Document:

Credit Agreement

 Exhibit 10.332 

EXECUTION COPY 

$800,000,000 

CREDIT AGREEMENT 

(364-DAY COMMITMENT) 

dated as of June 11, 2010 

Among 

THE CHARLES SCHWAB CORPORATION 

and 

CITIBANK, N.A. 

as Administrative Agent 

and 

THE OTHER FINANCIAL INSTITUTIONS PARTY HERETO 

and 

BANK OF AMERICA, N.A. 

THE BANK OF NEW YORK MELLON 

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH 

and 

WELLS FARGO BANK, NATIONAL ASSOCIATION 

as Co-Documentation Agents 

and 

JPMORGAN CHASE BANK, N.A. 

as Syndication Agent 

and 

CITIGROUP GLOBAL MARKETS INC. 

and 

J.P. MORGAN SECURITIES INC. 

as Joint Lead Arrangers and Book Managers 

							
	1.	 	DEFINITIONS.	  	1
			
	2.	 	THE CREDIT FACILITY.	  	11
				
		 	2.1	 	The Revolving Credit Facility	  	11
		 	2.2	 	Term Loan Facility	  	11
		 	2.3	 	Evidence of Borrowing/Promissory Notes	  	12
		 	2.4	 	Making of Revolving Loans and Term Loans, Borrowings; Interest Periods; Notice	  	13
		 	2.5	 	Conversion and Continuation Elections	  	14
		 	2.6	 	Interest Periods	  	15
		 	2.7	 	Interest Rates	  	16
		 	2.8	 	Substitute Rates	  	16
		 	2.9	 	Fees	  	17
		 	2.10	 	Reduction of Credit	  	17
		 	2.11	 	Termination Date; Extensions	  	18
		 	2.12	 	Payments by the Lenders to the Agent	  	18
		 	2.13	 	Sharing of Payments, Etc.	  	19
		 	2.14	 	Computation of Fees and Interest	  	20
			
	3.	 	PAYMENT.	  	20
				
		 	3.1	 	Repayment	  	20
		 	3.2	 	Method of Payment	  	20
		 	3.3	 	Optional Prepayment	  	20
		 	3.4	 	Taxes/Net Payments	  	21
		 	3.5	 	Illegality	  	21
		 	3.6	 	Increased Costs and Reduction of Return	  	22
		 	3.7	 	Funding Losses	  	23
		 	3.8	 	Certificates of Lenders	  	23
		 	3.9	 	Substitution of Lenders	  	23
		 	3.10	 	Survival	  	24
			
	4.	 	CONDITIONS.	  	24
				
		 	4.1	 	Conditions Precedent to the Effectiveness of this Agreement	  	24
		 	4.2	 	Conditions Precedent to Revolving Loans and Term Loans	  	25
			
	5.	 	REPRESENTATIONS AND WARRANTIES.	  	26
				
		 	5.1	 	Organization and Good Standing	  	26
		 	5.2	 	Corporate Power and Authority	  	26
		 	5.3	 	Enforceability	  	26
		 	5.4	 	No Violation of Laws or Agreements	  	26
		 	5.5	 	No Consents	  	27
		 	5.6	 	Financial Statements	  	27

  

 i 

							
		 	5.7	 	Broker Subsidiary Licenses, Etc.	  	27
		 	5.8	 	Broker Subsidiary/Broker Registration	  	27
		 	5.9	 	Broker Subsidiary/SIPC	  	27
		 	5.10	 	Taxes	  	27
		 	5.11	 	ERISA	  	27
		 	5.12	 	No Extension of Credit for Default Remedy/Hostile Acquisition	  	28
		 	5.13	 	Use of Proceeds/Margin Regulations	  	28
		 	5.14	 	Authorized Persons	  	28
		 	5.15	 	Material Contracts	  	28
		 	5.16	 	Litigation	  	28
		 	5.17	 	Investment Company	  	28
			
	6.	 	AFFIRMATIVE COVENANTS.	  	28
				
		 	6.1	 	Notice of Events of Default	  	29
		 	6.2	 	Financial Statements	  	29
		 	6.3	 	Insurance	  	29
		 	6.4	 	Books and Records	  	29
		 	6.5	 	Change in Business	  	29
		 	6.6	 	Capital Requirements	  	29
			
	7.	 	NEGATIVE COVENANTS.	  	30
				
		 	7.1	 	Net Capital	  	30
		 	7.2	 	Minimum Stockholders’ Equity	  	30
		 	7.3	 	Merger/Disposition of Assets	  	30
		 	7.4	 	Broker Subsidiary Indebtedness	  	30
		 	7.5	 	Indebtedness Secured by Subsidiary Stock	  	31
		 	7.6	 	Liens and Encumbrances	  	31
			
	8.	 	EVENTS OF DEFAULT.	  	31
				
		 	8.1	 	Defaults	  	31
		 	8.2	 	Remedies	  	33
			
	9.	 	THE AGENT.	  	33
				
		 	9.1	 	Appointment and Authorization	  	33
		 	9.2	 	Delegation of Duties	  	34
		 	9.3	 	Liability of Agent	  	34
		 	9.4	 	Reliance by Agent	  	34
		 	9.5	 	Notice of Default	  	35
		 	9.6	 	Credit Decision	  	35
		 	9.7	 	Indemnification of Agent	  	35
		 	9.8	 	Agent in Individual Capacity	  	36
		 	9.9	 	Successor Agent	  	36
		 	9.10	 	Withholding Tax	  	37
		 	9.11	 	Co-Agents	  	38

  

 ii 

							
			
	10.	 	MISCELLANEOUS.	  	38
				
		 	10.1	 	Amendments and Waivers	  	38
		 	10.2	 	Notices	  	39
		 	10.3	 	No Waiver-Cumulative Remedies	  	41
		 	10.4	 	Costs and Expenses	  	41
		 	10.5	 	Borrower Indemnification	  	41
		 	10.6	 	Payments Set Aside	  	42
		 	10.7	 	Successors and Assigns	  	43
		 	10.8	 	Assignments, Participations Etc.	  	43
		 	10.9	 	Confidentiality	  	45
		 	10.10	 	Notification of Addresses, Lending Offices, Etc.	  	46
		 	10.11	 	Counterparts	  	46
		 	10.12	 	Severability	  	46
		 	10.13	 	No Third Parties Benefited	  	46
		 	10.14	 	Governing Law and Jurisdiction	  	46
		 	10.15	 	Waiver of Jury Trial	  	46
		 	10.16	 	Entire Agreement	  	47
		 	10.17	 	Headings	  	47
		 	10.18	 	USA Patriot Act	  	47

  

 iii 

 SCHEDULES: 

Schedule 1 - Lenders’ Commitments 

Schedule 2 - List of Borrowing Agreements 

Schedule 6.2 - Compliance Certificate 
 Schedule
10.2 - Notices 
 EXHIBITS: 
 Exhibit
A-1 - Revolving Note 
 Exhibit A-2 - Term Note 

Exhibit B - Borrowing Advice 
 Exhibit C - Notice
of Conversion/Continuation 
 Exhibit D - Commitment and Termination Date Extension Request 

Exhibit E - Borrower’s Opinion of Counsel 

Exhibit F - Form of Assignment and Acceptance 
  

 iv 

 CREDIT AGREEMENT (364-DAY COMMITMENT) 

THIS CREDIT AGREEMENT (364-DAY COMMITMENT) (“this Agreement”) is entered into as of June 11, 2010,
among The Charles Schwab Corporation, a Delaware corporation (the “Borrower”), the several financial institutions from time to time party to this Agreement (collectively the “Lenders”; individually each a
“Lender”), and Citibank, N.A., as administrative agent for the Lenders (the “Agent”). 

WHEREAS, the Lenders are willing to make from time to time Revolving Loans to the Borrower through June 10, 2011,
and to make Term Loans to the Borrower on or before June 10, 2011 and maturing no later than June 8, 2012, upon the terms and subject to the conditions set forth in this Agreement. 

NOW, THEREFORE, in consideration of the premises and of the mutual agreements and covenants herein contained, the
parties hereto agree as follows: 
  

	1.	 DEFINITIONS 

.  The following terms have the following meanings: 

 

					
		 	 Affiliate:
	 	 As to any Person, any other Person which, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. A Person
shall be deemed to control another Person if the controlling Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of the other Person, whether through the ownership of voting securities,
membership interests, by contract, or otherwise.

			
		 	 Agent:
	 	 Citibank in its capacity as administrative agent for the Lenders hereunder and any successor agent appointed under
Section 9.9.

			
		 	 Agent-Related
	 	
		 	 Persons:
	 	 Citibank and any successor agent appointed under Section 9.9, together with Citibank’s Affiliate, the Arranger, and the officers, directors,
employees, agents and attorney-in-fact of such Persons and Affiliate.

			
		 	 Agreement:
	 	 This Credit Agreement.

			
		 	 Agent’s
	 	
		 	 Payment Office:
	 	 The address for payments set forth on the signature page hereto in relation to the Agent, or such other address as the Agent may from time to time specify.

			
		 	 Applicable Margin:
	 	 (i)      with respect to Eurodollar Rate Loans, the higher of 100% of the Index and 1.50% per annum;
and

					
		 		 	 (ii)      with respect to Base Rate Loans, the Applicable Margin set forth in clause (i) above minus 1.00% (but not less than
1.00%).

			
		 	 Arrangers:
	 	 Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.

			
		 	 Assignee:
	 	 The meaning specified in Section 10.8.

			
		 	 Attorney Costs:
	 	 Without duplication, (1) all fees and disbursements of any law firm or other external counsel, and (2) the allocated cost of internal legal services
and all disbursements of internal counsel.

			
		 	 Bank Subsidiary:
	 	 Any Federal savings association (as defined in 12 U.S.C. §1813(b)(2), any national member bank (as defined in 12 U.S.C. §1813(d)(1)) or state member
bank (as defined in 12 U.S.C. §1813(d)(2)) that is a subsidiary (as defined in 12 U.S.C. §1841(d)) of the Borrower.

			
		 	 Bankruptcy Code:
	 	 The Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et seq.), as amended.

		 		 	
		 	 Base Rate:
	 	 For any day, the highest of: (a) 0.500% per annum above the Federal Funds Rate; (b) the rate of interest in effect for such day as publicly announced from
time to time by Citibank, N.A. as its “Base Rate” and (c) the British Bankers Association Interest Settlement Rate applicable to Dollars for a period of one month (“One Month LIBOR”) plus 1.00% (for the avoidance of doubt, the
One Month LIBOR for any day shall be based on the rate appearing on Reuters LIBOR01 Page (or other commercially available source providing such quotations as designated by the Agent from time to time) at approximately 11:00 a.m. London time on such
day). The “Base Rate” described in clause (b) is a rate set by Citibank, N.A. based upon various factors including Citibank, N.A.’s costs and desired return, general economic conditions and other factors, and is used as a reference
point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in such rate announced by Citibank, N.A. shall take effect at the opening of business on the day specified in the public announcement of such
change.

			
		 	 Base Rate Loan:
	 	 A Revolving Loan or Term Loan that bears interest based on the Base Rate.

			
		 	 Borrowing:
	 	 A borrowing hereunder consisting of Revolving Loans or Term Loans of the same Type made to the Borrower on the same day by the Lenders under Section 2
and, other than in the case of a Base Rate Loan, having the same Interest Period.

  

 2 

					
		 	 Borrowing Advice:
	 	 A written request made by the Borrower with respect to any Loan substantially in the form of Exhibit B specifying the information required in
Section 2.4 hereof and executed by the Borrower from time to time.

			
		 	 Borrowing
	 	
		 	 Agreements:
	 	 The credit agreement(s) between the Borrower and the lenders listed in Schedule 2.

			
		 	 Borrowing Date:
	 	 Any date on which a Borrowing occurs under Section 2.4.

			
		 	 Broker Subsidiary:
	 	 Charles Schwab & Co., Inc., a California corporation, and its successors and assigns.

			
		 	 Business Day:
	 	 A day other than a Saturday, Sunday or any other day on which commercial banks are authorized or required to close in California or New York and, if the
applicable Business Day relates to a Eurodollar Rate Loan, such a day on which dealings are carried on in the applicable offshore dollar interbank market.

			
		 	 Capital Adequacy
	 	
		 	 Regulation:
	 	 Any guideline, directive or requirement of any central bank or other Governmental Authority, or any other law, rule or regulation, whether or not having the
force of law, in each case, regarding capital adequacy of any bank or of any corporation controlling a bank.

			
		 	 Change in
	 	
		 	 Control:
	 	 The consummation of a reorganization, merger or consolidation by the Borrower or the sale or other disposition of all or substantially all of the assets of
the Borrower (a “Business Combination”), unless, following such Business Combination, (i) no person or entity (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the
Borrower or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 35% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination
or the combined voting power of the then outstanding voting securities of such corporation (except to the extent that such ownership existed prior to the Business Combination); and (ii) at least a majority of the members of the board of directors of
the corporation resulting from such Business Combination were members of the board of directors of the Borrower as of the time of the action of the board of directors of the Borrower providing for such Business
Combination.

  

 3 

					
		 	 Citibank:
	 	 Citibank, N.A., a national banking association.

			
		 	 Closing Date:
	 	 The date (not before June 11, 2010) on which all conditions precedent set forth in Section 4 are satisfied or waived by all Lenders or, in the case of
subsection 4.1(g), waived by the person entitled to receive such payment.

			
		 	 Code:
	 	 The Internal Revenue Code of 1986, as amended, and Regulations promulgated thereunder.

			
		 	 Commitment:
	 	 The meaning specified in Section 2.1.

			
		 	 Commitment Fee:
	 	 The meaning specified in subsection 2.9(b).

			
		 	 Consolidated
	 	
		 	 Stockholders’ Equity:
	 	 With respect to any Person, as of any date of determination, all amounts that would, in accordance with GAAP, be included under shareholders’ equity on a
consolidated balance sheet of such Person as at such date, plus any preferred stock.

			
		 	 Controlled
	 	
		 	 Subsidiary:
	 	 Any corporation 80% of whose voting stock (except for any qualifying shares) is owned directly or indirectly by the Borrower.

			
		 	 Conversion/
	 	
		 	 Continuation Date:
	 	 Any date on which under Section 2.5, the Borrower (a) converts Loans of one Type to another Type, or (b) continues as Loans of the same Type, but with
a new Interest Period, Loans having Interest Periods expiring on such date.

			
		 	 Credit:
	 	 The aggregate amount of the Commitments of all Lenders to make Revolving Loans under the Revolving Credit Facility and Term Loans under the Term Loan Facility
in an amount not to exceed Eight Hundred Million and no/100 Dollars ($800,000,000.00), as the same may be reduced under Section 2.10.

			
		 	 Default:
	 	 Any event or circumstance which, with the giving of notice, the lapse of time, or both, would (if not cured or otherwise remedied during such time) constitute
an Event of Default.

			
		 	 Dollars,
	 	
		 	 dollars, and $:
	 	 Each mean lawful money of the United States.

			
		 	 Effective Amount:
	 	 With respect to any Revolving Loans and Term Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any Borrowings and
prepayments or repayments of Revolving Loans and Term Loans occurring on such date.

  

 4 

					
		 	 Eligible Assignee:
	 	 (i) A commercial bank organized under the laws of the United States, or any state thereof, and having total equity capital of at least $1,000,000,000 and
a senior debt rating of a least “A” by Standard & Poor’s Ratings Service, a Division of The McGraw-Hill Companies, Inc. or at least “A-2” by Moody’s Investors Service, Inc. or, if not rated by either of the
foregoing organizations, an equivalent rating from a nationally recognized statistical rating organization; or (ii) a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and
Development (the OECD), or a political subdivision of any such country, and having total equity capital of at least $1,000,000,000 and a senior debt rating of at least “A” by Standard & Poor’s Ratings Service, a Division of The
McGraw-Hill Companies, Inc. or at least “A-2” by Moody’s Investors Service, Inc., or, if not rated by either of the foregoing organizations, an equivalent rating from a nationally recognized statistical rating organization;
provided that such bank is acting through a branch or agency located in the United States.

			
		 	 Eurodollar
	 	
		 	 Base Rate:
	 	 For any Interest Period:

			
		 		 	 (a)      the rate per annum equal to the rate determined by the Agent to be the offered rate that appears on the page of the
Reuters screen (or any successor thereto) that displays an average British Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period,
determined as of approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period, or

			
		 		 	 (b)      in the event the rate referenced in the preceding subsection (a) does not appear on such page or service or such
page or service shall cease to be available, the rate per annum equal to the rate determined by the Agent to be the offered rate on such other page or other service that displays an average British Bankers Association Interest Settlement Rate for
deposits in Dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period, or

			
		 		 	 (c)      in the event the rates referenced in the preceding subsections (a) and (b) are not available, the rate
per annum equal to the average (rounded upward to the next 1/100th of 1%) of the rates of interest per annum notified to the Agent by each Reference Lender as the rate at which deposits in Dollars for delivery on
the

  

 5 

					
		 		 	 first day of such Interest Period in same day funds in the approximate amount of the Eurodollar Rate Loan being made, continued or converted by such Reference
Lender in its capacity as a Lender and with a term equivalent to such Interest Period would be offered by its Offshore Lending Office to major banks in the offshore Dollar market at their request at approximately 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period.

			
		 	 Eurodollar Rate:
	 	 The rate obtained by dividing (i) Eurodollar Base Rate by (ii) a percentage (expressed as a decimal) equal to 1.00 minus the Eurodollar Rate Reserve
Percentage.

			
		 	 Eurodollar Rate
	 	
		 	 Loan:
	 	 A Revolving Loan or Term Loan that bears interest based on the Eurodollar Rate.

			
		 	 Eurodollar Rate
	 	
		 	 Reserve Percentage:
	 	 For any Interest Period for any Loan for which the Eurodollar Rate has been selected or is applicable, the percentage (expressed as a decimal) as calculated
by the Agent that is in effect on the first day of such Interest Period, as prescribed by the Board of Governors of the U.S. Federal Reserve System (or any successor), for determining reserve requirements to be maintained by the Agent under
Regulation D (or any successor regulation thereof) as amended to the date hereof (including such reserve requirements as become applicable to the Agent pursuant to phase-in or other similar requirements of Regulation D at any time
subsequent to the date hereof) in respect of “Eurocurrency liabilities” (as defined in Regulation D). The Eurodollar Rate shall be adjusted automatically on and as of the effective date of any change in the Eurodollar Rate Reserve
Percentage.

			
		 	 Event of Default:
	 	 Any of the events or circumstances specified in Section 8.1.

			
		 	 Exchange Act:
	 	 The Securities and Exchange Act of 1934, as amended, and regulations promulgated thereunder.

			
		 	 Federal Funds Rate:
	 	 For any day, the interest rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York.

			
		 	 Fee Letters:
	 	 The meaning specified in subsection 2.9(a).

 

 6 

					
		 	 FRB:
	 	 The Board of Governors of the Federal Reserve System, and any Governmental Authority succeeding to any of its principal functions.

			
		 	 GAAP:
	 	 Generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting profession), which are
applicable to the circumstances as of the date of determination.

			
		 	 Governmental
	 	
		 	 Authority:
	 	 Any nation or government, any state or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any entity
exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other entity owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing.

			
		 	 Hedge Agreements:
	 	 Interest rate swap, interest rate cap or interest rate collar agreements.

			
		 	 Indebtedness:
	 	 As to any corporation, any obligation of, or guaranteed or assumed by, such corporation for (i) borrowed money evidenced by bonds, debentures, notes or other
similar instruments, (ii) the deferred purchase price of property or services (excluding trade and other accounts payable), (iii) the leasing of tangible personal property under leases which, under any applicable Financial Accounting Standards Board
Statement, have been or should be recorded as capitalized leases or (iv) direct or contingent obligations under letters of credit issued for the account of such corporation.

			
		 	 Indemnified
	 	
		 	 Liabilities:
	 	 The meaning specified in Section 10.5.

			
		 	 Indemnified Person:
	 	 The meaning specified in Section 10.5.

			
		 	 Index:
	 	 The average of the Markit CDX.NA.IG Series 14 or any successor series (5 Year Period) for the preceding 30 days or, if fewer, the number of days for which the
then current series is then in effect, determined (i) if used in respect of determining the Applicable Margin for Eurodollar Rate Loans, on the date that is two Business Days before the first day of the applicable Interest Period, and (ii) if used
in respect of determining the Applicable Margin for Base 

  

 7 

					
		 		 	 Rate Loans, on the date of borrowing of such Loans and thereafter quarterly on the last day of each March, June, September and December.

			
		 	 Insolvency
	 	
		 	 Proceeding:
	 	 As to a debtor, (a) any case, action or proceeding before any court or other Governmental Authority relating to bankruptcy, reorganization, insolvency,
liquidation, receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the benefit of creditors, composition, marshaling of assets for creditors, or other similar arrangement in respect of its creditors generally
or any substantial portion of its creditors, undertaken under U.S. Federal, state or foreign law, including the Bankruptcy Code.

			
		 	 Interest
	 	
		 	 Payment Date:
	 	 As to any Loan other than a Base Rate Loan, the last day of each Interest Period applicable to such Loan and, as to any Base Rate Loan, the last Business Day
of each calendar quarter, provided, however, that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the date that falls three months after the beginning of such Interest Period and after each Interest Payment Date
thereafter is also an Interest Payment Date.

			
		 	 Interest Period:
	 	 Any period specified in accordance with Section 2.6 hereof.

			
		 	 Intermediate
	 	
		 	 Parent:
	 	 Schwab Holdings, Inc., a Delaware corporation and its successors and assigns.

			
		 	 Lender:
	 	 The meaning specified in the introductory clause hereto.

			
		 	 Lending Office:
	 	 As to any Lender, the office or offices of such Lender specified as its “Lending Office” or “Domestic Lending Office” or “Offshore
Lending Office”, as the case may be, on Schedule 10.2, or such other office or offices as such Lender may from time to time notify the Borrower and the Agent.

			
		 	 Loan:
	 	 An extension of credit by a Lender to the Borrower under Section 2 in the form of a Revolving Loan or Term Loan.

		 		 	
			
		 	 Loan Document:
	 	 This Agreement, any Notes, the Fee Letters, and all other documents delivered to the Agent or any Lender in connection herewith.

			
		 	 Minimum
	 	
		 	 Stockholders’ Equity:
	 	 As of the Closing Date, and the last day of each fiscal quarter thereafter, the greater of:

 

 8 

  

					
		 		 	 (a)        $4,200,000,000, or

 
 (b)        the
sum of –
  

(i)        $4,200,000,000, plus

 
 (ii)      50% of the sum of
cumulative Net Earnings for each fiscal quarter commencing with the fiscal quarter ended June 30, 2010.

			
		 	Net Capital Ratio:	 	 As of the date of determination, that percentage of net capital to aggregate debit items of any entity subject to the Net Capital Rule 15c3-1 promulgated by the
Securities Exchange Commission pursuant to the Securities Exchange Act of 1934 and any successor or replacement rule or regulation therefor.

			
		 	Net Earnings:	 	 With respect to any fiscal period, the consolidated net income of the Borrower and its Subsidiaries, after taking into account all extraordinary items, taxes and
other proper charges and reserves for the applicable period, determined in accordance with U.S. generally accepted accounting principles, consistently applied.

			
		 	Note:	 	 A promissory note executed by the Borrower in favor of a Lender pursuant to Section 2.3 in substantially the form of Exhibits A-1 and A-2.

			
		 	 Notice of Conversion/

Continuation:
	 	 A notice in substantially the form of Exhibit C.

			
		 	Obligations:	 	 All borrowings, debts, liabilities, obligations, covenants and duties arising under any Loan Document owing by the Borrower to any Lender, the Agent, or any
Indemnified Person, whether direct or indirect (including those acquired by assignment), absolute or contingent, due or to become due, now existing or hereafter arising.

			
		 	Person:	 	 An individual, partnership, corporation, limited liability company, business trust, unincorporated association, trust, joint venture or Governmental Authority.

			
		 	Pro Rata Share:	 	 As to any Lender at any time, the percentage equivalent (expressed as a decimal, rounded to the ninth decimal place) at such time of such Lender’s
Commitment divided by the combined Commitments of all Lenders.

			
		 	Reference Lenders:	 	Citibank and JPMorgan Chase Bank, N.A.

  

 9 

					
		 	Replacement Lender:	 	 The meaning specified in Section 3.9.

			
		 	Required Lenders:	 	 At any time at least two Lenders then holding in excess of 50% of the then aggregate unpaid principal amount of the Loans, or, if no such principal amount is
then outstanding, at least two Lenders then having in excess of 50% of the Commitments.

			
		 	Requirement of Law:	 	 As to any Person, any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or of a Governmental Authority, in each case
applicable to or binding upon the Person or any of its property or to which the Person or any of its property is subject.

			
		 	Responsible Officer:	 	 Any senior vice president or more senior officer of the Borrower, or any other officer having substantially the same authority and responsibility; or, with
respect to compliance with financial covenants, the chief financial officer, executive vice president-finance, controller or the treasurer of the Borrower, or any other officer having substantially the same authority and
responsibility.

			
		 	 Revolving Credit
	 	
		 	Facility:	 	 The revolving credit facility available to the Borrower pursuant to Section 2.1 hereof.

			
		 	Revolving Loan:	 	 The meaning specified in Section 2.1, and may be a Base Rate Loan or a Eurodollar Rate Loan (each a “Type” of Revolving
Loan).

			
		 	Revolving Note:	 	 The meaning specified in Section 2.3.

			
		 	 Revolving
 Termination Date:

	 	 The earlier to occur of:

			
		 		 	 (a)    June 10, 2011; and

 

(b)    the date on which the Commitments terminate in accordance with the
provisions of this Agreement.

			
		 	SEC:	 	 The Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

			
		 	Senior Medium-	 	
		 	 Term Notes,
	 	
		 	Series A:	 	 Senior debt securities or senior subordinated debt securities issued by The Charles Schwab Corporation with a maturity between 9 months and 30 years in
accordance with the Senior Indenture, as amended, and the Senior Subordinated Indenture, as amended, both dated as of July 15, 1993 by and between The Charles 

 

 10 

					
		 		 	 Schwab Corporation and The Bank of New York Mellon Trust Company, N.A. as successor trustee to The Chase Manhattan Bank.

			
		 	Subsidiary:	 	 Any corporation or other entity of which a sufficient number of voting securities or other interests having power to elect a majority of the board of directors
or other persons performing similar functions are at the time directly or indirectly owned by the Borrower.

			
		 	Term Commitment:	 	 Eight Hundred Million and no/100 Dollars ($800,000,000.00), as the same may be reduced under Section 2.10.

			
		 	Term Loan:	 	 The meaning specified in Section 2.2 and may be a Base Rate Loan or Eurodollar Rate Loan (each a “Type” of Term
Loan).

			
		 	Term Loan Facility:	 	 The term loan facility available to the Borrower pursuant to Section 2.2 hereof.

			
		 	Term Loan Maturity	 	
		 	Date:	 	 The meaning specified in Section 2.2.

			
		 	Term Note:	 	 The meaning specified in Section 2.3.

			
		 	Term Out Fee:	 	 The meaning specified in subsection 2.9(c).

			
		 	Type:	 	 The meaning specified in the definition of “Revolving Loan”.

 

	2.	 THE CREDIT FACILITY. 

2.1      The Revolving Credit Facility 

Each Lender severally agrees, on the terms and conditions set forth herein, to make loans to the Borrower (each such loan, a
“Revolving Loan”) from time to time on any Business Day during the period from the Closing Date to the Revolving Termination Date, in an aggregate amount not to exceed at any time outstanding, together with the principal amount of
Term Loans outstanding in favor of such Lender at such time, the amount set forth next to such Lender’s name on Schedule 1 (such amount together with the Lender’s Pro Rata Share of the Term Commitment, as the same may be reduced under
Section 2.10 or as a result of one or more assignments under Section 10.8, the Lender’s “Commitment”); provided, however, that, after giving effect to any Borrowing of Revolving Loans, the
Effective Amount of all outstanding Revolving Loans shall not at any time exceed the combined Commitments; and provided further that the Effective Amount of the Revolving Loans, together with all Term Loans outstanding at such time, of
any Lender shall not at any time exceed such Lender’s Commitment. Within the limits of each Lender’s Commitment, and subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.1, prepay under
Section 3.3 and reborrow under this Section 2.1. 

2.2      Term Loan Facility 

 

 11 

 .  Each Lender severally agrees, on the terms and conditions set forth herein, to
make Loans to the Borrower during the period from the Closing Date to June 10, 2011, in an aggregate amount not to exceed such Lender’s Pro Rata Share of the Term Commitment. The Borrower from time to time may borrow under the Term Loan
Facility (and may reborrow any amount theretofore prepaid) until close of business on June 10, 2011, for a term not to exceed 364 days from the date of the Borrowing. Each such loan under the Term Loan Facility (a “Term Loan”)
shall be in the minimum amount of $10,000,000 and shall become due and payable on the last day of the term selected by the Borrower for such Term Loan (the “Term Loan Maturity Date”), which shall in no event be later than 364 days
from the date of such Term Loan. The maximum availability under the Term Loan Facility shall be the amount of the Credit minus the aggregate outstanding principal amount of Revolving Loans and Term Loans made by the Lenders; provided,
however, that to the extent the proceeds of a Term Loan are used to repay an outstanding Revolving Loan (or a portion thereof), such Revolving Loan (or portion thereof) shall not be considered part of the aggregate principal amount of
outstanding Revolving Loans made by the Lenders for purposes of this sentence (such maximum availability hereafter being referred to as the “Term Loan Availability”). Under no circumstances shall the aggregate outstanding principal
amount of Term Loans and Revolving Loans made by the Lenders exceed the Credit, and under no circumstances shall any Lender be obligated (i) to make any Term Loan (nor may the Borrower reborrow any amount heretofore prepaid) after June 10,
2011, or (ii) to make any Term Loan in excess of the Term Loan Availability. Each Term Loan made hereunder shall fully and finally mature and be due and payable in full on the Term Loan Maturity Date specified in the Borrowing Advice for such
Term Loan; provided, however, that to the extent the Borrowing Advice for any Term Loan selects an Interest Period that expires before the Term Loan Maturity Date specified in such Borrowing Advice, the Borrower may from time to time
select additional interest rate options and Interest Periods (none of which shall extend beyond the Term Loan Maturity Date for such Term Loan) by delivering a Borrowing Advice or Notice of Conversion/Continuation, as applicable. 

2.3      Evidence of Borrowing/Promissory Notes 

.    The obligation of the Borrower to repay the aggregate unpaid principal amount of the Revolving Loans and Term
Loans shall be evidenced by promissory notes of the Borrower (respectively the “Revolving Note and the Term Note”) in substantially the form attached hereto as Exhibits A-1 and A-2, with the blanks appropriately completed, payable
to the order of each Lender in the principal amount of its Commitment, bearing interest as hereinafter specified. Each Revolving Note and Term Note shall be dated, and shall be delivered to each Lender, on the date of the execution and delivery of
this Agreement by the Borrower. Each Lender shall, and is hereby authorized by the Borrower to, endorse on the schedule contained on the Revolving Note and Term Note, or on a continuation of such schedule attached thereto and made a part thereof,
appropriate notations regarding the Revolving Loans and Term Loans evidenced by such Note as specifically provided therein and such Lender’s record shall be conclusive absent manifest error; provided, however, that the failure to
make, or error in making, any such notation shall not limit or otherwise affect the obligations of the Borrower hereunder or under the Revolving Note and Term Note. The Agent, by notice to the Borrower (to be given not later than two Business Days
prior to the initial Borrowing or Term Loan hereunder) may request that Revolving Loans or Term Loans made hereunder for which the interest calculation is to be based on the Eurodollar Rate be evidenced by separate Revolving Notes (in the case of
Revolving 
  

 12 

 
Loans) and Term Notes (in the case of Term Loans), substantially in the form of Exhibit A-1 hereto (in the case of Revolving Loans) and Exhibit A-2 hereto (in the case of Term Loans), payable to
the order of each Lender for the account of its office, branch or affiliate it may designate as its Lending Office. 

2.4      Making of Revolving Loans and Term Loans, Borrowings; Interest Periods;
Notice. 
 (a)      Each Borrowing of Revolving Loans or Term Loans shall be
made upon Borrower’s irrevocable written notice delivered to the Agent in the form of a Borrowing Advice (which notice must be received by the Agent prior to 10:00 a.m. San Francisco time for a Eurodollar Rate Loan, and prior to 11:00 a.m. San
Francisco time for a Base Rate Loan) (i) the same Business Day as the requested Borrowing Date in the case of Base Rate Loans to be made on such Business Day, or (ii) three Business Days prior to the requested Borrowing Date in the case of
Eurodollar Rate Loans, with each Borrowing Advice setting forth the following information: 

(A)      the requested Borrowing Date, which shall be a Business Day, on which such
Revolving Loan or Term Loan is to be made; 
 (B)      for a Eurodollar Rate
Loan, the duration of the Interest Period selected in accordance with Section 2.6 hereof (if the Borrowing Advice fails to specify the duration of the Interest Period for any Borrowing comprised of a Eurodollar Rate Loan, such Interest
Period shall be three months); 
 (C)      the Type of Loans comprising the
Borrowing and the interest rate option selected in accordance with Section 2.7 hereof; and 

(D)      the aggregate principal amount of the Revolving Loan or Term Loan (which shall be
in an aggregate minimum amount of $10,000,000) to which such Interest Period and interest rate shall apply. 

(b)      The Agent will promptly notify each Lender of its receipt of any Borrowing Advice
and of the amount of such Lender’s Pro Rata Share of that Borrowing. 

(c)      Each Lender will make the amount of its Pro Rata Share of each Borrowing
available to the Agent for the account of the Borrower at the Agent’s Payment Office by 1:00 p.m. San Francisco time on the Borrowing Date requested by the Borrower in funds immediately available to the Agent. Each Loan to the Borrower under
this Agreement shall be made by 1:30 p.m. (San Francisco time) on the date of the Requested Borrowing Date, and shall be in immediately available funds (in the aggregate amount made available to the Agent by the Lenders) wired to the Borrower’s
account at Citibank, N.A. or such other account as may be designated by the Borrower in writing. 

(d)      After giving effect to any Borrowing, there may not be more than ten
(10) different Interest Periods in effect. 
  

 13 

 With respect to any Borrowing having an Interest Period ending on or before June 10,
2011, if prior to the last day of the Interest Period for such Borrowing the Borrower fails timely to provide a Notice of Conversion/Continuation in accordance with Section 2.5, such Borrowing shall, on the last day of the then-existing
Interest Period for such Borrowing, automatically convert into a Base Rate Loan. In the event of any such automatic conversion, the Borrower on the date of such conversion shall be deemed to make a representation and warranty to the Lenders that, to
the best of the Borrower’s knowledge, (i) neither the Borrower nor any Bank Subsidiary is in violation of the capital requirements as described in Section 6.6, (ii) the Broker Subsidiary is not in violation of minimum net
capital requirements as described in Section 7.1, (ii) the Borrower’s Consolidated Stockholders’ Equity is not below the Minimum Stockholders’ Equity as described in Section 7.2, and (iv) no amount
owing with respect to any Commitment Fee, any outstanding Borrowing, or any interest thereon, or any other amount hereunder, is due and unpaid. If prior to the last day of the Interest Period applicable to any Term Loan the Borrower fails timely to
provide a Notice of Conversion/Continuation in accordance with Section 2.5, such Term Loan shall, on the last day of the then-existing Interest Period for such Term Loan, automatically convert into a Base Rate Loan. 

2.5      Conversion and Continuation Elections. 

(a)      The Borrower may, upon irrevocable written notice to the Agent in accordance with
this Section 2.5: 
 (i)      elect, as of any Business Day, in the
case of Base Rate Loans, or as of the last day of the applicable Interest Period, in the case of any other Type of Loan, to convert any such Loan (or any part thereof in an amount not less than $10,000,000), into Loans of any other Type; or

 (ii)      elect as of the last day of the applicable Interest Period, to
continue any Loans having Interest Periods expiring on such day (or any part thereof in an amount not less than $10,000,000); 

provided, that if at any time the aggregate amount of Eurodollar Rate Loans in respect of any Borrowing is reduced, by payment,
prepayment, or conversion of part thereof to be less than $10,000,000, such Eurodollar Rate Loans shall automatically convert into Base Rate Loans. 

(b)      The Borrower shall deliver a Notice of Conversion/Continuation to be received by
the Agent not later than 10:00 a.m. San Francisco time for a Eurodollar Rate Loan, and not later than 11:00 a.m. San Francisco time for a Base Rate Loan, at least (i) three Business Days in advance of the Conversion/Continuation Date, as
to any Loan that is to be converted into or continued as a Eurodollar Rate Loan; and (ii) the same Business Day as the Conversion/Continuation Date, as to any Loan that is to be converted into a Base Rate Loan, specifying: 

(A)      the proposed Conversion/Continuation Date; 

 

 14 

 (B)      the aggregate amount of the Loan or
Loans to be converted or renewed; 
 (C)      the Type of Loan or Loans resulting
from the proposed conversion or continuation; and 
 (D)      other than in the
case of conversions into Base Rate Loans, the duration of the requested Interest Period. 

(c)      If upon the expiration of any Interest Period applicable to Eurodollar Rate
Loans, the Borrower has failed to select timely a new Interest Period to be applicable to such Eurodollar Rate Loans, or if any Default or Event of Default then exists, the Borrower shall be deemed to have elected to convert such Eurodollar Rate
Loans into Base Rate Loans effective as of the expiration date of such Interest Period. 

(d)      The Agent will promptly notify each Lender of its receipt of a Notice of
Conversion/Continuation, or, if no timely notice is provided by the Borrower, the Agent will promptly notify each Lender of the details of any automatic conversion. All conversions and continuations shall be made ratably according to the respective
outstanding principal amounts of the Loans with respect to which the notice was given as held by each Lender. 

(e)      Unless the Required Lenders otherwise agree, during the existence of a Default or
Event of Default, the Borrower may not elect to have a Loan converted into or continued as a Eurodollar Rate Loan. 

(f)      After giving effect to any conversion or continuation of Loans, there may not be
more than ten (10) different Interest Periods in effect. 

2.6      Interest Periods 

.  The Borrower may select for any Eurodollar Rate Loan the Interest Period (as defined in the next sentence) for each
Borrowing, it being understood that the Borrower may request multiple Borrowings on the same day and may select a different Interest Period for each such Borrowing. An Interest Period shall be each period, as selected by the Borrower in accordance
with the terms of this Agreement, beginning on the Borrowing Date of any Eurodollar Rate Loan, or on the Conversion/Continuation Date on which any Loan is converted into or continued as a Eurodollar Rate Loan, and ending on the date specified by the
Borrower that is one, two, three or six months thereafter; provided that whenever the first day of any Interest Period occurs on a day of an initial calendar month for which there is no numerically corresponding day in the calendar month that
succeeds such initial calendar month by the number of months equal to the number of months in such Interest Period, such Interest Period shall end on the last Business Day of such succeeding calendar month; and provided further that if
the last day of an Interest Period would be a day that is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day, unless such next succeeding Business Day is in a different calendar month, in which case such
interest period shall end on the next preceding Business Day; but provided, however, that (i) no Interest Period applicable to any Revolving Loan shall extend beyond the 

 

 15 

 
Revolving Termination Date; and (ii) no Interest Period applicable to any Term Loan shall extend beyond the Term Loan Maturity Date specified in the Borrowing Advice for such Term Loan,
which in no event shall be later than June 8, 2012. 
 2.7      Interest
Rates 
 . 

(a)      (i)  Each Revolving Loan, while outstanding, shall bear interest from
the applicable Borrowing Date at a rate per annum equal to the Eurodollar Rate or the Base Rate, as the case may be, (and subject to the Borrower’s right to convert to other Types of Loans under Section 2.5) plus the Applicable
Margin. 
 (ii)  Each Term Loan, while outstanding, shall bear interest from the applicable Borrowing
Date at a rate per annum equal to the Eurodollar Rate or the Base Rate, as the case may be, (and subject to the Borrower’s right to convert to other Types of Loans under Section 2.5) plus the Applicable Margin. 

(b)      Interest on each Revolving Loan and Term Loan shall be paid in arrears on each
Interest Payment Date. Interest shall also be paid on the date of any prepayment of Loans under Section 3.3 for the portion of the Loan so prepaid and upon payment (including prepayment) in full thereof, and, during the existence of any
Event of Default interest shall be paid on demand of the Agent at the request or with the consent of the Required Lenders. 

(c)      After the principal amount of any Revolving Loan or Term Loan, accrued interest
upon such Loan, the commitment fee, or any other amount hereunder shall have become due and payable by acceleration, or otherwise, it shall thereafter (until paid) bear interest, payable on demand, (i) until the end of the Interest Period with
respect to such Loan at a rate per annum equal to 2% per annum in excess of the rate or rates in effect with respect to such Loan, and (ii) thereafter, at a rate per annum equal to 2% per annum in excess of the Base Rate. 

2.8      Substitute Rates 

. If upon receipt by the Agent of a Borrowing Advice relating to any Borrowing or of a Notice of Conversion/Continuation: 

(a)      the Agent shall determine that by reason of changes affecting the London
interbank market, adequate and reasonable means do not exist for ascertaining the applicable Eurodollar Rate with respect to any Interest Period; or 

(b)      the Agent shall determine that by reason of any change since the date hereof in
any applicable law or governmental regulation (other than any such change in the regulations described in the definition of Eurodollar Rate Reserve Percentage in Section 1 hereof), guideline or order (or any interpretation thereof), the
adoption or enactment of any new law or governmental regulation or order or any other circumstance affecting the Lenders or the London interbank market, the Eurodollar Rate shall no longer represent the effective cost to the Lenders of U.S. dollar
deposits in the relevant amount and for the relevant period; or 
  

 16 

 (c)      Agent shall determine that, as a
result of any change since the date hereof in any applicable law or governmental regulation or as a result of the adoption of any new applicable law or governmental regulation, the applicable Eurodollar Rate would be unlawful; 

then, the Agent will promptly so notify the Borrower and each Lender, whereupon, the obligation of the Lenders to make or maintain
Eurodollar Rate Loans hereunder shall be suspended until the Agent upon the instruction of the Required Lenders revokes such notice in writing. Upon receipt of such notice, the Borrower may revoke any Notice of Borrowing or Notice of
Conversion/Continuation then submitted by it and, at its election, submit a Borrowing Advice or Notice of Conversion/Continuation selecting another Type of Loan. If the Borrower does not revoke such Notice or give a Notice as provided herein, the
Lenders shall make, convert or continue the Loans, as proposed by the Borrower in the amount specified in the applicable notice submitted by the Borrower, but such Loans shall be made, converted or continued as Base Rate Loans instead of Eurodollar
Rate Loans. 
 2.9      Fees 

. 

(a)      Arrangement, Agency Fees.      The Borrower
shall pay an arrangement fee to the Arrangers for their respective accounts, and shall pay an agency fee to the Agent for the Agent’s account, as required by the separate letter agreements (“Fee Letters”) between the Borrower
and each of the Arrangers and between the Borrower and the Agent, each dated May 4, 2010. 

(b)      Commitment Fee.  The Borrower shall pay to the Agent for the
account of each Lender a commitment fee (the “Commitment Fee”) on the actual daily unused portion of such Lender’s Commitment computed on a quarterly basis in arrears on the last Business Day of each quarter based upon the
daily utilization for that quarter as calculated by the Agent, equal to fifteen one hundredths of one percent (0.150%) per annum. For purposes of calculating utilization under this subsection, the Commitments shall be deemed used to the extent of
the Effective Amount of Revolving Loans and Term Loans then outstanding. Such Commitment Fee shall accrue from the Closing Date to the Revolving Termination Date and shall be due and payable quarterly in arrears on the last Business Day of each
quarter commencing on the quarter ending June 30, 2010 through the Revolving Termination Date, with the final payment to be made on the Revolving Termination Date; provided that, in connection with any reduction or termination of
Commitments under Section 2.10, the accrued commitment fee calculated for the period ending on such date shall also be paid on the date of such reduction or termination, with the following quarterly payment being calculated on the basis
of the period from such reduction or termination date to such quarterly payment date. 

(c)      Term Loan Fee.    The Borrower shall pay to the Agent
for the account of each Lender a term loan fee (the “Term Out Fee”) equal to one percent (1.00%) of the aggregate principal amount of all Term Loans outstanding on June 10, 2011, payable on such date. 

2.10      Reduction of Credit 

 

 17 

 .  The Borrower, from time to time, upon at least three (3) Business
Days’ written notice to the Agent, may terminate the commitments, or permanently reduce the Commitments by an aggregate minimum amount of $10,000,000, without penalty or premium; unless after giving effect thereto and to any prepayments of
Loans made on the effective date thereof, the Effective Amount of all Revolving Loans and Term Loans together would exceed the amount of the combined Commitments then in effect. Once reduced in accordance with this Section, the Commitments may not
be increased. Any reduction of the Commitments shall be applied to each Lender’s Commitment according to its Pro Rata Share. All accrued Commitment Fees to, but not including, the effective date of any reduction or termination of Commitments,
shall be paid on the effective date of such reduction or termination. During the continuation of the Credit, the computation of the Commitment Fee and the Lenders’ obligations to make Revolving Loans or Term Loans shall be based upon such
reduced Commitments. In the event the Credit shall be reduced to zero pursuant to this Section, the Credit shall be deemed terminated, and any Commitment Fee or any other amount payable hereunder then accrued shall become immediately payable. Such
termination of the Credit shall terminate the Borrower’s obligations with respect to the Commitment Fee to the extent not theretofore accrued and shall terminate the Lenders’ obligations to make any further Revolving Loans or Term Loans
under this Agreement. 
 2.11      Termination Date; Extensions 

.    The termination date of each Lender’s Commitment with respect to the Credit (the “Termination
Date”), including both the Revolving Credit Facility under Section 2.1 hereof and the Term Loan Facility under Section 2.2 hereof, is initially June 10, 2011. At any time no earlier than forty-five
(45) days and no later than thirty (30) days prior to the Termination Date then in effect (whether the initial Termination Date of June 10, 2011 or any later Termination Date as extended under this Section 2.11), the
Borrower may, by written notice to the Agent in the form attached as Exhibit D hereto, request that the Termination Date be extended for a period of 364 calendar days. Such request shall be irrevocable and binding upon the Borrower. In no event will
any Lender agree to approve any extension more than thirty (30) days before the Termination Date then in effect. Failure of any Lender to respond shall mean that such Lender has not approved such extension. If each Lender (in its sole
discretion) agrees to so extend its Commitment and the Termination Date (which agreement may be given or withheld in such Lender’s sole and absolute discretion), the Agent shall evidence such agreement by executing and returning to the Borrower
a copy of the Borrower’s written request no later than fifteen (15) days after the Agent’s receipt of the Borrower’s written request. If the Agent fails to so respond to and accept the Borrower’s request for extension of the
Termination Date then in effect, the Lenders’ Commitments shall be terminated on the Termination Date then in effect. If, on the other hand, the Agent so responds to and accepts the Borrower’s request for extension of the Termination Date,
then upon receipt by the Borrower of a copy of the Borrower’s written request countersigned by the Agent, (i) the Lenders’ Commitments then in effect and the Termination Date then in effect shall automatically be extended for the
364-day period specified in such written request, and (ii) each reference in this Agreement to “June 10, 2011”, and “June 8, 2012” (and any prior extension thereof pursuant to this Section 2.11) also shall
automatically be correspondingly extended for 364 days. 
 2.12      Payments
by the Lenders to the Agent 
 . 
  

 18 

 (a)      Unless the Agent receives notice
from a Lender on or prior to the Closing Date or, with respect to any Borrowing after the Closing Date, at least one Business Day before the date of such Borrowing in the case of a Eurodollar Rate Loan, or, in the case of a Base Rate Loan, prior to
noon (12:00) San Francisco time on the date of such Borrowing, that such Lender will not make available as and when required hereunder to the Agent for the account of the Company the amount of that Lender’s Pro Rata Share of the Borrowing,
the Agent may assume that each Lender has made such amount available to the Agent in immediately available funds on the Borrowing Date and the Agent may (but shall not be so required), in reliance upon such assumption, make available to the Borrower
on such date a corresponding amount. If and to the extent any Lender shall not have made its full amount available to the Agent in immediately available funds and the Agent in such circumstances has made a corresponding amount available to the
Borrower such Lender shall on the Business Day following such Borrowing Date make such amount available to the Agent, together with interest at the Federal Funds Rate for each day during such period. A notice of the Agent submitted to any Lender
with respect to amounts owing under this subsection (a) shall be conclusive, absent manifest error. If such amount is so made available, such payment to the Agent shall constitute such Lender’s Loan on the date of Borrowing for all
purposes of this Agreement. If such amount is not made available to the Agent on the Business Day following the Borrowing Date, the Agent will notify the Borrower of such failure to fund and, upon demand by the Agent, the Borrower shall pay such
amount to the Agent for the Agent’s account, together with interest thereon for each day elapsed since the date of such Borrowing, at a rate per annum equal to the interest rate applicable at the time to the Loans comprising such Borrowing.

 (b)      The failure of any Lender to make any Loan on any Borrowing Date
shall not relieve any other Lender of any obligation hereunder to make a Loan on such Borrowing Date, but no Lender shall be responsible for the failure of any other Lender to make the Loan to be made by such other Lender on any Borrowing Date.

 2.13      Sharing of Payments, Etc. 

.  If, other than as expressly provided elsewhere herein, any Lender shall obtain on account of the Loans made by it any payment
(whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) in excess of its Pro Rata Share, such Lender shall immediately (a) notify the Agent of such fact, and (b) purchase from the other Lenders such
participation in the Loans made by them as shall be necessary to cause such purchasing Lender to share the excess payment pro rata with each of them; provided, however, that if all or any portion of such excess payment is thereafter
recovered from the purchasing Lender, such purchase shall to that extent be rescinded and each other Lender shall repay to the purchasing Lender the purchase price paid therefor, together with an amount equal to such paying Lender’s ratable
share (according to the proportion of (i) the amount of such paying Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender
in respect of the total amount so recovered. The Borrower agrees that any Lender so purchasing a participation from another Lender may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off, but
subject to Section 10.5) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the amount of such participation. The Agent will keep records (which shall be

  

 19 

 
conclusive and binding in the absence of manifest error) of participation purchased under this Section and will in each case notify the Lenders following any such purchase or repayment.

 2.14      Computation of Fees and Interest 

. 

(a)      All computations of interest for Base Rate Loans when the Base Rate is determined
by Citibank N.A.’s “Base Rate” shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed. All other computations of interest, and all computation of fees under subsection 2.9(b)
and (c) shall be made on the basis of a 360-day year and actual days elapsed. Interest and such fees shall accrue during each period during which interest or such fees are computed from and including the first day thereof to and
excluding the last day thereof. 
 (b)      If any Reference Lender’s
Commitment shall terminate (otherwise than on termination of all the Commitments), or for any reason whatsoever such Reference Lender shall cease to be a Lender hereunder, such Reference Lender shall thereupon cease to be a Reference Lender, and the
determination of the Eurodollar Base Rate under subsection (c) of the definition of such term shall be determined on the basis of the rates as notified by the remaining Reference Lenders. 

 

	3.	 PAYMENT. 

3.1      Repayment 

. 

(a)      The Term Credit. The Borrower shall repay to the Agent for the account of
the Lenders the aggregate principal amount of the Term Loans outstanding on each Term Loan Maturity Date, as applicable. 

(b)      The Revolving Credit. The Borrower shall repay to the Agent, for the
account of the Lenders, on the Revolving Termination Date the aggregate principal amount of Revolving Loans outstanding on such date. 

3.2      Method of Payment 

.  All payments hereunder and under the Revolving Note and the Term Note shall be payable in lawful money of the United States
of America and in immediately available funds not later than 12:00 noon (San Francisco time) on the date when due at the principal office of the Agent or at such other place as the Agent may, from time to time, designate in writing to the Borrower.

 3.3      Optional Prepayment 

.  Subject to Section 3.7, the Borrower shall be entitled at any time or from time to time, upon not less than one
(1) Business Day irrevocable notice to the Agent, to ratably prepay Loans in whole or in part in minimum amounts of $10,000,000 without premium or penalty. Each notice of payment shall specify the date and aggregate principal amount of any such
prepayment and the Type(s) of Loans to be repaid. The Agent will promptly notify each Lender of its receipt of any 
  

 20 

 
such Notice and of such Lender’s Pro Rata Share of such prepayment. If such Notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount, specified in such
Notice shall be due and payable on the date specified therein, together with all accrued interest to each such date on the amount prepaid, and any amounts required in accordance with Section 3.7 hereof as a result of such prepayment.

 3.4      Taxes/Net Payments 

.  All payments by Borrower hereunder and under the Revolving Note and the Term Note to the Agent or any Lender shall be made
without set-off or counterclaim and in such amounts as may be necessary in order that all such payments, after deduction or withholding for or on account of any present or future taxes, levies, imposts, duties or other charges of whatsoever nature
imposed by any Governmental Authority or taxing authority thereof (collectively, “Taxes”), shall not be less than the amounts otherwise specified to be paid under this Agreement. The Borrower shall pay all Taxes when due and shall
promptly send to the Lender original tax receipts or copies thereof certified by the relevant taxing authority together with such other documentary evidence with respect to such payments as may be required from time to time by the Agent. If the
Borrower fails to pay any Taxes to the appropriate taxing authorities when due or fails to remit to the Agent or Lender any such original tax receipts or certified copies thereof as aforesaid or other required documentary evidence, the Borrower
shall indemnify the Agent or Lender within thirty (30) days of demand by the Lender or Agent for any taxes, interest or penalties that may become payable by the Agent or Lender as a result of such failure. 

Notwithstanding the foregoing, (i) the Borrower shall not be liable for the payment of any tax on or measured by the
net income of any Lender pursuant to the laws of the jurisdiction where an office of such Lender making any loan hereunder is located or does business, and (ii) the foregoing obligation to gross up the payments to any Lender so as not to deduct
or offset any withholding taxes or Taxes paid or payable by the Borrower with respect to any payments to such Lender shall not apply (x) to any payment to any Lender which is a “foreign corporation, partnership or trust” within the
meaning of the Code if such Lender is not, on the date hereof (or on the date it becomes a Lender under this Agreement pursuant to the assignment terms of this Agreement), or on any date hereafter that it is a Lender under this Agreement, entitled
to submit either a Form W-8BEN or any successor form thereto (relating to such Lender and entitling it to a complete exemption from withholding on all interest to be received by it hereunder in respect of the Loans) or Form W-8ECI or any successor
form thereto (relating to all interest to be received by such Lender hereunder in respect of the Loans) of the U.S. Department of Treasury, or (y) to any item referred to in the preceding sentence that would not have been imposed but for the
failure by such Lender to comply with any applicable certification, information, documentation or other reporting requirements concerning the nationality, residence, identity or connections of such Lender with the United States if such compliance is
required by statute or regulation of the United States as a precondition to relief or exemption from such item. 

3.5      Illegality 

. 

(a)      If any Lender determines that the introduction of any Requirement of Law, or any
change in any Requirement of Law, or in the interpretation or administration of 
  

 21 

 
any Requirement of Law, has made it unlawful, or that any central bank or other Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to make
Eurodollar Rate Loans, then, on notice thereof by the Lender to the Borrower through the Agent, any obligation of that Lender to make Eurodollar Rate Loans shall be suspended until the Lender notifies the Agent and the Borrower that the
circumstances giving rise to such determination no longer exist. 
 (b)      If a
Lender determines that it is unlawful to maintain any Eurodollar Rate Loan, the Borrower shall, upon its receipt of notice of such fact and demand from such Lender (with a copy to the Agent), prepay in full such Eurodollar Rate Loans of that Lender
then outstanding, together with interest accrued thereon and amounts required under Section 3.7, either on the last day of the Interest Period thereof, if the Lender may lawfully continue to maintain such Eurodollar Rate Loans to such
day, or immediately, if the Lender may not lawfully continue to maintain such Eurodollar Rate Loan. If the Borrower is required to so prepay any Eurodollar Rate Loan, then concurrently with such prepayment, the Borrower shall borrow from the
affected Lender, in the amount of such repayment, a Base Rate Loan. 

(c)      If the obligation of any Lender to make or maintain Eurodollar Rate Loans has
been so terminated or suspended, the Borrower may elect, by giving notice to the Lender through the Agent that all Loans which would otherwise be made by the Lender as Eurodollar Rate Loans shall be instead Base Rate Loans. 

(d)      Before giving any notice to the Agent under this Section, the affected Lender
shall designate a different Lending Office with respect to its Eurodollar Rate Loans if such designation will avoid the need for giving such notice or making such demand and will not, in the judgment of the Lender, be illegal or otherwise
disadvantageous to the Lender. 
 3.6      Increased Costs and Reduction of
Return 
 . 

(a)      If any Lender determines that, due to either (i) the introduction of or any
change (other than any change by way of imposition of or increase in reserve requirements included in the calculation of the Eurodollar Rate) in or in the interpretation of any law or regulation, or (ii) the compliance by that Lender with any
guideline or request from any central bank or other Governmental Authority (whether or not having the force of law), there shall be any increase in the cost to such Lender of agreeing to make or making, funding or maintaining any Eurodollar Rate
Loan, then the Borrower shall be liable for, and shall from time to time, upon demand (with a copy of such demand to be sent to the Agent), pay to the Agent for the account of such Lender, additional amounts as are sufficient to compensate such
Lender for such increased costs. 
 (b)      If any Lender shall have determined
that (i) the introduction of any Capital Adequacy Regulation, (ii) any change in any Capital Adequacy Regulation, (iii) any change in the interpretation or administration of any Capital Adequacy Regulation by any central bank or other
Governmental Authority charged with the interpretation or administration thereof, or (iv) compliance by the Lender (or its Lending Office) or any corporation controlling the 

 

 22 

 
Lender with any Capital Adequacy Regulation, affects or would affect the amount of capital required or expected to be maintained by the Lender or any corporation controlling the Lender and
determines that the amount of such capital is increased as a consequence of its Commitment, Loans, credits or obligations under this Agreement then, upon demand of such Lender to the Borrower through the Agent, the Borrower shall pay to the Lender,
from time to time as specified by the Lender, additional amounts sufficient to compensate the Lender for the cost of such increase. 

3.7      Funding Losses 

.  The Borrower shall reimburse each Lender and hold each Lender harmless from any loss or expense which the Lender may sustain
or incur as a consequence of: 
 (a)      the failure of the Borrower to make on
a timely basis any payment of principal of any Eurodollar Rate Loan; 

(b)      the failure of the Borrower to borrow, continue or convert a Loan after the
Borrower has given (or is deemed to have given) a Notice of Borrowing or a Notice of Conversion/Continuation; 

(c)      the failure of the Borrower to make any prepayment in accordance with any notice
delivered under Section 3.3; 
 (d)      the prepayment or other
payment (including after acceleration thereof) of any Eurodollar Rate Loan on a day that is not the last day of the relevant Interest Period; or 

(e)      the automatic conversion under Section 2.5 of any Eurodollar Rate
Loan to a Base Rate Loan on a day that is not the last day of the relevant Interest Period, 
 including any such loss or
expense arising from the liquidation or reemployment of funds obtained by it to maintain its Eurodollar Rate Loans or from fees payable to terminate the deposits from which such funds were obtained. For purposes of calculating amounts payable by the
Borrower to the Lenders under this Section and under subsection 3.6(a), each Eurodollar Rate Loan made by a Lender and each related reserve, special deposit or similar requirement shall be conclusively deemed to have been funded at the
LIBO-based rate used in determining the Eurodollar Rate for such Eurodollar Rate Loan by a matching deposit or other borrowing in the interbank eurodollar market for a comparable amount and for a comparable period, whether or not such Eurodollar
Rate Loan is in fact so funded,. 
 3.8      Certificates of Lenders

 . Any Lender claiming reimbursement or compensation under this Section 3 shall deliver to the Borrower (with a copy to the Agent) a
certificate setting forth in reasonable detail the amount payable to the Lender hereunder and such certificate shall be conclusive and binding on the Borrower in the absence of manifest error. 

3.9      Substitution of Lenders 

 

 23 

 .  Upon the receipt by the Borrower from any Lender (an “Affected
Lender”) of a claim for compensation under Section 3.6, the Borrower may: (i) request the Affected Lender to use its best efforts to obtain a replacement bank or financial institution satisfactory to the Borrower to acquire
and assume all or a ratable part of all of such Affected Lender’s Loans and Commitment (a “Replacement Lender”); (ii) request one or more of the other Lenders to acquire and assume all or part of such Affected
Lender’s Loans and Commitment (but no other Lender shall be required to do so); or (iii) designate a Replacement Lender. Any such designation of a Replacement Lender under clause (ii) or (iii) shall be subject to the prior
written consent of the Agent (which consent shall not be unreasonably withheld). 

3.10      Survival 

.  The agreements and obligations of the Borrower in this Section 3 shall survive the payment of all other Obligations.

  

	4.	 CONDITIONS. 

4.1      Conditions Precedent to the Effectiveness of this Agreement 

.  The obligation of each Lender to make its initial extension of credit hereunder is subject to the condition that the Agent
has received on or before the Closing Date all of the following in form and substance satisfactory to the Agent and each Lender, in sufficient copies for each Lender; 

(a)      This Agreement and the Notes executed by each party thereto. 

(b)      A copy of a resolution or resolutions adopted by the Board of Directors or
Executive Committee of the Borrower, certified by the Secretary or an Assistant Secretary of the Borrower as being in full force and effect on the date hereof, authorizing the execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated hereby, and a copy of the Certificate of Incorporation and the By-Laws of the Borrower, similarly certified. 

(c)      A certificate, signed by the Secretary or an Assistant Secretary of the Borrower
and dated the date hereof, as to the incumbency of the person or persons authorized to execute and deliver this Agreement. 

(d)      A certificate signed by the Chief Financial Officer, Treasurer or Corporate
Controller of the Borrower that, as of the date hereof, there has been no material adverse change in its consolidated financial condition since December 31, 2009 not reflected on its Quarterly Report on Form 10-Q filed with the SEC for the
period ending March 31, 2010. 
 (e)      A certificate, signed by the
Secretary or an Assistant Secretary of the Borrower and dated the date hereof, as to the persons authorized to execute and deliver a Borrowing Advice, a Notice of Conversion/Continuation, and the Revolving Notes and the Term Notes. The Agent and
each Lender may rely on such certificate with respect to the Revolving Loans and Term Loans hereunder unless and until it shall have received an updated certificate and, after receipt of such updated certificate, similarly may rely thereon.

  

 24 

 (f)      A written opinion, dated the date
hereof, of counsel for the Borrower, in the form of Exhibit E. 

(g)      Evidence of payment by the Borrower of all accrued and unpaid fees, costs and
expenses to the extent then due and payable on the Closing Date, together with Attorney Costs of Citibank to the extent invoiced prior to or on the Closing Date, plus such additional amounts of Attorney Costs as shall constitute Citibank’s
reasonable estimate of Attorney Costs incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude final settling of accounts between the Borrower and Citibank); including any
such costs, fees and expenses arising under or referenced in Sections 2.9 and 10.4. 

(h)      Written evidence that all of the Borrowing Agreements have been or concurrently
herewith are being terminated. 
 (i)      A certificate, signed by the Chief
Financial Officer, Treasurer or an Assistant Treasurer of the Borrower and dated as of the date hereof, which confirms that after giving effect to this Agreement, the aggregate principal amount of credit available under all of the Borrower’s
committed unsecured revolving credit facilities combined will not exceed the amount authorized under the resolutions of the Borrower referenced in subsection 4.1(b). 

4.2      Conditions Precedent to Revolving Loans and Term Loans 

.  The obligation of each Lender to make any Revolving Loan or Term Loan to be made by it (including its initial Revolving
Loan), or to continue or convert any Loan under Section 2.5 is subject to the satisfaction of the following conditions precedent on the relevant Borrowing Date or Conversion/Continuation Date: 

The Agent shall have received a Borrowing Advice or a Notice of Conversion/Continuation, as applicable. Each Borrowing Advice or Notice
of Conversion/Continuation given by the Borrower shall be deemed to be a representation and warranty by the Borrower to each Lender, effective on and as of the date of such Notice and as of such Borrowing Date for a Revolving Loan or Term Loan
covered thereby, that (i) the representations and warranties set forth in Section 5 hereof are true and correct as of such date, and (ii) no Default or Event of Default has occurred and is continuing. No Lender shall be
required to make any Loan hereunder if: 
 (a)      the Credit, the Revolving
Credit Facility (in the case of a Revolving Loan) or the Term Loan Facility (in the case of a Term Loan) has been terminated; or 

(b)      any of the representations or warranties of the Borrower set forth in
Section 5 hereof shall prove to have been untrue in any material respect when made, or when any Default or Event of Default as defined in Section 8, has occurred; or 

(c)      the Borrower or any Bank Subsidiary is in violation of the capital requirements
as described in Section 6.6; or 
  

 25 

 (d)      the Broker Subsidiary is in
violation of minimum net capital requirements as described in Section 7.1; or 

(e)      the Borrower’s Consolidated Stockholders’ Equity is below the Minimum
Stockholders’ Equity as described in Section 7.2; or 

(f)      any amount owing with respect to any Commitment Fee or any outstanding Revolving
Loan or Term Loan or any interest thereon or any other amount payable hereunder is due and unpaid. 
  

	5.	 REPRESENTATIONS AND WARRANTIES. 

The Borrower represents and warrants to the Agent and each Lender, as of the date of delivery of this Agreement and as of
the date of any Revolving Loan or Term Loan, as follows: 

5.1      Organization and Good Standing 

.  The Borrower is a corporation duly organized, validly existing and in good standing under the laws of the state of Delaware
and has full power, authority and legal right and has all governmental licenses, authorizations, qualifications and approvals required to own its property and assets and to transact the business in which it is engaged; and all of the outstanding
shares of capital stock of Borrower have been duly authorized and validly issued, are fully paid and non-assessable. 

5.2      Corporate Power and Authority 

.  The Borrower has full power, authority and legal right to execute and deliver, and to perform its obligations under, this
Agreement, and to borrow hereunder, and has taken all necessary corporate and legal action to authorize the borrowings hereunder on the terms and conditions of this Agreement and to authorize the execution and delivery of this Agreement, and the
performance of the terms thereof. 
 5.3      Enforceability 

.  This Agreement has been duly authorized and executed by the Borrower, and when delivered to the Lenders will be a legal,
valid and binding agreement of the Borrower, enforceable against the Borrower in accordance with its terms, except, in each case, as enforcement thereof may be limited by bankruptcy, insolvency or other laws relating to or affecting enforcement of
creditors’ rights or by general equity principles. 
 5.4      No
Violation of Laws or Agreements 
 .  The execution and delivery of this Agreement by the Borrower and the
performance of the terms hereof will not violate any provision of any law or regulation or any judgment, order or determination of any court or governmental authority or of the charter or by-laws of, or any securities issued by, the Borrower or any
provision of any mortgage, indenture, loan or security agreement, or other instrument, to which the Borrower is a party or which purports to be binding upon it or any of its assets in any respect that reasonably could be expected to have a material
adverse effect on the Borrower and its Subsidiaries taken as a whole on a consolidated basis; nor will the execution and the delivery of this Agreement by the Borrower and the performance of 

 

 26 

 
the terms hereof result in the creation of any lien or security interest on any assets of the Borrower pursuant to the provisions of any of the foregoing. 

5.5      No Consents 

.  Except as disclosed in writing by Borrower, no consents of others (including, without limitation, stockholders and creditors
of the Borrower) nor any consents or authorizations of, exemptions by, or registrations, filings or declarations with, any Governmental Authority are required to be obtained by the Borrower in connection with the execution and delivery of this
Agreement and the performance of the terms thereof. 
 5.6      Financial
Statements 
 .  The consolidated financial statements of the Borrower contained in the documents previously
delivered to each Lender have been prepared in accordance with U.S. generally accepted accounting principles and present fairly the consolidated financial position of the Borrower. 

5.7      Broker Subsidiary Licenses, Etc 

.  The Broker Subsidiary possesses all material licenses, permits and approvals necessary for the conduct of its business as now
conducted and as presently proposed to be conducted as are required by law or the applicable rules of the SEC and the Financial Industry Regulatory Authority. 

5.8      Broker Subsidiary/Broker Registration 

.  The Broker Subsidiary is registered as a broker-dealer under the Securities Exchange Act of 1934, as amended. 

5.9      Broker Subsidiary/SIPC 

.  The Broker Subsidiary is not in arrears with respect to any assessment made upon it by the Securities Investor Protection
Corporation, except for any assessment being contested by the Broker Subsidiary in good faith by appropriate proceedings and with respect to which adequate reserves or other provisions are being maintained to the extent required by U.S. generally
accepted accounting principles. 
 5.10      Taxes 

.  The Borrower has paid and discharged or caused to be paid and discharged all taxes, assessments, and governmental charges
prior to the date on which the same would have become delinquent, except to the extent that such taxes, assessments or charges are being contested in good faith and by appropriate proceedings by or on behalf of the Borrower and with respect to which
adequate reserves or other provisions are being maintained to the extent required by U.S. generally accepted accounting principles. 

5.11      ERISA 

.  The Borrower is in all material respects in compliance with the provisions of and regulations under the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), and the Code applicable to any pension or other employee benefit plan established or maintained by the Borrower or to which contributions are made by the Borrower (the
“Plans”). The Borrower has met all of the funding standards applicable to each of its Plans, and there exists no event or 

 

 27 

 
condition that would permit the institution of proceedings to terminate any of the Plans under Section 4042 of ERISA. The estimated current value of the benefits vested under each of the
Plans does not, and upon termination of any of the Plans will not, exceed the estimated current value of any such Plan’s assets. The Borrower has not, with respect to any of the Plans, engaged in a prohibited transaction set forth in
Section 406 of ERISA or Section 4975(c) of the Code that could be expected to have a material adverse effect on the Borrower and its Subsidiaries taken as a whole on a consolidated basis. 

5.12      No Extension of Credit for Default Remedy/Hostile Acquisition 

.  The Borrower will not use any amounts borrowed by it under this Agreement to remedy a default under any mortgage, indenture,
agreement or instrument under which there may be issued any Indebtedness of the Borrower to any bank or bank holding company, or their respective assignees, for borrowed money. Further, the Borrower will not use any amounts advanced to it under this
Agreement for the immediate purpose of acquiring a company where the Board of Directors or other governing body of the entity being acquired has made (and not rescinded) a public statement opposing such acquisition. 

5.13      Use of Proceeds/Margin Regulations 

.  The Borrower will use the proceeds for general corporate purposes, including, without limitation, for the back-up of the
issuance of commercial paper notes. The Borrower will not use the proceeds of any loan provided hereby in such a manner as to result in a violation of Regulations T, U or X of the Board of Governors of the Federal Reserve System. 

5.14      Authorized Persons 

.  The persons named for such purpose in the certificates delivered pursuant to subsection 4.1(e) hereof are authorized
to execute Borrowing Advices. 
 5.15      Material Contracts 

.  Borrower is not in default in the performance or observance of any material obligation, agreement, covenant or condition
contained in any material contract, indenture, mortgage, loan agreement, note or lease to which the Borrower is a party or by which it may be bound. 

5.16      Litigation 

.  Except for any matter disclosed in the Form 10-Q filed by the Borrower with the SEC on May 7, 2010, there is no action, suit
or proceeding pending against, or to the knowledge of the Borrower, threatened against or affecting, the Borrower or any of its Subsidiaries before any court, arbitrator, governmental body, agency or official in which there is a significant
probability of an adverse decision which could have a material adverse effect on the business or the financial condition of the Borrower. 

5.17      Investment Company 

.  The Borrower is not an “investment company” or a company “controlled” by an “investment
company” within the meaning of the Investment Company Act of 1940, as amended. 
  

	6.	 AFFIRMATIVE COVENANTS. 

  

 28 

 The Borrower covenants and agrees that so long as any Lender shall have a
Commitment hereunder or any Loan or other obligation hereunder shall remain outstanding, unpaid or unsatisfied and until full payment of all amounts due to the Lenders hereunder, it will, unless and to the extent the Required Lenders waive
compliance in writing: 
 6.1      Notice of Events of Default 

.  Give prompt notice to the Agent and each Lender, no later than three Business Days after becoming aware thereof, of any
Default or Event of Default. 
 6.2      Financial Statements 

.  Deliver to the Agent, in form and detail satisfactory to the Agent and the Required Lenders with sufficient copies for each
Lender, within ten Business Days of the filing thereof with the SEC, a copy of (i) each registration statement filed under the Securities Act of 1933, (ii) each Form 10-Q and Form 10-K (in each case including exhibits) filed by the
Borrower with the SEC under the Securities Exchange Act of 1934, as amended, accompanied by a compliance certificate with an attached schedule of calculations (in the form attached hereto as Schedule 6.2) demonstrating compliance with the
Section 7.1 and 7.2 financial covenants, and (iii) each Form 8-K (with exhibits) and proxy statement filed by the Borrower with the SEC under the Securities Exchange Act of 1934, as amended; and, in the event the Borrower
requests an extension of any such filing from the SEC, promptly (but not later than the second Business Day following the filing of such request) deliver a copy of such request to the Agent. 

6.3      Insurance 

.  Maintain and keep in force in adequate amounts such insurance as is usual in the business carried on by the Borrower and
cause the Broker Subsidiary to maintain and keep in force in adequate amounts such insurance as is usual in the business carried on by the Broker Subsidiary. 

6.4      Books and Records 

.  Maintain adequate books, accounts and records and prepare all financial statements required hereunder in accordance with U.S.
generally accepted accounting principles and practices and in compliance with the regulations of any governmental regulatory body having jurisdiction thereof. 

6.5      Change in Business 

.  Advise the Agent and each Lender, in a timely manner, of material changes to the nature of business of the Borrower or the
Broker Subsidiary as at present conducted. The Broker Subsidiary is at present engaged in the business of providing financial services, primarily to individual investors and/or their advisors. 

6.6      Capital Requirements 

.  The Borrower will maintain, and cause each Bank Subsidiary to maintain, at all times such amount of capital as may be
prescribed by the Office of Thrift Supervision (in the case of the Borrower and any Federal savings association), Board of Governors of the Federal Reserve System (in the case of any state member Bank Subsidiary) or the Comptroller of the Currency
(in the case of any national member Bank Subsidiary), as the case may be, from time to time, whether by regulation, agreement or order. The Borrower shall at all times ensure that all Bank 

 

 29 

 
Subsidiaries shall be “well capitalized” within the meaning of 12 U.S.C. §1831(o), as amended, reenacted or redesignated from time to time. 

 

	7.	 NEGATIVE COVENANTS. 

The Borrower covenants and agrees that so long as any Lender shall have any Commitment hereunder, or any Loan or other obligation, shall
remain outstanding, unpaid or unsatisfied and until full payment of all amounts due to the Lenders hereunder, unless and to the extent the Required Lenders waive compliance in writing: 

7.1      Net Capital 

.  The Borrower will not permit the Broker Subsidiary to allow any month-end Net Capital Ratio to be less than 5%. 

7.2      Minimum Stockholders’ Equity 

.  The Borrower will not allow its Consolidated Stockholders’ Equity to fall below the Minimum Stockholders’ Equity.

 7.3      Merger/Disposition of Assets 

.  The Borrower will not (i) permit either Broker Subsidiary or Intermediate Parent to (a) merge or consolidate,
unless the surviving company is a Controlled Subsidiary, or (b) convey or transfer its properties and assets substantially as an entirety except to one or more Controlled Subsidiaries; or (ii) except as permitted by subsection
7.3(i) sell, transfer or otherwise dispose of any voting stock of Broker Subsidiary or Intermediate Parent, or permit either Broker Subsidiary or Intermediate Parent to issue, sell or otherwise dispose of any of its voting stock, unless,
after giving effect to any such transaction, Broker Subsidiary or Intermediate Parent, as the case may be, remains a Controlled Subsidiary. 

7.4      Broker Subsidiary Indebtedness 

.  The Borrower will not permit the Broker Subsidiary to create, incur or assume any Indebtedness other than: 

(a)      (i)      Indebtedness to customers, other brokers
or dealers, securities exchanges or securities markets, self-regulatory organizations, clearing houses and like institutions (including, without limitation, letters of credit or similar credit support devices issued for the account of Broker
Subsidiary and for the benefit of any of the foregoing in order to comply with any margin, collateral or similar requirements imposed by or for the benefit of any of the foregoing), (ii) “broker call” credit, (iii) indebtedness
consisting of borrowings secured solely by margin loans made by Broker Subsidiary, together with any underlying collateral of Broker Subsidiary, (iv) stock loans, (v) obligations to banks for disbursement accounts, (vi) Indebtedness
incurred for the purchase of tangible personal property on a non-recourse basis or for the leasing of tangible personal property under a capitalized lease, (vii) Indebtedness incurred for the purchase, installation or servicing of computer
equipment and software, and (viii) Indebtedness incurred in the ordinary course of the Broker Subsidiary’s business, to the extent not already included in the foregoing clauses (i) through (vii); 

(b)      intercompany Indebtedness; and 

 

 30 

 (c)      other Indebtedness in the aggregate
not exceeding $100,000,000. 
 7.5      Indebtedness Secured by Subsidiary
Stock 
 .  The Borrower will not, and will not permit any Subsidiary at any time directly or indirectly to create,
assume, incur or permit to exist any Indebtedness secured by a pledge, lien or other encumbrance (hereinafter referred to as a “lien”) on the voting stock of any Subsidiary without making effective provision whereby the Revolving
Notes and the Term Notes shall be secured equally and ratably with such secured Indebtedness so long as other Indebtedness shall be so secured; provided, however, that the foregoing covenant shall not be applicable to Permitted Liens
(as defined in Section 7.6 below). 
 7.6      Liens and
Encumbrances 
 .  The Borrower will not create, incur, assume or suffer to exist any lien or encumbrance upon or
with respect to any of its properties, whether now owned or hereafter acquired, except the following (the “Permitted Liens”): 

(a)      liens securing taxes, assessments or governmental charges or levies, or in
connection with workers’ compensation, unemployment insurance or social security obligations, or the claims or demands of materialmen, mechanics, carriers, warehousemen, landlords and other like persons not yet delinquent or which are being
contested in good faith by appropriate proceedings with respect to which adequate reserves or other provisions are being maintained to the extent required by U.S. generally accepted accounting principles; 

(b)      liens not for borrowed money incidental to the conduct of its business or the
ownership of property that do not materially detract from the value of any item of property; 

(c)      attachment, judgment or other similar liens arising in the connection with court
proceedings that do not, in the aggregate, materially detract from the value of its property, materially impair the use thereof in the operation of its businesses and (i) that are discharged or stayed within sixty (60) days of attachment
or levy, or (ii) payment of which is covered in full (subject to customary and reasonable deductibles) by insurance or surety bonds; and 

(d)      liens existing at Closing Date provided that the obligations secured
thereby are not increased. 
  

	8.	 EVENTS OF DEFAULT. 

8.1      Defaults 

.  The occurrence of any of the following events shall constitute an “Event of Default”: 

(a)      The Borrower shall fail to pay any interest with respect to the Revolving Notes
or the Term Notes or any Commitment Fee or Term Out Fee in accordance with the terms hereof within 10 days after such payment is due. 
  

 31 

 (b)      The Borrower shall fail to pay any
principal with respect to the Revolving Notes or the Term Notes in accordance with the terms thereof on the date when due. 

(c)      Any representation or warranty made by the Borrower herein or hereunder or in any
certificate or other document furnished by the Borrower hereunder shall prove to have been incorrect when made (or deemed made) in any respect that is materially adverse to the interests of the Lenders or their rights and remedies hereunder.

 (d)      Except as specified in (a) and (b) above, the Borrower
shall default in the performance of, or breach, any covenant of the Borrower with respect to this Agreement, and such default or breach shall continue for a period of thirty days after there has been given, by registered or certified mail, to the
Borrower by the Agent a written notice specifying such default or breach and requiring it to be remedied. 

(e)      An event of default as defined in any mortgage, indenture, agreement or
instrument under which there may be issued, or by which there may be secured or evidenced, any Indebtedness of the Borrower in a principal amount not less than $75,000,000, shall have occurred and shall result in such Indebtedness becoming or being
declared due and payable prior to the date on which it otherwise would become due and payable, or an event of default or a termination event as defined in any Hedge Agreement shall have occurred and shall result in a net payment obligation of the
Borrower thereunder of not less than $75,000,000; provided, however, that if such event of default shall be remedied or cured by the Borrower, or waived by the holders of such Indebtedness, within twenty days after the Borrower has
received written notice of such event of default and acceleration, then the Event of Default hereunder by reason thereof shall be deemed likewise to have thereupon been remedied, cured or waived without further action upon the part of either the
Borrower or the Agent and Lenders. 
 (f)      Any involuntary proceeding shall
be commenced or an involuntary petition shall be filed in a court of competent jurisdiction seeking (i) relief against the Borrower or the Broker Subsidiary, or against all or a substantial part of the property of either of them, under Title 11
of the United States Code or any other federal, state or foreign bankruptcy, insolvency, reorganization or similar law, (ii) the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for the
Borrower or the Broker Subsidiary or for all or a substantial part of the property of either of them, or (iii) the winding-up or liquidation of the Borrower or the Broker Subsidiary; and, in any such case, such involuntary proceeding or
involuntary petition shall continue undismissed for 60 days, or, before such 60-day period has elapsed, there shall be entered an order or decree ordering the relief requested in such involuntary proceeding or involuntary petition. 

(g)      The Borrower or the Broker Subsidiary shall commence a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or shall consent to the entry of an order for relief in an involuntary case under such law, or shall consent to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Borrower or Broker Subsidiary or for any substantial part of its respective properties, or shall make any general assignment for the

  

 32 

 
benefit of creditors, or shall fail generally to pay its respective debts as they become due or shall take any corporate action in furtherance of any of the foregoing. 

(h)      A final judgment or judgments for the payment of money in excess of $75,000,000
in the aggregate shall be entered against the Borrower by a court or courts of competent jurisdiction, and the same shall not be discharged (or provisions shall not be made for such discharge), or a stay of execution thereof shall not be procured,
within 30 days from the date of entry thereof and the Borrower shall not, within said period of 30 days, or such longer period during which execution of the same shall have been stayed, appeal therefrom and cause the execution thereof to be stayed
during such appeal. 
 (i)      At any time after a Change in Control, the
Borrower fails to maintain at least one of the following credit ratings for its Senior Medium-Term Notes, Series A: (a) BBB- (or better) by Standard & Poor’s Ratings Service, a Division of The McGraw-Hill Companies, Inc., or
(b) Baa3 (or better) by Moody’s Investors Service, Inc. 

8.2      Remedies 

.  If an Event of Default occurs and is continuing, then and in every such case the Agent shall, at the request of, or may, with
the consent of, the Required Lenders (i) declare the Commitment of each Lender to make Loans to be terminated whereupon such Commitments and obligation shall be terminated, and declare the unpaid principal of all outstanding Loans, any and all
accrued and unpaid interest, any accrued and unpaid Commitment Fees, or any other amounts owing or payable under the Notes, to be immediately due and payable, by a notice in writing to the Borrower, and upon such declaration such principal,
interest, Commitment Fees, or other amounts payable hereunder and accrued thereon shall become immediately due and payable, together with any funding losses that may result as a consequence of such declaration, without presentment, demand, protest
or other notice of any kind, all of which are expressly waived by the Borrower; provided, however, that in the case of any of the Events of Default specified in subsection (f) or (g) of Section 8.1,
automatically without any notice to the Borrower or any other act by the Agent, the Credit and the obligations of each Lender to make Loans shall automatically terminate and the unpaid principal amount of all outstanding Loans, any accrued and
unpaid interest, any accrued and unpaid Commitment Fees or any other amounts payable hereunder shall become immediately due and payable, together with any funding losses that may result as a consequence thereof, without further act of the Agent or
any Lender and without presentment, demand, protest or other notice of any kind, all of which are expressly waived by the Borrower. 
  

	9.	 THE AGENT. 

9.1      Appointment and Authorization 

.  Each Lender hereby irrevocably (subject to Section 9.9) appoints, designates and authorizes the Agent to take
such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other Loan Document, together
with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained 
  

 33 

 
elsewhere in this Agreement or in any other Loan Document, the Agent shall not have any duties or responsibilities except those expressly set forth, nor shall the Agent have or be deemed to have
any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Agent. 

9.2      Delegation of Duties 

.  The Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects with reasonable care.

 9.3      Liability of Agent 

.  None of the Agent-Related Persons shall (i) be liable for any action taken or omitted to be taken by any of them under
or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct), or (ii) be responsible in any manner to any of the Lenders for any recital,
statement, representation or warranty made by the Borrower or any Subsidiary or Affiliate of the Borrower, or any officer thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report, statement or other document
referred to or provided for in, or received by the Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document,
or for any failure of the Borrower or any other party to any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of the Borrower or any of the Borrower’s Subsidiaries or Affiliates. 

9.4      Reliance by Agent 

. 

(a)      The Agent shall be entitled to rely, and shall be fully protected in relying,
upon any writing, resolution, notice, consent, certificate, affidavit, letter, facsimile, telex or telephone message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons, and upon advice and statements of legal counsel (including counsel to the Borrower), independent accountants and other experts selected by the Agent. The Agent shall be fully justified in failing or refusing to take any
action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of the Required Lenders as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Lenders
against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. The Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any
other Loan Document in accordance with a request or consent of the Required Lenders and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Lenders. 

 

 34 

 (b)      For purposes of determining
compliance with the conditions specified in Section 4.1, each Lender that has executed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter either sent by Agent
to such Lender for consent, approval, acceptance or satisfaction, or required thereunder to be consented to or approved by or acceptable or satisfactory to the Lender. 

9.5      Notice of Default 

.  The Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with
respect to defaults in the payment of principal, interest and fees required to be paid to the Agent for the account of the Lenders, unless the Agent shall have received written notice from a Lender or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a “notice of default”. The Agent will notify the Lenders of its receipt of any such notice. The Agent shall take such action with respect to such Default or Event
of Default as may be requested by the Required Lenders in accordance with Section 8; provided, however, that unless and until the Agent has received any such request, the Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable or in the best interest of the Lenders. 

9.6      Credit Decision 

.  Each Lender acknowledges that none of the Agent-Related Persons has made any representation or warranty to it and that no act
by the Agent hereinafter taken, including any review of the affairs of the Borrower and its Subsidiaries, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender. Each Lender represents to the Agent
that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property,
financial and other condition and creditworthiness of the Borrower and its Subsidiaries, and all applicable bank regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend
credit to the Borrower hereunder. Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its
own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of the Borrower. Except for notices, reports and other documents expressly herein required to be furnished to the Lenders by the Agent, the Agent shall not have any duty or responsibility
to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of the Borrower which may come into the possession of any of the Agent-Related
Persons. 
 9.7      Indemnification of Agent 

.  Whether or not the transactions contemplated hereby are consummated, the Lenders shall indemnify upon demand the
Agent-Related Persons (to the extent not reimbursed by or on behalf of the Borrower and without limiting the obligation of the Borrower to do so), pro rata, from and 

 

 35 

 
against any and all Indemnified Liabilities; provided, however, that no Lender shall be liable for the payment to the Agent-Related Persons of any portion of such Indemnified
Liabilities resulting solely from any such Person’s gross negligence or willful misconduct. Without limitation of the foregoing, each Lender shall reimburse the Agent upon demand for its ratable share, of any costs or out-of-pocket expenses
(including Attorney Costs) incurred by the Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in
respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein to the extent that the Agent is not reimbursed for such expenses by or on behalf of the Borrower. The
undertaking in this Section shall survive the payment of all Obligations hereunder and the resignation or replacement of the Agent. 

9.8      Agent in Individual Capacity 

.  Citibank and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire
equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with the Borrower and its Subsidiaries and Affiliates as though Citibank were not the Agent hereunder and without notice to or
consent of the Lenders. The Lenders acknowledge that, pursuant to such activities, Citibank or its Affiliates may receive information regarding the Borrower or its Affiliates (including information that may be subject to confidentiality obligations
in favor of the Borrower or such Subsidiary) and acknowledge that the Agent shall be under no obligation to provide such information to them. With respect to its Loans, Citibank shall have the same rights and powers under this Agreement as any other
Lender and may exercise the same as though it were not the Agent. 

9.9      Successor Agent 

.  The Agent may, and at the request of the Required Lenders shall, resign as Agent upon 30 days’ notice to the Lenders and
Borrower. If the Agent resigns under this Agreement, the Required Lenders, with the consent of the Borrower, which consent shall not be unreasonably withheld, shall appoint from among the Lenders a successor agent for the Lenders which successor
agent shall be approved by the Borrower. If no successor agent is appointed prior to the effective date of the resignation of the Agent, the Agent with the consent of the Borrower, which consent shall not be unreasonably withheld, may appoint, after
consulting with the Lenders and the Borrower, a successor agent from among the Lenders. Upon the acceptance of its appointment as successor agent hereunder, such successor agent shall succeed to all the rights, powers and duties of the retiring
Agent and the term “Agent” shall mean such successor agent and the retiring Agent’s appointment, powers and duties as Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this
Section 9 and Sections 10.4 and 10.5 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement. If no successor agent has accepted appointment as Agent by the
date which is 30 days following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of the Agent hereunder until such
time, if any, as the Required Lenders appoint a successor agent as provided for above. The retiring Agent shall refund to Borrower that portion of any agency fee paid to such Agent as is not earned due to such Agent’s resignation, prorated to
the date of such Agent’s resignation. 
  

 36 

 9.10      Withholding Tax 

. 

(a)      If any Lender is a “foreign corporation, partnership or trust” within
the meaning of the Code and such Lender claims exemption from, or a reduction of, U.S. withholding tax under Section 1441 or 1442 of the Code, such Lender agrees with and in favor of the Agent, to deliver to the Agent: 

(i)       if such Lender claims an exemption from, or a reduction of, withholding tax
under a United States tax treaty, properly completed IRS Form W-8BEN before the payment of any interest in the first calendar year and before the payment of any interest in any subsequent calendar year during which the Form W-8BEN (or any successor
thereto) then in effect expires; 
 (ii)      if such Lender claims that interest
paid under this Agreement is exempt from United States withholding tax because it is effectively connected with a United States trade or business of such Lender, two properly completed copies of IRS Form W-8ECI or any successor form thereto before
the payment of any interest is due in the first taxable year of such Lender and before the payment of any interest in any subsequent calendar year during which the Form W-8ECI (or any successor thereto) then in effect expires; and 

(iii)     such other form or forms as may be required under the Code or other laws of the
United States as a condition to exemption from, or reduction of, United States withholding tax. 
 Such Lender agrees to
promptly notify the Agent of any change in circumstances which would render invalid any claimed exemption or reduction. 

(b)      If any Lender claims exemption from, or reduction of, withholding tax under a
United States tax treaty by providing IRS Form W-8BEN and such Lender sells, assigns, grants a participation in, or otherwise transfers all or part of the Obligations of the Company to such Lender, such Lender agrees to notify the Agent of the
percentage amount in which it is no longer the beneficial owner of Obligations of the Company to such Lender. To the extent of such percentage amount, the Agent will treat such Lender’s IRS Form W-8BEN or any successor form thereto as no longer
valid. 
 (c)      If any Lender claiming exemption from United States
withholding tax by filing IRS Form W-8ECI or any successor form thereto with the Agent sells, assigns, grants a participation in, or otherwise transfers all or part of the Obligations of the Company to such Lender, such Lender agrees to undertake
sole responsibility for complying with the withholding tax requirements imposed by Sections 1441 and 1442 of the Code. 

(d)      If any Lender is entitled to a reduction in the applicable withholding tax, the
Agent may withhold from any interest payment to such Lender an amount equivalent to the applicable withholding tax after taking into account such reduction. If the forms or other documentation required by subsection (a) of this Section
are not delivered to the 
  

 37 

 
Agent or if any Lender which is a “foreign corporation, partnership or trust” within the meaning of the Code is not entitled to claim exemption from or a reduction of U.S. withholding
tax under Section 1441 or 1442 of the Code, then the Agent shall withhold from any interest payment to such Lender not providing such forms or other documentation an amount equivalent to the applicable withholding tax. 

(e)      If the IRS or any other Governmental Authority of the United States or other
jurisdiction asserts a claim that the Agent did not properly withhold tax from amounts paid to or for the account of any Lender (because the appropriate form was not delivered, was not properly executed, or because such Lender failed to notify the
Agent of a change in circumstances which rendered the exemption from, or reduction of, withholding tax ineffective, or for any other reason other than the Agent’s gross negligence or willful misconduct) such Lender shall indemnify the Agent
fully for all amounts paid, directly or indirectly, by the Agent as tax or otherwise, including penalties and interest, and including any taxes imposed by any jurisdiction on the amounts payable to the Agent under this Section, together with all
costs and expenses (including Attorney Costs). The obligation of the Lenders under this subsection shall survive the payment of all Obligations and the resignation or replacement of the Agent. 

9.11      Co-Agents 

.  None of the Lenders identified on the facing page or signature pages of this Agreement as a “co-agent”,
“managing agent”, “syndication agent” or “documentation agent” shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than those applicable to all Lenders as such. Without
limiting the foregoing, none of the Lenders so identified as a “co-agent”, “syndication agent” or “documentation agent” shall have or be deemed to have any fiduciary relationship with any Lender. Each Lender
acknowledges that it has not relied, and will not rely, on any of the Lenders so identified in deciding to enter into this Agreement or in taking or not taking action hereunder. 

 

	10.	 MISCELLANEOUS. 

10.1      Amendments and Waivers 

.  No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent with respect to any
departure by the Borrower or any applicable Subsidiary therefrom, shall be effective unless the same shall be in writing and signed by the Required Lenders (or by the Agent at the written request of the Required Lenders) and the Borrower and
acknowledged by the Agent, and then any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no such waiver, amendment, or consent shall, unless
in writing and signed by all the Lenders and the Borrower and acknowledged by the Agent, do any of the following: 

(a)      increase or extend the Commitment of any Lender (or reinstate any Commitment
terminated pursuant to Section 8.2); 
  

 38 

 (b)      postpone or delay any date fixed by
this Agreement or any other Loan Document for any payment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document; 

(c)      reduce the principal of, or the rate of interest specified herein on any Loan, or
(subject to clause (ii) below) any fees or other amounts payable hereunder or under any other Loan Document; 

(d)      change the percentage of the Commitments or of the aggregate unpaid principal
amount of the Loans which is required for the Lenders or any of them to take any action hereunder; or 

(e)      amend this Section, or Section 2.13, or any provision herein
providing for consent or other action by all Lenders; 
 and, provided further, that (i) no amendment, waiver
or consent shall, unless in writing and signed by the Agent in addition to the Required Lenders or all the Lenders, as the case may be, affect the rights or duties of the Agent under this Agreement or any other Loan Document, and (ii) the
respective Fee Letters may be amended or rights or privileges thereunder waived, in a writing executed by the parties thereto. 

10.2      Notices 

. 

(a)      All notices, requests and other communications shall be either (i) in
writing (including, unless the context expressly otherwise provides, by facsimile transmission, provided that any matter transmitted by the Borrower by facsimile shall be immediately confirmed by a telephone call to the recipient at the
number specified on Schedule 10.2) or (ii) as and to the extent set forth in clause (d) below, by electronic mail. 

(b)      All such notices, requests and communications shall, when transmitted by
overnight delivery, faxed or e-mailed, be effective when delivered for overnight (next-day) delivery, transmitted in legible form by facsimile machine (provided that the sender has retained its facsimile machine-generated confirmation of the receipt
of such fax by the recipient’s facsimile machine) or transmitted by e-mail (provided that the e-mail was sent to the e-mail address provided by the recipient and that the e-mail was not returned to the sender as undeliverable), respectively, or
if mailed, upon the third Business Day after the date deposited into the U.S. mail, or if delivered, upon delivery; except that notices pursuant to Section 2 or 9 shall not be effective until actually received by the Agent.

 (c)      The agreement of the Agent and the Lenders herein to receive certain
notices by telephone, facsimile or e-mail is solely for the convenience of the Borrower, the Agent and the Lenders. The Agent and the Lenders shall be entitled to rely on the authority of any Person purporting to be a Person who is named in the
then-current certificate delivered pursuant to subsection 4.1(e) hereof as authorized to execute Borrowing Advices (each an “Authorized Person”) and the Lenders shall not have any liability to the Borrower or other Person on
account of any action taken or not taken by the Agent or the Lenders in reliance upon 
  

 39 

 
such telephonic, facsimile or e-mail notice, provided the Agent and the Lenders reasonably believe such Person to be an Authorized Person. The obligation of the Borrower to repay the Loans shall
not be affected in any way to any extent by any failure by the Agent and the Lenders to receive written confirmation of any telephonic, facsimile or e-mail notice or the receipt by the Agent and the Lenders of a confirmation which is at variance
with the terms understood by the Agent and the Lenders to be contained in the telephonic, facsimile or e-mail notice. 

(d)      The compliance certificate described in Section 6.2 shall be
delivered to the Agent by the Borrower by mail or overnight delivery. Except for the compliance certificate described in Section 6.2, materials required to be delivered pursuant to Section 6.2 shall be delivered to the Agent
in an electronic medium format reasonably acceptable to the Agent by e-mail at oploanswebadmin@citigroup.com. The Borrower agrees that the Agent may make such materials (collectively, the “Communications”) available to the Lenders by
posting such materials on Debt Domain or a substantially similar electronic transmission system (collectively, the “Platform”). In addition, to the extent the Borrower in its sole discretion so elects and confirms in writing or by
e-mail to the Agent, any other written information, documents, instruments or other material relating to the Borrower, any of its Subsidiaries or any other materials or matters relating to this Agreement, the Notes or any of the transactions
contemplated hereby and supplied by the Borrower to the Agent (other than any such communication that (i) relates to a request for a new, or a conversion of an existing, Borrowing (including any election of an interest rate or Interest Period
relating thereto), (ii) relates to the payment of any principal or other amount due hereunder prior to the scheduled date therefor, (iii) provides notice of any Default or Event of Default or (iv) is required to be delivered to
satisfy any condition precedent set forth in Section 4.1 or Section 4.2), shall, to the extent of such election and confirmation by the Borrower, constitute materials that are “Communications” for purposes of this
subparagraph (d). The Borrower and each of the Lenders acknowledges that (i) the distribution of material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such
distribution, (ii) the Platform is provided “as is” and “as available” and (iii) neither the Agent nor any of its Affiliates warrants the accuracy, adequacy or completeness of the Communications or the Platform and each
expressly disclaims liability for errors or omissions in the Communications or the Platform (provided, as to such disclaimer, that the Agent and its Affiliates have not been grossly negligent or engaged in any willful misconduct in respect of the
Platform). No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third party rights or freedom from viruses or other code
defects, is made by the Agent or any of its Affiliates in connection with the Platform. 

(e)      Each Lender agrees that notice to it (as provided in the next sentence) (a
“Notice”) specifying that any Communications have been posted to the Platform shall constitute effective delivery of such information, documents or other materials to such Lender for purposes of this Agreement. Each Lender agrees
(i) to notify the Agent in writing of such Lender’s e-mail address to which a Notice may be sent by electronic transmission (including by electronic communication) on or before the date such Lender becomes a party to this Agreement (and
from time to time thereafter to ensure that the Agent has on record an effective e-mail address for such Lender) and (ii) that any Notice may be sent to such e-mail address. 

 

 40 

 (f)      The Agent agrees to give to each
Lender prompt notice of all materials delivered by the Borrower pursuant to Section 6.2. 

10.3      No Waiver-Cumulative Remedies 

.  No failure to exercise and no delay in exercising, on the part of the Agent or any Lender, any right, remedy, power or
privilege hereunder, shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege. 
 10.4      Costs and Expenses 

.  The Borrower shall: 

(a)      whether or not the transactions contemplated hereby are consummated, pay or
reimburse Citibank including in its capacity as Agent and Lender within five Business Days after demand, subject to subsection 4.1(g) for all reasonable costs and expenses incurred by Citibank including in its capacity as Agent and Lender in
connection with the development, preparation, delivery, administration and execution of, and any amendment, supplement, waiver or modification to (in each case, whether or not consummated), this Agreement, any Loan Document and any other documents
prepared in connection herewith or therewith, and the consummation of the transactions contemplated hereby and thereby, including reasonable Attorney Costs incurred by Citibank (including in its capacity as Agent and Lender with respect thereto);
and 
 (b)      pay or reimburse the Agent, the Arranger and each Lender within
five Business Days after demand (subject to subsection 4.1(g)) for all reasonable costs and expenses (including reasonable Attorney Costs) incurred by them in connection with the enforcement, attempted enforcement, or preservation of any
rights or remedies under this Agreement or any other Loan Document during the existence of an Event of Default or after acceleration of the Loans (including in connection with any “workout” or restructuring regarding the Loans, and
including in any Insolvency Proceeding or appellate proceeding). In connection with any claim, demand, action or cause of action relating to the enforcement, preservation or exercise of any rights or remedies covered by this Section 10.4
against the Borrower, all Lenders shall be represented by the same legal counsel selected by such Lenders; provided, that if such legal counsel determines in good faith that representing all such Lenders would or could result in a conflict of
interest under laws or ethical principles applicable to such legal counsel or that a claim is available to a Lender that is not available to all such Lenders, then to the extent reasonably necessary to avoid such a conflict of interest or to permit
an unqualified assertion of such a claim, each Lender shall be entitled to separate representation by legal counsel selected by that Lender, with all such legal counsel using reasonable efforts to avoid unnecessary duplication of effort by counsel
for all Lenders. 
 10.5      Borrower Indemnification 

.  Whether or not the transactions contemplated hereby are consummated, the Borrower shall indemnify and hold the Agent-Related
Persons, and each Lender and each of its respective officers, directors, employees, counsel, agents and attorneys-in-fact (each, an “Indemnified Person”) harmless from and against any and all liabilities, obligations, losses,
damages, penalties, 
  

 41 

 
actions, judgments, suits, costs, charges, expenses and disbursements (including Attorney Costs) of any kind or nature whatsoever which may at any time (including at any time following repayment
of the Loans and the termination, resignation or replacement of the Agent or replacement of any Lender) be imposed on, incurred by or asserted against any such Person in any way relating to or arising out of this Agreement or any document
contemplated by or referred to herein, or the transactions contemplated hereby, or any action taken or omitted by any such Person under or in connection with any of the foregoing, including with respect to any investigation, litigation or proceeding
(including any Insolvency Proceeding or appellate proceeding) related to or arising out of this Agreement or the Loans or the use of the proceeds thereof, whether or not any Indemnified Person is a party thereto (all the foregoing, collectively, the
“Indemnified Liabilities”); provided, that the Borrower shall have no obligation hereunder to any Indemnified Person with respect to Indemnified Liabilities resulting from the gross negligence or willful misconduct of such
Indemnified Person. If any claim, demand, action or cause of action is asserted against any Indemnified Person, such Indemnified Person shall promptly notify Borrower, but the failure to so promptly notify Borrower shall not affect Borrower’s
obligations under this Section unless such failure materially prejudices Borrower’s right to participate in the contest of such claim, demand, action or cause of action, as hereinafter provided. If requested by Borrower in writing, such
Indemnified Person shall in good faith contest the validity, applicability and amount of such claim, demand, action or cause of action and shall permit Borrower to participate in such contest. Any Indemnified Person that proposes to settle or
compromise any claim or proceeding for which Borrower may be liable for payment of indemnity hereunder shall give Borrower written notice of the terms of such proposed settlement or compromise reasonably in advance of settling or compromising such
claim or proceeding and shall obtain Borrower’s prior consent. In connection with any claim, demand, action or cause of action covered by this Section 10.5 against more than one Indemnified Person, all such Indemnified Persons shall
be represented by the same legal counsel selected by the Indemnified Persons and reasonably acceptable to Borrower; provided, that if such legal counsel determines in good faith that representing all such Indemnified Persons would or could
result in a conflict of interest under laws or ethical principles applicable to such legal counsel or that a defense or counterclaim is available to an Indemnified Person that is not available to all such Indemnified Persons, then to the extent
reasonably necessary to avoid such a conflict of interest or to permit unqualified assertion of such a defense or counterclaim, each Indemnified Person shall be entitled to separate representation by legal counsel selected by that Indemnified Person
and reasonably acceptable to Borrower, with all such legal counsel using reasonable efforts to avoid unnecessary duplication of effort by counsel for all Indemnified Persons. The agreements in this Section shall survive payment of all other
Obligations. 
 10.6      Payments Set Aside 

.  To the extent that the Borrower makes a payment to the Agent or the Lenders, or the Agent or the Lenders exercise any right
of set-off, and such payment or the proceeds of such set-off or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Agent or such
Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any Insolvency Proceeding or otherwise, then (a) to the extent of such recovery the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender 

 

 42 

 
severally agrees to pay to the Agent upon demand its pro rata share of any amount so recovered from or repaid by the Agent. 

10.7      Successors and Assigns 

.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns, except that the Borrower may not assign or transfer any of its rights or obligations under this Agreement without the prior written consent of the Agent and each Lender. 

10.8      Assignments, Participations Etc 

. 

(a)      Any Lender may, with the written consent of the Agent and the Borrower, which
consent shall not be unreasonably withheld (except Borrower’s consent shall not be required if a Default or an Event of Default exists and is continuing), at any time assign and delegate to one or more Eligible Assignees (provided that
no written consent of the Agent shall be required in connection with any assignment and delegation by a Lender to an Eligible Assignee that is an Affiliate of such Lender) (each an “Assignee”) all, or any ratable part of all, of the
Loans, the Commitments, and the other rights and obligations of such Lender hereunder, in a minimum amount of $10,000,000; provided, however, that the Borrower and, the Agent may continue to deal solely and directly with such Lender in
connection with the interest so assigned to an Assignee until (A) written notice of such assignment, together with payment instructions, addresses and related information with respect to the Assignee, shall have been given to the Borrower and
the Agent by such Lender and the Assignee; (B) such Lender and its Assignee shall have delivered to the Borrower and the Agent an Assignment and Acceptance in the form of Exhibit F (“Assignment and Acceptance”) together
with any Note or Notes subject to such assignment; and (C) the assignor Lender or Assignee has paid to the Agent a processing fee in the amount of $3,500. 

(b)      From and after the date that the Agent notifies the assignor Lender and the
Borrower that it has received (and the Borrower and the Agent have provided their consent with respect to) an executed Assignment and Acceptance and payment of the above-referenced processing fee, (i) the Assignee thereunder shall be a party
hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, shall have the rights and obligations of a Lender under the Loan Documents, and (ii) the assignor Lender shall,
to the extent that rights and obligations hereunder and under the other Loan Documents have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights and be released from its obligations under the Loan Documents.

 (c)      Within five Business Days after its receipt of notice by the Agent
that it has received an executed Assignment and Acceptance and payment of the processing fee (and provided that it consents to such assignment in accordance with subsection 10.8(a)), the Borrower shall execute and deliver to the Agent,
new Notes evidencing such Assignee’s assigned Loans and Commitment and, if the assignor Lender has retained a portion of its Loans and its Commitment, replacement Notes in the principal amount of the Commitment retained by the assignor Lender
(such Notes to be in exchange for, but not in payment of, the Notes held by such 
  

 43 

 
Lender). Immediately upon each Assignee’s making its processing fee payment under the Assignment and Acceptance, this Agreement shall be deemed to be amended to the extent, but only to the
extent, necessary to reflect the addition of the Assignee and the resulting adjustment of the Commitments arising therefrom. The Commitment allocated to each Assignee shall reduce such Commitments of the assignor Lender pro tanto.

 (d)      Any Lender may at any time sell to one or more commercial banks or
other Persons not Affiliates of the Borrower (a “Participant”) participating interests in any Loans, the Commitment of that Lender and the other interests of that Lender (the “originating Lender”) hereunder and
under the other Loan Documents; provided, however, that (i) the originating Lender’s obligations under this Agreement shall remain unchanged, (ii) the originating Lender shall remain solely responsible for the
performance of such obligations, (iii) the Borrower, and the Agent shall continue to deal solely and directly with the originating Lender in connection with the originating Lender’s rights and obligations under this Agreement and the other
Loan Documents, and (iv) no Lender shall transfer or grant any participating interest under which the Participant has rights to approve any amendment to, or any consent or waiver with respect to, this Agreement or any other Loan Document. Any
Lender that sells a participation to any Person that is a “foreign corporation, partnership or trust” within the meaning of the Code shall include in its participation agreement with such Person a covenant by such Person that such Person
will comply with the provisions of Section 9.10 as if such Person were a Lender and provide that the Agent and the Borrower shall be third party beneficiaries of such covenant. 

(e)      Notwithstanding any other provision in this Agreement, any Lender may at any time
create a security interest in, or pledge, all or any portion of its rights under and interest in this Agreement and the Note held by it in favor of any Federal Reserve Bank in accordance with Regulation A of the FRB or U.S. Treasury Regulation 31
CFR §203.14, and such Federal Reserve Bank may enforce such pledge or security interest in any manner permitted under applicable law. 

(f)      Any Lender (a “Granting Lender”) may, with notice to the Agent,
grant to a special purpose funding vehicle (an “SPC”) the option to fund all or any part of any Loan that such Granting Lender would otherwise be obligated to fund pursuant to this Agreement. The funding of a Loan by an SPC
hereunder shall utilize the Revolving Credit Commitment of the Granting Lender to the same extent, and as if, such Loan were funded by such Granting Lender. Each party hereto hereby agrees that no SPC shall be liable for any indemnity or payment
under this Agreement for which a Lender would otherwise be liable for so long as, and to the extent, the Granting Lender provides such indemnity or makes such payment. Notwithstanding anything to the contrary contained in the foregoing or anywhere
else in this Agreement, (i) nothing herein shall constitute a commitment by any SPC to fund any Loan, (ii) if an SPC elects not to exercise such option or otherwise fails to fund all or any part of such Loan, the Granting Lender shall be
obligated to fund such Loan pursuant to the terms hereof, and (iii) the Borrower and Agent shall continue to deal exclusively with the Granting Lender and any funding by an SPC hereunder shall not constitute an assignment, assumption or
participation of any rights or obligations of the Granting Lender. Any SPC may disclose on a confidential basis any non-public information relating to its funding of Loans to any rating agency, commercial

  

 44 

 
paper dealer or provider of any surety or guarantee to such SPC, provided, as a condition precedent to such disclosure, (A) such agency, dealer or provider has delivered to such
Granting Lender for the benefit of Borrower a written confidentiality agreement substantially similar to Section 10.9, and (B) simultaneous with or prior to such disclosure, such Granting Lender has given written notice to Borrower
of the agency, dealer or provider to which such disclosure is being made and the contents of such disclosure. This Section may not be amended without the prior written consent of each Granting Lender, all or any part of whose Loan is being funded by
an SPC at the time of such amendment. 
 10.9      Confidentiality

 .  Each Lender agrees to hold any confidential information that it may receive from Borrower or
from the Agent on such Borrower’s behalf, pursuant to this Agreement in confidence, except for disclosure: (a) to legal counsel and accountants for Borrower or any Lender; (b) to other professional advisors to Borrower or any Lender,
provided that the recipient has delivered to such Lender a written confidentiality agreement substantially similar to this Section 10.9; (c) to regulatory officials having jurisdiction over any Lender; (d) as required by
applicable law or legal process or in connection with any legal proceeding in which any Lender and Borrower are adverse parties; (e) to Affiliates of such Lender to the extent the Affiliate is involved in the administration of the credit
facilities extended to Borrower and its Subsidiaries hereunder, provided that any such Affiliate has delivered to such Lender a written confidentiality agreement substantially similar to this Section 10.9 and (f) to another
financial institution in connection with a disposition or proposed disposition to that financial institution of all or part of any Lender’s interests hereunder or a participation interest in the Revolving Note and/or the Term Note, each in
accordance with Section 10.8 hereof, provided that the recipient has delivered to such Lender a written confidentiality agreement substantially similar to this Section 10.9. Each Lender further agrees that it will not use
such confidential information in any activity or for any purpose other than the administration of credit facilities extended to Borrower and its Subsidiaries and, without limitation, will take such steps as are reasonably appropriate to preclude
access to any such confidential information to be obtained by any Person employed by any Lender, or by an affiliate of any Lender, who is not involved in the administration of credit facilities extended to Borrower and its Subsidiaries. For purposes
of the foregoing, “confidential information” shall mean any information respecting Borrower or its Subsidiaries reasonably specified by Borrower as confidential, other than (i) information filed with any governmental agency and
available to the public, and (ii) information disclosed by Borrower to any Person not associated with Borrower without a written confidentiality agreement substantially similar to this Section 10.9. Certain of the confidential
information pursuant to this Agreement is or may be valuable proprietary information that constitutes a trade secret of Borrower or its Subsidiaries; neither the provision of such confidential information to any Lender or the limited disclosures
thereof permitted by this Section 10.9 shall affect the status of any such confidential information as a trade secret of Borrower and its Subsidiaries. Each Lender, and each other Person who agrees to be bound by this
Section 10.9, acknowledges that any breach of the agreements contained in this Section 10.9 would result in losses that could not be reasonably or adequately compensated by money damages. Accordingly, if any Lender or any
other person breaches its obligations hereunder, such Lender or such other Person recognizes and consents to the right of Borrower, Intermediate Parent, and/or Broker Subsidiary to seek injunctive relief to compel such Lender or other Person to
abide by the terms of this Section 10.9. 
  

 45 

 10.10    Notification of Addresses, Lending Offices,
Etc 
 .  Each Lender shall notify the Agent in writing of any changes in the address to which notices to the
Lender should be directed, of addresses of any Lending Office, of payment instructions in respect of all payments to be made to it hereunder and of such other administrative information as the Agent shall reasonably request. 

10.11    Counterparts 

.  This Agreement may be executed in any number of separate counterparts, each of which, when so executed, shall be deemed an
original, and all of said counterparts taken together shall be deemed to constitute but one and the same instrument. 

10.12    Severability 

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

10.13    No Third Parties Benefited 

.  This Agreement is made and entered into for the sole protection and legal benefit of the Borrower, the Lenders, the Agent and
the Arranger, and their permitted successors and assigns, and no other Person shall be a direct or indirect legal beneficiary of, or have any direct or indirect cause of action or claim in connection with, this Agreement or any of the other Loan
Documents. 
 10.14    Governing Law and Jurisdiction 

. 

(a)      THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF CALIFORNIA; PROVIDED THAT THE AGENT AND THE LENDERS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 

(b)      ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF CALIFORNIA OR OF THE UNITED STATES FOR THE NORTHERN DISTRICT OF CALIFORNIA, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE BORROWER, THE AGENT AND THE LENDERS CONSENTS, FOR ITSELF
AND IN RESPECT OF ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE BORROWER, THE AGENT AND THE LENDERS IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM
NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. 

10.15    Waiver of Jury Trial 

 

 46 

 .  TO THE FULL EXTENT PERMITTED BY LAW, THE BORROWER, THE LENDERS AND THE AGENT
EACH WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTION CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING
OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. TO THE FULL EXTENT PERMITTED BY LAW, THE
BORROWER, THE LENDERS AND THE AGENT EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED
BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF. THIS
WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS. 

10.16    Entire Agreement 

.  This Agreement, together with the other Loan Documents, embodies the entire agreement and understanding among the Borrower,
the Lenders and the Agent, and supersedes all prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating to the subject matter hereof and thereof. 

10.17    Headings 

.  Articles and Section headings in this Agreement are included herein for the convenience of reference only. 

10.18    USA Patriot Act 

.  Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III
of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies each borrower, guarantor or grantor (the “Loan Parties”), which information includes
the name and address of each Loan Party and other information that will allow such Lender to identify such Loan Party in accordance with the Act. 

(SIGNATURE PAGE FOLLOWS) 
  

 47 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement by
their duly authorized officers as of the date first above written. 
  

							
		 		 	 Borrower:

			
		 		 	 THE CHARLES SCHWAB CORPORATION

				
		 		 	 By:
	 	 /s/ Joseph R. Martinetto
		 		 	 Name:
	 	  Joseph R. Martinetto

		 		 	 Title:
	 	  Executive Vice President and Chief

		 		 		 	  Financial Officer

 

			
	 Lenders:

	
	 CITIBANK, N.A., as Agent and

individually as Lender

		
	 By:
	 	     /s/ Maureen
Maroney

			
	 Name:
	 	Maureen Maroney

			
	 Title:
	 	Vice President
	
	 JPMORGAN CHASE BANK, N.A.

			
		
	 By:
	 	     /s/ Catherine
Grossman

			
	 Name:
	 	Catherine Grossman

			
	 Title:
	 	Vice President
	
	 BANK OF AMERICA, N.A.

			
		
	 By:
	 	     /s/ Garfield
Johnson

			
	 Name:
	 	Garfield Johnson

			
	 Title:
	 	Senior Vice President
	
	 THE BANK OF NEW YORK MELLON

			
		
	 By:
	 	     /s/ Thomas
Caruso

			
	 Name:
	 	Thomas Caruso

			
	 Title:
	 	Managing Director

			
	
	 CREDIT SUISSE AG, CAYMAN ISLANDS
BRANCH

			
		
	 By:
	 	     /s/ Jay
Chall

			
	 Name:
	 	Jay Chall

			
	 Title:
	 	Director

			
		
	 By:
	 	     /s/ Kathrin
Marti

			
	 Name:
	 	Kathrin Marti

			
	 Title:
	 	Assistant Vice President

			
	 WELLS FARGO BANK, NATIONAL
ASSOCIATION

			
		
	 By:
	 	     /s/ David
Bendel

			
	 Name:
	 	David Bendel

			
	 Title:
	 	Director
	
	 UBS LOAN FINANCE
LLC

			
		
	 By:
	 	     /s/ Iria R.
Otsa

			
	 Name:
	 	Iria R. Otsa

			
	 Title:
	 	Associate Director

			
		
	 By:
	 	     /s/ Mary E.
Evans

			
	 Name:
	 	Mary E. Evans

			
	 Title:
	 	Associate Director
	
	 COMERICA
BANK

			
		
	 By:
	 	     /s/ Thomas G
Hoger

			
	 Name:
	 	Thomas G. Hoger

			
	 Title:
	 	Vice President
	
	 CREDIT AGRICOLE CORPORATE AND INVESTMENT
BANK

			
		
	 By:
	 	     /s/ Walter Jay
Buckley

			
	 Name:
	 	Walter Jay Buckley

			
	 Title:
	 	Managing Director

			
		
	 By:
	 	     /s/ Gina
Harth-Cryde

			
	 Name:
	 	Gina Harth-Cryde

			
	 Title:
	 	Managing Director
	
	 LLOYDS TSB BANK PLC

			
		
	 By:
	 	     /s/ Shane
Klein

			
	 Name:
	 	Shane Klein

			
	 Title:
	 	Senior Vice President K042

			
		
	 By:
	 	     /s/ Russell
Protti

			
	 Name:
	 	Russell Protti

			
	 Title:
	 	Senior Vice President P067

			
	 PNC BANK, NATIONAL ASSOCIATION

		
	 By:
	 	     /s/ Cara
Gentile

			
	 Name:
	 	Cara Gentile

			
	 Title:
	 	Vice President
	
	 STATE STREET BANK AND TRUST
COMPANY

			
		
	 By:
	 	     /s/ Carolyn L.
Baker

			
	 Name:
	 	Carolyn L. Baker

			
	 Title:
	 	Vice President

 Schedule 1 

LENDERS’ COMMITMENTS 

The Charles Schwab Corporation $800,000,000 Credit Agreement (364-Day Commitment) dated as of June 11, 2010. 

 

					
		 	 Lender Commitment Amount

			
	 1.     Citibank, N.A.
	 		 	 1.     $87,500,000

	 2.     JPMorgan Chase Bank, N.A.
	 		 	 2.     $87,500,000

	 3.     Bank of America, N.A.
	 		 	 3.     $75,000,000

	 4.     The Bank of New York Mellon
	 		 	 4.     $75,000,000

	 5.     Credit Suisse AG, Cayman Islands Branch
	 		 	 5.     $75,000,000

	 6.     Wells Fargo Bank, National Association
	 		 	 6.     $75,000,000

	 7.     UBS Loan Finance LLC
	 		 	 7.     $75,000,000

	 8.     Comerica Bank
	 		 	 8.     $50,000,000

	 9.     Credit Agricole Corporate and Investment Bank
	 		 	 9.     $50,000,000

	 10.   Lloyds TSB Bank plc
	 		 	 10.   $50,000,000

	 11.   PNC Bank, National Association
	 		 	 11.   $50,000,000

	 12.   State Street Bank and Trust Company
	 		 	 12.   $50,000,000

			
		 	Total	 	    $800,000,000

 Schedule 2 

LIST OF BORROWING AGREEMENTS 

1.        $800,000,000 Credit Agreement (364-Day Commitment) dated as of
June 12, 2009 among the Borrower, the lenders party thereto, and Citibank, N.A., as administrative agent for such lenders. 

 Schedule 6.2 

COMPLIANCE CERTIFICATE 

I,
                                        ,
certify that I am the
                                        
of The Charles Schwab Corporation (the “Borrower”), and that as such I am authorized to execute this Compliance Certificate on behalf of the Borrower, and do hereby further certify on behalf of the Borrower that: 

1.        I have reviewed the terms of that certain Credit Agreement (364-Day
Commitment) dated as of June 11, 2010 among the Borrower, the financial institutions named therein (the “Lenders”) and Citibank, N.A., as Agent for the Lenders (the “Credit Agreement”), and I have made, or have
caused to be made by employees or agents under my supervision, a detailed review of the transactions and conditions of the Borrower during the accounting period covered by the attached financial statements dated
                    , 20    . 

2.        The examination described in paragraph 1 did not disclose, and I have
no knowledge of the existence of any condition or event which constitutes a Default or Event of Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Compliance Certificate,
except as set forth below. 
 3.        Schedule I attached hereto sets
forth financial data and computations evidencing compliance with the covenants set forth in Sections 7.1 and 7.2 of the Credit Agreement, all of which data and computations are true, complete and correct. Capitalized terms not
otherwise defined herein are defined in the Credit Agreement. 

4.        Described below are the exceptions, if any, to paragraph 2 by listing,
in detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event. 

The foregoing certifications, together with the computations set forth in Schedule I hereto and the financial statements
delivered with this Compliance Certificate in support hereof, are made and delivered this      day of
                     20    . 

 

			
	By:	 	  

			
	Name:	 	  

			
	Title:	 	  

 The Charles Schwab Corporation 

Credit Agreement (364-Day Commitment) 

Dated as of June 11, 2010 

Schedule I 
 to

 Compliance Certificate 

(Dollars in Thousands) 
  

	1.	Net Capital Ratio of the Broker Subsidiary. 

Requirement: Broker Subsidiary - month-end ratio not less than 5%. 

Net Capital Ratio for Broker Subsidiary 

Month                     
       Month-end Ratio 
  
  

	2.	Minimum Stockholders’ Equity of Borrower. 

Requirement: As of
                    , 20        , required Minimum Stockholders’ Equity is $4,200,000,000
plus 50% of cumulative Net Earnings from June 30, 2010. 
  

 Schedule 10.2 

NOTICES 
 If to the
Borrower: 
  

			
	If by U.S. mail:	  	The Charles Schwab Corporation
		  	Treasury Department
		  	Attn: Bruce C. Marcellus or Successor
		  	211 Main Street (Mail Stop SF215FMT-04-120)
		  	San Francisco, CA 94105
		
	If by hand delivery (including courier and overnight messenger service):	  	The Charles Schwab Corporation
		  	Treasury Department
		  	Attn: Bruce C. Marcellus or Successor
		  	215 Fremont Street,
4th Floor
		  	San Francisco, CA 94105
		
	Telephone:	  	(415) 667-8880
	Facsimile:	  	(415) 667-8565

 If to the Agent: 

See information under Citibank, N.A. in table below pertaining to Lenders. 

If to the Lenders: 
  

							
	 Credit Contact
	 	 Operations Contact
	 	 Lending Office
	 	 Payment Instructions

	 Bank of America, N.A.
 335
Madison Ave.
 New York, NY 10017

Attention: Garfield Johnson

                 Senior Vice President

(646) 556-0426
 Fax:
(617) 310-2483
	 	 Bank of America, N.A.
 One
Independence Center
 101 N. Tryon Street

Charlotte, NC 28255-0001
 Attention: Pankuj
Aggarwal
 (415) 436-4777 Ext. 8542

Fax: (972) 728-9146
	 	 Bank of America, N.A.
 2001
Clayton Road
 Concord, California 94520
	 	 Bank of America, N.A.
 ABA #:
026009593
 Charlotte, NC
 Acct #:
4426457864
 Attention: Bilateral Clearing

Ref: Charles Schwab Corporation

				
	 The Bank of New York Mellon

One Wall Street, 41st
 Floor
 New York, NY 10286

Attention: Thomas P. Caruso

                 Vice President

(212) 635-6745
 Fax:
(212) 635-1194
	 	 The Bank of New York Mellon

6023 Airport Road
 Oriskany, NY 13424

Attention: Brian Brown
 (315)765-4439

Fax: (315) 765-4783
	 	 The Bank of New York Mellon

One Wall Street, 41st
 Floor
 New York, NY 10286
	 	 The Bank of New York
 ABA #:
021-000-018
 Acct #: GLA111-231
 Acct
name: Broker Services
 Attn: Jacob Childress

Ref: Charles Schwab Corporation

							
	 Credit Contact
	 	 Operations Contact
	 	 Lending Office
	 	 Payment Instructions

	 Citibank, N.A.
 388 Greenwich
Street
 New York, NY 10013
 Attention:
William Mandaro
                 Vice President

(212) 816-0852
 Fax: (212)
816-1212
	 	 Citibank, N.A.
 1615 Brett
Road, Bldg #3
 New Castle, DE 19720

Attention: Lee Ocasio

                 Assistant Manager

(302) 894-6065
 Fax: (212)
994-09610
	 	 Citibank, N.A.
 399 Park Avenue

 New York, NY 10043
	 	 Citibank NA
 ABA #: 021-000-089

 New York, NY
 Acct #:
40610794
 Acct Name: Wall Street Fees

Attention: Lee Ocasio
 Ref: The Charles Schwab

 Corporation

				
	 Comerica Bank
 39200 Six Mile
Rd.
 Mail Code 7619
 Livonia, MI 48152

 Attention: Thomas G. Hoger

                 Vice President /

                 Chris Georvassilis

                 Senior Vice President

(734) 632-4511 /
 (734) 632-4553

Fax: (734) 632-4540
	 	 Comerica Bank
 500 Woodward
Avenue, 9th Flr.

Mail Code 3266
 Detroit, MI 48226

Attention: Debra M. Borthwick

                  Lending Assistant

(313) 222-7805
 Fax: (313)
222-3420
	 	 Comerica Bank
 500 Woodward
Avenue,

9th Flr.

 Detroit, MI 48226
	 	 Comerica Bank
 ABA #: 072000096

 Acct #: 02-21585-90010
 Acct Name:
Commercial Loans
 Attention: Tom Hoger

Ref: The Charles Schwab

Corporation

				
	 Credit Agricole Corporate and Investment Bank

1301 Avenue of the Americas

13th Floor

 New York, NY 10019
 Attention:
Sebastian Rocco
 (212) 261 7360
 Fax:
(212) 459-3179
	 	 Credit Agricole Corporate and Investment Bank

1301 Avenue of the Americas
 New York, NY 10019

 Attention: Roy Rodrigez
 (732)
590-7797
 Fax: (917) 849-5439
	 	 Credit Agricole Corporate and Investment Bank

1301 Avenue of the Americas
 New York, NY 10019

	 	 Credit Agricole Corporate and Investment Bank

ABA #: 026-008-073
 New York, NY

Acct #:
 01-88179-3701-00 for account of Calyon
NY Branch
 Acct Name:
 Loan Servicing

 Attention: S. Ruffer
 Ref: Charles
Schwab Corp.

				
	 Credit Suisse AG, Cayman Islands Branch

Eleven Madison Avenue
 New York, NY
10010
 Attention: Jay Chall

                 Markus Frenzen

(212) 325-9010
 (212) 325-6911

Fax: (212) 743-1843

        (212) 322-0370
	 	 Credit Suisse AG, Cayman Islands Branch

One Madison Avenue
 New York, NY 10010

Attention: Loan Closers

                  Hazel Leslie

(212) 325-9041
 (212) 325-9049

Fax: (212) 538-9120

        (212) 538-3477
	 	 Credit Suisse AG, Cayman Islands Branch

Eleven Madison Avenue
 New York, NY
10010
 Attention: Jay Chall

                  Markus Frenzen

(212) 325-9010
 (212) 325-6911

Fax: (212) 743-1843

        (212) 322-0370
	 	 Credit Suisse
 ABA #:
021-000-018
 New York, NY
 Acct #:
890-0492-627
 Acct Name: CS Agency Cayman Ref: The Charles Schwab Corporation

				
	 JPMorgan Chase Bank, N.A.
 277
Park Avenue

36th Floor

 New York, NY 10017

Attention: Catherine Grossman /

                 Zoe Nourallah

(212) 270-1153/1246
 Fax: (212) 270-1511

	 	 JPMorgan Chase Bank, N.A.
 500
Stanton Cristiana Road
 Ops 4, Floor 3

Newark, Delaware 19713
 Attention: Christina
Sherlock
 (302) 552-0858
 Fax: (917)
464-9985
	 	 JPMorgan Chase Bank, N.A.
 270
Park Avenue
 New York, NY 10017
	 	 JPMorgan Chase Bank, N.A. New York, NY

ABA #: 021000021
 Acct #: 066-999979

Acct Name: Broker Miscellaneous Credits
 Attn:
Christina Sherlock
 Ref: Charles Schwab 800mm

Revolving Credit Facility
 Bank of
America
 International, New York
 New
York, NY
 ABA #: 026-009-593
 Acct #:
655-010-1938
 Acct Name: Lloyds TSB

Bank plc, New York
 Ref: Charles
Schwab

	  
 Lloyds TSB Bank plc

1095 Avenue of the Americas,
 34th
Floor
 New York , NY 10036
 Attention:
Shane Klein /
                   Victor
Crome
 (212) 930-8967/8965
 Fax:
(212) 930-5098
	 	  
 Lloyds TSB Bank plc

1095 Avenue of the Americas, 34th Floor
 New York
, NY 10036
 (212) 930-5051/8978
 Fax:
(212) 930-5098
	 	  
 Lloyds TSB Bank plc

1095 Avenue of the Americas,
 34th
Floor
 New York , NY 10036
	 

  

 2 

							
	 Credit Contact
	 	 Operations Contact
	 	 Lending Office
	 	 Payment Instructions

	 PNC Bank, N. A.
 One PNC Plaza

 249 Fifth Avenue
 Pittsburgh, PA
15222
 Attention: Howard Potter /

(412) 768-2642
 (412) 762-3236

Fax: (412) 762-7348

        (412) 762-7986
	 	 PNC Bank, N. A.
 500 First
Avenue
 Pittsburgh, PA 15219

Attention: Brian Kus

                  Loan Administration

(440) 546-7399
 Fax: (866)
932-2125
	 	 PNC Bank, N. A.
 One PNC Plaza

 249 Fifth Avenue
 Pittsburgh, PA
15222
	 	 PNC Bank, N.A.
 Pittsburgh, PA

 ABA #: 043-000-096
 Acct #:
13076-0016-803
 Acct Name: Commercial Loan Operations

Attn: Brian Kus
 Ref: Charles Schwab
Corp

				
	 State Street Bank and Trust Company

Box 5303
 Boston, MA 02206

Attention: Carolyn Baker
 (617)
937-8847
 Fax: (617) 937-8889
	 	 State Street Bank and Trust Company

Box 5302
 Boston, MA 02206

Attention: Eola Romano
 (617) 937-8807

Fax: (617) 937-8833
	 	 State Street Bank and Trust Company

100 Huntington Ave., Tower 2, Floor 4
 Boston, MA
02206
	 	 State Street Bank and Trust Company, Boston, MA

ABA#: 011-000-028
 Acct #: 0006-332-1

Acct. Name: IS Loan
 Operations/CSU
Internal
 Attn: Robyn Shepard

				
	 UBS Loan Finance LLC
 677
Washington Boulevard
 Stamford, CT 06901

Attention: Brian Gross
 (203) 719-3571

Fax: (203) 719-3888
	 	 UBS Loan Finance LLC
 677
Washington Boulevard
 Stamford, CT 06901

Attention: Brian Gross
 (203) 719-3571

Fax: (203) 719-3888
	 	 UBS Loan Finance LLC
 677
Washington Boulevard
 Stamford, CT 06901
	 	 UBS Loan Finance LLC
 Stamford,
CT
 ABA #: 026 007 993
 Acct #:
WA-894001-001
 Acct. Name: BPS Loan Finance Account

Attn: Brian Gross
 Ref: The Charles Schwab
Corporation

				
	 Wells Fargo Bank,
 National
Association
 230 West Monroe Street

Chicago, IL 60606-4703
 Attention: Robert
Fialkowski
                  Relationship Mgr. /

                 Beth McGinnis

                 Senior Vice President

(312) 726-2159
 (612) 667-9552

Fax: (312) 845-8606 /

        (612) 667-7251
	 	 Wells Fargo Bank,
 National
Association
 201
3rd Street,
8th Floor

MAC A0187-085
 San Francisco, CA 94103

Attention: Claire Gerndt, Jr.

                 Loan Servicing Spec.

(415) 477-5294
 Fax: (415)
979-0675
	 	 Wells Fargo Bank,
 National
Association
 90 South
7th Street,
7th Floor

MAC N9305-075
 Minneapolis, MN
55402-3903
	 	 Wells Fargo Bank,
 National
Association
 San Francisco, CA
 ABA #:
121000248
 Acct #: 0271250720

Account Name: Wire in process

Attn: Claire Gerndt
 Ref: The Charles
Schwab
 Corporation

  

 3 

 EXHIBIT A-1 

REVOLVING NOTE 
  

			
	$                             
            (Amount of Commitment)	 	Date: June 11, 2010

For Value Received, The Charles Schwab Corporation (“Schwab”) hereby promises to pay to the order of
                                 (the “Lender”) to Citibank,
N.A., as Agent, at Agent’s office located at 388 Greenwich Street, New York, New York 10013, for the account of the applicable Lending Office of the Lender, the principal amount of
                                
($                    ) or the aggregate amount of all Revolving Loans made to Schwab by the Lender, whichever is less, on June 10, 2011.
The undersigned also promises to pay interest on the unpaid principal amount of each Borrowing from the date of such Borrowing until such principal amount is paid, at the rates per annum, and payable at such times, as are specified in the Credit
Agreement. This Note shall be subject to the terms of the Credit Agreement, and all principal and interest payable hereunder shall be due and payable in accordance with the terms of the Credit Agreement. 

Schwab hereby authorizes the Lender to endorse on the Schedule attached to this Note the amount and Type of Revolving
Loans made to Schwab by the Lender and all renewals, conversions, and payments of principal amounts in respect of such Revolving Loans, which endorsements shall, in the absence of manifest error, be conclusive as to the outstanding principal amount
of all such Revolving Loans, provided, however, that the failure to make such notation with respect to any Revolving Loans or payments shall not limit or otherwise affect the obligation of Schwab under the Credit Agreement or this
Note. 
 This Note is the Revolving Note referred to in the Credit Agreement (364-Day Commitment), dated as of
June 11, 2010 among Schwab, the Lender, certain other Lenders party thereto, and Citibank, N.A., as Agent for the Lenders (the “Credit Agreement”). Terms defined in the Credit Agreement are used herein with the same meanings.
The Credit Agreement, among other things, contains provisions for acceleration of the maturity of this Note, upon the happening of certain stated events and also for prepayments on account of the principal of this Note prior to the maturity of this
Note upon the terms and conditions specified in the Credit Agreement. 
 Principal and interest payments shall
be in money of the United States of America, lawful at such times for the satisfaction of public and private debts, and shall be in immediately available funds. 

Schwab promises to pay the costs of collection, including reasonable attorney’s fees, if default is made in the
payment of this Note. 
 The terms and provisions of this Note shall be governed by the applicable laws of the
State of California. 

 IN WITNESS WHEREOF, the undersigned has caused this Note to be executed by its officers
thereunto duly authorized and directed by appropriate corporate authority. 
  

			
	 The Charles Schwab Corporation

		
	 By:
	 	
 

			
	 Name:
	 	
 

			
	 Title:
	 	  

 

 2 

 EXHIBIT A-1 

SCHEDULE TO REVOLVING NOTE 
  

											
	 Date

Made,
 Continued,

 Converted,

or Paid
  
	 	 Type of

Loan
  
	 	 Amount

of Loan
  
	 	 Amount of

Principal

Continued,

Converted,
 or Paid

  
	 	 Unpaid

Principal
 Balance
of
 Revolving

Note
  
	 	 Name of

Person

Making
 Notation

  

	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	 	 

  

 3 

 EXHIBIT A-2 

TERM NOTE 

Date:  June 11, 2010 

FOR VALUE RECEIVED, the undersigned, The Charles Schwab Corporation (“Schwab”) hereby promises to pay to
the order of
                                        
(the “Lender”) to Citibank, N.A., as Agent, at the Agent’s office located at 388 Greenwich Street, New York, New York 10013, for the account of the applicable Lending Office of the Lender, the principal amount of each Term Loan
made by the Lender to Schwab pursuant to the terms of the Credit Agreement (364-Day Commitment), dated as of June 11, 2010, as amended, among Schwab, the Lender, certain other Lenders party thereto, and Citibank, N.A., as Agent for the Lenders
(the “Credit Agreement”), as shown in the schedule attached hereto and any continuation thereof, in lawful money of the United States and in immediately available funds on the Term Loan Maturity Date for such Term Loan. The
undersigned also promises to pay interest on the unpaid principal amount of each Term Loan from the date of such Term Loan until such principal amount is paid, in like money, at said office for the account of the Lender’s applicable Lending
Office, at the rates per annum, and payable at such times as are specified in the Credit Agreement. This Term Note shall be subject to the terms of the Credit Agreement and all principal and interest payable hereunder should be due and payable in
accordance with the terms of the Credit Agreement. Terms defined in the Credit Agreement are used herein with the same meanings. 

This Term Note is one of the Term Notes referred to in, and is entitled to the benefits of, the Credit Agreement. The
Credit Agreement, among other things, contains provisions for acceleration of the maturity of this Term Note upon the happening of certain stated events and also for prepayments on account of principal hereof prior to the maturity of the Term Note
upon the terms and conditions specified in the Credit Agreement. 
 Schwab promises to pay costs of collection,
including reasonable attorney’s fees, if default is made in the payment of this Note. 
 The terms and
provisions of this Term Note shall be governed by the applicable laws of the State of California. 
 IN WITNESS
WHEREOF, the undersigned has caused this Term Note to be executed by its officer thereunto duly authorized and directed by appropriate corporate authority. 

 

			
	 The Charles Schwab Corporation

		
	 By:
	 	
 

			
	 Name:
	 	
 

			
	 Title:
	 	  

 EXHIBIT A-2 

SCHEDULE TO TERM NOTE 
  

													
	
Date
Made,
Continued,
Converted,
or Paid

 
	  	 Type of
Loan

 
  
	  	 Amount
of Loan

 
  
	 	
Term Loan
Maturity Date
  

 
	  	 Amount
of
Principal
Continued,
Converted,
or Paid
  
	  	
Unpaid
Principal
Balance of
Term Note

 
  
	  	 Name
of    
Person    
Making    
Notation    
  

	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 
	 	  	 	  	            	 	 	  	 	  	 	  	 

  

 2 

 EXHIBIT B 

BORROWING ADVICE 

1.        This Borrowing Advice is executed and delivered by The Charles Schwab
Corporation (“Borrower”) to you pursuant to that certain Credit Agreement dated as of June 11, 2010 (the “Credit Agreement”), entered into by Borrower, Citibank, N.A. (“Citibank”) and certain
other Lenders parties thereto, collectively with Citibank (the “Lenders”) and Citibank as Agent for the Lenders (herein “Agent”). Terms defined in the Credit Agreement and not otherwise defined herein are used
herein as defined in the Credit Agreement. 
 2.        Borrower hereby
requests that the Lenders make a Revolving [or Term Loan] for the account of Borrower (at                         ,
Account No.                         ) pursuant to Section 2.4 of the Credit Agreement as follows: 

 

	 	(a)	 Amount of Revolving [or Term Loan]:
                                    .

  

	 	(b)	 Borrowing Date of Revolving [or Term Loan]:
                          . 

 

	 	(c)	 [If a Revolving Loan] Type of Revolving Loan (check one only): 

                 Eurodollar Rate
with                 - day Interest Period 

                 Base Rate

  

	 	(d)	 [If a Term Loan] Type of Term Loan (check one only): 

                 Eurodollar Rate
with initial                 - day Interest Period 

                 Base Rate

  

	 	(e)	 [If a Term Loan] Maturity Date of Term Loan:
                        . 

3.        Following this request for a Revolving Loan [or Term Loan], the
aggregate outstanding amount of all Revolving Loans and Term Loans under the Revolving Note will not exceed the aggregate amount of the Commitments. 

 4.        This Borrowing Advice is
executed on                      by the Borrower. 
  

							
		 		 	 BORROWER:

			
		 		 	 THE CHARLES SCHWAB CORPORATION,

a Delaware Corporation

				
		 		 	 By:
	 	  

							
		 		 	    Name:
	 	  

							
		 		 	   Title:
	 	  

 

 2 

 EXHIBIT C 

NOTICE OF CONVERSION/CONTINUATION 

Dated as of:
                             

Citibank, N.A., as Agent 

                         
                                    

                         
                                    

Ladies and Gentlemen: 

This irrevocable Notice of Conversion/Continuation (this “Notice”) is delivered to you under the Credit
Agreement (364-Day Commitment) dated as of June 11, 2010 (as amended, restated or otherwise modified, the “Credit Agreement”) by and among The Charles Schwab Corporation, a Delaware corporation (the “Company”)
(herein “Borrower”); and Citibank, N.A., a Delaware corporation (herein “Citibank”) and the other Lenders signatory thereto (together with Citibank, collectively “Lenders”), and Citibank as agent
for the Lenders (herein “Agent”). 
 1.        This
Notice is submitted for the purpose of: 
 (check one and complete applicable information in accordance with the Credit
Agreement) 
  

	 	[    ]	 Converting or [    ] continuing all or a portion of the following type of Loan: 

 

	 	(a)	 (check, as applicable) 

Base Rate Loan
                            ; 

Eurodollar Rate Loan
                      . 
  

	 	(b)	 The aggregate outstanding principal balance of the above Loan is
$                            . 

 

	 	(c)	 As applicable, the last day of the current Interest Period for such Loan is
                            . 

 

	 	(d)	 The principal amount of such Loan to be [converted or continued] is
$                            . 

 

	 	(e)	 Such principal amount should be converted/continued into the following type of Loan: 

Base Rate Loan
                            ; 

Eurodollar Rate Loan
                      . 
  

	 	(f)	 The requested effective date of the [conversion/continuation] of such Loan is
                            . 

	 	(g)	 As applicable, the requested Interest Period applicable to the new Loan is
                            . 

2.        No Default or Event of Default under the Credit Agreement has occurred
and is continuing or will be caused by the advance requested hereby. 

3.        The representations and warranties set forth in Section 5
of the Credit Agreement are true and correct as if made on the date hereof (except for such representations and warranties as expressly relate to a prior date). 

Capitalized terms used herein which are not defined herein shall have the respective meanings set forth in the Credit
Agreement. 
 IN WITNESS WHEREOF, the undersigned officer of the Company has executed this Notice of
Conversion/Continuation this      day of                 ,         . 

 

			
	THE CHARLES SCHWAB CORPORATION
		
	By:	 	
 

			
	Name:	 	
 

			
	 Title:
	 	  

		 	[must be signed by an Authorized Officer]

 

 2 

 EXHIBIT D 

COMMITMENT AND TERMINATION DATE EXTENSION REQUEST 

 

					
	[Bank name and address]	  		  	[Date]

 Reference is made
to that certain Credit Agreement (364-Day Commitment) dated as of June 11, 2010 (“Credit Agreement”) entered into by The Charles Schwab Corporation (“Borrower”), Citibank, N.A., as Agent and Lenders party
thereto. Terms defined in the Credit Agreement and not otherwise defined herein are used herein as defined in the Credit Agreement. 

Pursuant to Section 2.11 of the Credit Agreement, Borrower hereby requests Agent to obtain each Lender’s
agreement to the extension of such Lender’s Commitment presently in effect, in the amount of $[specify amount of existing Commitment], and the Termination Date presently in effect, for an additional 364 days. 

Agent’s execution of a copy of this letter in the space provided below and the transmission of such executed copy to
Borrower shall constitute all Lenders’ acceptance of Borrower’s request and all Lenders’ agreement to the 364-day extension sought herein. More specifically, upon the execution of a copy of this letter by Agent on behalf of Lenders
and the transmission thereof to Borrower within 15 days after Agent’s receipt of this letter, (1) the Termination Date as defined in Section 2.11 of the Credit Agreement shall be extended 364 days and deemed changed to
                                , and (2) all other dates appearing in the
Credit Agreement that are referred to in Section 2.11 of the Credit Agreement shall correspondingly be extended 364 days. 

This Commitment and Termination Date Extension Request is executed by Borrower on
                        . 
  

							
		 		 	 BORROWER:

			
		 		 	 THE CHARLES SCHWAB CORPORATION,

a Delaware Corporation

				
		 		 	 By:
	 	  

							
		 		 	    Name:
	 	  

							
		 		 	   Title:
	 	  

 

			
	 ACCEPTED AND AGREED:

	
	 Agent, on Behalf of Lenders

		
	 By:
	 	  

			
	 Name:
	 	  

			
	 Title:
	 	  

 EXHIBIT E 

BORROWER’S OPINION OF COUNSEL 

[Howard Rice Letterhead] 

[Date] 
  

			
	 Citibank, N.A., as Agent
	 	
	  
	 	
	  
	 	

  

	 	Re:	Credit Agreement (364-Day Commitment), dated June 11, 2010, among 

The Charles Schwab Corporation, Citibank, N.A., as Agent 

and the Lenders party thereto 

Ladies and Gentlemen: 

This opinion is delivered at the request of The Charles Schwab Corporation to you in your capacity as Agent, on behalf of
the Lenders, under the Credit Agreement (364-Day Commitment) dated as of June 11, 2010 (the “Credit Agreement”) among The Charles Schwab Corporation, a Delaware corporation (“Borrower”), Citibank, N.A., as the
Administrative Agent and the Lenders signatories thereto (each a “Lender” and collectively, the “Lenders”). This opinion letter speaks as of close of business on June 11, 2010 (hereafter the “operative
date”). 
 We have acted as special counsel to Borrower in connection with the Credit Agreement. In
such capacity we have examined originals, or copies represented to us by Borrower to be true copies, of the Credit Agreement; and we have obtained such certificates of such responsible officials of Borrower and of public officials as we have deemed
necessary for purposes of this opinion. We have assumed without investigation the genuineness of all signatures on original documents, the authenticity of all documents submitted to us as originals, the conformity to original documents of all
documents submitted to us as photostatic copies of originals, and the accuracy and completeness of all corporate records certified to us by the Borrower to be accurate and complete. We have further assumed that the Credit Agreement is binding upon
and enforceable against the Agent and the Lenders. As to factual matters, we have relied upon the representations and warranties contained in and made pursuant to the Credit Agreement. 

Capitalized terms not otherwise defined herein have the meanings given for such terms in the Credit Agreement. For the
purpose of this opinion, “Loan Documents” as used herein means the Credit Agreement and the Notes. 

Based upon the foregoing and in reliance thereon, and subject to the exceptions and qualifications set forth herein, we
are of the opinion that: 
 1.      Borrower is a corporation duly formed, validly
existing, and in good standing under the laws of Delaware. 

 2.      Borrower has all requisite corporate
power and authority to execute, deliver and perform all of its obligations under the Loan Documents. 

3.      Each Loan Document has been duly authorized, executed and delivered by Borrower.
Each Loan Document constitutes the legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such validity, binding nature or enforceability may be limited by: 

    (a)      the effect of applicable federal or state bankruptcy,
reorganization, insolvency, fraudulent conveyance, moratorium or other similar laws and court decisions relating to or affecting creditors’ rights generally; 

    (b)      the effect of legal and equitable principles upon the
availability of creditors’ remedies, regardless of whether considered in a proceeding in equity or at law; 

    (c)      the effect of California judicial decisions involving
statutes or principles of equity which have held that certain covenants or other provisions of agreements, including without limitation those providing for the acceleration of indebtedness due under debt instruments upon the occurrence of events
therein described, are unenforceable under circumstances where it cannot be demonstrated that the enforcement of such provisions is reasonably necessary for the protection of the lender, has been undertaken in good faith under the circumstances then
existing, and is commercially reasonable; 
     (d)      the
effect of Section 1670.5 of the California Civil Code, which provides that a court may refuse to enforce a contract or may limit the application thereof or any clause thereof which the court finds as a matter of law to have been unconscionable
at the time it was made; 
     (e)      the
unenforceability, under certain circumstances, of provisions purporting to require the award of attorneys’ fees, expenses, or costs, where such provisions do not satisfy the requirements of California Civil Code Section 1717 et
seq., or in any action where the lender is not the prevailing party; 

    (f)      the unenforceability, under certain circumstances, of
provisions waiving stated rights or unknown future rights and waiving defenses to obligations, where such waivers are contrary to applicable law or against public policy; 

    (g)      the unenforceability, under certain circumstances, of
provisions which provide for penalties, late charges, additional interest in the event of a default by the borrower or fees or costs related to such charges; 

    (h)      the unenforceability, under certain circumstances, of
provisions to the effect that rights or remedies are not exclusive, that every right or remedy is cumulative and may be exercised in addition to or with any other right or remedy, or that the election of some particular remedy or remedies does not
preclude recourse to one or another remedy; 

    (i)      the unenforceability of provisions prohibiting waivers of
provisions of either of the Loan Documents otherwise than in writing to the extent that Section 1698 of the California Civil Code permits oral modifications that have been executed; 

 

 2 

     (j)      limitations
on the enforceability of release, contribution, exculpatory, or nonliability provisions, under federal or state securities laws, Sections 1542 and 1543 of the California Civil Code, and any other applicable statute or court decisions; 

    (k)     limitations on the enforceability of any indemnity obligations
imposed upon or undertaken by the borrower to the extent that such obligations do not satisfy the requirements of Sections 2772 et seq. of the California Civil Code and any judicial decisions thereunder; provided that the
limitations and qualifications set forth in the immediately preceding sub-paragraphs (b) through (k) do not, in our opinion, render the remedies available to the Lenders under the Loan Documents inadequate for the practical realization of
the primary rights and benefits reasonably expected by an institutional lender in a comparable unsecured credit facility transaction governed by California law; and 

    (l)      the effect of Grafton Partners L.P. v. Superior Court, 36
Cal. 4th 944, 2005 WL 1831995 (Cal. 2005), in which the California Supreme Court held that predispute contractual waivers of trial by jury are invalid, as well as the effect of Section 631(d) of the California Code of Civil Procedure, which
provides that a court may, in its discretion upon just terms, allow a trial by jury although there may have been a waiver of trial by jury. 

The foregoing opinions are subject to the following exceptions and qualifications: 

    a.       We have not been requested to verify and have not
verified the validity, accuracy, or reasonableness of any of the factual representations contained in either or both of the Loan Documents, and we express no opinion with respect to any of such matters. 

    b.       We are members of the bar of the State of
California. We are opining herein only concerning matters governed by the Federal laws of the United States of America, the substantive laws of the State of California, and the General Corporation Law of the State of Delaware, and only with respect
to Borrower.    We express no opinion concerning the applicability to either or both of the Loan Documents, or the effect thereon, of the laws of any other jurisdiction. Furthermore, we express no opinion with respect to choice
of law or conflicts of law, and none of the opinions stated herein shall be deemed to include or refer to choice of law or conflict of law. 

    c.       We express no opinion on any Federal or state
securities laws as they may relate to either or both of the Loan Documents. 

    d.       We express no opinion as to compliance with the
usury laws of any jurisdiction. 
 The opinions set forth herein are given as of the operative date. We disclaim
any obligation to notify you or any other person or entity after the operative date if any change in fact and/or law should change our opinion with respect to any matters set forth herein. This opinion letter is rendered to you in your capacity as
the Agent on behalf of the Lenders under the Credit Agreement and may not be relied upon, circulated or quoted, in whole or in part, by any other person or entity (other than the Lenders and a person or entity who becomes an assignee or successor in
interest of any Lender or acquires a participation from any Lender consistent with the terms of the Loan Documents) and shall not be referred to in any report or document furnished to any other person or entity without our prior written consent;
provided, however, that 
  

 3 

 
the foregoing shall not preclude any Lender from describing or otherwise disclosing the existence or contents of this letter to (i) any bank regulatory authority having jurisdiction over
such Lender, as required by such authority, (ii) a person or entity who, in good-faith discussions between such Lender and such person or entity, is proposed to become an assignee or successor in interest of such Lender or to acquire a
participation from the Bank consistent with the terms of the Loan Documents, and (iii) counsel to the Agent and the Lenders. 
  

			
	 Very truly yours,

	
	 HOWARD RICE NEMEROVSKI

	 CANADY FALK & RABKIN

	 A Professional Corporation

		
	 By:
	 	  

 

 4 

 EXHIBIT F 

FORM OF ASSIGNMENT AND ACCEPTANCE 
  

	To:     CITIBANK,	N.A., as Administrative Agent 

Ladies and Gentlemen: 

Reference is made to that certain Credit Agreement (364-Day Commitment) dated as of June 11, 2010 between THE CHARLES SCHWAB
CORPORATION, a Delaware corporation (“Borrower”), Lenders from time to time party thereto, and CITIBANK, N.A., as Administrative Agent (as amended, restated, extended, supplemented or otherwise modified in writing from time
to time, the “Agreement”, the terms defined therein being used herein as therein defined). 

1.       We hereby give you notice of, and request your consent to, the assignment by
                                        
(the “Assignor”) to
                                        
(the “Assignee”) of             % of the right, title and interest of the Assignor in and to the Loan Documents, including, without limitation, the right, title and
interest of the Assignor in and to the Commitment of the Assignor, and all outstanding Loans made by the Assignor. Before giving effect to such assignment: 
  

	 	(a)	the aggregate amount of the Assignor’s Commitment is
$                    . 

  

	 	(b)	the aggregate principal amount of its outstanding Loans is
$                    . 

2.        The Assignee hereby represents and warrants that it has complied with the requirements
of Section 10.8 of the Agreement in connection with this assignment and acknowledges and agrees that: (a) other than the representation and warranty that it is the legal and beneficial owner of the Pro Rata Share being assigned
hereby free and clear of any adverse claim, the Assignor has made no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Agreement or the execution,
legality, validity, enforceability, genuineness or sufficiency of the Agreement of any other Loan Document; (b) the Assignor had made no representation or warranty and assumes no responsibility with respect to the financial condition of
Borrower or the performance by Borrower of the Obligations; (c) it has received a copy of the Agreement, together with copies of the most recent financial statements delivered pursuant to Section 6.2 thereof and such other documents
and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Acceptance; (d) it will independently and without reliance upon Administrative Agent or any Lender and based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Agreement; (e) it appoints and authorizes Administrative Agent to take such action and to
exercise such powers under the Agreement and the other Loan Documents as are delegated to Administrative Agent by the Agreement and such other Loan Documents; and (f) it will perform in accordance with their terms all of the obligations which
by the terms of the Agreement are required to be performed by it as a Lender. 

 3.        The Assignee agrees that, upon receiving
your consent to such assignment and form and after                     , the Assignee will be bound by the terms of the Loan Documents, with
respect to the interest in the Loan Documents assigned to it as specified above, as fully and to the same extent as if the Assignee were a Lender originally holding such interest in the Loan Documents. 

4.        The following administrative details apply to the Assignee: 

 

					
	(a)	    	Credit Contact:
			
		    	Assignee name: ____________________________	  	
		    	Address:  _________________________________	  	
		    	_________________________________________ 
		    	Attention: _________________________________	  	
		    	Telephone: ________________________________	  	
		    	Telecopier: ________________________________	  	
		
	(b)	    	Operations Contract:
			
		    	Assignee name: ____________________________	  	
		    	Address:  _________________________________	  	
		    	_________________________________________ 
		    	Attention: _________________________________	  	
		    	Telephone: ________________________________	  	
		    	Telecopier: ________________________________	  	
		
	(c)	    	Lending Office:
			
		    	Assignee name: ____________________________	  	
		    	Address:  _________________________________	  	
		    	_________________________________________ 
		
	(d)	    	Payment Instructions:
			
		    	Assignee name:  ____________________________	  	
		    	ABA No.: _________________________________	  	
		    	Account No.:  ______________________________	  	
		    	Attention:  _________________________________	  	
		    	Reference: _________________________________	  	

  

 2 

 IN WITNESS WHEREOF, the Assignor and the Assignee have caused this
Assignment and Acceptance to be executed by their respective duly authorized officials, officers or agents as of the date first above mentioned. 
  

			
	 Very truly yours,

	
	[ASSIGNOR]
		
	 By:
	 	
 

			
	 Name:
	 	
 

			
	 Title:
	 	
 

			
	
	[ASSIGNEE]

			
		
	 By:
	 	
 

			
	 Name:
	 	
 

			
	 Title:
	 	  

We hereby consent to the 

foregoing assignment. 

THE CHARLES SCHWAB CORPORATION, 

as Borrower 
  

			
	By:	 	  

			
	Name: 	 	  

			
	Title: 	 	  

			
	
	 CITIBANK, N.A.,
 as
Administrative Agent

			
		
	By:	 	  

			
	Name:	 	  

			
	Title:	 	  

  

 3Amended and Restated Credit Agreement

 EXHIBIT 4.1 

AMENDED AND RESTATED CREDIT AGREEMENT 

DATED AS OF AUGUST 3, 2010 

AMONG 

PLAINS EXPLORATION & PRODUCTION COMPANY, 

AS BORROWER, 

JPMORGAN CHASE BANK, N.A., 

AS ADMINISTRATIVE AGENT, 

BANK OF AMERICA, NATIONAL ASSOCIATION 

and 

BANK OF MONTREAL, 

AS CO-SYNDICATION AGENTS, 

BNP PARIBAS 

and 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

AS CO-DOCUMENTATION AGENTS, 

AND 

THE LENDERS PARTY HERETO 
  

 
 JOINT
LEAD ARRANGERS AND JOINT BOOKRUNNERS 

JPMorgan Securities Inc. 

Banc of America Securities LLC 

 TABLE OF CONTENTS 

 

					
	 	    	 	  	Page
	 ARTICLE I Definitions and Accounting Matters
	  	1
	 Section 1.01
	    	Terms Defined Above	  	1
	 Section 1.02
	    	Certain Defined Terms	  	1
	 Section 1.03
	    	Types of Loans and Borrowings	  	23
	 Section 1.04
	    	Terms Generally; Rules of Construction	  	23
	 Section 1.05
	    	Accounting Terms and Determinations; GAAP	  	24
		
	 ARTICLE II The Credits
	  	24
	 Section 2.01
	    	Commitments	  	24
	 Section 2.02
	    	Loans and Borrowings	  	25
	 Section 2.03
	    	Requests for Borrowings	  	26
	 Section 2.04
	    	Interest Elections	  	27
	 Section 2.05
	    	Funding of Borrowings	  	28
	 Section 2.06
	    	Termination and Reduction of Aggregate Maximum Credit Amounts	  	29
	 Section 2.07
	    	Borrowing Base	  	29
	 Section 2.08
	    	Letters of Credit	  	31
	 Section 2.09
	    	Increase in the Revolving Loan Maximum Credit Amounts	  	36
	 Section 2.10
	    	Swingline Loans	  	37
	 Section 2.11
	    	Defaulting Lenders	  	39
		
	 ARTICLE III Payments of Principal and Interest; Prepayments; Fees
	  	42
	 Section 3.01
	    	Repayment of Loans	  	42
	 Section 3.02
	    	Interest	  	42
	 Section 3.03
	    	Alternate Rate of Interest	  	43
	 Section 3.04
	    	Prepayments	  	43
	 Section 3.05
	    	Fees	  	45
		
	 ARTICLE IV Payments; Pro Rata Treatment; Sharing of Set-offs.
	  	46
	 Section 4.01
	    	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	  	46
	 Section 4.02
	    	Presumption of Payment by the Borrower	  	47
	 Section 4.03
	    	Certain Deductions by the Administrative Agent	  	47
	 Section 4.04
	    	Disposition of Proceeds	  	47
		
	 ARTICLE V Increased Costs; Break Funding Payments; Taxes; Illegality
	  	48
	 Section 5.01
	    	Increased Costs	  	48
	 Section 5.02
	    	Break Funding Payments	  	49
	 Section 5.03
	    	Taxes	  	50
	 Section 5.04
	    	Mitigation Obligations; Replacement of Lenders	  	51
	 Section 5.05
	    	Illegality	  	52
		
	 ARTICLE VI Conditions Precedent
	  	52
	 Section 6.01
	    	Effective Date.	  	52

  

 i 

					
	 Section 6.02
	    	Each Credit Event	  	54
		
	 ARTICLE VII Representations and Warranties
	  	55
	 Section 7.01
	    	Organization; Powers	  	55
	 Section 7.02
	    	Authority; Enforceability	  	55
	 Section 7.03
	    	Approvals; No Conflicts	  	55
	 Section 7.04
	    	Financial Condition; No Material Adverse Effect	  	56
	 Section 7.05
	    	Litigation	  	56
	 Section 7.06
	    	Environmental Matters	  	57
	 Section 7.07
	    	Compliance with the Laws and Agreements; No Defaults	  	58
	 Section 7.08
	    	Investment Company Act	  	58
	 Section 7.09
	    	Taxes	  	58
	 Section 7.10
	    	Disclosure; No Material Misstatements	  	58
	 Section 7.11
	    	Subsidiaries	  	59
	 Section 7.12
	    	Location of Business and Offices	  	59
	 Section 7.13
	    	Properties; Titles, Etc.	  	59
	 Section 7.14
	    	Federal Reserve Regulations	  	60
	 Section 7.15
	    	Solvency	  	60
		
	 ARTICLE VIII Affirmative Covenants
	  	60
	 Section 8.01
	    	Financial Statements; Other Information	  	60
	 Section 8.02
	    	Notices of Material Events	  	63
	 Section 8.03
	    	Existence; Conduct of Business	  	63
	 Section 8.04
	    	Payment of Obligations	  	63
	 Section 8.05
	    	Operation and Maintenance of Properties	  	63
	 Section 8.06
	    	Insurance	  	64
	 Section 8.07
	    	Books and Records; Inspection Rights	  	64
	 Section 8.08
	    	Compliance with Laws	  	64
	 Section 8.09
	    	Environmental Matters	  	65
	 Section 8.10
	    	Further Assurances	  	65
	 Section 8.11
	    	Reserve Reports	  	66
	 Section 8.12
	    	Reserved	  	66
	 Section 8.13
	    	Additional Collateral; Additional Guarantors	  	66
	 Section 8.14
	    	ERISA Compliance	  	67
	 Section 8.15
	    	Unrestricted Subsidiaries	  	68
	 Section 8.16
	    	Section 1031 Exchange	  	68
		
	 ARTICLE IX Negative Covenants
	  	69
	 Section 9.01
	    	Ratio of Debt to EBITDAX	  	69
	 Section 9.02
	    	Debt	  	69

	 Section 9.03
	    	Liens	  	70
	 Section 9.04
	    	Restricted Payments	  	71
	 Section 9.05
	    	Repayment of Debt; Amendment of Indentures	  	72
	 Section 9.06
	    	Investments, Loans and Advances	  	72
	 Section 9.07
	    	Designation and Conversion of Restricted and Unrestricted Subsidiaries; Debt of Unrestricted Subsidiaries	  	75
	 Section 9.08
	    	Nature of Business	  	75

  

 ii 

					
	 Section 9.09
	    	Proceeds of Loans	  	75
	 Section 9.10
	    	Sale or Discount of Receivables	  	76
	 Section 9.11
	    	Mergers, Etc.	  	76
	 Section 9.12
	    	Sale of Properties	  	76
	 Section 9.13
	    	Transactions with Affiliates	  	77
	 Section 9.14
	    	[Reserved]	  	77
	 Section 9.15
	    	Negative Pledge Agreements; Dividend Restrictions	  	78
	 Section 9.16
	    	Take-or-Pay or Other Prepayments	  	78
	 Section 9.17
	    	Swap Agreements	  	78
		
	 ARTICLE X Events of Default; Remedies
	  	79
	 Section 10.01
	    	Events of Default	  	79
	 Section 10.02
	    	Remedies	  	81
		
	 ARTICLE XI The Agents
	  	82
	 Section 11.01
	    	Appointment; Powers	  	82
	 Section 11.02
	    	Duties and Obligations of Administrative Agent	  	82
	 Section 11.03
	    	Action by Administrative Agent	  	83
	 Section 11.04
	    	Reliance by Administrative Agent	  	83
	 Section 11.05
	    	Subagents	  	84
	 Section 11.06
	    	Resignation or Removal of Agents	  	84
	 Section 11.07
	    	Agents as Lenders	  	84
	 Section 11.08
	    	No Reliance	  	84
	 Section 11.09
	    	Authority of Administrative Agent to Release Collateral and Liens	  	85
	 Section 11.10
	    	Administrative Agent May File Proofs of Claim	  	85
	 Section 11.11
	    	The Syndication Agent, Co-Documentation Agents and Arrangers	  	86
		
	 ARTICLE XII Miscellaneous
	  	86
	 Section 12.01
	    	Notices	  	86
	 Section 12.02
	    	Waivers; Amendments	  	87
	 Section 12.03
	    	Expenses, Indemnity; Damage Waiver	  	88
	 Section 12.04
	    	Successors and Assigns	  	91
	 Section 12.05
	    	Survival; Revival; Reinstatement	  	94
	 Section 12.06
	    	Counterparts; Integration; Effectiveness	  	94
	 Section 12.07
	    	Severability	  	95
	 Section 12.08
	    	Right of Setoff	  	95
	 Section 12.09
	    	GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS	  	95
	 Section 12.10
	    	Headings	  	97
	 Section 12.11
	    	Confidentiality	  	97
	 Section 12.12
	    	Interest Rate Limitation	  	97
	 Section 12.13
	    	EXCULPATION PROVISIONS	  	98
	 Section 12.14
	    	Collateral Matters; Swap Agreements	  	99
	 Section 12.15
	    	No Third Party Beneficiaries	  	99
	 Section 12.16
	    	USA Patriot Act Notice	  	99
	 Section 12.17
	    	Release of Liens and Guarantors	  	99

  

 iii 

			
	Annex I	  	List of Maximum Credit Amounts
		
	Exhibit A	  	Form of Note
	Exhibit B	  	Form of Compliance Certificate
	Exhibit C-1	  	Security Instruments
	Exhibit C-2	  	Form of Guaranty and Collateral Agreement
	Exhibit D	  	Form of Assignment and Assumption
		
	Schedule 1.01	  	Initial Guarantors
	Schedule 7.11	  	Subsidiaries and Partnerships; Unrestricted Subsidiaries
	Schedule 9.03	  	Liens
	Schedule 9.06	  	Investments
	Schedule 9.08	  	Nature of Business

  

 iv 

 THIS AMENDED AND RESTATED CREDIT AGREEMENT dated as of August 3, 2010, is among
PLAINS EXPLORATION & PRODUCTION COMPANY, a Delaware corporation (the “Borrower”); each of the Lenders from time to time party hereto; JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity,
together with its successors in such capacity, the “Administrative Agent”); Bank of America, National Association, and Bank of Montreal, as co-syndication agents for the Lenders (in such capacity, the “Syndication
Agents”); and BNP Paribas and Wells Fargo Bank, National Association, as co-documentation agents for the Lenders (in such capacity, the “Co-Documentation Agents”). 

R E C I T A L S 

A. The Borrower, the Administrative Agent and other financial institutions named and defined therein as lenders and agents are parties to
an Amended and Restated Credit Agreement dated as of November 6, 2007, pursuant to which such lenders provided certain loans to and extensions of credit on behalf of the Borrower (as heretofore amended, modified or supplemented, the
“Existing Credit Agreement”). 
 B. The Borrower has requested the Lenders, and the Lenders have agreed, to
amend, restate, increase and extend the Existing Credit Agreement, subject to the terms and conditions of this Agreement. 
 C.
Now, therefore, in consideration of the mutual covenants and agreements herein contained and of the loans, extensions of credit and commitments hereinafter referred to, the parties hereto agree as follows: 

ARTICLE I 

Definitions and Accounting Matters 

Section 1.01 Terms Defined Above. As used in this Agreement, each term defined above has the meaning indicated above.

 Section 1.02 Certain Defined Terms. As used in this Agreement, the following terms have the meanings specified
below: 
 “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans
comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate. 

“Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, an
interest rate per annum (rounded upwards, if necessary, to the next
 1/16 of 1%) equal to (a) the LIBO Rate for
such Interest Period multiplied by (b) the Statutory Reserve Rate. 
 “Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent. 

“Affected Loans” has the meaning assigned such term in Section 5.05. 

 “Affiliate” means, with respect to a specified Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified. 

“Agents” means, collectively, the Administrative Agent, the Syndication Agent and the Co-Documentation Agents; and
“Agent” means the Administrative Agent, the Syndication Agent or any Co-Documentation Agent, as the context requires. 

“Aggregate Maximum Credit Amounts” at any time shall equal the sum of the Maximum Credit Amounts, as the same may be
reduced or terminated pursuant to Section 2.06. 
 “Agreement” means this Amended and Restated
Credit Agreement, as the same may from time to time be amended, modified, supplemented or restated. 

“Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the
Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus  1/2
 of 1% and (c) the Adjusted LIBO Rate for a one month interest period beginning on such day plus 1.00%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the effective date of such change in the Prime Rate or the Federal Funds Effective Rate, respectively. 

“Applicable Margin” means, for any day with respect to the commitment fees payable hereunder, or with respect to any
Eurodollar Loan or ABR Loan, as the case may be, the rate per annum set forth in the appropriate column below under the caption “Commitment Fee Rate”, “Eurodollar Spread,” or “ABR Spread,” as the case may be, for the
Borrowing Base Utilization Percentage then in effect: 
  

										
	 Borrowing Base Utilization Percentage
	  	Commitment Fee
Rate	 	 	Eurodollar
Spread	 	 	ABR Spread	 
	 Greater than or equal to 90%
	  	0.500	% 	 	2.75	% 	 	1.75	% 
	 Greater than or equal to 75% but less than 90%
	  	0.500	% 	 	2.50	% 	 	1.50	% 
	 Greater than or equal to 50% but less than 75%
	  	0.500	% 	 	2.25	% 	 	1.25	% 
	 Greater than or equal to 25% but less than 50%
	  	0.500	% 	 	2.00	% 	 	1.00	% 
	 Less than 25%
	  	0.500	% 	 	1.75	% 	 	0.75	% 

“Applicable Percentage” means, with respect to any Lender, the percentage of the Aggregate Maximum Credit Amounts
represented by such Lender’s Maximum Credit Amount as such percentage is set forth on Annex I. 
  

 2 

 “Approved Counterparty” means (a) any Lender or any Affiliate of a
Lender and (b) any other Person whose long term senior unsecured debt rating at the time of entering into the Swap Agreement is BBB-/Baa3 by S&P or Moody’s (or their equivalent) or higher. 

“Approved Fund” means any Person (other than a natural person) that is engaged in making, purchasing, holding or
investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender. 
 “Approved Petroleum Engineers” means (a) Netherland, Sewell &
Associates, Inc., (b) Ryder Scott Company Petroleum Consultants, L.P., (c) Miller and Lents, Ltd. and (d) any other independent petroleum engineers reasonably acceptable to the Administrative Agent. 

“Arrangers” means JPMorgan Securities Inc. and Banc of America Securities LLC, in their capacities as the joint lead
arrangers and joint bookrunners hereunder. 
 “Assignment and Assumption” means an assignment and assumption
entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 12.04(b)), and accepted by the Administrative Agent, in the form of Exhibit D or any other form approved by the
Administrative Agent. 
 “Availability Period” means the period from and including the Effective Date to but
excluding the Termination Date. 
 “Board” means the Board of Governors of the Federal Reserve System of the
United States of America or any successor Governmental Authority. 
 “Borrowing” means (a) Loans of the
same Type, made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect and (b) a Swingline Loan. 

“Borrowing Base” means at any time an amount determined in accordance with Section 2.07, in each case as the
same may be adjusted from time to time pursuant to Section 9.02(a)(ix) or Section 9.12(d). 

“Borrowing Base Deficiency” occurs if at any time the total Revolving Credit Exposures exceeds the Borrowing Base then
in effect. 
 “Borrowing Base Utilization Percentage” means, as of any day, the fraction expressed as a
percentage, the numerator of which is the sum of the Revolving Credit Exposures of the Lenders on such day, and the denominator of which is the Borrowing Base in effect on such day. 

“Borrowing Request” means a request by the Borrower for a Borrowing in accordance with Section 2.03.

 “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New
York City or Houston, Texas are authorized or required by law to 
  

 3 

 
remain closed; provided that, when used in connection with a Eurodollar Loan, the term “Business Day” shall also exclude any day on which banks are not open for dealings in
dollar deposits in the London interbank market. 
 “Capital Leases” means, in respect of any Person, all leases
that are or should be in accordance with GAAP recorded as capital leases on the balance sheet of the Person liable (whether contingent or otherwise) for the payment of rent thereunder. Any lease that was treated as an operating lease under GAAP at
the time it was entered into that later becomes a capital lease as a result of a change in GAAP during the life of such lease, including any renewals, shall be treated as an operating lease for all purposes under this Agreement, and any lease that
was treated as a capital lease under GAAP at the time it was entered into that later becomes an operating lease as a result of a change in GAAP during the life of such lease, including any renewals, shall be treated as a capital lease for all
purposes under this Agreement. 
 “Casualty Event” means any loss, casualty or other damage to, or any
nationalization, taking under power of eminent domain or by condemnation or similar proceeding of, any Oil and Gas Property of the Borrower or any of its Restricted Subsidiaries having an estimated dollar amount in excess of $50,000,000.  

 “Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of
record, by any person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof) other than Permitted Holders (except that such person or group shall be deemed to have
“beneficial ownership” of all shares that any person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time) of Equity Interests representing more than 40% of the aggregate
ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower (or its successor by merger, consolidation or purchase of all or substantially all of its assets); (b) the first day on which a majority of the
members of the Board of Directors of the Borrower are not Continuing Directors; (c) the sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or
substantially all of the assets of the Borrower and its Restricted Subsidiaries taken as a whole to any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities and Exchange Act of 1934); or (d) a “Change
of Control” under the Senior Indenture, or any Permitted Additional Debt Instrument. 
 “Change in
Law” means (a) the adoption of any law, rule or regulation after the Effective Date, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the Effective
Date or (c) compliance by any Lender or any Issuing Bank (or, for purposes of Section 5.01(b), by any lending office of such Lender or by such Lender’s or such Issuing Bank’s holding company, if any) with any request,
guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the Effective Date. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute. 

 

 4 

 “Commitment” means, with respect to each Lender, the commitment of such
Lender to make Loans, to acquire participations in Letters of Credit hereunder and to make Refunded Swingline Loans and purchase participations in Swingline Loans pursuant to Section 2.10, expressed as an amount representing the maximum
aggregate amount of such Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a) modified from time to time pursuant to Section 2.06 or Section 2.09 and (b) modified from time to time
pursuant to assignments by or to such Lender pursuant to Section 12.04(b). The amount representing each Lender’s Commitment shall be the lesser of such Lender’s Maximum Credit Amount and such Lender’s Applicable Percentage
of the then effective Borrowing Base. 
 “Commitment Fee Rate” has the meaning set forth in the definition of
“Applicable Margin”. 
 “Consolidated Net Income” means with respect to the Borrower and the
Consolidated Restricted Subsidiaries, for any period, the aggregate of the net income (or loss) of the Borrower and the Consolidated Restricted Subsidiaries after allowances for taxes for such period determined on a consolidated basis in accordance
with GAAP; provided that there shall be excluded from such net income (to the extent otherwise included therein) the following: 

(a) the net income of any Person (other than a Restricted Subsidiary) in which the Borrower or any Consolidated Restricted Subsidiary has
an interest, except to the extent of the amount of dividends or distributions actually paid in cash during such period by such other Person to the Borrower or to a Consolidated Restricted Subsidiary, as the case may be; 

(b) the net income (but not loss) during such period of any Consolidated Restricted Subsidiary to the extent that the declaration or
payment of dividends or similar distributions or transfers or loans by that Consolidated Restricted Subsidiary is not at the time permitted by the terms of its charter or any agreement, instrument or Governmental Requirement applicable to such
Consolidated Restricted Subsidiary or is otherwise restricted or prohibited; 
 (c) any extraordinary gains or losses during
such period; 
 (d) non-cash gains, losses or adjustments, including gains, losses or adjustments under authoritative guidance
from the FASB as a result of changes in the fair market value of derivatives and any gains or losses attributable to writeups or writedowns of assets, including ceiling test writedowns and writedowns under authoritative guidance from the FASB as a
result of accounting for oil and gas activities, goodwill and other intangible assets, and property, plant and equipment (for the avoidance of doubt, realized gains or losses will be counted in Consolidated Net Income in the quarter that cash is
actually received or paid); 
 (e) any charges related to any premium or penalty paid, write off of deferred financing costs or
other financial recapitalization charges in connection with redeeming or retiring any indebtedness prior to its stated maturity; 

(f) any non-cash employee based compensation; and 

(g) any gain or loss realized in connection with asset sales. 

 

 5 

 “Consolidated Restricted Subsidiaries” means any Restricted Subsidiaries
that are Consolidated Subsidiaries. 
 “Consolidated Subsidiaries” means each Subsidiary of the Borrower
(whether now existing or hereafter created or acquired) the financial statements of which are or shall be (or should have been) consolidated with the financial statements of the Borrower in accordance with GAAP. 

“Continuing Directors” means, as of any date of determination, any member of the Board of Directors of the Borrower who:
(a) was a member of such Board of Directors on the date hereof; or (b) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board at the time
of such nomination or election. 
 “Control” means the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative
thereto. 
 “Debt” means, for any Person, the sum of the following (without duplication): 

(a) all obligations of such Person for borrowed money or evidenced by bonds, debentures, notes or other similar instruments; 

(b) all reimbursement obligations of such Person in respect of draws under letters of credit, bankers' acceptance, surety or other bonds
and similar instruments that have not been paid or deemed to have been paid within one Business Day after such obligations arise; 

(c) all amounts owed by such Person representing the deferred purchase price of Property or services (other than liabilities of such
Person to trade creditors arising in the ordinary course of business (including guarantees thereof or instruments evidencing such liabilities) that are either (i) not greater than 120 days past the invoice or billing date or (ii) are being
contested in good faith by appropriate proceedings and adequate reserves therefore have been established under GAAP); 
 (d) all
obligations under Capital Leases; 
 (e) all Debt (as defined in the other clauses of this definition) of others secured by a
Lien on any Property of such Person, whether or not such Debt is assumed by such Person; 
 (f) all Debt (as defined in the
other clauses of this definition) of others guaranteed by such Person or in which such Person otherwise assures a creditor against loss of the Debt (howsoever such assurance shall be made) to the extent of the lesser of the amount of such Debt and
the maximum stated amount of such guarantee or assurance against loss; 
 (g) all obligations or undertakings of such Person to
maintain or cause to be maintained the financial position or covenants of others or to purchase the Debt or Property of others; 
  

 6 

 (h) any Debt of a partnership for which such Person is liable either by agreement, by
operation of law or by a Governmental Requirement but only to the extent of such liability; 
 (i) Disqualified Capital Stock;
and 
 (j) the undischarged balance of any production payment created by such Person or for the creation of which such Person
directly or indirectly received payment. 
 For the avoidance of doubt, “Debt” does not include obligations in respect
of Swap Agreements, indemnities incurred in the ordinary course of business or in connection with the disposition of assets, any non-cash employee or director compensation, any compensation paid to employees or directors pursuant to stock
appreciation rights, or obligations under operating leases. 
 “Debt Rating” means, as of any date of
determination, the issuer or family rating of the Borrower most recently announced by S&P or Moody’s. 

“Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both
would, unless cured or waived, become an Event of Default. 
 “Default Rate” means a rate per annum equal to 2%
plus the rate applicable to ABR Loans as provided in Section 3.02(a). 
 “Defaulting Lender” means
any Lender, as reasonably determined by the Administrative Agent, that has (a) failed to comply with its obligation to fund any portion of its Loans or participations in Letters of Credit or Swingline Loans within three Business Days of the
date required to be funded by it hereunder, (b) (i) notified the Borrower, the Administrative Agent, the Issuing Bank, the Swingline Lender or any Lender in writing that it does not intend to comply with any of its funding obligations
under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement or (ii) made a public statement to the effect that it does not intend to comply with its
funding obligations generally under other agreements in which it commits to extend credit at a time when the Commitments have not terminated or any Swingline Loans or Letters of Credit remain outstanding, (c) failed, within three Business Days
after written request by the Administrative Agent, to confirm that it will comply with the terms of this Agreement relating to its obligations to fund prospective Loans and participations in then outstanding Letters of Credit and Swingline Loans;
provided, that any such Lender will cease to be a Defaulting Lender under this clause (c) upon receipt of such confirmation by the Administrative Agent, (d) otherwise failed to pay over to the Administrative Agent or any other
Lender any other amount required to be paid by it hereunder within three Business Days of the date when due, unless the subject of a good faith dispute, or (e) (i) become or is insolvent or has a parent company that has become or is
insolvent or (ii) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or
acquiescence in any such proceeding or appointment or has a parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in
furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding 
  

 7 

 
or appointment; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of an Equity Interest in such Lender or a parent company thereof by
a Governmental Authority or an instrumentality thereof. For avoidance of doubt (A) an assignee of a Defaulting Lender shall not be deemed to be a Defaulting Lender solely by virtue of the fact that it is an assignee of a Defaulting Lender,
(B) neither the reallocation of funding obligations provided for in Section 2.11 as a result of a Lender being a Defaulting Lender nor the performance by non-Defaulting Lenders of such reallocated funding obligations will by
themselves cause the relevant Defaulting Lender to become a non-Defaulting Lender and (C) when a Defaulting Lender ceases to be a Defaulting Lender (due to assignment to a new or existing Lender, commitment reduction pursuant to
Section 2.11 or otherwise), all cash collateral deposited with respect to LC Exposure or Swingline Loans pursuant to Section 2.11(c) shall be promptly released to the Borrower and all commitment reallocations under
Section 2.11 shall be promptly adjusted. 
 “Disqualified Capital Stock” means any Equity Interest
that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event, matures or is mandatorily redeemable for any consideration other than other Equity Interests (which
would not constitute Disqualified Capital Stock), pursuant to a sinking fund obligation or otherwise, or is convertible or exchangeable for Debt or redeemable for any consideration other than other Equity Interests (which would not constitute
Disqualified Capital Stock) at the option of the holder thereof, in whole or in part, on or prior to the date that is 91 days after the earlier of (a) the Maturity Date and (b) the date on which there are no Loans, LC Exposure or other
obligations hereunder outstanding and all of the Commitments are terminated. 
 “Dollars” or
“$” refers to lawful money of the United States of America. 
 “Domestic Subsidiary” means any
Subsidiary that is organized under the laws of the United States of America or any state thereof or the District of Columbia. 

“EBITDAX” means, for any period, the sum of Consolidated Net Income for such period plus (i) the following expenses
or charges to the extent deducted in determining Consolidated Net Income in such period (without duplication): interest, income taxes, depreciation, depletion, amortization, exploration expenses and other non-cash charges and minus (ii) all
non-cash income included in the calculation of Consolidated Net Income; provided, however, that if any such Person shall have consummated any material acquisition or disposition during such period, EBITDAX shall be subject to pro
forma adjustments for such acquisition or disposition, as if such acquisition or disposition had occurred on the first day of such period and shall also include adding back to Consolidated Net Income any non-recurring or one-time cash or
non-cash charges or expenses associated with such acquisition or disposition; provided, however, that such pro forma adjustments shall be subject to the approval of the Administrative Agent. 

“Effective Date” means the date on which the conditions specified in Section 6.01 are satisfied (or waived
in accordance with Section 12.02). 
 “Engineering Reports” has the meaning assigned such term in
Section 2.07(c)(i). 
  

 8 

 “Environmental Laws” means any and all Governmental Requirements pertaining
in any way to health, safety, the environment or the preservation or reclamation of natural resources, in effect in any and all jurisdictions in which the Borrower or any Restricted Subsidiary is conducting or at any time has conducted business, or
where any Property of the Borrower or any Restricted Subsidiary is located, including without limitation, the Oil Pollution Act of 1990 (“OPA”), as amended, the Clean Air Act, as amended, the Comprehensive Environmental, Response,
Compensation, and Liability Act of 1980 (“CERCLA”), as amended, the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act of 1970, as amended, the Resource Conservation and Recovery Act of 1976
(“RCRA”), as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, the Hazardous Materials Transportation Act, as
amended, and other environmental conservation or protection Governmental Requirements. The term “oil” has the meaning specified in OPA, the terms “hazardous substance” and “release” (or “threatened
release”) have the meanings specified in CERCLA, the terms “solid waste” and “disposal” (or “disposed”) have the meanings specified in RCRA and the term “oil and gas waste”
has the meaning specified in Section 91.1011 of the Texas Natural Resources Code (“Section 91.1011”); provided, however, that (a) in the event either OPA, CERCLA, RCRA or Section 91.1011 is amended so as
to broaden the meaning of any term defined thereby, such broader meaning shall apply subsequent to the effective date of such amendment and (b) to the extent the laws of the state or other jurisdiction in which any Property of the Borrower or
any Restricted Subsidiary is located establish a meaning for “oil,” “hazardous substance,” “release,” “solid waste,” “disposal” or “oil and gas
waste” which is broader than that specified in either OPA, CERCLA, RCRA or Section 91.1011, such broader meaning shall apply. 

“Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability
company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute. 

“ERISA Affiliate” means each trade or business (whether or not incorporated) which together with the Borrower or a
Subsidiary would be deemed to be a “single employer” within the meaning of section 4001(b)(1) of ERISA or subsections (b), (c), (m) or (o) of section 414 of the Code. 

“ERISA Event” means (a) a “Reportable Event” described in section 4043 of ERISA and the regulations
issued thereunder, (b) the withdrawal of the Borrower, a Subsidiary or any ERISA Affiliate from a Plan during a plan year in which it was a “substantial employer” as defined in section 4001(a)(2) of ERISA, (c) the filing of a
notice of intent to terminate a Plan or the treatment of a Plan amendment as a termination under section 4041 of ERISA, (d) the institution of proceedings to terminate a Plan by the PBGC, (e) receipt of a notice of withdrawal liability
pursuant to Section 4202 of ERISA, (f) any other event or condition which might constitute grounds under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan or (g) the incurrence of
any liability to the PBGC or any Plan or Multiemployer Plan (other than to make contributions in the ordinary course of business) that could reasonably be expected to have a Material Adverse Effect. 

 

 9 

 “Eurodollar”, when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate. 

“Event of Default” has the meaning assigned such term in Section 10.01. 

“Excepted Liens” means: 

(a) Liens for Taxes, assessments or other governmental charges or levies which are not delinquent or which are being contested in good
faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; 
 (b) Liens incurred
or deposits made in connection with workers’ compensation, unemployment insurance or other social security, old age pension or public liability obligations which are not delinquent or which are being contested in good faith by appropriate
action and for which adequate reserves have been maintained in accordance with GAAP; 
 (c) statutory landlord’s Liens,
operators’, vendors’, carriers’, warehousemen’s, repairmen’s, mechanics’, suppliers’, workers’, materialmen’s and construction Liens, Liens on pipelines and pipeline facilities that arise by operation of
law or other like Liens arising by operation of law in the ordinary course of business or incident to the exploration, development, operation and maintenance of Oil and Gas Properties each of which is in respect of obligations that are not
delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; 

(d) contractual Liens under lease agreements or which arise in the ordinary course of business under operating agreements, joint venture
agreements, oil and gas partnership agreements, oil and gas leases, farm-out and farm-in agreements, division orders, contracts for the sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements,
area of mutual interest agreements, overriding royalty agreements, marketing agreements, processing agreements, net profits agreements, development agreements, gas balancing or deferred production agreements, injection, repressuring and recycling
agreements, salt water or other disposal agreements, seismic or other geophysical permits or agreements, and other agreements which are usual and customary in the oil and gas business and are for claims which are not delinquent or which are being
contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP, provided that any such Lien referred to in this clause does not materially impair the use of the Property covered by
such Lien for the purposes for which such Property is held by the Borrower or any Restricted Subsidiary or materially impair the value of such Property subject thereto; 

(e) Liens arising solely by virtue of any statutory or common law provision relating to banker’s liens, rights of set-off or similar
rights and remedies and burdening only deposit accounts or other funds maintained with a creditor depository institution, provided that no such deposit account is a dedicated cash collateral account or is subject to restrictions against
access by the depositor in excess of those set forth by regulations promulgated by the Board and no such deposit account is intended by Borrower or any of its Restricted Subsidiaries to provide collateral to the depository institution; 

 

 10 

 (f) easements, restrictions, zoning restrictions, servitudes, permits, conditions,
covenants, exceptions or reservations in any Property of the Borrower or any Restricted Subsidiary for the purpose of roads, pipelines, transmission lines, transportation lines, distribution lines for the removal of gas, oil, coal or other minerals
or timber, and other like purposes, or for the joint or common use of real estate, rights of way, facilities and equipment, and which in the aggregate do not materially impair the use of such Property for the purposes of which such Property is held
by the Borrower or any Restricted Subsidiary or materially impair the value of such Property subject thereto; 
 (g) Liens on
cash or securities pledged to secure performance of tenders, surety and appeal bonds, government contracts, performance and return of money bonds, bids, trade contracts, leases, statutory obligations, regulatory obligations and other obligations of
a like nature incurred in the ordinary course of business; 
 (h) judgment and attachment Liens not giving rise to an Event of
Default, provided that any appropriate legal proceedings which may have been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated shall not have
expired and no action to enforce such Lien has been commenced; and 
 (i) Liens arising from Uniform Commercial Code financing
statement filings regarding operating leases entered into by the Borrower and the Restricted Subsidiaries in the ordinary course of business covering only the Property under lease; 

provided, however, that Liens described in clauses (a) through (e) shall remain “Excepted Liens” only for so long as no
action to enforce such Lien has been commenced and no intention to subordinate the first priority Lien granted in favor of the Administrative Agent and the Lenders is to be hereby implied or expressed by the permitted existence of such Excepted
Liens. 
 “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, any Issuing Bank or any
other recipient of any payment to be made by or on account of any obligation of the Borrower or any Guarantor hereunder or under any other Loan Document, (a) income or franchise taxes imposed on (or measured by) its income, receipts, total
assets, net worth, or capital by the United States of America or such other jurisdiction under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending
office is located, (b) any branch profits taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction in which the Borrower or any Guarantor is located and (c) in the case of a Foreign Lender (other
than an assignee pursuant to a request by the Borrower under Section 5.04(b)), any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates
a new lending office) or is attributable to such Foreign Lender’s failure to comply with Section 5.03(e), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new
lending office (or assignment), to receive additional amounts with respect to such withholding tax pursuant to Section 5.03(a) or Section 5.03(c). 
  

 11 

 “Existing Credit Agreement” has the meaning set forth in the recitals
hereto. 
 “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next  1/100 of 1%) of
the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100
 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

 “FASB” means the Financial Accounting Standards Board. 

“Financial Officer” means the chief financial officer, principal accounting officer, treasurer or controller of the
Borrower. 
 “Financial Statements” means the financial statement or statements of the Borrower and its
Consolidated Subsidiaries referred to in Section 7.04(a). 
 “Foreign Lender” means any Lender that
is organized under the laws of a jurisdiction other than that in which the Borrower is located. For purposes of this definition, the United States of America, each State thereof and the District of Columbia shall be deemed to constitute a single
jurisdiction. 
 “Foreign Subsidiary” means any Restricted Subsidiary that is not a Domestic Subsidiary.

 “GAAP” means generally accepted accounting principles in the United States of America as in effect from time
to time subject to the terms and conditions set forth in Section 1.05. 
 “Governmental Authority”
means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government over the Borrower, any Restricted Subsidiary, any of their Properties, any Agent, any Issuing Bank or any Lender. 

“Governmental Requirement” means any law, statute, code, ordinance, order, determination, rule, regulation, judgment,
decree, injunction, franchise, permit, certificate, license, authorization or other directive or requirement, whether now or hereinafter in effect, including, without limitation, Environmental Laws, energy regulations and occupational, safety and
health standards or controls, of any Governmental Authority. 
 “Guarantors” means the entities listed on
Schedule 1.01 and any other Person that must guarantee the Indebtedness in order for the Borrower to comply with Section 8.13, but excluding any Person released as a Guarantor pursuant to Section 12.17. 

 

 12 

 “Guaranty Agreement” means an agreement executed by the Guarantors in
substantially the form of Exhibit C-2 unconditionally guarantying on a joint and several basis, payment of the Indebtedness, as the same may be amended, modified or supplemented from time to time. 

“Highest Lawful Rate” means, with respect to each Lender, the maximum nonusurious interest rate, if any, that at any
time or from time to time may be contracted for, taken, reserved, charged or received on the Notes or on other Indebtedness under laws applicable to such Lender which are presently in effect or, to the extent allowed by law, under such applicable
laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than applicable laws allow as of the date hereof. 

“Hydrocarbon Interests” means all rights, titles, interests and estates now or hereafter acquired in and to oil and gas
leases, oil, gas and mineral leases, or other liquid or gaseous hydrocarbon leases, mineral fee interests, overriding royalty and royalty interests, net profit interests and production payment interests, including any reserved or residual interests
of whatever nature. 
 “Hydrocarbons” means oil, gas, casinghead gas, drip gasoline, natural gasoline,
condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all products refined or separated therefrom. 

“Immaterial Title Deficiencies” means minor defects or deficiencies in title which do not diminish more than 5%
of the aggregate value of the Oil and Gas Properties included in the Borrowing Base.  
 “Increasing
Lender” has the meaning set forth in Section 2.09. 
 “Indebtedness” means any and all
amounts owing or to be owing by the Borrower, any of its Restricted Subsidiaries or any Guarantor: (a) to the Administrative Agent, any Issuing Bank, the Swingline Lender or any Lender under any Loan Document; (b) to any Lender or any
Affiliate of a Lender under any Swap Agreement between the Borrower or any of its Restricted Subsidiaries and such Lender or Affiliate of a Lender while such Person (or in the case of its Affiliate, the Person affiliated therewith) is a Lender
hereunder; and (c) all renewals, extensions and/or rearrangements of any of the foregoing. 
 “Indemnified
Taxes” means Taxes other than Excluded Taxes. 
 “Initial Reserve Report” means the Reserve
Reports of Netherland, Sewell & Associates, Inc. and Ryder Scott Company L.P. with respect to the value of certain Oil and Gas Properties of the Borrower and its Restricted Subsidiaries as of December 31, 2009.  

“Interest Election Request” means a request by the Borrower to convert or continue a Borrowing in accordance with
Section 2.04. 
 “Interest Payment Date” means (a) with respect to any ABR Loan, the last day
of each March, June, September and December and (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest
Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period. 

 

 13 

 “Interest Period” means with respect to any Eurodollar Borrowing, the
period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three, six or, with the consent of the Administrative Agent, nine or 12 months thereafter, as the Borrower may
elect; provided, that (a) with respect to any Interest Period the Administrative Agent may consent to an Interest Period that is less than one month, (b) if any Interest Period would end on a day other than a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day, and (c) any
Interest Period pertaining to a Eurodollar Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the
last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion
or continuation of such Borrowing. 
 “Interim Redetermination” has the meaning assigned such term in
Section 2.07(b). 
 “Interim Redetermination Date” means the date on which a Borrowing Base that
has been redetermined pursuant to an Interim Redetermination becomes effective as provided in Section 2.07(d). 

“Investment” means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or
otherwise) of Equity Interests of any other Person or any agreement to make any such acquisition (including, without limitation, any “short sale” or any sale of any securities at a time when such securities are not owned by the Person
entering into such short sale); (b) the making of any deposit with, or advance, loan or capital contribution to, assumption of Debt of, purchase or other acquisition of any other Debt or equity participation or interest in, or other extension
of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such Property to such Person, but excluding any such advance, loan or extension of
credit having a term not exceeding 90 days representing the purchase price of inventory or supplies sold by such Person in the ordinary course of business); (c) the purchase or acquisition (in one or a series of transactions) of Property of
another Person that constitutes a business unit or (d) the entering into of any guarantee of, or other contingent obligation (including the deposit of any Equity Interests to be sold) with respect to, Debt or other liability of any other Person
and (without duplication) any amount committed to be advanced, lent or extended to such Person. 
 “Investment Grade
Rating” means (i) Debt Ratings of at least Baa3 by Moody's and at least BBB- by S&P or (ii) a Debt Rating by either Moody’s or S&P as described in clause (i) and a Debt Rating from the other rating agency that is
not more than one level below the Debt Rating described in clause (i). 
  

 14 

 “Issuing Bank” means JPMorgan and each Lender that agrees to act as an
issuer of Letters of Credit hereunder at the request of the Borrower, in each case, in its capacity as an issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.08(i). Any Issuing Bank may, in
its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of such Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such
Affiliate. 
 “Joinder Agreement” has the meaning set forth in Section 2.09(a). 

“LC Commitment” at any time means $250,000,000. 

“LC Disbursement” means a payment made by any Issuing Bank pursuant to a Letter of Credit issued by such Issuing Bank.

 “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn and unexpired stated amount of
all outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Lender at any time shall be its
Applicable Percentage of the total LC Exposure at such time. 
 “Lenders” means the Persons listed on Annex I
and any Person that shall have become a party hereto pursuant to Section 2.09 or pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption. 

“Letter of Credit” means any letter of credit issued pursuant to this Agreement. 

“Letter of Credit Agreements” means all letter of credit applications and other agreements (including any amendments,
modifications or supplements thereto) submitted by the Borrower, or entered into by the Borrower, with any Issuing Bank relating to any Letter of Credit issued by such Issuing Bank. 

“LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, the rate appearing at Reuters
Reference Screen LIBOR01 (or on any successor or substitute screen of such service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided on such screen of such service, as determined by
the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of
such Interest Period, as the rate for dollar deposits with a maturity comparable to such Interest Period. In the event that such rate is not available at such time for any reason, then the “LIBO Rate” with respect to such Eurodollar
Borrowing for such Interest Period shall be the rate at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by the principal London office of the Administrative Agent in immediately available funds
in the London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period. 

“Lien” means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of
the Property, whether such interest is based on the common law, 
  

 15 

 
statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to (a) the lien or security interest arising from a mortgage, encumbrance,
pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes or (b) production payments and the like payable out of Oil and Gas Properties. The term “Lien” shall
include easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations. 
 “Loan
Documents” means this Agreement, the Notes, all Letter of Credit Agreements, the Letters of Credit and the Security Instruments. 

“Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement. 

“Majority Lenders” means, at any time while no Loans or LC Exposure is outstanding, Lenders having more than 50% of the
Aggregate Maximum Credit Amounts; and at any time while any Loans or LC Exposure is outstanding, Lenders holding more than 50% of the outstanding aggregate principal amount of the Loans and participation interests in Letters of Credit and Swingline
Loans (without regard to any sale by a Lender of a participation in any Loan under Section 12.04(c)). 

“Material Adverse Effect” means a material adverse effect on (a) the business, operations, Property or financial
condition of the Borrower and the Restricted Subsidiaries taken as a whole, excluding the effect of events, developments and circumstances affecting the oil and gas exploration and production industry generally, (b) the validity or
enforceability of any of the Loan Documents taken as a whole or the ability of the Borrower and the Restricted Subsidiaries, taken as a whole, to perform any of their respective obligations under any Loan Document or (c) the rights and remedies
of or benefits available to the Administrative Agent, any Issuing Bank or any Lender under any Loan Document. 

“Material Domestic Restricted Subsidiary” means each Restricted Subsidiary that is a Domestic Subsidiary and owns assets
representing 10% or more of the total assets of the Borrower and its Restricted Subsidiaries or whose EBITDAX represents 10% or more of the EBITDAX of the Borrower and its Restricted Subsidiaries. For purposes of this definition, the total assets
and EBITDAX of the Borrower and its Restricted Subsidiaries shall be determined as of the end of the Borrower’s most recent fiscal quarter for which financial statements are available. 

“Material Indebtedness” means Debt (other than the Loans and Letters of Credit) or obligations in respect of one or more
Swap Agreements, of any one or more of the Borrower and its Restricted Subsidiaries in an aggregate principal amount exceeding $75,000,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the
Borrower or any Restricted Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary would be required to pay if such Swap Agreement
were terminated at such time. 
 “Maturity Date” means August 3, 2015. 

 

 16 

 “Maximum Credit Amount” means, as to each Lender, the amount set forth
opposite such Lender’s name on Annex I under the caption “Maximum Credit Amounts”, as the same may be (a) reduced or terminated from time to time in connection with a reduction or termination of the Aggregate Maximum Credit
Amounts pursuant to Section 2.06(b), (b) increased pursuant to Section 2.09, (c) modified from time to time pursuant to any assignment permitted by Section 12.04(b) or (d) amended by the
addition of a new Increasing Lender pursuant to Section 2.09. 
 “Minimum Liquidity” means, as of
any date of determination, the sum of (a) the aggregate unused amount of the Commitments under this Agreement as of such date and (b) all unrestricted and unencumbered cash and Investments of the type described in
Section 9.06(c), (d), (e) and (f) reflected on the Borrower’s balance sheet as of such date. 

“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto that is a nationally recognized
rating agency. 
 “Mortgaged Property” means any Property owned by the Borrower or any Restricted Subsidiary
which is subject to the Liens existing and to exist under the terms of the Security Instruments. 
 “Mortgage Release
Date” means the earlier to occur of (i) the date that the Borrower obtains an Investment Grade Rating and (ii) the date upon which the Commitments have been terminated, all Loans, interest, fees and other amounts (other than
obligations for taxes, costs, indemnifications, reimbursements and damages in respect of which no claim has been made and which survive the termination of this Agreement) have been paid, all LC Disbursements have been reimbursed, and all Letters of
Credit have been terminated, expired or cash collateralized. 
 “Multiemployer Plan” means a Plan which is a
multiemployer plan as defined in section 3(37) or 4001 (a)(3) of ERISA. 
 “New Borrowing Base Notice” has the
meaning assigned such term in Section 2.07(d). 
 “Non-Recourse Debt” means any Debt of any
Unrestricted Subsidiary or other Person in which the Borrower or a Restricted Subsidiary made an Investment permitted by Sections 9.06(g)(iii), (h) or (j), in each case in respect of which: (a) the holder or holders thereof
(i) shall have recourse only to, and shall have the right to require the obligations of such Unrestricted Subsidiary or such Person to be performed, satisfied, and paid only out of, the Property of such Unrestricted Subsidiary or such Person
and/or one or more of its Subsidiaries (but only to the extent that such Subsidiaries are Unrestricted Subsidiaries or not Subsidiaries of the Borrower) and/or any other Person (other than the Borrower and/or any Restricted Subsidiary) or the Equity
Interests of such Unrestricted Subsidiary, such Person or such Subsidiaries and (ii) shall have no direct or indirect recourse (including by way of guaranty, support or indemnity) to the Borrower or any Restricted Subsidiary or to any of the
Property of Borrower or any Restricted Subsidiary (other than the Equity Interests of such Unrestricted Subsidiary or Person), whether for principal, interest, fees, expenses or otherwise; and (b) the terms and conditions relating to the
non-recourse nature of such Debt are in form and substance reasonably acceptable to the Administrative Agent. 
  

 17 

 “Notes” means the promissory notes of the Borrower described in
Section 2.02(d) and being substantially in the form of Exhibit A, together with all amendments, modifications, replacements, extensions and rearrangements thereof. 

“Oil and Gas Properties” means (a) Hydrocarbon Interests; (b) the Properties now or hereafter pooled or
unitized with Hydrocarbon Interests; (c) all presently existing or future unitization, pooling agreements and declarations of pooled units and the units created thereby (including without limitation all units created under orders, regulations
and rules of any Governmental Authority) which may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements, including production sharing contracts and agreements, which relate to any
of the Hydrocarbon Interests or the production, sale, purchase, transportation, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests; (e) all Hydrocarbons in and under and which may be produced and saved or
attributable to the Hydrocarbon Interests, including all oil in tanks, and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests; (f) all tenements, hereditaments,
appurtenances and Properties in any manner appertaining, belonging, affixed or incidental to the Hydrocarbon Interests and (g) all Properties, rights, titles, interests and estates described or referred to above, including any and all Property,
real or personal, now owned or hereinafter acquired and situated upon, used, held for use or useful in connection with the operating, working or development of any of such Hydrocarbon Interests or Property (excluding drilling rigs, automotive
equipment, rental equipment or other personal Property which may be on such premises for the purpose of drilling a well or for other similar temporary uses) and including any and all oil wells, gas wells, injection wells or other wells, buildings,
structures, fuel separators, liquid extraction plants, plant compressors, pumps, pumping units, field gathering systems, tanks and tank batteries, fixtures, valves, fittings, machinery and parts, engines, boilers, meters, apparatus, equipment,
appliances, tools, implements, cables, wires, towers, casing, tubing and rods, surface leases, rights-of-way, easements and servitudes together with all additions, substitutions, replacements, accessions and attachments to any and all of the
foregoing. 
 “Other Taxes” means any and all present or future stamp or documentary taxes or any other excise
or Property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement and any other Loan Document. 

“Participant” has the meaning set forth in Section 12.04(c)(i). 

“PBGC” means the Pension Benefit Guaranty Corporation, or any successor thereto. 

“Permitted Additional Debt” means Debt permitted to be incurred pursuant to Section 9.02(a)(ix). 

“Permitted Additional Debt Instruments” means the indentures, promissory notes, credit agreements and other instruments
pursuant to which Permitted Additional Debt has been issued or incurred, as amended or supplemented as permitted by Section 9.02(a)(ix). 
  

 18 

 “Permitted Holders” means (i) James C. Flores and his spouse and
lineal descendants, their respective estates or legal representatives, (ii) trusts created for the benefit of such Persons and (iii) entities of which 80% or more of the Equity Interests having ordinary voting power is directly or
indirectly owned by any of the preceding Persons. 
 “Person” means any natural person, corporation, limited
liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity. 

“Plan” means any employee pension benefit plan, as defined in section 3(2) of ERISA, which (a) is currently or
hereafter sponsored, maintained or contributed to by the Borrower, a Subsidiary or an ERISA Affiliate or (b) was at any time during the six calendar years preceding the date hereof, sponsored, maintained or contributed to by the Borrower or a
Subsidiary or an ERISA Affiliate. 
 “Point Arguello Partnerships” means the following partnerships of which
Arguello Inc. is a managing general partner: (i) Gaviota Gas Plant Company, (ii) Point Arguello Natural Gas Line Company, and (iii) Point Arguello Pipeline Company. 

“Prime Rate” means the rate of interest per annum publicly announced from time to time by JPMorgan as its prime rate in
effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective. Such rate is set by the Administrative Agent as a general reference
rate of interest, taking into account such factors as the Administrative Agent may deem appropriate; it being understood that many of the Administrative Agent’s commercial or other loans are priced in relation to such rate, that it is not
necessarily the lowest or best rate actually charged to any customer and that the Administrative Agent may make various commercial or other loans at rates of interest having no relationship to such rate. 

“Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or
intangible, including, without limitation, cash, securities, accounts and contract rights. 
 “Proposed Borrowing
Base” has the meaning assigned to such term in Section 2.07(c)(i). 
 “Proposed Borrowing Base
Notice” has the meaning assigned to such term in Section 2.07(c)(ii). 
 “Redemption”
means with respect to any Debt, the repurchase, redemption, prepayment, repayment, defeasance or any other acquisition or retirement for value (or the segregation of funds with respect to any of the foregoing) of such Debt. “Redeem”
has the correlative meaning thereto. 
 “Redetermination Date” means, with respect to any Scheduled
Redetermination or any Interim Redetermination, the date that the redetermined Borrowing Base related thereto becomes effective pursuant to Section 2.07(d). 

“Refunded Swingline Loans” has the meaning specified in Section 2.10(e). 

 

 19 

 “Register” has the meaning assigned such term in
Section 12.04(b)(iv). 
 “Regulation D” means Regulation D of the Board, as the same may be
amended, supplemented or replaced from time to time. 
 “Related Parties” means, with respect to any specified
Person, such Person’s Affiliates and the respective directors, officers, employees, agents and attorneys, accountants and experts of such Person and such Person’s Affiliates. 

“Required Lenders” means, at any time while no Loans or LC Exposure is outstanding, Lenders having at least 90% of the
Aggregate Maximum Credit Amounts; and at any time while any Loans or LC Exposure is outstanding, Lenders having not less than 90% of the outstanding aggregate principal amount of the Loans and participation interests in Letters of Credit and
Swingline Loans (without regard to any sale by a Lender of a participation in any Loan under Section 12.04(c)). 

“Reserve Report” means a report, in form and substance reasonably satisfactory to the Administrative Agent, setting
forth, as of each December 31st (or such other date in the event of an Interim Redetermination), the proved oil and gas reserves attributable to Oil and Gas Properties of the Borrower and the Restricted Subsidiaries, together with a projection
of the rate of production and future net income, taxes, operating expenses and capital expenditures with respect thereto as of such date, based upon the pricing assumptions consistent with SEC reporting requirements at the time. For the avoidance of
doubt, any reference in this Agreement (including Sections 8.13 and 9.12) to Oil and Gas Properties described, included or evaluated in a Reserve Report shall be deemed to exclude possible or probable oil and gas reserves attributable
to such Oil and Gas Properties. 
 “Responsible Officer” means, as to any Person, the Chief Executive Officer,
the President, any Financial Officer or any Vice President of such Person. Unless otherwise specified, all references to a Responsible Officer herein shall mean a Responsible Officer of the Borrower. 

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other Property) with
respect to any Equity Interests in the Borrower or any of its Subsidiaries, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such Equity Interests in the Borrower or any of its Subsidiaries or any option, warrant or other right to acquire any such Equity Interests in the Borrower or any of its Subsidiaries. 

“Restricted Subsidiary” means any Subsidiary of the Borrower that is not an Unrestricted Subsidiary. 

“Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of (i) the outstanding principal
amount of such Lender’s Loans, (ii) its LC Exposure and (iii) its Applicable Percentage of outstanding Swingline Loans, in each case at such time. 

“Scheduled Redetermination” has the meaning assigned such term in Section 2.07(b). 

 

 20 

 “Scheduled Redetermination Date” means the date on which a Borrowing Base
that has been redetermined pursuant to a Scheduled Redetermination becomes effective as provided in Section 2.07(d). 

“SEC” means the Securities and Exchange Commission or any successor Governmental Authority. 

“Section 1031 Counterparty” means an entity that is not an Affiliate of the Borrower and that will serve as an exchange
accommodation titleholder in connection with the Section 1031 Exchange. 
 “Section 1031 Exchange” means a
transaction intended to qualify for nonrecognition of gain or loss under Section 1031 of the Code pursuant to which the Borrower or a Subsidiary of the Borrower would exchange Oil and Gas Properties owned by it for Oil and Gas Properties owned
by a third party. 
 “Secured Subordinated Intercompany Debt” has the meaning set forth in
Section 9.02(a)(v). 
 “Security Instruments” means the Guaranty Agreement, mortgages, deeds of
trust and other agreements, instruments or certificates described or referred to in Exhibit C-1, and any and all other agreements, instruments or certificates now or hereafter executed and delivered by the Borrower or any other Person (other
than Swap Agreements with the Lenders or any Affiliate of a Lender or participation or similar agreements between any Lender and any other lender or creditor with respect to any Indebtedness pursuant to this Agreement) in connection with, or as
security for the payment or performance of the Indebtedness, the Notes, this Agreement, or reimbursement obligations under the Letters of Credit, as such agreements may be amended, modified, supplemented or restated from time to time. 

“Senior Indenture” means the Indenture dated as of March 13, 2007, among the Borrower, as issuer, the guarantors
party thereto and Wells Fargo Bank, N.A., as trustee, pursuant to which the Senior Notes were issued, as amended or supplemented as permitted by Section 9.05. 

“Senior Notes” means (i) the $600,000,000 aggregate principal amount of
7 3/4% Senior Notes due 2015, (ii) the
$565,000,000 aggregate principal amount of 10% Senior Notes due 2016, (iii) the $500,000,000 aggregate principal amount of 7% Senior Notes due 2017, (iv) the $400,000,000 aggregate principal amount of
7 5/8% Senior Notes due 2018, (v) the
$400,000,000 aggregate principal amount of 8 5/8%
Senior Notes due 2019, and (vi) the $300,000,000
7 5/8% Senior Notes due 2020, in each case issued by
the Borrower pursuant to the Senior Indenture. 
 “S&P” means
Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc., and any successor thereto that is a nationally recognized rating agency. 

“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the
denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the Administrative Agent is

  

 21 

 
subject for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to
such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any
Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 

“Subsidiary” means: (a) any Person of which at least a majority of the outstanding Equity Interests having by the
terms thereof ordinary voting power to elect a majority of the board of directors, managers or other governing body of such Person (irrespective of whether or not at the time Equity Interests of any other class or classes of such Person have or
might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by the Borrower or one or more of its Subsidiaries or by the Borrower and one or more of its Subsidiaries and
(b) any partnership of which the Borrower or any of its Subsidiaries is a general partner other than the Point Arguello Partnerships; provided, however, that neither Sepulveda Oil and Gas Company nor Nuevo Energy Company shall be
a Subsidiary of the Borrower. Unless otherwise indicated herein, each reference to the term “Subsidiary” shall mean a Subsidiary of the Borrower. 

“Super-majority Lenders” means, at any time while no Loans or LC Exposure are outstanding, Lenders
having at least 66- 2/3% of the Aggregate Maximum
Credit Amounts; and at any time while any Loans or LC Exposure is outstanding, Lenders holding at least
66- 2/3% of the outstanding aggregate principal
amount of the Loans and participation interests in such Letters of Credit and Swingline Loans (without regard to any sale by a Lender of a participation in any Loan under Section 12.04(c)). 

“Swap Agreement” means any agreement with respect to any swap, cap, collar, forward, future or derivative transaction or
option or similar agreement, whether exchange traded, “over-the-counter” or otherwise, involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or
pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services
provided by current or former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Swap Agreement. 

“Swingline Commitment” means the obligation of the Swingline Lender to make its Swingline Loans pursuant to
Section 2.10 in an aggregate principal amount at any one time outstanding not to exceed $50,000,000. 

“Swingline Lender” means JPMorgan, in its capacity as a lender of Swingline Loans. 

“Swingline Loans” has the meaning specified in Section 2.10. 

“Swingline Participation Amount” has the meaning specified in Section 2.10(f). 

 

 22 

 “Swingline Rate” means the “ASK” rate for over-night Federal
funds appearing on Bloomberg Page BTMM on the date the Borrower requests a Swingline Loan hereunder and on each day thereafter that such Swingline Loan is outstanding. 

“Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed
by any Governmental Authority. 
 “Termination Date” means the earlier of the Maturity Date and the date of
termination of the Commitments. 
 “Transactions” means, with respect to (a) the Borrower, the execution,
delivery and performance by the Borrower of this Agreement and each other Loan Document, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of Credit hereunder, and the grant of Liens by the Borrower on Mortgaged
Properties and other Properties pursuant to the Security Instruments, (b) each Guarantor, the execution, delivery and performance by such Guarantor of each Loan Document to which it is a party, the guaranteeing of the Indebtedness and the other
obligations under the Guaranty Agreement by such Guarantor and such Guarantor’s grant of the security interests and provision of collateral pursuant to the Security Instruments, and the grant of Liens by such Guarantor on Mortgaged Properties
and other Properties pursuant to the Security Instruments and (c) each Restricted Subsidiary, the execution, delivery and performance by such Restricted Subsidiary of each Loan Document to which it is a party, and such Restricted
Subsidiary’s grant of the security interests and provision of collateral pursuant to the Security Instruments, and the grant of Liens by such Restricted Subsidiary on Mortgaged Properties and other Properties pursuant to the Security
Instruments. 
 “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest
on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Alternate Base Rate or the Adjusted LIBO Rate. 

“Unrestricted Subsidiary” means any Subsidiary of the Borrower designated as such on Schedule 7.11 or which the
Borrower has designated in writing to the Administrative Agent to be an Unrestricted Subsidiary pursuant to Section 9.07. 

“Wholly Owned Subsidiary” means any Restricted Subsidiary of which all of the outstanding Equity Interests (other than
any directors’ qualifying shares mandated by applicable law), on a fully-diluted basis, are owned by the Borrower or one or more of the Wholly Owned Subsidiaries or are owned by the Borrower and one or more of the Wholly Owned Subsidiaries.

 Section 1.03 Types of Loans and Borrowings. For purposes of this Agreement, Loans and Borrowings, respectively,
may be classified and referred to by Type (e.g., a “Eurodollar Loan” or a “Eurodollar Borrowing”). 

Section 1.04 Terms Generally; Rules of Construction. The definitions of terms herein shall apply equally to the singular and
plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to
be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of or reference
to any 
  

 23 

 
agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications set forth in the Loan Documents), (b) any reference herein to any law shall be construed as referring to such law as amended, modified, codified or reenacted, in
whole or in part, and in effect from time to time, (c) any reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to the restrictions contained in the Loan Documents), (d) the words
“herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e) with respect to the determination of
any time period, the word “from” means “from and including” and the word “to” means “to and including” and (f) any reference herein to Articles, Sections, Annexes, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Annexes, Exhibits and Schedules to, this Agreement. No provision of this Agreement or any other Loan Document shall be interpreted or construed against any Person solely because such Person or its
legal representative drafted such provision. The amount of any basket, threshold or other amount to be calculated as of a certain date shall be the amount calculated as of such date without adjustment for any subsequent increases or decreases in
such amount after such date (including any increases resulting from the accrual of interest, if any). 
 Section 1.05
Accounting Terms and Determinations; GAAP. Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all determinations with respect to accounting matters hereunder shall be made, and all financial statements
and certificates and reports as to financial matters required to be furnished to the Administrative Agent or the Lenders hereunder shall be prepared, in accordance with GAAP, applied on a basis consistent with the Financial Statements except for
changes in which Borrower’s independent certified public accountants concur and which are disclosed to the Administrative Agent on the next date on which financial statements are required to be delivered to the Lenders pursuant to
Section 8.01(a); provided that, if (i) the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in
GAAP or in the application thereof on the operation of or calculation of compliance with such provision or (ii) the Administrative Agent notifies the Borrower that the Majority Lenders request an amendment to any provision hereof for such
purpose, regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall
have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith. 
 ARTICLE
II 
 The Credits 

Section 2.01 Commitments. Subject to the terms and conditions set forth herein, each Lender agrees to make Loans to the
Borrower during the Availability Period in an aggregate principal amount that will not result in (a) such Lender’s Revolving Credit Exposure exceeding such Lender’s Commitment or (b) the total Revolving Credit Exposures exceeding
the total Commitments. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, repay and reborrow the Loans. 

 

 24 

 Section 2.02 Loans and Borrowings. 

(a) Borrowings; Several Obligations. Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders
ratably in accordance with their respective Commitments. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments are several and no
Lender shall be responsible for any other Lender’s failure to make Loans as required. 
 (b) Types of Loans. Subject
to Section 3.03, each Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request in accordance herewith. Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign
branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement. No such designation or transfer
shall result in any liability on the part of the Borrower for increased costs or expenses resulting solely from such designation or transfer (except any such transfer which is made by a Lender pursuant to Section 5.04 or
Section 5.05, or otherwise for the purpose of complying with any Governmental Requirement). Increased costs for expenses resulting from a Change in Law occurring subsequent to any such designation or transfer shall be deemed not to
result solely from such designation or transfer. 
 (c) Minimum Amounts; Limitation on Number of Borrowings. Each
Eurodollar Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $5,000,000. Each ABR Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less than $1,000,000;
provided that an ABR Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total Commitments or that is required to finance the reimbursement of an LC Disbursement as contemplated by
Section 2.08(e). Borrowings of more than one Type may be outstanding at the same time; provided that there shall not at any time be more than a total of 10 Eurodollar Borrowings outstanding. Notwithstanding any other provision of
this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date. 

(d) Notes. If requested by a Lender, the Loans made by such Lender shall be evidenced by a single promissory note of the Borrower
in substantially the form of Exhibit A, dated, in the case of (i) any Lender party hereto as of the date of this Agreement, as of the Effective Date, (ii) any other Lender, as of the date such Lender becomes a party hereto, payable
to the order of such Lender in a principal amount equal to its Maximum Credit Amount as in effect on such date, and otherwise duly completed. In the event that any Lender’s Maximum Credit Amount increases or decreases for any reason (whether
pursuant to Section 2.06, Section 2.09, Section 12.04(b) or otherwise) and at such Lender’s request, the Borrower shall deliver or cause to be delivered on the effective date of such increase or decrease, a
new Note payable to the order of such Lender in a principal amount equal to its Maximum Credit Amount after giving effect to such increase or decrease, and otherwise duly completed. The date, amount, Type, interest rate and, if applicable, Interest
Period of each Loan made by each Lender, and all payments made on account of the principal thereof, shall be recorded by such Lender on its books for its Note, and, prior to any transfer, may be endorsed by such Lender on a schedule attached to such
Note or any continuation thereof or on any separate record maintained by such 
  

 25 

 
Lender. Failure to make any such notation or to attach a schedule shall not affect any Lender’s or the Borrower’s rights or obligations in respect of such Loans or affect the validity
of such transfer by any Lender of its Note. 
 (e) It is the intent of the parties hereto that this Agreement not constitute a
novation of the obligations and liabilities existing under the Existing Credit Agreement or evidence repayment of any such obligations and liabilities and that this Agreement amend and restate in its entirety the Existing Credit Agreement and
re-evidence the obligations of the Borrower outstanding thereunder. 
 Section 2.03 Requests for Borrowings. To
request a Borrowing other than a Swingline Loan, the Borrower shall notify the Administrative Agent of such request by telephone (a) in the case of a Eurodollar Borrowing, not later than 12:00 noon, New York City time, three Business Days
before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 12:00 noon, New York City time, on the date of the proposed Borrowing; provided that no such notice shall be required for any deemed request
of an ABR Borrowing to finance the reimbursement of an LC Disbursement as provided in Section 2.08(e). Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Borrowing Request in a form approved by the Administrative Agent and signed by the Borrower. Each such telephonic and written Borrowing Request shall specify the following information in compliance with
Section 2.02: 
 (i) the aggregate amount of the requested Borrowing; 

(ii) the date of such Borrowing, which shall be a Business Day; 

(iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; 

(iv) in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period
contemplated by the definition of the term “Interest Period”; and 
 (v) the location and number of the
Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of Section 2.05. 
 If no
election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar Borrowing, then the Borrower shall be deemed to have selected an
Interest Period of one month’s duration. 
 Promptly following receipt of a Borrowing Request in accordance with this
Section 2.03, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing. 

 

 26 

 Section 2.04 Interest Elections. 

(a) Conversion and Continuance. Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and,
in the case of a Eurodollar Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a
Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this Section 2.04. The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall
be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. No such conversion or continuation shall be deemed the making of a new Borrowing
for purposes of this Agreement, including without limitation Article VI. 
 (b) Interest Election Requests. To
make an election pursuant to this Section 2.04, the Borrower shall notify the Administrative Agent of such election by telephone by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were
requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election. Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to
the Administrative Agent of a written Interest Election Request in a form approved by the Administrative Agent and signed by the Borrower. 

(c) Information in Interest Election Requests. Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.02: 
 (i) the Borrowing to which such Interest Election
Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to
Section 2.04(c)(iii) and (iv) shall be specified for each resulting Borrowing); 
 (ii)
the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day; 

(iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and 

(iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving
effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”. 
 If
any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration. 

 

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 (d) Notice to Lenders by the Administrative Agent. Promptly following receipt of an
Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing. 

(e) Effect of Failure to Deliver Timely Interest Election Request and Events of Default on Interest Election. If the Borrower
fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such
Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing: (i) no outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing (and
any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective) and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR
Borrowing at the end of the Interest Period applicable thereto. 
 Section 2.05 Funding of Borrowings. 

(a) Funding by Lenders. Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer
of immediately available funds by 1:00 p.m., New York City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders; provided that Swingline Loans shall be made as provided in
Section 2.10. The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with the Administrative Agent in Houston, Texas
and designated by the Borrower in the applicable Borrowing Request; provided that ABR Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.08(e) shall be remitted by the Administrative Agent to
the Issuing Bank that made such LC Disbursement. Nothing herein shall be deemed to obligate any Lender to obtain the funds for its Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will
obtain the funds for its Loan in any particular place or manner. 
 (b) Presumption of Funding by the Lenders. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may
assume that such Lender has made such share available on such date in accordance with Section 2.05(a) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in
fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest
thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to ABR Loans. If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing. 
  

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 Section 2.06 Termination and Reduction of Aggregate Maximum Credit Amounts.

 (a) Scheduled Termination of Commitments. Unless previously terminated, the Commitments shall terminate on the
Maturity Date. If at any time the Aggregate Maximum Credit Amounts or the Borrowing Base is terminated or reduced to zero, then the Commitments shall terminate on the effective date of such termination or reduction. 

(b) Optional Termination and Reduction of Aggregate Credit Amounts. 

(i) The Borrower may at any time terminate, or from time to time reduce, the Aggregate Maximum Credit Amounts;
provided that (A) each reduction of the Aggregate Maximum Credit Amounts shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (B) the Borrower shall not terminate or reduce the Aggregate
Maximum Credit Amounts if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 3.04(c), the total Revolving Credit Exposures would exceed the total Commitments. 

(ii) The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Aggregate Maximum
Credit Amounts under Section 2.06(b)(i) at least three Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the
Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section 2.06(b)(ii) shall be irrevocable. Any termination or reduction of the Aggregate Maximum Credit Amounts
shall be permanent and may not be reinstated. Each reduction of the Aggregate Maximum Credit Amounts shall be made ratably among the Lenders in accordance with each Lender’s Applicable Percentage. 

Section 2.07 Borrowing Base. 

(a) Initial Borrowing Base. For the period from and including the Effective Date to but excluding the next Redetermination Date,
the amount of the Borrowing Base shall be $1,600,000,000. Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments from time to time, whether before or after such Redetermination Date, pursuant to
Section 9.02(a)(ix) or Section 9.12(d). 
 (b) Scheduled and Interim Redeterminations. Subject to
Section 2.07(d), the Borrowing Base shall be redetermined (a “Scheduled Redetermination”) on or before May 1st of each year, commencing in 2011. In addition, the Borrower may, by notifying the Administrative Agent
thereof, and the Administrative Agent may, at the direction of the Super-majority Lenders, by notifying the Borrower thereof, each elect to cause the Borrowing Base to be redetermined one time between Scheduled Redeterminations (an “Interim
Redetermination”) in accordance with this Section 2.07. 
 (c) Scheduled and Interim Redetermination
Procedure. 
 (i) Each Scheduled Redetermination and each Interim Redetermination shall be effectuated as
follows: Upon receipt by the Administrative Agent of (A) the Reserve 
  

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Report and the certificate required to be delivered by the Borrower to the Administrative Agent, in the case of a Scheduled Redetermination, pursuant to Section 8.11(a), and, in the
case of an Interim Redetermination, pursuant to Section 8.11(b), and (B) such other reports, data and supplemental information as may, from time to time, be reasonably requested by the Majority Lenders (the Reserve Report, such
certificate and such other reports, data and supplemental information being the “Engineering Reports”), the Administrative Agent shall evaluate the information contained in the Engineering Reports and shall, in good faith, propose a
new Borrowing Base (the “Proposed Borrowing Base”) based upon such information and such other information (including, without limitation, the status of title information with respect to the Oil and Gas Properties as described in the
Engineering Reports and the existence of any other Debt) as the Administrative Agent deems appropriate and consistent with its normal oil and gas lending criteria as it exists at the particular time. 

(ii) The Administrative Agent shall notify the Borrower and the Lenders of the Proposed Borrowing Base (the
“Proposed Borrowing Base Notice”): 
 (A) in the case of a Scheduled Redetermination (1) if
the Administrative Agent shall have received the Engineering Reports required to be delivered by the Borrower pursuant to Section 8.11(a) in a timely and complete manner, then on or before the earlier of (x) fifteen days after the
receipt of such Engineering Reports and (y) April 15th of such year following the date of delivery or (2) if the Administrative Agent shall not have received the Engineering Reports required to be delivered by the Borrower pursuant to
Section 8.11(a) in a timely and complete manner, then promptly after the Administrative Agent has received complete Engineering Reports from the Borrower and has had a reasonable opportunity to determine the Proposed Borrowing Base in
accordance with Section 2.07(c)(i); and 
 (B) in the case of an Interim Redetermination, promptly,
and in any event, within 15 days after the Administrative Agent has received the required Engineering Reports. 

(iii) Any Proposed Borrowing Base that would increase the Borrowing Base then in effect must be approved or deemed to have
been approved by the Required Lenders as provided in this Section 2.07(c)(iii); and any Proposed Borrowing Base that would decrease or maintain the Borrowing Base then in effect must be approved or be deemed to have been approved by the
Super-majority Lenders as provided in this Section 2.07(c)(iii). Upon receipt of the Proposed Borrowing Base Notice, each Lender shall have 15 days to agree with the Proposed Borrowing Base or disagree with the Proposed Borrowing Base by
proposing an alternate Borrowing Base. If, at the end of such 15 days, any Lender has not communicated its approval or disapproval in writing to the Administrative Agent, such silence shall be deemed to be an approval of the Proposed Borrowing Base.
If, at the end of such 15-day period, the Required Lenders, in the case of a Proposed Borrowing Base that would increase the Borrowing Base then in effect, or the Super-majority Lenders, in the case of a Proposed Borrowing Base that would decrease
or maintain the Borrowing Base then in effect, have approved or deemed to 
  

 30 

 
have approved, as aforesaid, then the Proposed Borrowing Base shall become the new Borrowing Base effective on the date specified in Section 2.07(d). If, however, at the end of such
15-day period, the Required Lenders or the Super-majority Lenders, as applicable, have not approved or deemed to have approved, as aforesaid, then the Administrative Agent shall poll the Lenders to ascertain the highest Borrowing Base then
acceptable to a number of Lenders sufficient to constitute the Required Lenders or the Super-majority Lenders, as applicable, and such amount shall become the new Borrowing Base, effective on the date specified in Section 2.07(d).

 (d) Effectiveness of a Redetermined Borrowing Base. After a redetermined Borrowing Base is approved or is deemed to
have been approved by the Required Lenders or the Super-majority Lenders, as applicable, pursuant to Section 2.07(c)(iii), the Administrative Agent shall notify the Borrower and the Lenders of the amount of the redetermined Borrowing
Base (the “New Borrowing Base Notice”), and such amounts shall become the new Borrowing Base, effective and applicable to the Borrower, the Agents, each Issuing Bank and the Lenders: 

(i) in the case of a Scheduled Redetermination, (A) if the Administrative Agent shall have received the Engineering
Reports required to be delivered by the Borrower pursuant to Section 8.11(a) in a timely and complete manner, then on the earlier of (x) the date of such New Borrowing Base Notice, if such notice is dated before May 1st, and
(y) May 1st following such notice, or (B) if the Administrative Agent shall not have received the Engineering Reports required to be delivered by the Borrower pursuant to Section 8.11(a) in a timely and complete manner,
then on the Business Day next succeeding delivery of such notice; and 
 (ii) in the case of an Interim
Redetermination, on the Business Day next succeeding delivery of such notice. 
 Such amounts shall then become the Borrowing Base until the
next Scheduled Redetermination Date, the next Interim Redetermination Date or the next adjustment to the Borrowing Base under Section 9.02(a)(ix) or Section 9.12(d), whichever occurs first. Notwithstanding the foregoing, no
Scheduled Redetermination or Interim Redetermination shall become effective until the New Borrowing Base Notice related thereto is received by the Borrower. 

Section 2.08 Letters of Credit. 

(a) General. Subject to the terms and conditions set forth herein, the Borrower may request any Issuing Bank to issue dollar
denominated Letters of Credit for its own account or for the account of any of its Restricted Subsidiaries, in a form reasonably acceptable to the Administrative Agent and such Issuing Bank, at any time and from time to time during the Availability
Period; provided, however, that (i) no Letter of Credit shall be issued if, after such issuance, the LC Exposure would exceed the lesser of (A) the LC Commitment and (B) an amount equal to the aggregate Commitments minus
the aggregate Revolving Credit Exposure and (ii) the Borrower shall not request the issuance of a Letter of Credit to support a Swap Agreement permitted under Section 9.17 if such issuance would cause the aggregate face amount of
all Letters of Credit securing such Swap Agreements to exceed $50,000,000. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and 

 

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conditions of any form of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, an Issuing Bank relating to any Letter of Credit, the
terms and conditions of this Agreement shall control. 
 (b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for
doing so have been approved by the Issuing Bank) to any Issuing Bank and the Administrative Agent (not less than three Business Days in advance of the requested date of issuance, amendment, renewal or extension) a notice: 

(i) requesting the issuance of a Letter of Credit or identifying the Letter of Credit issued by such Issuing Bank to be
amended, renewed or extended; 
 (ii) specifying the date of issuance, amendment, renewal or extension (which
shall be a Business Day); 
 (iii) specifying the date on which such Letter of Credit is to expire (which shall
comply with Section 2.08(c)); 
 (iv) specifying the amount of such Letter of Credit; and 

(v) specifying the name and address of the beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit. 
 If requested by any Issuing Bank, the Borrower also shall submit a letter of credit
application on such Issuing Bank’s standard form in connection with any request for a Letter of Credit. 
 (c)
Expiration Date. Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension
thereof, one year after such renewal or extension) and (ii) the date that is five Business Days prior to the Maturity Date; provided, however, that any Letter of Credit with a one-year tenor may provide for the renewal thereof for
additional one-year periods (which shall in no event extend beyond the date referred to in clause (ii) above). 
 (d)
Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the Issuing Bank that issues such Letter of Credit or the Lenders, each
Issuing Bank that issues a Letter of Credit hereunder hereby grants to each Lender, and each Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate
amount available to be drawn under such Letter of Credit. In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of any Issuing Bank that
issues a Letter of Credit hereunder, such Lender’s Applicable Percentage of each LC Disbursement made by such Issuing Bank and not reimbursed by the Borrower on the date due as provided in Section 2.08(e), or of any reimbursement
payment required to be refunded to the 
  

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Borrower for any reason. Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this Section 2.08(d) in respect of Letters of Credit is absolute
and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments, and that
each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. 
 (e) Reimbursement.
If any Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit issued by such Issuing Bank, the Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not
later than 12:00 noon, New York City time, on the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC Disbursement prior to 10:00 a.m., New York City time, on such date, or, if such notice has not been
received by the Borrower prior to such time on such date, then not later than 12:00 noon, New York City time, on (i) the Business Day that the Borrower receives such notice, if such notice is received prior to 10:00 a.m., New York City time, on
the day of receipt, or (ii) the Business Day immediately following the day that the Borrower receives such notice, if such notice is not received prior to such time on the day of receipt; provided that if such LC Disbursement is equal to
or greater than $1,000,000, the Borrower shall, subject to the conditions to Borrowing set forth herein, be deemed to have requested, and the Borrower does hereby request under such circumstances, that such LC Disbursement be financed with an ABR
Borrowing or Swingline Loan in an equivalent amount and, to the extent so financed, the Borrower’s obligation to make such payment shall be discharged and replaced by the resulting ABR Borrowing or Swingline Loan. For purposes of the first
sentence of Section 2.01, the amount of the ABR Borrowing shall be considered, but the amount of the LC Disbursement to be concurrently reimbursed shall not be considered. If the Borrower fails to make such payment when due, the
Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof and such Lender’s Applicable Percentage thereof. Promptly following receipt of such notice, each Lender
shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the Borrower, in the same manner as provided in Section 2.05 with respect to Loans made by such Lender (and Section 2.05 shall
apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank that issued such Letter of Credit the amounts so received by it from the Lenders. Promptly following
receipt by the Administrative Agent of any payment from the Borrower pursuant to this Section 2.08(e), the Administrative Agent shall distribute such payment to the Issuing Bank that issued such Letter of Credit or, to the extent that
Lenders have made payments pursuant to this Section 2.08(e) to reimburse such Issuing Bank, then to such Lenders and such Issuing Bank as their interests may appear. Any payment made by a Lender pursuant to this
Section 2.08(e) to reimburse an Issuing Bank for any LC Disbursement (other than the funding of ABR Loans or a Swingline Loan as contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its obligation to
reimburse such LC Disbursement. 
 (f) Obligations Absolute. The Borrower’s obligation to reimburse LC Disbursements
as provided in Section 2.08(e) shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any
lack of validity or enforceability of any Letter of Credit, any Letter of Credit Agreement or this Agreement, or any term or provision 

 

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therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in
any respect, (iii) payment by any Issuing Bank under a Letter of Credit issued by such Issuing Bank against presentation of a draft or other document that does not comply with the terms of such Letter of Credit or any Letter of Credit
Agreement, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section 2.08(f), constitute a legal or equitable discharge of, or provide a
right of setoff against, the Borrower’s obligations hereunder. Neither the Administrative Agent, the Lenders nor any Issuing Bank, nor any of their Related Parties shall have any liability or responsibility by reason of or in connection with
the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising
from causes beyond the control of any Issuing Bank; provided that the foregoing shall not be construed to excuse any Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages, claims
in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by such Issuing Bank’s failure to exercise care when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of any Issuing Bank (as finally determined by a court of competent
jurisdiction), such Issuing Bank shall be deemed to have exercised all requisite care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents
presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank that issued such Letter of Credit may, in its sole discretion, either accept and make payment upon such documents without
responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

 (g) Disbursement Procedures. Each Issuing Bank shall, promptly following its receipt thereof, examine all documents
purporting to represent a demand for payment under a Letter of Credit issued by such Issuing Bank. Such Issuing Bank shall promptly notify the Administrative Agent and the Borrower by telephone (confirmed by telecopy) of such demand for payment and
whether such Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse such Issuing Bank and the Lenders
with respect to any such LC Disbursement. 
 (h) Interim Interest. If any Issuing Bank shall make any LC Disbursement,
then, until the Borrower shall have reimbursed such Issuing Bank for such LC Disbursement (either with its own funds or a Borrowing under Section 2.08(e)), the unpaid amount thereof shall bear interest, for each day from and including
the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum then applicable to ABR Loans. Interest accrued pursuant to this Section 2.08(h) shall be for the
account of such Issuing Bank, except that interest accrued on and after the date of payment by any Lender pursuant to Section 2.08(e) to reimburse such Issuing Bank shall be for the account of such Lender to the extent of such payment.

  

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 (i) Replacement of an Issuing Bank. Any Issuing Bank may be replaced or resign at any
time by written agreement among the Borrower, the Administrative Agent, such retiring or replaced Issuing Bank and, in the case of a replacement, the successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such resignation
or replacement of an Issuing Bank. At the time any such resignation or replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the retiring or replaced Issuing Bank pursuant to
Section 3.05(b). In the case of the replacement of an Issuing Bank, from and after the effective date of such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the replaced Issuing Bank under
this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous
Issuing Banks, as the context shall require. After the resignation or replacement of an Issuing Bank hereunder, the retiring or replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing
Bank under this Agreement with respect to Letters of Credit issued by it prior to such resignation or replacement, but shall not be required to issue additional Letters of Credit. 

(j) Cash Collateralization. If (i) any Event of Default shall occur and be continuing and the Borrower receives notice from
the Administrative Agent or the Majority Lenders demanding the deposit of cash collateral pursuant to this Section 2.08(j), or (ii) the Borrower is required to pay to the Administrative Agent the excess attributable to an LC
Exposure in connection with any prepayment pursuant to Section 3.04(c), then the Borrower shall deposit, in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders, an amount
in cash equal to, in the case of an Event of Default, the LC Exposure, and in the case of a payment required by Section 3.04(c), the amount of such excess as provided in Section 3.04(c), as of such date plus any accrued and
unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the
occurrence of any Event of Default with respect to the Borrower or any Restricted Subsidiary described in Section 10.01(h) or Section 10.01(i). The Borrower hereby grants to the Administrative Agent, for the benefit of each
Issuing Bank and the Lenders, an exclusive first priority and continuing perfected security interest in and Lien on such account and all cash, checks, drafts, certificates and instruments, if any, from time to time deposited or held in such account,
all deposits or wire transfers made thereto, any and all investments purchased with funds deposited in such account, all interest, dividends, cash, instruments, financial assets and other Property from time to time received, receivable or otherwise
payable in respect of, or in exchange for, any or all of the foregoing, and all proceeds, products, accessions, rents, profits, income and benefits therefrom, and any substitutions and replacements therefor. The Borrower’s obligation to deposit
amounts pursuant to this Section 2.08(j) shall be absolute and unconditional, without regard to whether any beneficiary of any such Letter of Credit has attempted to draw down all or a portion of such amount under the terms of a Letter
of Credit, and, to the fullest extent permitted by applicable law, shall not be subject to any defense or be affected by a right of set-off, counterclaim or recoupment which the Borrower or any of its Subsidiaries may now or hereafter have against
any such beneficiary, any Issuing Bank, the 
  

 35 

 
Administrative Agent, the Lenders or any other Person for any reason whatsoever. Such deposit shall be held as collateral securing the payment and performance of the Borrower’s and the
Guarantor’s obligations under this Agreement and the other Loan Documents. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. Other than any interest earned on the
investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Borrower’s risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such
investments shall accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to reimburse, on a pro rata basis, each Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the
extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated, be applied to satisfy other obligations of the
Borrower and the Guarantors under this Agreement or the other Loan Documents. In the event of any such payment by the Borrower of amounts contingently owing under outstanding Letters of Credit and in the event that thereafter drafts or other demands
for payment complying with the terms of such Letters of Credit are not made on or prior to the respective expiration dates thereof, the Administrative Agent agrees, if no Event of Default is then continuing or if no other amounts are then
outstanding under this Agreement, the Notes or the Loan Documents, to remit to the Borrower amounts for which the contingent obligations evidenced by the Letters of Credit have ceased. If the Borrower is required to provide an amount of cash
collateral hereunder as a result of the occurrence of an Event of Default, and the Borrower is not otherwise required to pay to the Administrative Agent the excess attributable to an LC Exposure in connection with any prepayment pursuant to
Section 3.04(c), then such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three Business Days after all Events of Default have been cured or waived. 

Section 2.09 Increase in the Revolving Loan Maximum Credit Amounts. 

(a) The Borrower may on no more than five occasions during the period beginning on the Effective Date to and including the date that is
six months prior to the Maturity Date, by written notice to the Administrative Agent executed by the Borrower and one or more financial institutions (any such financial institution executing such notice being called an “Increasing
Lender”), which may include any Lender, cause the Maximum Credit Amounts to be extended by the Increasing Lenders if such Increasing Lender is not already a Lender (or cause the Maximum Credit Amounts of the Increasing Lenders that are
already Lenders to be increased, as the case may be) in an amount for each Increasing Lender set forth in such notice; provided, that (i) each extension of new Maximum Credit Amounts or increase in existing Maximum Credit Amounts
pursuant to this paragraph shall result in the aggregate Maximum Credit Amounts being increased by no less than $25,000,000, (ii) the sum of all new Maximum Credit Amounts and increases in existing Maximum Credit Amounts pursuant to this
paragraph shall not exceed $600,000,000 without the approval of all Lenders, (iii) each Increasing Lender shall be subject to the approval of the Administrative Agent (which approval shall not be unreasonably withheld or delayed),
(iv) each Increasing Lender, if not already a Lender hereunder, shall become a party to this Agreement by completing and delivering to the Administrative Agent a duly executed joinder agreement in a form reasonably satisfactory to the
Administrative Agent and the Borrower (a “Joinder Agreement”), (v) any Lender requested by the Borrower to become an Increasing Lender may elect, or decline, such request in its sole discretion, (vi) since December 31,

  

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2009, no event has occurred that has had or could reasonably be expected to have a Material Adverse Effect, and (vii) no Default or Event of Default has occurred and is continuing. New
Maximum Credit Amounts and increases in Maximum Credit Amounts shall become effective on the date specified in the applicable notices delivered pursuant to this paragraph. 

(b) Upon the effectiveness of any Joinder Agreement to which any Increasing Lender is a party, (i) such Increasing Lender shall
thereafter be deemed to be a party to this Agreement and shall be entitled to all rights, benefits and privileges accorded a Lender hereunder and subject to all obligations of a Lender hereunder and (ii) Annex I shall be deemed to have been
amended to reflect the Maximum Credit Amount of such Increasing Lender as provided in such Joinder Agreement. Upon the effectiveness of any increase pursuant to this Section 2.09 in the Maximum Credit Amount of a Lender already a party
hereto, Annex I shall be deemed to have been amended to reflect the increased Maximum Credit Amount of such Lender. Notwithstanding the foregoing, no increase in the Aggregate Maximum Credit Amounts (or in the Maximum Credit Amount of any Lender)
shall become effective under this Section unless, on the date of such increase, the Administrative Agent shall have received (i) a certificate, dated as of the effective date of such increase and executed by a Financial Officer of the Borrower,
to the effect that the conditions set forth in paragraphs (a), (b), (c), (d) and (e) of Section 6.02 shall be satisfied (with all references in such paragraphs to a Borrowing being deemed to be references to such increase and
attaching resolutions of the Borrower approving such increase) and (ii) if requested by the Administrative Agent, a legal opinion in form and substance reasonably satisfactory to the Administrative Agent. 

(c) The Borrowers shall prepay any Loans outstanding prior to the effectiveness of such increase or extension, together with any amounts
due pursuant to Section 5.02, with new Loans made pursuant to Section 2.01 ratably in accordance with the Maximum Credit Amounts in effect following such extension or increase. 

Section 2.10 Swingline Loans. 

(a) Subject to the terms and conditions hereof, the Swingline Lender agrees to make a portion of the credit otherwise available to the
Borrower under the Commitments from time to time until the Termination Date by making swing line loans (“Swingline Loans”) to the Borrower; provided that (i) the aggregate outstanding principal amount of Swingline Loans
owed to the Swingline Lender at any time shall not exceed its Swingline Commitment then in effect (notwithstanding that the outstanding Swingline Loans owed to the Swingline Lender at any time, when aggregated with the Swingline Lender’s other
outstanding Loans, may exceed its Commitment then in effect) and (ii) the Borrower shall not request, and the Swingline Lender shall not make, any Swingline Loan if, after giving effect to the making of such Swingline Loan, the aggregate amount
(without duplication) of the Loans, the Swingline Loans and the L/C Exposure would exceed the aggregate Commitments. Prior to the Termination Date, the Borrower may use the Swingline Commitment by borrowing, repaying (in whole or part) and
reborrowing, all in accordance with the terms and conditions hereof. 
 (b) The Borrower shall repay to the Swingline Lender the
then unpaid principal amount of each Swingline Loan made by the Swingline Lender on or before the earlier of (i) the Termination Date and (ii) the 15th Business Day after such Swingline Loan is made; provided

  

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that on each date that a Loan is borrowed pursuant to Section 2.01, the Borrower shall repay all Swingline Loans then outstanding. The unpaid principal amount of each Swingline Loan
shall bear interest at the per annum rate equal to the Swingline Rate in effect from time to time plus the Applicable Margin for Eurodollar Loans. 

(c) The obligation of the Swingline Lender to make Swingline Loans to the Borrower is subject to the same conditions precedent for the
making of Loans under Section 6.02. 
 (d) Whenever the Borrower desires that the Swingline Lender make Swingline
Loans it shall give irrevocable telephonic notice to JPMorgan, as Administrative Agent and the Swingline Lender, confirmed promptly in writing (which telephonic notice must be received by the Swingline Lender not later than 2:30 p.m., New York City
time, on the proposed date Swingline Loans are requested to be made), specifying (i) the amount to be borrowed and (ii) the requested date such Swingline Loans are to be advanced (which shall be a Business Day). Each borrowing under the
Swingline Commitment shall be in an amount equal to $1,000,000 or a whole multiple of $100,000 in excess thereof. As soon as such funds are available, but in any event not later than 3:00 p.m., New York City time, on the date such Swingline Loans
are requested to be advanced pursuant to the Borrower’s corresponding written request referenced above, the Swingline Lender shall make available to the Administrative Agent at the office designated by the Administrative Agent for such purpose
an amount in immediately available funds equal to the amount of the Swingline Loans to be made by the Swingline Lender. The Administrative Agent shall make the proceeds of such Swingline Loan available to the Borrower at such office in immediately
available funds as soon as such funds are available, but in any event not later than 3:00 p.m., New York City time, on the date such Swingline Loans are requested to be advanced pursuant to the Borrower’s corresponding written request.

 (e) The Swingline Lender, at any time and from time to time in its sole and absolute discretion may, on behalf of the
Borrower (which hereby irrevocably authorizes the Swingline Lender to so act on its behalf), on one Business Day’s prior notice to the Administrative Agent and each Lender, with copy to the Borrower, given by the Swingline Lender no later than
12:00 Noon, New York City time, request each Lender to make, and each Lender hereby agrees to make, a Loan, in an amount equal to such Lender’s Applicable Percentage of the aggregate amount of the Swingline Lender’s Swingline Loans (the
“Refunded Swingline Loans”) outstanding on the date of such notice, to repay the Swingline Lender. Each Lender shall make the amount of such Loan available to the Administrative Agent at such office in immediately available funds,
not later than 10:00 a.m., New York City time, one Business Day after the date of such notice. The proceeds of such Loans shall be immediately made available by the Administrative Agent to the Swingline Lender for application by it to the repayment
of the Refunded Swingline Loans. 
 (f) If prior to the time a Refunded Swingline Loan would have otherwise been made pursuant
to Section 2.10(e), one of the events described in Section 10.01(h) or Section 10.01(i) shall have occurred and be continuing with respect to the Borrower or any Material Domestic Restricted Subsidiary or if for
any other reason, as determined by the Swingline Lender in its sole discretion, Loans may not be made as contemplated by Section 2.10(e), each Lender shall, on the date such Loan was to have been made pursuant to the notice referred to
in Section 2.10(e), purchase for cash an undivided participating interest in the then outstanding 
  

 38 

 
Swingline Loans by paying to the Swingline Lender an amount (the “Swingline Participation Amount”) equal to (i) such Lender’s Applicable Percentage times (ii) the
sum of the aggregate principal amount of Swingline Loans then outstanding to the Swingline Lender that were to have been repaid with such Loans. 

(g) Whenever, at any time after the Swingline Lender has received from any Lender such Lender’s Swingline Participation Amount, the
Swingline Lender receives any payment on account of outstanding Swingline Loans, the Swingline Lender will distribute to such Lender its Swingline Participation Amount (appropriately adjusted, in the case of interest payments, to reflect the period
of time during which such Lender’s participating interest was outstanding and funded and, in the case of principal and interest payments, to reflect such Lender’s pro rata portion of such payment if such payment is not sufficient to pay
the principal of and interest on all Swingline Loans then due); provided, however, that in the event that such payment received by the Swingline Lender is required to be returned, such Lender will return to the Swingline Lender any
portion thereof previously distributed to it by the Swingline Lender. 
 (h) Each Lender’s obligation to make the Loans
referred to in Section 2.10(e) and to purchase participating interests pursuant to Section 2.10(f) shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any setoff,
counterclaim, recoupment, defense or other right that such Lender or the Borrower may have against the Swingline Lender, the Borrower or any other Person for any reason whatsoever, (ii) the occurrence or continuance of an Event of Default or
the failure to satisfy any of the other conditions specified in Section 6.02, (iii) any adverse change in the condition (financial or otherwise) of the Borrower, (iv) any breach of this Agreement or any other Loan Document by
the Borrower, any Guarantor or any other Lender or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. 

Section 2.11 Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a
Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender: 
 (a)
Commitment fees will cease to accrue on the unfunded portion of the Revolving Loan Commitment of the Defaulting Lender pursuant to Section 3.05(a) and such Defaulting Lender shall not be entitled to receive any commitment fee pursuant to
Section 3.05(a); 
 (b) The Commitment and Revolving Credit Exposure of the Defaulting Lender will not be included
in determining whether all Lenders, the Required Lenders or the Super-majority Lenders have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant to Section 12.02), except that any waiver, amendment
or modification requiring the consent of all Lenders or each affected Lender which affects the Defaulting Lender differently than other affected Lenders will require the consent of the Defaulting Lender; 

(c) If any Swingline Loans are outstanding or any LC Exposure exists at the time a Lender is a Defaulting Lender then solely for purposes
of computing the amount of the obligation of each non-Defaulting Lender to acquire, refinance or fund participations in Swingline Loans and Letters of Credit pursuant to Sections 2.08 and 2.10, 

 

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 (i) all or any part of the Swingline Participation Amount and LC Exposure of
such Defaulting Lender shall be reallocated among the non-Defaulting Lenders in accordance with their respective Applicable Percentages but only to the extent that (x) the sum of all non-Defaulting Lenders’ Revolving Credit Exposures
plus such Defaulting Lender’s Swingline Participation Amount and LC Exposure does not exceed the total of all non-Defaulting Lenders’ Commitments and (y) each non-Defaulting Lender’s total Revolving Credit Exposure may not
in any event exceed the Commitment of such Non-Defaulting Lender as in effect at the time of such reallocation; 

(ii) if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrower shall
within five Business Days following notice by the Administrative Agent given no later than 12:00 Noon, New York City time (x) first, prepay the Swingline Participation Amount of the Defaulting Lender to the Swingline Lender and (y) second,
cash collateralize such Defaulting Lender’s LC Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth in Section 2.08(j) for so long as such LC
Exposure is outstanding; 
 (iii) if the Company cash collateralizes any portion of such Defaulting Lender’s
LC Exposure pursuant to this Section 2.11(c), the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 3.05(b) with respect to such Defaulting Lender’s LC Exposure during the
period such Defaulting Lender’s LC Exposure is cash collateralized; if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to this Section 2.11, then the fees payable to the Lenders pursuant to
Section 3.05(a) and Section 3.05(b) shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages with the balance of such fee, if any, being retained by the Borrower for its own account or, to
the extent any LC Exposure shall then be outstanding, being payable to the Issuing Bank for its own account to the extent such fee relates to the amount of such LC Exposure; or 

(iv) if any Defaulting Lender’s LC Exposure is neither cash collateralized nor reallocated pursuant to this
Section 2.11, then, without prejudice to any rights or remedies of any Issuing Bank or any Lender hereunder, all commitment fees that otherwise would have been payable to such Defaulting Lender (solely with respect to the portion of such
Defaulting Lender’s Commitment that was utilized by such LC Exposure) and letter of credit fees payable under Section 3.05(b) with respect to such Defaulting Lender’s LC Exposure shall be payable to the Issuing Bank until such
LC Exposure is cash collateralized and/or reallocated. 
 (d) So long as any Lender is a Defaulting Lender, the Swingline Lender
shall not be required to fund any Swingline Loan and the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit unless it is satisfied that the related exposure will be 100% covered by the Commitments of the
non-Defaulting Lenders and/or cash collateral will be provided by the Borrower, and participating interests in any such newly issued or increased Letter of Credit or newly made Swingline Loan shall be allocated among non-Defaulting Lenders in a
manner consistent with Section 2.11(b)(i) (and Defaulting Lenders shall not participate therein). 
  

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 (e) Any amount payable to such Defaulting Lender hereunder (whether on account of principal,
interest, fees or otherwise and including any amount that would otherwise be payable to such Defaulting Lender pursuant to Section 4.01(c) but excluding Section 5.04(b)) will, in lieu of being distributed to such Defaulting
Lender, be retained by the Administrative Agent in a segregated account and, subject to any applicable requirements of law, be applied at such time or times as may be determined by the Administrative Agent (i) first, to the payment of any
amounts owing by such Defaulting Lender to the Administrative Agent hereunder, (ii) second, pro rata, to the payment of any amounts owing by such Defaulting Lender to each Issuing Bank and the Swingline Lender hereunder, (iii) third, to
the funding of any Loan or the funding or cash collateralization of any participating interest in any Swingline Loan or Letter of Credit in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement,
as determined by the Administrative Agent, (iv) fourth, if so determined by the Administrative Agent and the Borrower, held in an interest bearing account as cash collateral for future funding obligations of the Defaulting Lender under this
Agreement, (v) fifth, pro rata, to the payment of any amounts then owing to the Borrower or the Lenders as a result of any judgment of a court of competent jurisdiction obtained by the Borrower or any Lender against such Defaulting Lender as a
result of such Defaulting Lender’s breach of its obligations under this Agreement and (vi) sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if such payment is (x) a
prepayment of the principal amount of any Loans or reimbursement obligations in respect of LC Disbursement or Swingline Participation Amount that a Defaulting Lender has not fully funded its participation obligations and (y) in the case of such
Loans, such Loans were made at a time when the conditions set forth in Section 6.02 were satisfied or waived, such payment will be applied solely to prepay the Loans of, and reimbursement obligations owed to, all non-Defaulting Lenders pro rata
prior to being applied to the prepayment of any Loans, or reimbursement obligations owed to, any Defaulting Lender. Any payments, prepayments or other amounts paid or payable to any Defaulting Lender that are applied (or held) to pay amounts owed by
such Defaulting Lender or to post cash collateral pursuant to Section 2.11 shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents to the foregoing. 

(f) If any Lender is a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to be replaced in accordance with Section 5.04(b). 
 (g) The Borrower may
terminate the unused amount of the Commitment of that Defaulting Lender upon not less than three Business Days’ prior notice to the Administrative Agent (which will promptly notify the Lenders thereof), provided, that such termination
will not be deemed to be a waiver or release of any claim that the Borrower, the Administrative Agent, any Issuing Bank, the Swingline Lender, or any Lender may have against such Defaulting Lender. 

(h) In the event that the Administrative Agent, the Borrower, the Issuing Banks and the Swingline Lender each agrees that a Defaulting
Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Swingline Participation Amounts and LC Exposure of the Lenders shall be readjusted to reflect the inclusion of such Defaulting Lender’s
Commitment and on such date such Defaulting Lender shall purchase at par such of the Loans of the other Lenders (other than Swingline Loans) as the Administrative Agent shall 

 

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determine may be necessary in order for such Lender to hold such Loans in accordance with its Applicable Percentage; provided, that no adjustments will be made retroactively with respect
to fees accrued or payments made by or on behalf of the Borrower while such Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from
Defaulting Lender to Lender will constitute a waiver or release of any claim that the Borrower, the Administrative Agent, the Issuing Banks, the Swingline Lender, or any other Lender may have against such Defaulting Lender or cause such Defaulting
Lender to be a non-Defaulting Lender except as expressly set forth above. 
 ARTICLE III 

Payments of Principal and Interest; Prepayments; Fees 

Section 3.01 Repayment of Loans. The Borrower hereby unconditionally promises to pay (i) to the Administrative Agent for
the account of each Lender the then unpaid principal amount of each Loan on the Termination Date and (ii) the Swingline Lender the unpaid principal amount of each Swingline Loan in accordance with Section 2.10(b). 

Section 3.02 Interest. 

(a) ABR Loans. The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Margin,
but in no event to exceed the Highest Lawful Rate. 
 (b) Eurodollar Loans. The Loans comprising each Eurodollar
Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate. 

(c) Default Rate. Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by
the Borrower or any Guarantor hereunder or under any other Loan Document is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum
equal to (i) in the case of overdue principal of any Loan, the lesser of (A) the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section plus 2%, and with respect to any Eurodollar Loan, after the
expiration of the Interest Period in which such Event of Default arose, the Default Rate, or (B) the Highest Lawful Rate or (ii) in the case of any other amount, the lesser of (A) the Default Rate or (B) the Highest Lawful Rate.

 (d) Interest Payment Dates. Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and on the Termination Date; provided that (i) interest accrued pursuant to Section 3.02(c) shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than an optional
prepayment of an ABR Loan prior to the Termination Date), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment, and (iii) in the event of any conversion of any Eurodollar Loan
prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion (but only to the extent so converted). 

 

 42 

 (e) Interest Rate Computations. All interest hereunder shall be computed on the basis
of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), except that interest computed by reference to the
Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed
(including the first day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error, and be
binding upon the parties hereto. 
 Section 3.03 Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurodollar Borrowing: 
 (a) the Administrative Agent determines (which determination shall be conclusive
absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate for such Interest Period; or 

(b) the Administrative Agent is advised by the Majority Lenders that the Adjusted LIBO Rate or LIBO Rate, as applicable, for such Interest
Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period; 

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or telecopy as promptly as practicable thereafter
and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of
any Borrowing as, a Eurodollar Borrowing shall be ineffective, and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing. 

Section 3.04 Prepayments. 

(a) Optional Prepayments. The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or
in part, subject to prior notice in accordance with Section 3.04(b). 
 (b) Notice and Terms of Optional
Prepayment. The Borrower shall notify the Administrative Agent (and, in the case of prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of prepayment of a
Eurodollar Borrowing, not later than 12:00 noon, New York City time, three Business Days before the date of prepayment, or (ii) in the case of prepayment of an ABR Borrowing or Swingline Loan, not later than 12:00 noon, New York City time, on
the date of prepayment. Each such notice shall be irrevocable and shall specify the Borrowing to be prepaid, the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid. Promptly following receipt of any such
notice relating to a Borrowing, the 
  

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Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a
Borrowing of the same Type as provided in Section 2.02. The Administrative Agent shall apply each prepayment of a Borrowing ratably to the Loans included in the Borrowing specified in the Borrower’s notice of prepayment. Prepayments
shall be accompanied by accrued interest to the extent required by Section 3.02. 
 (c) Mandatory
Prepayments. 
 (i) If, after giving effect to any termination or reduction of the Aggregate Maximum Credit
Amounts pursuant to Section 2.06(b), the total Revolving Credit Exposures exceeds the total Commitments, then the Borrower shall (A) prepay the Borrowings on the date of such termination or reduction in an aggregate principal amount
equal to such excess, and (B) if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as cash collateral as
provided in Section 2.08(j). 
 (ii) Upon any redetermination of or adjustment to the amount of the
Borrowing Base in accordance with Section 2.07 or Section 9.02(a)(ix), if the total Revolving Credit Exposures exceeds the redetermined or adjusted Borrowing Base, then the Borrower shall (A) prepay the Borrowings in an
aggregate principal amount equal to such excess, and (B) if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be
held as cash collateral as provided in Section 2.08(j). The Borrower shall be obligated to make 50% of such prepayment and/or deposit of cash collateral within 90 days following its receipt of the New Borrowing Base Notice in accordance
with Section 2.07(d) or the date the adjustment occurs and to make the balance of such prepayment within 180 days of such date; provided that all payments required to be made pursuant to this Section 3.04(c)(ii) must
be made on or prior to the Termination Date. 
 (iii) Upon any adjustments to the Borrowing Base pursuant to
Section 9.12(d), if the total Revolving Credit Exposures exceeds the Borrowing Base as adjusted, then the Borrower shall (A) prepay the Borrowings in an aggregate principal amount equal to such excess, and (B) if any excess
remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as cash collateral as provided in Section 2.08(j). The
Borrower shall be obligated to make such prepayment and/or deposit of cash collateral on the date it or any Subsidiary receives proceeds as a result of such disposition; provided that all payments required to be made pursuant to this
Section 3.04(c)(iii) must be made on or prior to the Termination Date. 
 (iv) Each prepayment of
Borrowings pursuant to this Section 3.04(c) shall be applied, first, ratably to any ABR Borrowings then outstanding, and, second, to any Eurodollar Borrowings then outstanding, and if more than one Eurodollar Borrowing is then
outstanding, to each such Eurodollar Borrowing in order of priority beginning with 
  

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the Eurodollar Borrowing with the least number of days remaining in the Interest Period applicable thereto and ending with the Eurodollar Borrowing with the most number of days remaining in the
Interest Period applicable thereto. 
 (v) Each prepayment of Borrowings pursuant to this
Section 3.04(c) shall be applied ratably to the Loans included in the prepaid Borrowings. Prepayments pursuant to this Section 3.04(c) shall be accompanied by accrued interest to the extent required by
Section 3.02. 
 (d) No Premium or Penalty. Prepayments permitted or required under this
Section 3.04 shall be without premium or penalty, except as required under Section 5.02. 

Section 3.05 Fees. 

(a) Commitment Fees. The Borrower agrees to pay to the Administrative Agent for the account of each Lender (other than a
Defaulting Lender to the extent set forth in Section 2.11) a commitment fee, which shall accrue at the applicable Commitment Fee Rate on the average daily amount of the unused amount of the Commitment of such Lender (calculated as if no
Swingline Loans were outstanding) during the period from and including the Effective Date to but excluding the Termination Date. Accrued commitment fees shall be payable in arrears on the last day of March, June, September and December of each year
and on the Termination Date, commencing on the first such date to occur after the Effective Date. All commitment fees shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day). 
 (b) Letter of Credit Fees. The Borrower agrees to
pay (i) to the Administrative Agent for the account of each Lender (other than a Defaulting Lender to the extent set forth in Section 2.11) a participation fee with respect to its participations in Letters of Credit, which shall
accrue at the same Applicable Margin used to determine the interest rate applicable to Eurodollar Loans on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements which
has been funded by such Lender) during the period from and including the Effective Date to but excluding the later of the date on which such Lender’s Commitment terminates and the date on which such Lender ceases to have any LC Exposure,
(ii) to each Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily amount of that portion of the LC Exposure attributable to such Issuing Bank (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date of termination of the Commitments and the date on which there ceases to be any LC Exposure attributable to such Issuing
Bank, provided that (A) in no event shall such fee be less than $125 for each Letter of Credit during any quarter and (B) if the expiration date of the Letter of Credit is less than one year after its date of issuance and the
aggregate fronting fee otherwise payable through its expiration would be less than $500, then the Borrower shall pay to the Issuing Bank $500 upon the issuance of such Letter of Credit in lieu of the fronting fee otherwise payable, and (iii) to
each Issuing Bank, for its own account, its standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder. Participation fees and fronting fees accrued through and including
the last day of March, June, September and December of each year shall be payable on the third Business Day following such 
  

 45 

 
last day, commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the Termination Date and any such fees accruing after the
Termination Date shall be payable on demand. Any other fees payable to an Issuing Bank pursuant to this Section 3.05(b) shall be payable within 10 days after demand. All participation fees and fronting fees shall be computed on the basis
of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 

(c) Administrative Agent Fees. The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the
amounts and at the times separately agreed upon between the Borrower and the Administrative Agent. 
 ARTICLE IV

 Payments; Pro Rata Treatment; Sharing of Set-offs. 

Section 4.01 Payments Generally; Pro Rata Treatment; Sharing of Set-offs. 

(a) Payments by the Borrower. The Borrower shall make each payment required to be made by it hereunder (whether of principal,
interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 5.01, Section 5.02, Section 5.03 or otherwise) prior to 12:00 noon, New York City time, on the date when due (for purposes
of computing interest and fees, each such payment made after such time on such due date to be deemed to have been made on the next succeeding Business Day), in immediately available funds, without defense, deduction, recoupment, set-off or
counterclaim. Fees, once paid, shall not be refundable under any circumstances. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day
for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices specified in Section 12.01, except payments to be made directly to an Issuing Bank as expressly provided herein and
except that payments pursuant to Section 5.01, Section 5.02, Section 5.03 and Section 12.03 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such
payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the
next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder shall be made in Dollars. 

(b) Application of Insufficient Payments. If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled thereto
in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties. 
  

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 (c) Sharing of Payments by Lenders. If any Lender shall, by exercising any right of
set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans, participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of a greater proportion of the
aggregate amount of its Loans, participations in LC Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face
value) participations in the Loans, participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate
amount of principal of and accrued interest on their respective Loans, participations in LC Disbursements and Swingline Loans; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this Section 4.01(c) shall not be construed to apply to any
payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans, participations in LC
Disbursements or Swingline Loans to any assignee or Participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this Section 4.01(c) shall apply). The Borrower consents to the foregoing
and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation. 

Section 4.02 Presumption of Payment by the Borrower. Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or any Issuing Bank that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such
payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or such Issuing Bank, as the case may be, the amount due. In such event, if the Borrower has not in fact made such payment, then each of
the Lenders or such Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or such Issuing Bank with interest thereon, for each day from and including the
date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on
interbank compensation. 
 Section 4.03 Certain Deductions by the Administrative Agent. If any Lender shall fail to
make any payment required to be made by it pursuant to Section 2.05(b), Section 2.08(d), Section 2.08(e) or Section 4.02 then the Administrative Agent may, in its discretion (notwithstanding any
contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid.

 Section 4.04 Disposition of Proceeds. The Security Instruments contain an assignment by the Borrower and/or the
Guarantors unto and in favor of the Administrative Agent for the 
  

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benefit of the Lenders of all of the Borrower’s or each Guarantor’s interest in and to production and all proceeds attributable thereto which may be produced from or allocated to the
Mortgaged Property. The Security Instruments further provide in general for the application of such proceeds to the satisfaction of the Indebtedness and other obligations described therein and secured thereby. Notwithstanding the assignment
contained in such Security Instruments, until the occurrence of an Event of Default, (a) the Administrative Agent and the Lenders agree that they will neither notify the purchaser or purchasers of such production nor take any other action to
cause such proceeds to be remitted to the Administrative Agent or the Lenders, but the Lenders will instead permit such proceeds to be paid to the Borrower and its Restricted Subsidiaries and (b) the Lenders hereby authorize the Administrative
Agent to take such actions as may be necessary to cause such proceeds to be paid to the Borrower and/or such Restricted Subsidiaries. 

ARTICLE V 

Increased Costs; Break Funding Payments; Taxes; Illegality 

Section 5.01 Increased Costs. 

(a) Changes in Law. If any Change in Law shall: 

(i) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with
or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate); or 

(ii) impose on any Lender or the London interbank market any other condition affecting this Agreement or Eurodollar Loans
made by such Lender; 
 and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any
Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to reduce the amount of any sum received or receivable by such Lender (whether of principal, interest or otherwise, but not including Excluded Taxes), then the Borrower will
pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered. 

(b) Capital Requirements. If any Lender or any Issuing Bank determines that any Change in Law regarding capital requirements has
or would have the effect of reducing the rate of return on such Lender’s or such Issuing Bank’s capital or on the capital of such Lender’s or such Issuing Bank’s holding company, if any, as a consequence of this Agreement or the
Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a level below that which such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding
company could have achieved but for such Change in Law (taking into consideration such Lender’s or such Issuing Bank’s policies and the policies of such Lender’s or such Issuing Bank’s holding company with respect to capital
adequacy), then from time to time the Borrower will pay to such Lender or such Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s
holding company for any such reduction suffered. 
  

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 (c) Certificates. A certificate of a Lender or any Issuing Bank setting forth the
amount or amounts necessary to compensate such Lender or such Issuing Bank or its holding company, as the case may be, as specified in Section 5.01(a) or (b) shall be delivered to the Borrower and shall be conclusive absent
manifest error. The Borrower shall pay such Lender or such Issuing Bank, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof. 

(d) Effect of Failure or Delay in Requesting Compensation. Failure or delay on the part of any Lender or any Issuing Bank to
demand compensation pursuant to this Section 5.01 shall not constitute a waiver of such Lender’s or such Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to compensate a
Lender or an Issuing Bank pursuant to this Section 5.01 for any increased costs or reductions incurred more than 180 days prior to the date that such Lender or such Issuing Bank, as the case may be, notifies the Borrower of the Change in
Law giving rise to such increased costs or reductions and of such Lender’s or such Issuing Bank’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof. 

Section 5.02 Break Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan other than
on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan into an ABR Loan other than on the last day of the Interest Period applicable thereto,
(c) the failure to borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto or (d) the assignment of any Eurodollar Loan other than on the last day of the Interest Period
applicable thereto as a result of a request by the Borrower pursuant to Section 5.04(b), then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event (exclusive of any lost
profits or opportunity costs). In the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have
accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor
(or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest
rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the eurodollar market. 

A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section 5.02 shall
be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof. 

 

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 Section 5.03 Taxes. 

(a) Payments Free of Taxes. Any and all payments by or on account of any obligation of the Borrower or any Guarantor under any
Loan Document shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the
sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 5.03(a)), the Administrative Agent, Lender or Issuing Bank (as the
case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law. 
 (b) Payment of Other Taxes by the Borrower. The Borrower shall pay any
Other Taxes to the relevant Governmental Authority in accordance with applicable law. 
 (c) Indemnification by the
Borrower. The Borrower shall indemnify the Administrative Agent, each Lender and each Issuing Bank, within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such
Lender or such Issuing Bank, as the case may be, on or with respect to any payment by or on account of any obligation of the Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable
under this Section 5.03) and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority; provided that the Borrower shall not be required to indemnify the Administrative Agent, any Lender or any Issuing Bank for any amounts under this Section 5.03(c) to the extent that such Person fails to
notify the Borrower of its intent to make a claim for indemnification under this Section 5.03(c) within 180 days after a claim is asserted against such Person by the relevant Governmental Authority. A certificate of the Administrative
Agent, a Lender or an Issuing Bank as to the amount of such payment or liability under this Section 5.03 shall be delivered to the Borrower and shall be conclusive absent manifest error. 

(d) Evidence of Payments. As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Borrower to a
Governmental Authority, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence
of such payment reasonably satisfactory to the Administrative Agent. 
 (e) Foreign Lenders. Any Foreign Lender that is
entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement or any other Loan
Document shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the
Borrower as will permit such payments to be made without withholding or at a reduced rate. 
  

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 (f) Tax Refunds. If the Administrative Agent or a Lender determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to Section 5.03, it shall pay over such
refund to the Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under Section 5.03 with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses of the Administrative Agent or such Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided, that the Borrower, upon the request of the Administrative
Agent or such Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative
Agent or such Lender is required to repay such refund to such Governmental Authority. This Section 5.03(f) shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other
information relating to its taxes which it deems confidential) to the Borrower or any other Person. 
 Section 5.04
Mitigation Obligations; Replacement of Lenders. 
 (a) Designation of Different Lending Office. If any Lender
requests compensation under Section 5.01, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 5.03, then such Lender shall
use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 5.01 or Section 5.03, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender solely as a result of such designation or assignment. 

(b) Replacement of Lenders. If (i) any Lender requests compensation under Section 5.01, or (ii) the Borrower
is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 5.03, or (iii) any Lender is a Defaulting Lender, or (iv) any Lender has asserted that any
adoption or change of the type described in Section 5.05 has occurred, or (v) any Lender fails to approve an amendment, waiver or other modification to this Agreement and at least the Super-majority Lenders have approved such
amendment, waiver or other modification, or (vi) any Lender fails to approve an increase, decrease or reaffirmation of the Borrowing Base and at least the Super-majority Lenders have approved such increase, decrease or reaffirmation, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in
Section 12.04(b)), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that
(i) if such assignee is not a Lender, the Borrower shall have received the prior written consent of the Administrative Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal
to the outstanding principal of its Loans and participations in LC Disbursements, 
  

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accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower
(in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 5.01 or payments required to be made pursuant to Section 5.03, such assignment will
result in a reduction in such compensation or payments. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply. 
 Section 5.05 Illegality. Notwithstanding any other
provision of this Agreement: 
 (a) In the event that it becomes unlawful for any Lender or its applicable lending office to
honor its obligation to make or maintain Eurodollar Loans either generally or having a particular Interest Period hereunder, then (i) such Lender shall promptly notify the Borrower and the Administrative Agent thereof and such Lender’s
obligation to make such Eurodollar Loans shall be suspended (the “Affected Loans”) until such time as such Lender may again make and maintain such Eurodollar Loans and (ii) all Affected Loans which would otherwise be made by
such Lender shall be made instead as ABR Loans (and, if such Lender so requests by notice to the Borrower and the Administrative Agent, all Affected Loans of such Lender then outstanding shall be automatically converted into ABR Loans on the date
specified by such Lender in such notice) and, to the extent that Affected Loans are so made as (or converted into) ABR Loans, all payments of principal which would otherwise be applied to such Lender’s Affected Loans shall be applied instead to
its ABR Loans; and 
 (b) If it becomes unlawful for any Lender or its applicable lending office to honor its obligation to make
any Loans to the Borrower, then such Lender shall promptly notify the Borrower and the Administrative Agent thereof and such Lender’s obligation to make Loans shall be suspended until such time as such Lender may again make and maintain Loans
to the Borrower. The Borrower shall have no obligation to pay to such Lender the commitment fee described in Section 3.05(a) that would otherwise accrue during such period of suspension. 

ARTICLE VI 

Conditions Precedent 

Section 6.01 Effective Date. 

The obligations of the Lenders to amend and restate the Existing Credit Agreement and to make Loans, of the Swingline Lender to make
Swingline Loans and of any Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 12.02): 

(a) The Administrative Agent, the Arrangers and the Lenders shall have received all fees and other amounts due and payable on or prior to
the Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses for which invoices have been presented required to be reimbursed or paid by the Borrower hereunder. 

(b) The Administrative Agent shall have received a certificate of the Secretary or an Assistant Secretary of the Borrower and of each
Guarantor dated as of the Effective Date setting 
  

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forth (i) resolutions of its board of directors with respect to the authorization of the Borrower or such Guarantor to execute and deliver the Loan Documents to which the Borrower or such
Guarantor is a party and to enter into the transactions contemplated in those documents, and (ii) certifying the articles or certificate of incorporation and bylaws (or comparable documents) of the Borrower and such Guarantor. The
Administrative Agent and the Lenders may conclusively rely on such certificate until the Administrative Agent receives notice in writing from the Borrower to the contrary. 

(c) [Reserved] 

(d) The Administrative Agent shall have received certificates of the appropriate State agencies with respect to the existence,
qualification and good standing of the Borrower and each of the Guarantors. 
 (e) The Administrative Agent shall have received
a compliance certificate which shall be substantially in the form of Exhibit B (excluding Section (e) thereof), duly and properly executed by a Responsible Officer and dated as of the date of Effective Date. 

(f) The Administrative Agent shall have received from each party hereto counterparts (in such number as may be requested by the
Administrative Agent) of this Agreement signed on behalf of such party. 
 (g) The Administrative Agent shall have received duly
executed Notes payable to the order of each Lender requesting a Note in a principal amount equal to its Maximum Credit Amount dated as of the Effective Date. 

(h) The Administrative Agent shall have received from each party thereto duly executed counterparts (in such number as may be requested
by the Administrative Agent) of the Security Instruments, including the Guaranty Agreement and the other Security Instruments described on Exhibit C-1. In connection with the execution and delivery of the Security Instruments, the
Administrative Agent shall: 
 (i) be reasonably satisfied that the Security Instruments create first priority,
perfected Liens (subject only to Excepted Liens identified in clauses (a) to (d) and (f) of the definition thereof, but subject to the provisos at the end of such definition and the Liens described on Schedule 9.03) on at least
75% of the total value of the Oil and Gas Properties of the Borrower and its Subsidiaries evaluated in the Initial Reserve Report; and 

(ii) have received certificates, together with undated, blank stock powers for each such certificate, representing all of
the issued and outstanding Equity Interests of each Domestic Subsidiary that is a Restricted Subsidiary and not less than 65% of all of the issued and outstanding capital stock of each Foreign Subsidiary that is a Restricted Subsidiary that is
directly owned by either the Borrower or a Domestic Subsidiary that is a Restricted Subsidiary. 
 (i) [Reserved] 

 

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 (j) The Administrative Agent shall have received (i) an opinion of Bracewell &
Giuliani LLP, special counsel to the Borrower, (ii) an opinion of Akin Gump Strauss Hauer & Feld LLP, California counsel to the Borrower, and (iii) an opinion of Onebane Law Firm, Louisiana counsel to the Borrower, each dated the
Effective Date and in form and substance reasonably satisfactory to the Administrative Agent. The Borrower hereby requests such firms to deliver such opinions. 

(k) The Administrative Agent shall have received a Reserve Report prepared by the Company with respect to its Oil and Gas Properties as
of June 30, 2010. 
 (l) The Administrative Agent shall have received appropriate UCC search certificates reflecting no
prior Liens encumbering the personal property related to the Oil and Gas Properties of the Borrower and the Guarantors for Delaware and Texas,; other than those being assigned or released on or prior to the Effective Date or Liens permitted by
Section 9.03. 
 (m) The Administrative Agent shall have received a letter from CT Corporation evidencing the
appointment of CT Corporation as authorized agent for service of process on each of the Borrower and each Obligor (as defined in the Guaranty Agreement) under each Loan Document to which it is a party. 

(n) The Administrative Agent shall have received evidence reasonably satisfactory to it that all consent or approval of, registration or
filing with, or any other action by, any Governmental Authority or any other third Person necessary in connection with the Transactions shall have been obtained and are in full force and effect other than (i) those necessary to comply with
Sections 8.03, 8.08 and 8.13 and (ii) those third party approvals or consents that, if not made or obtained, would not cause a Default hereunder and could not reasonably be expected to have a Material Adverse Effect.

 (o) The Administrative Agent shall have received such other documents as the Administrative Agent or special counsel to the
Administrative Agent may reasonably request. 
 Section 6.02 Each Credit Event. The obligation of each Lender to
make a Loan on the occasion of any Borrowing (including the initial funding) (excluding any Loan made pursuant to Section 2.08(e)), of the Swingline Lender to make a Swingline Loan and of any Issuing Bank to issue, amend, renew or extend
any Letter of Credit, is subject to the satisfaction of the following conditions: 
 (a) At the time of and immediately after
giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default shall have occurred and be continuing. 

(b) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter
of Credit, as applicable, no Material Adverse Effect shall have occurred. 
 (c) The representations and warranties of the
Borrower and the Guarantors set forth in this Agreement and in the other Loan Documents shall be true and correct in all material respects on and as of the date of such Borrowing or the date of issuance, amendment, renewal or

  

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extension of such Letter of Credit, as applicable, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, on and as of the date of
such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, such representations and warranties shall continue to be true and correct in all material respects as of such specified earlier date.

 (d) The pro forma total Revolving Credit Exposures (after giving effect to the requested Borrowing or the issuance of the
requested Letter of Credit) shall not exceed the aggregate Commitments. 
 (e) The Administrative Agent shall have received a
Borrowing Request in accordance with Section 2.03 or a request for a Letter of Credit in accordance with Section 2.08(b), as applicable. 

Each Borrowing (excluding any Borrowing made pursuant to Section 2.08(e)) and each issuance, amendment, renewal or extension
of any Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in Section 6.02(a) through (d). 

ARTICLE VII 

Representations and Warranties 

The Borrower represents and warrants to the Lenders that: 

Section 7.01 Organization; Powers. Each of the Borrower and the Restricted Subsidiaries is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to own its assets and to carry on its business as now conducted, and is qualified to do business in, and is in good standing in, every
jurisdiction where such qualification is required, except where failure to have such power, authority, licenses, authorizations, consents, approvals and qualifications could not reasonably be expected to have a Material Adverse Effect. 

Section 7.02 Authority; Enforceability. The Transactions are within the Borrower’s and each Restricted Subsidiary’s
corporate, partnership or limited liability company powers and have been duly authorized by all necessary corporate, partnership or limited liability company and, if required, stockholder, partner or member action. Each Loan Document to which the
Borrower and each Restricted Subsidiary is a party has been duly executed and delivered by the Borrower and such Restricted Subsidiary and constitutes a legal, valid and binding obligation of the Borrower and such Restricted Subsidiary, as
applicable, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, fraudulent transfer or conveyance, moratorium or other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in equity or at law and an implied covenant of good faith and fair dealing. 

Section 7.03 Approvals; No Conflicts. The Transactions 

(a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or any
other third Person, nor is any such consent, 
  

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approval, registration, filing or other action necessary for the validity or enforceability of any Loan Document except such as have been obtained or made and are in full force and effect other
than (i) those necessary to comply with Sections 8.03, 8.08 and 8.13 and (ii) those third party approvals or consents that, if not made or obtained, would not cause a Default hereunder and could not reasonably be
expected to have a Material Adverse Effect; 
 (b) will not violate (i) the charter, by-laws or other organizational
documents of the Borrower or any Restricted Subsidiary or (ii) any applicable Governmental Requirement or any order of any Governmental Authority applicable to or binding upon the Borrower or any Restricted Subsidiary which would reasonably be
expected to have a Material Adverse Effect; 
 (c) will not violate or result in a default under any indenture, agreement or
other instrument pursuant to which any Material Indebtedness is outstanding, including the Senior Indenture, binding upon the Borrower or any Restricted Subsidiary or their Properties, or give rise to a right thereunder to require any payment to be
made by the Borrower or any Restricted Subsidiary that could reasonably be expected to have a Material Adverse Effect; and 

(d) will not result in the creation or imposition of any Lien on any Property of the Borrower or any Restricted Subsidiary (other than
the Liens created by the Loan Documents). 
 Section 7.04 Financial Condition; No Material Adverse Effect.

 (a) The Borrower has furnished to the Lenders on or before the Effective Date its consolidated balance sheet and statements
of income, stockholders’ equity and cash flows (i) as of and for the fiscal year ended December 31, 2009, audited by PricewaterhouseCoopers LLP, independent public accountants, and (ii) as of and for the quarter ended
March 31, 2010. Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Borrower and its Consolidated Subsidiaries as of such date and for such period in
accordance with GAAP (subject, in the case of unaudited financial statements, to year end audit adjustments and the absence of footnotes). 

(b) Since the date of the most recent audited financial statements of the Borrower and its Subsidiaries delivered to the Lenders pursuant
to Section 8.01(a), (i) there has been no material adverse change in the business, operations, Property or financial condition of the Borrower and the Restricted Subsidiaries taken as a whole, excluding the effect of events,
developments and circumstances affecting the oil and gas exploration and production industry generally, and (ii) the business of the Borrower and its Restricted Subsidiaries has been conducted only in the ordinary course consistent with past
business practices. 
 Section 7.05 Litigation. Except as disclosed in the Borrower’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2009, there are no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened
against or affecting the Borrower or any Restricted Subsidiary (i) that could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) that involve any Loan Document or the Transactions.
There has been no change in the status of the matters disclosed in such Annual Report on Form 10-K that, individually or in the aggregate, has resulted in a Material Adverse Effect. 

 

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 Section 7.06 Environmental Matters. Except as disclosed in the Borrower’s
Annual Report on Form 10-K for the fiscal year ended December 31, 2009, or as could not be reasonably expected to have a Material Adverse Effect (or with respect to (c), (d), (e) and with respect to remedial work, (f) below,
where the failure to take such actions could not be reasonably expected to have a Material Adverse Effect): 
 (a) neither any
Property of the Borrower or any Restricted Subsidiary nor the operations conducted by the Borrower or any Restricted Subsidiary thereon violate any order or requirement of any court or Governmental Authority or any Environmental Laws; 

(b) no Property of the Borrower or any Restricted Subsidiary nor the operations currently conducted thereon or, to the knowledge of the
Borrower, by any prior owner or operator of such Property or operation, are in violation of or subject to any existing, pending or, to the Borrower’s knowledge, threatened action, suit, investigation, inquiry or proceeding by or before any
court or Governmental Authority or to any remedial obligations under Environmental Laws; 
 (c) all notices, permits, licenses,
exemptions, approvals or similar authorizations, if any, required to be obtained or filed in connection with the operation or use of any and all Property of the Borrower and each Restricted Subsidiary, including, without limitation, past or present
treatment, storage, disposal or release of a hazardous substance, oil and gas waste or solid waste into the environment, have been duly obtained or filed, and the Borrower and each Restricted Subsidiary are in compliance with the terms and
conditions of all such notices, permits, licenses and similar authorizations; 
 (d) all hazardous substances, solid waste and
oil and gas waste, if any, generated at any and all Property of the Borrower or any Restricted Subsidiary have in the past been transported, treated and disposed of in accordance with Environmental Laws and so as not to pose an imminent and
substantial endangerment to public health or welfare or the environment, and, to the knowledge of the Borrower, all such transport carriers and treatment and disposal facilities have been and are operating in compliance with Environmental Laws and
so as not to pose an imminent and substantial endangerment to public health or welfare or the environment, and are not the subject of any existing, pending or, to the Borrower’s knowledge, threatened action, investigation or inquiry by any
Governmental Authority in connection with any Environmental Laws; 
 (e) the Borrower has taken all steps reasonably necessary
to determine and has determined that no oil, hazardous substances, solid waste or oil and gas waste, have been disposed of or otherwise released and to the Borrower’s knowledge, there has been no threatened release of any oil, hazardous
substances, solid waste or oil and gas waste on or to any Property of the Borrower or any Restricted Subsidiary except in compliance with Environmental Laws and so as not to pose an imminent and substantial endangerment to public health or welfare
or the environment; and 
 (f) neither the Borrower nor any Restricted Subsidiary has any known contingent liability or remedial
work in connection with any release or threatened release of any oil, hazardous substance, solid waste or oil and gas waste into the environment. 
  

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 Section 7.07 Compliance with the Laws and Agreements; No Defaults. 

(a) Each of the Borrower and each Restricted Subsidiary is in compliance with all Governmental Requirements applicable to it or its
Property and all agreements and other instruments binding upon it or its Property, and possesses all licenses, permits, franchises, exemptions, consents, approvals and other governmental authorizations necessary for the ownership of its Property and
the conduct of its business, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 

(b) No Default has occurred and is continuing. 

Section 7.08 Investment Company Act. Neither the Borrower nor any Subsidiary is an “investment company” or a
company “controlled” by an “investment company,” within the meaning of, or subject to regulation under, the Investment Company Act of 1940, as amended. 

Section 7.09 Taxes. Each of the Borrower and its Subsidiaries has timely filed or caused to be filed all federal income and
other material Tax returns and reports required to have been filed (or obtained extensions with respect thereto) and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good
faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable, has set aside on its books adequate reserves in accordance with GAAP or (b) to the extent that the failure to do so could not reasonably be expected
to result in a Material Adverse Effect. No action to enforce any Tax Lien has been commenced. 
 Section 7.10
Disclosure; No Material Misstatements. Taken as a whole, none of the reports, financial statements, certificates or other written information (other than projections) furnished by or on behalf of the Borrower or any Restricted Subsidiary to
the Administrative Agent or any Lender or any of their Affiliates in connection with the negotiation of this Agreement or any other Loan Document or delivered hereunder or under any other Loan Document (as modified or supplemented by other
information so furnished), when furnished, contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially
misleading (other than omissions that pertain to matters of a general economic nature or matters of public knowledge that generally affect any of the industry segments of the Borrower or its Subsidiaries); provided that, with respect to
projected financial information, prospect information, geological and geophysical data and engineering projections, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the
time, recognizing that (a) there are industry-wide risks normally associated with the types of business conducted by the Borrower and its Subsidiaries and (b) projections concerning volumes attributable to the Oil and Gas Properties and
production and cost estimates contained in each Reserve Report are necessarily based upon professional opinions, estimates and projections and that the Borrower and the Restricted Subsidiaries do not warrant that such opinions, estimates and
projections will ultimately prove to have been accurate. 
  

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 Section 7.11 Subsidiaries. Schedule 7.11 lists the name, jurisdiction of
organization and organizational identification number of each Subsidiary of the Borrower as of the Effective Date and identifies each such Subsidiary as either a Restricted or Unrestricted Subsidiary. 

Section 7.12 Location of Business and Offices. As of the Effective Date, the Borrower’s jurisdiction of organization is
Delaware; the name of the Borrower as listed in the public records of its jurisdiction of organization is Plains Exploration & Production Company; and the organizational identification number of the Borrower in its jurisdiction of
organization is 3569131. As of the Effective Date, each Restricted Subsidiary’s jurisdiction of organization, name as listed in the public records of its jurisdiction of organization, organizational identification number in its jurisdiction of
organization, and the location of its principal place of business and chief executive office is stated on Schedule 7.11. 

Section 7.13 Properties; Titles, Etc. Except as would not have a Material Adverse Effect and provided that no representation
or warranty is made with respect to any Oil and Gas Property or interest to which no proved oil or gas reserves are properly attributed: 

(a) Each of the Borrower and the Restricted Subsidiaries has good and defensible title to the Oil and Gas Properties evaluated in the
most recently delivered Reserve Report and good title to all its personal Properties that are necessary to permit the Borrower and the Restricted Subsidiaries to conduct their business in all material respects in the same manner as its business has
been conducted prior to the date hereof, in each case, subject to Immaterial Title Deficiencies and free and clear of all Liens except Liens permitted by Section 9.03. Subject to Immaterial Title Deficiencies and after giving full effect
to the Excepted Liens, the Borrower or the Restricted Subsidiary specified as the owner owns the net interests in production attributable to the Hydrocarbon Interests as reflected in the most recently delivered Reserve Report. The ownership of such
Properties shall not obligate the Borrower or such Restricted Subsidiary to bear the costs and expenses relating to the maintenance, development and operations of each such Property in an amount materially in excess of the working interest of each
Property set forth in the most recently delivered Reserve Report that is not offset by a corresponding proportionate increase in the Borrower’s or such Restricted Subsidiary’s net revenue interest in such Property; provided that the
Borrower or any applicable Restricted Subsidiary shall have the right to bear costs disproportionate to the Borrower’s or such Subsidiary’s working interest with respect to any Hydrocarbon Interest for a period of time in order to earn an
interest in such Hydrocarbon Interest from a third party as evidenced by written agreement. Subject to Immaterial Title Deficiencies, there are no “back-in” or “reversionary” interests held by third parties that could reduce the
interest of the Borrower or any Restricted Subsidiary in any such Property except as expressly set forth in such Reserve Report. 

(b) All material leases and agreements necessary for the conduct of the business of the Borrower and the Restricted Subsidiaries are
valid and subsisting, in full force and effect, and there exists no default or event or circumstance which with the giving of notice or the passage of time or both would give rise to a default under any such lease or leases. 

(c) The rights and Properties presently owned, leased or licensed by the Borrower and the Restricted Subsidiaries, including, without
limitation, all easements and rights of way, include all rights and Properties necessary to permit the Borrower and the Restricted Subsidiaries to conduct their business in the same manner as its business has been conducted prior to the date hereof.

  

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 (d) The Borrower and each Restricted Subsidiary owns, or is licensed to use, (i) all
trademarks, tradenames, copyrights, patents and other intellectual Property material to its business, and the use thereof by the Borrower and such Restricted Subsidiary does not infringe upon the rights of any other Person and (ii) all
databases, geological data, geophysical data, engineering data, seismic data, maps, interpretations and other technical information used in their businesses as presently conducted, subject to the limitations contained in the agreements governing the
use of the same, which limitations are customary for companies engaged in the business of the exploration and production of Hydrocarbons. 

Section 7.14 Federal Reserve Regulations. The Borrower and its Subsidiaries are not engaged principally, or as one of its or
their important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). 

Section 7.15 Solvency. After giving effect to the Transactions, (a) the aggregate assets (after giving effect to amounts
that could reasonably be received by reason of indemnity, offset, insurance or any similar arrangement), at a fair valuation, of the Borrower and the Restricted Subsidiaries, taken as a whole, will exceed the aggregate Debt of the Borrower and the
Restricted Subsidiaries on a consolidated basis, as the Debt becomes absolute and matures, (b) each of the Borrower and the Restricted Subsidiaries on a consolidated basis will not have incurred or intended to incur, and does not believe that
it will have incurred, Debt beyond its ability to pay such Debt (after taking into account the timing and amounts of cash to be received by each of the Borrower and the Restricted Subsidiaries and the amounts to be payable on or in respect of its
liabilities, and giving effect to amounts that could reasonably be received by reason of indemnity, offset, insurance or any similar arrangement) as such Debt becomes absolute and matures and (c) each of the Borrower and the Restricted
Subsidiaries on a consolidated basis will not have (and will have no reason to believe that it will have thereafter) unreasonably small capital for the conduct of its business. 

ARTICLE VIII 

Affirmative Covenants 

Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder and
all other amounts payable under the Loan Documents shall have been paid in full and all Letters of Credit shall have expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that:

 Section 8.01 Financial Statements; Other Information. The Borrower will furnish to the Administrative Agent:

 (a) Annual Financial Statements. As soon as available, but in any event not later than 20 days after the date on which
the Borrower is initially required to file its Annual Report on Form 10-K with the SEC, its audited consolidated balance sheet and related statements of 

 

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operations, stockholders’ equity and cash flows as of the end of and for the fiscal year most recently ended, setting forth in each case in comparative form the figures for the previous
fiscal year, all reported on by PricewaterhouseCoopers LLP or other independent public accountants of recognized national standing (without a “going concern” or like qualification or exception and without any qualification or exception as
to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its Consolidated Subsidiaries on a consolidated basis
in accordance with GAAP consistently applied. 
 (b) Quarterly Financial Statements. As soon as available, but in any
event not later than 10 days after the Borrower is initially required to file each Quarterly Report on Form 10-Q with the SEC, its consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the
end of and for the fiscal quarter most recently ended and the then elapsed portion of such fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as
of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its Consolidated Subsidiaries on a
consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes. 

(c) Certificate of Financial Officer – Compliance. Within 10 Business Days after the delivery of financial statements under
Section 8.01(a) or Section 8.01(b), a certificate of a Financial Officer in substantially the form of Exhibit B hereto (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying
the details thereof and any action taken or proposed to be taken with respect thereto and (ii) setting forth reasonably detailed calculations demonstrating compliance with Section 9.01. 

(d) Certificate Regarding Swap Agreements. Concurrently with the delivery of any Reserve Report under Section 8.11(a)
and Section 8.11(b), a certificate of a Responsible Officer, in form and substance satisfactory to the Administrative Agent, containing a true and complete list of all Swap Agreements of the Borrower and each Restricted Subsidiary as of
the date that such Reserve Report is required to be delivered, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), any credit support agreements relating thereto, any margin
required or supplied under any credit support document, and the counterparty to each such agreement. 
 (e) Certificate of
Insurer – Insurance Coverage. Within 60 days of the annual renewal thereof, a certificate of insurance coverage from each insurer with respect to the insurance required by Section 8.06, in form and substance satisfactory to the
Administrative Agent, and, if requested by the Administrative Agent or any Lender, all copies of the applicable policies. 
 (f)
SEC and Other Filings; Reports to Shareholders. Promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials (other than filings under Section 16 of the Securities
Exchange Act of 1934) filed by the Borrower or any Subsidiary with the SEC or with any national securities exchange, or distributed by the Borrower to its shareholders generally, as the case may be. 

 

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 (g) Notice of Sales of Oil and Gas Properties. In the event the Borrower or any
Restricted Subsidiary sells, transfers, assigns or otherwise disposes of any Oil or Gas Properties included in the most recently delivered Reserve Report during any period between two successive Scheduled Redetermination Dates having a fair market
value in excess of 10% of the Borrowing Base then in effect, written notice of such disposition, the price thereof and the date of closing. 

(h) Notice of Casualty Events. Prompt written notice, and in any event within five Business Days, of the occurrence of any
Casualty Event or the commencement of any action or proceeding that could reasonably be expected to result in a Casualty Event. 

(i) Issuance of Permitted Additional Debt. In the event the Borrower or any of its Restricted Subsidiaries intends to incur, or be
deemed to have incurred, any Permitted Additional Debt, prior written notice of such intended offering therefor, the amount thereof and the anticipated date of closing, each if applicable. 

(j) Information Regarding Borrower and Guarantors. Prompt written notice of any change (i) in the Borrower’s or any
Guarantor’s corporate name or in the trade name used to identify such Person in the conduct of its business or the ownership of its Properties, (ii) in the Borrower’s or any Guarantor’s identity or corporate structure or in the
jurisdiction in which such Person is incorporated or formed, and (iii) in the Borrower’s or any Guarantor’s jurisdiction of organization or such Person’s organizational identification number in such jurisdiction of organization.

 (k) New Subsidiaries. Promptly and in any event within ten Business Days after organizing or acquiring any new
Material Domestic Restricted Subsidiary, the name, jurisdiction of organization, organizational identification number, and the locations of the principal place of business and chief executive office of such Subsidiary. 

(l) Other Requested Information. Promptly following any request therefor, such other information regarding the operations,
business affairs and financial condition of the Borrower or any Subsidiary (including, without limitation, any Plan or Multiemployer Plan and any reports or other information required to be filed under ERISA), or compliance with the terms of this
Agreement or any other Loan Document, as the Administrative Agent or any Lender may reasonably request. 
 Documents required to
be delivered pursuant to Section 8.01 may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the
Borrower’s website on the Internet at www.pxp.com or (ii) on which such documents are delivered to the Administrative Agent. The Administrative Agent shall post such documents on the Borrower’s behalf on an Internet or intranet
website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided that the Borrower shall deliver such documents in a form
acceptable to the Administrative Agent. Except for such compliance certificates, the Administrative Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no
responsibility to monitor compliance by the Borrower with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents. 

 

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 Section 8.02 Notices of Material Events. The Borrower will furnish to the
Administrative Agent and each Lender prompt written notice of the following: 
 (a) the occurrence of any Default; 

(b) the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or
affecting the Borrower or any Affiliate thereof that, if adversely determined could reasonably be expected to result in liability in excess of $75,000,000 per claim not fully covered by insurance, subject to normal deductibles; and 

(c) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect. 

Each notice delivered under this Section 8.02 shall be accompanied by a statement of a Responsible Officer setting forth the details of the
event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 

Section 8.03 Existence; Conduct of Business. The Borrower will, and will cause each Restricted Subsidiary to, do or cause to
be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of its business and maintain, if necessary, its qualification
to do business in each other jurisdiction in which its Oil and Gas Properties are located or the ownership of such Properties requires such qualification, except where the failure to so qualify could not reasonably be expected to have a Material
Adverse Effect; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 9.11. 

Section 8.04 Payment of Obligations. The Borrower will, and will cause each Restricted Subsidiary to, pay its obligations,
including Tax liabilities of the Borrower and all of its Subsidiaries, before the same shall become delinquent or in default, except where (i) (A) the validity or amount thereof is being contested in good faith by appropriate proceedings,
and (B) the Borrower or such Restricted Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (ii) the failure to make payment could not reasonably be expected to result in a Material
Adverse Effect. 
 Section 8.05 Operation and Maintenance of Properties. Except, in each case, where the failure to
comply could not reasonably be expected to have a Material Adverse Effect, the Borrower will, and will cause each Restricted Subsidiary to: 

(a) operate the Oil and Gas Properties described in the most recent Reserve Report or, to the extent commercially reasonable, cause such
Oil and Gas Properties to be operated in a good and workmanlike manner in accordance with the practices of the industry and in compliance with all applicable contracts and agreements and in compliance with all Governmental Requirements; 

 

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 (b) preserve, maintain and keep in good repair, working order and efficiency (ordinary wear
and tear excepted) the producing Oil and Gas Properties described in the most recent Reserve Report, including, without limitation, all equipment, machinery and facilities related thereto; 

(c) promptly pay and discharge, or make reasonable and customary efforts to cause to be paid and discharged, all delay rentals,
royalties, expenses and indebtedness accruing under the leases or other agreements affecting or pertaining to the Oil and Gas Properties described in the most recent Reserve Report, and will do all other things necessary to keep unimpaired their
rights with respect thereto and prevent any forfeiture thereof or default thereunder; 
 (d) promptly perform or make reasonable
and customary efforts to cause to be performed, in accordance with industry standards, the obligations required by each and all of the assignments, deeds, leases, sub-leases, contracts and agreements affecting its interests in the Oil and Gas
Properties described in the most recent Reserve Report; and 
 (e) to the extent the Borrower is not the operator of any Oil and
Gas Property, the Borrower shall not be obligated to directly perform any undertakings contemplated by the covenants and agreements contained in this Section 8.05 which are performable only by such operators and are beyond the control of
the Borrower, but shall be obligated to seek to enforce such operators’ contractual obligations to maintain, develop and operate the Oil and Gas Properties subject to such operating agreements and use commercially reasonable efforts to cause
the operator to comply with this Section 8.05. 
 Section 8.06 Insurance. The Borrower will, and will
cause each Restricted Subsidiary to, maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses operating
in the same or similar locations. The loss payable clauses or provisions in said insurance policy or policies insuring any of the collateral for the Loans shall be endorsed in favor of the Administrative Agent as its interests may appear and such
policies shall provide that the insurer will endeavor to give at least 14 days prior notice of any cancellation to the Administrative Agent. 

Section 8.07 Books and Records; Inspection Rights. The Borrower will, and will cause each Restricted Subsidiary to, keep
proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Borrower will, and will cause each Restricted Subsidiary to, permit any
representatives designated by the Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its Properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with
its officers and independent accountants, all at such reasonable times and as often as reasonably requested. The Lenders shall bear the cost of such inspections and examinations unless a Default or Event of Default then exists, in which event the
Borrower shall bear such cost. 
 Section 8.08 Compliance with Laws. The Borrower will, and will cause each
Restricted Subsidiary to, comply with all Governmental Requirements applicable to it or its Property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

  

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 Section 8.09 Environmental Matters. 

(a) Except to the extent that the failure to comply could not reasonably be expected to have a Material Adverse Effect, (i) at its
sole expense, the Borrower shall, and shall cause each Subsidiary to comply with all applicable Environmental Laws, including, without limitation, (x) all licensing, permitting, notification, and similar requirements of Environmental Laws, and
(y) all provision of Environmental Laws regarding storage, discharge, release, transportation, treatment and disposal of Hydrocarbons and (ii) the Borrower shall, and shall cause each Subsidiary to, promptly pay and discharge when due all
claims, liabilities and obligations with respect to any clean-up or remediation measures necessary to comply with applicable Environmental Laws. 

(b) To the extent the Borrower or a Subsidiary is not the operator of any Property, none of the Borrower and its Subsidiaries shall be
obligated to directly perform any undertakings contemplated by the covenants and agreements contained in this Section 8.09 which are performable only by such operators and are beyond the control of the Borrower and its Subsidiaries.
Notwithstanding the above and except to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect, the Borrower shall be obligated to enforce such operators’ contractual obligations to maintain,
develop and operate the Oil and Gas Properties subject to such operating agreements, and the Borrower shall, and shall cause its Subsidiaries to, use commercially reasonable efforts to cause the operator to comply with this Section 8.09.

 Section 8.10 Further Assurances. 

(a) The Borrower at its expense will, and will cause each Restricted Subsidiary to, promptly execute and deliver to the Administrative
Agent all such other documents, agreements and instruments reasonably requested by the Administrative Agent to comply with, cure any defects or accomplish the conditions precedent, covenants and agreements of the Borrower or any Restricted
Subsidiary, as the case may be, in the Loan Documents, including the Notes, or to further evidence and more fully describe the collateral intended as security for the Indebtedness, or to correct any omissions in this Agreement or the Security
Instruments, or to state more fully the obligations secured therein, or to perfect, protect or preserve any Liens created pursuant to this Agreement or any of the Security Instruments or the priority thereof, or to make any recordings, file any
notices or obtain any consents, all as may be reasonably necessary or appropriate, in the sole discretion of the Administrative Agent, in connection therewith. 

(b) The Borrower hereby authorizes the Administrative Agent to file one or more financing or continuation statements, and amendments
thereto, relative to all or any part of the Mortgaged Property without the signature of the Borrower or any other Restricted Subsidiary where permitted by law. A carbon, photographic or other reproduction of the Security Instruments or any financing
statement covering the Mortgaged Property or any part thereof shall be sufficient as a financing statement where permitted by law. 
  

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 Section 8.11 Reserve Reports. 

(a) On or before April 1st of each year, commencing April 1, 2011, the Borrower shall furnish to the Administrative Agent and
the Lenders a Reserve Report prepared by or under the supervision of the chief engineer of the Borrower and audited by one or more Approved Petroleum Engineers. It is understood that projections concerning volumes attributable to the Oil and Gas
Properties and production and cost estimates contained in each Reserve Report are necessarily based upon professional opinions, estimates and projections and that the Borrower and the Restricted Subsidiaries do not warrant that such opinions,
estimates and projections will ultimately prove to have been accurate. 
 (b) In the event of an Interim Redetermination, the
Borrower shall furnish to the Administrative Agent and the Lenders a Reserve Report prepared by or under the supervision of the chief engineer of the Borrower and in accordance with the procedures used in the most recent Reserve Report delivered
pursuant to Section 8.11(a). For any Interim Redetermination requested by the Administrative Agent or the Borrower pursuant to Section 2.07(b), the Borrower shall provide such Reserve Report with an “as of” date as
required by the Administrative Agent as soon as possible, but in any event no later than 30 days following the receipt of such request. 

Section 8.12 Reserved. 

Section 8.13 Additional Collateral; Additional Guarantors. 

(a) In connection with each redetermination of the Borrowing Base, the Borrower shall review the Reserve Report and the list of current
Mortgaged Properties to ascertain whether the Mortgaged Properties represent at least 75% of the total value of the Oil and Gas Properties evaluated in the most recently completed Reserve Report after giving effect to exploration and production
activities, acquisitions, dispositions and production. In the event that the Mortgaged Properties do not represent at least 75% of such total value, then the Borrower shall, and shall cause its Restricted Subsidiaries to (i), grant, within 30 days
of such review, to the Administrative Agent as security for the Indebtedness a first-priority Lien interest (provided that Excepted Liens of the type described in clauses (a) to (d) and (f) of the definition thereof may exist,
but subject to the provisos at the end of such definition) on additional Oil and Gas Properties evaluated in the most recently completed Reserve Report containing proved oil and gas reserves not already subject to a Lien of the Security Instruments
such that after giving effect thereto, the Mortgaged Properties will represent at least 75% of such total value and (ii) deliver, within 90 days of the Administrative Agent’s request, evidence of good and defensible title with respect to
such additional Mortgaged Properties, subject to Immaterial Title Deficiencies. All such Liens will be created and perfected by and in accordance with the provisions of deeds of trust, security agreements and financing statements or other Security
Instruments, all in form and substance reasonably satisfactory to the Administrative Agent and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes. 

(b) If the Borrower or any Domestic Subsidiary that is a Restricted Subsidiary becomes the owner of a Restricted Subsidiary, then the
Borrower shall, or shall cause such Domestic Subsidiary to, promptly, but in any event no later than 30 days after the date of 

 

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becoming an owner thereof (or such longer period as the Administrative Agent may agree in its discretion), (i) pledge 100% of the Equity Interests of such Restricted Subsidiary if it is a
Domestic Subsidiary, (ii) pledge 65% of the Equity Interests of such Restricted Subsidiary if it is a Foreign Subsidiary, (iii) deliver original stock certificates, if any, evidencing such Equity Interests so pledged, together with
appropriate stock powers for each certificate duly executed in blank by the registered owner thereof, and (iv) execute and deliver such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the
Administrative Agent. 
 (c) The Borrower shall cause the following Persons to guarantee the Indebtedness pursuant to the
Guaranty Agreement: 
 (i) each Material Domestic Restricted Subsidiary; 

(ii) any Person required to guarantee the Indebtedness in order for the Borrower to be in compliance with
Section 9.05(b); 
 (iii) any Person that guarantees any Senior Notes or any Permitted Additional
Debt; and 
 (iv) one or more additional Domestic Subsidiaries that are Restricted Subsidiaries to the extent
necessary to cause the total assets of the Domestic Subsidiaries that are Restricted Subsidiaries but are not Guarantors to be less than 20% of the combined assets of the Borrower and its Restricted Subsidiaries and the combined EBITDAX of such
Domestic Subsidiaries to be less than 20% of the combined EBITDAX of the Borrower and its Restricted Subsidiaries. 
 (d) In
connection with any guaranty required by Section 8.13(c), the Borrower shall, or shall cause such Subsidiary or other Person to promptly, but in any event no later than 30 days (or such longer period as the Administrative Agent may agree
in its discretion) after the event requiring such guaranty, execute and deliver (i) a supplement to the Guaranty Agreement and (ii) such other additional closing documents, certificates and legal opinions as shall reasonably be requested
by the Administrative Agent. If at any time any Person is not otherwise required to guarantee the Indebtedness hereunder (whether pursuant to the other provisions of this Section 8.13 or otherwise) or under any other Loan Document, then
upon receipt by the Administrative Agent of evidence satisfactory to it that such Person has been fully and finally released from its guarantee obligations in respect of the Senior Notes or, if applicable, any Permitted Additional Debt, as the case
may be, such Person shall be released from its guarantee obligations with respect to the Indebtedness and the Administrative Agent shall, at the sole cost and expense of the Borrower, execute such further documents and do all such further acts so as
to reasonably evidence such release. 
 (e) If the Borrower obtains an Investment Grade Rating, then the provisions of
Section 8.13(a) and (b) shall no longer apply. 
 Section 8.14 ERISA Compliance. The
Borrower will promptly furnish to the Administrative Agent (i) immediately upon becoming aware of the occurrence of any ERISA Event or of any “prohibited transaction,” as described in section 406 of ERISA or in section

  

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4975 of the Code, in connection with any Plan or any trust created thereunder that could reasonably be expected to have a Material Adverse Effect, a written notice signed by a Responsible
Officer, specifying the nature thereof, what action the Borrower, any of its Subsidiaries or any ERISA Affiliate is taking or proposes to take with respect thereto, and, when known, any action taken or proposed by the Internal Revenue Service, the
Department of Labor or the PBGC with respect thereto, and (ii) immediately upon receipt thereof, copies of any notice of the PBGC’s intention to terminate or to have a trustee appointed to administer any Plan that could reasonably be
expected to have a Material Adverse Effect. With respect to each Plan (other than a Multiemployer Plan), the Borrower will, and will cause each Subsidiary and ERISA Affiliate to, (A) satisfy in full and in a timely manner, without incurring any
late payment or underpayment charge or penalty that could reasonably be expected to have a Material Adverse Effect and without giving rise to any Lien securing an amount in excess of $50,000,000, all of the contribution and funding requirements of
section 412 of the Code (determined without regard to subsections (d), (e), (f) and (k) thereof) and of section 302 of ERISA (determined without regard to sections 303, 304 and 306 of ERISA), and (B) pay, or cause to be paid, to the
PBGC in a timely manner, without incurring any late payment or underpayment charge or penalty that could reasonably be expected to have a Material Adverse Effect, all premiums required pursuant to sections 4006 and 4007 of ERISA. 

Section 8.15 Unrestricted Subsidiaries. The Borrower: 

(a) will cause the management, business and affairs of each of the Borrower and its Restricted Subsidiaries to be conducted in such a
manner (including, without limitation, by keeping separate books of account, furnishing separate financial statements of Unrestricted Subsidiaries to creditors and potential creditors thereof and by not permitting Properties of the Borrower and its
respective Restricted Subsidiaries to be commingled) so that each Unrestricted Subsidiary that is a corporation will be treated as a corporate entity separate and distinct from the Borrower and the Restricted Subsidiaries; 

(b) will not, and will not permit any of the Restricted Subsidiaries to, incur, assume, guarantee or be or become liable for any Debt of
any of the Unrestricted Subsidiaries; and 
 (c) will not permit any Unrestricted Subsidiary to hold any Equity Interest in, or
any Debt of, the Borrower or any Restricted Subsidiary. 
 Section 8.16 Section 1031 Exchange. If the Borrower
elects to participate in a Section 1031 Exchange with respect to any Oil and Gas Properties, then on or before 180 days following the acquisition by the Section 1031 Counterparty of such Oil and Gas Properties, the Borrower shall acquire
from the Section 1031 Counterparty such Oil and Gas Properties either by exchanging other Oil and Gas Properties having a substantially equivalent value or by cancellation of the note given by the Section 1031 Counterparty or by any
combination of an exchange of Oil and Gas Properties and a partial cancellation of such note. 
  

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 ARTICLE IX 

Negative Covenants 

Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder and all
other amounts payable under the Loan Documents have been paid in full and all Letters of Credit have expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that: 

Section 9.01 Ratio of Debt to EBITDAX. The Borrower will not, as of the last day of any fiscal quarter, permit the ratio of
Debt of the Borrower and its Consolidated Restricted Subsidiaries as of such day to EBITDAX for the most recent period of four fiscal quarters for which financial statements are available to be greater than 4.50 to 1.0. 

Section 9.02 Debt. 

(a) The Borrower will not, and will not permit any Restricted Subsidiary to, incur, create, assume or suffer to exist any Debt, except:

 (i) the Notes or other Indebtedness arising under the Loan Documents or any guaranty of or suretyship
arrangement for the Notes or other Indebtedness arising under the Loan Documents. 
 (ii) The Senior Notes, all
Guarantees thereof and other Debt of the Borrower and its Restricted Subsidiaries existing on the date hereof that is reflected in the Financial Statements. 

(iii) purchase money Debt and Debt under Capital Leases not to exceed $75,000,000 in the aggregate. 

(iv) Debt associated with workers’ compensation claims, performance, bid, surety or similar bonds or surety
obligations required by Governmental Requirements or third parties in connection with the operation of the Oil and Gas Properties. 

(v) intercompany Debt between the Borrower and any Restricted Subsidiary or between Restricted Subsidiaries to the extent
permitted by Section 9.06(g); provided that (i) except as provided in (iii) below, such Debt is not held, assigned, transferred, negotiated or pledged to any Person other than the Borrower or one of its Subsidiaries,
(ii) that any such Debt owed by either the Borrower or a Guarantor shall be subordinated to the Indebtedness on terms set forth in the Guaranty Agreement; and (iii) if such Debt is secured (referred to herein as “Secured
Subordinated Intercompany Debt”), the Borrower or such Restricted Subsidiary to which such Debt is payable shall have granted to the Administrative Agent a security interest in such promissory notes held by them pursuant to the Guaranty
Agreement. 
 (vi) Debt secured by Liens permitted by Section 9.03(d) and
Section 9.03(e), the principal amount of which does not exceed $50,000,000 in the aggregate at any one time. 
  

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 (vii) endorsements of negotiable instruments for collection in the ordinary
course of business. 
 (viii) Debt outstanding under one or more unsecured short term money market credit
facilities the principal amount of which does not exceed $75,000,000 in the aggregate. 
 (ix) Debt and any
guarantees thereof by the Guarantors (including any Persons becoming Guarantors simultaneously with the incurrence of such Debt), provided that: (A) immediately before, and after giving effect to, the incurrence of any such Debt (and any
concurrent repayment of Debt with the proceeds of such incurrence), no Default exists or would exist, (B) the cash pay interest rate on such Debt is reasonably satisfactory to the Administrative Agent, (C) such Debt does not have any
scheduled amortization of principal prior to the Maturity Date, (D) such Debt has a stated maturity no earlier than one year after the Maturity Date, (E) such Debt does not have mandatory redemption events that are not Events of Default
hereunder, (F) such Debt does not prohibit prior repayment of Loans, and (G) at the time any such Debt is incurred, the Borrowing Base then in effect shall be automatically reduced by the lesser of (i) an amount equal to the product
of 0.25 multiplied by the stated principal amount of such Debt, rounded to the nearest $1,000,000 and (ii) if requested by the Borrower, an amount (which may be zero) approved by the Majority Lenders, and the Borrowing Base as so reduced shall
become the new Borrowing Base immediately upon the date of such issuance or assumption, effective and applicable to the Borrower, the Agents, each Issuing Bank and the Lenders on such date until the next redetermination or modification thereof
hereunder. For purposes of this Section 9.02(a)(ix), the “stated principal amount” shall mean the stated face amount of such Debt without giving effect to any original issue discount. 

(x) other Debt not to exceed $100,000,000 in the aggregate at any one time outstanding. 

(xi) Any renewals, refinancings or extensions of (but, except to the extent permitted herein, not increases in) any Debt
described in clauses (ii), (iii), (vi) and (ix) of this Section 9.02; provided, however, that any refinancing of Debt described in clause (ix) shall comply with the provisions of such clause (ix). 

(xii) Debt consisting of the financing of insurance premiums if the amount financed does not exceed the premium payable
for the current policy period. 
 (b) [Reserved] 

Section 9.03 Liens. The Borrower will not, and will not permit any Restricted Subsidiary to, create, incur, assume or permit
to exist any Lien on any of its Properties (now owned or hereafter acquired), except: 
 (a) Liens securing the payment of any
Indebtedness. 
 (b) Excepted Liens. 
  

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 (c) Liens securing purchase money Debt and Debt under Capital Leases to the extent permitted
by Section 9.02(a)(iii) or Section 9.02(a)(x) (and any refinancings thereof permitted under Section 9.02(a)(xi)) but only on the Property and improvements and accessions thereof and proceeds thereof acquired or
under lease; provided that such Liens are created within 180 days of construction, acquisition or lease of such Property. 

(d) Liens (other than Liens under ERISA or Environmental Laws) on Property of any Person that becomes a Restricted Subsidiary of the
Borrower after the Effective Date; provided that (i) such Liens are in existence at the time such Person becomes a Restricted Subsidiary of the Borrower and were not created in anticipation thereof and (ii) no such Liens shall extend to or
cover any Property of such Person other than such Property. 
 (e) Liens (other than Liens under ERISA or Environmental Laws)
upon real and/or tangible personal Property acquired after the Effective Date (by purchase, construction or otherwise) by the Borrower or its Restricted Subsidiaries, each of which Liens either (i) existed on such Property before the time of
its acquisition and was not created in anticipation thereof or (ii) was created solely for the purpose of securing Debt (and any refinancings thereof permitted under Section 9.02(a)(xi)) representing, or incurred to finance,
refinance or refund, the cost (including the cost of construction) of such Property; provided that no such Lien shall extend to or cover any Property of the Borrower or such Restricted Subsidiary other than the Property so acquired and
improvements thereon and accessions and proceeds thereof. 
 (f) Liens on cash, letters of credit and other financial assets
pledged to secure obligations under any Swap Agreement permitted by Section 9.17 in an aggregate amount at any time not to exceed $30,000,000. 

(g) Liens on Property not constituting collateral for the Indebtedness and not otherwise permitted by the foregoing clauses of this
Section 9.03; provided that the aggregate principal or face amount of all Debt secured under this Section 9.03(g) (and any refinancings thereof permitted under Section 9.02(a)(xi)) shall not exceed $75,000,000 at
any time. 
 (h) Liens disclosed on Schedule 9.03. 

(i) Liens on the Equity Interests in, or Debt or other obligations of, any Unrestricted Subsidiary or any Person (other than a Restricted
Subsidiary) that is directly or indirectly owned by the Borrower, a Restricted Subsidiary or any Unrestricted Subsidiary securing the payment of Non-Recourse Debt. 

(j) Liens securing Secured Subordinated Intercompany Debt in accordance with Section 9.02(a)(v). 

Section 9.04 Restricted Payments. The Borrower will not, and will not permit any of its Subsidiaries to, declare or make, or
agree to pay or make, directly or indirectly, any Restricted Payment, return any capital to its stockholders or make any distribution of its Property to its Equity Interest holders, except 

(a) the Borrower may declare and pay dividends with respect to its Equity Interests payable solely in additional shares of its Equity
Interests (other than Disqualified Capital Stock), 
  

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 (b) Subsidiaries may declare and pay dividends ratably with respect to their Equity
Interests, 
 (c) the Borrower may make Restricted Payments pursuant to and in accordance with stock option plans or other
benefit plans for management or employees of the Borrower and its Subsidiaries, and 
 (d) to the extent not permitted by
clauses (a) to (c) above, the Borrower may make Restricted Payments to repurchase, redeem, or otherwise acquire any Equity Interests of the Borrower if (i) no Default or Event of Default has occurred and is continuing at the time such
Restricted Payment is made or would result from the making of such Restricted Payment, (ii) the cumulative amount of Restricted Payments made after the Effective Date pursuant to this Section 9.04(d) does not exceed $1,000,000,000,
and (iii) the Borrower’s Minimum Liquidity after giving effect to such Restricted Payment is not less than $250,000,000. 

Section 9.05 Repayment of Debt; Amendment of Indentures. The Borrower will not, and will not permit any Restricted Subsidiary
to: 
 (a) call, make or offer to make any optional or voluntary Redemption (whether in whole or in part) of any Senior Notes or
Permitted Additional Debt, provided, however, that the Borrower may Redeem Senior Notes or Permitted Additional Debt to the extent that it could make a Restricted Payment in respect of Equity Interests under Section 9.04(d);
 
 (b) amend, modify, waive or otherwise change, consent or agree to any amendment, modification, waiver or other change
to, any of the terms of the Senior Notes, Permitted Additional Debt, the Senior Indenture, or the Permitted Additional Debt Instruments if (i) the effect thereof would be to shorten its maturity to be less than one year after the Maturity Date
or average life or increase the amount of any payment of principal thereof or increase the rate or shorten any period for payment of interest thereon, (ii) such action requires the payment of a consent fee that has not been approved the
Administrative Agent (such approval not to be unreasonably withheld), or (iii) the effect thereof would be to add any guarantor or surety, unless such guarantor or surety also guarantees the Indebtedness pursuant to the Guaranty Agreement and
each of the Borrower and such guarantor or surety otherwise complies with Section 8.13(c); or 
 (c) if the Borrower
or any Restricted Subsidiary issues any Debt that is subordinated in right of payment to the Obligations, designate any other Debt (other than the Indebtedness, the Senior Notes, and any Permitted Additional Debt) as “designated senior
indebtedness” or “designated guarantor senior indebtedness” or give any such other Debt any other similar designation for the purposes of any instrument under which that subordinated Debt is issued. 

Section 9.06 Investments, Loans and Advances. The Borrower will not, and will not permit any Restricted Subsidiary to, make
or permit to remain outstanding any Investments in or to any Person, except that the foregoing restriction shall not apply to: 

(a) Investments reflected in the Financial Statements or which are disclosed to the Lenders in Schedule 9.06. 

 

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 (b) accounts receivable arising in the ordinary course of business. 

(c) direct obligations of the United States or any agency thereof, or obligations guaranteed by the United States or any agency thereof,
in each case maturing within one year from the date of creation thereof. 
 (d) commercial paper maturing within one year from
the date of creation thereof rated in the highest grade by S&P or Moody’s. 
 (e) deposits maturing within one year
from the date of creation thereof with, including certificates of deposit issued by, any Lender or any office located in the United States of any other bank or trust company which is organized under the laws of the United States or any state
thereof, has capital, surplus and undivided profits aggregating at least $100,000,000 (as of the date of such bank or trust company’s most recent financial reports) and has a short term deposit rating of no lower than A2 or P2, as such rating
is set forth from time to time, by S&P or Moody’s, respectively. 
 (f) deposits in money market funds investing
exclusively in Investments described in Section 9.06(c), Section 9.06(d) and Section 9.06(e). 

(g) Investments (i) made by the Borrower in or to the Guarantors, (ii) made by any Subsidiary in or to the Borrower or any
Guarantor, and (iii) made by the Borrower or any Restricted Subsidiary in or to Unrestricted Subsidiaries, Nuevo Energy Company, Sepulveda Oil and Gas Company and all other Restricted Subsidiaries which are not Guarantors; provided that,
with respect to any Investment described in clause (iii), (A) the aggregate amount at any one time of all such Investments (valued as of the date of such Investment) made after the Effective Date shall not exceed $250,000,000; (B) no
Default or Event of Default has occurred and is continuing at the time such Investment is made or would result from the making of such Investment, and (C) the Borrower’s Minimum Liquidity after giving effect to such Investment is not less
than $115,000,000. 
 (h) Investments (including, without limitation, capital contributions) in general or limited partnerships
or other types of entities (each a “venture”) entered into by the Borrower or a Restricted Subsidiary with others in the ordinary course of business; provided that (i) any such venture is engaged exclusively in oil and gas
exploration, development, production, processing and related activities, including transportation, (ii) the interest in such venture is acquired in the ordinary course of business and on fair and reasonable terms and (iii) such venture
interests acquired and capital contributions made after the Effective Date (valued as of the date such interest was acquired or the contribution made) do not exceed, in the aggregate at any time outstanding an amount equal to $150,000,000.

 (i) Investments received in settlement of amounts owing to the Borrower or any Restricted Subsidiary as a result of a
bankruptcy or other insolvency proceeding of the obligor in respect of such amounts or upon the enforcement of any Lien in favor of the Borrower or any of its Restricted Subsidiaries; provided that the Borrower shall give the Administrative
Agent prompt written notice in the event that the aggregate amount of all Investments held at any one time under this Section 9.06(i) exceeds $25,000,000. 

 

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 (j) entry into operating agreements, working interests, royalty interests, mineral leases,
processing agreements, farm-out agreements, contracts for the sale, transportation or exchange of oil and natural gas, unitization agreements, pooling arrangements, area of mutual interest agreements, production sharing agreements or other similar
or customary agreements, transactions, properties, interests or arrangements, and Investments and expenditures in connection therewith or pursuant thereto, in each case made or entered into in the ordinary course of the oil and gas business,
excluding, however, Investments in other Persons other than joint ventures; provided, however, that none of the foregoing shall involve the incurrence of any Debt not permitted by Section 9.02, and provided further that
this Section 9.06(j) shall not be construed to permit Investments by the Borrower or any Restricted Subsidiary in any Person which maintains or incurs in the future any Debt other than Non-Recourse Debt. 

(k) loans and advances to directors, officers and employees in the ordinary course of business consistent with prior practice.

 (l) Guarantees by the Borrower and the Restricted Subsidiaries of Debt permitted by Section 9.02(a)(i),
Section 9.02(a)(iii), Section 9.02(a)(iv), Section 9.02(a)(vi), Section 9.02(a)(viii), Section 9.02(a)(ix), Section 9.02(a)(x), and Section 9.02(a)(xi). 

(m) Indemnities entered into in the ordinary course of business or in connection with the disposition of assets. 

(n) Investments of surface rights in fee property in California in Unrestricted Subsidiaries. 

(o) Investments arising from the endorsement of financial instruments in the ordinary course of business. 

(p) Investments made in connection with and consisting of Swap Agreements to the extent permitted under Section 9.17;

 (q) loans to the Section 1031 Counterparty participating in a Section 1031 Exchange provided that
(i) the amount of any such loan does not exceed the sum of (A) purchase price to be paid by the recipient of such loan for the purchase price of the assets subject to the related Section 1031 Exchange, and (B) estimated capital
expenditures and operating expenses to be incurred with respect to such assets during the 180 day period during which such Section 1031 Exchange is to be completed, (ii) such loan is secured by a first priority security interest in the
assets to be acquired by such recipient pursuant to the Section 1031 Exchange, (iii) the Administrative Agent has a perfected first priority security interest in such loan and any note or other document evidencing or securing such loan,
(iv) the documentation relating to such Section 1031 Exchange and the related Section 1031 Counterparty are satisfactory to the Administrative Agent in its reasonable discretion and (v) the Administrative Agent shall have
received an opinion from Borrower’s counsel in form and substance satisfactory to the Administrative Agent. 
 (r)
Guarantees by the Borrower or any Restricted Subsidiary of operating leases or of other obligations that do not constitute Debt, in each case entered into by any Restricted Subsidiary in the ordinary course of business. 

 

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 (s) Investments of any Person that becomes a Restricted Subsidiary of the Borrower after the
Effective Date to the extent that such Investments were not made in contemplation of or in connection with such acquisition, merger, consolidation or amalgamation and were in existence on the date of such acquisition, merger or consolidation.

 (t) any Investment by the Borrower or one or more of its Wholly Owned Subsidiaries in a Person, if as a result of such
Investment such Person becomes a Restricted Subsidiary or such Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its assets to, the Borrower or a Restricted Subsidiary. 

(u) other Investments not to exceed $100,000,000 in the aggregate at any time. 

Section 9.07 Designation and Conversion of Restricted and Unrestricted Subsidiaries; Debt of Unrestricted Subsidiaries.

 (a) Unless designated as an Unrestricted Subsidiary on Schedule 7.11 as of the Effective Date or thereafter, assuming
compliance with Section 9.07(b), any Person that becomes a Subsidiary of the Borrower or any of its Restricted Subsidiaries shall be classified as a Restricted Subsidiary. 

(b) The Borrower may designate by written notification thereof to the Administrative Agent, any Restricted Subsidiary, including a newly
formed or newly acquired Subsidiary, as an Unrestricted Subsidiary if (i) prior, and after giving effect, to such designation, neither a Default nor a Borrowing Base Deficiency would exist and (ii) such designation is deemed to be an
Investment in an Unrestricted Subsidiary in an amount equal to the fair market value as of the date of such designation of the Borrower’s direct and indirect ownership interest in such Subsidiary and such Investment would be permitted to be
made at the time of such designation under Section 9.06(g) or (n). 
 (c) The Borrower may designate any
Unrestricted Subsidiary to be a Restricted Subsidiary if after giving effect to such designation, (i) the representations and warranties of the Borrower and its Restricted Subsidiaries contained in each of the Loan Documents are true and
correct on and as of such date as if made on and as of the date of such redesignation (or, if stated to have been made expressly as of an earlier date, were true and correct as of such date), (ii) no Default would exist and (iii) the
Borrower complies with the requirements of Section 8.13 and Section 9.14. 
 Section 9.08 Nature
of Business. The Borrower will not, and will not permit any Restricted Subsidiary to, allow any material change to be made in the character of its business as an independent oil and gas exploration and production company. Notwithstanding the
foregoing, this Section 9.08 shall not prohibit the Borrower and its Subsidiaries from holding and developing the Properties described on Schedule 9.08, as updated from time to time. 

Section 9.09 Proceeds of Loans. The Borrower will not use the proceeds of the Loans for any purpose other than for
(i) intercompany indebtedness and (ii) general corporate purposes (including making of Restricted Payments). Neither the Borrower nor any Person acting on behalf of the Borrower will violate Regulations T, U or X or any other regulation of
the Board or violate Section 7 of the Securities Exchange Act of 1934 or any rule or regulation thereunder, in 

 

 75 

 
each case as now in effect or as the same may hereinafter be in effect. If requested by the Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender a statement
to the foregoing effect in conformity with the requirements of FR Form U-1 or such other form referred to in Regulation U, Regulation T or Regulation X of the Board, as the case may be. 

Section 9.10 Sale or Discount of Receivables. Except for receivables obtained by the Borrower or any Restricted Subsidiary
out of the ordinary course of business, the settlement of joint interest billing accounts in the ordinary course of business, discounts granted to settle collection of accounts receivable, or the sale of defaulted accounts arising in the ordinary
course of business in connection with the compromise or collection thereof and not in connection with any financing transaction, the Borrower will not, and will not permit any Restricted Subsidiary to, discount or sell (with or without recourse) any
of its notes receivable or accounts receivable. 
 Section 9.11 Mergers, Etc. The Borrower will not, and will not
permit any Restricted Subsidiary to, merge into or with or consolidate with any other Person, or sell, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of its Property to any other
Person (any such transaction, a “consolidation”); provided that 
 (a) any Restricted Subsidiary may
(i) participate in a consolidation with (A) the Borrower (provided that the Borrower shall be the continuing or surviving corporation), (B) any other Restricted Subsidiary (provided that if a Guarantor is a party to such transaction,
the survivor is a Guarantor or becomes a party to the Guaranty Agreement as a Guarantor) or (C) subject to compliance with Section 9.14, any other Subsidiary or (ii) transfer all or substantially all of its assets to a
Guarantor or a Person that becomes a party to the Guaranty Agreement as a Guarantor; 
 (b) the Borrower or any Restricted
Subsidiary may participate in a consolidation (other than as described in clause (a) above) if (i) at the time thereof and immediately after giving effect thereto, no Default shall occur and be continuing and no Borrowing Base Deficiency
would result therefrom and (ii) the Borrower or such Restricted Subsidiary, as the case may be, is the surviving entity or the recipient of any such sale, lease or other disposition of Property, provided that no such consolidation shall
have the effect of releasing the Borrower or any Guarantor from any of its obligations under this Agreement or any other Loan Document; 

(c) any sale of all or substantially all of the assets of any Restricted Subsidiary provided that such sale is permitted by
Section 9.12(d); and 
 (d) any Subsidiary may liquidate or dissolve if (i) the continued existence and
operation of such Subsidiary is no longer in the best interests of the Borrower and its Subsidiaries taken as a whole (as reasonably determined by a Responsible Officer of the Borrower), (ii) such liquidation and dissolution is not
disadvantageous in any material respect to the Lenders, and (iii) at the time thereof and immediately after giving effect thereto, no Default shall occur and be continuing and no Borrowing Base Deficiency would result therefrom. 

Section 9.12 Sale of Properties. The Borrower will not, and will not permit any Restricted Subsidiary to, sell, assign,
farm-out, convey or otherwise transfer any Oil and Gas Property included in the most recent Reserve Report delivered to Lenders or any interest therein or any Restricted Subsidiary owning any such Oil and Gas Property except for 

(a) the sale of Hydrocarbons in the ordinary course of business; 

 

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 (b) farmouts of undeveloped acreage and assignments in connection with such farmouts or the
abandonment, farm-out, exchange, lease, sublease or other disposition of Oil and Gas Properties not containing proved reserves capable of being produced in economic quantities and which are not included in the Borrowing Base in the ordinary cause of
business; 
 (c) the sale or transfer of equipment that is no longer necessary for the business of the Borrower or such
Restricted Subsidiary or is replaced by equipment of at least comparable value and use; 
 (d) the sale or other disposition
(including Casualty Events) of such Oil and Gas Property or any interest therein or any Restricted Subsidiary owning such Oil and Gas Properties; provided that (i) the consideration received in respect of such sale or other disposition
shall be equal to or greater than the fair market value of the Oil and Gas Property (other than in the case of a Casualty Event), interest therein or Restricted Subsidiary subject of such sale or other disposition (as reasonably determined by any
Responsible Officer of the Borrower) and (ii) if such sale or other disposition of such Oil and Gas Property included in the Borrowing Base or Restricted Subsidiary owning such Oil and Gas Property during any period between two successive
Scheduled Redetermination Dates has a fair market value in excess of 10% of the Borrowing Base then in effect, individually or in the aggregate, the Borrowing Base shall be reduced, effective immediately upon such sale or disposition, by an amount
equal to the value, if any, assigned such Property in the most recently delivered Reserve Report; 
 (e) the sale of Oil and Gas
Properties in connection with tax credit transactions complying with §29 of the Code or any other analogous provision whether now existing or hereafter enacted, which sale does not result in a reduction in the right of the Borrower or any
Restricted Subsidiary to receive the cash flow from such Oil and Gas Properties and which sale is on terms reasonably acceptable to the Administrative Agent; 

(f) transfers and other dispositions among the Borrower and the Restricted Subsidiaries subject to, in the case of dispositions to
Restricted Subsidiaries that are not Guarantors, the limitations set forth in Section 9.06(g)(iii); and 
 (g)
transfers permitted by Section 9.11. 
 Section 9.13 Transactions with Affiliates. The Borrower will
not, and will not permit any Restricted Subsidiary to, enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of Property or the rendering of any service, with any Affiliate (other than the Guarantors and
Wholly Owned Subsidiaries of the Borrower) unless such transactions are not otherwise prohibited under this Agreement and are upon fair and reasonable terms no less favorable to it than it would obtain in a comparable arm’s length transaction
with a Person not an Affiliate. 
 Section 9.14 [Reserved]. 

 

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 Section 9.15 Negative Pledge Agreements; Dividend Restrictions. The Borrower
will not, and will not permit any Restricted Subsidiary to, create, incur, assume or suffer to exist any contract, agreement or understanding which in any way prohibits or restricts the granting, conveying, creation or imposition of any Lien on any
of its Property in favor of the Administrative Agent and the Lenders or restricts any Restricted Subsidiary from paying dividends or making distributions to the Borrower or any Guarantor, or which requires the consent of or notice to other Persons
in connection therewith; provided, however, that the preceding restrictions will not apply to encumbrances or restrictions arising under or by reason of (i) this Agreement or the Security Instruments, (ii) Debt securing Liens
or any contract, agreement or understanding creating Liens permitted by Sections 9.03(c), (d), (e), (f), (g), (h) and (i) (but only to the extent related to the Property on which such Liens
were created), (iii) any leases or licenses or similar contracts as they affect any Property or Lien subject to a lease or license, (iv) any restriction with respect to a Restricted Subsidiary imposed pursuant to an agreement entered into
for the direct or indirect sale or disposition of all or substantially all the equity or Property of such Restricted Subsidiary (or the Property that is subject to such restriction) pending the closing of such sale or disposition, or
(v) customary provisions with respect to the distribution of Property in joint venture agreements. 
 Section 9.16
Take-or-Pay or Other Prepayments. The Borrower will not, and will not permit any Restricted Subsidiary to, allow take-or-pay or other prepayments with respect to the Oil and Gas Properties of the Borrower or any Restricted Subsidiary that
would require the Borrower or such Restricted Subsidiary to deliver Hydrocarbons at some future time without then or thereafter receiving full payment therefor; provided that such restriction shall not apply to gas imbalances incurred in the
ordinary course of business. 
 Section 9.17 Swap Agreements. The Borrower will not, and will not permit any
Restricted Subsidiary to, enter into any Swap Agreements with any Person other than (a) Swap Agreements in respect of commodities (i) with an Approved Counterparty and (ii) the notional volumes for which (when aggregated with other
commodity Swap Agreements then in effect other than basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date such Swap Agreement is executed, for (A) natural gas, 90% of the reasonably
anticipated projected production from proved Oil and Gas Properties for each month during the period commencing on the date such Swap Agreement is executed and ending on the date twelve months thereafter, and for each month during any period after
such twelve-month period, 85% of the reasonably anticipated projected production from proved Oil and Gas Properties for each month during such period and (B) crude oil, 90% of the reasonably anticipated projected production from proved Oil and
Gas Properties for each month during the period commencing on the date such Swap Agreement is executed and ending on the date twelve months thereafter, and for each month during any period after such twelve-month period, 85% of the reasonably
anticipated projected production from proved Oil and Gas Properties for each month during such period, provided, however, that for purposes of this Section 9.17(a), put options and price floors for crude oil and natural gas
shall be disregarded, and (b) Swap Agreements in respect of interest rates entered into for hedging purposes and not for speculation. Any Swap Agreement may contain a requirement, agreement or covenant for the Borrower or any Restricted
Subsidiary to post collateral or margin to secure their obligations under such Swap Agreement or to cover market exposures, but notwithstanding any such requirement, agreement or covenant the Borrower shall comply with Section 9.03(a)
and Section 9.03(f). 
  

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 ARTICLE X 

Events of Default; Remedies 

Section 10.01 Events of Default. One or more of the following events shall constitute an “Event of Default”:

 (a) the Borrower shall fail to pay any principal of any Loan, any Swingline Loan or any reimbursement obligation in respect
of any LC Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof, by acceleration or otherwise. 

(b) the Borrower shall fail to pay any interest on any Loan, any Swingline Loan or any fee or any other amount (other than an amount
referred to in Section 10.01(a)) payable under any Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three Business Days. 

(c) any representation or warranty made or deemed made by or on behalf of the Borrower or any Restricted Subsidiary in or in connection
with any Loan Document or any amendment or modification of any Loan Document or waiver under such Loan Document, or in any report, certificate, financial statement or other document furnished pursuant to the provisions hereof or any Loan Document or
any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made. 

(d) the Borrower or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in
Section 8.02, Section 8.13, or in Article IX. 
 (e) the Borrower or any Restricted Subsidiary
shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in Section 10.01(a), Section 10.01(b) or Section 10.01(d)) or any other Loan Document,
and such failure shall continue unremedied for a period of 30 days after the earlier to occur of (A) notice thereof from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender) or (B) a
Responsible Officer of the Borrower or such Restricted Subsidiary otherwise becoming aware of such default; provided, however, that if the Borrower fails to deliver any financial statements, certificates or other information within the
time period required by Sections 8.01, 8.02, 8.11 or 8.13 and subsequently delivers such financial statements, certificates or other information as required by such Sections prior to acceleration or the exercise of any
remedy by the Lenders, then such Event of Default shall be deemed to have been cured and/or waived without any further action by the Administrative Agent or Lenders. 

(f) the Borrower or any Restricted Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount)
in respect of any Material Indebtedness, when and as the same shall become due and payable. 
 (g) any event or condition occurs
that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or
agent on its or their behalf to cause any Material Indebtedness to become due, or to require the Redemption thereof or any offer to Redeem to be made in respect thereof, prior to its scheduled maturity or require the Borrower or any Restricted
Subsidiary to make an offer in respect thereof. 
  

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 (h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any Restricted Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or
similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Restricted Subsidiary or for a substantial part of its assets, and, in any
such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered. 

(i) the Borrower or any Restricted Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking
liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate
manner, any proceeding or petition described in Section 10.01(h), (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Restricted
Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take
any action for the purpose of effecting any of the foregoing. 
 (j) the Borrower or any Restricted Subsidiary shall become
unable, admit in writing its inability or fail generally to pay its debts as they become due. 
 (k) one or more judgments for
the payment of money in an aggregate amount in excess of $75,000,000 (to the extent not covered by independent third party insurance provided by insurers of the highest claims paying rating or financial strength as to which the insurer does not
dispute coverage and is not subject to an insolvency proceeding) shall be rendered against the Borrower, any Restricted Subsidiary or any combination thereof and the same shall remain undischarged for a period of 30 consecutive days during which
execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of the Borrower or any Restricted Subsidiary to enforce any such judgment. 

(l) the Loan Documents after delivery thereof shall for any reason, except to the extent permitted by the terms thereof, cease to be in
full force and effect and generally valid, binding and enforceable in accordance with their terms against the Borrower or a Guarantor party thereto or shall be repudiated by any of them, or cease to create a valid and perfected Lien of the priority
required thereby on any of the collateral purported to be covered thereby, except to the extent permitted by the terms of this Agreement, or the Borrower or any Restricted Subsidiary or any of their Affiliates shall so state in writing. 

(m) an ERISA Event shall have occurred that, in the opinion of the Majority Lenders, when taken together with all other ERISA Events that
have occurred, could reasonably be expected to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $75,000,000. 
  

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 (n) a Change in Control shall occur. 

Section 10.02 Remedies. 

(a) In the case of an Event of Default other than one described in Section 10.01(h), Section 10.01(i) or
Section 10.01(j), at any time thereafter during the continuance of such Event of Default, the Administrative Agent may, and at the request of the Majority Lenders, shall, by notice to the Borrower, take either or both of the following actions,
at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Notes and the Loans then outstanding to be due and payable in whole (or in part, in which case
any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other
obligations of the Borrower and the Guarantors accrued hereunder and under the Notes and the other Loan Documents (including, without limitation, the payment of cash collateral to secure the LC Exposure as provided in Section 2.08(j)),
shall become due and payable immediately, without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other notice of any kind, all of which are hereby waived by the Borrower and each Guarantor; and in case of an
Event of Default described in Section 10.01(h), Section 10.01(i) or Section 10.01(j), the Commitments shall automatically terminate and the Notes and the principal of the Loans then outstanding, together with
accrued interest thereon and all fees and the other obligations of the Borrower and the Guarantors accrued hereunder and under the Notes and the other Loan Documents (including, without limitation, the payment of cash collateral to secure the LC
Exposure as provided in Section 2.08(j)), shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower and each Guarantor. 

(b) In the case of the occurrence of an Event of Default, the Administrative Agent and the Lenders will have all other rights and
remedies available at law and equity. 
 (c) All proceeds realized from the liquidation or other disposition of collateral or
otherwise received after maturity of the Notes, whether by acceleration or otherwise, shall be applied: 
 (i)
first, pro rata to payment or reimbursement of that portion of the Indebtedness constituting fees, expenses and indemnities payable to the Administrative Agent, Arranger, other Agents and the Lenders; 

(ii) second, pro rata to payment of accrued interest on the Loans; 

(iii) third, pro rata to payment of principal outstanding on the Loans and Indebtedness referred to in Clause
(b) of the definition of Indebtedness owing to a Lender or an Affiliate of a Lender; 
 (iv) fourth,
pro rata to any other Indebtedness; 
 (v) fifth, to serve as cash collateral to be held by the
Administrative Agent to secure the LC Exposure; and 
  

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 (vi) sixth, any excess, after all of the Indebtedness shall have been
indefeasibly paid in full in cash, shall be paid to the Borrower or as otherwise required by any Governmental Requirement. 

ARTICLE XI 

The Agents 

Section 11.01 Appointment; Powers. Each of the Lenders and each Issuing Bank hereby irrevocably appoints the Administrative
Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof and the other Loan Documents, together with such actions and
powers as are reasonably incidental thereto. 
 Section 11.02 Duties and Obligations of Administrative Agent. The
Administrative Agent shall not have any duties or obligations except those expressly set forth in the Loan Documents. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other
implied duties, regardless of whether a Default has occurred and is continuing (the use of the term “agent” herein and in the other Loan Documents with reference to the Administrative Agent is not intended to connote any fiduciary or other
implied (or express) obligations arising under agency doctrine of any applicable law; rather, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent
contracting parties), (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except as provided in Section 11.03, and (c) except as expressly set forth
herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as
Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by the Borrower or a Lender,
and shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate,
report or other document delivered hereunder or under any other Loan Document or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or in
any other Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, (v) the satisfaction of any condition set forth in
Article VI or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent, (vi) the existence, value, perfection or priority of any collateral security or the financial or other
condition of the Borrower and its Subsidiaries or any other obligor or guarantor, or (vii) any failure by the Borrower or any other Person (other than itself) to perform any of its obligations hereunder or under any other Loan Document or the
performance or observance of any covenants, agreements or other terms or conditions set forth herein or therein. For purposes of determining compliance with the conditions specified in Article VI, each Lender shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received written notice from
such Lender prior to the proposed closing date specifying its objection thereto. 
  

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 Section 11.03 Action by Administrative Agent. The Administrative Agent shall
have no duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise in writing
as directed by the Majority Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 12.02) and in all cases the Administrative Agent shall be fully justified in
failing or refusing to act hereunder or under any other Loan Documents unless it shall (a) receive written instructions from the Majority Lenders or the Lenders, as applicable, (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 12.02) specifying the action to be taken and (b) be indemnified to its satisfaction by the Lenders against any and all liability and expenses which may be incurred by it by
reason of taking or continuing to take any such action. The instructions as aforesaid and any action taken or failure to act pursuant thereto by the Administrative Agent shall be binding on all of the Lenders. If a Default has occurred and is
continuing, then the Administrative Agent shall take such action with respect to such Default as shall be directed by the requisite Lenders in the written instructions (with indemnities) described in this Section 11.03, provided
that, unless and until the Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default as it shall deem
advisable in the best interests of the Lenders. In no event, however, shall the Administrative Agent be required to take any action which exposes the Administrative Agent to personal liability or which is contrary to this Agreement, the Loan
Documents or applicable law. If a Default has occurred and is continuing, neither the Syndication Agent nor the Co-Documentation Agents shall have any obligation to perform any act in respect thereof. The Administrative Agent shall not be liable for
any action taken or not taken by it with the consent or at the request of the Majority Lenders or the Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 12.02),
and otherwise the Administrative Agent shall not be liable for any action taken or not taken by it hereunder or under any other Loan Document or under any other document or instrument referred to or provided for herein or therein or in connection
herewith or therewith INCLUDING ITS OWN ORDINARY NEGLIGENCE, except for its own gross negligence or willful misconduct. 

Section 11.04 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur
any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely
upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon and each of the Borrower, the Lenders and each Issuing Bank hereby waives the right to
dispute the Administrative Agent’s record of such statement, except in the case of gross negligence or willful misconduct by the Administrative Agent. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. The Administrative Agent may deem and
treat the payee of any 
  

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Note as the holder thereof for all purposes hereof unless and until a written notice of the assignment or transfer thereof permitted hereunder shall have been filed with the Administrative Agent.

 Section 11.05 Subagents. The Administrative Agent may perform any and all of its duties and exercise its rights
and powers by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers through their respective Related
Parties. The exculpatory provisions of the preceding Sections of this Article XI shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities
in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. 

Section 11.06 Resignation or Removal of Agents. Subject to the appointment and acceptance of a successor Administrative Agent
as provided in this Section 11.06, the Administrative Agent may resign at any time by notifying the Lenders, each Issuing Bank and the Borrower, and the Administrative Agent may be removed at any time with or without cause by the
Majority Lenders. Upon any such resignation or removal, the Majority Lenders shall have the right, in consultation with the Borrower, to appoint a successor. If no successor shall have been so appointed by the Majority Lenders and shall have
accepted such appointment within 30 days after the retiring Agent gives notice of its resignation or removal of the retiring Agent, then the retiring Agent may, on behalf of the Lenders and each Issuing Bank, appoint a successor Agent which shall be
a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its appointment as Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Agent shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor. After the Agent’s resignation hereunder, the provisions of this Article XI and Section 12.03 shall continue in effect for the benefit of such retiring Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Agent. 

Section 11.07 Agents as Lenders. Each bank serving as an Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it were not an Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any
Subsidiary or other Affiliate thereof as if it were not an Agent hereunder. 
 Section 11.08 No Reliance. Each
Lender acknowledges that it has, independently and without reliance upon the Administrative Agent, any other Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement and each other Loan Document to which it is a party. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent, any other Agent or any other Lender and based on
such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document, any

  

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related agreement or any document furnished hereunder or thereunder. The Agents shall not be required to keep themselves informed as to the performance or observance by the Borrower or any of its
Subsidiaries of this Agreement, the Loan Documents or any other document referred to or provided for herein or to inspect the Properties or books of the Borrower or its Subsidiaries. Except for notices, reports and other documents and information
expressly required to be furnished to the Lenders by the Administrative Agent hereunder, no Agent or Arranger shall have any duty or responsibility to provide any Lender with any credit or other information concerning the affairs, financial
condition or business of the Borrower (or any of its Affiliates) which may come into the possession of such Agent or any of its Affiliates. In this regard, each Lender acknowledges that Andrews Kurth LLP is acting in this transaction as special
counsel to the Administrative Agent only, except to the extent otherwise expressly stated in any legal opinion or any Loan Document. Each other party hereto will consult with its own legal counsel to the extent that it deems necessary in connection
with the Loan Documents and the matters contemplated therein. 
 Section 11.09 Authority of Administrative Agent to
Release Collateral and Liens. Each Lender and each Issuing Bank hereby authorizes the Administrative Agent to release any collateral that is permitted to be sold or released pursuant to the terms of the Loan Documents. Each Lender and each
Issuing Bank hereby authorizes the Administrative Agent to execute and deliver to the Borrower, at the Borrower’s sole cost and expense, any and all releases of Liens, termination statements, assignments or other documents reasonably requested
by the Borrower in connection with any sale or other disposition of Property to the extent such sale or other disposition is permitted by the terms of Section 9.12 or is otherwise authorized by the terms of the Loan Documents.

 Section 11.10 Administrative Agent May File Proofs of Claim. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Borrower or any of its Subsidiaries, the Administrative Agent (irrespective of whether the principal of any Loan
shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or
otherwise: 
 (a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of
the Loans and all other Indebtedness that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Section 12.03) allowed in
such judicial proceeding; and 
 (b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same; 
 and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making 

 

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of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and
its agents and counsel, and any other amounts due the Administrative Agent under Section 12.03. 
 Nothing contained herein shall be
deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Indebtedness or the rights of any Lender or to
authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding. 
 Section 11.11
The Syndication Agent, Co-Documentation Agents and Arrangers. The Syndication Agent, the Co-Documentation Agents and the Arrangers shall have no duties, responsibilities or liabilities under this Agreement and the other Loan Documents other
than their duties, responsibilities and liabilities in their capacity as Lenders hereunder. 
 ARTICLE XII 

Miscellaneous 

Section 12.01 Notices. 

(a) Except in the case of notices and other communications expressly permitted to be given by telephone (and subject to
Section 12.01(b)), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows:

 (i) if to the Borrower, to it at 700 Milam Street, Suite 3100, Houston, Texas 77002-4804, Attention of Winston
M. Talbert, Chief Financial Officer and Executive Vice President (Telecopy No. (713) 579-6210), with a copy to John F. Wombwell, Executive Vice President, General Counsel and Secretary (Telecopy No. 713-579-6231); 

(ii) if to the Administrative Agent, to it at 10 South Dearborn, Floor 7, Chicago, Illinois 60603-2003, Attention of
Marlene Zanoria (Telecopy No. (312) 385-7096), and for all other correspondence other than borrowings, continuation, conversion and Letter of Credit requests 712 Main Street, 8th Floor, Mail Code: TX2-S038, Houston, Texas 77002, Attention of
Michael A. Kamauf (Telecopy No. (713) 216-7770); and 
 (iii) if to any other Lender, in its capacity as
such, or any other Lender in its capacity as an Issuing Bank, to it at its address (or telecopy number) set forth in its Administrative Questionnaire. 

(b) Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to
procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II, Article III, Article IV and Article V unless otherwise agreed by the Administrative
Agent and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided
that approval of such procedures may be limited to particular notices or communications. 
  

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 (c) Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt. 

Section 12.02 Waivers; Amendments. 

(a) No failure on the part of the Administrative Agent, any Issuing Bank or any Lender to exercise and no delay in exercising, and no
course of dealing with respect to, any right, power or privilege, or any abandonment or discontinuance of steps to enforce such right, power or privilege, under any of the Loan Documents shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, power or privilege under any of the Loan Documents preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies of the Administrative Agent, each
Issuing Bank and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or any other Loan Document or
consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by Section 12.02(b), and then such waiver or consent shall be effective only in the specific instance and for the
purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or any
Issuing Bank may have had notice or knowledge of such Default at the time. 
 (b) Neither this Agreement nor any provision
hereof nor any Security Instrument nor any provision thereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Majority Lenders or by the Borrower and the Administrative
Agent with the consent of the Majority Lenders; provided that no such agreement shall 
 (i) increase the
Commitment or the Maximum Credit Amount of any Lender without the written consent of such Lender; 
 (ii)
increase the Borrowing Base without the written consent of the Required Lenders, decrease or maintain the Borrowing Base without the consent of Super-majority Lenders or modify Section 2.07 or 2.09 without the written consent of
all of the Lenders; 
 (iii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of
interest thereon, or reduce any fees payable hereunder, or reduce any other Indebtedness hereunder or under any other Loan Document, without the written consent of each Lender affected thereby; 

(iv) postpone the scheduled date of payment or prepayment of the principal amount of any Loan or LC Disbursement, or any
interest thereon, or any fees 
  

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payable hereunder, or any other Indebtedness hereunder or under any other Loan Document, or reduce the amount of, waive or excuse any such payment, or postpone or extend the Termination Date
without the written consent of each Lender affected thereby; 
 (v) change Section 4.01(b) or
Section 4.01(c) in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender; 

(vi) waive or amend Section 3.04(c), Section 6.01, Section 8.13(a), Section 10.02(c) or
Section 12.14, without the written consent of each Lender; 
 (vii) release any Guarantor (except as set
forth in the Guaranty Agreement, Section 8.13(d), Section 9.12(d) or Section 12.17) or release all or substantially all of the collateral (other than as provided in Section 11.09 and
Section 12.17), without the written consent of each Lender; or 
 (viii) change any of the provisions
of this Section 12.02(b) or the definitions of “Required Lenders”, “Super-majority Lenders” or “Majority Lenders” or any other provision hereof specifying the number or percentage of Lenders required to
waive, amend or modify any rights hereunder or under any other Loan Documents or make any determination or grant any consent hereunder or any other Loan Documents, without the written consent of each Lender; 

provided, further, that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent, any
other Agent, the Swingline Lender, or any Issuing Bank hereunder or under any other Loan Document without the prior written consent of the Administrative Agent, such other Agent or such Issuing Bank, as the case may be. Notwithstanding the
foregoing, any supplement to Schedule 9.08 (Nature of Business) shall be effective simply by delivering to the Administrative Agent a supplemental schedule clearly marked as such and, upon receipt, the Administrative Agent will promptly
deliver a copy thereof to the Lenders. 
 Section 12.03 Expenses, Indemnity; Damage Waiver. 

(a) The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates,
including, without limitation, the reasonable fees, charges and disbursements of counsel and other outside consultants for the Administrative Agent, the reasonable travel, photocopy, mailing, courier, telephone and other similar expenses, and the
cost of environmental audits and surveys and appraisals, in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration (both before and after the execution
hereof and including advice of counsel to the Administrative Agent as to the rights and duties of the Administrative Agent and the Lenders with respect thereto) of this Agreement and the other Loan Documents and any amendments, modifications or
waivers of or consents related to the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all costs, expenses, Taxes, assessments and other charges incurred by any Agent or
any Lender in connection with any filing, registration, recording or perfection of any security interest 
  

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contemplated by this Agreement or any Security Instrument or any other document referred to therein, (iii) all reasonable out-of-pocket expenses incurred by each Issuing Bank in connection
with the issuance, amendment, renewal or extension of any Letter of Credit issued by such Issuing Bank or any demand for payment thereunder, (iv) all reasonable out-of-pocket expenses incurred by any Agent, the Swingline Lender, any Issuing
Bank or any Lender, including the fees, charges and disbursements of any counsel for any Agent, the Swingline Lender, any Issuing Bank or any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement or
any other Loan Document, including its rights under this Section 12.03, or in connection with the Loans made or Letters of Credit issued hereunder, including, without limitation, all such out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters of Credit. 
 (b) THE BORROWER SHALL INDEMNIFY EACH
AGENT, THE ARRANGER, THE SWINGLINE LENDER, EACH ISSUING BANK AND EACH LENDER, AND EACH RELATED PARTY OF ANY OF THE FOREGOING PERSONS (EACH SUCH PERSON BEING CALLED AN “INDEMNITEE”) AGAINST, AND HOLD EACH INDEMNITEE HARMLESS FROM,
ANY AND ALL LOSSES, CLAIMS, DAMAGES, LIABILITIES AND RELATED EXPENSES, INCLUDING THE FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR ANY INDEMNITEE, INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT
OF (i) THE EXECUTION OR DELIVERY OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR THEREBY, THE PERFORMANCE BY THE PARTIES HERETO OR THE PARTIES TO ANY OTHER LOAN DOCUMENT OF THEIR RESPECTIVE
OBLIGATIONS HEREUNDER OR THEREUNDER OR THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY OR BY ANY OTHER LOAN DOCUMENT, (ii) THE FAILURE OF THE BORROWER OR ANY RESTRICTED SUBSIDIARY TO COMPLY WITH THE TERMS OF ANY LOAN DOCUMENT,
INCLUDING THIS AGREEMENT, OR WITH ANY GOVERNMENTAL REQUIREMENT, (iii) ANY INACCURACY OF ANY REPRESENTATION OR ANY BREACH OF ANY WARRANTY OR COVENANT OF THE BORROWER OR ANY GUARANTOR SET FORTH IN ANY OF THE LOAN DOCUMENTS OR ANY INSTRUMENTS,
DOCUMENTS OR CERTIFICATIONS DELIVERED IN CONNECTION THEREWITH, (iv) ANY LOAN OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS THEREFROM, INCLUDING, WITHOUT LIMITATION, (A) ANY REFUSAL BY ANY ISSUING BANK TO HONOR A DEMAND FOR PAYMENT UNDER A
LETTER OF CREDIT ISSUED BY SUCH ISSUING BANK IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY COMPLY WITH THE TERMS OF SUCH LETTER OF CREDIT, OR (B) THE PAYMENT OF A DRAWING UNDER ANY LETTER OF CREDIT NOTWITHSTANDING
THE NON-COMPLIANCE, NON-DELIVERY OR OTHER IMPROPER PRESENTATION OF THE DOCUMENTS PRESENTED IN CONNECTION THEREWITH, (v) ANY OTHER ASPECT OF THE LOAN DOCUMENTS, (vi) THE OPERATIONS OF THE BUSINESS OF THE BORROWER AND ITS SUBSIDIARIES BY THE
BORROWER AND ITS SUBSIDIARIES, (vii) ANY ASSERTION THAT THE LENDERS WERE NOT ENTITLED TO RECEIVE THE PROCEEDS RECEIVED PURSUANT TO THE SECURITY INSTRUMENTS, (viii) ANY ENVIRONMENTAL LAW APPLICABLE TO THE BORROWER OR ANY SUBSIDIARY OR ANY
OF THEIR PROPERTIES, INCLUDING WITHOUT LIMITATION, THE 
  

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PRESENCE, GENERATION, STORAGE, RELEASE, THREATENED RELEASE, USE, TRANSPORT, DISPOSAL, ARRANGEMENT OF DISPOSAL OR TREATMENT OF OIL, OIL AND GAS WASTES, SOLID WASTES OR HAZARDOUS SUBSTANCES ON ANY
OF THEIR PROPERTIES, (ix) THE BREACH OR NON-COMPLIANCE BY THE BORROWER OR ANY SUBSIDIARY WITH ANY ENVIRONMENTAL LAW APPLICABLE TO THE BORROWER OR ANY SUBSIDIARY, (x) THE PAST OWNERSHIP BY THE BORROWER OR ANY SUBSIDIARY OF ANY OF THEIR
PROPERTIES OR PAST ACTIVITY ON ANY OF THEIR PROPERTIES WHICH, THOUGH LAWFUL AND FULLY PERMISSIBLE AT THE TIME, COULD RESULT IN PRESENT LIABILITY, (xi) THE PRESENCE, USE, RELEASE, STORAGE, TREATMENT, DISPOSAL, GENERATION, THREATENED RELEASE,
TRANSPORT, ARRANGEMENT FOR TRANSPORT OR ARRANGEMENT FOR DISPOSAL OF OIL, OIL AND GAS WASTES, SOLID WASTES OR HAZARDOUS SUBSTANCES ON OR AT ANY OF THE PROPERTIES OWNED OR OPERATED BY THE BORROWER OR ANY SUBSIDIARY OR ANY ACTUAL OR ALLEGED PRESENCE OR
RELEASE OF HAZARDOUS MATERIALS ON OR FROM ANY PROPERTY OWNED OR OPERATED BY THE BORROWER OR ANY OF ITS SUBSIDIARIES, (xii) ANY ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO THE BORROWER OR ANY OF ITS SUBSIDIARIES, (xiii) ANY OTHER
ENVIRONMENTAL, HEALTH OR SAFETY CONDITION IN CONNECTION WITH THE LOAN DOCUMENTS, OR (xiv) ANY ACTUAL OR PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY THERETO, AND SUCH INDEMNITY SHALL EXTEND TO EACH INDEMNITEE NOTWITHSTANDING THE SOLE OR CONCURRENT NEGLIGENCE OF EVERY KIND OR CHARACTER WHATSOEVER, WHETHER ACTIVE OR PASSIVE, WHETHER AN
AFFIRMATIVE ACT OR AN OMISSION, INCLUDING WITHOUT LIMITATION, ALL TYPES OF NEGLIGENT CONDUCT IDENTIFIED IN THE RESTATEMENT (SECOND) OF TORTS OF ONE OR MORE OF THE INDEMNITEES OR BY REASON OF STRICT LIABILITY IMPOSED WITHOUT FAULT ON ANY ONE OR MORE
OF THE INDEMNITEES; PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR RELATED EXPENSES ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL AND
NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE. 
 (c) To the extent
that the Borrower fails to pay any amount required to be paid by it to any Agent, the Arranger, the Swingline Lender, or any Issuing Bank under Section 12.03(a) or (b), each Lender severally agrees to pay to such Agent, the
Arranger, the Swingline Lender, or such Issuing Bank, as the case may be, such Lender’s Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against such Agent, the Arranger, the Swingline Lender, or such Issuing Bank in its
capacity as such. 
 (d) To the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim
against any Indemnitee, on any theory of liability, for special, indirect, 
  

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consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof. 

(e) All amounts due under this Section 12.03 shall be payable not later than 10 days after written demand therefor.

 Section 12.04 Successors and Assigns. 

(a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of Credit), except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written
consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this
Section 12.04. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of any Issuing
Bank that issues any Letter of Credit), Participants (to the extent provided in Section 12.04(c)) and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, each Issuing Bank, the Swingline
Lender, and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
 (b)
(i) Subject to the conditions set forth in Section 12.04(b)(ii), any Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and
the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of: 

(A) the Borrower, provided that no consent of the Borrower shall be required for an assignment to a Lender, an
Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee; and 

(B) the Administrative Agent, provided that no consent of the Administrative Agent shall be required for an
assignment to an assignee that is a Lender immediately prior to giving effect to such assignment. 
 (ii)
Assignments shall be subject to the following additional conditions: 
 (A) except in the case of an assignment
to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as
of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $10,000,000 and the amount of the Commitment of Loans of the assigning Lender after such assignment shall not
be less than $10,000,000 unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing; 

 

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 (B) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations under this Agreement; 
 (C) the
parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; 

(D) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire;
and 
 (E) the assignee must not be a Defaulting Lender. 

(iii) Subject to Section 12.04(b)(iv) and the acceptance and recording thereof, from and after the effective
date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the
assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Section 5.01, Section 5.02, Section 5.03 and
Section 12.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 12.04 shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with Section 12.04(c). 
 (iv) The
Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders,
and the Maximum Credit Amount of, and principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the
Borrower, the Administrative Agent, each Issuing Bank and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower, any Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable prior notice. In connection with any changes to the Register, if necessary, the
Administrative Agent will reflect the revisions on Annex I and forward a copy of such revised Annex I to the Borrower, each Issuing Bank and each Lender. 

(v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the
assignee’s completed 
  

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Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in Section 12.04(b) and any written consent to
such assignment required by Section 12.04(b), the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register. No assignment shall be effective for purposes of this
Agreement unless it has been recorded in the Register as provided in this Section 12.04(b). 
 (c) (i) Any
Lender may, without the consent of the Borrower, the Administrative Agent or any Issuing Bank, sell participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and
obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations and (C) the Borrower, the Administrative Agent, each Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection
with such Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or
waiver described in the proviso to Section 12.02 that affects such Participant. In addition such agreement must provide that the Participant be bound by the provisions of Section 12.03. Subject to
Section 12.04(c)(ii), the Borrower agrees that each Participant shall be entitled to the benefits of Section 5.01, Section 5.02 and Section 5.03 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to Section 12.04(b). To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 12.08 as though it were a Lender, provided such Participant
agrees to be subject to Section 4.01(c) as though it were a Lender. 
 (ii) A Participant shall not
be entitled to receive any greater payment under Section 5.01 or Section 5.03 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 5.03 unless the Borrower is
notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 5.03(e) as though it were a Lender. 

(d) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or central bank, and this Section 12.04 shall not apply to any such pledge or assignment of a security interest;
provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 

 

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 (e) Notwithstanding any other provisions of this Section 12.04, no transfer or
assignment of the interests or obligations of any Lender or any grant of participations therein shall be permitted if such transfer, assignment or grant would require the Borrower and the Guarantors to file a registration statement with the SEC or
to qualify the Loans under the “Blue Sky” laws of any state. 
 Section 12.05 Survival; Revival;
Reinstatement. 
 (a) All covenants, agreements, representations and warranties made by the Borrower herein and in the
certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this
Agreement and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, any Issuing Bank or any Lender may have had
notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any
other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The provisions of Section 5.01, Section 5.02,
Section 5.03 and Section 12.03 and Article XI shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or
termination of the Letters of Credit and the Commitments or the termination of this Agreement, any other Loan Document or any provision hereof or thereof. 

(b) To the extent that any payments on the Indebtedness or proceeds of any collateral are subsequently invalidated, declared to be
fraudulent or preferential, set aside or required to be repaid to a trustee, debtor in possession, receiver or other Person under any bankruptcy law, common law or equitable cause, then to such extent, the Indebtedness so satisfied shall be revived
and continue as if such payment or proceeds had not been received and the Administrative Agent’s and the Lenders’ Liens, security interests, rights, powers and remedies under this Agreement and each Loan Document shall continue in full
force and effect. In such event, each Loan Document shall be automatically reinstated and the Borrower shall take such action as may be reasonably requested by the Administrative Agent and the Lenders to effect such reinstatement. 

Section 12.06 Counterparts; Integration; Effectiveness. 

(a) This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract. 
 (b) This Agreement, the
other Loan Documents and any separate letter agreements with respect to fees payable to the Agents and other matters constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all
previous agreements and understandings, oral or written, relating to the subject matter hereof and thereof. This Agreement, the other Loan Documents (other than the Letters of Credit and the Letter of

  

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Credit Agreements) and such letter agreements represent the final agreement among the parties hereto and thereto and may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements of the parties. There are no unwritten oral agreements between the parties. 
 (c) Except as provided in
Section 6.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of
each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by telecopy
shall be effective as delivery of a manually executed counterpart of this Agreement. 
 Section 12.07 Severability.
Any provision of this Agreement or any other Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without
affecting the validity, legality and enforceability of the remaining provisions hereof or thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 

Section 12.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender and each of its
Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations
(of whatsoever kind, including, without limitation, obligations under Swap Agreements) at any time owing by such Lender or Affiliate to or for the credit or the account of the Borrower or any Restricted Subsidiary against any of and all the
obligations of the Borrower or any Restricted Subsidiary owed to such Lender now or hereafter existing under this Agreement or any other Loan Document, irrespective of whether or not such Lender shall have made any demand under this Agreement or any
other Loan Document and although such obligations may be unmatured. The rights of each Lender under this Section 12.08 are in addition to other rights and remedies (including other rights of setoff) which such Lender or its Affiliates
may have. 
 Section 12.09 GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS. 

(a) THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

(b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THE LOAN DOCUMENTS SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE
UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY,
THE JURISDICTION OF THE AFORESAID COURTS. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, 
  

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ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE
JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS NON-EXCLUSIVE AND DOES NOT PRECLUDE A PARTY FROM OBTAINING JURISDICTION OVER ANOTHER PARTY IN ANY COURT OTHERWISE HAVING JURISDICTION. 

(c) THE BORROWER HEREBY IRREVOCABLY DESIGNATES, APPOINTS AND EMPOWERS AND HEREBY CONFERS AN IRREVOCABLE SPECIAL POWER, AMPLE AND
SUFFICIENT, TO CT CORPORATION SYSTEM, WITH OFFICES ON THE DATE HEREOF AT 111 EIGHTH AVENUE, THIRTEENTH FLOOR, NEW YORK, NEW YORK 10011, AS ITS DESIGNEE, APPOINTEE AND AGENT WITH RESPECT TO ANY SUCH ACTION OR PROCEEDING IN NEW YORK TO RECEIVE, ACCEPT
AND ACKNOWLEDGE FOR AND ON ITS BEHALF, AND IN RESPECT OF ITS PROPERTY, SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS WHICH MAY BE SERVED IN ANY SUCH PROCEEDING AND AGREES THAT THE FAILURE OF SUCH AGENT TO GIVE ANY ADVICE OF
ANY SUCH SERVICE OF PROCESS TO THE BORROWER SHALL NOT IMPAIR OR AFFECT THE VALIDITY OF SUCH SERVICE OR OF ANY CLAIM BASED THEREON. IF FOR ANY REASON SUCH DESIGNEE, APPOINTEE AND AGENT SHALL CEASE TO BE AVAILABLE TO ACT AS SUCH, THE BORROWER AGREES
TO DESIGNATE A NEW DESIGNEE, APPOINTEE AND AGENT IN NEW YORK CITY REASONABLY SATISFACTORY TO THE ADMINISTRATIVE AGENT ON THE TERMS AND FOR THE PURPOSES OF THIS PROVISION. EACH PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE
AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT THE ADDRESS SPECIFIED IN SECTION 12.01 OR SUCH OTHER ADDRESS AS IS SPECIFIED PURSUANT TO
SECTION 12.01 (OR ITS ASSIGNMENT AND ASSUMPTION), SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY OR ANY HOLDER OF A NOTE TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANOTHER PARTY IN ANY OTHER JURISDICTION. 
 (d)
EACH PARTY HEREBY (i) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN;
(ii) IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
DAMAGES; (iii) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVERS, AND (iv) ACKNOWLEDGES THAT IT HAS BEEN INDUCED 
  

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TO ENTER INTO THIS AGREEMENT, THE LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTION
12.09. 
 Section 12.10 Headings. Article and Section headings and the Table of Contents used herein are for
convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 

Section 12.11 Confidentiality. Each of the Administrative Agent, each Issuing Bank and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority,
(c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement or any other Loan Document, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section 12.11, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement (provided that such
Person agrees in writing to be bound by the provisions of this Section 12.11) or (ii) any actual or prospective counterparty (or its advisors) to any Swap Agreement relating to the Borrower and its obligations (provided that such
Person agrees in writing to be bound by the provisions of this Section 12.11), (g) with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of
this Section 12.11 or (ii) becomes available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis from a source other than the Borrower. For the purposes of this Section 12.11,
“Information” means all information received from the Borrower or any Restricted Subsidiary relating to the Borrower or any Restricted Subsidiary and their businesses, other than any such information that is available to the
Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by the Borrower or a Restricted Subsidiary; provided that, in the case of information received from the Borrower or any Restricted Subsidiary
after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section 12.11 shall be considered to have
complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 

Section 12.12 Interest Rate Limitation. It is the intention of the parties hereto that each Lender shall conform strictly to
usury laws applicable to it. Accordingly, if the transactions contemplated hereby would be usurious as to any Lender under laws applicable to it (including the laws of the United States of America and the State of New York or any other jurisdiction
whose laws may be mandatorily applicable to such Lender notwithstanding the other provisions of this Agreement), then, in that event, notwithstanding anything to the contrary in any of the Loan Documents or any agreement entered into in connection
with or as security for the Notes, it 
  

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is agreed as follows: (i) the aggregate of all consideration which constitutes interest under law applicable to any Lender that is contracted for, taken, reserved, charged or received by
such Lender under any of the Loan Documents or agreements or otherwise in connection with the Loans shall under no circumstances exceed the maximum amount allowed by such applicable law, and any excess shall be canceled automatically and if
theretofore paid shall be credited by such Lender on the principal amount of the Indebtedness (or, to the extent that the principal amount of the Indebtedness shall have been or would thereby be paid in full, refunded by such Lender to the
Borrower); and (ii) in the event that the maturity of the Loans is accelerated by reason of an election of the holder thereof resulting from any Event of Default under this Agreement or otherwise, or in the event of any required or permitted
prepayment, then such consideration that constitutes interest under law applicable to any Lender may never include more than the maximum amount allowed by such applicable law, and excess interest, if any, provided for in this Agreement or otherwise
shall be canceled automatically by such Lender as of the date of such acceleration or prepayment and, if theretofore paid, shall be credited by such Lender on the principal amount of the Indebtedness (or, to the extent that the principal amount of
the Indebtedness shall have been or would thereby be paid in full, refunded by such Lender to the Borrower). All sums paid or agreed to be paid to any Lender for the use, forbearance or detention of sums due hereunder shall, to the extent permitted
by law applicable to such Lender, be amortized, prorated, allocated and spread throughout the actual full term of the Loans until payment in full so that the rate or amount of interest on account of any Loans hereunder does not exceed the maximum
amount allowed by such applicable law. If at any time and from time to time (i) the amount of interest payable to any Lender on any date shall be computed at the Highest Lawful Rate applicable to such Lender pursuant to this
Section 12.12 and (ii) in respect of any subsequent interest computation period the amount of interest otherwise payable to such Lender would be less than the amount of interest payable to such Lender computed at the Highest Lawful
Rate applicable to such Lender, then the amount of interest payable to such Lender in respect of such subsequent interest computation period shall continue to be computed at the Highest Lawful Rate applicable to such Lender until the total amount of
interest payable to such Lender shall equal the total amount of interest which would have been payable to such Lender if the total amount of interest had been computed without giving effect to this Section 12.12. 

Section 12.13 EXCULPATION PROVISIONS. EACH OF THE PARTIES HERETO SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS AND AGREES THAT IT IS CHARGED WITH NOTICE AND KNOWLEDGE OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; THAT IT HAS IN FACT READ THIS AGREEMENT AND IS FULLY INFORMED AND HAS FULL NOTICE AND
KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS OF THIS AGREEMENT; THAT IT HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND HAS
RECEIVED THE ADVICE OF ITS ATTORNEY IN ENTERING INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND THAT IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS RESULT IN ONE PARTY ASSUMING THE LIABILITY INHERENT IN
SOME ASPECTS OF THE TRANSACTION AND RELIEVING THE OTHER PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY. EACH PARTY 
  

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HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ON THE BASIS THAT THE PARTY HAD NO
NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION IS NOT “CONSPICUOUS.” 
 Section 12.14 Collateral
Matters; Swap Agreements. The benefit of the Security Instruments and of the provisions of this Agreement relating to any collateral securing the Indebtedness shall also extend to and be available to any Lender or any Affiliate of a Lender that
is counterparty to any Swap Agreement with the Borrower or any of its Subsidiaries (including any Swap Agreement between such Persons in existence prior to the date hereof) on a pro rata basis in respect of any obligations of the Borrower or any of
its Subsidiaries which arise under any such Swap Agreement. If any Lender or any Affiliate of a Lender ceases to be a Lender under this Agreement, then the benefit of the Security Instruments and such provisions will continue to apply to the Swap
Agreements to which such Lender or its Affiliate is a party at the time that Lender ceases to be a Lender, but will not apply to any Swap Agreements entered into by that Lender or any of its Affiliates after that date. No Lender or any Affiliate of
a Lender shall have any voting rights under any Loan Document as a result of the existence of obligations owed to it under any such Swap Agreements. 

Section 12.15 No Third Party Beneficiaries. This Agreement, the other Loan Documents, and the agreement of the Lenders to
make Loans and the Issuing Bank to issue, amend, renew or extend Letters of Credit hereunder are solely for the benefit of the Borrower, and no other Person (including, without limitation, any Subsidiary of the Borrower, any obligor, contractor,
subcontractor, supplier or materialsman) shall have any rights, claims, remedies or privileges hereunder or under any other Loan Document against the Administrative Agent, any other Agent, the Issuing Bank, the Swingline Lender, or any Lender for
any reason whatsoever. There are no third party beneficiaries. 
 Section 12.16 USA Patriot Act Notice. Each Lender
hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Act. 

Section 12.17 Release of Liens and Guarantors. After the Mortgage Release Date, the Administrative Agent, at the request and
expense of the Borrower, shall promptly (i) execute and deliver to the Borrower or its designee such UCC termination statements, mortgage releases and other documentation as shall be reasonably requested by the Borrower to effect the
termination and release of the Liens created by the Security Instruments and (ii) assign, transfer and deliver to the Borrower or its designee, against receipt but without any recourse, warranty or representation whatsoever, any collateral then
in the Administrative Agent’s possession. Upon the request of the Borrower (and at the Borrower’s expense), the Administrative Agent shall release from its obligations under the Guaranty Agreement each Guarantor that (i) is not a
Material Domestic Restricted Subsidiary and (ii) is not required to guarantee the Indebtedness pursuant to Section 8.13. Upon the completion of any sale or dissolution of a Subsidiary otherwise permitted hereunder, the
Administrative Agent shall promptly deliver to the Borrower any certificate representing the Equity Interests of such Subsidiary then held by it. 
  

 99 

 The parties hereto have caused this Agreement to be duly executed as of the day and year
first above written. 
  

			
	PLAINS EXPLORATION & PRODUCTION COMPANY
		
	By:	 	 /s/ Winston M. Talbert

	Name:	 	Winston M. Talbert
	Title:	 	Executive Vice President and Chief Financial Officer

Signature Page to Amended and Restated Credit Agreement 

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

and as Administrative Agent

		
	By:	 	 /s/ Michael A. Kamauf

	Name:	 	Michael A. Kamauf
	Title:	 	Vice President

 Signature Page to
Amended and Restated Credit Agreement 

			
	BANK OF AMERICA, NATIONAL ASSOCIATION
		
	By:	 	 /s/ Ronald E. McKaig

	Name:	 	Ronald E. McKaig
	Title:	 	Senior Vice President

 Signature Page
to Amended and Restated Credit Agreement 

			
	BANK OF MONTREAL
		
	By:	 	 /s/ James V. Ducote

	Name:	 	James V. Ducote
	Title:	 	Director

 Signature Page to Amended
and Restated Credit Agreement 

			
	THE BANK OF NOVA SCOTIA
		
	By:	 	 /s/ David Mills

	Name:	 	David Mills
	Title:	 	Managing Director

 Signature Page to
Amended and Restated Credit Agreement 

			
	BANK OF SCOTLAND PLC
		
	By:	 	 /s/ Julia R. Franklin

	Name:	 	Julia R. Franklin
	Title:	 	Assistant Vice President

 Signature
Page to Amended and Restated Credit Agreement 

			
	BARCLAYS BANK PLC
		
	By:	 	 /s/ Sam Yoo

	Name:	 	Sam Yoo
	Title:	 	Assistant Vice President

 Signature
Page to Amended and Restated Credit Agreement 

			
	BNP PARIBAS
		
	By:	 	 /s/ Brian M. Malone

	Name:	 	Brian M. Malone
	Title:	 	Managing Director
		
	By:	 	 /s/ Greg Smothers

	Name:	 	Greg Smothers
	Title:	 	Director

 Signature Page to Amended
and Restated Credit Agreement 

			
	CITICORP NORTH AMERICA, INC.
		
	By:	 	 /s/ Angela McCracken

	Name:	 	Angela McCracken
	Title:	 	Vice President

 Signature Page to
Amended and Restated Credit Agreement 

			
	ING CAPITAL LLC
		
	By:	 	 /s/ Juli Bieser

	Name:	 	Juli Bieser
	Title:	 	Director

 Signature Page to Amended
and Restated Credit Agreement 

			
	ROYAL BANK OF CANADA
		
	By:	 	 /s/ Don J. McKinnerney

	Name:	 	Don J. McKinnerney
	Title:	 	Authorized Signatory

 Signature Page
to Amended and Restated Credit Agreement 

			
	ROYAL BANK OF SCOTLAND PLC
		
	By:	 	 /s/ David Slye

	Name:	 	David Slye
	Title:	 	Senior Vice President

 Signature Page
to Amended and Restated Credit Agreement 

			
	TORONTO DOMINION (TEXAS) LLC
		
	By:	 	 /s/ Jackie Barrett

	Name:	 	Jackie Barrett
	Title:	 	Authorized Signatory

 Signature Page
to Amended and Restated Credit Agreement 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	By:	 	 /s/ Andrew J. Watson

	Name:	 	Andrew J. Watson
	Title:	 	Vice President

 Signature Page to
Amended and Restated Credit Agreement 

			
	COMPASS BANK
		
	By:	 	 /s/ Kathleen J. Bowen

	Name:	 	Kathleen J. Bowen
	Title:	 	Senior Vice President

 Signature Page
to Amended and Restated Credit Agreement 

			
	CAPITAL ONE, N.A.
		
	By:	 	 /s/ Paul D. Hein

	Name:	 	Paul D. Hein
	Title:	 	Vice President

 Signature Page to
Amended and Restated Credit Agreement 

			
	GOLDMAN SACHS BANK USA
		
	By:	 	 /s/ Mark Walton

	Name:	 	Mark Walton
	Title:	 	Authorized Signatory

 Signature Page
to Amended and Restated Credit Agreement 

			
	UBS LOAN FINANCE LLC
		
	By:	 	 /s/ Irja R. Otsa

	Name:	 	Irja R. Otsa
	Title:	 	Associate Director
		
	By:	 	 /s/ April Varner-Nanton

	Name:	 	April Varner-Nanton
	Title:	 	Director

 Signature Page to Amended
and Restated Credit Agreement 

			
	U.S. BANK NATIONAL ASSOCIATION
		
	By:	 	 /s/ Monte E. Deckerd

	Name:	 	Monte E. Deckerd
	Title:	 	Senior Vice President

 Signature Page
to Amended and Restated Credit Agreement 

			
	COMERICA BANK
		
	By:	 	 /s/ Paul J. Edmonds

	Name:	 	Paul J. Edmonds
	Title:	 	Vice President

 Signature Page to
Amended and Restated Credit Agreement 

			
	MORGAN STANLEY BANK, N.A.
		
	By:	 	 /s/ Ryan Vetsch

	Name:	 	Ryan Vetsch
	Title:	 	Authorized Signatory

 Signature Page
to Amended and Restated Credit Agreement 

			
	UNION BANK, N.A.
		
	By:	 	 /s/ Scott Gildea

	Name:	 	Scott Gildea
	Title:	 	Vice President

 Signature Page to
Amended and Restated Credit Agreement 

 ANNEX I 

LIST OF MAXIMUM CREDIT AMOUNTS 
  

						
	 Name of Lender
	  	Maximum
Credit Amount	  	Applicable Percentage
			
	 JPMorgan Chase Bank, N.A.
	  	$	85,000,000	  	6.071428571
	 Bank of America, National Association
	  	 	80,000,000	  	5.714285714
	 Bank of Montreal
	  	 	80,000,000	  	5.714285714
	 BNP Paribas
	  	 	80,000,000	  	5.714285714
	 Wells Fargo Bank, National Association
	  	 	80,000,000	  	5.714285714
	 The Bank of Nova Scotia
	  	 	80,000,000	  	5.714285714
	 Bank of Scotland PLC
	  	 	80,000,000	  	5.714285714
	 Barclays Bank PLC
	  	 	80,000,000	  	5.714285714
	 Citicorp North America, Inc.
	  	 	80,000,000	  	5.714285714
	 ING Capital LLC
	  	 	80,000,000	  	5.714285714
	 Royal Bank of Canada
	  	 	80,000,000	  	5.714285714
	 The Royal Bank of Scotland plc
	  	 	80,000,000	  	5.714285714
	 Toronto Dominion (Texas) LLC
	  	 	80,000,000	  	5.714285714
	 Capital One, N. A.
	  	 	50,000,000	  	3.571428571
	 Compass Bank
	  	 	50,000,000	  	3.571428571
	 Goldman Sachs Bank USA
	  	 	50,000,000	  	3.571428571
	 UBS Loan Finance LLC
	  	 	50,000,000	  	3.571428571
	 U.S. Bank National Association
	  	 	50,000,000	  	3.571428571
	 Comerica Bank
	  	 	35,000,000	  	2.500000000
	 Morgan Stanley Bank, N.A.
	  	 	35,000,000	  	2.500000000
	 Union Bank, N.A.
	  	 	35,000,000	  	2.500000000
		  	 	 	  	 
			
	 TOTAL
	  	$	1,400,000,000	  	100.000000000

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