenergy.com

		
	If to Secured Party:	 	 Artic Management Corporation
 Attn: Matthias
Eckenstein
 Solothurnerstrasse 94
 CH-4008 Basel, Switzerland

 Facsimile: 011-4161-361-7139
 E-mail: None

 Addresses for notices, requests, demands, directions and other communications provided for hereunder, and/or the
persons so designated to receive copies thereof, may be redesignated by a party by a written notice sent to all of the other parties hereunder. 
 SECTION 21. Counterparts. This Agreement may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same
instrument and shall be enforceable upon the execution of one or more counterparts hereof by each of the parties hereto. In this regard, each of the parties hereto acknowledges that a counterpart of this Agreement containing a set of counterpart
execution pages reflecting the execution of each party hereto shall be sufficient to reflect the execution of this Agreement by each necessary party hereto and shall constitute one instrument. 
 SECTION 22. Governing Law. THIS AGREEMENT IS TO BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF TEXAS. 
 SECTION 23. Reinstatement of Rights. Secured
Party’s rights hereunder shall be reinstated and revived, and the enforceability of this Agreement shall continue, with respect to any amount at any time paid on account of the Secured Obligations which thereafter shall be required to be
restored or returned by Secured Party upon the bankruptcy, insolvency or reorganization of Pledgor, or any other person, all as though such amount had not been paid. 
  

 - 10 - 

 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date first
above written. 
  

			
	SECURED PARTY:
	
	ARTIC MANAGEMENT CORPORATION
		
	By:	 	  

		 	Matthias Eckenstein
		 	President

 (Signatures continue on following page) 
  

 - 11 - 

			
	PLEDGOR:
	
	PRIME OFFSHORE L.L.C.
		
	By:	 	  

		 	Beverly A. Cummings
		 	Chief Executive Officer

  

 - 12 - 

 EXHIBIT “A” 
 ASSIGNMENT OF PARTNERSHIP INTEREST 
 For good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, Prime Offshore L.L.C., a Delaware limited liability company (“Assignor”), hereby sells, assigns, transfers and conveys to
                                         
                (“Assignee”), all of its right, title and interest in and to its partnership interest in FWOE Partners L.P., a Delaware limited
partnership (the “Partnership”), including, without limitation, Assignor’s right to receive from the Partnership all amounts payable to Assignor from and after the date hereof in consideration of the foregoing transfer.

 Assignee agrees that, subject to the immediately preceding sentence, it shall be bound by all of the terms and provisions of the
partnership agreement governing the Partnership and shall perform and observe all of the covenants, duties and obligations contained therein from and after the date of Assignee’s admission as a partner in the Partnership. 
 IN WITNESS WHEREOF, this Assignment of Partnership Interest is executed as of
                    , 20    . 
  

			
	ASSIGNOR:
	
	PRIME OFFSHORE L.L.C.
		
	By:	 	  

		 	Beverly A. Cummings
		 	Chief Executive Officer
	
	ASSIGNEE:

  

 A-i

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